City Council Special and Regular Meetings – January 26, 2021

Closed Session

The City Council adjourned to closed session at 5:30 PM to discuss two litigation matters:

1. Conference with Legal Counsel – Existing Litigation: Hari Shetty, Kavita Sood, Neighborhood Elections Now v. City of Folsom, Sacramento County Superior Court Case No. 34-2020-00291639.
2. Conference with Legal Counsel – Anticipated Litigation – Significant Exposure to Litigation pursuant to Government Code Section 54956.9(d)(2): Pinhole leaks. No final action was announced after reconvening.

Scheduled Presentations

1. Administration of California Attorney Oath: Mayor Kozlowski administered the oath to Spencer Hodson, a Folsom native and Stanford Law graduate who recently passed the California Bar Exam.
2. Folsom Plan Area Quarterly Update:
   • Pamela Johns, Community Development Director, reported that in the fourth quarter of 2020, eight new planning entitlements were submitted, including multifamily, subdivision maps, and affordable housing applications.
   • Steve Croner, City Engineer, provided an aerial update showing 2,081 final lots mapped, 854 building permits issued, and 561 permits finaled. Home sales reached 186 in Q4. New home construction is active in multiple villages, and a new fire station site and elementary school site are stubbed. Blasting at Toll Brothers had no reported damage. Councilmember Aquino noted the importance of crosswalk visibility and safety.
3. Economic and Budget Overview:
   • Stacey Tamani, Finance Director, reported that first-quarter (July–Sept 2020) sales tax declined 4.4% compared to the same quarter last year and was down 11.1% annually. General retail was down 7.6%, food products down 14.7%, but construction was up 21.7%. The city projects sales tax of $22.8 million for fiscal year 2020-21, flat from last year, and expects it will take two to three years to return to pre-COVID levels. Other major revenues (Transient Occupancy Tax, Parks programs, ambulance fees) are below budget. The city also plans to align upcoming budget with GFOA strategic goals.

Public Comments & Testimony

During Business from the Floor:

• Muriel Bronstein (Thomas Station resident) spoke via teleconference on behalf of Neighborhood Elections Now. She argued that Folsom should switch to district elections, stating that at-large elections dilute representation and that continued litigation wastes money better spent on homeless services. She urged the council to end the lawsuit.
• Bashkar Vempati (President, Indian Association of Sacramento) introduced his organization, noted its community events and charitable contributions, and expressed a desire to collaborate with Folsom.
• Written comments from Robert Dresser and Dolly Sood (both Folsom residents) were read into the record supporting district elections and urging compliance with the California Voting Rights Act.
• Janine Ferrer (Folsom resident) gave in-person testimony about informal traffic safety data she compiled from 10 night-driving residents. She reported five near-misses since October from drivers running red lights, and urged more traffic enforcement. Councilmembers thanked her and suggested she share data with Police Chief Hillman.

Old Business

Presentation on SB 1383 Organics Recycling Mandate:

• Staff (led by Public Works) explained that the state law, effective January 1, 2022, requires organic waste collection for residences and businesses, an edible food recovery program, education, and enforcement.
• Estimated cost impacts: tipping fees will rise from $50 to $97 per ton, an annual deficit of $674,000 not currently in rates. One-time costs include $1.5 million for four additional collection trucks and $1.8 million for containers and bags. Two new environmental specialist positions are needed to develop and manage the program.
• Council directed staff to begin a rate study, bring back a formal position request, and work with Sacramento County to allow bi-weekly garbage collection (currently prohibited by health department) to reduce costs.
• Mayor Kozlowski noted the mandate is unfunded and will require rate increases.

New Business

1. Affordable Housing Fund Requests and Direction to Staff:
   • USA Properties Fund – Sage at Folsom (110 senior units at East Bidwell and Scholar Way): Council approved two resolutions (10583 for a $3.5 million loan with state tax credits, and 10584 for a $4.5 million loan with HOME funds) to give flexibility. The developer will first pursue the more competitive state tax credit option (Scenario B).
   • St. Anton Communities – Mangeny Place (152 affordable units in Folsom Ranch): The developer requested $6.86 million. Because current housing funds total $7.43 million and are insufficient for both projects simultaneously, staff recommended and council concurred to bring back a detailed funding plan within two to three months.
   • Both projects were praised for filling a need for affordable housing, especially for seniors and families.
2. Appointment of City Council Representatives to Regional Commissions: Council approved the proposed assignments, which were circulated before the meeting.
3. Mayor’s Appointment and Confirmation of Planning Commissioners to the Historic District Commission: Council confirmed Kevin Doole and Daniel West as the planning commission representatives.

City Manager Reports & Council Comments

• City Manager: Announced the virtual State of the City on January 28, the Zittel Family Amphitheater dedication, firework sales application window, the Housing Element update, and condolences for Sheriff’s Deputy Adam Gibson.
• Councilmember Aquino: Reported touring two homeless shelters; noted a need for a shelter dedicated to severe mental health; named President of Association of California Cities Allied with Public Safety; appointed chair of Citizens Advisory Committee for Folsom State Prison and California State Prison Sacramento.
• Councilmember Chalamcherla: Supported seeking federal homelessness grants (up to $2.6 billion) and thanked staff for mentoring.
• Councilmember Rodriguez: Shared findings from a ride-along with Folsom PD; noted homeless camps that could be cleaned; reminded about ice skating rink; suggested a list of vacant city-owned buildings for economic recovery.
• Councilmember Howell: Reported RT board received a Caltrans excellence award; noted increased red-light running and urged enforcement.
• Mayor Kozlowski: Reported on SACOG meeting and legislative advocacy for transportation funding, and acknowledged the difficulty of preparing the State of the City address.

Actions Taken

• Closed session held; no report of action.
• Directed staff to proceed with SB 1383 planning, rate study, and hiring.
• Approved affordable housing resolutions for Sage at Folsom (both options).
• Directed staff to return with a funding plan for Mangeny Place.
• Appointed council representatives to regional commissions.
• Confirmed planning commissioners to Historic District Commission.
• All consent calendar items (minutes, architect contract, design services) were approved without discussion.