is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation so the provisions of Article 3 of Chapter 1 of Part 7, Division 2 of the California Labor Code, which is incorporated by this reference as though fully set forth herein.
ARTICLE 9. INDEMNIFICATION
To the fullest extent allowed by law, Contractor shall indemnify, defend with counsel acceptable to City, and hold harmless City and its officers, officials, employees, agents and volunteers (collectively, “Indemnitees”) from and against any and all liability, loss, damage, claims, suits, actions, arbitrations proceedings, administrative proceedings, regulatory proceedings, civil penalties and fines, expenses and costs (including, without limitation, attorney's fees and costs and fees of litigation) (collectively, "Liability") of every nature, whether actual, alleged or threatened, arising out of or in connection with Contractor’s performance of the Services or its failure to comply with any of its obligations contained in this Agreement, except such Liability caused by the sole negligence or willful misconduct of City.
The Contractor’s obligation to defend and indemnify shall not be excused because of the Contractor’s inability to evaluate Liability or because the Contractor evaluates Liability and determines that the Contractor is not liable to the claimant. The Contractor must respond within thirty (30) days to the tender of any claim for defense and indemnity by the City, unless this time has been extended by the City. If the Contractor fails to accept or reject a tender of defense and indemnity within thirty (30) days, in addition to any other remedy authorized by law, so much of the money due the Contractor under and by virtue of this Agreement as shall reasonably be considered necessary by the City, may be retained by the City until disposition has been made of the claim or suit for damages, or until the Contractor accepts or rejects the tender of defense, whichever occurs first.
With respect to third party claims against the Contractor, , the Contractor waives any and all rights of any type to express or implied indemnity against the Indemnitees.
Notwithstanding the forgoing, to the extent this Agreement is a "construction contract" as defined by California Civil Code Section 2783, as may be amended from time to time, such duties of Contractor to indemnify shall not apply when to do so would be prohibited by California Civil Code Section 2782.
Notwithstanding the foregoing, to the extent that this Agreement includes design professional services under Civil Code Section 2782.8, as may be amended from time to time, such duties of Contractor to indemnify shall only be to the full extent permitted by Civil Code Section 2782.8.
If any term of portion of this section is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, said section shall be interpreted to allow the broadest indemnity permitted by law.
9.G.b
Packet Pg. 153 Attachment: Mosaic Wall Benches Informal Bid Package, 5-13-22 (Award Mosaic Benches)
The obligation to defend and indemnify set forth here is binding on the successors, assigns or heirs of Contractor and shall survive the termination or completion of this Agreement or this section or final payment to the fullest extent and duration allowed by law.
The defense and indemnification obligations of this Agreement are undertaken in addition to, and shall not in any way be limited by, the insurance obligations contained in this Agreement.
ARTICLE 10. DISCLAIMER CONCERNING LABOR CODE SECTION 6400 Contractor understands and agrees that with respect to performance of the Work, and notwithstanding any provision in this Agreement to the contrary, Contractor, and/or its privities, including, without limitation, subcontractors, suppliers and other engaged by Contractor in the performance of the Work shall be “employers” for purposes of California Labor Code Section 6400 and related provisions of law, and that neither City nor its officials, officers, employees, agents, volunteers or consultants shall be “employers” pursuant to California Labor Code Section 6400.
ARTICLE 11. TERMINATION
Notwithstanding any other provision set forth herein, City may terminate or suspend this Agreement immediately for cause. Cause for immediate termination or suspension shall include, but not be limited to, any breach of this Agreement by Contractor, including, without limitation, a breach of any of Contractor’s covenants, representations or guarantees provided herein. Upon receipt of notice of termination or suspension, Contractor shall immediately stop all work in progress under this Agreement. Without limiting the generality of the foregoing, City may terminate this Agreement if Contractor fails to perform the Work within the time specified in Article 2, or any written extension thereof. If City terminates this Agreement for cause, City may undertake to have the Work completed by its own workforce or by substitution of contractor, and Contractor shall be liable to City for any excess cost incurred by City as a result. In the event of such termination, Contractor shall be entitled to payment for all Work performed to date of termination to the extent such services were actually performed in accordance with this Agreement. Upon termination, any and all of City’s documents or materials provided to Contractor and any and all of Contractor’s documents and materials prepared for or relating to this Agreement shall be delivered to the City as soon as possible, but not later than ten (10) days after the cessation of the Work.
ARTICLE 12. CONTRACTOR CLAIMS
Contractor Claims shall comply with Exhibit B, Dispute Resolution Document.
ARTICLE 13. INDEPENDENT CONTRACTOR
It is understood and agreed that in the performance of this Agreement, Contractor (including its employees and agents) is acting in the capacity of an independent contractor, and not as an agent
9.G.b
Packet Pg. 154 Attachment: Mosaic Wall Benches Informal Bid Package, 5-13-22 (Award Mosaic Benches)
or employee of the City. Contractor has full control over the means and methods of performing said services and is solely responsible for its acts and omissions, including the acts and omissions of its employees and agents.
ARTICLE 14. LICENSES/PERMITS
Contractor represents that Contractor has all licenses, permits, or qualifications of whatsoever in nature, which are legally required for Contractor to perform the Work. Contractor shall, at Contractor’s sole cost and expense, keep in effect at all times during the term of this Agreement, any such licenses, permits or qualifications. Contractor is required to possess a current Class B license.
ARTICLE 15. INSPECTION
All Work done and materials furnished, if any, shall be subject to inspection and approval by the City.
ARTICLE 16. SUBCONTRACTORS
Contractor must obtain the City’s prior written consent for subcontracting any Work pursuant to this Agreement, including safety orders under Title 8 of California Code of Regulations. Any such subcontractor shall comply, to the extent applicable, with the terms and conditions of this Agreement. Any agreement between Contractor and a subcontractor pursuant to this Agreement shall provide that the subcontractor procure and maintain insurance coverage as required herein and which shall name City as an additional insured.
ARTICLE 17. COMPLIANCE WITH LAWS/NON-DISCRIMINATION
Contractor shall comply with all applicable local, state and federal laws, regulations and ordinances in the performance of this Agreement. Contractor shall not discriminate in the provision of service or in the employment of persons engaged in the performance of this Agreement on account of race, color, national origin, ancestry, religion, gender, marital status, sexual orientation, age, physical or mental disability in violation of any applicable local, state or federal laws or regulations.
ARTICLE 18. NOTICES
All notices required or permitted by this Agreement, including notice of change of address, shall be in writing and given by personal delivery or sent postage prepaid and addressed to the parties intended to be notified, as set forth herein. Notice shall be deemed given as of the date of delivery in person or as of the date deposited in any post office or post office box regularly maintained by the United States Postal Service, unless otherwise stated herein. Notice shall be given as follows:
9.G.b
Packet Pg. 155 Attachment: Mosaic Wall Benches Informal Bid Package, 5-13-22 (Award Mosaic Benches)
City: Attn: Craig A. Scott
City of Cotati
201 West Sierra Avenue
Cotati, California 94931-4217
Telephone: (707) 792-4600
Contractor: Name: _____________________________________________ Address: ___________________________________________
Telephone: __________________________________________
ARTICLE 19. GOVERNING LAW/VENUE
This Agreement shall be construed and its performance enforced under California law. Venue shall be in the Superior Court of the State of California in the County of Sonoma.
ARTICLE 20. NON-WAIVER
The City’s failure to enforce any provision of this Agreement or the waiver of any provision in a particular instance shall not be construed as a general waiver of any part of such provision. The provision shall remain in full force and effect.
ARTICLE 21. THIRD PARTY BENEFICIARIES
The Parties do not intend, by any provision of this Agreement, to create in any third party any benefit or right owed by one party, under the terms and conditions of this Agreement, to the other party.
ARTICLE 22. ASSIGNMENT
No assignment in transfer in whole or in party of this Agreement shall be made without the prior written consent of City.
ARTICLE 23. SEVERABILITY
If any term or portion of this Agreement is held to be invalid, illegal, or otherwise enforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect.
ARTICLE 24. HEADINGS
The headings of the sections and exhibits of this Agreement are inserted for convenience only.
They do not constitute part of this Agreement and are not to be used in its construction.
9.G.b
Packet Pg. 156 Attachment: Mosaic Wall Benches Informal Bid Package, 5-13-22 (Award Mosaic Benches)
9.G.b
Packet Pg. 157 Attachment: Mosaic Wall Benches Informal Bid Package, 5-13-22 (Award Mosaic Benches)
IN WITNESS WHEREOF, City and Contractor have caused this Agreement to be executed the day and year first above written.
FOR CITY OF COTATI FOR CONTRACTOR
By
Damien O’Bid Name:
City Manager Title:
Taxpayer I.D. No.: _______________
Recommended for Approval: Recommended for Approval:
Angela Courter Craig A. Scott
Director of Administrative Services Director of Public Works/City Engineer APPROVED AS TO FORM:
__________________________________
John Bakker
City Attorney
9.G.b
Packet Pg. 158 Attachment: Mosaic Wall Benches Informal Bid Package, 5-13-22 (Award Mosaic Benches)
EXHIBIT B
DOCUMENT 00 73 83
DISPUTE RESOLUTION
ARTICLE 1 ― APPLICABLE STATUTES
1.01 Reference Public Contract Code section 9204(b) setting forth procedures for that apply to all claims by contractors in connection with public works. Reference Public Contract Code section 9204(f)(2) providing that a public entity may prescribe additional reasonable and equitable terms regarding actions or procedures to be taken by the parties.
1.02 Reference California Government Code Section 930.2 which provides: “The governing body of a local public entity may include in any written agreement to which the entity, its governing body, or any board or employee thereof in an official capacity is a party, provisions governing the presentation, by or on behalf of any party thereto, of any or all claims arising out of or related to the agreement and the consideration and payment of such claims.” ARTICLE 2 ― INTERPRETATION AND EFFECT
2.01 The procedures provided in this Document 00 73 83 are mandatory. Contractor must comply with these procedures prior to filing a Government Code Claim with the City in form prescribed by Government Code section 910. A failure or refusal by Contractor pursue diligently and exhaust, as to any Disputed Work or Claim, the required administrative procedures set forth in this Document 00 73 83, shall operate as a waiver of the Disputed Work and Claim and a bar to further judicial process.
2.02 This Document 00 73 83 shall not be interpreted to supersede or limit procedures within the Contract Documents for administration of the Work, including but not limited to, procedures regarding changes to the Contract Documents, changes from conditions indicated in the Contract Documents, changes in the Contract Times, Liquidated Damages, differing site conditions and utility conflicts, testing and inspections, quality control completion and close out of the Contract. Contractor must complete all such contract procedures.
2.03 Notwithstanding the pendency of contract administration procedures or disputes procedures set forth herein, Contractor at all times shall prosecute the Work in accordance with the Contract Documents, and for disputed Work, in accordance with the Contract Documents as determined and directed by Owner.
2.04 It is the intention of this Document 00 73 83 that disputes, protests, claims and disagreements however denominated, between the parties arising under and by virtue of the Contract, be brought to the attention of Owner at the earliest possible time in order that the matters may be resolved by negotiation, if possible, or other appropriate action promptly taken.
ARTICLE 3 ― DEFINITIONS
3.01 For purposes of this Document 00 73 83, the following Definitions shall apply:
.A “Disputed Work” - Work that Contractor contends is outside the scope of the Contract Documents or in violation of the terms of the Contract Documents, resulting from any decision, determination, order, direction, instruction, notice, action, or omission of Owner being otherwise incorrect or improper. Disputed Work includes any claims or potential claims regarding loss of
9.G.b
Packet Pg. 159 Attachment: Mosaic Wall Benches Informal Bid Package, 5-13-22 (Award Mosaic Benches)
productivity, delays, impacts, arising or occurring during the Work, that Contractor may assert resulted from acts or omissions of Owner that were outside the requirements of the Contract Documents.
.B “Good Faith Negotiations” means the successive, tiered negotiations of Disputed Work, each with increasing levels of documentation and substantiation, starting at the Project level and escalating to the Authorized Representative level, then the Executive level, prior to Contractor filing a Final Claim.
.C “Claim” or “statutory claim” is defined in Public Contract Code section 9104, and means “a separate demand by the contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following:
.1 A time extension, including, without limitation, for relief from damages or penalties for delay assessed by a public entity under a public works contract. .2 Payment by the public entity of money or damages arising from work done by, or on behalf of, the contractor pursuant to the contract for a public work and payment for which is not otherwise expressly provided or to which the claimant is not otherwise entitled. .3 Payment of an amount that is disputed by the public entity.” .D Final Claim means the certified Final Claim prepared and submitted by Contractor if Good Faith Negotiations fail to result in settlement of the claim.
ARTICLE 4 ― REQUIREMENTS OF GOOD FAITH NEGOTIATIONS
4.01 Introduction
.A At any time during the Good Faith Negotiations defined in this Article 4, Contractor may serve a statutory claim pursuant to Public Contract Code section 9204. Upon receipt of a claim pursuant to that section, the Owner will conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide Contractor a written statement identifying what portion of the claim is disputed and what portion is undisputed. Upon receipt of a claim, Owner and Contractor may, by mutual agreement, extend the time period provided in this subdivision. Contractor shall furnish reasonable documentation to support the claim. .B Notwithstanding the service of a statutory claim, Contractor must comply with the Good Faith Negotiations procedures defined in this Article 4. Failure to so comply shall operate as a waiver of Contractor’s claims.
4.02 Notification of Disputed Work Required.
.A Contractor shall promptly, and before commencing Disputed Work, notify Owner’s Authorized Representative in writing before proceeding with such Work. Contractor’s written notification shall state the objection and the basis of the objection (“Disputed Work”). .B If Contractor proceeds with the Disputed Work without complying with the written notice requirement, Contractor will be deemed to have assented that the Work is within the Contract’s requirements, and shall waive its rights to further right to a protest or Claim. .C Contractor shall provide written notice of Disputed Work concurrently with Contractor’s incurring any costs it may claim are the responsibility of Owner.
4.03 Contemporaneous Records
.A Beginning with the first day on which any Disputed Work is performed, and each following Day, Contractor shall maintain detailed hourly records of labor, construction equipment, and services, and itemized records of materials and equipment used each Day in the performance of the Disputed Work. Such records must be of a form acceptable to Owner,
9.G.b
Packet Pg. 160 Attachment: Mosaic Wall Benches Informal Bid Package, 5-13-22 (Award Mosaic Benches)
shall be signed by Contractor, copies provided to Owner daily, and are subject to verification by Owner.
4.04 Initial Substantiation (within ten (10) Days after Contractor’s first knowledge of the Disputed Work.)
.A Within ten (10) Days after Contractor’s first knowledge of the Disputed Work, Contractor shall provide Owner with a written statement of dispute (“Dispute”) that includes a preliminary cost proposal for the Disputed Work stating clearly and in detail its objection and reasons for contending the Disputed Work is outside or in breach of the requirements of Contract Documents. The preliminary cost proposal must provide a good faith preliminary estimate of the labor (workers, crews), equipment and/or materials involved, and a corresponding good faith preliminary estimate of cost. It is the responsibility of Contractor to substantiate that the Disputed Work is in fact a change from the base scope of Work. .B The written Dispute must identify the subcontractors, vendors, suppliers affected, if any, sufficient for Owner to visit the Site to inspect the work and/or conduct a telephonic interview of the persons involved, and/or to photograph the work in question. Contractor shall provide by email digital photographs of the Disputed Work and provide Owner with contact information for all involved subcontractors and/or suppliers of any tier to facilitate prompt “in person” review at the next job site meeting.
4.05 First Negotiation: At Project Level. (No later than twenty-one (21) Days after Contractor’s first knowledge of the Dispute).
.A The written notice and preliminary cost proposal for Disputed Work must be placed, by Contractor, as either a specific discussion item on the Agenda for the next weekly meeting, or to occur immediately before or following the weekly meeting. Both Owner and Contractor shall then make a good-faith effort to review the Disputed Work. It is expected that discussions will occur no later than twenty-one (21) Days after Contractor’s first knowledge of the Dispute.
4.06 Updated Dispute Substantiation (no later than thirty (30) days of Contractor’s first knowledge of Disputed Work).
.A In the event negotiations at the next job site meeting do not result in resolution of the Dispute, and in any event no later than thirty (30) days of Contractor’s first knowledge of Disputed Work, Contractor must update its Dispute (“Updated Dispute”) to meet the following requirements.
.B Contractor shall submit the Updated Dispute documentation in the following format:
.1 Introduction and Issue Identification
.2 Background
.3 Chronology
.4 Contractor's Position (Reason for City’s potential liability) .5 Supporting documentation of merit
.6 Supporting documentation of damages
.7 Schedules (if appropriate)
.8 Productivity exhibits (if appropriate)
.C Contractor shall explain, cite by reference to Contract Documents and documents from the Project record and/or submit photocopies of documents supporting the merit of its position. .D Contractor shall explain, cite by reference to, and/or submit photocopies of documents supporting damages. Contractor must submit substantial supporting documentation with this Updated Dispute documentation; categories and amounts not identified and justified, will be
9.G.b
Packet Pg. 161 Attachment: Mosaic Wall Benches Informal Bid Package, 5-13-22 (Award Mosaic Benches)
deemed waived. Contractor may not assert, subsequently, new or different categories or amounts of damages.
4.07 Second Negotiation: At Project Representative Level. (No later than forty-five (45) Days after Contractor’s first knowledge of the Dispute).
.A If Owner and Contractor do not resolve the Disputed Work at their first meeting, then Contractor shall submit its Updated Dispute and shall calendar the matter for discussion with Contractor’s Representative and Owner’s Representative to occur within twenty (20) Days of the weekly meeting and no later than forty-five (45) Days after Contractor’s first knowledge of the Dispute.
.B Owner’s Representative will consider the information provided by Contractor and from Owner’s resources, and will provide a decision in writing. If Contractor disputes the written decision, then Contractor’s remedy is to file a Notice of Potential Claim meeting the requirements below.
.C If for any reason Owner should fail to act or provide a decision on a Dispute or Updated Dispute, all within the required forty-five (45) Days, then the Dispute and Updated Dispute shall be deemed denied by Owner’s Representative on the forty-sixth (46th) Day.
4.08 Notice of Potential Claim (no later than fifty-five (55) Days after Contractor’s first knowledge of the Dispute).
.A If, after receiving Owner’s Representative’s decision, Contractor disagrees with it or still considers the Disputed Work required of it to be outside the requirements of the Contract Documents, then Contractor shall so notify Owner in writing within ten (10) Days after receiving the decision by submitting a Notice of Potential Claim (“NOPC”) stating that it will issue a formal claim.
4.09 Third Negotiation: Meeting of Executives.
.A Upon receipt of Contractor’s NOPC, Contractor and Owner shall negotiate the claim between and among the Contractor’s Representative and Owner’s Representative. Negotiations in response to the NOPC will not extend the time to file the Formal Claim.
4.10 FINAL CLAIM AND CERTIFICATION (Within seventy-five (75) Days of Contractor’s first knowledge of a Dispute, or within thirty (30) Days of Owner’s written decision on Contractor’s Dispute and Updated Dispute.)
.A Within seventy-five (75) Days of Contractor’s first knowledge of a Dispute, or within thirty (30) Days of Owner’s written decision on Contractor’s Dispute and Updated Dispute, Contractor shall file with Owner its formal claim(s), in the form specified in this Document 00 72 83. For each NOPC Contractor intends to pursue as a formal claim, Contractor shall include all arguments, justification, cost or estimates, schedule analysis, and detailed documentation supporting Contractor’s position.
Contractor is encouraged to designate its Final Claim and Certification as its statutory claim. .B Claim Documentation. Contractor’s Claim documentation shall conform to generally accepted auditing standards (GAAS). Contractor shall submit the Claim in the following format:
.1 Introduction
.2 General Background Discussion
.3 Summary of Issues and Damages
.4 Index of Issues
.5 For Each Issue (Begin each issue on a new page)
9.G.b
Packet Pg. 162 Attachment: Mosaic Wall Benches Informal Bid Package, 5-13-22 (Award Mosaic Benches)
.a Background
.b Chronology
.c Contractor's Position (Reason for City’s potential liability) .d Supporting Documentation of Merit
.e Supporting Documentation of Damages
.f Schedules (if appropriate)
.g Productivity exhibits (if appropriate)
.C Contractor shall explain, cite by reference to, and/or submit photocopies of, documents supporting the merit of its position. Supporting documentation may include, but not be limited to, General Conditions, General Requirements, Technical Specifications, Drawings, correspondence, conference notes, Shop Drawings and other Submittals, Submittal Logs, survey books, inspection reports, delivery schedules, test reports, daily reports, subcontracts, fragmentary Critical Path method schedules, photographs, technical reports, Requests for Information, field instructions, and other related records necessary to support the merit of Contractor's position.
.D Contractor shall explain, cite by reference to, and/or submit photocopies of, documents supporting damages. Supporting documentation may include, but not be limited to, any or all documents related to the preparation and submission of the Bid; Subcontractor, Supplier or vendor files and cost records; certified payroll reports, materials, equipment, and construction equipment and services costs; purchase orders; invoices; project as-planned and as-built costs; Subcontractor and Supplier payment documentation; quantity reports; other related records; general ledger and any other accounting materials necessary to support the Contractor's position.
4.11 CLAIMS SHALL BE CALCULATED IN THE SAME MANNER AS CHANGE ORDERS PER SECTION 01 26 00 (CONTRACT MODIFICATION PROCEDURES). NO SPECIAL,
INCIDENTAL OR CONSEQUENTIAL DAMAGES MAY BE CLAIMED, REQUESTED OR RECOVERED.
ARTICLE 5 ― SUBCONTRACTOR CLAIMS.
5.01 Contractor shall require each Subcontractor, sub-Subcontractor and supplier to comply with the claims procedure set forth in this Document 00 73 83 to provide Contractor with timely notice and documentation of all claims. Contractor shall present as its claims, all Subcontractor, subSubcontractor and supplier claims of any type, and prove them under the terms of the Contract Documents. Owner shall not be directly liable to any Subcontractor, any supplier, or any other person or organization, or to any surety for or employee or agent of any of them, for damages or extra costs of any type arising out of or resulting from the Project.
ARTICLE 6 ― WRITTEN DECISION AND ACTION ON CLAIMS
6.01 Time frames and procedures Decisions on statutory claims and formal claims follow the same procedures stated In Public Contract Code Section 9104:
.A “Upon receipt of a claim pursuant to this section, the public entity to which the claim applies shall conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide the claimant a written statement identifying what portion of the claim is disputed and what portion is undisputed. Upon receipt of a claim, a public entity and a contractor may, by mutual agreement, extend the time period provided in this subdivision. .B If the public entity needs approval from its governing body to provide the claimant a written statement identifying the disputed portion and the undisputed portion of the claim, and the governing body does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, the public entity shall have up to three days following the next duly publicly noticed
9.G.b
Packet Pg. 163 Attachment: Mosaic Wall Benches Informal Bid Package, 5-13-22 (Award Mosaic Benches)
meeting of the governing body after the 45-day period, or extension, expires to provide the claimant a written statement identifying the disputed portion and the undisputed portion. .C If the claimant disputes the public entity’s written response, or if the public entity fails to respond to a claim issued pursuant to this section within the time prescribed, the claimant may demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the public entity shall schedule a meet and confer conference within 30 days for settlement of the dispute.
.D Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, the public entity shall provide the claimant a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement.
Any disputed portion of the claim, as identified by the contractor in writing, shall be submitted to nonbinding mediation, with the public entity and the claimant sharing the associated costs equally. The public entity and claimant shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the claim remaining in dispute shall be subject to applicable procedures outside this section. .E For purposes of this section, mediation includes any nonbinding process, such as neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section. .F Unless otherwise agreed to by the public entity and the contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Section 20104.4 to mediate after litigation has been commenced.
.G Failure by the public entity to respond to a claim from a contractor within the time periods described in this subdivision or to otherwise meet the time requirements of this section shall result in the claim being deemed rejected in its entirety. A claim that is denied by reason of the public entity’s failure to have responded to a claim, or its failure to otherwise meet the time requirements of this section, shall not constitute an adverse finding with regard to the merits of the claim or the responsibility or qualifications of the claimant. .H Amounts not paid in a timely manner as required by the negotiations required under Public Contract Code section 9204 shall bear interest at 7 percent per annum.” ARTICLE 7 ― CLAIM UPDATES AND WAIVER
7.01 Claim Updates Required. If Disputed Work persists longer than a single calendar month, then for each quarter until the Disputed Work ceases, Contractor shall submit to Owner a document titled “Claim Update” that shall update and quantify all elements of the Claim as completely as possible. Contractor’s failure to submit a Claim Update or to quantify costs every quarter shall result in waiver of the Claim for that period. Claims or Claim Updates stating that damages, total damages (direct and indirect), schedule impact and/or any time extension will be determined at a later date shall not comply with this subparagraph and shall result in Contractor waiving its claim(s). Contractor shall also maintain a continuing “claims log” that shall list all outstanding claims and their value, and provide such log to Owner quarterly.
7.02 Waiver. If the initially required notice of Dispute, Updated Dispute, Notice of Potential Claim
9.G.b
Packet Pg. 164 Attachment: Mosaic Wall Benches Informal Bid Package, 5-13-22 (Award Mosaic Benches)
and Final Claim, are not issued within the time period required herein, or if Contractor proceeds with the disputed Work without first having given the notice of the Disputed Work, Contractor shall be deemed to have waived its rights to further claim on the specific issue.
ARTICLE 8 ― GOVERNMENT CODE SECTION 930.2
8.01 The procedures, negotiations, record keeping, documentation and Final Claim, if negotiation efforts prove unsuccessful, as required in this Document 00 73 83, are intended to constitute a mandatory administrative remedy and part One of a two-step claim procedure by agreement under California Government Code Section 930.2. Step One is compliance with the Good Faith Negotiations and Claim Requirements. Step Two is filing a Government Code Section 910 Claim in with the City following statutory procedures and identifying Claims submitted, negotiated and not settled.
8.02 Should Contractor fail to timely comply with the procedures set forth in this Document 00 73 83, Contractor may have rights to apply for consideration of late claims following the procedures in Government Code Section 930.4 This Document 00 73 83 defines the limits of authority of Owner’s representative to consider late claims and the basis therefore.
ARTICLE 9 ― WAIVER AND SUBSTANTIAL COMPLIANCE
9.01 If Contractor fails to comply with this Document 07 73 83 as to any claim or Disputed Work, then Contractor shall waive its rights to such claim. All claim(s), Disputed Work items or issue(s) not raised in a timely notice, timely notice of potential claim and then timely claim submitted under this Document 00 73 83, may not be asserted in any subsequent arbitration (if subsequently agreed), litigation or legal action, and any award (or portion thereof), judgment or verdict contrary to this preclusion shall be vacated to the extent contrary.
9.02 Contractor may request an extension of time to comply with the claims procedure herein, but must do so in advance of time periods expiring and Owner must give its approval in writing (which approval may be withheld in Owner’s discretion.) As to any other feature of the claim procedure herein (and its claims waiver feature), it may not be waived or altered absent a written Change Order signed by both parties and accepted as to form by their legal counsel (for the Owner, the City of Cotati.)
9.03 Owner in its sole discretion, may consider Contractor’s substantial compliance with the required initial notice and written Dispute, provided Contractor demonstrates good faith and a manifest lack of prejudice to Owner from late written notice, for example, contemporaneous Owner/Contractor discussions and review of Disputed Work with full opportunity to investigate and verify costs and work performed. Under no circumstances may substantial compliance by considered when the required written notice is more than twenty-one (21) calendar days late.
9.04 Owner shall not be deemed to waive or alter any provision under this Document 00 73 83, if at Owner’s sole discretion, a claim is administered in a manner not in accord with this Document 00 73 83.
9.05 Compliance with the foregoing shall not be a prerequisite to any Claim that is based solely on differences in measurement or errors of computations as to Contract quantities.
ARTICLE 10 ― CLAIMS UNDER $375,000
10.01 The provision of Public Contract Code §20104 set seq. relating to the resolution of construction claims of three hundred seventy-five thousand dollars ($375,000) or less which arise between a contractor and a local agency are hereby incorporated in this Contract and are
9.G.b
Packet Pg. 165 Attachment: Mosaic Wall Benches Informal Bid Package, 5-13-22 (Award Mosaic Benches)
italicized for ease of use.
10.02 Documentation that is necessary to substantiate Claims submitted pursuant to this section must comply with the format requirements set forth in this Document 00 73 83. .A Claims for $375,000 or below, as provided by Public Contract Code - §20104 (a)-(d), Application of article; provisions included in plans and specifications:
(a)(1) This article applies to all public works claims of three hundred seventy-five thousand dollars ($375,000) or less which arise between a contractor and local agency. (2) This article shall not apply to any claims resulting from a contract between a contractor and a public agency when the public agency has elected to resolve any disputes pursuant to Article 7.1 (commencing with §10240) of Chapter 1 of Part 2. (b)(1) "Public work" means "public work contract" as defined in Section 1101 but does not include any work or improvement contracted for by the state or the Regents of the University of California.
(2) “Claim” means a separate demand by the contractor for (A) a time extension, (B) payment of money or damages arising from work done by, or on behalf of, the contractor pursuant to the contract for a public work and payment of which is not otherwise expressly provided for or the claimant is not otherwise entitled to, or (C) an amount the payment of which is disputed by the local agency.
(c) The provisions of this article or a summary thereof shall be set forth in the plans or specifications for any work which may give rise to a claim under this article. (d) This article applies only to contracts entered into on or after January 1, 1991. .B Claims for $375,000 or below, as provided by Public Contract Code - §20104.2 (a)-(f), Claims, requirements, tort claims excluded:
For any claim subject to this article, the following requirements apply:
(a) The claim shall be in writing and include the documents necessary to substantiate the claim. Claims must be filed on or before the date of Final Payment. Nothing in this subdivision is intended to extend the time limit or supersede notice requirements otherwise provided by contract for the filing of claims. (b)(1) For claims of less than fifty thousand dollars ($50,000), the local agency shall respond in writing to any written claim within 45 days of receipt of the claim, or may request, in writing, within 30 days of receipt of the claim, any additional documentation supporting the claim or relating to defenses to the claim the local agency may have against the claimant.
(2) If additional information is thereafter required, it shall be requested and provided pursuant to this subdivision, upon mutual agreement of the local agency and the claimant. (3) The local agency's written response to the claim, as further documented, shall be submitted to the claimant within 15 days after receipt of the further documentation or within a period of time no greater than that taken by the claimant in producing the additional information, whichever is greater.
(c)(1) For claims of over fifty thousand dollars ($50,000) and less than or equal to three hundred seventy-five thousand dollars ($375,000), the local agency shall respond in writing to all written claims within 60 days of receipt of the claim, or may request, in writing, within 30 days of receipt of the claim, any additional documentation supporting the claim or relating to defenses to the claim the local agency may have against the claimant.
9.G.b
Packet Pg. 166 Attachment: Mosaic Wall Benches Informal Bid Package, 5-13-22 (Award Mosaic Benches)
(2) If additional information is thereafter required, it shall be requested and provided pursuant to this subdivision, upon mutual agreement of the local agency and the claimant. (3) The local agency’s written response to the claim, as further documented, shall be submitted to the claimant within 30 days after receipt of the further documentation, or within a period of time no greater than that taken by the claimant in producing the additional information or requested documentation, whichever is greater. (d) If the claimant disputes the local agency's written response, or the local agency fails to respond within the time prescribed, the claimant may so notify the local agency, in writing, either within 15 days of receipt of the local agency's response or within 15 days of the local agency's failure to respond within the time prescribed, respectively, and demand an informal conference to meet and confer for settlement of the issue in dispute. Upon a demand, the local agency shall schedule a meet and confer conference within 30 days for settlement of the dispute.
(e) Following the meet and confer conference, if the claim or any portion remains in dispute, the claimant may file a claim as provided in Chapter 1 (commencing with Section 900) and Chapter 2 (commencing with Section 910) of Part 3 of Division 3.6 of Title 1 of the Government Code. For purposes of those provisions, the running of the period of time within which a claim must be filed shall be tolled from the time the claimant submits his or her written claim pursuant to subdivision (a) until the time that claim is denied as a result of the meet and confer process, including any period of time utilized by the meet and confer process.
(f) This article does not apply to tort claims and nothing in this article is intended nor shall be construed to change the time periods for filing tort claims or actions specified by Chapter 1 (commencing with Section 900) and Chapter 2 (commencing with Section 910) of Part 3 of Division 3.6 of Title 1 of the Government Code. .C Claims for $375,000 or below, as provided by Public Contract Code - § 20140.4(a)-(c), pertaining to Civil action procedures; mediation and arbitration; trial de novo; witnesses:
The following procedures are established for all civil actions filed to resolve claims subject to this article:
(a) Within 60 days, but no earlier than 30 days, following the filing or responsive pleadings, the court shall submit the matter to nonbinding mediation unless waived by mutual stipulation of both parties. The mediation process shall provide for the selection within 15 days by both parties of a disinterested third person as mediator, shall be commenced within 30 days of the submittal, and shall be concluded within 15 days from the commencement of the mediation unless a time requirement is extended upon a good cause showing to the court or by stipulation of both parties. If the parties fail to select a mediator within the 15-Day period, any party may petition the court to appoint the mediator.
(b)(1) If the matter remains in dispute, the case shall be submitted to judicial arbitration pursuant to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, notwithstanding Section 1141.11 of that code. The Civil Discovery Act (Title 4 commencing with Section 2016.010 of Part 4 of the Code of Civil Procedure) shall apply to any proceeding brought under this subdivision consistent with the rules pertaining to judicial arbitration.
(2) Notwithstanding any other provision of law, upon stipulation of the parties, arbitrators appointed for purposes of this article shall be experienced in construction law, and, upon stipulation of the parties, mediators and arbitrators shall be paid necessary and reasonable hourly rates of pay not to exceed their customary rate, and such fees and expenses shall be paid equally by the parties, except in the case of arbitration where the
9.G.b
Packet Pg. 167 Attachment: Mosaic Wall Benches Informal Bid Package, 5-13-22 (Award Mosaic Benches)
arbitrator, for good cause, determines a different division. In no event shall these fees or expenses be paid by state or city funds.
(3) In addition to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, any party who after receiving an arbitration award requests a trial de novo but does not obtain a more favorable judgment shall, in addition to payment of costs and fees under that chapter, pay the attorney's fees of the other party arising out of the trial de novo.
(c) The court may, upon request by any party, order any witnesses to participate in the mediation or arbitration process.
.D Claims for $375,000 or below, as provided by Public Contract Code - §20140.6 (a)-(b), Payment on undisputed portion of claim; interest on arbitration awards or judgments:
(a) No local agency shall fail to pay money as to any portion of a claim which is undisputed except as otherwise provided in the contract.
(b) In any suit filed under Section 20104.4, the local agency shall pay interest at the legal rate on any arbitration award or judgment. The interest shall begin to accrue on the date the suit is filed in a court of law.
END OF DOCUMENT 00 73 83
2772419.1
9.G.b
Packet Pg. 168 Attachment: Mosaic Wall Benches Informal Bid Package, 5-13-22 (Award Mosaic Benches) RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COTATI (1) AWARDING
THE MOSAIC WALL BENCH CONSTRUCTION CONTRACT TO COASTSIDE CONCRETE & CONSTRUCTION, INC. (2) APPROVING A APPROPRIATION OF FUNDS TO THE PROJECT ACCOUNT, AND (3) AUTHORIZING THE CITY
MANAGER TO EXECUTE THE CONSTRUCTION CONTRACT AND ANY NEEDED
CHANGE ORDERS TO THAT CONTRACT UP TO THE APPROVED PROJECT
BUDGET AMOUNT
WHEREAS, in 2016, the City constructed the pedestrian plaza located at Old Redwood Highway and Highway 116, which included a design for integral benches; and WHEREAS, the benches were not completed due to complications with closing out the project, including constructability of the benches and federal funding issues; and WHEREAS, despite several bidding efforts, the City has been unsuccessful in securing a contractor to install the benches; and
WHEREAS, in May 2022, the City again solicited bids for the project but no bids were received during the bidding period; and
WHEREAS, June 13, 2022, the City received a bid from Coastside Concrete and Construction, Inc. for $46,500; and
WHEREAS, if no bids are received, the City can negotiate a contract without further bidding (PCC, Sections 20166, 22038(b)); and
WHEREAS, the proposed FY22/23 City budget has $46,000 allocated for the Mosaic Wall Benches Project and has carried this over from the current year’s budget; and WHEREAS, the low bid was evaluated and was determined to be a responsive bid; and WHEREAS, the proposed Project budget is recommended to total $53,000 which includes the Construction contract and a project contingency of $6,500, and the available funds are recommended to come from the unappropriated General Fund in the FY 22/23 budget; and WHEREAS, the Project is Categorically Exempt from the California Environmental Quality Act (CEQA) under Section 15301 Existing Facilities as the signage constitutes minor alterations to existing facilities, and under Section 15311 accessory structures including signs; and
NOW THEREFORE LET IT BE RESOLVED by the Council of the City of Cotati that:
1. All of the above recitals are true and correct and incorporated herein by reference; and
2. The Construction Contract for the Mosaic Wall Bench Project is awarded to Coastside Concrete and Construction, Inc. for $46,500; and
3. An appropriation of unappropriated General Fund balance is approved for a total Project Packet Pg. 169
budget of $53,000, including a $6,500 contingency; and
4. The City Manager (or designee) is authorized to execute the construction contract for the Project, and any needed change orders or amendments to that contract up to the Project’s total budgeted amount of $53,000
IT IS HEREBY CERTIFIED that the foregoing resolution was duly adopted at a regular meeting of the City Council of the City of Cotati held on the June 28th, 2022, by the following vote, to wit:
Approved:________________________________
Mayor
Attest:____________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:
____________________________
City Attorney
Attachments:
Coastside Bid (PDF)
Packet Pg. 170
9.a
Packet Pg. 171 Attachment: Coastside Bid (Award of the Mosaic Wall Bench Constructino)
9.a
Packet Pg. 172 Attachment: Coastside Bid (Award of the Mosaic Wall Bench Constructino)
9.a
Packet Pg. 173 Attachment: Coastside Bid (Award of the Mosaic Wall Bench Constructino) Cotati City Council
Agenda Staff Report
Item type:
To: City Council
Subject: Consideration of Resolution Approving a Freeway Maintenance Agreement with Caltrans
Date: June 28, 2022
Written by: Craig Scott, Director of Public Works/City Engineer Recommendation
It is recommended the City Council adopt a resolution authorizing the City Manager to approve Amendment 1 to the Freeway Maintenance Agreement with Caltrans in substantially the form attached, subject to final approval by the City Attorney.
Background
On June 11, 1957, a Freeway Maintenance Agreement was executed between the County of Sonoma and State for State Route 101, between half a mile south of Wilfred Avenue, and Railroad Avenue. The City subsequently incorporated, including portions of the area covered by the maintenance agreement. The City has, therefore, assumed maintenance obligations around the interface between the State roadways and City roads.
The Maintenance Agreement was revised in 2016, to incorporate revisions with the recent completion of the State Route 101 expansion project in and near City limits. The revisions were prompted by the City requesting an encroachment permit for landscaping improvements, completed in 2017, along Highway 116 across the State Route 101. The revised maintenance agreement was needed to obtain the encroachment permit prior to the City starting construction on the landscaping improvements. Similar to 2017, the City once again has requested an encroachment permit for a City project, the Downtown and Civic Center Connectivity and Safety Project (Project), and Caltrans has required the maintenance agreement be revised.
Analysis/Discussion
The Project extents includes paving and striping work under the West Sierra Avenue and State Route 101 interchange and, therefore, a Caltrans encroachment permit is required and was applied for. In their review of the encroachment permit application, Caltrans has requested an article addressing the maintenance of bike paths, lanes and cycle tracks on West Sierra Avenue be added to the agreement. Staff has reviewed the proposed language and has no issues or concerns. There are no other proposed revisions to the Maintenance Agreement at this time.
Overview of the Agreement and Respective Responsibilities. Exhibit A, attached to the draft
9.H
Packet Pg. 174
agreement, shows the areas of State Route 101 to be controlled and maintained by the State. This Exhibit is to be revised in the event future improvements have been constructed or other changes that will affect the division of maintenance responsibilities.
At the Route 101/116 Interchange, the City is to maintain the landscaping in the median islands and street trees as well as irrigation system including the associated electrical service. If the sidewalks need repair due to the landscaping, the City is repair or replace the sidewalks.
At the vehicle and pedestrian undercrossing, the State is responsible for the structure and the City is responsible for maintaining infrastructure related to the travel way (roadway, curbs, sidewalks, wall surfaces, drainage installations, lighting and traffic control facilities).
There are a number of soundwalls and retaining walls in this area. The City is to maintain and repair as needed the musical note motif on the retaining walls and on the sound walls. City is to remove debris, clean and paint wall surfaces as needed on the City’s side of the soundwalls and retaining walls.
The State is responsible for providing efficient operation of freeway interchanges including ramp connections to local streets and roads and for the timing of traffic signals. It is the shared responsibility of both parties to provide for the cost of installation, operation, maintenance, repairs of safety lighting, and traffic control devices at the interchanges. City is also to own and maintain all emergency vehicle pre-emption equipment installed in the State’s traffic controller cabinets at intersections (emergency pre-emption equipment is indicated on Exhibit B to the draft agreement).
Financial Considerations
The financial impact of revising the Caltrans Facility Maintenance Agreement is minor since this is an update to an existing agreement with similar City maintenance responsibilities. City costs to maintain its bicycle paths, lanes, and cycle tracks in these areas have been factored into the adopted budget. If certain features are damaged, and the responsible party does not have insurance, there could be additional one-time costs for the City to repair the damage.
Environmental Issues
The action of executing a freeway maintenance agreement does not constitute a project as defined by California Environmental Quality Act Guidelines Section 15378; therefore, no further environmental review is required.
9.H
Packet Pg. 175
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COTATI AUTHORIZING THE CITY MANAGER TO APPROVE AMENDMENT 1 TO THE FREEWAY
MAINTENANCE AGREEMENT WITH CALTRANS
WHEREAS, on June 11, 1957, a Freeway Maintenance Agreement (Agreement) was executed between the County of Sonoma (“County”) and California Department of Transportation (“State”) for State Route 101, between 0.5 mile south of Wilfred Avenue, and Railroad Avenue; and
WHEREAS, the City of Cotati subsequently was incorporated and therefore assumed the maintenance obligations of the County within the City limits; and WHEREAS, the Agreement was revised in 2016, to incorporate revisions from the completion of the State Route 101 expansion project in and near City limits; and WHEREAS, the revisions were prompted by the City requesting an encroachment permit for landscaping improvements, completed in 2017, along Highway 116 across the State Route 101, and the revised Agreement was needed to obtain the encroachment permit prior to the City starting construction on the landscaping improvements; and WHEREAS, the City once again has requested an encroachment permit for a City project, the Downtown and Civic Center Connectivity and Safety Project (Project), and Caltrans has required the Agreement be revised; and
WHEREAS, the required revisions by Caltrans is the addition of an Article, a paragraph in the Agreement, including maintenance of bike paths, lanes and cycle tracks in the Agreement.
Staff has reviewed the proposed language and has no issues or concerns, and there are no other required revisions to the Agreement at this time, however, there may be more required revisions to the Agreement in the future, including planned improvements to Highway 116; and WHEREAS, the financial impact of revising the Agreement is minor since this is an update to an existing agreement with similar City maintenance responsibilities, and City costs to maintain its bicycle paths, lanes, and cycle tracks in these areas have been factored into the adopted budget, and if certain features are damaged, and the responsible party does not have insurance, there could be additional one-time costs for the City to repair the damage; and WHEREAS, the action of executing the Freeway Maintenance Agreement does not constitute a project as defined by California Environmental Quality Act Guidelines Section 15378, therefore, no further environmental review is required.
NOW THEREFORE BE IT RESOLVED THAT the City Council hereby:
Packet Pg. 176
1. Finds the above recitals to be true and correct; and
2. Authorizes the City Manager to execute the attached Amendment Number 1 to the Caltrans Maintenance Agreement in substantially the form attached, subject to final approval by the City Attorney.
IT IS HEREBY CERTIFIED that the foregoing resolution was duly adopted at a regular meeting of the City Council of the City of Cotati held on the June 28th, 2022, by the following vote, to wit:
Approved:________________________________
Mayor
Attest:____________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:
____________________________
City Attorney
Attachments:
Current Freeway Maintenance Agreement (PDF)
Freeway Maintenance Agreement Amendment 1 (PDF)
Packet Pg. 177
9.a
Packet Pg. 178 Attachment: Current Freeway Maintenance Agreement (Caltrans Freeway Maintenance Agreement Resolution)
9.a
Packet Pg. 179 Attachment: Current Freeway Maintenance Agreement (Caltrans Freeway Maintenance Agreement Resolution)
9.a
Packet Pg. 180 Attachment: Current Freeway Maintenance Agreement (Caltrans Freeway Maintenance Agreement Resolution)
9.a
Packet Pg. 181 Attachment: Current Freeway Maintenance Agreement (Caltrans Freeway Maintenance Agreement Resolution)
9.a
Packet Pg. 182 Attachment: Current Freeway Maintenance Agreement (Caltrans Freeway Maintenance Agreement Resolution)
9.a
Packet Pg. 183 Attachment: Current Freeway Maintenance Agreement (Caltrans Freeway Maintenance Agreement Resolution)
9.a
Packet Pg. 184 Attachment: Current Freeway Maintenance Agreement (Caltrans Freeway Maintenance Agreement Resolution)
9.a
Packet Pg. 185 Attachment: Current Freeway Maintenance Agreement (Caltrans Freeway Maintenance Agreement Resolution)
9.a
Packet Pg. 186 Attachment: Current Freeway Maintenance Agreement (Caltrans Freeway Maintenance Agreement Resolution)
9.a
Packet Pg. 187 Attachment: Current Freeway Maintenance Agreement (Caltrans Freeway Maintenance Agreement Resolution)
9.a
Packet Pg. 188 Attachment: Current Freeway Maintenance Agreement (Caltrans Freeway Maintenance Agreement Resolution)
9.a
Packet Pg. 189 Attachment: Current Freeway Maintenance Agreement (Caltrans Freeway Maintenance Agreement Resolution)
9.a
Packet Pg. 190 Attachment: Current Freeway Maintenance Agreement (Caltrans Freeway Maintenance Agreement Resolution)
9.a
Packet Pg. 191 Attachment: Current Freeway Maintenance Agreement (Caltrans Freeway Maintenance Agreement Resolution)
9.a
Packet Pg. 192 Attachment: Current Freeway Maintenance Agreement (Caltrans Freeway Maintenance Agreement Resolution)
9.a
Packet Pg. 193 Attachment: Current Freeway Maintenance Agreement (Caltrans Freeway Maintenance Agreement Resolution) 4-18-22 Son 101 PM 11.9
AMENDMENT NO. 1
TO
FREEWAY MAINTENANCE AGREEMENT
IN THE CITY OF COTATI
This Amendment No. 1 to the Freeway Maintenance Agreement in the City of Cotati is made and entered into by and between STATE of California, acting by and through the Department of Transportation, hereinafter referred to as “STATE”, and City of Cotati, hereinafter referred to as “CITY” and collectively referred to as “PARTIES”.
WITNESSETH:
WHEREAS, a Freeway Maintenance Agreement in the City of Cotati, hereinafter referred to as “AGREEMENT”, was executed by CITY on August 4, 2016, and
WHEREAS, AGREEMENT by its terms provides that it may be amended or terminated at any time upon mutual consent of PARTIES; and WHEREAS, CITY desires to maintain improvements to be constructed under a STATE issued Encroachment Permit No. 0422-NMC-1052 on Route 101 at Sierra Avenue undercrossing in the City of Cotati; consisting of resurfacing the undercrossing and striping bike lanes, etc); and
WHEREAS, PARTIES hereto now desire that AGREEMENT be amended.
NOW, THEREFORE, PARTIES agree to add “BICYLCLE PATHS, LANES, AND CYCLE TRACKS “article below to AGREEMENT and shall become a part of AGREEMENT for all purposes.
1. BICYCLE PATHS, LANES, AND CYCLE TRACKS constructed as permitted encroachments within STATE’s right of way, CITY is solely responsible for all permitted improvements, including but not limited to the delineation, fencing, guard railing, drainage facilities, slope and structural adequacy. CITY will maintain, at CITY expense, a safe facility for bicycle travel along the entire length of the path/lane/cycle track by providing sweeping and debris removal when necessary; and all signing and striping, and pavement markings required for the direction and operation of that non-motorized facility.
TERM OF AGREEMENT AMENDMENT - This Amendment shall become effective on the date as shown below and shall remain in full force and effect until amended or terminated at any time upon mutual consent of PARTIES or until terminated by STATE for cause.
9.b
Packet Pg. 194 Attachment: Freeway Maintenance Agreement Amendment 1 (Caltrans Freeway Maintenance Agreement Resolution) 4-18-22 Son 101 PM 11.9
PARTIES are empowered by Streets and Highways Code section 114 and 130 to enter into this Amendment and have delegated to the undersigned the authority to execute this Amendment on behalf of the respective agencies and covenants to have followed all the necessary legal requirements to validly execute this Amendment.
IN WITNESS WHEREOF, PARTIES hereto have set their hands and seals the day and year first above written.
CITY OF COTATI STATE OF CALIFORNIA DEPARTMENT
OF TRANSPORTATION
_____________________________
By: City Manager
ATTEST; By
_________________________________
_____________________________ LEAH BUDU Date
CITY Clerk Deputy District Director
Maintenance District 4
_____________________________
CITY Attorney
.
9.b
Packet Pg. 195 Attachment: Freeway Maintenance Agreement Amendment 1 (Caltrans Freeway Maintenance Agreement Resolution) Cotati City Council
Agenda Staff Report
Item type: CONSENT CALENDAR (ACTION)
To: City Council
Subject: Adoption of a resolution to continue conducting Council, Commission, and Committee meetings remotely due to health and safety concerns for the public Date: June 28, 2022
Written by: Kevin Patterson, Deputy City Clerk
Recommendation
It is recommended that the City Council of the City of Cotati adopt a resolution authorizing virtual city council, commission and committee meetings during a declared state of emergency pursuant to government code 54953 (AB 361)
Background
When the COVID-19 pandemic started, local agencies struggled to conduct their public meetings in compliance with the Brown Act’s public accessibility requirements while still abiding by stayat-home orders. As a result, Governor Newsom signed Orders N-25-20, N-29-20, and N-35-20 to grant local agencies the flexibility to meet remotely during the COVID-19 pandemic. These orders expired on September 30, 2021.
On September 16, 2021, Governor Newsom signed into law AB 361 – Brown Act: Remote Meetings During Emergencies. AB 361 went into effect immediately upon signature by the governor. It amends the Brown Act to allow local legislative bodies to continue having purely virtual meetings using teleconferencing and virtual meeting technology under specified conditions.
There are key differences between the Executive Orders, which expired September 30, 2021, and AB 361. AB 361 imposes requirements with respect to public comment, however, the City of Cotati currently satisfies legal requirements with respect to live public comment via Zoom in alignment with AB 361. Additionally, public agencies must either make findings by majority vote that the state of emergency still exists and continues to directly impact the ability of the members to meet safely in person, or that health officials continue to impose or recommend
9.I
Packet Pg. 196
measures to promote social distancing. These conditions continue to exist. Determinations by the local agency that the emergency impacts the ability to meet safely in person must be revisited every 30 days.
Governor Newsom’s March 4, 2020 Proclamation of Emergency related to the COVID-19 pandemic is still in effect. In addition, the Sonoma County Public Health Officer continues to recommend teleconferencing or social distancing to protect the public’s health and safety during local government meetings.
Continuing the remote meetings would provide for a consistent meeting format until the pandemic emergency is lifted.
Analysis/Discussion
AB 361 amends Government Code Section 54953 to provide an alternative to having the public access the locations where City Councilmembers are teleconferencing in from. To have teleconference public meetings, without providing access to City Councilmember’s private residences, the City Council must pass a resolution stating that they have reconsidered the circumstances of the COVID-19 state of emergency and that any of the following circumstances exist:
1. The state of emergency as a result of COVID-19 continues to directly impact the ability of the members of City Council and the members of the City’s Commissions, and Committees to meet safely in person; and
2. State or local officials continue to impose or recommend measures to promote social distancing.
This Resolution makes the findings to confirm the current conditions to allow teleconference meetings pursuant to AB 361 for the City Council and on behalf of all of the commissions and committees created by the City Council pursuant to Government Code section 54952(b). The Resolution authorizes teleconference meetings including hybrid meetings held both via teleconference and in-person. This Resolution will allow members of the public to safely observe and participate in local government teleconference meetings during the continued pandemic.
AB 361 requires City Council to make these findings every 30 days to continue teleconference hearings. If adopted, staff will agendize this item once a month until the state of emergency is
9.I
Packet Pg. 197
over, or City Council no longer believes teleconference meetings are necessary.
If the Resolution is not adopted, the City will be required to hold public meetings in-person or conduct teleconference meetings pursuant to subsection 54953(b)(3) of the California Government Code which will require posting of the agenda at each teleconference location and for the public to be admitted to each teleconference location.
Financial Considerations
There are no direct financial impacts from enactment of the proposed resolution.
Environmental Issues
This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guideline section 15378.
9.I
Packet Pg. 198
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COTATI
AUTHORIZING VIRTUAL CITY COUNCIL MEETINGS DURING A DECLARED STATE OF EMERGENCY PURSUANT TO GOVERNMENT CODE 54953 (AB 361) WHEREAS, the City Council of the City of Cotati is committed to ensuring public access to observe and participate in local government meetings; and WHEREAS, all meetings of the City Council and its other legislative bodies created pursuant to Government Code section 54952(b) are open and public, as required by the Ralph M. Brown Act, so that any member of the public may participate in local government meetings; and
WHEREAS, on March 17, 2020, in response to the COVID-19 pandemic, the Governor signed Executive Order N-29-20 suspending certain provisions of the Brown Act in order to allow local legislative bodies to conduct meetings by teleconference or by other means; and WHEREAS, on June 11, 2021, Governor Newsom issued Executive Order N-08-21 which ended the provisions of Executive Order N-29-20 on September 30, 2021; and WHEREAS, on September 16, 2021, the Governor signed AB 361 (2021) into law allowing legislative bodies to continue to conduct meetings via teleconferencing under specified conditions, including the requirement that the legislative body make specified findings. AB 361 (2021) took effect on October 1, 2021; and WHEREAS, AB 361 requires that, if a state of emergency remains active, or state or local officials have imposed or recommended measures to promote social distancing, the legislative body shall make findings that it reconsidered the circumstances of the state of emergency and that either the state of emergency continues to directly impact the ability of the members to meet safely in person, or state or local officials continue to impose or recommend measures to promote social distancing; and
WHEREAS, the state of emergency proclaimed by the Governor on March 4, 2020, related to the pandemic of coronavirus commonly as COVID-19 has not been rescinded and remains in effect; and
WHEREAS, new variants of COVID-19 have developed, and risks of illness or death due to such variants remains significant to the general public; and WHEREAS, State and local health officials have imposed and recommended social distancing measures for the protection of public health and safety in response to COVID-19; and
WHEREAS, the Sonoma County Public Health Officer continues to recommend teleconferencing or social distancing during public meetings of all legislative bodies to protect the community’s health against the spread of COVID-19; and WHEREAS, teleconference meetings may include hybrid meetings, in which all or some members of the legislative body meet in person while others attend by teleconference, and Packet Pg. 199
members of the public are either allowed to participate only by teleconference or both in person and by teleconference (“hybrid meetings”). The purpose of hybrid meetings is to allow for multiple modes of attending meetings while reducing the risks of COVID-19, including its variants; and
WHEREAS, the City Council, acting as a legislative body pursuant to Government Code section 54952(a) and for the benefit of the commissions, committees, and other bodies that were created by the City Council pursuant to Government Code section 54952(b) (collectively referred to as “Legislative Bodies”), finds that the current conditions meet the circumstances set forth in Government Code section 54953(e)(3) to allow Legislative Bodies to continue to use teleconferencing to hold open and public meetings if the Legislative Bodies comply with the requirements set forth in Government Code section 54953(e)(2) to ensure the public can safely participate in and observe local government meetings.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Cotati that:
Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference.
Section 2. Current Conditions Authorize Teleconference Public Meetings of Legislative Bodies.
Based on the California Governor’s continued declaration of a State of Emergency and the Sonoma County Public Health Officer’s recommendation to continue teleconferencing or social distancing during public meetings, the City Council finds that the conditions continue to exist pursuant to Government Code sections 54953(e)(3) to allow Legislative Bodies to use teleconferencing to hold public meetings in accordance with Government Code section 54953(e)(2) to ensure members of the public have continued access to safely observe and participate in local government meetings.
Section 3. Authorize Legislative Bodies to Conduct Teleconference Meetings. The Legislative Bodies are hereby authorized to take all actions necessary to carry out the intent and purpose of this Resolution including, conducting open and public meetings in accordance with Government Code section 54953(e)(2) and other applicable provisions of the Brown Act.
Section 4. Effective Date. This Resolution shall take effect immediately and shall be in effect for a period of 30 days from the date of adoption. The City Council may reconsider the circumstances necessitating this resolution within 30 days of the adoption of this resolution.
IT IS HEREBY CERTIFIED that the foregoing resolution was duly adopted at a regular meeting of the City Council of the City of Cotati held on the June 28th, 2022, by the following vote, to wit:
Approved:________________________________
Mayor
Attest:____________________________
Kevin Patterson, Deputy City Clerk
Packet Pg. 200
Approved as to form:
____________________________
City Attorney
Packet Pg. 201
Cotati City Council
Agenda Staff Report
Item type: PUBLIC HEARINGS (ACTION)
To: City Council
Subject: Consideration of an ordinance to prohibit new and expanded service station facilities that store, convey, or dispense fossil fuels (Gas Station Ban) File No.
PA21-27
Date: June 28, 2022
Written by: Jon-Paul Harries, Senior Planner
Recommendation
It is recommended that the City Council hold a public hearing and introduce an ordinance amending Section 17.24.020 (Allowable Land Uses), Section 17.42.180 (Service Station), and Chapter 17.90 (Definitions) of the Cotati Municipal Code to provide provisions for electric vehicle charging, eliminate service stations as an allowable land use in the CD (Downtown Commercial) zoning district, and prohibit in all zoning districts new or expanded service station facilities that store, convey, or dispense fossil fuels.
Background
In February and March 2021, the City of Petaluma received international news recognition because of their decision to adopt General Plan and zoning amendments that banned gas stations as an allowable land use in the city. The ban was preceded by a citywide moratorium on new gas stations that was adopted in response to a highly controversial new gas station project as well as a growing population of Sonoma County residents that are opposed to new gas stations, and specifically the use of fossil fuels that contribute to air, soil and groundwater pollution and greenhouse gas (GHG) emissions.
Following Petaluma’s decision to ban gas stations, several other jurisdictions in the area, including Cotati, voiced a desire to consider a similar ban. On July 12, 2021, the Sonoma County Regional Climate Protection Authority (RCPA) Board unanimously passed a motion directing the RCPA staff to return to the Board with a resolution supporting local actions to ban the construction of new gas stations. On September 13, 2021, the RCPA adopted Resolution 2021- 003, which recommended the county and all incorporated jurisdictions in Sonoma County “cease all processing of applications for and permitting of new gas stations or expansions of existing gas stations in their local jurisdiction.” To date, the north bay communities of Sebastopol, Rohnert Park, Calistoga and American Canyon and have also adopted regulations prohibiting future gas stations.
11.A
Packet Pg. 202
On October 26, 2021, at a regularly scheduled Cotati City Council meeting, the City Council reviewed the commitments and priorities of the Community Development Department and affirmed that the consideration of a gas station ban was a priority for the city in the 2021/22 fiscal year.
Analysis/Discussion
Overview
Climate change represents a growing danger to human health, safety, economic prosperity, basic services, the environment, and natural resources. Sonoma County and its residents, economy and environment have experienced the adverse effects associated with climate change including prolonged wildfire seasons, firestorms, rising temperatures, coastal erosion, drought, and the resulting damage and destruction of natural habitats, property, and infrastructure.
For 20 years the City of Cotati has been assertive in its policies and actions to protect the environment and prevent climate change. In 2002 Cotati joined with the other Sonoma County jurisdictions to be the first region in the nation to pledge to measure and reduce GHG emissions.
Since then, it has adopted policies and taken numerous actions consistent with that pledge (see Exhibit A).
The proposed ordinance continues Cotati’s actions to combat climate change by targeting the transportation sector and the adverse impacts caused by fossil fuels. According to “California’s 2022 Climate Change Scoping Plan,” prepared by the California Air Resources Board, the transportation sector accounts for 40% of GHG emissions in the State.
Figure 1. State GHG emission contributions by Scoping Plan sector (California’s 2022 Climate Change Scoping Plan)
Within Sonoma County, the transportation sector accounts for 60% of GHG emissions according to the “Climate Mobilization Strategy” adopted by the RCPA on March 8, 2021 - which makes
11.A
Packet Pg. 203
transportation the largest sector of GHGs emissions by a significant margin. Reducing these emissions is critical to meeting GHG emission reduction targets and achieving this goal will require a near-term shift from internal combustion engines to zero-emission drivetrains.
Figure 2. Sonoma County GHG emission contributions by sector (Climate Mobilization Strategy, 2021)
Strategy 4 (EV Access for All Partnership) of the Climate Mobilization Strategy sets forth the goal to “accelerate the transition to 100% electric vehicles for all transportation needs not otherwise met by biking or walking.” The first two objectives of Strategy 4 are specifically addressed by this proposed ordinance:
• 4.1 -Work with regional partners and local businessesto develop over 10,000 public and workplace charging stations in Sonoma County by 2027, emphasizing the installation of charging stationsin rental propertiesin frontline communities. • 4.2 -Develop a package of local ordinances and other actionsto address remaining permitting barriersfor installing charging equipment, while also limiting permitting of new fossil fuel infrastructure.
Similarly, the proposed ordinance supports the goals of Executive Order B-48-18 (January 2018) which promotes development of zero-emission infrastructure and sets the following targets:
• 5 million zero-emission vehicles on California roads by 2030 • 200 hydrogen fueling stations and 250,000 zero-emission vehicle chargers, including 10,000 direct current fast chargers, by 2025
The proposed ordinance also supports the goals of Executive Order N-79-20, signed by Governor Newsom in September 2020. Executive Order N-79-20 establishes targets for the transportation sector to support the state in its goal to achieve carbon neutrality by 2045. The targets established by the order include:
• 100% of in-state sales of new passenger vehicles will be zero-emission by 2035
11.A
Packet Pg. 204
• 100% of medium- and heavy-duty vehicles will be zero-emission by 2045 for all operations where feasible, and by 2035 for drayage (short distance transport) trucks Service Stations
The City of Cotati does not have “gas station” defined as a land use category. Instead, gas stations are considered “service stations” and are defined in Chapter 17.90 of the Cotati Municipal Code (CMC) as follows:
“Service station” means a retail business selling gasoline and/or other motor vehicle fuels, and related products. Where allowed by Article 2 (Community and Project Design), a service station may also include “vehicle services,” and/or trailer rental (“Auto and vehicle sales or rental”), which are separately defined. Does not include convenience stores, which are separately defined, and regulated by this land use code as a separate land use type.
Presently, service stations require a Use Permit, and may be allowed in the following commercial zoning districts:
• CE (Commercial, East Cotati)
• CG (Commercial, Gravenstein Highway)
• CD (Downtown Commercial)
• CA (Commerce Avenue) – a district within the Downtown Specific Plan area In addition to the Use Permit requirements, all service stations are required to implement development standards set forth in CMC Section 17.42.180, which includes permit and application requirements, limitations on locations, site requirements, site planning standards, building design standards, facility operating standards, accessory uses, and requirements for the removal of fuel storage tanks upon cessation or change in use.
The proposed ordinance maintains the service station land use category but changes the land use title from “service station” to “service station (non-fossil fuel sales)” and amends the definition as shown in the following strike-out (deleted) and underline (added) text:
“Service station (non-fossil fuel sales)” means a retail business that provides electrical charging or fueling for vehicles but does not include the sale of fossil fuels. selling gasoline and/or other motor vehicle fuels and related products. New or expanded facilities to store, convey, or dispense fossil fuels are prohibited.
Where allowed by Article 2 (Community and Project Design), a service station may also include “vehicle services,” and/or trailer rental (“Auto and vehicle sales or rental”), which are separately defined. Does not include “convenience stores,” and/or other commercial uses which are separately defined, and regulated by this land use code as a separate land use types.
11.A
Packet Pg. 205
The proposed definition clarifies that service stations cannot add new or expanded facilities that store, convey, or dispense fossil fuels. The prohibition of fossil fuel sales, as well as the limits to modifications of existing service stations, is further stated in the proposed amendments to CMC Section 17.42.180 that sets forth the development standards for service stations. CMC Section
17.42.180 would be renumerated and amended to add the following section:
“B. Sale of fossil fuels for internal combustion engines prohibited.
1. New facilities and expansions of existing facilities that store, convey or dispense automotive fossil fuels including gasoline, diesel, Compressed Natural Gas (CNG), high ethanol blends, propane and liquified petroleum gas (LPG) shall not be permitted.
2. Except as provided below, existing service station facilities used for storage, conveyance, or dispensing of fossil fuels for internal combustion engines shall not be enlarged, extended, reconstructed or relocated to a different portion of the lot or parcel occupied by such use.
a. Modifications to improve soil, groundwater, and stormwater quality. Service stations may be modified to conform to current stormwater quality control regulations or remediate contamination of the soil or groundwater.
b. Modifications to improve traffic safety. As determined by the City Engineer, the pedestrian and vehicular circulation features (e.g., curbing, sidewalks, traffic control devices) of a service station use may be modified to improve public safety. c. Modifications to enable battery charging stations. Service station uses may be modified to accommodate battery charging stations for zero-emission vehicles. d. Modifications for commercial uses other than fossil fuel sales. Service station uses may be altered to accommodate other commercial uses that are not related to fossil fuel sales and allowed in the respective zoning district.” Land Use – “Service stations (non-fossil fuel sales)”
The proposed ordinance maintains “service stations (non-fossil fuel sales)” as an allowable land use (with Use Permit approval) in the above-mentioned CE, CG, and CA zoning districts, but would no longer allow for service stations in the CD zoning district. The CD zoning district has no existing service stations and is largely developed with older residential homes. There are also no parcels within the district that would be an appropriate site for future service stations because of the prohibition of locating service stations near parks, the traffic patterns on secondary streets surrounding La Plaza, and the potential impact to surrounding residential and commercial uses.
Providing for service stations that are limited to charging or providing alternative fuels in the CE, CG, and CA districts allows for development of the facilities and services that will be required for local residents and travelers along Highway 101 as the State moves to transition to 100% zero-emission vehicles. Eliminating service stations as an allowed land use citywide could have
11.A
Packet Pg. 206
the unintended consequence of limiting the services for zero-emission vehicles by preventing new, perhaps novel, facilities and an overreliance on existing service stations to transition from gasoline and diesel sales to facilities that serve zero-emission vehicles.
Land Use – “Electric vehicle charging station”
Charging equipment for battery-powered electric vehicles and related site improvements are typically treated as accessory uses that, pursuant to AB 1236 (Chiu, 2015), are approved through a building permit application or similar non-discretionary permit with considerations of public health and safety. Presently, the zoning code does not identify where electric vehicles charging stations may be located or if a Use Permit is required. The proposed ordinance adds the definition of “electric vehicle charging station” to the Land Use Code and makes explicit that electric vehicle charging stations are allowed in all zoning districts as an accessory use and that no discretionary Use Permit is required.
General Plan Consistency
The proposed Land Use Code amendments to prohibit facilities that store, convey or dispense fossil fuels to vehicles with internal combustion engines are in the best interest of the City because it furthers established General Plan goals and programs to reduce greenhouse gas emissions and implements some of Cotati’s local implementation measures identified in the countywide climate action plan, Climate Action 2020 and Beyond (CA2020). The amendments are consistent with and implement the following specific General Plan and CA2020 goals and objectives:
General Plan – Circulation Element
Objective CI 3A: Reduce the levels of greenhouse gas (GHG) emissions created by automobile traffic in Cotati.
Policy CI 3.1: Actively support the Regional Climate Protection Authority (RCPA) in its efforts reduce GHG emissions to a level that is 25% below 1990 levels by 2015 and 40% below 1990 levels by 2035.
General Plan – Conservation Element
Objective CON 2B: Reduce emissions of greenhouse gases from city operations and community sources.
Policy CON 2.7: Continue to aggressively implement the greenhouse gas (GHG) reduction measures contained in the 2008 Cotati Greenhouse Gas Emissions Reduction Action Plan.
Policy CON 2.8: Support the development and implementation of a GHG reduction plan, or Climate Action Plan, that addresses and reduces GHG emissions associated with community operations, including but not limited to: mobile sources (vehicle traffic), energy consumption, and solid waste.
11.A
Packet Pg. 207
Policy CON 2.9: Coordinate with Sonoma County and nearby cities to implement regional GHG reduction plans and consolidate efforts to reduce GHGs throughout the County.
Climate Action 2020 and Beyond
Goal 5: Encourage a Shift Toward Low-Carbon Transportation Options Goal 7: Encourage a Shift Toward Low-Carbon Fuels in Vehicles and Equipment Measure 7-L3: Reduce fossil fuel use in equipment through efficiency or fuel switching Planning Commission
The Cotati Planning Commission reviewed a draft of the proposed ordinance on May 16, 2022, and unanimously adopted Resolution No. PC-2022-7 (see Exhibit B) recommending City Council adoption of the proposed ordinance. The Planning Commission’s motion to approve the Resolution included certain changes to the draft ordinance, which have been incorporated into the proposed ordinance before the City Council. The requested changes included the following:
• The staff proposed ordinance included provisions for fueling hydrogen fuel cell powered vehicles. Members of the public and some Commissioners wanted the City to focus on prohibiting fossil fuels and to not promote or otherwise provide provisions for hydrogen fueling at this time. The Planning Commission motion to recommend approval of the draft ordinance included the recommendation to remove all provisions for hydrogen fueling.
• The staff proposed ordinance recommend the “service station” land use category title be changed to “service station (alternative fuels only).” Related to the issue above, the Planning Commission recommended the land use category “service station” instead be changed to “service station (non-fossil fuel sales).”
• The staff proposed ordinance included a provision to eliminate service stations as an allowable land use in the CD (Downtown Commercial) zoning district. However, some Commissioners chose to recuse themselves from the discussion and consideration of such a change because of the proximity of their residences to the CD zoning district. As a result, the Planning Commission was unable to include a recommendation on the proposed zoning change in their resolution. The proposed zoning change is, however, included in the proposed ordinance before the City Council.
Financial Considerations
The proposed ordinance will not have an adverse financial impact on the City. The staff time to prepare the ordinance will be absorbed into the Community Development Department’s budget and any staff time to review and process future modifications to service stations will be recovered through design review application and building permit fees.
11.A
Packet Pg. 208
Environmental Issues
Actions Relating to the Prohibition on New or Expanded Fossil Fuel Storage and Dispensing Facilities
This ordinance to amend the Land Use Code to prohibit new and expanded facilities that store or dispense fossil fuels is not a project within the meaning of CEQA Guidelines Section 15378 and is exempt under Section 15061(b)(3) of the CEQA Guidelines because it has no potential for resulting in a direct or indirect physical change to the environment, and it can be seen with certainty that there is no possibility that the proposed amendments will have a significant effect on the environment in that the amendment prevents physical changes to the environment by prohibiting new or expanded facilities.
Actions Relating to Regulations For Modifying Service Stations This ordinance applies to five existing vehicle service stations that store, convey, and dispense fossil fuels, including gasoline and diesel fuel. This ordinance prohibits the addition, enlargement, extension, reconstruction or relocation of fueling facilities and defines three specific categories of permitted modifications, as follows: 1) those to improve soil, groundwater and stormwater quality; 2) those necessary to improve traffic safety; and 3) those to enable battery charging stations. The regulations to allow for modifications to improve soil, groundwater and stormwater quality, and traffic safety are categorically exempt from CEQA in accordance with the following:
• CEQA Guidelines Section 15301 (Existing Facilities) which applies to the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. • CEQA Guidelines Section 15303 (New Construction or Conversion of Small Structures) which applies to construction and location of limited numbers of new small facilities or structures; installation of small new equipment and facilities in small structures; and the conversion of existing small structures from one use to another where only minor modifications are made in the exterior of the structure. • CEQA Guidelines Section 15304 (Minor Alterations to Land) which applies to minor public or private alterations in the condition of land, water, and/or vegetation which do not involve the removal of healthy, mature scenic trees except for forestry or agricultural purposes.
• CEQA Guidelines Section 15308 (Actions by Regulatory Agencies for the Protection of the Environment) which applies to actions taken by regulatory agencies, as authorized by state or local ordinance, to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment.
11.A
Packet Pg. 209
Actions Relating to Land Use - “Electric Vehicle Charging Station” Pursuant to Government Code Section 65850.7(b), cities shall administratively approve electric vehicle charging stations through a nondiscretionary building permit. In accordance with CEQA Guidelines Section 15268, ministerial projects, such as issuance of a building permit, are exempt from CEQA.
Attachments:
Exhibit A - History of Cotati's climate protection measures (DOCX) Exhibit B - Planning Commission Resolution No. PC-2022-7 (PDF)
11.A
Packet Pg. 210
EXHIBIT A
History of Cotati’s Climate Protection Measures
DATE ACTION EFFECT
09/26/2001 Resolution No. 01-96 Endorsed Bay Area Alliance for Sustainable Development & their effort to develop a sustainable growth action plan 04/10/2002 Resolution No. 02-21 Endorsed aims and objectives of the Cities for Climate Protection Campaign (Sponsored by the International Council for Local Environmental Initiatives (ICLEI)) & endeavored to follow its 5-milestone program
1. Develop a GHG emissions inventory
2. Develop a GHG emissions reduction target
3. Develop Action Plan to meet the GHG reduction target
4. Implementation of the Action Plan
5. Monitor to review progress
• National first- all municipalities in Sonoma and the
county pledge to measure and reduce GHG
2003 Study/Report City completes inventory of GHG emissions associated with internal municipal operations
• Followed an updated Cities for Climate Protection
protocol
• All jurisdictions county-wide complete their inventories Another national first!
04/28/2004 Resolution No. 04-14 Urged CARB to enact strong regulations to reduce GHGs emitted by passenger vehicles pursuant to AB 1493 (Pavley) 10/27/2004 Resolution No. 04-88 Adopted goal of 20% reduction in GHG emissions from municipal operations (from year 2000 baseline levels by 2010) • Also develop an action plan to meet the target
06/01/2005 California
Executive Order
S-3-05
Established State GHG emission targets:
• By 2010, reduce GHG emissions to 2000 levels
• By 2020, reduce GHG emissions to 1990 levels
• By 2050, reduce GHG emission to 80% below 1990 levels • First two targets made law in 2006 (AB 32)
08/24/2005 Resolution No. 05-66 Established goal to reduce GHG emissions city-wide by 30% below 1990 levels by 2015
11.A.a
Packet Pg. 211 Attachment: Exhibit A - History of Cotati's climate protection measures (Gas station fossil fuel ban) 09/27/2006 AB 32 (Nunez) Global Warming Solutions Act of 2006 • By 2020, reduce GHG emissions to 1990 levels
• Required an emission reduction scoping plan
05/01/2008 Study/Report City received final Greenhouse Gas Emissions Reduction Action Plan Analysis (GHG Plan)
• Identified 27 individual measures combined into 5 action plans
• Measures will result in emission reductions of 23% or more 07/23/2008 Resolution No. 08-62 Adopted GHG Action Plan “B”, or equivalent measures, which aims to achieve up to a 26% reduction in GHG emissions citywide 07/23/2008 Council Motion Approved the Climate Protection Charter & organizational structure
10/15/2008 Study/Report Climate Protection Campaign releases the Sonoma County Community Climate Action Plan
11/12/2008 Resolution No. 08-76 Authorized City Manager to take actions as necessary to support creation of a Regional Climate Protection Coordination Plan
10/11/2009 AB 881 (Huffman) Created the Regional Climate Protection Authority (RCPA) • Public Utilities Code Section 181000, et seq.
2011 Project/action Purchased Toyota Prius
05/09/2012 Resolution No. 2012-
14 Partnered with Sonoma County to install three electric vehicle charging stations
01/09/2013 Resolution No. 2013-
05 Adopted a complete streets policy. The policy was folded into the 2015 General Plan update.
06/26/2013 Resolution No. 2013-
41 Requested Sonoma Clean Power Authority act as Community Choice Aggregator to provide electrical power to Cotati residents
04/29/2015 California
Executive Order
B-30-15
Established 2030 State GHG emission target:
• By 2030, reduce GHG emissions to 40% below 1990
levels
2015 Project/action Siemens Contract
• Retrofitted all city-owned street lights with LEDs
o All PG&E lighting in 2017 (not part of Siemens)
• Retrofitted fluorescent lighting on all city buildings
11.A.a
Packet Pg. 212 Attachment: Exhibit A - History of Cotati's climate protection measures (Gas station fossil fuel ban) • Replaced all water meters with radio signaling
• HVAC Upgrades on all city building (Thermostats, AC)
• Installed vending misers at Cotati Room(2) & Police(1) 09/22/2015 Ordinance No. 857 Added chapter to the municipal code to streamline permitting for small residential rooftop solar systems
04/26/2016 Informational
presentation
Presentation on the draft county-wide climate action plan, Climate Action 2020
09/08/2016 SB 32 Codified statewide goal of 40% below 1990 levels by 2030 07/25/2017 Resolution No. 2017-
45 Resolution in support of Paris Climate Agreement & joined the Climate Mayors Initiative
• Limit temperature increase to less than 2°C
• Implement a Climate Action Plan
• Adopt policies & programs that promote GHG reductions 09/12/2017 Ordinance 875 Adopted a permit streamlining ordinance for electric vehicle charging stations
09/12/2017
03/27/2018
05/8/2018
06/25/2019
11/26/2019
09/22/ 2020
Project/action
Resolution No. 2018-
15 Resolution 2018-26
Direction to City
Manager
Resolution No. 2019-
74 Resolution No. 2020-
58 Chevy Bolt vehicle purchase
Resolution reaffirming commitment to reduce GHGs and
adoption of local implementation measures identified in Climate Action 2020
Resolution urging US Congress to enact a revenue-neutral carbon fee and dividend program
Direction to switch the City’s electric accounts to Sonoma Clean Power’s Evergreen (100% renewable) program
Resolution declaring a climate emergency & immediate
emergency mobilization to restore a safe climate
Adopted thresholds of significance for vehicle miles travelled (VMT). Threshold targets a 15% reduction in average VMT
11.A.a
Packet Pg. 213 Attachment: Exhibit A - History of Cotati's climate protection measures (Gas station fossil fuel ban)
11.A.b
Packet Pg. 214
Attachment: Exhibit B - Planning Commission Resolution No. PC-2022-7 (Gas station fossil fuel ban)
11.A.b
Packet Pg. 215
Attachment: Exhibit B - Planning Commission Resolution No. PC-2022-7 (Gas station fossil fuel ban)
11.A.b
Packet Pg. 216
Attachment: Exhibit B - Planning Commission Resolution No. PC-2022-7 (Gas station fossil fuel ban)
11.A.b
Packet Pg. 217
Attachment: Exhibit B - Planning Commission Resolution No. PC-2022-7 (Gas station fossil fuel ban)
11.A.b
Packet Pg. 218
Attachment: Exhibit B - Planning Commission Resolution No. PC-2022-7 (Gas station fossil fuel ban) ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COTATI AMENDING SECTION 17.24.020 (ALLOWABLE LAND USES), SECTION 17.42.180 (SERVICE STATIONS) AND CHAPTER 17.90 (DEFINITIONS) OF THE COTATI MUNICIPAL
CODE TO PROVIDE PROVISIONS FOR ELECTRIC VEHICLE CHARGING,
ELIMINATE SERVICE STATIONS AS AN ALLOWABLE USE IN THE CD ZONING
DISTRICT, AND PROHIBIT NEW SERVICE STATION FACILITIES THAT STORE, CONVEY OR DISPENSE FOSSIL FUELS, CITYWIDE. FILE NO. PA21-27 WHEREAS, Article XI, Section 7 of the California Constitution authorizes cities to make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws; and
WHEREAS, the United States Environmental Protection Agency has classified gas station and fuel storage locations as uses that may result in a brownfield site. Brownfield sites are properties where the development, redevelopment, or reuse of may be complicated by the presence hazardous substances, pollutants, or contaminants; and WHEREAS, common contaminants found at gas station sites include gasoline, diesel, and petroleum oils, volatile organic compounds and solvents, polycyclic aromatic hydrocarbons, and lead. Exposure to the types of contaminants present, or potentially present, at gas stations can threaten the public health, safety and welfare of neighboring communities; and WHEREAS, the State of California has adopted policy targets to reduce greenhouse gases (GHGs) by 40% from 1990 levels by 2030 and by 80% from 1990 levels by 2050; and WHEREAS, Governor Brown’s Executive Order B-48-18, signed on January 26, 2018, noted that the transportation sector resulted in 50 percent of California’s total greenhouse gas emissions and 80 percent of smog-forming oxides of nitrogen, and directed all state entities to work with local government and the private sector to ensure there are at least 5 million zeroemission vehicles on California roads by 2030, and the creation of 200 hydrogen fueling stations and 250,000 electric vehicle charging stations by 2025 to support such vehicles; and WHEREAS, the City of Cotati participates in a coordinated, countywide collaboration to address climate change via the Sonoma County Regional Climate Protection Authority (RCPA), and the RCPA has adopted the same GHG reduction targets as the State of California; and WHEREAS, on March 27, 2018, the City Council adopted Resolution 2018-15 reaffirming Cotati’s commitment to reduce GHG emissions and agreed to work towards the countywide and state goal to reduce GHG emissions by 40% below 1990 levels by 2030 and 80% below 1990 levels by 2050; and
WHEREAS, on November 26, 2019, the City Council adopted Resolution 2019-74 endorsing the declaration of a climate emergency and immediate mobilization to restore a safe climate; and
Packet Pg. 219
WHEREAS, Governor Newsom’s Executive Order N-79-20, signed on September 23, 2020, sets a goal to eliminate sales of new internal combustion passenger vehicles by 2035; and WHEREAS, on July 27, 2021, the City Council adopted Resolution No. 2021-41 endorsing the goals of Climate Safe California and called on the State of California to accelerate its climate action timelines, including the phase-out of fossil fuel development, production, and use; and
WHEREAS, adoption of changes to Land Use Code are necessary to implement the objectives of the General Plan and the City’s adopted greenhouse gas reduction goals; and WHEREAS, on May 16, 2022, the Planning Commission held a duly noticed public hearing to consider the proposed Land Use Code amendments and recommended City Council approval of the implementing draft ordinance; and
WHEREAS, on June 28, 2022, the City Council held a duly noticed public hearing at which time all interested persons were given an opportunity to be heard.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COTATI DOES ORDAIN AS FOLLOWS:
SECTION 1. Recitals Made Findings. The above recitals are declared to be true and correct and constitute a part of the findings made by the City Council in adopting this Ordinance.
SECTION 2. Amendments to the Cotati Municipal Code. Subsections 17.90.020(E),
17.90.020(F), and 17.90.020(S) are amended, as shown in strike-out (deleted) and underline (added) text, in alphabetical order, as follows:
17.090.020(E), Definitions, “E.”
“Electric vehicle charging station” means any level of electric vehicle supply equipment that is designed and built in compliance with Article 625 of the California Electrical Code, and delivers electricity from a source outside an electric vehicle into a plug-in electric vehicle.
17.090.020(F), Definitions, “F.”
“Fuel dealer” means a retail trade establishment that sells fuel oil, butane, propane and liquefied petroleum gas (LPG), bottled or in bulk, to consumers. Does not include “service station,” which is separately defined and regulated by this land use code as a separate land use type.
17.90.020(S), Definitions, “S.”
“Service station (non-fossil fuel sales)” means a retail business that provides electrical charging or fueling for vehicles but does not include the sale of fossil fuels. selling gasoline and/or other motor vehicle fuels and related products. New or expanded Packet Pg. 220
facilities to store, convey or dispense fossil fuels are prohibited. Where allowed by Article 2 (Community and Project Design), a service station may also include “vehicle services,” and/or trailer rental (“Auto and vehicle sales or rental”), which are separately defined. Does not include “convenience stores,” and/or other commercial uses which are separately defined, and regulated by this land use code as a separate land use types.
SECTION 3. Amendments to the Cotati Municipal Code. Section 17.22.020, Tables 2-2, 2- 3, and 2-4 are amended, as shown in strike-out (deleted) and underline (added) text, as follows:
Table 2-2
Allowed Land Uses and Permit Requirements for Low Density and Neighborhood Zones P Permitted Use, Zoning Clearance required
MUP Minor Use Permit required
UP Use Permit required
S Permit requirement set by Specific Use Regulations
– Use not allowed
Land Use(1)
Permit Required by District
OSC OSR RR RVL NL NM NU
Specific
Use
Regulations
Agricultural and Open Space Uses
Agricultural accessory structure UP – P P – – – 17.42.020 Animal keeping S S S S S S S 17.42.040
Crop production, horticulture, orchard, vineyard – – UP – – – – Plant nursery – – UP – – – –
Winery, small scale – – UP(2) – – – –
Industry, Manufacturing and Processing, Wholesaling
Artisan/craft product manufacturing – – UP(3) – – – –
Recreation, Education and Public Assembly Uses
Community garden – MUP MUP MUP MUP MUP MUP
Equestrian facility – UP UP – – – –
Meeting facility, public or private – – – – UP UP UP
Park UP P P P P P P
Playground – P P P P P P
Private residential recreation facility – – – UP UP UP UP School – Elementary, middle, secondary – – – UP UP UP – Residential Uses
Packet Pg. 221
P Permitted Use, Zoning Clearance required
MUP Minor Use Permit required
UP Use Permit required
S Permit requirement set by Specific Use Regulations
– Use not allowed
Land Use(1)
Permit Required by District
OSC OSR RR RVL NL NM NU
Specific
Use
Regulations
Accessory dwelling unit – – P P P P P 17.42.170
Caretaker quarters UP – – – – – –
Cottage housing – – – – S S S 17.42.125
Home occupation – – P P P P P 17.42.080
Junior accessory dwelling unit – – P P P – – 17.42.170
Mobilehome park – – UP UP UP UP UP 17.42.110
Mobile/manufactured home – – P P P P P 17.42.110
Multifamily housing, 2 units – – – – UP P P 17.42.120
Multifamily housing, 3 or 4 units – – – – – UP P 17.42.120 Multifamily housing, 5 to 9 units – – – – – UP UP 17.42.120 Multifamily housing, 10 or more units – – – – – – UP 17.42.120 Multifamily housing, up to 100 units with 25%
affordable
– – – – – – P 17.42.120
Organizational house (sorority, monastery, etc.) – – – – – – UP Residential accessory use or structure – – P P P P P 17.42.160 Residential care facility for the elderly (RCFE) – – UP UP UP UP UP Residential care, 11 or more clients – – UP UP UP UP UP Residential care, 6 or fewer clients, in a single-family dwelling
– – P P P P P
Residential care, 7 to 10 clients – – UP UP UP UP UP
Residential component of a mixed use project – – – – UP UP UP 17.42.100 Rooming or boarding house – – – – – – UP
Single-family dwelling – – P P P UP(4) UP(4)
Retail Trade
Accessory retail and services – – – – UP UP UP
Convenience store, 1,200 sq. ft. or less – – – – UP UP UP Produce stand – – UP – – – – 17.42.130
Packet Pg. 222
P Permitted Use, Zoning Clearance required
MUP Minor Use Permit required
UP Use Permit required
S Permit requirement set by Specific Use Regulations
– Use not allowed
Land Use(1)
Permit Required by District
OSC OSR RR RVL NL NM NU
Specific
Use
Regulations
Services – Business and Professional
Medical services – Extended care – – – – – UP UP
Office – Accessory – P P P P P P
Services
Adult day care – 6 or fewer clients – – P P P P P
Adult day care – 7 to 14 clients – – UP UP UP UP UP
Adult day care – 15 or more clients – – UP UP UP UP UP
Child day care – Small family day care home – – P P P P P Child day care – Large family day care home – – P P P – – 17.42.060 Child day care – Day care center – – – – – UP UP 17.42.060 Kennel, animal boarding – – UP – – – –
Lodging – Bed and breakfast inn (B&B) – – UP UP – – – 17.42.050 Personal services – 1,000 sq. ft. or less – – – – – UP UP Public safety facilities – – UP UP UP UP UP
Transportation, Communications and Infrastructure
Electric vehicle charging station(5) P P P P P P P 14.38 Solar collector S S S S S S S 17.30.084
Windmills – – UP – – – – 17.42.190
Notes:
(1) See Article 9 of this title for land use definitions. (2) May be approved only in conjunction with an on-site vineyard of three acres or larger. (3) May be approved only on a site of three acres or larger. (4) Use permit approval shall require that the review authority first find that the location of a proposed single-family dwelling on a parcel that may be further subdivided will not preclude future subdivision and development in compliance with the general plan. (5) Permitted as an accessory use.
Packet Pg. 223
Table 2-3
Allowed Land Uses and Permit Requirements for Mixed Use Corridors and Districts P Permitted Use, Zoning Clearance required
MUP Minor Use Permit
UP Use Permit required
S Permit requirement set by Specific Use Regulations
– Use not allowed
Land Use(1)
Permit Required by District
CE CG CD CI IG PF Specific Use
Regulations
Industry, Manufacturing and Processing, Wholesaling
Agricultural product processing – – – – P –
Artisan/craft product manufacturing MUP MUP MUP P P – See Note 5 Below
Brewery – Brew pub MUP MUP MUP – – –
Brewery – Production – – – UP UP –
Construction contractor – – – – UP –
Food and beverage product manufacturing – – – – MUP MUP Furniture and fixtures manufacturing, cabinet shop – – – P P – Industrial research and development – MUP – P MUP –
Laboratory – Medical, analytical, research and
development
P P – P MUP –
Laundry, dry cleaning plant – – – – UP –
Manufacturing/processing – Light – – – MUP P –
Manufacturing/processing – Medium intensity – – – MUP MUP – Manufacturing/processing – Heavy – – – – UP –
Media production P P – P P –
Printing and publishing UP UP – P P –
Recycling – Reverse vending machine MUP MUP – – – –
Recycling – Small collection facility UP UP – UP P – 17.42.150 Recycling – Medium collection facility – – – UP UP – 17.42.150 Storage – Outdoor – – – UP UP – 17.42.140
Storage – Personal storage facility (mini-storage) – – – – – – Storage – Warehouse, indoor storage – – – UP – –
Wholesaling and distribution – – – UP UP –
Packet Pg. 224
P Permitted Use, Zoning Clearance required
MUP Minor Use Permit
UP Use Permit required
S Permit requirement set by Specific Use Regulations
– Use not allowed
Land Use(1)
Permit Required by District
CE CG CD CI IG PF Specific Use
Regulations
Winery – Boutique – UP – MUP MUP –
Winery – Production – – – MUP MUP –
Recreation, Education and Public Assembly Uses
Adult-oriented business – – – – S – 17.40
Commercial recreation facility – Indoor – 5,000
sq. ft. or less
UP P – P – –
Commercial recreation facility – Indoor – More
than 5,000 sq. ft.
UP MUP – UP – –
Commercial recreation facility – Outdoor – – – UP – –
Conference/convention facility – 5,000 sq. ft. or
less
UP MUP UP(2) MUP – UP
Conference/convention facility – More than 5,000
sq. ft.
UP UP UP(2) UP – UP
Health/fitness facility UP P UP(2) P UP –
Library, museum P P MUP P – P
Meeting facility, public or private – 5,000 sq. ft. or
less
UP MUP MUP(2) MUP – MUP
Meeting facility, public or private – More than
5,000 sq. ft.
UP UP UP(2) UP – UP
Park P P P – – P
School – Elementary, middle, secondary UP(2) UP(2) – – – UP School – Specialized education/training UP(2) UP(2) UP(2) UP – UP Sports and entertainment assembly – – – UP – UP
Studio – Art, dance, martial arts, music, etc. P P MUP(2) P UP – Theater UP MUP MUP MUP – UP
Residential Uses
Accessory dwelling unit P P P – – – 17.42.170
Emergency/transitional shelter – – S – – S 17.42.072
Home occupation P P P – – – 17.42.080
Live/work unit UP UP – UP UP – 17.42.090
Packet Pg. 225
P Permitted Use, Zoning Clearance required
MUP Minor Use Permit
UP Use Permit required
S Permit requirement set by Specific Use Regulations
– Use not allowed
Land Use(1)
Permit Required by District
CE CG CD CI IG PF Specific Use
Regulations
Residential care facility for the elderly (RCFE) UP MUP – – – UP Residential care facility, 7 or more clients UP – – – – UP Residential component of a mixed use project P P P – – – 17.42.100 Retail Trade(3)
Accessory retail or services P P P P P P
Alcoholic beverage sales – Associated with a
restaurant(4)
P P P P UP – 17.42.030
Alcoholic beverage sales UP UP UP – – – 17.42.030
Antique or collectible store MUP P MUP – – –
Artisan shop P P P P – –
Auto and vehicle sales and rental – UP – MUP UP –
Auto parts sales with no installation services – P – P – – Bar, tavern UP UP UP – – –
Building and landscape materials sales – Indoor – P – P P – Building and landscape materials sales – Outdoor – UP – MUP – – 17.42.130 Construction and heavy equipment sales and rental – – – MUP MUP – 17.42.130 Convenience store UP UP – UP – –
Drive-through retail – UP – UP – – 17.42.070
Extended hour retail UP MUP MUP MUP – –
Farm supply and feed store – P – P – –
Farmers market MUP MUP MUP MUP UP UP
Formula-based fast food restaurant S S S – – – 17.42.071 Fuel dealer (propane for home and farm use, etc.) – – – UP UP – Furniture, furnishings and appliance store P P UP P UP – General retail – Less than 5,000 sq. ft. P P P P – –
General retail – 5,000 sq. ft. to 20,000 sq. ft. P P P P – – General retail – More than 20,000 sq. ft. UP P UP P – – Packet Pg. 226
P Permitted Use, Zoning Clearance required
MUP Minor Use Permit
UP Use Permit required
S Permit requirement set by Specific Use Regulations
– Use not allowed
Land Use(1)
Permit Required by District
CE CG CD CI IG PF Specific Use
Regulations
Groceries, specialty foods – 10,000 sq. ft. or less P P P P – – Groceries, specialty foods – More than 10,000 sq.
ft.
UP MUP UP MUP – –
Mobilehome, boat, or RV sales – – – MUP – –
Night club UP UP UP – – –
Outdoor display and sales MUP MUP MUP MUP – – 17.42.130 Plant nursery – MUP – MUP MUP –
Restaurant – Outdoor dining(6) P/
MUP
P/
MUP
P/
MUP
P/
MUP
– – 17.42.130(E)
Restaurant, cafe, coffee shop P P P P UP –
Retail complex UP P UP P – –
Retail display gallery – P P – – – 17.90.020
Second hand store UP UP UP – – –
Service station (non-fossil fuels sales) UP UP UP - – – – 17.42.180 Tasting room UP P P P – –
Warehouse retail – MUP – UP – –
Services – Business, Financial, Professional
ATM P P P P – –
Bank, financial services P P UP P – –
Business support service P P P
(2) UP – –
Medical services – Doctor office UP P
(2) P(2) – – –
Medical services – Clinic, urgent care UP – – – – –
Office – Accessory P P P P P P
Office – Business/service UP UP(2) P
(2) P – –
Office – Government MUP MUP MUP MUP MUP MUP
Office – Processing UP(2) MUP UP(2) MUP – –
Office – Professional/
administrative
P P P
(2) P – –
Services – General
Packet Pg. 227
P Permitted Use, Zoning Clearance required
MUP Minor Use Permit
UP Use Permit required
S Permit requirement set by Specific Use Regulations
– Use not allowed
Land Use(1)
Permit Required by District
CE CG CD CI IG PF Specific Use
Regulations
Accessory retail or services P P P P P P 17.42.015
Adult day care UP – – – – UP
Catering service – – – P P –
Child day care center MUP P MUP MUP – UP
Drive-through service – UP – – – – 17.42.070
Equipment rental – – – MUP UP – 17.42.140
Kennel, animal boarding – MUP – MUP UP –
Lodging – Bed and breakfast inn (B&B) P P MUP – – –
Lodging – Boutique hotel or motel UP UP UP – – –
Lodging – Hotel or motel UP UP UP – – –
Maintenance service – Client site services – – – P P –
Mortuary, funeral home UP – – – – –
Personal services P P P P – –
Personal services – Restricted UP(2) – – – – –
Public safety facility UP UP UP UP UP P
Repair service – Equipment, large appliances, etc. – – – P P – Social service organization MUP(2) MUP(2) – MUP – UP
Vehicle services – Major repair/body work – – – UP MUP – Vehicle services – Minor maintenance/repair – – – UP UP – Veterinary clinic, animal hospital MUP P – P MUP –
Transportation, Communications and Infrastructure
Ambulance, taxi, or limousine storage – – – – UP –
Broadcasting studio – UP(2) UP(2) MUP – –
Electric vehicle charging station(7) P P P P P P 14.38
Parking facility, public or commercial UP UP UP – – P
Telecommunications facility – – – S S S 17.44
Transit station or terminal UP UP UP UP – UP
Packet Pg. 228
P Permitted Use, Zoning Clearance required
MUP Minor Use Permit
UP Use Permit required
S Permit requirement set by Specific Use Regulations
– Use not allowed
Land Use(1)
Permit Required by District
CE CG CD CI IG PF Specific Use
Regulations
Utility facility – – – UP UP UP
Vehicle storage – – – – UP –
Key to Zoning District Symbols
CE East Cotati Avenue Corridor CI Commercial/Industrial District CG Gravenstein Highway Corridor IG General Industrial District CD Downtown Commercial PF Public Facility District
Notes:
(1) See Article 9 for land use definitions.
(2) Use allowed only on second or upper floors, in compliance with Section 17.24.050(C), Limitation on the Location of Allowable Land Uses, or behind an allowed ground floor street frontage use.
(3) See Section 17.42.165, Retail use maximum floor area. (4) When the Department of Alcoholic Beverage Control allows customers under twenty-one years of age on the premises.
(5) Artisan/craft product manufacturing uses proposed in the CE, CG, CD, HC, LP, NG, and CA districts must be located within buildings and suites designed and oriented to engage and encourage pedestrian activity and interaction with the surrounding uses. Uses in these districts must also include retail storefront presence and design characteristics, with production and manufacturing design elements (such as loading doors, material storage, etc.) oriented away from the primary entrances and street frontages of developments where they are located. (6) MUP required for outdoor dining on private property in the CD district when the dining use abuts a residential land use.
(7) Permitted as an accessory use.
Table 2-4
Allowed Land Uses and Permit Requirements for Downtown Specific Plan Districts P Permitted Use, Zoning Clearance required
MUP Minor Use Permit required
UP Use Permit required
S Permit requirement set by Specific Use Regulations
Packet Pg. 229
– Use not allowed
LAND USE(1)
PERMIT REQUIRED BY DISTRICT Specific Use
Regulations HC LP NG CA
RECREATION, EDUCATION & PUBLIC ASSEMBLY USES
Commercial recreation facility – Indoor MUP – MUP MUP
Conference/convention facility – – UP(2) UP
Health/fitness facility UP(2) – P P
Library, museum P – P P
Meeting facility, public or private – UP UP(2) UP
Park, Playground P P P P
School – Specialized education/training UP – UP UP
Studio – Art, dance, martial arts, music, etc. P P P P
Theater (cinemas or performing arts) MUP – P P
RESIDENTIAL USES
Accessory dwelling unit P P P P 17.42.170
Emergency/transitional shelter S S S S 17.42.072
Home occupation P P P P 17.42.080
Live/work unit P P P P 17.42.090
Residential component of a mixed use project P P P P 17.42.100 Residential care facility for the elderly (RCFE) – UP UP UP Residential care facility, 7 or more clients – UP – –
TRANSPORTATION, COMMUNICATIONS & INFRASTRUCTURE
Broadcasting studio UP(2) – UP(2) –
Electric vehicle charging station(7) P P P P 14.38
Parking facility UP UP UP(2) UP
Transit station or terminal P P P P
RETAIL TRADE
Accessory retail or services P P P P
Alcoholic beverage sales – associated with a restaurant(4) P P P P 17.42.030 Alcoholic beverage sales – off-sale UP UP UP UP 17.42.030 Antique or collectible store P P P P
Artisan/craft product manufacturing MUP MUP MUP MUP See Note (5) below
Artisan shop P P P P
Packet Pg. 230
P Permitted Use, Zoning Clearance required
MUP Minor Use Permit required
UP Use Permit required
S Permit requirement set by Specific Use Regulations
– Use not allowed
LAND USE(1)
PERMIT REQUIRED BY DISTRICT Specific Use
Regulations HC LP NG CA
Auto parts sales with no installation services – – – P
Bar, tavern UP UP UP UP 17.42.030
Brewery – Brew pub MUP MUP MUP MUP
Convenience store – – UP UP
Extended hour retail UP MUP P P
Furniture, furnishings and appliance store UP – MUP MUP General retail – Less than 5,000 sf P P P P
General retail – 5,000 sf to 20,000 sf P – P P
General retail – More than 20,000 sf (Max. 43,000 sf) – – MUP MUP Groceries, specialty foods – 10,000 sf or less P P P P
Groceries, specialty foods – More than 10,000 sf – – P UP Night club UP – UP UP
Outdoor display and sales MUP MUP MUP MUP 17.42.130
Restaurant – Outdoor dining on private property(6) P/MUP P/MUP P/MUP P/MUP 17.42.130 Restaurant – Outdoor dining in public right-of-way P P P P 17.42.130 Restaurant, cafe, coffee shop P P P P
Retail complex – – UP UP
Retail display gallery P P P P 17.90.020
Second hand store UP – – –
Service station (non-fossil fuel sales) – – – UP 17.42.180 Tasting room P P P P
SERVICES – BUSINESS, FINANCIAL, PROFESSIONAL
ATM P P P P
Bank, financial services P P P P
Business support service P
(2) P(2) P(2) P
Medical services – Doctor office P P P P
Medical services – Clinic, urgent care – – – P
Packet Pg. 231
P Permitted Use, Zoning Clearance required
MUP Minor Use Permit required
UP Use Permit required
S Permit requirement set by Specific Use Regulations
– Use not allowed
LAND USE(1)
PERMIT REQUIRED BY DISTRICT Specific Use
Regulations HC LP NG CA
Office – Accessory P P P P
Office – Business/service P
(2) P(2) P(2) P
Office – Government UP UP UP UP
Office – Processing UP(2) – UP(2) –
Office – Professional/administrative P
(2) P P(2) P
Veterinary clinic, animal hospital P P P P
SERVICES – GENERAL
Accessory retail or services P P P P 17.42.015
Adult day care UP(2) UP(2) UP(2) UP
Child day care center UP UP P UP
Lodging – Bed & breakfast inn (B&B) P P P UP
Lodging – Boutique hotel and motel UP UP P P
Lodging – Hotel UP(2) UP(2) P P
Personal services P P P P
Public safety facility – – – –
Social service organization – UP(2) UP(2) UP
Vehicle services – Minor maintenance/repair – – – UP
Key to Zoning District Symbols
HC Historic Core NG Northern Gateway
LP La Plaza CA Commerce Avenue
Notes:
(1) See Article 9 for land use definitions.
(2) Use allowed only on second or upper floors, in compliance with Section 17.24.050(C) (Limitation on the Location of Allowable Land Uses), or behind an allowed ground floor street frontage use.
(3) Where allowed by the downtown specific plan’s regulating plan. (4) When the Department of Alcoholic Beverage Control allows customers under twenty-one years of age on the premises.
Packet Pg. 232
(5) Artisan/craft product manufacturing uses proposed in the CE, CG, CD, HC, LP, NG, and CA districts must be located within buildings and suites designed and oriented to engage and encourage pedestrian activity and interaction with the surrounding uses. Uses in these districts must also include retail storefront presence and design characteristics, with production and manufacturing design elements (such as loading doors, material storage, etc.) oriented away from the primary entrances and street frontages of developments where they are located. (6) MUP required for outdoor dining on private property in the CD district when the dining use abuts a residential land use.
(7) Permitted as an accessory use.
SECTION 4. Amendment to the Cotati Municipal Code. Section 17.42.180 is amended, as shown in strike-out (deleted) and underline (added) text, as follows:
17.42.180 Service stations (non-fossil fuel sales).
This section establishes standards for the development and operation of motor vehicle service stations, where allowed by Chapter 17.22 (Allowable Land Uses) of this title.
A. Permit and Application Requirements. A service station shall require design review in compliance with Section 17.62.040, in addition to the planning approval required by Chapter 17.22 (Allowable Land Uses) of this title. Each application for a new or remodeled service station shall include a photometric plan identifying all proposed light sources and their illumination levels, to assist in evaluating compliance with the outdoor lighting requirements of subsection (D)(5) of this section and Section
17.30.060 (Outdoor lighting) of this title. The city may require an applicant to pay the cost for a lighting consultant engaged by the city to evaluate photometric plans and recommend alternatives to proposed lighting.
B. Sale of fossil fuels for internal combustion engines prohibited.
1. New facilities and expansions of existing facilities that store, convey or dispense automotive fossil fuels including gasoline, diesel, Compressed Natural Gas (CNG), high ethanol blends, propane and liquified petroleum gas (LPG) shall not be permitted.
2. Except as provided below, existing service station facilities used for storage, conveyance, or dispensing of fossil fuels for internal combustion engines shall not be enlarged, extended, reconstructed or relocated to a different portion of the lot or parcel occupied by such use.
a. Modifications to improve soil, groundwater, and stormwater quality. Service stations may be modified to conform to current stormwater quality control regulations or remediate contamination of the soil or groundwater. b. Modifications to improve traffic safety. As determined by the City Engineer, the pedestrian and vehicular circulation features (e.g., curbing, sidewalks, traffic control devices) of a service station use may be modified to improve public safety.
Packet Pg. 233
c. Modifications to enable battery charging stations. Service station uses may be modified to accommodate battery charging stations for zero-emission vehicles. d. Modifications for commercial uses other than fossil fuel sales. Service station uses may be altered to accommodate other commercial uses that are not related to fossil fuel sales and allowed in the respective zoning district.
BC. Limitations on Location.
1. Prohibited Locations. A service station site shall not abut a residential zoning district or residential use. A service station shall not be established within three hundred fifty feet of an existing museum, park, playground, school, or similar use as determined by the review authority.
2. Separation Between Stations. A service station shall not be closer than five hundred feet to another service station except when both are at the same street intersection. The distance shall be measured in a straight line from the nearest property line of the sites for each service station. No more than two service stations shall be located at the same street intersection.
CD. Site Requirements. A site proposed for new service station shall:
1. Be located on an arterial street on a site with a minimum of one hundred fifty feet of frontage; and
2. Have a minimum area of fifteen thousand square feet and a minimum depth of one hundred feet.
The review authority may allow a service station on a site that does not comply with the above requirements if the review authority determines that the exception will improve traffic circulation or reduce traffic. Approval of the exception shall also require that the review authority first find that the service station is effectively integrated into the architecture and design of the overall retail complex.
DE. Site Planning Standards. The layout of a service station site and its site features shall comply with the following standards:
1. Site Access and Driveways.
a. Curb cuts for service station driveways shall be separated by a minimum of thirty feet from edge-to-edge.
b. A driveway shall not be located closer than fifty feet to the end of a curb corner nor closer than twenty-five feet to an interior property line.
Packet Pg. 234
c. The width of a driveway shall not exceed twenty-five feet, measured at the sidewalk.
d. Each pump island shall be provided a stacking area that can accommodate a minimum of three waiting vehicles.
2. Setback Requirements.
a. Pump islands shall be located a minimum of fifteen feet from any property line to the nearest edge of the pump island.
b. A canopy or roof structure over a pump island shall be a minimum of ten feet from any property line.
3. Pavement. A service station site shall be paved with a permanent surface of concrete or asphalt material and shall contain drainage facilities in compliance with all federal, state, and local laws, rules, and regulations. Any unpaved portion of the site shall be landscaped and separated from the paved area by curbs or other barrier approved as part of the design review for the site.
4. Landscaping. Landscaping, consisting of trees, ground cover, shrubs, vines, and/or other plant materials approved by the review authority shall be installed, permanently maintained and, if necessary, replaced, in compliance with the following standards, and the requirements of Chapter 17.34 (Landscaping Standards) of this title:
a. A minimum of fifteen percent of the entire site shall be landscaped. b. Landscaping is required along all property lines abutting streets, except for driveways, shall have a minimum width of eight feet, and shall be separated from abutting vehicular areas by a wall or curbing at least six inches higher than the abutting pavement.
c. A corner site shall be provided a planter area of at least two hundred square feet at the street corner, except where a building is located at the corner. d. Additional landscaping may be required by the review authority to screen the service station from adjacent properties.
e. All landscaping on the site shall be placed and maintained to provide safe sight distances for pedestrians and drivers.
5. Lighting. Exterior lights, including canopy, perimeter, and flood shall be stationary, and shielded or recessed within the roof canopy to ensure that all light is directed away from adjacent properties and public rights-of-way. Lighting shall not be of a high intensity so as to cause a traffic hazard, be used as an advertising element, or adversely affect adjacent properties, in compliance with Section Packet Pg. 235
17.30.060 (Outdoor lighting) of this title. Lighting fixtures/lamps shall be the most energy efficient available, including fluorescent, compact fluorescent, low pressure sodium, high pressure sodium, or other lighting technology that is of equal or greater energy efficiency.
6. Signs and Banners. Signs, banners, and promotional flags shall comply with Chapter 17.38 (Signs) of this title.
7. Solid Waste and Recyclables Storage. The storage and disposal of solid waste and recyclable materials, including used or discarded motor vehicle parts or equipment, and fluids, shall comply with all applicable federal, state, and local requirements.
Outdoor solid waste and recyclable storage areas and shall be screened by a solid masonry wall with a height of six feet, or as approved by the review authority. The wall design, materials, and colors shall be compatible with the primary structures on the site, as determined by the review authority.
EF. Building Design Standards.
1. Architectural Character. Subject to the requirements of design review, service station architecture shall fit with the existing or intended character of the surrounding area as determined by the review authority.
2. Restrooms. Each service station shall maintain one or more restrooms available for use by the general public without charge. Restroom entrances shall be screened from the view of the public right-of-way.
FG. Facility Operating Standards.
1. Restriction on Outdoor Activities. Outdoor activities on a service station site shall be limited to fueling, electric vehicle charging, replenishing air, water, oil and similar fluids, and the replacement of minor parts (e.g., lamp bulbs, wiper blades, and other similar items) requiring only the use of small hand tools while a vehicle is being serviced at the pump island. Where minor auto repair is permitted by Article 2, all repair activities shall occur entirely within an enclosed structure.
2. Outdoor Display or Storage. There shall be no outdoor display and/or storage of equipment or merchandise. No outdoor vending machines are allowed.
3. Vehicle Parking. Vehicles shall not be parked on sidewalks, parkways, driveways, or alleys, and shall not be parked on the premises for the purpose of sale.
GH. Accessory Uses.
1. Tow Truck Operations. Where tow truck operations are approved as part of a service station by the review authority, no abandoned, disabled, junked, wrecked, or otherwise nonoperational motor vehicles shall remain on the site for more than five days, and shall at all times be stored entirely within an enclosed structure.
Packet Pg. 236
2. Convenience Sales – Parking. Where a service station is approved with a convenience store, the convenience store shall be provided off-street parking and shall be provided in compliance with Chapter 17.36 (Parking and Loading) of this title.
3. Prohibited Uses. The following uses are prohibited:
a. The rental, sale, or storage of garden supplies, tools, trailers, travel trailers, vehicles, and other similar materials and merchandise, except the short-term storage of vehicles allowed in compliance with subsection (G)(1) of this section; b. Incidental uses such as pinball or video game machines, pool tables, or laundry facilities.
HI. Removal of Tanks Upon Cessation or Change of Use. If, for any reason, a service station ceases to sell gasoline or other fuels for more than one hundred fifteen out of one hundred twenty days, all gasoline fuel pumps and signs shall be removed from the site and all gasolinefuel storage tanks shall be removed or and treated in compliance with federal and state regulations, subject to the approval of the Rancho Adobe Fire Protection District.
SECTION 5. Compliance with the California Environmental Quality Act (CEQA).
The City Council of the City of Cotati does hereby find that the Ordinance complies with the requirements of the California Environmental Quality Act (CEQA) in accordance with the following:
A. Actions Relating to the Prohibition on New or Expanded Fossil Fuel Storage and Dispensing Facilities
This ordinance to amend the Land Use Code to prohibit new and expanded facilities that store or dispense fossil fuels is not a project within the meaning of CEQA Guidelines Section 15378 and is exempt under Section 15061(b)(3) of the CEQA Guidelines because it has no potential for resulting in a direct or indirect physical change to the environment, and it can be seen with certainty that there is no possibility that the proposed amendments will have a significant effect on the environment in that the amendment prevents physical changes to the environment by prohibiting new or expanded facilities.
B. Actions Relating to Regulations For Modifying Service Stations This ordinance applies to five existing vehicle service stations that store, convey, and dispense fossil fuels, including gasoline and diesel fuel. This ordinance prohibits the addition, enlargement, extension, reconstruction or relocation of fueling facilities and defines three specific categories of permitted modifications, as follows: 1) those to improve soil, groundwater and stormwater quality; 2) those necessary to improve traffic safety; and 3) those to enable battery charging stations. The regulations to allow for modifications to improve soil, Packet Pg. 237
groundwater and stormwater quality, and traffic safety are categorically exempt from CEQA in accordance with the following:
• CEQA Guidelines Section 15301 (Existing Facilities) which applies to the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use.
• CEQA Guidelines Section 15303 (New Construction or Conversion of Small Structures) which applies to construction and location of limited numbers of new small facilities or structures; installation of small new equipment and facilities in small structures; and the conversion of existing small structures from one use to another where only minor modifications are made in the exterior of the structure. • CEQA Guidelines Section 15304 (Minor Alterations to Land) which applies to minor public or private alterations in the condition of land, water, and/or vegetation which do not involve the removal of healthy, mature scenic trees except for forestry or agricultural purposes.
• CEQA Guidelines Section 15308 (Actions by Regulatory Agencies for the Protection of the Environment) which applies to actions taken by regulatory agencies, as authorized by state or local ordinance, to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment.
C. Actions Relating to Land Use - “Electric Vehicle Charging Station” Pursuant to Government Code Section 65850.7(b), cities shall administratively approve electric vehicle charging stations through a nondiscretionary building permit. In accordance with CEQA Guidelines Section 15268, ministerial projects, such as issuance of a building permit, are exempt from CEQA.
SECTION 6. Severability
The provisions of this ordinance are severable and if any provision, clause, sentence, word, or part thereof is held illegal, invalid, unconstitutional, or inapplicable to any person or circumstances, such illegality, invalidity, unconstitutionality, or inapplicability shall not affect or impair any of the remaining provisions, clauses, sentences, sections, words or parts thereof of the ordinance or their applicability to other persons or circumstances.
SECTION 7. Effective Date.
This Ordinance shall be in full force and effect thirty (30) days after its final passage.
SECTION 8. Publication or Posting.
Packet Pg. 238
The City Clerk of the City of Cotati shall cause this Ordinance to be published or posted as required in Section 36933 of the Government Code of the State of California.
Approved:________________________________
Mayor
Attest:____________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:
___________________________
John Bakker, City Attorney
This document is a true and correct copy of Ordinance Number and has been published or posted pursuant to law. California Government Code § 40806
_______________________________
Kevin Patterson, Deputy City Clerk
Packet Pg. 239
Cotati City Council
Agenda Staff Report
Item type: PUBLIC HEARINGS (ACTION)
To: City Council
Subject: Resolution to approve the Engineer's Report, confirm the assessment diagram and annual assessment amounts, and levying and collection of the annual assessments for the Cotati Landscaping and Lighting Assessment District for Fiscal Year 2022-23.
Date: June 28, 2022
Written by: Craig Scott, Director of Public Works/City Engineer Recommendation
It is recommended the City Council of the City of Cotati adopt a resolution approving the Annual Engineer's Report, confirming the assessment diagram and annual assessment amounts, and authorizing the levying and collection of assessments for Fiscal Year 2022-23 for the Cotati Landscaping and Lighting Assessment District for Zones 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10 (Pursuant to the Landscaping and Lighting Act of 1972).
Background
The ten Cotati Landscaping and Lighting Assessment Districts (“Districts”) were initially formed by the City from 1989 to 2003 in accordance with the Landscaping and Lighting Act of 1972 (“Landscaping and Lighting Act”) to pay for costs associated with maintaining landscaping and streetlights within developments. The FY17/18 annual assessment process consolidated the ten Districts into one District to simplify the process and reduce administration costs. This item is the third of the three anticipated Council meetings for this year’s assessment process.
Analysis/Discussion
The Landscaping and Lighting Act requires that the City undertake certain proceedings for any fiscal year in which assessments are to be levied and collected. On January 25, 2022, the City Council began the required annual proceedings for the 2022-23 Fiscal Year by appointing the City Engineer as Engineer of Work and directing the preparation of the Engineer’s Report. The Draft Engineer’s Report was prepared and filed in accordance with the Landscaping and Lighting Act and was presented to the City Council for their consideration on May 24, 2022. At that time, the City Council preliminarily approved the Engineer’s Report, adopted a Resolution of Intent to levy and collect the annual assessments and set the date of the public protest hearing.
The requisite hearing notice has been given pursuant to Streets and Highways Code Section 22626.
11.B
Packet Pg. 240
This is the third of three City Council meetings for the Fiscal Year 2022-23 assessments. The Council is to conduct a public hearing and may then authorize the levy and collection of assessments for Fiscal Year 2022-23. The assessments cannot be increased above those stated in the Resolution of Intent adopted May 24, 2022.
Preliminary Engineer’s Report
The Preliminary Engineer’s Report begins with a background and summary of the proposed assessments for FY 22-23 and is followed by separate sections describing each Zone, what services are included for each Zone, including capital projects (i.e. major repairs, re-plantings, or other improvements), the estimated costs for FY 22-23, the allocation of the assessment to the lots, and an estimate of each Zone’s fund reserve balance. Following these sections, the report has attachments: Attachment A describing the method of apportionment of the assessments, Attachment B with a description of which properties are within each zone and the zone diagrams, and Attachment C presenting plans for any capital improvements planned for any of the Zones.
Annual assessments are at a fixed maximum amount for all the zones except zones 7, 8, 9, and
10. These zones have an annual inflation factor, equal to the Construction Cost Index (CCI) for the City of San Francisco. The CCI adjustment for FY 22-23 is 9.2 percent. To lessen the burden on the residents in these Zones and support increasing expenses, proposed assessments are 5% for Zones 7 and 8, and 7% for Zone 9. Zone 10’s proposed assessment is for a reduction of 5% from the prior year. Zone 10 has an annual operating surplus with the reserve fund increasing each year. The City is soliciting bids to revamp its landscaping with a budget of between $20,000 and $25,000. This will be the first time since the Zone’s formation in 2002, the landscaping has been renewed. Because of the operating surplus, the target reserves for this Zone has been set at $20,000, and the proposed FY22/23 assessment is 5% below the prior year. Zone 9, although allowed an annual inflation adjustment, has an annual operating deficit and reserves are projected to be depleted by June 30, 2024. The City is endeavoring to minimize expenses by not approving any renewal or replacement work and potentially bidding the landscape maintenance contract in hopes of securing a contract with lower annual maintenance costs.
Zones 2, 4 and 5 have annual per lot assessments of $40.00, $32.00 and $36.00, respectively, which are very low and generally cover utilities, minimal labor and administrative cost with the exception of Zone 2 (Quail Hollow) which does not have adequate revenues to support routine expenses or utilities. There is an annual loan from the General Fund which is expected to continue with maintenance of the streetscape along Myrtle which was re-planted and irrigation was recommenced three years ago. Additionally, this past year, the City completed the removal of a large Redwood tree and completed sidewalk repairs within Zone 2. Zone 2 and Zones 4 and
11.B
Packet Pg. 241
5 continue to be a challenge financially as the assessments are very low and cannot be increased without a majority of the residents within the zone approving the increase.
Financial Considerations
All costs associated with these annual proceedings and the annual operation, maintenance and administration of the Landscaping and Lighting Maintenance Assessment District are intended to be recovered from the annual assessments levied on the properties within the District. It may be necessary to have a loan from the City’s General Fund if improvements or repairs become necessary, but it is the intent that these borrowed funds be paid back through zone revenue over time.
The administrative costs this year are anticipated to be about the same or slightly higher than last year as the effort has remained about the same and labor rates have increased reflecting cost of living salary adjustments for City staff. Utility and contractor costs are projected to increase by 5 percent in FY22/23.
Annual assessments are to remain at previous year’s levels for Zones 1, 2, 3, 4, 5, and 6 ($158.00, $40.00, $290.00 ($435.00 for triplex), $32.00, $36.74, and $133.50, respectively). The Zone 7 assessment is proposed to increase from $229.50 to $241.00. The Zone 8 assessment is proposed to increase from $445.00 to $467.50. The Zone 9 assessment is proposed to increase from $177.50 to $190.00. The Zone 10 assessment is proposed to decrease from $414.50 to $394.00.
The maximum assessments for zones 7, 8, 9 and 10 are proposed to be increased by the ratio of the January 2022 Construction Cost Index for San Francisco to the CCI for the closest month to when those Zones were formed (consistent with provisions in the resolutions forming those respective Zones) and multiplied by the original assessment.
Environmental Issues
The actions to approve the Engineer’s Report, approve the action to levy and collect annual assessment for FY 22/23, confirm the assessment diagrams and annual assessment amounts, and approve the increase of the maximum potential assessments in accordance with the CCI for San Francisco for Zones 7, 8, 9, and 10 for the Landscaping and Lighting Maintenance District does not constitute a project as defined by California Environmental Quality Act Guidelines Section 15378; therefore, no further environmental review is required.
11.B
Packet Pg. 242
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COTATI APPROVING
THE ANNUAL ENGINEER'S REPORT, CONFIRMING THE ASSESSMENT
DIAGRAM AND THE ANNUAL ASSESSMENT AMOUNTS, AND LEVYING AND COLLECTION OF ANNUAL ASSESSMENTS FOR FISCAL YEAR 2022/23 FOR THE
CITY OF COTATI LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT FOR ZONES 1, 2, 3, 4, 5, 6, 7, 8, 9, AND 10 (PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972)
WHEREAS, the ten Landscaping and Lighting Maintenance Assessment Districts within the City (“Districts”) were initially formed by the City from 1989 to 2003 in accordance with the Landscaping and Lighting Act of 1972 (“Act”) to levy and collect assessments under the Act to pay for costs associated with maintaining landscaping and streetlights within developments; and WHEREAS, in Fiscal Year 17/18, as part of the annual assessment process, the ten individual districts were consolidated into one district with each of the original districts becoming independent “Zones” within the single district; and WHEREAS, the City Council intends to levy and collect assessments within the Cotati Landscaping and Lighting Assessment District, during Fiscal Year 2022-23, and the lands to be assessed are located in the City of Cotati, Sonoma County; and WHEREAS, on January 25, 2022, the City Council adopted a resolution appointing the City Engineer as the Engineer of Work, directing the preparation and filing of the annual FY 2022- 23 Engineer’s Report, and describing the potential changes to the Assessment District; and WHEREAS, on May 24, 2022, the City Council adopted a resolution of intention to levy and collect assessments, preliminarily approved the Engineer’s Report for FY 22-23, and set the date of the public hearing pursuant to Section 22624 of the Streets and Highways Code; and WHEREAS, the Zone numbers and corresponding names are as follows: Zone 1 – Valparaiso, Zone 2 – Quail Hollow, Zone 3 – Sommers, Zone 4 – Macklin, Zone 5 – Sierra Meadows, Zone 6 – Oak Knolls, Zone 7 – Garden Gate, Zone 8 – Park Meadows, Zone 9 – Santero Way, Zone 10 – Altman Acres; and
WHEREAS, for Zones 1, 2, 3, 4, 5, and 6, the actual proposed FY 2022-23 annual assessments to levy and collect are proposed to stay the same as that assessed FY 2021-22; and WHEREAS, for Zones 7, 8, 9 and 10 the FY 2022-23, maximum annual assessments will be adjusted up by the allowable Construction Cost Index for San Francisco extending back to the formation of the District; and
Packet Pg. 243
WHEREAS, for Zone 7, the actual proposed FY 2022-23 annual assessment, per equivalent single family dwelling unit, to levy and collect is proposed to increase by $11.50 from FY 2021-22; and
WHEREAS, for Zone 8, the actual proposed FY 2022-23 annual assessment, per equivalent single family dwelling unit, to levy and collect is proposed to increase by $22.50 from FY 2021-22; and
WHEREAS, for Zone 9, the actual proposed FY 2021-22 annual assessment, per equivalent single family dwelling unit, to levy and collect is proposed to increase by $12.50 from FY 2021-22; and
WHEREAS, for Zone 10, the actual proposed FY 2022-23 annual assessment, per equivalent single family dwelling unit, to levy and collect is proposed to decrease by $20.50 from FY 2021-22; and
WHEREAS, for FY 2022-23 the actual annual assessments proposed to be levied and collected are: $158.00 per unit for all properties within Zone 1, $40.00 per unit for all properties within Zone 2, $290.00 per unit for all properties within Zone 3, $32.00 per unit for all properties within Zone 4, $36.74 per unit for all properties within Zone 5, $133.50 per unit for all properties within Zone 6, $241.00 per unit for all properties within Zone 7 (5%), $467.50 per unit for all properties within Zone 8 (5%), $190.00 per unit for all properties within Zone 9 (7%), and $394.00 per ESD unit for all properties within Zone 10(-5%); and WHEREAS, the requisite notice of the public hearing was given pursuant to Streets and Highways Code Section 22626; and
WHEREAS, the public hearing was held on June 28, 2022, at which time all oral statements and written protests were duly considered.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF COTATI DOES HEREBY RESOLVE:
1. The foregoing recitals are true and correct and made a part of this Resolution; and
2. The Annual FY 2022-2023 Engineer’s Report is hereby approved as filed; and
3. The assessment diagrams and assessment amounts as set forth in the FY 2022-23 Engineer’s Report and any amendments incorporated at the City Council’s direction are confirmed, and the City is hereby authorized to levy and collect the annual assessments set forth in said report for FY 2022-23; and
4. In order to take inflation into account, the estimated maximum annual assessment for Zones 7, 8, 9 and 10 shall be adjusted by the ratio of the San Francisco Construction Cost Index (CCI) at the closest month when the respective Districts were formed to January 1, 2022 multiplied by the initial assessment; and Packet Pg. 244
5. This Resolution is adopted pursuant to Sections 22620 et al. of the California Streets and Highways Code.
IT IS HEREBY CERTIFIED that the foregoing resolution was duly adopted at a regular meeting of the City Council of the City of Cotati held on the June 28th, 2022, by the following vote, to wit:
Approved:________________________________
Mayor
Attest:____________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:
____________________________
City Attorney
Attachments:
2022-2023 LLAD Report (PDF)
Packet Pg. 245
Annual Engineer's Report
City of Cotati Landscaping and Lighting Assessment District for Fiscal Year 2022-2023
Draft
June 2022
Prepared By:
Craig A. Scott, PE, Director of Public Works/City Engineer DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 246 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments) FY 2022-23
City of Cotati Landscaping and Lighting Assessment District (Pursuant to the Landscaping and Lighting Act of 1972)
The undersigned respectfully submits, as directed by the City Council on January 25, 2022, the enclosed Engineer’s Report on the 24th day of May, 2022.
By:__________________________________________
Craig A. Scott, PE
I HEREBY CERTIFY that the enclosed Engineer's Report, together with the Assessment Diagrams thereto attached was filed with the City on the 25th day of May, 2022.
Damien O’Bid, City Manager, City of Cotati
Sonoma County, California
By:___________________________________________
I HEREBY CERTIFY that the enclosed Engineer's Report, together with the Assessment Diagrams thereto attached was approved and confirmed by the City Council of the City of Cotati, California, on the 28th day of June, 2022.
Damien O’Bid, City Manager, City of Cotati
Sonoma County, California
By:___________________________________________
I HEREBY CERTIFY that the enclosed Engineer's Report, together with the Assessment Roll and the Assessment Diagram thereto attached, was filed with the County Auditor of the County of Sonoma on the ___day of _, 2022.
Damien O’Bid, City Manager, City of Cotati
Sonoma County, California
By:___________________________________________
DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 247 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
FY 2022-2023 ANNUAL ENGINEER'S REPORT
CITY OF COTATI LANDSCAPING & LIGHTING ASSESSMENT DISTRICT (Pursuant to the Landscaping & Lighting Act of 1972)
FY 2022-2023 Annual Assessment
Craig A. Scott, Engineer of Work for the City of Cotati Landscaping & Lighting Assessment District, City of Cotati, Sonoma County, California, prepares this annual Engineer’s Report, as directed by the City Council of the City of Cotati, pursuant to Section 22620 of the Streets & Highways Code (Landscaping & Lighting Act of 1972) for the Cotati Landscaping and Lighting Assessment District for Fiscal Year 2022-23.
Background
The ten Cotati Landscaping and Lighting Assessment Districts (“Districts”) were initially formed by the City from 1989 to 2003 in accordance with the Landscaping and Lighting Act of 1972 (“Landscaping and Lighting Act”) to pay for costs associated with maintaining landscaping and streetlights within developments. Fiscal Year 2017-18’s annual assessment process was combined with the action of consolidating the ten District’s into one District to simplify the process and reduce administration costs. The City now has a single District with ten individual “Zones” each having retained their identical and separate characteristics.
The ten zones consist of the following subdivisions: Valparaiso Vista (Zone 1), Quail Hollow IV (Zone 2), Sommers (Zone 3), Macklin I (Zone 4), Sierra Meadows (Zone 5), Oak Knolls (Zone 6), Garden Gate (Zone 7), Park Meadows (Zone 8), Santero Way Developments (Zone 9), and Altman Acres (Zone 10). Under California State law, the City is required to hold a public hearing annually to set the assessment rates for the following year for each assessment zone.
Pursuant to the provisions of the Landscaping & Lighting Act of 1972, an annual Engineer’s Report must be prepared and filed with the City in order to levy and collect assessments on any following fiscal year. Annually, the City Council directs the City Engineer to prepare and file the Engineer’s Report on the Landscape and Lighting Assessment District to establish assessment zone rates. Once the preliminary Engineer’s Report has been filed, the City Council can then adopt a Resolution of Intention to levy and collect annual assessments for FY 2021-22, then preliminarily approves the filed annual Engineer’s Report and sets the time and date of the public protest hearing. The Engineer’s Report outlines the proposed budgets, assessments, improvements, and changes to the zones within the Assessment District. These budgets/costs are updated with each subsequent annual Engineer’s Reports as required by the 1972 Act.
To take annual inflation into account, four of the assessment zones have an inflation adjuster (Zones 7, 8, 9 and 10). The annual assessment for these Zones is to be adjusted by the change in the San Francisco Construction Cost Index (CCI) over the previous twelve month period. The adjustment for FY 22-23 is therefore 9.2 percent. Applying this rule to the initial assessment and the CCI at the time the Assessment Zone was formed, results in the maximum assessment that can be charged without holding a protest vote. An annual CCI adjustment to the annual DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 248 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
assessment is not mandatory. If the annual Engineer’s Report recommends any adjustment up to the sum of the previous year’s maximum assessment plus the allowable annual CCI increase, notices are not required to be sent nor shall a vote be required. If however, the annual Engineer’s Report recommends any adjustment that exceeds the sum of the previous year’s maximum assessment plus the allowable annual CCI increase, noticing and/or voting shall be required in accordance with the provisions applicable to the Landscaping and Lighting Act of 1972 and Proposition 218. Applying this rule to the initial assessment, the CCI at the time the Assessment Zone was formed, and the January 1, 2022 CCI for San Francisco of 14301.24 results in the maximum assessment that can be charged without holding a protest vote. The maximum assessments for the four zones that have CCI adjustments are shown in the following table.
Table 1
Zone Initiated CCI SF at Date Zone
was Initiated Multiplier
Initial
Assessment
per Unit
Maximum
Assessment
7 02/14/2001 7399.07 1.933 $148.00 $286.08
8 10/13/1999 6816.7 2.098 $354.43 $743.59
9 10/09/2002 7644.46 1.871 $154.82 $289.67
10 10/09/2002 7644.46 1.871 $333.78 $624.50
The table below summarizes the proposed FY 2022-2023 assessments to levy and collect for each of the ten zones.
Table 2
Zone Assessment Zone Name FY 21/22 Annual
Assessment
Current
Maximum
Annual
Assessment*
Proposed
Assessment to
Levy Per ESD
1 Valparaiso Vista $158.00 $158.00 $158.00
2 Quail Hollow IV $40.00 $40.00 $40.00
3 Sommers $290.00 $290.00 $290.00
4 Macklin Phase 1 $32.00 $32.00 $32.00
5 Sierra Meadows $36.74 $36.74 $36.74
6 Oak Knoll $133.50 $133.50 $133.50
7 Garden Gate $229.50 $286.08 $241.00
8 Park Meadows $445.00 $743.59 $467.50
9 Santero Way $177.50 $289.67 $190.00
10 Altman Acres $414.50 $624.50 $394.00
*Only Assessment Zones 7, 8, 9, and 10 allow for inflationary adjustment (Consumer Price Index for San Francisco).
The original landscaping and lighting improvements within all 10 Zones of the Assessment District are completed and have been accepted by the City. The proposed changes, budgets and assessments for FY 2022-2023 are included in the description of each zone below. See ‘Attachment A, Method of Apportionment of Assessment’ of this report for a detailed description DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 249 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
of the apportionment methodology for each zone. The FY 20-21actuals are the actual revenues and expenses for the complete fiscal year. The FY 21/22 estimated values are derived by using actual expenses through the most current data available at the time this report was drafted, then extending the expenses to June 30 using a prorated estimate. FY 22-23 revenues and expenses are projected values based on prior years and expected cost increases due to inflation and planned maintenance and capital expenses.
Attachment A is a statement of the method used by the Engineer of work to determine the amount proposed to be assessed against each parcel within the assessment district.
Attachment B contains the assessment diagrams (maps) showing all of the parcels of real property within the boundaries of the 10 assessment zones. The APN’s are shown in the assessor’s maps available at the County of Sonoma Assessor’s Office.
Attachment C this attachment contains descriptions of any improvement plans that may be needed for the installation of any improvements identified in the report. If plans exist, they are filed with the City Clerk. Although separately bound, the plans and specifications of this Engineer’s Report and are included in it by reference.
Zone 1: Valparaiso Vista
Background
On June 12, 1991, the City Council adopted Resolution No. 91-35, approving the Engineer’s Report, and on June 26, 1991, adopted Resolution No. 91-38, ordering the formation of the City of Cotati Valparaiso Vista Landscape and Lighting Maintenance Assessment District confirming the diagram and assessment, and ordering the levy of an assessment.
This zone includes 7,416 square feet of landscape area and five LED, 120 volt, 100 watt lights.
The City provides landscape maintenance within the City Right-of-Way for this Zone. On a weekly basis the City performs general clean-up of the area and prunes and weeds on a monthly basis.
The City fertilizes and structural prunes on a yearly basis. Street lights are inspected once per month and repaired as needed.
Projected Costs of Assessment Zone
The projected annual cost of maintaining the landscaping and lighting for the Fiscal Year 2022- 2023 is $1,321.00.
Description FY 20-21 Actuals FY 21-22 Estimated FY 22/23 Projected Utility Charges $292.00 $240.00 $252.00
Contract Services $336.00 $424.00 $445.00
Contract Capital $1,200.00
City Labor $0.00 $270.00 $284.00
Annual Zone Administration $298.00 $320.00 $340.00
General Fund Loan Repayment $0.00 $0.00 $0.00
DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 250 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
Total Expenses $2,126.00 $1,254.00 $1,321.00
Zone Reserve Used $0.00 $0.00 $0.00
General Fund Loan $0.00 $0.00 $0.00
Total Assessment $2,370.00 $2,370.00 $2,370.00
Assessment Interest $35.00 $35.00 $35.00
Total Revenue $2,405.00 $2,405.00 $2,405.00
Estimated Fund Balance
FY 2021-22
(Estimated)
FY 2022-2023
(Projected)
Estimated Starting Reserve
Fund Balance July 1 $5,386.00 $6534.00
Estimated Assessment
Revenue $2,405.00 $2405.00
Estimated Expenses $1,254.00 $1,321.00
Estimated Ending Reserve
Fund Balance June 30 $6,534.00 $7,618.00
The total proposed assessment for FY 2022-2023 is $2,370.00.
Method of Assessment Spread
The assessment shall be divided equally among all of the individual parcels within the assessment zone. A more detailed description of the method of apportionment is in Attachment A.
Assessment Spread
Fifteen (15) parcels in assessment area
Lot No. Assessor's Parcel Number Annual Charge
1 144-400-051 $158.00
2 144-400-052 $158.00
3 144-400-053 $158.00
4 144-400-054 $158.00
5 144-400-055 $158.00
6 144-400-056 $158.00
7 144-400-057 $158.00
8 144-400-058 $158.00
9 144-400-059 $158.00
10 144-400-060 $158.00
11 144-400-061 $158.00
12 144-400-062 $158.00
13 144-400-063 $158.00
14 144-400-064 $158.00
15 144-400-065 $158.00
Total Annual Assessment $2,370.00
DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 251 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
Zone 2: Quail Hollow IV
Background
On February 28, 1989, the City Council adopted Ordinance No. 509 granting tentative approval for the Quail Hollow IV Subdivision. Condition No. 11 of said Ordinance requires that a source of maintenance funding shall be provided for the landscaping to be placed between the back of sidewalk and property line fence along Myrtle Avenue. Then, on December 12, 1989, the City Council adopted Resolution No. 89-62, ordering the formation of the City of Cotati Quail Hollow IV Subdivision Landscaping Maintenance Assessment Zone confirming the diagram and assessment and ordering the levy of an assessment.
The purpose of the assessment is to generate funds for the maintenance of landscaping within Myrtle Avenue Right-of-Way and the curve return portion of the intersection of Myrtle Avenue and Aguirre Way Right-of-Way of Quail Hollow IV Subdivision. The funds are to be used solely for maintenance of landscaping within the Quail Hollow IV Subdivision. There are no lights to be maintained within this Zone.
City crews and its landscape contractor provide landscape maintenance within the Right-of-Way for this Zone. On a weekly basis the contractor performs general clean-up of the area and prunes and weeds on a monthly basis. The City fertilizes and structurally prunes on a yearly basis.
In FY 18/19, the City performed routine maintenance and replanted missing or damaged plants.
In Fiscal Year 21/22 the City removed and replaced the sidewalk in two places which were damaged by tree roots. After consulting with the LLAD residents, the City removed the redwood trees that caused the damage The LLAD continues to have insufficient funds for capital projects as well as routine maintenance and, therefore, the work was completed from a loan to the LLAD from the City’s General Fund.
Projected Costs of Assessment Zone
The actual base maintenance cost for this Zone in FY 20/21 increased from prior years due to the need to irrigate the newly installed landscaping. This increased expense is reflected in the utilities line item below and is not sustainable. Therefore, until the landscaping becomes established, an annual loan from the City’s General Fund will be needed to fill the revenue shortfall.
The projected annual cost of maintaining the landscaping and lighting for the Fiscal Year 2022- 2023 is $3,738.00.
Description FY 20/21 Actuals FY 21/22 Estimated FY 22/23 Projected Utility Charges $1,107.00 $1,218.00 $1300.00
Contract Services $407.00 $420.00 $450.00
Capital Projects $19,000.00
City Labor $1,127.00 $1,100.00 $1,300.00
DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 252 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
Annual Zone Administration $441.00 $500.00.00 $550.00
General Fund Loan Repayment $0.00 $0.00 $0.00
Total Expenses $3,082.00 $22,238.00 $3,600.00
Zone Reserve Used $0.00 $0.00 $0.00
General Fund Loan $1,842.00 $20,998.00 $2,360.00
Total Assessment $1,240.00 $1,240.00 $1,240.00
Assessment Interest $0.00 0 0
Total Revenue $3,082.00 $22,238.00 $3,600.00
Estimated Fund Balance
FY 2021-22
(Estimated)
FY 2022-2023
(Projected)
Estimated Starting Reserve
Fund Balance July 1 -$4,153 -$25,151.00
Estimated Assessment
Revenue $1,240.00 $1,240.00
Estimated Expenses $22,238.00 $3,738.00
Estimated Ending Reserve
Fund Balance June 30 -$25,151.00 -$27,649.00
The total proposed assessment for FY 2022-2023 is $1,240.
Zone 2 has an annual need for a loan from the General Fund as the streetscape along Myrtle Avenue requires irrigation and maintenance that exceeds the zone's assessment revenue.
At present, this zone is not expected to be self-sufficient without an increase in the annual assessment which requires approval by the majority of the owners of the assessed lots. Without an approved increase of the annual assessment, and with continued maintenance of the streetscape, this Zone will continue to receive a General Fund loan annually.
Method of Assessment Spread
The assessment shall be divided equally among all of the individual parcels within the assessment zone. A more detailed description of the method of apportionment is in Attachment A.
Assessment Spread
Thirty-one (31) parcels in assessment area
Lot No. Assessor's Parcel Number Annual Charge
1 046-610-017 $40.00
2 046-610-018 $40.00
3 046-610-019 $40.00
4 046-610-020 $40.00
5 046-610-021 $40.00
DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 253 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
6 046-610-022 $40.00
7 046-610-023 $40.00
8 046-610-024 $40.00
9 046-610-025 $40.00
10 046-610-026 $40.00
11 046-610-027 $40.00
12 046-610-028 $40.00
13 046-610-029 $40.00
14 046-610-030 $40.00
15 046-610-031 $40.00
16 046-610-032 $40.00
17 046-610-033 $40.00
18 046-610-034 $40.00
19 046-610-035 $40.00
20 046-610-036 $40.00
21 046-610-037 $40.00
22 046-610-038 $40.00
23 046-610-039 $40.00
24 046-610-040 $40.00
25 046-610-041 $40.00
26 046-610-042 $40.00
27 046-610-043 $40.00
28 046-610-044 $40.00
29 046-610-045 $40.00
30 046-610-046 $40.00
31 046-610-047 $40.00
Total Annual Assessment $1,240.00
Zone 3: Sommers
Background
On March 28, 1989, the City Council adopted Resolution No. 89-11, approving the Engineer’s Report, and on March 28, 1989, adopted Resolution No. 89-11, ordering the formation of the City of Cotati Sommers Subdivision Landscape and Lighting Maintenance Assessment District confirming the diagram and assessment and ordering the levy of an assessment.
The purpose of the assessment is to generate funds for the maintenance of Landscaping and Lighting within the City Right-of-Way of the Sommers Subdivision. The funds are to be used solely for maintenance of landscaping and lighting within the City Right-of-Way of the Sommers Subdivision.
This Zone includes six driveway lights and 3,047 square feet of fronting La Salle Avenue landscaping. City crews and its landscape contractor provide landscape maintenance within the City Right-of-Way for this Zone. On a weekly basis the contractor performs general clean-up of the DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 254 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
area and prunes and weeds on a monthly basis. The City fertilizes and structurally prunes on a yearly basis as well as places mulch as needed in planter area. Driveway lights are inspected once per month and repaired as needed. The City installed ADA compliant curb ramps on either side of the subdivision’s driveway in FY 19/20. The City plans to prune the street-trees in FY22/23.
Projected Costs of Assessment Zone
The projected annual cost of maintaining the landscaping and lighting for the Fiscal Year 2022- 2023 is $1,912.
Description FY 20/21 Actuals FY 21/22 Estimated FY 22/23 Projected Utility Charges $742.00 $800.00 $820.00
Contract Services $275.00 $300.00 $320.00
Capital Projects $0.00 $0.00 $0.00
City Labor+Materials $586.00 $600.00 $650.00
Annual Zone Administration $167.00 $200.00 $250.00
General Fund Loan Repayment $0.00 $0.00 $0.00
Total Expenses $1,770.00 $1,900.00 $2,040.00
Zone Reserve Used $0.00 $0.00 $0.00
General Fund Loan $0.00 $0.00 $0.00
Total Assessment $2,465.00 $2,465.00 $2,465.00
Assessment Interest $98.00 $0.00 $0.00
Total Revenue $2,465.00 $2,465.00 $2,465.00
Estimated Fund Balance
FY 2021-22
(Estimated)
FY 2022-2023
(Projected)
Estimated Starting Reserve
Fund Balance July 1 $12,972.00 $13,537.00
Estimated Assessment
Revenue $2,465.00 $2,465.00
Estimated Expenses $1,900.00 $2,040.00
Estimated Ending Reserve
Fund Balance June 30 $13,537.00 $13,962.00
The total proposed assessment for FY 22/23 is $2,465.
Method of Assessment Spread
The assessment shall be assessed at $290.00 per parcel with duplex per year and $435.00 per parcel with triplex per year. A more detailed description of the method of apportionment is in Attachment A.
Assessment Spread
Eight (8) parcels in assessment area
Lot No. Assessor's Parcel Number Annual Charge
1 144-282-020 $290.00
DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 255 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
2 144-282-021 $290.00
3 144-282-022 $290.00
4 144-282-023 $290.00
5 - Triplex 144-282-024 $435.00
6 144-282-025 $290.00
7 144-282-026 $290.00
8 144-282-027 $290.00
Total Annual Assessment $2,465.00
Zone 4: Macklin
Background
On June 12, 1991, the City Council adopted Resolution No. 91-34 initiating proceedings to establish the Macklin Subdivision Phase I Landscape Maintenance Assessment Zone, in accordance with the "Landscaping and Lighting Act of 1972", Streets and Highways Code, Section 22500, et seq. On June 12, 1991, the City Council adopted Resolution No. 91-34, approving the Engineer's Report, and on June 26, 1991, adopted Resolution No. 91-37, ordering the formation of the City of Cotati Macklin Subdivision Phase I Landscape Maintenance Assessment District confirming the diagram and assessment, and ordering the levy of an assessment.
The purpose of the assessment is to generate funds for landscape maintenance within the City Right-of-Way of the Macklin Subdivision Phase I. The funds are to be used solely for landscape maintenance within the City Right-of-Way of the Macklin Subdivision Phase I.
This zone includes 1,170 square feet of landscaping. City crews and its landscape contractor provide landscape maintenance for this zone within the City Right-of-Way. On a weekly basis the contractor performs general clean-up of the area and prunes and weeds on a monthly basis. The City fertilizes and structurally prunes on a yearly basis. Mulch was added in FY 16/17 but the area was not included in the Myrtle Landscaping project scope for soil amendments and plantings because the hedges and shrubs are in generally good health and appearance.
Projected Costs of Assessment Zone
The projected annual cost of maintaining the landscaping and lighting for the Fiscal Year 2022- 2023 is $1,253.00.
Description FY 20/21 Actuals FY 21/22Estimated FY 22/23Projected Utility Charges $130.00 $137.00 $145.00
Contract Services $330.00 $360.00 $380.00
City Labor $168.00 $300.00 $300.00
Annual Zone Administration $650.00 $650.00 $675.00
General Fund Loan Repayment $0.00 $0.00 $0.00
Total Expenses $1,278.00 $1,447.00 $1,500.00
Zone Reserve Used $0.00 $0 $0
DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 256 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
General Fund Loan $0.00 $0.00 $0.00
Total Assessment $1,248.00 $1,248.00 $1,248.00
Assessment Interest 18.00 $0 $0
Total Revenue $1,266.00 $1,248.00 $1,248.00
Estimated Fund Balance
FY 2021-22
(Estimated)
FY 2022-2023
(Projected)
Estimated Starting Reserve
Fund Balance July 1 $2,178.00 $1,979.00
Estimated Assessment
Revenue $1,248.00 $1,248.00
Estimated Expenses $1,447.00 $1,500.00
Estimated Ending Reserve
Fund Balance June 30 $1,979.00 $1,727.00
The total proposed assessment for FY 22/23 is $1,248.00.
Method of Assessment Spread
The assessment shall be divided equally among all of the individual parcels within the assessment zone. A more detailed description of the method of apportionment is in Attachment A.
Assessment Spread
Thirty-nine (39) parcels in assessment area
Lot No. Assessor's Parcel Number Annual Charge
1 046-620-001 $32.00
2 046-620-002 $32.00
3 046-620-003 $32.00
4 046-620-004 $32.00
5 046-620-005 $32.00
6 046-620-006 $32.00
7 046-620-007 $32.00
8 046-620-008 $32.00
9 046-620-009 $32.00
10 046-620-010 $32.00
11 046-620-011 $32.00
12 046-620-012 $32.00
13 046-620-013 $32.00
14 046-620-014 $32.00
15 046-620-015 $32.00
16 046-620-016 $32.00
17 046-620-017 $32.00
18 046-620-018 $32.00
19 046-620-019 $32.00
20 046-620-020 $32.00
DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 257 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
21 046-620-021 $32.00
22 046-620-022 $32.00
23 046-620-023 $32.00
24 046-620-024 $32.00
25 046-620-025 $32.00
26 046-620-026 $32.00
27 046-620-027 $32.00
28 046-620-028 $32.00
29 046-620-029 $32.00
30 046-620-030 $32.00
31 046-620-031 $32.00
32 046-620-032 $32.00
33 046-620-033 $32.00
34 046-620-034 $32.00
35 046-620-035 $32.00
36 046-620-036 $32.00
37 046-620-037 $32.00
38 046-620-038 $32.00
39 046-620-039 $32.00
Total Annual Assessment $1,248.00
Zone 5: Sierra Meadows Subdivision
Background
On September 11, 1996 the City Council adopted Resolution No. 96-66 approving the Engineer’s Report, ordering the formation of the City of Cotati Sierra Meadows Subdivision Lighting Assessment District confirming the diagram and assessment, and ordering the levy of an assessment.
The purpose of the assessment is to generate funds for the maintenance of lighting in the Sierra Meadows Subdivision City Right-of-Way. The funds are to be used for electrical costs and incidental expenses associated with street lighting within the Sierra Meadows Subdivision City Right-of-Way. There is no landscaping in this Zone.
This Zone includes six LED 120 volt, 70 watt lights and three LED, 120 volt, 100 watt lights. Street lights are inspected once per month and repaired as needed.
The reserves were depleted in FY 17/18 and a General Fund loan of $308.00 was needed to keep the reserves from being negative. With minimal maintenance efforts and no emergency expenditures, the zone paid back the General Fund in FY 18/19.
Projected Costs of Assessment Zone
The estimated annual cost of maintaining the landscaping and lighting for the Fiscal Year 2022- 2023 is $977.00.
DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 258 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
Description FY 20/21 Actuals FY 21/22 Estimated FY22/23 Projected Utility Charges $293.00 $308.00 $327
Contract Services $0.00 $0.00 $0.00
City Labor $37.00 $0.00 $0.00
Annual Zone Administration $538.00 $565.00 $593.00
General Fund Loan Repayment $0 $0.00 $0.00
Total Expenses $868.00 $873.00 $920.00
Zone Reserve Used $0.00 $0.00 $0.00
General Fund Loan $0.00 $0.00 $0.00
Total Assessment $1,102.20 $1,102.20 $1,102.20
Assessment Interest $11.00 $0.00 $0.00
Total Revenue $1,102.00 $1,102.00 $1,102.00
Estimated Fund Balance
FY 2021-22
(Estimated)
FY 2022-2023
(Projected)
Estimated Starting Reserve
Fund Balance July 1 $1,536.00 $1,765.00
Estimated Assessment
Revenue $1,102.20 $1,102.00
Estimated Expenses $873.00 $920.00
Estimated Ending Reserve
Fund Balance June 30 $1,765.00 $1,947.00
The total proposed assessment for FY 22/23 is $1,102.20.
Method of Assessment Spread
The assessment shall be divided equally among all of the individual parcels within the assessment zone. A more detailed description of the method of apportionment is in Attachment A.
Assessment Spread
Thirty (30) parcels in assessment area
Lot No. Assessor's Parcel Number Annual Charge
1 144-730-001 $36.74
2 144-730-002 $36.74
3 144-730-003 $36.74
4 144-730-004 $36.74
5 144-730-005 $36.74
6 144-730-006 $36.74
7 144-730-007 $36.74
8 144-730-008 $36.74
9 144-730-009 $36.74
10 144-730-010 $36.74
DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 259 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
11 144-730-011 $36.74
12 144-730-012 $36.74
13 144-730-013 $36.74
14 144-730-014 $36.74
15 144-730-015 $36.74
16 144-730-016 $36.74
17 144-730-017 $36.74
18 144-730-018 $36.74
19 144-730-019 $36.74
20 144-730-020 $36.74
21 144-730-021 $36.74
22 144-730-022 $36.74
23 144-730-023 $36.74
24 144-730-024 $36.74
25 144-730-025 $36.74
26 144-730-026 $36.74
27 144-730-029 $36.74
28 144-730-031 $36.74
29 144-730-032 $36.74
30 144-730-033 $36.74
Total Annual Assessment $1,102.20
Zone 6: Oak Knoll Subdivision
Background
On March 11, 1998, the City Council of the City of Cotati, California, adopted Resolution No. 98- 14 initiating proceedings to levy an annual assessment for the landscaping and lighting improvements of the City of Cotati Oak Knoll Subdivision Landscape and Street Light Maintenance Assessment District, Sonoma County, California (“Assessment District”), pursuant to the provisions of the California Streets and Highways Code Section 22500 et seq., (the Landscape and Lighting Act of 1972). On June 23, 1999, the City Council adopted resolution 99-37 approving the Engineer’s Report, ordering the formation of the City of Cotati Oak Knoll Subdivision Landscape and Lighting Assessment District confirming the diagram and assessment and ordering the levy of an assessment.
On April 9, 1997, the City Council of the City of Cotati adopted Resolution No. 97-22 granting tentative approval for the Oak Knoll Subdivision. Condition No. 2 of the Resolution requires a landscape and street light maintenance assessment zone be formed to provide funds for the maintenance of landscaping and street lighting within the City Right-of-Way of the Oak Knoll Subdivision, in accordance with the provision of Streets and Highways Code, Section 22500, et seq. (the Landscape and Lighting Act of 1972). Then, on March 25, 1998, the City Council adopted Resolution No. 98-21 forming the Landscaping and Street Light Maintenance Assessment District for the Oak Knoll Subdivision.
DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 260 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
All individual lots within the boundary of Oak Knoll Subdivision shall be included within the assessment zone, with the exception of all dedicated public streets and Parcel “A” as shown upon the recorded map of Oak Knoll Subdivision.
This Zone includes five street lights, LED, 120 volt, 100 watt diffuser bulbs.
The City provides landscape maintenance within the City Right-of-Way for this Zone including weekly general clean-up of the area, monthly pruning and weed control, and annual fertilization and structural pruning. High pressure sodium street lights were replaced with energy efficient LED’s in FY 15/16 and these expenses were charged to the zone in FY 16/17. Additionally, street lights are inspected once per month and repaired as needed.
Projected Costs of Assessment Zone
The projected annual cost of maintaining the landscaping and lighting for the Fiscal Year 2022- 2023 is $2,159.00.
Description FY 20/21 Actuals FY 21/22 Estimated FY 22/23 Projected Utility Charges $510.00 $561.00 $589.00
Contract Services $550.00 $600.00 $620.00
City Labor + Materials $174.00 $500.00 $500.00
Annual Zone Administration $449.00 $450.00 $450.00
General Fund Loan Repayment $0.00 $0.00 $0.00
Total Expenses $1,683.00 $2,111.00 $2,159.00
Zone Reserve Used $0.00 $0.00 $0.00
General Fund Loan $0.00 $0.00 $0.00
Total Assessment $3,204.00 $3,204.00 $3,204.00
Assessment Interest $148.00 $0 $0
Total Revenue $3,352.00 $3,204.00 $3,204.00
Estimated Fund Balance
FY 2021-22(Estimated) FY 2022-2023
(Projected)
Estimated Starting Reserve
Fund Balance July 1 $19,934.00 $21,027.00
Estimated Assessment
Revenue $3,204.00 $3,204.00
Estimated Expenses $2,111.00 $2,159.00
Estimated Ending Reserve
Fund Balance June 30 $21,027.00 $22,072.00
The total proposed assessment for FY 2022-2023 is $3,204.
Method of Assessment Spread
The parcels within the Oak Knoll Subdivision receive special benefits of well-maintained public landscaped areas and streetlights. These special benefits include enhanced neighborhood DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 261 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
identity and quality of life, as well as a sense of community along with increased property values.
Based on the foregoing, each of the individual parcels within the assessment zone, will be assessed an amount equal to 1/24th of the total assessment since they receive equal share of the special benefits mentioned above. Parcel “A” is a driveway serving lots 7, 8, 9, and 10. As Parcel “A” does not receive any of the special benefits, it is not assessed.
Assessment Spread
Twenty-four (24) parcels in assessment area
Lot No. Assessor's Parcel Number Annual Charge
1 144-340-028 $133.50
2 144-340-029 $133.50
3 144-340-030 $133.50
4 144-340-031 $133.50
5 144-340-032 $133.50
6 144-340-033 $133.50
7 144-340-034 $133.50
8 144-340-035 $133.50
9 144-340-036 $133.50
10 144-340-037 $133.50
11 144-340-038 $133.50
12 144-340-039 $133.50
13 144-340-040 $133.50
14 144-340-041 $133.50
15 144-340-042 $133.50
16 144-340-043 $133.50
17 144-340-044 $133.50
18 144-340-045 $133.50
19 144-340-046 $133.50
20 144-340-047 $133.50
21 144-340-048 $133.50
22 144-340-049 $133.50
23 144-340-050 $133.50
24 144-340-051 $133.50
Total Annual Assessment $3,204.00
Zone 7: Garden Gate
Background
On February 14, 2001 the City Council of the City of Cotati Adopted Resolution No. 01-10 initiating proceedings to establish the Garden Gate Subdivision Landscape and Lighting Assessment Zone, in accordance with the "Landscaping and Lighting Act of 1972", Streets and Highways Code, Section 22500, et seq. Then, on April 11, 2001, the City Council adopted DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 262 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
Resolution No. 01-28 forming the Landscaping and Street Light Maintenance Assessment District for the Garden Gate Subdivision, confirming the diagram and assessment, and ordering the levy of an assessment.
The purpose of the assessment is to generate funds for the maintenance of landscape and lighting in the Garden Gate Subdivision Right-of-Way. The funds are to be used for electrical, landscape and incidental expenses associated with street lighting as well as Parcel A & B Landscape Maintenance within the Garden Gate Subdivision.
This Zone includes a total landscaping area for Parcel A & B of 2,900 square feet and five LED, 120 volt, 70 watt lights.
The City provides landscape maintenance within the City Right-of-Way for this Zone including general weekly clean-up of the area, monthly pruning and weed control, and annual fertilization and structural pruning. Street lights are inspected once per month and repaired as needed. In FY21/22 one leaning tree was removed and two trees were topped for safety as they were close to a house. New mulch is planned for FY22/23.
Projected Costs of Assessment Zone
The projected annual cost of maintaining the lighting and Parcels A & B landscaping for the Fiscal Year 2022-2023 is $2,671.00.
Description FY 20/21 Actuals FY 21/22 Estimated FY 22/23 Projected Utility Charges $835.00 $919.00 $1,011
Contract Services $330.00 $360.00 $360.00
City Labor $0.00 $1,000.00 $1,000.00
Annual Zone Administration $264.00 $300.00 $300.00
General Fund Loan Repayment $0.00 $0.00 $0.00
Total Expenses $1,429.00 $2,579.00 $2,671.00
Zone Reserve Used $0.00 $0.00 $0.00
General Fund Loan $0.00 $0.00 $0.00
Total Assessment $3,367.50 $3,442.50 $3,615.00
Assessment Interest $113.00 $0 $0
Total Revenue $3,481.00 $3,442.00 $3,615.00
Estimated Fund Balance
FY 2021-22
(Estimated)
FY 2022-2023
(Projected)
Estimated Starting Reserve
Fund Balance July 1 $15,646.00 $16,510.00
Estimated Assessment
Revenue $3443.00 $3,615.00
Estimated Expenses $2,579.00 $2,671.00
Estimated Ending Reserve
Fund Balance June 30 $16,510.00 $17,454.00
DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 263 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
The total proposed assessment for FY 2022-23 is $3,615.00 which is a 5.0 percent increase over FY 2021-22.
Method of Assessment Spread
The assessment shall be divided equally among all of the individual parcels within the Assessment Zone. A more detailed description of the method of apportionment is in Attachment A.
Assessment Spread
Fifteen (15) parcels in assessment area
Lot No. Assessor's Parcel
Number
Annual
Charge
1 144-720-042 $241.00
2 144-720-043 $241.00
3 144-720-044 $241.00
4 144-720-045 $241.00
5 144-720-046 $241.00
6 144-720-047 $241.00
7 144-720-048 $241.00
8 144-720-049 $241.00
9 144-720-050 $241.00
10 144-720-051 $241.00
11 144-720-052 $241.00
12 144-720-053 $241.00
13 144-720-058 $241.00
14 144-720-059 $241.00
15 144-720-060 $241.00
Total Annual Assessment $3,615.00
Zone 8: Park Meadows
Background
On October 13, 1999, the City Council of the City of Cotati adopted Resolution No. 99-72 granting tentative approval for the Park Meadows Subdivision. Condition No. 43 of said Resolution requires that a landscape and street light maintenance assessment zone be formed to provide funds for the maintenance of landscaping and street lighting within the City Right-of-Way of the Park Meadows Subdivision, in accordance with the provision of Streets and Highways Code, Section 22500, et seq. (the Landscape and Lighting Act of 1972). Then, on April 11, 2001, the City Council adopted Resolution No. 01-30 forming the landscaping and street light maintenance assessment district for the Park Meadows Subdivision, confirming the diagram and assessment, and ordering the levy of an assessment.
The Zone consists of landscaping and street lighting within the City Right-of-Way and Parcel "A" of the Park Meadows Subdivision.
DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 264 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
This Zone includes 38,475 square feet of landscape area and sixteen 120 volt, 70 watt high pressure street lights. Up until FY 18/19, this Zone had eleven lights, however five of the lights installed as part of the City-Wide Lighting Project are within this Zone and their installation and ongoing maintenance costs are charged to this Zone.
The City provides landscape maintenance within the City Right-of-Way for this Zone including weekly general clean-up of the area, monthly pruning and weed control, and annual fertilization and structural pruning. Street lights are inspected once per month and repaired as needed. The City installed five lights along pathways in this zone in FY 18/19 for a total cost of $30,000.
Capital Projects planned for FY 21-22 consist of improving the pathway from McGinnis Circle to the Laguna De Santa Rosa bridge, the pathway to Marsh Way, and repairs to the split rail fence.
The total cost of these Capital Improvements is anticipated to be $25,000. This work is to extend into FY22-23.
Projected Costs of Assessment Zone
The projected annual cost of maintaining the landscaping and lighting for the fiscal year 2022- 2023 is $32,004.00.
Description FY20/21 Actuals FY 21/22 Estimated FY 22/23 Projected Utility Charges $5,531.00 $6,084.00 $6,388.00
Contract Services $3,850.00 $4,200.00 $4,200.00
City Labor $124.00 $500.00 $500.00
Capital Project $0.00 $5,000 $20,000.00
Annual Zone Administration $831.00 $873.00 $916.00
General Fund Loan Repayment $0.00 $0.00 $0.00
Total Expenses $10,336.00 $16,657.00 $32,004.00
Zone Reserve Used $0.00 $0.00 $14,921.00
General Fund Loan $0.00 $0.00 $0.00
Total Assessment $16,949.00 $17,355.00 $18,232.50
Assessment Interest $140.00 $0 $0
Total Revenue $17,089.00 $17,355.00 $18,232.50
Estimated Fund Balance
FY 2021-22
(Estimated)
FY 2022-2023
(Projected)
Estimated Starting Reserve
Fund Balance July 1 $24,081.00 $24,779.00
Estimated Assessment
Revenue $17,355.00 $18,232.50
General Fund Loan $0.00 $0.00
Estimated Expenses $16,657.00 $32,004.00
Estimated Ending Reserve
Fund Balance June 30 $24,779.00 $11,008.00
The total proposed assessment for FY 2022-23 is $18,232.50 which is a 5 percent increase over DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 265 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
FY 2021-22.
Method of Assessment Spread
The parcels within the Park Meadow Subdivision will receive special benefits of well-maintained public landscaped areas and streetlights. These special benefits include enhanced neighborhood identity and quality of life, as well as a sense of community along with increased property values.
Based on the foregoing, each of the individual parcels within the assessment zone, will be assessed in an amount equal to 1/39th of the total assessment since they receive equal share of the special benefits mentioned above. Parcel "A" and Parcel "B" are open space areas, therefore they are not assessed.
Assessment Spread
Thirty-nine (39) parcels in Assessment Area
Lot No. Assessor's Parcel
Number
Annual
Charge
1 144-740-001 $467.50
2 144-740-002 $467.50
3 144-740-003 $467.50
4 144-740-004 $467.50
5 144-740-005 $467.50
6 144-740-006 $467.50
7 144-740-007 $467.50
8 144-740-008 $467.50
9 144-740-009 $467.50
10 144-740-010 $467.50
11 144-740-011 $467.50
12 144-740-012 $467.50
13 144-740-013 $467.50
14 144-740-014 $467.50
20 144-740-020 $467.50
21 144-740-021 $467.50
22 144-740-022 $467.50
23 144-740-023 $467.50
24 144-740-024 $467.50
25 144-740-025 $467.50
26 144-740-026 $467.50
27 144-740-027 $467.50
28 144-740-028 $467.50
29 144-740-029 $467.50
30 144-740-030 $467.50
31 144-740-031 $467.50
32 144-740-032 $467.50
33 144-740-033 $467.50
34 144-740-034 $467.50
35 144-740-035 $467.50
DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 266 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
36 144-740-036 $467.50
Lands of Dluzak
37 144-740-046 $467.50
38 144-740-047 $467.50
39 144-740-048 $467.50
Total Annual Assessment $18,232.50
Zone 9: Santero Way
Background
On October 9, 2002, the City Council of the City of Cotati adopted Resolution No. 02-91 granting tentative approval for the Santero Way Developments. Condition No. 59 of said Resolution requires that a landscape and street light maintenance assessment zone be formed to provide funds for the maintenance of landscaping and street lighting within the Cotati Station Phase I Subdivision, in accordance with the provision of Streets and Highways Code, Section 22500, et seq. (the Landscape and Lighting Act of 1972). Then, on July 9, 2008, the City Council adopted Resolution No. 08-58 forming the landscaping and street light maintenance assessment district for the Santero Way Subdivision, confirming the diagram and assessment, and ordering the levy of an assessment.
The purpose of the assessment is to generate funds for the maintenance of landscape and lighting within the City Right-of-Way in the Santero Way Developments. The funds are to be used for electrical power, landscape maintenance, water, park furniture maintenance. Additionally, the funds are used for incidental expenses associated with public street lighting and landscape maintenance of the public park within the Santero Way Developments.
This Zone includes 31,000 square feet of landscape area including the Santero Way Park and seventeen LED, 120 volt, 70 watt street lights.
The City provides landscape maintenance within the City Right-of-Way for this Zone including weekly lawn mowing, edging, and general clean-up of the area, monthly pruning and weed control, and annual fertilization and structural pruning. However, the Santero Way Homeowners Association (HOA) has been contracting and paying for the landscape expenses for this Zone from the beginning. City staff met with the HOA Board to discuss Zone 9 paying for these services retroactively in FY 17/18 and for future years under a services agreement. The discussions also included identifying potential capital projects to rehabilitate park features including tree replacement, irrigation repair, replacing the drinking fountain, repair and/or replacement of benches and tables, replacement of playground ground cover, completing a playground evaluation, and repair root damaged sidewalks for sidewalks within the Zone. The HOA Board heard this item at their May 24, 2018 Board meeting and approved these CIP items for FY 18/19, increasing the Capital Improvements budget to $20,000, invoicing the City retroactively for FY 17/18 maintenance expenses, and working on an agreement with the City to invoice the Zone for annual maintenance costs. On February 28, 2019 the HOA Board met and supported having the City contract directly with a landscaping company for maintaining the park and street landscaping strip. The City has negotiated an agreement with a landscaping company with the DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 267 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
effecting start date of July 1, 2019. Cost tables below include the landscape maintenance expenses as Zone expenses.
Contract services for routine maintenance totaled $9,336 in FY21/22 and is expected to increase with some measure of inflation. This leaves just under $4,000 for other expenses including utility charges, City labor and administration. These expenses totaled $6,585 in FY20/21. Therefore, there is a systemic operating deficit for this Zone. To make matters worse, expenses were incurred in FY20/21 and FY21/22 beyond routine maintenance and required drawing down reserves. The expenses beyond routine maintenance in FY20/21 consisted of 1) mulch replacement along the Santero Way Streetscape ($5,815), 2) Irrigation repairs and tune up and electrical repair and turf repair ($965). Additional repairs and replacements in FY21/22 through April 2022, consisted of 1) removing and replacing a tree that was damaged in a windstorm ($2,271), and 2) irrigation and leak repairs ($270).
Projected Costs of Assessment Zone
The projected annual cost of maintaining the landscaping and lighting for the Fiscal Year 2022- 2023 is $25,599.00. The Zone’s reserves are projected to go negative by the end of FY22/23. City staff will endeavor to limit contract services to maintain a positive reserve balance.
Description FY 20/21 Actuals FY 21/22 Estimated FY 22/23 Projected Utility Charges $5,248.00 $5,773.00 $5,535.00
Contract Services $15,931.00 $13,000 $13,000
Capital Projects $0.00 $0.00 $0.00
City Labor $0.00 $500.00 $500.00
Annual Zone Administration $1,337.00 $1,404.00 $1,474.00 General Fund Loan Repayment $0.00 $0.00 $0.00
Total Expenses $22,516.00 $20,677.00 $20,509.00
Zone Reserve Used $10,160.00 $8,252 $7,209.00
General Fund Loan $0.00 $0.00 $0.00
Total Assessment $12,146.00 $12,425.00 $13,300.00
Assessment Interest $210.00 $0.00 $0.00
Total Revenue $22,516.00 $20,677.00 $20,509.00
Estimated Fund Balance
FY 2021-22
(Estimated)
FY 2022-2023
(Projected)
Estimated Starting Reserve
Fund Balance July 1 $24,124.00 $15,872.00
Estimated Assessment
Revenue $12,425.00 $13,300.00
Estimated Expenses $20,677.00 $20,509.00
Estimated Ending Reserve
Fund Balance June 30 $15,872.00 $8,663.00
The total proposed assessment for FY 2022-23 is $13,300.00 which is a 7.0 percent increase over DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 268 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
FY 2021-22.
Method of Assessment Spread
The assessment shall be equally divided among the seventy (70) dwelling units. A more detailed description of the method of apportionment is in Attachment A.
Assessment Spread
Seventy (70) parcels in assessment area
Lot No. Assessor's Parcel
Number
Annual
Charge
1 144-770-001 $190.00
2 144-770-002 $190.00
3 144-770-003 $190.00
4 144-770-004 $190.00
5 144-770-005 $190.00
6 144-770-006 $190.00
7 144-770-007 $190.00
8 144-770-008 $190.00
9 144-770-009 $190.00
10 144-770-010 $190.00
11 144-770-011 $190.00
12 144-770-012 $190.00
13 144-770-013 $190.00
14 144-770-014 $190.00
15 144-770-015 $190.00
16 144-770-016 $190.00
17 144-770-017 $190.00
18 144-770-018 $190.00
19 144-770-019 $190.00
20 144-770-020 $190.00
21 144-770-021 $190.00
22 144-770-022 $190.00
23 144-770-023 $190.00
24 144-770-024 $190.00
25 144-770-025 $190.00
27 144-770-027 $190.00
28 144-770-028 $190.00
29 144-770-029 $190.00
30 144-770-030 $190.00
31 144-770-031 $190.00
32 144-770-032 $190.00
33 144-770-033 $190.00
34 144-770-034 $190.00
35 144-770-035 $190.00
36 144-770-036 $190.00
DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 269 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
37 144-770-037 $190.00
38 144-770-038 $190.00
39 144-770-039 $190.00
40 144-770-040 $190.00
41 144-770-041 $190.00
42 144-770-042 $190.00
43 144-770-043 $190.00
44 144-770-044 $190.00
45 144-770-045 $190.00
46 144-770-046 $190.00
47 144-770-047 $190.00
48 144-770-048 $190.00
50 144-770-050 $190.00
CAP 1A 144-770-051 $190.00
CAP 1B 144-770-052 $190.00
CAP 2A 144-770-053 $190.00
CAP 2B 144-770-054 $190.00
CAP 3A 144-770-055 $190.00
CAP 3B 144-770-056 $190.00
CAP 4A 144-770-057 $190.00
CAP 4B 144-770-058 $190.00
CAP 5A 144-770-059 $190.00
CAP 5B 144-770-060 $190.00
CAP 6A 144-770-061 $190.00
CAP 6B 144-770-062 $190.00
CAP 7A 144-770-063 $190.00
CAP 7B 144-770-064 $190.00
CAP 8A 144-770-065 $190.00
CAP 8B 144-770-066 $190.00
CAP 9A 144-770-067 $190.00
CAP 9B 144-770-068 $190.00
CAP 10A 144-770-069 $190.00
CAP 10B 144-770-070 $190.00
Total Annual Assessment $13,300.00
Zone 10: Altman Acres
Background
On October 9, 2002, the City Council of the City of Cotati adopted Resolution No. 02-91 granting tentative approval for the Altman Acres Subdivision. Condition No. 59 of said Resolution requires that a landscape and street light maintenance assessment Zone be formed to provide funds for the maintenance of landscaping and street lighting within the Altman Acres Subdivision, in accordance with the provision of Streets and Highways Code, Section 22500, et seq. (the Landscape and Lighting Act of 1972). Then, on October 9, 2002, the City Council adopted Resolution No. 02-94 forming the Altman Acres Subdivision.
DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 270 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
The Zone is maintaining landscaping and lighting in the Altman Acres Subdivision City Right-ofWay and along Old Redwood Highway Right-of-Way fronting Lots 1 through 7. All funds shall be used for electrical, landscape, and incidental expenses within the Altman Acres Subdivision.
This Zone includes 11,750 square feet of landscape area and five LED, 120 volt, 100 watt street lights.
The City provides landscape maintenance within the City Right-of-Way for this Zone including weekly general clean-up of the area, monthly pruning and weed control, and annual fertilization and structural pruning. Street lights are inspected once per month and repaired as needed.
City staff met with residents at the HOA Board meeting on Friday November 19, 2021, and discussed requested cleanup and replanting of the streetscape fronting Old Redwood Highway.
This would be a capital project requiring the City to hire a contractor. This work has been added to the budget for Fiscal Year 22/23. City Staff met again with the community at the HOA Board meeting on May 17, 2022 and due to the increasing reserves, staff agreed to propose a 5 percent reduction in the assessment for 2022/23 and setting a reserve target of $20,000 subject to receiving a quote from landscape contractor(s) for re-landscaping the street-scape. Since the meeting, the City received one quote for $26,800. This quote is consistent with what was discussed at the May 17, 2022 HOA Board meeting.
Projected Costs of Assessment Zone
The projected annual cost of maintaining the landscaping and lighting for the Fiscal Year 2022- 2023 is $2,661.00.
Description FY 20/21 Actuals FY 21/22 Estimated FY 22/23 Projected Utility Charges $1,334.00 $1,450.00 $1,500.00
Contract Services $385.00 $420.00 $420.00
Capital Projects 0.00 0.00 30,000.00
City Labor $263.00 $300.00 $300.00
Annual Zone Administration $230.00 $250.00 $270.00
General Fund Loan Repayment $0.00 $0.00 $0.00
Total Expenses $2212.00 $2,420.00 32,490.00
Zone Reserve Used $0.00 $0.00 $0.00
General Fund Loan $0.00 $0.00 $0.00
Total Assessment $5,672.00 $5,803.00 $5,516.00
Assessment Interest $44.00 $0.00 $0.00
Total Revenue $5,716.00 $5,803.00 $5,516.00
Estimated Fund Balance
FY 2021-22
(Estimated)
FY 2022-2023
(Projected)
DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 271 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
Estimated Starting Reserve
Fund Balance July 1 $32,826.00 $36,209.00
Estimated Assessment
Revenue $5,803.00 $5,516.00
Estimated Expenses $2,490.00 $32,490.00
Estimated Ending Reserve
Fund Balance June 30 $36,209.00 $9,235.00
The total proposed assessment for FY 2022-23 is $5,516.00 which is a 5 percent reduction from FY 2021-22. Reserve target is $20,000.
Method of Assessment Spread
The assessment shall be equally divided among the fourteen (14) dwelling units. A more detailed description of the method of apportionment is in Attachment A.
Assessment Spread
Fourteen (14) parcels in assessment area
Lot No. Assessor's Parcel
Number
Annual
Charge
1 046-640-001 $394.00
2 046-640-002 $394.00
3 046-640-003 $394.00
4 046-640-004 $394.00
5 046-640-005 $394.00
6 046-640-006 $394.00
7 046-640-007 $394.00
8 046-640-008 $394.00
9 046-640-009 $394.00
10 046-640-010 $394.00
11 046-640-011 $394.00
12 046-640-012 $394.00
13 046-640-013 $394.00
14 046-640-014 $394.00
Total Annual Assessment $5,516.00
DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 272 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
ENGINEER’S REPORT ATTACHMENTS
Attachment A - Method of Apportionment of Assessment - A statement of the method used by Engineer of Work to determine the amount proposed to be assessed against each parcel within the Assessment District.
Attachment B - Assessment Diagrams – An Assessment Diagram (maps) showing all of the parcels of real property within the boundaries of the ten Assessment Zones. The A.P.N.’s are shown in the Assessor’s Maps available at the County of Sonoma Assessor’s Office.
Attachment C - Improvement Plans – This portion of the Engineer’s Report describes any improvement plans that may be needed for the installation of the improvements. If plans exist, they are filed with the City Clerk. Although separately bound, the plans and specifications are part of this Engineer’s Report and are included in it by reference.
DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 273 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
ATTACHMENT A
METHOD OF APPORTIONMENT OF ASSESSMENT
The following is a brief description of the manner in which the annual assessment has been apportioned to each parcel within the Assessment Zones:
Each parcel within each of the zones of the Assessment District receives a direct special benefit from improvement covered by this assessment as follows:
Valparaiso Vista Zone 1 - Zone 1 includes the maintenance of 7,416 square feet of landscaping along Redwood Highway and Valparaiso Avenue and five street lights within the development. The parcels within this zone receive a direct special benefit from these amenities that are an asset to the values of the homes.
Quail Hollow IV Zone 2 - Zone 2 funds the annual costs associated with the operation and maintenance of Quail Hollow, the back-on landscaping along portions of Myrtle Avenue. Additionally, maintenance of the landscaping provides a direct benefit for the parcels as maintaining the landscaping adds to property values and provides beneficial landscape features specific to residents within this zone.
Sommers Zone 3 - The related Assessment Zone improvements in Zone 3 include six driveway lights. Additionally, the lighting adds to property values and provides beneficial landscape features specific to residents within this zone.
Macklin Zone 4 - The related improvements in Zone 4 includes 1,170 square feet of “backon” landscaping along Myrtle Avenue. Residents within this zone directly benefit from maintenance of the landscaping, as maintaining the landscaping adds to property values and provides beneficial landscape features specific to residents within this zone.
Sierra Meadows Zone 5 - The related improvements in Zone 5 include nine street lights within the development. Residents within this zone directly benefit from the lighting, as maintaining the lighting adds to property values and provides beneficial lighting features specific to residents within this zone.
Oak Knoll Zone 6 - The related improvements in Zone 6 include the island landscape maintenance on Christensen Court and five street lights. Residents within this zone directly benefit from maintenance of the landscaping and lighting, as maintaining the landscaping and lighting adds to property values and provides beneficial landscape features specific to residents within this zone.
Garden Gate Zone 7 - The related improvements in Zone 7 include 2,900 square feet of “back-on” landscape along a portion of East Cotati Avenue and five street lights. Residents within this zone directly benefit from maintenance of the landscaping and lighting, as maintaining the DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 274 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments) landscaping and lighting adds to property values and provides beneficial landscape features specific to residents within this zone.
Park Meadows Zone 8 - The improvements in Zone 8 include 38,475 square feet of “back-on” landscape along a portion of East Cotati Avenue and eleven street lights. Residents within this zone directly benefit from maintenance of the landscaping and lighting, as maintaining the landscaping and lighting adds to property values and provides beneficial landscape features specific to residents within this zone.
Santero Way Zone 9 - The improvements in Zone 9 include a 31,000 square feet landscaped park and seventeen street lights. Residents within this zone directly benefit from maintenance of the landscaping and lighting, as maintaining the landscaping and lighting adds to property values and provides beneficial landscape features specific to residents within this zone.
Altman Acres Zone 10 - The improvements in Zone 10 include a 11,750 square feet landscaped area along Old Redwood Hwy and five street lights. Residents within this zone directly benefit from maintenance of the landscaping and lighting, as maintaining the landscaping and lighting adds to property values and provides beneficial landscape features specific to residents within this zone.
The method of apportionment (spread) equates all parcels in Zones 1, 2, 3, 4, 5, 6 , 7, 8, 9 and 10 within the boundaries of the Assessment Zone to an Equivalent Single-Family Dwelling (ESD) unit use, or portion thereof. The following basic use units reflect the relative benefit accruing to parcels of land within a City of Cotati Landscaping and Lighting Assessment Zone:
1. Single dwelling parcel 1 unit
2. Multiple dwelling unit parcel 1 unit per dwelling
Once the total number of ESD units is determined for each of the Zones, the total number of ESD units within each Zone shall be divided into each respective Zone’s operation and maintenance expenses for the upcoming fiscal year (see Part B). This will result in the proposed annual assessment per ESD for the upcoming fiscal year. The annual assessment per ESD shall be multiplied by the total use units established for each parcel, or portion thereof, to determine the proposed total annual assessment for each parcel within each Zone 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10.
Annual assessments are apportioned in this manner due to the relative benefit of the improvements to each of the parcels within each separate Zone. Since the improvements are easily accessible to all the parcels within each Zone, the level of benefit is equally spread to each parcel.
DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 275 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments) Although Section 22663 of the Streets and Highways Code typically requires that public property not be assessed, Article XIII, Section 4(a) of Proposition 218 now requires that public agencies shall not be exempt from assessment. However, the creek area, wetlands and public rights-of-way and easements within various Zones preclude construction of structures for other uses that conflict with the allowable zoning of these areas. Therefore, these publicly owned areas without a dwelling and used exclusively for greenbelt, or open space, or the common area of any planned unit development, receive no special benefit and do not receive an annual assessment.
DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 276 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
ATTACHMENT B
ASSESSMENT DIAGRAMS
Attached are the Assessment Diagrams (Maps) for the ten Assessment Zones. Please note the lines and dimensions of each parcel, as well as the distinctive Assessor’s Parcel Number, are shown on the Assessor's Maps for the City of Cotati available at the County of Sonoma Assessor's Office.
The attached pages also provide the reference to the appropriate Assessor Books at the County of Sonoma Assessor’s Office for the respective subdivisions in each of the ten Zones.
DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 277 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments) Zone 1 - Valparaiso:
Lots 51 through 65 (15 total) and associated right-of –way street frontages lying within the Valparaiso Vista PUD Subdivision filed in the recorder’s office of the County of Sonoma in book 144 of Maps, Page 40.
Zone 2 - Quail Hollow:
Lots 17-47 (31 total) and associated right-of-way street frontages lying within the Quail Hollow IV Subdivision are filed in the recorder’s office of the County of Sonoma in book 46 of Maps, Page 61.
Zone 3 - Sommers:
Lots 20-27 (8 total) and associated right-of-way street frontages lying within The Sommer Subdivision are filed in the recorder’s office of the County of Sonoma in book 144 of Maps, Pages 28.
Zone 4 - Macklin:
Lots 1-39 (39 total) and associated right-of-way street frontages lying within Macklin Subdivision, filed in the recorder’s office of the County of Sonoma in Book 46 of Maps, Page 62.
Zone 5 - Sierra Meadows:
Lots 1-26, 29, and 31-33 (30 total) and associated right-of-way street frontages lying within the Sierra Meadow Subdivision, filed in the recorder’s office of the County of Sonoma in Book 144 of Maps, Page 73.
Zone 6 - Oak Knoll:
Lots 1-26, 29, and 31-33 (30 total) and associated right-of-way street frontages lying within the Oak Knoll Subdivision, filed in the recorder’s office of the County of Sonoma in Book 144 of Maps, Page34.
Zone 7 - Garden Gate:
Lots 42-53, 58-60 (15 total) and associated right-of-way street frontages lying within the Garden Gate Subdivision, filed in the recorder’s office of the County of Sonoma in Book 144 of Maps, Page72.
Zone 8 - Park Meadows:
All the land lying within the Park Meadows Subdivision, filed in the recorder’s office of the County of Sonoma in Book 144 of Maps, Page47.
Zone 9 - Santero Way:
The boundary of the Santero Way Developments Landscape and Lighting Assessment Zone coincides with the exterior boundaries of the Cotati Station Subdivision, Phase 1, recorded in Book 654 at Pages 44 through 49, Sonoma County Records. All individual Lots 1-50 and twenty (20) Condominium units DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 278 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments) within the boundaries of the Cotati Station Subdivision, Phase 1 (for a total of 70 dwelling units) are included in the assessment Zone.
Zone 10 - Altman Acres:
Lots 1-14 (14 total) and associated right-of-way street frontages lying within the Altman Acres Subdivision are filed in the recorder’s office of the County of Sonoma in Book 46 of Maps, Pages 64.
DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 279 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments) DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A 11.a Packet Pg. 280
Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments) DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A 11.a Packet Pg. 281
Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments) DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A 11.a Packet Pg. 282
Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments) DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A 11.a Packet Pg. 283
Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments) DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A 11.a Packet Pg. 284
Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments) DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A 11.a Packet Pg. 285
Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments) DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A 11.a Packet Pg. 286
Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments) DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A 11.a Packet Pg. 287
Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments) DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A 11.a Packet Pg. 288
Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments) DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A 11.a Packet Pg. 289
Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments) DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A 11.a Packet Pg. 290
Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments) DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A 11.a Packet Pg. 291
Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments) DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A 11.a Packet Pg. 292
Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments)
ATTACHMENT C
IMPROVEMENT PLANS
If improvement plans exist, they are filed with the City Clerk. Although separately bound, the improvement plans are part of this Engineer’s Report and are included in it by reference.
DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 293 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments) Note: Only the cost of the improvements within Zone 8 will be charged to Zone 8.
DocuSign Envelope ID: E6FF8DE4-5144-4098-9BDB-62BC68F15D4A
11.a
Packet Pg. 294 Attachment: 2022-2023 LLAD Report (Approve LLAD report and approve assessments) Cotati City Council
Agenda Staff Report
Item type: PUBLIC HEARINGS (ACTION)
To: City Council
Subject: Establishing the Outstanding Backflow Testing Charges and Levying of Assessments
Date: June 28, 2022
Written by: Craig Scott, Director of Public Works/City Engineer Recommendation
It is recommended that the City Council conduct a public hearing to receive all oral and written protests to the amount of Fiscal Year 2021-2022 backflow testing charges and approve a resolution establishing the outstanding backflow testing charges and directing the levying of assessments on the Fiscal Year 22/23 property tax rolls.
Background
The City of Cotati (City) is required by state law to ensure all backflow devices in the water distribution system are tested annually. The City established backflow testing requirements with Ordinance No. 773. This Ordinance established that the testing and associated costs are the responsibility of the property owner and also allowed levying of assessment of outstanding backflow charges onto their property taxes. Under California State law, the City is required to hold a public hearing annually to set the assessment rates for the following year for each outstanding backflow testing charge.
On May 24, 2022, the City Council set a public hearing for June 28, 2022.
Analysis/Discussion
The City notifies all property owners annually of the need for testing and certification of their backflow devices. A portion of the property owners conduct their own testing, and submit the certifications to the City. Other property owners rely on the City to conduct the testing and certification. Following testing, any necessary repairs, and certification, the City invoices the property owner for the cost of the service. Most property owners pay the City in a timely manner. However, some are not responsive to requests for payment. These properties are listed in the attached resolution.
11.C
Packet Pg. 295
Adoption of the attached resolution set the property tax assessment to recover the outstanding backflow testing charges.
Financial Considerations
The costs of back flow testing are expected to be paid by owners of the property for which the testing was performed. These testing charges remain unpaid despite repeated attempts for payment.
Environmental Issues
None.
11.C
Packet Pg. 296
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COTATI ORDERING
THE ESTABLISHMENT OF OUTSTANDING BACKFLOW TESTING CHARGES AND PENALTIES FROM FISCAL YEAR 2021-2022 AND DIRECTING LEVYING OF ASSESSMENTS FOR FY 2022-2023
WHEREAS, Ordinance No. 773 adopted on May 25, 2005 added Chapter 13.20 to the Cotati Municipal Code regarding backflow testing expenses and the requirements for outstanding charges and penalties to be considered a lien upon property; and.
WHEREAS, there has been submitted to the City Council of the City of Cotati an itemized report showing outstanding backflow testing charges, identified below and incorporated herein by reference; and
WHEREAS, on May 24, 2022 the City Council set a public hearing for June 28, 2022 and duly noticed said public hearing; and
WHEREAS, the City Council held a public hearing on June 28, 2022, at which time the City Council duly heard and considered any and all protests, objections, and other comment regarding the backflow testing expenses; and
WHEREAS, the charges and penalties set forth below are not discriminatory or excessive, and are in compliance with law.
NOW, THEREFORE, BE IT RESOLVED by that the City Council of the City of Cotati as follows:
Section 1. The above Recitals are true and correct findings of the City Council and are incorporated herein.
Section 2. The charges and penalties set forth below are hereby confirmed.
Section 3. The charges and penalties set forth below constitute a lien on real property, which lien shall continue until all charges and penalties are fully paid or the property is sold.
Section 4. In addition, when such lien is recorded, the City Clerk is authorized to place the lien on the tax roll of the property, for Fiscal Year 22/23, served by notifying the Sonoma County Assessor/Auditor.
Section 5. The City Manager or his designee is authorized to take such further and other action as may be necessary to implement this Resolution.
Section 6. If any provision, sentence, clause, section or part of this Resolution is found to be invalid or unenforceable, such finding shall not affect or impair any other provision, sentence, Packet Pg. 297
clause, section or part hereof.
Section 7. The parcels with outstanding backflow charges are listed below:
APN Outstanding Charges
046-111-022 125.00
144-760-009 125.00
144-282-014 125.00
144-420-028 125.00
144-770-017 125.00
144-140-002 125.00
144-770-066 125.00
144-440-024 125.00
144-800-003 125.00
144-770-040 125.00
144-770-047 125.00
144-760-027 125.00
144-200-001 125.00
144-010-029 125.00
144-770-019 125.00
144-800-001 125.00
144-262-015 125.00
144-770-054 125.00
144-770-012 125.00
144-770-009 125.00
144-292-027 125.00
144-292-034 125.00
046-640-017 125.00
144-522-006 125.00
144-292-031 125.00
144-292-062 125.00
144-190-021 125.00
144-770-011 125.00
144-770-018 125.00
144-282-012 125.00
046-111-053 455.00
144-070-027 235.00
144-281-026 125.00
144-151-034 125.00
144-010-071 125.00
144-780-051 125.00
144-770-015 125.00
144-292-036 125.00
144-770-049 125.00
Packet Pg. 298
144-770-055 125.00
144-760-035 125.00
144-470-013 125.00
144-292-038 125.00
TOTAL $5,815.00
IT IS HEREBY CERTIFIED that the foregoing resolution was duly adopted at a regular meeting of the City Council of the City of Cotati held on the June 28th, 2022, by the following vote, to wit:
Approved:________________________________
Mayor
Attest:____________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:
____________________________
City Attorney
Packet Pg. 299
Cotati City Council
Agenda Staff Report
Item type: PUBLIC HEARINGS (ACTION)
To: City Council
Subject: Consideration of Objections to Report of Sewer Charges and Penalties Outstanding and Adoption of a Resolution Approving Itemized Report of Sewer Charges and Penalties Outstanding and Directing Levying of Assessments Date: June 28, 2022
Written by: Craig Scott, Director of Public Works/City Engineer Recommendation
It is recommended that the City Council conduct a public hearing to receive all oral and written protests to the amount of Fiscal Year 2021-2022 sewer charges and adopt a resolution approving itemized report of sewer charges and penalties outstanding and directing levying of assessment on the Fiscal Year 22/23 property tax rolls.
Background
The City of Cotati has delinquent account(s) that necessitates the collection through levying of assessment to the property rolls. The Administrative Services department has invoiced the property owner for their sewer charges every 2 months at the same time as all other water/sewer customers in the City. However, the sewer bills have not yet been paid.
On May 24, 2022, the City Council set June 28, 2022 as the date of the public hearing.
Analysis/Discussion
Adoption of the attached resolution will result in the County Assessor assessing the listed properties, in the amounts listed, for outstanding sewer charges and penalties from Fiscal Year 2021-2022.
Financial Considerations
The costs of sewer services are expected to be paid by the assessment. The sewer charges includes a 10% penalty for each delinquent billing, as well as 0.5% interest on the total balance
11.D
Packet Pg. 300
for each month delinquent.
Environmental Issues
None.
11.D
Packet Pg. 301
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COTATI
ESTABLISHING THE DELINQUENT SEWER CHARGES AND PENALTIES FROM FISCAL YEAR 2021-2022 AND DIRECTING LEVYING OF ASSESSMENTS FOR FY 2022-2023
WHEREAS, Chapter 13.43 of the Cotati Municipal Code sets forth the requirements for consideration of outstanding sewer charges and penalties becoming a lien upon property; and WHEREAS, there has been submitted to the City Council of the City of Cotati an itemized report showing delinquent sewer charges, identified below and incorporated herein by reference; and.
WHEREAS, on May 24, 2022, the City Council set a public hearing for June 28, 2022, and duly noticed said public hearing; and
WHEREAS, the City Council has held a public hearing on June 28, 2022, at which time the City Council duly heard and considered any and all protests, objections, and other comment regarding the outstanding sewer charges; and
WHEREAS, the charges and penalties set forth below are not discriminatory or excessive, and are in compliance with law.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cotati as follows:
Section 1. The above Recitals are true and correct findings of the City Council and are incorporated herein.
Section 2. The charges and penalties set forth below are hereby confirmed.
Section 3. The charges and penalties set forth below and incorporated herein by reference, constitute a lien on real property, which lien shall continue until all charges and penalties are fully paid or the property is sold.
Section 4. In addition, when such lien is recorded, the City Clerk is authorized to place the lien on the Fiscal Year 22/23 tax roll of the property, served by notifying the Sonoma County Assessor/Auditor.
Section 5. The City Manager or his designee is authorized to take such further and other action as may be necessary to implement this Resolution.
Section 6. If any provision, sentence, clause, section or part of this Resolution is found to be invalid or unenforceable, such finding shall not affect or impair any other provision, sentence, Packet Pg. 302
clause, section or part hereof.
BE IT FURTHER RESOLVED that the City Council of the City of Cotati does hereby order the City Clerk to send notice of the assessments to properties as listed below to the County Assessor/Auditor.
APN Outstanding Charges
144-230-016 $611.02
Total $611.02
IT IS HEREBY CERTIFIED that the foregoing resolution was duly adopted at a regular meeting of the City Council of the City of Cotati held on the June 28th, 2022, by the following vote, to wit:
Approved:________________________________
Mayor
Attest:____________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:
____________________________
City Attorney
Packet Pg. 303
Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: Recology SB 1383 Franchise Agreement Amendment & Waste Delivery Agreement Amendment
Date: June 28, 2022
Written by: Damien O'Bid, City Manager
Recommendation
It is recommended that the City Council of the City of Cotati adopt a resolution:
1. Authorizing the City Manager to sign the First Amendment to the Franchise Agreement for Collection, Disposal, and Processing of Solid Waste, Recyclables, and Compostable Materials and Related Activities Pursuant to Chapter 8.08 of the Cotati Municipal Code to implement SB 1383 and extend the franchise agreement by 5 years; and
2. Approving the proposed Omnibus Amendment to Waste Delivery Agreement and Franchised Hauler Agreement.
Background
SB 1383
Senate Bill 1383, the Short-lived Climate Pollutant: Organic Waste Methane Emissions Reduction Act of 2016 (SB 1383) required Cal Recycle to develop regulations to reduce organics in landfills as a source of methane by 2030. SB 1383 contains numerous requirements which have already begun to go into effect. The bill, which can be summed up as a requirement to divert food waste from being landfilled, is necessitating operational changes and capital improvements including where solid waste is hauled, expansion and modification of existing facilities, and new programs such as food waste recovery, education, and enforcement. The new regulations required the City to update its municipal code, and compliance will be facilitated by an amendment to the Franchise Agreement between the City and its solid waste hauler, Recology Sonoma Marin (Recology), and the previously approved memorandum of understanding (MOU) with ZWS.
12.A
Packet Pg. 304
On November 23, 2021, City Council adopted the changes to its municipal code for compliance with SB 1383 and approved the MOU with ZWS.
Amendment to the Waste Delivery Agreement
On March 27, 2013, the City Council entered into a franchise agreement with Redwood Empire Disposal, Inc. (RED), for the exclusive right to provide refuse collection, including construction and demolition debris, in the City of Cotati (City). RED was owned by the Ratto Group. On December 23, 2017, Recology Sonoma Marin (Recology) officially purchased Ratto’s assets and took over the remainder of the Franchise Agreement with the City of Cotati. The City’s current Franchise Agreement (Agreement) with Recology expires on June 30, 2023.
The cities of Cotati, Cloverdale, Healdsburg, Rohnert Park, Santa Rosa, and Sebastopol are all party to a Waste Delivery Agreement with Republic (WDA), and a Franchised Hauler Agreement with Republic Services (Republic) and Recology (FHA). Republic and Recology are parties to an Agreement for Operations of Sonoma County Transfer Stations and Materials Recovery Facility (Prime Subcontract), pursuant to which Republic subcontracted to Recology certain of Republic’s obligations under the Amended and Restated Agreement for Operation of the Central Landfill and County Transfer Stations (MOA) between the County of Sonoma and Republic. Historically, Republic Services has been obligated through the Master Operating Agreement (MOA) to provide a Commercial Food Waste program to urban areas, including incorporated areas, as reasonably necessary to meet the diversion goals of the MOA. Republic subcontracts with Recology, to deliver these programs, which are delivered only as cost considerations allow. The MOA and the Prime Subcontract do not require Republic or Recology to perform all duties required by SB 1383 (i.e., route reviews, contamination monitoring, etc.).
Analysis/Discussion
SB 1383
The proposed amendment to the City’s franchise agreement with Recology requires the Citys’ hauler to offer organic service to all customers, perform route reviews, contamination monitoring, noticing, education and outreach, and reporting services. The amendment includes the following scope added to City services:
12.A
Packet Pg. 305
1. Expansion of Three-Container Organic Waste Collection Services a. Organic collection routes are to be expanded to several commercial and multifamily customers. Part of this effort involves new collection trucks and properly labeled and colored waste containers to satisfy the requirements of the SB-1383 regulations.
2. Route Reviews
a. At least once annually, beginning in 2022, Recology must conduct a route review for each route in the City and issue a Notice of Contamination to any customer that has prohibited materials in the organic bins. The notice is a way to correct and educate the users about items that may be in the incorrect bin.
3. Compliance Reviews
a. At least once annually, beginning in 2022, Recology must review the records of its commercial and multi-family customers to determine whether such customers are subscribed for organic collection service or have an applicable waiver and report the results to the City.
4. Education and Outreach
a. Recology must assist in an education program to provide customers the information needed to properly separate their food waste, such as:
i. Information on the requirements to properly separate materials in appropriate containers.
ii. Information on methods for: prevention of organic material generation, recycling organic material on-site, sending organic material to community composting, and any other local requirements regarding organic material. iii. Information regarding the methane reduction benefits of reducing the landfill disposal of organic material and the methods of organic material recovery contemplated by the Agreement.
iv. Information regarding methods for recovering organic material. v. Information related to the public health and safety and environmental impacts associated with landfill disposal of organic material.
5. Reporting
a. Beginning January 1, 2022, Recology must provide the following information to the City as part of the regularly scheduled quarterly reports under the Agreement:
i. Copies of all such information related to education and outreach including the date(s) the outreach activities were conducted as well as the type and number of accounts that received the information.
12.A
Packet Pg. 306
ii. Route and Compliance Review information including descriptions and results of each review.
iii. Documentation relating to observed prohibited container contaminants, whether observed during route reviews or otherwise including copies of Notice of Contamination issued to customers.
In order for Recology to perform these required actions, a special adjustment to the regularly scheduled 2023 rate increase must be adopted to account for the additional annual expenses incurred and capital resources needed by Recology. The special adjustment would increase rates sufficient to cover all costs of the organics collection and diversion program mandated under SB 1383 and would be applied January 1, 2023 in addition to the regularly scheduled annual rate adjustment. The proposed rate increase for these additional services is 6.40%.
Staff and the City’s consultant have reviewed the proposed amendment to the Franchise Agreement between the City and Recology as well as the subsequent rate increase and determined the changes to be justified.
Franchise Term Extension
Staff is also proposing to extend the franchise agreement by 5 years, in accordance with the terms of Section 3.2 of the Franchise agreement. If the City Council approves the extension, Recology has 20 working days to accept. Recology is meeting all of the terms of the Franchise Agreement, except total diversion, but has been working proactively to address this. When Recology assumed the Franchise Agreement from Ratto, diversion numbers were being misreported. Once Recology corrected the numbers, the diversion rate in Q1 2018 was only 33% (50% diversion is the requirement). The latest numbers from Q1 2022 show that diversion is at 47%, and Recology continues to diligently work to improve that.
Lastly, the proposed extension also includes a one-time negotiation reimbursement fee of $15,000 to reimburse the City’s out of pocket expenses. The current state of Recology’s Franchises in the North Bay are detailed in the table below.
12.A
Packet Pg. 307
Amendment to the Waste Delivery Agreement
Senate Bill 1383 (SB 1383) requires changes to the City’s solid waste program. The scale and quality of the programs required by SB 1383 is greater than what the existing agreements contemplated and as such, the City cannot rely exclusively on the MOA-based program to achieve SB 1383 compliance. In lieu of attempting compliance through a patchwork of agreements managed independently by all of the cities, the County, Recology, and Republic have negotiated amendments to the MOA and Prime Subcontract to eliminate the existing commercial food waste program historically delivered by Republic through Recology. Instead, SB 1383 compliant programs will be delivered directly by Recology for the City.
The proposed amendments to the MOA and Prime Subcontract agreements retire the existing commercial food waste/dry waste program and eliminate the associated $4.21/ton gate fee that funds this program. The $4.21/ton rate will instead be funded on the City’s rates and annually reviewed and adjusted via the City’s Refuse Rate Index (RRI) process. This results in a di minimis change in costs. Retirement of the existing program under the MOA will allow all jurisdictions to manage their SB 1383 obligations directly with the haulers through their franchise agreements. In addition, the MOA diversion goal has been adjusted to reflect that commercial food waste and dry commercial diversion will be accomplished through the Agreement with the City.
12.A
Packet Pg. 308
The proposed amendments to the MOA were the subject of extensive negotiations between the County of Sonoma, Republic Services, and Recology. Therefore, any edits by the cities are strongly discouraged.
Financial Considerations
There will be a small increase in franchise revenue to the City’s General Fund due to the increase in Recology rates for 2023. The current Agreement requires Recology to provide garbage service to all City facilities at no cost to the City. The is no fiscal impact to the City of adopting the Omnibus Agreement.
Environmental Issues
SB 1383 will reduce harmful emissions of short-lived climate pollutants. City staff is committed to meeting the requirements of this law at a minimum and will exceed these requirements whenever and wherever possible. This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guideline section 15378.
Attachments:
SB 1383 Solid Waste Franchise Agreement + WDA Presentation (PDF) R3 Review of Agreement Amendments and Rate Adjustment Request (PDF) Attachment 1 - SB 1383 Costs for Year 1 of Implementation (PDF)
12.A
Packet Pg. 309
City Council Meeting
June 28, 2022
SB 1383: Solid Waste
Franchise Agreement
Amendment and Waste
Delivery Agreement
12.A.a
Packet Pg. 310 Attachment: SB 1383 Solid Waste Franchise Agreement + WDA Presentation (SB 1383 Recology SLIDE
1 1. SB 1383 Background
2. Waste System Amendments
3. Resultant Rate Increase
MEETING AGENDA
12.A.a
Packet Pg. 311 Attachment: SB 1383 Solid Waste Franchise Agreement + WDA Presentation (SB 1383 Recology SLIDE
2 Ø Unfunded State mandate
Ø Extensive local government
requirements & requirements on
businesses
Ø Sets Statewide targets for organics
recovery efforts
Ø Builds on AB 1826 to incrementally
reduce disposal of organic waste
Ø Requires ALL generators to be
provided organic waste recycling
services
SB 1383: Short Lived Climate
Pollutants Act
12.A.a
Packet Pg. 312 Attachment: SB 1383 Solid Waste Franchise Agreement + WDA Presentation (SB 1383 Recology SLIDE
3 Provide Organics
Collection to All
Monitor Compliance
and Conduct
Enforcement
Secure Access to Edible and
Recycling Food Recovery
Capacity
Procure Recyclable
and Recovered
Organic Products
Establish Edible
Food Recovery
Program
Conduct Education &
Outreach to
Community
Local Agency Responsibilities
12.A.a
Packet Pg. 313 Attachment: SB 1383 Solid Waste Franchise Agreement + WDA Presentation (SB 1383 Recology SLIDE
4 Waste System Amendments
12.A.a
Packet Pg. 314 Attachment: SB 1383 Solid Waste Franchise Agreement + WDA Presentation (SB 1383 Recology SLIDE
5 Ø Changes to the Master Operating Agreement (MOA)
(County & Republic) Effective 4/1/22
• Existing commercial food waste program offered under existing MOA • Republic to provide commercial food waste program
• Recology to provide to collection in urban areas of each city as reasonably necessary to meet diversion goals
• Program costs not fully compensated through MOA
• Scope of existing food waste program not compliant with SB 1383 • County amended the MOA to consolidate food waste programs • Eliminated food waste program and $4.21/ton gate fee that funded program
• Additional revenue to Recology needed to implement SB 1383 obligations
Waste System Amendments
12.A.a
Packet Pg. 315 Attachment: SB 1383 Solid Waste Franchise Agreement + WDA Presentation (SB 1383 Recology SLIDE
6 Ø Changes to the Waste Delivery Agreement (WDA)
(City & Recology)
• Eliminates food waste and dry commercial mixed waste programs previously offered through MOA
• Results in a reduction of $4.21/ton from the disposal tip fee that funded programs at County facilities
• Allows for food waste route collection efficiencies across jurisdictional boundaries
Waste System Amendments
12.A.a
Packet Pg. 316 Attachment: SB 1383 Solid Waste Franchise Agreement + WDA Presentation (SB 1383 Recology SLIDE
7 Ø Changes to the Collection, Disposal and Processing
Franchise Agreement (City & Recology)
• Phased Implementation of 3-Container Collection Program • Provide service to all customers that currently do not have organic waste collection
• 0.17 additional drivers and collection trucks needed
• Container compliance (colors & labels)
• Route reviews
• Compliance reviews of all customers
• Outreach and education for all generators (tags & mailers) • Reporting to City
• 5-year extension
• Rate Adjustment for additional operating expenses to implement SB 1383 obligations
Waste System Amendments
12.A.a
Packet Pg. 317 Attachment: SB 1383 Solid Waste Franchise Agreement + WDA Presentation (SB 1383 Recology SLIDE
8 Ø 6.4% one-time rate adjustment
Ø Adjustment effective 1/1/2023
Ø Rate adjustment for new SB 1383 services is included in a Draft Franchise Agreement Amendment
Resultant Rate Increase
12.A.a
Packet Pg. 318 Attachment: SB 1383 Solid Waste Franchise Agreement + WDA Presentation (SB 1383 Recology Questions?
12.A.a
Packet Pg. 319 Attachment: SB 1383 Solid Waste Franchise Agreement + WDA Presentation (SB 1383 Recology
FINAL LETTER REPORT
City of Cotati
Submitted electronically: June 6, 2022
Review of Franchise and
Waste Delivery Agreement
Amendments and SB 1383
Rate Adjustment Request
12.A.b
Packet Pg. 320 Attachment: R3 Review of Agreement Amendments and Rate Adjustment Request (SB 1383 Recology Franchise Amend - WDA Amend) 405 14th Street, Suite 350, Oakland, CA 94612 | p 916.782.7821 | f 916.782.7824 | www.r3cgi.com June 6, 2022
Mr. Damien O’Bid, City Manager
City of Cotati
201 West Sierra Avenue, Cotati, CA 94931
submitted via email: [email protected]
SUBJECT: Final Letter Report – Review of Franchise and Waste Delivery Agreement Amendments and SB 1383 Rate Adjustment Request
Dear Mr. O’Bid,
For over ten years, R3 Consulting Group Inc., (R3) has partnered with the City of Cotati (City) for solid waste consulting services, and have been at the forefront as recycling and organics collection services are implemented throughout the City. Senate Bill (SB) 1383, as you know, is the largest change to the waste and recycling industries in 30 years – and with that comes many impacts and challenges for both solid waste haulers and California jurisdictions.
Project Objectives
1. Review Franchise and Waste Delivery Agreement (WDA) Amendments (Amendments) and provide recommended revisions to the Amendments to meet SB 1383 compliance.
2. Review RSM’s SB 1383 rate adjustment request and provide a recommended rate adjustment.
Summary of Findings
Review Franchise and Waste Delivery Agreement Amendments R3 has reviewed the draft Amendments and all recommended changes have been incorporated (as summarized on page 6 of this letter report). R3 recommends approving the agreement amendments.
Review of Recology Sonoma Marin’s (RSM) SB 1383 Rate Adjustment Request R3 has reviewed RSM’s requested rate adjustment for SB 1383 compliance and has found forecasted costs to be reasonable and mathematically accurate. R3 recommends approving RSM’s requested rate adjustment.
* * * * *
We appreciate the opportunity to continue to be of service to the City. Should you have any questions regarding our Letter Report or need any additional information, please do not hesitate to reach out directly.
Sincerely,
Carrie Baxter | Sr. Project Manager Alex Soulard | Sr. Project Analyst R3 Consulting Group, Inc. R3 Consulting Group, Inc.
916.878.7413 | [email protected] 707.888.8693 | [email protected]
12.A.b
Packet Pg. 321 Attachment: R3 Review of Agreement Amendments and Rate Adjustment Request (SB 1383 Recology Franchise Amend - WDA Amend)
TABLE OF CONTENTS
City of Cotati | Review of Agreement Amendments & Rate Adjustment Request – Draft Report TOC
1. Legislation Background
page 1
2. Review of Franchise and Waste
Delivery Agreement Amendments
page 2
3. Review of RSM’s SB 1383 Rate
Adjustment Request
Attachment 1
SB 1383 Projected Costs for Year 1 of Implementation
separate pdf (see email submittal)
12.A.b
Packet Pg. 322 Attachment: R3 Review of Agreement Amendments and Rate Adjustment Request (SB 1383 Recology Franchise Amend - WDA Amend)
1. LEGISLATION BACKGROUND
City of Cotati | Review of Agreement Amendments & Rate Adjustment Request – Draft Report 1 of 10 Assembly Bill (AB) 939 & 32
For over 30 years, California has passed laws and regulations to increase waste diversion while helping the environment. Established in 1989, California’s foundational solid waste law, AB 939, sets program requirements for recycling and established a statewide goal of 50% reduction in landfilled waste by 2000.
This law was followed by AB 32 in 2006, which recognizes solid waste as a contributor to greenhouse gas emissions and set another goal to reduce greenhouse gas levels to 1990 levels by 2020.
AB 341 & 1826
AB 341 Mandatory Commercial Recycling (2012) and AB 1826 Mandatory Commercial Organics Recycling (2014) add waste diversion program participation requirements on commercial and multi-family properties. AB 341 and AB 1826 also increased statewide goals to 75% diversion for recycling and 50% reduction of organic waste by 2020.
Senate Bill (SB) 1383
During the process of decomposition of organic materials, the chemical methane is released into the atmosphere. Methane has been identified as one of the harmful Green House Gases (GHG) (and is 25 times more potent than carbon dioxide over a one-hundred-year period1), and methane from organic decomposition currently accounts for 21% of all methane emissions from the State of California annually.
As a result, in 2016, the legislature passed SB 1383 requiring local governments to provide organics collection to all generators, and all generators to subscribe. It also has specific mandates for solid waste collection container systems, education, and outreach programs, monitoring and contamination reporting, and enforcement of regulations.
On November 3, 2020, CalRecycle received a Notice of Approval of Regulatory Action from the Office of Administrative Law on Senate Bill 1383 (Lara, Chapter 395, Statutes of 2016). The regulations are final and went into effect on January 1, 2022. CalRecycle now has the discretionary authority to start enforcement actions on jurisdictions and other entities for lack of compliance with SB 1383.
Additionally, there is a requirement to increase the recovery of edible food that is currently being landfilled by 20% by 2025. Ultimately, the responsibility of regulation compliance rests largely with each individual jurisdiction, including the City. They impose significant administrative requirements on jurisdictions to implement programs requiring organic waste generators (those who initially create organic waste) to comply with CalRecycle regulations. Local agencies that do not comply with the regulations may face significant penalties or enforcement action imposed by CalRecycle – up to $10,000 per violation per day. 1 https://www.epa.gov/ghgemissions/overview-greenhouse-gases#methane
12.A.b
Packet Pg. 323 Attachment: R3 Review of Agreement Amendments and Rate Adjustment Request (SB 1383 Recology Franchise Amend - WDA Amend)
2. REVIEW OF FRANCHISE AND WASTE
DELIVERY AGREEMENT AMENDMENTS
City of Cotati | Review of Agreement Amendments & Rate Adjustment Request – Draft Report 2 of 10 Solid Waste-Related Agreements
The City of Cotati (City) has entered into an exclusive Franchise Agreement (Agreement) and a Waste Delivery Agreement (WDA) for the collection and handling of solid waste.
These agreements are summarized below and described in more detail within this section:
》 City Exclusive Franchise Agreement
Executed in April 2013, this Agreement specifies exclusive right to provide refuse collection, including construction and demolition debris, within the City. This agreement was originally held by Redwood Empire Disposal, Inc. (RED) and was purchased by Recology Sonoma Marin (RSM) in December 2017.
》 Waste Delivery Agreement
Executed in January 2015, this Agreement specifies that the Franchised Hauler’s costs for a Citywide Commercial Food Waste Collection Program and City-wide Dry Commercial Mixed Waste Program are being fully compensated by the gate rates the Contactor pays for delivery of materials. 》 County Master Operating Agreement
This Agreement is between Sonoma County (County) and Republic Services for the operations of transfer stations and a material recovery facility between RSM and Republic Services of Sonoma County, Inc.
》 SB 1383-Related Amendments (Zero Waste Sonoma MOU)
Executed in November 2021 this Agreement was established to assist in implementation, compliance, education, enforcement, and recordkeeping of SB 1383 regulations.
City Exclusive Franchise Agreement
The City entered into a Franchise Agreement (Agreement) with RED, for the exclusive right to provide refuse collection, including construction and demolition debris within in the City of Cotati, effective April 10, 2013. RED was previously owned by The Ratto Group (TRG). On December 23, 2017, RSM officially purchased TRG’s assets and took over the remainder of the Franchise Agreement with the City.
The City’s current Agreement with RSM expires on June 30, 2023. The Agreement has an option for one, five-year extension that may be offered by the City on or around March 15, 2022.
Of particular importance related to SB 1383, Exhibit A Sections 6 through 10 of the City’s Agreement specifies:
6. Compostable Materials
Contractor shall collect Compostable Materials and Food Scraps as defined in this Franchise agreement for Single-Family residences, Multi-Family Complexes, Mobile Home Park Customers and commercial Customers. With the exception of commercial Food Scrap Collection, Contractor shall not be entitled to additional compensation to provide these services. Contractor shall instruct Single-Family residences, Multi-Family Complexes (individual residents and/or complex managers as appropriate), Mobile Home Park Customers and commercial businesses in the proper preparation of materials and the proper placement of compostable Containers. Contractor shall transport Compostable Materials to a City-approved composting facility or other City-approved Processing Facility for Processing and marketing of the Compostable Materials. The Compostable Materials may not be disposed of at a Disposal Site, Transfer Station, or any other location in lieu of composting or other acceptable Diversion of the material without the
12.A.b
Packet Pg. 324 Attachment: R3 Review of Agreement Amendments and Rate Adjustment Request (SB 1383 Recology Franchise Amend - WDA Amend) Review of Agreement Amendments
City of Cotati | Review of Agreement Amendments & Rate Adjustment Request – Draft Report 3 of 10 expressed written approval of the City. Repeated contamination of Compostable Materials or Food Scraps may result in additional charges or the removal of Carts and/or Bins from the Premises. Contractor shall provide written notification to the property Owner, Occupant, or Customer that they are improperly disposing of material and contaminating the load. The notice shall include educational materials and corrective suggestions and notice that future occurrences shall be subject to contaminated load charges as approved in Exhibit D. All notices shall be in English and Spanish.
Compostable materials and/or food scrap Collection service shall resume when Contractor is assured that contamination of compostable containers is eliminated.
7. Single-Family Compostable Materials
Contractor agrees to collect and deliver to a City-approved Composting Facility, Compostable Materials collected from compostable Containers placed at the curb by each single-family residential Customer. Contractor shall provide scheduled weekly Collection service on the same day as Solid Waste Collection for each Single-Family residence. Single-family Residential Units are eligible to receive up to two (2) Containers for Compostable Materials at no charge. Contractor is entitled to charge for additional cans up to the maximum rate specified in Exhibit D.
8. Multi-Family Compostable Materials
Contractor agrees to collect and deliver to a City-approved Composting Facility, Compostable Materials, collected from compostable Containers from multi-family residential complexes and Mobile Home Park Customers. Material shall be placed in compostable Containers for Collection by Contractor. Customers utilizing Cart service may be required to take Carts to the public roadway for Collection. Multi-family residential complexes are eligible to receive up to two Containers for Compostable Materials at no charge if they provide their own landscape service. Contractor is entitled to charge for additional compostable Containers up to the maximum rate specified in Exhibit D.
9. Commercial Compostable Materials Collection
Contractor agrees to collect and deliver to a City-approved Composting Facility Compostable Materials, excluding Food Scraps, collected from compostable Containers from commercial business Customers. Materials shall be placed in compostable Containers for Collection. Customers utilizing Cart service may be required to take Carts to public roadways for Collection. Commercial business Customers are eligible to receive up to two (2) compostable Containers at no charge if they provide their own landscape service. Contractor is entitled to charge for additional compostable Containers up to the maximum rate specified in Exhibit D. If commercial businesses are utilizing compostable Containers for Food Scraps, Contractor is entitled to charge up to the maximum approved commercial food scrap Collection rate pursuant to Exhibit D.
However, to the extent that the City enters into the proposed twenty (20)-year Waste Delivery Agreement with Republic Services of Sonoma County, Inc., to which Contractor or its affiliates have a beneficial interest, Contractor will not be entitled to charge for additional collection service costs to carry out the enhanced commercial wet-dry routing and residential food scraps collection programs required under the County Operations Agreement, because the cost of such services are already included in the proposed Sonoma County Central Landfill tipping fee structure thereunder.
10. Commercial and Residential Food Scrap Collection
Contractor agrees to develop programs, collection routes and other efforts and activities necessary with the goal of establishing a food scrap program like other Sonoma County cities in a timeframe acceptable to the City. Additionally, free composting bucket ‘giveaways’ shall be held at all City sponsored events held during the first year of this agreement.
12.A.b
Packet Pg. 325 Attachment: R3 Review of Agreement Amendments and Rate Adjustment Request (SB 1383 Recology Franchise Amend - WDA Amend) Review of Agreement Amendments
City of Cotati | Review of Agreement Amendments & Rate Adjustment Request – Draft Report 4 of 10 SB 1383 has changed the requirements for how service is offered to a customer. Prior legislation was enforced through a “Good Faith Effort”; however, SB 1383 now requires jurisdictions to enforce penalties.
This means changing the requirements of these sections of the Agreement from RSM offering service to all customers to now require the service be provided to all customers.
Waste Delivery Agreement (WDA)
Prior to entering into the new Agreement, the City entered into a franchise agreement for a variety of solid waste hauling and other services with Redwood Empire Disposal. That contract was assigned to RSM in November 2017. As part of that assignment, RSM agreed to be bound by the City’s WDA executed in January 2015.
The WDA specifies that the Franchised Hauler’s costs for a City-wide Commercial Food Waste Collection Program and City-wide Dry Commercial Mixed Waste Program are being fully compensated by the gate rates the Contactor pays for delivery of materials. As such, it is our understanding that any related costs are not to be included in RSM’s revenue requirement, which is used to determine the appropriate rate adjustment.
As specified in the WDA, the:
Franchised Hauler shall commence the City-wide collection of Food Waste from commercial Premises in the City when directed to do so by the City. The Franchised Hauler's costs of this program are being fully compensated through the Contractor’s Gate Rates, and Franchised Hauler shall agree by executing this addendum, attached hereto as Exhibit C, not to seek additional compensation from City for the Commercial Food Waste Collection Program for the Term of the Agreement.
RSM is currently collecting food waste from certain commercial accounts within the City, which is required to be provided by AB 1826 (mandatory commercial organics recycling). SB 1383 (Short lived climate pollutants) requires that commercial organics collection, including food waste, be provided to all residential and commercial accounts (i.e., covered generators) with limited exceptions. SB 1383 requires that the City ensures that all covered generators are complying with SB 1383 beginning January 1, 2022.
County Master Operating Agreement (MOA)
The County has a MOA between the County and Republic Services that includes Exhibit I, which is an agreement for the operations of transfer stations and a material recovery facility between TRG and Republic Services of Sonoma County, Inc. The agreement contained in Exhibit I was also assigned to RSM though the assignment of agreements and assets that took place in 2017; therefore, all reference to TRG means RSM.
The MOA, Exhibit I states:
TRG (and its affiliates) will develop and implement commercial Food Waste Collection in urban portions of the Committed Cities. TRG (and its affiliates) shall collect commercial Food Waste in urban portions of Committed Cities in a commercially reasonable manner as reasonably necessary to meet the diversion goals of the Operations Agreement, subject to consideration of the cost of collection against increased diversion.
The Facilities Operations Service Fee includes compensation to TRG for the development and implementation of a dry Waste and commercial Food Waste collection and Processing program.
TRG (and its affiliates) shall maintain their current Source Separated Recyclables Processing for Committed Cities for so long as the Committed Cities direct TRG (and its affiliates) to do so and
12.A.b
Packet Pg. 326 Attachment: R3 Review of Agreement Amendments and Rate Adjustment Request (SB 1383 Recology Franchise Amend - WDA Amend) Review of Agreement Amendments
City of Cotati | Review of Agreement Amendments & Rate Adjustment Request – Draft Report 5 of 10 provide for such operations in the solid waste collection rates charged to TRG’s collection customers.
The MOA states further that:
TRG (and its affiliates) must report the amount of such commercial Source Separated Food Waste Disposed or Processed at each facility designated by Republic. For each Ton of Food Waste delivered by TRG to the Golden Bear Transfer Station or any other facility designed by Republic, TRG shall pay Republic the then current applicable Scale House Fee on a per Ton basis.
For each Ton of commercial Source Separated Food Waste delivered by TRG to Golden Bear Transfer Station, TRG shall receive the Facility Operations Fee and the Transportation Service Fee described in Section 8.5 for deliveries to the Golden Bear Transfer Station.
On May 6, 2021, the County distributed letters addressed to jurisdiction representatives, including the City, that described the County’s proposal to facilitate changes to existing agreements to comply with SB 1383. Within the letter, the County proposed to amend the MOA and Prime Subcontract (MOA, Exhibit I), to consolidate all SB 1383 programs under jurisdiction franchise agreements including the removal of the commercial Food Waste Collection program and the corresponding per ton Facilities Operations Service Fee.
Through the Prime Subcontract (MOA, Exhibit I), RSM is currently receiving a payment of $4.21 per ton from the County-posted solid waste tipping fee to deliver commercial Source Separated Food Waste to an out of County facility. This is to cover the operational expenses (labor, vehicle maintenance and replacement, and fuel) to transport source separated Food Waste to an out of County facility.
The tipping fee, effective April 1, 2022, is $147.08 per ton. The $4.21 per ton portion of the Facilities Operations Service Fee equates to 2.86% of the total disposal fee component adjusted in the City’s annual rate adjustment.
RSM will need to raise the collection rates to fully implement SB 1383 if the $4.21 per ton portion of the Facilities Operations Service Fee are no longer included in the Prime Subcontract (MOA, Exhibit I).
SB 1383 Related Amendments (Zero Waste Sonoma MOU)
Starting in early 2021, all Sonoma County member agencies, including the cities of Cloverdale, Cotati, Healdsburg, Petaluma, Rohnert Park, Santa Rosa, Sebastopol, Sonoma, and Windsor and the County of Sonoma (Member Agencies) began meeting to identify roles and responsibilities to implement SB 1383 regulations.
As a result, Zero Waste Sonoma (ZWS) drafted a MOU to assist in implementation, compliance, education, enforcement, and recordkeeping of SB 1383 regulations.
The MOU was vetted by all Member Agencies and their legal teams, and ultimately approved by ZWS Board of Directors on October 21, 2021. The City entered into the MOU with ZWS on November 23, 2021.
12.A.b
Packet Pg. 327 Attachment: R3 Review of Agreement Amendments and Rate Adjustment Request (SB 1383 Recology Franchise Amend - WDA Amend) Review of Agreement Amendments
City of Cotati | Review of Agreement Amendments & Rate Adjustment Request – Draft Report 6 of 10 Recommended SB 1383-Related Revisions to Franchise
Agreement (RSM Agreement)
RSM provides a three-container collection system to residential customers and are encouraged to place yard and food waste in green carts. Commercial residents are offered four container options: trash/refuse, recyclables, green waste/yard trimmings, and source separated food waste. The City will need to amend the current Exclusive Agreement to meet SB 1383 requirements.
These changes include:
1. Collection Container Colors and Labels
2. Contamination Monitoring / Route Reviews
3. Public Education and Outreach
4. Reporting and Data Tracking
5. Regulation of Processing Facilities Used
Collection Containers
SB 1383 requires a three-container collection system, such as the City’s collection system, to comply with the following container color and labeling requirements:
》 Colors
A body or lid that is gray or black for garbage, blue for recycling, and green for organics. If an additional container is offered for collection of source-separated food waste, the container body or lid shall be brown. Functional containers, including containers purchased prior to January 1, 2022, that do not comply with the requirements of the subsection are not required to be replaced prior to the end of the useful life of those containers, or prior to January 1, 2036, whichever comes first. 》 Labels
Container labels that include language or graphic images, or both, indicating the primary material accepted and the primary materials prohibited in that container, or containers with imprinted text or graphic images that indicate the primary materials accepted and primary materials prohibited in the container. Pursuant to 14 CCR Section 18984.8, the container labeling requirements are required on new containers commencing January 1, 2022.
Recommended Amendment
R3 recommends including these requirements in the Exclusive Franchise Agreement with RSM.
Contamination Monitoring
SB 1383 requires the City, or its designated representative (i.e., RSM), to implement one of the two following container contamination minimization monitoring options beginning April 1, 2022:
》 Perform waste evaluations to assess container contamination for all three waste streams. - or -
》 Conduct annual route reviews of all hauler routes to assess container contamination for all three waste streams.
Recommended Amendment
R3 recommends the route review method of container contamination monitoring. To conduct this method, at a minimum, the City will need to compare the number of container audits covering 0.5% of collection containers across all hauler routes and the number of container audits. The City may then pursue the
12.A.b
Packet Pg. 328 Attachment: R3 Review of Agreement Amendments and Rate Adjustment Request (SB 1383 Recology Franchise Amend - WDA Amend) Review of Agreement Amendments
City of Cotati | Review of Agreement Amendments & Rate Adjustment Request – Draft Report 7 of 10 sampling plan methodology that results in the fewest number of container audits and therefore lowest associated cost. Route review container audits may be completed by visual inspections or remote monitoring. Education and outreach must be provided in response to observation of contamination.
Public Education and Outreach
Beginning no later than February 1, 2022, the City, or its designated representative (i.e., RSM), must annually distribute education and outreach to all organic waste generators that includes the following information:
》 Information on organic waste generator requirements to properly separate materials in appropriate containers and provide labeling and education to employees and tenants on the requirements. 》 Methods for prevention of organic waste and recycling organic waste on site. 》 Community composting and any other local requirements. 》 Information on methane reduction benefits.
》 List of approved haulers and how to recycle.
》 Public health and safety and environmental impacts.
》 Information for edible food recovery programs.
》 Details about the edible food recovery program.
》 Any self-haul requirements.
The City must also distribute education and outreach to Tier 1 and Tier 2 commercial edible food generators by February 1 of each year.
Edible food recovery outreach must include the following information:
》 Details of the Edible Food Recovery Program.
》 Requirements for edible food generators.
》 Available food recovery agencies and the location of the list on the City’s website. 》 Actions to prevent the creation food waste.
Education and outreach may be distributed by print or digital media and may be combined with regularly scheduled outreach and education. If a substantial portion of the population does not speak the English language, the City must translate all outreach materials. The City must keep copies of outreach collateral, lists of recipients and dates of distribution in the required Implementation Record.
The current Exclusive Agreement requires RSM to conduct public education to the community. Exhibit A, Section 21 of the Agreement outlines RSM’s requirements to produce and distribute useful educational materials and perform ongoing public education and outreach for both English and Spanish speaking customers. The City and RSM must update outreach and education materials to meet the required contents as specified by SB 1383.
Recommended Amendment
R3 recommends an update to the City and RSM’s webpage to host all of the required outreach information including details about generator requirements and waivers, the edible food recovery program, methods of waste prevention, the benefits of organic waste diversion, and any self-haul requirements.
R3 recommends RSM provide printed and digital outreach materials related to operational and service requirements (e.g., waivers and sorting requirements) and reference the webpages for more information related to SB 1383 compliance. The City must also determine if additional translation of outreach materials is necessary.
12.A.b
Packet Pg. 329 Attachment: R3 Review of Agreement Amendments and Rate Adjustment Request (SB 1383 Recology Franchise Amend - WDA Amend) Review of Agreement Amendments
City of Cotati | Review of Agreement Amendments & Rate Adjustment Request – Draft Report 8 of 10 Reporting and Data Tracking
There are several reporting and data tracking requirements associated with SB 1383 regulations. The current Exclusive Agreement has minimal reporting requirements.
Recommended Amendment
At a minimum, an amended agreement should incorporate reporting that provides:
》 The type of compostable material collection service(s) provided to the generators. 》 The total number of generators that receive each type of compostable material collection service provided.
》 The Recycling and Disposal Reporting System number of each facility receiving compostable material from RSM.
》 The number of route reviews conducted for prohibited container contaminants. 》 The number of times notices, violations, or targeted education materials were issued to generators for prohibited container contaminants.
》 Results of waste evaluations performed to meet the container contamination minimization requirements and the number of resulting targeted route reviews. 》 The number of compostable material generators and edible food generators that received information and the type of education and outreach used.
Regulation of Processing Facilities Used
SB 1383 allows the City to provide compliant collection service through designated haulers and a selfhauling program. Designated haulers, including franchise haulers, must seek written approval from the City for the organics processing facilities they intend to use.
Per SB 1383, the City must approve RSM’s facility in writing. The current Exclusive Agreement requires RSM to use Disposal Sites designated by the City, but does not place a requirement to use a processing facility designated by the City.
Recommendation
An amended agreement should allow the City to approve facility use for processing and disposal sites.
Findings and Recommendations
R3 has reviewed the draft Amendments and all recommended changes have been incorporated into the appropriate documents. R3 recommends approving the agreement amendments.
12.A.b
Packet Pg. 330 Attachment: R3 Review of Agreement Amendments and Rate Adjustment Request (SB 1383 Recology Franchise Amend - WDA Amend)
3. REVIEW OF RSM’S SB 1383 RATE
ADJUSTMENT REQUEST
City of Cotati | Review of Agreement Amendments & Rate Adjustment Request – Draft Report 9 of 10 RSM submitted a request to adjust current customer rates an additional 6.4%, effective January 1, 2023, to cover the additional capital resources and expenses associated with providing SB 1383 compliant collection services within the City.
The proposed adjustments include purchase of additional bins and carts and a shared cost for trucks to provide service to those additional bins and carts for commercial customers that do not currently subscribe to organic waste but are now required to subscribe to service. It also includes additional annual operational expenses to provide the five recommended agreement amendments.
These operational expenses include:
》 Capital Costs
》 Labor
》 Processing Fees for Organic Materials
》 Outreach Materials to Address Contamination Issues
》 Incremental Cost of Current Food Waste Program
(Less the Revenue Generated from The $4.21 Facilities Operations Service Fee) As a result of the 6.4% customer rate adjustment, the City would receive approximately $25,000 in additional franchise fees annually.
Adjustment Request Analysis
R3 has analyzed cost components of RSM’s request (Attachment 1) and has confirmed cost proposals for the components of SB 1383 Implementation.
Capital Costs
Amortized Capital Costs are valued at $13,025 annually and are being used to purchase:
》 17 new 2-yard compost bins
》 55 new 96-Gallon organics carts with new labeling
》 0.05 Front Load Compost Collection Truck
》 0.12 Side Load Compost Collection Truck
These costs total $82,680 and are amortized over 10 years, which corresponds with the $13,025 annual cost. These costs are reasonable assumptions needed as part of the SB1383 implementation.
Additional fuel costs of $14,973 for the additional partial front load and side load Compost Collection vehicles being operated have been evaluated and are reasonable at the utilization rates stated for those collection vehicles.
Labor
R3 agrees that addition of 0.17 driver position is a reasonable addition to the agreement to cover additional collections of organic materials. The proposed driver cost of $30,116 includes administrative expenses and profit margin which are acceptable expenses.
12.A.b
Packet Pg. 331 Attachment: R3 Review of Agreement Amendments and Rate Adjustment Request (SB 1383 Recology Franchise Amend - WDA Amend) Review of Rate Adjustment Request
City of Cotati | Review of Agreement Amendments & Rate Adjustment Request – Draft Report 10 of 10 Processing Fees for Organic Materials
Commercial compost tip fee (per year) – incremental tonnage only - this $12,276 additional cost assumes that organic waste will be moving from the garbage stream and into the organics waste stream. This additional food and yard waste will be processed as organic waste instead of as garbage.
The added cost for processing assumes that an estimated 50% of organic tonnage will be removed from the Municipal Solid Waste Stream.
Outreach Materials to Address Contamination
R3 has analyzed the additional outreach cost for 400 contamination mailers and 400 contamination tags.
The costs are reasonable at a total of $408 for both items.
A Zero Waste Specialist Position is already included in the Franchise Agreement with RSM and requires no additional funding.
Incremental Cost of Current Food Waste Program
(Less the Revenue Generated from the $4.21 Facilities Operations Service Fee) The incremental cost of the current food waste collection program has a proposed cost of $76,554. This represents the total costs of the current food waste program less the revenue generated from the MOA fee added to the tip fee.
Following City approval of the MOA, this fee will be removed on January 1, 2023, and the tip fee will be reduced by the same amount through the regular rate adjustment process. Prior to January 1, 2023, current rates will remain effective to ensure continued receipt of the revenue provided for the current food waste collection program.
However, when RSM assumed the contract from RED, the City held their cost to the gate rate and did not incur the full cost of food waste tip fees. This new figure of $76,554 removes any cost assumptions with the food waste collection program and recovers these cost directly from the franchise rates.
Findings and Recommendations
R3 has reviewed RSM’s requested rate adjustment for SB 1383 compliance and has found forecasted costs to be reasonable and mathematically accurate. R3 recommends approving RMS’s requested rate adjustment.
12.A.b
Packet Pg. 332 Attachment: R3 Review of Agreement Amendments and Rate Adjustment Request (SB 1383 Recology Franchise Amend - WDA Amend) Attachment 1
SB 1383 Projected Costs for Year 1 of Implementation
City of Cotati
Increase to be applied January 1, 2023*
Additional Annual Expenses Quantity Total Cost $
Amortized Capital Costs - 10 years -See spending detail below $ 13,025 FTE Driver(s) 0.17 30,116
Commercial compost tip fees (per year)-Incremental tonnage only** 12,276 Compost collection truck fuel (per year) 14,973
Contamination mailers + postage (per year) $.40 each 400 204 Contamination tags (per year) $.40 each 400 204
FTE Waste Zero Specialist(s) (salary = $60k, full compensation = $90k) 25% N/A (FA covers this) Incr. Cost of Curr. Comm'l FW Program*** 76,554
$147,354
24,588
$171,941
$2,683,934
6.4%
* Note 2021 costs as a % of 2021 revenues provides % increase to be applied on 1/1/2023 in addition to RRI. ** Assumes 50% of organic tonnage diverted from current MSW stream.
Capital Resources Quantity Total Cost $
2yd. compost bins w/ labels 17 $ 14,110
96 gallon compost carts w/ labels 55 4,510
Additional FL compost collection trucks 0.05 19,300
Additional SL compost collection trucks 0.12 44,760
$ 82,680
***Incremental Cost of Current Food Waste Program represents the total costs of the current FW program less the revenue generated from the MOA fee added to the tip fee.
Note: When the MOA fee is removed, the tip fee will be reduced by the same amount. Current rates will remain effective based on the lower tip fee to ensure continued receipt of the revenue provided for the current FW program. ***** Amortization assumes 4% interest rate, plus administrative costs and profit.
TOTAL COSTS
City Fees
TOTAL REQUIRED REVENUE
Capital Costs (Amortized Above)*****
Annual Revenue for 2021
SB 1383 2021 Costs % of 2021 Revenue
12.A.c
Packet Pg. 333 Attachment: Attachment 1 - SB 1383 Costs for Year 1 of Implementation (SB 1383 Recology Franchise Amend - WDA Amend) RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COTATI APPROVING
AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE FIRST
AMENDMENT TO THE FRANCHISE AGREEMENT FOR COLLECTION, DISPOSAL,
AND PROCESSING OF SOLID WASTE, RECYCLABLES, AND COMPOSTABLE MATERIALS AND RELATED ACTIVITIES, INCLUDING A 5 YEAR EXTENSION
WITH RECOLOGY AND THE OMNIBUS AMENDMENT TO WASTE DELIVERY
AGREEMENT AND FRANCHISED HAULER AGREEMENT
WHEREAS, Senate Bill 1383, the Short-lived Climate Pollutant: Organic Waste Methane Emissions Reduction Act of 2016 (SB 1383) required CalRecycle to develop regulations to reduce organics in landfills as a source of methane by 2030; and WHEREAS, SB 1383 generally requires the diversion of food waste from the landfill to reduce future methane emissions; and
WHEREAS, SB 1383 requires operational changes and capital improvements, including where solid waste is hauled, expansion and modification of existing facilities, and new programs such as food waste recovery, education, and enforcement; and WHEREAS, the new regulations required the City to update its municipal code achieve compliance through an amendment to the Franchise Agreement between the City and its solid waste hauler, Recology Sonoma Marin (Recology), and memorandum of understanding (MOU) with ZWS; and
WHEREAS, on November 23, 2021, City Council adopted the changes to its municipal code for compliance with SB 1383 and approved the MOU with ZWS; and WEHREAS, the cities of Cotati, Cloverdale, Healdsburg, Rohnert Park, Santa Rosa, and Sebastopol are all party to a Waste Delivery Agreement with Republic (WDA), and a Franchised Hauler Agreement with Republic Services (Republic) and Recology (FHA); and WHEREAS, Republic and Recology are parties to an Agreement for Operations of Sonoma County Transfer Stations and Materials Recovery Facility (Prime Subcontract), pursuant to which Republic subcontracted to Recology certain of Republic’s obligations under the Amended and Restated Agreement for Operation of the Central Landfill and County Transfer Stations (MOA) between the County of Sonoma and Republic; and WHEREAS, historically, Republic Services has been obligated through the Master Operating Agreement (MOA) to provide a Commercial Food Waste program to urban areas, including incorporated areas, as reasonably necessary to meet the diversion goals of the MOA; and
WHEREAS, Republic subcontracts with Recology, to deliver these programs, which are Packet Pg. 334
delivered only as cost considerations allow; and
WHEREAS, the MOA and the Prime Subcontract do not require Republic or Recology to perform all duties required by SB 1383 (i.e., route reviews, contamination monitoring, etc.); and
WHEREAS, the Franchise Agreement expires on June 30, 2023, and Section 3.2 of the Franchise Agreement allows one 5-year extension to June 30, 2028, provided that Recology has meet the performance standards; and
WHEREAS, Recology has meet all of the Franchise Agreement performance standards, except diversion requirements (currently at 47% in Q1 2022), but is proactively working to achieve the required target of 50% diversion; and
WHEREAS, SB 1383 will reduce harmful emissions of short-lived climate pollutants and the action of adopting a franchise agreement amendment and waste delivery agreement amendment to implement SB 1383 does not constitute a project as defined by California Environmental Quality Act Guidelines Section 15378; therefore, no further environmental review is required.
NOW THEREFORE BE IT RESOLVED THAT the City Council of the City of Cotati does hereby:
1. Find these recitals to be true and correct.
2. Approve the First Amendment to the Franchise Agreement for Collection, Disposal, and Processing of Solid Waste, Recyclables, and Compostable Materials and Related Activities and the Omnibus Amendment to Waste Delivery Agreement and Franchised Hauler Agreement.
3. Authorize the City Manager to execute the First Amendment to the Franchise Agreement for Collection, Disposal, and Processing of Solid Waste, Recyclables, and Compostable Materials and Related Activities with Recology to implement the provisions of SB 1383 and extend the Franchise Agreement until June 30, 2028 (Attachment 1).
4. Authorize the City Manager to execute the Omnibus Amendment to Waste Delivery Agreement and Franchised Hauler Agreement (Attachment 2).
IT IS HEREBY CERTIFIED that the foregoing resolution was duly adopted at a regular meeting of the City Council of the City of Cotati held on the June 28th, 2022, by the following vote, to wit:
Approved:________________________________
Mayor
Attest:____________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:
Packet Pg. 335
____________________________
City Attorney
Attachments:
Attachment 1 - Recology Franchise Agreement Amendment - SB 1383 (DOCX) Attachment 2 - WDA-FHA Amendment (DOCX)
Packet Pg. 336
1 FIRST AMENDMENT FRANCHISE AGREEMENT FOR COLLECTION, DISPOSAL, AND
PROCESSING OF SOLID WASTE, RECYCLABLES, AND COMPOSTABLE MATERIALS AND RELATED ACTIVITIES PURSUANT TO CHAPTER 8.08 OF THE
COTATI MUNICIPAL CODE
This First Amendment to Franchise Agreement for Collection, Disposal, and Processing of Solid Waste, Recyclables, and Compostable Materials and Related Activities Pursuant to Chapter 8.08 of the Cotati Municipal Code (this “Amendment”) is entered into as of June 28, 2022 between the City of Cotati (“City”) and Recology Sonoma Marin (“Recology”).
WHEREAS, City and Recology are parties to a Franchise Agreement for Collection, Disposal, and Processing of Solid Waste, Recyclables, and Compostable Materials and Related Activities Pursuant to Chapter 8.08 of the Cotati Municipal Code, dated April 10, 2013 (such agreement as amended, the “Agreement” or “Franchise Agreement”);
WHEREAS, the parties wish to amend the Agreement to assist City in complying with the SB 1383 Regulations (as defined in Exhibit A);
WHEREAS, over the next year, the parties intend to continue discussions regarding additional mutually agreed changes to the Franchise Agreement;
WHEREAS, City intends to implement a 3-container Organic Waste collection service as contemplated by Section 18984.1 of the SB 1383 Regulations.
NOW, THEREFORE, the parties agree as follows:
1. Effective Date. This Amendment shall take effect April 1, 2022.
2. Purpose; Term Extension. This Amendment is intended to amend the Franchise Agreement to provide services relating to the SB 1383 Regulations and to extend the Franchise term.
The parties hereby agree to a five (5) year term extension to the Franchise Agreement, continuing through June 30, 2028. To that end, Section 1.32 (“Franchise term”) of the Franchise Agreement, and the first paragraph of Section 3.2 (“Term”) of the Franchise Agreement, are each hereby amended to replace “2023” with “2028.” In addition, Contractor shall pay a negotiation reimbursement fee in a one-time lump sum payment of fifteen thousand dollars ($15,000) to reimburse the City for out-of-pocket costs it incurred in connection with negotiating this Amendment, payable within 30 days of execution of this amendment.
3. Definitions. The Franchise Agreement is hereby amended to add the terms set forth in Exhibit A of this Amendment. For purposes of this Amendment only, the terms set forth in Exhibit A, attached hereto and incorporated herein, shall have the meanings given to them in such exhibit.
4. Three-Container Organic Waste Collection Services.
The Franchise Agreement is hereby amended to add the following to Exhibit A (6):
4.1. Phased Implementation. City and Contractor acknowledge that Contractor’s Organic Waste Collection routes must be expanded to satisfy the requirements of the SB 1383 Regulations, and that new collection trucks must be procured by Contractor in order to provide such services. Between January 1, 2022 and December 31, 2023, Contractor
12.a
Packet Pg. 337 Attachment: Attachment 1 - Recology Franchise Agreement Amendment - SB 1383 (SB 1383 Recology Franchise Amend - WDA Amend Reso) 2 shall continue and expand its existing Organic Waste collection service within City. By January 1, 2024, Contractor shall provide Organic Waste collection service to all of its customers within City who are subscribed to and pay for Solid Waste collection service, unless (i) the customer is not required under City’s municipal code to subscribe for Organic Waste collection service, or (ii) the customer qualifies for a State- or locallyissued waiver, or (iii) the customer refuses to accept such service.
5. Containers.
The Franchise Agreement is hereby amended to add the following to Exhibit B (2):
5.1. Container Color. Contractor shall ensure that each Container that it newly purchases after January 1, 2022 and provides to a customer serviced under the Agreement conforms to the following color scheme: Gray Containers for collection of Solid Waste, Blue Containers for collection of Recyclable Materials, and Green Containers for collection of Organic Waste. In addition, Contractor shall ensure that all Containers it uses to provide such services to customers serviced under the Agreement conform to such color scheme by January 1, 2036.
5.2. Container Labels. Contractor shall ensure beginning January 1, 2022 that each new Container (or new Container lid) that it provides to a customer serviced under the Agreement shall be labeled or imprinted with language and/or graphics that clearly indicates the primary items accepted and the primary items that are Prohibited Container Contaminants for that Container type. Contractor may comply with this section by using model labeling provided by CalRecycle.
6. Route Reviews.
The Franchise Agreement is hereby amended to add the following to Exhibit B:
6.1. General Requirement. At least once annually, beginning in 2022, Contractor shall conduct a Route Review for each Hauler Route. For each Route Review of a Hauler Route, Contractor shall inspect at least the following minimum number of Containers, but may inspect more if Contractor wishes. Each inspection shall involve lifting the Container lid and observing the contents, including illuminating them if necessary, but shall not require Contractor to disturb the contents or open any bags. Contractor may select the Containers to be inspected at random, or (if mutually agreed with City) by any other method not prohibited under the SB 1383 Regulations. For the avoidance of doubt, Contractor shall not be required to annually inspect every Container on a Hauler Route.
Contractor shall include the results of each Route Review in its next regularly scheduled report to City, as required by Section 9 of this Amendment. The parties agree that if there are a significant number of violations that Contractor may increase the minimum number of containers inspected, if mutually agreed to by City and Contractor.
Route Size (# accounts) Minimum Number of Containers
Less than 1,500 25
1,500-3,999 30
4,000-6,999 35
7,000 or more 40
12.a
Packet Pg. 338 Attachment: Attachment 1 - Recology Franchise Agreement Amendment - SB 1383 (SB 1383 Recology Franchise Amend - WDA Amend Reso) 3 6.2. Notice of Contamination. If Contractor finds Prohibited Container Contaminants in a Container during a Route Review, Contractor shall notify the customer of the violation in writing. The written notice shall include information regarding the customer’s requirement to properly separate materials into the appropriate Containers. The notice may be left on the customer’s Container, gate, or door at the time the violation is discovered, and/or be mailed, e-mailed, electronically messaged or delivered personally to the customer.
Contractor may dispose of the contents of any Container found to contain Prohibited Container Contaminants. The notice shall be provided in English and Spanish.
7. Compliance Reviews.
The Franchise Agreement is hereby amended to add the following to Exhibit B:
7.1. General Requirement. At least once annually, beginning in 2022, Contractor shall review the records of its Commercial and Multi-Family customers in City that are subscribed for at least two (2) cubic yards per week of combined Solid Waste, Organic Waste and Recyclable Materials service, to determine whether such customers are subscribed for Organic Waste collection service or have an applicable waiver. Contractor shall include the results of each compliance review in its next regularly scheduled report to City, as required by Section 9 of this Amendment.
8. Education & Outreach.
The Franchise Agreement is hereby amended to add the following to Exhibit A (21):
8.1. Prior to February 1, 2022, and annually thereafter, Contractor shall provide the following information to all its customers under the Agreement.
8.1.1. Information on the Organic Waste customer’s requirements to properly separate materials in appropriate containers.
8.1.2. Information on methods for: the prevention of Organic Waste generation, recycling Organic Waste on-site, sending Organic Waste to community composting, and any other local requirements regarding Organic Waste.
8.1.3. Information regarding the methane reduction benefits of reducing the landfill disposal of Organic Waste, and the methods of Organic Waste recovery contemplated by the Agreement.
8.1.4. Information regarding how to recover Organic Waste.
8.1.5. Information related to the public health and safety and environmental impacts associated with the landfill disposal of Organic Waste.
8.2. The above information will be provided, at a minimum, through print and/or electronic media, and may also be provided through workshops, meetings and/or on-site visits.
8.3. Educational materials provided pursuant to the above shall be translated into Spanish.
9. Reporting.
12.a
Packet Pg. 339 Attachment: Attachment 1 - Recology Franchise Agreement Amendment - SB 1383 (SB 1383 Recology Franchise Amend - WDA Amend Reso) 4 The Franchise Agreement is hereby amended to add the following to Section 8.2.3:
9.1. Beginning January 1, 2022, Contractor shall provide the following information to City as part of Contractor’s regularly scheduled quarterly reports under the Agreement:
9.1.1. For information provided by Contractor pursuant to Section 8 of this Amendment:
(a) Copies of all such information (including flyers, brochures, newsletters, invoice messaging, website and social media postings, emails, and other electronic messages).
(b) The date the information was disseminated or the direct contact made. For website and social media postings, this shall be the date posted. (c) To whom the information was disseminated or the direct contact made. For mass distributions such as mailings or bill inserts, Contractor may provide the type and number of accounts receiving the information, rather than listing each recipient individually.
9.1.2. For Route Reviews and Compliance Reviews:
(a) The date the review was conducted.
(b) The name and title of each person conducting the review. (c) A list of the account names and addresses covered by the review. (d) For Route Reviews, a description of each Hauler Route reviewed, including Contractor’s route number and a description of the Hauler Route area. (e) For Route Reviews, the results of such review (i.e. the addresses where any Prohibited Container Contaminants were found), and any photographs taken. (f) For Compliance Reviews, the results of such review (i.e. Contractor’s findings as to whether the customers reviewed are subscribed for Organic Waste collection service, have an applicable waiver, or neither), and any relevant evidence supporting such findings (e.g. account records). (g) Copies of any educational materials issued pursuant to such reviews.
9.1.3. Documentation relating to observed Prohibited Container Contaminants, whether observed during Route Reviews or otherwise:
(a) Copies of the form of each notice issued to generators for Prohibited Container Contaminants, as well as, for each such form, a list of the customers to which such notice was issued, the date of issuance, the customer’s name and service address, and the reason for issuance (if the form is used for multiple reasons).
This information will also be provided monthly to Zero Waste Sonoma if City requests.
(b) The number of times notices were issued to customers for Prohibited Container Contaminants.
12.a
Packet Pg. 340 Attachment: Attachment 1 - Recology Franchise Agreement Amendment - SB 1383 (SB 1383 Recology Franchise Amend - WDA Amend Reso) 5 (c) The number of Containers where the contents were disposed due to observation of Prohibited Container Contaminants.
9.1.4. A description of Contractor’s process for determining the level of Container contamination under the Agreement.
10. Rate Adjustments. Effective January 1, 2023, each rate set forth in Exhibit D (Maximum Rates) of the Agreement shall be adjusted as follows:
10.1. The Collection Element of each rate that has such an element shall be increased by 6.4%, over and above the adjustment required by Section 6.2.1(1) of the Agreement or otherwise under the Agreement; and
10.2. The Disposal Element of each rate that has such an element shall be increased by
9.26% (= 6.4% + 2.86%), over and above the adjustment required by Section 6.2.1(2) of the Agreement or otherwise under the Agreement.
10.3. The Organics Element of each rate that has such an element shall be increased by 6.4%, over and above the adjustment required by Section 6.2.1(2) of the Agreement or otherwise under the Agreement.
10.4. Rates that do not have any Collection/Disposal/Organics Elements shall be increased by 6.4%, over and above any adjustment required by the Agreement.
For example, assuming that: (i) as of December 31, 2022 a given rate is $30.00 per month, (ii) the rate consists of a $15.00 Collection Element, a $12.00 Disposal Element, and a $3.00 Organics Element, (iii) the change in the CPI index for the year ending June 30, 2022 is 3.0%, (iv) the change in the per-ton tip Disposal fee at the County facilities for the year ending December 31, 2022 is 5.0%, (v) the change in the per-ton Organics tip fee at the County facilities for the year ending December 31, 2022 is 4.0%, and (vi) no other rate adjustments are applicable (e.g. due to a change in City fees), then effective January 1, 2023, the rate in question would be $33.30, calculated as follows:
$33.30 = $15.00 * { 1 + [ ( 0.70 * 0.03 ) + 0.064 ] } + $12.00 * { 1 + [ 0.05 + 0.0286 + 0.064] } + $3.00 * { 1 + [ 0.04 + 0.064] }
11. Section 18988.1 and 18988.2 Compliance.
The Franchise Agreement is hereby amended to add the following to Exhibit I:
Contractor has identified Organic Waste collected pursuant to the Agreement is currently being delivered to the following facility(ies) either directly or after transfer at County facilities:
Waste Management EarthCare Compost in Novato; Cold Creek Compost in Ukiah; West Contra Costa Landfill Composting Facility in Richmond. City hereby approves delivery of Organic Waste to such facility(ies). Contractor shall comply with its obligations under this Amendment and the obligations that by operation of law are imposed upon it directly pursuant to Chapter 12 of the SB 1383 Regulations.
12. Future Changes. The parties acknowledge that future changes to this Amendment or the Agreement may be desirable to assist the parties with their respective compliance obligations under the SB 1383 Regulations or subsequent amendments thereto or interpretations thereof.
12.a
Packet Pg. 341 Attachment: Attachment 1 - Recology Franchise Agreement Amendment - SB 1383 (SB 1383 Recology Franchise Amend - WDA Amend Reso) 6 The parties agree to negotiate any such proposed changes in good faith. The foregoing shall not be deemed to limit either party’s rights or remedies under the Agreement.
13. Miscellaneous. In the event of any conflict between this Amendment and the Agreement, this Amendment shall govern. Section headings in this Amendment are for convenience only and shall not be used in the interpretation of this Amendment. This Amendment may be executed in counterparts and/or by electronic signature (e.g. DocuSign). As used in this Amendment, “including” and its variants mean “including without limitation.” [Remainder of this page intentionally left blank]
12.a
Packet Pg. 342 Attachment: Attachment 1 - Recology Franchise Agreement Amendment - SB 1383 (SB 1383 Recology Franchise Amend - WDA Amend Reso) 7 IN WITNESS WHEREOF, this Amendment is entered into as of the date first written above.
City of Cotati
By:
Name:
Title:
Date:____________________________
APPROVED AS TO FORM:
________________________________
City Attorney
ATTEST:
________________________________
City Clerk
Recology Sonoma Marin
By:
Name: Salvatore M. Coniglio
Title: Chief Executive Officer
Date:____________________________
12.a
Packet Pg. 343 Attachment: Attachment 1 - Recology Franchise Agreement Amendment - SB 1383 (SB 1383 Recology Franchise Amend - WDA Amend Reso) 8 Exhibit A
DEFINITIONS
“Blue Container” means a Container colored as follows: (a) the lid shall be blue, or (b) the body shall be blue and the lid shall be either blue, gray, or black. Hardware such as hinges and wheels may be any color.
“Container” means any Cart, Bin or Debris Box.
“Gray Container” means a Container colored as follows: (a) the lid shall be gray or black, or (b) the body shall be gray or black and the lid shall be gray or black. Hardware such as hinges and wheels may be any color.
“Green Container” means a Container colored as follows: (a) the lid shall be green, or (b) the body shall be green and the lid shall be green, gray, or black. Hardware such as hinges and wheels may be any color.
“Hauler Route” means the designated weekly itinerary or sequence of stops scheduled to be performed by one collection vehicle providing regularly scheduled Solid Waste, Recyclable Material or Organic Waste collection services (not on-call or Bulky Item/Abandoned Waste) within the Contractor’s collection service area under the Agreement. “Organic Waste” means wastes containing material originated from living organisms and their metabolic waste products, including, but not limited to, food, green material, landscape and pruning waste, organic textiles and carpets, lumber, wood, paper products, printing and writing paper, manure, biosolids, digestate, and sludges.
“Prohibited Container Contaminants” means any of the following:
(a) Non-Organic Waste placed in the Green Container, including but not limited to Construction & Demolition Debris, Hazardous Substances and Infectious Waste; (b) The following types of Organic Waste placed in the Green Container: textiles and carpets, hazardous wood waste, manure, biosolids, digestate, sludges, non-compostable paper, and any individual item of Organic Waste exceeding 6” in diameter or 4’ in length; (c) Organic Waste placed in the Gray Container that is specifically identified under the Agreement for collection in the Green Container or Blue Container; (d) Organic Waste placed in the Blue Container that is specifically identified under the Agreement for collection in the Green Container. Paper products and printing and writing paper may be considered acceptable and not considered Prohibited Container Contaminants if they are placed in the Blue Container.
“Route Review” means a visual inspection of Containers along a Hauler Route for the purpose of identifying Prohibited Container Contaminants, which may include mechanical inspection methods such as use of cameras.
12.a
Packet Pg. 344 Attachment: Attachment 1 - Recology Franchise Agreement Amendment - SB 1383 (SB 1383 Recology Franchise Amend - WDA Amend Reso) 9 “SB 1383 Regulations” means the Short-lived Climate Pollutants (SLCP): Organic Waste Reductions regulations adopted by the California Department of Resources Recycling and Recovery (“CalRecycle”) in 2020.
For purposes of this Amendment, the following terms (whether or not capitalized) shall have the meanings given to them in the SB 1383 Regulations, unless the context indicates a different meaning was intended: biosolids, digestate, food, non-compostable paper, paper products, printing and writing paper, sludges.
5065261.1
12.a
Packet Pg. 345 Attachment: Attachment 1 - Recology Franchise Agreement Amendment - SB 1383 (SB 1383 Recology Franchise Amend - WDA Amend Reso) 1 OMNIBUS AMENDMENT TO WASTE DELIVERY AGREEMENT AND
FRANCHISED HAULER AGREEMENT
This Omnibus Amendment to Waste Delivery Agreement and Franchised Hauler Agreement (this “Amendment”) is entered into as of January 1, 2022, by and among the City of Cotati (“City”), Republic Services of Sonoma County, Inc. (“Republic”), and Recology Sonoma Marin (“Recology”).
WHEREAS, each of the cities of Cloverdale, Cotati, Healdsburg, Rohnert Park, Santa Rosa and Sebastopol (the “Committed Cities” or “Cities”) is party to a Waste Delivery Agreement with Republic (each, a “WDA”), and a Franchised Hauler Agreement with Republic and Recology (each, an “FHA”);
WHEREAS, Republic and Recology are parties to an Agreement for Operations of Sonoma County Transfer Stations and Materials Recovery Facility (the “Prime Subcontract”), pursuant to which Republic subcontracted to Recology certain of Republic’s obligations under the Amended and Restated Agreement for Operation of the Central Landfill and County Transfer Stations (the “MOA”) between the County of Sonoma and Republic;
WHEREAS, the MOA, Prime Subcontract, WDAs and FHAs (collectively, the “County Agreements”) contemplate that Recology will provide a limited program for collection of Commercial Food Waste and Dry Commercial Mixed Waste within urban areas of City (the “Programs”), to be compensated solely through a portion of the Facility Operations Service Fee that Recology receives under the Prime Subcontract;
WHEREAS, the Programs and related compensation contemplated by the County Agreements do not meet the requirements of SB 1383, including provision of organics service to all residential and commercial generators (not just urban customers), periodic route reviews to monitor contamination, periodic compliance reviews to monitor participation, and detailed reporting related to the foregoing;
WHEREAS, the parties believe that the needs of City to comply with SB 1383 can be best served by having City’s organic waste and Dry Commercial Mixed Waste programs fully funded under its franchise agreement with Recology, rather than attempting to implement an SB-1383 compliant program by supplementing the existing (noncompliant with SB1383) Programs with additional services under City’s franchise agreement;
WHEREAS, eliminating the funding for the Programs under the Prime Subcontract will allow the Gate Rates charged to Recology (as City’s franchised hauler) on Committed City Waste delivered to the County facilities to be reduced (compared to what the Gate Rates would otherwise be) by the portion that previously funded the Programs; NOW, THEREFORE, the parties agree as follows:
1. Effective as of April 1, 2022, and subject to Section 3 below, Section 2.3 of City’s WDA, and Sections 3 and 4 of City’s FHA (and of Exhibit C to City’s WDA, which sets forth the form of the FHA), are hereby deleted and of no further force or effect.
2. Effective as of April 1, 2022, and subject to Section 3 below, City’s FHA is hereby amended to add the following:
12.b
Packet Pg. 346 Attachment: Attachment 2 - WDA-FHA Amendment (SB 1383 Recology Franchise Amend - WDA Amend Reso) 2 “To maximize route efficiency under its franchise agreement with City, Contractor may collect Commercial Food Waste in its residential collection vehicles, commingled with residential organics, provided that the tonnage of Commercial Food Waste so collected in City, the other cities that are party to a Waste Delivery Agreement with Republic where Recology is the franchised hauler, and the unincorporated County combined, does not exceed 15% of the total tonnage of Commercial Food Waste collected by Contractor from such jurisdictions (calculated on an aggregate (combined) basis, not jurisdiction by jurisdiction by jurisdiction), and provided further that Contractor compensates Republic Services of Sonoma County, Inc. (“Republic”) appropriately for such commingled Commercial Food Waste, in a manner to be mutually agreed by County, Republic and Contractor.” Compliance with the preceding sentence is intended as an alternative means of complying with Cit’s and Recology’s obligations to deliver Committed Waste to Republic and shall not be deemed a violation thereof.
3. The effectiveness of Sections 1 and 2 is subject to satisfaction of all of the following conditions:
(a) The MOA and Prime Subcontract are amended to, among other things: (i) adjust the Gate Rate and the Facility Operations Service Fee to eliminate the portion that funds the Programs (currently $4.21 per ton), on all tons on which such portion is included, (ii) revise Republic’s diversion tonnage goal in Section 9.2 of the MOA and Section 5.4 of the Prime Subcontract from 67,000 to 44,735 tons per year, and Recology’s diversion tonnage goal in Section 5.4 of the Prime Subcontract from 46,173 to 23,908 tons per year; (iii) delete the second sentence of the first paragraph of Section 9.7 of the MOA, and (iv) delete Section 5.16 of the Prime Subcontract, all such amendments to be effective as of April 1, 2022;
(b) On or before April 1, 2022, (i) each of County and the Committed Cities enters into a written amendment to its respective franchise agreement with Recology that includes a rate adjustment that, in Recology’s sole but reasonable opinion, is sufficient to fully fund the organic waste and, if continued, the Dry Commercial Mixed Waste programs provided by Recology in such jurisdiction pursuant to the franchise agreement, and (ii) each other of the Committed Cities enters into an omnibus amendment to its WDA and FHA that is identical in all material respects to this Amendment. Any of the conditions set forth in this subsection (b) may be waived by Recology in writing to the other parties hereto.
4. In the event of any conflict between this Amendment and City’s WDA or FHA, this Amendment shall govern. This Amendment may be executed in counterparts and/or by electronic signature (e.g. DocuSign). As used in this Amendment, “including” and its variants mean “including without limitation.”
5. Nothing contained herein shall change the definition of Committed Waste within the WDA. More specifically, Commercial Food Waste and Dry Commercial Mixed Waste are and shall continue to be considered Committed Wastes. This Amendment does not modify the categories of Waste exempt from payment of the Facility Operations Fee in Section 8.3 of the Prime Subcontract.
6. Except as expressly amended herein, each of the County Agreements shall remain in full force and effect.
12.b
Packet Pg. 347 Attachment: Attachment 2 - WDA-FHA Amendment (SB 1383 Recology Franchise Amend - WDA Amend Reso) 3 IN WITNESS WHEREOF, this Amendment is entered into as of the date first written above.
City of Cotati
By:
Name:
Title:
Date:____________________________
APPROVED AS TO FORM:
________________________________
City Attorney
ATTEST:
City Clerk
Republic Services of Sonoma County, Inc.
By:
Name:
Title:
Date:
Recology Sonoma Marin
By:
Name:
Title:
Date:
ACKNOWLEDGED:
County of Sonoma
By:
Name:
Title:
Date:____________________________
12.b
Packet Pg. 348 Attachment: Attachment 2 - WDA-FHA Amendment (SB 1383 Recology Franchise Amend - WDA Amend Reso) Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council/Successor Agency to the Former Cotati Community Redevelopment Agency
Subject: Adoption of Resolutions Approving the Fiscal Year 2022/23 Budget and Updated Multi-Year Capital Improvement Plans
Date: June 28, 2022
Written by: Angela Courter, Director of Administrative Services Recommendation
It is recommended that the City Council Adopt Resolutions Approving the City of Cotati Fiscal Budget for Fiscal Year 2022/23 and the corresponding Updated Multi-Year Capital Improvement Plans.
Background
The City Council held a Strategic Planning Study Sessions on February 15, 2022, where the City Council, the public, and staff reviewed and updated the goals and objectives, as well as the project priorities for Fiscal Year 2022/2023.
Subsequently, the City Council held two Budget Study Sessions, on April 19 and May 17, 2022, to review the draft proposed Fiscal Year 2022/23 budget, take public comment, and provide direction to staff.
City Staff have been continuing work to improve the City’s second online budget book that is available to the public at:
https://city-cotati-ca-budget-book.cleargov.com/4249/introduction/transmittal-letter Analysis/Discussion
Budget Summary
Following the review of the Draft Budget presented to the City Council, there were only minor corrections and updates made to the projections.
Highlights of the overall FY Budget are;
• Conservative 2022/23 budget outlook as the economy continues to improve but with significant uncertainty due to local impacts due to national and global events including
12.B
Packet Pg. 349
continued effects of Covid-19 and the related Federal Fiscal Stimulus as well as the Russian/Ukraine War. Across the state and locally we are currently impacted by increased inflation, supply chain disruptions, housing stock shortage with continued price increases, and lower unemployment rates causing increased competition for staffing and increased turnover. However, indications are that the economy is cooling with the Federal Reserve aggressively raising rates to counter inflation. City staff are dedicated to continuing close monitoring of key revenue sources and expenditure management. • Balanced budget maintaining prudent fund balances.
• Continue to prioritize economic development, infrastructure, and community.
General Fund Highlights:
• Balanced Operating Budget for the 14th straight year. • The General Fund Operating Revenue exceeds Operating Expenditures by approximately $1.3M.
➢ Some key operating expenditures include (1) funding of $225,000 in vehicle repairs and replacements, (2) funding $809,000 in debt service for the unfunded pension liability and Streets Lease Bond Funds, (3) $640,000 in insurance, (4) over $63,000 in administrative fees to other districts (State, County, etc.). • The General Fund maintained reserve of 25% of operating expenses, per Resolution No. 2009-50.
• General Fund has additional reserve of $2.4M for a total reserve of 53% of the proposed operating expenditures.
• General Fund Ending Fund Balance of $4.6M
Capital Projects Highlights:
The proposed City budget includes General Fund funding of $3.7M, for a total of $14.0M in capital projects (All funds) to improve the community, including:
• Mosaic Wall Bench Installation
• Bike/Ped Safety Projects
• ORH Traffic Flow Improvements
• Gateway Signage
• 2020 Street (Quick Strike)
• Marsh to McGinnis Pathway
• 2023 Pavement Preservation
12.B
Packet Pg. 350
• 2023 Pavement Rehabilitation
• Hwy 116/W. Cotati Ave Design
• Redwood Dr. & Cypress Design
• Kotate Park Improvements
• Pocket Park Improvements
• Putnam Park Design
• Civic Center Windows & Repairs
Other highlights include a new proposed annual allocation for landscape refurbishment ($35,000 parks and $35,000 streetscapes), intended to replace landscaping at existing locations. Every plant/tree has a natural life cycle and historically the City has only removed dead plants without a program to replace them. This is similar to the on-going annual safety programs for general sidewalk repairs ($16,500) and general pedestrian/bicycle/vehicle safety projects ($50,000).
Additionally, the City is also budgeting for $25,000 in landscape refurbishment in the Altman Acres LLAD, as well as continued work on gateway signage monument design and construction of gateway pole signage at minor entries into the City for $100,000. The budget also continues to include $125,000 to support licensee activities for public programming at the Veronda Falletti Ranch.
Internal Service Funds Highlights:
Vehicle Maintenance and Replacement
• $361,000 in funding across City Funds based on fleet usage. • Purchase of replacement police vehicle and various public works equipment and vehicles as needed.
• Evaluation of all-electric vehicles for replacements going forward, as applicable.
Compensated Absences Fund
• $120,000 funding provided by City wide allocation costing.
Enterprise Fund Highlights:
• The Enterprise Funds budget includes a combined $2.0 Million in various water and sewer capital projects including:
• P-1: Portal Street, Mercantile, Aaron Main Replacement • SCADA Water/Sewer
• West Sierra Avenue Sewer Main Replacement
The Budget document attached to the resolution contains narrative summaries for each department, the City Managers message, and some of the graphics from the budget presentations.
Financial Considerations
12.B
Packet Pg. 351
Despite the economic uncertainty, the City has continued strategic projects and not significantly reduce the reserve funds. The recommended budget includes a General Fund that is balanced with the estimated annual operating revenues exceeding the budget operating expenditures.
Infrastructure in the general fund is supported with reserves from FY 21/22. However, staff are continuing to search for matching grants.
Overall fund total reserve is estimated to be approximately $4.6M, or 53% of operating expenditures. This is an improvement over prior years adopted budget which was estimated at $3.9M or 47% of operating expenses.
Environmental Issues
Not applicable.
Attachments:
Presentation for Fiscal Year 2022/23 Proposed Budget (PPTX) Budget in Brief FY 2022-2023 (PDF)
12.B
Packet Pg. 352
Proposed
Budget
Fiscal Year
2022/23
§ Presented By:
§ Damien O’Bid, City Manager
§ Angela Courter, Director of Admin Services
City of Cotati
City Council Session June 28, 2022
12.B.a
Packet Pg. 353 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and November-December - City Manager
and Admin. Services Budget Planning
Meetings
January -Mid-Year & Financial Performance
Review
February - Budget Strategy Meetings,
Budget Guidelines Drafted March - Internal Budget Review, Strategic/Long-Term and Capital Planning
April - Draft Budget Creation and Review
April-May - Budget Workshops
June - Budget Adoption
12.B.a
Packet Pg. 354 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and Strategic Planning
Session
•Developed City
Objectives/Goals
Budget Focus
•Strategic Projects
Feb. 15,
2022
City Objectives
Revisit
Budget Study
Session
•General Fund
•Revenues
•Expenditures By
Departments
•Special Revenues
April 19,
2022
Budget Study
Session
•Enterprise Funds
•Capital Projects
•Transfers In and Outs
May 17, 2022
Budget Adoption
June 28,
2022
12.B.a
Packet Pg. 355 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and Long Term Vitality •Balanced Budget •Economic Development •Affordable & Proper Development •Infrastructure Preservation •Pursue Grant Opportunities Climate Change •Mitigate and Adapt to Impacts •Wildfire Preparation & Adaptation Community Engagement •Inclusive and Equitable Practices •Advance Equity to Community Partners Equitable, Compassionate & Healthy Community •Diversity Source of Strength •Equity in Hiring/ Promoting/ Contracting •Advance equity & health partnerships Best in Class Community Services • Community Safety & Quality •Support High Level Core Services •Emergency Preparedness •Update Regulations •Development Services •Regional Participation •Improve Service Delivery
12.B.a
Packet Pg. 356 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and Unemployment Rate*
§ The U.S. economic outlook
is still highly volatile
§ GDP for 2022 est. 3.2 % and for
2023 est. 2.1% vs. 4.1% growth
2019
§ California economy Same
Instability
§ Unemployment Peak 24.5 %
during Q2 2020
§ 9% decline in Personal Income
Summary
Unemployme
nt Rate April 2021 April 2022 Change
US 6.0% 3.6% 11.4%
California 8.3% 4.6% 11.6%
Sonoma 6.2% 2.6% 12.6%
• Sonoma County - As reported May 20, 2022 by State of CA Employment Development Department https://www.labormarketinfo.edd.ca.gov/file/lfmonth/satr$pds.pdf • US and California – As Reported June 17, 2022 by the Bureau of Labor Statistics - https://www.bls.gov/
12.B.a
Packet Pg. 357 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and Global/National/Regional
§ Economic Uncertainty
§ Unknown Term for Continued Inflation
§ Federal Funds Rate Increases
§ Impacts on Investments in
Development
§ Legislative Impacts from Federal, State &
Regional Government
§ Recovery from Covid-19 with Lingering
Effects
§ Inventory Shortages
§ Russian unprovoked attack on Ukraine
§ Global Sanctions on Russia
§ Increased Gas prices
§ Global interruption of goods
§ Increased military spending
12.B.a
Packet Pg. 358 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and • A general fund is the primary fund used by a government entity. • Used to record all resource inflows and outflows that are not associated with special-purpose funds.
• Activities being paid constitute the core administrative and operational tasks of the government entity.
12.B.a
Packet Pg. 359 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and Assumptions in Decline in Operating Revenues of Approximately $30K for fiscal year 2022/23
Balanced Budget - Net Operating Surplus - $1.3 M
Total Operating Revenue - $10.1 M
Total Operating Expense - $8.8 M
General Fund is Funding $3.7M in Capital Projects
Leveraging an Additional $1.2M in Grants Matching
Maximizing Low Interest Tax-Exempt Debt to Invest in Major Streets Projects Ending General Fund Balance of $4.6M
Budget reflects a total operating reserve of 53% exceeding the 25% requirement.
12.B.a
Packet Pg. 360 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and General FUND Budget
Highlights
Increased Expenditures
Contract Services-Insurance Debt Service Other Expense - Election Staffing Costs less than $13K Change from Budget 2022/23 Negotiated Adjustments Lump Sum Payment of PERS Increased Insurance Adjusted for $1.4 Budgeted ARPA Funds in 2021/22
Operating Revenues Increase from 2021/22 Adopted Budget 2021/22 Est. Up 7.5% 2022/23 Proposed Up 7.2%
Operating Revenues Decrease from 2021/22 Adopted Budget 2021/22 Est. Down 6.3% 2022/23 Proposed Down 6.6%
Minimum reserve of 25% of operating expenses, per Resolution 2009-50 2021/22 Estimated Reserve of 58% 2022/23 Proposed Reserve of 53%
12.B.a
Packet Pg. 361 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and FY 2021/22 FY 2022/23
ESTIMATE
PROPOSED
BUDGET
PROPERTY TAX $ 1,895,397 $ 2,012,395 $ 116,998 6.2%
SALES TAX 5,960,000 6,070,000 110,000 1.8%
OTHER TAX 660,300 751,700 91,400 13.8%
LICENSES, PERMITS & FRANCHISES 538,800 537,900 (900) -0.2% RENTS 96,000 77,400 (18,600) -19.4%
OTHER AGENCIES 193,908 203,600 9,692 5.0%
COMMUNITY DEVELOPMENT CHARGES 301,845 256,250 (45,595) -15.1% PUBLIC WORKS CHARGES 102,640 50,500 (52,140) -50.8%
POLICE CHARGES 58,000 64,800 6,800 11.7%
OTHER REVENUES 313,394 52,400 (260,994) -83.3%
INVESTMENT EARNINGS 13,300 26,500 13,200 99.2%
CONTRIBUTIONS 11,300 6,300 (5,000) -44.2%
$ 10,144,884 $10,109,745 $ (35,139) -0.3%
% CHANGE
OPERATING REVENUE SOURCE BY
TYPE
INCREASE/
(DECREASE)
TOTAL GENERAL FUND
REVENUE/SOURCES
12.B.a
Packet Pg. 362 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and Cotati Budget Revenues:
§ Based on best available information today
§ Estimates are always conservative
§ Sales tax and Measure G
§ Approximately 60% of General Fund Operating Revenues
§ Tax base is relatively secure
§ Projecting 2% growth due to strong demand for goods at higher prices § Primary Industries are Building/Construction, Fuel and Service Stations, Food and Drug, and the County Pool.
§ Property Tax
§ Approximately 20% of General Fund Operating Revenues
§ Increasing 2% over prior year budget due to completion of higher tax valued properties in 2019-2021 primarily Kessing Ranch.
§ Additional expected 2% Expected Assessors Applied CPI § Cannabis Tax Increasing due to additional retail permit § Includes continuation of SSU Dispatch Agreement
§ Reduction in 1x Other Revenue from FY 21-22 due to St. Joseph Park and Ride 1x revenue.
12.B.a
Packet Pg. 363 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and • 2021-22 - ADDITIONAL DISCRETIONARY PAYMENT OF $6M
PROCESSED ($4.8M FOR GENERAL FUND), PLUS LUMP SUM
• 2022-23 - FULL LUMP SUM PAYMENT OF THE PERS UNFUNDED
LIABILITY IN THE AMOUNT OF APPROXIMATELY $1.2M
CALPERS
• ALLOCATED CONTRACT SERVICES
• SHARED INDIRECT COSTS SUCH AS AUDIT FEES, JANITORIAL
COSTS, UTILITIES, ETC.
• BASED ON FULL FTE
CONTRACT
SERVICES
EVALUATION
• USING ESTIMATES RECEIVED
• INSURANCE ESTIMATE INCREASE 52%
• MARKET UNCERTAINTY
INSURANCE
INCREASES
• ESTIMATES ARE BASED ON EXISTING STAFFING
• INCLUDES ALL NEGOTIATED MOU CHANGES
• ONE MOU CURRENTLY BEING NEGOTIATED
• EVALUATING STAFFING LEVELS
ALL DEPARTMENTS
ARE BUDGETED AT
FULL STAFFING
12.B.a
Packet Pg. 364 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and FY 2021/22 FY 2021/22 FY 2022/23
ADOPTED ESTIMATE
PROPOSED
BUDGET
CITY COUNCIL $ 135,907 $ 140,827 $ 152,689 $ 11,862 8%
CITY MANAGER 676,848 643,792 645,775 1,983 0%
ADMINISTRATIVE SERVICES 386,670 358,155 443,068 84,913 19% COMMUNITY DEVELOPMENT 940,337 862,477 1,064,569 202,092 19% PUBLIC WORKS 1,403,287 1,379,302 1,399,279 19,977 1%
POLICE 4,499,245 4,209,170 4,652,725 443,555 10%
RECREATION 421,135 390,150 388,489 (1,661) 0%
CODE COMPLIANCE 41,000 41,000 46,000 5,000 11%
UAL - ADP - 4,854,660 - - -100%
$ 8,504,429 $ 12,879,533 $ 8,792,594 $ (4,086,939) -32%
EXPENDITURES
SUMMARY BY DEPARTMENT
INCREASE/
(DECREASE)
% CHANGE
TOTAL GENERAL FUND
EXPENDITURES
12.B.a
Packet Pg. 365 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and City Manager includes the following changes:
Inclusion of the Public Information Services and biannual Election Charges Personnel reduced by City Clerk offset by Administrative Assistant Administrative Services includes the following changes:
Increase due to budgeting for new accountant and intern positions Community Development change is primarily due to:
Additional Part Time Permit Tech
Public Works change is primarily due to:
Increased dues and subscriptions and allocated insurance Operational Funding for Veronda-Falletti Ranch for 2nd year
12.B.a
Packet Pg. 366 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and Police Services includes the following changes:
Continued investment in technology services through the public safety consortium
Additional Costs for Training and correlated Overtime.
Significant other expenses include allocated insurance, recruiting, small tools and equipment, and vehicle fuel.
Recreation includes the following changes:
RecDesk Annual software contract renewal
Significant other expenses include allocated insurance and bank fees
12.B.a
Packet Pg. 367 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and Transfer In for:
COPS Grant = $100,000
Public Safety Prop 172 = $72,000
Transfer Out for:
Capital Projects Funds = $1,730,500
Grants Fund 201 = $1,875,000 (Matching
for $1,327,900 in Grants)
Successor Agency = $77,314 Allocation
Coverage
K-9 Fund = $13,840 Measure S Funding
for Program
12.B.a
Packet Pg. 368 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and
12.B.a
Packet Pg. 369 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and Grant Project Summary
*
Streets Quick Strike Project - $2,890,000
Kotate Park (Prop 68) - $2,387,900
*Funded by grants and city matching funds
12.B.a
Packet Pg. 370 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and Other City Project Summary:
Parks
Pocket Park & Putnam Park Design. - $114,500
Streets
Bench at ORH & 116 Pedestrian Plaza - $46,000
Bicycle Pedestrian Safety Improvements - $50,000
ORH Traffic Flow Improvement - $334,800
Gateway Signage - $100,000
Loretto & Marsh to McGinnis Pathway - $61,000
2023 Pavement Preservation - $1,085,000
2023 Pavement Rehabilitation - $3,200,000
HWY 116/W. Cotati Ave. Safety Imp. - $500,000
Redwood Dr & Cypress Ave Rehab - $205,000
Park & Ride Project - $2,200,000
12.B.a
Packet Pg. 371 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and Other City Project Summary:
Buildings
Civic Center Windows & Repairs - $1,038,000
LLAD
Altman Acres LLAD Streetscape - $25,000
Loretto & Marsh to McGinnis Pathway - $20,000
q Proposed Park/Streetscape Refurbishment Allocation q $35,000 for replacing existing park plantings q $35,000 for replacing existing streetscape plantings
12.B.a
Packet Pg. 372 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and Special Revenue Funds are a group of accounts established by a government for restricted use to ensure that certain revenue sources are used or earmarked only for their specific purpose.
This Special Revenue Fund type may be used to account for the proceeds of specific revenue sources that are legally restricted or restricted by City Council policy for a specified purpose.
12.B.a
Packet Pg. 373 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and - Other revenues are primarily Development fees for as well as RMRA funds.
By Type
12.B.a
Packet Pg. 374 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and - Other revenues are primarily Development fees for as well as RMRA funds.
By Fund
12.B.a
Packet Pg. 375 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and By Type
- Primarily expenditures are transfers out for capital projects.
12.B.a
Packet Pg. 376 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and Vehicle Maintenance & Replacement § Provides an ongoing funding source for scheduled replacement of City vehicles from billings to other funds who are utilizing the fleet.
§ Continued Investment of $361K includes § Replacement of Two Police Interceptor SUV’s § Evaluating fuel efficient/environmentally friendly vehicles § Pending Public Works Flatbed Dump Truck Replacement § New Equipment- Various as needed § Repairs & Maintenance of Existing Fleet Compensated Absences Fund § Funds compensated absences with contributions made based on a proportionate and rational allocation of the total government wide liability. § Balances are increased to address estimated changes in Salaries and Benefits Schedules
12.B.a
Packet Pg. 377 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and Enterprise Funds are used to account for operations that are financed and operated in a similar manner as a private business enterprises, where the intent is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges.
12.B.a
Packet Pg. 378 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and Maintains a
reserve of 33% of
operating
expenses
Rate change per
the rate study
for water &
sewer
Conservative
Revenue and
Expenditures
Estimates
Continued focus
on infrastructure
improvements
and preservation
12.B.a
Packet Pg. 379 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and § Operating Revenues –Rate
Increase – No significant
Connection Fees
§ Proposed Capital Project
Improvements:
§ SCADA Server Upgrade &
Relocation - $150,000
§ P-1: Portal, Mercantile,
Aaron Replacement -
$608,900
§ Changes in Operating
Expenditures:
§ Increasing Insurance,
§ Water conservation
programs
§ Water Agency Increased
Rate of 6.0%
§ Debt Service back to
General Fund
12.B.a
Packet Pg. 380 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and § Operating Revenues –Rate
Increase – No significant
Connection Fees
§ Proposed Capital Project
Improvements:
§ SCADA Server Upgrade &
Relocation - $150,000
§ West Sierra Avenue
Sewer
Replacement$1,100,000
§ Changes in Operating
Expenditures:
§ Increasing Insurance,
§ Increased wastewater
treatment of 6.8%
§ Debt Service back to
General Fund
12.B.a
Packet Pg. 381 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and Conclusion
The Proposed FY 2022/23 Budget:
Prioritizes Community Engagement, Long
Term Vitality, Best in Class Community Service
Will continue to strive to implement more
actions towards Climate Change and Equality
Balanced Operating Budget
Operating Expenditures Do Not Exceed
Conservatively Estimated Operating
Revenues
Significant Investments in Historically
Deferred Capital Project
Fiscally Prudent
The General Fund Reserves To 53%
City staff are committed to exercise
prudence and integrity in the management
of public funds and provide transparency
and accountability in its use.
12.B.a
Packet Pg. 382 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and
12.B.a
Packet Pg. 383 Attachment: Presentation for Fiscal Year 2022/23 Proposed Budget (Adoption of Cotati's Budget and The City Council's goals are to develop an annual budget ensuring that the City operates within its means while allowing for continuation of existing services, infrastructure maintenance, enhanced service delivery, and transparency.
Climate
Change
Community
Engagement
Inclusion &
Equity
#1 #2 #5
Strategic
Objectives
Come find out more about the budget at our digital budget book online. One place that has it all.
From information on what major capital projects are planned, how many staff serve each department, or even just a picture of what your City Councilmembers look like. It is all here for your perusal or printing of you so choose.
Financial Transparency & Accessibility
General Fund Budget
COTATI BUDGET IN BRIEF
Planning for the Future
$4.6 Million Fund Balance
$2,198,149
$4,629,529
Required Reserve
Budgeted Reserve
The City has a reserve policy of 25% to secure a consistent level of service to our community in the event of a financial hardship.
We have continued to exceed that minimum with an estimated 53% reserve.
14 years
Balanced Budgets!
July 1, 2022 through June 30, 2023
July 1, 2022 - June 30, 2023
Balanced Budgets With Reserves
Other financial documents available to the community include:
Award Winning Annual Financial Report
Award Winning Annual Financial Report to the Community
Annual Measure G Financial Report
Come check out our award winning financial statements and budgets at www.cotaticity.org.
Revenues
Operating
Expenses
O
p
e
r
a
t
i
n
g
E
x
p
e
n
s
e
s
R
e
v
e
n
u
e
s
City Vitality
#4
Community
Service
#3
12.B.b
Packet Pg. 384 Attachment: Budget in Brief FY 2022-2023 (Adoption of Cotati's Budget and Capital Improvement Program for FY 2022/23) Street, Sidewalk & Stormdrain (39.19%)
Public Safety (42.97%) Recreation (5.34%)
Park & Landscape (11.31%) Public Buildings (1.18%)
It’s the local revenue measure that maintains
the financial viability of our small town,
improves our infrastructure and works for all
Cotati residents, including:
Maintenance of our streets, parks, and public
buildings.
Funds parks and recreation programs.
Emergency preparedness
Funds our local police department, including:
Measure S Working for You
Over $8.4M of Street Projects using ax
exempt debt and leveraging $1.1M in
Federal, State & Local Grants
$2.2M of Improvements at Kotate Park
$1.0M in Civic Center Building
Improvements
Continued work on Sewer Infiltration
and West Sierra Ave. Replacement
$2.2M for Park & Ride Replacement for
Lot at Redwood Hwy & Hwy 116
Capital Projects Include:
What is Measure S Historical Allocation of Measure G
911 Emergency Dispatch
Domestic Violence Response Services
K-9 Officer Program (training and
Preventing & investigating property crimes
$2,326,500
$1,038,000
$2,008,900
$10,716,800
Parks (14.46%) Buildings (6.45%) Water & Sewer (12.49%) Streets (66.6%)
- The Adopted Annual Budget for the Fiscal Year 2022-2023 as well as previous years can be found at the City website at: https://bit.ly/Cotati_Budget . - For more information about the City of Cotati Budget please contact the Administrative Services Department at : [email protected] or 707-665-3631 For More Information
W W W . C O T A T I C I T Y . O R G
Almost $16.1 Million of Investments
in Infrastructure & Capital Projects
12.B.b
Packet Pg. 385 Attachment: Budget in Brief FY 2022-2023 (Adoption of Cotati's Budget and Capital Improvement Program for FY 2022/23) RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COTATI ADOPTING THE FISCAL YEAR 2022/23 BUDGET
WHEREAS, the City Council had previously held duly noticed study sessions on February 15, April 19, and May 17, 2022, and provided the opportunity for and received public comments on the Fiscal Year 2022/23 Proposed Budget; and WHEREAS, adoption of a budget prior to the beginning of the new fiscal year is required to ensure the uninterrupted operation necessary for City services; and NOW, THEREFORE, the City Council of the Cotati hereby resolves that:
1. The Proposed Budget for Fiscal Year 2022/23 is hereby approved and adopted effective July 1, 2022.
2. The City Manager is authorized to make expenditures and enter into agreements conforming to this Budget and to adjust between various accounts within each budget department and fund, limited to the total amount budgeted for said department and/or fund.
3. Unexpended appropriations from the Fiscal Year 2021/22 Budget may be carried forward to the next fiscal year, provided the funds have been previously encumbered for a specific purpose, or apply to authorized but uncompleted capital projects.
4. The current year budget (Fiscal Year 2021/22) is hereby amended to equal the estimated actuals for the current year.
5. This Resolution shall take effect immediately upon adoption.
IT IS HEREBY CERTIFIED that the foregoing resolution was duly adopted at a regular meeting of the City Council of the City of Cotati held on the June 28th, 2022, by the following vote, to wit:
Approved:________________________________
Mayor
Attest:____________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:
____________________________
City Attorney
Attachments:
Proposed Budget FY 2022/23(PDF)
Packet Pg. 386
City of Cotati
Fiscal Year 2022-2023
Proposed Version
City of Cotati | Fiscal Year 2022/23 Budget Page 1
12.a
Packet Pg. 387 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23)
TABLE OF CONTENTS
Introduction4
Transmittal Letter5
History of City6
Elected Officials 11
Demographics 14
Organization Chart 19
Fund Structure 20
Budget Process 23
Basis of Budgeting 30
Financial Policies 31
GFOA/CSMFO Budget Awards 32
Budget Overview 34
Executive Overview 35
Strategic Goals/Objectives 43
Short-term Factors 45
Priorities & Issues 46
Long Range Financial Plans 48
Personnel Changes 50
Appropriations Limit 53
Funding Sources 56
Property Taxes 57
Sales Taxes 60
Other Taxes Including Cannabis Business Tax 62
Licenses, Permits, Rents and Other Agency Fees 64
Departments 66
City Council 67
City Manager 71
Administrative Services 77
Community Development 83
Public Works 90
Police 98
Recreation 105
Fund Summaries 109
All Funds 110
General Fund 116
Enterprise Funds (Water/Sewer) 126
Water Operating 132
Water Capital 137
Sewer Operating 140
Sewer Capital 145
Special Revenue Funds 149
CDBG 156
MTC Street 158
City of Cotati | Fiscal Year 2022/23 Budget Page 2
12.a
Packet Pg. 388 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Gas Tax 162
Traffic Mitigation 166
Park In-Lieu 170
PEG Fees 174
K-9 Program 178
In-Lieu Inclusionary Housing 182
Public Safety 186
Excess Bond Proceeds 190
Community Facilities District 193
Road Maintenance Rehabilitation Administration 196
Linkage Afforable Housing 200
Parks Measure M 202
Bed Tax 206
Disability Access & Education Revolving Fund 210
ARPA 2021 214
South Sonoma Business Park Assessment District 215
Successor Agency to The Cotati Community Redevelopment Agency 219 Internal Service Funds 223
Vehicle Maintenance and Replacement 224
Compensated Absences 228
Capital Project/Grants Funds 231
Grants Fund 238
Capital Outlay 242
Capital Projects Fund 245
2022A Streets Projects 248
Capital Improvements 249
One year plan 250
Multi-year plan 253
Debt 259
Government-wide Debt 260
Supplemental Statistical Information 264
Sales Tax Statistics 265
Property Tax Statistics 267
Demographic and Economic Statistics 271
Appendix 272
Glossary 273
City of Cotati | Fiscal Year 2022/23 Budget Page 3
12.a
Packet Pg. 389 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23)
INTRODUCTION
City of Cotati | Fiscal Year 2022/23 Budget Page 4
12.a
Packet Pg. 390 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23)
CITY MANAGER'S MESSAGE
Damien O'Bid - City Manager
June 28, 2022
Mayor, Councilmembers, Residents, Community Organizations and Business Owners, Attached is the City of Cotati’s Fiscal Year 2022/23 budget. The budget is the primary policy document adopted by the City Council each year.
This budget is developed in accordance with the City’s financial management policies and guidelines and reflects the City Council’s goals and objectives and how resources are allocated to achieve these goals. In addition, the budget serves as the annual financial plan, an operational guide and a communication tool.
The Fiscal Year 2022/23 General Fund budget was prepared using a conservative approach on operations, while continuing to be aggressive on capital projects. Despite heavy cost cutting, it wasn't that long ago that the City's ability to fund basic operations, even without any capital projects, was in question. However, thanks to the community's overwhelming support of Measure S, the City has some breathing room.
Therefore, this budget focuses on providing excellent core City services and continuing an aggressive push to reduce medium and long-term costs while this window of opportunity exists. In Fiscal Year 2021/22, the City Council continued heavy investment in the road system to reduce future maintenance costs, and provided an additional discretionary payment to CalPERS to save significant interest charges over time. In this budget, the City continues to strategically fund projects that lower future costs (roads), improve quality of life (parks), and promote economic development that will provide residents with the jobs and services they need and the City with future revenue growth to provide excellent services and infrastructure.
In preparing departmental budgets for the new fiscal year, department directors were instructed to analyze their department expenditures for potential savings with the goal of keeping operational expenses flat. Each department went through a detailed budget review focusing on the Council’s goals and priorities and evaluated departmental needs assessments. However, as we continue to emerge from the COVID-19 pandemic, we are continuing to experience increased cost of materials and large increases in insurance costs across the cities that we pool risk with. We need to stay cognizant of those trends, remain fiscally prudent, and make pragmatic decisions through this budget year as the actual impacts become known.
Finally, this budget continues to move forward on City Council initiatives and priorities. The City Council has clearly communicated the need for many years to maintain core City services and invest heavily in repairing and maintaining our infrastructure. With the housing affordability crisis in the State, the City Council has been focused on housing development across income levels; with societal inequity, continues to look to play a positive role, and with the continuing effects of climate change, elevated the goal to adapt and mitigate the effects.
Highlights of the Fiscal Year 2022/23 budget include:
Strategic focus on economic development to ensure the long-term vitality of the City.
Maintenance of core services while trying to improve efficiencies and community service.
Meeting or exceeding the General Fund reserve policy target of 25%.
Meeting or exceeding the Enterprise Fund (Water & Sewer) reserve policy target of 33%.
Significant investments in improving our streets, parks and buildings.
Continued development of policy for new housing development across a range of income levels.
Continuing to look for opportunities to promote equity and improve energy efficiency and greenhouse gas reduction.
We have presented a balanced budget in conformance with California State legislation (California Constitution Section 18 of Article XVI) that requires anticipated revenues plus any use of fund balance do not exceed appropriations for expenditures. The goals, objectives, long-term planning, and departmental needs have guided the City staff in their recommendations for the Fiscal Year 2022/23 budget.
Sincerely,
Damien O’Bid
City Manager
City of Cotati | Fiscal Year 2022/23 Budget Page 5
12.a
Packet Pg. 391 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23)
A HISTORY OF COTATI
Dedication - most of the photos and information provided within this Historical Perspective were made possible by contributions by Lloyd and Prue Draper. Lloyd and Prue worked to create a comprehensive archive to preserve the history of Cotati for future generations. Thank you to the Cotati Historical Society for providing this perspective. 19th CENTURY
Long before the Europeans came to California; the fertile valley had been the home of Coastal Miwoks, a clan of Native Americans who lived well on the nuts, grains and tubers, berries, fish and game that abounded in this temperate climate. The Indian name of their village, Kota'ti, produced the legend of Chief Cotati, whose visage is featured in the City's logo.
In 1837, the Mexican government established a system of land grants, including the 17,234-acre Rancho Cotate, which encompassed what is now Cotati, Rohnert Park and Penngrove. At that time, the Sonoma County region marked the northernmost frontier of Mexican territory. The Mexican government was anxious to establish its hold on the area, since it was being eyed for takeover by several nations. In 1846, the Bear Flag Rebellion, which led to the takeover of the Sonoma Fort, succeeded in displacing the Mexican domination of the region and the loss of the original papers deeding the Rancho Cotate.
Dr. Thomas Stokes Page
Dr. Thomas Page purchased the Rancho in 1849, receiving a clear title seven years later, since the original deed had been lost. Dr. Page and his family continued to occupy the lands from 1849-1929, and left an indelible imprint on the very shape of the town.
Dr. Page and most of the family members actually spent very little time living on the ranch. Two of the seven Page sons developed the land into a cattle and sheep concern, and until the early 1890's it remained largely unchanged.
Page Ranch - Hexagonal Barn
By 1895, the county road was built between Santa Rosa and Petaluma, passing directly through the hexagonally laidout heart of the new town. In 1909, this road would be incorporated into what was then called California Route One, running from San Francisco to Crescent City. It was this road, along with the train station, which opened up the new town of Cotati as a convenient place to stop for travelers.
The construction of the center of the town in the hexagonal motif allowed the Page family to name each of the six peripheral streets after one of the seven Page sons. Wilfred, who supervised the project, named a train station and another street to the north after himself.
The exact source of the design for the city center remains a mystery, but there are at least two very good possibilities.
First is that it was patterned after the hexagonal barn at the Page ranch, which in turn may have been built along lines City of Cotati | Fiscal Year 2022/23 Budget Page 6
12.a
Packet Pg. 392 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) that were in fashion at the time of its construction. Another possibility is that it was fashioned after the radiating star plan which is prevalent in the layout of many European cities, as well as Washington, D.C. and Detroit, Michigan. Whatever the reason for its design, it was deemed unique enough to gain State Historical Landmark status in 1973.
EARLY 20th CENTURY
By the turn of the century, many parcels of Cotati land had been sold as small farms. The freight transportation offered by the railroad through town, the development of the new county road, and the sudden need for businesses serving a growing agricultural community, all combined to make Cotati something of a boom town.
During the first decade of the century, churches, schools, meeting halls and homes by the score were built. By 1911, the town could boast that a thousand people had celebrated the Fourth of July there. Around the Plaza, businesses sprang up, including the Cotati Hotel.
Cotati Hotel
The November 1911 edition of The Northern Crown, a Petaluma journal, extolled the virtues of Cotati and its publicspirited inhabitants. The citizens of Cotati built and maintained their own public parks, built churches, schools and meeting halls. The trees they planted still stand.
During the 20's, Cotatians had banded together to fight their own fires or else relied on the Santa Rosa department. The combination of high winds and tinder-dry summertime grasses helped to make parts of Cotati subject to frequent grass-fires. In an area where everyone knew, or knew of everyone else, it was natural to join together in saving one another's property and, in some cases, lives. By 1927, the number of structures and the size of the area needing fire protection necessitated the organization of the Cotati Volunteer Fire Department.
Cotati Volunteer Fire Dept.
During the 30's and 40's, agriculture continued as the most important influence in the Cotati Valley, and the town changed more slowly. In the 40's and 50's, small family farms were having a hard time surviving, and some of Cotati's agricultural lands began to develop as residential and commercial areas. The opening of the 101 freeway in the mid1950's made it feasible for San Francisco workers to commute to homes in Cotati.
BIRTH OF A CITY
"Incorporation will preserve the unity and pride of Cotati as well as its individuality." That was the heading on handbills urging voters to turn out at the polls on July 2, 1963.
City of Cotati | Fiscal Year 2022/23 Budget Page 7
12.a
Packet Pg. 393 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) The Cotatian Newspaper – Thursday July 4 1963
The town had developed by fits and starts since the turn of the century, and by the end of the 50's had become a closeknit community that clung fiercely to its claim of being "the Hub of Sonoma County." The Cotati Chamber of Commerce was well known throughout the NorthBay Area for its vigor and enthusiasm. It had led a successful fight to get state approval of a local site for the new state college. The little town was proud to have its own water and sewer system and its top rated fire department. It seemed destined to continue its pattern of gradual growth, well insulated by green pastures from its metropolitan neighbors.
By the fall of 1961, citizens of semi-rural Cotati and infant Rohnert Park, discontented with the level of services provided by the county, were exploring the possibility of merging their interests and incorporating as one city. A joint citizens' committee was formed, and a municipal expert, William Zion, was hired to conduct a feasibility study. By January 1962, however, a contingent in Rohnert Park had decided that a combined city wasn't to their liking, and filed notice of their intention to incorporate independently.
The election was held on August 21, 1962, and incorporation was approved. Rohnert Park was the name favored by 398 voters, while 128 diehards, still hoping that the neighboring communities might someday merge, voted to name the city "Cotati Park."
Cotatians, having studied incorporation, realized that incorporated cities had jurisdiction over development adjacent to their boundaries. It seemed inevitable that the new City of Rohnert Park would seek to extend its boundaries to take in the parts of Cotati that it found most desirable, gradually eradicating the close-knit pride-filled "Hub of Sonoma County." Facing the fact that one week after Rohnert Park's election the new city would become official, Cotati citizens swung into high gear. A citizens' committee spearheaded by Lloyd Draper, publisher of the Cotatian weekly newspaper, Dr. Bill Kortum, president of the Chamber of Commerce; real estate broker Joe Dorfman and county tax appraiser Sam Houser began gathering signatures on a petition stating Cotati's intention to form its own city.
On August 27, one day before Rohnert Park was to be officially declared a city, the Cotati committee filed its notice of intention to circulate incorporation petitions. Boundaries of the proposed city were roughly the same as the Cotati Public Utility District. Thirty-seven citizens signed the petition which Draper presented to the Board of Supervisors, stating that incorporation "seemed necessary to retain the character of the town, preserve its name and guide its future growth."
The citizens agreed, and on July 2, 1963, 83.9% of the registered voters, a total of 331, went to the polls and approved incorporation by an 84% majority - 284 yes to 49 no.
Candidates for the first City Council were Oliver Chadwick, Al Falletti, Harold Groom, Bernhard Grutgen, Sam Houser, Bud Howard, Tom Murphy, Stanley Olsson, Lyle Short, Russ Williams and Herb Winter. Top vote getter was Houser, who was subsequently chosen as Cotati's first mayor. Also winning seats on the first council were Olsson, Chadwick, Groom and Falletti, the latter two also continuing as directors of the Cotati Public Utility District.
A week after the election, Cotati was certified as Sonoma County's newest city. The City Council began conducting its business in the anteroom of Ed Lewitter's accounting office while hosting public meetings at the fire station.
One of the Council's first actions, on August 1, was to refuse salaries, stating that Cotati had been planned as a lowbudget city with volunteer workers, and the councilmen were sticking by their plans. "None of us wanted public office," Mayor Houser told a newspaper reporter. "We just wanted to keep Cotati the way it was."
THE SIXTIES
The year 1968 saw the birth of the counterculture influence on Cotati. The Inn of the Beginning came alive and brought nationally and internationally recognized musicians to Sonoma County. The major forms of music played were rhythm and blues, rock and roll, country and western, and folk.
The Inn of the Beginning
City of Cotati | Fiscal Year 2022/23 Budget Page 8
12.a
Packet Pg. 394 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Hotbeds of Dissent
Coffeehouses have played a significant role as gathering places for the "Cotati counterculture" since the 70's. The Last Great Hiding Place was popular in the mid-70's, with couches and armchairs in front and a theater in back. Many significant dramatic events and much political planning took place here.
When the Hiding Place closed, coffeehouse habitues found a new, if somewhat isolated, home at the Cotati Donut Shop in the Rancho Cotate Shopping Center.
Soon after the Cotati Donut Shop closed, Lindy's New and Delicious opened, and the caffeine faithful flocked in, glad to be back in the central part of town and grateful for the couch, the art on the walls - and especially the typewriter.
The Freestore
The Freestore was a large shed from which many Cotati citizens outfitted themselves without charge. Vito Paulekas and others constantly organized the steady flow of cast-off clothes, shoes and accessories that were left there, creating a treasure trove of "finds" for indigent browsers. The "store" burned down and was rebuilt, vandalized and cleaned up again, surviving until 1983 when it was crushed flat by a semi-truck. Its influence was great on that peculiar style of dress known as the "Cotati look."
The Free Store
Cotati Company No. 2
In 1969, Irving and Irene Lipton closed their downtown variety store, and Brad and Liza Loop leased the building, delving into local history for its name: Cotati Company No. 2. They rented space as small as 12 feet square for as little as $10 a month to youthful entrepreneurs.
People built booths, clothes racks, or whatever they wanted, and went into business selling everything from comic books and rolling papers to candles, jewelry and clothing. The enterprise bustled along with ten or more merchants under one roof for almost two years until a fire closed it down.
The Bandstand and the Rebirth of La Plaza Park
Vito Paulekas and Karl Franzoni were threatened with arrest while building the bandstand in the Plaza - an "illegal structure" not sanctioned by the City - but they prevailed, and the bandstand, born to controversy, began its stormy life.
It immediately became the center for a new energy in town. Large crowds began to gather on weekends, lured by free electrified rock 'n' roll. City Council meetings played hosts to two disparate factions: one wanted more music, facilities, sandboxes for the kids, the other demanded user fees, permits, an end to amplified music.
Picnic tables, benches and swings were built and installed by concerned citizens - often for free - and gradually La Plaza Park became the comfortable gathering place it is today.
The George and Arthur Streets Barricade
Residents of George and Arthur Streets by 1978 had had enough of the 3,000-plus cars per day which were using their residential neighborhood as a high-speed shortcut. They organized and descended upon the City Council, convincing them to block Arthur Street at East Cotati Avenue, stopping through traffic.
Many people who didn't live in the neighborhood took strong exception to the street closure, and a long, fierce battle began. The barricade became a major political issue, and source of battles before the Council, Planning Commission and in the courts. Finally, in June, 1983, the City Council took the final legal step to declare the barricade permanent.
The George-Arthur Streets neighborhood has changed dramatically since the barricade was installed. Children now abound, and the streets with their open ditches, free-form parking and sparse, slow-moving traffic, are reminiscent of a quieter Cotati of years ago.
City of Cotati | Fiscal Year 2022/23 Budget Page 9
12.a
Packet Pg. 395 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23)
COTATI TODAY
For the past two decades Sonoma County has been growing at a rapid pace, welcoming vast numbers of new residents to the area. Many of these transplants have moved to the area in an effort to escape the crowded city life of the larger Bay Area cities to the south such as San Francisco and San Jose.
This rapid growth has provided a significant challenge to the City and to the preservation of its unique charm.
Managing this growth has become one of the prominent issues facing the City. While many feared that too much growth would spoil the city's small town character, others felt that too little growth would cause more and more city residents to leave Cotati to shop at neighboring City shopping centers in Santa Rosa, Rohnert Park and Petaluma. They feared that this would cause the city's share of the sales tax revenue to wither, leaving the city unable to provide adequate city services. However, with the growth of a few key businesses that draw customers from those same neighboring cities plus the growth of online sales and the voter approved 1% sales tax this concern has flipped to stabilizing revenues with more revenue diversification with economic development.
In 1990 the citizens of Cotati overwhelmingly voted to curtail the growth of the city by forbidding any annexation of land beyond a fixed urban boundary line. This highly popular self-imposed limit on annexation turned the focus on development inwards. The City continues to work to enhance the downtown area, such as the new Information Kiosks for locals and tourists, and to encourage business development. The City also has worked towards significant developments outside the downtown including a successful industrial section and on a plan for mixed residential and commercial use developments on E. Cotati Avenue by the SMART train station. The City has also recently added Wayfinding Signage to enhance pedestrian and cycling routes, and is continuing development on the Gateway Project at the approach to the City on Highway 116.
Cotati today is comprised of approximately 7,500 residents, over four times the population at incorporation in 1963.
Sonoma State University, located just outside Cotati's city limits, has played a significant role in the City's history since it moved into its 220 acre East Cotati Avenue campus in 1966. Originally a state college, Sonoma State was granted university status in 1978.
Having a major university nearby is certainly a cultural asset, but there has never been a shortage of culture in Cotati.
The City is home to the Cotati Music Festival each June, the annual Kid's Day Parade and the internationally renowned Cotati Accordion Festival in late August.
Cotati City Hall
If you would like to learn more about the City and its historical importance, please visit the Cotati Historical Society online at http://cotatihistoricalsociety.org/ (http://cotatihistoricalsociety.org/) or at the Historical Society Museum located in City Hall and open on Saturdays from 1 p.m. to 4 p.m. and also on the second Tuesday of each month from 5 p.m. to 7 p.m.
City of Cotati | Fiscal Year 2022/23 Budget Page 10
12.a
Packet Pg. 396 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Your Elected Officials
Mayor Mark Landman
Email: [email protected] Phone: (707) 792-4600 Ext. 195 Councilmember Mark Landman was appointed to City Council in November 2009 and elected to a full four-year term in 2010. He was re-elected in 2014 for a second four-year term and re-elected to a third four-year term in 2018.
Mark Landman has lived in Cotati since 1987. In 2004 he retired from the Novato Fire District where he served the community as a firefighter, as one of the first paramedics in Marin County, and finally as a fire captain. Councilmember Landman's goal is to draw upon these experiences to help ensure Cotati has responsible financial planning and budgeting and continues to provide an appropriate level of service to its citizens.
During his time on our council, he has worked to establish neighborhood police patrols to reduce speeding, stopped outof-town trucks from using our downtown and local neighborhoods as shortcuts, supported balanced budgets for over a decade, brought about the renovation of Cotati’s Rose Garden, and through his leadership on Measure G and Measure S protected Cotati’s independence and local police department.
Mark is a founding board member of Sonoma Clean Power, where he has served as chair twice. Mark served as chair of the Sonoma County Transportation Authority in 2019, cutting the ribbon for the long awaited “three lanes all the way” expansion of Highway 101 and helping craft Measure DD to provide local and regional transportation projects into the future.
Mark also served as Chair of the Russian River Watershed Association, where he led a countywide effort to bring about a safe medicines plan to remove unused pills from our watershed.
Mark has also served as Chair of the Sonoma County Mayor’s and Councilmember’s Legislative Committee, and is a LAFCO commissioner.
Councilmember Landman was elected Mayor of Cotati twice, serving in 2013 and 2018, and served as Vice Mayor in 2021.
In 2015, Mark was selected as Cotati’s “Citizen of the Year”.
City of Cotati | Fiscal Year 2022/23 Budget Page 11
12.a
Packet Pg. 397 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Vice Mayor Susan Harvey
Email: [email protected] Phone: (707) 792-4600 Ext. 193 Susan Harvey was elected to the City Council in November 2009 and re-elected in 2012, 2016 and 2020. She was appointed as Vice Mayor in 2011, 2016 and 2022 and served as Mayor in 2012 and 2017. She served on the Planning Commission from November 2008 to November 2009.
Councilmember Harvey currently serves as Cotati's representative on the Sonoma County Waste Management Agency (SCWMA), Sonoma Water Advisory Committee, Santa Rosa Plain Groundwater Sustainability Agency, Cotati-Rohnert Park Unified School District 2x2x2, and Association of Bay Area Governments (ABAG). She serves on the Board of Directors of the Northbay Division of the League of California Cities, currently as President. She serves as an alternative representative for Sonoma County Health Action, Sonoma County Transportation Authority/Regional Climate Protection Agency and Cotati Chamber of Commerce liaison.
A long-time volunteer, Susan has worked on behalf of community activities such as the Cotati Accordion Festival, the Jazz Festival, Oktoberfest and Cotati Historical Society. In 2011, Susan was selected as Cotati’s “Citizen of the Year”.
Susan and her husband have resided in Cotati since 1978, where they have raised their three children. She enjoys sharing our community and its events with her grandchildren. Having lived 44 years in Cotati, Susan brings a deep knowledge and familiarity of the uniqueness of our community. Susan brings over 30 years of management experience from a major local employer. Difficult budgets, painful decisions and working through differences of opinion are all common occurrences when working in such an environment. She brings skills in team work and consensus building for the betterment of the community and its long term sustainability.
Councilmember Harvey is devoting her energy to preserving community police, maintaining essential city services, recreational opportunities for our youth and seniors, fiscal responsibility, working to increase volunteerism, supporting policies that enhance existing business and attract new business. Additionally, Councilmember Harvey has seized the opportunity for our community to be well represented in Sonoma County efforts for sustainability of water, waste management, education for all and improving health outcomes.
Council Member Ben Ford
Email: [email protected] Phone: (707) 792-4600 Ext. 196 Ben Ford was elected to City Council in 2020. He earlier served on Cotati’s Planning Commission (2011-19) and Design Review Committee (2009-10). Some of his favorite organizations to volunteer with over the years have been Cotati Creek Critters, Transition Cotati, Daily Acts, and the North Bay Organizing Project.
Ford represents Cotati on the Russian River Watershed Association Board of Directors, and is Cotati’s alternate representative to the Santa Rosa Plain Groundwater Sustainability Agency and Sonoma Clean Power.
Council member Ford moved to Cotati in 2003 with his wife and their two children. He teaches mathematics at Sonoma State University, where he has served as Chair of the Mathematics and Statistics Department and on two occasions as Chair of the University Faculty. He serves on professional bodies that help shape math education guidelines for the State of California. He tries to get outdoors on his bike or in his hiking boots whenever possible.
City of Cotati | Fiscal Year 2022/23 Budget Page 12
12.a
Packet Pg. 398 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Council Member Laura Sparks
Email: [email protected] Phone: (707) 792-4600 Ext. 194 Council member Laura Sparks was elected to City Council in November 2020 for a four-year term.
Laura Sparks has lived in Cotati since 2016. After earning a B.S. in physics from Arizona State University and a master’s degree in Physics at the University of Massachusetts, Amherst, she relocated to Livermore, California in 2006 to pursue a career teaching at the community college level. She had been able to attend state schools thanks to publicly-funded financial aid programs, and she wanted to work giving students the same opportunity to get an education and excel regardless of economic background. She was drawn to the California Community College system because its low tuition and support programs make it truly accessible to all. In 2009 she moved to Sonoma County to teach astronomy full-time at Santa Rosa Junior College (SRJC), where she continues to teach today. During her time at SRJC, Council member Sparks has taken on a variety of leadership roles, including Academic Senate parliamentarian and department chair of Earth and Space Sciences.
Council member Sparks has been a frequent volunteer at science outreach events throughout Sonoma County, and served as a board member of the Sonoma County Astronomical Society. She is an educational affiliate member of the American Astronomical Society and a member of Astronomers for Planet Earth, an organization of professional astronomers, educators, and students who advocate for climate action.
Her priorities include transparent, inclusive, and participatory local government, working to combat and mitigate the effects of climate change, promoting affordable and attainable housing, anti-racism, and helping local residents and businesses to survive and thrive in a time of unprecedented challenges.
Council Member John C. Moore
Email: [email protected] Phone: (707) 792-4600 Ext. 192 Councilmember Moore was appointed to the City Council in March 2013, to fulfill the remainder of a term ending in December 2014. He was elected to a full four year term in 2014, serving as Vice Mayor in 2015, and Mayor in 2016.
Councilmember Moore also served as Vice Mayor in 2020, and Mayor in 2021.
Councilmember Moore has been a resident of Cotati since 1984. Councilmember Moore’s 35-plus year history of community service includes member and chair of the Cotati Rent Appeals Board as well as Executive Board Member and President of the Cotati Chamber of Commerce. Additionally, Councilmember Moore serves as a delegate to the North Bay Labor Council and District Bargaining Unit Representative of Service Employees International Union Local 1000, District Labor Council 752, serving Sonoma and Marin counties.
Councilmember Moore was recognized as Citizen of the Year in 2005 for his community involvement/volunteerism. He has been in the insurance industry over 35 years and previously had his own agency in Cotati. This experience has been instrumental in his role as a board member for the Redwood Empire Municipal Insurance Fund. REMIF is a joint powers authority designed to provide insurance services to member cities in the most efficient and effective manner possible.
Councilmember Moore also serves on the Continuum of Care Committee.
Councilmember Moore’s primary goals include continuing engagement with the community to strengthen Cotati’s fiscal, environmental, and social sustainability.
City of Cotati | Fiscal Year 2022/23 Budget Page 13
12.a
Packet Pg. 399 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Population Overview
TOTAL POPULATION
7,487
.4%
vs. 2019
GROWTH RANK
190 out of 484
Municipalities in California
DAYTIME POPULATION
6,357
Daytime population represents the effect of persons coming into or leaving a community for work, entertainment, shopping, etc. during the typical workday. An increased daytime population puts greater demand on host community services which directly impacts operational costs. * Data Source: American Community Survey, 2010 Census, 2000 US Census and 1990 US Census
POPULATION BY AGE GROUP
Aging affects the needs and lifestyle choices of residents. Municipalities must adjust and plan services accordingly. * Data Source: American Community Survey, 2010 Census, 2000 US Census and 1990 US Census * Data Source: American Community Survey, 2010 Census, 2000 US Census and 1990 US Census 1990
1991
19921993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
20122013
2014
2015
2016
2017
2018
2019
2020
5500
6000
6500
7000
7500
<5 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-59 60-64 65-74 75-84 >85 City of Cotati | Fiscal Year 2022/23 Budget Page 14
12.a
Packet Pg. 400 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Household Analysis
TOTAL HOUSEHOLDS
Municipalities must consider the dynamics of household types to plan for and provide services effectively. Household type also has a general correlation to income levels which affect the municipal tax base.
* Data Source: Cotati, CA 2020
Family Households
44%
Married Couples
7%
Singles
29%
Senior Living Alone
21%
City of Cotati | Fiscal Year 2022/23 Budget Page 15
12.a
Packet Pg. 401 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Economic Analysis
Household income is a key data point in evaluating a community’s wealth and spending power. Pay levels and earnings typically vary by geographic regions and should be looked at in context of the overall cost of living.
HOUSEHOLD INCOME
Above $200,000
13%
Median Income
$86,982
Below $25,000
16%
* Data Source: American Community Survey, 2010 Census, 2000 US Census and 1990 US Census Over $200,000
$150,000 to $200,000
$125,000 to $150,000
$100,000 to $125,000
$75,000 to $100,000
$50,000 to $75,000
$25,000 to $50,000
Below $25,000
City of Cotati | Fiscal Year 2022/23 Budget Page 16
12.a
Packet Pg. 402 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Housing Overview
2022 MEDIAN HOME VALUE
$717,000
* Data Source: Cotati, CA 2022
HOME VALUE DISTRIBUTION
* Data Source: 2020 US Census Bureau
(http:/ www.census.gov/data/developers/data-sets.html), American Community Survey. Home value data includes all types of owner-occupied housing.
HOME OWNERS VS RENTERS
Cotati
44%
Rent
56%
Own
State Avg.
%
Rent
%
Own
* Data Source: 2020 US Census Bureau
(http:/ www.census.gov/data/developers/datasets.html), American Community Survey. Home value data includes all types of owner-occupied housing.
2009
2010
2011
20122013
2014
201520162017
2018
2019
2020
2021
2022
300k
400k
500k
600k
700k
800k
> $1,000,000
$750,000 to $999,999
$500,000 to $749,999
$400,000 to $499,999
$300,000 to $399,999
$250,000 to $299,999
$200,000 to $249,999
$150,000 to $199,999
$100,000 to $149,999
$50,000 to $99,999
< $49,999
City of Cotati | Fiscal Year 2022/23 Budget Page 17
12.a
Packet Pg. 403 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Cotati Provided Demographic Data
City staff have provided updated data points for the following graphic data provided herein:
- Household Analysis - using the 2020 US Census data recalculated the percentage of each household type. - Housing Overview - staff obtained the April 2021 and 2022 median home values for the City from Redfin https://www.redfin.com/city/4316/CA/Cotati/housing-market City of Cotati | Fiscal Year 2022/23 Budget Page 18
12.a
Packet Pg. 404 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Organization Chart
The citizens of our community are the start of our City government. Citizens elect and have the power to recall the City Council. City Council independently hire both the City Attorney and City Manager. The City Attorney, John Bakker, works for an outside third party legal firm that focuses on municipal law. The City Manager, Damien O'Bid, then manages the operations of the City including the 4 bargaining units; (1) Non-Rep, (2) CEA, (3) CPOA, and (4) CPOA.
City of Cotati | Fiscal Year 2022/23 Budget Page 19
12.a
Packet Pg. 405 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Fund Descriptions and Structure
The operating budget document includes City-wide information as well as information specific to each fund and each department. The City receives revenue from numerous sources, many of which have restrictions on how they can be used. Separate funds are established to account for the different types of revenues and the allowable uses of those revenues. The annual budget information is available after the publication of the annual Adopted Budget.
Accounting Basis
Governmental funds, such as the General Fund, are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, revenues are considered available if they are expected to be collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.
Proprietary funds, such as the Water and Sewer Enterprise Funds, distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with the proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise funds are charges to customers for sales and services. Operating expenses for the enterprise funds include the costs of providing services, administration costs and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
Fiduciary funds, such as the Successor Agency Fund, track assets held by the City in trust which are presented using the economic resources measurement focus and the accrual basis of accounting. Economic resources measurement focus is a method of financial reporting where statements report all inflows, outflows, and balances affecting or reflecting an entity's net position including all assets that are available to the entity, not just cash or soon to be cash assets.
City of Cotati | Fiscal Year 2022/23 Budget Page 20
12.a
Packet Pg. 406 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Descriptions & Structure of City Funds
General Fund
One of the most commonly heard terms in municipal budget discussions is the General Fund. The General Fund is the largest fund that the City of Cotati maintains. The two major revenue sources for the General Fund are Sales Tax, and to a lesser degree, Property Tax. These revenue sources are dependent on the economic environment and can fluctuate from year to year.
Sales Tax - Cities and counties administered local sales tax ordinances with varying tax rates and exemptions until 1955 when the California Legislature passed the Bradley-Burns Uniform Local Sales and Use Tax Law. This law laid the groundwork for a sales tax system that authorizes the State Board of Equalization to collect all sales and use taxes and distribute 1% of the sales tax to cities and counties. In November 2020, Cotati voters also approved Measure S, a 1% transactions and use tax. With Measure S, the total sales tax rate in the city of Cotati is 9.50%.
Therefore, the city receives a total of 2% of the 9.50% in sales tax, with Bradley Burns and Measure S.
Property Tax - State statutes provide that the property tax rate be limited generally to 1% of market value, be levied by only the County, and be shared by applicable jurisdictions. The County of Sonoma collects the taxes and distributes them to taxing jurisdictions on the basis of assessed valuations subject to voter-approved debt.
Property taxes are due on November 1 and March 1, and become delinquent on December 10 and April 10. The City receives property taxes pursuant to an arrangement with the County known as the "Teeter Plan". Under the plan, the County assumes responsibility for the collection of delinquent taxes and pays the full allocation to the City. The City recognizes property tax revenues in the fiscal year in which they are due to the City.
Other Revenue - Other General Fund revenue sources are impacted by the economic environment, but not to the same degree as sales, property, and transaction and use taxes. These other sources include; Business License Tax, Permits and Franchises, Rents; Revenue from Other Agencies, Charges for Services, Transfers from Other Funds, and Other Revenues.
Enterprise Funds
Enterprise Funds are for specific services that are funded directly through user fees. As the second-largest fund type in the City, the Enterprise Funds are fully self-supporting and are not subsidized by tax money from the General Fund.
Cotati’s Enterprise Funds include Water Operating and Capital Funds (401 & 402) and Sewer Operating and Capital funds (404 & 405).
Special Revenue Funds
Special revenues are monies received for a specifically identified purpose. Examples are Community Development Block Grants (202), Gas Tax (203), and MTC Streets (204) funds.
Capital Projects
Capital project funds are financial accounts that are used to track the building, renovating, or purchase of equipment, property, facilities, parks, and other infrastructure or information technology systems which are to be used as a public asset or to benefit the public. Examples of these funds for the City are Grants Fund (201), Capital Outlay (604), and Capital Projects (605).
Debt Service Fund
Projects This is a new fund for the City which records the accumulation of resources and payment of principal and interest on general long-term obligations and payments on contractual obligations. These debt service payments are supported by operating transfers from the General Fund and Enterprise Funds.
Internal Service Funds
Internal Service Funds account for activities that provide goods and services to other departments or funds on a costreimbursement basis.
Fiduciary Funds
The City fiduciary funds are made up of the private purpose trust fund as well as the Custodial Fund. The private purpose trust fund that accounts for all the assets, liabilities, and financial activities of the Successor Agency to the City's former Redevelopment Agency that was dissolved effective February 1, 2012. The Custodial Fund is the South Sonoma Business Park Assessment District which facilitates a special assessment debt service charged to landowners for the financing provided to develop the business park.
City of Cotati | Fiscal Year 2022/23 Budget Page 21
12.a
Packet Pg. 407 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Identification of Major Funds
In line with GASB 34, the City defines major funds as funds whose revenues, expenditures/expenses, assets, or liabilities (excluding extraordinary items) are at least 10 percent of the corresponding totals for all governmental or enterprise funds and at least 5 percent of the aggregate amount for all governmental and enterprise funds. Any other fund may be reported as a major fund if the government's officials believe that the fund is particularly important to financial statement users.
City's Budget Major Funds
The City reports the following major governmental funds:
The General Fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.
The City Capital Projects Fund consists of various types of financial resources that are utilized to build, renovate, or purchase equipment, property, facilities, including buildings, parks, information technology systems and non water/sewer infrastructure and which are to be used to benefit the public.
The 2022A Streets Projects consists of special lease bond funds to be used on streets improvement projects.
The Lease Debt Service Fund is a new debt service fund established to refund the unfunded pension liabilities.
The City reports the following major proprietary funds:
The Water Fund accounts for the operations of the City's water treatment and distribution system.
The Sewer Fund accounts for the operation of the City's wastewater collection activities.
City of Cotati | Fiscal Year 2022/23 Budget Page 22
12.a
Packet Pg. 408 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Budget Development
The budget is the City’s financial plan for delivering effective services and efficiently managing the revenues which support those services. It is an essential component of the City’s process for financial planning, management, and control. The budget is a plan of revenue and expense activities for the fiscal year and is intended to provide a clear, concise, and coordinated financial program to attain the City’s goals and objectives. Revenue estimates are derived using historical and economic data on the state and local levels.
The budget is also developed based on the following:
The community and City Council’s priorities are identified through annual strategic planning and budget workshops.
Service level prioritization, as identified by the City Manager Availability and sustainability of revenues
Legal mandates
Prioritized capital projects
Responsibilities
The Director of Administrative Services has the overall administrative responsibility for planning, coordinating, analyzing, preparing, and issuing the budget.
Each Department Director is responsible for preparing and submitting the budget for the department and its subsidiary divisions in accordance with the budget instructions.
The City Manager, in close consultation with the department directors, is responsible for making the final determination of the proposed budget to be submitted for approval to the City Council.
The City Council is responsible for setting the City’s priorities and approving the annual operating budget.
City of Cotati | Fiscal Year 2022/23 Budget Page 23
12.a
Packet Pg. 409 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Draft Resolution
City of Cotati | Fiscal Year 2022/23 Budget Page 24
12.a
Packet Pg. 410 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Budget Timeline
From October to December, the City Manager and Director of Administrative Services hold a series of planning meetings to analyze financial performance as of Mid-Year as well as determine preliminary budget guidelines for the upcoming fiscal year. The schedule below is the summary of the public planning and reporting meetings for the current budget cycle.
Feb 15, 2022
Public Strategic Planning Session
- Develop Objectives
- Budget Focus
- Strategic Projects
Apr 19, 2022
Public Budget Study Session
- General Funds
- Revenues/Expenditures
- Special Revenues
May 17, 2022
Public Budget Study Session
- Enterprise Funds
- Water and Wastewater
- Capital Projects
- General Fund Transfers for Capital Projects Impacts
Jun 28, 2022
Tentative Budget Adoption
Jul 1, 2022
Budget Installed for Fiscal Year 2022/23
Estimated Budget revised for Fiscal Year 2021/22
Oct 25, 2022
First Quarter of Fiscal Year 2022/23 Financial Reporting Jan 24, 2023
Mid-Year Budget Evaluation and Financial Reporting
Feb 21, 2023
Strategic Planning for Fiscal Year 2023/24
Mar 1, 2023
Third Quarter of Fiscal Year 2022/23 Financial Reporting City of Cotati | Fiscal Year 2022/23 Budget Page 25
12.a
Packet Pg. 411 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Cotati's Budgeting Process Video
Check out our video on What is a
City Budget ?
City of Cotati | Fiscal Year 2022/23 Budget Page 26
12.a
Packet Pg. 412 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Budget Development Process
Preparing the Budget
The budget development process is the formal method through which the City establishes its program priorities, goals, and service levels for the upcoming fiscal year. Through the budget development process, programs are established, service levels are expressed, performance measures are articulated, and resources are identified.
The City of Cotati prepares a "line item budget." The intent of this format is to provide the City Council with summarized yet detailed budget information by department. At the same time, the overall focus of the budget is on policy direction and departmental activities, with emphasis on the level and cost of each City service, what services are being proposed, and the effect of these activities on general public welfare.
From October to December, the City Manager and Director of Administrative Services hold a series of planning meetings to analyze financial performance as of Mid-Year as well as determine preliminary budget guidelines for the upcoming fiscal year. Following these planning meetings, the budget calendar is developed. The budget calendar provides a time frame for the planning and preparing of the City budget.
From January through February, the Administrative Services Department drafts the budget guidelines, instructions, supporting materials, and establishes and assigns digital department budget workbooks within the ERP system. These budget guidelines include; new budget policies for the upcoming fiscal year, department digital reports with historical actual and proposed operating revenue and expenses, and departmental variance analysis (actual year to date versus budgeted financial activity) and forecast analyses. Based on policy direction provided by the City Council through the City Manager, departments prepare their budget requests for the City Manager's review. As needed, the Administrative Services Department provides technical assistance to the department staff involved in preparing budgets for their departments. When the department budgets are completed, the department director reviews them and digitally submits them for review to the Administrative Services Department.
Simultaneously, the Administrative Services Department generates budgets for non-departmental budget items including all personnel salaries and benefits as well as nondepartmental contract services. Additionally, the Department of Public Works and Engineering updates their projections and timing of the multi-year capital project program.
The Administrative Services Department compiles the departmental budgets and adds the non-departmental budget items and salaries and benefits costs into a draft line item budget rolling up to a single City-wide budget. With the departmental input, the Administrative Services Department performs an initial analysis comparing all revenue and expenditure projections for reasonability and to ensure that they adhere to the budget guidelines and that no category has been overlooked. Using the consolidated budget, the Administrative Services Director, City Manager and Director of Public Works and Engineering run capital project funding scenarios based on the proposed multi-year capital project program. Once a scenario is reached that allows for appropriate fund reserves and compliance with City objectives, the proposed transfers of funds for meeting the funding needs for capital projects is then added to the compiled City-wide budget.
The City Manager, Director of Administrative Services, and Department Directors meet between March and the end of April to review the draft digital budget, make necessary adjustments, and determine which of the proposed new programs will be presented to the City Council for adoption. These meetings are an opportunity for each department and division to present their proposed budget and their justifications for new programs, and to enhance the City Council's knowledge of operational needs to meet City objectives. The Administrative Services Department confirms the results of the digital budget workbooks and recommendations for the City Manager's approval.
From May through June, the City Manager presents the final recommendations to the City Council as the Proposed Budget. The City Council's review includes citizen's input at public hearings and budget workshops. Upon completion of the review and all budget modifications, the budget is adopted by resolution of the City Council. The Council also adopts the City's appropriations limit in conformance with the California Constitution, Article XIIIb.
Continuous Budget Monitoring
Once in place, the adopted budget becomes the main internal control document used to monitor and manage the City’s financial position. Monthly Revenue and Expenditures Reports are provided to department directors indicating revenue and expenditures for the month and year to date. This data is intended to help department directors control expenditures and track revenue. Department directors review the reports and investigate significant variances between actual revenues and expenditures and the budget projections. During this review, additional fund requirements may be City of Cotati | Fiscal Year 2022/23 Budget Page 27
12.a
Packet Pg. 413 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) identified for specific items or projects that were unforeseen at the time of initial budget adoption. Accordingly, recommendations for additional appropriations are considered by the City Manager, submitted for approval to the City Council, and adjusted within the budgetary software by the Administrative Services Department.
Generally, the budget is formally amended at mid-year and at year-end. Additional appropriations, which were approved during the year, are added to the Adopted Budget and presented to the City Council as the Amended Budget. After Council's review, the Amended Budget is adopted by resolution.
City of Cotati | Fiscal Year 2022/23 Budget Page 28
12.a
Packet Pg. 414 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Budgeting 101 FAQ's
WHAT IS A MUNICIPAL BUDGET?
A municipal budget is a legally required management and planning tool to forecast expenditures and revenues the City will incur in the upcoming fiscal year. It is neither actual revenue nor actual expenditures, but a tool to plan for the desired level of expenditures with the expected level of revenue. The budget is constantly monitored throughout the year to make adjustments so that at the end of the year the budget is in balance.
WHO DEVELOPS THE CITY BUDGET?
Each year the City Council and City staff work together to develop an Annual Budget with public input through a series of public strategic planning and budget workshops in the spring. While the Budget is being created, all parties must make decisions on how to utilize the finite amount of revenue that the City receives in order to produce the greatest benefits for the citizens.
WHAT DOES THE CITY BUDGET DO?
The Budget serves as a guide and an outline of how the funds should be spent to provide, maintain, and improve services to the City. The City Council, City staff, and the public all serve as participants in its creation and execution. The City is limited by the number of resources available, and as such, the Budget aids officials in determining which objectives have the highest priority and will produce the greatest positive impact on the community. Budgets are also created for linking near-term goals with available resources while keeping in mind long-term goals and resources.
HOW IS THE BUDGET CREATED?
The budget is created by first establishing the goals and priorities for the City as determined by the Council during annual strategic planning meetings with City staff and the public. Once these goals are determined, a draft is created to accomplish those goals and priorities. Actual expenses and revenues from past years are also analyzed and reviewed to aid in forecasting expenses and revenues. The draft Budget is then discussed in a series of public workshops to receive additional input from the City Council and the public. The Budget must be formally adopted by the City Council by June 30th each year. Once the City’s budget is adopted by the Council, the budget becomes an essential oversight tool in the city’s operations.
WHAT IS A CAPITAL IMPROVEMENT PLAN?
A multi-year capital improvement plan is a plan created by the City to identify needed construction projects and equipment purchases. This plan provides a timetable for construction phases as well as requirements for funding sources. The multi-year capital improvement plan includes City projects such as park improvements, street pavement maintenance, sewer and water system improvements, traffic signal and street lighting installations, and City facility construction or improvement.
City of Cotati | Fiscal Year 2022/23 Budget Page 29
12.a
Packet Pg. 415 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Basis of Budgeting
A municipal budget is a legally required management and planning tool to forecast expenditures and revenues the City will incur in the upcoming fiscal year. It is neither actual revenue nor actual expenditures, but a tool to plan for the desired level of expenditures with the expected level of revenue. The budget is constantly monitored throughout the year to make adjustments so that at the end of the year the budget is in balance.
The budget is prepared in accordance with Generally Accepted Accounting Principles. The budgets for all funds have been prepared on a modified accrual basis. The modified accrual basis recognizes expenditures at the point in time when the related fund liability is incurred, not necessarily when the liability is actually paid. Revenues are recognized when they become both measurable and available. “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Each fund is estimated prior to the end of the fiscal year utilizing the same basis of accounting that is used for the same fund within the final audited financial statements once the Fiscal Year is closed.
City of Cotati | Fiscal Year 2022/23 Budget Page 30
12.a
Packet Pg. 416 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Financial Policies Summary
Financial policies are essential and central to a strategic, long-term approach to financial management of the City by the elected officials and staff. Financial policies also create and define a shared understanding of how the City will develop its financial practices and manage its resources to provide the best value to the community and provide structure, boundaries and limits on the actions City staff may take. The formal adoption of financial principles and policies promotes public confidence, enhances transparency and provides continuity over time.
The financial policies provide a structured, central repository for a variety of fiscal policies and are organized into the following categories including; General Financial Principles, Annual Operating Budget Policy, Capital Improvement Program, Revenues, Expenditures, Cash Management, Debt Management, Fund Balances, Financial Reporting, and Review and Updates. Additional financial policies that are approved separately from the financial policies include; the Reserve Policy, Investment Policy, Unfunded Accrued Liability Management Policy, Purchasing Policy and Capital Asset Policy. Please see the full financial policies attached below or on our city website here .
Reserve Policy
The Government Finance Officers Association (GFOA) recommends that city governments maintain an unrestricted General Fund balance of no less than 2 months of regular General Fund operating revenues or regular General Fund operating expenditures. This amounts to 16.7% of either General Fund operating revenues or regular General Fund operating expenditures. The reserve policy adopted by the Cotati City Council maintains a minimum of 25% of the annual operating expenses, thus exceeding the GFOA recommendations. This policy ensures there are funds available for significant, unanticipated events since these reserve funds can only be used with a majority vote of the City Council, and for specific circumstances (see Cotati Financial Policies attachment below, pdf pages 15-17).
Investment Policy
The Investment Policy of the City guides investment of public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the City, while conforming to all state and local statutes governing the investment of public funds (see Cotati Financial Policies attachment below, pdf pages 18-24).
Unfunded Accrued Liability Management Policy
The Unfunded Accrued Liability Management Policy was added to the City in order to add fiscal discipline and promote future financial stability. This policy developed budgetary actions to facilitate accelerated payoff of future Unfunded Accrued Liabilities (UAL) and is structured to ensure that all pension funding decisions are structured to protect both current and future taxpayers, ratepayers, employees and residents of the City (see Cotati Financial Policies attachment below, pdf pages 25-35).
Purchasing Policy
The City Purchasing Policy outlines the purchasing procedures that apply to all City purchases, including proper procurement, competitive bidding, contract services, recycled products and local vendor preference, credit card management, and emergency exemptions (see Cotati Financial Policies attachment below, pages pdf 36-60).
Capital Asset Policy
The Capital Asset Policy conveys the proper and approved financial treatment of expenditures for assets, and establishes thresholds in financial reporting. In addition, the asset policy defines specific controls over the safeguarding and maintenance of all assets in order to reduce the risks of loss through theft or mismanagement (see Cotati Financial Policies attachment below, pages pdf 61-73).
Summary
These policies will be updated periodically, but are designed with a long-term perspective and provide the basic framework and road map for addressing a wide variety of financial and economic conditions that the City will encounter. A fiscal policy supports long-term planning and enhances the City’s effectiveness in implementing longterm strategies to deliver efficient services to the public. See the attachment below for copies of the adopted financial policies and financial procedures in place for the City of Cotati as of June 28, 2022.
City of Cotati | Fiscal Year 2022/23 Budget Page 31
12.a
Packet Pg. 417 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) GFOA Budget Award
The City of Cotati staff are the proud recipients of their fifth consecutive Distinguished Budget Awards from the Government Finance Officer Association (GFOA) and the California Society of Municipal Finance Officers (CSMFO).
This represents a significant achievement by the City and reflects the commitment of the City Council and staff to meet the highest principles of governmental budgeting. In order to receive the budget awards, the City had to satisfy nationally recognized guidelines. These guidelines are designed to assess how well an entity's budget serves as:
• a policy document
• a financial plan
• an operations guide
• a communications device
City of Cotati | Fiscal Year 2022/23 Budget Page 32
12.a
Packet Pg. 418 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) CSMFO Budget Award
California Society of Municipal Finance Officers (CSMFO) is California’s premier statewide association that promotes excellence in financial management through innovation, continuing education and the professional development of its members. The CSMFO Budget Awards Program is designed to recognize those agencies that have prepared a budget document that meets the highest criteria and standards applied to municipal budgeting.
City of Cotati | Fiscal Year 2022/23 Budget Page 33
12.a
Packet Pg. 419 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23)
BUDGET OVERVIEW
City of Cotati | Fiscal Year 2022/23 Budget Page 34
12.a
Packet Pg. 420 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Executive Overview
This overview provides a summary of the significant budgetary items and trends for the City of Cotati as of budget adoption.
As this is a summary, users of the budget should also refer to detailed information as provided within the fund and department summary pages. The City additionally provides a budget in brief document as a very high level summary on what is going on in our City right now and the financial implications.
City of Cotati | Fiscal Year 2022/23 Budget Page 35
12.a
Packet Pg. 421 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Economic Outlook & Intergovernmental Considerations
Just over three years ago, the World Health Organization declared the COVID-19 outbreak a pandemic. As the global, national and local economy continue towards recovery, the impacts of the Russia-Ukraine conflict and inflation risks now dominate the economic outlook. These major global incidents have caused unforeseen and ongoing economic impacts globally which are even felt at our local level. Overall, Cotati has benefited due to resilient revenue sources which for Fiscal Year 2022/23 estimates a 6% increase in City revenues compared to the adopted budget for fiscal year 2021/22. This is due to increased recovery in sales taxes, continued economic development efforts, and increased fees related to costs of services provided. For more information, see the funding sources section of the budget document. Alternatively, City expenditures have been more directly impacted by the global economic crisis. Overall, the City is projecting continued significant increases in costs related to insurance, materials, equipment replacement, and other professional contract services. For more information, see fund summaries pages and department summaries pages.
National
As geopolitical tensions continue to evolve quickly in unexpected ways, the implications for global economies are highly uncertain. In the near term, the Russian-Ukraine conflict is likely to weigh on economic activity for most parts of the emerging world and raise inflationary pressure broadly. Due to federal financial relief, pent-up consumer demand is at the core of the highest pace of inflation in the United States in 40 years, currently 7% and likely to climb even higher in the coming months. While there are certainly families and individuals being hurt by today’s inflation, the average American household is continuing to spend due to possible concerns about future supply chain issues and availability of stock. Overall consumer spending has been growing faster than U.S. GDP for 5 years running, and it is not expected to slow. This may feel encouraging for postCOVID relief. However, in the long term consumption will have to normalize with production and availability of inventory in order to slow inflation.
Real economic growth in the United States decreased at an annual rate of 1.5 percent in the first quarter of 2022 despite the massive $1.9 trillion of stimulus the Federal government injected into the economy to reduce unemployment and over $365 billion into state, local and tribal governments to spur capital and infrastructure programs. As outlined in the Q2 2022 Economic Update as provided by the S&P Global Ratings Agency, the U.S. GDP growth forecast is 3.2% for 2022 and 2.1% for 2023, a decline from their original forecast of 3.9% and 2.7% respectively. While still positive growth, economists believe the U.S economy will continue to suffer higher prices and supply side shortages of labor and goods, further amplified by the Russian sanctions and thus forcing the Federal Reserve to increase rates to hinder growth into next year.
According to data from the Federal Reserve’s Flow of Funds, U.S. households were $30 trillion richer at the end of 2021 than they were just two years earlier. This surge in wealth would typically drive even greater increases in spending, but that’s being stymied by supply chain problems and labor shortages. While global gas and other energy prices have soared, lower-income households are hit harder by higher prices. For instance, higher gasoline prices dent household purchasing power overall, but spending on energy as a percentage of disposable income for low-income households is about 5 times that of high-income households. After accounting for overall national inflation, a real price index of gasoline through January 2022 shows prices were still 30% lower than they were throughout all of 2021.
Nationally, the unemployment rate is just over its pre-pandemic level of 3.6% and is expected to reach its pre-pandemic level by second-quarter 2022. According to the US Bureau of Labor Statistics in the month of May 2022, the most notable job gains occurred in leisure and hospitality, in professional and business services, and in transportation and warehousing. Employment in retail trade still continued to decline. During the same period, average hourly earnings for all employees on private non-farm payrolls rose by 10 cents, or 0.3 percent, to $31.95 and over the past 12 months the average hourly earnings have increased by
5.2 percent. Nationally, it is expected that the unemployment rate will remain around 3.60 percent through 2022 and 2023 and increase to 3.80 percent into 2024.
State
The California economy experienced a statewide economic crisis consistent with the national economy. However, in 2021, California resumed its economic growth trajectory. It is estimated that in 2022, California's GDP increase should be in the 5.0-
6.0% range. According to Beacon Economics, California continues to lag the nation in its employment recovery. The State unemployment rate as of April 2022 was 4.6%, down from 8.3% a year prior in April 2021. The largest contributor to job gains was leisure and hospitality, specifically full service restaurants. As of April 2022, there were still 299,600 fewer people employed in the state compared to February 2020.
The labor market in California has suffered from a continued shortage due to reduced international migration into the job market and domestic migration out of California. In order to attract or retain workers, California had a nominal wages growth of 5% in 2021. However, due to offsetting increased inflation, real wages in the state were negligible. In order to also support City of Cotati | Fiscal Year 2022/23 Budget Page 36
12.a
Packet Pg. 422 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) the increasing demand for workers, California has focused on addressing the housing scarcity. During 2021, the median home price increased by over 20% to above $650,000, double the national figure. With increased inventory and increasing interest rates being implemented to combat inflation, it is expected the housing prices appreciation will start to contract.
County
For Sonoma County, the economy is steadily recovering. April’s unemployment rate was 2.6%, down from 6.2% in April 2021, and 0.2 percentage points below the pre-crisis low of 2.8% in February 2020. According to the Sonoma County Economic Development Board, gross metro product is expected to increase from the calendar year 2021 total of $30.1 billion to $31.5 billion by 2022. House prices continue to rise, just slightly above the California rate. Our County has long been dealing with housing shortages exacerbated by the 2017, 2019, and 2020 fires. Housing permits have increased tremendously in 2021, and are expected to continue through 2022, particularly for multi-family housing. The recent surge in housing permits may be due to rebuilding efforts. Payrolls in the tourism industry are up 60% in 2021 from the prior year. COVID-19 had a massive impact on the tourism industry, and its recovery will continue to be dependent upon consumers’ willingness to travel with increased costs of gas. It is expected that Sonoma County will continue to benefit due to its proximity to highly populated areas and higher comfort levels and decreased costs to travel by car rather than plane.
Cotati
Our City was not unaffected by the significant impacts due to COVID-19, and we are steadily climbing back to the pre-COVID projections. However, a significant revenue source for City operations was secured due to citizen turn out in November 2020 when voters came out strongly in support of Measure S, a 1% transaction tax dedicated to vital resources to maintain the City Operations. Even with this key funding stream secured, the City continues to focus on maintaining sufficient operating reserves, while securing and diversifying revenues to ensure revenue stability and to provide long term funding for priority community services and infrastructure, and debt repayments. With a continued strategy of economic development, the City is (1) supporting hotel development in order to create meaningful Transient Occupancy Taxes (TOT) income and bring visitors into local Cotati businesses to support our existing business community, (2) supporting the continued development of the cannabis industry in Cotati, which will provide new revenue through the local cannabis business tax, and (3) focusing on economic development in key areas of the City to support existing businesses and promote new development in the Northern Gateway and Highway 116. Development of these areas will provide new services for residents and further shore up the economic foundation of Cotati. With this economic strategy in place, the City will be able to better serve its residents and diversify the revenue to provide more revenue stability into the future.
City of Cotati | Fiscal Year 2022/23 Budget Page 37
12.a
Packet Pg. 423 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) City Government Highlights & Trends
General Funds Highlights and Trends
Total Operating Revenues for Fiscal Year 2022/23 are budgeted at $10.1M; a 6.6% decrease over Fiscal Year 2021/22 adopted budget and a 0.3% decrease over the Fiscal Year 2021/22 estimated actual revenues.
The adopted budget for 2021/22 had $1.4 Million, or 12.7% of all general fund revenues, in anticipated one time federal ARPA grant funds.
Other slight decrease is due to conservative estimates of decreased charges for services in both public works and community development as future development projects are uncertain at this time.
Future revenues are expected to increase consistent with historical trends with slight increases in the remainder of 2021/22 driven by Sales Tax receipts. Over 58% of the General Fund revenues are due to Sales Tax and these types of revenues are anticipated to remain strong while inflation increases and consumer demands still remain strong. See funding sources section for more information.
Total Operating Expenses for Fiscal Year 2022/23 are budgeted at $8.8M, a 33.3% decrease over Fiscal Year 2021/22 estimated actual and a 1.3% increase from the adopted budget.
The increase in estimated actual budget for Fiscal Year 2021/22 is due to the $4.8M Additional Discretionary Payment (ADP) to CalPERS for the City's unfunded pension liability. It is estimated that the refunding of this debt could ultimately save the City Approximately $2.3 million over the next 23 years.
Adjusting for the one time contribution, the budgetary increase is primarily due to:
General City-Wide Insurance estimated to increase 52%
Staffing Costs increased 10% based on budgeting for (1) Full Employment, (2) Negotiated MOU COLAs, (3) Scheduled Step Increases, (4) Continued Lump Sum payments to CalPERS, Average increased cost of all other contract services of 6%.
For more information on the General Fund Revenues, Expenditures, and Fund Balances, please see the detailed fund summary page.
City of Cotati | Fiscal Year 2022/23 Budget Page 38
12.a
Packet Pg. 424 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Enterprise Funds Highlights and Trends
Water Fund
Revenues for Fiscal Year 2022/23 are estimated to decrease by approximately 2.5% over the Fiscal Year 2021/22 estimated actuals but an 8.3% increase from the adopted budget for the same 2021/22 year. Expected changes for the revenues are the following:
Increased rates for both consumption and base fees as proposed to City for approval as part of the multi-year rate study programs. Water rates are determined by the cost of delivering water and maintaining infrastructure and equipment in order to properly treat and distribute water to our customers.
City estimated consistent water consumption with prior year as we continue to be in a drought.
Reduced development impact fees for connection to City Services as development projects are uncertain at this time.
Operating Expenditures for Fiscal Year 2022/23 are estimated to decrease by approximately 33.2% over the Fiscal Year 2021/22 estimated actuals but an 0.2% decrease from the adopted budget for the same 2021/22 year. The increase in estimated actual budget for Fiscal Year 2021/22 is due to the $1.0 million Additional Discretionary Payment (ADP) to CalPERS for the City's unfunded pension liability. Expected changes in expenditures compared to the prior year budget are primarily due to change in allocation of staffing services, slight decrease of utility costs due to reduced city well usage, and reduced aqueduct water purchases due to continued efforts to reduce water usage, offset by increases in insurance premiums.
Capital and Other Uses for the proposed budget year 2022/23 include:
Balloon final payment of interfund loan to the Sewer fund for approximately $550,000 New Interfund Debt Service Back to General Fund for UAL Contribution Proposed Capital Project and Equipment Improvements: Water SCADA - $15,000 – Meter Replacements SCADA Server Upgrade & Relocation - $150,000
P-1: Portal, Mercantile, Aaron Replacement - $608,900
Sewer Fund
Revenues for Fiscal Year 2022/23 are estimated to increase by approximately 18.2% over the Fiscal Year 2021/22 estimated actuals but an 10.0% increase from the adopted budget for the same 2021/22 year. Expected changes for the revenues are the following:
Increased rates for both usage and base fees as proposed to City for approval as part of the multi-year rate study programs. Currently in Prop 218 notice, pending public hearing anticipated on June 14, 2022 meeting. Wastewater rates are determined by the cost of processing wastewater and maintaining infrastructure and equipment.
City estimated consistent wastewater consumption with prior year as we continue to be in a drought which restricts water usage and thus wastewater treatment requirements.
Reduced development impact fees for connection to City Services as development projects are uncertain at this time.
One-time lump sum payoff of interfund loan from the Water fund for approximately $550,000.
Operating Expenditures for Fiscal Year 2022/23 are estimated to decrease by approximately 18.5% over the Fiscal Year 2021/22 estimated actuals but an 11.0% increase from the adopted budget for the same 2021/22 year. The increase in estimated actual budget for Fiscal Year 2021/22 is due to the $1.0 million Additional Discretionary Payment (ADP) to CalPERS for the City's unfunded pension liability. Expected changes for the expenditures compared to prior year budget are primarily due to change in allocation of staffing services, increased cost of insurance and increases in costs for wastewater treatment and subregional debt service paid to the wastewater treatment plant.
Capital and Other Uses for the proposed budget year 2022/23 include:
New Interfund Debt Service Back to General Fund for UAL Contribution Proposed Capital Project and Equipment Improvements: Water Road Replacement - $1,100,000 Manhole Lateral Repair & Improvements - $96,000
SCADA Server Upgrade & Relocation - $150,000
For more information on the Enterprise Funds Revenues, Expenditures, and Fund Balances please see the detailed funds summary pages.
City of Cotati | Fiscal Year 2022/23 Budget Page 39
12.a
Packet Pg. 425 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Internal Service Funds Highlights and Trends
Vehicle Replacement Fund - For Fiscal Year 2022/23, the vehicle replacement fund schedules replacements to be funded by other funds in order to cover maintenance costs as well as fleet replacement. This is calculated per the vehicle replacement schedule. The City is dedicated to environmentally conscious procurement and as such will continue evaluation of appropriate fleet purchases with possible cost equivalent electric vehicles in place of the standard gas combustion replacements.
Compensated Absences Fund – This fund was established for Fiscal Year 2019/20 to fund the payouts for compensated absences (primarily accrued employee leave and vacation time). For Fiscal Year 2022/23 we are continuing to use this fund to reduce outstanding deferred compensation unfunded liability, as well as removing this episodic expense from the annual operating budgets.
For more information please see the detailed funds summary pages.
City of Cotati | Fiscal Year 2022/23 Budget Page 40
12.a
Packet Pg. 426 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Capital Projects Funds Highlights and Trends
Continue to Prioritize Postponed Projects
Street Improvements and Safety for $10.6M
Park Improvements for $2.3M
Buildings Revitalization $1.0M
Maximize Possible Grant Funding
Specific Landscaping & Lighting District Projects
of $45K
See multi-year capital improvements plan for more
details.
Overview of Significant Fund Balance Changes
Overview of funds with Fund Balance Changes greater than 10% and $20,000 in Fiscal Year 2022/23 General Fund balance has a decrease of approximately $1.1M or 16%, primarily due to increased investment in capital projects with $3.6M in transfers out for Capital Projects.
General Capital Outlay Fund balance (Fund 604) is anticipated to decrease approximately $29K or 850%. This fund exclusively funds project work, and therefore routinely has large swings in fund balance as projects occur. 2022A Streets Projects Fund balance (Fund 610) is anticipated to decrease approximately $6M or 100%. This fund exclusively funds streets project work, and therefore is expected to be fully utilized for significant projects programed in fiscal year 2022/23.
Gas Tax Fund balance (Fund 203) is anticipated to increase by approximately $79K or 770%. This fund exclusively funds project work, and therefore routinely has large swings in fund balance as projects occur.
Traffic Mitigation Fund balance (Fund 205) is anticipated to decrease approximately $380K or 97% as these development impact fees are utilized towards relevant traffic mitigation capital/streets improvements.
Park In-Lieu Fund balance (Fund 206) is anticipated to decrease $119K or 383% due to required transfers of funds to capital projects scheduled at City parks.
Excess Bond Proceeds balance (Fund 219) is anticipated to decrease $89K or 100%, based on usage for strategic investments and the Park and Ride Lot Replacement Project and other economic development projects as needed.
Bed Tax balance (Fund 222) is anticipated to decrease $36K or 99% based on the use of funds for parks improvement projects.
Parks Measure M balance (Fund 225) is anticipated to decrease $175K or 99% based on the use of funds for parks improvement projects. Water Funds 401-403 balances are anticipated to have a net decrease of approximately $1.3M or 70% over the prior year.
This is primarily due to capital infrastructure projects and lower anticipated connection fees to be received from development projects.
Sewer Funds 404-405 balances are anticipated to have a net decrease of approximately $1.1M or 16%. This is primarily due to lower anticipated connection fees to be received from development projects, increased sewer treatment costs, and continued capital infrastructure improvements.
City of Cotati | Fiscal Year 2022/23 Budget Page 41
12.a
Packet Pg. 427 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Fiscal Year Comparisons
For Fiscal Year 2019/20, the short term goals of the City were focused on improving its operations and transparency through a host of initiatives for the community, including a Popular Annual Financial Report (PAFR), the cable broadcasting of City meetings, and neighborhood police beats. The City Council also focused on improving its services by investing in technology like the Incode Water and Sewer billing Notifications systems, as well as other professional services contracts to create efficient building inspections and permit checks. A significant effort was also placed on improvement of vital City infrastructure, with an estimated $4.3M in capital improvement projects, including $3.6M in Street Construction & Improvements. This was all while maneuvering through multiple significant emergencies, including the PG&E Power Outrages in October 2019 which had the City’s power out for more than 5 days during the Kincade fire, and the continuing emergency of COVID-19.
For Fiscal Year 2020/21, we continued to focus on strategic improvements to City services to reach the community and assist during these times of extreme uncertainty. We looked for ways to strategically invest in infrastructure all while focusing on a first tier of projects that have grant matching programs, improve safety, or are relatively low cost with high benefit. Using this strategy, we were able to bid a major street project and save approximately $1.3M compared to engineer estimates. We also continued to push forward key development and housing agenda items, including ADU ordinances and a housing survey for the City. Completion of these objectives as well as continued work on a cottage housing ordinance will place the City in a strong position for appropriate growth and development going into the future.
For Fiscal Year 2021/22, the City continued pushing forward on projects delayed during the COVID-19 crisis. Major Projects the City completed included over $4 million in both a full rehabilitation project on the West Side of the city and street preservation program through the 'birds' section. By focusing on reinvestment in streets over the next 5 years, the City can then transition to a maintenance program for City streets, thus reducing future costs for infrastructure significantly. The investments in these improvements would not have been accessible for the future if it weren't for another major accomplishment for the City, the significant financing strategy that was implemented in obtaining new financing for streets as well as refinancing the outstanding UAL pension debt with CalPERS. This has led to estimated future cost savings of over $6 million. For the enterprise funds, the City performed the rate analysis which includes recommendations for adjusting the water and sewer rate schedules that are designed to provide necessary revenues to meet each utility’s needs to cover operating and maintenance costs, meet debt service obligations, and support the capital projects necessary to rehabilitate and upgrade the water and sewer systems, and maintaining prudent financial reserves.
For Fiscal Year 2022/23, the City is going to continue focusing on the strategic objectives as set out by the City Council to support a beautiful, safe, and stable City with a transparent government.
City of Cotati | Fiscal Year 2022/23 Budget Page 42
12.a
Packet Pg. 428 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) City General Plan Mission
To create a healthy, livable and sustainable community that offers a high quality of life, while maintaining Cotati's small town identity.
Our Vision
Vision 1 - QUALITY OF LIFE: To preserve Cotati's rural heritage and small-town atmosphere while ensuring new development reinforces both the quality and economic vitality of the community. To maintain Cotati's urban growth boundaries.
Vision 2 - ECONOMIC DEVELOPMENT: To provide a climate that promotes existing business and encourages new businesses to locate in our community.
Vision 3 - FINANCIAL STABILITY: To become a self-reliant community with a sound economic base. To have a balanced City budget that prudently manages the City's financial resources and provides for appropriate reserves.
Vision 4 - COMMUNITY SAFETY: To protect the health and well-being of the community by partnering with our citizens to provide a safe and secure environment.
Vision 5 - INFRASTRUCTURE: To provide adequate streets, sidewalks, sewer and water systems, parks, bike paths, and public buildings and ensure they are maintained at the highest possible level.
Vision 6 - CITY BEAUTIFICATION: To enhance City Gateways and remove blighted conditions. To encourage development which reflects the City's commitment to quality design, preservation of trees and generous use of landscaping Vision 7 - ENVIRONMENTAL CONCERNS: To work with developers and citizens to incorporate environmentally "friendly" materials and "green" building techniques in all new construction, as well as renovation projects. To continue to encourage the community to reduce, reuse and recycle.
Vision 8 - CITIZEN PARTICIPATION: To encourage citizens to become actively involved in the decision-making process and serve on City boards and commissions. To include the participation of volunteers in our community festivals and events.
City of Cotati | Fiscal Year 2022/23 Budget Page 43
12.a
Packet Pg. 429 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Strategic Objectives
At the strategic planning sessions on February 15, 2022 as well as the Budget Study session on April 19, 2022 the City Council finalized the following Strategic Objectives. These goals and objectives were then utilized to focus departmental goals and projects.
City of Cotati | Fiscal Year 2022/23 Budget Page 44
12.a
Packet Pg. 430 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Short-term Factors
City staff continue to be cautious and responsible in developing a budget that strives to improve service levels, while developing a phased capital project plan, and preserving appropriate operating reserves. In preparing departmental budgets for the new fiscal year, department directors are instructed to analyze their departmental goals and their correlating expenditures. This process includes an evaluation of each department for possible cost savings, cost sharing, or possibilities for grants/donations.
The Administrative Services Department assisted each department with calculations of key factors that were assumed to affect each individual department’s budget, including but not limited to:
Assist in revenue estimations based on known or anticipated developments and economic factors Human Resources adjustments due to labor agreements, pension payments, employee turnover due to retirements, and internal position changes.
Determining if new or ongoing contract services will have Citywide benefit, and therefore be allocated using a reasonable basis, or if the service is exclusively for a certain department and will therefore be charged directly to the lead department.
Estimating unknown expenditures for utilities, general insurance, or legal counsel.
Debt payments and tentative investment earnings
The 2022/23 City budget continues to recognize the need for a conservative approach to managing expenditures while providing a balance of maintaining existing high-quality programs, services and infrastructure, to best meet the goals and priorities of the City and its community partners. Additional service level changes for the individual departments are described within the departmental summary sheets and the service level changes for capital project evaluations are included within the capital improvements section.
Strengths ,Weaknesses, Opportunities, and Threats
City of Cotati | Fiscal Year 2022/23 Budget Page 45
12.a
Packet Pg. 431 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Priorities & Issues
The budget continues to meet the prudent financial reserve goals of City Council, which calls for a General Fund operating contingency reserve of not less than 25% of the total General Fund operating budget for the fiscal year (Resolution 2009-50). The adopted budget includes a reserve level that continues to exceed this goal set by City Council.
Although the current year budget continues to meet the City Council reserve policy, the City still faces some medium and longer term challenges:
Cotati Priorities
The Priorities as outlined in the City Council Objectives and City Managers Message along with the department units goals and objectives as outlined in their strategic projects and goals:
City of Cotati | Fiscal Year 2022/23 Budget Page 46
12.a
Packet Pg. 432 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Cotati's Issues
Although the current year budget continues to meet the City Council reserve policy, and Measure S was approved by voters, thus securing a vital City revenue source, the City still faces some medium and longer term challenges:
Economic Development: Due to anticipated growth slowdown for Property Taxes due to the Proposition 8 recapture and insufficient diversification of revenue, the City is focused on diversifying the current sources of revenue to provide a more stable and resilient general fund. Economic development also continues to grow the local economy, adds new goods and services locally, creates new jobs and contributes taxes to support services for our community. This is complemented by General Fund reserves, which provide financial stability and allow the City to respond to changes in revenue projections, expenditure needs, and unforeseen economic erosion or expansion. Both the City Managers Department and the Community Development department are continuing to develop ongoing strategies to diversify the revenues and continue to expand the appropriate growth in line with the City's character.
Staffing Continuity and Succession Planning: The City is continuing to struggle to regain pre-pandemic employment levels. The issue is twofold, with first the loss of current staff, including senior employees retiring from the City or staff being recruited to move to other outside agencies. Secondly, the current hiring practices for local government do not seem to be enough to meet the expectations of potential candidates. While full staffing is always a desire for the City, it is expected to become even more difficult to fill positions as unemployment numbers decrease. The City Managers Office continues to work with each Department Director to provide enticing promotional position information for recruiting.
Disaster Response: The City has been lucky over the last decade to have not been subject to the significant losses and destruction that impacted other major areas within Sonoma County. This does not mean that we are immune. While we have made significant investments in backup systems, we must make strategic plans to address possible future catastrophic potential impacts from public safety power shutoffs, fire, earthquake, ongoing drought, or even technology systems' data breaches.
City of Cotati | Fiscal Year 2022/23 Budget Page 47
12.a
Packet Pg. 433 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Long Range Financial Plans
Although the adopted budget is an annual budget, the City is implementing tools to look beyond the one year, to make sure it can sustain operations and meet the long-term goals established in the comprehensive plan. To ensure long-term sustainability, the City's budgets follow these financial-related goals:
Maintain an operating reserve of at least 25 percent for the General Fund and 33% for the Enterprise Funds Continue implementing best financial practices
Use technology to streamline and automate business practices to help keep up with the demand for services Contribute full funding for annual UAL pension funding and will evaluate and fully implement the unfunded liability management policy in Fiscal Year 2022/23
To make sure the City is on the right financial track, the city has an objective formalizing the Long-Term Financial Outlook that forecasts operating expenses and revenue for the next 10 years for the General Fund to correlate with the currently implemented 5 year outlook for the capital expenditures plan (CIP Schedules) for both the General and Enterprise Funds.
In addition to the operational outlook, a capital plan has been developed to address the needed infrastructure for the next five years. The summary of the long term capital plan summary can be found in the section after the long-term financial planning as well as within the Multi-Year Capital Improvements Section. Funding for these projects is also forecasted to make sure that the projects can be completed with no General Fund debt.
Long-term Financial Planning
Long-term financial planning is the process of aligning financial capacity with long-term service objectives.
With this planning, the City can use simple forecasts to provide insight into future financial capacity in order to meet future objectives, including capital planning, as well as secure operations of core services in case of future instability. City staff are currently working on a 5-year proforma budget. Many governments have a comprehensive long-term financial planning process because it stimulates discussion and engenders a long-range perspective for decision makers. Below is a snapshot of the estimated revenue and expenditure projections for 5-years for the General Fund, as well as the combined Enterprise Funds.
City of Cotati | Fiscal Year 2022/23 Budget Page 48
12.a
Packet Pg. 434 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Long Term Capital Planning
The first step in long range capital planning is identifying community needs and desires. The City is continuing to develop ongoing capital asset life cycle replacement schedules including the vehicle & equipment replacement fund as well as preparation of the 5-year capital improvement program for both government and enterprise major infrastructure. City staff also analyze the assets that are noted for possible aging to determine when or if replacements are required. These schedules assist programing funds needed for the replacement or refurbishment of these major assets. Within the multi-year plan for capital improvements there is additional information to identify future service needs and maintenance, possible cost savings due to project implementation, as well as possible increases in revenue.
Other items that are considered when initiating major capital expenditures include the following:
Do these infrastructure improvements meet economic development needs or provide great public benefit? Does it meet City policy within the General Plan?
Did we incorporate input and participation from major stakeholders and the public? Will this project provide additional revenue-generating potential? What are the non-financial impacts of the project, including local and global environmental impacts? City of Cotati | Fiscal Year 2022/23 Budget Page 49
12.a
Packet Pg. 435 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Personnel Changes
For the Fiscal Year 2022/23 the budget continues to reflect full staffing with possible changes to staffing including:
Advancement of the City Manager Administrative Analyst to a Senior Management Analyst.
Addition of City Manager Administrative Assistant to assist in continued City Operations due to the loss of City Clerk.
Addition of a second Accountant in the Administrative Services Department.
Replacement of the Community Development Limited Term Senior Planner with a part-time Associate Planner, and the addition of a part-time Planning Technician to replace the Administrative Analyst position.
Replacement of the Public Works Administrative Analyst with a part-time Engineering Technician.
Increased Police Officers numbers in part to replace the Community Services Officer who is retiring at mid-year.
Comparative Staffing Summary
City of Cotati | Fiscal Year 2022/23 Budget Page 50
12.a
Packet Pg. 436 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Staffing Detail by Department
FUNCTION / DEPARTMENT
FY 18/19
BUDGET
FY 19/20
BUDGET
FY 20/21
BUDGET
FY 21/22
BUDGET
FY 21/22
ESTIMATED
ACTUALS
FY 22/23
PROPOSED
Elected Officials *
Mayor 1.0 0.5 0.5 0.5 0.5 0.5
Vice Mayor 1.0 0.5 0.5 0.5 0.5 0.5
Council Members 3.0 1.5 1.5 1.5 1.5 1.5
Total 5.0 2.5 2.5 2.5 2.5 2.5
Staff
City Manager *
City Manager 1.0 1.0 1.0 1.0 1.0 1.0
City Clerk 1.0 1.0 1.0 1.0 0.0 0.0
Deputy City Clerk 0.0 0.0 0.0 1.0 1.0 1.0
Administrative Analyst 1.0 1.0 1.0 1.0 0.0 0.0
Senior Management Analyst 0.0 0.0 0.0 0.0 1.0 1.0
Administrative Assistant 0.0 1.0 1.0 0.0 0.0 1.0
Intern 0.5 0.5 0.5 0.5 0.0 0.5
Total 3.5 4.5 4.5 4.5 3.0 4.5
Administrative Services *
Director of Admin. Services 1.0 1.0 1.0 1.0 1.0 1.0
Senior Accountant 1.0 1.0 1.0 1.0 1.0 1.0
Accountant 0.0 0.0 1.0 1.0 1.0 2.0
Accounting Clerk-Senior 1.0 1.0 0.0 0.0 0.0 0.0
Accounting Specialist 1.0 1.0 0.0 0.0 0.0 0.0
Account Clerk 0.0 0.0 1.0 1.0 1.0 1.0
Intern 0.5 0.5 0.5 0.5 0.0 0.5
Total 4.5 4.5 4.5 4.5 4.0 5.5
Planning & Building *
Community Development Director 1.0 1.0 1.0 1.0 1.0 1.0
Senior Planner 1.0 1.0 1.0 1.0 1.0 1.0
Limited Term Senior Planner (PT) 0.0 0.0 0.0 0.3 0.0 0.0 Associate Planner (PT) 0.0 0.0 0.0 0.0 0.5 0.5
Administrative Analyst 0.0 0.4 0.4 0.4 0.0 0.0
Permit Tech 0.0 0.0 1.0 1.0 1.0 1.0
Administrative Assistant 1.0 1.0 0.0 0.0 0.0 0.0
Planning Technician 0.0 0.0 0.0 0.0 0.0 0.5
Intern 0.0 0.0 0.0 0.0 0.0 0.5
Total 3.0 3.4 3.4 3.7 3.5 4.5
Public Works *
Director of Public Works 1.0 1.0 1.0 1.0 1.0 1.0
Civil Engineer 1.0 1.0 1.0 1.0 1.0 1.0
Administrative Analyst 1.0 0.6 0.6 0.6 0.0 0.0
Public Works Superintendent 1.0 1.0 1.0 1.0 1.0 1.0
Maintenance Worker II 2.0 2.0 3.0 2.0 2.0 2.0
Maintenance Worker I 3.0 3.0 1.0 2.0 2.0 2.0
Laborer 0.0 0.0 1.0 1.0 0.0 1.0
Engineering Technician 0.0 0.0 0.0 0.0 0.0 0.5
Intern 0.0 0.5 0.5 0.5 0.0 0.5
Total 9.0 9.1 9.1 9.1 7.0 9.0
Police Services
City of Cotati | Fiscal Year 2022/23 Budget Page 51
12.a
Packet Pg. 437 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Chief of Police 1.0 1.0 1.0 1.0 1.0 1.0
Lieutenant 1.0 1.0 1.0 1.0 0.0 0.0
Sergeant 2.0 2.0 2.0 2.0 3.0 3.0
Corporal 2.0 2.0 2.0 2.0 1.0 2.0
Officer 6.0 6.0 6.0 6.0 5.0 7.8
Community Services Officer 1.0 1.0 1.0 1.0 1.0 0.5
Police Service Aide 0.8 0.5 0.5 0.5 0.8 0.8
Dispatcher/Clerk 5.5 5.5 5.5 5.6 4.6 5.6
Reserve Officer I 1.5 1.5 1.5 1.5 0.0 1.5
Total 20.8 20.5 20.5 20.6 16.4 22.2
Recreation
Facilities/Recreation Manager 1.0 1.0 1.0 1.0 1.0 1.0
Recreation Coordinator 1.0 1.0 1.0 1.0 1.0 1.0
Recreation Leader 0.5 0.1 0.1 0.8 0.8 0.7
Camp Director 0.2 0.2 0.2 0.0 0.0 0.0
Assistant Camp Director 0.2 0.0 0.0 0.0 0.0 0.0
Camp Staff 0.6 0.4 0.4 0.0 0.0 0.0
Total 3.5 2.7 2.7 2.8 2.8 2.7
Total City Staff 44.3 44.7 44.7 45.2 36.7 48.3
Total City Officials and Staff 49.3 47.2 47.2 47.7 39.2 50.8 * Subject to allocation of labor to Enterprise and Fiduciary Funds.
City of Cotati | Fiscal Year 2022/23 Budget Page 52
12.a
Packet Pg. 438 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Appropriations Limit
Proposition 4, approved by the voters in November 1979, added California Constitution, Article XIIIB. This article limits the level of most appropriations from tax sources that the state and most local government entities are permitted to make in any given year. The limit for each year is equal to the limit for the prior year, adjusted for changes in the cost-of-living and population plus other various adjustments as required. The first year in which appropriations limits applied to state and local governments in California was Fiscal Year (FY) 1980/81.
Establishing Appropriations Limits
"The City's limitation is calculated every year and is established by resolution of the City Council as part of the Annual Operating Budget. A City Resolution was approved June 28, 2022 establishing the City of Cotati's appropriations limit.
The City's appropriations subject to the Gann Limit totals $8,834,095, which is well below the authorized spending limit of $18,355,175. Additional appropriations to the budget funded by non-tax sources such as beginning fund balances, grants or service charges are unaffected by the appropriations limit. Historically, the City's Annual Appropriations Limit has exceeded annual appropriations and the City projects the trend to continue into the future.
City of Cotati | Fiscal Year 2022/23 Budget Page 53
12.a
Packet Pg. 439 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Calculations
State of California Fiscal Year 2022/23 Population Change Per Capita Personal Income Sonoma County City of Cotati Fiscal Year
Percentage Change over
Prior Year (1)
Percentage Change over
Prior Year (1)
Percentage
Change over
Prior Year (1)
2022/23 7.55% 0.54% -1.53%
Per Capita Cost of Living Converted to Ratio: 7.55+100 = 1.0755 100
City of Cotati Population Converted to Ratio: -1.53+100 = 0.9847 100
Calculation Factor for FY 2022/2023:
1.0755 x
0.9847 = 1.0590
Fiscal Year 2021/2022 Appropriations Limit $17,332,544
Fiscal Year 2022/2023 Factor 1.0590
Fiscal Year 2021/2022 Appropriations Limit $18,355,175
It should be noted that the Appropriations Limit applies only to proceeds of taxes, as defined by the law and statewide reporting guidelines.
Tax Appropriations Subject to the Tax Appropriations Limit Tax Appropriations Total Budget for 2022/23
Property Tax $2,012,395
Sales Tax 6,070,000
Other Tax 751,700
Total Appropriations Subject to Limit $8,834,095
Appropriations Subject to Limit $8,834,095
Fiscal Year 2021/2022 Appropriations Limit
18,355,175
Over/(Under) Appropriations Limit $(9,521,080)
Percentage Over/(Under) Limit (52%)
(1) Department of Finance-Budgeting Resource Price and Population Factors Used For Appropriations Limit at:
http://www.dof.ca.gov/wp-content/uploads/Forecasting/Demographics/Documents/PriceandPopulation2022.pdf or here DOF Factors City of Cotati | Fiscal Year 2022/23 Budget Page 54
12.a
Packet Pg. 440 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Historical & Estimated Future Limits
Fiscal Year
Personal Income
Change
Population
Change Growth Factor Annual Adjustment Appropriations Limit Historical Appropriations Limits
2021/221 1.0573 0.9899 1.0466 $771,734 $17,332,554
2020/21 1.0373 0.9875 1.0243 $392,881 $16,560,820
2019/20 1.0385 0.9960 1.0343 $536,170 $16,167,939
2018/19 1.0367 0.9978 1.0344 $519,851 $15,631,769
2017/18 1.0369 1.0050 1.0421 $610,292 $15,111,919
2016/17 1.0537 1.0053 1.0593 $811,607 $14,501,625
2015/16 1.0382 1.0084 1.0469 $613,559 $13,690,018
2014/15 0.9977 1.0039 1.0016 $20,775 $13,076,459
2013/14 1.0512 1.0057 1.0572 $706,285 $13,055,686
Future Year Estimates Appropriations Limit
2023/24 1.0491 0.9912 1.0398 $730,670 $19,085,844
2024/25 1.0515 0.9899 1.0409 $779,948 $19,865,792
(2) Estimates calculated based on changes to both personal income and population change following a trending 5-year average. (2)
City of Cotati | Fiscal Year 2022/23 Budget Page 55
12.a
Packet Pg. 441 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23)
FUNDING SOURCES
City of Cotati | Fiscal Year 2022/23 Budget Page 56
12.a
Packet Pg. 442 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Property Taxes Summary
$2,012,395
$47,479
(2.42% vs. prior year)
These projected revenues are estimated to change based on the following factors. 2% Assessor’s applied CPI
Consistent change in the assessed value due to transfer of ownership Increases due to sales of new development in Fiscal Year 2019/20 and 2020/21.
Total change of around 6%
Property Taxes Proposed and Historical Budget vs. Actual Actual Budgeted
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
0 500k
1,000k
1,500k
2,000k
2,500k
City of Cotati | Fiscal Year 2022/23 Budget Page 57
12.a
Packet Pg. 443 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Revenues by Source
Revenue Source
Taxes
Property Tax
PROP. TAXCURRENT
$535,652 $559,887 $585,646 $668,036 $668,036 $669,611 0.2% PROP. TAX-CURR YR
SUPPLEM
$28,753 $25,499 $21,010 $0 $9,790 $0 -100%
PROP. TAXUNSECURED
$37,998 $42,980 $42,842 $20,803 $42,300 $20,354 -51.9%
PROP. TAX-PY
SUPPLEMENTAL
$24,241 -$24 -$19 $0 $0 $0 0%
PROP. TAX-PY
SEC/UNSEC
$473 $668 $700 $0 $0 $0 0%
PROP. TAXHOMEOWNER
EXEMP
$8,450 $8,229 $8,042 $0 $1,194 $0 -100%
PROP. TAX-INCR
RESID
$419,507 $460,357 $373,031 $510,000 $408,000 $510,000 25% PROP. TAX-IN-LIEU
OF VLF
$679,176 $715,055 $742,251 $766,077 $766,077 $812,430 6.1% PROP TAX - OTHER $31 $627 $30 $0 $0 $0 0%
Total Property Tax: $1,734,281 $1,813,280 $1,773,535 $1,964,916 $1,895,397 $2,012,395 6.2% Total Taxes: $1,734,281 $1,813,280 $1,773,535 $1,964,916 $1,895,397 $2,012,395 6.2% Total Revenue Source: $1,734,281 $1,813,280 $1,773,535 $1,964,916 $1,895,397 $2,012,395 6.2% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022
Adopted
Budget
FY2022
Estimate
FY2023
Proposed
Budget
FY2022 Est.
vs. FY2023
Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 58
12.a
Packet Pg. 444 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Property Tax Dollar Distribution
A property tax is a levy on the assessed value of a property. The general property tax is levied by the county equal to 1% of the assessed value, often called the 1 percent general tax levy or countywide rate. Under Proposition 13, a law approved by California voters in 1978, general property taxes (not including those collected for special purposes) are limited to 1% of a property’s market value and increases in assessed value are restricted to 2% per year.
For example, for a home with an assessed value of $500,000, the property owner would be assessed approximately $5,000 a year in property taxes (1% of assessed value). Of the $5,000, the city would only receive a total of $532.50 (10.65% of the 1% assessed value) from the County. California's property taxes are collected by the County Tax Collector and are then transferred to the County Auditor for distribution to the multiple local governments.
The graphic below shows where each property tax dollar paid by City property owners is allocated.
City of Cotati | Fiscal Year 2022/23 Budget Page 59
12.a
Packet Pg. 445 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Sales Taxes Summary
$6,070,000
$508,049
(9.13% vs. prior year)
The City is projecting a small increase of 2% of revenue from Sales Taxes for Fiscal Year 2022/23. This change is primarily a conservative estimate based on evaluated potential impacts from increased sales dollar transactions due to inflation and consumer demand offset by decreased cash receipts to the County Pool due to the Amazon Distribution Center reallocation of funding.
Major industry groups within the City are Building/Construction, Fuel and Service Stations, Food and Drug, and the County Pool.
Sales Taxes Proposed and Historical Budget vs. Actual
Actual Budgeted
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
0 1M
2M
3M
4M
5M
6M
7M
City of Cotati | Fiscal Year 2022/23 Budget Page 60
12.a
Packet Pg. 446 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Revenues by Source
Revenue Source
Taxes
Sales Tax
SALES TAX $2,551,875 $2,442,951 $2,883,312 $2,770,057 $2,950,000 $3,020,000 2.4% SALES TAXMEAS. A
$0 $0 $64 $0 $0 $0 0%
SALES TAXMEAS. G/S
$2,557,336 $2,558,612 $2,954,366 $2,791,894 $3,010,000 $3,050,000 1.3% Total Sales
Tax:
$5,109,211 $5,001,563 $5,837,741 $5,561,951 $5,960,000 $6,070,000 1.8% Total Taxes: $5,109,211 $5,001,563 $5,837,741 $5,561,951 $5,960,000 $6,070,000 1.8% Total Revenue
Source:
$5,109,211 $5,001,563 $5,837,741 $5,561,951 $5,960,000 $6,070,000 1.8% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023
Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
Sales Tax Dollar Distribution
Sales tax is a tax paid on the sales of certain goods and services. Currently, the total sales tax rate in the City of Cotati is 9.50%.
The City receives 2% in sales tax, with 1% Bradley‐ Burns and 1% Measure S. Sales tax from the Bradley‐Burns levy is allocated back to the City where the sale was negotiated or the order was taken. On the other hand, the transactions and use tax, or Measure S, is allocated to the City where the goods are delivered or placed into use.
The graphics below show the breakdown of the City’s sales tax:
City of Cotati | Fiscal Year 2022/23 Budget Page 61
12.a
Packet Pg. 447 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Other Taxes Including Cannabis Business Tax Summary
$751,700
$121,400
(19.26% vs. prior year)
Other Taxes including Cannabis Business tax are estimated to increase due to pending new retail operations commencing in 2022/23.
Other Taxes Including Cannabis Business Tax Proposed and Historical Budget vs.
Actual
Actual Budgeted
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
0 200k
400k
600k
800k
City of Cotati | Fiscal Year 2022/23 Budget Page 62
12.a
Packet Pg. 448 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Revenues by Source
Other Taxes
Transfer tax is a transaction fee imposed on the transfer of land or real property from one person (or entity) to another. The total transfer tax for the County and City is $1.10 ($0.55 County / $0.55 City) per $1,000 of property value, minus any loans assumed in the sale.
Cannabis Business Tax is a local voter approved business tax for recreational cannabis businesses. These tax rates are based on several factors, including gross receipts, license type and business segment.
Transient occupancy tax (TOT) is a levy placed on tourists to the City, which is intended to compensate local government for the increased public service costs incurred by serving tourists. This tax is common in most of the United States, including California, and is applied to travelers when they rent accommodations (a room, rooms, entire home, or other living space) in a hotel, inn, tourist home or house, motel, or other lodging. At this time, Cotati is the only City in Sonoma County without TOT funding, due to the absence of lodging facilities.
Revenue Source
Taxes
Other Tax
TRANSFER TAX $48,109 $32,701 $54,440 $30,000 $60,000 $41,000 -31.7% CANNABISBUSINESS TAX
$352,076 $485,777 $592,014 $600,000 $600,000 $710,000 18.3% CANNABISLICENSE FEE
$0 $0 $1,500 $300 $300 $700 133.3%
CANNABISAPPLICATION FEE
$15,000 $0 $21,000 $0 $0 $0 0%
CANNABIS-CASH
TAX PYMNT C
$1,500 $174 $0 $0 $0 $0 0%
Total Other Tax: $416,685 $518,653 $668,954 $630,300 $660,300 $751,700 13.8% Total Taxes: $416,685 $518,653 $668,954 $630,300 $660,300 $751,700 13.8% Total Revenue Source: $416,685 $518,653 $668,954 $630,300 $660,300 $751,700 13.8% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022
Adopted
Budget
FY2022
Estimate
FY2023
Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 63
12.a
Packet Pg. 449 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Licenses, Permits, Rents and Other Agency Fees Summary
$818,900
-$13,908
(-1.67% vs. prior year)
Licenses, Permits, Rents and Other Agency Fees Proposed and Historical Budget vs.
Actual
Actual Budgeted
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
0 200k
400k
600k
800k
1,000k
City of Cotati | Fiscal Year 2022/23 Budget Page 64
12.a
Packet Pg. 450 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Revenues by Source
Licenses, Permits and Franchises
A business license is a tax payment to the city for doing business in that city. Cities collect fees from the business license applicants and place the majority of the fees into its general fund for the administration of city services, such as police, road work, parks and recreation and other community services that benefit citizens and businesses.
A utility franchise is a contract between a city and a utility or garbage company that outlines certain requirements for the utility to use the city’s public rights of way and for the garbage company to have exclusive rights to provide garbage service. The establishment of franchise agreements between cities and utilities or garbage companies is a customary business practice and legal process outlined by the state constitution.
Rent
Revenue received from the rental of city owned facilities.
Revenue from Other Agencies
These revenues are amounts received from other local and state agencies Budgeted and Historical Revenues by Source
Millions
Rents
Other Agency
Licenses, Permits & Franchises
FY2017
FY2018
FY2019FY2020FY2021FY2022FY2023
$0
$0.2
$0.4
$0.6
$0.8
$1
Revenue Source
Licenses, Permits &
Franchises
$515,547 $546,010 $623,563 $551,500 $538,800 $537,900 -0.2% Rents $96,344 $101,474 $71,712 $91,000 $76,000 $77,400 1.8% Other Agency $303,488 $189,454 $200,751 $190,308 $196,888 $203,600 3.4% Total Revenue
Source:
$915,379 $836,938 $896,025 $832,808 $811,688 $818,900 0.9% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023 Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 65
12.a
Packet Pg. 451 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23)
DEPARTMENTS
City of Cotati | Fiscal Year 2022/23 Budget Page 66
12.a
Packet Pg. 452 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) City Council
Mark Landman
Mayor
Department Description
The City Council is the five-member policy and legislative body of the City. The City Council of Cotati operates under the Council-Manager form of government, with five Council members elected at-large for staggered four-year terms.
The City Council, through the administrative authority of the City Manager, is responsible for the operation of the City, by setting policies and adopting City-wide goals and priorities.
The City Council formulates policies in the form of motions, resolutions, and ordinances, which reflect the interests, needs, and priorities of the citizens and businesses of Cotati, as well as the visitors to the City of Cotati.
The City Council appoints the City Manager and the City Attorney, who report directly to the City Council. The City Council also appoints the members of the City’s advisory commissions and committees.
The City Council meets twice a month in regular session, conducts special meetings and study sessions as needed, and attends regional coordination meetings with other local government agencies.
Please find more information on City Council Public
Meetings Here .
Expenditures Summary
The City Council budget reflects the costs associated with supporting the Council’s activities and providing for the operations of the City. The increase in expenditures for Fiscal Year 2022/23 is primarily derived from increases in allocated contract services including insurance.
$152,689
$16,782
(12.35% vs. prior year)
City of Cotati | Fiscal Year 2022/23 Budget Page 67
12.a
Packet Pg. 453 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) City Council Proposed and Historical Budget vs. Actual
Actual Budgeted
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
0 25k
50k
75k
100k
125k
150k
175k
Expenditures by Expense Type
Budgeted Expenditures by Expense Type
Personnel Services (35.9%)
Contract Services (32.9%)
Contributions (16.4%)
Other Expense (7.2%)
Capital Outlay (4.7%)
Utilities (2.3%)
Materials and Supplies (0.5%)
Repairs and Maintenance (0.2%)
City of Cotati | Fiscal Year 2022/23 Budget Page 68
12.a
Packet Pg. 454 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Budgeted and Historical Expenditures by Expense Type
Millions
Repairs and Maintenance
Materials and Supplies
Utilities
Capital Outlay
Other Expense
Contributions
Contract Services
Personnel Services
FY2017
FY2018
FY2019FY2020
FY2021FY2022FY2023
$0
$0.025
$0.05
$0.075
$0.1
$0.125
$0.15
$0.175
Expense Objects
Personnel
Services
$70,910 $54,073 $50,633 $48,370 $53,290 $54,810 2.9%
Materials and
Supplies
$828 $377 $1,173 $600 $600 $751 25.2%
Contract Services $28,995 $24,390 $28,506 $41,042 $41,042 $50,210 22.3% Utilities $4,352 $3,222 $4,438 $3,810 $3,810 $3,450 -9.4% Repairs and
Maintenance
$0 $6,211 $5,685 $3,000 $3,000 $321 -89.3%
Other Expense $12,723 $10,659 $4,488 $14,085 $14,085 $10,992 -22% Capital Outlay $0 $0 $0 $0 $0 $7,155 N/A
Contributions $15,700 $24,214 $24,735 $25,000 $25,000 $25,000 0% Total Expense
Objects:
$133,508 $123,145 $119,658 $135,907 $140,827 $152,689 8.4% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023 Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 69
12.a
Packet Pg. 455 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Organizational Chart
City of Cotati | Fiscal Year 2022/23 Budget Page 70
12.a
Packet Pg. 456 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) City Manager's Department
Damien O'Bid
City Manager
Department Descriptions
The City Manager/City Clerk Office provides for the
efficient and effective administration of the affairs of the City of Cotati including the following; support to the City Council including implementation and enforcement of
the policies of the City Council, supervises all City
Departments, manages human resources, maintains
official City files including records of Council proceedings, disseminates public information, conducts municipal
elections in accordance with California State Government Codes, negotiates and manages franchise agreements,
administers the City’s mobile home rent stabilization
ordinance, and oversees Economic Development,
Recreation and Successor Agency.
Expenditures Summary
$645,775
-$31,073
(-4.59% vs. prior year)
City Manager Proposed and Historical Budget vs. Actual
Actual Budgeted
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
0 200k
400k
600k
800k
1,000k
City of Cotati | Fiscal Year 2022/23 Budget Page 71
12.a
Packet Pg. 457 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Expenditures by Expense Type
Budgeted Expenditures by Expense Type
Personnel Services (69.3%)
Contract Services (13.3%)
Other Expense (9.3%)
Payout (3.6%)
Capital Outlay (2.7%)
Utilities (1.4%)
Repairs and Maintenance (0.3%)
Materials and Supplies (0.1%)
Budgeted and Historical Expenditures by Expense Type
Millions
Debt Service Materials and Supplies
Repairs and Maintenance
Utilities
Capital Outlay
Payout
Other Expense
Contract Services
Personnel Services
FY2017
FY2018
FY2019
FY2020
FY2021
FY2022
FY2023
$-0.2
$0
$0.2
$0.4
$0.6
$0.8
$1
Expense Objects
Personnel
Services
$354,026 $409,833 $411,351 $521,791 $754,411 $447,840 -40.6% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023 Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 72
12.a
Packet Pg. 458 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Payout $79,812 $5,778 $13,095 $14,110 $37,607 $23,030 -38.8% Materials and
Supplies
$3,574 $5,331 $4,977 $4,000 $4,000 $894 -77.6%
Contract Services $88,073 $61,839 $181,176 $83,552 $83,552 $85,604 2.5% Utilities $6,383 $7,237 $8,690 $7,920 $7,920 $8,900 12.4% Repairs and
Maintenance
$419 $13,238 $12,469 $13,000 $13,000 $1,781 -86.3%
Other Expense $31,494 $34,119 $137,339 $29,825 $29,825 $60,331 102.3% Debt Service $2,619 $0 $3,287 $2,650 $2,650 $0 -100%
Capital Outlay $0 $0 $0 $0 $0 $17,395 N/A
Total Expense
Objects:
$566,400 $537,374 $772,383 $676,848 $932,965 $645,775 -30.8% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023 Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
Organizational Chart
City of Cotati | Fiscal Year 2022/23 Budget Page 73
12.a
Packet Pg. 459 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Fiscal Year 2021/2022 Accomplishments
Regional Homelessness Governance Solutions - Ongoing
Response Program for people in mental health crisis (SAFE) SB 1383 Implementation/Franchise Agreement Amendment
Building Proforma & Tax/Fee Incentives for Housing & Econ Dev (Commercial/Residential) - Ongoing Mayors and Council Members JPA Update - Ongoing
Veronda-Falletti Ranch Barn Design
City Website Transition - Ongoing
Lead Digital File Management Program - Ongoing
On-Premises Closed Captioning System
Support Sale of Train Depot Property - Ongoing
Property Acquisition at W. Cotati/116
Corp Yard Property Development (Business Incubator) - Ongoing Cannabis Business Ordinance Update
Pension and Infrastructure Funding Plan (Co-Lead with Admin Services) Updated Master Fee Schedule
Microenterprise Home Kitchens
Noise Ordinance Update
Dogs on Leash Ordinance - Ongoing
COVID-19 IIPP, Policies
Kotate Park (Initial Design)
Cotati Veteran's Hall Use Negotiations
Polystyrene Prohibition and Single Use Take Out Containers Local Hazard Mitigation Plan
City Logo/Banner Program
Labor Negotiations (CEA/Non-Rep)
City Council Meeting Room Hybrid Transition
M&C Association By-Law Update - Ongoing
Fiscal Year 2022/2023 Objectives
Lead Digital File Management Program
Lead City Website Transition
City Seal Redesign
Veronda-Falletti Barn Design/Fundraising
Economic Development 2.0 (Co-Lead with CD)
Waste Franchise Negotiations
Putnam Park (Intial Design)
Election 2022
Evaulate New Legislative Management Systems
Ad Hoc Committee Projects as Needed
City of Cotati | Fiscal Year 2022/23 Budget Page 74
12.a
Packet Pg. 460 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Departmental Goal #1: Economic Development to Enhance
Community Services
Along with joint City departments, continue
Economic Development work, including (1) strategy that
attracts or retains businesses by removing unnecessary
barriers that the City can affect and (2) continue short to medium term revenue enhancements by developing TOT and improving cannabis business taxes and (3)
working with the City Council to develop longer term
policies to grow and broaden the business community.
The goal of this work is to provide the community with
the needed resources for critical services and
infrastructure.
Department Goal #2: Provide Efficient and Responsive Core Services
Maintain efficient and responsive core services in all
departments. Continue to adjust or build new systems and services to meet community needs. Continue to look for
opportunities to adapt and mitigate the impacts of climate change and improve emergency preparedness and
resiliency, including wildfire preparedness.
Departmental Goal #3: Community Engagement
Continue to improve engagement between the City
and residents so that the community has timely information about City programs and projects and can readily engage with the City on issues that they care about. This requires using multiple platforms and communication channels to
meet people where they are.
To meet this objective the City Manger produced specific City Manager Message YouTube Videos.
Actual
FY 20/21
Actual
FY 21/22
Goal
FY 21/22
Public Media Messages 7 14 24
City of Cotati | Fiscal Year 2022/23 Budget Page 75
12.a
Packet Pg. 461 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Department Goal #4: Promote Equity and Inclusivity
Ensure that City operations are inclusive and
equitable. Advance equity and health in partnership with Cotati residents and stakeholders, other jurisdictions, and non-governmental organizations.
City of Cotati | Fiscal Year 2022/23 Budget Page 76
12.a
Packet Pg. 462 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Administrative Services Department
Angela Courter
Director of Administrative Services
Department Description
The Administrative Services Department serves to support the financial management and reporting of the City, including: collection and disbursement of all City funds; processing payroll disbursements as well as related reporting, withholding and payroll benefits management; accounts payable processing; billing and collection of water, sewer, business license, and developmental user fees; maintenance of general ledgers and journals; investments of the City’s idle funds; purchasing; information systems oversight and support; development and maintenance of long term economic impact analyses; budget preparation and administration; financial reporting; audit liaison and coordination, and oversight of the City Risk Management Program.
Expenditures Summary
$443,068
$56,398
(14.59% vs. prior year)
Administrative Services Proposed and Historical Budget vs. Actual Actual Budgeted
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
0 100k
200k
300k
400k
500k
City of Cotati | Fiscal Year 2022/23 Budget Page 77
12.a
Packet Pg. 463 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Expenditures by Expense Type
Budgeted Expenditures by Expense Type
Personnel Services (55.7%)
Contract Services (21.6%)
Administrative Fee (10.9%)
Other Expense (5.3%)
Capital Outlay (2.8%)
Payout (2%)
Utilities (0.9%)
Debt Service (0.4%)
Materials and Supplies (0.3%)
Budgeted and Historical Expenditures by Expense Type
Millions
Repairs and Maintenance
Materials and Supplies
Debt Service
Utilities
Payout
Capital Outlay
Other Expense
Administrative Fee
Contract Services
Personnel Services
FY2017FY2018
FY2019
FY2020
FY2021
FY2022
FY2023
$-0.1
$0
$0.1
$0.2
$0.3
$0.4
$0.5
Expense Objects
Personnel
Services
$91,562 $86,222 $137,368 $202,490 $306,850 $246,950 -19.5% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023 Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 78
12.a
Packet Pg. 464 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Payout $13,081 $1,186 $1,788 $4,830 $2,365 $8,770 270.8% Materials and
Supplies
$629 $835 $964 $1,050 $1,050 $1,140 8.6%
Contract Services $52,462 $76,218 $100,205 $98,425 $98,425 $95,835 -2.6% Utilities $2,525 $3,065 $3,493 $3,600 $3,600 $4,000 11.1% Repairs and
Maintenance
$0 $7,717 $7,235 $7,500 $7,500 $567 -92.4%
Other Expense $13,703 $11,192 $16,471 $19,095 $19,095 $23,500 23.1% Administrative
Fee
$44,116 $37,068 $39,714 $48,080 $48,080 $48,080 0%
Debt Service -$2,703 -$1,911 $3,723 $1,600 $1,600 $1,600 0% Capital Outlay $0 $0 $0 $0 $0 $12,626 N/A
Total Expense
Objects:
$215,375 $221,593 $310,961 $386,670 $488,565 $443,068 -9.3% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023 Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 79
12.a
Packet Pg. 465 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Organizational Chart
Angela Courter is the current Director of Administrative Services, serving in this position since August 2019, and has been with the City of Cotati since 2016 when she originally joined us as the Senior Accountant, after almost 10 years in public accounting.
Neil Tomlinson is now the Senior Accountant and has been with the City since 2013.
Accountant, Rosie Speranza joined us in February 2021.
Account Clerk, Cassandra Rivera joined us in August 2020. We hope to hire a new department accountant early in Fiscal Year 2022/23 to continue to provide better efficient community services and elevated financial reporting.
City of Cotati | Fiscal Year 2022/23 Budget Page 80
12.a
Packet Pg. 466 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Fiscal Year 2021/2022 Accomplishments
Procurement Procedure & Credit Card Policy Refresh and Implementation - Ongoing Manage On-Site IT Contractor (Pilot) - Ongoing
Deposit Account Processing and Reporting - Ongoing
AP Digital Processing - DH In System Approval & Routing - Ongoing 5 Year Strategic Budget - Single Year Working Budget - Ongoing Docuware Digital Conversion of Files - Ongoing
Debt Financing Evaluations
Investment Planning - Ongoing
Pension Management Policy
Pension 115 Trust Fund Establishment
IBS Payroll System Update - Ongoing
Standby/Constructive Receipt
Online Payment Processing/Online Check Processing
Backflow RFP
Cannabis Business Audit Process Update - Ongoing
Departmental Webpage Build Out + Social Media - Ongoing General IT* - Incode Cloud Evaluation/ICD
Capital Project Budgeting System Upgrade
Newsletter distribution to Non-Utility Residents
Internet Service Upgrade for Civic Center Water/Sewer reimbursement State Fund Arrearages Program Fiscal Year 2022/2023 Objectives
Investment Planning
Fixed Asset/Work Order Processes
Digital Records Workflow
Backflow Program/Code Review
IT Special Projects (AD, Licensing, Security, Itron, Etc.) (Modify) Hydrant Meter Process Update
IBS Payroll System Update
TOT Taxation Process/Documentation
Propose Two Year Budget Process/Multiyear Planning
Business License Audit/Process Review
Unit Goals & Performance Measures
Departmental Goal #1: Maintaining Required Reserves
Budgeting efforts to meet or exceed both the
General Fund reserve policy target of 25% and
Enterprise Fund (Water & Sewer) reserve policy
target of 33%.
Actual
FY
20/21
Actual
FY
21/22
Goal
FY
22/23
General Fund Compliance Yes Yes Yes
Water Operating Fund
Compliance
Yes Yes Yes
Sewer Operating Fund
Compliance
Yes Yes Yes
City of Cotati | Fiscal Year 2022/23 Budget Page 81
12.a
Packet Pg. 467 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Departmental Goal #2: Compliance
Keep data and related regulations updated for
compliance with law on an ongoing basis, including:
Payroll compliance with labor laws
Utility compliance with State and Local Legislation
including emergency resolutions.
Financial reporting compliance with GASB Standards
Actual
FY
20/21
Actual
FY
21/22
Goal
FY
22/23
Clean Audit Opinions Yes Yes Yes
Payroll System Compliance Yes Yes Yes
Water Agency Reporting No
Comments
Yes Yes Yes
Departmental Goal #3: Internship Program
Coordinate an accountant internship program with
the Sonoma State Business Administration Department.
Actual
FY 20/21
Actual
FY 21/22
Goal
FY 22/23
Interns Employed 0 0 1
Departmental Goal #4: Multilingual Availability for Utility Customers
In order to make online utility access more accessible
to more residents we will evaluate and develop multilingual availability on the City Website and Utility Billing portal.
City of Cotati | Fiscal Year 2022/23 Budget Page 82
12.a
Packet Pg. 468 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Community Development
Noah Housh
Director of Community Development
Department Description
The Community Development Department is responsible for managing the Planning, Building, Housing and Code Enforcement Divisions for the City, while also supporting the Economic Development efforts of the City Manager's Office. The Planning Division provides staff and technical support toward developing and implementing land-use, planning and zoning policies and programs that guide City growth, as well as ensuring all City actions are compliant with the California Environmental Quality Act. The Building Division provides for public health and safety, promoting code compliance and improvements in the community through building inspections and plan review. The Housing Division assists with the management of the City's affordable housing stock and ensuring on-going compliance with the City's affordable housing programs. Finally, Code Enforcement works with the citizens of Cotati to maintain a safe, attractive and high-quality community environment by ensuring compliance with all adopted City codes and standards.
Expenditures Summary
$1,110,569
$129,232
(13.17% vs. prior year)
Community Development Proposed and Historical Budget vs. Actual Actual Budgeted
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
0 1,000k
250k
500k
750k
1,250k
City of Cotati | Fiscal Year 2022/23 Budget Page 83
12.a
Packet Pg. 469 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Expenditures by Expense Type
Budgeted Expenditures by Expense Type
Personnel Services (48%)
Contract Services (40.7%)
Other Expense (7.1%)
Capital Outlay (2%)
Payout (0.9%)
Utilities (0.8%)
Materials and Supplies (0.5%)
Repairs and Maintenance (0.09%)
Budgeted and Historical Expenditures by Expense Type
Millions
Contributions
Debt Service
Repairs and Maintenance
Materials and Supplies
Utilities
Payout
Capital Outlay
Other Expense
Contract Services
Personnel Services
FY2017
FY2018
FY2019
FY2020FY2021
FY2022
FY2023
$0
$1
$0.25
$0.5
$0.75
$1.25
Expense Objects
Personnel
Services
$309,751 $402,497 $454,646 $477,610 $827,235 $533,070 -35.6% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023 Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 84
12.a
Packet Pg. 470 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Payout $24,638 $0 $4,175 $3,690 $65 $10,160 15,530.8%
Materials and
Supplies
$1,291 $4,373 $3,553 $5,000 $5,000 $5,155 3.1%
Contract Services $162,003 $161,503 $233,172 $406,477 $311,477 $451,505 45% Utilities $6,763 $7,236 $8,809 $7,860 $7,860 $8,900 13.2% Repairs and
Maintenance
$0 $12,787 $12,609 $7,500 $7,500 $976 -87%
Other Expense $77,112 $87,952 $63,448 $73,000 $73,000 $78,859 8% Debt Service $202 $0 $541 $200 $200 $200 0%
Capital Outlay $0 $0 $0 $0 $0 $21,744 N/A
Total Expense
Objects:
$581,760 $676,349 $780,954 $981,337 $1,232,337 $1,110,569 -9.9% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023 Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 85
12.a
Packet Pg. 471 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Revenues by Source
Budgeted revenues for FY2022 reflected the development uncertainty for the City. As Department staff evaluate the annual budget they have to consider the likelihood of property owners making significant investment and improvements and due to the economic environment, there is still significant uncertainty. Staff will continue to project a conservative estimate of the potential revenue to be generated from planning and building permit applications.
For actual revenues in Fiscal Year 2021/22 we anticipate that actual revenues to be just over 25% more than budgeted.
This is down from the significant volume of permit activity that occurred in Fiscal Year 2020/21. When homeowners were spurred to make significant home improvements since travel and other leisure activities were not available due to the Covid-19 shut down.
Budgeted and Historical Revenues by Source
Millions
Development Fees
Other Revenues
Charges for Services
FY2017FY2018FY2019FY2020
FY2021FY2022
FY2023
$0
$0.2
$0.4
$0.6
$0.8
Revenue Source
Other Revenues
Community
Development
$42,912 $58,822 $92,203 $20,000 $92,000 $20,000 -78.3%
Code
Enforcement
$0 $0 $54,750 $10,000 $0 $6,000 N/A
Total Other
Revenues:
$42,912 $58,822 $146,953 $30,000 $92,000 $26,000 -71.7% Charges for
Services
Community
Development
$176,528 $203,164 $612,803 $232,750 $242,045 $230,250 -4.9% Total Charges for
Services:
$176,528 $203,164 $612,803 $232,750 $242,045 $230,250 -4.9% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023 Proposed
Budget
FY2022 Est. vs.
FY2023 Prop.
Budget (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 86
12.a
Packet Pg. 472 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Development Fees
Community
Development
$0 $0 $0 $3,000 $0 $0 N/A
Total
Development
Fees:
$0 $0 $0 $3,000 $0 $0 N/A
Total Revenue
Source:
$219,440 $261,986 $759,756 $265,750 $334,045 $256,250 -23.3% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023 Proposed
Budget
FY2022 Est. vs.
FY2023 Prop.
Budget (%
Change)
Organizational Chart
The Community Development staffing is a unique structure based on the distinct needs of Cotati, as a relatively small fullservice City. To address these needs, and remain flexible and responsive to changes in the economy, the Community Development Department is currently supported by a number of part-time and/or contract employees to augment the fulltime Department staff. These additional contractor functions are included in blue below while part time are indicated with the (PT) subsequent to the title.
City of Cotati | Fiscal Year 2022/23 Budget Page 87
12.a
Packet Pg. 473 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Fiscal Year 2021/2022 Accomplishments
Housing Element (HE) Update-Complete Fall 2022 - Ongoing Housing: Objective Design Guidelines
Housing: Multi-Family Streamling Ordinance (HE Action, NU zone) Housing: Financing Model-JPA + Fee Options - Ongoing
Housing: Opportunity Site Selection for HE
Housing: Administration Function-For Sale + Rental - Ongoing Cannabis Ordinance Review and Tax Resolution Update
GHG Reduction Strategy (RCPA)-Fossil Fuel (Gas) Station Ban Bicycle Pedestrian Master Plan Update - Ongoing
Development Process Improvements - Ongoing
Telecom Facility Ordinance
GP Initiated Re-Zonings- Map & Text - Ongoing
Implementation of Electronic Project Review, Tracking and File Management-Bluebeam and ICD Software Process Implementation
Cottage Housing Ordinance
Bike Share Roll Out
Train Depot Property Sale - Ongoing
Woonerf Ordinance
Urban Agriculture Ordinance (+Falletti Ranch)
Housing Outreach Program-Survey, SM, and Events
Departmental Webpage Improvements-Housing, ADUs, Code Enforcement Jamie Lane Affordable Housing Project (City led development) Kessing Ranch Affordable Housing HLT Agreement
Telecommunication Guidelines
Fiscal Year 2022/2023 Objectives
6th Cycle Housing Element Update
Housing Element Program Implementation
2023 Building Code Update (+GHG Measures)
Bike and Pedestrian Master Plan Update
Santero Way Specific Plan Update
Economic Development 2.0 (Co-Lead with CM)
Housing Administration
Implement New State Housing Legislation
Departmental Goal #1: Prioritize Development Review and Housing Policy
The Community Development Department provides
for the long-term viability of the City by providing prompt and responsive services to customers seeking development review and land use input for their properties. Continue to explore policy recommendations to expand affordability of housing across all income ranges.
Housing Units
Produced
Actual
2020
Actual
2021
Goal*
2022
Very Low 2 4 8
Low 1 2 4
Moderate 1 8 5
Above Moderate 16 22 13
* Based on 1/8 of the CA Regional Housing Needs Allocation (RHNA) to the City for the next 8 years.
City of Cotati | Fiscal Year 2022/23 Budget Page 88
12.a
Packet Pg. 474 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Check out this article on how our Community Development Department in 2020 made innovative strides to build
permanent affordable housing for our community:
bit.ly/PermanentAffordableCotati
Departmental Goal #2: Expanded Services
The Community Development Department will
continue to seek opportunities to expand on the services offered and provided by Department staff. This will include expanded access to affordable housing information,
streamlined ability to file Code Enforcement complaints and continuing to leverage contract staff to provide broadened service levels in all aspects managed by the Department.
Departmental Goal #3: Policy and Development Project
Community Engagement
The Community Development Department will
continue to seek and expand efforts to engage with
members of the community on both long-term policy
projects such as the Housing Element Update, as well
during the review of individual development projects. These efforts will include direct notices to property owners of neighboring sites proposed for development,
expanded information being available on the Department
webpage and through the use of social media posts and
notifications.
Actual
FY 20/21
Actual
FY 21/22
Goal
FY 22/23
Department Website Updated Yes Yes Yes
Social Media Posts 1 1 1
Departmental Goal #4: Provide Equitable Access to Information and Services
The Community Development Department is
committed to ensuring the provision of information and
services is equitable, and engages all populations within the community of Cotati. These efforts will seek to ensure every citizen of Cotati is considered through Department
engagement efforts, the provision of Department services and in the goals and policies promoted by Department staff in long-range planning documents.
City of Cotati | Fiscal Year 2022/23 Budget Page 89
12.a
Packet Pg. 475 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Engineering and Public Works
Craig Scott
Director of Engineering and Public Works
Department Description
The Public Works department operates and maintains
the water, sewer, and storm water systems, roadways,
City parks and buildings, and provides a wide range of
engineering services including managing a Capital
Improvement Program, issuing permits for construction
in the public right-of-way, and working with developers.
Engineering provides technical support to the various
City departments, responds to citizen’s inquiries and
requests regarding public infrastructure, performs
development review and plan check, performs
engineering and construction management of capital
improvement projects and provides mapping and
engineering records support.
City of Cotati | Fiscal Year 2022/23 Budget Page 90
12.a
Packet Pg. 476 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Expenditures Summary
$1,399,279
$5,992
(0.43% vs. prior year)
Public Works Proposed and Historical Budget vs. Actual
Actual Budgeted
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
0 250k
500k
750k
1,000k
1,250k
1,500k
City of Cotati | Fiscal Year 2022/23 Budget Page 91
12.a
Packet Pg. 477 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Expenditures by Function
Budgeted Expenditures by Function
Public Works - Parks (32.8%)
Public Works - Streets (31.8%)
Public Works - Engineering (15.5%)
Public Works - Govt. Buildings (11.6%)
Public Works - Storm Water Mgnt. (8.3%)
Budgeted and Historical Expenditures by Function
Millions
Public Works - Storm Water Mgnt.
Public Works - Govt. Buildings
Public Works - Engineering
Public Works - Streets
Public Works - Parks
FY2017
FY2018
FY2019
FY2020
FY2021
FY2022
FY2023
$0
$0.25
$0.5
$0.75
$1
$1.25
$1.5
Expenditures
Public Works
Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022
Adopted
Budget
FY2022
Estimate
FY2023
Proposed
Budget
FY2022 Est. vs.
FY2023 Prop.
(% Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 92
12.a
Packet Pg. 478 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Public Works -
Engineering
$143,669 $117,609 $131,634 $172,181 $207,201 $217,218 4.8% Public Works -
Streets
$407,182 $387,974 $364,450 $435,336 $602,676 $444,603 -26.2% Public Works - Storm Water Mgnt.
$183,831 $90,173 $76,266 $100,906 $124,971 $115,521 -7.6% Public Works - Govt.
Buildings
$127,929 $150,432 $141,356 $186,520 $231,675 $162,682 -29.8% Public Works - Parks $270,614 $261,855 $285,111 $498,344 $586,999 $459,255 -21.8% Total Public Works: $1,133,225 $1,008,043 $998,817 $1,393,287 $1,753,522 $1,399,279 -20.2% Total Expenditures: $1,133,225 $1,008,043 $998,817 $1,393,287 $1,753,522 $1,399,279 -20.2% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022
Adopted
Budget
FY2022
Estimate
FY2023
Proposed
Budget
FY2022 Est. vs.
FY2023 Prop.
(% Change)
Expenditures by Expense Type
Budgeted Expenditures by Expense Type
Contract Services (40%)
Personnel Services (34.9%)
Utilities (11.8%)
Other Expense (4.7%)
Repairs and Maintenance (3.4%)
Materials and Supplies (2.7%)
Payout (1.4%)
Capital Outlay (1.1%)
Debt Service (0.002%)
City of Cotati | Fiscal Year 2022/23 Budget Page 93
12.a
Packet Pg. 479 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Budgeted and Historical Expenditures by Expense Type
Millions
Debt Service
Capital Outlay
Payout
Materials and Supplies
Repairs and Maintenance
Other Expense
Utilities
Personnel Services
Contract Services
FY2017FY2018
FY2019
FY2020FY2021FY2022
FY2023
$0
$0.25
$0.5
$0.75
$1
$1.25
$1.5
Expense Objects
Personnel
Services
$363,710 $380,576 $393,457 $482,430 $789,975 $488,620 -38.1% Payout $100,129 $2,708 $27,804 $9,440 $22,130 $19,420 -12.2% Materials and
Supplies
$36,629 $47,740 $39,676 $37,800 $37,800 $37,944 0.4%
Contract Services $332,347 $273,574 $242,686 $472,199 $512,199 $559,799 9.3% Utilities $159,815 $174,657 $197,512 $214,295 $214,295 $165,050 -23% Repairs and
Maintenance
$38,064 $63,138 $32,608 $115,700 $115,700 $47,700 -58.8% Other Expense $102,502 $65,650 $65,020 $61,393 $61,393 $65,377 6.5% Debt Service $29 $0 $53 $30 $30 $30 0%
Capital Outlay $0 $0 $0 $0 $0 $15,339 N/A
Total Expense
Objects:
$1,133,225 $1,008,043 $998,817 $1,393,287 $1,753,522 $1,399,279 -20.2% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023 Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 94
12.a
Packet Pg. 480 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Organizational Chart
Description of the
Fiscal Year 2021/2022 Accomplishments
2021 Street Rehabilitation Project (Westside Street Rehabilitation) Civic Center Complex Misc Improvements Completion (Roof/Windows) City Hall/Corp Yard Emergency Power/Battery and EV Charger Project Kotati Park Play Structure (Construction) - Ongoing
Veronda Falletti Ranch barns (Design) - Ongoing
Sewer Inflow and Infiltration Reduction - Ongoing
Local Roads Safety Plan (LRSP)
Park and Ride Replacement (Construction) - Ongoing
Misc. Street/Park Improvements (Pocket Park/Gateway benches) - Ongoing Old Redwood Hwy Traffic Flow Improvements Water/Sewer Rate Study Loretto to McGinnis Pathway Improvements
Crossing Upgrade at Laguna and Commerce
2021 Street Preservation Project (Bird Section Slurry Seal) 2023 Street Preservation Project - Design - Ongoing
2023 Street Rehabiliation Project - RFP/Design
EV Station Design - La Plaza
Traffic Safety Improvements (East Cotati@Charles, W. Cotati Ave) Wayfinding - Kiosks
Drought Relief Grant Fund application - Ongoing
City of Cotati | Fiscal Year 2022/23 Budget Page 95
12.a
Packet Pg. 481 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Fiscal Year 2022/2023 Objectives
Commerce Gateway Improvements
2022 Street Preservation Project
2023 Street Rehabilitation Project
Redwood Drive and Cypress Street Project
Highway 116 and W Cotati Ave Intersection
Putnam Park Improvements
Kotati Park Improvements
Veronda-Falletti Ranch Barn
Civic Center Improvements - Community Center Windows
Civic Center Parking Lot Reconfiguration and Paving
Hydrant ATM
Wells 1A and 3 Treatment Rehabilitation
Sewer Repair and Replacement
Departmental Goal #1: Provide safe and reliable water and sewer service
Provide safe and reliable water and sewer service,
operate and maintain the infrastructure proactively, and continue to meet or exceed all State and Federal regulatory requirements.
Enhance operational reliability by using automation to
provide daily water production and equipment run-time
reports and improve accessibility to the data by moving away from paper records.
Actual
FY
20/21
Actual
FY
21/22
Goal
FY
22/23
Water Sewer Service Orders 649 752 700
State Agency Reporting Without
Comments
Yes Yes Yes
City of Cotati | Fiscal Year 2022/23 Budget Page 96
12.a
Packet Pg. 482 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Departmental Goal #2: Lower the future annual cost of street maintenance
Invest in strategic infrastructure to meet community
desires while lowering the future annual cost of street maintenance by rehabilitating roads in poor condition and maintaining those in fair to good condition.
Departmental Goal #3: Provide excellent customer service to the public and development community
Provide excellent customer service to the public and
development community by maintaining City infrastructure records, providing clear instructions for Public Works
processes and permitting, and involving the public in
significant public works projects with effective public outreach.
City of Cotati | Fiscal Year 2022/23 Budget Page 97
12.a
Packet Pg. 483 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Police Department
Michael Parish
Chief of Police
Welcome to the Cotati Police Department. I am honored to be your Chief of Police.
Department Description
The women and men of our Police Department are committed to providing quality public safety services to our community. I am very proud of our dedicated employees and volunteers who, through our daily activities, are making a positive difference by enhancing police services and continuing the great quality of life in the City of Cotati. Our members of the Cotati Police Department are committed to being responsive to our community in the delivery of quality services. Recognizing our responsibility to maintain order, while affording dignity and respect to every individual. Our objective is to provide contemporary police services through a community partnership which promotes safe, secure neighborhoods, parks, roadways, recreation, shopping and commercial areas visited by all.
Moving forward, we will continue our focus on (1) being fair in processes, (2) being transparent in actions, (3) providing opportunity for voice, and (4) being impartial in decision making.
We will continue our community policing philosophy through personal outreach to stakeholders to remain proactive in reducing crime, increasing traffic safety, enhancing citizen and business engagement and overall wellbeing of the City. We will continue our focus of training on employee health and wellness, effective ways to engage people who are in mental health crisis, continue understanding implicit bias, enhance de-escalation tactics through equipment and training and collect Racial and Identity Profiling Act data. The Cotati Police Department will continue to become a progressive department looking for unconventional ways to build Trust and Legitimacy in our City.
City of Cotati | Fiscal Year 2022/23 Budget Page 98
12.a
Packet Pg. 484 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Expenditures Summary
$4,652,725
$153,480
(3.41% vs. prior year)
Police Proposed and Historical Budget vs. Actual
Actual Budgeted
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
0 1M
2M
3M
4M
5M
City of Cotati | Fiscal Year 2022/23 Budget Page 99
12.a
Packet Pg. 485 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Expenditures by Expense Type
Budgeted Expenditures by Expense Type
Personnel Services (69.5%)
Contract Services (19%)
Other Expense (3.6%)
Capital Outlay (2.9%)
Utilities (1.5%)
Repairs and Maintenance (1.4%)
Payout (0.8%)
Materials and Supplies (0.8%)
Budgeted and Historical Expenditures by Expense Type
Millions
Debt Service
Administrative Fee Materials and Supplies
Payout
Repairs and Maintenance
Utilities
Capital Outlay
Other Expense
Contract Services
Personnel Services
FY2017
FY2018
FY2019
FY2020
FY2021
FY2022
FY2023
$0
$1
$2
$3
$4
$5
Expense Objects
Personnel
Services
$2,778,660 $2,721,604 $2,918,757 $3,249,040 $6,458,190 $3,233,570 -49.9% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022
Adopted
Budget
FY2022
Estimate
FY2023
Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 100
12.a
Packet Pg. 486 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Payout $200,150 $37,708 $36,844 $39,020 $44,995 $39,000 -13.3% Materials and
Supplies
$17,841 $30,540 $12,400 $37,000 $37,000 $37,872 2.4%
Contract Services $475,346 $562,170 $660,787 $860,305 $860,305 $884,549 2.8% Utilities $54,563 $61,631 $69,242 $69,430 $69,430 $68,550 -1.3% Repairs and
Maintenance
$58,261 $121,180 $151,765 $118,900 $118,900 $65,000 -45.3% Other Expense $108,735 $79,809 $91,245 $105,550 $105,550 $167,184 58.4% Administrative
Fee
$12,948 $7,067 $2,140 $15,400 $15,400 $15,400 0%
Debt Service $3,424 $0 $4,065 $4,600 $4,600 $4,600 0%
Capital Outlay $0 $14,160 $16,646 $0 $0 $137,000 N/A
Total Expense
Objects:
$3,709,928 $3,635,869 $3,963,892 $4,499,245 $7,714,370 $4,652,725 -39.7% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022
Adopted
Budget
FY2022
Estimate
FY2023
Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 101
12.a
Packet Pg. 487 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Organizational Chart
Current staffing at the police department consists of the following staff*:
Chief of Police Michael Parish
Sergeant Baudelia Gallo
Sergeant Paul Goodin
Sergeant Tyler Wardle
Corporal/K9 Handler Brian Deaton and his partner REMO
Officer/Detective Anthony Garber
Officer/Motor Ryan Reinke
Officer Jerry Cunningham
Officer Bennet Knight
Officer Ryan Sullivan
Community Service Officer Carrie Peoples
Police Services Aide Katie Huldermann
Police Dispatcher/Clerk Michael Callen
Police Dispatcher/Clerk Renee Harris
Police Dispatcher/Clerk Adrien McGoon
Police Dispatcher/Clerk Cristina Montoya
Police Dispatcher/Clerk Kirsten Ott
Volunteers and Cadets
* In order by rank then alphabetically.
City of Cotati | Fiscal Year 2022/23 Budget Page 102
12.a
Packet Pg. 488 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Fiscal Year 2021/2022 Accomplishments
Added Hi-Lo sirens to all PD vehicles and performed an emergency evacuation drill Posted weekly police log that goes to CV on our City Website (Transparency) Submitted ABC Grant
Pink Patch for breast cancer awareness month/Pins for Pride Month/No Shave Nov. For Cancer Awareness Robust training on de-escalation, implicit bias, people in mental health crisis 5 agency mutual aid crime scene/investigation training (implemented and ongoing) Regional participation in Response Program for people in mental health crisis (SAFE Team in service) Improved PD building cameras and storage of media (ongoing) New intercom for dispatch to lobby (ongoing)
Body Worn Camera/Taser upgrade (5) year contract
Pedestrian Safety Education and Enforcement
Fiscal Year 2022/2023 Objectives
Public Safety Blood Drive
Bola Wrap Upgrade with Training
Vehicle, Pedestrian and Bicycle Safety Enforcement-LRSP Expansion of SAFE Team Hours (24/7)
Thomas Page Academy School Supply Drive
Coordinate Hi-Lo Evacuation Drill
De-Escalation, Implicit Bias and Mental Health Crisis Training Electric Bicycle for Patrol with Training
Crime and Vehicle Accident Scene Mapping
Noise Abatement with Registered Meter
Hand Held Narcotics Detector (Fentanyl) with Training
Web-based Citizen Feedback Service
Departmental Goal #1: Regional Collaboration to Address Mental Health and Unsheltered Crisis
Specialized Assistance For Everyone (SAFE) Team
The SAFE Team provides three main services to the
community
1. Response to issues relating to mental health,
addiction and homelessness
2. Non-emergency response for people in need
3. Proactive and continued community outreach
Cotati and Rohnert Park have partnered with a
mobile mental health crisis response team for our
cities. The SAFE team began service November 1, 2021
starting with twelve hour daily coverage from noon to
midnight. Our goal is to provide 24 hour daily SAFE
response by the end of 2022. SAFE modeled after the
successful Cahoots program in Eugene Oregon
consists of a mental health professional, resource
advocate and medic (nurse, paramedic or EMT).
SAFE works proactively to address low level issues
and provides preventative outreach to help ensure
individuals don’t end up needing a higher level of
care. SAFE can identify shelter options for the
homeless, mental health services for people in crisis,
resources to address addiction and provide health
care that does not meet the threshold of an
ambulance response.
City of Cotati | Fiscal Year 2022/23 Budget Page 103
12.a
Packet Pg. 489 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) When SAFE is not responding to calls-for-service they
conduct outreach to the homeless triaging their
medical status and providing shelter and counseling
information.
SAFE is intended to benefit everyone by keeping
police officers, firefighters and paramedics available
for appropriate emergencies.
If you observe someone experiencing mental health
issues or homelessness and you think SAFE is an
appropriate response call 707-792-4611 for nonemergencies or 911 for emergencies.
Departmental Goal #2: Engage to Improve Communication, Build Trust, and Reduce Racism
The Police Department, in conjunction with all City
Departments, will strive to seek community engagement to improve communication, build trust, and reduce racism in Cotati.
The Police Department will continue community
engagement through Coffee with a Cop, National Night Out, Thomas Page Academy outreach and other platforms.
The Police Department will continue its Public Information efforts through social media and on the City Website. We will incorporate Neighborhood Level Programming through our
Officer Assigned Areas consisting of six (6) designated "beats" in our City.
Departmental Goal #3: Support Safe Roads and Neighborhoods, including Inviting Park Space, for the Community
The Police Department, in conjunction with all City
Departments, will continue to provide safe roads and
neighborhoods, including inviting parks and open spaces for the community to learn, play, and promote a healthy and active lifestyle.
During Fiscal Year 2020/21 the City initiated the Local Road Safety Plan (LRSP). The LRSP identified the top systemic collision patterns throughout the City and top collision locations. The LRSP was a joint effort by City Traffic
Engineers, Police and the public. This safety plan provides the City with a toolbox of countermeasures to address systemic collisions through future traffic designs and projects and directed traffic enforcement by our officers. The City will use the LRSP to make Cotati a safer community for vehicles, pedestrians and cyclists.
City of Cotati | Fiscal Year 2022/23 Budget Page 104
12.a
Packet Pg. 490 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Recreation
Ashley Wilson
Recreation Manager
Department Description
This department is used for funding recreation activities including, but not limited to, year-round classes and programs, camps, trips and tours and special events. Recreation staff also manages rentals and services for City facilities, including City parks and City-owned buildings.
Expenditures Summary
$388,489
-$62,646
(-13.89% vs. prior year)
Recreation Proposed and Historical Budget vs. Actual
Actual Budgeted
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
0 100k
200k
300k
400k
500k
City of Cotati | Fiscal Year 2022/23 Budget Page 105
12.a
Packet Pg. 491 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Expenditures by Expense Type
Budgeted Expenditures by Expense Type
Personnel Services (59.9%)
Contract Services (27.6%)
Other Expense (4.5%)
Capital Outlay (3.8%)
Utilities (1.5%)
Materials and Supplies (1.3%)
Payout (1.3%)
Repairs and Maintenance (0.2%)
Budgeted and Historical Expenditures by Expense Type
Millions
Debt Service
Contributions
Repairs and Maintenance
Payout
Materials and Supplies
Utilities
Capital Outlay
Other Expense
Contract Services
Personnel Services
FY2017
FY2018FY2019
FY2020
FY2021
FY2022FY2023
$0
$0.1
$0.2
$0.3
$0.4
$0.5
The FY 21/22 Estimate shows a large increase over the FY 21/22 Adopted Budget. This is primarily due to the additional CalPERS Unfunded Liability payment that was made in January of 2022. Additionally, this reduces future UAL payments, and is partly reflected in the almost $63K decrease in overall expenditures for FY 22/23 when compared to the FY 21/22 Adopted Budget. Health Benefits are also anticipated to significantly decrease in comparison to the FY 21/22 Adopted Budget.
City of Cotati | Fiscal Year 2022/23 Budget Page 106
12.a
Packet Pg. 492 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) This department is fully funded with the use of Measure S Sales taxes and has been in development since the Citizens of Cotati brought it back to the Community when they overwhelmingly voted for Measure G the precursor to Measure S. The recreation department looks forward to running more events and camps as we move on past the COVID-19 crisis.
Expense Objects
Personnel
Services
$175,902 $185,650 $210,589 $270,780 $473,545 $232,860 -50.8% Payout $2,150 $0 $12,171 $6,950 $0 $5,100 N/A
Materials and
Supplies
$3,572 $5,128 $4,304 $5,000 $5,000 $5,104 2.1%
Contract Services $76,697 $73,153 $62,469 $140,075 $110,075 $107,094 -2.7% Utilities $4,387 $4,341 $4,968 $4,860 $4,860 $5,700 17.3% Repairs and
Maintenance
$0 $12,346 $11,576 $2,000 $2,000 $655 -67.2%
Other Expense $14,317 $20,618 $9,697 $20,170 $20,170 $17,386 -13.8% Debt Service $307 $0 $186 $300 $300 $0 -100%
Capital Outlay $0 $0 $0 $0 $0 $14,590 N/A
Contributions $0 $0 $0 $1,000 $1,000 $0 -100%
Total Expense
Objects:
$277,332 $301,236 $315,960 $451,135 $616,950 $388,489 -37% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023 Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
Organizational Chart
City of Cotati | Fiscal Year 2022/23 Budget Page 107
12.a
Packet Pg. 493 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Fiscal Year 2021/2022 Accomplishments
Veronda-Falletti Ranch Barn Design
Dogs on Leash Ordinance – Ongoing
Kotate Park (Initial Design)
Cotati Veteran's Hall Use Negotiations
Fiscal Year 2022/2023 Objectives
Veterans Hall Operations
Veronda-Falletti Ranch Programming
Veronda-Falletti Barn Fundraising
Kotate Park Playground Equipment Update
Putnam Park Preliminary Design
Ad Hoc Committee Projects as Needed
Departmental Goal #1: Expand Programing
Expand affordable and accessible programming and
events to increase community engagement, visitation to the City, and support local businesses.
Departmental Goal #2: Provide Safe and Inviting Parks
Provide safe and inviting park and open spaces for the
community to learn, play, and promote a healthy and
active lifestyle.
City of Cotati | Fiscal Year 2022/23 Budget Page 108
12.a
Packet Pg. 494 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23)
FUND SUMMARIES
City of Cotati | Fiscal Year 2022/23 Budget Page 109
12.a
Packet Pg. 495 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) All Funds
This page is a summary of all of the City Operations as included within the budget book including enterprise funds like Water and Sewer. This is provided for informational purposes only as these funds are properly segregated and maintained.
Summary
The City of Cotati is projecting $31.93M of revenue (including transfers in and other sources) in FY2023, which represents a
30.6% increase over the prior year. Budgeted expenditures (including transfers out and other uses) are projected to increase by 54.5% or $14.95M to $43.92M in FY2023.
Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$10M
$20M
$30M
$40M
$50M
City of Cotati | Fiscal Year 2022/23 Budget Page 110
12.a
Packet Pg. 496 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Budget Summary by Fund
City of Cotati | Fiscal Year 2022/23 Budget Page 111
12.a
Packet Pg. 497 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Revenue by Fund
2023 Revenue by Fund
Capital Projects (48.7%)
General (27.5%)
Enterprise Funds (15.6%)
Special Revenue Funds (2.5%)
Debt Service (2.1%)
Internal Service Funds (1.4%)
Private Purpose Trust (1.2%)
Agency Fund (1%)
Budgeted and Historical Revenue by Fund
Millions
Bed Tax
Agency Fund
Private Purpose Trust
Internal Service Funds
Debt Service
Special Revenue Funds
Enterprise Funds
General
Capital Projects
FY2017
FY2018FY2019
FY2020
FY2021
FY2022
FY2023
$0
$10
$20
$30
$40
City of Cotati | Fiscal Year 2022/23 Budget Page 112
12.a
Packet Pg. 498 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Revenues by Source
The City Wide revenues and sources are developed using a combination of consulting support for Property Tax and Sales Tax forecasts, State governmental Detail Reports/Projections for certain special funds, as well as trend analysis based on historical and anticipated future factors, such as developments under construction or grant awards.
Projected 2023 Revenues by Source
Transfers In (29.6%)
Taxes (24.3%)
Other Revenues (23%)
Charges for Services (14.7%)
CDBG Grant (3.4%)
Debt Service (1.5%)
Licenses, Permits & Franchises (1.4%)
Interfund Loan Payments (0.6%)
Other Agency (0.5%)
Budgeted and Historical Revenues by Source
Millions
Development Fees
Other Financing Sources
Other Income
Recognized Obligation Payment Schedule (ROPS)
Grants
Contributions
Franchise Fees
Customer Fees
Impact Fees
PSAF PROP 172
Rents
COPS GRANT-SLESA
Other Agency
Interfund Loan Payments
Licenses, Permits & Franchises
Debt Service
CDBG Grant
Charges for Services
Other Revenues
Taxes
Transfers In
FY2017
FY2018FY2019FY2020FY2021
FY2022
FY2023
$0
$10
$20
$30
$40
City of Cotati | Fiscal Year 2022/23 Budget Page 113
12.a
Packet Pg. 499 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Expenditures by Fund
Significant expenditures across funds for Fiscal Year 2022/23 are investments in capital projects which is approximately $18.6M or a 198% increase from the Prior Year.
2023 Expenditures by Fund
Capital Projects (42.4%)
General (30.3%)
Enterprise Funds (18.9%)
Special Revenue Funds (3.6%)
Debt Service (1.8%)
Internal Service Funds (1.2%)
Agency Fund (0.9%)
Private Purpose Trust (0.8%)
Budgeted and Historical Expenditures by Fund
Millions
Bed Tax
Private Purpose Trust
Agency Fund
Internal Service Funds
Debt Service
Special Revenue Funds
Enterprise Funds
General
Capital Projects
FY2017
FY2018FY2019FY2020FY2021
FY2022FY2023
$0
$10
$20
$30
$40
$50
City of Cotati | Fiscal Year 2022/23 Budget Page 114
12.a
Packet Pg. 500 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Expenditures by Expense Type
Budgeted Expenditures by Expense Type
Transfer Out (27.6%)
Personnel Services (15.3%)
Capital Improvement Project (14.5%)
Capital Project (12%)
Capital Outlay (7.7%)
Debt Service (6.8%)
Contract Services (6.6%)
Wastewater Treatment (3.2%)
Other Expense (1.4%)
Water Usage (1.4%)
Utilities (0.9%)
Repairs and Maintenance (0.7%)
Budgeted and Historical Expenditures by Expense Type
Millions
Depreciation
Housing Subsidy
Housing Project
Disclosure Reports
Bond Discount
Agency Fees
Backflow
Contributions
Landscaping
Conservation
Obligations
Administrative Fee Materials and Supplies
Economic Development
Payout
Repairs and Maintenance
Utilities Water Usage
Other Expense Wastewater Treatment
Contract Services
Debt Service
Capital Outlay
Capital Project
Capital Improvement Project
1/2
FY2017
FY2018
FY2019
FY2020
FY2021
FY2022
FY2023
$-10
$0
$10
$20
$30
$40
$50
Please see digital budget book here for expanded key of expense types included above.
City of Cotati | Fiscal Year 2022/23 Budget Page 115
12.a
Packet Pg. 501 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) General Fund
The General Fund is the City’s unrestricted source of revenues and expenditures; it is the largest government-type fund with a Fiscal Year 2022/23 year-end reserve estimated at $4.6 million.
The General Fund supports all non-enterprise departments and more than 50% of the City’s total personnel service costs. Elected and appointed officials, Recreation and Facilities, Planning and Community Development, Public Works (except water and sewer), and the Police Department are all dependent on the General Fund for their operations.
General Funds can be used for any municipal purpose, including the general operations of the City, and to fund basic City services such as police, park and street maintenance, and recreational services. Examples of revenue sources for General Funds include: property taxes, sales taxes, licenses and permits, rents, charges for services, investment earnings, and payments received from other governmental agencies.
This is a major fund for the City as it accounts for more than 10% of the City-Wide Revenues and Expenses during a Fiscal Year.
Summary
Total Operating Revenues for Fiscal yYear 2022/23 are budgeted at $10.1M; a 6.6% decrease over Fiscal Year 2021/22 adopted budget and a 0.3% decrease over the estimated Fiscal Year 2021/22 actual. Comparing adopted budget to proposed budget the decrease is primarily due to the 2021/22 one-time grants from the American Rescue Plan Act anticipated at approximately $1.4M which is included within the adopted budget. Comparing the proposed 2022/23 budget to the estimated actual for Fiscal Year 2021/22 the decrease is primarily due to reduced other one time revenues as well as development charges due to development uncertainty.
Total Operating Expenses for Fiscal Year 2022/23 are budgeted at $8.8M,a 3.4% increase over Fiscal Year 2021/22 adopted budget and a 31.7% decrease from the estimated actual. These increased costs are primarily due to increased staffing costs such as workers' comp insurance, health benefits, and pensions, as well as the increase in liability insurance due to large catastrophic claims hitting the global insurance market. Decreases from estimated actual are primarily due to a one time funding for the CalPERS unfunded pension liability.
Total Sources and Uses are primarily funding debt payments for the new debt service fund as well as interfund debt service receipts from the enterprise funds.
Transfers In to the General Fund are primarily for the Cops Grant's Fund to contribute back to the Police Department related activities. Transfers Out primarily fund government capital projects including streets and parks. The total transfers out for Fiscal Year 2022/23 are budgeted at $3.6M, a 1.5% decrease over Fiscal Year 2021/22 adopted budget, and a 37.2% decrease over the estimated Fiscal Year 2021/22 actual. We are proud to be able to fund significant projects in the upcoming year, so please refer to the capital improvement section of the budget book for the details on the projects that are planned near you.
City of Cotati | Fiscal Year 2022/23 Budget Page 116
12.a
Packet Pg. 502 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$2.5M
$5M
$7.5M
$10M
$12.5M
$15M
City of Cotati | Fiscal Year 2022/23 Budget Page 117
12.a
Packet Pg. 503 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Consolidated Financial Schedule
DESCRIPTION
FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 21/22 FY 22/23
ACTUALS ACTUALS ACTUALS ADOPTED ESTIMATE PROPOSED
OPERATING REVENUE
PROPERTY TAX $ 1,734,281 $ 1,813,280 $ 1,773,535 $ 1,964,916 $ 1,895,397 $ 2,012,395 SALES TAX 5,109,212 5,001,563 5,837,741 5,561,951 5,960,000 6,070,000 OTHER TAXES 415,185 518,653 668,954 630,300 660,300 751,700 LICENSES AND PERMITS 515,546 546,010 623,563 551,500 538,800 537,900 RENTS 96,344 101,474 71,712 91,000 96,000 77,400
OTHER AGENCIES 303,488 189,454 200,751 190,308 193,908 203,600 COMMUNITY DEVELOPMENT CHARGES 219,441 234,314 723,851 262,750 301,845 256,250 PUBLIC WORKS CHARGES 57,751 108,404 112,233 50,900 102,640 50,500 POLICE CHARGES 103,394 88,242 61,991 62,800 58,000 64,800 OTHER REVENUES 163,976 132,755 406,408 1,445,500 313,394 52,400 INVESTMENT EARNINGS 126,272 103,797 56,564 10,000 13,300 26,500 CONTRIBUTIONS 17,813 16,986 10,643 7,300 11,300 6,300
Total 8,862,703 8,854,932 10,548,036 10,829,225 10,144,884 10,109,745
OPERATING EXPENDITURE
CITY COUNCIL 133,509 112,883 119,658 135,907 140,827 152,689 CITY MANAGER 566,401 537,375 782,584 676,848 932,962 645,775 ADMINISTRATIVE SERVICES 215,379 221,593 310,961 386,670 488,565 443,068 COMMUNITY DEVELOPMENT 581,762 674,085 720,172 940,337 1,191,337 1,064,569 PUBLIC WORKS 1,113,227 808,157 998,817 1,403,287 1,753,522 1,399,279 POLICE 3,709,925 3,655,104 3,963,892 4,499,245 7,714,370 4,652,725 RECREATION 277,333 302,977 315,960 421,135 616,950 388,489 CODE COMPLIANCE - 2,754 60,793 41,000 41,000 46,000
Total 6,617,536 6,314,926 7,272,825 8,504,429 12,879,533 8,792,594
OTHER SOURCES/(USES)
DEBT PAYMENT (256,626) (256,626) - - - (809,974)
BOND ISSUANCE - UAL ADP - - - - 4,000,000 -
INTERFUND DEBT SERVICE - Water Operations (401) - - - - 39,773 79,546 INTERFUND DEBT SERVICE - Sewer Operations (404) - - - - 38,098 76,196 INTERFUND LOANS - Water Operations (401) - - - - (989,900) - INTERFUND LOANS - Sewer Operations (404) - - - - (948,220) - Total (256,626) (256,626) - - 2,139,751 (654,232)
TRANSFERS IN/(OUT)
TRANSFERS IN 250,000 223,236 219,431 164,000 1,936,630 179,322 TRANSFERS OUT (984,431) (2,630,461) (1,567,550) (3,753,340) (2,694,947) (3,696,654) Total (734,431) (2,291,225) (1,348,119) (3,589,340) (758,317) (3,517,332) NET FUND SURPLUS/(DEFICIT) 1,254,110 (7,845) 1,927,092 (1,264,544) (1,353,215) (2,854,413) BEG. FUND BALANCE, as restated 5,663,801 6,917,944 6,910,065 5,243,248 8,837,158 7,483,942 END. FUND BALANCE 6,917,911 6,910,065 8,837,158 3,978,704 7,483,942 4,629,529
RESERVE
REQUIRED RESERVE 1,654,384 1,578,732 1,818,206 2,216,107 3,219,883 2,198,149 GENERAL OPERATING 5,263,527 5,331,334 7,018,952 1,852,597 4,264,059 2,431,381 TOTAL RESERVE ($) 6,917,911 6,910,065 8,837,158 3,978,704 7,451,532 4,629,529 TOTAL RESERVE (%) 105% 109% 122% 47% 58% 53%
City of Cotati | Fiscal Year 2022/23 Budget Page 118
12.a
Packet Pg. 504 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Revenues by Source
This chart and supporting detail include the balance of transfers in from other funds in combination with other revenue sources. These funds are usually included after other sources and uses and not relied upon as direct receipts for general funds use and as such are not a part of managements evaluation for operating revenues.
Projected 2023 Revenues by Source
Taxes (84.6%)
Licenses, Permits & Franchises (5.1%)
Charges for Services (3.1%)
Other Agency (1.9%)
Transfers In (1.7%)
Interfund Loan Payments (1.5%)
Other Revenues (1.2%)
Budgeted and Historical Revenues by Source
Millions
Development Fees
Debt Service
Other Financing Sources
Contributions
Rents
Other Revenues
Interfund Loan Payments
Transfers In
Other Agency
Charges for Services
Licenses, Permits & Franchises
Taxes
FY2017FY2018
FY2019
FY2020
FY2021
FY2022FY2023
$0
$10
$2.5
$5
$7.5
$12.5
Revenue Source
Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022
Adopted
Budget
FY2022
Estimate
FY2023
Proposed
Budget
FY2022 Est.
vs. FY2023
Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 119
12.a
Packet Pg. 505 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Taxes
Property Tax $1,734,281 $1,813,280 $1,773,535 $1,964,916 $1,895,397 $2,012,395 6.2% Sales Tax $5,109,211 $5,001,563 $5,837,741 $5,561,951 $5,960,000 $6,070,000 1.8% Other Tax $416,685 $518,653 $668,954 $630,300 $660,300 $751,700 13.8% Total Taxes: $7,260,177 $7,333,496 $8,280,230 $8,157,167 $8,515,697 $8,834,095 3.7% Interfund Loan
Payments
$0 $0 $0 $0 $0 $155,742 N/A
Total Interfund Loan
Payments:
$0 $0 $0 $0 $0 $155,742 N/A
Licenses, Permits &
Franchises
$515,547 $546,010 $623,563 $551,500 $538,800 $537,900 -0.2% Total Licenses, Permits
& Franchises:
$515,547 $546,010 $623,563 $551,500 $538,800 $537,900 -0.2% Rents $96,344 $101,474 $71,712 $91,000 $76,000 $77,400 1.8% Total Rents: $96,344 $101,474 $71,712 $91,000 $76,000 $77,400 1.8% Other Agency $303,488 $189,454 $200,751 $190,308 $196,888 $203,600 3.4% Total Other Agency: $303,488 $189,454 $200,751 $190,308 $196,888 $203,600 3.4% Other Revenues $364,321 $287,296 $582,535 $1,526,000 $443,294 $125,400 -71.7% Total Other Revenues: $364,321 $287,296 $582,535 $1,526,000 $443,294 $125,400 -71.7% Charges for Services $306,512 $365,909 $767,196 $325,950 $348,185 $325,050 -6.6% Total Charges for
Services:
$306,512 $365,909 $767,196 $325,950 $348,185 $325,050 -6.6% Development Fees $0 $0 $0 $3,000 $0 $0 N/A
Total Development
Fees:
$0 $0 $0 $3,000 $0 $0 N/A
Debt Service $0 $15,056 $11,407 $0 $0 $0 0%
Total Debt Service: $0 $15,056 $11,407 $0 $0 $0 0%
Contributions $17,814 $16,986 $10,643 $7,300 $12,300 $6,300 -48.8% Total Contributions: $17,814 $16,986 $10,643 $7,300 $12,300 $6,300 -48.8% Transfers In $250,000 $339,236 $219,431 $164,000 $164,000 $179,322 9.3% Total Transfers In: $250,000 $339,236 $219,431 $164,000 $164,000 $179,322 9.3% Other Financing Sources $0 $0 $0 $0 $4,000,000 $0 -100% Total Other Financing
Sources:
$0 $0 $0 $0 $4,000,000 $0 -100%
Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022
Adopted
Budget
FY2022
Estimate
FY2023
Proposed
Budget
FY2022 Est.
vs. FY2023
Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 120
12.a
Packet Pg. 506 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Total Revenue Source: $9,114,203 $9,194,917 $10,767,467 $11,016,225 $14,295,164 $10,444,809 -26.9% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022
Adopted
Budget
FY2022
Estimate
FY2023
Proposed
Budget
FY2022 Est.
vs. FY2023
Prop. (%
Change)
Expenditures by Function
For all departments, increases for the FY 21/22 Estimate compared to the FY 21/22 Adopted Budget are primarily due to the additional CalPERS UAL payment that was made in January 2022.
Recreation Department — Increase in overall expenditure continues to follow historical trends since FY 18/19.
Police Department — Primary increase is due to increased insurance costs.
Public Works Department — Primary increases in budget are due to increased staffing and increased insurance costs.
Community Development Department — Primary increase is due to increased insurance costs, and to adjustments for personnel and contract services to meet both the code enforcement and building inspection services, which the department supports.
Administrative Services Department — Expenditures have increased compared with the prior year’s budget.
Increases are primarily due to additional staffing, insurance and allocated contract services.
City Manager Department — Projected staffing changes have reduced expenditures for personnel services.
These decreases are partially offset by increased other expenses related continued Economic Development and Public Information Services Initiatives.
City Council — Expenditures have remained consistent with prior year’s budget with the main increase due to the funding of retiree Healthcare, but offset by reductions in other expenses.
Budgeted Expenditures by Function
Police (35%)
General Government (27.8%)
Public Works (10.5%)
Community Development (8%)
Non-Departmental (6.1%)
City Manager (4.9%)
Administrative Services (3.3%)
Recreation (2.9%)
City Council (1.1%)
Code Enforcement (0.3%)
Allocated Departmental Expenditures:
Historically, Legal Services and Non-Departmental expenses were reported within separate departments within the general fund. However, as these services are utilized by all departments, these costs have now been reallocated to all departments using the proportional FTE. As such, there is no budgetary schedule provided herein.
City of Cotati | Fiscal Year 2022/23 Budget Page 121
12.a
Packet Pg. 507 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) General Government Expenditures represent the
General Fund Transfers to Other Governmental Funds:
There are various types of transfers related to other sources and uses of funds. For the budget presented, these transfers are not allocated to a department but rather shown as the general governmental expenditures. See the Capital Improvements section of the budget for further detail on the specific projects proposed within the City General Funds contributions. Most of the funding to be provided for Fiscal Year 2022/23 is only possible due to Measure S.
Budgeted and Historical Expenditures by Function
Millions
Legal Services
Public Information
Economic Development
Code Enforcement
City Council
Recreation
Administrative Services
City Manager
Non-Departmental
Community Development
Public Works
General Government
Police
FY2017
FY2018FY2019FY2020FY2021
FY2022
FY2023
$0
$2.5
$5
$7.5
$10
$12.5
$15
Expenditures
General
Government
$984,431 $2,646,134 $1,577,751 $3,758,340 $1,214,342 $3,696,655 127.5% 204.4% City Council $133,508 $123,145 $119,658 $135,907 $140,827 $152,689 14.2% 8.4% City Manager $566,400 $537,374 $772,383 $676,848 $932,965 $645,775 -8.7% -30.8% Administrative
Services
$215,375 $221,593 $310,961 $386,670 $488,565 $443,068 13.6% -9.3% NonDepartmental
$0 $0 $0 $0 $0 $809,974 0% N/A
Community
Development
$581,760 $674,085 $720,162 $940,337 $1,191,337 $1,064,569 24.5% -10.6% Public Works $1,133,225 $1,008,043 $998,817 $1,393,287 $1,753,522 $1,399,279 16.3% -20.2% Police $3,709,928 $3,635,869 $3,963,892 $4,499,245 $7,714,370 $4,652,725 7.5% -39.7% Recreation $277,332 $301,236 $315,960 $451,135 $616,950 $388,489 18.1% -37% Code
Enforcement
$0 $2,264 $60,793 $41,000 $41,000 $46,000 0% 12.2%
Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022
Adopted
Budget
FY2022
Estimate
FY2023
Proposed
Budget
FY2021
Budgeted
vs. FY2022
Proposed
Budget (%
Change)
FY2022 Est.
vs. FY2023
Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 122
12.a
Packet Pg. 508 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Total
Expenditures:
$7,601,959 $9,149,744 $8,840,375 $12,282,769 $14,093,878 $13,299,223 30.4% -5.6% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022
Adopted
Budget
FY2022
Estimate
FY2023
Proposed
Budget
FY2021
Budgeted
vs. FY2022
Proposed
Budget (%
Change)
FY2022 Est.
vs. FY2023
Prop. (%
Change)
Expenditures by Expense Type
This chart and supporting detail include the balance of transfers out from the general fund as an expenditure. These funds are usually included after other sources and uses and not included within operating expenditures. Please see capital projects detail for more information on the use of these funds.
Budgeted Expenditures by Expense Type
Personnel Services (39.4%)
Transfer Out (27.8%)
Contract Services (16.8%)
Debt Service (6.1%)
Other Expense (3.2%)
Utilities (2%)
Capital Outlay (1.7%)
Repairs and Maintenance (0.9%)
Payout (0.8%)
City of Cotati | Fiscal Year 2022/23 Budget Page 123
12.a
Packet Pg. 509 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Budgeted and Historical Expenditures by Expense Type
Millions
Agency Fees
Contributions
Administrative Fee Materials and Supplies
Payout
Repairs and Maintenance
Capital Outlay
Utilities
Other Expense
Debt Service
Contract Services
Transfer Out
Personnel Services
FY2017FY2018
FY2019
FY2020FY2021FY2022
FY2023
$-2.5
$0
$2.5
$5
$7.5
$10
$12.5
$15
Expense Objects
Personnel
Services
$4,144,521 $4,240,454 $4,576,802 $5,252,511 $9,663,496 $5,237,720 -0.3% Payout $419,960 $47,380 $95,876 $78,040 $107,162 $105,480 35.2% Materials and
Supplies
$64,364 $109,997 $77,248 $90,450 $90,450 $88,860 -1.8%
Contract Services $1,215,923 $1,232,847 $1,509,002 $2,102,075 $2,017,075 $2,234,596 6.3% Utilities $238,788 $261,389 $297,152 $311,775 $311,775 $264,550 -15.1% Repairs and
Maintenance
$96,744 $236,618 $233,947 $267,600 $267,600 $117,000 -56.3% Other Expense $347,916 $297,250 $375,887 $308,818 $308,818 $423,629 37.2% Administrative
Fee
$69,734 $56,886 $53,674 $77,780 $77,780 $63,480 -18.4%
Debt Service $3,878 -$1,911 $11,855 $9,380 $9,380 $816,404 8,603.7% Capital Outlay $0 $14,160 $16,646 $0 $0 $225,849 N/A
Transfer Out $984,431 $2,630,461 $1,567,550 $3,758,340 $1,214,342 $3,696,655 -1.6% Contributions $15,700 $24,214 $24,735 $26,000 $26,000 $25,000 -3.8% Total Expense
Objects:
$7,601,959 $9,149,744 $8,840,375 $12,282,769 $14,093,878 $13,299,223 8.3% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022
Adopted
Budget
FY2022
Estimate
FY2023
Proposed
Budget
FY2022
Adopted
Budget vs.
FY2023
Budgeted (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 124
12.a
Packet Pg. 510 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Fund Balance
The fund balance for Fiscal Year 2022/23 is projected to decrease due to use of funds to stimulate significant capital projects during the year with over $4.5M in transfers out for said projects. The City will continue to maintain the required reserve of 25% of operating expenses.
Fund Balance Projections
Assigned Unassigned
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$2M
$4M
$6M
$8M
$10M
FY2019 FY2020 FY2021 FY2022 FY2023 % Change $ Change
Fund Balance Actual Actual Actual Estimated Actuals Proposed Budget Unassigned $5,595,806 $5,391,045 $7,018,952 $4,264,059 $2,431,381 -43% $-1,832,678 Assigned $1,654,384 $1,910,969 $1,818,206 $3,219,883 $2,198,149 -31.7% $-1,021,734 Total Fund Balance: $7,250,190 $7,302,014 $8,837,158 $7,483,942 $4,629,530 -38.1% $-2,854,412 City of Cotati | Fiscal Year 2022/23 Budget Page 125
12.a
Packet Pg. 511 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Enterprise
Funds
(Water/Sewer)
This page is provided as a summary of the enterprise funds for the City, which includes both the Operating and Capital Funds for both Water and Sewer Services provided to the Community. This is for presentational purposes only and the funds are strictly segregated within the financial system.
Summary
The City of Cotati is projecting $5.91M of revenue in FY2023, which represents a 20.1% increase over the prior year. Budgeted expenditures are projected to increase by 48.1% or $2.76M to $8.5M in FY2023.
Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$2.5M
$5M
$7.5M
$10M
City of Cotati | Fiscal Year 2022/23 Budget Page 126
12.a
Packet Pg. 512 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Revenue by Fund
Revenues are primarily derived from fees for services. These fees are subject to independent evaluations with Rate Studies.
The City will be engaged in a new rate study in Fiscal Year 2021/22 to evaluate the appropriate rates to be applied for services. The rates will be in effect for the next 5 years. 2023 Revenue by Fund
Sewer Operating Fund (51.9%)
Water Operating (37.2%)
Sewer Capital Reserve (10.9%)
Water Capital Fund (0.1%)
Budgeted and Historical Revenue by Fund
Millions
Water Capital Fund
Sewer Capital Reserve Water Operating
Sewer Operating Fund
FY2017
FY2018
FY2019
FY2020
FY2021
FY2022FY2023
$0
$2
$4
$6
$8
Sewer
Operating Fund
$2,386,892 $2,602,763 $2,667,644 $2,726,850 $2,788,000 $3,067,000 10% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023 Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 127
12.a
Packet Pg. 513 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Sewer Capital
Reserve
$108,015 $721,808 $192,562 $122,569 $122,569 $641,787 423.6% Water
Operating
$1,754,369 $1,929,407 $2,137,127 $2,069,300 $2,069,300 $2,198,000 6.2% Water Capital
Fund
$22,613 $234,555 $92,732 $6,700 $333,700 $6,700 -98%
Total: $4,271,889 $5,488,533 $5,090,065 $4,925,419 $5,313,569 $5,913,487 11.3% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023 Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
Expenditures by Fund
Expenditures within the operating funds include all the cost to provide services to the utility users including personnel, insurance, cost of water/wastewater treatment, equipment, technological systems, bank fees, etc. Capital Funds are used to support infrastructure improvements and maintenance. See the detail under the expenditure by expense type below. 2023 Expenditures by Fund
Sewer Operating Fund (43%)
Water Operating (32.2%)
Sewer Capital Reserve (15.1%)
Water Capital Fund (9.8%)
City of Cotati | Fiscal Year 2022/23 Budget Page 128
12.a
Packet Pg. 514 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Budgeted and Historical Expenditures by Fund
Millions
Water Capital Fund
Sewer Capital Reserve Water Operating
Sewer Operating Fund
FY2017
FY2018
FY2019
FY2020
FY2021FY2022FY2023
$0
$2
$4
$6
$8
$10
Sewer
Operating Fund
$2,516,628 $2,679,484 $3,098,568 $3,178,683 $3,354,994 $3,562,353 6.2% Sewer Capital
Reserve
$357,160 $252,243 $341,312 $196,000 $196,000 $1,250,000 537.8% Water
Operating
$1,475,577 $1,685,804 $1,993,792 $2,148,306 $2,132,324 $2,672,636 25.3% Water Capital
Fund
$346,145 $400,817 $306,254 $215,000 $215,000 $808,900 276.2% Total: $4,695,510 $5,018,348 $5,739,926 $5,737,989 $5,898,318 $8,293,888 40.6% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023 Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 129
12.a
Packet Pg. 515 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Expenditures by Expense Type
Budgeted Expenditures by Expense Type
Capital Outlay (26.5%)
Debt Service (20.7%)
Wastewater Treatment (17.1%)
Personnel Services (16.1%)
Water Usage (7.2%)
Contract Services (5.7%)
Other Expense (2%)
Repairs and Maintenance (1.7%)
Utilities (1.1%)
Payout (0.7%)
Budgeted and Historical Expenditures by Expense Type
Millions
Depreciation
Transfer Out
Administrative Fee
Backflow Materials and Supplies
Conservation
Payout
Utilities
Repairs and Maintenance
Other Expense
Contract Services Water Usage
Personnel Services Wastewater Treatment
Debt Service
Capital Outlay
FY2017
FY2018
FY2019
FY2020
FY2021
FY2022
FY2023
$-5
$-2.5
$0
$2.5
$5
$7.5
$10
Expense Objects
Personnel
Services
$990,435 $1,308,111 $1,426,942 $1,457,363 $1,410,963 $1,337,950 -5.2% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022
Adopted
Budget
FY2022
Estimate
FY2023
Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 130
12.a
Packet Pg. 516 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Payout $53,812 $12,333 $76,172 $35,430 $62,718 $55,290 -11.8% Materials and
Supplies
$19,365 $54,386 $25,575 $29,000 $29,000 $29,428 1.5%
Contract Services $254,383 $320,106 $348,512 $447,071 $447,071 $475,336 6.3% Utilities $78,598 $104,334 $113,397 $117,030 $118,330 $91,350 -22.8% Repairs and
Maintenance
$81,145 $86,991 $125,174 $119,800 $119,800 $137,750 15% Other Expense -$4,253,345 $72,305 -$342,338 $166,073 $166,073 $168,884 1.7% Administrative
Fee
$24 $27 -$4,211 $30 $640 $30 -95.3%
Debt Service $843,058 $904,210 $901,391 $1,039,522 $1,066,903 $1,718,571 61.1% Capital Outlay $4,720,186 $83,131 $736,086 $411,000 $411,000 $2,200,050 435.3% Depreciation $457,711 $650,346 $541,597 $0 $0 $0 0%
Water Usage $454,827 $475,192 $602,082 $686,000 $686,000 $600,000 -12.5% Backflow $10,674 $11,418 $12,406 $17,000 $17,000 $17,000 0% Wastewater
Treatment
$939,697 $885,435 $1,142,028 $1,170,420 $1,320,570 $1,420,000 7.5% Conservation $44,940 $50,023 $35,113 $42,250 $42,250 $42,250 0% Total Expense
Objects:
$4,695,510 $5,018,348 $5,739,926 $5,737,989 $5,898,318 $8,293,888 40.6% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022
Adopted
Budget
FY2022
Estimate
FY2023
Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 131
12.a
Packet Pg. 517 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Water
Operating
Fund 401
The goal of the Water Division is to: Continuously provide an adequate supply of water that is safe and healthy for customers. Assure fair collection of water revenue by maintaining all City water meters within tolerances established by the American Water Works Association, and by maintaining all consumer meters in proper operating condition.
This is a major fund for the City as it accounts for more that 10% of City-wide Revenues and Expenses during a fiscal year.
Summary
The City of Cotati is projecting almost $2.2M of revenue in FY2023, which represents a 6.2% increase over the prior year.
Budgeted expenditures are projected to increase by 24.4% or $524.3K to $2.67M in FY2023.
Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$500K
$1M
$1.5M
$2M
$2.5M
$3M
City of Cotati | Fiscal Year 2022/23 Budget Page 132
12.a
Packet Pg. 518 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Revenues by Source
Revenues are generated based on the water usage, as multiplied by the water usage rate as well as the base service charges.
Projections for revenues are based on known rate increases as well as historical trends for usage. Due to ongoing drought environment, these revenues may fluctuate due to changes in usage as conservation efforts are initiated across the community.
Projected 2023 Revenues by Source
Charges for Services (97.7%)
Customer Fees (2.1%)
Other Revenues (0.2%)
Budgeted and Historical Revenues by Source
Millions
Development Fees
Transfers In
Grants
Other Revenues
Customer Fees
Charges for Services
FY2017
FY2018
FY2019
FY2020
FY2021
FY2022
FY2023
$0
$0.5
$1
$1.5
$2
$2.5
$3
City of Cotati | Fiscal Year 2022/23 Budget Page 133
12.a
Packet Pg. 519 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Revenue Source
Other
Revenues
$22,986 $16,628 $8,982 $5,000 $5,000 $5,000 0%
Charges for
Services
$1,675,913 $1,866,192 $2,046,966 $2,025,000 $2,025,000 $2,147,000 6% Development
Fees
$40 $0 $0 $0 $0 $0 0%
Customer
Fees
$55,430 $46,587 $80,986 $39,300 $39,300 $46,000 17%
Grants $0 $0 $194 $0 $0 $0 0%
Total Revenue
Source:
$1,754,369 $1,929,407 $2,137,127 $2,069,300 $2,069,300 $2,198,000 6.2% Name FY2019
Actual
FY2019
Actual
FY2020
Actual
FY2020
Actual
FY2021
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022 Adopted
Budget
FY2022
Estimate
FY2022
Estimate
FY2023 Proposed
Budget
FY2023 Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
FY2022 Est. vs.
FY2023 Prop. (%
Change)
Expenditures by Expense Type
Operating expenses are primarily driven by personnel costs as well as direct charges for water purchases from the Sonoma County Water Agency. Both of these expenses are expected to increase due to negotiated MOU increases for staff plus pension obligation costs, and increasing costs from the Water Agency. Additionally, in Fiscal Year 2022/23 the water fund has intended to pay off the remaining loan from sewer thus increasing the debt service 557% to $686.5K.
Budgeted Expenditures by Expense Type
Debt Service (25.7%)
Wa Personnel Services (25.1%) Water Usage (22.4%)
Contract Services (11%)
Repairs and Maintenance (3.5%)
Other Expense (3.4%)
Utilities (2.9%)
Capital Outlay (2%)
Conservation (1.6%)
Payout (1.1%)
City of Cotati | Fiscal Year 2022/23 Budget Page 134
12.a
Packet Pg. 520 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Budgeted and Historical Expenditures by Expense Type
Millions
Transfer Out
Administrative Fee
Backflow Materials and Supplies
Payout
Conservation
Capital Outlay
Utilities
Other Expense
Repairs and Maintenance
Contract Services Water Usage
Personnel Services
Debt Service
FY2017
FY2018
FY2019
FY2020FY2021FY2022
FY2023
$-0.5
$0
$0.5
$1
$1.5
$2
$2.5
$3
Expense Objects
Personnel
Services
$490,371 $680,058 $724,568 $749,450 $720,109 $670,260 -6.9% Payout $27,289 $6,167 $38,324 $18,160 $31,519 $28,110 -10.8% Materials and
Supplies
$12,717 $48,297 $13,875 $22,000 $22,000 $22,216 1%
Contract Services $127,824 $186,230 $217,096 $251,907 $251,907 $293,734 16.6% Utilities $66,514 $91,127 $97,990 $101,580 $101,580 $76,500 -24.7% Repairs and
Maintenance
$61,683 $41,112 $77,023 $74,500 $74,500 $92,750 24.5%
Other Expense $161,699 $82,726 $168,363 $80,960 $80,960 $89,742 10.8% Administrative
Fee
$19 $21 -$4,357 $30 $30 $30 0%
Debt Service $17,020 $13,434 $11,309 $104,469 $104,469 $686,469 557.1% Capital Outlay $0 $0 $0 $0 $0 $53,575 N/A
Water Usage $454,827 $475,192 $602,082 $686,000 $686,000 $600,000 -12.5% Backflow $10,674 $11,418 $12,406 $17,000 $17,000 $17,000 0% Conservation $44,940 $50,023 $35,113 $42,250 $42,250 $42,250 0% Total Expense
Objects:
$1,475,577 $1,685,804 $1,993,792 $2,148,306 $2,132,324 $2,672,636 25.3% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023
Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 135
12.a
Packet Pg. 521 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Fund Balance
The fund balance continues to exceed the required 33% reserve requirement as set out by Council resolution. With the adopted rate increases in effect we anticipate future fund balances to continue to increase in line with the rate study. We will continue to monitor the reserves to ensure the stability of this fund for our community into the future.
Fund Balance Projections
Unassigned Assigned
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$250K
$500K
$750K
$1M
$1.25M
$1.5M
FY2019 FY2020 FY2021 FY2022 FY2023 % Change $ Change
Fund Balance Actual Actual Actual Estimated Actuals Proposed Budget Unassigned $677,541 $759,547 $497,021 $234,542 $58,685 -75% $-175,857 Assigned $481,323 $551,882 $657,951 $936,534 $637,755 -31.9% $-298,779 Total Fund Balance: $1,158,864 $1,311,429 $1,154,972 $1,171,076 $696,440 -40.5% $-474,636 City of Cotati | Fiscal Year 2022/23 Budget Page 136
12.a
Packet Pg. 522 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Water
Capital
Fund 402
This fund is used to account for capital projects and infrastructure needs to support the ongoing operations for our water customers.
Summary
The City of Cotati is projecting $6.7K of revenue in FY2023, which represents no change over the prior year. Budgeted expenditures are projected to increase by 276.2% or $693.9K to almost $809K in FY2023.
Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$250K
$500K
$750K
$1M
Revenues by Source
Budgeted and Historical Revenues by Source
Millions
Charges for Services
Impact Fees
Transfers In
Other Revenues
FY2017
FY2018
FY2019
FY2020
FY2021
FY2022
FY2023
$0
$0.25
$0.5
$0.75
$1
$1.25
$1.5
City of Cotati | Fiscal Year 2022/23 Budget Page 137
12.a
Packet Pg. 523 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Revenue Source
Other
Revenues
$16,747 $22,410 $21,673 $6,700 $6,700 $6,700 0%
Charges for
Services
$0 $1,750 $0 $0 $0 $0 0%
Impact Fees $5,866 $210,395 $71,059 $0 $327,000 $0 -100% Total Revenue
Source:
$22,613 $234,555 $92,732 $6,700 $333,700 $6,700 -98%
Name FY2019
Actual
FY2019
Actual
FY2020
Actual
FY2020
Actual
FY2021
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022 Adopted
Budget
FY2022
Estimate
FY2022
Estimate
FY2023 Proposed
Budget
FY2023 Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
FY2022 Est. vs.
FY2023 Prop. (%
Change)
Expenditures by Expense Type
The Water Fund has implemented strategic capital projects over the last five years, focusing on system repairs and maintenance, including related technology integration. With the adopted five-year capital plan, reserves from the water fund are currently being maintained to support the future major project of the Cypress Water Tank replacement. Additional expenditures are anticipated to continue relating to the risk mitigation around PG&E public safety power shutoffs, which have required rentals of generators to support the wells.
Strategic projects anticipated for FY2023 include the SCADA System Server Upgrade and Relocation, as well as the P-1 Pipeline Replacement in the commercial district.
Note that depreciation expense is a non-budgeted item, as it is non-cash and represents the usage of assets currently in service.
Budgeted and Historical Expenditures by Expense Type
Millions
Other Expense
Depreciation
Transfer Out
Capital Outlay
FY2017
FY2018
FY2019
FY2020
FY2021
FY2022
FY2023
$-1
$-0.5
$0
$0.5
$1
$1.5
Expense Objects
Other Expense -$158,447 -$12,150 $0 $0 $0 $0 0%
Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023 Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 138
12.a
Packet Pg. 524 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Capital Outlay $173,139 $12,150 $13,439 $215,000 $215,000 $808,900 276.2% Depreciation $331,453 $400,817 $292,815 $0 $0 $0 0%
Total Expense
Objects:
$346,145 $400,817 $306,254 $215,000 $215,000 $808,900 276.2% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023 Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
Fund Balance
The Water Fund has implemented strategic capital projects over the last three years, focusing on system repairs and maintenance, including related technology integration. With the multi-year capital plan, reserves from the Water Fund are currently being maintained to support the future major project of the Cypress Water Tank Replacement, as this is a significant project that will further assist in risk mitigation for possible fire dangers.
Fund Balance Projections
Fund Balance
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$1M
$250K
$500K
$750K
City of Cotati | Fiscal Year 2022/23 Budget Page 139
12.a
Packet Pg. 525 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Sewer
Operating
Fund 404
The goal of the Sewer Division is to: Protect the health and welfare of the community by insuring the continuous, uninterrupted operation of the wastewater collection and transmission system. Provide appropriate maintenance and repair of wastewater collection and transmission systems and appurtenances.
This is a major fund for the City, as it accounts for more than 10% of the City-wide Revenues and Expenses during a fiscal year.
Summary
The City of Cotati is projecting $3.07M of revenue in FY2023, which represents a 12.5% increase over the prior year. Budgeted expenditures are projected to increase by 12.1% or $383.67K to $3.56M in FY2023.
Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$1M
$2M
$3M
$4M
Revenues by Source
Revenues are generated based on the sewer usage as multiplied by the sewer usage rate as well as the base service charges.
Projections for revenues are based on the known rate increases as well as historical trends for the usage. Due to the current drought environment these revenues may decrease due to reduced usage of water and thus waste water/sewage.
In order to make sure that correct rates are applied to users of the water service, the City initiated a new rate study in FY2022.
City of Cotati | Fiscal Year 2022/23 Budget Page 140
12.a
Packet Pg. 526 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Budgeted and Historical Revenues by Source
Millions
Impact Fees
Debt Service
Other Revenues
Charges for Services
FY2017
FY2018
FY2019
FY2020FY2021FY2022FY2023
$0
$0.5
$1
$1.5
$2
$2.5
$3
$3.5
Revenue Source
Other
Revenues
$63,659 $141,530 $25,059 $5,000 $5,000 $5,000 0%
Charges for
Services
$2,323,233 $2,393,211 $2,569,085 $2,721,850 $2,783,000 $3,062,000 10% Impact Fees $0 $19,250 $73,500 $0 $0 $0 0%
Debt Service $0 $48,772 $0 $0 $0 $0 0%
Total Revenue
Source:
$2,386,892 $2,602,763 $2,667,644 $2,726,850 $2,788,000 $3,067,000 10% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023
Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 141
12.a
Packet Pg. 527 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Expenditures by Expense Type
Increases in Operating Expenses are primarily due to the increasing cost of treatment charges.
Budgeted Expenditures by Expense Type
Wastewater Treatment (39.9%)
Debt Service (29%)
Personnel Services (18.7%)
Contract Services (5.1%)
Capital Outlay (2.5%)
Other Expense (2.2%)
Repairs and Maintenance (1.3%)
Payout (0.8%)
Utilities (0.4%)
Budgeted and Historical Expenditures by Expense Type
Millions
Administrative Fee
Transfer Out
Conservation Materials and Supplies
Utilities
Payout
Repairs and Maintenance
Other Expense
Capital Outlay
Contract Services
Personnel Services
Debt Service Wastewater Treatment
FY2017
FY2018
FY2019
FY2020
FY2021
FY2022
FY2023
$0
$1
$2
$3
$4
Expense Objects
Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022
Adopted
Budget
FY2022
Estimate
FY2023
Proposed
Budget
FY2022 Est. vs.
FY2023 Prop.
(% Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 142
12.a
Packet Pg. 528 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Personnel
Services
$500,064 $628,053 $702,373 $707,913 $690,854 $667,690 -3.4% Payout $26,523 $6,167 $37,848 $17,270 $31,199 $27,180 -12.9% Materials and
Supplies
$6,648 $6,089 $11,700 $7,000 $7,000 $7,212 3%
Contract Services $126,559 $133,876 $131,416 $195,164 $195,164 $181,602 -6.9% Utilities $12,084 $13,207 $15,407 $15,450 $16,750 $14,850 -11.3% Repairs and
Maintenance
$19,462 $45,879 $48,152 $45,300 $45,300 $45,000 -0.7%
Other Expense $59,548 $69,996 $99,002 $85,113 $85,113 $79,142 -7% Administrative
Fee
$5 $6 $146 $0 $610 $0 -100%
Debt Service $826,038 $890,776 $890,082 $935,053 $962,434 $1,032,102 7.2% Capital Outlay $0 $0 $20,415 $0 $0 $87,575 N/A
Wastewater
Treatment
$939,697 $885,435 $1,142,028 $1,170,420 $1,320,570 $1,420,000 7.5% Total Expense
Objects:
$2,516,628 $2,679,484 $3,098,568 $3,178,683 $3,354,994 $3,562,353 6.2% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022
Adopted
Budget
FY2022
Estimate
FY2023
Proposed
Budget
FY2022 Est. vs.
FY2023 Prop.
(% Change)
Fund Balance
The fund balance continues to exceed the required 33% reserve requirement as set out by council resolution. We will continue to monitor the reserves to ensure the stability of this fund for our community into the future.
Fund Balance Projections
Unassigned Assigned
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$1M
$2M
$3M
$4M
FY2019 FY2020 FY2021 FY2022 FY2023 % Change $ Change
Total Fund Balance: $3,266,926 $3,154,927 $2,813,586 $2,258,113 $1,734,000 -23.2% $-524,113 City of Cotati | Fiscal Year 2022/23 Budget Page 143
12.a
Packet Pg. 529 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) FY2019 FY2020 FY2021 FY2022 FY2023 % Change $ Change
Fund Balance Actual Actual Actual Estimated Actuals Proposed Budget Unassigned $2,436,439 $2,269,429 $1,842,895 $1,174,347 $596,351 -49.2% $-577,996 Assigned $830,487 $885,498 $970,691 $1,083,766 $1,137,649 5% $53,883 Total Fund Balance: $3,266,926 $3,154,927 $2,813,586 $2,258,113 $1,734,000 -23.2% $-524,113 City of Cotati | Fiscal Year 2022/23 Budget Page 144
12.a
Packet Pg. 530 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Sewer
Capital
Fund 405
This fund is used to account for capital projects and infrastructure needs to support the ongoing operations for our sewer customers.
Summary
The City of Cotati is projecting $641.79K of revenue in FY2023, which represents a 423.6% increase over the prior year.
Budgeted expenditures are projected to increase by 537.8% or $1.05M to $1.25M in FY2023.
Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$250K
$500K
$750K
$1M
$1.25M
$1.5M
City of Cotati | Fiscal Year 2022/23 Budget Page 145
12.a
Packet Pg. 531 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Revenues by Source
Revenues for FY2023 were calculated assuming (1) Charges for Services have a 5% increase (calculation of the rate increases offset by reduced usage), (2) Connection Fees follow the change consistent with the historical average and (3) Debt proceeds are significantly higher due to the full payoff of the remaining $552K interfund loan from the Water Fund.
Budgeted and Historical Revenues by Source
Millions
Transfers In
Other Revenues
Charges for Services
Impact Fees
Debt Service
FY2017
FY2018FY2019FY2020FY2021FY2022FY2023
$0
$0.2
$0.4
$0.6
$0.8
$1
$1.2
Revenue Source
Other
Revenues
$42,900 $5,290 $1,431 $3,000 $3,000 $3,000 0%
Charges for
Services
$36,567 $36,567 $36,567 $15,100 $15,100 $36,567 142.2%
Impact Fees $11,532 $666,517 $143,256 $0 $0 $50,000 N/A Debt Service $17,016 $13,434 $11,309 $104,469 $104,469 $552,220 428.6% Total Revenue
Source:
$108,015 $721,808 $192,562 $122,569 $122,569 $641,787 423.6% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023 Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 146
12.a
Packet Pg. 532 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Expenditures by Expense Type
The Sewer Fund continues strategic capital projects after the major investment in the Laguna Bypass Sewer Replacement Project in FY2019. For FY2023, the City is planning to focus on the West Sierra Avenue Sewer Replacement, system repairs and maintenance, including inflow and infiltration (I&I) reduction projects, as well as investments in Phase 2 of the Sewer SCADA system.
Budgeted and Historical Expenditures by Expense Type
Millions
Contract Services
Other Expense
Depreciation
Transfer Out
Wastewater Treatment
Capital Outlay
FY2017
FY2018FY2019
FY2020
FY2021FY2022FY2023
$-6
$-4
$-2
$0
$2
$4
$6
Expense Objects
Other Expense -$4,316,145 -$68,267 -$609,702 $0 $0 $0 0% Capital Outlay $4,547,047 $70,981 $702,232 $196,000 $196,000 $1,250,000 537.8% Depreciation $126,258 $249,529 $248,782 $0 $0 $0 0%
Total Expense
Objects:
$357,160 $252,243 $341,312 $196,000 $196,000 $1,250,000 537.8% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023 Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 147
12.a
Packet Pg. 533 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Fund Balance
This fund balance will fluctuate based on usage of funds for strategic capital projects. We will continue to evaluate and maintain the fund to meet future needs.
Fund Balance Projections
Fund Balance
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$-1000000
$0
$1M
$2M
$3M
$4M
$5M
City of Cotati | Fiscal Year 2022/23 Budget Page 148
12.a
Packet Pg. 534 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Special
Revenue
Funds
What are Special Revenue Funds? Special Revenue Funds are a group of accounts established by a government for restricted use to ensure that certain revenue sources are used or earmarked only for their specific purpose. This Special Revenue Fund type may be used to account for the proceeds of specific revenue sources that are legally restricted or restricted by City Council policy for a specified purpose.
Departmental Oversight of Special Revenue Funds
Each special revenue fund is managed by departments within the City. Below is the summary of the special revenue funds by their managing department.
Summary
The City of Cotati is projecting approximately $0.88M of revenue in FY2023, which represents a 25.4% decrease over the prior year. Budgeted expenditures are projected to decrease by 21.4% or $0.4M to $1.47M in FY2023.
Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$500K
$1M
$1.5M
$2M
City of Cotati | Fiscal Year 2022/23 Budget Page 149
12.a
Packet Pg. 535 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Revenue by Fund
2023 Revenue by Fund
Gas Tax (24.9%)
Public Safety (18.6%)
RMRA (15.3%)
Parks Measure M (9.6%)
MTC Street (9%)
In-Lieu-Inclusionary Hsng (7.7%)
Traffiffiffic Mitigation (6.1%)
Park In Lieu (3%)
PEG (2.3%)
K-9 Program (1.6%)
Community Facilities Dist (1.2%)
Bed Tax (0.5%)
Budgeted and Historical 2023 Revenue by Fund
Millions
CDBG
Lmd Assessment Districts
Linkage - Affordable Hsng
Disability Access And Education Revolving Fund
Bed Tax
Community Facilities Dist
K-9 Program
PEG
Park In Lieu
Traffic Mitigation
In-Lieu-Inclusionary Hsng
MTC Street
Parks Measure M
RMRA
Public Safety
Gas Tax
FY2017FY2018FY2019
FY2020
FY2021
FY2022
FY2023
$0
$0.25
$0.5
$0.75
$1
$1.25
$1.5
CDBG $35,701 $26,425 $240,000 $331,464 $0 $0 $0 -100% 0% Gas Tax $166,495 $187,715 $207,998 $171,601 $208,620 $208,620 $219,200 -100% 5.1% Name FY2019
Actual
FY2020
Actual
FY2020
Budgeted
FY2021
Actual
FY2022
Adopted
Budget
FY2022
Estimate
FY2023
Proposed
Budget
FY2021
Budgeted
vs.
FY2022
Budgeted
(%
Change)
FY2022
Est. vs.
FY2023
Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 150
12.a
Packet Pg. 536 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) MTC Street $65,689 $63,543 $60,000 $70,584 $60,000 $80,800 $79,700 -100% -1.4% Traffic Mitigation $11,609 $14,939 $247,920 $58,092 $396,920 $50,000 $54,000 -100% 8% Park In Lieu $5,077 $22,030 -$136,200 $73,287 $30,000 $30,000 $26,000 -100% -13.3% PEG $20,423 $20,021 $19,100 $19,263 $20,000 $20,000 $20,000 -100% 0% Public Safety $167,322 $175,995 $166,000 $171,159 $164,000 $164,000 $164,000 -100% 0% K-9 Program $195 $1,487 $5,000 $4,851 $7,340 $7,340 $13,840 -100% 88.6% In-LieuInclusionary
Hsng
$67,069 $83,041 $110,000 $69,389 $67,499 $67,499 $67,499 -100% 0% Bed Tax $909 $2,775 $4,000 $18,863 $4,000 $4,000 $4,000 -100% 0% Parks Measure M $0 $90,269 $0 $96,579 $85,000 $85,000 $85,000 -100% 0% Community
Facilities Dist
$0 $0 $0 $1,415 $0 $8,000 $10,400 N/A 30%
RMRA $131,273 $138,624 $127,700 $139,093 $135,000 $135,000 $135,000 -100% 0% Linkage -
Affordable Hsng
$1,217 $1,451 $0 $770 $0 -$500 $0 N/A -100%
Disability Access
And Education
Revolving Fund
$7,836 $76,479 $2,500 $3,068 $2,500 $2,500 $2,500 -100% 0% Lmd Assessment
Districts
$49,412 $49,878 $0 $0 $0 $0 $0 N/A 0%
ARPA 2021 $0 $0 $0 $0 $0 $1,772,630 $0 N/A -100%
Total: $730,227 $954,674 $1,054,018 $1,229,478 $1,180,879 $2,634,889 $881,139 -100% -66.6% Name FY2019
Actual
FY2020
Actual
FY2020
Budgeted
FY2021
Actual
FY2022
Adopted
Budget
FY2022
Estimate
FY2023
Proposed
Budget
FY2021
Budgeted
vs.
FY2022
Budgeted
(%
Change)
FY2022
Est. vs.
FY2023
Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 151
12.a
Packet Pg. 537 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Revenues by Source
Projected 2023 Revenues by Source
Taxes (45.2%)
Other Revenues (24.4%)
COPS GRANT-SLESA (11.3%)
Interfund Loan Payments (7.7%)
PSAF PROP 172 (7.3%)
Franchise Fees (2.3%)
Transfers In (1.6%)
Charges for Services (0.3%)
Budgeted and Historical Revenues by Source
Millions
CDBG Grant
Development Fees
Debt Service
Contributions
Other Income
Charges for Services
Transfers In
Franchise Fees
PSAF PROP 172
Interfund Loan Payments
COPS GRANT-SLESA
Other Revenues
Taxes
FY2017
FY2018FY2019FY2020FY2021
FY2022
FY2023
$0
$0.25
$0.5
$0.75
$1
$1.25
$1.5
Revenue Source
Taxes $222,200 $406,518 $356,962 $357,320 $386,120 $398,000 3.1% Interfund Loan
Payments
$0 $0 $0 $67,499 $67,499 $67,499 0%
Franchise Fees $20,237 $19,877 $19,177 $20,000 $20,000 $20,000 0% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023 Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 152
12.a
Packet Pg. 538 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) PSAF PROP 172 $60,643 $60,057 $62,866 $64,000 $64,000 $64,000 0% Other Revenues $283,675 $288,185 $292,502 $562,220 $215,300 $215,300 0% Charges for
Services
$3,250 $3,007 $2,971 $2,500 $2,500 $2,500 0%
CDBG Grant $15,595 $11,450 $331,464 $0 $1,772,630 $0 -100% COPS GRANTSLESA
$104,410 $115,492 $107,807 $100,000 $100,000 $100,000 0% Development
Fees
$0 $0 $0 $0 -$500 $0 -100%
Debt Service $0 $33,677 $50,878 $0 $0 $0 0%
Contributions $45 $1,437 $238 $0 $0 $0 0%
Transfers In $20,030 $14,975 $4,612 $7,340 $7,340 $13,840 88.6% Other Income $142 $0 $0 $0 $0 $0 0%
Total Revenue
Source:
$730,227 $954,674 $1,229,478 $1,180,879 $2,634,889 $881,139 -66.6% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023 Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 153
12.a
Packet Pg. 539 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Expenditures by Expense Type
Budgeted Expenditures by Expense Type
90.6%
7.9%
1.1%
0.4%
0.06%
Transfer Out
Contract Services
Other Expense
Contributions
Materials and Supplies
Budgeted and Historical Expenditures by Expense Type
Millions
Personnel Services
Utilities
Repairs and Maintenance
Landscaping
Administrative Fee
Capital Outlay
Housing Subsidy
Capital Project
Housing Project
Materials and Supplies
Contributions
Other Expense
Contract Services
Transfer Out
FY2017
FY2018FY2019
FY2020FY2021
FY2022
FY2023
$0
$0.5
$1
$1.5
$2
Expense Objects
Materials and
Supplies
$0 $677 $868 $840 $840 $840 0%
Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023
Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 154
12.a
Packet Pg. 540 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Contract Services $161,002 $273,336 $49,144 $192,500 $192,500 $116,578 -39.4% Utilities $13,011 $10,489 $0 $0 $0 $0 0%
Repairs and
Maintenance
$55 $0 $0 $0 $0 $0 0%
Other Expense $24,484 $28,848 $17,053 $25,000 $25,000 $15,500 -38% Landscaping $14,057 $8,357 $0 $0 $0 $0 0%
Administrative
Fee
$410 $412 $12 $0 $0 $0 0%
Capital Outlay $7,716 $0 $0 $0 $0 $0 0%
Transfer Out $992,077 $812,902 $750,254 $1,644,000 $3,416,630 $1,329,122 -61.1% Contributions $4,477 $4,789 $4,882 $4,500 $4,500 $5,200 15.6% Capital Project $35,625 $26,425 $290,583 $0 $0 $0 0%
Housing Project $45,411 $62,204 $27,208 $0 $0 $0 0%
Total Expense
Objects:
$1,298,325 $1,228,438 $1,140,005 $1,866,840 $3,639,470 $1,467,240 -59.7% Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023
Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 155
12.a
Packet Pg. 541 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) CDBG
Fund 202
Community Development Block Grant funds are administered by the County and may be used for projects that benefit low and moderate income residents or increase accessibility. The funding is used to improve accessibility or remove barriers to accessibility in public facilities, streets, and parks.
Summary
The City of Cotati has completed the grants projects for this fund and as such is not budgeting any revenue or expenditures for FY2023. We will continue to look for more CDBG grant opportunities for projects within the City.
Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$100K
$200K
$300K
$400K
Fund Balance
The fund balance remains constant at $76 as the capital projects supported by this grant have now completed.
Fund Balance Projections
Fund Balance
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$20
$40
$60
$80
City of Cotati | Fiscal Year 2022/23 Budget Page 156
12.a
Packet Pg. 542 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) City of Cotati | Fiscal Year 2022/23 Budget Page 157
12.a
Packet Pg. 543 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) MTC Street
Fund 204
This fund is utilized for revenues received for transportation and streets programs and funded by the Metropolitan Transportation Commission (MTC) or the Sonoma County Transportation Authority (SCTA). The MTC is the transportation planning, financing, and coordinating agency for the nine-county San Francisco Bay Area. In November of 2004, Sonoma County passed the Traffic Relief Act (Measure M) which provides 0.25% sales tax that is used to maintain local streets, accelerate the widening of Hwy 101, restore and enhance transit services, support the development of passenger rail services and build safe bicycle and pedestrian routes. The Sonoma County Transportation Authority (SCTA) administers the sales tax receipts and distributions of the Sonoma County Measure M revenue.
Summary
The City of Cotati is projecting $79,700 of revenue in FY2023, which represents a 32.8% increase over the prior year.
Budgeted expenditures are projected to be zero, a decrease of $80,000, as the City will be utilizing funds from the bond issuance for streets projects during FY2023.
Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$50K
$100K
$150K
$200K
City of Cotati | Fiscal Year 2022/23 Budget Page 158
12.a
Packet Pg. 544 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Revenues by Source
Measure M Streets is derived from a regional sales tax and as such the revenue projections are generated based on sales tax trends and known economic factors that are impacting regional sales or tax law.
Budgeted and Historical Revenues by Source
Millions
Other Revenues
Taxes
FY2017
FY2018
FY2019FY2020
FY2021FY2022FY2023
$0
$0.02
$0.04
$0.06
$0.08
$0.1
Revenue Source
Taxes $63,216 $62,862 $70,455 $60,000 $80,800 $79,700 -1.4% Other
Revenues
$2,473 $681 $129 $0 $0 $0 0%
Total Revenue
Source:
$65,689 $63,543 $70,584 $60,000 $80,800 $79,700 -1.4%
Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023 Proposed
Budget
FY2022 Est. vs.
FY2023 Prop. (%
Change)
City of Cotati | Fiscal Year 2022/23 Budget Page 159
12.a
Packet Pg. 545 Attachment: Proposed Budget FY 2022/23 (Adoption of Cotati's Budget for FY 2022/23) Expenditures by Expense Type
Measure M Streets is utilized for the maintenance and refurbishment of our local roads and bicycle safety projects. As such, all expenditures are related to transfers out to the capital projects funds that account for the expenditures for such projects.
There are no projected expenditures for FY2023
Budgeted and Historical Expenditures by Expense Type
Millions
Transfer Out
FY2018
FY2019FY2020FY2021
FY2022
$0
$0.05
$0.1
$0.15
$0.2
Expense Objects
Transfer Out $180,128 $104,970 $65,000 $80,000 $80,000 $0 -100% Total Expense
Objects:
$180,128 $104,970 $65,000 $80,000 $80,000 $0 -100%
Name FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022 Adopted
Budget
FY2022
Estimate
FY2023 Proposed
Budget
FY2022 Est. vs.