the regular meeting of the Fulsome City Council for Tuesday March 25th 2025 with the clerk

please call the roll. Council members Leary, here, Ray Phil, Koslauski, and Dikina.

Here and if you'd all please rise and join me in the Pledge of Allegiance.

Pledge of Allegiance to the part of the United States of America and to the Republic

for which it stands, one nation under God, indivisible with liberty and justice for all.

Okay, do we have any agenda updates, Mr. City Attorney?

Good evening Madam Mayor Leary. There is additional information

transmitted for items one and fifteen until that's a agenda.

The copy has been previously provided to you and they are also available on the table in the back.

Okay, thank you. That takes us to business from the floor.

This is the public's opportunity to address the council and items that are not on the agenda.

We do give each speaker three minutes.

So, do we have any request to speak on items that are not on the agenda?

You have no request to speak this evening under business from the floor.

Okay, then please call our first item.

Okay, your first item this evening is going to be public hearing item number one.

This is resolution number one, one, three, four, one.

This is a resolution declaring results of the Natoma Station Maintenance Assessment District number 25-1

ballot proceeding, approving the final engineers report, confirming the diagram and assessments

in ordering the levying of assessments for the maintenance and servicing of improvements within said district.

Jameson?

I need to read this first.

Okay, so this is the time and place fixed for the public hearing related to the proposed formation of the Natoma Station Maintenance Assessment District number 2025-1

to fund ongoing maintenance, operation and servicing of street trees and other landscaping, street lighting and public art improvements within the district.

I would now ask the municipal landscape services manager to provide the staff report.

Good evening, Mayor and Council, I'm Jameson Larson, senior management analyst for the Parks and Recreation Department.

I will be presenting information on the Natoma Station Landscaping Lighting District and the proposed Natoma Station Assessment District 2025-1.

The original Natoma Station L&L was formed in 1990 to maintain certain assets within the district that provide a benefit to the residents

of that district.

These include landscaping, street lights, certain fences, sound walls, art, open space, many parks and other similar assets.

The rate was established in 1990 at a rate of $91.70 per unit and has not increased since that time.

In that same period of time, costs have increased dramatically.

This is caused the district to run in a deficit for a number of years as expensive have exceeded revenues.

The city held two public meetings to describe the financial situation to residents, one in June of 22 and another in March of 2024.

These meetings were advertised through postcards to all residents as well as yard signs at major entries to the neighborhood.

The public meetings were well attended with approximately 50 residents at each of the meetings.

Staff presented the facts of the deficit and asked for a resident input on how they would like to proceed to address the deficit.

Staff offered four options.

Option one was reduced service to balance the budget.

Option two, provide a vote to increase the assessment to cover the deficit and address certain on scheduled costs.

Option three was all of option two with additional assessments to address deferred tree and irrigation maintenance.

Option two and three plus provide ample budget for long term costs to maintain the art, replace pavers at major entries and replace landscaping it into life.

Support was overwhelming by those in attendance to provide option number four as the assessment to be voted on by the property owners.

Outreach efforts included mailers to all property owners dedicated webpage on the city website.

We did yard signs at all the major and minor entries to the neighborhood that had information on the district.

A QR code that can be scanned to send them to the district website to get additional information as well as the long form website of somebody didn't want to use a QR code to get there.

Additionally, concerned residents had conversations on social media and did door to door outreach in the neighborhood.

And the ballots were sent to property owners on February 6th, meeting the 45 day period for district property owners to consider their proposed assessment.

The ballots will be counted following the public hearing and ballots are weighted by assessment amount as determined by the special benefit received by each property.

The range of assessments for a single family home is between $185.47 and $360.15.

With the average single family assessment at $258.45 annually.

And then that concludes my report. I have the consultant from MBS Finance here.

We're happy to answer any questions.

I do want to note that all ballots must be submitted before the close of the public hearing.

And if any property owners required or replacement ballot, MBS can provide that ballot. Thank you.

Any questions from the council for Jameson or the.

Any questions from council for Jameson or the consultants.

Councilmember Larry.

I just have a couple of questions and the consultant may be presenting this, but there were some tables in the staff report and then the report by the consultant.

I'm showing how far in arrears the district has been since the 2020 to 2021 year up through the 2024 through 25 year.

I'm just wondering if that table will be shown in the presentation.

I don't have a presentation for the screen.

Just a verbal presentation of the information.

However, the staff report is available and it does include those tables that show the actuals for 2021 through 2324 estimate as well as the projected for 2425.

So, yeah, so what I'm looking at in this report was the deficit each year that the district ran into was anywhere from the allow of 45,495 up to a high of 164,0626.

We didn't have the, you know, we didn't have the funds in that district to pay for the full costs.

Here you go.

And so here's the table that you're referencing.

And so yes, the district was not bringing enough revenue to cover the basic maintenance costs.

And so that is the deficit. It was running year over year to provide the basic levels of maintenance and respond to emergencies only we didn't do any beautification projects anything like that that is keeping the power on putting water to the plants and doing basic mo and blow service on the landscaping.

And then so my second question here is about the estimated budget for the 2526 year.

And it looks like this budget covers the potential costs of deferred maintenance and and increasing the services to cover what's needed annually.

And so the total cost of improvements was on the second table title fiscal year 20 25 through 2026 estimated budget.

And that looks like total cost of improvements was 462,066 dollars and 35 cents.

Is that correct that that would cover deferred maintenance.

So essentially this budget builds out some of the deferred maintenance and you'll notice.

Can you put that one up on the screen?

Sorry.

There we go.

So also notice that there are line items the installment costs.

And so that is the maintenance and improvement plan that pays for the long term replacement of assets.

The Natalization District has a lot of fiberglass street light poles.

Those eventually will be a large cost of the district can't absorb in any one year.

And so the maintenance and improvement plan recognizes that over the next 30 years.

There will be replacements that will need to take place and that is setting those funds aside.

So we don't have to replace.

They run from five to $12,000 per street light pole depending if we need new footing with it.

So they're very costly when they hit the district budget.

And so right now.

So I think that the street lights I don't think are in compliance with the latest standards for street lights.

And that they cast the light down.

And is that correct?

That was reading that in another report.

You know that we're coming up on the general plan updates.

So I would say that.

Yeah, according to the general plan, we should probably have some reflectors in there that is.

On a per light basis.

I think you have over 300 street lights in there.

So that could be explored.

However, we do have cone shaped led bulbs that we're utilizing that the majority of the light is projected down.

So we did intentionally use a cone shaped a bulb to direct it down and not have so much spill over.

Okay.

And then.

One of the question that a lot of people have said to me was.

So there be the annual change in the ins.

In the annual assessment every year because it was built in that you could raise the assessment as needed.

I think up to 3% a year.

Yes.

Oh, I'm sorry.

So would that.

Would that raise in the assessment the institute every year or if the district was within its.

That would not be raised.

Is that correct?

Yes.

So the CPI that it references in here is a max level CPI.

It does not mean that we need to utilize that CPI every year.

If we're able to pay for the annual budget plus short and long term costs.

With the existing funds.

There would be no need to use the entire CPI or we can take up.

We can use a portion of the CPI if there's no need to utilize the entire thing we would not.

Okay.

I think that was pretty much it.

I do have one other question.

So if if there is excess.

Money is collected annually that don't need to be used.

So would that go into a fund for an unanticipated needs in the future?

And how would those be identified or relate to the public?

No.

So there is no extra funds.

If we are collecting extra funds.

I'm in if that if the costs for maintenance.

Don't exceed your annual income.

So I would say that the money that isn't used for the annual maintenance.

Goes into that.

M and I plan.

And so if we run into a situation which I don't foresee that the cost of landscape maintenance goes down $20,000.

And now we have $20,000 additional money.

We would then reduce the rate appropriately to.

And so if you have a certain long term projects while doing the regular maintenance.

You cannot collect extra money beyond what is identified within the engineers report.

Thank you.

Excuse me Madam Mayor.

So if I could just add a little bit on to that.

That the goal would be.

I mean if this if this actually passes.

That funds would be used to offset the deficit over a period of years.

So that would make the the fund whole again.

So right now according to the chart where we're at a deficit about 601,000.

And so with the new assessments that they pass.

We would adjust the budget to improve the level of service that's being provided.

But also set aside some funds to pay back over a period of time that deficit.

So that deficit was covered by city funds.

So technically anything that doesn't have a revenue sources back by the general fund.

No general fund money has been expended.

It's held kind of an abayance that this is the special revenue fund of the lighting and landscape district.

And so the law allows us to run a deficit from one year to the next.

But we have to have a plan to get us out of there.

So if we never get it out of the deficit position that ultimately will be a burden on the general fund.

Thank you.

Okay.

The city council will hear from any interested person who desires to address the council on this matter.

So the public hearing is now open.

We do have one request to speak.

If anybody else would like to speak on this matter, I do ask that you fill out a blue card on the back table.

Hand it to Sergeant McGarry.

And the clerk will call you up.

But right now, I think we just have one request to speak.

So only one request to speak so far.

And that is from Sandra Lunsford. Sandra, come on down.

Good evening. Welcome.

You can go this little microphone right here by the.

This one right here.

Thank you.

Thank you for allowing me to speak.

I'm Sandra.

And I have lived in the Thomas station for 28 years.

And during this time, I have watched the vegetation grow and the trees grow and the density on the drainage areas and the green belts become more dense.

And we have continued to pay $7.20 a month for maintenance of this amount of beauty that we enjoy in our neighborhood.

Newer neighborhoods have been installed since and they have lots of new facilities where they have neighborhood associations that privately finance their facility maintenance.

And if we refuse to fund our new LNL maintenance, we can expect neglect.

We can expect to have this at 34 year or 37 year old fees that we started with at the very beginning.

And our green belts and drainage areas will be neglected if we if we don't pay for maintenance.

And they could be more attractive to homeless camps, maybe drug use, and it could decrease our safety of our neighborhood and our home values.

In reality, taxpayers are paid for us to have the beauty we have in our neighborhood.

And that is not sustainable.

If we take control and proactively pay for our own maintenance, we can be control of its sustainability and the quality of our neighborhood.

And we can also have the landscape in keeping our home values competitive on the market and safeguarding our children and grandchildren's safety.

And thank you for listening and I appreciate what you do. Thank you very much for coming out.

Okay. Any other requests to speak on this item?

You have no further request to speak on this item.

Okay. Seeing no one else who wishes to be heard, do any members of the city council have any further questions for the district staff or consultants?

Okay.

Then I would like to remind everyone that all assessment ballots must be received by the city clerk before this public hearing is closed.

Ballots received after the close of this public hearing will not be tabulated.

So if anyone in the audience has a ballot, please submit your ballot now to Jennifer Jimenez or Christine Kelly from the clerk's office.

Stay on, baby, and let folks know if you have a ballot to turn in. Please do so now.

I'll say that.

Okay. This is the final call to submit your assessment ballot.

The public hearing is now closed and assessment ballots received by the city clerk after this time shall not be tabulated.

So now table the matter until the ballots are tabulated. This matter will be resumed once all ballots are counted.

Not yet. No.

Okay. The city council shall now table the matter and continue with the remainder of the agenda while the assessment ballots received prior to the close of the public hearing or tabulated.

The tabulation now take place at the public works large conference room located at 15 at Thomas Street, Fulsen, California.

We don't need a motion to continue doing. Okay.

So I assume most of you are here in the audience for this item. The clerk's office is going to go into a conference room here in City Hall to do all the tabulation.

We don't know how long it will take or hoping it will be done by the end of our meeting when we get through all of our other business.

So you are welcome to stick around and hope that that is the case.

If they are not done tabulating by the time we are through with our business, we will adjourn and we will announce the results. The next meeting.

Okay.

Call the next item, please.

Okay. This is going to take us into our joint meeting portion of tonight's meeting. So we will convene the joint council meeting and public financing authority meeting.

Fulsen ranch a financing authority meeting.

Please call the roll. Yeah. So council members, Larry.

Here. Right, though. Here.

Kauslawski. Here.

In a keynote. Here.

Okay. Your public hearing item tonight under this joint meeting is item number two. This is Folsom Ranch financing authority city of Folsom CFD number 23, which is Folsom Ranch Improvement Area number seven special text revenue bonds series 2025.

And this is the last meeting.

I will move on to the last meeting.

I will move on to the last meeting.

Thank you.

A couple of minutes.

Okay.

Okay.

Okay.

Okay.

Okay.

Hello.

Hello.

Okay.

Okay.

Thank you.

Thank you.

Thank you.

Good evening, Mayor.

Vice Mayor and council members.

I'm going to move on to the council office.

I'm going to move on to the council office.

I'm going to move on to the council office.

I'm going to move on to the council office.

I'm going to move on to the council office.

I'm going to move on to the council office.

I'm going to move on to the council office.

I'm going to move on to the council office.

I'm going to move on to the council office.

I'm going to move on to the council office.

I'm going to move on to the council office.

I'm going to move on to the council office.

I'm going to move on to the council office.

I'm going to move on to the council office.

I'm going to move on to the council office.

I'm going to move on to the council office.

I'm going to move on to the council office.

I'm going to move on to the council office.

I'm going to move on to the council office.

I'm going to move on to the council office.

I'm going to move on to the council office.

I'm going to move on to the council office.

I'm going to move on to the council office.

I'm going to move on to the council office.

And to the council office.

I'm going to move on to the council office

and double mention this,

so we'll be able have Peter to try to

The staff is proposing to issue the series 2025 special tax revenue bonds and an amount

not to exceed $12 million.

The proceeds will be used to finance the acquisition and construction of certain public facilities,

funded debt service reserve account, and to pay certain costs of issuance.

The aggregate assessed appraised value of the property within CFD-23 improvement area

of the seven is about $92 million.

In compliance with the city's CFD policy, the value to lean ratio is 8.1 to 1.

And also in compliance with the city's policy is the projected tax burden per parcel of approximately

1.7% for developed residential property.

By taking these actions tonight, you're approving the form of various required documents

that are listed here on this slide.

You're also authorizing the officers of the city and the Folsom Ranch Financing Authority

to execute any and all documents and to take appropriate actions to prepare to issue

the bonds.

And so with that, staff does recommend the approval of City Council Resolution Number 1133344

and Folsom Ranch Financing Authority Resolution Number 014FRFA.

Thank you.

Any questions from the council for a stay-see?

I have a quick question.

Okay.

How many bonds are there being assessed in the plan area?

Are they individual to each separate development?

Yes, they're individual to each of the improvement areas.

And can you kind of give me a, I'm just curious, a ballpark figure about how many bonds each,

one of those areas has?

They each have about one right now.

But there could be potential for more.

Depending on if the lien has been closed or not, so they could potentially issue additional

up to their limit.

Okay, thank you.

Okay, we will open the public hearing.

Do we have any requests to speak on the item?

You have no requests to speak on the item.

Then we will close the public hearing and I will entertain a motion for resolution number 11344.

So moved.

Second, we have a motion and second.

Please call the roll.

Council members, Larry?

Yes.

Rachel Koslawski.

Yes.

Yes, and I will entertain a resolution, sorry, I keep messing this up.

A motion to approve resolution number 014-Folsom Ranch FA.

So moved.

Second, we have a motion and a second.

Please call the roll.

Council members, Larry?

Yes.

Rachel Koslawski.

Yes.

And Dekina.

Yes, and we will adjourn the joint meeting and reconvene the regular city council meeting.

And please call the next item.

Yes, so that takes us to scheduled presentation item number three.

This is the city manager's fiscal year 2425,

second quarter financial report.

Just as a note, this has continued from March 11.

And hold on one second, see, did you want to read this statement now or at the end?

At the end, please.

Okay, okay, go ahead, Stacy.

Okay, good evening again.

We'll start here with this first slide, presenting the final results of the audit for

fiscal year 2324.

You did receive a copy of this final report at your last meeting.

And then after we go through this slide, we're going to jump right into the second

quarter financial update for fiscal year 2425.

And that's the period of October through December of 2024.

So first, we're going to start here with the fiscal year 2324 audited year in results.

We had reported back in December that we expected the June 30th final figures to

result in an unassigned fund balance of 24.9 million.

And as I mentioned at your last meeting, that's exactly where we ended.

And so you see that in the bottom chart there, the 24.9 million was your ending unassigned fund balance.

The final audited revenues were 119 million.

You see that at the top of the chart there that included about $3 million of

ARPA revenue that was recognized that fiscal year.

And so of course that revenue was not ongoing.

The total expenditures were finalized at $115.6 million.

And the change to the unassigned fund balance was $1.65 million.

Exactly as we had estimated.

And so that gave you a total change to your unassigned fund balance of about $1.98 million.

Which is what we had presented in December.

The fiscal year 2324 budget did include a 1% contingency amount as required by our financial policies.

And so if that isn't used, it rolls into fund balance.

And that's how the city maintains that fund balance as a percentage of expenditures as your

expenditures grow.

We want to be sure that we're staying within that council's approved range of 17 to 20%.

So that contingency did roll and that makes up most of this increase to your unassigned fund balance

this year. So with that activity, your unassigned fund balance was finalized at that 24.9 million.

Which was 21.57% of expenditures.

So now that the audit is complete, per your policy, we are requesting to transfer the

amount of the unassigned fund balance that exceeds that 20% cap.

And you'll see that on your consent calendar tonight.

And that's resolution number 11335.

And this would be the first transfer of the unassigned fund balance to the capital projects fund

since the great recession.

And with that transfer, that would reduce the unassigned fund balance by that $1.9 million.

So now on to our career 2425.

I'll take you through this chart here.

We have revenues on the top line.

On the left hand side, you have your July 1st original adopted budget of 115 million.

You have your approved budget amendments as you're going across to the right of $957,000 so far.

And there is $497,000 of remaining arbitra funds that are being recognized at this point

in the year to match the expenditures.

Then we have your $1.7 million of your budgeted use of fund balance.

The City Council approved this year for a total amended budget for revenue of

$118.5 million.

So based on the data that we have so far, we are projecting revenues to come in slightly

above budget at $121 million.

And we'll go back down to the expenditure line here.

You started with an approved budget on July 1st of $117 million.

And that difference between the approved revenues and the approved expenditures was

that Council's planned use of fund balance of $1.7 million.

We have 5.5 million of approved purchase orders that are held in your assigned

fund balance for expenses that you approved in last year's budget.

And we'll go over those a little bit more on the next slide.

They are carried forward into the next budget.

And the majority of that is for vehicle purchases, large construction projects,

and other contracts.

Those funds are held per our policies from that prior year so that we can pay those bills when

they come due in the current year.

Then you had $957,000 in approved budget amendments that have come to the City Council this year

via resolutions and then the $497,000 of ARPA expenditures.

So your total approved budget right now is $124 million.

We are projecting that by the end of the year expenses, including that one time transfer

of the $1.9 million to the City's capital fund would get you to the total of $129 million

by the end of the fiscal year.

So that's a change to your total fund balance of about $8 million.

But again, you'll recall that 5.5 of that has already been set aside and then you have the

$1.9 million transfer.

So that's the majority of that difference in the change of your fund balance.

As far as budgeted and conferences, just a little extra detail on what that is.

So about $3.8 million of capital purchases that were approved in the last fiscal year,

they're rolled forward because we hadn't received them yet.

This is where large public safety vehicles, large equipment purchases, and some facility

improvements. And then you had approved contracts where the department is in contract with somebody

could be for a three year project.

And so those funds are rolled in order to pay those bills.

And then all other is about $242,000 for that total of $5.5 million that was approved

to roll forward into the next year for conferences.

The approved budget amendments that were on the slide of $957,000 were approved via these

resolutions. I won't read all of them, but it's $74,000 for a grant for police purchases,

$209,000 for MetroCable. We get that revenue. And so then you had appropriated the expenses,

$261,000 for the purchase of technology using COPS grant funds, and then $410,000 for the

participation in the MediCal Intergovernmental Transfer Program that fire participates in.

All of these did come to the City Council already.

So how this all impacts your unassigned fund balance is we start with that beginning balance

of $24.9 million that was the June 30th balance that it's reduced by the $1.9 million

transfer to the capital fund if that's approved tonight. And then after you take into the

consideration the fund balance that you have set aside for expenditures, we have expenditures only

expected to exceed revenues by about $865,000. And that's primarily your approved use of fund

balance this year. You had approved $1.7 million with a little bit of the extra revenue we're

projecting. We feel right now that you'll be at about $864,000 use of fund balance. So that

would bring your unassigned fund balance down to $22.2 million or $17.2% at the end of the fiscal year.

And this is a look at your unassigned fund balance graphically projected here on the far right

hand side at that $22 million mark after the transfer if you do approve that. And as a

percentage of fund balance coming down to that 17%. Now looking at general fund revenue we have

our current budget for fiscal year 25 on the left and then the projections for fiscal year 25 and

I'll go through the major categories here. We've received our first property tax payment and so at

this point we're still projecting property tax to be right at the budgeted amount of $45 million.

For the next line sales tax with the activity that we've seen so far we are projecting it to be

slightly less than budget coming in at about 28.2 million. We did have our quarterly update with

the sales tax consultant. They had given us a projected range for total sales tax of $26.8 million

dollars at the low point up to $29.5 million dollars for an optimistic projection. But based on what

we've seen so far it doesn't look like we will hit that high point of that range and probably not

even our budgeted amount. TOT revenues are projected to come in right at budget. Charges for

services in total are projected to come in at about 15.7 million. That $1.9 million over our

our initial estimates and the primary drivers of this are increases in fire revenues.

Particularly we're seeing this in ambiance fees which I think we went over last time they're

coming in a little higher than they have in prior years and then we also had some OES reimbursements

related to fire. So in total that's coming in about $800,000 higher than budgeted helping to

offset some increased overtime costs in the fire department. And we'll talk a little bit more

about that in the expenditure slides. We also have about $500,000 related to some opioid settlement

payments that are included in this revenue line item. We don't budget for those. They are

restricted in their use so that would come to the city council for an appropriation for use in

the future. As far as other departmental revenues coming in higher than our estimates within this

category we are seeing that in parks and recreation. We estimate them ending the year with about

$350,000 in additional program revenue and so that does help to offset some of the higher level

of expenditures that we are seeing in that department. And then we do also expect to collect fees

and community development sufficient to cover any increased contract costs that we're seeing there.

As we go down the chart here licenses permits and intergovernmental revenues are trending to

finish the year about $1 million over our initial estimates. It's primarily related to some

unbudgeted state grant revenue that we've received throughout the year. This will have offsetting

expenditures expected by the end of the year and it wasn't included in the original budget.

And then we're seeing all other revenue projected to come in about $500,000 over initial

estimates. And this is mostly due to that increased interest revenue. We saw that last year we're

continuing to see fairly high levels of investment interest. However, almost half of this interest is

earned on restricted spiff funds that are combined with the general fund and so they're not

available to be spent on general fund purposes. And then you see that in your restricted fund balance

at the end of the year. So that leaves us with a total projection for general fund revenues of

about $121 million. So just about 2% over our original projections. Now moving on to projected

expenditures for $2425. We've added an extra column here. You have your July 1 adopted budget.

So this is what you see in your budget book. Then in the middle column you have your amended budget,

which was what we went over how you get there with your incumbrances and with the resolutions you've

approved so far. And then we have our projections in that third column. So when we compare fiscal year

25's amended budget to our projection, we're projecting to be about $3 million over budget by the

end of the year or 2.6%. And again, these are just projections. The budget has not been overspent

at this time. So as we go through the categories general government is expected to be pretty much

right at budget. The police department is expected to end the fiscal year at 103.2% of budget or

about $958,000. This is mostly due to salary and benefit increases that we're projecting based on

current negotiations between the labor group and the city and any increases that happen as a result

of that agreement will be over and above what was included in the initial budget. We're also

seen increases in categories such as vehicle maintenance costs on aging vehicles, the cost of

petroleum products, utility bills, increases to contract costs and increased costs for the replacement

of equipment and vehicles. The fire department is expected to end the fiscal year at 102.7% of budget

or about $889,000 over. This is primarily due to overtime costs that is partially offset by salary

savings. They do have a significant amount of vacancies. But this is expected to be over in

total even when it's offset by those vacancy savings. However, this year it is mostly offset by

that increased ambulance revenue and those OES reimbursements that we saw in the revenue slide.

For the community development department, we're projecting to end the year about $600,000

over budget a little less than in recent years, but then we're also seen the revenue increases come

down a bit too. As we talked about in previous presentations due to that unpredictability of

their operations, we don't budget for either of those line items, but the expectation is that as

the contract cost go up, the revenue income also goes up to cover that.

Parks and Recreation is projected in the fiscal year at about 104% of budget or $900,000

over based on what we've seen in the first half of the year. What's causing this budget over

bridge is what we've been seeing over the past few years, the cost of utilities, petroleum,

credit card service fees, supply costs, labor costs, the maintenance of equipment, buildings,

and vehicles, everything's increasing. Just a reminder that Parks and Recreation does include

the facilities division, also park maintenance, in addition to the recreation programs and it's

all included in this same line item. So when there's an unexpected maintenance cost,

something they have to do to one of our facilities that it is covered in this budget line item here.

And so the increases that we're seeing is spread across most of their divisions,

it's not just concentrated in one area, but it is partially offset by that $350,000 and projected

increased program revenue that was mentioned in the revenue slide.

Your Risk Management Internal Service Fund, this is a six year chart here now showing the

unrestricted in that position, which is really what I wanted to show here, going from about

$9 million in fiscal year 1920 down to a projected $3.9 million as we finish out fiscal year 2425.

We are continuing to see expenditures exceeding revenues. We do try to estimate what those costs

will be, but then we get the bills for the live insurance, the medical insurance, as we're already

into the fiscal year. And so we've seen those grow faster than what we had anticipated.

And this chart shows here some of those major expense categories. We have active employee

health covered by this fund, retiree health, workers compensation and liability insurance,

and really it's been the liability insurance that has been growing at the fastest rate,

and what has continued to have that fund use up some of their fund balance.

Could you go back just one slide for a second for me?

So we're projecting to actually end up this year for the first time.

We hope so. We have been getting more and more filed in on that liability insurance increase.

So we did budget for a larger increase hoping that we would be able to cover it this year.

Okay. Positive news.

Positive news. Well, just means we put enough in there that doesn't mean it went down.

Better than previous years. We'll go with that.

Yes. And then just the last slide here, a summary on your water waste water and solid waste funds.

They're projected to end the year with operating revenues exceeding their operating expenses.

And the working capital balances and water and waste water are expected to decrease slightly

after their capital expenses are included. And solid waste is projected to increase slightly.

And that's the report I have for you tonight. I'm happy to answer any questions.

Any questions for Stacy? Yes.

Where's my Rathole? When do we get our second property tax payment?

We get that at the end of the fiscal year. So we're doing a true up after June 30th.

So we're doing it after June 30th. So right now with our first property tax payment,

how far ahead are we in property tax? The first property tax payment is an estimate. They just

they give us an amount, right? And so we do some analysis on it based on what that what percent of

our total each year this first payment has been. So let's just say in general, it averages that

the first payment is about 40% of our total. So when I look at it now, we're looking, it's looking

right there where it has been with that average. So about 40% of the total. So we feel pretty comfortable

that based on how that usually turns out, we'll meet that property tax number.

Okay. Because the number to me looked much higher than what was in the budget for property tax

in particular. Sales tax, it was like, oh, we're going to carry this loss over. And I'm just

curious, we have a lot of deferred maintenance in the city, right? So I understand being conservative

in our budgeting. But if we're going to end up a couple million dollars over in property tax,

I'd rather know before the end of the fiscal year versus after the end of the fiscal year,

because that just puts off deferred maintenance for another six months of things. So is there any?

Right now, there's no indication that it would be higher. What does happen at the end of the

year is that we get supplemental property tax. And so that's, we can't calculate that. And that

doesn't come in based on this, this first payment. It's, it's whatever happens during the year,

based on the, the homes that are sold. And so they don't provide an indication of that. And so

when you do see property tax coming in above budget, it's typically because of that figure. And we

don't get that figure until the end of the year. Thank you. Madame Mayor May, I appreciate

Council Member Ray Thales comments about the property taxes and the timing of that.

One of the things that I would recommend that I feel has been really helpful in other jurisdictions

where I've been able to work is we delay. We prepare a plan based on the money we've actually

received because there are risks. If we pre plan before we actually receive it. And one of the best

ways, in my opinion, to do that is through kind of a multi-pronged budget review process. And we'll

talk about this a little later, but how that would work is we adopt our preliminary budget in the

May, June period. Because at that point, we don't know what our true ending funding balances are.

Right? So the preliminary budget is our best guess of where we're going to be going into the future.

But then in August, September timeframe, we've now closed out all the books. We actually have

the property tax revenue in hand. And we can see if our projected ending balance actually ended up

where we thought it would be. And then we adopt a final budget at that point where you know exactly

where you stand. And then you can more accurately allocate things for for maintenance. That what I mean,

and that's something that I mean, we have a huge amount of things I've been in budget meetings for

the last couple weeks. You know, when you look at the library roof, the library HVAC, our trails,

our park structures, and I'm just getting started. And this is not new to anyone on this

Dias or probably in the audience. But it's something that's really important to me is it is much

better for us to finish the year with the ability to assign those with real numbers as opposed to

a hope that that will actually end there. And so I just know that with a little bit of delay

that we will actually have the numbers to work through that. And that way it becomes more of a

community process, a council directed process. And then the third prong of that is we come back

to the community in February. And we've actually started to receive our first elements of the

revenue streams for that year. And so we can more accurately project where we're going at the end

where we will be at June. And so we can adopt a mid-year budget that can do some of the things that

you mentioned because we actually have money in the bank. Like right now, we don't have anything

in the capital fund unless we, the council approves the 1.9 in a later item. And so I would encourage

us to not delay going forward that we continue to do that even if it's in small bits because

bad news does not get better with time. And so we're going to have to address that.

But I would also just like to take Stacey Tumani our finance director, her team for putting

together this report. Our goal is to try to be able to connect the dots like where did we start

and how did we get to this point. And I think she was able to highlight that very well.

And Madam Mayor, I do have a statement to read from Councillor Robba. Is this appropriate time?

Sure. Yeah. Okay. So, Councilmember Roba, share this with me and ask that I read this. It says,

first I want to thank the city manager for postponing this discussion from two weeks ago to find out

many of the answers to the questions I had. I appreciate the thoughtfulness in regard to being

transparent and proactive about delivering the information needed to the council so that we can

make decisions based on true numbers. I didn't ask her to say that first for the record.

My follow-up question is based off of the budget we passed for 24, 25 versus the amended and

projected budget numbers here in the quarter two report. The expenses we passed for our general

fund were over 117 million. However, in the packet it shows our amended budget at 124 million

without explanations as to where or how we got to the 124 million from 117 million. Over 7 million

difference without a transparent accounting as to why. What is explained in the updated packet is

how we got from the unexplained 124 million amended budget to a projected year end expense of 129 million.

While the explanation of the 5 million additional expenses is appreciated, it's only part of the

story. To give more time and space for you to find out these answers I request and would like future

explanation of where and how we go from 117 million budget to 124 million. In the future as well as

I would like any amendments to the budget that was previously passed to come to council for a transparent

process in accounting of where our taxpayer funds are going. I believe this is a process the

city manager will support and I look forward to supporting his efforts in creating more trust

and transparency not just with council but with our community as a whole in doing so. I'm deeply

grateful and excited about being given the opportunity to get answers to how we are investing our

taxpayer dollars. I really appreciate the comments that I've received in the short period of time

that I've been with the city from the entire council and also from council member Roarbott to ask

these questions. I think there are really really important questions and it's imperative that we

have the answers and we can explain articulately to our constituents and I think Mr. Mone did that

tonight and really really appreciate your effort in doing that. And so just to highlight I mean I

call it connect the dots like how did we get here and so we started with 117 million as the budget

and this is something that we will present kind of changes. One of the things that makes it

harder to track is when we have capital expenditures that are budgeted in our operating accounts

that carry over from one year to the next. So if you remember there was a large number of

incumbrances so basically it's revenue from the previous year that's carried over so we can only

realize the revenue in this year that we receive in this year but we can spend more than we receive

this year. So the funds were accounted for but it's kind of convoluted so what we will be

recommending in future budget cycles is that if there's money set aside for fire engine purchases

or ambulance or patrol cars that if it's not going to spend immediately that it's put into a

vehicle replacement account or a fire apparatus account so that it doesn't affect the operation so

you can see a true trend line of what our operational costs are. I mean example I would give is

if a household had a major expense you set up your budget for the month and this is your

expenditure plan and this is how much money you expect to bring in but you have a savings account

and if you have a major HVAC repair you're really not going to penalize yourself in your operations

in your date because you're prepared to pay for the HVAC and so in many senses our goal is to get

to that point where when we have the need to repair HVAC systems playgrounds and other things that

is not a strain on our operating budgets it's more of a streamline. We have a ways to go to get to that

point but I know if we don't have it as a goal if we don't put a strategy in place we will never get

there and so I really think this is a really good start to communicate we look forward to future

dialogue from the community members and the council because it's your budget I mean it's your

city and we want to help you get to where you want to go and that's all I have. Thank you.

Council Member Kuznowski did you have any questions or comments?

Non thank you. Council Member Leary? No. I got one more sorry. So I'm going to try to summarize it

a little bit just because I want to kind of look at big picture because if we don't get actual

property tax numbers until after our fiscal year is already over it kind of to me negates the idea

of even doing quarterly reports right like I use I use quarterly reports in a business or monthly

reports even to be able to make better decisions on how we're running the business. In this case

we can't even guess our largest revenue source until after our budget is already closed.

Which makes it really really tough right that's not it's not anything to do with your department or

how we're on the city that's that's how we were receiving our revenues. So we're doing these quarterly

reports we're putting together our best guess for projections but our largest revenue source we

literally don't get the data until after the year is closed. So we really can't make too many budget

tweaks along the way so that's I just want to put that out there that that's that's tough for me

because that's what we what I would look at using these first quarter second quarter I know we

we go first quarter we have no revenue data at all right second quarter we're at the end of March

right we're at the end of the third quarter now processing our second quarter results and we

still don't have any data which we're not going to get until after the end of the fourth quarter

and then we're going to be able to make some decisions in like September which is the budget

year's already done and over right so that's that's really tough saying all that putting that all

out there we had originally expected and approved 1.7 million dollar deficit this year right your

projection right now is 800 thousand dollar deficit so we have about 900 thousand dollars of

of money extra in your best technical projection that we could spend on deferred maintenance at

this point is what you're saying comfortably right with your technical projections I don't want to

end up with us in a hole but we're you know I'm just trying to do to do my best of using the data we

have to manage the city the best way possible and I'm relying on your technical expertise to tell me

hey there's an extra 900 grant is that am I hearing that correctly if the expenditures trend as we've

estimated then yes that would be true perfect if those go higher than what's estimated then that

would eat into what you're referring to so now I'll turn to you city manager we have extra 900

thousand dollars we have a lot of deferred maintenance I'd love to see that money be spent sooner

rather than later so it doesn't turn into you know four million dollars because we've put off that

maintenance yeah I think that's an excellent point what I would suggest is if the council

approves the transfer of a hundred or a 1.9 million that we would be moving forward very quickly

to do some items with those funds and I would recommend that we revisit additional capital expenditures

when we adopt a final budget in August and September because it will take us time just to go through

the 1.9 so we're really not losing anything to get started with with that so I think we'll essentially

accomplish the goal that you're suggesting by waiting because then we have a true then we can come

to you with basically a hundred percent confidence that we close the checkbook and this is the

ending fund balance for that checkbook at that time and then we have an idea and I just have found

in my experience doing this for for the last two decades that we it's just much better if we wait

just a little longer to finalize it and then it becomes regular it's almost like when you start a job

you don't get paid for the first you know two weeks or a month and it kind of stinks but once you

get you actually have it and so I much rather build a budget off of what we have as opposed to what

we hope because I've seen crazy things happen and but I mean I I can share with you that our team's

goal is is to address these deferred maintenance as fast as we possibly can yeah I'm just urging us not

we've been cautious and I think your team it cautious and conservative is the right approach as far

as the finance team goes but you're very cautious and conservative team which has managed to step up

our fund balance is saying hey we got a little extra money so let's not let's not air on the

side of caution too much when we're experts are telling us we've got more money. Yeah so we also

have to be careful and look even further ahead with the growth areas in south of 50

we are generating higher property tax revenues but we also know that part of that 900,000 that we

think we have will need to fund another fire station staffing so although we have capital for the

fire station we're going to have to eventually hire nine additional firefighters to staff that at

two million dollars of new annual revenue so it's we're going to have to follow that balance of

deferred maintenance have to have items we we have to find a way but also accommodating our new

residents in the newer areas with that new sales tax or property tax revenue so I totally agree with

everything if I think as we continue to track the numbers and show the data and the trends it'll

empower the council and the community to make really good good decisions. Okay thank you thank you

Stacy. Okay that takes us to our consent calendar I want to pull item seven we've had a request to

pull item eight and nine is there anything else that anybody wants to pull. If not then I'll

entertain a motion for four five six and ten through thirteen. Madam Mayor I'll move items four five six

ten eleven twelve and thirteen for approval. Second. We have a motion in a second please call the

roll. Council members Larry yes Raithl Koslovsky and Akino. Yes. Okay item number seven from your

consent calendar's resolution number one one three three five this is the resolution directing the

finance director to make a transfer from the general fund to the capital projects fund for the

amount in excess of the general fund reserve this also is continued from March eleven. Okay I asked

to pull this mostly for the benefit of our two newer council members and our new city manager

and this kind of dovetails with the discussion that we just had because I am in full agreement with

everything you said about the you know capital projects that we have and the need for

getting started on some of those but I would like Stacy to explain this a little bit because our

unassigned fund balance is really inflated because during the COVID pandemic we took money from

the risk management fund so maybe you could start by explaining what the risk management fund is

how it's used and when we took money and why we took money and how much money we took

because I think we do need to have this discussion just to make sure that we want to put that

full 1.9 million into the capital fund rather than repaying some of the money to the risk management

fund sure so the risk management fund is an internal services fund which means that the funds that

have employees the three enterprise funds plus the general fund pay their share into the risk

management fund to pay for employee benefits the medical the liability insurance workers comp

and retiree health as well and so during the COVID downturn it was decided that we brought forward

a budget that would reduce the burden on the general fund and on the enterprise funds because it

had to be equitable and not transfer in the full amount that was needed in order to pay the annual

bills in the risk management fund so we did that for two years to save money in the general fund

and that ended up being about 2.9 million dollars savings to the general fund over those two years

which meant we had revenues short in the risk management fund and expenditures were higher than that

each of those two years that we did it and so that used the reserve that was in the risk management

fund and that was part of what has taken it down from nine million dollars to the 3.9 that

we're projecting at the end of this fiscal year and so it was a temporary measure and we did bring

an item back to the city council back in January of 2023 recommending that we replenish those funds

because they are important to have in any year we could have a big swing in medical costs and we've

seen it in the liability we could see it in workers comp and if we don't have that reserve available

we will very quickly go through whatever we have and then the general fund will be on the hook to pay

for it so when she brought it back originally it was a three-two vote and I just wanted to bring

this forward because I think we do need to consider you know should we pay back some of that money

to the risk management fund and put not put all 1.9 million into capital yes that's any management.

Madam Mayor members the council if I could just add I think it's a really good point to have a

discussion and I would make this suggestion just to the know to the circumstance that we have

items of kind of deferred maintenance that we need to jump on and hurry and so my recommendation to

the council would be that we have this conversation that we move this forward with the 1.9 million

transfer to the capital fund but then some of the funds that we have that we will know exactly in

August September that are really there we can transfer those or have that considered at that time

you know so I just think that the idea is excellent I just wonder if maybe

moving forward with capital so we can get something done and in the works now and then not ignore

this reality because this is not going away so we have to make sure that we keep our eye on the

ball that do we have adequate funds to cover our risk management needs so with premiums going up

as rapidly I mean and it's not just us it's across the board for homeowners insurance and everything

is just going up and so if we if we are not careful we can wipe it out and then it has tremendous

impacts on the general fund so I think is wise to post that question I just wonder with the

kind of segmented budget process that will follow that maybe August September maybe the best

opportunity to discuss that okay and I'm fine with that I just wanted our new council

numbers to be aware that it the unassigned fund balance isn't inflated for that reason

so I think it's I think it's a great discussion to have for sure I'm supportive of having that

discussion as part of the overall budget process and I think $3 million is still a cushion that is

there that provides us some comfort in the swings it's not as much as $9 million worth of comfort but

it is significant it sounds like we only use 2.2 million to help offset that over two years before

is that correct correct over two years over two years so 1.1 million a year so that would give us

some some cushion having three million dollars in there so that's why I'm uncomfortable with that

so with that okay is that okay to move resolution item number seven I just want to add one thing

I appreciate you pulling that because I had that circle to pull as well so I really appreciate having

the discussion and more details so we can understand what we're looking forward down the line as well

so thank you would you like to second a motion yes okay we have a motion that's in a second

call the roll council members Larry yes Raithel yes Kuzlowski yes and a keynote yes

okay item number eight was also pulled from the consent calendar this is a resolution number

11339 authorizing the city manager to exceed a contract with SNS fence company for the replacement

of the existing rhod iron fence excuse me at the Nathoma sluice digging site and use of general

fund contingency budget and as a reminder you do have one request from the public to speak on

this item as well okay I'm with the city manager take this one to begin with I think yes

there's a little presentation if I could just have that so the item before you is to consider

authorizing the city manager to execute a contract to install fencing at the sluice digging site

and I got you oh you got it okay cool and so so I think this highlights kind of the importance to have

some discussion related these type of things I'm new and it wasn't necessarily familiar with the

history of the site and appreciate the our staff kind of given us the background and so this

comes from a place of trying to make things better right I mean this site if you look at

let's see okay yeah there it is so this is the sluice digging site and it's behind the movie

theater in the Larksburg hotel and it has it's fenced but the fence has been damaged over the years

and so I really appreciate a conversation I had with council member Raethel who basically

opposed the question man is this the highest and best use of this funds when we have so many

deferred maintenance items to replace and so because of that we started asking more questions we

met together with our executive management team and consulted with our city attorney about our

one of the main reasons for this is how can we reduce liability and so one concern that came

up as if we fence this you know we periodically have fires in that and our fire chief said you know

I have some concerns with the fence because what if we have a fire in there one of the things I

know our fire folks are good at is they can get into pretty much anything and they're not going to

have a nice seam cut gate they're just going to get in and take care of it so that kind of post

the question will do we really want to invest in this when we may have to get in there anyway and so

although this on the agenda asking for approval staff is basically asking the council to just put

this aside that will will not move forward with this and that those funds that we're going to be

spend with this could be allocated for other capital improvements that may be a higher and better

use for the community at large okay any questions from the council before we'd call our one public

comment okay go ahead okay James tedford if you'd like to come down and address the council

welcome my comment has to deal with number seven and number eight if I can I think you're eight and nine

eight nine just just be gone eight number eight right now yeah it's similar okay number nine so

my my comment was on the the waiver of bid format that was you know requested for this project but

it was not included in the as an attachment to the presentation that going before you so a lot of

my comments have to do with questions that come up you know the necessity for waiving the standard

you know bid processes who approved it what level of city government so and you know without

that attachment in the presentation you know some of my questions may have been moved begin with

so I don't know if it's city policy that is not included or if there's a reason you know there's

proprietary information or something like that you know that prevents it from being included

you know if that's the case you know let's have you know synopsis so what we can see that what

the justification was for you know waiving the standard procurement process for this city

so I mean some of the questions would have been you know is it really an emergency that you know

necessitated you know eliminating the you know the standard bid process you know how do we maintain

if it is an emergency how do we maintain the competition as best we can you know the fence

company there was only one proposal that was submitted you know why was it this particular company

have they done good work in the past I mean none of that is presented so that you know we can't

make a determination as a public as to you know are we you know following the best practice here

with contracting so and that's kind of similar to number eight as well so I would ask that we look at

you know including that documentation with you know the city council agenda

good feedback we appreciate you paying attention all right thank you okay any other questions or

comments so if if that's the have we have we had a discussion anytime recently about

the preservation of that particular set of artifacts we have not it is in the park's master plan

but we have not to my recollection had a discussion about that perhaps when when and if this comes

back we can address you know because part of the reason that there's a fence there at all is because

there's some value to some structures that are there let's call it structures and the way that

they've been preserved to this point has been to try and keep people away from them but there may be

other methods that would actually preserve them better for the long haul that might actually

miss negate the need for a fence yeah potential good boy yeah yeah I have a long history with the

site I think the very first time you and I ever talked it was about this and I I think we should have

that discussion as you suggested part of the reason I didn't you know question this fences I didn't

see that as an excessive cost but I'm I also think maybe we ought to take a look at at least

repairing some of the parts of that fence that have been broken it can be an attractive nuisance and

I don't know how we want to go forward with having more discussion about this and maybe

letting our new city manager know a little bit more about it and find out what was included

in the general plan when this was first preserved it was an effort that began back in the 80s and 90s

when it was set aside as a site that would deserve some historical preservation and interpretation

funding for that is difficult and so I think we should have some more discussion I'm just trying

to identify who I may want to have that with but maybe even I can have a discussion yeah if I may

I mean I think this highlights a point that we'll have conversations going forward that clearly I

think this deserves further conversation but one of the things that you know we as a community

will have to determine is what are our priorities and where does this fit into that and I think this

is one that we will continue to have you know thoughts how can we do better because we're not going

to ignore it but in some ways I don't think we should you know just with the information I have been

gaining over the last two weeks to see what many many other pieces of infrastructure that the city

has that needs attention if we were to rate those where would this fall on the list not that we

don't do anything but it may not be something that we're rushing to find an ultimate solution but

I think as we steadily attack our list that this will ultimately be addressed so that we can make

you know any site and every site and in full some better than it is today yeah no I totally agree

and I agree with a lot having to go through the full replacement and repair I just so we can just

move on to the next item and just let's do nothing is that I could just make a quick comment before

we move on oh so I just wanted to take a moment and thank our city manager and thank the staff

for being open to this discussion I was kicked off on a Friday afternoon everybody headed into

the weekend and everybody hopped on it and worked on it and city manager went out and checked out

the site and staff was open to really you know doing a little soul searching and saying is this

ties to best use so I just want to say I appreciate that work and I think we've come to the right

conclusion tonight and there may be another hundred and twenty three thousand dollars available for

Castle Park or some other great high priority project that is used a lot more by our residents so

Madam Mayor a very good question unless the council would like to push this item out to a future

meeting council should take action on the resolution you can give the thumbs up with thumbs down but

there should be a vote on this resolution so staff would recommend that the council reject the

resolution okay I'll move that we reject the resident okay we've got a lot of motions in seconds

to me to do whatever you'd like please call the roll council members leery yes

ray fill yes yes yes and a keynote yes okay item number nine was there a council member who wanted

to talk on the site and where mr. Tedford was it you know I think it was just mr. Tedford yeah

did you want to come and repeat your comments or was it the same comments as item number eight okay

okay thank you sir I miss we don't need a presentation so so I actually you know our parks and

recreation director Kelligan's offices here and so if you wouldn't mind talking a little bit about

the reasons for you know the gentleman who spoke about this I mean this in particular I think

there's some specialty reasons why we had to go with the resources that we did

good afternoon mayor and I would call up a chaed gunter he's our aquatic supervisor who knows a

lot of details about this equipment and he's prepared to share some information

good evening chat good evening madamator and council members my name is chat gunter on the

recreation supervisor for the aquatic center I've been there since 2001 we've had these filters

at the facility since 2001 when I called down to EPD in bany california asked them the

typical life expectancy of these filters they said it about 20 years so we've managed to get about

25 out of them which is a really good thing for trying to be efficient in our cost savings

the question about being sole sourced is EPD is the vendor throughout of bany california

nor systems which is KSI which is on your report is the exclusive provider of these filters in

california so that's the only reason that's reason we can all go through them they're the only

so that's our that's our plan there um nor has also been a provider of services for us for

the last 25 years as well so they're very knowledgeable of our facility okay so we feel very

comfortable going moving forward thank you very much and if I could just add related to this

could you describe the plan for the installation of the the filters I think the main reason to order

them now is so that we have them on hand in case they do fail which minimizes the amount of

downtime of the pull itself would you mind coming yeah that is correct we um we started researching

this and found out that it's about a four month lead time to get them um we also want to minimize

our downtime in regards to providing services to communities so the plan is is the is to get the

money I guess the proper term being covered to move forward to go ahead and purchase them and then

have them ready to go over the holidays so we minimize loss of revenue and impact to communities

thank you very much any other questions for Chad otherwise we'll entertain a motion

I'll move approval of resolution 11340 pk 8 number nine all right we have a motion in a second please

call the roll council members leary yes rathal yes chaslovsky yes and a quino yes all right this might

be one of those carried over and conferences to next year I hope not all if it takes four months

it'll be well that's true I mean I'm talking about the next session but you're right all right so

next step is new business item number 14 this is resolution number one one three four six

approving revisions to the repayment terms of an afford approved affordable housing loan in the

amount of 2.7 million from the city's housing trust fund to Pacific West communities for the

construction of 52 affordable housing units at the Harrington Grove multi-family affordable housing

development good evening Stephanie good evening let's see if I can figure this out

there we go I'm getting it

okay

all right I can send it for you thank good evening madam mayor vice mayor council members

Stephanie Henry with the community development department so this next item before you this

evening is a request for approval of revised loan terms for a previously approved affordable

housing loan as you may recall the Harrington Grove project is an affordable housing project

that is to be located on the west side of Harrington Way the project also will have one

manager unit and 51 affordable low income very low income and extremely low income units to

house are growing number of residents in the city of Folsom the project is also located next

to a number of amenities including the city's Folsom bike trails so in July of 2024 the city council

approved an affordable housing loan in the amount of 2.7 million dollars for that project

later that year in November of 2024 the planning commission approved the project

with a design review approval and density bonus and then in December of last year the project received

a private activity bond allocation as indicated in the staff report due to the high demand for

the state tax credits that were expected during the August 2024 funding round the developer made

a strategic decision and decided to exclude those state tax credits from its application in order

to increase their chance of securing the Sid Lat tax exempt bond allocation which paid off because

they were one of the few just one of the few developers in our region that actually received funding

during that funding round and the other I think there was two projects that received the approval

for the funding and both of them did not include the state tax credits.

However this resulted in a funding gap since the developer was planning on utilizing

four million dollars of state tax credits for the project. So in order to address

this funding gap and instead of asking the city for additional funding the developer is

proposing to partner with private investors. However this solution comes with condition that

the private investors are requiring repayment of 75% of the residual cash flow

for the project and in order to meet the investors requirements the city is being asked to consider

revisions to our loan repayment terms that would reduce the repayment obligation on the city's

loan from 50% to 25% of the residual cash flows.

A city staff and the city's affordable housing loan consultant evaluated the developer's request

and determined that it was a reasonable request and did not pose a viability risk.

In addition in looking at that request the consultant also

recommended that the city strengthen our loan terms and so they actually

recommended updates to our loan terms regarding final disbursement process,

cost savings provisions and also residual reserves.

The financial impact to the city if we accept this request would be a deferred

deferment or a delay in the repayment of the $2.7 million loan balance and the accrued interest

but it will not have no impact on the city's general fund. So given that increasing competitive nature

of securing the SIDLAC tax exempt bond allocations and the relatively small request of 2.7 million

from the city's $22 million funds of housing balance currently available.

Staff is supporting the revised repayment loan terms and is recommending the city council

approval. Okay thank you any questions for staff for me.

Okay then we will entertain a motion.

Do we have any public comment? No.

I will move item number 14.

Second.

We have motion in a second please call the roll.

Council members Larry. Yes.

Ray Phil. Yes.

Kuzlowski. Yes.

Indicino. Yes.

Okay your last discussion item this evening is new business item number 15.

This is the 2024 general plan and housing element annual progress report.

Mayor Cino members of the city council, Desmond Parenthood and planning manager in the community development

department. I'm here tonight before you to talk about the general plan as well as the housing

element annual progress report.

Okay.

That one.

All right.

Oh just to use that one.

Okay.

So just to give you a little oh yeah okay it's like where did it go.

So just to give you a little background the purpose of the general plan and the housing

element annual report is really to keep the city council as well as the public informed on how

we're doing in terms of implementing the goals policies and programs of the general plan.

It also reports on the progress in implementing those housing programs as well which are key

to our housing element implementation and it maintains our eligibility and this is probably one

of the most important things for state funding. Again because we've been doing this on a regular

basis and we've submitted it on time and and complete it's allowed us to be competitive and

eligible for state grant funds and we've gotten state grant funds as a result of the fact that we

are in good standing on this. So in terms of the submission process each year we bring these forward

to you for review and acceptance so that we can then send them on to the office the governor's

office of planning and research as well as the housing and community development department where

we're required to submit it each year by April 1st. So over the years the state has had an

increasing influence on kind of what goes into the general plan and and how state laws affect

actual zoning as well as development projects. As you know there's been an increasing focus on climate

resilience, open space access and housing development. Going back quite a way is back to 2006 AB 32

really zeroed in on the the issue of climate change and a focus on reducing greenhouse gas emissions.

Then following that with SB 379 in 2015 it mandated climate adaptation and resiliency strategies

which then meant that we had to update our safety element to include new programs focused on wild

fires, heat and smoke and things like the urban heat island effect. So that was adopted and adopted

along with our housing element back in 2021. There are now new mandates that have come down from the

state just signed in a law late last year that require us to update our open space element by 2026

to focus on equitable access to open space habitat connectivity and so forth.

Where the where the legislature is really focused and there's more emphasis on reporting in the

general plan and the housing element annual port is on the issue of housing. Since 2017 there's been

lots of legislation each year trying to address the housing crisis here in California.

In particular one of the most one of the most prominent bills was SB 330 that was signed into law

in 2019 and it limits local discretion because some jurisdictions have used things like design

review or the entitlement process to hold up stall or stop affordable housing projects.

So it limits local discretion and public here on the number of public hearings on projects.

It also expedites the the permitting process and it requires that you can no longer use subjective

standards. You have to use objective development and design standards when reviewing projects.

The the other thing that's really important and we'll talk a little bit more about this in the

housing element section is the state's housing element mandates. Again every jurisdiction has to

meet its share of its region's housing need allocation. What's it anticipated in terms of the need

for housing units and growth over that that eight year period with the housing element.

So while jurisdictions don't build housing we do a properly zone and identify sites that are

suitable for housing development and if we have sites that are envisioned and deemed suitable

in our housing element for housing it's affordable to lower income households. If those get developed

with luxury products like luxury apartments we can run into a situation if we don't have enough

properly zone land but we're in what's called a no net loss situation and that can have fairly

serious ramifications. What that means is that we either have six months to find other suitable

sites or we have extra land that we could use to address that need. If we don't we can be deemed

not in compliance with state housing law and then open to litigation and possibly also lose out on

state funding. One of the other critical things that they've the states focused on is also reducing

barriers to the production of housing. So diving in a little bit more to the general plan

and the general plan annual port in terms of what our general plan is it was adopted in 2018.

It really is kind of the overall guide for existing and new development in this city and really

is our long term plan about how we want to grow and develop over time and what's really kind of

important to us. There's a vision goals policies as well as implementation programs. Now our general

plan was updated in 2021 when we had to adopt our housing element. Again and I'll talk about a

little bit more about this but the housing elements on a slightly different cycle than the rest of

the elements in the general plan because of the fact that we've got a housing crisis in California.

In 2024 we again adopted amended the general plan. Again that was specifically

meet some of the implementation programs set out in the general fund. I mean in the general plan.

Really the general plan is our long term guide over about 20 you know 20 plus years for growth in

the city. As I mentioned it includes several on state mandated elements there's seven of them

land use circulation housing open space noise and safety. There are additional elements that you

can include that are optional like economic development which we've done here and then the

housing element is updated on an eight year cycle rather than the 20 years that's typical with the

the rest of the general plan. In our general plan we've got 84 implementation programs. 39 of

them have specific due dates when we're supposed to complete that by 38 are ongoing in nature and

then four we have to kind of revisit every year and we made substantial progress on 22 of those

items this past year. So highlighting some of the the the key accomplishments

with in our general plan over the past year in the public works department working with community

development they developed these around about prioritization policies as well as development

standards for those. The whole focus was to keep traffic moving but do so in a way that

improve the safety for vehicles pedestrians and cyclists. So there were 13 intersections

evaluated and the council ultimately decided to prioritize nine of those locations for for

further analysis. And again this is looking at the use of of traffic circles as opposed or round

about I should say as opposed to signalized intersection where the traffic stops backs up

rather than continuing to keep flowing. The other thing that was really important down in the

full-sum ranch area south of highway 50 is the opening of fire station 34 by the fire department.

This 12,000 square foot facility has not only personnel but equipment to serve to address the

needs down in the in the full-sum plan area and full-sum ranch and it also has space available

for the police department as well so that you've got the combination of both safety services

down there to serve the community. This is really important as in terms of addressing

the different priorities that the city has with regard to to fire control and safety as well as

making sure that we have the facilities where our residents are. Parks and Recreation Department also

celebrated several milestones last year with the opening of Prospector Park in December 2024

that hosts a variety of amenities it's located again in full-sum ranch next to Manjini Ranch

Elementary has several amenities like zip lines children's play area and sports fields and

so forth. I've been further north in the historic district the Parks and Recreation Department

of the city celebrated the installation of the first art piece which is the Johnny Cash Pick number

at the entry to the Johnny Cash Trail. Again last year and last year's budget the council

approved the creation of the homeless outreach team or hot team and they handled over 700 calls

for service and they connected individuals with services in the community to try and get

you know from being unhoused to in a more stable situation and then they also identified and

cleaned up a number of campsites as you can see in the and the photo here again these affect

many of our the open space areas near our neighborhoods. Desmond can I ask you a quick question on

that that's an old number right and we've abated much more that's at the end of last year or

the end of last year. Okay perfect because we don't have 30 other illegal campsites that are still

out there at the time of this presentation. She's willing to make that perfectly clear that we

have not left those 30 there. In terms of our environmental and water resources department there

are a number of key water resource reliability projects first and foremost was the the Fulsum

Water Vision project which is wrapping up that looked at you know a 50 year identifying if it

kind of sources resources for a 50 year water supply there are a number of key stakeholder meetings

and based on community input the department developed a water as developing a water supply

portfolio. Again there were a number of in addition to that there are a number of actual

facility upgrades particularly to the water treatment plant regarding the the backwash and

recycled systems as well and modernized and improved that. In the community development department

there was the approval of not just one but two vision plans one related to the river district

a vision plan and the other related to the central business district. Again this was to try and

improve access to the waterfront and envision the kinds of amenities and kind of improvements

that the community would like to see over time in those areas it also looked at ideas for the

corp yard when the corp yard eventually relocates. In the central business district again the focus

was on enhancing that area supporting existing businesses attracting additional investment and

bringing housing to help provide a customer base for that area and then again creating a safe

and walkable street network. As I mentioned earlier in August of 2024 the council approved amendments

to the to the general plan and the Folsom Plan area specific plan. This was directly a result

of the housing element implementation to make sure that we had an adequate supply of sites

for housing throughout the city. We were closely with the landowners and the developers down in

the Folsom Plan area rezoned a couple sites and increased some of the densities there as well as

along the east bidwell corridor and near our glenn and iron point light rail stations to put people

closer to jobs and services so there will be less reliance on vehicles. Getting into more detail

on our housing element again this is our regional housing needs allocation number that you can see

here again 6363 this is a fairly aggressive target most jurisdictions in this in the eighth cycle

I've got very aggressive on targets given the severity of the housing crisis and over half of

that is associated with lower income households so again the city's obligation here is to ensure

that there's sufficient available land with the appropriate zoning that can accommodate this kind

of development and when we talk about lower income we're not just talking about we're not talking

primarily about the homeless population we're talking about people that really the working poor

is again someone who's earning 80% of the area median income you know it's a household of two

that's around $60,000 a year that they're earning so again in the housing element this is an

addition to the general plan there are 29 implementation programs 15 of those have specific time frames

11 are ongoing and then three require again revisiting every year and then in

in 2024 we made substantial progress on eight of those programs to give you a little bit of

background about kind of how we're doing on our whole our housing production since 2003 we've

we've built or developers have built 1,103 units in in the city and that's been using

10 affordable housing loans these basically called gap financing to how close the gap to make

the project financially feasible that's totaled over 35.5 million dollars and that comes from our

housing fund which where we collect inclusionary housing fees and housing trust fund fees it does

not come from the general fund this year in terms of projects that have been entitled we got

the habitat for humanity project entitled vented senior apartment is entitled and under construction

and Harrington Grove was entitled again you just approved the loan modification for that and it's

expected to start construction this year so that's another 197 affordable housing units

in terms of our our progress on the rena we're actually making very good progress but again like

the rest of the region you're seeing a lot of the progress in the moderate and above moderate

categories and while we're we're making some good progress here again it's still we still have a

long ways to to go when you one of the things that we have done as I mentioned earlier when I talked

about the no net loss we were that we were rapidly approaching a situation where we had no surplus

so if one of these sites ended up developing with a luxury apartment project we would have to scramble

and would sit six months rezona site do the environmental review and get that ready for affordable

housing that's why we were proactive with the 2024 general plan amendments which helped to

increase our surplus to to 12 to the for land that would allow for the development of up to

1200 units so we are not in any kind of situation in the near term where we would be in a no net

loss situation so the benefit of that is we're protected from potential lawsuits we're also

still we remain eligible for state funding and again I need to credit council member Rathal for

his astute analysis using the the the states housing element annual port portal and as you can see

here we are kind of the third best jurisdiction in the region in terms of satisfying our arena

requirements in terms of that of that progress overall the reason is doing well in the moderate and

above moderate categories but again it's the low and the very low income categories where I think

everybody is struggling and a lot of that comes down to the availability of that of of outside

financing so with that that concludes my presentation and our recommendation is to for council to

receive and accept the 2024 general plan annual progress support and the housing element annual

progress support and directs us to submit those to OPR and to the HCD as required by state law

be happy to answer any questions thank you does not have any questions or does it has council

proposals thank you very much I just have one question so for I'm thinking of communities in and

around say Los Angeles might be a better example of the situation but what happens when a community

becomes you know built out to the extent where meeting the available land concept for additional

affordable housing just doesn't doesn't work what's the what's the option in those situations I mean

I don't think we're there obviously obviously we're not there but there is a future where that is

the case yeah and such as heights has been facing that for several years now they have no ability to

grow outside of their boundaries they're essentially a developed community and so they then look

internally at at sites that are redevelopable so generally when when the state and our

then Sacramento area council of governments works to assign what our share of the growth is if you

have large areas of vacant land you tend to get a higher higher number as we did because of the

full some plan area citrus heights tends to get a much lower number but the expectation is that

they would achieve that through redevelopment so doing zoning overlaying existing development that

might change the you know contents of that property someday down the road that that's correct so

for example that was all I was trying to yeah yeah citrus heights is looking at the sunrise mall as

to put an overlay or doing a specific plan there that would allow for housing at that location

in addition to the retail very good thank you I don't have any other questions I want to give a quick

update to the audience who for those who are waiting for the Nautoma station thing we're getting

word that is probably another 30 minutes or so to finish tabulating so we don't I can ask more

I mean yeah we can fill a bus for here if we need to but it's possible that we're going to a

journey this meeting and not give the results until the next meeting so if you'd like to stick around

if you find this fascinating you're welcome to do so but if you if you'd rather not stick around it's

probably going to be another 30 minutes at least but spam knows I can probably fill up another 30 minutes

if you need to there's no more exciting topic than regional housing needs allocation to me so we

can do this maybe actually that does bring to mind another question since I had a chance to think

about it and apparently we have time what is where are we in the cycle again can you just kind of back

over the dates of when a new allocation will be issued and say cog will get the yeah extraordinarily

fun task of divying that up amongst the various communities yeah so believe it or not we will

that process kicks off in at say cog in 2026 right and then we will get a new allocation I believe in

2028 so our current housing element goes from 2021 to 2029 and then we we will need to get that we

will get that allocation from say cog we will need to bring on board a specialized housing

consultant that will help us to prepare our our next housing element so we will go through this

all like you slip that in we'll need a special consultant I think you're completely capable

to ask me I used to do these but yeah I try to get some sleep all right and then and maybe it's

I we should bring up we did get a question letter kind of at the last minute from a interested

party about if you can back up to the different components of the plan and you said that we were

doing economic analysis is kind of like a bonus right there the suggestion was that the

that the the noise element yeah perhaps we didn't have a fully baked policy citywide and I don't

necessarily agree with that position but I'm just curious how you feel or where we are with that

I if if I understood correctly and thank you for mentioning that there was a green sheet that was

yeah it was it was specific to modified vehicles making noise on the road and other nuisance I had

a conversation with that person questions stands yeah so I don't think so much that it's

that it's a default of the or a defect of the the noise element per se I think that the concern

is more about kind of implementation and enforcement okay and the we do I think we we do need to

revisit our our noise standards that are within our within the municipal code in in chapter eight

or title eight and I think that I think overall it's something that we do need to look at but I

think some of the things related to vehicle modification are really kind of outside of our control

and that really becomes more of an enforcement issue for for the police department when people

have modified vehicles that are making you know loud loud sounds yeah well at one p.m. every

Sunday the gang of motorcycle is drive down the Thomas Street around the lake and head out to

wherever they head out to and those are not modified but they're very noisy and I just take it as

knowing that it's one o'clock on Sunday so anyway thank you I believe we have officers that get

training from the CHP if I'm not mistaken about and I know Sergeant Bady was kind of our resident

expert but he retired a few years ago and I don't know who is really taken on that role but

just curious I had some other questions last one are you done you have questions I got a couple

oh we haven't got to you yeah have we did we yeah yeah go ahead I bet I can I can let

counts my malaria go first I'm a no rush okay all right I'll go first off let me just start with

the regional housing needs assessment numbers for full some as in most municipalities are

completely unachievable and I think we all know that that is not the can do spirit because I

don't think there is any desire to do at least on I'll speak for myself at least for my part

that being said oh you know we have built 8.5% of the affordable housing in Seikogs area

9.5% of the total housing as of the third year into the housing element cycle using

the state's own 8 HDD's own data which is a lot of housing and a lot of affordable housing oh so

right wrong or indifferent that's that's what's happened in the past we have met our

arena targets better than almost any other municipality out there at all the different levels right

it's not just even our numbers are lower this year they are higher compared to most

municipalities out there there there are people obviously larger municipalities that are

building a lot more affordable housing than us sacrament L.A. but when you look at El Grove when

you look at Roseville based on per capita numbers everything like that full some has built a lot

of housing oh and so I'll just start with that because I'm kind of kind of talk a little bit more

about the affordable housing fund I don't think it's any secret that I question our priorities for

what our house affordable housing fund is one of those policies in there is H 11 oh that you

mentioned in the report and saying we do need to discuss our priorities where we had intended to

set priorities at some point during this housing element and I don't think we have done so yet but

I just want to kind of move that up in the discussion of to bring back to council to say and maybe

it is an open discussion with our community and with council of should we be targeting seniors should

we be targeting for sale housing missing middle housing you know or continue on saying hey we'll let

this rena process kind of forces down the road of high density subsidized rental units to meet our

rena goals oh because I think there are other more sustainable ways of going about that so I think

that H 11 policy was a very good one in the general plan and we shouldn't move that forward

and I'll give you a moment is that any comments on that or any thoughts on H 11

no I think that is something we could bring back for discussion it's probably timely so

in the coming months I think it's you know with all the development activity it's no surprise if

I have these conversations with each of the council members that the the long range planning the

special project implementation is something that we have to prioritize and do incrementally because

we just don't have enough resources to follow up on everything at once so I think we'll be working

with our new city manager and the council to determine what priorities we bring back in what

order to you but we'd be happy to move that forward and think that's a good use of our time thank you

the other one I have was it was age 16 and really this was about the four sale housing which

the habitat for humanity project on Persever great example great project I brought it up before

but we did have a difference between the appraise value of this parcel and what we sold it to

that would have gone into the general fund of sale of surplus property we can make a transfer

from the affordable housing fund whatever that name of that fund is sorry I don't know

the specific name of the fund right now the special reserve housing fund or over to the general

fund so I do think that should be part of the discussion or at least tell me I'm wrong so I'll

quit repeating this but I do think doing that transfer really enables us to use the program age 16

further for projects like this that are lower density that do provide long term stability for

families and you know working folks that are willing to put in sweat equity on projects I just

think if we do that then it frees up you know the general fund to do other things and says hey this

is a good use of that affordable housing fund so it sets it up to use that fund for things other

than the subsidized high density agree I think that just goes back to what Pam had mentioned about

you know kind of looking in this looking at this and the kind of scheme of overall priorities

yeah excellent yeah that fund balances Desmond mentioned is up over 22 million and it has grown

substantially over the last five year period so it's higher now and it will continue to to be

high based on the rate of in loofies that are being paid for new market rate housing and so

yeah I think it's it's appropriate because there's such a you know there's a lot of money in

there that could be spent for you know lots of different purposes related to housing so yeah absolutely

with priorities and with money then we get to set you know really what we want to do with that

instead of you know people just coming in and asking us for hey I need this much of a loan right

we can then instead go out and look for for what we want in the affordable housing area thank you

we just may get the results of our tabulations tonight council member Larry that wasn't my

purpose here for asking questions but anyway you know I understand council member Rae Tholes comments

about you know taking money out of the housing fund to put in the general fund and that brings up

another question for me and I guess that is is that property is really hard to come up with for

people to build these four sale affordable units and can that money be used to help subsidize future

sites like the habitat for humanity site I mean I would know we sold it for less but we also

provided you know the benefit that they had a place to build the site without them having to come

up with the money yeah that makes sense yes it does that is correct and I think that goes back to

what council member Rae Tholes was saying is this kind of what is the priorities for the use of the

funds so for example it can be used for the loans and gap financing like like Stephanie described

in her presentation on the Harrington Grove apartment project and like we've done with many others

it can be used for land banking where we acquire property specifically for affordable housing

it can also be used to help to reduce the impact fee burden on projects because that can be a

barrier to financial development ultimately these all come down to kind of questions for the

the city council to weigh about the best use of the housing fund it could be a mix of all three

of those but again I think that goes back to that larger discussion on what's the best and most

effective use of the housing fund given what the council's priorities are right but we do have

some sites that have been identified as transit friendly sites where the owners aren't necessarily

interested in building that kind of a development on their property but it seems like that could be

an incentive perhaps to at least kind of coerce them or entice them into moving forward with not

using properties that they're that they currently that currently have been included in those in those

lists of here we have this many acres that can be zoned for identity transit friendly housing

that aren't going to be used without some kind of incentive

then my other question was about the ADUs and you know we count those as additional units but a

lot of those ADUs are being used as air VMBs and it's there a way for us to differentiate what's

actually being used for housing versus what's actually being used as you know a rental unit and

then come for the person that built them so it's illegal for them to use ADUs as short-term rentals

I'm not saying that that's what happened but it is illegal when we get complaints about that we

have code enforcement notify them they have to be longer-term rental units Stephanie has actually

done surveying of of ADUs and in particular the multi-gen housing which is being built down in the

in the Folsom Ranch area and those are homes that have an internal separate suite with a separate

entrance that are effectively attached ADUs to to get an idea of how they're actually being used

and whether they are being used for folks that are lower income and many times that may include

you know persons with you know adult children with disabilities or or our seniors members of

of the family that you know couldn't necessarily financially live on their own and then

sometimes they are they are rented I don't know Stephanie if you wanted to speak more to kind of what

your results have been. Does it mean can I ask this queer clarifying question also so

ADUs cannot be used for short-term rentals when they were built after a certain point right but

prior to that isn't it up to the jurisdiction didn't we have this discussion? Yeah we we did and

so so

HCD hasn't come out with an official opinion on on this it's not entirely clear in the law

and different jurisdictions have interpreted it differently based on our research in in

discussions what I think it was it was either

congressman Kylie or hoover's office that had reached out to HCD saying that there was some

latitude for those units that were built prior to 2020 but we could never get anything in writing

from HCD clarifying the issue and so we're kind of in this limbo situation and based on our

reading of the law it doesn't look like there's a lot of flexibility. But units built after 2020

definitely yeah after 2020 cannot be used as a short-term rental that is correct. I just

like to address something maybe to Barbara's original question or council member Larry's original

question which is that in the this housing element cycle where ADUs were being proposed as one

way to meet the affordable housing need the state came up with a rule because it's very challenging

for us to track and guarantee what number of our affordable housing units are affordable at what

levels we just don't do that we don't track it it's it's challenging so they set a rule to say

you know a certain percentage of the units can be counted towards meeting that affordable need and

we said thank you very much you know we have x number of units in any given year and we'll assume

that we're you know meeting that metric in accordance with that percentage so you know to

Desmond's point Stephanie's done a lot of of research to see kind of how is it being implemented but

it is a very challenging thing for us to do effectively because not all ADUs are rented and you know

there's there's lots of different dynamics out there happening. Yeah I think the threshold isn't

the threshold 15% Stephanie and then you can you can count more if you can demonstrate that

yeah so we actually are using a survey that say cog prepared several years back that they

presented to HCD and HCD allowed that and based on that survey the way we are currently tracking it

is really related to square footage so we kind of say if it's a 300 square foot ADU it's

for very low income because that's the type of rent it would get and you know if it's 1200 square

foot ADU we're saying it's above moderate because we know that the rent's out there so that's the way

we've been kind of handling those so it's based on say cog survey and then we actually look at

the square footage of those units and then with regards to the multi-gen units we did a survey

several years back of the region because we didn't have very many constructed based on that survey

approximately 70% of the units were being used for housing and then 30% of the units were for

other things like a home office or occasional visitor etc so we've been using the results of that

survey we plan to implement a new survey probably later this year for our Folsom folks now that we

have a sufficient number of multi-gen units to find out how they're being used in Folsom we did

we did it do a survey several years ago but it was so small of a sample that we stuck with the

original survey so I don't know if that answers your questions but yeah no thank you

with this came up a few years ago planning commission how are we going to account for all those

and I didn't know if any progress had made if it made in the interim it's clearly a tough

problem to solve I mean the other side of that too is if they're being used as short-term

rentals can you know we charge a TOT tax for their for their use yeah I mean anybody who's operating

a short-term rental in the city regardless of whether it's in a home or elsewhere is required

to pay transient occupancy tax to the city so we've sent out letters to everybody we've identified as

operating a short-term rental and then code enforcement has followed up with them if they're

operating a short-term rental in in in an ADU thank you okay we have no public comment on this and

we don't need to take any action on this item so did you have another you're good okay thank you

very much Desmond we are going to go to city manager reports and council comments and hope that

when we're done with that we will be able to report out the results of the vote so Mr. City Manager

great thank you Madam Mayor members of the council first I'd like to thank our communications

director Christine Brainer who's helped put this these comments together we are for the last two

we've held meetings with all of our departments going over their budget requests it's been a really

good opportunity for me one to get into our staff and I just can't say enough how impressed I have been

with their presentations with their thought of trying to provide the best service to our constituents

as possible and so we will move forward with that with budget hearings with the council in May and

June as you know we have to adopt the budget prior to June 30th and so I look forward to that

some folks and residents have recently received notices from insurance providers requiring

tree removal or trimming as a condition for policy renewal the city Arborist can provide guidance

on tree preservation regulations and potential options for help you can contact the city Arborist

Amy Nunes her contact information is available on the city website you can ask actually just google

her name too and full sum and it'll pop up so she's there to help the city of Folsom released its

annual comprehensive financial report for the fiscal year ending June 30th 2024 so basically an

independent audit confirmed that the city is following all necessary accounting processes

and kudos to a staceneer team for leading that effort it is important and it's something that

allows us to demonstrate that we are accounting things as they're supposed to

13 Folsom residents recently graduated from the Folsom Cert basic training academy

following a hands-on disaster simulation at the Eldorado Hills Fire Department Training Facility

Community Emergency Response Team volunteers are trained to assist first responders

and support the community during emergency emergencies and disasters

the Folsom Fire Department is currently hiring firefighter paramedics to join its team

this opportunity is open to both entry level and lateral applicants details are available

at Folsom.ca.us forward slash jobs and Everbridge Alert was sent very early Sunday regarding a

vehicle crash at Riley in Natoma and we acknowledge the message like clarity and cost some

confusion among residents the crash also disrupted our 911 communications temporarily we appreciate

the community's patience and are working to improve future notifications a routine traffic stop

on March 6th near White Rock Road and Oak Avenue Parkway led to a significant arrest officers

pulled over a vehicle with no license plates and discovered the driver was on searchable probation

a search of the vehicle uncovered four stolen firearms ammunition tools and camping equipment all

linked to a recent storage unit burglary in Eldorado Hills Robert Carlson 43 of Rancho

Cordoba was arrested and booked at the Sacramento County Jail on multiple firearm and theft related

charges we are sat in by the passing of Eldorado County Fire Marshall Lucas Shepherd and

extend our condolences to his loved ones and colleagues a volunteer volunteers are needed for

Folsom's Earth Day celebration on Saturday April 26th the event includes morning cleanup projects

in a free festival at Prospector Park you can learn more and sign up at Folsom.ca.us forward slash

Earth Day the community tree planting event will be held at Beacon Hill Park this Saturday from

8.45 a.m. to noon volunteers will help plant trees to improve shaded walkways picnic areas

and overall environmental quality the gallery at 48 in Atoma will present moments of connection

people places and presents a solo exhibition by artist Yen Ching Chang a free public reception will

be held on April 4th in the exhibition will remain on display through May 15th and that concludes

my report. Thank you council member Kuzlowski just a couple of quick things the most recent meeting of

the Sacramento Area Council of Governments was held in Rockland they were our special host and we

they did a bus tour of Rockland to show off some of the great things they're going on up there

it was it was good fun in our neighbors to the north are excellent hosts and they really lean

into showing off their quarry park they love that place so I think you know it's it's something

that our our park staff and many of you are familiar with but it's a it's good fun and great stuff

and I got a stress ball that looks like a piece of granite and I have this fantastic collection of

stress balls from trade shows so I'm just saying we need something clever as a stress ball give

away for city of Folsom and strangely enough they choose the choose Folsom pens that our chamber

gives away literally the Rockland chamber has the exact same pen that says choose Rockland so

anyway so that happened next Thursday is on more serious say cog business a land use and

natural resources subcommittee meeting of say cog which I'm going to chair because I'm I'm the

I'm pinch hitting for the chair of that committee where we will be talking about general plans and

a lot of the same topics that we talked about tonight so the wheels keep turning down there

and then finally I will just simply say it is never too early to get your tickets for the Folsom

Pro Rodeo because they do actually sell out so even at the end of March it's a good play to go

get the ones that you need thank you vice-mayor Ethel this report out on Sacramento Transportation

Authority at the last meeting we discussed and agreed to kind of the framework for an MOU

around the step funding or a state transportation improvement funding basically the state funding for

transportation projects that in the past was competitive and so we were competing against all of the

entities that are across say cog so six counties lots of different municipalities so this MOU

would essentially say hey Sacramento entities are only going to submit projects to say cog up to

the amount of where they think the funding will be and so say cog then can't choose the projects

that are lower down our priority list in the past because Folsom is a wealthier community

we have done worse than any other municipality at transportation funding from say cog

because that has gone to communities that have higher needs than us so this would this MOU would

basically say the $1.3 million a year would come to Folsom and that number is based on a 75%

population 25% road miles calculation and so if we didn't use our 1.3 million in a year we could

use it in the next year so we would be working with just the Sacramento entities in order to get

that funding together so I'm giving you kind of the bare bones of what that MOU we expect it to look

like it will of course have to be approved by STA and then it will be brought to this council

and all the other municipalities for approval and we'll have all the details then but just kind of

wanted to to give you an update of that's what is approved in concept at least with the Sacramento

agencies going forward also got a chance to tour the Echo Water Resource Recovery Station with

Sacsu or yesterday the tour does not smell as bad as you would think our sewage treatment plant

smells it actually was pretty nice you know for a sewage treatment plant they do offer public tours

from the spring all the way through the fall and I signed up for the plant tour but it

allows on the tour I actually learned that they do tours of the buffer lands which is the 2000 acres

around the sewage plant that tour looks way cooler so I'm going to go back and do that tour

another time but those both those tours are available to the public so if you ever had questions

about where our sewage goes when it leaves fulsome when it gravity feeds down there are some

pump stations but it essentially makes it down to a roughly outgrove go check out the Echo Water

Resource Recovery Center thank you thank you council member Larry I'll second your

recommendation for visiting the regional sanitation plant I've done that a couple of times

but what's more enjoyable are the buffer lands tours and they're open several times a year so

people can locate that on their calendar annually and there are a couple days when you don't have

to sign up in advance but there are some guided tours through there especially for burgers if

you're interested in seeing what kind of birds are going through the area I do want to continue to

encourage our residents to sign up for the habitat for humanity bill that is taking place on

Persever Street there are still lots of openings and you know various members of the council

of participated and are going to participate in the future on those to find out what dates are

available and what you need to bring you can just look for us habitat for humanity Sacramento

Division by googling it and it'll it'll take you to a place where you can get more information

I'm looking forward to seeing that completed sometime this year we'll have a grand opening

and then the other thing I want to mention is I've been working to try to connect some of the

local small businesses in my district you know they're a large number of places are in strip malls

you know that aren't at the outlets or at the Paladio that you know it's tracked a lot of people

and some of them are really struggling to get customers in there and so I've talked to the chamber

of commerce staff and they're working on putting together some packets for people who are

visiting town and anybody who has a small business is interested in getting involved you can email me

at the website at my city email address and I'll be happy to connect you the staff over there

we're trying to work out a way to make sure that people businesses are becoming successful

also the other thing I'm encouraging them to do is to work with each other and do newsletters

throughout the neighborhoods because I think it's important to have a walkable neighborhood

do you services that are benefiting the community and keeping our communities vital so thank you

thank you okay um you know in my six and a half years on the council and four years on the

school board I have attended many Eagle Scout Court of Honor ceremonies but a couple weeks ago

I got to attend my first ever Girl Scout Gold Award ceremony for three very impressive young

ladies from Folsom and the gold award is the equivalent of the Eagle Scout for Boy Scouts but

prior to earning a gold award they earned a silver award and I thought it was really interesting

that all of them did something that benefited the city of Folsom and I just want to share

Nandini um she noticed an increase in accents between bicyclists and pedestrian during the

sidewalks of Folsom and she created an educational campaign to encourage the cyclists to use the

bike lane and her video and brochure went to the principles of Sutter and Folsom Middle School where

it is still shared with middle school students on a routine basis Eila helped with the stenciling

on our trails for walk left right right and Julia for her silver award learned that not every

fire truck in Folsom had an oxygen mask designed specifically for the shape of pet faces like a cat

or a dog and so her public service awareness video campaign raised enough funds to fill the

need in Folsom as well as provide pet oxygen masks for the neighboring communities of South Placer

and Elrata Hills and I just I know that oftentimes these scouts come to the city in particular

the parks and wreck department looking for possible opportunities to do their their projects and so

I just want to make sure we're we're keeping a running list of things that that we can

offer them. This Thursday for anybody who's interested Folsom Cordova will be having a town hall

specifically to address the facilities in Folsom and some of the overcrowding that's happening

particularly at the middle and high school is that's going to be held this Thursday from six to

seven thirty p.m. at Folsom Middle and I do plan to attend that. The city manager and I are going

to attend a meeting with Folsom Cordova and San Juan district personnel about that area in

American River Canyon that is in the San Juan district because as we know I think as a

reported last meeting Folsom Cordova has now eliminated inter district transfers into Folsom high

and they did not make an exception for that portion of the city. So Council Member Kauszowski you're

welcome to join us at that if you'd like I can give you the details and then I just wanted to

follow up on my comment from last meeting or the I think it was last meeting or the two meetings ago

I did throw out the first pitch for the Little League game this past Saturday I threw a strike

right down the middle of the plates. It always took me a month's worth of practice in my backyard

to be able to throw one perfect pitch. So anyway Madam City Clerk would you give us an update please

we try to drag ourselves we can now we've mastered the filibuster here but still to no avail

they're going back over the ballots and really trying to make sure they get it right and

and double checking it. So right now the current estimate what we don't really have on we think it's

going to be at least 20 to 30 minutes so we think and that's not guaranteed so I do apologize I know

everybody was very patient and waiting and we really hoped to be able to give you results tonight

but unfortunately looks like that's not going to happen but at least when we give you the results

we'll know that they're accurate so at this point we'll continue this item to the next council

meeting and we will announce the results then if anybody doesn't want to come back to the meeting in

two weeks you're welcome to call our office after that meeting on April 9th and we'll let you know

save the trip back down if you don't want to. But we've enjoyed having you here we hope to see you

again on April 8th and with that we will adjourn at 8.46pm. Thank you.