Cities Index.
Minutes

Cloverdale City Council
May 8, 2024

Document
Minutes
Meeting
May 8, 2024
Body
Cloverdale City Council
Pages
4
Original file
4.8 MB
Text extracted from the city's file for reading and search. Open the original on www.cloverdale.net. That file is the official record.

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

MINUTES - DRAFT

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

COMMUNITY DEVELOPMENT SUCCESSOR AGENCY BOARD OF DIRECTORS WEDNESDAY, MAY 8, 2024

CLOVERDALE PERFORMING ART CENTER
209 N. CLOVERDALE BOULEVARD, CLOVERDALE, CA 95425

CLOSED SESSION
124 N. CLOVERDALE BLVD.

CLOVERDALE, CA, 95425
5:00 PM

1. OPENING CLOSED SESSION

1.A Call to Order
Mayor Lands called the meeting to order at 5 p.m.

1.B Roll Call

Present: Mayor Lands, Vice Mayor Wheeler, Councilmembers: Bagby, Morgenstern, Wolter

Absent: None.

1.C Closed Session Agenda Review (Changes and/or Deletions) None.

2. PUBLIC COMMENTS ON CLOSED SESSION AGENDA:

None.

3. RECESS TO CLOSED SESSION TO HEAR THE FOLLOWING ITEM(S):

Mayor Lands recessed to Closed Session at 5:01 p.m.

3.A CONFERENCE WITH LABOR NEGOTIATOR
Pursuant to Government Code Section 54957.6
Labor Negotiator: City Manager Kelley and Consultant Patrick Clark Cloverdale Employee Groups: Cloverdale Classified Association, Cloverdale Police Officers' Association, Cloverdale Dispatchers' Association, and all Unrepresented Employees (Unaffiliated Employees and Executive Management Staff) Item received and filed.

Mayor Lands adjourned Closed Session at 5:56 p.m.

OPEN SESSION
209 N. CLOVERDALE BLVD.

CLOVERDALE, CA, 95425
6:00 PM
A. OPENING PUBLIC SESSION
A.1 Call to Order
Mayor Lands called the meeting to order at 6:02 p.m.

A.2 Pledge of Allegiance
Mayor Lands led the Pledge of Allegiance.

A.3 Roll Call

Present: Mayor Lands, Vice Mayor Wheeler, Councilmembers: Bagby, Morgenstern, Wolter

Absent: None.

A.4 Report Out on Closed Session
None.

A.5 Conflict of Interest Declaration
None.

A.6 Agenda Review (Changes and/or Deletions)
None.

B. PUBLIC COMMENTS
Rob Koslowsky provided accolades to the Parks Department and budget suggestions C. COMMUNICATIONS
None.

D. STUDENT LIAISON REPORT
Student Liaison Gallego reported.

City Clerk Maloney reported.

E. PROCLAMATIONS
E.1 Professional Municipal Clerks Week
Vice Mayor Wheeler read the proclamation. City Clerk Maloney presented.

Recipient(s): Mike Maloney, Cloverdale City Clerk
E.2 Lyme and Tick-Borne Diseases Awareness Month
Councilmember Morgenstern read the proclamation. Emily Handelman presented.

Recipients: Emily Handelman
F. PRESENTATIONS
F.1 Bay Area Housing Finance Authority (BAHFA) and 2024 Regional Affordable Housing Bond City Manager Kelley introduced the item, and Director Whitman of the Sonoma County Community Development Commission about the Bay Area Housing Finance Authority presented and responded to Councilmember inquiries and comments.

Public Comments:

Rob Koslowsky commented on the item
G. CONSENT CALENDAR
A motion was made by Councilmember Bagby, seconded by Councilmember Wolter, to waive reading of the text and adopt the Consent Calendar.

The motion carried by the following vote:

Yes: (5) Mayor Lands, Vice Mayor Wheeler, Councilmembers: Bagby, Morgenstern, Wolter No: (0) None

Absent: (0) None
Abstain: (0) None
G.1 Minutes Approval - April 24, 2024
Action: Approved as submitted.

G.2 Minutes Approval - April 25, 2024
Action: Approved as submitted.

G.3 Ordinance repealing and replacing Cloverdale Municipal Code Chapter 5.36, Rent Control in Mobile Home Parks, to Adopt New Rent Control Regulations for Mobile Home Parks.

Action: Conducted second reading, by title only, and adopted Ordinance:

ORDINANCE NO. 755-2024 ENTITLED: ORDINANCE OF THE CLOVERDALE CITY COUNCIL REPEALING AND REPLACING CLOVERDALE MUNICIPAL CODE CHAPTER 5.36, RENT

CONTROL IN MOBILE HOME PARKS, TO ADOPT NEW RENT CONTROL REGULATIONS FOR MOBILE HOME PARKS.

H. PUBLIC HEARINGS
None.

I. NEW BUSINESS
I.1 General Fund, Water and Waste Water Reserves Balances as of June 30, 2023 City Manager Kelley introduced the item.

J. SUBCOMMITTEE REPORTS
Subcommittee Agendas, Approved Minutes, and Media are available at www.cloverdale.net/agendacenter.

Finance, Administration & Police: Chair Lands and Vice Chair Wolter Last Meeting Agenda | Next Meeting - May 6, 2024
Homelessness Community Advisory Group: Chair Morgenstern and Vice Chair Wheeler Last Meeting Agenda | Next Meeting - June 10, 2024
Joint City/Cloverdale Unified School District: Chair Lands and Vice Chair Morgenstern Last Meeting Agenda | Next Meeting - August 19, 2024
Planning and Sustainability: Chair Bagby and Vice Chair Wheeler Last Meeting Agenda | Next Meeting - June 18, 2024
Public Works and Facilities: Chair Wheeler and Vice Chair Wolter Last Meeting Agenda | Next Meeting - May 28, 2024
K. COUNCILMEMBER REPORTS
None.

L. LEGISLATIVE REPORTS, LETTERS OF SUPPORT/OPPOSITION
None.

M. CITY MANAGER/CITY ATTORNEY REPORTS
City Manager Kelley reported.

City Attorney Mog reported and responded to Councilmember Inquiries.

N. COUNCIL DIRECTION ON FUTURE AGENDA ITEMS
None.

O. ADJOURNMENT
Mayor Lands adjourned at 7:29 p.m. to the next regular meeting of the Cloverdale City Council scheduled for May 22, 2024.

APPROVED ON: June 26, 2024
____________________________
Mike Maloney, City Clerk
124 N. Cloverdale Boulevard
Cloverdale, CA 95425
Phone: 707-894-2521
www.cloverdale.net
The Cloverdale City Council welcomes public interest, attendance, and in-person participation at meetings.

Open session meetings are held in-person at the Cloverdale Performing Art Center. You may also view the live streams online at www.zoom.us/join, by telephone: 1.669.900.6833, both using Meeting ID:
823 1668 4527, directly at https://us02web.zoom.us/j/82316684527 or on YouTube at cloverdale.net/youtube

CLOSED SESSION
124 N. CLOVERDALE BLVD.

CLOVERDALE, CA, 95425
5:00 PM

1. OPENING CLOSED SESSION

1.A Call to Order

1.B Roll Call

1.C Closed Session Agenda Review (Changes and/or Deletions)

2. PUBLIC COMMENTS ON CLOSED SESSION AGENDA:

Prior to recessing to Closed Session, the Public may speak on Closed Session Items.

3. RECESS TO CLOSED SESSION TO HEAR THE FOLLOWING ITEM(S):

3.A CONFERENCE WITH LABOR NEGOTIATOR
Pursuant to Government Code Section 54957.6
Labor Negotiator: City Manager Kelley and Consultant Patrick Clark Cloverdale Employee Groups: Cloverdale Classified Association, Cloverdale Police Officers' Association, Cloverdale Dispatchers' Association, and all Unrepresented Employees (Unaffiliated Employees and Executive Management Staff).

AGENDA

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

DEVELOPMENT SUCCESSOR AGENCY BOARD OF DIRECTORS
WEDNESDAY, MAY 8, 2024

CLOVERDALE PERFORMING ART CENTER
209 N. CLOVERDALE BOULEVARD, CLOVERDALE, CA 95425
1 OPEN SESSION
209 N. CLOVERDALE BLVD.

CLOVERDALE, CA, 95425
6:00 PM
A. OPENING PUBLIC SESSION
A.1 Call to Order
A.2 Pledge of Allegiance
A.3 Roll Call
A.4 Report Out on Closed Session
A.5 Conflict of Interest Declaration
A.6 Agenda Review (Changes and/or Deletions)
B. PUBLIC COMMENTS
Any person wishing to speak on an item not listed on the agenda may do so at this Bme. Pursuant to the Brown Act, the City Council is not allowed to consider issues or takeaction on any item not listed on the agenda. Three minutes are typically allotted to each speaker.

B.1 Written Correspondence:

C. COMMUNICATIONS
Public written communications sent to Council since the last meeting may be discussed at this time.

D. STUDENT LIAISON REPORT
E. PROCLAMATIONS
E.1 Professional Municipal Clerks Week
Recipient(s): Mike Maloney, Cloverdale City Clerk
E.2 Lyme and Tick-Borne Diseases Awareness Month
Recipients: Emily Handelman
F. PRESENTATIONS
F.1 Bay Area Housing Finance Authority (BAHFA) and 2024 Regional Affordable Housing Bond Recommended Action(s):

Receive a presentation by Michelle Whitman, Director of the Sonoma County Community Development Commission about the Bay Area Housing Finance Authority (BAHFA) and 2024 Regional Late Correspondence - Received post meeting (5/9/2024)
Proclamation - Professional Municipal Clerks Week
Proclamation - Lyme and Tick-Borne Disease Awareness Month 2 Affordable Housing Bond.

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

G.1 Minutes Approval - April 24, 2024
Recommended Action(s):

Approve the April 24, 2024 Draft Minutes
G.2 Minutes Approval - April 25, 2024
Recommended Action(s):

Approve the April 25, 2024 Draft Minutes
G.3 Ordinance repealing and replacing Cloverdale Municipal Code Chapter 5.36, Rent Control in Mobile Home Parks, to Adopt New Rent Control Regulations for Mobile Home Parks.

Recommended Action(s):

Conduct second reading, by title only, and adopt an ordinance entitled, “An Ordinance of the Cloverdale City Council repealing and replacing Cloverdale Municipal Code Chapter 5.36, Rent Control in Mobile Home Parks, to Adopt New Rent Control Regulations for Mobile Home Parks.” H. PUBLIC HEARINGS
None.

I. NEW BUSINESS
I.1 General Fund, Water and Waste Water Reserves Balances as of June 30, 2023 Recommended Action(s):

Receive the General Fund Surplus affecting the Reserves Balances as of June 30, 2023 by Account Type and the Water and Waste Water Enterprise funds surplus and the effect on the respective Reserve Balances for informational purposes.

J. SUBCOMMITTEE REPORTS
Subcommittee Agendas, Approved Minutes, and Media are available at www.cloverdale.net/agendacenter.

Finance, Administration & Police: Chair Lands and Vice Chair Wolter Last Meeting Agenda | Next Meeting - May 6, 2024
Agenda Report
Presentation
Late Correspondence - Received post meeting (5/9/2024)
CC Draft Minutes - April 24, 2024
CC Draft Minutes - April 25, 2024
Agenda Report
Attachment 1 - Ordinance
Attachment 2 - Exhibit A
Agenda Report
Attachment 1 - Reserves and General Fund Surplus Policy 3 Homelessness Community Advisory Group: Chair Morgenstern and Vice Chair Wheeler Last Meeting Agenda | Next Meeting - June 10, 2024
Joint City/Cloverdale Unified School District: Chair Lands and Vice Chair Morgenstern Last Meeting Agenda | Next Meeting - August 19, 2024
Planning and Sustainability: Chair Bagby and Vice Chair Wheeler Last Meeting Agenda | Next Meeting - June 18, 2024
Public Works and Facilities: Chair Wheeler and Vice Chair Wolter Last Meeting Agenda | Next Meeting - May 28, 2024
K. COUNCILMEMBER REPORTS
Councilmembers may provide written and or verbal informational reports and updates on regional boards, committees, and community activities.

K.1 Written Reports
L. LEGISLATIVE REPORTS, LETTERS OF SUPPORT/OPPOSITION
None.

M. CITY MANAGER/CITY ATTORNEY REPORTS
N. COUNCIL DIRECTION ON FUTURE AGENDA ITEMS
Councilmembers may request agenda items for future Council and or Council Subcommittee meetings.

O. ADJOURNMENT
To the next regular meeting of the Cloverdale City Council scheduled for May 22, 2024.

IMPORTANT NOTICES REGARDING CITY COUNCIL MEETINGS
PUBLIC COMMENTS: Members of the public may provide comment on an agenda item in-person during the public comment periods. Commenters will have three (3) minutes to speak. City Council is unable to respond directly to quesBons or enter into dialogue with commenters. Comments may also be submiIed prior t o [email protected]. by 12 p.m. the day of the meeBng. Submissions and supplemental attachments are considered public records pursuant to Government Code § 54957.5.

SPECIAL NEEDS ACCOMMODATIONS: In compliance with the Americans with DisabiliBes Act and Title VI, if you need special assistance to parBcipate in this meeBng, please contact the City Clerk's office at [email protected] or 707.894-1712. NoBficaBon at least 72 hours prior to the meeBng will enable the City to make reasonable accommodations are made to provide accessibility to the meeting.

AB 2449: Councilmembers parBcipate in person or teleconference methods consistent with tradiBonal provisions of the Brown Act,Government Code § 54953(b), unless the meeBng is being held pursuant to provisions of AB 2449. If a technical issue arises with Zoom or the dial-in opBon, the meeBng will conBnue unless it is being held pursuant to the provisions of Assembly Bill 2449.

AB 343: Any wriBngs or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspecBon in the City Hall offices located at 124 N. Cloverdale Blvd., Cloverdale, CA 95425 Councilmember Bagby
4 during normal business hours as provided by Assembly Bill 343.

WAIVER WARNING: If you challenge decisions/direcBons 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 wriIen correspondence delivered to the City of Cloverdale, or prior to, the public hearing.

AFFIDAVIT OF POSTING
The City Clerk’s Office does hereby declare that, in accordance with California Government Code § 54954.2(a), this agenda for the above stated meeting(s) was posted at least 72 hours prior to the meeting (24 hours prior to a Special Meeting) on the outdoor bulletin board at City Hall, 124 N. Cloverdale Blvd., Cloverdale, CA, 95425 and the Cloverdale Performing Art Center, 209 N. Cloverdale Blvd., Cloverdale, CA, 95425, and online at www.cloverdale.net/agendacenter. The agenda is also available for public review at City Hall at least 24 hours in advance of the meeting.

Date posted: May 2, 2024 | Time posted: 10:35 a.m. | City Clerk Signature: s/Mike Maloney

CLOVERDALE WEEKLY NEWSLETTER
Interested in receiving useful informaBon and updates about City events, iniBaBves, acBviBes, budget and public meetings? Visit www.cloverdale.net/newsletter and subscribe to "The Cloverdale Weekly Newsletter."

RECREATION SURVEY
The City of Cloverdale Parks and RecreaBon Department is seeking community input on potenBal RecreaBon classes, activities, and events. Take the survey at www.cloverdale.net/recsurvey 5 From: ROB KOSLOWSKY
To: Michael Maloney
Subject: City Council Meeting: May 8, 2024, R.K. Koslowsky public comment 1.

Date: Thursday, May 09, 2024 11:00:39 AM
Hi Mike,
I'd like my comments to be part of the public record.

Thanks,
....Rob
------------------------------
City Council Meeting: May 8, 2024, R.K. Koslowsky public comment 1.

A big thank you to Hector Galvan and his team in the parks and recreation department for their great job in keeping city facilities, both new ones and existing ones, in great shape. With all of the extra and ongoing maintenance required, I’d like City Council to consider adding additional funding from the surplus budget bucket to Hector’s department, unless, of course, this surplus is returned to residents in the form of a tax reduction.

With taxes on our minds, bond measures are nothing more than an increasing tax load on property owners. Bonds are funded by property owners through their yearly tax bills.

Proving that the close call on Prop. 1 hasn’t satisfied state and federal politicians’ appetite for more debt, an Oakland Assemblywoman, has introduced Assembly Bill 1657, which proposes another $10 billion bond to fund existing housing programs, including those funding rental and supportive developments, among other things. But this Assemblywoman’s bond demand isn’t the only bond proposal bouncing around Sacramento. New debt totaling additional billions is being proposed for campus modernization, climate change, and drug addiction. All of these new bond-costs will further burden homeowners and likely appear on the November ballot.

So, we have local bonds and state bonds, and now property owners are being asked to approve a regional bond to pay for someone else’s housing; another transfer of a homeowner’s wealth to house someone else, somewhere in the state.

I’m curious to hear about how another $20 billion bond can effectively be spent, when an auditor’s report said there continues to be rampant waste in spending these bond funds. Today’s regional bond proposal seeks to add almost $200 annually to a Cloverdale home owner’s property bill.

Thank you.
…Rob Koslowsky, Cloverdale resident
Rob Koslowsky
Author of The Tubbs Fire.

Also author of The Upstart Startup & Breach of Trust.

Author's page
6 A PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF CLOVERDALE DECLARING MAY 5 - May 11, 2024 AS “PROFESSIONAL MUNICIPAL CLERKS WEEK” WHEREAS, May 5 through May 11, 2024 will be the 55th Annual Professional Municipal Clerks Week; and WHEREAS, the Office of the Municipal Clerk, a time honored and vital part of local government exists throughout the world and serves as the information center on functions of local government and community; and
WHEREAS, the Office of the Municipal Clerk is the earliest established public service and provides the professional link between citizens, local governing bodies and other government agencies; and WHEREAS, Municipal Clerks continually endeavorto improve the administration of the affairs of the Office of the Municipal Clerk through participation in educational programs, seminars, workshops and the annual meetings of their state, province, county and international professional organizations; and WHEREAS, Initiated in 1969 by the International Institute of Municipal Clerks and endorsed by all of its members throughout the United States, Canada and 15 other countries, Municipal Clerks Week is a time of celebration and reflection on the importance of the City Clerk’s office; and WHEREAS, In Cloverdale, the City Clerk strives to preserve the public’s trust in government by ensuring the City’s legislative processes are transparent, accurate, and timely; safeguards the legislative history of the City; serves as the Custodian of City records, and administers the City wide records management program; provides meeting administration and serves as the City’s filing officer, and is the local compliance officer for federal, state, and local statues including the Political Reform Act, the Brown Act, the Public Records Act; and is the local Elections Official.

NOW, THEREFORE BE IT RESOLVED, that the City of Cloverdale declare the week of May 5 - May 11, 2024, as “Municipal Clerks Week” in Cloverdale and further extend our appreciation to our Municipal City Clerk Mike Maloney, and to all Municipal Clerks past, present, and future, for the vital services they perform and their exemplary dedication to the Cloverdale community.

Presented this day, May 8, 2024
_____________________
Todd Lands, Mayor
7 PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF CLOVERDALE RECOGNIZING MAY 2024 AS LYME AND TICK-BORNE DISEASES AWARENESS MONTH IN CLOVERDALE WHEREAS, Lyme disease is the fastest growing vector-borne disease in the United States caused by the bacterium Borrelia burgdorferi, and is transmitted by the common black-legged tick found in nearly one-half of all U.S. counties; and
WHEREAS, Ticks that carry Lyme disease can also carry at least 15 other pathogens, many of them transmitted within minutes of being bitten, with one painless tick bite frequently resulting in multiple infections including bacteria, parasites, and viruses; and WHEREAS, The risk of contracting Lyme disease can be year-round, the nymphal ticks, which are the size of a poppy seed, are most active in the Spring. Tick bites are nearly painless, with fewer than 50% of patients with Lyme disease able to recall a tick bite and fewer than 50% reporting a “bull’s-eye” rash; and
WHEREAS, Lyme disease infects more than 300,000 people annually in the United States, yet testing for Lyme disease remains only 50% accurate, with the average patient going two or more years before getting a proper diagnosis; and
WHEREAS, Lyme disease is an underreported illness, therefore the actual number of people with Lyme disease in (Cloverdale) is likely 10 times the reported number of cases; and WHEREAS, Lyme disease is a complex, multi-system illness which if caught early can be treated, but if left untreated can invade the nervous system, heart and multiple organs of the body causing years of pain, suffering, severe disability, and even death; and WHEREAS, Children are at the highest risk for contracting Lyme disease, it is the responsibility of every community to educate the public about the signs, symptoms, treatment, and how to prevent Lyme disease; and
WHEREAS, the best protection against tick-borne diseases are prevention, education and early treatment.

NOW, THEREFORE, be it resolved that I, Mayor Lands, do hereby proclaim May 2024, Lyme Disease Awareness Month in Cloverdale.

Dated: May 8, 2024
SO ORDERED:
_____________________________
Todd Lands, Mayor
8 City Council/Successor Agency
Agenda Item Summary Agenda Item: F.1
Meeting Date: May 8, 2024
Agenda Section:

Presentation
Staff Contact:

Kevin Thompson, Assistant City Manager / Comm. Dev. Director Agenda Item Title: Bay Area Housing Finance Authority (BAHFA) and 2024 Regional Affordable Housing Bond. ______________________________________________________________________________________ Recommended Council Action(s):

Receive a presentation by Michelle Whitman, Director of the Sonoma County Community Development Commission about the Bay Area Housing Finance Authority (BAHFA) and 2024 Regional Affordable Housing Bond.
________________________________________________________________________________________ Background / Summary:

The San Francisco Bay Area Regional Housing Finance Act (California Government Code 64500, et. Esq) created the Bay Area Housing Finance Authority (BAHFA) in 2019. BAHFA’s purpose is to raise, administer and allocate funding and provide technical assistance at a regional level for tenant protections, affordable housing preservation, and new affordable housing production, commonly referred to as the 3p’s. BAHFA’s jurisdiction is the entire area within the boundaries of the counties Alameda, Contra Costa, Marin, Napa, San Mateo, Santa Clara, Solano and Sonoma and the city and county of San Francisco.

BAHFA is a joint effort of the Metropolitan Transportation Commission (MTC) and the Association of Bay Area Governments (ABAG). In 2021, BAHFA secured a $20 million allocation from the state budget to begin operation and implement pilot projects across the “3Ps”. BAHFA has since received or been awarded additional funds from the state’s Regional Early Action Planning (REAP) Grant funding 2.0 funding, philanthropic donations, as well as in-kind and financial support from private industry and from MTC. With these initial investments, BAHFA is poised to deliver over $50 million in financing, programs, and technical assistance to spur innovation and advance housing solutions across the nine-county Bay Area.

The 2024 Regional Housing Bond
In the summer of 2022, the BAHFA Board and the ABAG Executive Board began the process to consider placing a $10 to 20 billion general obligation bond on the November 2024 ballot. Both the ABAG Executive Board and the BAHFA Board must authorize the regional housing bond to be submitted to Bay Area voters; if they do so, counties are required to place the measure upon the ballot. The current threshold for passing the regional housing bond is a 2/3 supermajority of all Bay Area voters (not county-by-county). However, the State Legislature recently approved ACA 1, which will place a statewide constitutional amendment on the November 2024 ballot that would reduce the threshold to 55%. If ACA 1 is approved, the reduced threshold would apply to bond measures on the same ballot. If the regional housing bond passes, eighty percent (80%) of the net revenue will be returned to counties based on each county’s share of assessed property values.

This portion of the funds is referred to as “County Housing Revenue”.

The region’s large cities and the cities that have been assigned more than 30% of their county’s low income RHNA obligation can elect to receive a direct allocation from the County Housing Revenue. In 2024, the cities that could receive a direct allocation are Oakland, San Jose, Santa Rosa and the City of Napa. The remaining twenty percent (20%) of the net revenue, referred to as “Regional Housing Revenue”, will be available to 9 City Council/Successor Agency Agenda Item Summary
Meeting Date: May 8, 2024

Page 2 of 2 ends

BAHFA for distribution anywhere in the region. The City of Cloverdale is under the umbrella of Sonoma County’s funding. The City will also be eligible for funds from BAFHA’s regional pool.

BAHFA’s Regional Expenditure Planning BAHFA and localities receiving a direct allocation from a regional housing bond are required to adopt an expenditure plan for their share of the funds (Government Code Sections 64650-64652.) BAHFA’s regional expenditure plan is due in summer 2024 (prior to the election), whereas local expenditure plans will not be due until after the election (likely in early 2025). The BAHFA Board and the ABAG Executive Board are actively developing the regional expenditure plan in consultation with local governments, housing stakeholders, and members of the public. Staff will be working with the Sonoma County Community Development Commission on a local expenditure plan over the next few months. ________________________________________________________________________________________ Options:

1. Provide direction and feedback on proposed ballot initiative. ________________________________________________________________________________________ Subcommittee Recommendation:

The Planning & Sustainability Subcommittee received a presentation on BAHFA and recommended presenting it to the City Council for review.
________________________________________________________________________________________ Budget/Financial Impact:

If approved, staff time for administration of funding.
________________________________________________________________________________________ Attachments:

1. Presentation
10 2024 Bay Area
Affordable
Housing Bond
Regional Funding, Local Solutions
11 What is the Bay Area Affordable Housing
Bond?
 Up to $20 billion
 Would build and preserve ~72,000
affordable homes across the nine counties
 Subject to voter approval
 Most ambitious housing program in region’s
history
 Funds subject to strict accountability and
oversight
2 12
3 Why is a Bond Needed?
13 Lack of Affordable Homes Harms Region
 37,000 unhoused residents
 1.5 million people spending half or
more of income on rent
 Overcrowded and unsafe housing
 Long commutes cause freeway
congestion and pollution
 Vital employees and community
members leaving region
4 14
5 The Bond Supports a New
Approach to Affordable
Housing
15 The Bay Area
Housing Finance
Authority (BAHFA)
 Agency leading the Bond proposal
 First regional housing finance agency in
the state, created by CA legislature
 Mission to address housing affordability
challenges at scale
 Collaborates with local governments,
and governed by local elected officials
 Power to raise regionwide funding
through ballot measures
16 Local Priorities and New Regional
Program
7 Up to $16 Billion (80%)
will return to the nine
counties to fund local
priorities
Up to $4 Billion (20%)
will create a new
regional program at
BAHFA to build and
preserve affordable
housing in a way that is:
 More efficient
 Cost-effective
 Financially
sustainable
17 Substantial Benefits to Every County
County & Direct City Allocations $10B GO Bond $20B GO Bond Alameda County (excluding Oakland) $984 M $2 B
Oakland $383 M $765 M
Contra Costa County $925 M $1.9 B
Marin County $352 M $704 M
Napa County (excluding City of Napa) $100 M $200 M
City of Napa $79 M $158 M
San Francisco City and County $1.2 B $2.4 B
San Mateo County $1 B $2.1 B
Santa Clara County (excluding San Jose) $1.2 B $2.4 B
San Jose $1 B $2.1 B
Solano County $248 M $497 M
Sonoma County (excluding Santa Rosa) $282 M $564 M
Santa Rosa $121 M $242 M
Regional Funding (BAHFA administered) $2 B $4 B
8 18
Total Bond Allocation Estimate for
Sonoma County for a $20B Bond
(excluding Santa Rosa)
9 Bond
Allocation
Estimated
Share Amount
Approximate Bond
Allocation
Total GO Bond Allocation 100% $552.6 million
County Admin 5% $28 million
Balance to Disperse 95% $525 million
Balance to Disperse Level $525 million
Production 52% min. $273 million
Preservation 15% min. $79 million
Tenant Protections** 5% min. $26 million
Flexible Funding 28% $197 million
** State law does not allow bond proceeds to be spent for non-capital (i.e., services) costs so funds assigned to tenant protection must be reassigned absent a change in law. 19 How will the Bond be Funded?
 Property owners will fund the Bond
through annual taxes
 Contribution based on current
assessed property value
 As of 2024, approximately $24 per
$100,000 of assessed value for a
$20 billion bond
10 20
11 What Will the Bond Fund?
21 Build Affordable Housing:

Up to $10 Billion  Size and type depends on local
needs and preference
 Homes for:  Seniors  People with disabilities  Low-income households like preschool
teachers, janitors, and cooks
 Moderate-income
households like first responders
and long-term teachers
 People experiencing
homelessness
12 22
Preserve Existing
Affordable Housing:

Up to $3 Billion  Purchase and rehabilitate
existing apartments and
preserve their
affordability
 Homes for low-moderate
income households at
risk of displacement
13 23
Flexible Uses to
Meet Local Housing
Needs: Up to $6
Billion  Build or preserve
affordable housing
 Develop public
infrastructure needed to
support new affordable
housing
 Provide downpayment
assistance for affordable
homeownership
14 24
15 41 total affordable housing projects
in predevelopment
2,209 affordable homes in
predevelopment
6,301 affordable homes required
for 2023-2031 RHNA (0-120% AMI)
Cloverdale: 162 affordable homes
2,893 people experiencing
homelessness in 2022
Cloverdale: 23 people
Sonoma County Housing Needs
Affordable
Housing
Pipeline and
Housing Need
25 16
Cloverdale Housing Program Objectives

1. Rental and ownership opportunities for the whole community • Keep families intact and in Cloverdale
• Assist people experiencing homelessness become stable and permanently housed

2. Support for the city economy
• Employees can live and work in Cloverdale
• Keep and increase support for Cloverdale businesses and economy

3. Long-term preservation of existing affordable homes

4. Energy conservation
• Reduce commute times/need to commute
• Support public transportation
• Increase walkability
26 17
Accountability and
Oversight
27  Counties and cities receiving bond funds must create local expenditure plans describing how funds will be used.
 Plans will be approved by BAHFA if all requirements are met  Plans must:
 Be approved at a local public meeting with opportunity for public comment  Comply with CA constitution and state laws
 Include consultation with all cities in a county
 Required annual reports on expenditures and progress towards goals 18 Local Accountability
28  BAHFA must create a regional expenditure plan for the 20% of funds it will retain.
 The regional plan must be approved by the BAHFA Board and ABAG Executive Board prior to election at public meetings
 BAHFA will submit annual financial reporting to state  BAHFA subject to regular, independent audits
 Citizen oversight committee will annually review expenditures and issue report
19 Regional Accountability
29 SONOMA COUNTY EXPENDITURE PLAN – KICK-OFF MEETING 20 Sonoma County Expenditure Plan PROCESS | Goals
Be Fair:

The County’s funds will be distributed among
the eight cities, as well as the unincorporated
county. Our goal will be to ensure that funding
is allocated fairly across the region (e.g.,
RHNA need, readiness to proceed, assessed
value, etc.)
Be Ready:

By beginning this process early, once GO
bond funds become available, Sonoma County
will be well-positioned to begin supporting
housing and housing-adjacent projects as
quickly as possible.

Create a Thoughtful Plan Based on
Data:

Create a plan for the first five years based on
data and feedback provided by the
jurisdictions.

Strive to Achieve the Greatest
Impact:

With a significant amount of new capital
flowing into the region, the EP process will
help the jurisdictions meet their RHNA
obligations at a variety of income levels.
30 SONOMA COUNTY EXPENDITURE PLAN – KICK-OFF MEETING 21 PROCESS | Schedule
Kick-Off Meeting
EP Pipeline Template
to be provided to
each jurisdiction
shortly after
March
One-on-one
jurisdiction work
sessions
Goal to understand
jurisdiction priorities
March-April
Consultant analysis:
• Pipeline data review
• Sample GO bond
allocations
• Per unit funding
options
May-June
Review of analysis
with each
jurisdiction one-onone
Collect feedback to
incorporate for Final
Recommendations
June-July
Share analysis and
Final
Recommendations
with jurisdictions
collectively
July-September
Production of final EP
for delivery to BAHFA
November
31 22
What’s Next?
32 23
Key Next Steps
April -
June
2024
Nov
2024 2025
• BAHFA Board & ABAG Executive
Board to approve regional
expenditure plan
• BAHFA Board & ABAG Executive
Board vote to place Bond on the
ballot in all 9 counties
Election Local public
meetings to
approve local
expenditure
plans, with
opportunity for
public comment
33 Opportunities for Regional Engagement
 Monthly Public Board Meetings of BAHFA - noticed at https://mtc.ca.gov/meetingsevents  Sign up for BAHFA's mailing list: https://mtc.ca.gov/node/4000256  Email BAHFA with questions! [email protected]
Opportunities for Local Engagement
 Expenditure Plans must be approved at publicly noticed meetings with opportunity for public comment (2025)
 Counties must engage with their cities in the development of the plans. 24 How to Stay Informed and Engaged
34 Questions?
3525
From: ROB KOSLOWSKY
To: Michael Maloney
Subject: City Council Meeting: May 8, 2024, R.K. Koslowsky public comment 2.

Date: Thursday, May 09, 2024 11:31:05 AM
Hi Mike,
I'd like my comments to be part of the public record.

Thanks,
....Rob
------------------------------
City Council Meeting: May 8, 2024, R.K. Koslowsky public comment 2, during BAHFA presentation portion of agenda.

Thank you for your presentation, Michelle.

Bonds are funded by property owners through their yearly tax bills.

Enough bonds already!
For a typical $700,000 home, for which most Cloverdale residences are valued, the tax burden is approaching $10,000 annually.

Why would voters approve another series of bond measures proposed for the upcoming November election, when the $10 billion Prop 1. bond barely passed two months ago, and, coincidentally, it passed just before the state auditor released its report over the mismanagement and ineffectiveness of these bonds directed at homelessness for years?
As legendary basketball coach John Wooden said, “Never mistake activity for achievement.”
With respect to BAHFA’s bond proposal, I’m baffled. It seems to be one of many new bond proposals competing for voter approval in November. Plus 20 percent of the bond funds are kept by BAHFA to expand their oversight with results-based reporting. (This is a form of taxation applied to the proposed bond fund.) Bonds used to be approved for infrastructure such as schools and roads. Now, BAHFA, as an overlay governing authority of the MTC that started out dealing with Bay Area traffic problems, has expanded its mandate by moving residents into dense housing developments. This may explain why BAHFA says it has ‘No ability to affect city and county building code requirements.’
The suggestion that developers can be attracted with bond money is inaccurate. The biggest challenge for builders, especially for low-income housing, has been the inability to make a fair profit, in part, due to onerous building codes.

Instead of the county and the state cutting building costs significantly by reducing 36 unnecessary and burdensome regulation in order to lower the cost of new construction, bureaucracies like BAHFA shrug at residents’ regulatory burdens. They seek to take more money from existing homeowners in Cloverdale to the tune of at least $200 annually to fund dense housing developments that lead to a whole host of well-documented problems, including traffic congestion and limited parking spaces.

Enough bonds already; especially since results never seem to be presented, just lots of future plans and activity.

I look forward to hearing about how existing bond money can be used to help firsttime home buyers qualify for their own house. One of my daughters scrimped and saved for 20 years, just to buy her first house in Cloverdale. This is the way to go; people working hard and feeling good about buying their first home. We should avoid making habitual offerings of free or subsidized housing based on government largesse, a cost which is put on the backs of existing homeowners.

Thank you.
…Rob Koslowsky, Cloverdale resident
37 City Council Meeting Minutes - April 24, 2024 - Page 1 of 7 124 N. Cloverdale Boulevard
Cloverdale, CA 95425
Phone: 707-894-2521
www.cloverdale.net

MINUTES - DRAFT

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

DEVELOPMENT SUCCESSOR AGENCY BOARD OF DIRECTORS
WEDNESDAY, APRIL 24, 2024

CLOVERDALE PERFORMING ART CENTER
209 N. CLOVERDALE BOULEVARD, CLOVERDALE, CA 95425

CLOSED SESSION
124 N. CLOVERDALE BLVD.

CLOVERDALE, CA, 95425
5:00 PM

1. OPENING CLOSED SESSION

1.A Call to Order
Mayor Lands called the meeting to order at 5 p.m.

1.B Roll Call

Present: Mayor Lands, Vice Mayor Wheeler, Councilmembers: Bagby, Morgenstern, Wolter

Absent: Councilmember Bagby

1.C Closed Session Agenda Review (Changes and/or Deletions) None.

2. PUBLIC COMMENTS ON CLOSED SESSION AGENDA:

None.

3. RECESS TO CLOSED SESSION TO HEAR THE FOLLOWING ITEM(S):

Mayor Lands recessed to Closed Session at 5:01 p.m.

3.A CONFERENCE WITH LABOR NEGOTIATOR
Pursuant to Government Code Section 54957.6
Labor Negotiator: City Manager Kelley and Consultant Patrick Clark Cloverdale Employee Groups: Cloverdale Classified Association, Cloverdale Police Officers' Association, Cloverdale Dispatchers' Association, and all Unrepresented Employees (Unaffiliated Employees and Executive Management Staff).

Item was received and filed.

Mayor Lands adjourned Closed Session at 5:40 p.m.
38 City Council Meeting Minutes - April 24, 2024 - Page 2 of 7

OPEN SESSION
209 N. CLOVERDALE BLVD.

CLOVERDALE, CA, 95425
6:00 PM
A. OPENING PUBLIC SESSION
A.1 Call to Order
Mayor Lands called the meeting to order at 6 p.m.

Due to a technical issue, audio on the live feed was briefly interrupted.

A.2 Pledge of Allegiance
Mayor Lands led the Pledge of Allegiance
A.3 Roll Call

Present: Mayor Lands, Vice Mayor Wheeler, Councilmembers: Bagby, Morgenstern, Wolter

Absent: None.

A.4 Report Out on Closed Session
None.

A.5 Conflict of Interest Declaration
Mayor Lands reported regarding item I.2 noting the following Councilmember recusals due to conflicts of interest based on proximity to financial interests:

Councilmember Wolter - Zone 1, Mayor lands - Zone 2, and Vice Mayor Wheeler - Zone 3.

A.6 Agenda Review (Changes and/or Deletions)
None.

B. PUBLIC COMMENTS
Robert R and Melissa M spoke regarding the Cloverdale Historical Society and Museum.

C. COMMUNICATIONS
City Manager Kelley reported.

D. STUDENT LIAISON REPORT
D.1 Liaison Gallego Written Report
Mayor Lands read Liaison Gallego’s written report in their absence.

E. PROCLAMATIONS
E.1 Administrative Professionals Week and Day
Vice Mayor Wheeler read the proclamation and Councilmembers and City Manager Kelley provided comments.

Recipient: Leticia Barajas on behalf of the City of Cloverdale Administrative Professionals. 39 City Council Meeting Minutes - April 24, 2024 - Page 3 of 7 F. PRESENTATIONS
F.1 Presentation by Isom Advisors on Voter Survey Results on a Potential Revenue Measure City Manager Kelley introduced the item and Advisor Isom presented and responded to Councilmember inquiries and comments.

Public Comments:

Shirley Davis provided comments and suggestions.

Reece Foxen provided comments and suggestions.

Daniel Frankston provided comments and suggestions.

Council discussed and provided direction to Staff.

F.2 Presentation Parks and Recreation Accomplishments
City Manager Kelley introduced the item and Park Superintendent Galvan presented and responded to Councilmember inquiries and comments.

Public Comments:

Molly Fisher provided comments and inquiries.

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

The motion carried by the following vote:

Yes: (5) Mayor Lands, Vice Mayor Wheeler, Councilmembers: Bagby, Morgenstern, Wolter No: (0) None
Abstain: (0) None

Absent: (0) None
G.1 April 10, 2024 Draft Minutes
Approved as submitted.

H. PUBLIC HEARINGS
None.

I. NEW BUSINESS
I.1 Ordinance repealing and replacing Cloverdale Municipal Code Chapter 5.36, Rent Control in Mobile Home Parks, to Adopt New Rent Control Regulations for Mobile Home Parks
City Attorney Mog presented and responded to Councilmember inquiries.

Public Comments:

Daniel Frankston spoke regarding the item.

Reece Foxen spoke regarding the item.
40 City Council Meeting Minutes - April 24, 2024 - Page 4 of 7 City Council discussed.

A motion was made by Councilmember Bagby, seconded by Councilmember Morgenstern, to waive reading of the text and Introduce for First Reading, by title only, as amended:

AN ORDINANCE ENTITLED: ORDINANCE OF THE CLOVERDALE CITY COUNCIL REPEALING AND REPLACING CLOVERDALE MUNICIPAL CODE CHAPTER 5.36, RENT CONTROL IN

MOBILE HOME PARKS, TO ADOPT NEW RENT CONTROL REGULATIONS FOR MOBILE HOME PARKS.

The motion carried by the following vote:

Yes: (5) Mayor Lands, Vice Mayor Wheeler, Councilmembers: Bagby, Morgenstern, Wolter No: (0) None
Abstain: (0) None

Absent: (0) None
I.2 Preliminarily Approve the Engineer’s Report for FY 2024-25 for the City of Cloverdale Landscaping and Lighting Assessment District and Set the Time and Date of the Public Hearing for Zone 1-7
City Manager Kelley introduced the item.

Mayor Lands rearranged the four resolutions as follows:

A motion was made by Councilmember Bagby, seconded by Vice Mayor Wheeler, to waive reading of the text and adopt:

RESOLUTION NO. 016-2024 ENTITLED: RESOLUTION OF INTENT TO LEVY AND COLLECT ANNUAL ASSESSMENTS, PRELIMINARILY APPROVE THE ENGINEER’S REPORT FOR FY 2024- 25 FOR THE CITY OF CLOVERDALE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT AND SETTING THE TIME AND DATE OF THE PUBLIC HEARING FOR ZONES 4, 5, 6 AND 7” The motion carried by the following vote:

Yes: (5) Mayor Lands, Vice Mayor Wheeler, Councilmembers: Bagby, Morgenstern, Wolter No: (0) None
Abstain: (0) None

Absent: (0) None
Councilmember Wolter left the dais at 8:09 p.m.

A motion was made by Vice Mayor Wheeler, seconded by Councilmember Bagby, to waive reading of the text and adopt:

RESOLUTION NO. 017-2024 ENTITLED: RESOLUTION OF INTENT TO LEVY AND COLLECT ANNUAL ASSESSMENTS, PRELIMINARILY APPROVE THE ENGINEER’S REPORT FOR FY 2024- 25 FOR THE CITY OF CLOVERDALE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT AND SETTING THE TIME AND DATE OF THE PUBLIC HEARING FOR ZONE 1 41 City Council Meeting Minutes - April 24, 2024 - Page 5 of 7 The motion carried by the following vote:

Yes: (4) Mayor Lands, Vice Mayor Wheeler, Councilmembers: Bagby, Morgenstern No: (0) None
Abstain: (1) Councilmember Wolter

Absent: (0) None
Councilmember Wolter returned to, and Vice Mayor Wheeler left, the dais at 8:10 p.m.

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

RESOLUTION NO. 018-2024 ENTITLED: RESOLUTION OF INTENT TO LEVY AND COLLECT ANNUAL ASSESSMENTS, PRELIMINARILY APPROVE THE ENGINEER’S REPORT FOR FY 2024- 25 FOR THE CITY OF CLOVERDALE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT AND SETTING THE TIME AND DATE OF THE PUBLIC HEARING FOR ZONE 3 The motion carried by the following vote:

Yes: (4) Mayor Lands, Councilmembers: Bagby, Morgenstern, Wolter No: (0) None
Abstain: (1) Vice Mayor Wheeler

Absent: (0) None
Vice Mayor Wheeler returned to, and Mayor Lands left, the dais at 8:11 p.m.

Vice Mayor Wheeler presided over the remainder of the item.

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

RESOLUTION NO. 019-2024 ENTITLED: RESOLUTION OF INTENT TO LEVY AND COLLECT ANNUAL ASSESSMENTS, PRELIMINARILY APPROVE THE ENGINEER’S REPORT FOR FY 2024-25

FOR THE CITY OF CLOVERDALE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT AND SETTING THE TIME AND DATE OF THE PUBLIC HEARING FOR ZONE 2 The motion carried by the following vote:

Yes: (4) Vice Mayor Wheeler, Councilmembers: Bagby, Morgenstern, Wolter No: (0) None
Abstain: (1) Mayor Lands

Absent: (0) None
Mayor Lands returned to the dais at 8:12 p.m.
42 City Council Meeting Minutes - April 24, 2024 - Page 6 of 7 I.3 First Amendment to the At-Will Employment Agreement with Michael Maloney for the position of City Clerk for the City of Cloverdale and Approving Revised City Clerk Job Description
City Manager Kelley introduced the item.

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

RESOLUTION NO. 020-2024 ENTITLED: RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF CLOVERDALE APPROVING THE FIRST AMENDMENT TO THE AT-WILL EMPLOYMENT

AGREEMENT WITH MICHAEL MALONEY FOR THE POSITION OF CITY CLERK FOR THE CITY

OF CLOVERDALE AND APPROVING REVISED CITY CLERK JOB DESCRIPTION Deputy City Clerk Thompson conducted the roll call vote.

The motion carried by the following vote:

Yes: (4) Mayor Lands, Vice Mayor Wheeler, Councilmembers: Bagby, Wolter No: (1) Councilmember Morgenstern
Abstain: (0) None

Absent: (0) None
J. SUBCOMMITTEE REPORTS
Subcommittee Agendas, Approved Minutes, and Media are available at www.cloverdale.net/agendacenter.

Mayor Lands reported.

Finance, Administration & Police: Chair Lands and Vice Chair Wolter Last Meeting Agenda | Next Meeting - May 6, 2024
Homelessness Community Advisory Group: Chair Morgenstern and Vice Chair Wheeler Last Meeting Agenda | Next Meeting - June 10, 2024
Joint City/Cloverdale Unified School District: Chair Lands and Vice Chair Morgenstern Last Meeting Agenda | Next Meeting - August 19, 2024
Planning and Sustainability: Chair Bagby and Vice Chair Wheeler Last Meeting Agenda | Next Meeting - June 18, 2024
Public Works and Facilities: Chair Wheeler and Vice Chair Wolter Last Meeting Agenda | Next Meeting - May 28, 2024 (April 23, 2024 Cancelled) K. COUNCILMEMBER REPORTS
None.

K.1 Written Reports:

Councilmember Bagby
43 City Council Meeting Minutes - April 24, 2024 - Page 7 of 7 L. LEGISLATIVE REPORTS, LETTERS OF SUPPORT/OPPOSITION
L.1 Letter to State Water Board - Comments on Water Conservation 2nd Draft Regulations City Manager Kelley reported.

M. CITY MANAGER/CITY ATTORNEY REPORTS
City Manager Kelley reported.

N. COUNCIL DIRECTION ON FUTURE AGENDA ITEMS
Convert the May 22, 2024 regularly scheduled meeting to a Town Hall regarding item F.1.

Lyme Disease Signage to Public Works and Facilities Subcommittee.

O. ADJOURNMENT
Mayor Lands adjourned the meeting at 8:26 p.m. to the special budget workshop of the Cloverdale City Council scheduled for April 25, 2024 at the Cloverdale Fire District.

The next regularly scheduled meeting of the Cloverdale City Council is scheduled for May 8, 2024.

APPROVED ON:
______________________
Mike Maloney, City Clerk
44 City Council Meeting Minutes - April 25, 2024 - Page 1 of 4 124 N. Cloverdale Boulevard
Cloverdale, CA 95425
Phone: 707-894-2521
www.cloverdale.net

MINUTES - DRAFT

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

DEVELOPMENT SUCCESSOR AGENCY BOARD OF DIRECTORS
THURSDAY, APRIL 25, 2024
9 AM

FIRE DISTRICT EOC MEETING ROOM
451 S. CLOVERDALE BLVD. CLOVERDALE, CA, 95425
A. OPENING PUBLIC SESSION
A.1 Call to Order
Mayor Lands called the meeting to order at 9 a.m.

A.2 Pledge of Allegiance
Mayor Lands led the pledge of allegiance.

A.3 Roll Call

Present: Mayor Lands, Vice Mayor Wheeler, Councilmembers: Bagby, Morgenstern, Wolter

Absent: None.

A.4 Conflict of Interest Declaration
None.

A.5 Agenda Review (Changes and/or Deletions)
None.

B. PUBLIC COMMENTS
None.

C. BUDGET WORKSHOP
C.1 Budget Workshop for Fiscal Year 2024 - 2025 and Fiscal Year 2025 - 2026.

City Manager Kelley introduced the item.
45 City Council Meeting Minutes - April 25, 2024 - Page 2 of 4

1.Budget Presentation and Overview
City Manager Kelley and Finance Director Holmes presented and responded to Councilmember Inquiries.

2.Review of Fund Balances
Department heads presented and responded to Councilmember inquiries and comments.

3.Discuss Draft Budget for FY 24/25 and FY 25/26 which identifies beginning and ending Fund Balance and proposed revenue and expenditures for all City fun Council and Staff discussed.

Council provided direction to City Staff on the Draft City of Cloverdale's Fiscal Year Budgets for 2024/25 and 2025/26
D. ADJOURNMENT
Mayor Lands adjourned the meeting at 1:59 p.m. to the next regular meeting of the Cloverdale City Council scheduled for May 8, 2024.

APPROVED ON:
_____________________________
Mike Maloney, City Clerk
46 City Council Meeting Minutes - April 25, 2024 - Page 3 of 4 47 City Council Meeting Minutes - April 25, 2024 - Page 4 of 4 48 City Council/Successor Agency
Agenda Item Summary Agenda Item: G.3
Meeting Date: May 8, 2024
Agenda Section:

Consent
Staff Contact:

Alex Mog, City Attorney
Agenda Item Title:

Ordinance repealing and replacing Cloverdale Municipal Code Chapter 5.36, Rent Control in Mobile Home Parks, to Adopt New Rent Control Regulations for Mobile Home Parks. ________________________________________________________________________________________ Recommended Council Action(s):

Conduct second reading, by title only, and adopt an ordinance entitled, “An Ordinance of the Cloverdale City Council repealing and replacing Cloverdale Municipal Code Chapter 5.36, Rent Control in Mobile Home Parks, to Adopt New Rent Control Regulations for Mobile Home Parks.” ________________________________________________________________________________________ Background:

Cloverdale Municipal Code Chapter 5.36, Rent Control in Mobile Home Parks, establishes a regulatory scheme for rent increases in mobile home parks located within the City. On April 10, the City Council considered a proposed ordinance to repeal and replace Chapter 5.36 to adopt new rent control regulations for mobile home parks in Cloverdale. Following public comment and discussion, the City Council provided direction to staff regarding two specific changes to the proposed ordinance.

A thorough overview of the proposed ordinance, and related background, are included in the April 10 staff report. A detailed description of the two changes directed by the City Council is included in the April 24 staff report.
________________________________________________________________________________________ Summary:

At the April 24 City Council meeting, following public comment and discussion, the City Council introduced the proposed ordinance to repeal and replace Cloverdale Municipal Code Chapter 5.36. As part of that action, the Council made one change to the ordinance from how it appeared in the agenda packet.

Specifically, the Council decreased the maximum amount by which a park owner can increase the rent when an in-place sale of a mobile home occurs to a resident-to-be or current resident from ten percent (10%) to five percent (5%). No other edits were made as part of the Council’s introduction of the ordinance.

If the Council conducts the second reading and adoption of the ordinance, it will go into effect in thirty (30) days.
______________________________________________________________________________________ Options:

1. Conduct the second reading of an adopt the Ordinance;

2. Provide alternative direction to City staff.
________________________________________________________________________________________ Subcommittee Recommendation:

The proposed ordinance was introduced at the April 24 City Council meeting. 49 City Council/Successor Agency Agenda Item Summary
Meeting Date: May 8, 2024

Page 2 of 2 ends

________________________________________________________________________________________ Budget/Financial Impact:

A discussion of the fiscal impact of the proposed ordinance is included in the April 10 staff report. ________________________________________________________________________________________ Attachments:

1. Ordinance

2. Exhibit A
50 Ordinance No. ______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CLOVERDALE REPEALING AND REPLACING CLOVERDALE MUNICIPAL CODE CHAPTER 5.36,

RENT CONTROL IN MOBILE HOME PARKS, TO ADOPT NEW RENT CONTROL REGULATIONS FOR MOBILE HOME PARKS.

WHEREAS, the State of California recognizes, by the adoption of special legislation regulating tenancies of mobile home owners in mobile home parks, that there is a significant difference between homeowners in mobile home parks and other dwelling units; and

WHEREAS, the State likewise recognizes that homeowners in mobile home parks, unlike apartment tenants or residents of other rental housing stock, are in the unique position of having made a substantial investment in a residence, the space for which is rented or leased and not owned; and
WHEREAS, the City of Cloverdale has three (3) mobile home parks with a total of approximately one hundred eight three (183) spaces located within the City limits; and WHEREAS, mobile home spaces represent a significant portion of the affordable housing supply within the City; and
WHEREAS, mobile home parks are an important affordable housing resource for the Cloverdale’s seniors and low-income households; and

WHEREAS, it is often difficult to move mobile homes from one park to another due to the age and condition of some mobile homes and the limited availability of vacant spaces in mobile home parks; and

WHEREAS, it is often costly to move a mobile home and, in many instances, moving a mobile home requires separation of the mobile home from its appurtenances, which may create severe damage and depreciation in value to the mobile home; and WHEREAS, the City Council desires to adopt a new comprehensive mobile home rent control ordinance to help preserve mobile home parks as an affordable housing option and prevent displacement of mobile home park residents, many of whom are seniors, low-income, or otherwise potentially vulnerable to homelessness if displaced; and WHEREAS, the proposed ordinance would protect mobile home park residents from significant rent increases while ensuring that owners of mobile home parks continue to make a fair and reasonable return; and
WHEREAS, the Ordinance is intended to apply to all permanent residents of mobile home parks, regardless of whether the structure in which they reside meets the technical definition of a mobile home; and
51 WHEREAS, the City Council desires to adopt this Ordinance in order to protect and preserve the public health and welfare.

NOW, THEREFORE, the City Council of the City of Cloverdale does ordain as follows:

Section 1. Recitals.

The above recitals are true and correct and are incorporated into this Ordinance by reference.

Section 2. Repeal and Replace Chapter 5.36.

Chapter 5.36, Rent Control in Mobile Home Parks, of the Cloverdale Municipal Code, is hereby repealed and replaced in its entirety to read as set forth in Exhibit A, attached hereto and incorporated herein by reference.

Section 3. CEQA.

The City Council hereby finds the approval of this Ordinance is exempt from the California Environmental Quality Act (Public Resources Code §§ 21000 et seq., “CEQA,” and 14 Cal.

Code Reg. §§ 15000 et seq., “CEQA Guidelines”) under Section 15061(b)(3) of the CEQA Guidelines. This Ordinance established regulations prohibiting excessive space rent increases in mobile home parks. No new development will result from the proposed action, no new use is authorized, and there is no change in the regulations governing the physical development of mobile home parks. Accordingly, it can be seen with certainty that no impact on the physical environment will result.

Section 4. Severability.

If any section, sentence, clause, or phrase of this Ordinance or the application thereof to any entity, person, or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The City Council hereby declares that it would have adopted this Ordinance and each section, sentence, clause, or phrase thereof, irrespective of the fact that anyone or more section, subsections, sentences, clauses, or phrases be declared invalid or unconstitutional.

Section 5. Effective Date.

The City Clerk shall certify to the adoption of this Ordinance and shall cause the same or a summary thereof to be published as required by law. This Ordinance shall take effect thirty (30) days after its adoption.
52 INTRODUCED by the City Council of the City of Cloverdale on the 24th day of April 2024 and adopted on May 8, 2024, by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

None
SO ORDERED: ATTESTED:
________________________________ ________________________________ Todd Lands, Mayor Michael Maloney, City Clerk
53 EXHIBIT A
Chapter 5.36 RENT CONTROL IN MOBILE HOME PARKS

5.36.010 Findings and purpose.

5.36.020 Definitions.

5.36.030 Exemptions

5.36.040 Base Rent.

5.36.050 Establishment of New Rent After Vacancy

5.36.060 Allowed Rent Increases.

5.36.070 Special Rent Increases – Notice & Information Required to be Shared.

5.36.080 Special Rent Increases – Rent Dispute Process

5.36.090 Special Rent Increases – Arbitration Process

5.36.100 Standards of review.

5.36.110 Net Operating income

5.36.120 Implementation of Special Rent Increase.

5.36.130 Disclosures to Prospective Mobile Home Owner.

5.36.140 Translated Notices

5.36.150 Refusal of Mobile Home Owner to pay illegal rent.

5.36.160 Retaliation Prohibited

5.36.170 Rent stabilization administration fees.

5.36.180 Violation.

5.36.010 Findings and purpose.

A. Mobile Home Spaces represent a significant portion of the affordable housing supply within the City of Cloverdale. This ordinance is a comprehensive Mobile Home rent control ordinance intended to help preserve Mobile Home Parks as an affordable housing option and prevent displacement of Mobile Home Park residents, many of whom are seniors, low income or otherwise potentially vulnerable to Homelessness if displaced.

B. The purpose of this Chapter is to establish an efficient method for regulating Space rent increases in Mobile Home Parks in order to protect Mobile Home Owners from arbitrary, capricious or unreasonable rent adjustments while enabling Park Owners and/or operators and investors to earn a fair and reasonable return on their investment in their Mobile Home Parks.

C. The Ordinance provides Space rent stabilization protection to residents of recreational vehicles occupying Spaces in Mobile Home Parks for more than nine (9) months in recognition of the special status conferred by the recreational vehicle Park occupancy laws to such long-term residencies under Civil Code Section 799.45(b) and their similarity to Mobile Home tenancies.

D. The City Council intends that this chapter be interpreted and enforced fairly and equitably, in a nondiscriminatory manner, and in accordance with constitutional requirements. 54 5.36.020 Definitions.

For the purpose of this chapter, the following words, terms and phrases shall be defined as follows:
“Administrator” shall mean the City Manager of the City of Cloverdale, or the City Manager’s designee.
"Affected Mobile Home Owners" means those Mobile Home Owners whose Space is not legally exempt from this Ordinance.
"Arbitrator" means a person who is: (1) neither a Mobile Home Owner nor has an interest in a Mobile Home Park of a nature that would require disqualification under the provisions of the Political Reform Act if the person were a designated City employee, (2) has experience in analysis of financial records, and (3) meets one of the following criteria:
(a) Licensed attorney or certified public account in good standing who has experience in rental dispute hearings as an arbitrator or neutral fact finding; or (b) Retired judge.
“Base Rent” means the authorized rent pursuant to Section 5.36.040, as adjusted in accordance with this Chapter.
"Capital improvements" means those improvements that materially add to the value of the Mobile Home Park and appreciably prolong its useful life or adapt it to new uses, and which may be amortized over the useful remaining life of the improvement to the Park pursuant to the provision of the Internal Revenue Code. The term "capital improvements" does not include those costs associated with the normal maintenance and upkeep of facilities and premises which were reasonably intended to be part of consideration provided by the Park for rent.

Substantial rehabilitation of the Park that is necessitated as a result of the Park Owner's neglect, permissive waste, or deferred maintenance or acts of God shall not be regarded to be capital improvements. Proposed capital improvements claims must set forth an amortization table spreading the cost of the improvement over its proven useful life. Such costs must be separately itemized, if approved, on the monthly rent invoice. Monthly rent shall be decreased for such amortized capital improvement expenses at the end of the amortization period. Failure to do so shall be regarded to be an unauthorized increase in rent. Capital improvements must be for the primary benefit, use and enjoyment of the residents of the entire Park, and costs must be allocated over all beneficiaries of the improvement
"City" means the City of Cloverdale, California.
"Consumer price index" or "CPI" means the consumer price index for all Urban Consumers, San Francisco-Oakland-Hayward, CA Area, as published by the United States Bureau of Labor Statistics of the United States Department of Labor.
"Mobile Home" means a structure, designed for human habitation and for being moved on a street or highway under permit pursuant to California Vehicle Code Section 35790. Mobile 55 Home" includes a manufactured Home, as defined in Section 18007 of the California Health and Safety Code, and a Mobile Home, as defined in Section 18008 of the California Health and Safety Code, but does not include a recreational vehicle, as defined in Section 799.24 of the California Civil Code and Section 18010 of the California Health and Safety Code, or a commercial coach, as defined in section 18001.8 of the California Health and Safety Code except when such a vehicle has continuously remained within a Mobile Home Park for a period in excess of nine (9) months.
"Mobile Home Park" or "Park" means any area of land within the City of Cloverdale where two or more Mobile Home Spaces are rented, or held out for rent, to accommodate Mobile Homes used for human habitation.
"Mobile Home Space" or “Space” means the site within a Mobile Home Park intended, designed or used for the location or accommodation of a Mobile Home and any accessory structures or appurtenances attached thereto or used in conjunction therewith. "Mobile Home Space" shall also include, for purposes of this Chapter, rentable spaces within Mobile Home Parks which have been occupied by a "recreational vehicle" as defined by Civil Code Section 799.24 for a period of nine (9) months or more.
"Mobile Home Owner" or “Resident” means a person who is the Owner of a Mobile Home and legally occupies the Mobile Home within a Mobile Home Park. “Mobile Home Park Owner”, or “Park Owner” means the Owner or operator of a Mobile Home Park or an agent or representative authorized to act on said Owner’s or operator’s behalf in connection with the maintenance or operation of such Park. "Party" as used in this chapter refers to any affected Mobile Home Owner and/or Owner involved in proceedings under this chapter.
"Prospective Mobile Home Owner" means a person who is in the process of negotiating a tenancy in a Mobile Home Park.
"Space Rent" or “Rent” means the consideration, including any bonus, benefit or gratuity, demanded or received by a Park Owner for, or in connection with, the use or occupancy of a Mobile Home Space, or in connection with the assignment of a lease, or in connection with subleasing of a Space. Rent shall not include:
(a) Utility charges for sub-metered gas and electricity. (b) Charges for water, refuse disposal, sewer service, and/or other services, which are either provided and charged to Mobile Home Owners solely on a cost pass-through basis and/or in a manner regulated by State or local law.
(c) Any amount paid for the use and occupancy of a Mobile Home unit (as opposed to amounts paid for the use and occupancy of a Mobile Home Space). 56 (d) Charges for laundry services.
(e) Charges for the use of storage areas which the Mobile Home Owner is not entitled to use as part of the rental of a Mobile Home Space.
"Rent increase" means any increase in Base Rent charged by an Owner to a Mobile Home Owner or offered to a prospective Mobile Home Owner.
"Rent stabilization administration fee" means the fee established from time to time by resolution of the City Council in accordance with the provisions of the ordinance. "Substantial rehabilitation" means that work done by an Owner to a Mobile Home Space or to the common areas of the Mobile Home Park, exclusive of a capital improvement as that term is defined herein, the value of which exceeds two hundred dollars ($200.00) and which is performed whether to secure compliance with any state or local law or to repair damage resulting from fire, earthquake, or other casualty or natural disaster, to the extent such work is not reimbursed by insurance.

5.36.030 Exemptions
This Chapter is applicable to all Mobile Home Spaces within the City of Cloverdale except for the following exemptions:

A. Spaces that are subject to a written lease of greater than one (1) year, and which is voluntarily entered into between a Mobile Home Owner and Park Owner. At least seven (7) days prior to the execution of the such lease, the Park Owner shall provide the Mobile Home Owner with a copy of this Ordinance (even if a copy was previously provided to the Mobile Home Owner when they were a Prospective Mobile Home Owner).

B. Spaces that are not the principal residence of the Mobile Home Owner.

C. Any Mobile Home Space exempt from this Ordinance under State or Federal law.

5.36.040 Base Rent.

Except as provided in this Chapter, a Park Owner shall not demand, accept or retain Rent for a Mobile Home Space exceeding the Base Rent. The Base Rent shall be determined as follows:

A. If a Mobile Home Space was first rented by the Mobile Home Owner occupying the Space prior to January 1, 2024, then the Base Rent shall be the rent in effect on January 1, 2024, as adjusted pursuant to this Chapter.

B. If a Mobile Home Space was first rented by the Mobile Home Owner occupying the Space on or after January 1, 2024, then the Base Rent shall be the rent in effect on the first date of the tenancy, as adjusted pursuant to this Chapter.
57 C. The Base Rent for a Mobile Home Space that becomes subject to this Chapter upon the expiration of an exempt lease shall be the Rent in effect under the exempt lease as of the date of its expiration.

5.36.050 Establishment of New Rent After Vacancy
A. A Mobile Home Park Owner shall be permitted to charge a new Base Rent for a Mobile Home Space whenever a lawful space vacancy occurs. For purposes of this section, a lawful space vacancy is defined as follows:
(1) A vacancy of the Mobile Home Space arising from the voluntary removal of a Mobile Home from the Mobile Home Space by the affected Mobile Home resident. A removal of the Mobile Home from the Space for the purpose of performing rehabilitation or capital improvements to the Space or for the purpose of upgrading the Mobile Home shall not constitute a voluntary removal of the Mobile Home.

B. When a new Base Rent is established following the vacancy of a Mobile Home Space pursuant to this subsection, the Park Owner shall give written notice to the new affected Mobile Home resident of the twelve (12) month anniversary date for rent increases allowed under this Chapter and shall give written notice to such affected resident that the Space Rent may be subject to stabilized rent increases pursuant to the provisions of this chapter.

C. Upon an in-place sale of a Mobile Home on site to a resident-to-be or current resident, the Park Owner may increase the Rent by an amount that does not exceed five percent (5%) of the then current Base Rent.

5.36.060 Allowed Rent Increases.

A. An Owner may increase the Rent payable for a Mobile Home Space no more than once in any 12-month period. Such rent increase shall not exceed the lesser of:

1. 70% of the annual percentage change, as measured form December to December of successive years, in the CPI, or

2. ii) 3%.

B. If the City Council adopts a rent stabilization administration fee, a Park Owner may choose to apportion to each Mobile Home Space up to fifty percent (50%) of the fee attributable to the Space, in addition to any increase in the Space Rent in accordance with subsection (A) of this section, subject to the following:

1. The Owner shall provide to all Affected Mobile Home Owners documentation supporting the allowable amount to be collected in order to recover a portion of rent stabilization administration fees. At a minimum such documentation shall include:
billing notices or other equivalent documents from the City imposing the rent stabilization administration fee; a copy of this Section which authorizes the apportionment of rent stabilization administration fees; the calculations used by the 58 Owner to apportion the cost of the allowable percentage among the Affected Mobile Home Owners.

2. The apportionment of the rent stabilization administration fee shall not be considered part of the rent base upon which future rent increases can be made.

C. Notice of Rent increases pursuant to this section shall be provided to affected Mobile Home Owners at least ninety (90) days before any increase is to take effect, or such longer period of time required by State law.

5.36.070 Special Rent Increases – Notice & Information Required to be Shared.

A. Whenever the Owner desires to increase the Rent by more than the amount authorized by Section 5.36.060, the Owner shall at the same time and in the same manner serve the Affected Mobile Home Owners with a notice that sets forth all of the following information:

1. The amount of the Rent increase both in dollars and as a percentage of existing rent and documentation supporting the level of increase desired, including at a minimum: a summary of the unavoidable increases in maintenance and operating expenses; a statement of the cost, nature, amortization, and allocation among Mobile Home Spaces of any substantial rehabilitation or capital improvement; a summary of the Owner's net operating income of the preceding twenty-four (24) months and other relevant information that supports the level of rent increase desired;

2. The identity of all other Affected Mobile Home Owners and the Spaces which they rent and a roster of residents in the Park occupying recreational vehicles in place for more than nine (9) months;

3. The address and telephone number of the Administrator and: (a) the fact that the resident is encouraged to contact the Administrator for an explanation of the provisions of this article; (b) documentation supporting the level of increase is on file with the Administrator;

4. A copy of the official petition form as prepared and provided by the Administrator which initiates the process established by this article;

5. In addition, Park Owner shall place on file with the Administrator two (2) copies of:
documentation supporting the level of increase desired, including at a minimum: a summary of the unavoidable increases in maintenance and operating expenses; a statement of the cost, nature, amortization, and allocation among Mobile Home Spaces of any substantial rehabilitation or capital improvement; a summary of the increased cost of the Owner's debt service and the date and nature of the sale or refinancing transaction; a summary of the Owner's net operating income of the preceding twenty-four (24) months and other relevant information that supports the level of rent increase desired. These documents will be available for inspection at City Hall; 59 6. If applicable, notification that the proposed Rent increase exceeds three hundred percent (300%) of the change in the CPI, and that arbitration is deemed automatically required by the provisions of this Chapter, without any need to file an arbitration petition. Such notices shall bear the following language: "Arbitration of the proposed increase is automatically required in this matter by operation of law." Erroneous use of this notice shall be regarded as an irrevocable stipulation to the jurisdiction of the arbitrator.

C. An Owner failing to provide an Affected Mobile Home Owner with the information, documents, and notices required by this section shall not be entitled to collect any rent increase otherwise authorized by this Chapter from that Mobile Home Owner nor to any rent increase that might otherwise be awarded by an Arbitrator. Such failure by the Owner shall be a defense in any action brought by the Mobile Home Owner to recover possession of a Mobile Home Space or to collect any rent increase from the resident.

5.36.080 Special Rent Increases – Rent Dispute Process
A. Mandatory meet-and-confer meeting. Whenever the Park Owner desires to increase the Rent by more than the amount authorized by Section 5.36.060, the Residents and Park Owner must meet and confer with each other (or their authorized representatives) at a location in the Mobile Home Park or otherwise accessible within the City of Cloverdale. Such meeting shall occur at least seven (7) days, but not longer than fourteen (14) after the notice is sent. Written notice of the time, place and date of the meeting should be provided by the Park Owner to all affected Mobile Home Owners at least seventy-two (72) hours before the meeting. If the Park Owners or residents fail to agree on the time, place and date of the hearing within seventy-two (72) hours of when the rent increase notice is sent, the Park Owner shall notify the Administrator, who shall set the time, date, and place of the meeting.

B. At the meeting, representatives of the parties should exchange documentary evidence that the parties in good faith then know will be used to support their respective positions in an arbitration and discuss the issues in dispute. In the case of a Park Owner, all financial data upon which any proposed increase is claimed shall be supplied to resident representatives at the time of the meet-and-confer meeting. The Arbitrator may deny an application based on the applicant's failure to participate in good faith in the meet and confer process.

C. The Park Owner has a duty to provide adequate information to the residents regarding the Park's net operating income sufficient for a reasonably sophisticated inquiry into the financial status of the Park Owner's business. This will consist of true and accurate book entries or other competent evidence of gross income including, but not limited to, gross rents, interest upon security and cleaning deposits, income from ancillary services (submetering of utilities, laundry facilities, etc.) and true and accurate book entries or other competent evidence of operating expenses including, but not limited to, license fees, property taxes, utilities, insurance, management expenses, landlord performed labor, building and grounds maintenance, legal fees, auto and truck expenses, employee benefits, permits, refuse removal, ground lease payments, and similar additional expenses. 60 D. If discussions between Park Owner and Residents do not resolve the dispute between them, the Residents or their representative may file with the Administrator a petition for Arbitration a copy of the notice of rent increase, within thirty (30) days after the date upon which the rent increase notice is received. The petition must be signed by individuals representing greater than fifty percent (51%) of all Mobile Home Spaces affected by the proposed Rent Increase.

Upon the filing of a petition, the Rent increase is not effective and may not be collected until and to the extent it is awarded by an arbitrator or until the petition is abandoned. As used herein, the term "abandoned" refers to lack of prosecution of the arbitration by the Mobile Home residents' representative(s). An automatic arbitration based upon a three hundred percent (300%) CPI increase will not require active resident prosecution, although such prosecution will not be prohibited. The term "prosecution" refers to actively pursuing necessary steps toward preparing the residents' case for the arbitration hearing.

E. Contents of Petition for Arbitration.

1. The petition for arbitration shall set forth the total number of affected rented Spaces in the Mobile Home Park, shall identify the Space occupied by each resident and shall state the date upon which the notice of the rent increase was received by the resident(s).

2. After obtaining the required signatures, the resident(s) shall deliver the petition or mail it by registered or certified mail to the Administrator at Cloverdale City Hall. No petition shall be accepted unless it is accompanied by the requisite number of signatures and is received in the office of the Administrator within the required period set forth above. The Administrator shall provide a copy of the completed petition form to both parties as soon as practicable.

F. Within five (5) business days of notification of the completed petition form, or upon providing the Administrator with notice of a Rent increase of greater than three hundred percent (300%) of CPI, the Park Owner shall pay the Rent Control Arbitration Fee, if one has been established by the City Council, to the Administrator. The amount of such fee shall be an operating expense to be considered by the arbitrator during any required arbitration.

G. Information questionnaire. After the Administrator has accepted a petition for Space rent review, the Administrator may remit to the Owner and residents an information questionnaire in such form as the Administrator may prescribe. The completed information questionnaire must be returned to the Administrator at least five (5) working days prior to the date scheduled for hearing of the petition by the arbitrator. Copies of the completed information questionnaire shall be provided to the arbitrator and the opposing party.

H. A Park Owner's failure to provide the minimum information required by this Chapter or attend the hearing shall require the Administrator to suspend further proceedings under this article. This determination may also be made by the Arbitrator during the Arbitration process. The Park Owner's application for a rent increase under such circumstances shall be deemed defective, without force or effect, and deemed withdrawn. Renoticing of the increase shall be required to reinitiate an application for rent increase.

5.36.090 Special Rent Increases – Arbitration Process
61 A. Upon the receipt of a valid petition pursuant to Section 5.36.080, or notification from the Park Owner of a rent increase requiring mandatory arbitration, the Administrator shall, within ten (10) working days, assign an arbitrator. The arbitrator may, but is not required be associated with the Sonoma County Community Development Commission.

B. After the Administrator assigns an arbitrator, the arbitrator shall schedule the arbitration hearing for a date at least fifteen (15) days, but no more than thirty (30) days after the date of selection, unless the Parties agree otherwise. The arbitrator shall notify the Administrator, who shall immediately notify the Park Owner and affected Mobile Home Owners of the date, time and place of the hearing and this notice shall be served either in person or by ordinary mail. The arbitration hearing shall occur within the City of Cloverdale.

C. Arbitration hearing.

1. The Owner and resident(s) may appear at the hearing and offer oral and documentary evidence. Both the Owner and resident(s) may designate a representative or representatives to appear for them at the hearing. The arbitrator may grant or continuances as he or she deems appropriated. The burden of proving that the amount of rent increase is reasonable shall be on the Owner by a preponderance of the evidence.

2. The hearing need not be conducted according to technical rules relating to evidence and witnesses. The arbitrator may establish such rules and procedures regarding the conduct of the hearing, and the introduction of evidence, as long as such rules and procedures comply with this Ordinance.

3. The arbitrator shall, within fourteen (14) days of the hearing, submit by mail a written statement of decision and the reasons for the decision to the Administrator who shall forthwith distribute by mail copies of the decision to the Owner and resident(s). The arbitrator shall determine the amount of rent increase, if any, which is reasonable based upon all the provisions of this article.
4 The arbitrator shall not allow more than one (1) rent increase per Park per twelve-month period.

5. The decision of the arbitrator, rendered in accordance with this section, shall be final and binding upon the Owner and all Affected Mobile Home Owners. The decision of the arbitrator will be subject to the provision of Code of Civil Procedure Section 1094.5.

6. Any party may have electronic recording equipment or a court reporter present to record and prepare a transcript of the hearing before the arbitrator, however, such equipment or reporter shall be provided at that party's own expense.

7. The arbitrator is authorized to modify the basic time periods set forth herein at their discretion to promote the purposes of this program provided a final decision is rendered within one hundred eighty (180) days of the notice of rent increase.

7. Any procedural or jurisdictional dispute regarding the processes set forth herein may be decided by the arbitrator.

8. The legislative authority of the City Council to modify this ordinance or otherwise regulate rents in Mobile Home Parks shall not be limited or abridged by any decision of the arbitrator.

9. The Administrator shall provide administrative assistance to the arbitrator as necessary. 62 10. Failure of the Park Owner to attend the arbitration hearing, without good cause as determined by the arbitrator, shall be considered an abandonment of the rent increase.

11. Failure of the Park Owner to provide any documents reasonable requested by the Mobile Home Park Owners, or their representatives as part of this arbitration hearing, may be considered by the arbitrator in making a decision.

5.36.100 Standards of Review for Determining a Fair Return The Park Owner shall be entitled to charge rents sufficient to earn a fair and reasonable return. It is presumed that a Park’s Net Operating Income, as defined in Section 5.36.110, in the calendar year immediately proceeding the enactment of this Ordinance (2023) provide a fair and reasonable return to the Park Owner. Furthermore, it is presumed that Net Operating Income adjusted by the percentage increase in the CPI since 2023 will continue to provided a fair and reasonable return to the park owner. The Park Owner may rebut this presumption by demonstrating unusual expenses or other circumstances during the 2023, or subsequent years.

In evaluating the Space increase proposed by the Owner, the following factors may be considered in evaluating whether the increase in the rent Proposed by the Owner is justified:

A. Beneficial increases in maintenance and operating expenses, including but not limited to the reasonable value of the Owner's labor and any increased costs for services provided by a public agency, public utility, or quasi-public agency or utility; B. The substantial rehabilitation or the addition of capital improvements, including the reasonable value of the Owner's labor, as long as such rehabilitation or improvement has been completed and is:

1. Distinguished from ordinary repair or maintenance,

2. For the primary benefit, use and enjoyment of the residents,

3. Permanently fixed in place or relatively immobile and dedicated to the use of the property,

4. Not one for which a "use fee" or other charge is imposed on residents for its use,

5. Cost-factored and amortized over the good faith estimate of the remaining useful life of the rehabilitation or improvement, and

6. Does not constitute maintenance of the infrastructure of gas or electrical lines within the Mobile Home Park for which the public utility has permitted the ParkOwner a special premium with the intent that it be used to replace or otherwise maintain the system within the Mobile Home Park;
C. The rental history of the Space or the Park of which it is a part, including:

1. The presence, or absence of past increases,

2. The frequency of past rent increases, and

3. The occupancy rate of the Park in comparison to comparable Parks in the same general area;
63 D. The physical condition of the Mobile Home Space or Park of which it is a part, including the quantity and quality of maintenance and repairs performed during the preceding twelve (12) months;
E. Any increase or reduction of housing services since the last rent increase; F. Existing Space rents for comparable Spaces in comparable Parks; G. Other financial information which the Owner is willing to provide; H. Any costs incurred as a result of a natural disaster and only to the extent such costs have not been reimbursed to the Owner by insurance or other sources; and I. Any increase or decrease in the net operating income for the Park.

5.36.110 Net Operating income
In evaluating a Space rent increase sought by an Owner to maintain the Owner's net operating income from the Park, the following definitions and provisions shall apply:

A. "Net operating income" of a Mobile Home Park means the gross income of the Park less the operating expenses of the Park.

B. "Gross income" means the sum of the following:

1. Gross Space rents, computed as gross Space rental income at one hundred percent (100%) occupancy (including any Spaced exempt from the Ordinance); plus

2. Other income generated as a result of the operation of the Park, including, but not limited to, fees for services actually rendered; plus

3. Revenue received by the Park Owner from the sale of utilities to Park residents where such utilities are billed individually to the Park residents by the Park Owner. This revenue shall equal the total cost of the utilities to the residents minus the amount paid by the Park Owner for such utilities to the utility provider; minus

4. Uncollected Space rents due to vacancy and bad debts to the extent that the same are beyond the Park Owner's control. Uncollected Space rents in excess of three percent (3%) of gross Space rent shall be presumed to be unreasonable unless established otherwise and shall not be included in computing gross income. Where uncollected Space rents must be estimated, the average of the preceding three (3) years' experience shall be used.

C. "Operating expenses" means:

1. Real property taxes and assessments;

2. Utility costs to the extent that they are included in Space rent;

3. Management expenses including the compensation of administrative personnel, including the value of any Mobile Home Space offered as part of compensation for such services, reasonable and necessary advertising to ensure occupancy only, legal and accounting services as permitted herein, and other managerial expenses. Management expenses are 64 presumed to be not more than five percent (5%) of gross income, unless established otherwise;

4. Normal repair and maintenance expenses for the grounds and common facilities including but not limited to landscaping, cleaning and repair of equipment and facilities;

5. Owner-performed labor in operating or maintaining the Park. In addition to the management expenses listed above, where the Owner performs managerial or maintenance services which are uncompensated, the Owner may include the reasonable value of such services. Owner-performed labor shall be limited to five percent (5%) of gross income unless the arbitrator finds that such a limitation would be substantially unfair in a given case. A Park Owner must devote substantially all of their time, that is, at least forty (40) hours per week, to performing such managerial or maintenance services in order to warrant the full five percent (5%) credit of their labor as an operating expense.

No credit for such services shall be authorized unless a Park Owner documents the hours utilized in performing such services and the nature of the services provided;

6. Operating supplies such as janitorial supplies, gardening supplies, stationery, and so forth;

7. Insurance premiums prorated over the life of the policy;

8. Other taxes, fees and permits.

9. Capital improvement costs. Expenditures for capital improvements to upgrade existing facilities shall be an allowable operating expense only if the Park Owner has:
i. Established upon written verification, or by other competent evidence to the satisfaction of the arbitrator, that the cost of the capital improvements provided to the Park residents, for their general use, are factually correct as claimed, ii. Such capital improvements are wholly compensable to the Park Owner upon appropriate amortization of their cost, together with a reasonable return upon the capital improvement investment made by the Park Owner,
iii. Any capital improvement expenses shall be amortized over the reasonable life of the improvement or such other period as may be deemed reasonable by the arbitrator under the circumstances. In the event that the capital improvement expenditure is necessitated as a result of an accident, disaster or other event for which the Park Owner received insurance benefits, only those capital improvement costs otherwise allowable exceeding the insurance benefits may be calculated as operating expenses. d. Operating expenses shall not include the following:

1. Mortgage principal, interest payments or other debt service expenses;

2. Depreciation;

3. Any expense for which the Park Owner is reimbursed;

4. Expenses attributable to unreasonable delays in performing necessary maintenance or repair work or the failure to complete necessary replacements.

5. Political contributions and payments to organizations which are substantially devoted to legislative lobbying purposes;

6. Penalties, fees or interest assessed or awarded for violation of any provision of this Chapter or other provisions of law;

7. Attorneys' fees and costs, except printing costs and documentation as required by this Chapter, incurred in proceedings before an arbitrator or in connection with legal 65 proceedings challenging the decision of an arbitrator or the validity or applicability of this article.
e. All operating expenses must be reasonable. Whenever a particular expense exceeds the normal industry or other comparable standard, or increases significantly in a particular year, the Park Owner shall bear the burden of proving the reasonableness of the expense, To the extent that an arbitrator finds any such expense to be unreasonable, the arbitrator shall adjust the expense to reflect the normal industry or other comparable standard.

5.36.120 Implementation of Special Rent Increase.

A. During the pendency of the arbitration hearing, the Park Owner may implement the amount of Rent increase authorized by Section 5.36.060.

B. If a final decision by an arbitrator finds that the Park Owner is entitled to a rent increase above the amount otherwise allowed by Section 5.36.060, the Park Owner may implement such rent increase upon providing required notice to all affected Mobile Home Park Owners.

Such increase may be in addition to the rent increase imposed pursuant to Subsection A, above.

5.36.130 Disclosures to Prospective Mobile Home Owner.

Park Owner shall disclose to each prospective Mobile Home Owner the proposed Base Rent for the Mobile Home Space, any rental agreement options, provide each prospective Mobile Home Owner a copy of this Chapter, and that if the prospective Mobile Home Owner signs a lease with a term of more than one year, that lease will be exempt from rent stabilization, in addition to any notice required by the Mobile Home Residency Law or any other applicable state law. The Park Owner shall give the required disclosure and provide a copy of this Chapter to the prospective Mobile Home Owner at the time that the Park Owner, or Owner’s representative, receives the prospective Mobile Home Owner’s application for tenancy. The Park Owner shall obtain a signature of the prospective Mobile Home Owner on the disclosure form acknowledging receipt of the disclosures. The Park Owner shall retain the signed disclosure form throughout the entire tenancy of the Mobile Home Owner. This signed form shall be made available to the Administrator upon reasonable written notice.

5.36.140 Translated Notices
Any notices required to be provided by the Park Owner pursuant to this chapter shall be provided in both English and Spanish.

5.36.150 Refusal of Mobile Home Owner to pay illegal rent.

It shall be unlawful for a Park Owner to demand, accept, receive, or retain Rent in excess of the amounts authorized by this Article. An affected Mobile Home Owner may refuse to pay any Rent in excess of the maximum Rent permitted by this Chapter. The fact that such unpaid Rent is 66 in excess of the maximum Rent shall be a defense in any action brought to recover possession of a Mobile Home Space for nonpayment of Rent or to collect the illegal Rent.

5.36.160 Retaliation Prohibited
A. It shall be unlawful for a Park Owner to evict a Mobile Home Owner, or otherwise retaliate against a resident or prospective resident for the resident's or prospective resident’s assertion or exercise of rights under this Changer in any manner, including:

1. Threatening to bring or bringing an action to recover possession of a Space.

2. Engaging in any form of harassment that causes the Mobile Home Owner to quit the premises.

3. Decreasing housing services.

4. Unlawfully increasing Rent.

5. Imposing or increasing a security deposit or other charge payable by the Mobile Home Owner
B. The residents have a right to organize a resident's association without hindrance from the Park Owner to exercise the rights provided under this Ordinance.

5.36.170 Rent stabilization administration fees.

All or any portion of the costs to administer this Chapter may be collected by the imposition of an annual rent stabilization administration fee, which may be established by the City Council by resolution. The fee, if any, shall be chargeable against every Mobile Home Space in the City subject to rent stabilization. The Park Owner shall remit any adopted rent stabilization administration fee by September 1 of each year. The fee is intended to cover the full cost of administration and the fee assessment amount may be amended from time to time by resolution of the City Council. The City Council may adopt by resolution additional fees as necessary to reimburse the City for its costs to implement this Chapter, and may allocate specified charges to the respective Parties.

5.36.180 Violation
Every person who violates any provision of this chapter is guilty of a misdemeanor and shall be subject to the provisions of Title I of this code.
67 City Council/Successor Agency
Agenda Item Summary Agenda Item:

Meeting Date:

I.1
May 8, 2024
Agenda Section:

New Business
Staff Contact:

Susie Holmes, Finance Director
Agenda Item Title:

General Fund, Water and Waste Water Reserves Balances as of June 30, 2023 ________________________________________________________________________________________ Recommended Council Action(s):

Receive the General Fund Surplus affecting the Reserves Balances as of June 30, 2023 by Account Type and the Water and Waste Water Enterprise funds surplus and the effect on the respective Reserve Balances for informational purposes.
________________________________________________________________________________________ Background:

The City Council has adopted a reserve policy. The purpose of this policy is to provide guidance on maintaining reasonable levels of reserves in the City’s General, Water, and Sewer Funds. The General Fund Balance in the City’s financial statements is comprised of five categories:
• Non-spendable – these are typically non-cash items such as prepaid expenses, inventories and capital assets.
• Restricted – Amounts that can be spent only for specific purposes as stipulated by constitution, external resource provider or through legislation.
• Committed – amounts that can be spent for specific purposes determined by a formal action of the City Council
• Assigned - are intended to be used by the government for specific purposes but do not meet the criteria to be classified as restricted or committed.
• Unassigned fund balance - is the residual classification for the government’s general fund and includes all spendable amounts not contained in the other classifications. ________________________________________________________________________________________ Summary:

The City Council has a General Fund Surplus Policy which dictates how any surplus derived from the Annual Financial Audit should be dedicated and the priority order. Based on the criteria in the policy the first two steps were taken with the surplus of $42,000 from the 2022-23 Audit.

1. Emergency Reserve (Assigned) Surplus Policy states: 30% of any surplus up to $100,000 shall be set aside up to 8% of the annual general fund expenditures. a) 8% of budgeted annual General Fund expenditures = $829,042 b) Emergency Reserve balance prior to audit = $688,105
c) $12,600 is transferred to the Emergency Reserve
d) Current Emergency Reserve balance = $700,705
68 City Council/Successor Agency Agenda Item Summary
Meeting Date: May 8, 2024

Page 2 of 4 ends

2. Contingency Reserve (Assigned) Surplus Policy states: any remaining general fund surplus shall first be used to maintain contingency up to 17%.
a) 17% of budgeted annual General Fund expenditures - $1,761,713 b) Contingency Reserve balance prior to audit = $1,668,436 c) $29,400 is transferred to the Contingency Reserve
d) Current Contingency Reserve balance = $1,697,836

3. Equipment Replacement Reserve (Assigned) Surplus Policy states: any remaining in excess of the amounts stated above shall be equal to annual depreciation +5% a) Annual depreciation + 5% = $50,554
b) Equipment Replacement reserve balance prior to audit - $171,902 c) $0 is transferred to Equipment Replacement Reserve.
d) Current Equipment Replacement Reserve - $171,902

4. Police Vehicle Replacement Reserve (Assigned) Surplus Policy states: any remaining in excess of the amounts stated above shall be equal to annual depreciation +5% a) Annual depreciation + 5% = $47,859
b) Police Vehicle Replacement reserve balance prior to audit $284,215 c) $0 is transferred to Police Vehicle Replacement Reserve. d) Current Police Vehicle Replacement reserve - $284,215

5. Facility Replacement and Maintenance Reserves (Assigned) Surplus Policy states: any remaining in excess of the amounts stated above shall be equal to annual depreciation +5% a) Annual depreciation + 5% = $43,595
b) Facility Replacement and Maintenance Reserves prior to audit - $233,416 c) $0 is transferred into Facility Replacement and Maintenance Reserves. d) Current Facility Replacement and Maintenance reserve - $233,416

6. Compensated Absences Reserve (Assigned) Surplus Policy states: any remaining in excess of the amounts stated above shall be equal to 10% of non-current employee compensated absences payable until 50% is reached.
a) Non-current employee compensated absence payable as of 6/30/2023 - $319,890. b) 50% of non-current employee compensated absences - $159,945. c) Compensated Absences reserve balance as of 6/30/2023 - $113,060. d) $0 is transferred to long-term compensated absences payable. e) Current Compensated Absences reserve balance - $113,060 69 City Council/Successor Agency Agenda Item Summary
Meeting Date: May 8, 2024

Page 3 of 4 ends

Water Enterprise
The City Council Surplus Policy dictates how any surplus derived from the Annual Financial Audit should be dedicated and the priority order. Based on the criteria in the policy the first two steps were taken with the surplus of $920,432 from the fy 2022-23 Audit.

1. Equipment/Vehicle Replacement Reserve (Assigned) Surplus Policy states: any remaining in excess of the amounts stated above shall be equal to annual depreciation +5% a) Annual depreciation + 5% = $67,148.
b) Equipment Replacement reserve balance prior to audit - $0. c) $67,148 is transferred to Equipment Replacement Reserve. d) Current Equipment Replacement Reserve - $67,148.

2. Facility Replacement and Maintenance Reserves (Assigned) Surplus Policy states: any remaining in excess of the amounts stated above shall be equal to annual depreciation +5% a) Annual depreciation + 5% = $285,279.
b) Facility Replacement and Maintenance Reserves prior to audit - $0. c) $285,279 is transferred into Facility Replacement and Maintenance Reserves. d) Current Facility Replacement and Maintenance reserve - $285,279.

Waste Water Enterprise
The City Council Surplus Policy dictates how any surplus derived from the Annual Financial Audit should be dedicated and the priority order. Based on the criteria in the policy the first two steps were taken with the surplus of $921,495 from the fy 2022-23 Audit.

1. Equipment/Vehicle Replacement Reserve (Assigned) Surplus Policy states: any remaining in excess of the amounts stated above shall be equal to annual depreciation +5% a) Annual depreciation + 5% = $23,648.
b) Equipment Replacement reserve balance prior to audit - $0. c) $23,648 is transferred to Equipment Replacement Reserve. d) Current Equipment Replacement Reserve - $23,648.

2. Facility Replacement and Maintenance Reserves (Assigned) Surplus Policy states: any remaining in excess of the amounts stated above shall be equal to annual depreciation +5% a) Annual depreciation + 5% = $66,029.
b) Facility Replacement and Maintenance Reserves prior to audit - $0 c) $66,029 is transferred into Facility Replacement and Maintenance Reserves. d) Current Facility Replacement and Maintenance reserve - $66,029. 70 City Council/Successor Agency Agenda Item Summary
Meeting Date: May 8, 2024

Page 4 of 4 ends

The following chart describes the General Fund Reserve Balance by type, account name, and balance. The total of all these accounts makes up the General Fund Reserve Balance:

General Fund Balance @ June 30, 2023 Ending Balance
25300-000 Unassigned Unrestricted $ 3,870,267
25320-030 Assigned Emergency Reserve $ 700,705
25320-031 Assigned Contingency Reserve $ 1,697,836
25320-023 Assigned CIP Water Projects $ 165,872
25320-022 Assigned CIP Wastewater Projects $ 250,000
25320-021 Assigned CIP GF Projects $ 405,760
25310-017 Assigned Equipment Replacement $ 171,902
25310-011 Assigned Vehicle Replacement (Patrol) $ 284,215 25310-012 Assigned Bldg. Maintenance & Repairs $ 233,416 25310-013 Assigned Compensated Absences $ 113,061
25310-021 Committed Undergrounding $ 98,400
Total $ 7,991,433
________________________________________________________________________________________ Alternative Options:

None.
_______________________________________________________________________________________ Subcommittee Recommendation:

None.
________________________________________________________________________________________ Budget/Financial Impact:

None.
________________________________________________________________________________________ Attachments:

1. Reserve Policy and General Fund Surplus Policy
71 RESERVE POLICY
The purpose of this policy is to provide guidance on maintaining reasonable levels of reserves in the City’s General, Water, and Sewer Funds.

The General Fund Balance in the City’s financial statements is comprised of five categories:
 Non-spendable Funds (non-cash items such as prepaid expenses and inventories)  Restricted Funds (externally enforceable legal restrictions)  Committed Funds (limitations imposed by the City Council)  Assigned Funds (intended to provide a source of funds for various needs)  Unassigned Funds (net resources in excess of what is classified in one of the other categories) This policy incorporates all previous City Council policies regarding General Fund reserves and the requirements of Governmental Accounting Standards Board (GASB) Statement No. 54. It will help guide current and future allocation levels to various reserve categories in the General Fund by setting out specific target amounts for the Committed and Assigned categories of the General Fund balance.

Committed Fund Balances
Emergency Reserve Fund: The City of Cloverdale shall maintain an Emergency Reserve Fund for any of the unforeseen and non-recurring events listed below that create significant financial difficulty for the City:
a. Sudden and unexpected significant facility or infrastructure failures that pose a safety risk to staff or the community;
b. Declaration of a State of Emergency by the Governor, or a local emergency declared by the City Council;
c. Unanticipated expenditures or reduction in revenues as a result of legislative changes from State/Federal governments in the current fiscal year;
d. Acts of Terrorism declared by the Governor or the President of the United States; e. Acts of Nature which are infrequent in occurrence;
f. Other catastrophic events which are infrequent in occurrence.

The target maximum reserve amount to be carried in the Emergency Reserve account shall be equal 8% of annual General Fund expenditures. For purposes of this section, expenditures shall include transfers out but not anticipated litigation expenses, reimbursed developer expenses or routine capital outlays which are all discretionary. Emergency Reserve Funds shall only be used upon approval of the City Council by a simple majority vote.
72 Contingency Reserve Fund: The City of Cloverdale shall maintain a Contingency Reserve Fund equal to 17% of expenditures in the General Fund. For purposes of this section, expenditures shall include transfers out but not anticipated litigation expenses, reimbursed developer expenses or routine capital outlays which are all discretionary. Reserves of 17% are considered by to be a good level at which to maintain the City's credit worthiness, based on widely used and accepted best practices. The purposed of these reserves is to provide for:
a. Cash flow requirements
b. Legal requirements as part of debt financing
c. Economic uncertainties including downturns in the local or national economy Assigned Fund Balances
Equipment Replacement Fund: The City of Cloverdale shall maintain a General Fund equipment replacement reserve to provide for the replacement of vehicles, heavy equipment, computer equipment, and other capital equipment items costing greater than $10,000. This replacement reserve will also be established in the Water and Sewer funds.

Police Vehicle Replacement Reserves: The City of Cloverdale shall maintain a General Fund vehicle replacement reserve to provide sufficient replacement funding for patrol vehicle capital items costing greater than $10,000. This replacement reserve will also be established in the Water and Sewer funds.

Facility Replacement and Maintenance Reserves: The City of Cloverdale shall maintain a General Fund facility replacement and maintenance reserve to provide sufficient funding for facility capital improvements costing greater than $10,000. This replacement reserve will also be established in the Water and Sewer funds.

Compensated Absences Reserves: The City of Cloverdale shall maintain a General Fund compensated absences reserve equal to 10% of the estimated non-current employee compensated absences payable.

Additional increments of 10% will be set aside each year until 50% of the non-current compensated balance is reached.
73 GENERAL FUND SURPLUS POLICY
It is in the best interest of the citizens of the City of Cloverdale who rely upon the City for public access and services that the City should prioritize allocation of General Fund resources towards critical, core municipal services that are in alignment with the City Council’s goals. Therefore, the City Council shall authorize the establishment of the General Fund Surplus Policy to broadly define how future surpluses should be dedicated.

This policy shall be defined by the General Fund’s Fiscal Year audited, final results and shall begin with Fiscal Year ended June 30, 2016. Allocation of any annual General Fund surplus shall be made in the following priority order:
1) 30% of any surplus, up to $100,000 per year, shall be set aside into the Emergency Reserve Fund, up to the target level of 8% of annual General Fund expenditures. 2) Any remaining General Fund surpluses shall first be used to maintain the Contingency Reserve, up to the target level of 17% of annual General Fund expenditures. 3) Any remaining surplus in excess of the amounts stated above shall be allocated as follows:
a. Equipment Replacement Reserves. The annual contribution to these reserves will be equal to the annual depreciation expense plus 5% to provide sufficient replacement funding for equipment capital items costing greater than $10,000.
b. Police Vehicle Replacement Reserves. The annual contribution to these reserves will be equal to the annual depreciation expense plus 5% to provide sufficient replacement funding for vehicle capital items costing greater than $10,000.
c. Facility Replacement and Maintenance Reserves. The annual contribution to these reserves will be equal to the annual depreciation expense plus 5% to provide sufficient funding for facility capital improvements costing greater than $10,000.
d. Compensated Absences Reserve. The annual contribution to these reserves will be equal to 10% of the estimated non-current employee compensated absences payable. Additional increments of 10% will be set aside each year until 50% of the non-current compensated balance is reached. 74 From: Melanie Bagby
To: Michael Maloney
Subject: Council Report April 25-5/8
Date: Wednesday, May 08, 2024 7:01:47 PM
4/25 Attended Cloverdale City Council budget meeting, attended Cloverdale Chamber of Commerce Mixer at CPD
4/26 Attended Congressman Huffman's Environmental Breakfast representing SCTA/RCPA, Novato
4/28 Attended Cloverdale Longest Table
4/29 Attended Soda Springs Ranch zoom meeting and site tour, attended tour of CPD and met with Chief Parker
5/1 Attended SMART budget workshop
5/2 Attended SCP 10-year anniversary celebration
5/3 Attended Cal Cities Redwood Division meeting, Rio Dell Melanie Bagby
Councilmember, City of Cloverdale
707-893-7170 • [email protected]
75

← All documents from this meeting