Folsom City Council
August 11, 2026

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Addenda

SMF260804

Engagement Letter
Offering Memorandum
LOI
Valuation Glossary
Qualifications of Appraiser
Qualifications of Colliers International Valuation & Advisory Services

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July 15, 2026
Joe Esparza, MAI
Valuation Service Director
Direct +1 916.724.5582
[email protected]
Pam Johns
Community Development Director
City of Folsom
50 Natoma Street
Folsom, CA 95630
916.461.6205
[email protected]
RE: Appraisal of Vacant Land Zoned BP
Dear Ms. Pam Johns:

Thank you for considering Colliers International Valuation & Advisory Services, LLC for the assignment identified in the below-stated Professional Service Agreement. Please sign one copy of the agreement and return it to me, thereby indicating your authorization for us to proceed with this assignment and your acceptance of the attached Terms and Conditions.

PROFESSIONAL SERVICE AGREEMENT
("Agreement")
Project Vacant Land Zoned BP ("Property")
Location NEC East Bidwell Street & Oak Ave Pkwy, Folsom, CA Project Description 6.69 acres
Parties Colliers International Valuation & Advisory Services, LLC ("CIVAS") and City of Folsom (herein at times referred to as "Client")
Intended User The appraisal will be prepared for City of Folsom. Intended users include The Client. No other users are intended.

Intended Use The intended use of this appraisal is to assist the client in making internal business decisions related to this asset. The report is not intended for any other use.

Signatories The anticipated primary signatory appraiser will be Joe Esparza.

Purpose To establish a potential purchase price
Type of Appraisal CIVAS will produce an Appraisal Report in which the appraiser's analysis and conclusions will be summarized within this document.

Rights Appraised Fee Simple
Date of Value Date of Inspection
Accelerating success. Page 568
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Professional Service Agreement
Continued
Terms and Conditions
The attached Terms and Conditions and Specific Property Data Request are deemed a part of this Agreement as though set forth in full herein. The following is a list of information needed to begin and complete our analysis. The Client signing this Agreement or the party sending the specific property data certifies that all the information provided is accurate and complete as of the date of this request, and that any updates, revisions or additional relevant information that comes into control or possession of the Client prior to the date on which the Appraisal is delivered shall be provided to CIVAS immediately. Please forward with the Agreement or as soon as possible.

Preliminary Title Report
Site Map
Current County Property Tax Bill
Land Surveys
In addition to the items requested above, please forward any additional materials you would consider relevant in the analysis of the subject property.

Reliance Language - Non-Lender Client
If you have questions regarding the enclosed, please feel free to contact me. CIVAS appreciates this opportunity to be of service to you on this assignment and looks forward to serving you. If you have additional questions, please contact us.

AS-��c...QJf Folsom, agree to the above stated terms and authorize Colliers International Valuation & Advisory Services, LLC e referenced appraisal.

Pam Jo
Community Development Director
City of Folsom
Respectfully,
Colliers International Valuation & Advisory Services, LLC Joe Esparza, MAI
Valuation Service Director
Direct +1 916.724.5582
[email protected]

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Absolute Net Lease
A lease in which the tenant pays all expenses including structural maintenance, building reserves, and
management; often a long -term lease to a credit tenant. (Dictionary)
Ad Valorem Tax
A real estate tax based on the assessed value of the
property, which is not necessarily equivalent to its market value. (15th Edition)
Arm’s-length Transaction
A transaction between unrelated parties who are each
acting in his or her own best interest. (Dictionary)
As-Is Market Value
The estimate of the market value of real property in its current physical condition, use, and zoning as of the
appraisal date. (Dictionary)
Assessed Value
The value of a property according to the tax rolls in ad valorem taxation; may be higher or lower than market value, or based on an assessment ratio that is a percentage of market value. (Dictionary)
Average Daily Room Rate (ADR)
In the lodging industry, the net rooms revenue derived from the sale of guest rooms divided by the number of paid
occupied rooms. (Dictionary)
Band of Investment
A technique in which the capitalization rates attributable to components of an investment are weighted and combined
to derive a weighted -average rate attributable to the total investment. (Dictionary)
Bias
A preference or inclination that precludes an appraiser’s impartiality, independence, or objectivity in an assignment. (USPAP)
Cash-Equivalent Price
The sale price of a property that is equivalent to what a cash buyer would pay. (Dictionary)
Common Area
The total area within a property that is not designed for sale or rental but is available for common use by all owners, tenants, or their invitees, e.g., parking and its
appurtenances, malls, sidewalks, landscaped areas,
recreation areas, public toilets, t ruck and service facilities. (Dictionary)
Contract Rent
The actual rental income specified in a lease. (15th Edition) Cost Approach
A set of procedures through which a value indication is derived for the fee simple estate by estimating the cost new as of the effective date of the appraisal to construct a reproduction of (or replacement for) the existing structure, including an entrepreneurial incentive; deducting
depreciation from the total cost; and adding the estimated land value. The contributory value of any site improvements that have not already been considered in the total cost can be added on a depreciated -cost basis. Adjustments may
then be made to the indicated value of the fee simple estate in the subject property to reflect the value of the property rights being appraised. (Dictionary)
Curable Functional Obsolescence
An element of depreciation; a curable defect caused by a flaw involving the structure, materials, or design, which can be practically and economically corrected. (Dictionary) Debt Coverage Ratio (DCR)
The ratio of net operating income to annual debt service, which measures the relative ability of a property to meet its debt service out of net operating income; also called debt service coverage ratio (DSCR). (Dictionary)
Deferred Maintenance
Items of wear and tear on a property that should be fixed now to protect the value or income -producing ability of a property. (Dictionary)
Depreciation
In appraisal, a loss in the value of improvements from any cause; the difference between the cost of an improvement on the effective date of the appraisal and the va lue of the improvement on the same date. (Dictionary)
Direct Costs
Expenditures for the labor an d materials used in the
construction of improvements; also called hard costs.
(Dictionary)
Discounted Cash Flow (DCF) Analysis
The procedure in which a discount rate is applied to a set of projected income streams and a reversion. The analyst
specifies the quantity, variability, timing, and duration of the income streams and the quantity and timing of the
reversion, and discounts each to its present value at a specified yield rate. (Dictionary)
Valuation Glossary
Unless specified otherwise, these definitions were extracted or paraphrased from the following sources or publications:
• The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022 (Dictionary). • Uniform Standards of Professional Appraisal Practice, 2024 Edition (USPAP). • The Appraisal of Real Estate, Fifteenth Edition, Appraisal Institute, Chicago, Illinois, 2020 (15th Edition).

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Discount Rate
A rate of return on capital used to convert future payments or receipts into present value. (Dictionary)
Disposition Value
The most probable price that a specified interest in property should bring under the following conditions:

1. Consummation of a sale within a specified time,
which is shorter than the typical exposure time for
such a property in that market.

2. The property is subjected to market conditions
prevailing as of the date of valuation.

3. Both the buyer and seller are acting prudently and
knowledgeably.

4. The seller is under compulsion to sell.

5. The buyer is typically motivated.

6. Both parties are acting in what they consider their
best interests.

7. An adequate marketing effort will be made during
the exposure time.

8. Payment will be made in cash in U.S. dollars (or the local currency) or in terms of financial
arrangements comparable thereto.

9. The price represents the normal consideration for
the property sold, unaffected by special or creative
financing or sales concessions granted by anyone
associated with the sale.

This definition can also be modified to provide for valuation with specified financing terms. (Dictionary)
Easement
The right to use another’s land for a stated purpose. Access or right -of-way easements may be acquired by private
parties or public utilities. Governments may be the
beneficiaries of easements placed on privately owned land that is dedicated to conservatio n, open space, or
preservation. (15th Edition)
Economic Life
The period over which improvemen ts to real estate
contribute to property value. (Dictionary)
Effective Age
The age of property that is based on the amount of
observed deterioration and obsolescence it has sustained, which may be different from its chronological age.
(Dictionary)
Effective Date
The date to which an appraiser’s analyses, opinions, and conclusions apply; also referred to as the date of value. (USPAP)
Effective Gross Income (EGI)
The anticipated income from all operations of the real estate after an allowance is made for vacancy and collection losses and an addition is made for any other income. (Dictionary)

Effective Gross Income Multiplier (EGIM)
The ratio between the sale price (or value) of a property and its effective gross income. (Dictionary)
Effective Rent
The total base rent, or minimum rent stipulated in a lease, over the specified lease term minus rent concessions - e.g. free rent, excessive tenant improvements, moving
allowances, lease buyouts, cash allowances, and other lease incentives. (15th Edition)
Eminent Domain
The right of government to take private property for public use upon the p ayment of just compensation. The Fifth
Amendment of the U.S. Constitution, also known as the
takings clause , guarante es payment of just compensation upon appropriation of private property. (Dictionary)
Entrepreneurial Incentive
The amount an entrepreneur expects or wants to receive as compensation for providing coordination and expertise and assuming the risks associated with the development of a project. Entrepreneurial incentive is the expectation of future reward as opposed to the profit actually earned on the project. (Dictionary)
Entrepreneurial Profit
A ma rket-derived figure that represents the amount an
entrepreneur received for his or her contribution to a past project to compensate for his or her time, effort, knowledge, and risk; the difference between the total cost of a property (cost of development) and its market value (property value after completion), which represents the entrepreneur's
compensation for the risk and expertise associated with development. An entrepreneur is motivated by the prospect of future value enhancement (i.e., the entrepr eneurial incentive). An entrepreneur who successfully creates value through new development, expansion, renovation, or an
innovative change of use is rewarded by entrepreneurial profit. Entrepreneurs may also fail and suffer losses.
(Dictionary)
Excess Land
Land that is not needed to serve or support the existing use.

The highest and best use of the excess land may or may not be the same as the highest and best use of the improved parcel. Excess land has the potential to be sold separately and is valued separately. (Dictionary)
Excess Rent
The amount by which contract rent exceeds market rent at the time of the appraisal; created by a lease favorable to the lessor and may reflect superior management, a lease
execution in an earlier, stronger rental market, or an
agreement of the parties. Due to the higher risk inherent in the receipt of excess rent, it may be calculated separately and capitalized or discounted at a higher rate in the income capitalization approach. (15th Edition)

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Expense Stop
A clause in a lease that limits the landlord's expense
obligation, which results in the lessee paying any operating expenses above a stated level or amount. (Dictionary)
Exposure Time
An opinion, based on supporting market data, of the length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. (USPAP)
Extraordinary Assumption
An assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser's opinions or conclusions. Uncertain information might include physical, legal, or economic characteristics of the subject property; or conditions external to the property, such as market
conditions or trends; or the integrity of data used in an analysis. An extraordinary assumption may be used in an assignment only if:
• It is required to properly develop credible opinions
and conclusions;
• The appraiser has a reasonable basis for the
extraordinary assumption;
• Use of the extraordinary assumption results in a
credible analysis; and
• The appraiser complies with the disclosure
requirements set forth in USPAP for extraordinary
assumptions. (USPAP)
External Obsolescence
A type of depreciation; a diminution in value caused by negative external influences and generally incurable on the part of the owner, landlord, or tenant. The external
influence may be either temporary or permanent. There are two forms of external obsolescence: economic and
locational. (Dictionary)
Fair Market Value
In nontechnical usag e, a term that is equivalent to the contemporary usage of market value.

As used in condemnation, litigation, income tax, and
property tax situations, a term that is similar in concept to market value but may be defined explicitly by the relevant agency or interpreted differently by court precedent .
(Dictionary)
Feasibility Analysis
A study of the cost -benefit relationship of an economic endeavor. (USPAP)
Fee Simple Estate
Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the
governmental powers of taxation, eminent domain, police power and escheat. (Dictionary)

Floor Area Ratio (FAR)
The relationship between the above-ground floor area of a building, as described by the zoning or building code, and the area of the plot on which it stands; in planning and zoning, often expressed as a decimal, e.g., a ratio of 2.0 indicates that the permissible floor area of a building is twice the total land area. (Dictionary)
Functional Obsolescence
The impairment of functional capacity of improvements
according to market tastes and standards. (Dictionary)
Functional Utility
The ability of a property or building to be useful and to perform the function for which it is intended according to current market tastes and standards; the efficiency of a building’s use in terms of architectural style, design and layout, traffic pattern s, and the size and type of rooms. (Dictionary)
Furniture, Fixtures, and Equipment (FF&E)
Business trade fixtures and personal property, exclusive of inventory. (Dictionary)
Going-concern
An established and operating business having an indefinite future life. (Dictionary)
Going-concern Value
An outdated label for the market value of all the tangible and intangible assets of an established and operating business with an indefinite l ife, as if sold in aggregate; more accurately termed the market value of the going concern or market value of the total assets of the business. (Dictionary) Gross Building Area (GBA)
Total floor area of a building, excluding unenclosed areas, measured from the exterior of the walls of the above-grade area. This includes mezzanines and basements if and when typically included in the market area of the type of property involved. (Dictionary)
Gross Leasable Area (GLA)
Total floor area designed for the occupancy and exclusive use of tenants, including basements and mezzanines;
measured from the center of joint partitioning to the outside wall surfaces. (Dictionary)
Gross Living Area (GLA)
Total area of finished, above -grade residential space area; calculated by measuring the outside perimete r of the
structure and includes only finished, habitable, above-grade living space. (Finished basements and attic areas are not generally included in total gross living area. Local practices, however, may differ.) (Dictionary)
Highest & Best Use
The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. The use of

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an asset that maximizes its potential and that is possible, legally permissible, and financially feasible. The highest and best use may be for continuation of an asset’s existing use or for some alternative use. This is determined by the use that a market participant would have in mind for the asset when formulating the price that it would be willin g to bid (IVS). (Dictionary)
Hypothetical Condition
A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. Hypothetical conditions are contrary to known fac ts about physical, legal, or economic
characteristics of the subject property; or about conditions external to the property, such as market conditions or
trends; or about the integrity of data used in an analysis. (USPAP)
Income Capitalization Approach
In the income capitalization approach, an appraiser
analyzes a property’s capacity to generate future benefits and capitalizes the income into an indication of present value. The principle of anticipation is fundamental to this approach. Techniques and procedures from this approach
are used to analyze comparable sales data and to measure obsolescence in the cost approach. (15th Edition)
Incurable Functional Obsolescence
An element of depreciation; a defect caused by a deficiency or superadequacy involving the structure, materials, or design that cannot be practically or economically corrected as of the effective date of the appraisal. (Dictionary) Indirect Costs
Expenditures or allowances for items other than labor and materials that are necessary for construction, but are not typically part of the construction contract. Indirect costs may include administrative costs, professional fees, financing costs and the interest paid on construction loans, taxes and the builder's or developer's all -risk insurance during construction, and marketing, sales, and lease -up costs incurred to achieve occupancy or sale. Also called soft costs. (Dictionary)
Interim Use
The use contemplated by the market participants that the subject real estate can be put to while waiting for certain subsequent factors to occur. (Dictionary)
Investment Value
The value of a property to a particular investor or class of investors based on the investor’s specific requirements.

Investment value may be different from market value
because it depends on a set of investment criteria that are not necessarily typical of the market. (Dictionary)
Leased Fee Interest
The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversion right when the lease expires. (Dictionary) Leasehold Estate
The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease. (Dictionary)
Legal Nonconforming Use
A use that was lawfully established and maintained, but no longer conforms to the use regulations of its current zoning; sometimes known as a legally nonconforming use.
(Dictionary)
Liquidation Value
The most probable price that a specified interest in property should bring under the following conditions:

1. Consummation of a sale within a short time period.

2. The property is subjected to market conditions
prevailing as of the date of valuation.

3. Both the buyer and seller are acting prudently and
knowledgeably.

4. The seller is under extreme compulsion to sell.

5. The buyer is typically motivated.

6. Both parties are acting in what they consider to be
their best interests.

7. A normal marketing effort is not possible due to the brief exposure time.

8. Payment will be made in cash in U.S. dollars (or the local currency) or in terms of financial
arrangements comparable thereto.

9. The price represents the normal consideration for
the property sold, unaffected by special or creative
financing or sales concessions granted by anyone
associated with the sale.

This definition can also be modified to provide for valuation with specified financing terms. (Dictionary)
Market Area
The geographic region from which a majority of demand
comes and in which the majority of competition is located.

Depending on th e market, a market area may be further
subdivided into components such as primary, secondary,
and tertiary market areas , or the competitive market area may be distinguished from the general market area .
(Dictionary)
Market Rent
The most probable rent that a property should bring in a competitive and open market under all conditions requisite to a fair lease transaction, the lessee and lessor each acting prudently and knowledgeably, and assuming the rent is not affected by undue stimulus. (Dictionary)
Market Study
An analysis of the market conditions of supply, demand, and pricing for a specific property type in a specific area. (Dictionary)
Market Value (Most Common Non-FRT)
The most probable price, as of a specific date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell

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after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue distress.
(Dictionary)
Market Value (Interagency Guidelines)
The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Im plicit in this definition is the
consummation of a sale as of a specified date and the
passing of title from seller to buyer under conditions
whereby:

1. buyer and seller are typically motivated;

2. both parties are well informed or well advised, and
acting in what they consider their own best
interests;

3. a reasonable time is allowed for exposure in the
open market;

4. payment is made in terms of cash in U.S. dollars or
in terms of financial arrangements comparable
thereto; and

5. the price represents the normal consideration for
the property sold unaffected by special or creative
financing or sales concessions granted by anyone
associated with the sale. ( 12 CFR, Part 34, Subpart C
- Appraisals, 34.42(h)).

Marketability Analysis
The study of how a specific property is expected to perform in a specific market. A marketability analysis expands on a market analysis by addressing a specific property.
(Dictionary)
Neighborhood Analysis
The objective analysis of observable or quantifiable data indicating discernible patterns of urban growth, structure, and change that may detract from or enhance property
values; focuses on four sets of considerations that influence value: social, economic , governmental, and environmental factors. (Dictionary)
Net Net Net Lease
An alternative term for a type of net lease. In some markets, a net net net lease is defined as a lease in which the tenant assumes all expenses (fixed and variable) of operating a property excep t that the landlord is responsible for
structural maintenance, building reserves, and
management. Also called NNN lease, triple net lease, or fully net lease. (Dictionary)
Net Operating Income (NOI)
The actual or anticipated net income that remains after all operating expenses are deducted from effective gross
income but before mortgage debt service and book
depreciation are deducted. Note: This definition mirrors the convention used in corporate fina nce and business
valuation for EBITDA (earnings before interest, taxes,
depreciation, and amortization). (15th Edition)
Obsolescence
One cause of depreciation; an impairment of desirability and usefulness caused by new inventions, changes in
design, improved processes for production, or external
factors that make a property less desirable and valuable for a continued use; may be either functional or external.
(Dictionary)
Off-site Costs
Costs incurred in the development of a project excluding on- site costs such as grading and construction of the building and other improvements; also called common costs or off- site improvement costs. (Dictionary)
On-site Costs
Costs incurred for the actual construction of buildings and improvements on a particular site. (Dictionary)
Overage Rent
The percentage rent paid over and above the guaranteed minimum rent or base rent; calculated as a percentage of sales in excess of a specified breakeven sales volume. (15th Edition)
Overall Capitalization Rate (OAR)
The relationship between a single year’s net operating
income expectancy and the total property price or value. (Dictionary)
Parking Ratio
The ratio of parking area or parking spaces to an economic or physical unit of comparison. Minimum required parking ratios for various land uses are often stated in zoning ordinances. (Dictionary)
Personal Inspection
For an appraisal assignment, the appraiser’s in -person observation of the subject property performed as part of the scope of work. An appraiser’s personal inspection is typically limited to those things readily observable without the use of specialized equ ipment. A personal inspection is not the equivalent of an inspection by an inspection professional (e.g., a structural engineer, home inspector, or art
conservator. (USPAP)
Potential Gross Income (PGI)
The total income attributable to property at full occupancy before vacancy and operating expenses are deducted.
(Dictionary)
Potential Gross Income Multiplier (PGIM)
The ratio between the sale price (or value) of a property and its annual potential gross income. (Dictionary)
Present Value (PV)
The value of a future payment or series of future payments discounted to the current date or to time period zero.
(Dictionary)

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Prospective Opinion of Value
A value opinion effective as of a specified future date. The term does not define a type of value. Instead, it identifies a value opinion as effective at some specific future date. An opinion of value as of a prospective date is frequently sought in connection with projects that are proposed, under construction, or under conversion to a new use, or those that have not achieved sellout or a stabilized level of long - term occupancy. (Dictionary)
Qualitative Adjustment
An indicat ion that one property is superior, inferior, or similar to another property. Note that the common usage of the term is a misnomer in that an adjustment to the sale price of a comparable property is not made. Rather, the indication of a property’s superiority or inferiority to another is used in relative comparison an alysis, bracketing, and other forms of qualitative analysis. (Dictionary)
Quantitative Adjustment
In the application of the sales comparison and income
capitalization approaches, a numerical (dollar or
percentage) adjustment to the sale price, rent, or expense amount of a comparable property to account for the effect on value of a difference between each comparable property and the subject property. (Dictionary)
Rentable Area
The amount of space on which the rent is based; calculated according to local practice. (Dictionary)
Replacement Cost
The estimated cost to construct, at current prices as of a specific date, a substitute for a building or other
improvements, using modern materials and current
standards, design, and layout. (Dictionary)
Replacement Cost for Insurance Purposes
The estimated cost, at current prices as of the effective date of valuation, of a substitute for the building being valued, using modern materials and current standards, design and layout for insurance coverage purposes guaranteeing that damaged property i s replaced with a new property (i.e., depreciation is not deducted). (Dictionary)
Reproduction Cost
The estimated cost to construct, at current prices as of the effective date of the appraisal, an exact duplicate or replica of the building being appraised, using the sa me or similar materials, construction standards, design, layout, and
quality of workmanship and embodying all the deficiencies, superadequacies, and obsolescence of the subject building. (Dictionary)
Retrospective Value Opinion
A value opinion effective as of a specified historical date. The term retrospective does not define a type of value. Instead, it identifies a value opinion as being effective at some specific prior date. Value as of a historical date is frequently sought in connection with property tax appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g., “retrospective market value opinion.” (Dictionary)
Sales Comparison Approach
The process of deriving a value indication for the subject property by comparing sales of similar properties to the property being appraised, identifying appropriate units of comparison, and making adjustments to the sale prices (or unit prices, as appropr iate) of the comparable properties based on relevant, market-derived elements of comparison.

The sales comparison approach may be used to value
improved properties, vacant land, or land being considered vacant when an adequate supply of comparable sales is
available. (Dictionary)
Scope of Work
The type and extent of research and analysis in an appraisal or appraisal review assignment. Scope of work includes, but is not limited to:

The extent to which the property is identified;
The extent to which tangible property is inspected;
The type and extent of data researched; and
The type and extent of analysis applied to arrive at opinions or conclusions. (USPAP)
Shopping Center Types
Neighborhood Shopping Center: The smallest type of
shopping center, generally with a gross leasable area of between 30,000 and 100,000 square feet. Typical anchors include supermarkets. Neighborhood shopping centers
offer convenience goods and personal services and usually depend on a market population support of 3,000 to 40,000 people.

Community Shopping Center: A shopping center of 100,000 to 400,000 square feet that usually contains one junior department store, a variety store, discount or department store. A community shopping center generally has between 20 and 70 retail tenants and a market population support of 40,000 to 150,000 people.

Regional Shopping Center: A shopping center of 300,000 to 900,000 square feet that is built around one or two full-line department stores of approximately 200,000 square feet
each plus small tenant spaces. This type of center is typically supported by a minimum population of 150,000 people.

Super-Regional Center: A large center of 600,000 to 2.0 million square feet anchored by three or more full -line department stores. This type of center is typically supported by a population area of 300,000 people. (15th Edition)
Sum of the Retail Values
The sum of the separate and distinct market value opinions for each of the units in a condominium; subdivision
development, or portfolio of properties, as of the date of valuation. The aggregate of retail values does not represent the value of all the unit s as sold together in a single transaction; it is simply the total of the individual market

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value conclusions. An appraisal has an effective date, but summing the sales prices of multiple units over an extended period of time will not be the value on that one day unless the prices are discounted to make the value equivalent to what another developer or investor would pay for the bulk purchase of the units. Also called the aggregate of the retail values or aggregate retail selling price. (Dictionary)
Superadequacy
An excess in the capacity or quality of a structure or
structural component; determined by market standards.
(Dictionary)
Surplus Land
Land that is not currently needed to support the existing use but cannot be separated from the property and sold off for another use. Surplus land does not have an independent
highest and best use and may or may not contribute value to the improved parcel. (Dictionary)
Tenant Improvements (TIs)

1. Fixed improvements to the land or structures
installed for use by a lessee.

2. The original installation of finished tenant space in a construction project; subject to periodic change
for succeeding tenants. (Dictionary)
Usable Area
The area that is actually used by the tenants measured from the inside of the exterior walls to the inside of walls separating the space from hallways and common areas.
(Dictionary)
Useful Life
The period of time over which a structure or a component of a property may reasonably be expected to perform the function for which it was designed. (Dictionary)
Vacancy and Collection Loss
A deduction from potential gross i ncome (PGI) made to
reflect income deductions due to vacancies, tenant
turnover, and nonpayment of rent; also called vacancy and credit loss or vacancy and contingency loss. (Dictionary) Yield Capitalization
A method used to convert future benefits into present value by (1) discounting each future benefit at an appropriate yield rate, or (2) developing an overall rate that explicitly reflects the investment's income pattern, holding period, value
change, and yield rate. (Dictionary)

*Updated February 2026

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Senior Valuation Services Director
Valuation & Advisory Services

[email protected]
Direct: +1 916 724 5582
Fax: +1 916 724 5634
colliers.com

1508 Eureka Road
Suite 250
Roseville, CA 95661
United States

Joe Esparza, MAI

Area of Expertise
Joe Esparza is a Senior Valuation Services
Director in the Valuation & Advisory
Services Group’s Roseville office in the
Northern California Region. Mr. Esparza’s
primary geographical area of expertise is
the greater Northern California region
including the Sacr amento area, Central
Valley, Bay Area, and Lake Tahoe area.

Mr. Esparza is a certified general
appraiser and is a member of the
Appraisal Institute. He holds a California
State Certified General Appraiser license.

Affiliations or Memberships
Member – Appraisal Institute
California Office of Real Estate
Appraisers, Certified General Appraiser
License ID #AG031186

Professional Background
For the past six years, Mr. Esparza has
specialized in the valuation of commercial
properties including office, retai l, net
leased investment, industrial, land and
multifamily. Prior to joining Colliers
International Valuation & Advisory
Services, Mr. Esparza worked as a Senior
Appraiser for CBRE in Sacramento, CA.

Representative Clients and Projects
• Citibank
• Bank of America
• Chase
• Wells Fargo
• Farmers & Merchants
• Bank of the West
• Community West Bank
• Cathay Bank
• East West Bank
Appraisal experience includes the
following types of assignments
throughout Northern and Central
California
• Office Buildings
• Medical Office Buildings
• Commercial Land
• Anchored Retail Centers
• Cold Storage
• Residential Land
• Industrial Buildings
• Residential Subdivisions
• Shopping Centers
• Industrial Land
• Apartment Complexes
• Mobile Home Parks
Education or Qualifications
Bachelor of Arts Degree
In Economics
California State University at
Sacramento

State Certifications
California
Nevada

08/11/2026 Item No.22.

Joe Esparza, MAI
Senior Valuation Specialist
Valuation & Advisory Services

[email protected]
Direct: +1 916 724 5582
Fax: +1 916 724 5634
colliers.com

1508 Eureka Road
Suite 250
Roseville, CA 95661
United States

Significant Assignments
Office
• Hall of Justice | 42,000 SF | Class C Office
• Bradshaw Business Park | 335,000 SF | Class C Flex Office • Prospect Park | 123,000 SF | Class A Office Building
• One Capital Center | 19,000 SF | Class A Building
• 3300 Zinfandel Drive | 127,000 SF | Class B mid rise
Retail
• Dublin Place | 190,000 SF | Anchored Retail Center
• Sierra Center | 75,000 SF | Class B 3-story
• Marketplace at Birdcage | 300,000 SF | Anchored Shopping Center • Kohl’s | 76,000 SF | Department Store
Multifamily
• North Pointe Apartments | 312 Units | Class A garden complex • Mesa Verde | 144 Units | Class B garden complex
• Lake Pointe | 232 Units | Class A garden complex
Industrial
• Lathrop Industrial Park | 375,000 SF | Warehouse/Distribution Center • Northbay Logistics Center | 838,000 SF | Distribution Center • Beard Industrial Park | 131,000 SF | Distribution/Warehouse • Western Unified Grocers | 890,000 SF | Cold Storage Warehouse/Distribution Center
Land
• Mather Project | 639 Raw Acres | Residential mixed-use development • Sycamore Creek Estates | 87 Acres | Residential Subdivision • Ione Project | 134 Acres | Residential Finished Lots

08/11/2026 Item No.22.

08/11/2026 Item No.22.

Valuation &
Advisory Services
Accelerating success.

08/11/2026 Item No.22.

In today’s dynamic business climate, accurate property values are critical to confident decision- making. At Colliers, we deliver precise and data-driven valuations that empower informed real estate investment strategies — whether for acquisitions, financing, or portfolio optimization.

Leveraging deep local market intelligence and Colliers’ global reach, our experts provide insights into property fundamentals, competitive positioning, and market dynamics — giving investors, lenders, and owners a clear advantage.

We are defined by our unwavering commitment to service excellence, deep market experience, and platform efficiencies that empower our professionals to apply disciplined methodologies and consistently achieve high-quality results that exceed client expectations.

Expertise that drives value
Our professionals bring deep market knowledge and valuation experience across a wide range of asset types, enabling smarter decisions and stronger outcomes. We deliver reliable, industry-leading valuations applying insights powered by proprietary data, advanced tools, and real-time market intelligence.

Integrated platform that empowers performance
Our robust systems — including portfolio management tools and automation technology — streamline production and reporting, allowing our professionals to focus on what they do best: delivering high-impact valuations. This commitment to innovation drives efficiency and consistency across every engagement.

Commitment to service excellence
From coast to coast, our disciplined team delivers a consistent, high-quality client experience — marked by fast turnaround times, clear communication, and dependable results. This standard of service reflects our culture of innovation, collaboration, and professionalism.

Unlock strategic value with expert valuation services
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licensed appraisers
and staff
30,000+
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Valuation & Advisory Services
market locations across the country,
Puerto Rico and the Caribbean
Local expertise, global platform

08/11/2026 Item No.22.

Offering a full suite of valuation and advisory services, our skilled professionals provide custom assessments that help companies and investors make informed investment decisions.

Expertise across property types and enhanced
advisory services
Deep knowledge, broader capabilities
Our valuation professionals possess comprehensive expertise across all major property types nationwide. At the same time, most bring an extensive background in specific asset classes — allowing dedicated specialists to focus deeply on core property types and the market trends that matter most to our clients’ bottom line.

Valuation & Advisory
Specializations
Right-of-Way
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Segregation
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Fund Valuation
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Valuation (PPA)
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Financing
Alternative
Valuations/Evals
Appraisal
Management
Affordable Housing Automotive Economic Incentives Education Energy & Sustainability Food & Beverage Golf Course Government Healthcare Hospitality Industrial Land Law Firm Life Sciences Logistics & Transportation M anufactured Housing & RV M
arinas Offi
ce Retail Self Storage Seniors Housing Student Housing Advisory solutions that go further
Our capabilities extend beyond core and specialized valuations to include advisory services that help clients navigate complex financial scenarios and achieve strategic objectives, including servicing the portfolio and fund valuation requirements for a wide range of institutional investors.

Industrial Hospitality Manufactured
Housing
Multifamily Self-Storage Healthcare Office Retail
Appraisal Management
Alternative Valuations
Litigation Support & Right-of-Way
Portfolio
Valuation
Financial Reporting
Cost Segregation

08/11/2026 Item No.22.

Forbes
2025, 2024, 2023 World’s
Best Employers
IAOP
Global Outsourcing 100:

Recognized for 19
consecutive years
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Companies
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(Top 3 for the
last 8 years)
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Global Recognitions
Valuation & Advisory Services National Leadership
Jeremy Walling, MAI, MRICS
President | US
Valuation & Advisory Services
[email protected]
+1 312 371 4920
Jerry Gisclair, MAI, MRICS
Executive Vice President
US Client Relations & Service
[email protected]
+1 813 871 8531
Jeff Shouse, MAI, CRE
Executive Vice President
Western US
[email protected]
+1 916 724 5531
PJ Cusmano, MAI, MRICS
Executive Vice President
Eastern US
[email protected]
+1 813 229 1599
Bruce Nell, MAI, AI-GRS, MRICS
Senior Vice President | Advisory Services &
Manufactured Housing Practice Leader
[email protected]
+1 614 437 4687
Anjanette “AJ” Hutson, MAI, AI-GRS
Executive Managing Director
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+1 704 973 7202
Our Experts
Click or Scan code to view Regional and Market Valuation Expert contact list.

This document has been prepared by Colliers for advertising and general information only. Colliers makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers and/or its licensor(s). © 2026. All rights reserved. This communication is not intended to cause or induce breach of an existing engagement agreement. Colliers International Valuation & Advisory Services, LLC

08/11/2026 Item No.22.

ATTACHMENT 3

PURCHASE AND SALE AGREEMENT

08/11/2026 Item No.22.

4929-0610-3747.2 011399.076 1

AGREEMENT OF PURCHASE AND SALE
by and between

LAKESIDE CHURCH,
a California nonprofit corporation,
as SELLER
and the CITY OF FOLSOM,
a municipal corporation,
as BUYER

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4929-0610-3747.2 011399.076 2

AGREEMENT OF PURCHASE AND SALE
THIS AGREEMENT OF PURCHASE AND SALE (“Agreement”) dated as of August __, 2026 (“Effective Date ”), is mad e by and between Lakeside Church, a California nonprofit corporation (“Seller”), and the City of Folsom, a municipal corporation (“Buyer”).

WITNESSETH:

WHEREAS, Seller is the owner of that certain Property defined herein; and WHEREAS, Seller desires to sell to Buyer, and Buyer desires to purchase from Seller, the Property on the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the mutual promises hereinafter set forth and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

ARTICLE 1

CERTAIN DEFINITIONS
“Affiliate” means any Person controlling, controlled by, or under common control with, another Person.
“Buyer’s Transaction Expenses” means Buyer’s actual, out of pocket costs incurred during the pendency of this Agreement in negotiating this Agreement or other agreements related to the Property, preparing architectural, engineering, and other plans and specifications to develop the Property, and the costs associated with the Third Party Reports, any Survey, the Title Commitment, and Buyer’s other due diligence activities.
“City” means City of Folsom.
“Environmental Law ” means (a) whenever enacted or promulgated, any applicable Federal, state, foreign or local law, statute, ordinance, rule, regulation, license, permit, authorization, approval, consent, court order, judgment, decree, injunction, code, requirement or agreement with any governmental entity, (i) relating to pollution (or the cleanup thereof), or the protection of air, water vapor, surface water, groundwater, drinking water supply, land (including land surface or subsurface), plant, aquatic and animal life from injury caused by a Hazardous Substance or (ii) concerning exposure to, or the use, containment, storage, recycling, reclamation, reuse, treatment, generation, discharge, transportation, processing, handling, labeling, production, disposal or remediation of any Hazardous Substance, or Hazardous Activity, as now or hereafter in effect, and (b) any common law or equitable doctrine (including, without limitation, injunctive relief and tort doctrines such as negligence, nuisance, trespass and strict liability) that may impose liability or obligations or injuries or damages due to or threatened as a result of the presence of, exposure to, or inadvertent ingestion of, any Hazardous Substance. The term Environmental Law includes, without limitation, the Federal Comprehensive Environmental Response Compensation and Liability Act of 1980, the Superfund Amendments and Reauthorization Act, the Federal Water Pollution Control Act, the Federal Clean Air Act, the Federal Clean Water Act, the Federal Resources Conservation and Recovery Act of 1976 (including the Hazardous and Solid Waste

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4929-0610-3747.2 011399.076 3
Amendments to RCRA), the Federal Solid Waste Disposal Act, the Federal Toxic Substance Control Act, the Federal Insecticide, Fungicide and Rodenticide Act, the Federal Occupational Safety and Health Act of 1970, the Federal National E nvironmental Policy Act, the Federal Hazardous Materials Transportation Act, the California Hazardous Waste Control Act, Health and Safety Code Sections 25100, et seq., the California Hazardous Substance Account Act, Health and Safety Code Sections 25330, et seq., the California Safe Drinking Water and Toxic Enforcement Act, Health and Safety Code Sections 25249.5, et seq., California Health and Safety Code Sections 25280, et seq. (Underground Storage of Hazardous Substances), the California Hazardous Waste Management Act, Health and Safety Code Sections 25170.1, et seq., California Health and Safety Code Sections 25501 et seq. (Hazardous Materials Release Response Plans and Inventory), the California Porter -Cologne Water Quality Control Act, Water Code Sections 13000 et seq., California Health and Safety Code Section 26316, each as now or hereafter in effect. “Governmental Authority” means any federal, state or local government, authority, agency or regulatory body.
“Hazardous Activity” means any activity, process, procedure or undertaking which directly or indirectly (a) procures, generates or creates any Hazardous Substance; (b) causes or results in (or threatens to cause or result in) the release, seepage, spill, leak, flow, discharge or emission of any Hazardous Substance into the environment (including the air, soil, ground water, watercourses or water systems), (c) involves the containment or storage of any Hazardous Substance; or (d) would cause the Property or any portion thereof to become a hazardous waste treatment, recycling, reclamation, processing, storage or disposal facility within the meaning of any Environmental Law.
“Hazardous Substance” means (a) any substance, material, product, petroleum, petroleum product, derivative, compound, mineral (including asbestos), chemical, gas, medical waste, other pollutant, or mixture thereof, that is toxic, harmful or hazardous or acutely hazardous to th e environment or public health or safety or (b) any substance supporting a claim under any Environmental Law, whether or not defined as hazardous as such under any Environmental Law.

Hazardous Substances include, without limitation, any toxic or hazardous waste, pollutant, contaminant, industrial waste, petroleum or petroleum -derived substances or waste, radon, radioactive materials, asbestos, asbestos-containing materials, urea-formaldehyde foam insulation, lead paint and polychlorinated biphenyls.
“To the knowledge of Seller” or “Seller’s knowledge” or words of similar import , when used in this Agreement , shall be deemed to refer to the current actual knowledge of Michael Klockenbrink at the times indicated only and not any implied, imputed or constructive knowledge, without any independent investigation having been made or any implied duty to investigate. “Person” means an individual, partnership, limited partnership, limited liability company, association, corporation or other entity.
“Transaction” means the transaction contemplated in this Agreement.

ARTICLE 2

PURCHASE AND SALE OF PROPERTY

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4929-0610-3747.2 011399.076 4
Section 2.1 Sale. Seller hereby agrees to sell and convey to Buyer, and Buyer hereby agrees to purchase from Seller, subject to the terms and conditions set forth herein, the following:
(a) Approximately 7.308 gross acres (6.692 net acres) of vacant land on the northeast corner of East Bidwell Street and Oak Avenue Parkway, located in Folsom, California , as further described on Exhibit A attached hereto, such land being referred to herein as (the “Real Property”);
(b) any improvements situated on, or affixed or appurtenant to the Real Property (collectively, the “Improvements”); and
(c) all tenements, hereditaments, easements, rights-of-way, rights, privileges in and to the Real Property, if any, including (i) easements over other lands granted by any easement agreement, (ii) any streets, ways, alleys, vaults, gores or strips of land adjoining the Real Property, (iii) to the extent owned by Seller, any and all subsurface rights as to minerals, oil, gas and other hydrocarbon substances relating to the Real Property , and (iv) all sanitary sewer or other utility capacity, including any and all water and water rights, water and sewer taps, water meters, storm sewer or wastewater capacity or reservations and rights under utility agreements with any applicable governmental or quasi governmental entities or agencies with respect to the providing of utility services, and (v) entitlements, approvals, governmental rights, permits and licenses, and rights under governmental agreements, plans, plats, applications and registrations related to the Real Property (collectively, the “Appurtenances”).

All of the items referred to in subparagraphs (a) through (c) above are collectively referred to as the “Property.”
Section 2.2 Purchase Price.
(a) The total purchase price of the Property shall be equal to Seven Million One Hundred Thousand Dollars ($7,100,000) (the “Purchase Price”). (b) The Purchase Price shall be paid as follows:
(i) Within three (3) business days after the Effective Date, Buyer shall deposit in escrow (“Escrow”) with Placer Title Company, Attn: Rhonda Pastrana, 1508 Eureka Road, Suite 150, Roseville, CA 95661, Tel. (916) 782 -3711, E-mail [email protected] (the “Title Company”), cash in the amount of Seventy-One Thousand Dollars ($71,000.00) (the “Deposit”). The Deposit shall be held in a federally -insured interest-bearing account and interest accruing thereon shall become part of the Deposit and shall be held for disposition, as part of the Deposit, in accordance with this Agreement, and any supplementary escrow instructions executed in accordance with Section 10.1 below.
(ii) The balance of the Purchase Price following application of the Deposit as provided above, shall be paid to Seller in immediately available funds via wire transfer at the consummation of the Transaction (the “Closing”). (c) The parties hereby acknowledge and agree that a portion of the Deposit equal to One Hundred Dollars ($100.00) (the “Independent Consideration”) constitutes a payment

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4929-0610-3747.2 011399.076 5
by Buyer to Seller which has been bargained for and agreed to as consideration for Seller ’s execution and delivery of this Agreement. The Independent Consideration shall be disbursed to Seller immediately following Buyer’s deposit thereof with Title Company . The Independent Consideration is non -refundable in all events. In all instances under this Agreement in which Buyer elects to terminate or is deemed to have terminated this Agreement and the Deposit is returned to Buyer, Seller shall retain the Independent Consideration when the Deposit is returned to Buyer. The Independent Consideration shall not be applicable to the Purchase Price or treated as consideration given by Buyer for any purpose other than as provided herein. The parties intend and agree that the amount of the Independent Consideration is sufficient consideration for the rights and options extended to Buyer hereunder.

ARTICLE 3

INSPECTION PERIOD
Section 3.1 Inspection Period.
(a) Within five (5) days after the Effective Date, Seller shall provide Buyer with the due diligence items listed on Exhibit B (the “Due Diligence Materials ”) that are within the Seller’s possession or control on or before the Effective Date. Seller, at its sole cost and expense, has instructed the Title Company to prepare for delivery to Buyer, as soon as practical, a preliminary title report (“Title Commitment ”) for the Property, together with copies of the recorded documents described as exceptions therein or electronic hyperlinks to such documents.

Buyer shall have un til the date that is forty-five (45) calendar days after the Effective Date to complete its due diligence investigation of the Property (such period referred to herein as the “Inspection Period ”). During the Inspection Period, Buyer may review the Due Diligence Materials, conduct a physical inspection of the Property, conduct such other inspections with respect to the Property as Buyer deems advisable, and review reports with respect to the Prope rty as Buyer deems advisable (collectively, the “Third Party Reports”), including but not limited to:
(i) an engineering report, grading report, a property condition report, and a geotechnical report; (ii) an environmental assessment report; (iii) the Title Commitment and any other title report and commitment for title insurance or title insurance policies Buyer may choose to review ; (iv) a current ALTA survey (the “Survey”) which Buyer may elect to obtain at Buyer ’s cost; (v) an appraisal for the Property , (vi) a market study for Buyer’s intended use of the Property and if obtained, to provide a copy to Seller, (vii) the merchantability, suitability or condition of the Property for any purpose or its fitness for any particular use, (viii) the profitability, legality and/or feasibility of owning, developing, operating and/or improving the Property either now or at any time in the future and related tax consequences , ( ix) the physical condition of the Property, including, without limitation, any geological conditions relating to the Property, including soil conditions, soil and terrain stability, subsidence, subsurface conditions, earthquake faults, drainage, flood hazards, fire hazards, soil conditions, the current or former presence or absence of environmental hazards or hazardous materials, asbestos, radon gas, underground storage tanks, electromagnetic fields, or other substances or conditions which may affect the Real Property, or in the vicinity of the Real Property, or its current or future uses, habitability, value or desirability, (x) the potential sales, rentals, income, costs or expenses thereof, (xi) the boundaries and the net or gross acreage, useable or unusable, contained therein, (xii) a zoning and entitlement analysis or report for the zoning of the Property, the existence of vested land use, zoning or building entitlements and permits affecting the Property, the necessity of any use permit or variance,

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4929-0610-3747.2 011399.076 6
(xv) the condition of title, encroachments with respect to the Property, (x iii) Environmental Law and similar laws governing or relating to any Hazardous Activity, Hazardous Substance, underground storage tanks, electromagnetic fields, or other substances or conditions which may affect the Property or its current or future uses, habitability, value or desirability, (xiv) water, gas, electricity, internet or other utilities available to the Property, (xv) any use restrictions, any environmental, protected, wetlands, habitat and flood control matters, (x vi) availability of and connection to sewer, septic, well systems and components and storm drain systems, (x vii) usages of adjoining real property and other neighborhood conditions, including, schools, proximity and adequacy of law enforcement and fire protection, crime statistics, noise or odor from any sources, landfills, proposed future developments, or other conditions or influences which may be significant to certain cultures or religions, or (x viii) any other past, present or future matter relating to the Property which may affect the Property or its current or future use, habitability, value or desirability (collectively with the Due Diligence Materials and Third Party Reports, the “Property Conditions”).

Section 3.2 Notice of Title Defects.
(a) In the event the Survey , if any, obtained by Buyer (as may be updated) or the Title Commitment reflects encumbrances or other conditions not acceptable to Buyer (“Defects”), Buyer shall notify Seller in writing of such Defects (i) no later than the expiration of the Inspection Period with respect to the Survey, and (ii) no later than ten (10) business days after Buyer’s receipt of the Title Commitment with respect to the Title Commitment. Seller shall have the option to elect to cure or not cure any or all of such Defects prior to the Closing Date by sending notice of Seller’s election to Buyer within five (5) business days after Seller’s receipt of Buyer’s notice of Defects as to the Title Commitment or as to the Survey, if any. Seller’s failure to deliver such election to Buyer within the time period specified above shall be deemed to constitute Seller’s election not to eliminate or cure any such Defects. With respect to any Defects which Seller elects to cure, Seller shall thereupon diligently proceed to cure such Defects prior to the Closing Date as a condition to Closing for the benefit of the Buyer . With respect to any Defects which Seller has not agreed to cure (or has been deemed to have not agreed to cure), Buyer shall, no later than the later of (x) ten (10) business days after receipt of Seller ’s election notice or (y) the expiration of the Inspection Period, either waive such Defect (in which event such Defect shall be a Permitted Exception (as defined in Section 4.2)), or terminate this Agreement, in which case Buyer shall be entitled to the return of the Deposit , and the parties shall be released from further liability hereunder except as provided in those Sections which expressly survive the termination of this Agreement. Notwithstanding anything to the contrary contained herein , on the Closing Date, Seller shall be required, at Seller’s sole cost and expense, to cure (i) all existing mortgages or other monetary liens on the Property by paying them off , and (ii) any and all encumbrances on the Property created by or resulting from an act or omission of Seller after the Effective Date. Seller’s failure to cure the items Seller elects to cure or the items set forth in the immediately preceding sentence shall be a default by Seller hereunder. Seller will not cause any new encumbrances to be recorded against the Property after the Effective Date , except as may be approved by Buy er in writing, which approval shall not be unreasonably withheld so long as the new encumbrance does not increase the cost of developing the Property or adversely affect Buyer’s Intended Use (in which case, Buyer may withhold consent in its sole discretion).

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4929-0610-3747.2 011399.076 7
(b) Buyer shall have the right, at any time prior to Closing, to require the Title Company to update the Title Commitment. In the event that any such update of the Title Commitment shall reveal any new matters of title or other property conditions which were not disclosed in the previous version of the Title Commitment that are unacceptable to Buyer, then Buyer and Seller shall repeat the process to identify and resolve unacceptable matters as set forth in the preceding paragraph.

Section 3.3 Access to Property prior to Closing. Prior to Closing, Buyer, personally or through its authorized agents or representatives, shall be entitled, at Buyer ’s sole cost and expense, to enter upon the Property at all reasonable times in order to perform such investigations as Buyer shall deem necessary or desirable, including, without limitation, all soil and environmental tests and audits. Buyer shall inform Seller in advance of the vendor(s) which Buyer intends to utilize for on -site inspection and testing. Prior to access to the Property, s uch vendors shall provide Seller with a certificate of insurance for their general liability insurance policy with coverage limits of at least $1,000,000 combined single limit . Buyer shall inform Seller of the intended vendor work scope and date/time of intended work ; provided that no invasive or subsurface testing or boring shall be performed unless Seller has approved the work plan for such testing or boring, which approval will not be unreasonably withheld. Seller shall not interfere with and agrees to cooperate with Buyer ’s activities and inspections undertaken with respect to the Property. Buyer shall not permit any liens or encumbrances to arise against the Property in connection with or as a result of such inspections, studies or investigations. Buyer shall repair any damage to the Property that is a direct result of Buyer ’s entering upon the Property to test, study, investigate or inspect the Property to as near as practicable to its original condition, and Buyer shall indemnify, defend and hold Seller and the Property harmless of and from any and all losses, liabilities, costs, expenses (including without limitation reasonable attorneys ’ fees and costs of court), damages, liens, claims (including without limitation mechanics ’ or materialmen’s liens or claims of liens), actions and causes of action arising from or relating to Buyer’s (or Buyer’s agents, vendors, employees or representatives) entering upon the Property to test, study, investigate or inspect the Property, except to the extent caused by the negligence or willful misconduct of Seller; provided, however, under no circumstances shall Buyer be responsib le for any pre -existing environmental conditions at the Property. The provisions of this Section 3.3 are intended to survive Closing or any earlier termination of this Agreement, as the case may be.

Section 3.4 Termination Notice; Disposition of Initial Deposit; Return of Due Diligence Materials. At any time on or before 5:00 p.m. Pacific Time on the last day of the Inspection Period, Buyer shall have the right to terminate this Agreement for any reason or no reason by providing written notice to Seller. If within such time period, Buyer fails to provide such written termination notice, or provides Seller with a written waiver of such right to terminate, then Buyer shall be deemed to have approved the Property Conditions and waived the right to terminate this Agreement within the Inspection Period. If Buyer terminates this Agreement before the expiration of the Inspection Period , then the Deposit shall be returned to Buyer and neither party shall have any further rights or obligations hereunder except as provided in those Sections which expressly survive the termination of this Agreement. In the event this Agreement is terminated during or at any point after the Inspection Period, Buyer agrees to promptly return to Seller all Due Diligence Materials delivered to Buyer by Seller, along with, to the extent Seller requests such items and Purchaser can do so without the consent of the related third party (or with the consent of the related third party after a reasonable request), any environmental studies,

08/11/2026 Item No.22.

4929-0610-3747.2 011399.076 8
topographical maps, engineering reports, surveys or other items of third party due diligence that Buyer has procured in connection with investigation of the Property.

Section 3.5 Required Disclosures. Buyer and Seller acknowledge that Seller may be required to disclose if the Property lies within the following natural hazard areas or zones: (i) a special flood hazard area designated by the Federal Emergency Management Agency (California Civil Code Section 1103(c)(1)); (ii) an area of potential flooding (California Government Code Section 8589.4); (iii) a very high fire hazard severity zone (C alifornia Government Code Section 51178 et seq.); (iv) a wild land area that may contain substantial forest fire risks and hazards (Public Resources Code Section 4135; (v) earthquake fault zone (Public Resources Code Section 2622); or (vi) a seismic hazard zone (Public Resources Code Section 2696) (sometimes all of the preceding are herein collectively called the “Natural Hazard Matters”). Buyer and Seller hereby instruct the Title Company , or an affiliate thereof (who, in such capacity, is called the “Natural Hazard Expert”), at Seller’s expense, to examine the maps and other information specifically made available to the public by government agencies for the purposes of enabling Seller to fulfill its disclosure obligations, if and to the extent such obligations exist, with respect to the natural hazards referred to in California Civil Code Section 1103 et seq. and to report the result of its examination to Buyer and Seller in writing. The written report prepared by the Natural Hazard Expert regarding the results of its full examination (the “Natural Hazard Disclosure Statement ”) will fully and completely discharge Seller from its disclosure obligations referred to in this Section 3.5, if and to the extent any such obligations exist, and, for the purpose of this Agreement, the provisions of Civil Code Section 1103.4 regarding nonliability of Seller for errors or omissions not within its personal knowledge shall be deemed to apply and t he Natural Hazard Expert shall be deemed to be an expert, dealing with matters within the scope of its expertise with respect to the examination and written report regarding the natural hazards referred to above. Buyer agrees to, promptly after Seller’s written request thereof, provide Seller with a standardized form of acknowledgment of its receipt of the Natural Hazard Disclosure Statement.

ARTICLE 4
TITLE
Section 4.1 Transfer of Title. At the Closing, Seller shall convey to Buyer title to the Real Property by good and sufficient Grant Deed in the form attached hereto as Exhibit C (the “Deed”).

Section 4.2 Evidence of Title. Delivery of title in accordance with Section 4.1 shall be evidenced by the willingness of the Title Company to issue, at the Closing, its standard Owner ’s American Land Title Association Policy of Title Insurance (the “Title Policy”) in the amount of the Purchase Price showing title to the Real Property, Improvements, and the Appurtenances vested in Buyer, and subject to no exceptions other than the following (“Permitted Exceptions”):
(i) non-delinquent liens for local real estate taxes and assessments; (ii) matters affecting the condition of title to the Property created by or resulting from the acts of Buyer;

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4929-0610-3747.2 011399.076 9
(iii) title matters shown in the Title Commitment or matters depicted on the Survey which Buyer has accepted or has been deemed to accept in accordance with Section

3.2 above, or, if Buyer fails to procure a Survey, that are ascertainable by a reasonable inspection and survey of the Property;
(iv) except for Defects that Buyer has objected to pursuant to the process set forth in Section 3.2 above, all other matters of public record recorded against the Property; and (v) such other exceptions as Buyer has approved or waived in writing.

ARTICLE 5

REPRESENTATIONS AND WARRANTIES
Section 5.1 Representations and Warranties of Seller. Seller represents and warrants to Buyer that:
(a) Seller is a corporation, duly organized, validly existing and in good standing under the laws of the State of California. This Agreement (i) has been duly authorized, executed and delivered by Seller, (ii) constitutes a legal, valid and binding obligation of Seller, enforceable against Seller in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, arrangement, moratorium or other similar laws from time to time in effect which affect the rights of creditors generally or by limitations upon the availability of equitable remedies (“Creditor’s Rights and Equity”), and (iii) does not violate any of Seller’s charter documents or any provision of any agreement or judicial order to which Seller is a party or to which Seller or the Property is subject. All other documents executed by Seller which are to be delivered to Buyer at the Closing (x) are or at the time of the Closing will be duly authorized, executed and delivered by Seller, (y) are or at the time of the Closing will be legal, valid and binding obligations of Seller enforceable against Seller in accordance with their terms except as such enforceability may be limited by applicable Creditor’s Rights and Equity, and (z) do not and at the time of the Closing will not violate any provision of any agreement or judicial order to which Seller is a party or to which Seller or the Property is subject. (b) Neither Seller nor any of the members of Seller is a Specially Designated National or Blocked Person. As used herein, the term “Specially Designated National or Blocked Person” shall mean a person or entity (i) designated by the Department of Treasury ’s Office of Foreign Assets Control, or other governmental entity, from time to time as a “specially designated national or blocked person” or similar status, (ii) described in Section 1 of U.S. Executive Order 13224 issued on September 23, 2001, or (iii) otherwise identified by government or legal authority as a person or entity with whom Buyer or its affiliates are prohibited from transacting business. (c) Seller has not been the subject of any filing of a petition under the United States Bankruptcy Code, 11 U.S.C.A. §§ 101 et seq. or any federal or state insolvency laws or laws for composition of indebtedness or for the reorganization of debtors. No attachments, execution proceedings, assignments for the benefit of creditors, insolvency, bankruptcy, reorganization, or other proceedings are pending or, to Seller ’s knowledge, threatened against Seller, nor are any such proceedings contemplated by Seller. Seller has not made a general assignment for the benefit of creditors, filed any voluntary petition in bankruptcy, or admitted in writing its inability to pay

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its debts as they come due or made an offer of settlement, extension or composition to its creditors generally, and Seller has received no written notice of: (i) the filing of any involuntary petition by Seller’s creditors; (ii) the appointment of a receiver to take possession of Seller ’s assets; or (iii) the attachment or other judicial seizure of Seller’s assets. (d) To the knowledge of Seller, no Hazardous Material have been disposed of, or identified on, under or at the Real Property except in quantities customarily used and in compliance with Environmental Laws. Seller has not received written notice from any political or quasi-political authority, subdivision, agency, department, court, commission, board, bureau or instrumentality of any of the foregoing asserting jurisdiction over any of the parties hereto or over the Property, that the Real Property is or may be in violation of any applicable federal, state or municipal law, ordinance or regulation regarding Hazardous Material. No lien exists, nor is any lien threatened against, all or any portion of the Real Property because of the existence of any substance, material or pollutant in violation of any Environmental Laws. To the knowledge of Seller, there are no underground storage tanks located on or under the Real Property. (e) There is no litigation filed against Seller or the Property that would adversely affect the ability of Seller to perform its obligations under this Agreement. (f) Except as described in this Agreement, Seller has not received nor has knowledge of any written notice of any condemnation, zoning or other land -use regulation proceedings, either instituted or planned to be instituted, which would adversely affect either the use and operation of the Property for its present use or the value of the Property. (g) Seller has not granted any lease, option, purchaser or other property rights in the Real Property to any other party, and a t Closing , no party other than Purchaser will be entitled to possession or use of the Real Property or any portion thereof. (h) To the knowledge of Seller, no representation or warranty of Seller in this Agreement contains any untrue statement of a material fact, or omits to state a material fact necessary to make the statements or facts therein not misleading.

The foregoing representations and warranties and any and all other representations and warranties of Seller contained herein shall survive the Closing Date for a period of twelve (12) months. All claims and actions by Buyer for and change or breach of any representations or warranties shall be brought on or before expiration of such survival period or be barred.

Seller agrees to give prompt written notice of any breach of any of the foregoing representations to Buyer after notice or discovery thereof by Seller. If any of the foregoing representations becomes untrue after the Effective Date because of a change in circumstances, and Seller does not elect to cure such matters within ten (10) days after Seller’s receipt of a written request from Buyer to do so, then Buyer, at its sole and exclusive option, may either ( A) close and consummate the transaction contemplated by this Agreement, without reduction in the Purchase Price or ( B) terminate this Agreement by written notice to Seller, whereupon (I) if such change or breach was within the control of Seller and intentional (an “Intentional Breach”), then the Title Company shall return the Deposit to Buyer, reimburse Buyer for Buyer’s Transaction Expenses not to exceed the cap set forth in Section 10.5(a) and the parties shall have no further rights or obligations hereunder,

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or ( II) if such change or breach was not within the control of Seller and unintentional (an “Unintentional Breach”), then the Title Company shall return the Deposit to Buyer and in either case of cl auses (I) or ( II), the parties shall have no further rights or obligations hereunder. The Closing Date shall be postponed automatically, if necessary, to permit the full running of such 10- day period. Notwithstanding the foregoing, in the event Seller caused the material breach or had actual knowledge about the inaccuracy of the representation or warranty prior to the Effective Date, such change or breach shall be deemed a Seller ’s Default (hereinafter defined) hereunder and Buyer shall have the rights and remedies set forth in Section 10.5(a) hereof.

Section 5.2 Disclaimer of Representations and Warranties by Seller-AS IS/WHERE IS. (a) Except as otherwise expressly provided in this Agreement, Seller does not make any representations, guaranties, promises, statements, assurances or warranties of any kind or nature whatsoever, express or implied with respect to the Property, or Property Conditions, including without limitation, as to the financial condition, business, operations, assets, liabilities, or prospects of the Property or any of its operations, of any kind or nature whatsoever. (b) Without limiting the generality of the foregoing, and except as otherwise expressly provided in this Agreement, Buyer hereby acknowledges and agrees that it is purchasing the Property in its present “AS IS/WHERE IS” condition and with all defects and neither Seller nor any manager, employee or agent of Seller has made or will make, either expressly or impliedly, and Seller specifically negates and disclaims, any representations, guaranties, promises, statements, assurances or warranties of any kind including without limitation the Property Conditions.
(c) Buyer acknowledges that Seller may provide Buyer with certain information and documents with respect to the Property which Seller may have in its possession, which include, without limitation, the Due Diligence Materials. Notwithstanding the furnishing of such information, Buyer hereby acknowledges and agrees that Seller has not made and will not make any representations or warranties as to the completeness, accuracy or validity of such information, materials and/or documents. However, Selle r will allow Buyer to work with each third party to obtain a reliance letter, at the sole cost and expense of Buyer and not as a condition of Closing in favor of Buyer, for each third-party report. (d) As of the Closing Date, and with the exception of any breach of Seller ’s representations, warranties and covenants expressly made under this Agreement or Seller’s intentional fraud, Buyer hereby releases Seller and each Seller’s trustees, beneficiaries, managers, members, employees, officers, agents and representatives ( “Released Parties”) from any and all known and unknown claims, responsibility and/or liability that Buyer may now have or hereafter acquire against any of the Released Parties for any costs, loss, liability, damage, expenses, attorneys’ fees, demand, action or cause of action arising from or related to the Property or Property Conditions. This release includes claims of which Buyer is presently unaware or which Buyer does not presently suspect to exist which, if known by Buyer, would materially affect Buyer ’s release of the Released Parties. Buyer specifically waives the provision of California Civil Code Section 1542 (and any similar law or statute of any other jurisdiction), which provides as follows:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT WHICH THE

CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS

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OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN

BY HIM OR HER WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.”
(e) The terms and provisions of this Section 5.2 shall survive the Closing and shall not merge into the Deed or any other closing documents.

Section 5.3 Representations and Warranties of Buyer. Buyer represents and warrants to Seller that Buyer is a municipal corporation duly organized, validly existing, and in good standing under the laws of the state of California. Buyer further represents and warrants to Seller that this Agreement and all documents executed by Buyer which are to be delivered to Seller at the Closing (a) are or at the time of the Closing will be duly authorized, executed and delivered by Buyer, (b) are or at the time of the Closing will be legal, valid and binding obligations of Buyer, enforceable against Buyer in accordance with their terms, and (c) do not and at the time of the Closing will not violate any of Buyer ’s charter documents or any provision of any agreement or judicial order to which Buyer is a party or to which Buyer is subject. Buyer further represents and warrants to Seller as of the Effective Date and as of Closing that there are no pending, or to the actual knowledge of Buyer, threatened actions, suits, claims, legal proceedings or any other proceeding against Buyer, at law or in equity, before any court or Governmental Authority, which, if determined adversely, would affect Buyer ’s ability to perform its obligations under this Agreement. The foregoing representations and warranties of Buyer and any and all other representations and warranties of Buyer contained herein shall survive the Closing Date for a period of twelve (12) months.

ARTICLE 6
RISK OF LOSS; CONDEMNATION; OTHER COVENANTS
Section 6.1 Loss. Prior to Closing, the risk of loss or damage to the Property shall remain with Seller.

Section 6.2 Casualty, Condemnation and Insurance. If at any time prior to the date of Closing there is damage or destruction to the Property and the Property cannot be restored to its original condition prior to Closing, or if all or any material portion of the Property is condemned or taken by eminent doma in proceedings by any public authority, Seller will give Buyer written notice thereof and then, at Buyer ’s option, this Agreement shall terminate, and the Deposit shall be returned to Buyer, and except as expressly set forth herein, neither party shall have any further liability or obligation to the other hereunder.

If there is any damage or destruction or condemnation or taking, as above set forth, and if Buyer does not elect to terminate this Agreement as therein provided, then subject to the rights of any existing lienholder of the Property (1) in the case of a taking, all condemnation proceeds paid or payable to Seller shall belong to Buyer and shall be paid over and assigned to Buyer at Closing; and (2) in the case of a casualty, Seller shall assign to Buyer all rights to any insurance proceeds paid or payable under the applicable insurance policies and Seller shall pay to Buyer an amount equal to the deductible under Seller ’s applicable insurance policies, if such deductibles have not yet been paid to the insurer.

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Section 6.3 Intersection Monument Sign . Seller desires to have a monument sign exclusively displaying Seller’s name located on the Real Property at the corner of the intersection of East Bidwell Street and Oak Avenue Parkway (“ Monument Sign”). The exact location of the sign at this location and the design of the sign would need to comply with related laws, ordinances and regulations and be reasonable satisfactory with the City including, without limitation, obtaining a special allowance under the Planned Development Permit applicable to the Real Property (and modifications thereto). Seller and Buyer wish to pursue this subject following the Closing, provided, however, that Seller and Buyer will cooperate with commencing the process of obtaining a special allowance under the Planned Development Permit as soon as reasonably feasible before Closing and continuing the process after Closing. Seller and Buyer will exercise good faith to reach agreement on the location and design of the Monument Sign and a related easement or other legal right to install and maintain the Monument Sign at Seller’s cost and expense, and related terms for Seller ’s exclusive use of the Monument Sign. After the Closing, the City will grant to Seller such agreed easement and right to install the Monument Sign at no cost or charge to Seller, provided that Seller shall pay all permit fees and installation costs. The provisions of this Section 6.3 shall survive the Closing of the Transaction.

Section 6.4 Boundary Line Monuments. The parties hereto acknowledge that prior to or following the Closing, the City may wish to survey the Real Property and locate surveyor’s monuments at various points on the boundary lines of the Real Property. The parties acknowledge that if this work proceeds, then the related engagement of a surveyo r, installation work, payment of fees and any related matters will be the sole responsibility of Buyer and at Buyer’s sole cost and expense.

ARTICLE 7

BROKERS AND EXPENSES
Section 7.1 Brokers. The parties represent and warrant to each other that no broker or finder was instrumental in arranging or bringing about the Transaction and that there are no claims or rights for brokerage commissions or finder’s fees in connection with the Transaction, except for Peter Nixon and Kris Riley of Newcastle Properties Group representing the Seller , whose commissions shall be paid by Seller at or prior to Closing pursuant to a separate agreement. If any other Person brings a claim for a commission or finder ’s fee based upon any contact, dealings or communication with Buyer or Seller, then the party through whom such Person makes his claim shall defend the other party from such claim, and shall indemnify the other party and hold the other party harmless from any and all costs, damages, claims, liabilities or expenses (including, without limitation, reasonable attorneys’ fees and disbursements) incurred by the other party in defending against the claim. The provisions of this Section 7.1 shall survive the Closing or, if the purchase and sale is not consummated, any termination of this Agreement.

Section 7.2 Expenses.
(a) Seller will be responsible for (i) the cost of the premium’s for Buyer’s title policy to the extent of CLTA standard coverage in the amount of the Purchase Price ; (ii) all fees and expenses payable to all attorneys, agents and consultants retained by Seller ; (iii) one-half of all escrow fees, recording costs for the Deed to be delivered to Buyer by Seller at Closing or other charges imposed by the Title Company ; (iv) the cost of any documentary transfer taxes assessed

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by the County of Sacramento or City of Folsom; and (v) any additional charges customarily charged to sellers in accordance with common escrow practices in the greater Sacramento area. (b) Buyer will be responsible for: (i) the cost of obtaining any new Third Party Reports in connection with its due diligence investigations; (ii) the cost for Buyer’s title policy in excess of the portion of the premium described in Section 7.2(a)(i) above, including any costs attributable to ALTA extended coverage and any endorsements thereto, along with any title examination charges; (iii) one-half of all escrow fees, recording costs for the Deed to be delivered to Buyer by Seller at Closing or other charges imposed by the Title Company; (iv) all fees and expenses payable to all attorneys and consultants retained by Buyer; and (v) any additional charges customarily charged to buyers in accordance with common escrow practices in the City of Folsom. (c) All other transaction costs and expenses not allocated above shall be divided between the parties in accordance with the custom of the jurisdiction where the Property is located. (d) The provisions of this Section 7.2 shall survive the Closing, or, if the sale is not consummated, beyond the termination of this Agreement.

ARTICLE 8

CERTAIN COVENANTS OF SELLER
Section 8.1 Contract Covenants. Seller agrees, from and after the Effective Date and through and including the Closing Date, to do the following:
(a) Keep all existing liability insurance policies affecting the Property in full force and effect, and exercise commercially reasonable efforts to comply in all material respects with laws and regulations of Governmental Authorities (including Environmental Laws); and (b) Maintain the Property in substantially its present physical condition, consistent with Seller ’s past maintenance practices and procedures, except for damages due to casualty or condemnation.
(c) Exercise commercially reasonable efforts not to cause or permit any representation or warranty of Seller hereunder to become untrue in any material respect.

Section 8.2 Buyer’s Approval of Agreements Affecting the Property. Except as provided in this Agreement, between the Effective Date and the Closing Date, Seller shall not enter into or suffer to exist any new lease, license, contract, easement, covenant, condition, restriction, lien, security interest or other agreement or encumbrance affecting the Property (including, without limitation, any entitlements, approvals or other similar agreements), or amend, modify, terminate, or waive any provision of, any of the foregoing, without first obtaining Buyer’s written approval, which approval may not be unreasonably withheld provided the new agreement does not either (a) survive Closing or (b) affect Buyer’s development plans as reasonably determined by Buyer .

Seller shall submit to Buyer an actual copy of such new lease, license, contract, easement, covenant, condition, restriction, lien, security interest or other agreement, encumbrance, amendment, modification, termination or waiver at the time that Seller seeks Buyer ’s written approval.

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ARTICLE 9

CONDITIONS TO CLOSING
Section 9.1 Conditions to Buyer ’s Obligation to Close. The obligation of Buyer to acquire the Property on the Closing Date shall be subject to the satisfaction or written waiver of the following conditions precedent on and as of the Closing Date (collectively, “Buyer’s Closing Conditions”):
(a) Representations and Warranties of Seller.
(i) The representations and warranties of Seller set forth in Section 5.1 shall be true, complete and correct in all material respects on and as of the Effective Date. (ii) The representations and warranties of Seller set forth in Section 5.1 shall be true, complete and correct in all material respects on and as of the Closing Date. (b) Seller’s Performance. Seller shall have timely performed and observed all covenants and obligations required by this Agreement to be performed or delivered by it, including, without limitation, curing all Defects which Seller has elected to cure. (c) Seller’s Closing Deliveries . Seller shall have delivered to the Title Company all of Seller’s Closing Deliveries.
(d) Conveyance. Seller shall be ready, willing and able to transfer good, marketable, and indefeasible fee simple title to the Real Property and any and all Improvements thereon by way of the Deed, which shall be subject only to the Permitted Exceptions affecting or encumbering the Real Property or, if not, subject only to those additional encumbrances acceptable to Buyer in i ts sole discretion, and the remainder of the Property by way of one or more bills of sale, assignment and other appropriate documents as may be proposed by Buyer. (e) Title Policy. The Title Company shall be unconditionally obligated and prepared, subject only to payment of the applicable premium and other related charges and delivery of all conveyance documents, to issue the Title Policy in a form acceptable to Buyer in its sole discretion.
(f) No Bankruptcy . No Act of Bankruptcy on the part of Seller shall have occurred and remain outstanding as of the Closing Date. For purposes of this Section 9.1(e), “Act of Bankruptcy ” shall mean (i) the appointment of, or the taking of possession by, a receiver, custodian, trustee or liquidator of Seller or a substantial part of its property, (ii) the admission by Seller of its inability to pay its debts as they become due; (iii) the making of a general assignment for the benefit of Seller’s creditors, (iv) the commencement by or against Seller of a voluntary or involuntary proceeding under the Bankruptcy Code or any federal or state insolvency laws or laws for the composition of indebtedness or for the reorganization of debtors, (v) the adj udication of Seller as a bankrupt or insolvent, or (vi) the taking of any action for the purpose of effecting any of the foregoing.

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(g) Tenancies and Leases . The Property shall not be subject to any leases or tenancies of any nature, and no person or entity other than Seller shall be in possession of the Property, or any part thereof.
(h) Property Condition. There shall have been no material adverse change in the physical, environmental or geological condition of the Property. (i) No Restriction. There shall be no third -party injunction, writ, preliminary restraining order or any order of any nature issued by a court of competent jurisdiction directing that the Transaction not be consummated as herein provided which relates to the acts or omissions of Seller.
(j) Approval by City Council . The City Council shall have approved the acquisition of the Property.

Section 9.2 Conditions to Seller ’s Obligation to Close. The obligation of Seller to convey and transfer to Buyer the Property on the Closing Date is subject to the satisfaction or written waiver of the following conditions precedent on and as of the Closing Date (collectively, “Seller’s Closing Conditions”):
(a) Representations and Warranties of Buyer . The representations and warranties of Buyer set forth in Section 5.3 shall be true, complete and correct in all material respects on and as of the Effective Date and on and as of the Closing Date. (b) Buyer’s Performance . Buyer shall have performed all covenants and obligations required by this Agreement to be performed or delivered by it on or before the Closing Date.
(c) Buyer’s Closing Deliveries . Buyer shall have delivered to the Title Company all of Buyer’s Closing Deliveries.

ARTICLE 10

CLOSING AND ESCROW
Section 10.1 Escrow Instructions. Upon execution of this Agreement, the parties hereto shall deposit an executed counterpart of this Agreement with the Title Company, and this instrument shall serve as the instructions to the Title Company as the escrow holder for consummation of the purchase and sale contemplated hereby. Seller and Buyer agree to execute such reasonable additional and supplementary escrow instructions as may be appropriate to enable the Title Company to comply with the terms of this Agreement; provided, however, that in the event of any conflict between the provisions of this Agreement and any supplementary escrow instructions, the terms of this Agreement shall control unless otherwise agreed upon in writing by Seller and Buyer.

Section 10.2 Closing. The Closing hereunder shall be held and delivery of all items to be made at the Closing under the terms of this Agreement shall be made at the offices of the Title Company on the date which is no later than fifteen (15) days after expiration of the Inspection

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Period, or at such other time as Buyer and Seller may mutually agree upon in writing (the “Closing Date”).

Section 10.3 Deposit of Documents.
(a) At or before the Closing, Seller shall deposit into escrow the following items (collectively, the “Seller’s Closing Deliveries”):
(i) the duly executed and acknowledged Deed conveying to Buyer the Property, subject only to the Permitted Exceptions;
(ii) an affidavit executed by Seller pursuant to Section 1445(b)(2) of the United States Internal Revenue Code of 1986, as amended (the “Federal Code ”) reasonably acceptable to the Title Company and Buyer, and on which Buyer is entitled to rely, that Seller is not a “foreign person” within the meaning of Section 1445(f)(3) of the Federal Code; (iii) an assignment of development rights in the form attached hereto as Exhibit D;
(iv) a final settlement statement prepared by the Title Company and executed by Seller;
(v) an owner ’s affidavit executed by Seller provided by the Title Company and reasonably acceptable to the Title Company and Buyer; and (vi) a Withholding Exemption Certificate, Form 593-C stating either the amount of withholding required from Seller ’s proceeds or that Seller is exempt from the withholding requirement.
(b) At or before the Closing, Buyer shall deposit into escrow the following items (collectively, the “Buyer’s Closing Deliveries”):
(i) the funds necessary to pay the Purchase Price to Seller; (ii) a final settlement statement prepared by the Title Company and executed by Buyer;
(c) Buyer and Seller shall each deposit such other instruments as are reasonably required by the Title Company or otherwise required to close the escrow and consummate the purchase and sale of the Property in accordance with the terms hereof. Buyer and Seller hereby designate Title Company as the “Reporting Person” for the transaction pursuant to Section 6045(e) of the Federal Code and the regulations promulgated thereunder.

Section 10.4 Prorations.
(a) Taxes. Real estate taxes and assessments imposed by any governmental authority (which shall be deemed to include any special assessments, which shall be calculated based on the longest permitted payment period) not currently due and payable and affecting the

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Property for the tax year in which Closing occurs (a tax year being the year for which taxes accrue, rather than the year during which such taxes are payable) shall be prorated as of the Closing Date based on the most recent ascertainable assessed values a nd tax rates. Seller shall receive a credit for any taxes and assessments paid by Seller for the period during which the Closing Date occurs from the Closing Date to the end of the applicable taxing period. (b) Utility Deposits . Buyer shall take all steps necessary to effectuate the transfer of all utilities, if any, to its name as of the Closing Date, and where necessary, post deposits with the utility companies. Seller shall use good faith efforts to ensure that all utility meters applicable to the Property are read as of the Closing Date. Seller shall be entitled to recover any and all deposits posted by Seller and held by any utility company as of the Closing Date. (c) Insurance. The fire, hazard, flood and other insurance policies relating to the Property shall be cancelled by Seller as of the Closing Date and shall not, under any circumstances, be assigned to Buyer. All unearned premiums for fire and any additional hazard insurance premium or other ins urance policy premiums with respect to the Property shall be retained by Seller.
(d) Other Prorations. All other prorations and apportionments shall be made in accordance with customary practice where the Property is located, with the purpose and intent that Seller shall bear all expenses of ownership and operation of the Property through 11:59 p.m. of the day preceding the Closing Date and Buyer shall bear all such expenses thereafter. (e) Final Adjustments . If final prorations for those items addressed herein cannot be made on the Closing Date, then Buyer and Seller agree to allocate such items on an accrual basis as soon as invoices or bills are available, but with such final adjustment(s) to be made no later than ninety (90) days (or such longer time as may be required for final adjustment for real estate taxes) after the Closing Date. Income and expenses shall be received and paid by the parties on an accrual basis with respect to their period of owners hip. Payments in connection with such final adjustments shall be due within fifteen (15) days after mutual agreement of the amount(s) due. Each party shall have reasonable access to, and the right to inspect and audit the other party’s supporting documentation to confirm the final prorations, provided at least three (3) business days’ advance notice is given by the auditing party to the audited party. All provisions set forth in this section shall survive the Closing.

Section 10.5 Default; Remedies
(a) If Seller materially defaults in its covenants under this Agreement or if any of the representations or warranties of Seller contained in this Agreement shall be found to be materially untrue, Buyer shall have the right as Buyer ’s sole and exclusive remedies, and in substitution for any other remedies at law or in equity , after giving Seller twenty (20) business days’ prior written notice and the opportunity to cure such default within such twenty business day period (and the Closing Date shall be delayed, if necessary, until the end of such twenty (20) business day period), to exercise one of the following remedies: (x) seek specific performance of this Agreement and in connection with the exercise of the remedy of specific performance receive from Seller an amount equal to Buyer’s costs and expenses related to the exercise of such remedy, including without limitation reasonable attorneys ’ fees (or if the remedy of specific performance

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is not available because Seller has conveyed the Property in breach of this Agreement, bring an action seeking the greater of (A) direct damages and costs and expenses incurred by Buyer, and (B) the amount by which the purchase price obtained by Seller in connection with the conveyance exceeds the Purchase Price in this Agreement); (y) declare this Agreement to be null and void and demand and receive the return of the Deposit , and prompt reimbursement by Seller of Buyer ’s Transaction Expenses not to exceed $25,000.00, and upon receipt of such amounts, this Agreement will automatically terminate and the parties shall be released from further liability hereunder except as provided in those Sections which expressly survive the termination of this Agreement , or (z) waive the default and proceed to Closing without any adjustment of the Purchase Price. (b) In the event that Seller shall breach its obligations to Buyer under this Agreement in any way other than as described in Section 10.5(a) hereof (including, without limitation, for a breach of a representation or warranty discovered by Buyer after Closing) , then Buyer shall have all remedies against Seller available at law or in equity, provided that: (1) in no event may Buyer bring any claim against Seller unless the total damages for Seller’s breach are at least Twenty Five Thousand Dollars ($25,000.00), (2) in no event shall Seller’s aggregate liability to Buyer for any and all breaches of this Agreement (including without limitation representations, warranties, covenants, or indemnities) exceed Two Hundred Fifty Thousa nd Dollars ($250,000.00), and (c) in no event may Buyer bring any such claim or file suit thereon more than 180 days after the Closing Date.
(c) Notwithstanding anything to the contrary in this Agreement, neither Buyer nor Seller shall be liable to the other for punitive or consequential damages as a result of a breach or default under this Agreement. In no event shall any constituent partner or member in Seller or an Affiliate, nor any person or party that becomes a constituent member or partner in Seller or an Affiliate, nor any member, officer, manager, director, principal, partner or shareholder, employee, or beneficiary, trustee or agent of Seller or an Affiliate or any of the foregoing have any personal liability, directly, indirectly, under or in connection with this Agreement or the Property or any agreement made or entered into under or pursuant to the provisions of this Agreement or any amendment made to any o f the foregoing at any times heretofore or hereafter, and Buyer and its successors and assigns shall look solely to the assets of Seller for the payment of any claim or for any performance and Buyer, on behalf of itself and its successors and assigns, here by waives any such personal liability.
(d) The parties have ag reed that in the event that Buyer defaults under any of its material covenants, obligations and commitments set forth in this Agreement after Seller has given Buyer ten (10) business days ’ prior written notice and the opportunity to cure such default within such ten business day period (and the Closing Date shall be delayed, if necessary, until the end of such ten business day period) (a “Buyer’s Default”), it would be extremely difficult or impracticable to determine Seller ’s damages. After negotiation, the parties have agreed that, considering all the circumstances existing on the Effective Date, the Deposit is a reasonable estimate of the damages that Seller would incur in the event of a Buyer’s Default and retention of the Deposit by Seller shall be Seller’s sole remedy and liquidated damages upon a Buyer’s Default.

Upon a termination of this Agreement in accordance with this Section 10.5(d), neither party shall have any rights or obligations hereunder except as provided in those sections which expressly survive the termination of this Agreement. THE PARTIES HAVE AGREED THAT SELLER’S ACTUAL DAMAGES, IN THE EVENT ESCROW FAILS TO CLOSE

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SOLELY DUE TO A DEFAULT BY BUYER, WOULD BE EXTREMELY DIFFICULT OR IMPRACTICABLE TO DETERMINE. THEREFORE, BY PLACING THEIR

INITIALS BELOW, THE PARTIES ACKNOWLEDGE THAT THE AMOUNT OF THE DEPOSIT HAS BEEN AGREED UPON, AFTER NEGOTIATION, AS THE PARTIES ’ REASONABLE ESTIMATE OF SELLER ’S DAMAGES, AND THAT PAYMENT OF

SUCH AMOUNT TO SELLER AS LIQUIDATED DAMAGES IS NOT INTENDED AS A

FORFEITURE OR PENALTY WITHIN THE MEANING OF CALIFORNIA CIVIL CODE SECTION 3275 OR 3369, BUT INSTEAD, IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO SELLER PURSUANT TO SECTION 1671, 1676 AND 1677 OF THE CALIFORNIA CIVIL CODE. NOTHING CONTAINED HEREIN SHALL IN

ANY MANNER LIMIT THE AMOUNT OF DAMAGES OBTAINABLE BY SELLER

PURSUANT TO AN ACTION UNDER ANY HOLD HARMLESS, DEFENSE OR

INDEMNIFICATION PROVISION SET FORTH IN THIS AGREEMENT OR REASONABLE ATTORNEYS’ FEES RECOVERABLE PURSUANT TO ANY ACTION

UNDER A HOLD HARMLESS, DEFENSE OR INDEMNIFICATION SET FORTH IN THIS AGREEMENT.
______________ _____________
Seller’s Initials Buyer’s Initials

ARTICLE 11

MISCELLANEOUS
Section 11.1 Notices. Any notice required or permitted to be given hereunder must be in writing and shall be deemed to be given when (a) hand delivered with reasonable evidence of receipt, or (b) one business day after pickup by United Parcel Service (Overnight) or Federal Express, or another similar reputable overnight express service, or (c) transmitted by via e -mail, in any case addressed to the parties at their respective addresses set forth below:

To Buyer: City of Folsom
___________________________
___________________________
Attn: ______________________
Email: _____________________

With a copy to:

To Seller: Lakeside Church
745 Oak Avenue Parkway
Folsom, California 95630
Attn: Michael Klockenbrink
Email: [email protected]
With a copies to: Meissner Ruggles Thompson, Inc.

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4929-0610-3747.2 011399.076 21
1555 River Park Drive, Suite 108
Sacramento, California 95815
Attn: John J. Meissner, Jr.

Email: [email protected]

or to such other address as either party may from time to time specify in writing to the other party.

An email notice shall be deemed delivered and received (A) if delivered or transmitted before 5:00 pm Eastern Time on a business day, and (B) otherwise on the next business day following actual delivery or transmittal.

Section 11.2 Entire Agreement. This Agreement, together with the Exhibits attached hereto, contain all representations, warranties and covenants made by Buyer and Seller and constitute the entire understanding between the parties hereto with respect to the subject matter hereof. Any prior correspondence, memoranda or agreements are replaced in total by this Agreement together with the Exhibits hereto.

Section 11.3 Time. Time is of the essence in the performance of each of the parties ’ respective obligations contained herein.

Section 11.4 Further Assurances. The parties hereby agree to take such additional actions and to execute and deliver such additional documents as shall be necessary to consummate the Transaction. The provisions of this Section 11.4 shall survive the Closing.

Section 11.5 Jury Trial Waiver. The parties hereby agree to waive any right to trial by jury with respect to any action or proceeding brought by either party or any other Person, relating to (A) this Agreement and/or any understandings or prior dealings between the parties hereto, or (B) the Property or any part thereof. The parties hereby acknowledge and agree that this Agreement constitutes a written consent to waiver of trial by jury pursuant to any applicable state statutes.

Section 11.6 No Merger. The obligations contained herein shall not merge with the transfer of title to the Property but shall remain in effect until fulfilled.

Section 11.7 Assignment. Buyer may delegate, transfer and assign this Agreement to any Affiliate of Buyer, in any such case without the prior approval of Seller, provided, however, such assignment shall not release Buyer from liability hereunder , the assignee shall assume the obligations under this Agreement and Buyer shall provide Seller with a copy of the related assignment. Any other assignment by Buyer to any other third party requires the written consent of Seller, which consent will not be unreasonably withheld.

Section 11.8 Severability. If any term or provision of this Agreement is held to be or rendered invalid or unenforceable at any time, such term or provision shall not affect the validity or enforceability of any other terms or provisions of this Agreement.

Section 11.9 No Joint Venture. This Agreement is not intended to create, and shall not be deemed to create, any partnership, joint venture or other similar business arrangement between Seller and Buyer, other than as seller and buyer.

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4929-0610-3747.2 011399.076 22
Section 11.10 Successors and Assigns. The terms and provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective permitted successors and assigns, except as expressly set forth herein.

Section 11.11 Prevailing Party . If any litigation or other court action, arbitration or similar adjudicatory proceeding is commenced by either party to enforce its rights under this Agreement against the other party, all fees, costs and expenses, including, without limitation, reasonable attorney ’s fees and court costs, incurred by the prevailing party in such litigation, action, arbitration or proceeding shall be reimbursed by the losing party; provided, that if a party to such litigation, action, arbitration or proceeding prevails in part, and lo ses in part, the court, arbitrator or other adjudicator presiding over such litigation, action, arbitration or proceeding shall award a reimbursement of the fees, costs and expenses incurred by such party on an equitable basis.

Section 11.12 Counterparts; PDF. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. The parties contemplate that they may be executing counterparts of this Agreement transmitted electronically via PDF and agree and intend that a signature by electronically mailed PDF shall bind the party so signing with the same effect as though the signature were an original signature. The parties hereto consent to the execution and delivery of this Agreement by Docusign and Adobe Acrobat Sign.

Section 11.13 Confidentiality. Unless otherwise mutually agreed upon in writing by Buyer and Seller, any information provided (whether oral or written) by any party to the other related to the Transaction shall be treated as confidential by the other and shall not be disclosed by such party, in any manner other than to brokers, lenders, partners, consultants, or contractors, whose work, advice or consents or approvals would be necessary to carry out the contemplated transaction, or whose financial interests would be affected by the transaction. Notwithstanding the foregoing, the party receiving the same may disclose the same to its employees involved in the due diligence and/or negotiation of the transaction, as well as its financial and legal advisors and instruct such persons of the obligation to maintain confidentiality pursuant to the terms of this section. It is further understood and agreed that it is necessary that this transaction (and all of the terms of this Agreement, and of any other agreements to be entered into relating to this Agreement, as well as the negotiations related hereto and thereto) be k ept confidential unless otherwise required to be disclosed by law or regulation. The foregoing restrictions shall not apply to information that is of public record or to matters disclosed in accordance with process of law (including the Public Records Act), or as required for public hearings or other proceedings of the City council, or to information already known by the recipient thereof or to entry into the data bases maintained by real estate brokers representing the Seller or Buyer and used by such brokers and other brokers of such data base information as is customary in the industry, including without limitation, for comparable sales and price comparisons for other transactions.

Section 11.14 Tax-Deferred Exchange. At the request of either party, the other party shall cooperate with the requesting party in the achievement of a tax-deferred real estate exchange pursuant to Section 1031 of the Internal Revenue Code and the Treasury regulations promulgated thereunder (“Tax-Deferred Exchange”); provided, however, that: (i) the exchange shall be at no additional material expense to the other party; (ii) the exchange shall not materially delay the

08/11/2026 Item No.22.

4929-0610-3747.2 011399.076 23
Closing Date for transfer of the Property; (iii) the other party shall not be required to acquire title to any proposed exchange properties to accommodate the requesting party ’s exchange; and (iv) the exchange shall not affect, limit, modify or impair in any way the representations, warranties, covenants or indemnifications made by the requesting party in the Agreement. The requesting party shall indemnify and defend the other party and hold the other party harmless from and against any and all claims, demands, costs and expense which the other party sustains or incurs as a result of the consummation of the transfer of the Property as a Section 1031 exchange, rather than a sale.

Section 11.15 Governing Law. This Agreement shall be deemed to be an agreement made under the laws of the State of California and for all purposes shall be governed by and construed in accordance with such laws.

Section 11.16 Interpretation of Agreement. The article, section and other headings of this Agreement are for convenience of reference only and shall not be construed to affect the meaning of any provision contained herein. Where the context so requires, the use of the singular shall include the plural and vice versa and the use of the masculine shall include the feminine and the neuter. The term “including” means “including, but not limited to,”.

Section 11.17 General Rules of Construction. The parties acknowledge that this Agreement has been freely negotiated by both parties, that each party has had the opportunity to review and revise this Agreement, that each party has had the opportunity to consult with counsel with regard to this Agreeme nt, and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party will not be employed in the interpretation of this Agreement or any amendments or exhibits to this Agreement.

Section 11.18 Computation of Time. The time in which any act is to be done under this Agreement is computed by excluding the first day, and including the last day, unless the last day is a holiday or Saturday or Sunday, and then that day is also excluded. Unless expressly indicated otherwise, (a) all references to time shall be deemed to refer to Pacific Time, and (b) all time periods shall expire at 5:00 p.m. Pacific Time. “Business days” shall mean Monday through Friday except for U.S. federal holidays.

Section 11.19 Amendments. This Agreement may be amended or modified only by a written instrument signed by Buyer and Seller.
[Signature Page Follows]

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4929-0610-3747.2 011399.076 24

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date regardless of the actual date of execution.

SELLER:

Lakeside Church, LLC,
a California nonprofit corporation
By: _________________________________
Name:

Title:

BUYER:

City of Folsom,
a municipal corporation
By: _________________________________
Name: ___________________________
Title:

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4929-0610-3747.2 011399.076 25

JOINDER OF TITLE COMPANY
Title Company hereby joins in the execution of the Agreement and agrees to accept, hold and return the Deposit, and disburse any funds received under the Agreement in accordance with the provisions of such Agreement. The Title Company shall only be bound to those provisions of the Agreement relating to title insurance, the Deposit, and the Closing escrow. Provided that the Title Company complies with such provisions of the Agreement, the parties to the Agreement agree that the Title Company shall not be liable for any loss or damage arising thereunder.

Placer Title Company
By:

Name:

Title:

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4929-0610-3747.2 011399.076 26

EXHIBIT A

DESCRIPTION OF REAL PROPERTY

To be completed

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4929-0610-3747.2 011399.076 27

EXHIBIT B

DUE DILIGENCE REQUIREMENTS
Seller shall provide the following in Seller’s possession or control: environmental reports, surveys, property condition reports, engineering studies, notices from local, state and federal government agencies, leases (including amendments thereto) in connection with the Property (but excluding applications, notices and related filings and recorded documents related to the recent lot line adjustment for the Property), and any service and maintenance agreements and other contracts that will affect the Property after closing, and other documents reasonably requested by Buyer to assist Buyer in its feasibility study.

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4929-0610-3747.2 011399.076 28

EXHIBIT C

FORM OF DEED

RECORDING REQUESTED BY,
WHEN RECORDED MAIL TO, AND:

MAIL TAX STATEMENT TO:

Attention:

APN: [________] (Space Above Line for Recorder’s Use Only)

The undersigned grantor(s) declare(s):

 This transfer is exempt from the documentary transfer tax.  The documentary transfer tax is $______ and is computed on:
 the full value of the interest or property conveyed.  the full value less the liens or encumbrances remaining thereon at the time of sale.

The property is located in the City of _______, County of ________.

GRANT DEED
FOR VALUE RECEIVED, , a (“Grantor”),
grants to _________________________ (“Grantee”), all that certain real property situated in the City of , County of , State of California, described on Schedule 1 attached hereto and by this reference incorporated herein (the “Property”).

Title to the Property is hereby conveyed by Grantor to Grantee (and accepted by Grantee) subject to the following: (a) real property taxes and assessments not yet due and payable, (b) matters ascertainable by a reasonable inspection and survey of the property, and (c) matters of public record.

[Signature on the following page]

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4929-0610-3747.2 011399.076 29
IN WITNESS WHEREOF, the Grantor has executed this instrument as of ____________, 20__.

,
a

By:

Name:

Its:

CALIFORNIA ALL PURPOSE

CERTIFICATE OF ACKNOWLEDGEMENT

State of California
County of _______________________

On __________________, 20__ before me, ________________________________________, Notary Public, personally appeared ________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

___________________________________
Signature of Notary Public (Notary Seal)

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

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4929-0610-3747.2 011399.076 30
Schedule 1 to Grant Deed
Legal Description of Property

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4929-0610-3747.2 011399.076 31

EXHIBIT D

ASSIGNMENT OF DEVELOPMENT RIGHTS

ASSIGNMENT OF DEVELOPMENT RIGHTS AND APPROVALS

THIS ASSIGNMENT OF ASSIGNMENT OF DEVELOPMENT RIGHTS AND APPROVALS (“Assignment”), is made and entered into as of this ____ day of _______________________, 20 __ (the “Effective Date ”), by and between _______________________, a ______________________ ( “Assignor”), whose address is _______________________________, and ______________________, a __________________________ (“Assignee”), whose post office address is _____________________________.

WITNESSETH:

WHEREAS, on even date herewith, Assignor has conveyed to Assignee that certain real property located in _____________ County, _______________, being more particularly described on Exhibit “A” attached hereto and made a part hereof (the “Property”); and WHEREAS, in connection with Assignor ’s conveyance of the Property to Assignee, Assignor desires to assign to Assignee, and Assignee desires to accept the assignment of, if any and solely to the extent transferrable, the Development Rights, and Approvals (defined below).

NOW, THEREFORE, for and in consideration of the sum of $10.00, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Assignor and Assignee hereby agree as follows:

1. Incorporation of Recitals . The above recitals are true and correct and are incorporated herein by this reference.

2. Assignment of Development Rights and Approvals. Assignor does hereby grant, assign, transfer and set over unto Assignee all of Assignor ’s right, title and interest in and to the following, if any and solely to the extent the same are transferable (collectively, the “Development Rights and Approvals”):
a. all applications, licenses, permits, approvals, consents, authorizations and other entitlements with or from any governmental or quasi-governmental authorities related solely to or benefiting the Property (including the offsite in-tract infrastructure improvements benefitting the Property), including, but not limited to, any and all permits, approvals, development rights, vested rights, density, average daily trips, entitlements, benefits, rights, privileges, exemptions, concurrency approvals, capacity enc umbrances or reservations, capacity agreements (including, but not limited to, Capacity Enhancement Agreements), water rights, sewer rights and other utility rights, associated solely with respect to the Property; b. all contracts, agreements, leases, representations and warranties that relate solely to, or benefit the Property.

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4929-0610-3747.2 011399.076

3. Assumption of Development Rights and Approvals. Assignee does hereby assume and accept the Development Rights and Approvals assigned to Assignee by this Assignment and all of Assignor’s rights, title and interest thereunder; provided, however, Assignee assumes only those obligations of the Development Rights and Approvals which arise on or a fter the Effective Date hereof.

4. Impact Fee Credits . Assignee acknowledges that neither Assignor nor any Affiliate thereof is assigning or transferring to Assignee any impact fee credits or any other development incentives or credits held by Assignor or an Affiliate of Assignor or associated with the Property or other adjoining real property owned by Assignor or an Affiliate thereof . Any impact fees, development fees, assessments and other costs associated with developing the Property and constructing Assignee’s related project thereon shall be paid by Assignee or Assignee’s successor in interest.

5. Entire Agreement. This Assignment contains the entire agreement of the parties hereto with respect to the subject matter hereof, and no change of any item or provision of this Assignment shall be valid or binding unless the same shall be in writing and signed by all the parties hereto.

6. Binding. This Assignment runs with the land and shall be binding upon Assignor and Assignee, and their respective successors and assigns.

7. Governing Law. This Assignment shall be governed and interpreted under the laws of the State of California. Assignor and Assignee agree that the resolution of any disputes with regard to this Assignment shall lie only in Sacramento County, California. In no event shall either Assignor or Assignee be entitled to a jury by trial on any issues in which a trial by jury is permitted under applicable law.

8. Counterparts. This Assignment may be executed in any number of counterparts, each of which shall be deemed an original.

9. Further Assurances. Each of the parties hereto agree that they shall execute and deliver to the other such additional and supplemental documents or further assurances, from time to time as requested, as may be necessary to implement the transactions contemplated pursuant to this Assignment when requested to do so by any party to this Assignment.

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4929-0610-3747.2 011399.076 33

IN WITNESS WHEREOF , the Assignor and Assignee have hereto caused this Assignment to be executed as of the Effective Date.

ASSIGNOR:

______________________,
a ____________________

By: _______________________________
Name:_____________________________
Title:______________________________

STATE OF __________________
COUNTY OF ________________
The foregoing instrument was acknowledged before me this __ _ day of __________________, 20 __ by _______________, as ______________ of ________________________, a _______________________, on behalf of the ________________. He/she is personally known to me or has produced __________________________________________ as identification. (NOTARY SEAL) ______________________________________ Notary Public Signature

08/11/2026 Item No.22.

4929-0610-3747.2 011399.076
ASSIGNEE:

__________________________,
a _________________________

By: _________________________________
Name: _______________________________
Title: ________________________________

[Seal]

STATE OF ___________________
COUNTY OF _________________
The foregoing instrument was acknowledged before me this ______ day of ______________________, 20 __, by __________________________, __________________________________________ of _________________________, a _________________ on behalf of the _______________, whose identity was proven to me on the basis of satisfactory evidence to be the person who he or she claims to be, and acknowledged that he or she signed the above document.
(NOTARY SEAL) ______________________________________ Notary Public Signature

08/11/2026 Item No.22.

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

08/11/2026 Item No.22.

Folsom City Council
Staff Report

1 MEETING DATE:

8/11/2026
AGENDA SECTION:

New Business
SUBJECT: Resolution No. 11690 – A Resolution Authorizing the City Manager to Execute a Memorandum of Understanding Be tween the City of Folsom and the Sacramento Area Firefigh ters Local 522, IAFF - Folsom Fire EMS Professional Unit and Authorizing Implementation of the Single-Role Ambulance Transport System

FROM: Fire Department

RECOMMENDATION / CITY COUNCIL ACTION

The Fire Department recommends that the City Counci l adopt Resolution No. 11690 – A Resolution authorizing the City Manager to execute a Memorandum of Understanding between the City of Folsom and the Sacramento Area Firefighters Local 522, IAFF - Folsom Fire EMS Professional Unit and authorizing implementation of the single-role ambulance transport system. Following the adoption of this resolution, these are further recommendations:

 Establishing the classifications of Emergency Medic al Technician and Paramedic, approving the associated class specifications and s alary schedule, and amending the City’s Classification and Compensation Plan accordingly;  Amending the Fiscal Year 2026-27 position control r oster to convert ten (10) Firefighter/Paramedic positions to single-role positions and to add four (4.0) Full Time Equivalent (FTE) single-role positions, for a total of fourteen (14.0) FTE single-role positions (seven (7) Paramedics and seven (7) Emerg ency Medical Technicians) and twenty-seven (27) Firefighter/Paramedic positions; and
 Authorizing the City Manager to execute the MOU and to take all actions necessary to implement the single-role ambulance transport staffing model, including restoration of the fifth engine company to service.

08/11/2026 Item No.23.
2 BACKGROUND / ISSUE

The Folsom Fire Department provides all-risk fire protection, rescue, and emergency medical services, including advanced life support (ALS) amb ulance transport, from six fire stations operating on a three-platoon shift schedule. Suppre ssion and EMS field operations are currently delivered by 76 budgeted line positions, of which 37 are budgeted Firefighter/Paramedic (Firefighter EMT/Paramedic) positions.

Reduction in Budgeted Firefighter Positions
The Department historically budgeted 42 Firefighter positions. That staffing level provided one additional firefighter per shift, which the Department used to absorb daily leave and reduce reliance on overtime. Five of those positions were eliminated in 2025, reducing the authorized complement to the current 37 positions. Additionall y, budgetary constraints resulted in the temporarily closing of an engine company, reducing the number of suppression units spread throughout the city.

Staffing Requirements Analysis
Department analysis of constant-staffing requirements produced the following:
• Current deployment model (4 engines, 1 truck, 3 medic units across 6 stations and 3 shifts) requires 36 Firefighter/Paramedic positions to staf f without structural overtime; 37 are budgeted.
• Restoring a fifth engine company under the existing dual-role model (5 engines, 1 truck, 3 medic units) would require 39 Firefighter/Paramedic positions — an increase of 2.0 FTE over the current authorized level, together with the associated salary, benefit, and academy costs.

Vacancy and Recruitment Environment
The Department is currently carrying 10 vacancies a mong its 76-line positions, including 9 Firefighter vacancies (10 when accounting for antic ipated promotions from within the ranks) and 1 Engineer vacancy. By the beginning of calenda r year 2026, the Department projects 11 vacancies among 76-line positions, including 9 Firefighter vacancies, 1 Engineer vacancy, and 1 Battalion Chief vacancy. Consistent with regional and statewide experience, the dual-role Firefighter/Paramedic labor market remains highly c ompetitive, and the cost and duration of the fire academy and paramedic accreditation process extend the time required to place a new dual-role employee into service.

Labor Relations
Consistent with the Meyers-Milias-Brown Act (Govern ment Code section 3500 et seq.), the City met and conferred in good faith with Sacrament o Area Fire Fighters, IAFF Local 522, regarding recognition of the proposed single-role c lassifications and the terms and conditions of employment applicable to them. The parties reach ed a tentative agreement, and the

08/11/2026 Item No.23.
3 bargaining unit ratified the agreement. The MOU pre sented to the City Council reflects that agreement in full.

POLICY / RULE

Government Code Title 11, Division 4, Chapter 10, c ommonly known as the Meyers-Milias- Brown Act requires that representatives of the Governing Body of a public agency shall meet and confer in good faith regarding wages, hours, and other terms and conditions of employment with representatives of recognized employee organiz ations. Both parties shall endeavor to reach a tentative agreement within the scope of representation, and, if a tentative agreement is reached and ratified by the respective parties, the y shall prepare a written memorandum of understanding.

ANALYSIS

A. The Proposed Single-Role Staffing Model
Staff recommends converting ten (10) budgeted Firefighter/Paramedic positions to single-role EMS positions and adding four (4.0) FTE, resulting in fourteen (14.0) FTE single-role positions — seven (7) Paramedics and seven (7) Emergency Medical Technicians.

Under the proposed model:
• Twenty-seven (27) Firefighter/Paramedics would staf f six stations on three (3) shifts, operating five (5) engine companies, one (1) truck company, and one (1) medic unit. • Fourteen (14) single-role personnel would staff two (2) dedicated medic units — Medic 39 and Medic 37 — across seven (7) single-role shifts.
• The fifth engine company (Engine 39) would be restored to service. • Total ambulance transport capacity would remain at three (3) staffed medic units.

Deployment Element Current Budgeted
Model Proposed Model Change
Firefighter/Paramedic positions 37 27 (10)
Single-role Paramedic
positions 0 7 +7
Single -role EMT positions 0 7 +7
Total positions in model 37 41 +4 FTE
Engine companies staffed 4 5 +1
Truck companies staffed 1 1 No change

08/11/2026 Item No.23.
4 Deployment Element Current Budgeted
Model Proposed Model Change
Medic units staffed 3 3 No change
Stations staffed 6 6 No change

B. Single-Role Deployment and Work Schedule
Single-role personnel are assigned to seven shifts working an OXOXXXX rotation, with each shift assigned the same days each week. Each shift consists of one Paramedic and one Emergency Medical Technician. Medic 39 is staffed b y six single-role personnel and Medic 37 by six; Shift 4 (2 single-role personnel) works one day on Medic 39 and one day on Medic 37 to complete weekly coverage of both units.

Shift Unit Assignment Staffing Scheduled Days
Shift 1 Medic 39 1 Paramedic /
1 EMT Sunday, Tuesday
Shift 2 Medic 39 1 Paramedic /
1 EMT Monday, Wednesday
Shift 3 Medic 39 1 Paramedic /
1 EMT Thursday, Saturday
Shift 4 Medic 37 / Medic 39 1 Paramedic /
1 EMT Wednesday (M37), Friday (M39)
Shift 5 Medic 37 1 Paramedic /
1 EMT Friday, Sunday
Shift 6 Medic 37 1 Paramedic /
1 EMT Saturday, Monday
Shift 7 Medic 37 1 Paramedic /
1 EMT Tuesday, Thursday

C. Principal Terms of the Proposed Memorandum of Understanding The MOU establishes the terms and conditions of emp loyment for the new single-role classifications. Principal terms are summarized bel ow; the MOU attached as Attachment 2 governs in the event of any inconsistency with this summary.

08/11/2026 Item No.23.
5 Subject Provision
Recognition Recognizes Sacramento Area Fire Fighters, IAFF Loca l 522, as the exclusive representative of the Folsom Fire -EMS Professional Unit.

Classifications
Officially establishes and recognizes the classific ations of Emergency Medical Technician and Paramedic, with adopted clas s specifications and job descriptions.

Compensation Establish salary ranges and steps for both classifi cations, together with holiday -in -lieu compensation.

Work schedule 40-hour employees, working an assigned 48- hour work week.

Employee s will be assigned to work 8 hours of overtime per pay period.

FLSA status
Positions are not exempt under the section 7(k) par tial overtime exemption. The exemption applies to employees engag ed in fire protection activities who spend at least 80 percent of their time on such activities; single-role EMS personnel assigned excl usively to transport duties do not meet that threshold. Employees are th erefore covered by the standard FLSA overtime provisions.

Overtime
Distinguishes FLSA overtime from MOU overtime and d efines the calculation of each. The eight hours of pre-scheduled overtime per cycle are treated as FLSA overtime.

Educational incentive Reduced relative to the incentive structure applica ble to the dual-role Firefighter unit.

Longevity pay Maintained.

Retirement Maintains CalPERS Safety formula 2.7% at 57 for new members, subject to CalPERS enrollment determination for the classifications.

Health and welfare No change. Medical, dental, vision, and related benefits are maintained at current City levels.

Leaves
Vacation may be used in 12- or 24-hour increments. Provisions prevent loss of income when employees use vacation, compens atory time, or bereavement leave. Sick leave is excluded from this treatment and is compensated at straight time. No change to existing leave procedures.

Allowances Maintained, applied proportionately to the 40 -hour schedule.

Management rights All existing management rights are maintained.

Discipline All existing disciplinary procedures are maintained.

08/11/2026 Item No.23.
6 D. Operational Benefits
• Restored fire suppression capacity. The fifth engin e company returns to service, improving effective response force assembly, unit a vailability, and coverage across the six-station system.
• Dedicated transport resources. Two medic units are staffed by personnel whose sole assignment is EMS response and transport, reducing the frequency with which suppression apparatus are committed to transport duties. • Recruitment flexibility. Single-role positions draw from a substantially larger labor pool, require a shorter and less costly academy, and redu ce the Department’s exposure to prolonged dual-role vacancies.
• Vacancy management. Converting vacant positions, th e Department is able to leverage existing vacancies to implement the Single Role Tra nsport System. No filled Firefighter/Paramedic position is eliminated, and no incumbent is displaced, demoted, or reduced in compensation.
• Lower cost per position. Single-role positions carr y materially lower salary and benefit costs than dual-role positions, allowing the Department to field additional units within the existing appropriation.

E. Considerations and Risks
• Single-role personnel are not trained or equipped f or fire suppression assignments and cannot be used to backfill suppression vacancies. S uppression coverage remains dependent on the 27 dual-role positions.
• Because the single-role classifications are 40-hour , non-7(k) positions, overtime accrues on a different basis than for the suppression ranks.
• The savings projections assume the conversions are achieved through existing and anticipated vacancies and that recruitment timeline s are met. Delay in filling single-role positions would extend the Department’s reliance on overtime during the transition. • Recruitment and retention of single-role personnel in a competitive regional EMS market will require ongoing attention, including attention to career-path opportunities into dual- role classifications.

F. Implementation Timeline
To place personnel in service at the beginning of t he fiscal year’s second quarter, the Department conducted recruitment activities and made contingent offers of employment once Council provided supportive action. Ratification of this MOU ensures our timelines are met.

08/11/2026 Item No.23.
7 Milestone Date
Open recruitment June 12, 2026
Application review Ongoing
Oral boards and EMS assessments July 8 –10, 2026
Pre-employment medical examinations and background
investigations initiated for 14 potential employees and 4 alternates
July 15, 2026
Pre-employment medical examinations and background
investigations complete On or about August 14, 2026
EMS Recruit Academy begins August 17, 2026
Partial implementation — EMT personnel in service;
Engine 39 staffed September 6, 2026
Full implementation — Paramedic personnel in service;
both single -role medic units in service September 19, 2026

FINANCIAL IMPACT

The proposed staffing model is cost-neutral to the adopted budget and is projected to reduce annual salary and benefit costs. Estimated annual s alary and benefit costs under each model are as follows:

Model Firefighter/
Paramedics
Single-Role
Paramedics
Single-Role
EMTs
Estimated
Annual Cost
Current budgeted staffing 37 0 0 $7,769,630
Proposed staffing 27 7 7 $7,559,715
Estimated annual savings $128,102

Estimated fully burdened salary and benefit costs per position, by classification, are as follows:

Classification Initial Hire Top Step
Firefighter/Paramedic $209,990 $266,759
Single -Role Paramedic $144,479 $186,494
Single -Role Emergency Medical Technician $125,489 $161,000

In addition, the Department projects one-time recru itment and training savings. Hiring ten Firefighter/Paramedics under the current model carries an estimated academy cost of $372,077,

08/11/2026 Item No.23.
8 while placing fourteen single-role personnel throug h an EMS recruit academy carries an estimated academy cost of $207,558 — a one-time sav ings of $164,519, notwithstanding that four additional personnel are trained.

Fiscal Year 2026-27 Impact Type Amount
Salary and benefit savings Ongoing $128,102
Recruit academy savings One -time $164,519
Total estimated FY 2026 -27 savings Combined $292,62 1

No additional appropriation is required. Approval of the MOU and the recommended position changes does not increase the Fire Department’s ado pted Fiscal Year 2026-27 personnel appropriation. Because implementation occurs in the first quarter of the fiscal year, actual FY 2026-27 savings will be realized on a partial-year basis and are reflected in the amounts above as estimates. Adoption of the recommended resolutio n amends the position control roster to reflect a net increase of 4.0 FTE with no corresponding increase in appropriation.

Retirement cost disclosure. The proposed MOU does not create, modify, or enhanc e any retirement benefit; the CalPERS Safety formula of 2 .7% at 57 applicable to new members is maintained without change.

ATTACHMENTS

1. Resolution No. 11690 – A Resolution Authorizing the City Manager to Execu te a Memorandum of Understanding Between the City of Folsom and the Sacramento Area Firefighters Local 522, IAFF - Folsom Fire EMS Prof essional Unit and Authorizing Implementation of the Single-Role Ambulance Transport System

2. Memorandum of Understanding, Folsom Fire-EMS Professional Unit

3. Class Specifications, Emergency Medical Technician and Paramedic

Submitted,

Jason Solak, Fire Chief

08/11/2026 Item No.23.

Attachment 1
Resolution No. 11690 – A Resolution Authorizing the City Manager to Execute a Memorandum of Understanding Between the City of Folsom and the Sacramento Area Firefighters Local 522, IAFF - Folsom Fire EMS Professional Unit and Authorizing Implementation of the Single-Role Ambulance Transport System

08/11/2026 Item No.23.

Resolution No. 11690

RESOLUTION NO. 11690

A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A

MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF FOLSOM AND THE SACRAMENTO AREA FIREFIGHTERS LOCAL 522, IAFF – FOLSOM FIRE

EMS PROFESSIONAL UNIT AND AUTHORIZING IMPLEMENTATION OF THE

SINGLE-ROLE AMBULANCE TRANSPORT SYSTEM

WHEREAS, the City of Folsom and Sacramento Area Firefighter s Local 522, IAFF - Folsom Fire EMS Professional Unit have met and conferred in good faith; and

WHEREAS, the parties reached an agreement, and the bargainin g unit ratified the agreement; and

WHEREAS, authorizing this agreement will establish the class ifications of Emergency Medical Technician and Paramedic; and

WHEREAS , the position control roster will be amended to co nvert ten Firefighter/Paramedic positions to single-role positions and to add four single-role positions, for a total of fourteen FTE single-role positions and twenty-seven Firefighter/Paramedic positions; and

WHEREAS , once the single-role ambulance transport staffing model is implemented, the fifth engine company will be restored to service; and

WHEREAS, the proposed staffing model is cost-neutral to the adopted budget and is projected to reduce annual salary and benefit costs; and

WHEREAS , that the City Council adopts the agreement betwee n the City of Folsom and the Sacramento Area Firefighters Local 522, IAFF - Folsom Fire EMS Professional Unit for the period of August 11, 2026, to June 30, 2028;

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom authorizes the City Manager to execute a Memorandum of Understanding between the City of Folsom and the Sacramento Area Firefighters Local 5 22, IAFF - Folsom Fire EMS Professional Unit and authorizes implementation of the single-role ambulance transport system; and

NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council of the City of Folsom approves the new staffing model for the Fire Department, establishing the classifications of Emergency Medical Technician and Paramedic; and

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Resolution No. 11690

NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Manager is authorized to add four positions to the total approved Full Time Equivalent (FTE) count for Fiscal Year 2026-27.

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.23.

Attachment 2
Memorandum of Understanding, Folsom Fire-EMS Professional Unit

08/11/2026 Item No.23.

MEMORANDUM OF UNDERSTANDING

BETWEEN

CITY OF FOLSOM
AND

SACRAMENTO AREA FIREFIGHTERS
LOCAL 522, IAFF, FOLSOM Fire-EMS Professional UNIT
August 11, 2026 through June 30, 2028

08/11/2026 Item No.23.

TABLE OF CONTENTS
PREAMBLE ................................................................................................................................... 5 ARTICLE I ..................................................................................................................................... 5 RECOGNITION AND COVERAGE ............................................................................................. 5

1. R ECOGNITION ...................................................................................................................... 5

2. C ONTINUATION OF BENEFITS ............................................................................................... 5

3. T ERMS OF UNDERSTANDING ................................................................................................ 6

4. M EETING AND CONFERRING DURING THE TERM OF THE M.O.U. ......................................... 6

5. S EVERANCE ......................................................................................................................... 6

6. N O STRIKE ........................................................................................................................... 6 ARTICLE II .................................................................................................................................... 7 MANAGEMENT RIGHTS ............................................................................................................ 7 ARTICLE III ................................................................................................................................... 8 UNION RIGHTS ............................................................................................................................ 8

1. U NION LEAVE ...................................................................................................................... 8

2. U NION BANK TIME .............................................................................................................. 8

3. U NION SECURITY ................................................................................................................. 9 ARTICLE IV .................................................................................................................................. 9 SALARY AND OTHER COMPENSATION ................................................................................ 9

1. M ARKET SURVEY ................................................................................................................ 9

3. T EMPORARY WORK ASSIGNMENTS .................................................................................... 10

4. E DUCATIONAL INCENTIVE ................................................................................................. 10

5. L ONGEVITY PAY PLAN ....................................................................................................... 10

7. R ETIREMENT ...................................................................................................................... 11

8. P RE -RETIREMENT OPTIONAL SETTLEMENT 2W DEATH BENEFIT (S URVIVORS )................. 12

9. PERS RETIREMENT – ALTERNATE DEATH BENEFIT .......................................................... 13

10. S OCIAL SECURITY WITHDRAWAL ...................................................................................... 13

11. F IELD TRAINING OFFICER (FTO) ....................................................................................... 13

12. S ALARY ............................................................................................................................. 13 ARTICLE V .................................................................................................................................. 14 OVERTIME .................................................................................................................................. 14

1. O VERTIME COMPUTATION ................................................................................................. 14

2. C OMPENSATING TIME OFF ................................................................................................. 14

3. O VERTIME SCHEDULING .................................................................................................... 14

4. E MERGENCY CALLBACK .................................................................................................... 15

5. M ANDATORY HIRES ........................................................................................................... 15

6. C OURT APPEARANCES ....................................................................................................... 15

7. C ITY BUSINESS TRAVEL .................................................................................................... 15 ARTICLE VI ................................................................................................................................ 15

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HOURS OF WORK ...................................................................................................................... 15

1. 40 HOUR FIRE -EMS SCHEDULE ......................................................................................... 16

2. M ODIFIED DUTY ASSIGNMENTS ......................................................................................... 16

3. F AIR LABOR STANDARDS ACT (FLSA) .............................................................................. 16

4. S TATION AND SHIFT TRANSFER PROCESS .......................................................................... 16

5. S TATION BIDS .................................................................................................................... 17 ARTICLE VII ............................................................................................................................... 17 HOLIDAYS .................................................................................................................................. 17

1. N ON -SHIFT PERSONNEL ..................................................................................................... 17

2. H OLIDAY PAY DIFFERENTIAL ............................................................................................ 18

3. H OLIDAY ROUTINE ............................................................................................................ 18 ARTICLE VIII .............................................................................................................................. 19 LEAVES ....................................................................................................................................... 19

1. A NNUAL LEAVE . ................................................................................................................ 19

2. L EAVE REQUEST PROCEDURE ............................................................................................ 20

3. V ACATION BIDDING ........................................................................................................... 21

4. S HIFT TRADES .................................................................................................................... 22

5. S ICK LEAVE ....................................................................................................................... 23

6. FLMA OR CFRA ............................................................................................................... 25

7. B EREAVEMENT LEAVE ....................................................................................................... 25

8. P ERSONAL LEAVE TIME ..................................................................................................... 25

9. E MERGENCY LEAVE ........................................................................................................... 25

10. L EAVE TIME ACCRUAL - NON -PAY STATUS ...................................................................... 25

11. L OCAL 522 CATASTROPHIC TIME BANK ............................................................................ 26

12. L EAVE CONVERSION RATES ............................................................................................... 26

13. J URY DUTY LEAVE ............................................................................................................ 27 ARTICLE IX ................................................................................................................................ 28 INSURANCE ................................................................................................................................ 28

1. M EDICAL INSURANCE ........................................................................................................ 28

2. H EALTH INSURANCE .......................................................................................................... 28

3. H IGH DEDUCTIBLE HEALTH PLANS ................................................................................... 29

4. O UT OF AREA HEALTH PLAN ............................................................................................. 20

5. D ENTAL INSURANCE .......................................................................................................... 30

6. V ISION CARE ..................................................................................................................... 30

7. H EALTH BENEFITS LABOR -MANAGEMENT COMMITTEE .................................................... 30

8. L IFE INSURANCE ................................................................................................................ 30

9. S HORT TERM DISABILITY INSURANCE ............................................................................... 30

10. L ONG TERM DISABILITY INSURANCE ................................................................................. 31

11. FMLA/CFRA LEAVE STATUS ........................................................................................... 31

12. R ETIREE HEALTH INSURANCE ............................................................................................ 31

13. R ETIREE HEALTH BENEFITS REOPENER ............................................................................. 33

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ARTICLE X .................................................................................................................................. 33 ALLOWANCES AND REIMBURSEMENTS ............................................................................ 33

1. U NIFORM ALLOWANCE ...................................................................................................... 33

2. U NIFORMS - CLASS A ......................................................................................................... 33

3. M ILEAGE REIMBURSEMENT ............................................................................................... 34

4. T UITION /B OOKS REIMBURSEMENT .................................................................................... 34

5. C OMPENSATION FOR TRAINING .......................................................................................... 34

6. R EPLACEMENT OF DAMAGED PERSONAL PROPERTY ......................................................... 35 ARTICLE XI ................................................................................................................................ 35 EMPLOYEE DISCIPLINE .......................................................................................................... 35

1. E MPLOYEE DISCIPLINE ...................................................................................................... 35

2. P ERFORMANCE EVALUATIONS ........................................................................................... 39

3. P ERSONNEL FILES .............................................................................................................. 39

4. P URGING PERSONNEL FILES ............................................................................................... 40 ARTICLE XII ............................................................................................................................... 40 GRIEVANCE PROCEDURE ....................................................................................................... 40

1. G RIEVANCE PROCEDURE .................................................................................................... 40 ARTICLE XIII .............................................................................................................................. 42 MISCELLANEOUS ..................................................................................................................... 42

1. F ITNESS FOR DUTY ............................................................................................................ 42

2. F ITNESS EVALUATION (W ELLNESS ) ................................................................................... 43

3. M ODIFIED DUTY ASSIGNMENTS ......................................................................................... 43

4. J OB CLASSIFICATION .......................................................................................................... 43

5. P AYCHECK DISTRIBUTION ................................................................................................. 44

6. L ABOR /M ANAGEMENT TEAM ............................................................................................ 44

7. D EPARTMENT BULLETINS .................................................................................................. 44

9. P ROGRAM TECHNICIAN ...................................................................................................... 44

10. P ROGRAM INCENTIVE PAY ................................................................................................. 45

11. P ROBATIONARY PERIOD , SENIORITY , AND LAYOFFS .......................................................... 45

13. L ATERAL HIRES ................................................................................................................. 46

14. P ERSONNEL RULES ............................................................................................................ 46

15. S TAFFING ........................................................................................................................... 47

16. B ILINGUAL PAY ................................................................................................................. 47 ARTICLE XIV.............................................................................................................................. 48

1. MEET AND CONFER REGARDING IMPLEMENTATION OF THE SINGLE ROLE CLASSIFICATIONS ....................................................................................................................... 48 ARTICLE XV ............................................................................................................................... 49

1. SIGNATURE CLAUSE ...................................................................................................... 49 APPENDIX A ............................................................................................................................... 50

08/11/2026 Item No.23.

PREAMBLE
On the date hereinafter subscribed, authorized representatives of the City of Folsom, herein called "City", and authorized representatives of the Sacra mento Area Firefighters Local 522, IAFF, herein called "SAFF, Local 522", made and entered i nto this Memorandum of Understanding, hereinafter referred to as "Agreement" or "MOU." P ursuant to Section 3500 et seq. of the Government Code of the State of California, an agreement between the aforementioned parties has as its purpose the promotion of harmonious labor re lations; establishment of an equitable and peaceful procedure for the resolution of difference s; and the establishment of rates of pay, hours of work, and other terms and conditions of employment.

The term "Agreement" as used herein means the written agreement provided under Section 3505.1 of the Government Code.

It is understood and agreed that this Memorandum of Understanding applies only to the classifications of EMT and Paramedic. This Memorand um of Understanding supersedes and replaces all previous agreements as it relates to t he positions EMT and Paramedic. This Memorandum of Understanding supersedes all previous agreements to the extent those agreements relate to the classifications of EMT and Paramedic. This Memorandum of Understanding shall not in any way be considered to supersede or modify the Memorandum of Understanding between City of Folsom and Sacramento Area Firefighters Loc al 522, IAFF, Folsom Unit effective from August 11, 2026 through June 30, 2028 which covers the classifications of Fire Captain, Fire Engineer, and Firefighter. This MOU is negotiated b y the Parties separately as a result of the positions of Paramedic and EMT being added into the bargaining during the term of the Fire MOU.

ARTICLE I

RECOGNITION AND COVERAGE

1. Recognition
The Sacramento Area Firefighters Local 522 is recognized as the exclusive representative, as provided in the City's Employer-Employee Relations Policy, for all employees assigned to the Sacramento Area Firefighters Local 522 Barga ining Unit in the following classifications:

EMT
Paramedic

In the event new classifications are established wh ich are appropriate for this unit, the parties agree to meet and confer for the purpose of including such in the Sacramento Area Firefighter Local 522 Bargaining Unit.

2. Continuation of Benefits
A. This Memorandum of Understandin g is a final expression of the agreement between th e parties with respect to the terms and conditions of employment. No amendment, alteration, understanding, variation, waiver or modification of any terms or provisions of this

08/11/2026 Item No.23.

Memorandum of Understanding shall in any manner be binding upon the parties unless made and executed in writing between the parties hereto and approved by the City Council.

B. Terms and conditions of employment as specified in this Memorandum of Understanding shall remain in full force and effect during the term of this Memorandum of Understanding unless modified pursuant to the above paragraph or as otherwise specified in this agreement.

3. Terms of Understanding
This Memorandum of Understanding incorporates all m odifications regarding wages, hours, and other terms and conditions of employment . This Memorandum of Understanding shall be effective upon full executio n of this Agreement and shall expire June 30, 2028. The parties agree to begin negotiat ions on a successor Memorandum of Understanding no later than 120 calendar days prior to expiration of this Memorandum of Understanding.

4. Meeting and Conferring During the Term of the Me morandum of Understanding Unless specifically agreed otherwise, this Memorand um of Understanding sets forth the full and entire understanding of the parties regard ing the matters contained in this Memorandum of Understanding and supersedes and canc els all prior or existing understandings or agreements between the parties, whether formal or informal.

During the term of this Memorandum of Understanding, representatives of the City and the SAFF, Local 522 may meet and confer on matters of m utual concern. Any agreement reached between the parties shall be memorialized in writing and be deemed a “Side Letter” to this Memorandum of Understanding.

The City Manager is authorized to enter into a Side Letter on behalf of the City for purposes of the interpretation or administration of this Mem orandum of Understanding. A Side Letter to this Memorandum of Understanding shall not be deemed valid until signed by the City Manager or designee, approved as to form by th e City Attorney, and signed by an authorized representative of the SAFF, Local 522. Side Letters agreed to during the term of this Memorandum of Understanding may be incorpor ated into any successor Memorandum of Understanding.

5. Severance
Should any provision of this Agreement be found unlawful or unenforceable by a court of competent jurisdiction, or invalidated by subsequen t enacted legislation, the remainder of the Agreement shall continue enforce. Upon occurrence of such an event, the parties shall meet and confer as soon as practical to renegotiate the invalidated provision(s).

6. No Strike
The SAFF, Local 522 agrees that during the term of this Agreement, neither it nor its officers, employees, representatives, or members wi ll engage in, encourage, sanction, support or suggest any strikes, work stoppages, boy cotts, slowdowns, mass resignations, mass absenteeism, picketing or any other similar actions which would involve suspension

08/11/2026 Item No.23.

of, or interference with, the normal work of the Ci ty of Folsom. In the event that SAFF, Local 522 members participate in such activities in violation of this provision, SAFF, Local 522 shall notify those members so engaged to cease and desist from such activities and shall instruct the members to return to their normal duties.

ARTICLE II

MANAGEMENT RIGHTS
To ensure that the City is able to carry out its st atutory functions and responsibilities, nothing contained in this article shall be construed to req uire the City to negotiate on matters which are solely a function of management, or not otherwise a ssigned as an employee right, including the following:

1. To manage the City generally and to determine is sues of policy.

2. To determine the existence of facts which are th e basis of management decisions.

3. To determine the necessity for and organization of any service or activity conducted by the City, and to expand or diminish services.

4. To determine the nature, manner, means, technolo gy, and extent of services to be provided to the public.

5. To determine methods of financing.

6. To determine types of equipment or technology to be used.

7. To determine and/or change the facilities, metho ds, technology, means, organizational structure, and size and composition of the work force, and to allocate and assign the work by which the City operations are to be conducted.

8. To determine and change the number of locations, relocations, and types of operations, processes, and materials to be used in carrying out all City functions, including, but not limited to, the right to contract for or sub-contract any work or operation of the City.

Such changes shall be subject to reasonable notice and good faith meet and confer.

9. To assign work to and schedule employees in acco rdance with requirements as determined by the City, and to establish and change work schedules and assignments upon reasonable notice and good faith meet and confer.

10. To lay off employees from duties because of lac k of work or funds, or under conditions where continued work would be ineffective or non-productive.

11. To establish and modify productivity and perfor mance programs and standards.

12. To dismiss, suspend without pay, demote, reprim and, withhold salary step increases, or otherwise discipline employees for cause.

13. To determine minimum qualifications, skills, ab ilities, knowledge, selection procedures and standards, and job classifications, and to reclassify employees.

14. To hire, transfer, promote, and demote employee s for non-disciplinary reasons.

08/11/2026 Item No.23.

15. To determine policies, procedures, and standard s for selection, training, and promotion of employees.

16. To establish reasonable employee performance st andards including, but not limited to, quality and quantity standards; and to require compliance therewith.

17. To maintain order and efficiency in City facili ties and operations

18. To establish, publish, and/or modify rules and regulations to maintain order and safety and health in the City. The City agrees to meet and confer on any items that fall within the scope of Government Code Section 3500 et, seq.

19. To restrict the activity of an employee organiz ation on the municipal property and on municipal time except as set forth in the City's Personnel Rules and Regulations.

20. To take any and all necessary action to carry o ut the mission of the City in emergencies.

ARTICLE III

UNION RIGHTS

1. Union Leave
A. The designated unit representative shall be gran ted reasonable release time, without loss of compensation or benefits, to meet with representative(s) of the City in regard to employee-employer relations matters.

B. Upon request of the SAFF, Local 522 unit represe ntative, a reasonable number of employees may be released from duty, without loss of compensation or benefits, for the purpose of meeting with the City. Such release time shall include thirty (30) minutes before and fifteen (15) minutes after the scheduled meeting. The times before and after the meetings are in addition to reasonable travel time to and from the employee's work location.

C. The City reserves the right to postpone or cance l a meeting if adequate staffing of the City's emergency services would be curtailed by the release of participating personnel.

D. Time used, pursuant to this section, shall be in addition to the time provided in Article III, Section 2, Union Bank Time.

2. Union Bank Time
A. Employees in the bargaining unit may, but are no t required to, donate accrued annual leave, holiday leave, compensating time off or staffing furlough time, in no less than one (1) hour increments, into a bank of hours from which designated representatives may draw time for the purposes of conducting Sacramento Area Firefighters Local 522 activities. Donated time will be transferred from the donating employee's accrued annual leave to the Union Bank in August of each year. Should supplemental donations be needed, the unit representative will notify the City and an additional "donating" period will be permitted.

08/11/2026 Item No.23.

B. The unit representative or designee must approve , fill out and submit a leave slip for all employees using the Union Bank. The release of employees on Union Bank Time shall be subject to both the approval of the Unit Representative and the needs of the City, as determined by the Fire Chief. Approval by the Fire Chief shall not be unreasonably withheld. In no event shall more than three (3) bargaining unit members be released from duty, pursuant to this section, at the same time.

C. The unit representative or designee must request through the on-duty Battalion Chief for the release of employees on Union Bank Time at least ten (10) work days prior to the desired time off. Under unusual or emergency circumstances, the request may be considered for approval with less than ten (10) working days’ notice.

3. Union Security
The following provision has been agreed to pursuant to Section 3502.5 of the Government Code.

A. Membership dues shall be payroll deducted and transmitted to the SAFF, Local No. 522.

B. Any employee who is a member of a Bonafide religion, body or sect that has held conscientious objections to joining or financially supporting public employee organizations shall not be required to financially support SAFF, Local No. 522. Such an employee shall, in lieu of the service fee, pay a sum equal to the service fee to a non- religious, non-labor charitable organization that is exempt from taxation under the Internal Revenue Service Code and identified by the SAFF, Local 522.

C. The SAFF, Local 522 expressly agrees to indemnif y, defend and hold the City harmless for any and all claims, demands, costs (including any costs and attorney’s fees incurred by the City in defense of a lawsuit), expenses, damages or other monetary losses arising out of or in any way connected with any action or inaction of the City in adoption or administration of this section. This hold harmless defense and indemnity agreement shall include but not be limited to employee legal actions of any sort or nature against the City based upon or related to this section.

ARTICLE IV

SALARY AND OTHER COMPENSATION

1. Market Survey
The City agrees that if a Market Survey is to be co mpleted, the classifications of EMT and Paramedic, whether employed by private or public ag ency, with similar roles and responsibilities shall be used. Additionally, it is agreed that the following public provider agencies, given their existing single role EMT – Paramedic program, shall be used, City of Sacramento, Sacramento

08/11/2026 Item No.23.

Metropolitan Fire Protection District, and El Dorad o Hills Fire District. To ensure competitive compensation, private provider transport agencies conducting business in the Sacramento Region, should be included.

A. Employees that maintain paramedic licensure and accreditation shall be reimbursed for the cost of the licensing and accreditation. Em ployees will not receive compensation for any late fees associated with para medic licensure renewal or accreditation continuation.

B. Current employees achieving paramedic status mus t receive pre-authorization from the department to qualify for participation in the paramedic program.

3. Temporary Work Assignments
A. Employees assigned to a temporary “day shift” as signment will receive a 10% pay increase for the duration of the assignment. Such assignment shall not be for more than ninety (90) days in duration unless otherwise agreed to by the Employee and the Department.

4. Educational Incentive
A. Employees subject to this Agreement shall be eli gible, upon proof of eligibility, to receive a monthly educational incentive pay as desc ribed in this section of up to 10%, in addition to the regular base pay:
1) Any Associate of Arts or Science Degree from a C ity approved recognized college or university (as defined in Section D), shall receive 5%. 2) Bachelor of Arts or Science Degree in Fire Techn ology/Science, Public Administration, Business Administration, Public Saf ety, Emergency Management, or other approved programs from a City approved accredited college or university (as defined in Section D) shall receive 10%.

B. Educational Incentive Pay shall be received by t he employee upon submitting substantial proof of eligibility acceptable to the department and shall not be applied retroactively. Substantial proof shall be a diploma , certificate, or official acknowledgement that all educational criteria for t he document have been submitted.

C. Recognized colleges and universities are those i nstitutions of higher learning accredited by one or more of the United States regional accrediting bodies.

5. Longevity Pay Plan
A. Subject to subsections B below, the City will pa y employees represented by the SAFF, Local 522 for their continued longevity based on the following formula.

The Longevity Pay increments will be paid on a monthly basis. 2 ½% After 10 years of ful l-time City service
Additional 2 ½% After 15 years of full-time City service

08/11/2026 Item No.23.

Additional 2 ½% After 20 years of full-time City service B. Longevity Pay shall not exceed a total of 7 ½% p er month for an employee with twenty or more years of full-time City service.

7. Retirement
A. Public Employees Retirement System (PERS) – Form ula

1) Safety fire employees hired by the City of Folso m on or prior to October 16, 2011, shall receive the retirement benefit of 3%@50. 2) Safety fire employees hired by the City of Folso m on or after October 17, 2011, who qualify as CalPERS Classic Members shall receive the retirement benefit of 2%@50.
3) Safety Fire-EMS employees hired on or after Janu ary 1, 2013, shall receive the retirement benefit of 2.7%@57 or as specified i n the California Public Employee’ Pension Reform Act of 2013 (PEPRA).
4) Safety fire employees hired on or prior to Octob er 16, 2011, shall receive the retirement benefit based on the single highest twelve (12) months of compensation. Safety fire EMS employees hired on or after October 17, 2011, shall receive the retirement benefit based on the employee's highest average monthly compensation during thirty-six (36) consecutive months of employment as provided in state law pertaining to PERS.

B. Public Employees Retirement System (PERS) -- Ret irement Contribution:

1) The City agrees to pay the full cost of employer contributions to the Public Employees’ Retirement System (PERS) for all employe es in the Sacramento Area Firefighters Local 522 bargaining u nit, as currently contracted with PERS.
2) Employees who are CalPERS Classic members shall pay 9% of the employee share of retirement. Safety fire EMS emplo yees who are PERS PEPRA members will pay the employee contribution as specified and adjusted by PERS.
3) The City agrees to continue Government Code Sect ion 20691, Conversion of Employer Paid Member Contributions (EPMC).

C. PEPRA Members Supplemental Retirement Plan:

1) Effective as soon as administratively possible, but no later than 90 days from ratification, the City shall establish a 457 P lan for members hired on or after January 1, 2013. Government (Gov.) Code se ction 7522.10 of the PEPRA law provides the authority for the earnings l imit for all PEPRA members. In the event PEPRA members reach the annua l compensation limits in a calendar year, the City and employee sh all deposit an amount equal to the employee/employer retirement contribut ions into the

08/11/2026 Item No.23.

employee’s 457 Plan for the remainder of the calend ar year. Contributions to the 457 Plan shall be paid on each payroll cycle . At the start of the new calendar year, contributions to the 457 Plan shall be paused, and all contributions shall resume to CalPERS until the member reaches the annual limit in the new calendar year.

8. Pre-Retirement Optional Settlement 2W Death Bene fit (Survivors) Effective October 16, 2006, the City modified the c ontract with the Public Employees Retirement System (PERS) to add Government Code Sec tion 21548, Pre-Retirement Optional Settlement 2W Death Benefit.

9. PERS Retirement – Alternate Death Benefit
The City has amended its contract with the Californ ia Public Employees Retirement System to add the Alternate Death Benefit for Local Fire Members credited with 20 or more years of service (Government Code Section 2154 7.7). SAFF Local 522 agrees that all costs associated with this PERS contract amendment shall be borne by employees in the SAFF Local 522 Bargaining Unit. To this end, the C ity will deduct a flat amount per paycheck from each employee in the SAFF Local 522 B argaining Unit sufficient to fund the cost of this PERS contract amendment.

10. Social Security Withdrawal
The City agrees to reopen and negotiate the directi on of funds, should the City withdraw from Social Security.

11. Field Training Officer (FTO)
A. Field Training Officer Program
The City and the SAFF, Local 522 agree to jointly d evelop and implement a Field Training Officer (FTO) program to assist in the career development and mentoring of department employees or paramedic interns. Addi tional career development training may be added to the program as agreed to by both parties. Only one person may serve as an FTO at any one time for an individu al receiving career development and mentoring. Parties agree to meet as agreed on for the purpose of developing a FTO operating plan for the Department.
1) The Fire Chief shall certify the qualifications of an employee as a designated FTO prior to using the employee in that capacity. The FTO plan used by the department shall be voluntary in nature and shall not require participation by employees. Employees who voluntee r to be an FTO shall not be negatively affected in their annual evaluati on for performance as an FTO. An employee may be removed from the FTO posit ion by the Fire Chief due to lack of need for the FTO or other reas ons as set forth by the City.

B. Field Training Officer Compensation
1) The City shall pay FTO compensation on an hour-f or-hour basis to

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employees who are assigned in writing by the depart ment to work in this capacity. Fire-EMS employees shall receive an addit ional $4.00 per hour while serving as an FTO.
2) FTO compensation shall be paid to employees prov iding for the training of department employees (probation or full time) or pa ramedic interns as authorized by the Fire Chief.

12. Salary
A. Effective July 1, 2027, all employees shall rece ive a salary increase of 2.5%.

ARTICLE V

OVERTIME

1. Overtime Computation
A. Overtime hours worked will be compensated at one and one-half (1 ½) times the employee’s straight time hourly rate of pay (includ ing all compensation regularly and routinely received by the employee), based on 40-hour work week (2080 hours worked per year).

B. FLSA Overtime - To be eligible for FLSA overtime , employees in the Single Role classifications must actually work “feet on the gro und” for more than forty (40) hours in the 7-day workweek.

C. MOU Overtime - To be eligible for MOU overtime, employees in the Single Role classifications must be in “paid status” more than forty (40) hours in the 7-day workweek.

1. For purposes of calculating MOU Overtime, all pa id leave, with the EXCEPTION of sick leave, will be considered “paid status” for purposes of determining overtime owed under this Agreement.

2. All hours exceeding 40 hours in the 7-day work w eek, in combination of actual hours worked AND leave while in “paid status” will result in overtime.

D. Pursuant to City Personnel Rules and Regulations all overtime shall be compensable in increments of thirty (30) minutes rounded up.

E. Incidental overtime of less than fifteen (15) mi nutes in a non-recurrent extension of the workday/shift is non-compensable in any form.

F. Employees shall be compensated at their overtime rate of pay for one (1) full hour when working beyond the incidental overtime period (Arti cle V, Section 1(D), Overtime) as a result of a dispatched incident.

G. The department has the right to require employee s to remain at work and perform work- related duties for the duration of the established overtime period.

2. Compensating Time Off
Compensatory time off (CTO) may be accrued in lieu of overtime pay to a maximum of one hundred forty-four (144) hours. Employees shall take CTO off in a manner consistent with Annual Leave. Accrued CTO shall be used before any other accrued leave time is

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used.

3. Overtime Scheduling
The City agrees to a list for “Special Events” and a list for “Scheduled Overtime Duty”.

A. “Scheduled Overtime Duty” (“SOD”) procedures wil l follow the most current “SOD” Procedures found in the Fire Departme nt Standard Operating Procedures Manual. “SOD” list shall be zeroed out on January 1 st of each year and revert to overall seniority then to overtime hours.

B. “Special Events” shall be a rotating list. Emplo yees hired and/or mandatory hired under the “Special Events” criteria shall rot ate to the bottom of the “Special Events” list, without regard to the number of regular overtime hours worked. 1) "Special Events" is defined as any event that i ncreases the daily staffing over the normal staffing level (i.e., Rodeo stand by, Red Flag warning day, Wind event).

C. The parties agree to meet and confer over the impact of future special events on SAFF 522 members.

4. Emergency Callback
A. Employees are subject to routine or periodic eme rgency callback that is inherent and integral part of their assigned job responsibilitie s in order to provide continuous public services deemed to be necessary and appropriate by the City Manager or Fire Chief. The Fire Chief or his/her designee shall initiate emergency callback to all employees to return to work when an emergency condition at the National, State, or local level compels the Fire Chief to provide staffing for continuous public service deemed necessary and appropriate to maintain department operations.

B. Employees shall keep the Department apprised of a current telephone number where they can normally be reached during off-duty hours. Employees shall respond to an emergency callback within a reasonable amount of time, unless the employee is incapable of doing so.

C. Emergency callbacks shall be paid at (1 1/2) tim es the hourly rate of pay, for a period of two (2) hours or for hours actually worked, whichever is greater. Section 5 of Article V, Overtime, does not apply to emergency callbacks.

5. Mandatory Hires

A. Employees who are notified that they are being m andatory hired to work overtime as a result of unplanned vacancies (e.g., sick leave, emergency leave, strike team backfill) that originate within twenty-four (24) hours or less of the start of the next scheduled work shift shall be compensated at a rate at two (2) times the employee’s regular hourly rate of pay for up to a maximum of eight (8) hours per occurren ce and one and one-half (1 ½) times the employee's hourly rate of pay for the balance of the mandatory hire shift.

B. Employees that volunteer to work a mandatory hir e in place of another employee who has been notified that they are being mandatory hired will work that overtime at the employee’s

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normal overtime pay rate of one- and one-half times (1 ½). The employee volunteering for that shift will have their name moved to the bottom of the mandatory hire list.

6. Court Appearances
Fire-EMS personnel will be compensated for required , job related off-duty court appearances at one- and one-half times (1 ½) the hourly rate of pay, for a period of four (4) hours or for hours actually worked, whichever is greater. Personnel filling shift vacancies for employees appearing on-duty for court appearanc es shall receive overtime compensation in accordance with Article V, Section 1, Overtime.

7. Staffing Errors
An employee, who reports to work on an overtime shift and is released from duty because of a staffing error, will be compensated for two (2) hours at one and a half times (1 ½) the hourly rate of pay.

8. Scheduled Off-Duty Training
Fire-EMS personnel will be compensated for schedule d, off-duty training that is required by the Department and approved by the Fire Chief. C ompensation shall be at one and a half times (1 ½) the hourly rate of pay, for a peri od of two (2) hours or for hours actually in attendance, whichever is greater. In the event the training is canceled, and the employee has arrived at the training location he/she will be compensated for two hours of overtime.

7. City Business Travel
A. Employees who travel to do business for the City shall be compensated for actual hours worked, including travel time. Employees that are not on a regular scheduled day to work shall be compensated one and one half (1 ½) times the employee's total hourly compensation rate.

B. Employees who travel to do business for the City that are on a regular scheduled workday shall be placed on Offsite (OS) Status for the entire work period with no loss in wages or benefits.

C. The employee may request a Per Diem, which shall be the maximum Per Diem based on the current Maximum Domestic Per Diem Rate table in accordance with the City Travel Policy. If Per Diem was not r equested prior to departing on City business, the employee upon retur ning from the City business may submit a Per Diem request for reimbursement wit h receipts. Out-of-county strike team assignments or overhead assignments do not qualify for Per Diem.

ARTICLE VI

HOURS OF WORK

1. 40 Hour Fire-EMS Schedule
The City and the SAFF, Local 522 agree to the work schedule as follows:

Work Schedule: OXOXXXX

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A. Personnel will be assigned to a 40-hour work week ( 2,080 straight-time hours per year) and will be regularly scheduled to work 48 hours per week, consisting of two (2) 24-hour shifts. The 48-hour schedule includes e ight (8) hours of required overtime per week (416 hours per year).

B. A shift rotation is defined as one (1) continuou s 24-hour shift.

C. Shifts begin at 0800 hours and continue for 24 hours ending, the following morning at 0800 hours.

D. Employees shall be compensated at one and one ha lf (1 ½) times the employee's total hourly compensation rate for all hours worked in excess of 40 hours in a 7- day workweek. A workweek period is defined as Sund ay at 0800 hours to the following Sunday at 0759 hours.

E. Pursuant to Article II, Item 9, Management Righ ts, of the MOU work schedules shall continue to be at the discretion of the Fire Chief in consultation with the City Manager, upon reasonable notice and good faith meet and confer with the SAFF, Local 522. The City also reserves the right to review this shift schedule on a periodic basis in o rder to address any potential inequities or problems.

2. Modified Duty Assignments
The department reserves the right to determine and approve all modified duty assignments.

However, the City will endeavor to provide modified duty assignments upon request to any employee who submits verification from a medical physician identified from a City health insurance plan, or from a Worker's Compensation app roved treating medical physician, substantiating the necessity for such modified duty as a result of pregnancy, injury or illness. The department shall determine the hours and duties of any approved modified duty assignment. Although Modified Duties Assignments ar e temporary, they are not to be classified as “Temporary Work Assignments” as defin ed in Article IV, Section 3A, Temporary Work Assignments. In the event the emplo yee is placed on a forty (40) hour work schedule Article VII, Section 1, Holidays, wil l not apply and the employee will continue to receive HIL pay.

3. Fair Labor Standards Act (FLSA)
The City shall comply with the Fair Labor Standards Act (FLSA) and agrees to meet with the SAFF, Local 522 in order to discuss sections of the Act which affect the agreed upon wages, hours and other terms and conditions of employment.

4. Station and Shift Transfer Process
A. Department Requests
In the event a departmental need arises to move personnel from one shift to another shift, or from one station assignment to another, the basic reason for the need shall be made known to the affected employees. Whenever a vacancy occurs, it shall be bid for by seniority in the rank in which the vacancy occurs. If the vacant position is not filled through the bid process (no one appli es), assignments shall be made through inverse order of seniority within the rank. If the transfer is due to

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departmental need, the City will be responsible for honoring the employee’s scheduled vacation dates.

B. Employee Requests
Employees voluntarily seeking transfer from shift to shift, or station to station, may fill out a shift/transfer request form and submit i t to the Fire Chief or his/her designee for approval.
1) Requests to move stations/shifts will be approve d by the Fire Chief or his/her designee if there are no negative operational impacts to the Department.
2) Station/Shift transfer requests may be submitted twice annually for consideration.
a. Deadlines to request a transfer are September 15
th , with an implementation date near the
beginning of the next calendar year based upon esta blished work schedules and pay cycles.

Employees granted a shift transfer at this time will be notified by the Fire Chief or his/her designee no later than October 1 st and will bid station assignment and vacation dates on the newly assigned shift.
b. Station / Shift transfer requests will be consid ered mid-year as well. The deadline for such requests is June 1 st with an implementation date near the beginning of July based upon established work schedules and pay cycles. Employees granted a shift transfer at this time will be notified by the Fire Chief or his/her designee no later than Ju ne 15 th . Employees who are granted a Station/Shift transfer mid-year assume all responsi bility for re-scheduling their vacation dates pursuant to the MOU and/or loss of the bid vacation dates. Employees granted a Station/Shift transfer mid-year will be assigned to the vacancy identified based upon their seniority in rank. c. Voluntary Station/Shift requests are final once the Department has notified the employee in writing of the transfer request approval. Members are specifically precluded from initiating any appeal process (including Article XII, Grievance Pr ocedure) to either the City of Folsom or the Folsom Fire Department for any alleged violations of this section.

5. Station Bids
Station bids for each shift will be conducted at le ast annually. The Department will establish a list of departmental needs for each ind ividual station. The most senior person by rank will bid for assignment based on filling th e department's needs until all of the department's needs have been met and all of the vacant seats have been filled.

ARTICLE VII

HOLIDAYS

1. Non-Shift Personnel
Employees who are not assigned by the Fire Chief to work shifts shall receive the following:

A. The following holidays shall be observed by the City:

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1) New Year’s Day (January 1)
2) Martin Luther King Day
3) President’s Day (Washington’s Birthday)
4) Memorial Day
5) Independence Day
6) Labor Day
7) Veterans Day
8) Thanksgiving Day
9) Friday following Thanksgiving Day
10) December 24
11) Christmas Day
12) December 31
13) One (1) personal holiday as set forth in Item E ) below.

B. If any holiday falls on a Saturday, the proceedi ng Friday shall be observed as the holiday; and if any such holiday falls on a Sunday, the following Monday shall be observed as the holiday.

C. If a holiday occurs on the employee’s first norm al day off, the employee shall take the preceding day as the holiday; however, if the h oliday occurs on the employee's second consecutive normal day off, the employee shall take the following day as the holiday.

D. Notwithstanding the above, eligible employees wh o are not able to take a designated holiday day off shall be credited with one (1) additional day of annual leave (8 hours) for each holiday not taken.

E. As listed under Item A above, employees shall be entitled to one (1) personal holiday (8 hours) per calendar year. Employees who have not completed their initial probationary period may not take their personal hol iday until they have completed the probationary period.

F. No holiday pay shall be accrued when an employee has been off work on unpaid status for more than ninety (90) days.

2. Holiday Pay Differential
In lieu of all holidays authorized or observed by the City, employees shall receive holiday- in-lieu pay as follows: Holiday-in-lieu pay of six percent (6.0%) shall be paid in equal amounts each pay period. The amount of such pay sha ll be of the employee’s base hourly pay, in effect during the pay period. Holiday-in-li eu is additional compensation for employees who are normally required to work on an e mployer approved holiday because they work in positions that require staffing without regard to holidays.

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Holiday Pay shall be compensable for retirement (PERS) purposes.

3. Holiday Routine
On those days which are official City holidays, or on any other days declared a holiday by the Administration, a holiday routine will be utilized. Under this procedure, the personnel will be allowed to spend the day pursuing leisure activities within the following guidelines:

A. Morning apparatus checks are to be performed pro mptly as on any other day.

B. Any maintenance or other activity required to ma intain the company at an appropriate level of readiness will be performed.

C. Any other activity will be performed, if in the judgment of the officer in charge, to delay or fail to perform such an activity would in any way be detrimental to the Department's equipment or operation.

ARTICLE VIII
LEAVES

1. Annual Leave.

1. Employees shall receive the following Annual Lea ve credits:

Day-shift personnel (40-hour work week):

Length of Service Annual Leave Allowance
0 - 5 years 15.34 hours per month
5 – 10 years 18.66 hours per month
10 – 15 years 21.34 hours per month
15+ years 23.34 hours per month
Shift personnel (48-hour work week):

Length of Service Annual Leave Allowance
0 - 5 years 20.86 hours per month
5 - 10years 23.70 hours per month
10 - 15 years 26.00 hours per month
15+ years 27.72 hours per month
B. Except as specified in Article VIII, Section D ( 1) below, employees shall not accrue sick leave. However, employees who have accumulated sick leave hours shall retain such hours and may use such leave credits pursuant to Article VIII, Section 5, Sick Leave, of this MOU.

C. Subject to Article V, Section 2, annual leave cr edits may be used for any approved absence, including vacation and illness or injury. When annual leave is used for

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vacation, it will be scheduled pursuant to Article VIII, Section 2, Leave Request Procedure and Section 3, Vacation Bidding. When ann ual leave is used for illness or injury leave (e.g., sick leave) purposes, it will be taken pursuant to Article VIII, Section 5, Sick Leave, of the MOU.

D. Employees with annual leave balances that exceed the annual leave caps of 275 for non-shift/412 for shift employees as of the date of ratification by City Council of this MOU, may retain such balances until the annual leave balances are reduced to the new caps.
1) To avoid exceeding the maximum of 275/412 hours of accumulated annual leave, the City may direct an employee to take time off on annual leave.

However, in the event the City does not approve ann ual leave for an employee in an amount sufficient to reduce accumula ted annual leave to 275/412 hours, the number of hours that exceed 275 /412 hours shall be rolled over into sick leave until the annual leave balance is reduced to the cap.

E. Employees may cash out up to 40 hours of annual leave for non-shift personnel, and 48 hours of annual leave for shift personnel per fiscal year. Annual leave shall be cashed out pursuant to procedures established by the City Human Resources Department.

F. Accrued annual leave shall be cashed out upon se paration of employment with City on an hour for hour basis.

2. Leave Request Procedure
A. Leave requests less than twelve (12) hours shall be granted if a qualified individual voluntarily accepts the overtime opportunity.

B. Unless an exception is granted by the Fire Chief no less than twelve (12) hours can be granted for leave purposes and 12-hour leave inc rements must begin or end at 0800 (i.e. 0800-2000 or 2000-0800 hours).

C. No more than fifteen percent (15%), (rounded to the nearest whole number), per shift inclusive of the Fire Captain, Fire Engineer, or Firefighter classifications shall be granted leave for bid vacation (BV) purposes at any one time. Leave usage requests scheduled during an approved Bid Vacation (BV) process will be granted in accordance with this subsection.

D. No more than fifteen percent (15%), (rounded to the nearest whole number), per shift within inclusive of the Fire Captain, Fire En gineer, or Firefighter classifications may be granted leave. Consideration of all shift vacancies will be examined prior to any additional leave approval by the Fire Chief or designated supervisor in consultation with the Union Representative. All prior approved leave requests will be honored regardless of total personnel off.

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E. Exceptions to Subsection (D) may be granted by t he Fire Chief so long as it does not result in a mandatory hire.

F. Leave requests for dates submitted twenty-one (2 1) days or more from the requested leave date will be accepted and may be ap proved as per subsection D above. Leave requests submitted within the twenty-o ne (21) day period, which create a vacancy requiring an overtime fill, will b e approved if a qualified replacement accepts the overtime opportunity as per Section D above.

G. If the department decides to staff additional si ngle role fire-EMS transport units, the Fire Chief will meet and confer with SAFF, Local 52 2 to discuss alternative leave request procedures for single role fire-EMS personnel.

3. Vacation Bidding
A. Vacation bid scheduling consists of one calenda r year, starting January 1.

B. Vacation bidding will be based on seniority by shift. Seniority will be based on the original, full-time hire date of the employee.

C. The bidding process shall be completed ninety ( 90) days prior to the beginning of the calendar year. Bidding shall take place by the shift proceed ing the ninety (90) day period and shall consist of a one-day process for each shift.

D. Shift employees shall be notified of the schedu led bid day for their respective shift thirty (30) days prior to that day by the Shift Representative.

E. Shift employees on extended leave, i.e., Worker ’s Compensation and vacation, shall be notified thirty (30) days prior to the scheduled bid date for their shift by the Shift Representative.

F. Vacation bidding will be held in rounds. Each e mployee will have the opportunity to select a continuous block of time, one (1) continuous block per round. Bidding by rounds will continue until all employees have completed selections. At the conclusion of the bidding process, employees shall submit their bid selections to the shift repr esentative or unit representative on a Department Vacation Request slip by the end of that shift.

G. Vacation bidding cannot result in more than fift een percent (15%), (rounded to the nearest whole number), or authorized shift personnel per sh ift shall be granted annual leave for bid vacation purposes at the same time. For example: 20 shift personnel per shift x 15% =3 personnel granted leave for bid vacation purposes.

H. Shift representatives or authorized designees w ill handle the bidding process for their respective shifts.

I. Employees on leave, i.e., Worker’s Compensation , disability leave, or leave shall be responsible for submitting their selections for the bidding process. The desired bids by such employee shall be submitted to the respective shift representative or unit representative prior to the scheduled bid day. Failure to do so will result in vacation bid passes by the employee.

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J. A continuous block of time consists of no less than twelve (12) hours and no more than ten (10) shifts. All blocks shall be consecutive, including multiple days of request of less than twenty-four (24) hours. A continuous block of time is defined as any vacation request within a ten (10) shift period when that block contains no more than fifteen percent (15%), (rounded to the nearest whole number), or authorized shift personnel per shift off.

K. Employees shall have the option to cancel Sched uled Bid Vacation and/or vacation thirty-one (31) days prior to the scheduled date.

L. At the completion of the bidding process, all calendar days with less than fifteen percent (15%), (rounded to the nearest whole number), of authorize d shift personnel per shift off can submit a leave request pursuant to the MOU. These leave req uests will be considered by the Fire Chief or designated supervisor, in consultation with the Uni t Representative, and approval will be dependent upon the number of total vacancies on the requested day.

M. Vacation scheduling disputes will be submitted t o the unit representative for review by a designated committee. Decisions by the committee will be final.

N. A calendar will be completed by the unit repres entative and/or shift representative and submitted to Fire Administration. The calendar and signed Department Leave Slips will be forwarded to Fire Administration. Individual employees are responsible for entering their own bid requests into TeleStaff within two rotations, after the bid process is complete, for review and approval by their immediate supervisor. Bid Vacation not entered into TeleStaff after two rotations from the bid process may be subject to forfeiture by the employee.

O. New hire employees will have seniority determin ed by the City at time of hire. Vacation scheduling shall be in accordance with City rules and regulations, Section 2.01.100 (B,1).

P. In the event an employee is transferred to anot her shift due to departmental needs, the City will be responsible for honoring the employee’s schedule d vacation dates. If the employee requests a transfer to another shift after vacation bids are completed, the employee assumes all responsibility for re-scheduling of the bid dates pursuant to the MOU and/or loss of the bid vacation dates.

Q. The days of December 24
th and 25 th and Thanksgiving Day are considered "Sacred Holiday s" and are not eligible for Bid Vacation or Vacation.

R. In the event an employee bids for vacation on th e front end of a sacred holiday, it shall not be considered as a non-continuous block of time if the employee wishes to bid on the back end of the sacred holiday event, i.e. bidding or requesting vacation after the 25 th of December.

S. The City of Folsom and the Folsom Fire Departme nt shall be held harmless for the enforcement or implementation of this Section. Members are spec ifically precluded from initiating any appeal process (including Article XII, Grievance Procedure ) to either the City of Folsom or the Folsom Fire Department for any alleged violations of this Section.

T. Employees shall not be allowed to bid more time than they have the ability to accrue in a calendar year in addition to 96 hours of comp time per month.

4. Shift Trades
A. Each employee may be allowed to trade time for s hift(s) for which they are

08/11/2026 Item No.23.

able to secure another qualified employee to work i n their place; provided that the substitution does not impose any fiscal impact to t he City. Substitutions are to be made with the approval of the department. The Fire Chief or his/her designee retains the right to refuse the shift trade. The su bstitutions will be applied for in advance. The employee requesting the trade is responsible to fill the vacancy. The City shall not be held responsible for arrangements between employees.

B. Shift Trades not working must be 24 hours or greate r at the end of the assigned rotation (0800-0800), or at the beginning of the as signed rotation (0800-0800).

Shift trades of 24-hours will protect against a mandatory hire for the 4-days after or before the trade not working dependent on which end of the rotation it falls.

C. An employee on a shift trade will remain eligible for a mandatory overtime pursuant to Article V, Section 4, Emergency Callback.

D. In the event an employee creates an approved shi ft trade agreement with another qualified employee and that employee is una ble to report to work for the shift, he/she shall either:

i. Notify the original employee so they can secure another qualified employee to work the shift, or
ii. The trade individual must find another qualifie d individual to work the shift, or iii. The original employee must report to work, or
iv. In the event the original employee is unable to report to work, the Department will deduct the appropriate number of annual leave hours . If the Department must hire a replacement on overtime for the vacancy created, an nual leave will be deducted from the accepting trade working employee using the provisions governing force hire compensation, Article V, Section 5 Mandatory Hires when applicable.
v. In the event that the accepting trade-working em ployee has an approved Workers' Compensation injury that prevents him/her from cove ring the shift in question, the fiscal responsibility shifts to the original employee requ esting the shift trade unless the original employee finds another qualified individual to work the shift as trade working. If the Department must hire a replacement on overtime for the vacancy created, annual leave will be deducted from the original employee requesting t he shift trade using provisions governing force hire compensation, as outlined in Article V, Section 5 Mandatory Hires.

E. An employee who submits and receives vacation bi d dates pursuant to the MOU vacation bid process shall not cancel vacation date(s) and then use a shift trade with another employee to take the same date(s) off from work.

Exceptions:
1) An employee may cancel their vacation bid date a nd give it to a co-worker in need of the day off and then take a trade if the co-worker’s vacation position will not create a mandatory hiring to fill the vacancy. 2) If, due to unforeseen use of annual or sick leav e for injury or illness leave

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purposes, employee's hours drop below the hours nee ded for vacation, the employee may cancel the bid vacation and take a trade.

F. Vacation date(s) that have been approved and fil led with overtime cannot be cancelled and replaced by a shift trade, unless, the overtime was filled with a mandatory hire.

5. Sick Leave
A. For the purposes of this Section, immediate fami ly is defined as the employee's parents, grandparents, spouse, son, daughter, brother, or sister and any step or foster relationship mentioned above, or any of these relat ionships to the employee's spouse. Immediate family shall also include any oth er person living in the employee's household as a family member.

B. Subject to Article V, Section 2, leave used for illness or injury (e.g., sick leave) is a paid leave of absence to be used in the following circumstances:
1) Actual illness or injury of the employee that oc curred outside the scope of their employment;
2) Actual illness or injury of a member of the empl oyee's immediate family, where the employee's attention/attendance is required. 3) Exposure of the employee to a contagious disease ;
4) Medical, dental, or vision care appointments of the employee which cannot be scheduled outside of duty hours;
5) Medical, dental, or vision appointments of the e mployee's immediate family which require the presence of the employee.

C. Pursuant to Government Code section 20965, emplo yees may convert accrued sick leave to service credit for purposes of retirement.

D. Utilization of leave for illness or injury and r equirements the City may impose is as follows:
1) Eligible employees may be granted leave in minim um units of one (1) hour for the purpose of Section 5 of this Article.
2) The City may require probationary employees to s upport each use of leave for an illness or injury by requiring an attending physician’s statement.
3) The City may require employees who have used thr ee or more consecutive work days of leave for an illness or injury to submit an attending physician’s statement.
4) Employees shall not use leave for disabilities d etermined to be job- related and compensable under Worker’s Compensation.
5) An eligible employee who becomes ill or injured while on vacation

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may have such period of illness or injury charged to Sick Leave. The request to change leave status must be requested to the on duty Chief Officer on the day of the occurrence or upon the em ployee’s return to duty.
6) The following modifies City Rules and Regulation s Section

2.01.110, Sick Leave, Subsection I, Item 2. Where an employee uses leave for the purpose of illness or injury for more than three (3) instances, during any twelve (12) month period may be considered as one indicator of abuse of leave for injury or illness.

E. Employees unable to report to duty and requestin g leave due to illness or injury, after 2100 hours the day prior shall notify the Dep artment pursuant to procedures established by the Department before 0700 hours on the morning of the leave request. Leave shall be approved if the reason meets the criteria specified in Article VIII Section 5B, Illness or Injury Leave.

6. FLMA or CFRA
A. Leave shall be granted for baby bonding time in accordance with CRFA with a 30- day notice given to the Battalion Chief. Baby-bond ing leave shall be a minimum of 96-hour blocks with the exception that an employ ee may apply for less than 96 hours twice.

B. FMLA or CFRA leave for medical appointments will require approval by the Human Resources Department with valid documentation from the attending physician.

C. FMLA or CFRA leave for long-term care of a famil y member with medical needs will require approval by the Human Resources Department.

7. Bereavement Leave
Classified permanent or promotional probationary employees may be granted a maximum of ninety-six (96) hours or four (4) shifts from accrued leave time for each instance to deal with matters related to the funeral, death, or critical illness (where death appears imminent) of any member of the employee's immediate family, i ncluding parents, children, siblings, aunt, uncle, brother/sister-in-law, or daughter/son-in-law.

Annual leave usage for bereavement leave shall be t aken by the employee in twelve (12) hour or greater increments for 56-hour employees and four (4) hour increments for 40 hour employees.

8. Personal Leave Time
A. Any Personal Leave Time (PLT) earned by employee s and still remaining on the books may be used by employees for time off on an h our for hour basis until the employee has exhausted the bank. Use of PLT time s hall be subject to the following:
1) Use of PLT shall be subject to the operating nee ds of the Fire Department.

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2) PLT shall have no cash value and may not be cash ed out. If an employee terminates employment with the City, any PLT remain ing in the bank shall be surrendered with no value to the employee.

9. Emergency Leave
A. An employee may be approved for the use of annua l leave for circumstances that requires the employee’s immediate attention and are extraordinary, unforeseen, last minute, and unavoidable situations requiring not more than 24-hours.

10. Leave Time Accrual - Non-Pay Status
Notwithstanding Article VII, Section 1 and 2, Non-S hift Personnel and Holiday Pay Differential, and Article VIII, Section 1, Annual L eave, employees shall not accrue additional Annual Leave or Holiday Leave while on n on-pay status; provided however, that employees on Workers Compensation (job related injuries) shall continue to accrue leave time until such employees are considered "per manent and stationary" pursuant to Workers Compensation law or expiration of 4850 time, whichever is sooner.

11. Local 522 Catastrophic Time Bank
The purpose of the catastrophic time bank is to ena ble employees to receive and donate any accrued annual, sick, personal or holiday leave to assist employees who have no leave, and who will suffer a financial hardship due to a prolonged illness or injury to themselves or a member of their immediate family as defined in Article VIII, Leaves, Section 5A. The following conditions shall apply:

A. Catastrophic leave will be available only to emp loyees who have exhausted all of their own paid leave through a bona fide serious illness or injury.

B. The SAFF Local 522 (Folsom Fire-EMS Professional s) Catastrophic Time Bank shall be administered by the City.

C. An employee may be on disability insurance and u se the time bank credits in the same manner that sick leave is used to supplement disability insurance benefits.

D. All donations are to be confidential between the donating employee and the City.

E. Employees donating to the time bank must have ni nety-six hours of available leave credits after making a donation.

F. Donating employees must sign an authorization fo rm (prepared by the City), and specify which catastrophic time bank the donation w ill be applied to, and the employee who is to be a recipient of the donation. Employees relinquish all rights and claims to hours donated.

G. Unused leave hours will remain in the SAFF Local 522 (Folsom Fire-EMS Unit) Catastrophic Time Bank
H. Donations shall be subject to applicable tax law s.

08/11/2026 Item No.23.

I. Availability, and the use of, catastrophic leave time shall not delay or prevent the City from taking action to medically separate or disability retire an employee.

J. The City may require a physician’s statement, st ating that the presence of the employee who is requesting catastrophic leave time to care for an ill or injured immediate family member is necessary.

12. Leave Conversion Rates
The City and the SAFF, Local 522 agree to the follo wing terms related to the conversion of leave hours by employees when they are placed in temporary, permanent or modified duty assignments (in excess of the 1 st full pay period) within the department.

G. Conversion from Shift work to “day shift” work w eek assignments.

Employees temporarily or permanently assigned to st aff positions on a 40-hour work week schedule shall have all leave usage banks (sick leave, annual leave, holiday-in-lieu, etc.) converted using a division factor of 1.2 for each hour available in the leave bank. As an example, a 56-hour employ ee with 100 hours of annual leave would see their annual leave bank adjusted to 83.33 hours with the employee assigned to a 40-hour work assignment.

H. Conversion from “Day shift” to “Shift” work week assignments. Employees temporarily or permanently assigned to line positio ns on a 56-hour work week schedule shall have all leave usage banks (sick leave, annual leave, holiday-in-lieu, etc.) converted using a multiplier factor of 1.2 for each hour of available in the leave bank. As an example, a 40-hour employee with 88.33 hours of annual leave would see their annual leave bank adjusted to 100 hours.

I. Leave accrual and usage rates shall be applied a t the hourly rate used by the employee during the temporary or permanent assignment.

J. Leave conversion rates shall be applied to all l eave accrual banks provided to the employee by the City (annual leave, holiday-in-lieu, etc.).

K. Any accrual in excess of the limits shall be pai d to the employee in cash at the employee's total hourly compensation rate.

13. Jury Duty Leave
A. Employees who have been summoned or subsequently selected to serve on a jury shall receive their regular rate of compensation by the City for normal worked hours and days or shifts during such absence from work, provided the employee endorses to the city that compensation received by the employee for jury duty service.

B. Employees will be allowed to retain any mileage compensation granted to them by the respective court jurisdiction to which they were summoned or selected for jury duty. Employees summoned to jury duty must provide evidence of such summons and subsequent jury duty days away from work throug h the Fire Chief or the Human Resources Director. Employees shall be grante d leave without loss of compensation and benefits for all time required to meet the jury duty obligation, as

08/11/2026 Item No.23.

follows:
1) Jury Selection. When the employee is required to physically report to the court for jury selection, he/she shall be released from Fire Department duty at 2000 hours when scheduled for work on the evenin g prior. When available, employees shall use telephonic or electr onic methods for determining jury selection.
2) Serving Jury Duty. When the employee has been se lected for jury duty he/she shall be released from Fire Department duty at 2000 hours when scheduled for work on the evening prior to each day of service. 3) Serving Concurrent Days. When the employee is se rving on a jury panel for concurrent days he/she shall be released from his/h er duty on a 24-hour basis for the specific days in service to the court.
4) Completion of Jury Duty. When service to the cou rt is completed, the employee shall return to work as normally scheduled.
5) Scheduled Overtime. An employee who has schedule d overtime Fire Department duty shall notify the on-duty Battalion Chief of the summons and will be released from the scheduled overtime du ty assignment for the entire work period.

ARTICLE IX

INSURANCE

1. Medical Insurance
The City’s obligation for health, dental, vision, l ife and disability insurance coverage is limited to plan contribution. Plan content, includi ng eligibility criteria, is determined by the respective carriers.

2. Health Insurance
A. The City’s maximum monthly contribution for acti ve employee health coverage for the year 2025 is as follows:

Employee only: $854
Employee plus one: $1,506
Employee plus family: $1,955
B. The City’s maximum monthly contribution for acti ve employees health insurance will be adjusted annually. If there is an increase in the K aiser HMO monthly premium, the City will cover 50% of the increase, adding it to the previous year’s contribution for employee- only, employee plus one, and employee plus two or more coverage levels. The final amount will be rounded to the next whole number. The emplo yee is responsible for the difference between the applicable premium and the City’s contr ibution. If there is no premium increase, the City’s contribution remains unchanged.

08/11/2026 Item No.23.

Example:

If the previous year’s City contribution for employee-only coverage was $500 and the Kaiser HMO premium increased by $20, the new City contribution would be:
$500 + (50% of $20) = $500 + $10 = $510
C. Employees who enroll in a health plan with a hig her monthly premium than the City's maximum monthly contribution as established under p art A and B above shall pay the difference between the maximum contribution amount and cost of the premium through payroll deduction.

D. The City will maintain an IRS 125 Medical Reimbursement Account. Employees may participate in the account pursuant to administrative procedures established by the City.

E. Effective December 31, 2019, employees who retir e from City service must have at least 120 months of continuous service as a City employee to qualify for dental and vision insurance benefits provided to active employees. Th e City shall contribute 5% of the premium per year of City service, up to an 80% City contribution.

3. High-Deductible Health Plans

A. The City agrees to offer two High-Deductible Hea lth Benefit Plans offered by the health benefit plan carriers.

B. The City agrees to make available a Health Savin gs Account (HSA) to employees who select either of the High-Deductible Health Benefit Plans.

C. Fifty percent (50%) of the difference between th e City's monthly contribution towards the cost of the Kaiser HMO Health plan premiums as set forth in Article IX, Section 2 of the MOU and the monthly cost of the premium for a High- Deductible Health Plan shall be contributed into the employee's HSA. The City shal l make this contribution through the termination date of this MOU, after which this Section C shall sunset.

D. Employees who decline to participate in City hea lth insurance coverage shall receive a cash back payment from the City of $300.00 per month for each month the employee does not participate in City health insurance coverage.

E. Tax status of contributions, contribution amount s, and use of HSA funds shall be in accordance with federal and state law.

4. Out-of-Area Health Plan
A. OAHP shall work in conjunction with the Health R eimbursement Arrangement (HRA) provided by the City to active employees. Each OAHP retiree will obtain a participant account.

B. Only retirees who (a) are not eligible for Medic are who reside outside of the service area as defined by the City health insurance carrie rs; (b) qualify for retiree health coverage pursuant to Article IX, Section 9 and (c) agree to disenroll from the current group medical benefit plan for retiree heal th coverage may participate in OAHP.

08/11/2026 Item No.23.

C. Once a retiree opts to participate in OAHP, the retiree shall thereafter be prohibited from returning to retiree health coverage.

D. The City will contribute to the retiree’s partic ipant account on a monthly basis in an amount equal to the amount of the City’s contrib ution for employee only or employee plus 1 coverage, based on the retiree’s marital status at the time of OAHP election. Eligible dependents not covered at the ti me of election will not be added at a later date, Annual confirmation of dependent e ligibility will be required. The City’s contribution would be used for premiums to obtain health coverage and other qualified out-of-pocket medical expenses. Under no circumstances shall the contribution be higher than the City paid premiums for similarly situated in-area employees. The retiree shall be responsible for adm inistrative costs established by the HRA plan administrator.

E. Upon the death of, or martial dissolution from, the retiree’s spouse on record at the time of election to participate on OAHP, the fundin g level will be adjusted to employee only. Subsequent spouse(s) from any subseq uent marriage(s) (i.e. post initial OAHP election) shall not be eligible to par ticipate and funding will remain at employee only. In the event of the retiree’s death, surviving spousal benefits will conform to City practices applicable to employees p articipating in City plans.

Should the retiree obtain coverage from another sou rce (e.g. coverage by spouse), the funding will cease and will not be reinstated.

F. Rules and procedures governing OAHP shall be det ermined and administered by the City’s Human Resources Department. Disputes re garding OAHP shall be appealed to the City Manager or designee and shall not be subject to arbitration.

5. Dental Insurance
Dental insurance will be provided by Delta Dental S ervices, Inc. The City will contribute 100% of the monthly premium for an employee, employee and dependent or an employee plus family as set forth in the plan document. Othe rwise, the City’s obligation for dental insurance coverage is limited to dental plan contributions. Delta Dental Services, Inc. shall determine dental plan coverage.

6. Vision Care
The City will contract with Vision Services Plan (V SP) to provide vision care. The City will contribute 100% of the monthly premium for an employee, employee and dependent, or employee and family as set forth in the plan document.

The City’s obligation for Vision insurance coverage is limited to plan contributions. VSP shall determine Vision insurance plan coverage.

7. Health Benefits Labor-Management Committee
The parties agree to participate in a joint Health Benefits Labor-Management Committee to review existing health benefit programs, including, but not limited to, cost containment, direct contracting for health benefit plans, and cr eation of a health benefits cafeteria plan.

The Health Benefits-Labor Management Committee shal l be open to all employee

08/11/2026 Item No.23.

organizations representing City of Folsom employees . The SAFF, Local 522 may select up to two City employees to participate in Committe e meetings. Employees who participate in Committee meetings shall do so without loss of compensation.

8. Life Insurance
The City agrees to continue to pay the premium for $40,000 life insurance coverage and $40,000 accidental death and dismemberment coverage for employees in the bargaining unit for the term of this Agreement.

Eligible dependents shall receive $2,000 life insurance coverage.

9. Short Term Disability Insurance
The City agrees to provide a Short-Term Disability Insurance Program, with the City paying 100% of the premium rate for the weekly indemnity insurance program (short-term disability) of up to 60% of the salary of the plan maximum for up to sixty (60) calendar days. The waiting period for initiation of benefit s shall be twelve (12) calendar days.

Otherwise, the City’s obligation to provide Short T erm Disability insurance coverage is limited to plan contributions. The Short-Term Disability insurance carrier shall determine plan content. The City will meet with Local 522 upon request.

10. Long Term Disability Insurance
The City and the SAFF, Local 522 agree that the SAF F, Local 522 will provide a Union sponsored plan covering long-term disability for non-work-related injury and illness.

The cost of the premium will be a post-tax deductio n from the employee’s semi-monthly paycheck.

The Long-Term Disability insurance carrier shall determine plan content.

11. FMLA/CFRA Leave Status
Health insurance coverage is limited to the City’s obligation as set forth in Federal and State law in relation to FMLA or CFRA. An employee on either FMLA or CFRA leave status will have continued health insurance as found in this Article during the leave period.

The employee is responsible for applicable premium co-payments as required.

Upon exhaustion of FMLA or CFRA, the City will prov ide the employee with a notice advising of COBRA rights to which the employee may be entitled. Notwithstanding whether the employee is or is not supplementing disability insurance to maximize income, the employee shall cease leave accruals and be sole ly responsible for health insurance coverage.

12. Retiree Health Insurance

08/11/2026 Item No.23.

A. Employees hired on or prior to May 8, 2007, who retire 1 from City service on July 1, 2007 or later may participate in the health insurance plans made available by the City for active employees. The amount of the City’s monthly contribution shall be determined as set forth below. Any costs that exceed the maximum paid by th e City towards retiree health insurance costs shall be borne by the retiree.
1) Employees who retire with less than 5 years of s ervice 2 shall not be eligible to receive any City contribution toward the cost of retiree health insurance. 2) Employees who retire with more than 5 years of s ervice shall qualify for a monthly City retiree health insurance contribution.
a. Subject to the maximum set forth in 10b below, t he City retiree health insurance contribution shall be as follows:
i. Retiree only – an amount equal the City’s contri bution towards active employee health insurance
3 for the category
of “employee only.”
ii. Retiree and one dependent – an amount equal to the
City’s contribution towards active employee health
insurance for the category of “employee plus one.”
iii. Retiree and two or more dependents - an amount
equal to the City’s contribution towards active emp loyee health insurance for the category of “employee plus two or more” until the retiree reaches age 55. Thereafter, the City's contribution towards a retiree with two or more dep endents shall be an amount equal to the City's contribution toward active employee health insurance for the category o f
"employee plus one plus $100".
b. The City’s monthly contribution toward the cost of retiree health insurance shall not exceed the maximum monthly contribution paid by the City t o active employee health insurance for the categories of employee only (for retiree only), emp loyee plus one (for retiree plus one dependent), and employee plus two or more until age 55 and employee plus one plus $100 after age 55(for retiree plus two or more dependents).

1 “ Employees” are exclusively permanent and/or pro bationary employees of the City of Folsom on the date the Addendum was approved by the Folsom City Council (M ay 8, 2007). “Retire” or “retiree” is defined as any classified City employee who (1) applies for retire ment with the Public Employees’ Retirement System (PERS) within ninety (90) days after terminating employmen t with the City; and (2) receives a PERS retirement benefit. 2 “Service” is defined as full time (or equivalent) continuous permanent and/or probationary employmen t status with the City of Folsom.
3 "Active employee health insurance" shall be defin ed as the health benefits contribution formula in e ffect for active employees as of July 1, 2011.

08/11/2026 Item No.23.

i. The cap for each category shall be adjusted each January thereafter by an amount not the exceed 3%, depending on the percent increase in the Consumer Price Index (CPI), U.S. Department of Labor, for November - November of the previous y ear, Index CPI-W, Urban Wage Earners and Clerical Workers, Series #CWUR0400SA0, United State s. (Example, if the cost of living for the specified period increases by 2%, the cap shall be increased by 2%. If the cost of living for the specified period increases by 4%, the cap shall be increased by 3% (cost of living increases in the cap shall be rounded to the nearest tenth.)
c. The City shall contribute $25 per pay period int o a Health Reimbursement Arrangement (HRA) for each probationary/permanent employee hired after May 8, 2007. d. The parties acknowledge that unit members who re tire from City service prior to July 1, 2007, shall, subject to future negotiations and agreements, receive health benefits as set forth in the 2006-2008 Memorandum of Understanding (Article IX, Insurance, paragraph 2(A) between the City and Sacramento Area Firefighters, Local 522, IAFF Folsom Unit.

13. Retiree Health Benefits Reopener
A. The City agrees to conduct a bi-annual actuarial study of the cost of health benefit programs for employees who retire from City employment. The first actuarial study shall be conducted not later than July 1, 2007.

B. A copy of the completed actuarial study shall be sent to each employee organization that represents City employees. Upon request of either the City or SAFF, Local 522, the parties agree to reopen the MOU and meet and confer in good faith on MOU provisions covering health, dental, and/or vision insurance programs for active employe es and/or active employees who retire from City employment.

C. If the City and an employee organization other t han SAFF, Local 522 reopen that employee organization’s MOU on the MOU provisions referenced in 11B above, the City will immediately notify SAFF, Local 522 and offer to meet and confer.

ARTICLE X

ALLOWANCES AND REIMBURSEMENTS

1. Uniform Allowance
A. The City agrees to pay employees the sum of one thousand two hundred fifty dollars ($1,250.00) per year for the purchase of approved o n duty uniforms and attire. All uniforms purchased shall comply with the most curre nt regulations and specifications as identified in the Standard Operating Procedures (SOP). 1) Payment of the annual uniform allowance shall be made on or about July

20. Employees with less than six (6) months service by July 1 of a given year shall not be granted a uniform allowance.
2) On initial employment, the City agrees to purcha se new employees all uniform components noted below:

08/11/2026 Item No.23.

 Two (2) class B short sleeve shirts – Workrite - Navy blue Nomex  One (1) class B long sleeve shirt – Workrite - Navy blue Nomex  One (1) tie and tie clip
 Three (3) class B pants – Workrite - Navy blue No mex  One (1) pair O.S.H.A. approved safety boots, 8” h igh lace type, zipper optional, with toe protection and sole penetration protection.  One (1) class B jacket – 511 Chameleon brand dark navy jacket  One (1) belt-black, basket weave, 1 ¾" width, chr ome buckle, open slot chambers style
 Six (6) class C tee shirts – 100% cotton, navy blue, crew neck  Two (2) pair shorts – l00% cotton, navy blue
 One (1) baseball cap

2. Uniforms - Class A
The City will continue to provide a Class "A" uniform for all full-time personnel after their probation period has ended. This will include one ( 1) dress jacket, one (1) dress pant, one (1) tie, one long sleeve white shirt, one (1) dress shoes, and one (1) uniform cap as identified in the most current Fire Department Standard Operating Procedures.

3. Mileage Reimbursement
Employees shall be reimbursed for the use of their personal vehicle, at the IRS approved rate, for all miles driven at the direction of the City.

4. Tuition/Books Reimbursement
Employees who attend job related classes/training p rovided by either recognized college or Fire Certification (State Fire Marshal) programs that are approved by the department shall be entitled to reimbursement of costs for boo ks and tuition up to one thousand two hundred fifty ($1250) per fiscal year with a maximum reimbursement window of up to two (2) years per class, after the date of completion of the designated class(es). The Fire Chief may authorize additional employee reimbursement cos ts above this limit, when requested by the employee, should said request not exceed the budgeted amount of the department for this program.

A request for reimbursement must be submitted in writing and approved in writing.

Approval shall be given in writing by the departmen t Training Officer prior to the beginning of the class/training program.

An employee may repeat a job-related course to main tain or upgrade his/her knowledge, skills and abilities.

Attendance in job related classes/training programs will be non-mandatory and will not include overtime payment or reimbursement for costs of transportation, meals, or other incidental expenditures, unless otherwise specified prior to the course and approved by the department.

Employees who fail to attend or satisfactorily complete a job-related class/training program

08/11/2026 Item No.23.

shall reimburse the department for all costs incurred by the City. The City shall deduct the total amount of monies spent by the department from the employee’s paycheck over the next four (4) pay periods.

A. Eligibility
When an employee attends a recognized college or un iversity for job related training, such institutions of higher learning shal l be accredited by one or more of the United States regional accrediting bodies.

5. Compensation for Training
Training for programs authorized or required by the City shall be financed by the City except as otherwise specified by the City Manager o r department head prior to the participation in such training. Such compensation is separate and distinct from the compensation offered for the position and classific ation involved in training. Subject to approval by the department head or City Manager, employees may be authorized to attend training programs during regular working hours. Wh en the needs of the City service so require, the department head may direct any employe e to attend a meeting or conference as part of the vocational training required for the position. In such case, attendance may be mandatory and reasonable compensation for meals, lodging, travel and associated expenses shall be allowed. Travel to and from such training shall be provided by the City or at City expense, however, no overtime will be paid for the time required to travel to and from such meetings, nor the conference or training attendance hours beyond normal working hours.

6. Replacement of Damaged Personal Property
When an employee damages his/her personal property during the normal performance of his/her duties, the employee may submit a claim for reimbursement with the City. The City shall investigate such claims and may reimburse the employee for all or part of the damaged personal property. The City shall respond to the em ployee within thirty (30) days after submission of the claim. The final decision to reimburse an employee for damaged personal property shall rest with the City.

ARTICLE XI

EMPLOYEE DISCIPLINE

1. Employee Discipline
A. Policy:

It is the policy of the City that discipline of Cit y employees is imposed on an appropriate and consistent basis. When an employee engages in misconduct or when job performance is unsatisfactory in the judgm ent of the City, disciplinary action may be initiated.

B. Definitions:

As used herein, "disciplinary action" means written reprimand, suspension without

08/11/2026 Item No.23.

pay, reduction in salary, demotion, dismissal or tr ansfer for purposes of punishment.

As used herein, “corrective action” means counselin g memorandum, letter of instruction or similar action shall not be considered disciplinary action.

C. Persons Authorized to Initiate Disciplinary Acti on:

Discipline may be initiated by those authorized in the City Personnel Rules.

D. Employment Status and Application of Appeal Proc edure:
1) Permanent Status: This article shall only apply to employees with permanent status with the City.
2) Probationary Status: An employee in probationary status shall have no right to grieve, arbitrate or appeal release from probationary appointment. 3) Temporary Employee: An employee in a temporary p osition shall have no right to grieve, arbitrate or appeal release from temporary appointment. 4) Temporary Upgrade (Out of Class): An employee in a temporary upgrade status shall have no right to grieve, arbitrate or appeal release from temporary upgrade status.

E. Cause for Disciplinary Action:
1) Discipline shall be for cause. Examples of condu ct or performance deficiencies that may warrant discipline include, but are not limited to (more examples can be found in the City Personnel Rules):
a. Misstatement of facts during the hiring process
b. Falsification of an entry on a City document (e. g., timecard, expense report)
c. Disclosure of confidential information
d. Insubordination or willful disobedience
e. Incompetence, inefficiency or unsatisfactory job performance f. Discriminatory, discourteous, or unbecoming beha vior g. Theft, misuse or unauthorized use or possession of City property h. Dishonesty
i. Misconduct, i.e., any behavior that brings harm or discredit to the City
j. Being under the influence of illegal drugs, alco hol, or possessing illegal drugs while on City property or on official business. This subsection shall not apply to an off-duty individua l engaged in otherwise legal activities at a City facility (park, walkway, or similar

08/11/2026 Item No.23.

City owned facility)
k. Conviction of a felony or misdemeanor that invol ves moral turpitude, or any other conviction or pleas of nolo contendere (no contest) or diversion for such offense, which adver sely affects, or brings discredit to, the City
l. Excessive absence or tardiness
m. Absence without approved leave
n. Violation of a City rule, policy, or procedure
o. Soliciting outside work for personal gain during the conduct of City business; engaging in outside employment for any bu siness under contract by the City; participating in any outside employment that adversely affects the employee's City work performa nce; and engaging in unauthorized outside employment
p. Loss or failure to maintain any license, certifi cation, and/or clearance which is required as a minimum qualification or condition of employment for the employee's position.

F. Investigation and Interrogation Rights:

Employees under investigation or subject to interro gation shall be afforded the following rights:
1) Interrogation must occur at a reasonable hour on duty and if conducted off- duty, the employee must be compensated for that tim e in accordance with adopted City policy and cannot be punished for miss ing work due to the interrogation;
2) Prior notification of name, rank and command of the person in charge of the interrogation and the nature of the investigation must be given; 3) Interrogation must be for a reasonable time peri od with reasonable breaks to attend to any physical needs and must be void of offensive language or threats of punitive action or promise of reward in exchange for information; 4) Statements made under duress, coercion, or threa t of punitive action are prohibited from being admissible in a subsequent ju dicial proceeding, subject to certain exceptions under Government Code Section 3253(f); 5) Interrogations may be recorded and employees mus t be provided access to the recording, if any further proceedings are conte mplated or prior to any further interrogation at a subsequent time. The em ployee is entitled to a transcribed copy of the notes made by a stenographe r or any reports or complaints made, except those required by law to be kept confidential.

Confidential notes cannot be entered into the firefighter’s personnel file;

08/11/2026 Item No.23.

6) The employee shall be informed of his/her consti tutional rights if it becomes apparent that he/she may be charged with a criminal offense; 7) Upon the filing of a formal written statement or charges, or whenever an interrogation focuses on matters that may result in punitive action against any employee, that employee has the right, at his o r her request, to have a representative of his or her choice present during the interrogation at all times, except that the representative shall not be a person subject to the same investigation.

G. Corrective Action:
1) If the City decides to administer, a Letter of I nstruction shall include a Behavior Modification Plan with actions and timelin es designed to assist the employee in meeting the intent of the City’s Rules and Regulations, Fire Department Policies and Procedures, as well as the provisions contained within this MOU.
2) A corrective action may not be appealed beyond t he Fire Chief, H. Preliminary Notice of Disciplinary Action:
1) If the City intends to impose discipline, the em ployee shall be notified in writing the decision to impose discipline within thirty (30) calendar days of its preliminary decision.
2) A copy of the preliminary notice of disciplinary action shall be served upon the employee either personally, by email, or by first class mail and certified mail, return receipt requested, to the last known a ddress of the employee.

The last known address shall be deemed to be the address that is within the employee's official personnel file. If notice is p rovided by mail only, the employee should be deemed to have received notice f ive (5) calendar days after the date of mailing.
3) The Preliminary Notice shall include:
a. A statement of the nature of the disciplinary ac tion; b. A statement of the reasons for the disciplinary action citing the item(s) under Section E of this Article, department orders, or the Personnel Rules, which have been violated;
c. Any supporting material or documentation;
d. A statement advising the employee of the right t o appeal the action, the manner and time of which the appeal must be mad e, and the required content of the appeal; and
e. The name and address of the person to whom all w ritten communication regarding this appeal shall be sent.

08/11/2026 Item No.23.

I. Skelly Meeting:
1) An employee who is subject to disciplinary actio n shall have the right, within seven (7) calendar days after receiving a Pr eliminary Notice of Disciplinary Action to request a Skelly Meeting by filing a written request for a meeting signed by the employee or the employee's representative with the employee's consent with the City Human Resources Director. 2) Failure to respond or inaction within the specif ied time will result in the waiver of the right to a Skelly meeting and the pro posed discipline becoming final.
3) Upon a written request for a Skelly meeting, the City shall appoint a "Skelly Officer". The Skelly Officer will meet with the emp loyee, listen to arguments and receive documents presented by the em ployee. The Skelly Officer shall prepare a written response within a r easonable time and provide it to Human Resources. The Skelly Officer may dismiss, modify, or sustain the proposed discipline.
4) If the proposed discipline is sustained or modif ied by the Skelly Officer, the disciplinary action shall be implemented. A Final N otice of Disciplinary Action shall be served in the same manner as the Pr eliminary Notice of Disciplinary Action and shall include the Skelly Of ficer’s findings.

Employees may not appeal a Written Reprimand beyond Skelly hearing.

J. Arbitration Hearing Process:
1) Within fifteen (15) calendar days after receipt of the Final Notice of Disciplinary Action, the employee may appeal to arb itration. Notice of the appeal must be filed with the Human Resources Direc tor. If the employee fails to file a notice of appeal within this time period, the disciplinary action shall become final and there shall be no further appeal. 2) Appeals of disciplinary actions to arbitration s hall be pursuant to Government Code Section 3254.5.
3) The appeal of a disciplinary action of a permane nt employee will determine whether there is cause for the disciplinary action taken against the employee.
4) The parties to the disciplinary appeal shall mut ually select an arbitrator. The parties to the disciplinary appeal shall be: the Ci ty and the employee. The employee may be represented by the SAFF Local 522, self-represented, or independent counsel.
5) The employee shall be entitled to appear persona lly at the hearing and produce evidence.
6) The fees and expenses of the arbitrator, a court reporter and transcript if required by the arbitrator, shall be shared equally by the parties.

08/11/2026 Item No.23.

7) The decision of the arbitrator shall be final an d binding on the parties. No appeal or review of the arbitrator's decision by Wr it or other mechanism before any court, administrative tribunal or any ot her forum on any legal theory or basis shall be possible.

2. Performance Evaluations
A. Performance evaluations which result in the deni al of an employee's step increase may be grieved up to and including binding arbitrat ion in accordance with Article XII, Grievance Procedure.

B. The City agrees to meet with the SAFF, Local 522 in order to review and propose changes to existing employee evaluation system.

3. Personnel Files
The City and the SAFF, Local 522 agree that there i s only one official personnel file for each employee. The employee's official personnel fi le is private and confidential, subject only to review by the employee, the employee's repr esentative with written authorization, or authorized City representatives.

The City shall allow every employee the opportunity to review their personnel file at any reasonable time upon request, and to obtain a copy of any needed document in the file. The official personnel file shall remain under the cont rol of the City and shall be the only personnel file admissible as evidence in any discip linary matter. There shall be no documents placed in the official personnel file without the employee's knowledge. If, upon examination of the personnel file, the employee dis covers any documents placed there without the employee's knowledge, the City shall, u pon written request of the employee, investigate the allegation and remove any such docu ment placed there in violation of this Section.

The City and the SAFF, Local 522 recognize the Department’s use of a “rotating employee file” (REF) for the preceding twelve (12) months, f or the purposes of employee performance evaluations, and that the file may be i ncluded with the City’s official personnel file and incorporated into the employee performance review process and/or other related employee matters.

4. Purging Personnel Files
Counseling memorandums are not disciplinary and sha ll not be placed in the employee's personnel file. Employees shall be offered the oppo rtunity to sign and be provided with a copy of any disciplinary written material before it is placed in the employee's personnel file. The employee shall be given an opportunity during regularly scheduled working hours to prepare a written response to such materials. Th e written response must be submitted within fifteen (15) days of the notice to place the disciplinary documents in the personnel file.

If the employee was not allowed the opportunity to sign the documents prior to placement within the personnel file, the employee shall have the right at any time to attach a written response to the material. Any person who places any written material in an employee's file

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shall sign and date the material, signifying when i t was placed in the employee's file and by whom.

Disciplinary actions and corrective action shall be purged (at the request of the employee) from the employee's personnel file following the sc hedule below in accordance with the City's records retention policy:

Written reprimands: Eighteen (18) months
Other disciplinary actions (i.e., suspensions, redu ctions in pay, and demotions:

Five (5) years

ARTICLE XII

GRIEVANCE PROCEDURE

1. Grievance Procedure
A. Definition. The term "Grievance" as used in thi s Agreement is limited to a complaint or request of an employee, group of employees, or the SAFF, Local 522 which involves the interpretation or application of , or compliance with the provisions of this Agreement, City Rules or Regulat ions, or directives of the Fire Department including, but not limited to, the imposition of discipline.

B. Time Limits. Grievances not presented within th e time limits established for each step of this procedure shall not be considered. Should the City fail to answer within the established time limits, the grievance may be p rocessed to the next level and the failure to answer shall be given the appropriate weight by the arbitrator.

When days are used in this article for the purpose of establishing time limits, those limits will be presumed to have been met when the a ppropriate forms are either personally delivered to the affected party or deposited in the U.S. mail, as evidenced by the appropriate postmark.

Time limits may be waived by mutual agreement between the parties. As referred to in this article, all "days" are "calendar days."
C. Presentation. An employee and/or a SAFF, Local 522 representative may present a grievance while on duty, provided such presentati ons and discussions do not disrupt City operations and are kept to a reasonable minimum.

D. Procedure. All grievances as defined herein sha ll be processed in accordance with this procedure. All grievances, beginning at Step 2 shall be filed on forms provided by the City for that purpose. The SAFF, Local 522 may refuse to represent a grievant and the City may refuse to consider a grie vance in those circumstances where the aggrieved party has not followed this procedure. 1) STEP 1. Within fifteen (15) days of the act(s) and/or omission(s) giving rise to the grievance or within fifteen (15) days of the time the employee of the SAFF, Local 522 should reasonably have been awa re of said act(s) and/or omission(s), the grievance shall be discusse d informally with the

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person or persons most directly responsible for the circumstances which gave rise to the grievance. If the grievance is no t resolved within fifteen (15) days of the date on which it is first presente d at Step 1, the grievant may proceed to Step 2.
2) STEP 2. Within fifteen (15) days of receipt of the Step 1 answer, or if no answer is given, within thirty (30) days of the Step 1 meeting, the grievant, if still dissatisfied, shall file with the Fire Chief, a formal written grievance.

Within fifteen (15) days of the receipt of the formal grievance the Fire Chief or designee shall meet with the grievant to discuss the matter. The Fire Chief or designee shall respond to the grievant, in writing, within fifteen (15) days of the Step 2 meeting. The Step 2 respon se shall include the position of the Fire Department and the reasons the refore, as related to the grievance.
3) STEP 3. Within fifteen (15) days of the Step 2 response or, if no Step 2 response is received, within thirty (30) days of th e Step 2 meeting, the grievance may be presented in writing to the City's Employee Relations Officer. The Employee Relations Officer shall condu ct such investigation as is deemed appropriate and shall issue a written determination within thirty (30) days of the date on which the grievance is first presented at Step

3. If the Employee Relations Officer fails to issu e a written determination within the prescribed period of time or if the dete rmination is not satisfactory to the grievant, the grievant may requ est that the matter be submitted to binding arbitration. Matters of griev ance which are not disciplinary in nature shall only be submitted to Step 4 by the SAFF, Local 522. Employees may, if they so desire, individually submit matters of discipline to arbitration subject to the employee paying one half the costs as defined in Step 4.
4) STEP 4. A request for binding arbitration shall be made in writing to the Employee Relations Officer within fifteen (15) days of the date which the grievant received a copy of the written determinati on of Step 3, or in the event that no Step 3 answer is received, within for ty-five (45) days of the date of the Step 3 meeting.

An arbitrator may be selected by mutual agreement between the parties. However, should the parties fail to voluntarily agree upon an arbitrator, the parties shall make a joint request to the American Arbitration Associa tion or the Mediation and Conciliation Service of the State of California. Th e parties shall request a list of five (5) qualified arbitrators. Each party shall alternately strike one name from the list and the last remaining name shall serve as arb itrator. The first party to strike a name shall be determined by the toss of a coin.

The arbitrator's decision shall be final and bindin g on the City, SAFF, Local 522, and the grievant. The arbitrator shall have no authority to add to or delete from the terms of this Agreement, City rules or regulations, or directives of the Fire

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Department. All fees and costs of the arbitrator and court reporter, if any, shall be borne equally by the parties. In matters of discipline which have not been submitted to arbitration by the SAFF, Local 522, all costs wi ll be split between the parties to the arbitration and shall not include the SAFF, Local 522.

ARTICLE XIII

MISCELLANEOUS

1. Fitness for Duty
The City may require an employee to submit to a med ical examination by a physician, designated by the City, to evaluate the capacity of the employee to perform the work of the employee's position. The decision to require an em ployee to submit to such medical examination shall be based upon reasonable cause to believe, by the employee's department head, or designee, that the employee is unable to p erform the work of the employee's position. The examination cost shall be paid by the City.

The physician shall make a written report to the Ci ty and the employee. Information provided by the City's physician shall be kept confidential by the City and shall contain no medical report except to note whether the employee is fit to work. After consideration of the report and other pertinent information, if the City concludes that the employee is unable to perform the work of their present position, the City may demote or transfer an employee to an appropriate position, including one of less t han full time. If it is concluded that the employee is unable to perform the duties of his/her position and the employee cannot be demoted or transferred to another position, the employee's employment may be terminated.

An employee who is terminated because of medical inability to perform the duties of their position shall be placed on paid administrative leave until the date of separation.

An employee evaluated pursuant to this section, who is in disagreement with the findings of the City's physician may elect, at the employee' s cost, to have an examination by a physician of the employee's choosing. If the employ ee's physician finds the employee fit to perform their job duties the employee shall have the right to submit the matter to binding arbitration in accordance with Article XII, Grievance Procedure, of this Agreement.

This section shall not supersede any rights and/or remedies the parties may have pursuant to the California Workers Compensation system and Labor Code.

2. Fitness Evaluation (Wellness)
The City and the SAFF, Local 522 agree to work coop eratively during the term of this MOU to implement and maintain a long-term Wellness-Fitness Program for all uniformed personnel. The Wellness-Fitness Program shall be generally consistent with the guidelines recommended by the third edition of the Fire Servic e Joint Labor-Management Wellness- Fitness Initiative, and as approved by the Fire Chief.

The City and the SAFF, Local 522 agree to support a comprehensive, mandatory annual medical examination for all uniformed employees represented by the SAFF, Local 522, as a component of the Wellness-Fitness Program. The medical examination shall be generally consistent with the guidelines recommended by the t hird edition of the Fire Service Joint

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Labor-Management Wellness-Fitness Initiative, and as approved by the Fire Chief.

3. Modified Duty Assignments
The City and the SAFF, Local 522 agree to jointly develop and implement a modified duty assignment program for the department. The intent o f this program is to develop policies and procedures to be used by the department that would identify the appropriate temporary assignment for employees who are injured or ill tha t limit their ability to serve in their normal assignment. Changes shall be subject to Art icle I, Section 4, Meeting and Conferring During the Term of the MOU, of this MOU.

4. Job Classification
A. The City recognizes that the SAFF, Local 522 has a vital interest in the content of the job specifications, including minimu m qualifications for classifications represented by the SAFF, Local 522.

B. The City and the SAFF, Local 522 agree that chan ges to job specifications, minimum qualifications, scheduling and similar areas of concern related to classifications represented by the SAFF, Local 522 shall be subject to meet and confer and that all changes recommended by that group shall be subject to Article I, Section 4, Meeting and Conferring Dur ing the Term of the MOU, of this MOU.

C. The City agrees to notify the SAFF, Local 522 an ytime the City proposes to recruit and examine for, or to modify, job classifications represented the SAFF, Local 522. The City agrees to meet and confer with the SAFF, Local 522 over such proposed changes if the SAFF, Local 522 so requests.

D. On its own initiative, the SAFF, Local 522 may a t any time notify the City Human Resources Director that the SAFF, Local 522 r equests to meet and confer with the City over the SAFF, Local 522 propo sed modifications to the recruitment and examination procedure, and/or j ob specifications for fire job classifications represented by the SAFF, L ocal 522. The City shall schedule a meet and confer session in response to such request.

E. Nothing in this provision shall be construed as to require the City to divulge information or change procedures that in any way wo uld compromise the integrity of the City's merit system.

5. Paycheck Distribution
The City agrees to submit paychecks to employees in the Fire Department no later than 0830 hours each payday, for the off-going shift.

If it becomes feasible during the term of this MOU, this provision will be applied to all employees.

The parties recognize that patience and tolerance will be exercised in the execution of this provision. Any discrepancies will be rectified with in a reasonable period of time.

Reasonable period of time is defined to mean two (2) normal working days.

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6. Labor/Management Team
A. The City and the SAFF, Local 522, agree to estab lish a joint labor- management team to meet and confer on matters raised by either party.

B. The Labor-Management team will determine the fre quency of meetings and the number of representatives in attendance from the bargaining group.

7. Department Bulletins
Department Bulletins will be given an expiration date at the time they are published.

9. Program Technician
The Program Technician plan used by the Department shall be voluntary in nature and shall not require participation by employees. Employees who volunteer, except as noted in Subsection 10 of this article, shall not be negatively affected in their annual evaluation for performance as a Program Technician. The employee may be removed from the program if the City sees fit either due to lack of need for the program or other reason as set forth by the City.

10. Program Incentive Pay
A. Employees designated by the Fire Chief to perfor m Program Technician tasks associated with one of the following program areas shall receive a one hundred dollars ($100) per month incentive pay allowance:
1) ACLS Instructor (1 Person per Shift)
2) HANDTEVY Instructor (1 Person per Shift)
3) CPR Instructor (1 Person per Shift)
Any of the above (Section A) Program Technician positions require a minimum of a two (2) year up to four (4) year time commitment. Members may re-apply for the applicable program technician position upon the con clusion of the required time commitment.

B. Members receiving incentive pay allowance, shall be limited to a maximum allowance of three hundred dollars ($300) per month per employee.

Employees shall maintain the necessary training and certification standards established by the Department in Section A, to continue to receive this pay allowance. All employees receiving program incentive pay shall have their pe rformance in the program included as part of the employees City performance evaluation. Performance that falls below “meets expectations” may subject the employee to removal from the program and loss of incentive pay as determined by the Fire Chief.

11. Probationary Period, Seniority, and Layoffs
A. To provide means by which employees are to be la id off in the event a reduction in work force occurs.

B. When determining “Seniority” or “Time in Grade” the following criteria shall be used:

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1) Seniority is defined as regular full-time City employment in the fire EMS Unit department regardless of classification.
2) If two or more people are hired on the same dat e, the seniority ranking will be in accordance with the employee’s ranking at the conclusion of the EMS Orientation Academy.
3) Time in grade shall be the method used to deter mine seniority by Classification. If two or more employees in the same classification have the same promotion dates, the employee’s position on the eligibility list for the employee’s job classification will determine seniority in that classification. 4) Military leave of absence shall not be deducted from time in grade or from total time in the fire department.
5) The probationary period for new hires may be ex tended for any leave time in excess of 240 hours (cumulative) within the prob ationary period. The extension specific to this section will be equal to the leave time used in excess of 240 hours.
6) Probationary period extensions for performance- based issues shall be reflected in “Seniority” calculations for new hires.
7) The probationary period may be extended for pro longed absences, with the exception of military leave and/or a workplace inju ry, during the probationary period. The extension specific to this section will be equal to the leave time used in excess of 240 hours.

C. Layoff or Non-Disciplinary Demotions.
1) Layoffs and/or reductions, shall be by the leas t senior employee in regular full time City employment in accordance with the Personnel Rules, Section

2.04.030E.

D. Reemployment and Seniority:
1) When an employee is laid off and is reemployed within two (2) years of said employee’s termination date, the employee shall receive the benefits as described in the Personnel Rules, Section 2.04.030J upon return to service. 2) When the period of absence exceeds two (2) year s, no benefits are retained and the employee is treated as a new employee for all purposes, unless they are vested by a third party (e.g. PERS credit).
3) When an employee resigns from the department an d then wishes to return, they may do so through the application and testing process when a vacancy occurs. Seniority shall be based on section B above.

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E. The City shall give the SAFF Local 522 Unit Repr esentative 30 days’ notice prior to the effective date of any layoff or a non-discip linary demotion along with a seniority list with all the member’s names, their hire date, and their time in grade.

13. Lateral Hires
Any decision to hire above the entry-level salary s tep (Step 1) will be based on the Fire Chief’s final recommendation with the concurrence o f the City Manager. Such recommendation shall be based on the Fire Chief’s e valuation of the candidate’s background and experience.

14. Personnel Rules
The City agrees to notify the SAFF, Local 522 of proposed changes to City personnel rules, and to meet and confer in good faith over the impac t of such changes prior to implementation.

15. Staffing
The purpose of this Article is to provide an agreed upon staffing level which supports safety and adequate personnel for workload distribution.

The City maintains the right to assign work and sch edule employees in accordance with requirements as determined by the City. In the regular course of operations circumstances such as cross-staffing apparatus, participating in special training assignments, provisions to assist employees found in Article VIII, Section 8, Emergen cy Leave and other needs of the City will cause the need to deviate from this staffing level. With this understanding, the City agrees that it shall maintain, on a daily basis, minimum apparatus staffing level as follows:
(A) In-service Single Role ALS Medic – two (2) fire EMS personnel; one of which must be a paramedic; or the equivalent thereof.
(B) In Service Single Role BLS Ambulance: two (2) fire EMS personnel; both of which are EMT’s; or the equivalent thereof.
(C) Employees in the classifications of Firefighter, Fire Engineer, and Fire Captain may voluntarily fill daily overtime vacancies on Single Role Units to prevent force hires of Fire-EMS personnel - applicable Suppression MOU, Article V – Overtime rates shall apply.

(D) Employees in the classification of Firefighter may be assigned involuntarily to fill daily overtime vacancies on Single Role Units, when Fire- EMS personnel are unavailable - applicable Suppression MOU, Article V – Overtime rates shall apply.

(E) Employees in the classification of Firefighter may be temporarily assigned to fill short-term vacancies on Single Role Units when the following conditions are met:
(1) Employees have been assigned to the Relief | Detail Pool (2) All suppression vacancies have been filled

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(3) Efforts to fill the vacancy, voluntarily, with Fire-EMS personnel have been exhausted

16. Bilingual Pay

1. The Fire Chief may designate up to (2) employees per shift, if at least two employees on the shift qualify, to receive a $100 p er month Bilingual Pay differential. Such assignment shall be in writing and must be renewed on an annual basis.

2. To be eligible for Bilingual Pay, an employee mu st (1) speak a foreign language as identified by the City; (2) agree to ut ilize his/her bilingual ability on the job; (3) demonstrate bilingual proficiency satisfactory to the Director of Human Resources; and (4) agree to maintain the necessary training and certification standards established by the City to continue to receive bilingual pay.

3. All employees receiving bilingual pay shall have their bilingual performance included as part of the employee’s City performance evaluation.

Performance that falls below “meets expectations” m ay subject the employee to loss of bilingual pay.

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Article XIV
Meet and Confer Regarding Implementation of the Single Role Classifications A. Purpose. The parties acknowledge that the execution and implementation of this Memorandum of Understanding ("MOU"), may give rise to issues t hat the Parties did not and could not reasonably anticipate at the time of negotiation. To resolve any such issues in good faith, the Parties agree to the following.

B. Agreement to Meet and Confer. Upon the written request of either Party, the Parties shall meet and confer in good faith regarding any unanticipate d issue that directly results from the implementation of the Single Role Classifications or the execution of this MOU. The request shall describe the issue with reasonable specificity and identify the affected article(s) and section(s).

The Parties shall commence meeting within [thirty ( 30)] calendar days of the request unless they mutually agree in writing to a different timeframe.

C. Articles and Sections Subject to This Provision. The Parties recognize that the following articles and sections are those most likely give rise to issues that the Parties did not and could not reasonably anticipate at the time of negotiation an d are expressly subject to this meet-and-confer provision. If a conflict is found to exist between Article 1, Section 4 and that found in Article XIV, Section C, the language in Article XIV, Section C will control.

Article [V], Section 1 - Overtime
Article [VI], Section 5 – Shift Bids
Article [VIII], Section 3 – Vacation Bidding,
Article [VIII], Section 4 – Trades
Article [XIII], Section 2 – Fitness Evaluations
Article [XIII], Section 15 - Staffing
D. Scope and Limitations. This provision is limited to issues arising from the implementation of the Single Classification and the execution of this MOU. It is not a general reopener, and neither Party may invoke it to renegotiate terms unrelated to the Single Classification. Except as expressly modified by mutual written agreement under this pro vision, all terms of this MOU remain in full force and effect for its full term.

E. Resulting Agreements and Authority. Any agreemen t reached under this provision shall be reduced to writing as a side letter or amendment, s igned by authorized representatives of both Parties for approval or ratification before taking effect. Nothing in this provision waives or diminishes either Party's rights or obligations und er the Meyers-Milias-Brown Act (Cal. Gov.

Code § 3500 et seq.) or other applicable law.

F. Non-Waiver. The obligation to meet and confer un der this provision does not require either Party to agree to any proposal or make any concessi on, and the failure to reach agreement shall not, by itself, constitute a breach of this MOU. Any impasse procedures otherwise available to the Parties remain applicable.

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ARTICLE XV

SIGNATURE CLAUSE

1. Signature Clause
This agreement shall remain in full force and effec t from August 11, 2026, through June 30, 2028. The parties agree to begin negotiations o n a successor Memorandum of Understanding no later than 120 calendar days prior to expiration of this Memorandum of Understanding.

City of Folsom Sacramento Area Firefighters, Local 522, IAFF

Bryan Whitemyer Trevor Jamison
City Manager President, Local 522

Allison Garcia Larry Menth
Human Resources Director Representative for SAFF, L ocal 522

Jason Solak Daniel Carson
Fire Chief SAFF, Local 522 Representative

Vance Piggott Robert Byrne
City Representative SAFF, Local 522 Representative

Doris Valencia Brent Cramer
Senior Human Resources Analyst SAFF, Local 522 Repr esentative

Tyler Smith
SAFF, Local 522 Representative

Roy Griffith
SAFF, Local 522 Representative

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Appendix A
Salary Schedule – EMT | Paramedic

Step Base Hourly Rate Base Monthly Total Base Annual Total

EMT (Hourly Range $22–$29.48)
1 $22.00 $3,813.33 $45,760.00
2 $23.10 $4,004.00 $48,048.00
3 $24.26 $4,205.07 $50,460.80
4 $25.47 $4,414.80 $52,977.60
5 $26.74 $4,634.93 $55,619.20
6 $28.08 $4,867.20 $58,406.40
7 $29.48 $5,109.87 $61,318.40

Paramedic (Hourly Range $26 - $34.85)
1 $26.00 $4,506.67 $54,080.00
2 $27.30 $4,732.00 $56,784.00
3 $28.67 $4,969.47 $59,633.60
4 $30.10 $5,217.33 $62,608.00
5 $31.61 $5,479.07 $65,748.80
6 $33.19 $5,752.93 $69,035.20
7 $34.85 $6,040.67 $72,488.00

Notes: Base monthly/annual salary is based off 40 hours a week (2080 hours a year) and does not include mandatory scheduled overtime compensation or the 6% Holiday Pay differential)

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Attachment 3
Class Specifications, Emergency Medical Technician and Paramedic

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Folsom Fire Department
Fire-EMS | Emergency Medical Technician (EMT)
BASE SALARY: $45,760 - $61,318.40
(Non-inclusive of Scheduled Overtime & Holiday Pay)

DEFINITION:

As a member of the Folsom Fire Department Emergency M edical Services (EMS) Division and under direction of assigned Fire Captain, responds to a variety of emergency and non- emergency calls for service and provides medical respo nses including Basic Life Support (BLS), medical transport, and performs other related activities in the community as required.

Provides basic medical care and ambulance transport servic es to hospitals or other emergency care facilities; participates in community risk reduction and public education activities.

DISTINGUISHING CHARACTERISTICS:

The non-firefighter position of Folsom Fire Emergency Medical Technician (EMT) is a journey- level classification. The Folsom Fire Department EMT m ay receive direction from the respective company o/icers in the Fire Suppression D ivision and/or o/icers when in the field. Incumbents are expected to perform the full ran ge of EMT emergency medical assistance duties. The classification is distinguished from Firefighter in that the latter combats, extinguishes and prevents fires. This classi fication is distinguished from the Folsom Fire Paramedic in that the latter performs the Advanced Life Support duties.

SUPERVISION RECEIVED AND EXERCISED:

General supervision is provided by assigned Fire Captain and/or other fire o/icers within the Department Chain of Command structure.

ESSENTIAL DUTIES AND RESPONSIBILITIES:

Depending upon assignment, duties may include, but are not limited to, the following:
 Respond to BLS and ALS medical responses and provide e mergency medical care and transportation; assist paramedic with ALS duties on scene  Participates in the delivery of emergency and non-eme rgency medical and health care.
 Provide emergency care in accordance with the provisio ns of Sacramento County EMS policies and procedures.
 Perform job duties in compliance with department oper ating procedures and city, county, state and federal laws and ordinances.
 Supports and assists other fire and medical personnel as directed in delivering medical care.