Cloverdale City Council
March 8, 2023

124 N. Cloverdale Boulevard
Cloverdale, CA 95425
Phone: 707-894-2521
www.cloverdale.net

MINUTES - FINAL

REGULAR MEETING OF THE CITY COUNCIL AND JOINT MEETING OF THE CLOVERDALE COMMUNITY

DEVELOPMENT SUCCESSOR AGENCY BOARD OF DIRECTORS
WEDNESDAY, MARCH 8, 2023
6:00 PM

CLOVERDALE PERFORMING ART CENTER
209 N. CLOVERDALE BOULEVARD, CLOVERDALE, CA 95425
A. OPENING PUBLIC SESSION
Call to Order - Mayor Lands called the meeting to order at 6:02 p.m.

Pledge of Allegiance - Mayor Lands led the pledge of allegiance.

Roll Call - Present: Mayor Lands, Councilmembers: Bagby, Morgenstern, Wheeler

Absent: Vice Mayor Wolter (Excused)
Conflict of Interest Declaration - None.

Agenda Review (Changes and/or Deletions) - None.

B. PUBLIC COMMENTS:

None.

C. COMMUNICATIONS
None.

D. PROCLAMATIONS/PRESENTATIONS
D.1 Presentation - Student Liaison Report
Student Liaison Garcia reported.

D.2 Proclamation - American Red Cross Month
Andy Witthohn accepted the proclamation on behalf of the American Red Cross.

E. CONSENT CALENDAR:

A motion was made by Councilmember Bagby, seconded by Councilmember Wheeler, to waive reading of the text and adopt the Consent Calendar.

The motion carried by the following vote:

Yes (4) - Mayor Lands, Councilmembers: Bagby, Morgenstern, Wheeler No (0) - None.

Absent (1) - Vice Mayor Wolter
Abstain (0) - None.

E.1 Resolution accepting installation of the Public Restroom Facility at City Plaza by Rege Construction
Action: Resolution was adopted.

RESOLUTION NO. 020-2023 ENTITLED: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CLOVERDALE ACCEPTING PUBLIC IMPROVEMENTS PERFORMED BY REGE CONSTRUCTION, INC. FOR THE INSTALLATION OF THE PUBLIC RESTROOM FACILITY AT CITY PLAZA.

E.2 Resolution amending the budget to increase budgeted amount for Green Valley Engineering Inc. for the Engineering Services Associated with Public Works Inspections Action: Resolution was adopted.

RESOLUTION NO.021-2023 ENTITLED: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVERDALE APPROVING A BUDGET AMENDMENT ADDING AN ADDITIONAL $24,000 NEEDED TO CONTINUE GREEN VALLEY ENGINEERING FOR PUBLIC WORKS INSPECTIONS.

E.3 Housing Successor Agency Annual Report for Fiscal Year 2021-22 Action: Received and filed
E.4 Purchase Agreement with Matt Mazzei Chevrolet for the purchase of two 2023 Dodge Charger (LDDE48) Base Model police vehicles and necessary equipment Action: Resolution was adopted.

RESOLUTION NO. 022-2023 ENTITLED: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CLOVERDALE APPROVING A PURCHASE ORDER AGREEMENT WITH MATT MAZZEI CHEVROLET AND PRECISION WIRELESS IN AN AMOUNT NOT TO EXCEED EIGHTY-TWO THOUSAND SEVENHUNDRED AND EIGHT DOLLARS AND SEVENTY-SIX CENTS ($82,708.76) FOR THE PURCHASE OF TWO 2023 DODGE CHARGER (LDDE48) BASE MODEL POLICE VEHICLES AND PURCHASE

AND INSTALLATION OF THE NECESSARY EQUIPMENT FOR ONE VEHICLE FROM PRECISION WIRELESS PLUS A 10% CONTINGENCY FOR POTENTIAL COST OVERRUNS AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AGREEMENT.

E.5 Authorization to File a Financial Assistance Application, and Execute and Administer a Financial Assistance Agreement with the State Water Resources Board for the Cloverdale Recycled Water Feasibility Report and Planning Project Action: Resolution was adopted.

RESOLUTION NO. 023-2023 ENTITLED: RESOLUTION FOR AUTHORIZATION TO FILE A

FINANCIAL ASSISTANCE APPLICATION, AND EXECUTE AND ADMINISTER A FINANCIAL

ASSISTANCE AGREEMENT WITH THE STATE WATER RESOURCES BOARD FOR THE CLOVERDALE RECYCLED WATER FEASIBILITY REPORT AND PLANNING PROJECT.

E.6 Authorization to Apply for, Receive, and Enter Into a Cooperative Agreement, and Administer a Grant for the WATERSMART: Water Recycling and Desalination Planning Grant for the Cloverdale Recycled Water Feasibility Report and Planning Project Action: Resolution was adopted.

RESOLUTION NO. 024-2023 ENTITLED: RESOLUTION OF THE CITY OF CLOVERDALE CITY

COUNCIL AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO APPLY FOR, RECEIVE,

AND ENTER INTO A COOPERATIVE AGREEMENT, AND ADMINISTER A GRANT FOR THE WATERSMART: WATER RECYCLING AND DESALINATION PLANNING GRANT.

F. PUBLIC HEARINGS
None.

G. NEW BUSINESS
G.1 Resolution opposing Initiative No. 21-0042A1, the Taxpayer Protection and Government Accountability Act
City Manager Kelley introduced the item and Councilmembers provided comment.

Staff responded to Councilmember inquiries and comments.

Action: A motion was made by Councilmember Bagby, seconded by Councilmember Morgenstern, to waive reading of the text and adopt:

RESOULTION NO. 025-2023 ENTITLED: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVERDALE OPPOSING INITIATIVE 21-0042A1 AND AUTHORIZING THE MAYOR TO SIGN A LETTER OF OPPOSITION TO INITIATIVE 21-0042A1 ON BEHALF OF THE CITY COUNCIL.

The motion carried by the following vote:

Yes (4) - Mayor Lands, Councilmembers: Bagby, Morgenstern, Wheeler No (0) - None.

Absent (1) - Vice Mayor Wolter
Abstain (0) - None.

H. SUBCOMMITTEE REPORTS
Subcommittee Agendas, Approved Minutes, and Media are available at www.cloverdale.net/agendacenter
Finance, Administration & Police: Chair Lands reported.

Last Meeting Agenda | Next Meeting - March 6, 2023 and April 3, 2023 Planning & Sustainability: Chair Bagby reported.

Last Meeting Agenda | April 18, 2023
Public Works & Facilities: Chair Wolter reported.

Last Meeting Agenda | Next Meeting - March 28, 2023
Joint City/Cloverdale Unified School District: Chair Lands reported.

Last Meeting Agenda | Next Meeting - April 17, 2023
Homelessness Community Advisory Group: Chair Wheeler and Vice Chair Morgenstern reported.

Last Meeting Agenda | Next Meeting - June 12, 2023
I. COUNCILMEMBER REPORTS
No additional.

J. INFORMATIONAL REPORTS
None.

K. LEGISLATIVE REPORTS, LETTERS OF SUPPORT/OPPOSITION
K.1 Letter of Support for SMART Sustainable Transportation Planning Grant City Manager Kelley reported.

L. CITY MANAGER/CITY ATTORNEY REPORT(S)
City Manager Kelley reported.

Chief Ferguson responded to Councilmember inquiries and comments.

City Attorney Sanchez reported.

M. STATUS UPDATES
CURRENT IMPACTS TO WATER SUPPLY - City Manager Kelley reported.

N. COUNCIL DIRECTION ON FUTURE AGENDA ITEMS
None.

O. ADJOURNMENT
Mayor Lands adjourned the meeting at 6:43 p.m. to the next regular meeting of the City Council scheduled for March 22, 2023.

APPROVED ON: March 22, 2023
_______________________
Michael Maloney, City Clerk
124 N. Cloverdale Boulevard
Cloverdale, CA 95425
Phone: 707-894-2521
www.cloverdale.net

THIS MEETING IS OPEN TO THE PUBLIC IN

PERSON AND VIA THE ZOOM LINKS BELOW
PUBLIC PARTICIPATION:

The City Council welcomes public interest, attendance, and participation at meetings.

Attendees may join open session both in-person at theCloverdale Performing Arts Center, 209 N. Cloverdale Blvd, virtually at www.zoom.us/join, or by telephone: 1.669.900.6833, both using Meeting ID: 823 1668 4527; or directly online at https://us02web.zoom.us/j/82316684527.

Public Session meetings are also streamed on YouTube via live webcast at cloverdale.net/youtube.

Effective March 1, 2023, if a technical issue arises with Zoom or the phone dial-in option, the meeting will continue unless it is being held pursuant to the provisions of Assembly Bill 2449.

Members of the public may provide comment on an agenda item in-person or online via Zoom during the public comment periods. Zoom attendees will be muted until they are called upon by the Mayor or City Clerk. To make a public comment on Zoom, use the raise hand icon, or dial *9 if you are calling in. Please state your name for the record. Once you start, you will have three (3) minutes to speak. Please note the City Council is unable to respond directly to questions or enter into dialogue with commenters. Written comments may alternatively be submitted prior to the meeting via email to the City Clerk at [email protected]. Please note, all written comments received are considered public records and subject to disclosure under the California Public Records Act.

COUNCILMEMBER PARTICIPATION:

Councilmembers participate in person or teleconference methods consistent with traditional provisions of the Brown Act, unless the meeting is being held pursuant to provisions of Assembly Bill 2449.

The City Council may recess for breaks and agenda items may be taken out of order.

AGENDA

REGULAR MEETING OF THE CITY COUNCIL AND JOINT MEETING OF THE CLOVERDALE COMMUNITY

DEVELOPMENT SUCCESSOR AGENCY BOARD OF DIRECTORS
WEDNESDAY, MARCH 8, 2023
6:00 PM

CLOVERDALE PERFORMING ART CENTER
209 N. CLOVERDALE BOULEVARD, CLOVERDALE, CA 95425
1 A. OPENING PUBLIC SESSION
Call to Order
Pledge of Allegiance
Roll Call
Conflict of Interest Declaration
Agenda Review (Changes and/or Deletions)
B. PUBLIC COMMENTS:

Any person wishing to speak to the City Council on any item not listed on the agenda may do so at this ?me.

Members of the public have the right to speak on any item on the Council Agenda at the ?me the item comes up for consideration. Pursuant to the Brown Act, the City Council is not allowed to consider issues or take action on any item not listed on the agenda. Three minutes are typically allotted to each speaker.

C. COMMUNICATIONS
Council may discuss at this ?me wri@en communications sent to Councilmembers since the last council mee?ng.

Written communications to be discussed will be listed below, if any.

D. PROCLAMATIONS/PRESENTATIONS
D.1 Presentation - Student Liaison Report
D.2 Proclamation - American Red Cross Month
E. CONSENT CALENDAR:

All items under the Consent Calendar will be considered together by one ac?on of the City Council unless any Councilmember or member of the public requests that an item be removed and considered separately.

E.1 Resolution accepting installation of the Public Restroom Facility at City Plaza by Rege Construction Recommended Action(s):

Adopt a Resolution Entitled “A Resolution of the City Council of the City of Cloverdale Accepting Public Improvements Performed by Rege Construction, Inc. for the Installation of the Public Restroom Facility at City Plaza.”
E.2 Resolution amending the budget to increase budgeted amount for Green Valley Engineering Inc. for the Engineering Services Associated with Public Works Inspections Recommended Action(s):

Adopt a Resolution Entitled, “A Resolution of the City Council of the City of Cloverdale Approving a Budget Amendment Adding an Additional $24,000 Needed to Continue Green Valley Engineering for Public Works Inspections."
Proclamation - American Red Cross Month
Agenda Report
Attachment 1 - Resolution
Agenda Report
Attachment 1 - Resolution
Attachment 2 - Budget Amendment
Attachment 3 - Scope of Work
2 E.3 Housing Successor Agency Annual Report for Fiscal Year 2021-22 Recommended Action(s):

Receive and file the City of Cloverdale Housing Successor Agency Annual Report for Fiscal Year 2021-

22. E.4 Purchase Agreement with Matt Mazzei Chevrolet for the purchase of two 2023 Dodge Charger (LDDE48) Base Model police vehicles and necessary equipment Recommended Action(s):

Adopt a Resolution Entitled, “A Resolution of the City Council of the City of Cloverdale Approving a Purchase Order Agreement with Matt Mazzei Chevrolet and Precision Wireless in an Amount not to Exceed Eighty-Two Thousand Seven-hundred and Eight Dollars and Seventy-six Cents ($82,708.76) for the Purchase of Two 2023 Dodge Charger (LDDE48) Base Model Police Vehicles and Purchase and Installation of the Necessary Equipment for One Vehicle from Precision Wireless plus a 10% Contingency for Potential Cost Overruns and Authorizing the City Manager to Execute said Agreement."
E.5 Authorization to File a Financial Assistance Application, and Execute and Administer a Financial Assistance Agreement with the State Water Resources Board for the Cloverdale Recycled Water Feasibility Report and Planning Project
Recommended Action(s):

Adopt a Resolution Entitled, “A Resolution for Authorization to File a Financial Assistance Application, and Execute and Administer a Financial Assistance Agreement with the State Water Resources Board for the Cloverdale Recycled Water Feasibility Report and Planning Project." E.6 Authorization to Apply for, Receive, and Enter Into a Cooperative Agreement, and Administer a Grant for the WATERSMART: Water Recycling and Desalination Planning Grant for the Cloverdale Recycled Water Feasibility Report and Planning Project
Recommended Action(s):

Adopt a Resolution Entitled, “Resolution of the City of Cloverdale City Council Authorizing the City Manager, or Designee, to Apply for, Receive, and Enter Into a Cooperative Agreement, and Administer a Grant for the WATERSMART: Water Recycling and Desalination Planning Grant.” F. PUBLIC HEARINGS
G. NEW BUSINESS
G.1 Resolution opposing Initiative No. 21-0042A1, the Taxpayer Protection and Government Accountability Act
Agenda Report
Attachment 1 - Housing Successor Annual Report
Agenda Report
Attachment 1 - Resolution
Attachment 2 - Exhibit A - Mazzei Estimate
Agenda Report
Attachment 1 - Resolution
Agenda Report
Attachment 1 - Resolution
3 Recommended Action(s):

Adopt a Resolution entitled, “A Resolution of the City Council of the City of Cloverdale Opposing Initiative 21-0042a1 and Authorizing The Mayor To Sign A Letter Of Opposition To Initiative 21- 0042a1 on behalf of the City Council.”
H. SUBCOMMITTEE REPORTS
Subcommittee Agendas, Approved Minutes, and Media are available at www.cloverdale.net/agendacenter Finance, Administration & Police:

Last Meeting Agenda | Next Meeting - March 6, 2023 and April 3, 2023 Planning & Sustainability:

Last Meeting Agenda | April 18, 2023
Public Works & Facilities:

Last Meeting Agenda | Next Meeting - March 28, 2023
Joint City/Cloverdale Unified School District:

Last Meeting Agenda | Next Meeting - April 17, 2023
Homelessness Community Advisory Group:

Last Meeting Agenda | Next Meeting - June 12, 2023
I. COUNCILMEMBER REPORTS
I.1 Written Reports
J. INFORMATIONAL REPORTS
K. LEGISLATIVE REPORTS, LETTERS OF SUPPORT/OPPOSITION
K.1 Letter of Support for SMART Sustainable Transportation Planning Grant-Sustainable Communities L. CITY MANAGER/CITY ATTORNEY REPORT(S)
M. STATUS UPDATES

CURRENT IMPACTS TO WATER SUPPLY
N. COUNCIL DIRECTION ON FUTURE AGENDA ITEMS
(City Council and Council Subcommittee)
O. ADJOURNMENT
To the next regular meeting of the City Council scheduled for March 22, 2023 Agenda Report
Attachment 1 - Resolution
Attachment 2 - CBRT Opposition Letter
Attachment 3 - CBRT Summary Outline
Attachment 4 - CBRT Fiscal Analysis
Councilmember Bagby
Cloverdale Letter of Support for SMART Sustainable Transportation Planning GrantSustainable Communities FY23-24 4 CERTIFICATE OF POSTING
I, Mike Maloney, City Clerk, do hereby declare under penalty of perjury that the foregoing agenda was posted on 1) the outdoor bulletin board at City Hall, 124 N. Cloverdale Blvd., Cloverdale, CA 95425, and 2) Cloverdale Performing Arts Center, 209 N. Cloverdale Blvd., Cloverdale, CA 95425; online at cloverdale.net/agendacenter and made available for public review at least 72 hours prior to the meeting as required by the Brown Act.

Date posted: 3.2.2023 | Time posted: 2:45 pm | City Clerk Signature: s/Mike Maloney

IMPORTANT NOTICES REGARDING CITY COUNCIL MEETINGS
SPECIAL NEEDS ACCOMMODATIONS: In compliance with the Americans with Disabili?es Act and Title VI, if you need special assistance to par?cipate in this mee?ng, please contact the City Clerk's office at [email protected] or 707.894-1712. No?fica?on at least 72 hours prior to the mee?ng will enable the City to make reasonable accommodations are made to provide accessibility to the meeting.

AB343 REQUIREMENTS: Any wri?ngs or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspec?on in the City Hall offices located at 124 N. Cloverdale Blvd., Cloverdale, CA 95425 during normal business hours.

WAIVER WARNING: If you challenge decisions/direc?ons of the City Council in court, you may be limited to raising only those issues you or someone else raised at public hearings described in this agenda, or in wri@en correspondence delivered to the City of Cloverdale, or prior to, the public hearing.

TRANSCRIPTIONS: The City does not transcribe its proceedings, however, Zoom transla?on may be available upon request. Anyone who desires a verbal or wri@en record of this mee?ng should arrange for an a@endant by a court reporter or for other acceptable means of recording. Such arrangement will be at the sole expense of the individual reques?ng the recorda?on. Ques?on about this agenda should be directed to City Hall at 707-894-2521. Video recordings are available at www.cloverdale.net/agendacenter.

The City of Cloverdale thanks you in advance for taking all precautions to prevent spreading COVID-19. 5 A PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF CLOVERDALE PROCLAIMING MARCH 2023 AMERICAN RED CROSS MONTH
WHEREAS, in times of crisis, people in the City of Cloverdale come together to care for one another. This humanitarian spirit is part of the foundation of our community and is exemplified by American Red Cross volunteers and donors; and
WHEREAS, in 1881, Clara Barton founded the American Red Cross, turning her steadfast dedication for helping others into a bold mission of preventing and alleviating people’s suffering; and WHEREAS, today, more than 140 years later, we honor the kindness and generosity of Red Cross volunteers here in Cloverdale, who continue to carry out Clara’s lifesaving legacy. They join the millions of people across the United States who volunteer, give blood, donate financially, or learn vital life-preserving skills through the Red Cross; and WHEREAS, In Cloverdale, the contributions of local Red Cross volunteers give hope to the most vulnerable in their darkest hours — whether it’s providing emergency shelter, food and comfort for families devastated by local disasters like home fires, donating essential blood for accident and burn victims, heart surgery and organ transplant patients, and those receiving treatment for leukemia, cancer or sickle cell disease; supporting service members and veterans, along with their families and caregivers, through the unique challenges of military life; helping to save the lives of others with first aid, CPR and other skills; or delivering international humanitarian aid; and WHEREAS, their support, volunteerism and generous donations are critical to our community’s resilience. We hereby recognize this month of March in honor of all those who fulfill Clara Barton’s noble words, “You must never think of anything except the need and how to meet it,” and ask everyone to join in this commitment; and WHEREAS, the work performed by the American Red Cross to prevent and alleviate human suffering is vital to strengthening our community’s resilience. During American Red Cross Month in March, we celebrate the humanitarian spirit of Cloverdale and reaffirm our commitment to help ensure no one faces a crisis alone; and WHEREAS, caring for one another is at the heart of our community and exemplified by the people of the City of Cloverdale, whose simple acts of kindness through the Red Cross provide help and hope in people’s most difficult moments, thereby continuing the lifesaving legacy of Clara Barton, who founded the organization more than 140 years ago to prevent and alleviate human suffering; and WHEREAS, the City Council of the City of Cloverdale dedicates this month of March to all those who continue to advance the noble legacy of American Red Cross founder Clara Barton, who lived by her words, “You must never think of anything except the need, and how to meet it.” NOW, THEREFORE, BE IT PROCLAIMED that the City Council of the City of Cloverdale does hereby proclaim March 2023 as Red Cross Month and encourages all citizens of Cloverdale to reach out and support its humanitarian mission.

Dated: March 8, 2023
SO ORDERED:
_____________________________
Todd Lands, Mayor
6 City Council/Successor Agency
Agenda Item Summary Agenda Item: E.1
Meeting Date: March 8, 2023
Agenda Section:

Consent
Staff Contact:

Kevin Thompson, Assistant City Manager / Comm. Dev. Dir Hector Galvan, Parks Superintendent
Agenda Item Title:

Resolution accepting installation of the Public Restroom Facility at City Plaza by Rege Construction Recommended Council Action(s):

Adopt Resolution Entitled “A Resolution of the City Council of the City of Cloverdale accepting public improvements performed by Rege Construction, Inc. for the installation of the public restroom facility at City Plaza”.
________________________________________________________________________________________ Background:

On August 10, 2022, the City of Cloverdale City Council adopted Resolution 076-2022 awarding a contract to Rege Construction for the installation of a restroom facility at the Cloverdale Plaza. The scope of work included which included site improvements to serve the restroom facility. Rege Construction Inc. has performed the work and City Staff have determined that all work has been completed in conformance with City Standards and the specifications contained in the plans. The project did not require a bond. ________________________________________________________________________________________ Summary:

All public improvements have now been completed. The City’s contract Engineer has determined that they meet City Standards and the conditions set forth in the permit. ________________________________________________________________________________________ Options:

1. Reject the proposed Resolution accepting the public improvements

2. Provide alternative direction to City Staff.
_______________________________________________________________________________________ Subcommittee Recommendation:

This item has not been presented to the Public Works & Facilities Subcommittee. ________________________________________________________________________________________ Budget/Financial Impact:

Approval of the Resolution will complete the process.
________________________________________________________________________________________ Attachments:

1. Resolution
7 CITY OF CLOVERDALE

CITY COUNCIL
RESOLUTION NO. ____ –2023

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVERDALE ACCEPTING PUBLIC

IMPROVEMENTS PERFORMED BY REGE CONSTRUCTION FOR THE CLOVERDALE PLAZA RESTROOM

FACILITIES
WHEREAS, On August 10, 2023, the City of Cloverdale City Council awarded the Cloverdale Plaza Restroom Facility installation to Rege Construction Inc; and
WHEREAS, Rege Construction Inc. has performed the work, Moe Engineering (Engineer-of-Record) have inspected the improvements and has determined that all work has been completed in conformance with City Standards and the contract; and
WHEREAS, final payment from the budget account authorized under Resolution 076-2022 is now due to the contractor, Rege Construction Inc.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cloverdale hereby accepts the public improvements and authorizes the City Manager to issue final payment including all undisputed retention on behalf of the City to the contractor.

The foregoing Resolution No. ____-2023 was duly introduced and adopted by the City Council of the City of Cloverdale at its regular meeting held on the 8th day of March 2023 by the following roll call vote:

AYES: (_)
NOES: (_)
ABSTAIN: (_)
ABSENT: (_)
None
APPROVED: ATTEST:
______________________________ ____________________________________ Todd Lands, Mayor Mike Maloney, City Clerk
8 City Council/Successor Agency
Agenda Item Summary Agenda Item:

Meeting Date:

E.2
March 8, 2023
Agenda Section:

Consent
Staff Contact:

Kevin Thompson, Assistant City Manager/ Comm. Dev.

Agenda Item Title:

Resolution amending the budget to increase budgeted amount for Green Valley Engineering Inc. for the Engineering Services Associated with Public Works Inspections ________________________________________________________________________________________ Recommended Council Action(s):

Adopt a Resolution Entitled, “A Resolution of the City Council of the City of Cloverdale Approving a Budget Amendment Adding an Additional $24,000 Needed to Continue Green Valley Engineering for Public Works Inspections”.
_______________________________________________________________________________________ Background/Summary:

On the City Manager on September 23, 2022, approved a Professional Services Agreement with Green Valley Engineering to provide engineering inspection services not to exceed $24,000. On November 9, 2022 the City Council adopted a resolution amending the budget to hire Green Valley Engineering for public works inspections in an amount not to exceed $24,000. Since that time, the budgeted amount has been exceeded due in large part to the number of inspections being conducted at the Baumgardner project. To cover this increased amount, a budget amendment, in the amount of $24,000. It is important to note, the cost of the inspections conducted by Green Valley are billed to the developer or permit holder. The attached resolution amends the budget to hire Green Valley Engineering for on-call public works inspection services. _______________________________________________________________________________________ Alternative Options:

1. Reject the proposed resolution that approves a budget amendment to cover a contract with Green Valley Engineering for public works inspection services.

2. Request modifications to the amendment and continue the matter to a future Regular Council Meeting.
________________________________________________________________________________________ Subcommittee Recommendation:

Not reviewed.
________________________________________________________________________________________ Budget/Financial Impact:

The cost of the engineering services will be recovered through the collection of encroachment permit fees and will require an additional $24,000, the amount of the original contract. ________________________________________________________________________________________ Attachments:

1. Resolution

2. Exhibit A - Budget Amendment Form

3. Original Scope of work from Green Valley
9 CITY OF CLOVERDALE

CITY COUNCIL
RESOLUTION NO. XX--2023

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVERDALE APPROVING A BUDGET AMENDMENT ADDING AN ADDITIONAL $24,000 NEEDED TO CONTINUE GREEN VALLEY ENGINEERING

FOR PUBLIC WORKS INSPECTIONS
WHEREAS, the City Manager on September 23, 2022, approved a Professional Services Agreement with Green Valley Engineering to provide engineering inspection services not to exceed $24,000; and WHEREAS, On November 9, 2022 the City Council adopted a resolution amending the budget to hire Green Valley Engineering for public works inspections in an amount not to exceed $24,000; and WHEREAS, the need for additional inspection services for public works projects are required; and WHEREAS, City Staff requested Green Valley Engineering to provide a scope of work for the additional inspection services; and
WHEREAS, Consultant proposed a total "Not to Exceed Amount" by $24,000 to perform the tasks outlined in the attached Scope of Work and an additional $24,000 is required; and WHEREAS, since entering into the Professional Services Agreement with Green Valley Engineering, the amount need to cover the expenses has exceeded the $24,000; and WHEREAS, the cost for inspection services are reimbursed through payment of encroachment permit fees; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cloverdale hereby approves a budget amendment the General Fund 100-50-602-42150-000 adding an additional $24,000 to the Green Valley Engineering for public works inspection services to be reimbursed through payment of encroachment permits 100-00-000-32210-000.

The foregoing Resolution was duly introduced and adopted by the City Council of the City of Cloverdale at its regular meeting held on the 8th day of March 2023 by the following roll call vote:

AYES: (0)
NOES: (0)
APPROVED: ATTEST:
_______________________ ____________________________
Todd Lands, Mayor Mike Maloney, City Clerk
Attachment:

Exhibit A - Budget Amendment Form
10 Budget Amendment Form

REVENUES AND OTHER FINANCING SOURCES
Fund Dept Amendment
Amount
100 00-000 24,000
REVENUE TOTAL 24,000

EXPENDITURES AND OTHER FINANCING USES
Fund Dept Amendment
Amount
100 50-602 24,000
EXPENDITURE TOTAL 24,000

PURPOSE
Services Associated with Public Works Inspections
Date Date
Date Entered by Date
Prepared By
Shannon Peterson
Department Head Finance Director
Date Prepared
March 2, 2023
Account Description Account No.

Community Development
Encroachment Permits
Account No.
32210-000
Misc Contract Services
Requesting Department
Account Description
City Manager
42150-000
Increase budgeted amount for Green Valley Engineering Inc. for the Engineering X:\Agenda Development\COUNCIL\2023 REPORTS\3-8-2023\Consent\E.2 Budget Amendment Green Valley\Attachment 2 - Budget Amendment 11 municipal engineering
civil engineering
construction management
construction inspection
Restoring Yesterday…Creating Tomorrow
July 18, 2022
Mr. Kevin Thompson
Assistant City Manager
City of Cloverdale
124 N. Cloverdale Blvd.

Cloverdale, CA 95425
Re: Request for Contract for Encroachment Inspection Services for the Various Projects (Project) Dear Kevin:

I have prepared a brief scope of work that will address providing services to the City associated with encroachment and land development inspection. It is our understanding that the work will include both on-site and off-site construction support services.

Our inspection services will correspond to the attached Exhibit A. At this time, we understand that we will provide both on and off-site construction monitoring of grading operations, underground utilities, and joint trench facilities as well as concrete flatwork such as curb and gutter, driveways, sidewalks and pedestrian ramps and overseeing the grades and placement of upcoming paving operations as directed by the City representative.

We understand that the City will require encroachment applicants to provide 24-hours’ notice for inspections and developers are required to provide 48-hours’ notice. Inspection callouts are anticipated to vary from 4 hours per day to 8 hours depending on the proposed work for that day/week.

We are hoping to facilitate the work as much as feasible to help with the final completion and acceptance of the housing and various projects under construction and will coordinate work with City representatives, Developer and Contractor as feasible.

We will maintain significant oversight during all operations to ensure that the proper implementation and monitoring of SWPPP’s and BMP’s for erosion protection and to monitor adherence to traffic control and noise control plans is being adhered to by the various Contractors/building teams.

Inspector $170/hr
Vehicle $15/hr
Please feel free to contact me directly at [email protected] or 707.579.0388 or on my cell phone at 707.326.5620 with any questions.

Sincerely,
Liz Ellis, P.E.

Principal
12 municipal engineering
civil engineering
construction management
construction inspection
Restoring Yesterday…Creating Tomorrow

SCOPE OF SERVICES
On-Call Inspection Services by Green Valley Consulting Engineers for the City of Cloverdale
Daily Field Inspection & Documentation
Green Valley will provide daily, on-site inspections of the construction activities to ensure that the contract work conforms to the contract documents and Governing Construction Standards. The on-site inspector will provide documentation of the work on daily inspection reports. Daily inspection reports may be submitted to the City on a weekly basis for the previous week’s work. Green Valley will also document the work in progress with digital photos. Other important tasks of the on-site inspector include public relations and safety measures, especially traffic control measures during construction.

If requested, our Inspector will confirm that all design permit requirements are met and will act as the liaison between the Contractor, Construction Manager, and other stakeholders. Specifically, we can assist with the following work:
 Measurement of work, pay requests, change order support, and related contract issues  Coordination of all required testing as specified by the Contract documents  Quality Control/Assurance of construction approach and written communications We know that documentation and communication is critical to the success of construction projects, and we are committed to keeping the Construction Manager, City staff and other stakeholders informed regarding critical construction details, progress of the work and costs of the project. We will document all construction issues with the following reports:
 Daily inspection Reports
Requests for Information (RFI)
The Contractor will be required to submit all Requests for Information in writing. The Inspector will work under the direction of the appointed City representative to follow up as needed with the Contractor to clarify requests, obtain needed information and provide direction as required to proceed with the work.

Closeout & Record Drawings
We will work with the City and the Contractor to keep a “record set” of drawings if applicable to document changes and as-built conditions of original design plans. Once construction is completed to the satisfaction of the City, we compile all pertinent files and related information and submit to the City for their permanent records. We will furnish the City the following:
 Record drawings if applicable
 Project Photos
 All contract files and records
13 municipal engineering
civil engineering
construction management
construction inspection
Restoring Yesterday…Creating Tomorrow
335 Tesconi Circle, Santa Rosa, California 95401 ꞏ web www.gvalley.com ꞏ tel 707.579.0388

FEE SCHEDULE

GREEN VALLEY CONSULTING ENGINEERS
Hourly Rates
(Effective January 2022)
*Prevailing wage rates subject to DIR increases

Expert Witness $500/hr Plus Expenses
Principal $225
Project Manager $165-$235
Project Engineer $155-$210
Construction Manager $185-$235
Assistant Construction Manager $150-$215
Staff Engineer $125-$165
CAD Technician $115-$145
Survey Crew $180-$265
Professional Land Surveyor $180
Field Personnel $115-$145
Construction Inspector $145-$185
Construction Inspector Overtime $175-$200
Construction Inspector Night $175-$215
Prevailing Wage Inspector $155-$190*
Prevailing Wage Overtime $175-$200*
Prevailing Wage Double Overtime $200-$235*
Prevailing Wage Night $175-$200*
Prevailing Wage Night OT $195-$215*
Prevailing Wage Night OT Double $240-$255*
Administrative/Word Processing $80-$100
Vehicle Rate $15.00/hour
Employee time will be billed in accordance with the fees listed above. For non-professional employees, time spent over 8 hours per day, time spent on evening or night shifts, and time spent on Saturdays will be charged at 1.5 times the hourly billing rate. Time spent in excess of 12 hours a day or work performed on Sundays or holidays will be charged at 2.0 times the hourly billing rate. All field personnel charges are portal to portal. Professional employees will not be charged out at premium charge rates for overtime work.

Use of Company-Owned Equipment and Specialized Supplies The cost of using company-owned equipment and specialized supplies is included in the hourly rates billed to our projects.

Miscellaneous External Expenditures
Miscellaneous external expenditures, such as those costs associated with blueprints, and reproduction of originals will be billed at the actual cost. Subconsultant charges will be billed at cost unless specified otherwise. Mileage will be billed at current IRS rates. 14 P.O. Box 217 • 124 North Cloverdale Blvd. • Cloverdale, CA 95425-0217 • Telephone (707) 894-2521 • FAX (707) 894-3451 (Rev. 01/01)
City Council/Successor Agency
Agenda Item Summary
Agenda Item:

Meeting Date:

E.3
March 8, 2023
Agenda Section
Consent
Staff Contact
David Kelley, City Manager
Susie Holmes, Finance Director
Agenda Item Title
Housing Successor Agency Annual Report for Fiscal Year 2021-22 Recommended Council Action(s):

Receive and file Housing Successor Agency Annual Report for Fiscal Year 2021-22 ___________________________________________________________________________________________ Background
The City of Cloverdale (“City”) serves as the Housing Successor Agency to the former Cloverdale Community Development Agency (“CCDA”), which was dissolved effective February 1, 2012. State law requires each Housing Successor Agency to prepare an annual report documenting its financing activity and demonstrating how it is meeting requirements imposed by Health and Safety Code (“HSC”) Section 34176.1, enacted by Senate Bill 341 in 2013.

The report is due to the California Department of Housing and Community Development (“HCD”) by April 1 each year and must be posted on the City’s website. The report for Fiscal Year 2021-22 is being presented to the City Council to receive and file.

Summary
The City has met all requirements imposed by HSC Section 34176.1. The City’s progress on major requirements in Fiscal Year 2021-22 is summarized below.

Housing Asset Fund Activity
The City deposited $14,301 in interest income and revenue from the proceeds of an easement to Pacific Gas and Electric into the Housing Asset Fund during Fiscal Year 2021-22. The City spent $3,978 on administrative expenses (well below the maximum limit of $297,639).

The ending asset balance as of June 30, 2022 was approximately $6.1 million, of which $183,804 is cash. The remaining asset balance is comprised of a $250,000 loan receivable and $5.7 million in real property value.

Expenditure Proportionality Requirements
Expenditures from the Housing Asset Fund must meet specific proportionality requirements by income level and age:
• Administrative and monitoring expenses are capped at $200,000 annually, adjusted for inflation, or 5 percent of the value of real properties and loans receivable, whichever is higher. • Up to $250,000 may be spent annually on rapid re-housing solutions for homelessness and homeless prevention.
15 • If Housing Asset Funds are spent on housing projects and programs, within each five-year compliance period:
o At least 30% must be spent on extremely low income households (earning up to 30% of the Area Median Income);
o No more than 20% may be spent on low income households (earning 60-80% of the Area Median Income); and
o No monies may be spent on moderate or above moderate income households (earning more than 80% of the Area Median Income).
• No more than 50% of rental housing units assisted by the City or the former Redevelopment Agency in the prior 10 years may be restricted to seniors.

The City has met these requirements consistently since Fiscal Year 2013-14. It has only incurred administrative expenses thus far, which have been well below the administrative limit since Fiscal Years 2013-14. Staff will ensure requirements are met in future years.

Senior Housing Restrictions
In any ten-year period, a maximum of 50 percent of deed-restricted rental units assisted by the City may be restricted to seniors. Housing Asset Funds may not be used to assist senior rental housing if this maximum has been reached. The City has not assisted any deed-restricted rental housing in the prior ten years. Staff will ensure future assistance meets this requirement.

Real Property Assets and Loans Receivable
As the Housing Successor Agency, the City inherited two real properties from the former CCDA, commonly known as Cherry Creek and Thyme Square. HSC Section 34176(e) requires any real properties acquired by the CCDA prior to February 1, 2012 to be sold or developed for affordable housing purposes by September 5, 2022.

The City initiated development on these properties by the deadline.

The Cherry Creek property was developed by Kingdom Development Inc. and Cherry Creek Village L.P. into a 24-unit rental housing project affordable to very low income households. Construction was completed and the property is fully occupied as of fiscal year 2021-22. The property is leased to the developer through a 99-year agreement.

Thyme Square is a 5.3-acre property split into multiple lots. Lot A will be developed with 30 units of affordable housing through an Exclusive Negotiated Agreement with Integrated Community Development. Lot B was sold in January 2022 for $1.5 million to Alexander Valley Healthcare, a Federally Qualified Health Center, for a health and wellness center serving Northern Sonoma County. The sales proceeds were received in September 2022, however they are restricted by a right of reverter in the Grant Deed. If Alexander Valley Healthcare fails to meet the terms of a development agreement, the City will use the proceeds to pay costs associated with the project at the time that the right of reverter is exercised. After the terms of the development agreement are met, the sales proceeds will be reflected as a deposit in the Housing Asset Fund.

The Housing Successor has one outstanding loan receivable in the amount of $250,000. The former CCDA provided the loan to rehabilitate the Divine Senior Apartments, a 12-unit affordable rental property. The loan has a 55-year term ending in 2060.

Excess Surplus
The law has an “excess surplus” requirement, which requires Housing Asset Funds to be spent in an expeditious manner. Excess surplus is defined by HSC Section 34176.1(d) as “an unencumbered amount in the account that exceeds the greater of one million dollars, or the aggregate amount deposited into the account during the housing successor’s preceding four fiscal years, whichever is greater.” 16 The Housing Asset Fund does not have an excess surplus for Fiscal Year 2021-22, as the cash balance is significantly below $1 million. If the Housing Successor Agency accrues an excess surplus in the future, the funds must be spent or encumbered within three fiscal years or transmit the funds to HCD.

Options

1. Receive and file the City of Cloverdale Housing Successor Agency Annual Report for Fiscal Year 2021-22.

2. Provide alternative direction to staff.

Budget/Financial Impact
There are no fiscal implications of receiving and filing these annual reports on the City’s activities as the Housing Successor Agency for the City of Cloverdale.

Subcommittee Recommendation
None.

Attachments:

1. Cloverdale Housing Successor Annual Report 2021-22
17 HOUSING SUCCESSOR ANNUAL REPORT
Cloverdale Housing Successor
Fiscal Year 2021-22
18 TABLE OF CONTENTS
INTRODUCTION ........................................................................................................................................................1 City as Housing Successor.....................................................................................................................................1 Scope of This Housing Successor Annual Report..................................................................................................1 Assets Transferred to the Housing Successor .......................................................................................................1 BACKGROUND ..........................................................................................................................................................2 Legal Requirements Pertaining to Housing Successors.........................................................................................2 Permitted Uses of Housing Asset Funds ................................................................................................................3 Limits on the Accumulation of Housing Funds (Excess Surplus) ...........................................................................5 HOUSING ASSET FUND ACTIVITY..........................................................................................................................6 Deposits and Fund Balance....................................................................................................................................6 Expenditures ...........................................................................................................................................................6 Ending Cash and Fund Balance .............................................................................................................................6 Housing Successor Portfolio...................................................................................................................................7 Real Properties and Disposition Status...............................................................................................................7 Loans Receivable................................................................................................................................................9 COMPLIANCE WITH EXPENDITURE & PRODUCTION LIMITS .............................................................................9 Proportionality Requirements..................................................................................................................................9 Senior Rental Housing Limit Compliance ............................................................................................................ 10 Excess Surplus .................................................................................................................................................... 10 OTHER INFORMATION.......................................................................................................................................... 11 Homeownership Unit Inventory............................................................................................................................ 11 Transfers to Other Housing Successors.............................................................................................................. 12 APPENDIX 1 – HOUSING ASSET TRANSFER FORM.......................................................................................... 13 APPENDIX 2 - HOUSING SUCCESSOR ANNUAL REPORT REQUIREMENTS.................................................. 14 APPENDIX 3 – HOUSING ASSET FUND EXPENDITURE REQUIREMENTS...................................................... 15

19 Cloverdale Housing Successor Annual Report FY 2021-22 1 INTRODUCTION
This Housing Successor Agency Annual Report (“Annual Report”) presents information on Fiscal Year (“FY”) 2021-22 expenditures and activities as required by Health and Safety Code (“HSC”) Section 34176.1(f), including but not limited to a housing successor’s compliance with certain expenditure activities over the year as well as a five-year planning period. This Annual Report is required of any housing successor to a former redevelopment agency.

City as Housing Successor
The City of Cloverdale (“City”) is the Housing Successor Agency (“Housing Successor”) to the former Cloverdale Community Development Agency (“CCDA”), which acted as the redevelopment agency in Cloverdale until redevelopment was dissolved statewide in 2012. At the time of dissolution, a housing successor was to be selected to transfer and be responsible for the remaining assets and liabilities of a former redevelopment agency.

This Annual Report is an addendum to the City’s Housing Element Annual Progress Report. Both are due to the California Department of Housing and Community Development (“HCD”) by April 1 annually.

Scope of This Housing Successor Annual Report
This Annual Report is limited to the Housing Successor’s activities as it relates to its role as a housing successor. This may include, but is not limited to, financial activities, property disposition, loan administration, monitoring of covenants, and affordable housing development. This Annual Report describes compliance with various annual, five-year, and ten-year housing expenditure and production requirements. FY 2021-22 is the third year of the current five-year compliance period for income proportionality, which begins July 1, 2019 and ends June 30, 2024.

Assets Transferred to the Housing Successor
Upon the statewide dissolution of redevelopment in 2012, all rights, powers, committed assets, liabilities, duties, and obligations associated with the affordable housing activities of the CCDA were transferred to the Housing Successor. As one of its first duties as a housing successor, the Housing Successor prepared and submitted to the California Department of Finance (“DOF”) an inventory of housing assets to be transferred from the former CCDA. The inventory was enumerated on a Housing Asset Transfer 20 Cloverdale Housing Successor Annual Report FY 2021-22 2 Form (“HAT”) that included two real properties. One loan receivable is also managed by the Housing Successor.

All items on the HAT were reviewed and ultimately approved by the DOF on September 5, 2012. A copy of the HAT is provided as Appendix 1. Once approved by DOF and as directed by law, the City, acting as housing successor, transferred these assets to the Low and Moderate Income Housing Asset Fund (“Housing Asset Fund1
”). Approval of the HAT set in motion a series of obligations by the City as a housing successor, as described in the following section.

BACKGROUND
This Section summarizes the legal requirements for use of housing successor assets that are addressed in this Annual Report.

Legal Requirements Pertaining to Housing Successors
A year after dissolution of redevelopment began, the State Legislature recognized the need to regulate and provide transparency on the use of the housing activities transferred from a former redevelopment agency. Senate Bill 341 (DeSaulnier, 2013) and subsequent legislation enacted several requirements for housing successor agencies contained in HSC Sections 34176-34176.1.

In general, housing successors must comply with three major requirements pursuant to HSC Section 34176.1:

1. Expenditures and housing production are subject to income and age targets.

2. Housing successors may not accumulate an “excess surplus,” or a high unencumbered Housing Asset Fund balance based on certain thresholds.

3. Properties must be developed with affordable housing within five to ten years of DOF’s approval of the HAT.

Appendix 2 provides a detailed summary of the reporting requirements that are addressed in this Annual Report.
1 The Housing Asset Fund replaced the former CCDA’s Low and Moderate Income Housing Fund. 21 Cloverdale Housing Successor Annual Report FY 2021-22 3 Permitted Uses of Housing Asset Funds
Pursuant to HSC Section 34176.1, Housing Asset Funds may be spent on:
• Administrative costs for the operation of the housing successor agency. The law allows a housing successor to spend the greater of:
o $200,000 per year adjusted for inflation, or
o 5% of the statutory value of real property owned by the housing successor and the value of loans and grants receivable from the HAT (“Portfolio”).

According to HCD, the $200,000 limit adjusted for inflation is $223,400 for FY 2020-21, as HCD has not yet released an updated administrative limit for FY 2021-22. The Housing Successor’s FY 2021-22 Portfolio balance is $5,952,789, of which 5% is $297,639. Cloverdale’s FY 2021-22 annual administrative cost limit is the higher of these amounts, or $297,639. • Homeless prevention and rapid rehousing services up to $250,000 per year if the former redevelopment agency did not have any outstanding inclusionary housing or replacement housing production requirements as of 2012. Cloverdale is eligible for this expense because it did not have any outstanding inclusionary or replacement housing requirements upon dissolution. • Affordable housing development assisting households with up to 80 percent of the Area Median Income (“AMI”), subject to specific income and age targets over a five-year period.

Five-Year Income Proportionality on Development Expenditures: Housing Asset Funds may be spent on the development of affordable housing projects affordable to low, very low, and extremely low-income households. “Development” is defined as “new construction, acquisition, and rehabilitation, substantial rehabilitation as defined in HSC Section 33413, the acquisition of long-term affordability covenants on multifamily units as described in HSC Section 33413, or the preservation of an assisted housing development that is eligible for prepayment or termination or for which within the expiration of rental restrictions is scheduled to occur within five years.”
Over each five-year compliance period, at least 30 percent of such development expenditures must assist extremely low-income households (30% AMI), while no more than 20 percent may 22 Cloverdale Housing Successor Annual Report FY 2021-22 4 assist low-income households (between 60-80% AMI). The balance of the funds may be used on very low-income households (defined as households earning between 30% and 60% of AMI).

The first five-year compliance period was from January 1, 2014, through June 30, 2019. The Housing Successor was compliant with Housing Asset Fund income proportionality expenditure requirements during the first five-year compliance period. The second, and current, five-year compliance period is from July 1, 2019, to June 30, 2024.

Note that housing successors must report expenditures by category each year, but compliance with income proportionality limits is measured every five years. For example, a housing successor could spend all its funds in a single year on households earning between 60-80% AMI, as long as it was 20 percent or less of the total expenditures during the five-year compliance period.

Should a housing successor not spend at least 30% of its development expenditures on extremely low-income households, or exceeds the amount spent on low-income households, future expenditures are subject to greater restriction until these proportionality targets are met.

Specifically, if a housing successor is unable to spend at least 30% of its development expenditures on extremely low units, it is required to increase this spending to 50% until compliant with the 30% threshold; a housing successor that spends more than 20% of its development expenditures on low-income units cannot spend any further funds on low-income developments until it is at or below the 20% threshold.

As such, tracking these expenditures and their progress over the corresponding five-year period is an important function of this Annual Report.

Ten-Year Age Proportionality on Units Assisted: If more than 50% of the total aggregate number of rental units produced by the city, housing successor, or former redevelopment agency during the past 10 years are restricted to seniors, the housing successor may not spend more Housing Asset Funds on senior rental housing.

It is important to stress that Housing Successor expenditure and production requirements are measured on different timeframes:
23 Cloverdale Housing Successor Annual Report FY 2021-22 5 • One-Year Limits: Administrative Allowance and Homeless Prevention Allowance. Compliance is evaluated annually and resets every year.
• Five-Year Limit: Expenditures by Income Level. Compliance is evaluated over a fixed five-year period set by law, the current period being July 1, 2019, to June 30, 2024. • Ten-Year Limit: Number of Senior Deed-Restricted Units Assisted. Compliance is evaluated based on a rolling ten-year period that is different every year, the current period, starting this year, occurring through FYs 2021-22 to 2030-31.

Appendix 3 describes Housing Asset Fund expenditure requirements in more detail, including the types of costs eligible in each category.

Limits on the Accumulation of Housing Funds (Excess Surplus) State law limits how much cash a housing successor may retain and, if it fails to commit and spend these dollars in a reasonable timeframe, ultimately penalizes the housing successor by requiring unspent funds to be transferred to HCD for use on State housing programs.

HSC Section 34176.1(d) establishes a limit, known as an “excess surplus” on the amount of unencumbered Housing Asset Funds based on the greater of the following:
• $1,000,000, or
• The total amount of deposits made into the Housing Asset Fund over the preceding four years.

Only amounts in excess of this threshold are considered an excess surplus. Once an excess surplus is determined, a housing successor must account for these funds separately and encumber said monies within three years. If after the third year the excess surplus has not been fully encumbered, the remaining balance of the excess surplus is to be transferred to HCD within 90 days. HCD is permitted to use these transferred excess surplus funds anywhere in the State under its Multifamily Housing Program or the Joe Serna, Jr. Farmworker Housing Grant Program.

The concept of excess surpluses carries over from the era prior to the dissolution of redevelopment, when redevelopment agencies often were receiving substantial amounts of deposits from the mandatory housing set-aside of 20% of tax increment revenues.
24 Cloverdale Housing Successor Annual Report FY 2021-22 6 As part of the Annual Report, a housing successor must disclose any excess surplus and describe the housing successor’s plan for eliminating this excess surplus.

HOUSING ASSET FUND ACTIVITY
This section describes FY 2021-22 Housing Asset Fund activity and balances.

Deposits and Fund Balance
The Housing Successor deposited $14,301 into the Housing Asset Fund during FY 2021-22. The revenue deposited was gained from interest income and compensation for a temporary easement purchased by Pacific Gas and Electric. Deposits can be seen in Figure 1.

Expenditures
The Housing Successor expended a total of $3,978 during FY 2021-22. All expenses were on administrative costs, and were well under the maximum administrative expense limit of $297,639 for FY 2021-22.

Ending Cash and Fund Balance
The Housing Asset Fund balance as of June 30, 2022 was $6,136,593, of which $183,804 was cash, as summarized in Table 1. Other assets were a loan receivable and land that are described in the next section.
25 Cloverdale Housing Successor Annual Report FY 2021-22 7 Housing Successor Portfolio
The Housing Successor Portfolio as of FY 2021-22 includes two properties and one loan receivable transferred from the CCDA. The Portfolio had a value of $5,952,789 as of FY 2021-22, as detailed in Table 2.

REAL PROPERTIES AND DISPOSITION STATUS
The former CCDA transferred two properties to the Housing Successor. HSC Section 34176.1(e) requires the Housing Successor to initiate affordable housing development on or sell these properties by 26 Cloverdale Housing Successor Annual Report FY 2021-22 8 September 5, 2022. The Housing Successor has initiated development to comply with this timline. The properties and their disposition status are described below. • CHERRY CREEK SITE – This 1.8-acre property was purchased in 2007 by the Housing Land Trust of Sonoma County, with contributions from the CCDA’s Low and Moderate Income Housing Fund, for the development of workforce housing. The property was returned to the CCDA in 2009 as a result of market decline. A lease was entered into with the Cloverdale Community Outreach Committee (“CCOC”) to operate a transitional housing program at existing units on the site.

CCOC’s lease ended in September 2019.

In February 2020, the City entered into a Disposition and Development Agreement with Cherry Creek Village L.P. (“Developer”) to develop, construct, own, and operate a 24-unit rental apartment affordable to very low income residents. The City entered into a Lease Agreement to lease the Property to the Developer for 99 years. The City provided a grant to Kingdom Development Inc., a California nonprofit public benefit corporation and the administrative general partner of the Developer, in the amount of $1,900,000 to assist with the development of the affordable units. The City also agreed to provide a $250,000 pre-development loan to the Developer to assist with the costs related to the design, architecture and engineering expenses of the project pursuant to a separate predevelopment loan agreement. City financial assistance is not from Housing Asset Funds.

The Cherry Creek Village project completed construction and is fully occupied as of fiscal year 2021-22.
• THYME SQUARE SITE – This is an undeveloped parcel totaling approximately 5.3 acres located south of the Citrus Fairgrounds adjacent and west of South Cloverdale Blvd.

Lot A of the Thyme Square property will be developed with affordable housing pursuant to an Exclusive Negotiating Agreement (“ENA”) with Integrated Community Development (“ICD”). ICD is currently developing plans to provide up to 30 affordable housing units, with the potential of additional units being proposed under a density bonus.

Lot B of the Thyme Square property, consisting of approximately 2.6 +/- acres, was sold in January 2022 for $1.5 million to Alexander Valley Healthcare, a Federally Qualified Health Center, for a health and wellness center serving Northern Sonoma County. The City Council approved a 27 Cloverdale Housing Successor Annual Report FY 2021-22 9 Purchase and Sale Agreement on February 27, 2019. A development agreement guiding the future development of the project site was approved on March 9, 2022. Sales proceeds were deposited into the Housing Asset Fund in September 2022, however the sales proceeds are restricted by a right of reverter in the Grant Deed. If Alexander Valley Healthcare fails to comply with the terms of the agreement, the City will use the proceeds to pay costs associated with the project at the time that the right of reverter is exercised. After the terms of the development agreement are met, the sales proceeds will be reflected as available cash in the Housing Asset Fund.

City staff continues planning and design work for the remainder of the Thyme Square property.

LOANS RECEIVABLE
One loan agreement was transferred from the CCDA to the Housing Successor.

On August 25, 2005, Divine Senior Apartments Associates LP entered into an agreement with the CCDA to acquire and redevelop 2 housing projects comprised of 32 units. The development, collectively known as Divine Senior Apartments, is located at 141 Healdsburg Drive, No. 1 in Cloverdale. A total of 12 units were to be set aside for very low income (30% AMI) households, and 19 units for low income (60% AMI) households. The former CCDA loaned the developer a total of $300,000 at an interest rate of 3%. Of the loan proceeds, $250,000 was to be allocated to project rehabilitation, and the remaining $50,000 was for ungrounding utilities. The loan term is 55 years and there is no prepayment penalty. The annual payments of principal and interest are to be made from “available cash flow” within 120 days after the end of each calendar year. Audited financial statements are due to the city annually within 150 days after the end of the calendar year. Income certification is due to the City annually within 45 days after the end of the calendar year. No loan repayment was made in FY 2021-22.

COMPLIANCE WITH EXPENDITURE & PRODUCTION LIMITS
During FY 2021-22, the Housing Successor was in compliance with all annual and five- to ten-year planning period requirements as described in this section.

Proportionality Requirements
As summarized below, the Housing Successor fully complied with all Housing Asset Fund spending restrictions in FY 2021-22:
28 Cloverdale Housing Successor Annual Report FY 2021-22 10 • The Housing Successor expended $3,978 on allowable administrative expenses which is well under the maximum limit of $297,639.
• The Housing Successor did not use any Housing Asset Funds for homeless prevention or rapid rehousing expenses and was therefore in compliance with the $250,000 spending restriction. • No affordable housing development-related expenditures have been made during the current fiveyear compliance period of July 1, 2019 to June 30, 2024. Therefore, the Housing Successor meets the five-year income proportionality targets.

The Housing Successor will ensure it continues to meet all Housing Asset Fund expenditure requirements throughout the current five-year compliance period of July 1, 2019 through June 30, 2024 and future fiveyear compliance periods.

Senior Rental Housing Limit Compliance
Pursuant to HSC Section 34176 (b), the Housing Asset Funds may not be used to assist senior rental housing if more than 50% of deed-restricted rental housing units assisted by the CCDA, Housing Successor, or City in the previous 10 years are restricted to seniors. The Housing Successor complies with this limit. The Housing Successor, City, and the former CCDA have not assisted any deed-restricted rental units since FY 2011-12. The City will ensure it meets senior housing production proportionality requirements in future years.

Excess Surplus
The Housing Asset Fund may not accumulate an “excess surplus”, or an unencumbered cash balance tht exceeds the greater of $1 million or the sum of deposits in the prior four fiscal years. This requirement ensures that housing successors are actively spending available Housing Asset Funds on affordable housing.

The Housing Successor has not accumulated an excess surplus of Housing Asset Funds since its formation, including in FY 2021-22. As shown in Table 3, the FY 2021-22 beginning unencumbered cash balance of $173,480 was less than $1 million.
29 Cloverdale Housing Successor Annual Report FY 2021-22 11 OTHER INFORMATION
Homeownership Unit Inventory
Table 4 presents an inventory of homeownership units assisted by the Housing Successor that require restrictions, covenants, or an adopted program that protects Housing Asset Fund monies. One property, 210 Ioli Ranch Circle, was removed from the inventory in FY 2021-22 because a loan was repaid. The loan repayment of $5,257 will be reflected as a deposit in FY 2022-23. 30 Cloverdale Housing Successor Annual Report FY 2021-22 12 Transfers to Other Housing Successors
There were no transfers to another housing successor entity for a joint project pursuant to HSC Section 34176.1(c)(2).
31 Cloverdale Housing Successor Annual Report FY 2021-22 13 APPENDIX 1 – HOUSING ASSET TRANSFER FORM
The Housing Asset Transfer Form is attached as a separate document. 32 Cloverdale Housing Successor Annual Report FY 2021-22 14 APPENDIX 2 - HOUSING SUCCESSOR ANNUAL REPORT

REQUIREMENTS
Health and Safety Code Section 34176.1(f)
Housing Asset
Fund
Revenues &
Expenditures
Total amount deposited in the Housing Asset Fund for the fiscal year.

Amount of deposits funded by a Recognized Obligation Payment Schedule (“ROPS”).

Statement of balance at the close of the fiscal year.

Description of Expenditures for the fiscal year, broken out as follows:
• Homeless prevention and rapid rehousing
• Administrative and monitoring
• Housing development expenses by income level assisted Description of any transfers to another housing successor for a joint project.

Other Assets
and Active
Projects
Description of any project(s) funded through the ROPS.

Update on property disposition efforts (note that housing successors may only hold property for up to five years, unless it is already developed with affordable housing).

Other “portfolio” balances, including:
• Statutory value of any real property either transferred from the CCDA or purchased by the Housing Asset Fund
• Value of loans and grants receivable
Inventory of homeownership units assisted by the CCDA or the housing successor that are subject to covenants or restrictions or to an adopted program that protects the CCDA’s investment of monies from the Low and Moderate Income Housing Fund.

Obligations &
Proportionality
Description of any outstanding production obligations of the CCDA that were inherited by the Housing Successor.

Compliance with proportionality requirements (income group targets), which must be upheld on a five-year cycle.

Percentage of deed-restricted rental housing restricted to seniors and assisted by the CCDA, the Housing Successor, or the City within the past ten years compared to the total number of units assisted by any of those three agencies.

Amount of any excess surplus, and, if any, the plan for eliminating it. 33 Cloverdale Housing Successor Annual Report FY 2021-22 15 APPENDIX 3 – HOUSING ASSET FUND EXPENDITURE

REQUIREMENTS
Health and Safety Code Section 34176.1
Expense
Category Limits Allowable Uses
Administration
and
Compliance
Monitoring
Measured
Annually
$297,639
maximum for
FY 2021-22
(limit varies
each year)
Administrative activities such as:
• Professional services (consultant fees, auditor fees, etc.) • Staff salaries, benefits, and overhead for time spent on Housing Successor administration
• Compliance monitoring to ensure compliance with affordable housing and loan agreements
• Property maintenance at Housing Successor-owned properties Capped at $200,000 adjusted annually for inflation or 5% of the statutory value of real property owned by the housing successor and the value of loans and grants receivable from the HAT (“Portfolio”), whichever is greater.

Homeless
Prevention and
Rapid
Rehousing
Solutions
Measured
Annually
$250,000
maximum per
fiscal year
Services for individuals and families who are homeless or would be homeless but for this assistance, including:
• Contributions toward the construction of local or regional homeless shelters
• Housing relocation and stabilization services including housing search, mediation, or outreach to property owners
• Short-term or medium-term rental assistance
• Security or utility deposits
• Utility payments
• Moving cost assistance
• Credit repair
• Case management
• Other appropriate activities for homelessness prevention and rapid rehousing of persons who have become homeless.

Affordable
Housing
Development
No spending
limit, but must
comply with
income and
age targets
“Development” includes:
• New construction
• Acquisition and rehabilitation
• Substantial rehabilitation
• Acquisition of long-term affordability covenants on multifamily units
• Preservation of at-risk units whose affordable rent restrictions would otherwise expire over the next five years
34 Cloverdale Housing Successor Annual Report FY 2021-22 16 Health and Safety Code Section 34176.1
Expense
Category Limits Allowable Uses
Income
Targets
Fixed FiveYear
Compliance
Period
(currently FYs
2019-20 to
2023-24)
Every five years (currently fiscal years ending 2020-2024), Housing Asset Funds must meet income targets:
• At least 30% on extremely low income rental households (up to 30% AMI or “Area Median Income”)
• No more than 20% on low income households (60-80% AMI) Moderate and above moderate income households may not be assisted (above 80% AMI).

Failure to comply with the extremely low income requirement in any five-year compliance period will result in having to ensure that 50 percent of remaining funds be spent on extremely low income rental units until in compliance.

Exceeding the expenditure limit for low households earning between 60-80% AMI in any five-year reporting period will result in not being able to expend any funds on these income categories until in compliance.

Age Targets
Rolling TenYear Period
(looks back at
prior ten
years)
For the prior ten years (resets every year), a maximum of 50% of deed-restricted rental housing units assisted by the Housing Successor or its host jurisdiction may be restricted to seniors.

If a housing successor fails to comply, Housing Asset Funds may not be spent on deed-restricted rental housing restricted to seniors until in compliance.
35 36
37 City Council/Successor Agency
Agenda Item Summary Agenda Item:

Meeting Date:

E.4
March 8, 2023
Agenda Section:

Consent
Staff Contact:

Jason Ferguson, Chief of Police
Agenda Item Title:

Purchase Agreement with Matt Mazzei Chevrolet for the purchase of two 2023 Dodge Charger (LDDE48) Base Model police vehicles and necessary equipment.
________________________________________________________________________________________ Recommended Council Action(s):

Adopt a Resolution Entitled, “A Resolution of the City Council of the City of Cloverdale Approving a Purchase Order Agreement with Matt Mazzei Chevrolet and Precision Wireless in an Amount not to Exceed Eighty-Two Thousand Seven-hundred and Eight Dollars and Seventy-six Cents ($82,708.76) for the Purchase of Two 2023 Dodge Charger (LDDE48) Base Model Police Vehicles and Purchase and Installation of the Necessary Equipment for One Vehicle from Precision Wireless plus a 10% Contingency for Potential Cost Overruns and Authorizing the City Manager to Execute said Agreement.” ________________________________________________________________________________________ Background:

During the 21/22 FY budget process, the Police Department requested the purchase of a 2022 Dodge Charger police vehicle and necessary equipment and installation from Precision Wireless with an estimated cost of $45,000.00. Due to unforeseen delays with production for the Dodge Charger police vehicles, the Police Department could notsecure the police vehicle during the 21/22 fiscal year. However, the Police Department received the necessary equipment for the buildout of the new police vehicle. The equipment remains at the Police Department pending arrival of the new Dodge Charger.

During the Fiscal Year 22/23 budget process, the Police Department requested to transfer the approved police vehicle funds, minus the equipment costs, from the 21/22 FY Vehicle Capital Outlay budget of $37,000.00 to the 22/23 FY Vehicle Capital Outlay Budget. The department also requested an additional Dodge Charger plus necessary equipment in the FY 22/23 budget, which would provide a total of two Dodge Chargers consistent with the Vehicle Replacement Plan. Vehicle Capital Outlay funds in the amount of $90,000 were reappropriated in the current FY 22/23 to reflect the purchase of two police vehicles. ________________________________________________________________________________________ Summary:

The Police Department is seeking to purchase two 2023 Dodge Charger police vehicles to serve the needs of the department and community. The purchase of the new police vehicles will ensure officer safety when responding to priority emergencies and reduce maintenance expenses that are anticipated in the future consistent with the Police Department’s Vehicle Replacement Plan.

The Police Department seeks to purchase two 2023 Dodge Charger Police Vehicles using budgeted funds within the adopted FY 22/23 budget. The department initially sought to buy one Dodge Charger in the 21/22 FY budget; however, due to production delays, the department could not secure the vehicle during the 21/22 fiscal year. The department transferred the approved funds in the FY 21/22 budget to the 22/23 FY budget and requested an additional vehicle and necessary equipment in the 22/23 FY budget to provide for two Dodge Chargers in the 22/23 FY budget.
38 City Council/Successor Agency Agenda Item Summary
Meeting Date: March 8, 2023
Item No. E.4

The Police Chief recommends purchasing the two police vehicles consistent with the Police department’s Vehicle Replacement Plan. The two vehicles are available and ready at the dealer pending Council’s approval of the purchase.
________________________________________________________________________________________ Options:

1. Authorize the agreement and direct City Manager to Execute the Purchase Order Agreement with Matt Mazzei Chevrolet and Precision Wireless or;

2. Provide alternative direction to staff
________________________________________________________________________________________ Subcommittee Recommendation:

This item was not brought forward to a subcommittee meeting. ________________________________________________________________________________________ Budget/Financial Impact:

The Vehicle Capital Outlay Fund (Fund 100-30-302-4410) within the Police Operations FY 22/23 Budget has a line item expenditure of $90,000 for the purchase of two new police vehicles. The expenditure was funded from a transfer from the Vehicle Reserve Fund. The purchase of the two new Police vehicle will reduce the fund balance of the Vehicle Reserve Fund.
________________________________________________________________________________________ Attachments:

1. Resolution

2. Exhibit A - Quote from Matt Mazzei Chevrolet
39 CITY OF CLOVERDALE

CITY COUNCIL
RESOLUTION NO. ____ –2023
ADOPT A RESOLUTION TITLED, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVERDALE

APPROVING A PURCHASE ORDER AGREEMENT WITH MATT MAZZEI CHEVROLET AND PRECISION

WIRELESS IN AN AMOUNT NOT TO EXCEED EIGHTY-TWO THOUSAND SEVEN-HUNDRED AND EIGHT DOLLARS AND SEVENTY-SIX CENTS ($82,708.76) FOR THE PURCHASE OF TWO 2023 DODGE CHARGER (LDDE48) BASE MODEL POLICE VEHICLES AND NECESSARY EQUIPMENT AND INSTALLATION FOR ONE VEHICLE FROM PRECISION WIRELESS PLUS A 10% CONTINGENCY FOR POTENTIAL COST OVERRUNS AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AGREEMENT.” WHEREAS, during the 21/22 FY budget process, the police department requested the purchase of a 2022 Dodge Charger police vehicle, necessary equipment and installation from Precision Wireless with an estimated cost of $45,000.00; and
WHEREAS, due to unforeseen delays with production for the Dodge Charger police vehicles, the police department was unable to secure the police vehicle during the 21/22 fiscal year; and WHEREAS, the police department received the necessary equipment for the buildout in the amount of $8,000; and
WHEREAS, during the 22/23 budget process, the police department requested to transfer the approved police vehicle funds, minus the equipment costs, from the 21/22 FY Vehicle Capital Outlay budget in the amount of $37,000.00 to the 22/23 FY Vehicle Capital Outlay Budget; and WHEREAS, the department also requested an additional Dodge Charger plus necessary equipment in the 22/23 FY budget, which would provide for two Dodge Chargers for the 22/23 FY budget; and WHEREAS, Vehicle Capital Outlay funds were appropriated to reflect the transfer; and WHEREAS, the Police Department is seeking to purchase two 2023 Dodge Charger police vehicles to better serve the needs of the department and community. The purchase of the new police vehicles will ensure officer safety when responding to priority emergencies and reduce maintenance expenses that are anticipated in the future.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cloverdale hereby approves the purchase ORDER agreement with Matt Mazzei Chevrolet based on the quote attached hereto as Exhibit A and Precision Wirelessfor purchase and installation of necessary equipment and authorizes the city manager to execute said purchase order agreements.
40 The foregoing Resolution No. ____-2023 was duly introduced and adopted by the City Council of the City of Cloverdale at its regular meeting held on the 8th day of March by the following roll call vote:

Ayes: (_)d Mayor Bagby
Noes: (_) None

Absent: (_)
Abstaining: (_) None
APPROVED: ATTEST:
______________________________ ____________________________________ Todd Lands, Mayor Michael Maloney, City Clerk
Exhibit A - Matt Mazzei Chevrolet Quote
41 42
43 44
45 City Council/Successor Agency
Agenda Item Summary Agenda Item:

Meeting Date:

E.5
March 8, 2023
Agenda Section
Consent
Staff Contact
Vanessa Apodaca, Interim City Engineer/Public Works Director Agenda Item Title:

Authorization to File a Financial Assistance Application, and Execute and Administer a Financial Assistance Agreement with the State Water Resources Board for the Cloverdale Recycled Water Feasibility Report and Planning Project
Recommended Council Action:

Adopt a Resolution Entitled, “A Resolution for Authorization to File a Financial Assistance Application, and Execute and Administer a Financial Assistance Agreement with the State Water Resources Board for the Cloverdale Recycled Water Feasibility Report and Planning Project.” Background/Summary:

The City Council authorized the preparation of a Recycled Water Feasibility Study and Planning Grant Application Project in October 2022. As part of the project, a Water Recycling Funding Program Planning Grant Application through the State Water Resources Control Board (SWRCB) is being prepared. Grant awards of up $500,000 are available. The grant would be used for preparation of the City’s Recycled Water Feasibility Study and may also assist in covering further planning and preliminary design efforts. The planning grant requires a 50 percent local match. Other funding sources can be used for the 50 percent local match.

The Water Recycling Funding Program Planning Grant Application requires the City to approve a resolution authorizing filing of a Financial Assistance Application and authorizing a City representative to file, execute, and administer a financial assistance agreement with the State.

The City concurrently applied for the WATERSMART: Water Recycling And Desalination Planning Grant from the U.S. Bureau of Reclamation on February 28, 2023, requesting $577,500. This Federal grant could be used as a local match for the SWRCB grant, for a total of up to approximately $1 million.

If both grant applications are successful, the entirety of the Recycled Water Feasibility Study would be paid for through grant funding, along with the possibility of remaining funds being available for further planning and preliminary design efforts. If one or more grant applications are unsuccessful, costs to fund the Recycled Water Feasibility Study would be paid for through water and/or wastewater impact fees.

Staff recommends that the City Council adopt the resolution authorizing the City Manager to file the Financial Assistance Application and execute and administer a financial assistance agreement for the City’s Recycled Water Feasibility Study and planning efforts.

Alternative Options:

1. Reject recommended resolution.

2. Provide alternative direction to staff.
46 City Council/Successor Agency Agenda Item Summary
Meeting Date: March 8, 2023
Item No. E.5

Budget/Financial Impact:

The SWRCB Water Recycling Funding Program Application could provide up to $500,000 for recycled water planning efforts and requires a local 50 percent match. Assuming both the SWRCB grant and USBR grant are successful, the City would have up to $1 million for recycled water planning efforts without providing additional local matching.

Subcommittee Recommendation:

This item was not considered by the Public Works Subcommittee.

Attachments:

1. Resolution
47 CITY OF CLOVERDALE

CITY COUNCIL
RESOLUTION NO. ____–2023

A RESOLUTION FOR AUTHORIZATION TO FILE A FINANCIAL ASSISTANCE APPLICATION,

AND EXECUTE AND ADMINISTER A FINANCIAL ASSISTANCE AGREEMENT WITH THE STATE

WATER RESOURCES BOARD FOR THE CLOVERDALE RECYCLED WATER FEASIBILITY REPORT

AND PLANNING PROJECT
WHEREAS, the City of Cloverdale (City) desires to maximize the beneficial use of City water resources; and
WHEREAS, the City produces secondary effluent at its wastewater treatment plant and discharges the water to on-site percolation ponds; and
WHEREAS, the City’s wastewater can be further treated to meet the State of California’s tertiary recycled water requirements; and
WHEREAS, tertiary recycled water is approved by the State for use in several non-potable applications and can offset the use of limited drinking water supplies; and WHEREAS, the State Water Resources Control Board provides matching grants of up to $500,000 for preparation of a recycled water feasibility study and planning; and WHEREAS, the City Of Cloverdale City Council (“City Council”) authorized preparation of a Recycled Water Feasibility Study and Planning Grant Application on the 12th day of October 2022; and WHEREAS, State Water Resources Control Board Water Recycling Funding Program Planning Grant Application requires the City to approve a resolution authorizing filing of a Financial Assistance Application and authorizing a City representative to file, execute, and administer a financial assistance agreement with the State.

NOW THEREFORE BE IT RESOLVED BY THE City Council of the City of Cloverdale does hereby authorize and direct the City Manager as the City’s authorized representative as follows:

1. The City Manager (“Authorized Representative”) is hereby authorized and directed to negotiate, execute, and file, for and on behalf of the City of Cloverdale, a Financial Assistance Application for a grant agreement from the State Water Resources Control Board for the planning, design, and construction of the Cloverdale Recycled Water Feasibility Study (the “Project”);

2. The City Manager is hereby authorized to provide the assurances, certifications, and commitments required for the financial assistance application, including executing a financial assistance agreement from the State Water Resources Control Board and any amendments or changes thereto;

3. The City Manager is hereby designated to represent the City of Cloverdale in carrying out its responsibilities under the grant agreement, including certifying disbursement requests on behalf of the City and compliance with applicable state and federal laws. 48 The foregoing Resolution No. ____-2023 was duly introduced and adopted by the City Council of the City of Cloverdale at its regular meeting held on the 8th day of March 2023, by the following roll call vote:

AYES: (_)
NOES: (_)
ABSTAIN: (_)
ABSENT: (_)
None
APPROVED: ATTEST:
______________________________ ____________________________________ Todd Lands, Mayor Michael Maloney, City Clerk
49 City Council/Successor Agency
Agenda Item Summary Agenda Item:

Meeting Date:

E.6
March 8, 2023
Agenda Section
Consent
Staff Contact
Vanessa Apodaca, Interim City Engineer/Public Works Director Agenda Item Title:

Authorization to Apply for, Receive, and Enter Into a Cooperative Agreement, and Administer a Grant for the WATERSMART: Water Recycling and Desalination Planning Grant for the Cloverdale Recycled Water Feasibility Report and Planning Project
Recommended Council Action:

Adopt a Resolution Entitled, “Resolution of the City of Cloverdale City Council Authorizing the City Manager, or Designee, to Apply for, Receive, and Enter Into a Cooperative Agreement, and Administer a Grant for the WATERSMART: Water Recycling and Desalination Planning Grant.” Summary:

The City authorized the preparation of a Recycled Water Feasibility Study in October 2022. To assist with recycled water project planning costs, the City applied for the WATERSMART: Water Recycling and Desalination Planning Grant from the U.S. Bureau of Reclamation (USBR) on February 28, 2023. The City requested $577,500 in Federal grant funding for the planning project which will consist of a feasibility study, basis of design and predesign report, and public outreach and engagement. The planning grant requires a 50 percent non-Federal match. Other funding sources can be used for the 50% non-Federal match.

The City is also preparing a Water Recycling Funding Program Planning Grant Application through the State Water Resources Control Board (SWRCB). Grant awards of up $500,000 are available, and the grant requires a 50 percent local match. If both grant applications are successful, the State grant would be used as the nonFederal match for the USBR WATERSMART grant.

The USBR WATERSMART: Water Recycling and Desalination Planning Grant requires the City to adopt a resolution to authorize applying, receiving, and entering into a cooperative agreement and administering the grant with USBR.

If both grant applications are successful, the entirety of the Recycled Water Feasibility Study would be paid for through grant funding along with the possibility of remaining funds being available for further planning and preliminary design efforts. If one or more grant applications are unsuccessful, costs to fund the Recycled Water Feasibility Study would be paid for through water and/or wastewater impact fees.

Staff recommends that the City Council authorize the City Manager to apply for, receive, and enter into a cooperative agreement, and administer a grant for the WATERSMART: Water Recycling and Desalination Planning Grant for the Cloverdale Recycled Water Feasibility Report and Planning Project.

Alternative Options:

1. Reject recommended resolution.

2. Provide alternative direction to staff.
50 City Council/Successor Agency Agenda Item Summary
Meeting Date: March 8, 2023
Item No. E.6

Budget/Financial Impact:

The USBR WATERSMART: Water Recycling and Desalination Planning Grant could provide up to $577,500 and requires a 50 percent non-Federal match. Assuming both the SWRCB grant and USBR grant are successful, the City would have up to $1 million in external funding for recycled water planning efforts and would need to provide up to $77,500 in local match.

Subcommittee Recommendation:

This item was not considered by the Public Works Subcommittee.

Attachments:

1. Resolution
51 CITY OF CLOVERDALE

CITY COUNCIL
RESOLUTION NO.

RESOLUTION OF THE CITY OF CLOVERDALE CITY COUNCIL AUTHORIZING THE CITY MANAGER

TO APPLY FOR, RECEIVE, AND ENTER INTO A COOPERATIVE AGREEMENT, AND ADMINISTER A GRANT FOR THE WATERSMART: WATER RECYCLING AND DESALINATION PLANNING GRANT WHEREAS, the City desires to maximize the beneficial use of City water resources; and WHEREAS, the City produces secondary effluent at its wastewater treatment plant and discharges the water to on-site percolation ponds; and
WHEREAS, the City’s wastewater can be further treated to meet the State of California’s tertiary recycled water requirements; and
WHEREAS, tertiary recycled water is approved by the State for use in several non-potable applications and can offset the use of limited drinking water supplies; and WHEREAS, the United States Bureau of Reclamation (USBR) provides match grants of up to $1,000,000 for preparation of a recycled water feasibility study and other project planning phase activities; and WHEREAS, the City Of Cloverdale City Council (“City Council”) authorized preparation of a Recycled Water Feasibility Study on the 12th day of October 2022; and WHEREAS, the City submitted the USBR WATERSMART: Water Recycling And Desalination Planning Grant on February 28, 2023; and
WHEREAS, USBR WATERSMART: Water Recycling And Desalination Planning Grant requires the City to adopt a resolution to authorize applying, receiving, and entering into a cooperative agreement and administering the grant with USBR.

BE IT RESOLVED, by the City Of Cloverdale City Council (“City Council”) AS FOLLOWS:

1. The City Manager is hereby authorized and directed to sign and file, for and on behalf of the City of Cloverdale (“City”), a WATERSMART: Water Recycling And Desalination Planning Grant for a grant from the U.S. Bureau of Reclamation to complete the City Of Cloverdale Recycled Water Planning Program;

2. The City Manager is hereby authorized to acknowledge and approve of the application and the information submitted for consideration, and is further authorized to certify that the City has and will provide the amount of funding and/or in-kind contributions specified in the funding plan;

3. The City Council hereby agrees and further does authorize the City Manager to certify that the City has and will comply with all statutory and regulatory requirements related to any grant; and
52 4. The City Manager is hereby authorized to negotiate and execute a grant and any amendments or change order thereto on behalf of the City and will work with USBR to meet established deadlines for entering into a cooperative agreement.

The foregoing Resolution No. ____-2023 was duly introduced and adopted by the City Council of the City of Cloverdale at its regular meeting held on the 8th day of March 2023, by the following roll call vote:

AYES: (_)
NOES: (_)
ABSTAIN: (_)
ABSENT: (_)
None
APPROVED: ATTEST:
______________________________ ____________________________________ Todd Lands, Mayor Michael Maloney, City Clerk
53 City Council/Successor Agency
Agenda Item Summary Agenda Item:

Meeting Date:

G.1
March 8, 2023
Agenda Section:

New Business
Staff Contact:

David Kelley, City Manager
Agenda Item Title:

Resolution opposing Initiative No. 21-0042A1, the Taxpayer Protection and Government Accountability Act. ________________________________________________________________________________________ Recommended Council Action(s):

Adopt a Resolution entitled, “A Resolution of the City Council of the City of Cloverdale Opposing Initiative 21- 0042a1 and Authorizing The Mayor To Sign A Letter Of Opposition To Initiative 21-0042a1 on behalf of the City Council.”
________________________________________________________________________________________ Background:

On January 4, 2022, the California Business Roundtable filed the “Taxpayer Protection and Government Accountability Act” or AG# 21-0042A1. On Feb. 1, 2023, the measure qualified for the November 2024 ballot.

The Taxpayer Protection and Government Accountability Act would amend the California Constitution with provisions that limit voters’ authority and input, adopt new and stricter rules for raising taxes and fees, and may make it more difficult to impose fines and penalties for violation of state and local laws.

The measure puts billions of local government tax and fee revenues at risk statewide with related core public service impacts. The measure would have significant negative impacts on the City of Cloverdale operations and core service delivery. The proposed constitutional initiative is sponsored by the California Business Roundtable contains the following provisions.

Fees and Charges:
• Except for licensing and other regulatory fees, fees and charges may not exceed the “actual cost” of providing the product or service for which the fee is charged. “Actual cost” is the “minimum amount necessary.” The burden to prove the fee or charge does not exceed “actual cost” is changed to “clear and convincing” evidence.
• Requires fees and charges paid for the use of local and state government property and the amount paid to purchase or rent government property to be “reasonable.” These fees and charges are currently allowed to be market-based. Whether the amount is “reasonable” (introducing a new legal standard aiming to force below market fee and charge amounts) must be proved by “clear and convincing evidence.” The standard may significantly reduce the amount large companies (e.g., oil, utilities, gas, railroads, garbage/refuse, cable, and other corporations) will pay for the use of local public property.
• Prohibits fees on new development based on vehicle miles traveled.

Taxes:
• Taxes and fees adopted after Jan. 1, 2022, that do not comply with the new rules, are void unless reenacted.
54 City Council/Successor Agency Agenda Item Summary
March 8, 2023
Item No. G.1

• Invalidates Upland decision that allows a majority of local voters to pass special taxes. The measure specifies that taxes proposed by the initiative are subject to the same rules as taxes placed on the ballot by a city council.
• Expressly prohibits local advisory measures which allow local voters to express a preference for how local general tax dollars should be spent.
• Requires voter approval to expand existing taxes (e.g., Utility, Transient Occupancy) to new territory (e.g., annexations) or to expand the tax base (e.g., new utility service) • New taxes can only be imposed for a specific time period. • City charters may not be amended to include a tax or fee. • All state taxes require majority voter approval.

Fines and Penalties:
• May require voter approval of fines, penalties, and levies for corporations and property owners that violate state and local laws unless a new, undefined adjudicatory process is used to impose the fines and penalties.
________________________________________________________________________________________ Summary:

The League of California Cities, along with a broad coalition of local governments, labor and public safety leaders, infrastructure advocates, and businesses, strongly opposes this initiative.

Local government revenue-raising authority is currently substantially restricted by state statute and constitutional provisions, including the voter approved provisions of Proposition 13 of 1978, Proposition 218 of 1996, and Proposition 26 of 2010. The Taxpayer Protection and Government Accountability Act adds and expands restrictions on voters and local government tax and fee authority.

Fees and Taxes
Local governments levy a variety of fees and other charges to provide core public services. Major examples of affected fees and charges are:
• Nuisance abatement charges, such as for weed, rubbish, and general nuisance abatement to fund community safety, code enforcement, and neighborhood cleanup programs. • Commercial franchise fees.
• Emergency response fees, such as in connection with DUI. • Advanced Life Support (ALS) transport charges.
• Document processing and duplication fees.
• Transit fees, tolls, parking fees, and public airport and harbor use fees. • Facility use charges, fees for parks and recreation services, garbage disposal tipping fees.

Virtually every city, county, and special district must regularly (e.g., annually) adopt increases to fee rates and charges and revise rate schedules to accommodate new users and activities. Most of these would be subject to new standards and limitations under threat of legal challenge. Based on the current volume of fees and charges imposed by local agencies, including council-adopted increases to simply accommodate inflation, Cal Cities estimates the amount of local government fee and charge revenue at risk is approximately $2 billion per year including those adopted since Jan. 1, 2022. Over ten years, $20 billion of local government fee and charge revenues will be at heightened legal peril.
55 City Council/Successor Agency Agenda Item Summary
March 8, 2023
Item No. G.1

Hundreds of local tax measures were approved in 2022 that likely do not comply with the provisions of the initiative. Nearly $2 billion of annual revenues from these voter-approved measures will cease a year after the effective date of the measure, reducing the local public services funded by these measures, unless the tax is re-submitted for voter approval.

Reductions on local government tax revenues have impacts on core services and infrastructure including fire and emergency response, law enforcement, streets and roads, drinking water, sewer sanitation, parks, libraries, public schools, affordable housing, homelessness prevention, and mental health services.

Fines and Penalties
Under existing law, cities are required to provide due process before imposing a penalty or fine for violation of its municipal code:

1. A local agency must adopt administrative procedures that govern imposing fines and penalties, including providing a reasonable period of time for a person responsible for a continuing violation to correct or remedy the violation [Gov't Code 53069.4].

2. Notice must be given to the violating party before imposing the penalty; and give the party an opportunity to be heard and present any facts or arguments [Merco Construction Engineers v.

Los Angeles Unified School District (1969) 274 CA 2d 154, 166].

3. The fine may not be "excessive" [U.S. Constitution amendments VIII and XIV].

The initiative converts administratively imposed fines and penalties into taxes unless a new, undefined, and ambiguous “adjudicatory due process” is followed. This provision may put at risk authority to impose fines and penalties for violations of state and local law.
________________________________________________________________________________________ Options:

1. Do not adopt the Resolution opposing Initiative No. 21-0042A1; or

2. Provide alternative direction to City staff and/or refer policy matter to a Council Subcommittee for further deliberation and policy development.
________________________________________________________________________________________ Subcommittee Recommendation:

Initiative No. 21-0042A1 was discussed by the Finance Administration & Police l Subcommittee prior to the matter being reviewed by the City Council.
________________________________________________________________________________________ Budget/Financial Impact:

The Taxpayer Protection and Government Accountability Act is forecast to will take billions of dollars away from local government services statewide..
________________________________________________________________________________________ Attachments:

1. Resolution

2. Exhibit A - Letter of Opposition Initiative 21-0042A1

3. CBRT Summary Outline Prepared by the League of California Cities

4. Fiscal and Program Effects of Initiative 21-0042A1 on Local Governments 56 CITY OF CLOVERDALE

CITY COUNCIL
RESOLUTION NO. ___-2023
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVERDALE OPPOSING INITIATIVE 21-0042A1 AND AUTHORIZING THE MAYOR TO SIGN A LETTER OF OPPOSITION TO INITIATIVE 21-0042A1 ON BEHALF OF THE CITY COUNCIL.

WHEREAS, an association representing California’s wealthiest corporations and developers is spending millions to push a deceptive proposition aimed for the November 2024 statewide ballot; and WHEREAS, the measure includes undemocratic provisions that would make it more difficult for local voters to pass measures needed to fund local services and infrastructure, and would limit voter input by prohibiting local advisory measures where voters provide direction on how they want their local tax dollars spent; and
WHEREAS, the measure creates new constitutional loopholes that allow corporations to pay far less than their fair share for the impacts they have on our communities, including local infrastructure and our environment; and
WHEREAS, the measure may make it much more difficult for state and local regulators to issue fines and levies on corporations that violate laws intended to protect our environment, public health and safety, and our neighborhoods; and
WHEREAS, the measure puts billions of dollars currently dedicated to local services at risk and could force cuts to fire and emergency response, law enforcement, public health, parks, libraries, affordable housing, services to support homeless residents, mental health services, and more; and THEREFORE, BE IT RESOLVED that the City Council of the City of Cloverdale opposes Initiative 21- 0042A1.

BE IT FURTHER RESOLVED, that the City of Cloverdale will join the No on Initiative 21-0042A1 coalition, a growing coalition of public safety, education, labor, local government, and infrastructure groups throughout the state and directs the Mayor to sign a letter of opposition attached hereto as Exhibit A on behalf of the City Council.

BE IT FURTHER RESOLVED, that the City Council direct staff to email a copy of this adopted resolution to the League of California Cities at [email protected].

The foregoing Resolution was duly introduced and adopted by the City Council of the City of Cloverdale at its regular meeting held on the 8th day of March, 2023 by the following roll call vote:

Ayes:

Noes:

Absent:

Abstain:

APPROVED: ATTEST:
______________________________ ____________________________________ Todd Lands, Mayor Mike Maloney, City Clerk
Exhibit A –City of Cloverdale Letter of Opposition to Initiative 21-0042A1 57 March 8, 2023
Bismarck Obando
Director of Public Affairs, League of California Cities 1400 K Street, Suite 400
Sacramento, CA 95814
RE: Letter Opposing Initiative 21-0042A1
On March 8, 2023, the City of Cloverdale voted to oppose Initiative 21-0042A1, a deceptive, developer-sponsored proposition aimed for the November 2024 statewide ballot that would significantly jeopardize cities’ ability to provide essential services and infrastructure for our residents.

The measure includes undemocratic provisions that would make it more difficult for local voters to pass measures needed to fund local services and projects and would limit voter input by prohibiting local advisory measures where voters can express a preference on how they want their local tax dollars spent.

This measure creates new constitutional loopholes that allow corporations to pay far less than their fair share for the impacts they have on our communities, including impacts on local infrastructure and our environment.

This measure also may make it much more difficult for state and local regulators to issue fines and levies on corporations that violate laws intended to protect our environment, public health and safety, and our neighborhoods.

Unless defeated, the measure puts billions of dollars currently dedicated to local services at risk, and could force cuts to fire and emergency response, law enforcement, public health, parks, libraries, affordable housing, services to support homeless residents, mental health services, and more.

The Initiative would require voter approval to expand an existing approved local tax to new territory (annexations) that are currently in process. The measure would require additional tax measures and would deter annexations of property that is currently under review by the City.

The measure benefits wealthy corporations and real estate developers while decimating our local communities and neighborhoods.

You may list the City of Cloverdale in formal opposition to Initiative #21-0042A1 and include our city as part of the growing coalition of public safety, labor, local government, infrastructure advocates, and other organizations throughout the state opposed to this deceptive proposition.

Sincerely,
Todd Lands
Mayor
City of Cloverdale
Cc: Cloverdale City Council
Sara Sanders, Regional Public Affairs Manager
League of California Cities
58 1
The Taxpayer Protection and Government Accountability Act Initiative No. 21-0042A11
Feb. 1, 2023
Effective date: Any new or increased tax or fee adopted by the Legislature, a city council, or the local voters after January 1, 2022, must comply with the Act’s new rules.

Voters
• Local advisory measures are prohibited. No measure may appear on the ballot asking for approval of a general tax that would allow the voters to express a preference for how the revenue from the general tax will, could, or should be used.
• Overturns Upland decision which upheld a special tax that had been placed on the ballot by the voters to be approved by a majority vote. Taxes proposed by initiative will be subject to the same rules as taxes placed on the ballot by a city council.
• Voters may not amend a city charter to impose, extend, or increase a tax or fee.

Local taxes
• Requires voter approval in order to apply an existing tax:
o to territory that is annexed.
o to a new service or product, for example when a utility user tax is applied to a new service.
• All new or increased taxes adopted after Jan. 1, 2022, must include a sunset date.

State taxes
• All new or increased state taxes require statewide voter approval. • Prohibits a property tax “surcharge” (increase). Prohibits any allocation of property tax to the state.
1 This is a summary of some of the more significant provisions of the Act. Please review the Act for a complete understanding of the changes it makes to the Constitution. 59 2
Fees and charges
• Fees and charges for services and permits may not exceed the “actual cost” of providing the product or service for which the fee is charged. “Actual cost” is the “minimum amount necessary.” Examples include planning services, excavation and encroachment permits, preparation of candidate statement, and permit parking.
• State and cities have the burden of proving by “clear and convincing evidence” that a fee/charge is not a tax, that the amount is reasonable, and that it does not exceed “actual cost.”
• Franchise fees — historically considered fees, not taxes — will more likely be considered taxes due to the elimination of an existing category of “fee” and the requirement that charges to entrance, purchase, rental, or lease of government property be “reasonable.” The state and cities issue franchises to oil companies, utilities, gas companies, railroads, garbage companies, cable companies, and other corporations.
• No fee or charge or exaction regulating vehicle miles traveled can be imposed as a condition of property development or occupancy.

Fines and penalties (administrative enforcement of state law and municipal codes)
• May require voter approval of fines and penalties for corporations and property owners that violate state and local laws unless a new, undefined adjudicatory process is used to impose the fines and penalties. Examples include nuisance abatement, organic waste reduction requirements, and failure to maintain a vacant property.
60 CaliforniaCityFinance.Com
Fiscal and Program Effects of
Initiative 21-0042A1 on Local Governments
If Initiative 21-0042A1 is placed on the ballot and passed by voters, it will result in:
 Over $20 billion of local government fee and charge revenues over 10 years placed at heightened legal peril. Related public service reductions across virtually every aspect of city, county, special district, and school services especially for drinking water, sewer sanitation, and public health and safety.  About $2 billion of revenues each year from fees and charges adopted after January 1, 2021 subject to legal peril.
1  Over $2 billion dollars of annual revenues from dozens of tax measures approved by voters between January 1, 2022 and the effective date of the act2 subject to additional voter approval if not in compliance with the initiative.
 Indeterminable legal and administrative burdens and costs on local government from new and more empowered legal challenges, and bureaucratic cost tracking requirements.  The delay and deterrence of municipal annexations.
 Substantially higher legal and administrative cost of public infrastructure financing which will delay and deter new residential and commercial development.
 Service and infrastructure declines including in fire and emergency response, law enforcement, public health, drinking water, sewer sanitation, parks, libraries, public schools, affordable housing, homelessness prevention and mental health services.

1. Local Government Taxes and Services Threatened
With regard to taxes, Initiative 21-0042A1:
 Prohibits advisory, non-binding measures as to use of tax proceeds on the same ballot. o Voters may be less informed and more likely to vote against measures.  Eliminates the ability of special tax measures proposed by citizen initiative to be enacted by majority voter approval (Upland).3
o Because the case law regarding citizen initiative special taxes approved by majority vote (Upland) is so recent, it is unknown how common these sorts of measures might be in the future. This initiative would prohibit such measures after the effective date of the initiative. Any such measures adopted after January 1, 2022 through the effective date of the Act should it pass would be void a year after the effective date of the initiative.  Requires that tax measures include a specific duration of time that the tax will be imposed. This seems to require that all tax increases or extensions contain a sunset (end date). o This would require additional tax measures to extend previously approved taxes.  A city charter may not be amended to impose, extend, or increase a tax might interfere with the ability of cities that do not already have such authority in their charters to adopt Property Transfer Taxes. o There are no more than a few of these every few years, but it is a valuable tax for those that adopt it.
1 Assumes fee increases since January 1, 2022 would be subject to possible legal challenge if not adopted in compliance with the Initiative.
2 The effective date of the initiative would be sometime in December 2024, the date the California Secretary of State certifies the election results of the November 5, 2024 election.
3 Unlike the initiative 17-0050, this initiative does not eliminate that ability of cities and counties to adopt general taxes by majority voter approval.
2217 Isle Royale Lane • Davis, CA • 95616-6616
Phone: 530.758.3952 • Fax: 530.758.3952
Rev. January 14, 2023
61 – 2 – rev January 14, 2023
CaliforniaCityFinance.com
 Requires that a tax measure adopted after January 1, 2022 and before the effective date of the initiative that was not adopted in accordance with the measure be readopted in compliance with the measure or will be void twelve months after the effective date of the initiative. o If past election patterns and elections in 2022 are an indication, over 200 tax measures approving more than $2 billion annual revenues to support local public services would not be in compliance and would be subject to reenactment. Most will be taxes without a specific end date and special taxes (including parcel taxes). Because there is no regularly scheduled election within the 12 months following the effective date of the initiative, the measures would each require declaration of emergency and unanimous vote of the governing board to be placed on a special election ballot within a year for approval or the tax will be void after that date. I would expect most to succeed, but some will not, in particular citizen initiative majority vote special taxes which would have to meet a higher voter approval threshold to continue.  Requires voter approval to expand an existing tax to new territory (annexations). This would require additional tax measures and would deter annexations and land development in cities. o If a tax is "extended" to an annexed area without a vote after January 1, 2022, it will be void 12 months later until brought into compliance. Because there is no regularly scheduled election within the 12 months following the effective date of the initiative, such extensions would each require unanimous vote of the agency board to be placed on a special election ballot or would be void a year later.

1.a. Number of Measures and Value of Local Taxes at Risk4 Over a hundred local measures were approved in 2022 that likely do not comply with the provisions of Initiative 21-0042A1. Nearly $2 billion of annual revenues from these voter approved measures will cease a year after the effective date of the measure, reducing the local public services funded by these measures. We can expect a similar volume of measures in 2024 and a similar volume of non-compliance. So the combined total of annual local funding directly affected by Initiative 21-0042A1 due to its retroactivity provision is about $4 billion.

Citizen Initiative Special Taxes in 2022.

Special taxes placed on the ballot by citizen initiative and approved after January 1, 2022 by a majority but less than two-thirds of the voters are out of compliance with Initiative 21-0042A1.

On June 7, 2022, there were three local special tax measures placed on the ballot by citizen initiative. Two failed to get majority voter approval. A one percent transactions and use tax (sales tax) for the John C. Fremont Healthcare District in Mariposa County received 69.6 percent approval, over the two thirds needed for any special tax under California Constitution Article XIIIC. So this measure was passed in compliance with Initiative 21- 0042A1.

On November 8, 2022, there were 14 local special taxes placed on the ballot by citizen initiative. Seven of these 4 Source: Compilation and summary of data from County elections offices.

June 2022 Initiative Special Taxes - majority voter approval Agency Name County Tax/Fee Rate
Estimated
Annual Revenue Use Sunset YES%
John C. Fremont
Healthcare District Mariposa Measure N Transactions & Use Tax 1 cent $ 150,000 hospital 40yrs 69.6% PASS County of Kings Kings Measure F Transactions
& Use Tax 1/2 cent $ 11,700,000 fire none 37.6% FAIL
Manhattan Beach
USD Los Angeles Measure A School Parcel Tax $1095/yr $ 12,000,000 schools 12yrs 31.2% FAIL 62 – 3 – rev January 14, 2023
CaliforniaCityFinance.com
measures failed with less than majority voter approval. The other seven measures received majority, but less than two-thirds, voter approval. These measures passed under current law but are out of compliance with Initiative 21- 0042A1. Taken together these seven taxes will provide estimated annual revenues of from $900,000 to $1.4 billion in support of parks and recreation, zoo, library, affordable housing, transportation, homelessness prevention, and schools in these communities.

Non-Specific Tax Durations in 2022
Voters approved 106 measures in June 2022 (10) and November 2022 (96) that do not provide a specific duration of time that the tax will be imposed (end date). Typically, the ballot titles for these measures state that the tax would be imposed “until ended by voters.” Four of these measures also did not include any estimate of the annual revenues that the tax would generate, another violation of initiative 21-0042A1. Taken together, these approved local measures generate $561 million per year that will expire a year after the effective date of the initiative if Initiative 21-0042A1 passes.

November 2022 Initiative Special Taxes - majority voter approval Agency Name County Tax/Fee Rate
Estimated
Annual Revenue Use Sunset YES%
Crockett Community
Services District Contra Costa Measure L Parcel Tax $50/parcel $ 60,000 parks/recr none 62.8% PASS Oakland Alameda Measure Y Parcel Tax $68/parcel $ 12,000,000 zoo 20yrs 62.5% PASS County of Mendocino Measure O Transactions
& Use Tax
1/8 cent then 1/4
cent in 2027 $ 4,000,000 library none 60.8% PASS
Los Angeles Los Angeles Measure ULA Property
Transfer Tax
4% if >$5m, 5.5%
if >$10m $600 m to $1.1 b affordable housing none 57.3% PASS County of Sacramento Measure A Transactions
& Use Tax same 1/2 cent $ 212,512,500 transportati
on
40yrs 55.3% PASS
San Francisco Proposition M Business
Operations Tax
$2500-$5000/
vacant resid unit $ 20,000,000 housing 30yrs 54.5% PASS Santa Monica Los Angeles Measure GS Property
Transfer Tax
$56/$1000 if
>$8m $ 50,000,000
schools,
homelessne
ss, afford.
housing
none 53.3% PASS
Total $900,000 to
$1.4 billion
Agency Name County Tax/Fee Rate
Estimated
Annual Revenue Use Sunset YES%
County of Calaveras Measure A Transactions
& Use Tax 1 cent $ 5,000,000 fire none 49.4% FAIL
South San Francisco
(for Schools) San Mateo Measure DD School Parcel Tax $2.50/sf $ 55,900,000 schools none 47.2% FAIL County of Fresno (for CSU ) Measure E Transactions
& Use Tax
1/5 ct,
1/40 ct (Reedley) $ 36,000,000 Calif State Univ 20yrs 46.9% FAIL Santa Cruz Santa Cruz Measure N Parcel Tax $6k/vacant SFU xxx vacant property
xxx 44.2% FAIL
County of Monterey Measure Q Parcel Tax $49/parcel $ 5,500,000 childcare 10yrs 41.1% FAIL San Francisco City
College
San
Francisco Measure O School Parcel Tax $150/sfu $ 37,000,000 schools 10yrs 36.7% FAIL Morro Bay San Luis
Obispo Measure B Parcel Tax $120+/parcel $ 680,000 harbor none 36.0% FAIL Inverness Public
Utility District Marin Measure O Parcel Tax $0.20/sf, $150/vacant $ 276,000 fire none 27.0% FAIL 63 – 4 – rev January 14, 2023
CaliforniaCityFinance.com
Measures in 2022 with Non-Specific Durations
Agency Name County Tax/Fee Rate
Annual
Revenue Use Sunset YES%
Oakland Alameda Measure T Business Tax
General various $ 20,900,000 none 71.4% PASS
Culver City Los Angeles Measure BL Business Tax
General various $ 10,000,000 none 60.5% PASS
El Segundo Los Angeles Measure BT Business Tax
General various $ 3,000,000 none 51.2% PASS
Pico Rivera Los Angeles Measure AB Business Tax
General various $ 5,800,000 none 75.5% PASS
Santa Ana Orange Measure W Business Tax
General various neutral none 64.8% PASS
Tracy San Joaquin Measure B Business Tax
General various $ 3,200,000 none 72.6% PASS
Burlingame San Mateo Measure X Business Tax
General various $ 2,500,000 none 75.1% PASS
Los Gatos Santa Clara Measure J Business Tax
General various $ 1,100,000 none 53.4% PASS
Santa Clara Santa Clara Measure H Business Tax
General
$45/employee,
$15/rental unit $ 6,000,000 none 59.5% PASS
Brisbane San Mateo Measure O Business Tax
lodging busn $2.50/rm/day $ 250,000 none 69.2% PASS
East Palo Alto San Mateo Measure L Business Tax
resid. rentals

2.5%
grossRcpts $ 1,480,000 none 69.9% PASS
County of Santa Cruz Unincorporated Measure C Busn Tax - disp cups 12.5cents/cup $ 700,000 none 68.2% PASS
South Lake Tahoe El Dorado Measure G Busn Tax
Cannabis
6% retail,
manufacturing $ 950,000 none 62.9% PASS
McFarland Kern Measure O Busn Tax
Cannabis
8% of gross
receipts retail, $ 1,800,000 none 63.5% PASS
Avenal Kings Measure C Busn Tax
Cannabis
$25+/sf or
15% gr rcpts $ 600,000 none 61.8% PASS
Baldwin Park Los Angeles Measure CB Busn Tax
Cannabis
4%
grossRcpts $ 300,000 none 51.3% PASS
Claremont Los Angeles Measure CT Busn Tax
Cannabis
4%-7% gr
rcpts, $1- $ 500,000 none 61.1% PASS
County of Los Angeles Unincorporated Measure C Busn Tax Cannabis
4% gross
receipts retail, $ 15,170,000 none 60.1% PASS
Cudahy Los Angeles Measure BA Busn Tax
Cannabis
15%
grossRcpts $ 3,600,000 none 54.0% PASS
El Segundo Los Angeles Measure Y Busn Tax
Cannabis
10%
GrossRcpt, $ 1,500,000 none 72.8% PASS
Hermosa Beach Los Angeles Measure T Busn Tax
Cannabis
10%
GrossRcpt, $ 1,500,000 none 67.6% PASS
Lynwood Los Angeles Measure TR Busn Tax
Cannabis 5%to10% $ 3,000,000 none 66.4% PASS
Santa Monica Los Angeles Measure HM Busn Tax
Cannabis
10% gross
Rcpts $ 5,000,000 none 66.4% PASS
South El Monte Los Angeles Measure CM Busn Tax
Cannabis
6% special
excise tax on $ 126,000 none 53.7% PASS
Monterey Monterey Measure J Busn Tax
Cannabis 6% grossRcpt $ 1,300,000 none 65.2% PASS
Pacific Grove Monterey Measure N Busn Tax
Cannabis 6% grossRcpt $ 300,000 none 70.8% PASS
Huntington Beach Orange Measure O Busn Tax
Cannabis
6% retail, 1%
other $ 600,000 none 54.7% PASS
64 – 5 – rev January 14, 2023
CaliforniaCityFinance.com
Notes
?= Ballot measure title did not include an estimate of annual revenues, also not in compliance with Initiative 21-0042A1. n/a*= Arcadia Measure SW passed but sports betting remains illegal after the failure of Propositions 26 and 27 on the November statewide ballot.

Measures in 2022 with Non-Specific Durations
Agency Name County Tax/Fee Rate
Annual
Revenue Use Sunset YES%
Laguna Woods Orange Measure T Busn Tax
Cannabis
4%-10% of
gross receipts $ 750,000 none 61.1% PASS
Corona Riverside Measure G Busn Tax
Cannabis
9% of gross
receipts for $ 5,000,000 none 61.6% PASS
Montclair San Bernardino Measure R Busn Tax
Cannabis
7%
grossRcpts $ 3,500,000 none 70.3% PASS
County of San Diego Unincorporated Measure A Busn Tax
Cannabis
6% retail, 3%
distribution, $ 5,600,000 none 57.4% PASS
Encinitas San Diego Measure L Busn Tax
Cannabis
4% to 7% of
gross receipts $ 1,400,000 none 65.1% PASS
Healdsburg Sonoma Measure M Busn Tax
Cannabis 8% grossRcpt $ 500,000 none 72.7% PASS
Exeter Tulare Measure B Busn Tax
Cannabis
10% retail and
other, $10/sf ? none 66.5% PASS
Tulare Tulare Measure Y Busn Tax
Cannabis
10% retail and
other, $10/sf ? none 65.2% PASS
Woodland Yolo Measure K Busn Tax
Cannabis
10%
grossRcpts
? none 66.2% PASS
Redlands San Bernardino Measure J Busn Tax
Distrib centers
from $0.047/sf
to $0.105/sf $ 530,000 none 53.5% PASS
Arcadia Los Angeles Measure SW Busn Tax
Sports Betting
5%
grossRcpts
n/a* none 63.9% PASS
Albany Alameda Measure K ParcelTax $0.074+/sf $ 1,950,000 fire/EMS none 76.0% PASS Cameron Park Airport
District El Dorado Measure J ParcelTax by $600 to $900/parcel $ 117,900 airport/ streets none 78.2% PASS Highlands Village
Lighting Benefit Zone El Dorado Measure L ParcelTax $140+/parcel $ 10,920 streets none 86.3% PASS Knolls Property
Owners CSD El Dorado Measure P ParcelTax by $300+ to $600+/parcel $ 8,400 streets none 75.5% PASS Sundance Trail Zone of
Benefit El Dorado Measure C ParcelTax $600+/yr $ 24,000 roads none 73.2% PASS South Pasadena Los Angeles Measure LL ParcelTax xxx ? library none 86.2% PASS River Delta Fire District Sacramento Measure H ParcelTax $90/yr $ 130,000 fire none 72.1% PASS Emeryville Alameda Measure O PropTransfTax $15/$1000 if $1m-$2m, $ 5,000,000 none 71.6% PASS
San Mateo San Mateo Measure CC PropTransfTax by 1% to 1.5% if >$10m $ 4,800,000 none 71.8% PASS
Alameda Alameda Measure F TOT by 4% to 14% $ 910,000 none 59.2% PASS Clovis Fresno Measure B TOT by 2% to 12% $ 500,000 none 69.7% PASS Kerman Fresno Measure G TOT 10% $ 40,000 none 62.3% PASS Trinidad Humboldt Measure P TOT by 4% to 12% $ 65,000 none 77.6% PASS Imperial Imperial Measure G TOT by 4% to 12% $ 600,000 none 56.2% PASS Arcadia Los Angeles Measure HT TOT by 2% to 12% $ 730,000 none 54.1% PASS Santa Monica Los Angeles Measure CS TOT by 1%, 3%
home shares $ 4,100,000 none 73.7% PASS
65 – 6 – rev January 14, 2023
CaliforniaCityFinance.com
Measures in 2022 with Non-Specific Durations
Agency Name County Tax/Fee Rate
Annual
Revenue Use Sunset YES%
Anaheim Orange Measure J TOT online travel
companies $ 3,000,000 none 59.2% PASS
La Palma Orange Measure P TOT by 4% to 12% $ 200,000 none 71.1% PASS Colfax Placer Measure B TOT by 2% to10% $ 29,000 none 73.5% PASS Rocklin Placer Measure F TOT by 2% to 10% $ 300,000 none 59.8% PASS Roseville Placer Measure C TOT by 4% to 10% $ 3,000,000 none 73.0% PASS Big Bear Lake San Bernardino Measure P TOT by 2% to 10% $ 1,300,000 none 54.4% PASS Grand Terrace San Bernardino Measure M TOT new 10% $ 250,000 none 51.9% PASS Yucca Valley San Bernardino Measure K TOT by 5% to 12% $ 1,300,000 none 71.9% PASS Imperial Beach San Diego Measure R TOT by 4% to 14% $ 400,000 none 67.4% PASS El Paso de Robles San Luis ObispoMeasure F TOT by 1% to 11% $ 750,000 none 61.2% PASS Belmont San Mateo Measure K TOT by 2% to 14% $ 600,000 none 79.3% PASS Millbrae San Mateo Measure N TOT by 2% to 14% $ 1,500,000 none 75.8% PASS County of Humboldt Unincorporated Measure J TOT by 2% to 12% $ 3,080,000 none 63.3% PASS County of Placer -
North Tahoe TOT Area Measure A TOT by 2% to 10% $ 4,000,000 none 90.0% PASS County of Santa Cruz Unincorporated Measure B TOT by 1% to 12% $ 2,300,000 none 69.2% PASS County of El Dorado -
East Slope Tahoe Measure S TOT 2/3 by 4% to 14% $ 2,500,000 none 81.8% PASS Chico Butte Measure H TrUT 1 cent $ 24,000,000 none 52.4% PASS Mendota Fresno Measure H TrUT 1.25 cent $ 493,498 none 57.2% PASS Blue Lake Humboldt Measure R TrUT 1 cent $ 30,000 none 55.4% PASS Rio Dell Humboldt Measure O TrUT 3/4cent $ 400,000 none 53.3% PASS County of Kern unincorporated areas Measure K TrUT 1 cent $ 54,000,000 none 50.8% PASS McFarland Kern Measure M TrUT 1 cent $ 579,662 none 62.2% PASS Tehachapi Kern Measure S TrUT 1 cent $ 4,000,000 none 57.2% PASS Avenal Kings Measure A TrUT 1 cent $ 500,000 none 72.5% PASS Susanville Lassen Measure P TrUT 1 cent $ 1,750,000 none 54.7% PASS Baldwin Park Los Angeles Measure BP TrUT 3/4 cent $ 6,000,000 none 58.1% PASS Malibu Los Angeles Measure MC TrUT 1/2 cent $ 3,000,000 none 52.6% PASS Monterey Park Los Angeles Measure MP TrUT 3/4 cent $ 6,000,000 none 58.5% PASS Torrance Los Angeles Measure SST TrUT 1/2 cent $ 18,000,000 none 55.0% PASS Larkspur Marin Measure G TrUT 1/4 cent $ 700,000 none 59.4% PASS Sand City Monterey Measure L TrUT by 1/2cent to

1.5cents $ 1,400,000 none 68.7% PASS
Hemet Riverside Measure H TrUT same 1 cent $ 15,000,000 none 58.0% PASS Elk Grove Sacramento Measure E TrUT 1 cent $ 21,000,000 none 54.1% PASS Galt Sacramento Measure Q TrUT 1 cent $ 3,600,000 none 52.4% PASS Colton San Bernardino Measure S TrUT 1 cent $ 9,500,000 none 66.8% PASS Ontario San Bernardino Measure Q TrUT 1 cent $ 95,000,000 none 53.2% PASS Solana Beach San Diego Measure S TrUT 1 cent $ 3,000,000 none 66.7% PASS Brisbane San Mateo Measure U TrUT 1/2 cent $ 2,000,000 none 63.9% PASS Goleta Santa Barbara Measure B TrUT 1 cent $ 10,600,000 none 64.7% PASS Solvang Santa Barbara Measure U TrUT 1 cent $ 1,600,000 none 63.1% PASS 66 – 7 – rev January 14, 2023
CaliforniaCityFinance.com
Co-temporal Advisory Measures in 2022
At the November 2022 election, there was just one local general tax measure that was accompanied by an advisory measure as to the use of funds. The City of Santa Monica’s Measure DT property transfer tax failed with just 34 percent approval as voters instead chose the citizen initiative Measure GS.

There was also just one such tax use advisory measure on the June 2022 election. Susanville’s voters passed Measure P, a 1 percent transactions and use (sales) tax that generates $1.75 million per year5 for general city services. The measure was accompanied by advisory Measure Q, accompanied the city’s It asked, “If Measure P passes, should the revenues be used to balance the budget to maintain and enhance existing public safety services (police and fire), and provide funding to support street infrastructure improvements and provide funding to support economic development efforts designed to increase businesses, jobs and visitors to Susanville?” Both measures passed. Under Initiative 21-0042A1, the tax will expire a year after the effective date of the initiative (i.e., in December 2025).

1.b. Additional Costs and Public Service Effects of the Tax Provisions Assuming a similar volume of local measures through 2024 as we saw in 2022, there will be over 200 local measures that will need to be redrafted to comply with the Initiative and placed back on the ballot for the taxes to continue after December 2025. The costs of re-drafting, re-placing and re-voting on these measures, previously legally approved by voters, will be in the tens of millions in total statewide.

2. “Exempt Charges” (fees and charges that are not taxes) and Services Threatened With regard to fees and charges adopted after January 1, 2022, Initiative 21-0042A1:
 Subjects new fees and charges for a product or service to a new "actual and reasonable test."  Subjects fees and charges for entrance to local government property; and rental and sale of local government property to a new, undefined, “reasonable” test.  Allows legal challenge to any tax adopted before the effective date of the initiative and after January 1, 5 The Susanville measure also did not include a specific end date and so is included in the list and totals of those measures.

Measures in 2022 with Non-Specific Durations
Agency Name County Tax/Fee Rate
Annual
Revenue Use Sunset YES%
Watsonville Santa Cruz Measure R TrUT 1/2 cent $ 5,000,000 none 64.4% PASS Vallejo Solano Measure P TrUT 7/8 cent $ 18,000,000 none 54.7% PASS Modesto Stanislaus Measure H TrUT 1 cent $ 39,000,000 none 62.8% PASS County of Colusa Measure A TrUT 2/3 1/2 cent $ 2,400,000 EMS none 69.4% PASS Atwater Merced Measure B TrUT 2/3 same 1 cent $ 4,000,000 police/fire none 73.7% PASS Truckee Nevada Measure U TrUT 2/3 by 1/4 cent to
1/2 cent $ 3,000,000 open space / trails none 76.4% PASS Palo Alto Santa Clara Measure L UtilityTransfer 18% gas $ 7,000,000 none 77.7% PASS Santa Clara Santa Clara Measure G UtilityTransfer 5 % $ 30,000,000 none 84.2% PASS Hercules Contra Costa Measure N UUT 8% $ 3,600,000 none 69.3% PASS Carson Los Angeles Measure UU UUT 2% electr, gas $ 8,000,000 none 78.4% PASS Sebastopol Sonoma Measure N UUT 3.75% (same) $ 700,000 none 83.5% PASS 67 – 8 – rev January 14, 2023
CaliforniaCityFinance.com
2022. Such a lawsuit could enjoin (stop) the enactment of the tax pending the outcome of the legal challenge.
 Subjects a challenged fee to new, higher burdens of proof if legally challenged.

2.a. Value on New Local Government Fees and Charges at Risk6 Virtually every city, county, and special district must regularly (e.g., annually) adopt increases to fee rates and charges and revise rate schedules to accommodate new users and activities. Most of these would be subject to new standards and limitations under threat of legal challenge. Based on the current volume of fees and charges imposed by local agencies and increases in those fees simply to accommodate inflation, the amount of local government fee and charge revenue placed at risk is about $2 billion per year including those adopted since January 1, 2022. Of $2 billion, about $900 million (45 percent) is for special districts, $800 million (40 percent) is cities, and $300 million (15 percent) is counties.7 Major examples of affected fees and charges are:

1. Certain water, sanitary sewer, wastewater, garbage, electric, gas service fees.

2. Nuisance abatement charges - such as for weed, rubbish and general nuisance abatement to fund community safety, code enforcement, and neighborhood cleanup programs.

3. Emergency response fees - such as in connection with DUI.

4. Advanced Life Support (ALS) transport charges.

5. Business improvement district charges.

6. Fees for processing of land use and development applications such as plan check fees, use permits, design review, environmental assessment, plan amendment, subdivision map changes.

7. Document processing and duplication fees.

8. Facility use charges, parking fees, tolls.

9. Fines, penalties.

10. Fees for parks and recreation services.

2.b. Additional Costs and Public Service Effects of the Fee/Charge Provisions In addition to service delays and disruptions due to fee and charge revenues placed at greater legal risk, there would be substantial additional costs for legal defense. The risk to fees and charges will make infrastructure financing more difficult and will deter new residential and commercial development. ***********
mc
6 Source: California State Controller Annual Reports of Financial Transactions concerning cities, counties and special districts, summarized with an assumed growth due to fee rate increases (not population) of 2 percent annually. 7 School fees are also affected but the amount is negligible by comparison. 68 1
From: Melanie Bagby
Sent: Wednesday, March 08, 2023 10:13 AM
To: Michael Maloney
Subject: Council Report 2/23-3/8
2/23‐24 Cal Cities Executive Board Meeting, Artesia
2/27 Met with Cloverdale Senior Center staff regarding transportation options 3/2 Attended Sonoma Clean Power Board Meeting, Santa Rosa. Met with Sonoma County Bicycle Coalition staff 3/6 Attended Finance, Administration & Police subcommittee meeting 3/8 Attended meeting with city staff and La Familia Sana regarding possible mural locations in downtown Melanie Bagby
Councilmember, City of Cloverdale
707‐893‐7170 • [email protected]
69 March 1, 2023
Marlon Flournoy
Division Chief of Transportation Planning
California Department of Transportation
Division of Transportation Planning
1120 N Street Sacramento, CA 95814
Subject: Letter of Support for SMART’s Quality of Life and Economic Impact Assessment Dear Mr. Flournoy:

On behalf of the City of Cloverdale City Council I am writing to support the Sonoma-Marin Area Rail Transit (SMART) District’s proposed Quality of Life and Economic Impact Assessment to evaluate how investment in SMART generates benefits to the North Bay. SMART is responsible for reintroducing passenger rail to Sonoma and Marin Counties after 59 years, and in doing so critically expanded transportation options and capacity. SMART’s operations commenced six years ago, and in that time, the agency operated through significant turmoil and uncertainty as a result of consecutive disasters, including the most recent COVID-19 Pandemic.

Emerging from the pandemic provides a unique opportunity to look toward the future and evaluate potential impacts SMART could have on the North Bay were the system to be fully built out. Equally, this moment requires that SMART assess progress made to-date in terms of the mobility benefits of its rail service and parallel multiuse pathway, as well as its effect on land use and housing, the economy, the environment, safety, public health and equity.

SMART’s Quality of Life and Economic Impact Assessment will quantify these impacts and demonstrate the reach of each local, state or federal dollar invested in SMART. This study will also inform decision-making and future collaboration opportunities that help maximize progress on state planning priorities including sustainable infill development around transit, environmental benefits and Greenhouse Gas (GHG) emissions reductions, improving safety and promoting equity and the economy.

The City of Cloverdale City Council supports SMART’s Sustainable Communities application for the FY23/24 Sustainable Transportation Planning Grant cycle. Thank you for your consideration of this important and timely proposal.

Sincerely,
Todd Lands
Mayor
City of Cloverdale
70