Agenda packet — Cotati City Council, June 25, 2024 (part 1 of 2)

AGENDA

JOINT MEETING OF THE COTATI CITY COUNCIL AND THE SUCCESSOR AGENCY TO THE

FORMER COTATI COMMUNITY REDEVELOPMENT AGENCY
City Council Chamber, City Hall 201 W. Sierra Avenue
Tuesday, June 25, 2024
6:00 PM REGULAR MEETING
The Cotati City Council welcomes you to its meetings that are generally scheduled for the 2nd and 4th Tuesday of every month. Your interest and participation are encouraged and appreciated.

City Council meeting agendas, minutes and recordings are posted on the City’s Meeting Portal at www.cotaticity.org. For questions about the agenda or to receive the City Council agenda by e-mail, contact the Deputy City Clerk at [email protected] or 707-665-3622.

Cotati City Council Meetings will be conducted in person in the Council Chamber. To guarantee your ability to participate, you must attend the meeting in person. As a courtesy to the public, the City allows citizens the opportunity to view and offer public comments virtually through Zoom Online video conferencing platform. Technical difficulties may occur that make the Zoom platform unavailable. If Zoom is unavailable, the meeting will continue. Participants considering using Zoom should consider attending in person, if they desire to ensure their ability to view the meeting and offer public comments.

Subject to the above disclaimer, Zoom Online video conferencing is available to watch or listen in the following ways:

1. Using the following online livestream meeting portal link: https://cotaticity.primegov.com/public/portal

2. Cable T.V. Broadcast, local channel 28
Members of the public can participate in the meeting online by clicking the link below:
https://us02web.zoom.us/j/88926343307?pwd=jCB3kQ3LUuMIVIcd3HHOsrELSWIbop.1 If you do not have the ability to join online, but would like to participate in the meeting, you can call into the meeting using your telephone, by dialing one of the following numbers and entering the meeting credentials:

Webinar ID: 889 2634 3307 Passcode: 416793
+1 (669) 900-6833 or +1 (346) 248-7799 or +1 (253) 215-8782 or +1 (301) 715-8592 or +1 (312) 626-6799 or +1 (929) 436-2866 Attendees may join the meeting any time after 5:45pm. Attendees will be muted until they are called upon for Public Comment. To make a public comment, use the “raise hand” icon on your smart device or desktop computer, or dial *9 if you are using just your telephone. Please listen carefully for the Mayor or City Clerk to address you by name (or phone number) and for the audible Zoom notification that you have been unmuted. Once you begin your public comment, your three minutes will begin.

If you would prefer to submit your public comment in writing, please email your comments to [email protected]. If you are commenting on a specific agenda item or items, please state the agenda item number(s) in the subject line of the email. All comments received via email will be provided to the City Council or Planning Commission in writing and included as part of the record of the meeting.

Notice is hereby given that Council may discuss and/or take action on any or all of the items listed on this agenda.

Any writings or documents provided to a majority of the Cotati City Council regarding any item on this agenda will be made available for inspection in the online Meeting Portal at www.cotaticity.org and in the City Manager’s office located at 201 West Sierra Avenue, Cotati, California, during the City’s posted business hours.

Disabled Accommodation: Upon request, this agenda will be made available in appropriate formats to persons with disabilities as required by Section 202 of the Americans with Disabilities Act of 1990. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should contact the Deputy City Clerk at (707) 665-3622 at least 48 hours in advance of the meeting.

Rules of Decorum: To avoid distraction, the following meeting etiquette shall be enforced. • Silence electronic devices, including cell phones.

Cotati City Council Packet June 25, 2024
• Audience members are advised to keep conversations to a minimum or conduct them outside the building. • Photographs or video recordings using tri-pods or other means that would be distracting are to be taken only from the designated media area. • The Presiding Officer shall request that the audience withhold expressions of support or opposition for speakers in the interest of time and to encourage the full expression of differing views. (City Council Policy 2023-01 III.B.1.) Public Comment (Action items): Public comment on any one agenda item where the City Council will be taking some action is limited to no more than three (3) minutes per person. Action items are typically designated on the agenda title.

Public Comment (Non-Action items): Public comment on non- action agenda items shall be received during the designated portion of the agenda.

Comments shall be limited to no more than three (3) minutes for all non-action agenda items.

Waiver Warning: If you challenge decisions/direction of the City Council of the City of Cotati in court, you may be limited to raising only those issues you or someone else raised at public hearing(s) described in this agenda, or in written correspondence delivered to the City of Cotati at, or prior to, the public hearing(s).

City Council meetings are conducted according to City Council Policy 2023-01: City Council Rules. This policy available for inspection in the online Meeting Portal at www.cotaticity.org and in the City Manager’s office located at 201 West Sierra Avenue, Cotati, California, during the City’s posted business hours.

Those wishing to address the Council are asked to complete a speaker card and give it to the City Clerk. When you are called, step to the podium and state your name and address for the record. Persons wishing to address the Council are not required to identify themselves or complete a speaker card; (Gov’t. Code § 54953.3); however, this information assists the Mayor by ensuring that all persons wishing to address the Council are recognized and it assists the City Clerk in preparing the City Council meeting minutes.

1. CALL TO ORDER

2. ROLL CALL

3. LAND ACKNOWLEDGEMENT
The City of Cotati recognizes that we’re on the ancestral lands of the Coastal Miwok, who are the original caretakers of this area. We respectfully acknowledge the Indigenous peoples who have been stewarding and maintaining a relationship on this land as knowledge keepers for millennia. This acknowledgment does not take the place of authentic relationships with Indigenous communities but serves as a gesture of respect to the land we are on.

4. PLEDGE OF ALLEGIANCE

5. APPROVAL OF MINUTES AND NOTICE OF WAIVING OF READING OF ALL

RESOLUTIONS AND ORDINANCES INTRODUCED AND/OR ADOPTED UNDER THIS

AGENDA (ACTION)
A. COTATI CITY COUNCIL – REGULAR MEETING – JUNE 11, 2024

6. ANNOUNCEMENTS
A. Meeting Orientation for New Attendees/Viewers. In conformance with the Brown Act and the adopted City Council Rules, the meeting agenda includes items labeled as Action Items, where the City Council may consider the item. If the City Council considers the item, citizens will be afforded the opportunity to provide comments relevant to the item being discussed. The meeting agenda also includes a Citizens Business item, which is the designated place on the agenda where citizens have the right to say whatever they wish. However, the Brown Act prohibits the City Council from taking action or considering any item that is not this agenda, to ensure that other members of the community who wish to provide comment are notified in advance through a properly noticed meeting agenda.

B. Measure S supports police services, a variety of recreation programs for all ages, and the maintenance of our streets, parks, and public buildings. See details on the web at cotaticity.org Cotati City Council Packet June 25, 2024
C. Citizens interested in receiving City of Cotati community alerts via text or email are encouraged to enroll with CivicReady, by signing up on the City’s website, www.cotaticity.org, under the “How do I” link at the top of the homepage.

D. Like always, we love to hear from you, so please feel free to contact the City at 707-792-4600 or [email protected]. If you have a non-emergency issue after normal business hours, you can contact us at 707-792-4611 and of course if you have an emergency, please contact 9-1-1. Continue to look for updates on the City's website and social media channels available on Facebook, Instagram, and CivicReady.

7. PRESENTATIONS
A. PRESENTATION FROM ROHNERT PARK ANIMAL SERVICES
It is recommended that the City Council receive a presentation from Mickey Zeldes, Supervisor of the Rohnert Park Animal Services, on the services provided by Rohnert Park Animal Services. No action will be taken.

8. APPROVAL OF FINAL AGENDA (ACTION)
This item will only be opened for the public comment if the City Council proposes to take any action to modify this agenda.

9. CITIZEN BUSINESS AND PUBLIC COMMENT FOR CONSENT CALENDAR ITEMS Any member of the public wishing to speak to the Council on any item(s) listed on the Consent Calendar or any matter(s) not listed on the agenda that are within the subject matter jurisdiction of the Council may do so at this time. Pursuant to the Brown Act, the Council is not allowed to consider issues or take action on any item not listed on the agenda. Pursuant to City Council Policy 2023-01, comments of any member of the public are normally restricted to a total of three (3) minutes in length per person for matters not on the agenda and a total of three (3) minutes per person in length for any and all items on the Consent Calendar. The Mayor may extend the time limit for a reasonable time where a disability accommodation has been requested. To facilitate public comment, the Deputy Clerk will alert speakers when there are thirty seconds remaining.

10. CONSENT CALENDAR (ACTION)
A. FISCAL YEAR 24/25 SB 1 LIST OF PROJECTS AS REQUIRED BY THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
It is recommended the City Council of the City of Cotati adopt a resolution approving a list of projects for Fiscal Year 2024-25 funded by SB 1: the Road Repair and Accountability Act of 2027.

B. RESOLUTION ESTABLISHING ANNUAL APPROPRIATIONS (GANN) LIMIT FOR FISCAL YEAR 2024/25
It is recommended that the City Council Adopt a Resolution Approving the annual appropriations limit for the City of Cotati Fiscal Year 2024/25.

C. ADOPTION OF THE CITY-WIDE SALARY SCHEDULE FOR FISCAL YEAR 2024/25 It is recommended that the City Council adopt the fiscal year 2024/25 salary schedule, as updated per the current City labor agreements.

D. FINANCIAL POLICIES UPDATE
It is recommended that the City Council adopt a Resolution approving the consolidation and update of the comprehensive City of Cotati Financial Principles and Policies.

E. ADOPTION OF NOISE ORDINANCE AMENDMENTS TO RESTRICT THE USE OF Cotati City Council Packet June 25, 2024

GAS-POWERED LEAF BLOWERS DURING CERTAIN HOURS
It is recommended that the City Council adopt an ordinance amending the noise ordinance to restrict the use of gas-powered leaf blowers during certain hours and clarify the standards for determining violations.

11. DIRECTION ON FUTURE AGENDA ITEMS

12. PUBLIC HEARINGS (ACTION)
A. INTRODUCTION OF ORDINANCE AMENDING CHAPTER 2.22 OF COTATI

MUNICIPAL CODE ESTABLISHING COMMUNITY-POLICE ADVISORY

COMMITTEE
It is recommended that the Cotati City Council introduce an ordinance amending and restating in its entirety Chapter 2.22 of the Cotati Municipal Code to establish and define guidelines for a Community-Police Advisory Committee.

13. REGULAR AGENDA (ACTION)
A. CONSIDERATION OF A RESOLUTION AUTHORIZING THE CITY MANAGER TO

ENTER INTO AN EXCLUSIVE NEGOTIATING AGREEMENT WITH FREEBIRD

DEVELOPMENT LLC FOR THE DEVELOPMENT OF CITY OWNED PROPERTY AT 120 E COTATI AVENUE WITH AFFORDABLE HOUSING
It is recommended the City Council approve the attached resolution providing authorization to the City Manager to enter into an Exclusive Negotiating Agreement with Freebird Development LLC., subject to final review by the City Attorney, for the development of City-owned property at 120 E. Cotati Avenue with a 100-percent affordable housing project.

B. ADOPTION OF RESOLUTION APPROVING THE FISCAL YEAR 2024/25 BUDGET It is recommended that the City Council Adopt a Resolution Approving the City of Cotati Budget for Fiscal Year 2024/25.

C. DISCUSS NORCAL OAKS LICENSE AGREEMENT
It is recommended that the City Council provide direction to staff to implement the proposed public hours at Putnam Park and similar at Cator Field when the field opens for use.

14. CITY MANAGER'S REPORT

15. CITY COUNCIL MEMBER REPORTS

16. PUBLIC COMMENT ON NON-ACTION AGENDA ITEMS

17. CLOSED SESSION
A. CONFERENCE WITH CITY LABOR NEGOTIATORS (GOVERNMENT CODE SECTION 54957.6.) CITY DESIGNATED REPRESENTATIVE: CITY MANAGER OR DESIGNEE. EMPLOYEE ORGANIZATION: COTATI POLICE MANAGEMENT

ASSOCIATION (CPMA)

18. REPORT OUT OF CLOSED SESSION

19. INFORMATION RECEIVED AFTER THE AGENDA WAS POSTED
Cotati City Council Packet June 25, 2024
A. INFORMATION RECEIVED AFTER THE AGENDA WAS POSTED

20. ADJOURNMENT
Certification of Posting of the Notice: I declare under penalty of perjury that I am employed by the City of Cotati and that I posted this notice on the City’s website, bulletin boards of City Hall, Veterans’ Memorial Building and the SMART Train Depot, on or before June 20, 2024. /s/ Kevin Patterson, Deputy City Clerk

MINUTES

JOINT MEETING OF THE COTATI CITY COUNCIL AND THE SUCCESSOR AGENCY TO THE

FORMER COTATI COMMUNITY REDEVELOPMENT AGENCY
City Council Chamber, City Hall 201 W. Sierra Avenue
Tuesday, June 11, 2024
6:00 PM REGULAR MEETING

1. CALL TO ORDER
Mayor Sparks called the meeting to order at 6:00pm.

2. ROLL CALL
Attendee Name Title Status
Laura Sparks Mayor Present
Ben Ford Vice Mayor Present
Susan Harvey Councilmember Present
Sylvia Lemus Councilmember Present
Kathleen Rivers Councilmember Present
Staff Present: City Manger Damien O’Bid, City Attorney John Bakker, Deputy City Clerk Kevin Patterson, Director of Administrative Services Angela Courter, Director of Community Development Noah Housh, Director of Public Works/City Engineer Craig Scott, Police Chief Chris Simmons

3. LAND ACKNOWLEDGEMENT
The City of Cotati recognizes that we’re on the ancestral lands of the Coastal Miwok, who are the original caretakers of this area. We respectfully acknowledge the Indigenous peoples who have been stewarding and maintaining a relationship on this land as knowledge keepers for millennia. This acknowledgement does not take the place of authentic relationships with Indigenous communities but serves as a gesture of respect to the land we are on.

4. PLEDGE OF ALLEGIANCE

5. APPROVAL OF MINUTES AND NOTICE OF WAIVING OF READING OF ALL

RESOLUTIONS AND ORDINANCES INTRODUCED AND/OR ADOPTED UNDER THIS

AGENDA (ACTION)
A. COTATI CITY COUNCIL – SPECIAL MEETING – MAY 13, 2024 B. COTATI CITY COUNCIL – REGULAR MEETING – MAY 28, 2024 6 of 814
Cotati City Council Minutes June 11, 2024
RESULT: Approve [5 TO 0]
MOVER: Susan Harvey, Councilmember
SECONDER: Ben Ford, Vice Mayor
AYES: Sparks, Ford, Harvey, Lemus, Rivers
NAYS: None

6. ANNOUNCEMENTS
A. Meeting Orientation for New Attendees/Viewers. In conformance with the Brown Act and the adopted City Council Rules, the meeting agenda includes items labeled as Action Items, where the City Council may consider the item. If the City Council considers the item, citizens will be afforded the opportunity to provide comments relevant to the item being discussed. The meeting agenda also includes a Citizens Business item, which is the designated place on the agenda where citizens have the right to say whatever they wish. However, the Brown Act prohibits the City Council from taking action or considering any item that is not on this agenda, to ensure that other members of the community who wish to provide comment are notified in advance through a properly noticed meeting agenda.

B. Measure S supports police services, a variety of recreation programs for all ages, and the maintenance of our streets, parks, and public buildings. See details on the web at cotaticity.org C. Citizens interested in receiving City of Cotati community alerts via text or email are encouraged to enroll with CivicReady, by signing up on the City’s website, www.cotaticity.org, under the “How do I” link at the top of the homepage.

7. PROCLAMATIONS
A. PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF COTATI

CELEBRATING JUNETEENTH
Councilmember Rivers read the proclamation. Proclamation was accepted by Abby of Rancho Cotate High School.

B. PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF COTATI

RECOGNIZING WOMEN VETERANS DAY
Mayor Sparks read the proclamation.

8. APPROVAL OF FINAL AGENDA (ACTION)
No changes.

9. CITIZEN BUSINESS AND PUBLIC COMMENT FOR CONSENT CALENDAR ITEMS Any member of the public wishing to speak to the Council on any item(s) listed on the Consent Calendar or any matter(s) not listed on 7 of 814
Cotati City Council Minutes June 11, 2024
the agenda that are within the subject matter jurisdiction of the Council may do so at this time. Pursuant to the Brown Act, the Council is not allowed to consider issues or take action on any item not listed on the agenda. Pursuant to City Council Policy 2023-01, comments of any member of the public are normally restricted to a total of three (3) minutes in length per person for matters not on the agenda and a total of three (3) minutes per person in length for any and all items on the Consent Calendar. The Mayor may extend the time limit for a reasonable time where a disability accommodation has been requested. To facilitate public comment, the Deputy Clerk will alert speakers when there are thirty seconds remaining.

Public Comment:

Shelley Berman of Cotati

10. CONSENT CALENDAR (ACTION)
A. REVISED MOU FOR THE COTATI POLICE OFFICERS ASSOCIATION (2024-2029) B. ADOPTION OF ENVIRONMENTALLY PREFERABLE PURCHASING POLICIES RESULT: Adopt [5 TO 0]
MOVER: Ben Ford, Vice Mayor
SECONDER: Susan Harvey, Councilmember
AYES: Sparks, Ford, Harvey, Lemus, Rivers
NAYS: None

11. DIRECTION OF FUTURE AGENDA ITEMS
None.

12. PUBLIC HEARINGS (ACTION)
A. INTRODUCTION OF NOISE ORDINANCE AMENDMENTS TO RESTRICT THE USE

OF GAS-POWERED LEAF BLOWERS DURING CERTAIN HOURS
Presentation by City Manager Damien O’Bid.

Councilmembers comment.

Public Comment:

Adrienne Lauby of Cotati
Shelley Berman of Cotati
After discussion, Vice Mayor Ford motioned to amend section G(1) of the ordinance, replacing “residential zone” with “within City limits except in the industrial zone.” Motion passed 3-2.

Vice Mayor Ford then motioned to introduce the amended ordinance. Motion to introduce passed 3-2.

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Cotati City Council Minutes June 11, 2024
RESULT: Motion to Amend [3 TO 2]
MOVER: Ben Ford, Vice Mayor
SECONDER: Sylvia Lemus, Councilmember
AYES: Sparks, Ford, Lemus
NAYS: Harvey, Rivers
RESULT: Introduced [3 TO 2]
MOVER: Ben Ford, Vice Mayor
SECONDER: Sylvia Lemus, Councilmember
AYES: Sparks, Ford, Lemus
NAYS: Harvey, Rivers

13. REGULAR AGENDA (ACTION)
A. COTATI CHAMBER OF COMMERCE LICENSE AGREEMENT
Presentation by City Manager Damien O’Bid.

Councilmembers comment.

Public Comment:

Laurie Alderman of Cotati
RESULT: Approve [5 TO 0]
MOVER: Susan Harvey, Councilmember
SECONDER: Sylvia Lemus, Councilmember
AYES: Sparks, Ford, Harvey, Lemus, Rivers
NAYS: None
B. DISCUSS NORCAL OAKS LICENSE AGREEMENT
Presentation by City Manager Damien O’Bid.

Councilmembers comment.

Public Comment:

Kimberlyn Moffet of Cotati
Adrienne Lauby of Cotati
Shelley Berman of Cotati
Laurie Alderman of Cotati
Neil Hancock of Cotati
Anthony Fires
Chris of Santa Rosa
Jessica F.

Jennifer T. of Rohnert Park
Council provided direction to staff to meet with the league organizers of NorCal Oaks to discuss open public field time, and report back at the next Council meeting on June 25, 2024.

C. SOCIAL MEDIA POLICY REVIEW
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Cotati City Council Minutes June 11, 2024
Presentation by City Manager Damien O’Bid.

Councilmembers comment.

No public comment.

Council asked for the following to be included in an updated social media policy:
-Updating language to modern terms (ex. “Websites” to “platforms/accounts”) -Addition of a human dignity clause, to prevent posting photos/mugshots of people suspected of crimes, unless there is a public safety need.
-Re-write section E(4) to provide more clarity and actionable steps for City employees who post to social media, potentially moving existing language to the “Purpose” section. -Include a norm for City Council rules regarding comments on social media by Councilmembers, to clarify that the Mayor is designated to speak on behalf of the City and Councilmembers are to refrain from speaking on items that may come before the City Council.

14. CITY MANAGER'S REPORT
Report by City Manager Damien O’Bid.

15. CITY COUNCIL MEMBER REPORTS
Councilmembers report out on local and regional events and meetings.

16. PUBLIC COMMENT ON NON-ACTION AGENDA ITEMS
No public comment.

17. A.

CLOSED SESSION

CONFERENCE WITH CITY LABOR NEGOTIATORS (GOVERNMENT CODE SECTION 54957.6) CITY DESIGNATED REPRESENTATIVE: CITY MANAGER OR DESIGNEE.

EMPLOYEE ORGANIZATION: COTATI POLICE MANAGEMENT ASSOCIATION (CPMA)
Mayor Sparks announced the closed session topic.

No public comment.

18. 19.

REPORT OUT OF CLOSED SESSION
Mayor Sparks announced that there was nothing to report out of closed session.

INFORMATION RECEIVED AFTER THE AGENDA WAS POSTED
A. INFORMATION RECEIVED AFTER THE AGENDA WAS POSTED

20. ADJOURNMENT
Mayor Sparks adjourned the meeting at 10:17pm. 10 of 814 Cotati City Council Minutes June 11, 2024
/s/ Kevin Patterson, Deputy City Clerk
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Cotati City Council
Agenda Staff Report
Item type: PRESENTATIONS
To: City Council
Subject: Presentation from Rohnert Park Animal Services Date: June 25, 2024
Written by: Angela Courter, Director of Administrative Services Recommendation
It is recommended that the City Council receive a presentation from Mickey Zeldes, Supervisor of the Rohnert Park Animal Services, on the services provided by Rohnert Park Animal Services.

No action will be taken.
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Sharing animal sheltering with Cotati since 1999
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Animal Sheltering Services:
• Stray domestic animals (dogs, cats, rabbits, birds, small animals, reptiles)
• Owner surrenders – as space allows
• Protective Custody
• Bite Quarantine
• Emergency board
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Other Services offered to residents
• Fix-it Clinic
• Free microchips*
• Free pet ID tags*
• Pet Food Pantry
• Silver Paws* – Veterinary care assistance for low-income senior citizens • Wellness Clinics* – Free veterinary care offered in low-income areas *funded by the Animal Shelter League of RP
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DocuPet – shared licensing platform
• Easy on-line process, license your pet from home!
• Lots of reminders sent both digitally and by mail – increases compliance
• Full access to HomeSafe 24/7 lost pet service
• Hundreds of designer tags to choose from or choice to design your own tag (Revenue goes to support Animal Shelter)
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Opportunity to align our licensing fees
Current
Rohnert Park
• Licenses both dogs and cats
• Spayed/Neutered = $18
• Senior discount available 1st pet
• Intact Animals = $36
Cotati
• Only licenses dogs
• Spayed/Neutered = $26
• Senior discount available 1st pet
• Intact Animals = $36
Proposed
Rohnert Park & Cotati
• Licenses both dogs and cats (cats voluntary for Cotati) • Spayed/Neutered = $20
• Senior discount all pets
• Intact Animals* = $40
*California State Government Code. § 38792.(a) “The license fee for spayed bitches and neutered males shall not exceed 50 percent of the license fee otherwise imposed.” 17 of 814
We appreciate the
partnership!
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Cotati City Council
Agenda Staff Report
Item type: CONSENT CALENDAR (ACTION)
To: City Council
Subject: FISCAL YEAR 24/25 SB 1 LIST OF PROJECTS AS REQUIRED

BY THE ROAD REPAIR AND ACCOUNTABILITY ACT OF
2017
Date: June 25, 2024
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 a list of projects for Fiscal Year 2024-25 funded by SB 1: the Road Repair and Accountability Act of 2027.

Background
In August 2017, the California Transportation Commission (CTC) adopted the final FY 2017-18 Road Repair and Accountability Act of 2017 (SB1). The passage of SB1 established a Road Maintenance and Rehabilitation Account (RMRA) that requires local agencies to demonstrate that a project, funded by SB1, has been approved and described in adequate detail in a City resolution by July 1st every year. The RMRA funds have been provided to cities monthly starting January 2018.

Analysis/Discussion
To be eligible for funding, the City must provide a City resolution to the CTC by July 1, 2024, of a list of projects planned to be funded with RMRA funds. This is an ongoing annual requirement for the City to remain eligible for the funds. The approved project list must include four statutorily required elements for each project:

1. Location

2. Description

3. Estimated useful life
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4. Anticipated construction date.

The City’s 2022 Pavement Management Plan (PMP) lists all City streets with their condition and generally associated pavement rehabilitation method. The PMP guides the City’s street preservation efforts and informed the 2024 Street Improvements Project (Project). The pavement condition has been determined for this area and recommended treatment methods provided to the City. The total Project is to pave two centerline miles of streets (10,560 feet). The FY 24/25 estimated SB 1 funding of $196,319 can provide pavement treatments for approximately 3,100 centerline feet. A subset of the total streets to be paved was selected to match, or closely match the estimated RMRA available funds. These streets are all to be slurry sealed and consist of the following:

Street From To Length,
CL, Feet
Cost
estimate
Cervantes Ct Water Rd Cul-De-Sac 635 $19,623
Clothier Ln Old Redwood Hwy End 975 $43,826
Dorfman Dr 147’ N/O Honor Pl Jagla St 133 $6,352
E. Cotati Ave Old Redwood Hwy Matteri Ln 1,000 $112,217 Issel Ct Water Rd End 357 $13,786
Total 3,100 $195,804
These treatments have a useful life of approximately 6 years. Project construction is anticipated to begin in April 2025, and extend through June of 2025. This construction period overlaps with the eligible period of RMRA fund expenditures of July 1, 2024, to June 30, 2025, and is therefore eligible for the FY24/25 RMRA funding.

Financial Considerations
SB1 requires that RMRA funds not replace local funding sources, including General Fund, gas tax, and Measure M, and the City must maintain a “Maintenance of Effort” (in other words a certain level of funding to repair local roads) as if SB1 funds were not available. The Maintenance of Effort is defined by SB1 and is derived from the annual State Controller’s Report.

The California Transportation Commission (CTC) has prepared guidelines for agencies to follow in meeting the SB1 requirements. The guidelines establish May 1, of each year as the deadline for agencies to submit the project resolutions. Due to Covid 19, the deadline has been extended to July 1, for 2022, 2023, and 2024. The estimated SB1 amount for the City of Cotati for FY24/25 is $195,804, which is in the City’s adopted FY 24/25 budget and accounted for separately from other local funds being used for street preservation projects.

Environmental Issues
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This action is found to qualify for a Class 1 Categorical Exemption under CEQA Section 15301 in that the project consists of 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 the existing or former use. 21 of 814
RESOLUTION NO.

RESOLUTION OF THE CITY OF COTATI CITY COUNCIL ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2024-25 FUNDED BY SB1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
WHEREAS, Senate Bill 1 (SB1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB1 includes accountability and transparency provisions that will ensure the residents of Cotati are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City must adopt a list of all projects proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1 by resolution, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and WHEREAS, the City will receive an estimated $158,193 in RMRA funding in Fiscal Year 2023/24 from SB 1; and
WHEREAS, this is the 7th year in which the City is receiving SB 1 funding and will increase the scope of the City’s essential road maintenance and rehabilitation projects, safety improvements, and increasing access and mobility options for the traveling public beyond what otherwise would have been included in the project without SB 1; and WHEREAS, the City has developed the SB 1 project list following its Pavement Management Plan and has provided opportunity for public input at City Council meetings; and WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being spent on the most high priority and cost effective projects that also meet the communities priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate 3,680, centerline feet of residential streets this year and similar sized projects into the future; and WHEREAS, the 2023 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets and roads are in the “At Lower Risk (61-70)” condition category and this revenue will help us maintain the overall quality of our road system; and WHEREAS, the Fiscal Year 2024/25 streets project, funded by SB 1, is to rehabilitate portions of Cervantes Ct, Clothier Lane, Dorfman Dr, E. Cotati Ave, and Issel Ct, and the pavement preservation is to consist of dig outs, crack sealing and slurry seal; and 22 of 814
WHEREAS, the estimated useful life of the planned improvements is expected to be 6 years and the 2024 Street Improvements Project is anticipated to begin in March 2025 and extend through June 2025; and
WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive impact into the future; and
WHEREAS, the action of adopting a resolution to meet the State legislative requirements to remain eligible to use the SB 1 funding for routine street maintenance projects 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 hereby finds the following:

1. The foregoing recitals are true and correct.

2. The following is the City’s Fiscal Year 2024/25 “list of projects” planned to be funded with Road Maintenance and Rehabilitation Account revenues:

Perform dig outs, crack sealing and slurry seal on approximately 3,100 centerline feet in total and consist of 635 feet of Cervantes Ct from Water Road to Cul-De-Sac, 975 feet of Clothier Lane from Old Redwood Hwy to the end, 133 feet of Dorfman Dr from 147 feet north of Honor Pl to Jagla Str, 1,000 feet of E. Cotati Ave from Old Redwood Hwy to Matteri Lane, and 357 feet of Issel Ct. from Water Road to End. Pavement treatments have an anticipated life span of 6 years, and construction is to occur in Fiscal Year 24/25.

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 25th, 2024, by the following vote, to wit:

RESULT: ADOPTED BY CONSENT VOTE [UNANIMOUS]
MOVER:

SECONDER:

AYES:

Approved:________________________________
Mayor
Attest:____________________________
Kevin Patterson, Deputy City Clerk
Approved as to form: 23 of 814
____________________________
City Attorney
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Cotati City Council
Agenda Staff Report
Item type: CONSENT CALENDAR (ACTION)
To: City Council
Subject: ADOPTION OF RESOLUTION ESTABLISHING ANNUAL

APPROPRIATIONS (GANN) LIMIT FOR FISCAL YEAR
2024/25
Date: June 25, 2024
Written by: Angela Courter, Director of Administrative Services Recommendation
It is recommended that the City Council Adopt a Resolution Approving the annual appropriations limit for the City of Cotati Fiscal Year 2024/25.

Background
On November 6, 1979, California voters approved the Gann Spending Limitation Initiative (Proposition 4) establishing Article XIIIB of the State Constitution. Subsequently, on June 5, 1990, California voters approved the Traffic Congestion Relief and Spending Limitation Act (Proposition 111), which made various amendments to Article XIIIB of the State Constitution.

Article XIIIB sets limits on the amount of tax revenues that the State and most local governments can appropriate within a given fiscal year.

The Appropriation Limit is based on actual appropriations during the 1978/79 fiscal year, as increased each year using specified population and inflationary growth factors. The original legislation implementing the provisions of Article XIIIB became effective January 1, 1981. In accordance with that legislation, the governing body of each government jurisdiction must, by resolution, establish its annual Appropriation Limit for the coming year (prior to July 1) at a regularly scheduled meeting or noticed special meeting. Based on Article XIIIB, the City of Cotati can use the larger of two measurements of population growth, (county or city population growth) in the Appropriations Limit calculation. For Fiscal Year 2024/25, the City is using the Sonoma County population factor, as this is higher than the rate for the City of Cotati.

Analysis/Discussion
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Section 7910 of the State Government Code requires a governing body to annually adopt by resolution, an Appropriations (Gann) Limit for the upcoming fiscal year when the budget is adopted. The Appropriations Limit is adjusted annually based on population and per capita income changes. This updated information was received from the California Department of Finance in May and is included within the final Appropriations Limit calculation.

Staff have calculated the Gann limit to be $19,706,102. The City’s tax proceeds subject to the FY 2024/25 Gann Limit are estimated at $8,903,496. Therefore, the City is deemed to be under the Gann limitation, by $10,802,606, and in compliance with state law. Adoption of the attached Resolution will formalize the Gann limit calculation for FY 2024/25.

Financial Considerations
The adoption of the Fiscal Year 2024/25 Appropriations Limit has no impact on City resources.

Environmental Issues
The action of adopting the appropriations limit does not constitute a project as defined by California Environmental Quality Act Guidelines Section 15378; therefore, no further environmental review is required.
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RESOLUTION NO. (XX)

RESOLUTION ESTABLISHING ANNUAL APPROPRIATIONS (GANN) LIMIT FOR FISCAL YEAR 2024/25
WHEREAS, in November of 1979, the California electorate did adopt Proposition 4, commonly called the Gann Amendment, which added Article XIII-B to the California Constitution; and
WHEREAS, the provisions of that Article establish maximum appropriation limitations, commonly called “Gann Limits,” for public agencies; and WHEREAS, the appropriations limit to be applied to the “proceeds of taxes” as defined by Section 7910 of the Government Code for Fiscal Year 2024/25 has been calculated to be $19,706,102; and
WHEREAS, the City Council elects to use as the annual adjustment factors in calculating the appropriations limit, the percentage change in California per capita income and the annual population for the greater of the annual percentage change in population for the County of Sonoma or the City of Cotati; and
WHEREAS, review and adoption of this Resolution approving the appropriations limit for Fiscal Year 2024/25 was conducted at a regularly scheduled meeting in accordance with Section 7910 of the Government Code; and
WHEREAS, the documentation used in the determination of the appropriations limit was made available to the public in the City Managers Office.

NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Cotati:

1. Establishes the appropriations limit for the City of Cotati for Fiscal year 2024/25 at $19,706,102.

2. This Resolution shall take effect July 1, 2024.

3. The City Manager’s Office personnel shall certify 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 June 25, 2024, by the following vote, to wit:

Approved:___________________________
Mayor
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Attest:______________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:______________________________
City Attorney
28 of 814

APPROPRIATIONS LIMIT
What is it?
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)
2024/25 3.62% -0.27% -1.06%
Per Capita Cost of Living Converted to Ratio: 3.62+100 = 1.0362 100
Sonoma County Population Converted to Ratio -0.27+100 = 0.9973 100
Calculation Factor for FY 2024/2025 1.0362 x 0.9973 = 1.0334 Fiscal Year 2023/2024 Appropriations Limit $ 19,069,191 Fiscal Year 2024/2025 Factor 1.0334
Fiscal Year 2024/2025 Appropriations Limit $ 19,706,102 Tax Appropriations Total Budget for 2024/25
$ 2,123,996
6,027,000
Other Tax 752,500
Total Appropriations Subject to Limit $ 8,903,496
Appropriations Subject to Limit $ 8,903,496
Fiscal Year 2024/2025 Appropriations Limit 19,706,102
Over/(Under) Appropriations Limit $ (10,802,606)
Percentage Over/(Under) Limit -55%
Tax Appropriations Subject to the Tax Appropriations Limit Property Tax
Sales Tax
(1) Department of Finance-Budgeting Resource Price and Population Factors Used For Appropriations Limit at:
https://dof.ca.gov/wp-content/uploads/sites/352/2024/04/PriceandPopulation2024.pdf 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.

It should be noted that Appropriations Limit applies only to proceeds of taxes, as defined by the law and statewide reporting guidelines.

State of California Fiscal Year 2024/25 Population Change Per Capita Personal Income
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APPROPRIATIONS LIMIT
Establishing Appropriations Limits
Historical and Estimated Future Limits
Fiscal Year
Personal Income
Change Population Change Growth Factor Annual Adjustment Historical Appropriations Limits
2023/24 1.0444 0.9947 1.0389 $ 714,016
2022/23 1.0755 0.9847 1.0590 $ 1,022,621
2021/22 1.0573 0.9899 1.0466 $ 771,734
2020/21 1.0373 0.9875 1.0243 $ 392,881
2019/20 1.0385 0.9960 1.0343 $ 536,171
2018/19 1.0367 0.9978 1.0344 $ 519,848
2017/18 1.0369 1.0050 1.0421 $ 610,292
2016/17 1.0537 1.0053 1.0593 $ 811,607
2015/16 1.0382 1.0084 1.0469 $ 613,559
2014/15 0.9977 1.0039 1.0016 $ 20,775
Future Year Estimates Appropriations Limit (2)
2025/26 1.0482 0.9906 1.0383 $ 754,842
2026/27 1.0498 0.9895 1.0388 $ 793,152 $ 21,254,096
(2) Estimates calculated based on changes to both personal income and population change following a trending 5 year average. $ 20,460,944
$ 15,111,919
$ 14,501,625
$ 13,690,018
$ 13,076,459
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 25, 2024 establishing the City of Cotati's appropriations limit.

The City's appropriations subject to the Gann Limit totals $8,903,496, which is well below the authorized spending limit of $19,706,102 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.
$ 15,631,769
$ 18,355,174
Appropriations Limit
$ 17,332,554
$ 16,560,820
$ 16,167,939
$ 19,069,191
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Cotati City Council
Agenda Staff Report
Item type: CONSENT CALENDAR (ACTION)
To: City Council
Subject: ADOPTION OF THE CITY-WIDE SALARY SCHEDULE FOR
FISCAL YEAR 2024/25
Date: June 25, 2024
Written by: Angela Courter, Director of Administrative Services Recommendation
It is recommended that the City Council adopt the fiscal year 2024/25 salary schedule, as updated per the current City labor agreements.

Background
The City Council and staff believe that our citizens have a right to full transparency with respect to public information, including the wages and benefits received by City employees and elected officials. To that end, salary schedules as well as labor agreements are available on the City’s website.

For transparency as well as effective and efficient financial reporting, City staff have prepared the annual salary schedule for fiscal year 2024/25, using the adopted labor agreements in effect as of July 1, 2024.

Analysis/Discussion
The City of Cotati has three separate bargaining units; the CEA, the Cotati Police Officers Association (CPOA), and the Cotati Police Management Association (CPMA), as well as the Non-Represented group and a single employment agreement with the City Manager. The salary schedule implements the existing approved memorandum of understanding with each group or contract. At this time, the only group not reflected in this salary schedule is any associated changes with CPMA, which is still in bargaining for FY 24-25.

Financial Considerations
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There is no additional fiscal impact associated with the approval and publishing of the salary schedule, as the changes have already been authorized by MOU and included within the proposed budgeted for adoption.

Environmental Issues
The action of approving the salary schedule does not constitute a project as defined by California Environmental Quality Act Guidelines Section 15378; therefore, no further environmental review is required.
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RESOLUTION NO. (XX)

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COTATI APPROVING THE FISCAL YEAR 2024/25 SALARY SCHEDULE
WHEREAS, on June 11, 2024 (Resolution 2024-29) the City Council approved a fiveyear MOU with the Cotati Police Officers Association (CPOA) effective the first full pay period following July 1, 2024; and
WHEREAS, on July 23, 2019 (Resolution 2019-35) the City Council approved a five-year MOU with the Cotati Police Management Association (CPMA) effective the first full pay period following July 1, 2019; and
WHEREAS, on August 24, 2021 (Resolution 2021-45) the City Council of the City of Cotati entered into an Amended and Restated Employment Agreement concerning compensation, benefits, terms, and conditions of Damien O’Bid’s employment as City Manager for the period of five (5) years, which was subsequently amended and restated on August 23, 2022 (Resolution 2022-47), and
WHEREAS, on June 22, 2021 (Resolution 2021-33) the City Council approved a fiveyear MOU with the Cotati Employees Association (CEA) effective the first full pay period following July 1, 2021; and
WHEREAS, state law (ACA 3) requires a multi-year increase in the State minimum wage; and
WHEREAS, on August 9, 2022 (Resolution 2022-46) the City Council approved a fiveyear MOU with the Non-Represented contract (Non-Rep) effective the first full pay period following August 9, 2022; and
WHEREAS, on May 9, 2023, Council approved the amendment of the Non-Rep agreement to include the Police Officer Trainee position; and WHEREAS, the changes previously authorized by the City Council though the MOUs are incorporated into the attached salary schedule, effective the first full pay period after July 1, 2024; and
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NOW THEREFORE BE IT RESOLVED that the City Council for the City of Cotati hereby approves the attached salary schedule effective on the first day of the first full pay cycle in fiscal year 2024/25.

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 June 25, 2024, by the following vote, to wit:

A B C D E
Accountant CEA 37.83 39.72 41.71 43.80 45.99
Account Clerk CEA 28.12 29.53 31.01 32.56 34.19
Accounting Technician CEA 32.70 34.33 36.05 37.85 39.74 Administrative Assistant CEA 32.25 33.86 35.55 37.33 39.20 Assistant Planner CEA 38.97 40.92 42.97 45.12 47.38
Associate Engineer CEA 43.29 45.45 47.72 50.11 52.62
Associate Planner CEA 43.29 45.45 47.72 50.11 52.62
Building Official Non-Rep 61.15 64.21 67.42 70.79 74.33 Chief of Police Non-Rep 80.18 84.19 88.40 92.82 97.46
City Clerk Non-Rep 56.28 59.09 62.04 65.14 68.40
City Manager Contract - - - - 102.36
Civil Engineer CEA 49.58 52.06 54.66 57.39 60.26
Community Services Officer CPOA 31.69 33.27 34.93 36.68 38.51 Deputy City Clerk Non-Rep 38.93 40.88 42.92 45.07 47.32 Director of Administrative Services Non-Rep 80.18 84.19 88.40 92.82 97.46 Director of Community Development Non-Rep 80.18 84.19 88.40 92.82 97.46 Director of Public Works/City Engineer Non-Rep 80.18 84.19 88.40 92.82 97.46 Engineering Technician CEA 34.38 36.10 37.90 39.79 41.78 Intern Part Time 18.00 - 19.00 - 20.00
Laborer CEA 22.55 23.68 24.86 26.10 27.41
Maintenance Worker I CEA 28.68 30.11 31.62 33.20 34.86
Maintenance Worker II CEA 32.79 34.43 36.15 37.96 39.86 Maintenance Worker III CEA 36.15 37.96 39.86 41.85 43.94 Management Analyst CEA 40.29 42.30 44.42 46.64 48.97
Management Analyst - Confidential Non-Rep 40.29 42.30 44.42 46.64 48.97 Office Assistant CEA 23.09 24.24 25.45 26.72 28.06
Permit Technician CEA 33.45 35.12 36.88 38.72 40.66
Planning Technician CEA 33.45 35.12 36.88 38.72 40.66
Police Corporal CPOA 43.67 45.85 48.14 50.55 53.08
Police Dispatcher/Clerk CPOA 32.33 33.95 35.65 37.43 39.30 Police Lieutenant Non-Rep 57.62 60.50 63.52 66.70 70.04 Police Officer CPOA 41.57 43.65 45.83 48.12 50.53
Police Officer Trainee Non-Rep 31.33
Police Records Support Analyst CPOA 32.33 33.95 35.65 37.43 39.30 Police Sergeant CPMA 45.60 47.88 50.27 52.78 55.42
Police Service Aide Part Time/Non Rep 28.10 29.50 30.98 32.53 34.16 Public Works Superintendent Non-Rep 54.69 57.42 60.29 63.30 66.46 Recreation Coordinator CEA 28.12 29.53 31.01 32.56 34.19 Recreation Manager Non-Rep 47.22 49.58 52.06 54.66 57.39 Reserve Police Officer Part Time/CPOA 41.57 43.65 45.83 48.12 50.53 Senior Accountant CEA 41.47 43.54 45.72 48.01 50.41
Senior Management Analyst CEA 44.41 46.63 48.96 51.41 53.98 Senior Management Analyst - Confidential Non-Rep 44.41 46.63 48.96 51.41 53.98 Senior Planner CEA 49.58 52.06 54.66 57.39 60.26
Recreation Seasonal Staff Part Time Step A Step B Step C Camp Director Part Time 20.00 21.00 22.00
Assistant Camp Director Part TIme 19.00 20.00 21.00
Recreation Leader Part Time 18.00 19.00 20.00
Interns & Rec Staff rates assume passing of Initiative 21-0043 raising minimum wage to $18 per hour Effective 07/01/2024
Hourly (2080/yr)
Position Title Bargaining Unit
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Cotati City Council
Agenda Staff Report
Item type: CONSENT CALENDAR (ACTION)
To: City Council
Subject: FINANCIAL POLICIES UPDATE
Date: June 25, 2024
Written by: Angela Courter, Director of Administrative Services Recommendation
It is recommended that the City Council adopt a Resolution approving the consolidation and update of the comprehensive City of Cotati Financial Principles and Policies.

Background
Financial policies are essential and central to a strategic, long-term approach to the fiscal 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 Financial Principles and Policies provide critical guidelines for the following critical financial activities:
• Financial Reporting and Budgeting Policies
• Fiscal Resiliency Policies
• Revenues Control and Management Policies
• Expenditure and Purchasing Policies
• Credit Card Management Policies
• Environmentally Preferable Purchasing Policies
• Capital Assets Policies
• Grant Management Policy
• Investment Management Policies
• Debt Management Policies
• Unfunded Pension Liability Policies
The City currently has a comprehensive suite of policies that were adopted individually over 36 of 814
time. This proposed action will update and consolidate the financial policies into a single policy document.

Analysis/Discussion
The 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, as well as support long-term planning and enhance the City’s effectiveness in implementing long-term strategies to deliver efficient services to the public.

To clarify the policy and ensure consistency with updated accounting standards or state law, the following sections were updated:
• Financial Principles and Policies were broken down into general sections for o Financial Reporting and Budgeting Policies
o Revenues Controls and Managment Policies
o Debt Management Policies
• Addition of New Policies
o Fiscal Resilience Policies (as discussed at the April 9, 2024 City Council meeting) o Grant Management Policy (Previously only retained as standard procedures) • Updated Policies
o Financial Reporting and Budget Policies
▪ Updated to provide guidance on expanded external and internal financial reporting
o Credit Card Policies
▪ Updated outdated language related to processing charge cards and simplified based on best practices in place for processing charges and issuing credit cards
City Staff will continue to review City financial policies for updates for best practices.

Financial Considerations
There is no direct fiscal impact on the City resulting from the adoption of these policies. There maybe be additional staff time required in the development of related updating of procedures that support the policy.

Environmental Issues
The action of adopting Financial Principles and Policies does not constitute a project as defined by California Environmental Quality Act Guidelines Section 15378; therefore, no further environmental review is required.
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RESOLUTION NO. (XX)

ADOPTING UPDATED AND CONSOLIDATED CITY OF COTATI FINANCIAL

POLICIES AND PROCEDURES
WHEREAS, the City of Cotati wishes to establish a comprehensive set of financial policies that will serve as a guideline for operational and strategic decision making related to financial matters; and
WHEREAS, the City currently has a comprehensive set of financial policies, adopted separately over time; and
WHEREAS, the City wishes to consolidate the financial policies into a single policy document; and
WHEREAS, financial policies are intended to establish guidelines for the City's overall planning and management; and
WHEREAS, such policies will allow the City to maintain and enhance a sound fiscal condition.

NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Cotati does hereby approve and adopt the attached Financial Policies and Procedures; and IT IS FURTHER RESOLVED that the following resolutions for the prior individual policies are rescinded:

Resolution 2017-36 – Financial Principles and Policies
Resolution 2009-50 – General Fund Reserve
Resolution 2016-76 – Capitalization Policy
Resolution 2019-47 – Purchasing Policy
Resolution 2021-76 – Unfunded Accrued Liability Management Policy Resolution 2023-29 – Investment Policy
Resolution 2024-30 - Environmental Preferred Purchasing Policy; and 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 June 25, 2024, by the following vote, to wit:

Approved:___________________________
Mayor
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Attest:______________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:______________________________
City Attorney
39 of 814

Page 1 of 96 ends

CITY OF COTATI
Financial Principles and Policies
A Summary of the City’s Financial Mission
Statements and Guiding Principles
Overview........................................................................................................................................................................ 2 Guiding Financial Principles....................................................................................................................................... 2 Policies........................................................................................................................................................................... 3 Review and Approval:.................................................................................................................................................. 3 Financial Reporting & Budgeting Policies ................................................................................................................. 5 Fiscal Resilience Policies ............................................................................................................................................ 12 Revenues Controls and Management Policies.......................................................................................................... 18 Expenditure Planning and Purchasing Policies....................................................................................................... 22 Credit Card Management Policies............................................................................................................................ 31 Environmentally Preferable Purchasing Policies..................................................................................................... 34 Capital Assets Policies................................................................................................................................................ 53 Grant Management Policy......................................................................................................................................... 64 Investment Management Policies.............................................................................................................................. 70 Debt Management Policy ........................................................................................................................................... 83 Unfunded Pension Liability Policies ......................................................................................................................... 88 40 of 814

Page 2 of 96 ends

Overview
This document establishes policies of overall fiscal management, budget development, and fiscal administration for the City of Cotati. Included herein are statements and principles designed to guide the City in maintaining its financial stability and delivering high-quality services to the public.

Formally adopted financial policies assist elected officials and city staff in the development of fiscal management practices, save time and provide structure for financial decisions, promote public confidence, enhance transparency, and provide continuity over time. 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. Fiscal policies support long-term planning and enhance the City’s effectiveness in implementing long-term strategies to deliver efficient services to the public.

This document provides a structured, central repository for a variety of fiscal policies and is organized into the following categories.

Guiding Financial Principles
The following are the guiding principles to be adhered to and used as a conceptual framework for the City of Cotati:
a) Manage financial resources in a responsible and prudent manner allowing for uncertainties and maintaining a posture of financial flexibility while maintaining responsiveness to citizens input and guidance.
i) Integrate long-term operating and capital resources planning into the budget process.
ii) Develop programs in a manner that supports the City’s long-term ability to cover costs and provide the level and quality of service required by its citizens. iii) Provide financial information in a relevant, thorough, and timely manner, and in a format that effectively communicates financial status to the Council, citizens, and City employees.
iv) Establish and maintain prudent fund balance levels. v) Manage debt responsibly.
b) Maintain financial reporting in compliance with current governmental accounting standards.
i) Promote and implement a relevant and robust system of internal financial controls to manage significant risks and monitor the reliability and integrity of financial and operating reporting.
ii) Uphold investment policies in accordance with the City Policy and State law. 41 of 814

Page 3 of 96 ends

Policies
This document provides a structured, central repository for a variety of fiscal policies and organized into the following categories:
a. Financial Reporting and Budgeting Policies (Section A) i. Fiscal Resiliency Policies (Section A.1)
b. Revenues Control and Management Policies (Section B) c. Expenditure and Purchasing Policies (Section C)
i. Credit Card Management Policies (Section C.1)
ii. Environmentally Preferable Purchasing Policies (Section C.2) iii. Capital Assets Policies (Section C.3)
iv. Grant Management Policy (Section C.4)
d. Investment Management Policies (Section D)
e. Debt Management Policies (Section E)
i. Unfunded Pension Liability Policies (Section E.1)
Review and Approval:

These policies shall be reviewed on a regular basis by the City Manager and Administrative Services Director and updated as necessary through approval by the City Council to ensure best practices are in effect for proper fiscal management.
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Section A
Financial Reporting & Budgeting Policies

1. Description of Funds and Accounting Methods ............................................................................................... 6

2. Financial Reporting Policies............................................................................................................................... 8

3. Budgetary Policies............................................................................................................................................... 9

4. Expenditure Appropriations Budgetary Carryover ...................................................................................... 11 44 of 814
City of Cotati
A.) Financial Reporting and Budgeting Policies
Adopted June 25, 2024

Page 6 of 96 ends

1. Description of Funds and Accounting Methods
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 diverse types of revenues and the allowable uses of those revenues. The Annual Financial Statements presents the City’s finances on a Generally Accepted Accounting Principles (GAAP) basis and the City's budget is prepared in conformance with these standards.

Governmental Funds Type are reported using the current financial resources measurement focus and the modified accrual basis of accounting. This type of fund includes such funds as the General Fund where Revenues are recognized as soon as they are both measurable and available. Revenues are 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 are generally 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.

Governmental fund types include the general fund, special revenue funds, capital projects funds, and debt service funds. GASB has defined these funds and the GFOA has further summarized these funds as follows:

General Fund
This is the chief operating fund of a local government. GASB Codification Section 1300.104 states that the general fund is used "to account for all financial resources except those required to be accounted for in another fund." In other words, all a government's financial activities should be accounted for in the general fund unless there is a compelling reason to report them in some other fund type. Government may never report more than one general fund per Codification, Section 1300.106. In practice, typically the general fund is of chief interest to financial statement users.

Special Revenue Funds
These funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. The restricted or committed proceeds of specific revenue sources should be expected to continue to comprise a substantial portion of the inflows reported in the fund. Other resources (investment earnings and transfers from other funds, for example) also may be reported in the fund if those resources are restricted, committed, or assigned to the specified purpose of the fund. Governments should discontinue reporting a special revenue fund, and instead report the fund's remaining resources in the general fund, if the government no longer expects that a substantial portion of the inflows will derive from restricted or committed revenue sources.

Capital Projects Funds
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City of Cotati
A.) Financial Reporting and Budgeting Policies
Adopted June 25, 2024

Page 7 of 96 ends

As local governments often undertake significant capital acquisitions and construction projects, they often account for the activities separately from their other general operations. Capital projects funds are used to account for and report financial resources that are restricted, committed or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. Capital projects funds exclude those types of capital-related outflows financed by proprietary funds or for assets that will be held in trust for individuals, private organizations or other governments.

Debt Service Funds
Governments set aside monies to meet current and future debt service requirements on general government debt. As such, these funds are used to account for and report financial resources that are restricted, committed or assigned to expenditure for principal and interest, even if it is being accumulated for future years' payments. Debt service funds should be used to report resources if legally mandated.

Proprietary Fund Types are reported on a full-accrual basis of accounting. These include such funds 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.

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).

Internal Service Funds
Internal Service Funds account for activities that provide goods and services to other departments or funds on a cost-reimbursement basis.

Fiduciary Fund Types, 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. This type of fund includes the City’s Successor Agency Fund and the Custodial fund for South Sonoma 46 of 814
City of Cotati
A.) Financial Reporting and Budgeting Policies
Adopted June 25, 2024

Page 8 of 96 ends

Business Park Assessment District.

2. Financial Reporting Policies
The City’s accounting and financial reports are to be maintained in conformance with Generally Accepted Accounting Principles (GAAP) as established by the Governmental Accounting Standards Board (GASB). To ensure compliance an annual financial audit will be performed by an independent public accounting firm familiar with municipal government activities. The independent auditor will issue an audit opinion to be included in the City’s Annual Financial Statements Report. Unless extraneous circumstances occur, the City will rotate audit service providers every five years. If an auditor is being retained for longer than five years, the reason must be included in a staff report to the City Council at the time of the contract execution or renewal. Additionally, the Director of Administrative Services will present the Audited Financial Statements and the Auditors’ Letter to the City Council and the Independent Auditors report on Internal Control Over Financial Reporting and Compliance.

A. External Financial Reporting:

The City is subject to Federal, State, County, and Debt Lendor requirements for recurring annual reporting.

The City is required to generate an Audited Financial Statement but is encouraged to generate an Annual Comprehensive Financial Report (ACFR) which represents a set of financial statements . One of the most significant purposes of a comprehensive financial report is that it provides valuable insight into how City officials manage public finances. This annual report consists of five parts – management’s discussion and analysis (this section), the basic financial statements, required supplementary information, a supplemental informational section that presents combining statements for non-major governmental funds as well as the schedule of Measure S revenues and uses, and the statistical section. City Staff shall strive to submit the Annual ACFR to State and/or national government finance professional organizations (Governmental Finance Officers’ Association’s Certification of Achievement for Excellence in Financial Reporting, California Society of Municipal Finance Officers ACFR Award) for independent review and evaluation.

Staff shall also comply with all other mandated state financial reporting including but not limited to the California State Controller’s Office (SCO) Report for the City Financial Transactions, SCO Report for Compensation, SCO Street Expenditure Report, Federal and State OMB Circular A-133 (Single Audit) Grant Compliance Reporting, County Maintenance of Effort Reporting,
B. Internal Financial Reporting
Provided on a periodic and timely basis, as needed: These reports are used to help the City Council, the public, and management to monitor budgetary compliance and evaluate financial status as of a point in time. Internal financial reports often provide more detail on individual departments than does general purpose external financial reporting and does not require an 47 of 814
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independent auditor review and audit. Reports to be generated include but are not limited to the following:
• Internal financial reporting for all funds is to be issued on a periodic and timely basis – no less than semi-annually and no more than 60 days after the close of the period. The report will provide detailed information for the General, Water, and Wastewater Funds and summary information for all funds will be included as attachments to the report.
• An end of the fiscal year unaudited report will be issued no more than 60 days after the close of Q4 with end of year estimates for revenues and expenditures/expenses for all funds.
• Long Range Financial Forecasts (LRFF) for the City’s General Fund will be presented to the City Council annually. The LRFF provides a current and longrange financial assessment of revenues, expenditures, fund balance, and emergency reserves. The primary objective is to provide the City Council and the community with a financial forecast and identify any significant issues that may need to be addressed in the annual budget development process.

3. Budgetary Policies
The City is legally required to adopt the municipal 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 periods. Through the budget development process, programs are established, service levels are expressed, performance measures are articulated, and resources are identified. This planning tool uses forecasted expenditures and revenues the City will incur in the upcoming fiscal period and is neither actual revenue nor actual expenditures. The budget must be continuously monitored and reported back out through periodic internal reporting.

A. Budget Proposal and Adoption
The budget is to be prepared in accordance with GAAP and isto be prepared using the 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 Management will develop and present a draft operating budget for consideration by the full City Council and public. The prepared budget should present a budget where projected expenditures do not exceed total estimated revenues and one time revenue sources are not to be relied upon to fund on-going operations. In specific situations, such as with significant onetime capital expenditures, the City Council may approve a planned use of accumulated fund balances in prior years for inclusion in the budget.
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The City Council will adopt an operating budget no later than June 30 of each fiscal cycle. The budget will include appropriations that provide expenditure authority to public officials responsible for operating their respective departments to fulfill obligations to provide public services as delegated by the City Council.

The City budget must comply with the annual determination of the City's appropriations limit calculated in accordance with Article XIIB of the Constitution of the State of California and an annual resolution should be adopted to this effect.

B. Controlling and Adjusting the Annual Budget
The City structures and controls its budget by use of funds. a) City Council: The City’s budget is controlled at the fund level by the City Council. The City Council, as representatives of the public, is the sole authority for establishing City priorities and creating or increasing expenditure appropriations of a general fund department (cost center) or a fund, as approved in the final adopted budget. The City Council approves:
i. All increases in appropriations of a department or fund, as approved in the final adopted budget.
ii. All transfers of appropriations between funds.
iii. All decreases in appropriations, with the exception that the City Manager may direct Department Heads to suspend expenditure pending Council consideration of decreases in appropriations, needed to respond to fiscal emergency. b) City Manager: Holds all department heads responsible and accountable for their respective budgets as originally adopted by the City Council or as thereafter revised in accordance with this policy. The City Manager has authority to approve:
i. Transfers of appropriations between expenditure line items within departments or project budgets, up to $25,000.
ii. The City Manager may make budget transfers between departments or projects if those changes do not increase overall appropriations within any one department or fund. Transfers between funds, overall increases in department or fund appropriations, and overall increases in project budgets can only be made through City Council action. Transfers between departments should be reported to the City Council as part of the budget amendment process, either at mid-year or during budget adoption for the new fiscal year.
c) City Department Heads: The level of expenditure control for departments is at the fund and department level, as approved in the final adopted budget. Departments that operate programs among different departments or funds are limited to the appropriation levels within any department or fund, as approved in the final adopted budget. d) Administrative Services Department: Shall coordinate the overall has the overall administrative responsibility for planning, coordinating, analyzing, preparing, and issuing the budget.
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4. Expenditure Appropriations Budgetary Carryover
All operating expenditure appropriations not spent during the fiscal year lapse at year-end, except for:
a) Encumbrances or commitments, as in the form of finalized purchase orders or agreements, made during the fiscal year that have not been completed at year-end. b) Appropriations for capital improvement projects and ongoing grants with a life cycle beyond one year.

5. Fund Balance Reserve
The Reserve Policy is intended to maintain a healthy fund contingency to ensure continued operations during major emergencies or financial disruptions. The fund reserve goals set are:

1. General Fund: 25% of annual operating expenditures or no less than two months of regular general fund operations.

2. Water/Sewer Funds: 33% of annual operating expenditures. 50 of 814
Section A.1
Fiscal Resilience Policies

1. Policy .................................................................................................................................................................. 13

2. Objectives........................................................................................................................................................... 13

3. Scope................................................................................................................................................................... 13

4. Regular Evaluation ........................................................................................................................................... 13

5. Steps to Address Shortfalls............................................................................................................................... 15

6. Review and Approval........................................................................................................................................ 17 51 of 814
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1. Policy
In accordance with the Municipal Code of the City of Cotati and under authority granted by the City Council, the City Manager, working closely with the Administrative Services Director, is responsible for keeping the city council fully apprised of the financial condition and needs of the city (Cotati Municipal Code [CMC] 2.12.140).

The goal of this policy is to provide guidance in effectively identifying and preemptively managing potential or existing financial shortfalls, while prioritizing core essential services and maintaining financial stability. The core functions of the City are:
a. Protecting life, health, and safety.
b. Administration of zoning and building.
c. Maintaining City-owned infrastructure, including assets in the public right of way, parks, City buildings, and water/sewer infrastructure.

2. Objectives:

This policy has been established to standardize a process for regular evaluations of the City’s financial position to identify potential threats as early as possible, as well as providing a suite of potential actions to address shortfalls.

The Reserve Policy are intended to maintain a healthy fund contingency to ensure continued operations during major emergencies or financial disruptions. The fund reserve goals set are:

3. General Fund: 25% of annual operating expenditures or no less than two months of regular general fund operations.

4. Water/Sewer Funds: 33% of annual operating expenditures.

The City’s primary objective is to maintain a prudent level of financial resources to protect against reducing core service levels or raising taxes and fees due to temporary revenue shortfalls or unexpected one-time expenditures. The City also seeks to maintain the highest possible credit ratings, which are dependent, in part, on the City’s maintenance of a healthy fund balance.

3. Scope
While the objective of the policy is to address fiscal emergencies that impact the City’s overall financial position, the focus of this policy is on major funds for the City, including the General Fund, Water Fund, and Sewer Fund. These funds are primarily responsible for funding the core functions that serve our community directly. Most other funds, while possibly financially significant, do not pose a significant risk to operations.

4. Regular Evaluation
The City shall generate regular financial reports including, but not limited to, quarterly financial reports, mid-year reports, and long-range financial forecasts. Within the reports, in addition to the existing reserve policies, staff shall incorporate a summary of the financial standing, utilizing ratios analysis, threshold maintenance, and observations of economic conditions for Financial Considerations including, but not limited to the following:
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1. General Fund Fiscal Health Analysis:
a. Maintain a minimum cash coverage ratio equivalent to 25% of annual operating expenditures or no less than two months of regular general fund operations. This metric it used as a surrogate for evaluations of the General Funds Minimum Reserve ratio throughout the year.
b. Ensure the liquidity ratio (quick ratio = liquid assets/current liabilities) stays above 1.0, with a goal of 2.0 or higher.
c. Total Revenues compared to the budget or prior year have not had a negative change by more than 10%.
d. An increase in overall General Fund expenses of more than 10%, caused by any one of the above factors or other unexpected factors.
e. Significant Revenue Sources including, but not limited to, Property Tax and Sales Tax declined individually by more than 10% from budget or the prior year. f. Identification of any significant community event such as the closure of a top10 sales tax producing commercial activity. g. Ratio of operating revenue to operating expenses drops below 1.1, to ensure continued ability to save 10% of annual revenue for reserves or infrastructure projects.

2. Water and Sewer Funds Fiscal Health Analysis:
a. Each operating fund must support a minimum cash coverage ratio equivalent to 33% of annual budgeted operating expenses, including estimated capital improvements.
b. Ensure the liquidity ratio (quick ratio) stays above 1.0, with a goal of 2.0 or higher.
c. A reduction in revenues compared to the budget or prior year exceeding 15%. d. An increase in overall expenses of more than 15%, caused by any one of the above factors or other unanticipated factors.
e. Confirmation from Sonoma County Water Agency or City of Santa Rosa Wastewater Treatment of a tentative rate increase more than 2% above the expected rates included within the City adopted rate study. f. Ratio of operating revenue to operating expenses drops below 1.1, to ensure continued ability to save 10% of annual revenue for reserves or infrastructure projects.

3. 5 Year Moving Community Fiscal Health Analysis:
a. Community Growth Trends: –
i. Evaluating the population growth to project possible increased service demand and operational costs.
ii. Evaluating housing and commercial building growth, to project possible increased service demand and operational costs.
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b. Property Valuation Trends. This indicates the overall value of properties within the city and can give insight into the changes in potential tax revenue base. c. Business Formation and Closure Trends: Evaluating the rates of new business formations and closures provides insights into the entrepreneurial activity and overall business climate within the community. A high rate of new business formations suggests a dynamic economy, while a high rate of closures may indicate challenges for businesses.
d. Consider US, Statewide, or Regional Economic Factors:
i. US Personal Savings Rate, as reported by the US Bureau of Economic Analysis.
ii. Unemployment Rates Measurement. A low unemployment rate indicates a healthy job market and suggests that residents have stable sources of income, which can positively impact tax revenue and consumer spending.

5. Steps to Address Shortfalls
Some primary indicators require immediate action, while other secondary indicators could be indicative individually or collectively of trends that could present a near or medium-term risk to the City.

A. Primary Indicators
Primary indicators include dropping below target fund reserve levels, the closure of a top ten revenue producing commercial activity, or unbudgeted drops in revenue or increase in expenses above 10% in the general fund and 15% in the water or sewer funds, as described above.

If a Primary Indicator indicates an issue, the City will immediately freeze any new non-essential contract services and will not issue any new capital improvement contracts and will prepare a recommendation for next steps to the City Council within thirty calendar days.

B. Secondary Indicators
If, during the evaluation period, it is noted that more than one (1) Secondary Indicator suggests there is current or projected fiscal uncertainty to the detriment of the City, the following assessment will be performed and presented to the City Council at the next quarterly financial update to address possible fiscal shortfalls.

1. Assessment:
a. Upon reaching the defined thresholds, initiate an immediate assessment of the complete financial situation.
b. Review quarterly financial presentations to analyze the breakdown and identify the cause of any shortfall.
c. Evaluate the indicator to identify the projected magnitude and duration of the fiscal impact.
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C. Potential Measures to Consider
The following measures are intended as a general outline of the triage process to consider when addressing an acute financial situation, in priority order. However, the City Council should consider the order and implementation of measures based on the current conditions as they present themselves.

Each measure that is considered should be evaluated with the focus on prioritization of core essential services. Identified essential services will be prioritized for operations and other nonessential services during evaluations for potential adjustments. More specifically, core essential services include distribution of clean reliable water, effective wastewater system management, ability to maintain city zoning and building services, maintenance of public spaces in a safe condition, and police services which directly provide public safety and emergency response.

The city will strive to allocate reasonable resources to critical areas to maintain uninterrupted service delivery.

To identify Non-Critical Expenditures, the City will evaluate contracts, including capital project contracts, professional services contracts, and other services/subscriptions/fees to determine their necessity to maintain the City’s core services and relative budgetary and service impact.

While staff will initially identify, categorize, and make recommendations on these expenses, the City Council will decide where, and in what order, to reduce expenditures based on the fiscal needs of the City.

1. Outside Contract Freezing or Renegotiation and Cost Reduction:
a. Consider freezing any new capital expenditures and related “soft” costs. b. Consider freezing any design services for future capital projects. c. Consider freezing or reducing any service contracts. d. Initiate renegotiation with outside contracts and explore any potential costsaving measures.

2. Excess Asset Liquidation:
a. If the financial issue is expected to be relatively short in duration, to manage cash flow shortfalls, assess available physical and financial assets and explore opportunities for asset monetization, liquidity of investments, loans, or privatization of assets to inject additional funds.
i. Consider selling or leasing surplus or underutilized properties or equipment.
ii. Evaluate long-term investments for liquidation prioritization to meet cashflow needs.

3. Staffing & Training Freeze and Union Negotiations:
a. Consider implementing a hiring freeze on all positions. Extended hiring freezes may need to be lifted for certain positions essential to conduct the City’s core functions.
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b. Consider freezing non-essential training, particularly training that requires air travel or hotel stays.
c. Consider engaging in dialogue with labor unions to seek collaborative solutions.

4. New Revenue:
a. Consider exploring new revenue sources, particularly when the financial situation appears to be a long-term issue that is expected to continue to negatively affect core City service levels.

5. Debt Management:
a. Consider working with lenders, including CalPERS, to renegotiate loan or other unfunded liability payment terms such as extending maturity dates, adjusting interest rates, or restructuring debt payments to better align with cash flow projections.
b. Evaluate internal debt service payments to delay or expedite payments to restructure cash flow for operations.

When implementing cost reduction measures, communication and transparency with the community will be key. This should include communicating the financial challenges and proposed measures transparently to stakeholders and the community and providing regular updates on the status of budget shortfalls and actions taken to address them.

Monitoring and Adjustments:
a. Establish a monitoring framework to track the implementation and effectiveness of cost-saving measures.
b. Conduct regular reviews to assess the impact of actions taken and adjust strategies as needed.

Documentation and Reporting:
a. Document all budget decisions, negotiations, and financial projections meticulously.
b. Provide comprehensive reports to the City Council and stakeholders to maintain transparency and accountability.

6. Review and Approval:

This policy shall be reviewed with the City Financial Policies on a regular basis by the City Manager and Administrative Services Director and updated as necessary through approval by the City Council to ensure its effectiveness in identifying and addressing budget shortfalls. 56 of 814
Section B
Revenues Controls and Management Policies

1. Purpose............................................................................................................................................................... 19

2. Revenues Management..................................................................................................................................... 19

3. Revenues Controls............................................................................................................................................. 19

4. Review and Approval........................................................................................................................................ 21 57 of 814
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1. Purpose:

The purpose of the Revenue Control and Cash Management Policy is to establish a framework from which the City Commission, City Manager, and all city departments may work to maintain effective revenue controls and cash management practices, including compliance with federal, state, and local requirements and industry standards.

2. Revenues Management
a) The City will strive to maintain a diversified and stable revenue base to minimize the impact of economic fluctuation.
b) The City shall make a prudent effort to collect revenues and perform audits to assure that funds due to the City are accurately received in a timely manner. c) The City will fund current expenditures with current revenues, avoiding procedures that balance current budgets by postponing needed expenditures, accruing future revenues, or rolling over short-term debt.
d) The City has established various special revenue, capital project, debt service, and enterprise funds to account for revenues whose use should be restricted to certain activities. Accordingly, each fund exists as a separate financing entity from other funds, with its own revenue sources, expenditures, and fund equity. i. Any transfers between funds for operating purposes are clearly set forth in the annual budget. These operating transfers, under which financial resources are transferred from one fund to another, are distinctly different from inter-fund borrowings, which are usually made for temporary cash flow reasons, and are not intended to result in a transfer of financial resources by the end of the fiscal year. e) The City will seek reimbursements for State mandated costs whenever possible. f) The City will adopt user fees with appropriate levels of cost recovery. i. User-fee studies should be performed and updated to ensure the proper balance of costs and service charges. The City should strive to cover the full cost of providing non-tax and discretionary fee-based service operations except to the extent that City Council approves defined subsidy levels by program area. g) Operating departments are to review public services to identify and determine those appropriate for fee collection. Recommendations for new fees are to be presented to the City Council as fees are updated to ensure they reflect all direct and reasonable indirect costs of providing such services.
h) Enterprise operations will be self-supporting and shall reimburse the General Fund for all materials and services provided on their behalf.
i) The City will seek out, apply for, and effectively administer federal, state, and other grants that address the City’s current operating and capital priorities. Prior to accepting grant funding, the Grants Management policy will be reviewed to ensure the grant being applied for meets those requirements.

3. Revenues Controls
a) City Management shall be responsible to establish a reasonable internal control environment that all aspects of cash receipting and accounts receivables should be subject to proper processing including:
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• Segregation of duties such as initiation and authorization of transactions, execution of transactions (receipting and disbursement), recording transactions, reconcilement, and maintaining custody.
• Daily processing and timely deposit of receipts. Ideally, all funds should be deposited within 24 hours of receipt.
• Timely reconciliation to applicable ledgers.
• Physical security procedures.
• Fraud reporting procedures.
• Use of integrated receipt and accounting systems wherever practical and costeffective. b) Accounting practices - All receipts and receivables should be recorded in accordance with our financial reporting framework and generally accepted accounting principles (GAAP).
c) Billing and collection practices - Accounts receivable should be established for services provided in advance of payment and terms for collection should be established. In accordance with established procedures, bills should be initiated, recorded in an accounts receivable system, and accounted for within the financial reporting system if different. All invoices for payment should be generated within an established timely manner after initial service delivery. Effort should be made to ensure that receivables are collected in a timely fashion.
d) Methods of payment – The City shall offer as many payment types and methods as possible that can be reasonably administered. These payment types should be standardized across City Services where possible. Electronic forms of payment methods should be promoted due to the increased timeliness and cost-effectiveness while providing reduced overall risk and increased cash flow. Merchant servicers who process credit cards shall be PCI Compliant
e) Depositing of received funds – Administrative Services should serve as the primary recipient for all revenue collection. There should be timely recognition and depositing of revenue collected. Any payments collected in secondary locations should be properly recorded within the Financial Reporting System and transferred to the Administrative Services Department as soon as possible and for a period not more than 24 hours. f) Returned checks -The Administrative Services Department, in coordination with the relevant service department, shall timely process and initiate collections for any returned checks. Fees for returned checks shall be established by City Council and State Law. g) Accounts receivable management - All accounts receivable, invoicing, should be recorded in a manner that allows for aging analysis according to GAAP. Department management along with the Administrative Services Department should establish available collection options that maximize collection efficiency. Collection agencies 59 of 814
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that are familiar with federal, state, and local notice requirements and regulations should be considered when their use proves cost-effective.
h) Bad Debts - An allowance for doubtful accounts and a write-off procedure should be established. Bad debt expenses should be estimated based upon a documented method of calculation. An allowance for doubtful accounts should be recorded. Write-offs should be performed periodically to ensure that accounts receivable and allowance balances are not overstated. Efforts should be made to pursue the timely collection of delinquent accounts.
i) Budgetary review responsibilities - Revenue collections and accounts receivable should be monitored in a timely manner. Both actual and budgeted or forecast revenues should be monitored. Any significant variance of actual from the forecast or budgeted revenues should be investigated thoroughly.

4. Review and Approval:

This policy shall be reviewed with the City Financial Policies on a regular basis by the City Manager and Administrative Services Director and updated as necessary through approval by the City Council to ensure its effectiveness in identifying and addressing budget shortfalls. 60 of 814
Section C
Expenditure Planning and Purchasing Policies

1. Purpose and Scope ......................................................................................................................................23

2. Definitions ...................................................................................................................................................23

3. Provisions/Procedures.................................................................................................................................24

4. Purchasing Limits .......................................................................................................................................24

5. Purchases Generally....................................................................................................................................24

6. Purchase of Inventory, Materials, Supplies, Equipment, & Non-Professional Services............................25

7. Travel ..........................................................................................................................................................25

8. Information Technology Purchases ............................................................................................................25

9. Purchase of Professional Services...............................................................................................................26

10. Contracts, Agreements, Mou’s with Other Public Agencies or Non-Profits..........................................26

11. Annual and Multi-Year Agreements......................................................................................................26

12. Exemptions for Bid Requirements .........................................................................................................27

13. Federal Procurement Policy ...................................................................................................................28

14. Cooperative Purchasing..........................................................................................................................29

15. Local Vendor and Environmentally Preferable Purchasing Preference ...............................................29

16. Public Project Contracts.........................................................................................................................29

17. Insurance and Bonds ..............................................................................................................................30 61 of 814
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1. Purpose and Scope
This policy provides purchasing guidelines for all City purchases.

It is the goal of the City Council to encourage fair and competitive selection of goods and services for the benefit of the citizens of Cotati. As such in accordance with the policy framework set forth in Chapter 3.36 of the City of Cotati Municipal Code (CMC), City purchases and contracts (excluding rentals and leases) will be made pursuant to these guidelines.

2. Definitions
o “Professional services” means services such as, but not limited to, those defined in Government Code §4525, including architectural, landscape architectural, engineering, environmental, construction project management, and land surveying services, as well as incidental services that members of these professions and those in their employ may logically or justifiably perform. .
o Public Project” shall be defined in accordance with the Uniform Public Construction Cost Accounting Act (Public Contract Code [PCC] §22002). o “Responsible bidder” means a person or entity with the capability in all respects to fulfill the contract requirements.
o “Services” means any and all work performed, or service rendered by independent contractors, with or without the furnishing of material, excluding contracts for public works projects or professional services.
o “Supplies”, “materials”, and “equipment” mean any and all articles or things which shall be furnished to or used by any department of the City, including those items purchased by the City and furnished to contractors for use in public works projects. o “Emergency”; is defined as the following;
In accordance with Government Code (GC) §8558(c), as may be amended from time to time, a “Local emergency” means the duly proclaimed existence of conditions of disaster or of extreme peril to the safety of persons and property within the territorial limits of a county, city and county, or city, caused by conditions such as air pollution, fire, flood, storm, epidemic, riot, drought, cyberterrorism, sudden and severe energy shortage, plant or animal infestation or disease, the Governor’s warning of an earthquake or volcanic prediction, or an earthquake, or other conditions, other than conditions resulting from a labor controversy, which are or are likely to be beyond the control of the services, personnel, equipment, and facilities of that political subdivision and require the combined forces of other political subdivisions to combat, or with respect to regulated energy utilities, a sudden and severe energy shortage requires extraordinary measures beyond the authority vested in the California Public Utilities Commission.

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prevent or mitigate the loss or impairment of life, health, property, or essential public services.

3. Provisions / Procedures
A. Budget Requirements
Expenditures are to be budgeted and controlled to not exceed estimated revenues and the approved and planned use of fund balances accumulated in prior years.

B. Minor Non-Recurring Purchases
1) Petty Cash: Only to be utilized for minor purchases up to $50.00 per person per transaction. All claims must be approved by the appropriate department head and accompanied by supporting documentation.
2) Credit Card: The Administrative Services Department may issue City credit cards as directed by the City Manager only. Issued cards shall be used in accordance with the procedures for use of City credit cards as included within the Administrative Purchasing Manual. City of Cotati credit cards should never be used to circumvent established competitive purchasing procedures.

4. Purchasing Limits
A. City Employees: $500 limit per purchase with prior approval from Department Head or City Manager.

B. Department Head: $5,000 limit per purchase unless previously authorized by City Manager with a supporting purchase order /contract.

C. City Manager: $25,000 limit per purchase (CMC 2.12.122) D. City Council: Any purchase above $25,000 requires City Council approval, except in limited circumstances, including:
1) The City Manager may authorize purchases if all of the city funds to be spent for the special and professional services (architects, engineers, attorneys, planning consultants, environmental consultants and other specialized consultants) will be fully reimbursed by another party (CMC 2.12.122); or
2) If there is an emergency, in accordance with Section G of this policy.

5. Purchases Generally
A. Budget Requirements: All purchases must have a City Council approved budget and requisite funds available.

B. Insufficient Funding: If the needed funds are not available for a purchase, then the purchase shall require separate City Council appropriation.

C. Due Diligence: Any official of the City authorized to make purchases shall, before making the purchase, secure accurate and comparative cost information concerning the 63 of 814
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articles to be purchased and shall act to procure for the City the needed quality and quantity of supplies, materials and equipment at the least expense to the City.

D. Best Practices: All purchasers should follow the City Administrative Purchasing Practices and direct any questions about this Policy or supporting Administrative Purchasing Manual to the Administrative Services Department.

E. Vendor Relations: City employees will conduct all purchasing functions in a professional manner and shall promote equal opportunity and fairness in all vendor relations.
i. Ethics and Standards of Behavior: All purchasing functions shall be conducted impartially to assure fair competitive access by responsible vendors. In addition, public employees should conduct themselves in a manner that will foster public confidence in the procurement process. ii. Business License Requirements: Any person or company providing services to the City must have a City business license, in accordance with CMC 5.04. The department making the purchase or contracting for the service is responsible for checking that the vendor or contractor has a business license.

6. Purchase of Inventory, Materials, Supplies, Equipment, & Non-Professional Services A. Minor Purchases of five thousand ($5,000.00) dollars or less may be made based on informal quotes.

B. Other than Minor Purchases: Purchases greater than five thousand ($5,000.01) dollars up to twenty-five thousand ($25,000.00) dollars shall be made based on written formal quotations from vendors.

C. Significant Purchases: For purchases greater than twenty-five thousand ($25,000.01) dollars, the purchase shall be approved by the City Council through a competitive bid process.

7. Travel
All expense payments or reimbursements for travel and/or subsistence expenses must meet the requirements set forth in the City of Cotati Personnel Rules, which establishes policy and procedure related to obtaining travel authorization, advance travel funds, and expenditure or reimbursement for travel and subsistence expenses incurred in conduct of business of the City.

8. Information Technology Purchases
All Information Technology (IT) purchases must be approved in advance by the City Manager and/or designee to ensure compliance with City hardware and system standards. Similarly, IT is required to be consulted for any planned purchases of software and hardware arising during the budget process and in the development of system specifications. 64 of 814
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9. Purchase of Professional Services –
Agreements for Professional Services will be awarded pursuant to the following guidelines:

A. Agreements for Professional Services estimated to cost up to twenty-five thousand dollars (up to $25,000.00) may be awarded, based on up to three proposals whenever practical.

B. Requests for Quotation (RFQ) or Requests for Proposal (RFP) for professional services estimated to be twenty-five thousand ($25,000.01) dollars or greater may be issued by the City Manager provided a budget appropriation for the service has been approved by the City Council. If no RFP is issued, three proposals shall be solicited.

Contracts for Professional Services estimated to cost more than twenty-five thousand ($25,000.01) dollars will generally be awarded pursuant to the following guidelines; however, it is recognized that the City’s need for consultant services will vary from situation to situation, and accordingly, flexibility will be provided in determining the appropriate evaluation and selection process to be used in each specific circumstance. As such, cost shall not be the sole criterion in selecting the successful bidder. Consultant proposals will be evaluated based on a combination of factors that result in the best value to the City, including but not limited to:
• Understanding of the work required by the City
• Quality and responsiveness of the proposal
• Demonstrated competence and professional qualifications necessary for satisfactory performance of the work required by the City • Recent experience in successfully performing similar services • Proposed methodology for completing the work
• References
• Background and related experience of the specific individuals to be assigned to the project.t
• Proposed compensation

10. Contracts, Agreements, Mou’s with Other Public Agencies or Non-Profits Must go to City Council for approval, regardless of dollar amount, unless under $25,000 and normal process is waived by the City Manager and City Attorney.

11. Annual and Multi-Year Agreements
A. Annual Agreements: For annual agreements with a single vendor for repeated or “asneeded” purchases throughout a year, the procurement procedures used shall be consistent with the estimated cumulative expenditures during that fiscal year. 65 of 814
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B. Multi Year Agreements: A contract may be entered into for any period deemed to be in the best interest of the City, provided that the initial term of the contract and renewal provisions are included in the original solicitation process. Multi-year contracts are subject to the purchasing procedures required by the estimated cumulative multi-year contract amount. Adequate funds must be available to fulfill the first fiscal year’s obligation at the time of contract execution, except for “standby” agreements that are for emergency services only and not used during the normal course of business.

Subsequent year’s appropriations are subject to authorization by the City Council, with the exception for “standby” emergency agreements.

12. Exemptions for Bid Requirements
A. Sole Source Purchases Exemption: Commodities and services, which can only be obtained from one vendor, are exempt from competitive bidding. Sole source purchases may include proprietary items sold directly from the manufacturer, items that have only one distributor authorized to sell in this area, or a certain product that has been proven to be the only product that is acceptable. All sole source purchases shall be supported by written documentation signed by the purchasing Department Head and City Manager.

An example of a sole source is where equipment, supplies or materials are required in order to be compatible with existing equipment or to perform a complex or unique function. The final determination that an item is a valid sole source purchase will be made by the City Manager and shall not be delegated.

B. Emergency Contracting Exemption: In all cases, when the City declares a “Local Emergency”, in accordance with GC §8558(c) it is also an emergency under the PCC §1102. In some cases, such as sudden loss of critical infrastructure, it may only be an emergency under the public contract code. However, in either case, the following emergency contracting provisions apply.

In accordance with PCC §22050, as may be amended from time to time, the City Manager or designee, as the Director of Emergency Operations (CMC 2.24.060), shall have the authority to repair or replace a public facility, take any directly related and immediate action required by that emergency, and procure the necessary equipment, services, and supplies for those purposes, without giving notice for bids to let contracts. This includes “public works”, as authorized under PCC §22035.

I. The City Manager shall report to the City Council at its next meeting the reasons justifying why the emergency will not permit a delay resulting from a competitive solicitation for bids and why action is necessary to respond to the emergency.
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II. The City Council shall initially review the emergency procurement at its next regularly scheduled meeting (no more than 14 days following the action), and at least at every regularly scheduled meeting thereafter until the procurement is terminated by the City Manager. The purpose of the City Council review is to determine, by a four-fifths vote, that there is a need to continue any on-going emergency procurement.

III. The City Manager shall terminate the emergency procurement at the earliest possible date that conditions warrant so that the remainder of the emergency action may be completed by giving notice for bids to let contracts.

13. Federal Procurement Policy
When the City procures goods and services utilizing funds through Federal grants, the City will follow all guidance and ensure proper financial stewardship of taxpayer resources. This document serves to outline the City’s procurement policy to include all Federal grant funded projects and purchases. These policies and procedures reflect applicable state and local laws and their conformity to the applicable Federal laws and standards identified in the Uniform Guidance, Procurement Standards (2 CFR 200.317-.326). The City’s compliance, and notification thereof, are indicated here, in Chapter 1, and throughout this Purchasing Manual by referencing the applicable Uniform Guidance section. Additionally, the Uniform Guidance Procurement Standards (2 CFR 200.317 - .326) are included in the Appendix.

All City employees procuring goods and/or services utilizing Federal grants are responsible for complying with the Federal Procurement Standards referenced throughout the Purchasing Manual and attached in the Appendix. Federal grant funds include funds that are Federal in origin that are passed through state or other agencies. Employees obtaining grants are responsible for determining the source of funds and notifying the Finance Department Accountant Auditor responsible for grant reporting of any Federal funds awarded. Legal Agreements where the City provides services to the federal government, such as the Intergovernmental Service Agreement (IGSA), are contracts for services, not grants, and as such follow each Agreement’s purchasing guidelines, not the Federal grant procedures.

Where thresholds differ between City and Federal procurement policies, City employees utilizing Federal grants will follow the most restrictive rule. For example, currently the Federal “micropurchase” (informal bid) threshold is $10,000 whereas the City’s is $5,000. In this instance formal bids/quotes would be obtained starting at the City limit of $5,000. (2 CFR 200.320 (a)) For Federal grant funded contracts, the City solicitation and contract documents must comply with requirements regarding small and minority businesses, women’s business enterprises, and labor surplus area firms.
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14. Cooperative Purchasing
The City will endeavor to utilize the State Cooperative Purchasing; the League of California Purchasing Pool; and other public agencies operating local pools or allowing piggyback purchasing.

When utilizing such pools, bidding requirements set forth herein shall be deemed to be met.

15. Local Vendor and Environmentally Preferable Purchasing Preference This preference is used as a guide for both the promotion of local business activity, which may result in increased jobs and increased revenue. As well as promotion of environmentally conscious procurement to help address our impacts to climate change. The City will allow for a five percent (5%) preference to local or ten percent (10%) for environmentally preferable vendors in those City purchases using competitive bidding
Guidelines for determination are as follows:

A. Local vendors must have their principal place of business within the City of Cotati. 1) To qualify for the preference, local bidders must submit proof of the address of their principal place of business and a copy of their current City Business License.

B. The total preference amount granted shall not exceed $5,000 (i.e. 5% of $100,000).

Preferences only apply to the procurement of material, equipment, supplies, and nonprofessional services as set forth in this policy. They do not apply to purchases procured under Federal or State requirements, State Cooperative Purchasing, cooperative purchases with other agencies, or Public Works projects subject to the PCC. For professional services, vendor selection is based primarily on qualifications and project schedule, with cost as a secondary criterion.

C. Preference provisions may be waived by the City Manager when the conditions of Federal, State, or private grant monies prohibit such preference or otherwise conflict with this policy.

D. Bidders must bid with the same or comparable specifications as required of non-local bidders.

16. Public Project Contracts
In accordance with Cotati Municipal Code Chapter 3.4, the City follows the procedures in the Uniform Public Construction Cost Accounting Act (PCC §22000 et seq.), as may be amended from time to time. For convenience, the following thresholds exist as of the date of this policy for Public Projects in accordance with PCC §22032:

A. Public projects of sixty thousand dollars ($60,000) or less may be performed by the employees of a public agency by force account, by negotiated contract, or by purchase order.

B. Public projects of two hundred thousand dollars ($200,000) or less may be let to contract by informal procedures, as defined by PCC §22034.

C. Public projects of more than two hundred thousand dollars ($200,000) shall be let to contract by formal bidding procedures.
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17. Insurance and Bonds
City policy is to require contractors providing services, materials, or construction to the City to indemnify, defend, and hold the City harmless for claims arising from their performance of the contract and supply proof of insurance coverage to the City. The proof the City requires is usually in the form of certificates of coverage and endorsements provided by the contractor’s insurance broker or carrier. All insurance requirements made by the contractor must appear in the City agreement, and in the case of a competitive bid, they must also be in the Request For Bid or Request for Proposal.
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1. Purpose........................................................................................................................................................32

2. Policy ...........................................................................................................................................................32

3. Responsibilities............................................................................................................................................32 70 of 814
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1. Purpose
It is the policy of the City to provide employees with credit cards as an alternative method of payment for goods and services. The credit card represents the City’s trust in a responsible employee to safeguard and protect the City’s assets.

Cardholders assume the responsibility of the protection and proper use of the City issued card at all times. This policy provides guidelines on requesting a card and the responsibilities associated with card use.

2. Policy
A. The City may make credit cards available to designated staff to make purchases or payments in order to facilitate the operations of the City department.

B. The Finance Department will issue cards to employees as requested by the employees’ Department Head.

C. Employees will not use City-issued credit cards for personal expenses even if the intent is to reimburse the City later. Charging personal expenses on the credit card is a misuse of City funds and doing so may result in disciplinary action.

D. Purchases made with City-issued credit cards must be made in compliance with the City’s Purchasing Policy.

E. Purchases should not be “split” to circumvent credit card transaction limits. Split purchases are when the vendor is asked to split a single purchase into two separate transactions by a single employee credit, or by multiple employee credit cards.

3. Responsibilities
A. Administrative Services Department
I. Administer the City’s credit card program including establishing procedures also including issuing payments to the credit card company.

II. Maintain a log of all new credit card requests, credit limit adjustment requests, activations, and deactivations. Cardholders are encouraged to contact the Program Administrator whenever they have any questions.

B. City Manager
I. Authorize requests for new credit cards to be issued or for adjustments to existing credit card purchasing limits.

C. Department Heads or Direct Supervisors
I. Ensure that employees of their respective departments who make credit card transactions are aware of this Credit Card Policy and the Purchasing Policy.

II. Retrieve credit cards, receipts, packing slips, and the monthly statement prior to employees leaving the City and return them to the Program Administrator.

D. Cardholders
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I. A. Utilize the credit card in compliance with this policy, including the related processes and procedures. Cardholders are responsible for the purchases made on their City-issued credit cards.

II. . Do not permit others to use the card, except when a duty has been delegated to office staff (e.g., to make City business travel and hotel arrangements).

III. Reconcile the receipts and packing slips to the monthly credit card statement within prescribed timelines.

IV. Secure credits from suppliers when items are returned, or billing errors are found.

V. Resolve disputes and any fraudulent charges on the monthly statement.

VI. Notify the bank, your Department Head, and the Administrative Services Department immediately if the credit card is lost or stolen. 72 of 814
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1. Statement of Policy......................................................................................................................................35

2. Purpose........................................................................................................................................................35

3. Definitions ...................................................................................................................................................36

4. Strategies for Implementation.....................................................................................................................41

5. Record Keeping Responsibilities.................................................................................................................50

6. Responsibilities............................................................................................................................................51

7. Implementation ...........................................................................................................................................52

8. Program Evaluation....................................................................................................................................52

9. Exceptions ...................................................................................................................................................52

10. Effective Dates ........................................................................................................................................52 73 of 814
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1. Statement of Policy
The Environmentally Preferable Purchasing Policy will commit the City to:
a. Protect and conserve natural resources, water, and energy; b. Minimize the contribution to climate change, pollution, and solid waste disposal; c. Institute practices that reduce waste by increasing product efficiency and effectiveness;
d. Purchase products that minimize environmental impacts, toxics, pollution, and hazards to worker and community safety;
e. Purchase products that include recycled content, are durable and long-lasting, conserve energy and water, use agricultural fibers and residues, use unbleached or chlorine free manufacturing processes, are lead-free and mercury-free, and use wood from sustainably harvested forests; and
f. Comply with State requirements as contained in the SB 1383 procurement regulations to procure a specified amount of Recovered Organic Waste Products to support Organic Waste disposal reduction targets and markets for products made from recycled and recovered Organic Waste materials.

2. Purpose
The purpose of the policy is to incorporate considerations that include the following:
a. Conserve natural resources;
b. Minimize environmental impacts such as pollution and use of water and energy; c. Eliminate or reduce toxics that create hazards to workers and our community; d. Support a strong recycling market and circular economy; e. Incorporate environmental considerations including recycled-content and recovered Organic Waste product use into purchasing practices and procurement; f. Reduce materials that are landfilled;
g. Increase the use and availability of environmentally preferable products that protect the environment;
h. Identify environmentally preferable products and distribution systems; i. Reward manufacturers and vendors that reduce environmental impacts in their production and distribution systems or services;
j. Create a model for successfully purchasing environmentally preferable products that encourages the use of agricultural fibers, chlorine-free manufacturing processes, wood from sustainably harvested forests, and other environmentally friendly practices, and that encourages other purchasers in our community to adopt similar goals.
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3. Definitions
• “Annual Recovered Organic Waste Product Procurement Target” means the amount of Organic Waste in the form of a Recovered Organic Waste Product that the City is required to procure annually under 14 CCR Section 18993.1. This target shall be calculated by multiplying the per capita procurement target, which shall be 0.08 tons of Organic Waste per California resident per year, times the City’s residential population using the most recent annual data reported by the California Department of Finance. Annually, CalRecycle will provide notice to each City of its Annual Recovered Organic Waste Product Procurement Target by posting such information on CalRecycle’s website and providing written notice directly to the City.
• “American Society for Testing and Materials” means ASTM International, an open forum for the development of high quality, market relevant international standards use around the globe.
• “Bay Area Green Business Program” is a partnership of governments and businesses that certifies the environmental performance of government agencies and businesses. • “Bio-Based Products” means commercial or industrial products (other than food or feed) that utilize agricultural crops or residues but does not include products made from forestry materials
• “Biodegradable Products Institute” (BPI) is a multi-stakeholder association of key individuals and groups from government, industry and academia, which promotes the use, and recycling of biodegradable polymeric materials (via composting). BPI does not create standards but certifies products that demonstrate they meet the requirements in ASTM D6400 or D6868, based on testing in an approved laboratory. • “Buyer” means anyone authorized to purchase or contract for purchases on behalf of the City and its departments.
• “The Carpet and Rug Institute” (CRI) is the national trade association representing the carpet and rug industry. CRI has developed and administered the “Green Label” indoor air quality testing and labeling program for carpet, adhesives, cushion materials and vacuum cleaners. The “Green Label Plus” testing program incorporates additional requirements to meet California’s Collaborative for High Performance Schools low-emitting materials criteria
• “Compost” means the product resulting from the controlled biological decomposition of organic solid wastes that are source separated from the municipal solid waste stream or which are separated at a centralized facility or as otherwise defined in 14 CCR Section 17896.2(a)(4). Compost eligible for meeting the Annual Recovered Organic Waste Product Procurement Target must be produced at a compostable material handling operation or facility permitted or authorized under 14 CCR Chapter 3.1 of Division 7 or produced at a large volume in-vessel digestion facility that composts on-site as defined and permitted under 14 CCR Chapter 3.2 of Division 7. Compost shall meet the State’s composting operations regulatory requirements
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• “Compostable plastic” means a polymer that is made from plants such as corn or soybeans, and breaks down during composting to yield carbon dioxide, water and inorganic compounds and biomass, at a rate consistent with other known compostable materials and leaves no visually distinguishable or toxic residues
• “Contractor” means any person, group of persons, business, consultant, designing architect, association, partnership, corporation, supplier, vendor or other entity that has a contract or serves in a subcontracting capacity with an entity having a contract for the provision of goods or services.
• “Direct Service Provider” means a person, company, agency, district, or other entity that provides a service or services to City pursuant to a contract or other written agreement or as otherwise defined in 14 CCR Section 18982(a)(17).
• “EcoLogo” is a third-party, multi-attribute eco-labeling program founded by the Canadian government in 1988 and part of UL Environment since 2010. The Program compares products / services with others in the same category, develops rigorous and scientifically relevant criteria, and awards the EcoLogo to those that are environmentally preferable throughout their entire lifecycle.
• “Electronic Product Environmental Assessment Tool” (EPEAT) is a procurement tool to help institutional purchasers in the public and private sectors evaluate, compare and select personal computers, displays, imaging equipment and televisions based on their environmental attributes.
• “Electricity Procured from Biomass Conversion” means electricity generated from biomass facilities that convert recovered Organic Waste, such as wood and pruning from the municipal stream, into electricity. Electricity procured from a biomass conversion facility may only count toward the City’s Annual Recovered Organic Waste Product Procurement Target if the facility receives feedstock directly from certain permitted or authorized compostable material handling operations or facilities, transfer/processing operations or facilities, or landfills, as described in 14 CCR Section 18993.1(i). • “Energy Star” means the U.S. EPA’s energy efficiency product labeling program. • “Energy-Efficient Product” means a product that is in the upper 25% of energy efficiency for all similar products, or that is at least 10% more efficient than the minimum level that meets Federal standards.
• “Environmentally Preferable Purchasing” means EPP is the procurement of goods and services that have a reduced impact on human health and the environment compared to competing products serving the same purpose. It is an essential part of our search for high quality products and services at competitive prices.
• “Federal Energy Management Program” is a program of the Department of Energy that issues a series of Product Energy Efficiency Recommendations that identify recommended efficiency levels for energy-using products.
• “Forest Stewardship Council” is a global organization that certifies responsible, on-theground forest management according to rigorous standards developed by a broad variety of stakeholder groups.
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• “Green Seal” is an independent, non-profit environmental labeling organization. Green Seal standards for products and services meet the U.S. EPA’s criteria for third-party certifiers. The Green Seal is a registered certification mark that may appear only on certified products.
• “Integrated Pest Management” is an ecosystem-based strategy that focuses on long-term prevention of pests or their damage through a combination of techniques such as biological control, habitat manipulation, modification of cultural practices, and use of resistant varieties. Pesticides are used only after monitoring indicates they are needed according to established guidelines, and treatments are made with the goal of removing only the target organism. Pest control materials are selected and applied in a manner that minimizes risks to human health, beneficial and nontarget organisms, and the environment. • “City” means the City of Cotati or a regional agency with the responsibility for meeting Integrated Waste Management Act requirements. City’s may utilize a Joint Powers Authority (JPA) to comply with the requirements of SB 1383, however, the City shall remain ultimately responsible for compliance.
• “LEED Rating System” means the most recent version of the Leadership in Energy and Environmental Design (LEED) Rating System, approved by the U.S. Green Building Council, and designed for rating new and existing commercial, institutional, and residential buildings.
• “NSF/ANSI” means NSF International follows the American National Standards Institute (ANSI) standards development process. Standards are developed by joint committees (balanced stakeholder groups of public health, industry and user representatives). • “Organic Pest Management” prohibits the use and application of toxic chemical pesticides and strives to prevent pest problems through the application of natural, organic horticultural and maintenance practices. All pest control products shall be in keeping with, but not limited to, those products on the approved list of California Certified Organic Farmers (CCOF). • “Organic Waste” means Solid Wastes containing material originated from living organisms, such as food scraps and yard debris. This designation shall be made by the authorized collector based on good public practice, ability to receive an acceptable economic return, and feasibility of composting the waste stream. • “Paper Products” include, but are not limited to, paper janitorial supplies, cartons, wrapping, packaging, file folders, hanging files, corrugated boxes, tissue, and toweling; • "Post-consumer Material" means a finished material which would normally be disposed of as a solid waste, having reached its intended end-use and completed its life cycle as a consumer item, and does not include manufacturing or converting waste. • “Pre-consumer Material” means material or by-products generated after manufacture of a product is completed but before the product reaches the end-use consumer. Pre-consumer material does not include mill and manufacturing trim, scrap, or broke which is generated at a manufacturing site and commonly reused on-site in the same or another manufacturing process.
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• “Printing and Writing Papers” include, but are not limited to, copy, xerographic, watermark, cotton fiber, offset, forms, computer printout paper, white wove envelopes, manila envelopes, book paper, note pads, writing tablets, newsprint, and other uncoated writing papers, posters, index cards, calendars, brochures, reports, magazines, and publications;
• “Postconsumer Content” means any product which has served its intended use by a business or a consumer, which has been disposed and subsequently separated from solid waste for use as a constituent in a new product.
• “Procurement of Recovered Organic Waste Products” shall mean purchase or acquisition (e.g., free delivery or free distribution from a hauler or other entity via a written agreement or contract), and end use by the City or others. The City’s Annual Recovered Organic Waste Product Procurement Target can be fulfilled directly by the City or by Direct Service Providers through written contracts or agreements for Procurement of Recovered Organic Waste Products at the City’s behest.
• “Post-manufacture Content” means, waste that is created by a manufacturing process, and that is subsequently only used as a constituent in another manufacturing process. • “Recovered Material” means fragments of products or finished products of a manufacturing process, which has converted a resource into a commodity of real economic value and includes pre-consumer and post-consumer material but does not include excess resources of the manufacturing process.
• “Recovered Organic Waste Products” means products made from California, landfilldiverted recovered Organic Waste processed at a permitted or otherwise authorized operation or facility, or as otherwise defined in 14 CCR Section 18982(a)(60). Products that can be used to meet the Annual Recovered Organic Waste Product Procurement Target shall include Compost, SB 1383 Eligible Mulch, Renewable Gas from an in-vessel digestion facility, and Electricity Procured from Biomass Conversion as described herein and provided that such products meet requirements of 14 CCR, Division 7, Chapter 12, Article

12. • “Recordkeeping Designee” means the public employee appointed by the City Manager or their designee to track procurement and maintain records of Recovered Organic Waste Product procurement efforts both by the City and others, if applicable, as required by 14 CCR, Division 7, Chapter 12, Articles 12 and 13. In Sonoma County, Zero Waste Sonoma will be considered the Recordkeeping Designee.
• "Recyclability" means that the Paper Products and Printing and Writing Paper offered or sold to the City are eligible to be labeled with an unqualified recyclable label as defined in 16 Code of Federal Regulations Section 260.12 (2013).
• “Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper” means such products that consist of at least thirty percent (30%), by fiber weight, postconsumer fiber, consistent with the requirements of Sections 22150 to 22154 and Sections 12200 and 12209 of the Public Contract Code, and as amended. 78 of 814
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• Recycled Content Standard” means the minimum level of recovered material and/or postconsumer material necessary for products to qualify as “recycled products.” • “Recycling” means using waste as material to manufacture a new product. Recycling involves altering the physical form of an object or material and making a new object from the altered material.
• “Renewable Gas” means gas derived from Organic Waste that has been diverted from a landfill and processed at an in-vessel digestion facility that is permitted or otherwise authorized by 14 CCR to recover Organic Waste.
• “Reuse” means using an object or material again, either for its original purpose or for a similar purpose, without significantly altering the physical or chemical form of the object or material.
• “Remanufactured Product” means any product diverted from the supply of discarded materials by refurbishing and marketing said product without substantial change to its original form.
• “Reused Product” means any product designed to be used many times for the same or other purposes without additional processing except for specific requirements such as cleaning, painting or minor repairs.
• “Russian River Friendly Landscaping” means working with the natural ecosystems of the Russian River region to foster soil health, to reduce runoff and pollution, prevent and reuse plant waste, and conserve water and other natural resources. The Russian RiverFriendly Landscape Guidelines are a revision of the Bay-Friendly Landscape Guidelines by the Russian River Watershed Association (RRWA), originally published by StopWaste.Org.
• “Source Reduction” Section 40196 of the California Public Resources Code defines source reduction as any action which causes a net reduction in the generation of solid waste. "Source Reduction" includes, but is not limited to, reducing the use of nonrecyclable materials, replacing disposable materials and products with reusable materials and products, reducing packaging, reducing the amount of yard wastes generated, establishing garbage rate structures with incentives to reduce the amount of wastes that generators produce, and increasing the efficiency of the use of paper, cardboard, glass, metal, plastic, and other materials.
• “SB 1383” means Senate Bill 1383 of 2016 approved by the Governor on September 19, 2016, which added Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety Code, and added Chapter 13.1 (commencing with Section 42652) to Part 3 of Division 30 of the Public Resources Code, establishing methane emissions reduction targets in a statewide effort to reduce emissions of short-lived climate pollutants, as amended, supplemented, superseded, and replaced from time to time. • “SB 1383 Regulations” or “SB 1383 Regulatory” means or refers to, for the purposes of this policy, the Short-Lived Climate Pollutants (SLCP): Organic Waste Reductions regulations developed by CalRecycle and adopted in 2020 that created Chapter 12 of 14 CCR, Division 7 and amended portions of regulations of 14 CCR and 27 CCR. 79 of 814
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• “State” means the State of California.
• “Water-Saving Products” are those that are in the upper 25% of water conservation for all similar products, or at least 10% more water-conserving than the minimum level that meets the Federal standards.
• “WaterSense” means a partnership program by the U.S. Environmental Protection Agency.

Independent, third-party licensed certifying bodies certify that products meet EPA criteria for water efficiency and performance by following testing and certification protocols specific to each product category. Products that are certified to meet EPA specifications are allowed to bear the WaterSense label.

4. Strategies For Implementation
a. Source Reduction
o Institute practices that reduce waste, encourage reuse, and result in the purchase of fewer products.
o Purchase remanufactured products such as toner cartridges, tires, furniture, equipment and automotive parts, when feasible.
o Consider short-term and long-term costs in comparing product alternatives. This includes evaluation of total costs expected during the time a product is owned, including, but not limited to, acquisition, extended warranties, operation, supplies, maintenance and replacement parts, disposal costs and expected lifetime compared to other alternatives. o Purchase products that are durable, long lasting, reusable or refillable and avoid purchasing one-time use or disposable products.
o Request vendors eliminate packaging or use the minimum amount necessary for product protection. Vendors shall be encouraged to take back packaging for reuse. A vendor’s willingness to take back packaging will be used as part of the consideration in the procurement process. o Specify a preference for packaging that is reusable, recyclable, or compostable, when suitable uses and programs exist.
o Encourage vendors to take back and reuse pallets and other shipping materials.
o Encourage suppliers of electronic equipment, including but not limited to computers, monitors, printers, and copiers, to take back equipment for reuse or environmentally sound recycling when discarding or replacing such equipment, whenever possible. Suppliers will be required to state their take-back, reuse or recycling programs during the procurement process.
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equipment, whenever possible. Suppliers will be required to state their take back, reuse or recycling programs during the procurement process. o Promote electronic distribution of documents rather than printing or copying.
o When producing paper documents, print and copy all documents on both sides to reduce the use and purchase of paper. Printers and copiers shall be set to default to duplex.
o Ensure all imaging equipment is installed with energy and resourceefficient settings set as default. o Reduce the number and type of equipment needed to perform office functions to save energy and reduce purchasing and maintenance costs.

Eliminate desktop printers, redundant network printers and reduce the number of fax machines leased or owned. Consider lease or purchase of multi-function devices.
b. Recycled Content Products
i. Requirements for City Departments

1. Price preference: If fitness and quality of Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper are equal to that of non-recycled items, all departments and divisions of City shall purchase Recycled-Content Paper Products and RecycledContent Printing and Writing Paper that consists of at least thirty percent (30%), by fiber weight, postconsumer fiber, whenever the total cost is the same or a lesser total cost than non-recycled items or whenever the total cost is no more than 10 percent (10%) of the total cost for the non-recycled items.

2. All Paper Products and Printing and Writing Paper shall be eligible to be labeled with an unqualified recyclable label as defined.

3. Provide records to Zero Waste Sonoma of all Paper Products and Printing and Writing Paper purchases annually no later than June 30 of the purchase (both recycled-content and non-recycled content, if any is purchased) made by the City. Records shall include a copy of the invoice or other documentation of purchase, written certifications, vendor name, purchaser name, quantity purchased, date purchased, and recycled content (including products that contain none), and if non-Recycled-Content Paper Products and/or nonRecycled-Content Printing and Writing Paper are provided, include a description of why Recycled-Content Paper Products and/or Recycled-Content Printing and Writing Paper were not provided.

1. Requirements for Vendors
i. All vendors that provide Paper Products (including janitorial Paper Products) and Printing and Writing Paper to the City shall:
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ii. Provide Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper that consists of at least thirty percent (30%), by fiber weight, postconsumer fiber, if fitness and quality are equal to that of non-recycled item.
iii. Only provide Paper Products and Printing and Writing Papers that meet Federal Trade Commission Recyclability standard as defined in Title 16 Code of Federal Regulations Section 260.12 (2013). iv. Certify in writing, under penalty of perjury, the minimum percentage of postconsumer material in the Paper Products and Printing and Writing Paper offered or sold to the City. This certification requirement may be waived if the percentage of postconsumer material in the Paper Products, Printing and Writing Paper, or both can be verified by a product label, catalog, invoice, or a manufacturer or vendor internet website.
v. Certify in writing, under penalty of perjury, that the Paper Products and Printing and Writing Paper offered or sold to the City is eligible to be labeled with an unqualified recyclable label as defined vi. Provide records to Zero Waste Sonoma of all Paper Products and Printing and Writing Paper purchased from the vendor annually no later than June 30 of the purchase (both recycled-content and nonrecycled content, if any is purchased) made by the City. Records shall include a copy of the invoice or other documentation of purchase, written certifications as required in Section 4.2.A.3-4 for recycledcontent purchases, purchaser name, quantity purchased, date purchased, and recycled content (including products that contain none), and if non-Recycled-Content Paper Products and/or nonRecycled-Content Printing and Writing Paper are provided, include a description of why Recycled-Content Paper Products and/or Recycled-Content Printing and Writing Paper were not provided. vii. All vendors providing printing services to the City via a printing contract or written agreement, shall use Printing and Writing Paper that consists of at least thirty percent (30%), by fiber weight, postconsumer fiber.
c. Recovered Organic Waste Product Procurement

1. Procurement Target
i. City will annually procure for use or procure through Zero Waste Sonoma Recovered Organic Waste Products that meets or exceeds its Annual Recovered Organic Waste Product Procurement Target. ii. To be eligible to meet the Annual Recovered Organic Waste Product Procurement Target, products that may be procured include the following SB 1383 eligible Compost, SB 1383 eligible Mulch, 82 of 814
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Renewable Gas (in the form of transportation fuel, electricity, or heat), and Electricity Procured from Biomass Conversion.

2. Requirements for City Departments
i. Compost and SB 1383 Eligible Mulch procurement. Departments responsible for landscaping maintenance, renovation, or construction shall:
ii. Use Compost and SB 1383 Eligible Mulch produced from recovered Organic Waste, as defined in Section 2.B and 2.R of this Policy, for landscaping maintenance, renovation, or construction, as practicable, whenever available, and capable of meeting quality standards and criteria specified. SB 1383 Eligible Mulch used for land application must meet or exceed the physical contamination, maximum metal concentration and pathogen density standards specified in 14 CCR Section 17852(a)(24.5)(A)(1) through (3).
iii. When the City uses Compost and SB 1383 Eligible Mulch and the applications are subject to the City’s Water Efficient Landscaping Ordinance (WELO), pursuant to City Code Section 17.34, comply with the City’s WELO, City Code Section 17.34.
iv. For all mulch that is land applied, procure SB 1383 Eligible Mulch that meets or exceeds the physical contamination, maximum metal concentration, and pathogen density standards for land applications.

The mulch must also be produced at a permitted composting facility, transfer station, or landfill. The procured mulch cannot be from a chipping and grinding operation, as specified in 12 CCR Section 18993.1 (f)(4).
v. Keep records, including invoices or proof of Recovered Organic Waste Product procurement (either through purchase or acquisition), and submit records to Zero Waste Sonoma, annually no later than June 30. Records shall include general procurement records, including:

1. General description of how and where the product was used and applied, if applicable;

2. Source of product, including name, physical location, and contact information for each entity, operation, or facility from whom the Recovered Organic Waste Products were procured;

3. Type of product;

4. Quantity of each product; and,

5. Invoice or other record demonstrating purchase or
procurement.
vi. For Compost and SB 1383 Eligible Mulch provided to residents through giveaway events or other types of distribution methods, keep records of the Compost and SB 1383 Eligible Mulch provided to 83 of 814
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residents. Records shall be maintained and submitted to Zero Waste Sonoma annually no later than June 30.
vii. When Procurement of Recovered Organic Waste Products occurs through a Direct Service Provider, enter into a written contract or agreement or execute a purchase order with enforceable provisions that includes: (i) definitions and specifications for SB 1383 Eligible Mulch, Compost, Renewable Gas, and/or Electricity Procured from Biomass Conversion; and, (ii) an enforcement mechanism (e.g., termination, liquidated damages) in the event the Direct Service Provider is not compliant with the requirements.
d. Renewable Gas procurement (used for fuel for transportation, electricity, or heating applications). For Renewable Gas procurement, City shall:

1. Procure Renewable Gas made from recovered Organic Waste for transportation fuel, electricity, and heating applications to the degree that it is appropriate and available for the City and to help meet the Annual Recovered Organic Waste Product Procurement Target.

2. Keep records in the same manner for the amount of Renewable Gas procured and used by the City, including the general procurement record information specified in Section 3.2.A.3.a, and submit records to Zero Waste Sonoma on a quarterly schedule. The quarterly schedule shall be as follows: Renewable Gas records are to be provided to Zero Waste Sonoma annually no later than June 30. City shall additionally obtain the documentation and submit records specified.
e. Electricity Directly Procured from Biomass Conversion. This section applies to Electricity Procured directly from a Supplier that uses Biomass Conversion. In this case, the City shall:

1. Procure electricity from a biomass conversion facility that receives feedstock from a composting facility, biosolids, transfer/processing facility, a solid waste landfill, and/or receives feedstock from the generator or employees on behalf of the generator of the Organic Waste and to the degree that it is available and practicable for the Jurisdiction and to help meet the Annual Recovered Organic Waste Product Procurement Target, which requires compliance with specified.

2. Maintain records and conduct the following recordkeeping activities:

3. Keep records in the same manner indicated in this Policy for the amount of Electricity Procured from Biomass Conversion facilities, including the general procurement record information specified.

4. Receive written notification by an authorized representative of the biomass conversion facility certifying that biomass feedstock was received from a permitted solid waste facility.
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f. Provide these records to Zero Waste Sonoma annually no later than June 30. The City is not required to provide records from public utility provided electricity, such as PG&E or Sonoma Clean Power.
g. Requirements for Direct Service Providers

1. Direct Service Providers of landscaping maintenance, renovation, and construction shall:
i. Use Compost and SB 1383 Eligible Mulch, as practicable, produced from recovered Organic Waste, as defined in Section 2.B and 2.R of this Policy, for all landscaping renovations, construction, or maintenance performed for the City, whenever available, and capable of meeting quality standards and criteria specified. SB 1383 Eligible Mulch used for land application shall comply with 14 CCR, Division 7, Chapter 12, Article 12 and must meet or exceed the physical contamination, maximum metal concentration and pathogen density standards specified in 14 CCR Section 17852(a)(24.5)(A)(1) through (3).
ii. If the Direct Service Provider is subject to the City’s WELO pursuant to City Code Section 17.34, the Direct Service Provider must comply with this section.
iii. For all mulch that is land applied, procure SB 1383 Eligible Mulch that meets or exceeds the physical contamination, maximum metal concentration, and pathogen density standards for land applications specified.
iv. Keep and provide records of Procurement of Recovered Organic Waste Products (either through purchase or acquisition) to Recordkeeping Designee, upon completion of projects. Information to be provided shall include general description of how and where the product was used and if applicable, applied; source of product, including name, physical location, and contact information for each entity, operation, or facility from whom the Recovered Organic Waste Products were procured, type of product, quantity of each product; and invoice or other record demonstrating purchase or procurement.

2. Direct Service Provider of Organic Waste collection services shall:
i. Keep and provide records to the City including the following dates provided, source of product including name, physical location and contact information for each entity, operation or facility from whom the Recovered Organic Waste Products were procured, type of product, quantity provided; and invoice or other record or documentation demonstrating purchase, procurement, or transfer of material to giveaway location.

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i. Direct Service Providers transporting solid waste, organic materials, and/or recyclable materials shall procure a portion of their fuel as Renewable Gas if required to do so in Franchise Agreements, RFPs, or RFQs released by the City for such services or as required by permit, license, written agreement, or written contract with the City. ii. Departments releasing RFPs and RFQs for contractors that procure fuel in the course of their services to the City shall include a price preference to contractors that propose to use the amount or percentage of Renewable Gas specified in the RFP or RFQ to be eligible for said price preference. Such use, if it occurs, shall be documented in a written contract or agreement. Guidance: City shall specify the percentage of the price preference or may remove the percentage leaving sentence to read “…shall include a price preference to contractors….”
iii. If Renewable Gas made from recovered Organic Waste is used by Direct Service Providers, Direct Service Providers shall submit information on a schedule to be determined by City, but not less than annually to Zero Waste Sonoma.

4. Renewable Gas used by Direct Service Providers shall comply with criteria specified.
h. Energy Efficient and Water Saving Products

1. Purchase energy-efficient equipment with the most up-to-date energy efficiency functions. This includes, but is not limited to, high efficiency space heating systems and high efficiency space cooling equipment.

2. Replace inefficient interior lighting with energy-efficient equipment.

3. Replace inefficient exterior lighting, street lighting and traffic signal lights with energy-efficient equipment. Minimize exterior lighting where possible to avoid unnecessary lighting of architectural and landscape features while providing adequate illumination for safety and accessibility.

4. Purchase U.S. EPA Energy Star certified products when available. When Energy Star labels are not available, choose energy-efficient products that are in the upper 25% of energy efficiency as designated by the Federal Energy Management Program.

5. Purchase U.S. EPA WaterSense labeled water-saving products when available. This includes, but is not limited to, high-performance fixtures like toilets, low-flow faucets and aerators, and upgraded irrigation systems. i. Green Building Products and Practices for City Facilities

1. Consider Green Building practices for design, construction, and operation as described in the CalGreen, LEED, local requirements and other current Green Building best practices for all City building and renovations undertaken.
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2. In accordance with California Public Contract Code, Sec. 10409, purchase re-refined lubricating and industrial oil for use in its vehicles and other equipment, as long as it is certified by the American Petroleum Institute (API) as appropriate for use in such equipment. This section does not preclude the purchase of virgin-oil products for exclusive use in vehicles whose warranties expressly prohibit the use of products containing recycled oil.

3. When specifying asphalt, concrete, aggregate base or portland cement concrete for construction projects, use recycled, reusable or reground materials to the greatest degree possible.

4. Specify and purchase recycled content traffic control products, including signs, cones, parking stops, delineators, channelizers and barricades. j. Landscaping Products and Practices on City Facilities

1. Employ Russian River Friendly Landscaping or sustainable landscape management techniques for all landscape renovations, construction and maintenance, including workers and contractors providing landscaping services, including, but not limited to, integrated pest management, grass cycling, drip irrigation, computerized central irrigation linked with the local weather station, composting, and procurement and use of mulch and compost that give preference to those produced from regionally generated plant debris and/or food scrap programs.

2. Select plants to minimize waste by choosing species for purchase that are appropriate to the microclimate, species that can grow to their natural size in the space allotted them, and perennials rather than annuals for color. Native and drought-tolerant plants that require no or minimal watering once established are preferred.

3. Hardscapes and landscape structures constructed of recycled content materials are encouraged. Limit the amount of impervious surfaces in the landscape. Permeable substitutes, such as permeable asphalt or pavers, are encouraged for walkways, patios and driveways.
k. Household Hazardous Waste and Pollution Prevention Products and Practices at City Facilities

1. Manage pest problems through prevention and physical, mechanical and biological controls when contractors maintain buildings and landscapes.

Either adopt and implement an Organic Pest Management (OPM) policy and practices or adopt and implement an Integrated Pest Management (IPM) policy and practices using the least toxic pest control as a last resort.

Anticoagulant rodenticides shall never be used.

2. Use products with the lowest amount of volatile organic compounds (VOCs), highest recycled or reused content, low or no formaldehyde and no halogenated organic flame retardants when purchasing building maintenance materials such as paint, carpeting, adhesives, furniture and casework. 87 of 814
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3. Purchase or require janitorial contractors to supply industrial and institutional cleaning products that meet Green Seal, EPA Safer Choice, or UL/EcoLogo certification standards for environmental preferability and performance.

4. Purchase, or require janitorial contractors to supply, vacuum cleaners that meet the requirements of the Carpet and Rug Institute Green Label/Seal of Approval Program for soil removal, dust containment and carpet fiber retention for indoor air quality protection and performance cleaning standards. Other janitorial cleaning equipment should be capable of capturing fine particulates, removing sufficient moisture so as to dry within 24 hours, operate with a sound level less than 70dBA, and use highefficiency, low-emissions engines.

5. Purchase paper, paper products, and janitorial paper products that are unbleached or are processed without chlorine or chlorine derivatives.

6. Prohibit the purchase of products that use polyvinyl chloride (PVC) such as, but not limited to, furniture and flooring.

7. Prohibit the purchase of food service ware containing per- and polyfluoroalkyl substances (PFAS).

8. Purchase products and equipment with no lead or mercury whenever possible. For products that contain lead or mercury, preference should be given to those products with lower quantities of these metals and to vendors with established lead and mercury recovery programs. In addition, whenever lead- or mercury-containing products require disposal, products will be disposed of in the most environmentally safe manner possible. All fluorescent lamps and batteries will be recycled.

9. Purchase or specify personal computers, displays, imaging equipment and televisions that meet, at a minimum, all Electronic Product Environmental Assessment Tool (EPEAT) environmental criteria designated as “required” as contained in the IEEE 1680 family of Environmental Assessment Standards.

10. Purchase or specify office furniture that meets the California Bureau of Household Goods and Services (BHGS) standard Technical Bulletin 117- 2013 for testing upholstered furniture flammability without the use of flameretardant chemicals.

11. Purchase or specify commercial carpeting that meets NSF/ANSI 140 Standard for Sustainable Carpet Assessment and require old carpet that is removed be recycled.

12. Purchase or specify non-carpet floor coverings that meet NSF/ANSI 332 Standard for Resilient Flooring including vinyl, linoleum, and rubber flooring.

13. In conjunction with California State agency requirements, at least 50 percent of the quantity of paint used for architectural projects should contain reused 88 of 814
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or recycled paint with a recycled content consisting of at least 50 percent post-consumer paint. Reused paint can be acquired from the Sonoma HHW Facility by either visiting the reuse lockers or by pre-arranging remixed paint in 5-gallon containers in off-white, tan, light grey, or light green.

14. When replacing vehicles, consider less-polluting alternatives to diesel such as compressed natural gas, bio-based fuels, hybrids, electric batteries, and fuel cells, as available.
l. Fiber-only Products at City Facilities

1. Use paper, paper products and construction products made from non-wood, plant-based contents such as agricultural crops and residues.

2. Priority should be given to reusable food service ware, however, if singleuse food service ware is purchased, it is to be fiber only and BPI certified

3. Ask vendors to provide proof of compliance with ASTM standards for compostable, biodegradable and degradable plastic products upon request.

One acceptable proof of compliance for compostable plastic products will be certification by the Biodegradable Products Institute (BPI). m. Forest Conservation Products at City Facilities

1. To the greatest extent practicable, do not procure wood products such as lumber and paper that originate from forests harvested in an environmentally unsustainable manner. When possible, give preference to wood products that are certified to be sustainably harvested by a comprehensive, performancebased certification system. The certification system shall include independent third-party audits, with standards equivalent to, or stricter than, those of the Forest Stewardship Council certification.

2. Encourage the purchase or use of previously used or salvaged wood and wood products whenever practicable

5. Recordkeeping Responsibilities
B. The City Manager’s department will be the responsible department and will select an employee to act as the Recordkeeping Designee that will be responsible for organizing records pertaining to Procurement of Recovered Organic Waste Products and RecycledContent Paper Products and Recycled-Content Printing and Writing Paper. The Recordkeeping Designee shall communicate frequently with Zero Waste Sonoma to transfer all the required documentation for reporting to CalRecycle.

C. The Recordkeeping Designee will do the following to track Procurement of Recovered Organic Waste Products, Recycled-Content Paper Products, and Recycled-Content Printing and Writing Paper:
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verifications from all departments and/or divisions procuring Paper Products and Printing and Writing Paper (whether or not they contain recycled content) and/or from the vendors providing Printing and Writing Paper and Paper Products. These records must be kept as part of City’s documentation.
o Collect and collate copies of invoices or receipts or documentation evidencing procurement from all departments procuring Recovered Organic Waste Products and invoices or similar records from vendors/contractors/others procuring Recovered Organic Waste Products on behalf of the City to develop evidence of City meeting its Annual Recovered Organic Waste Product Procurement Target. These records must be kept as part of the City’s documentation.
o Collect, collate, and maintain documentation submitted by the City, Direct Service Providers, and/or vendors, including the information reported to the Recordkeeping Designee.
o Compile an annual report on the City’s direct procurement, and vendor/other procurement on behalf of the City, of Recovered Organic Waste Products, Recycled-Content Paper Products, and Recycled-Content Printing and Writing Paper, consistent with the recordkeeping requirements contained in 14 CCR Section 18993.2 for the Annual Recovered Organic Waste Product Procurement Target and 14 CCR Section 18993.4 for Recycled-Content Paper Products and RecycledContent Printing and Writing Paper procurement. This report shall be made available to Zero Waste Sonoma annually by June 30 for compiling the annual report to be submitted to CalRecycle (which will include a description of compliance on many other SB 1383 regulatory requirements).

6. Responsibilities
Nothing contained in this policy shall be construed as requiring a department, purchaser, or contractor to procure products that do not perform adequately for their intended use, exclude adequate competition, risk the health or safety of workers and citizens, or are not available at a reasonable price in a reasonable period of time
Nothing contained in this policy shall be construed as requiring the City, department, purchaser, or contractor to take any action that conflicts with local, state or federal requirements.

The City has made significant investments in developing a successful recycling system and recognizes that recycled content products are essential to the continuing viability of that recycling system and for the foundation of an environmentally sound production system. 90 of 814
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Therefore, to the greatest extent practicable, recycled content shall be included in products that also meet other specifications, such as chlorine free or biobased.

7. Implementation
The City Manager shall implement this policy in coordination with other appropriate personnel.

Include businesses certified by the Bay Area Green Business Program in purchasing requests for products and services.

Encourage vendors, contractors, and grantees to comply with applicable sections of this policy for products and services provided.

8. Program Evaluation
The City Manager shall periodically evaluate the success of this policy’s implementation

9. Exceptions
Every effort will be made to adhere to the Environmentally Preferable Purchasing Policy to the extent possible, recognizing that certain procurement decisions such as for cleaning products, janitorial equipment, and electronics may be outside of the City’s authority.

10.Effective Dates
This policy shall be reviewed with the City Financial Policies on a regular basis by the City Manager and Administrative Services Director and updated as necessary through approval by the City Council to ensure its effectiveness in identifying and addressing budget shortfalls.
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Section C.3
Capital Assets Policies

1. General Information ...................................................................................................................................54

2. Overview......................................................................................................................................................55

3. Useful Life Ranges.......................................................................................................................................56

4. Acquisition of Capital Assets.......................................................................................................................57

5. Additional Capital Asset Issues...................................................................................................................61 92 of 814
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1. General Information
The City of Cotati's policies for the acquisition. valuation, and disposition of capital assets are contained within this document. These policies are designed to aid City departments, offices, and institutions under the control of the City Council by clarifying the City's definition of capital assets.

Relevant State Government Codes and Accounting Standards are incorporated within the policies.

Proper capital asset accounting provides the City with the data necessary to:
• Prepare financial reports.
• Safeguard sizable investments.
• Identify custodial responsibility.
• Assist with risk management/insurance activities.
• Formulate future asset acquisition and retirement policies. • Recover costs from Federal and State programs or fee reimbursement programs.

To set the highest possible standard, we will continue to compare the asset policy as described herein against the recommended Government Finance Officers Association (GFOA) Best Practices Guide on Capital Asset Procedures. Current recommendations included within the GFOA guide that are included herein include the following:
• Potentially capitalizable items should only be capitalized only if they have an estimated useful life of at least two years following the date of acquisition; • Capitalization thresholds are best applied to individual items rather than to groups of similar items (e.g., desks and tables), unless the effect of doing so would be to eliminate a significant portion of total capital assets (e.g. books of a library district):
• In no case should a government establish a capitalization threshold of less than $5,000 for any individual item;
• In establishing capitalization thresholds, governments that are recipients of federal awards should be aware of federal requirements that prevent the use of capitalization thresholds more than certain specified maximum amounts (i.e., currently $5,000) for purposes of federal reimbursement; and
• Governments should exercise control over potentially capitalizable items that fall under the operative capitalization threshold.

Administration Services Responsibility
It is the responsibility of the Administrative Services Department to ensure capital assets a1:e properly accounted for by fund and asset category on the Capital Asset List.

Departmental Responsibility
Departments are responsible for protecting and controlling the use of City assets assigned to their department. Each department shall appoint a representative to work with the Administrative Services Department to maintain accurate and up-to-date capital asset accounting records. This 93 of 814
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representative will be required to validate their department’s fixed asset listing for its accuracy and completeness on a regular basis.

In addition, an annual year-end inventory is required to be completed by July 10 for each fiscal year ending June 30. To facilitate the fulfillment of the requirements of this section and in order to prepare accurate financial reports, Departments are also responsible for safeguarding assets that are not defined as capital assets by the Policy Guidelines.

2. Overview
Capital assets are broadly defined as financial resources that are tangible or intangible in nature and have a useful life greater than two (2) years. Examples of capital asset categories are Land, Land Improvements, Buildings, Building Improvements, Infrastructure, and Equipment. The Capital Asset Policy defines capital assets under each classification, addresses useful life ranges, sets minimum capitalization thresholds, and gives examples of costs to include in the value of the capital asset. Additionally, the policy discusses the treatment of unique items such as Computer Software, Capital Leases, Self-Constructed Assets, Works of Art, Donated Assets, Construction in Progress, Costs incurred Subsequent to Acquisition, and Transfers of Assets between Funds.

Capital assets are to be accounted for at historical cost, or if cost is not determinable, at estimated fair market value at the time acquired or placed into service. Generally, cost includes all expenses associated with the acquisition, construction, and installation of a capital asset. If appropriate, salvage/residual values should be determined prior to recording an asset.

If the funding source of an asset is a grant, or the asset is acquired by gift or donation, the source or donor should be identified. If multiple funding sources apply, all sources should be identified.

For historical assets, if the funding source cannot be determined, the asset shall be recorded under the general fund.

A. Summary of Capitalization Thresholds
Although the service life of certain buildings, improvements, and equipment, may extend beyond two (2) years, the City has established mini mum capitalization thresholds for administrative purposes. All purchases below the applicable class threshold are to be made in the current period.

Class Capitalization Threshold
Land $0.00
Land Improvements $100,000
Buildings $100,000
Building Improvements $5,000
Infrastructure $25,000
Equipment Furniture & Vehicles $5,000
Intangible Assets $5,000
Capital Leases $25,000
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Leasehold Improvements $25,000
Works of Art/Historical Treasures $5,000
Construction in Progress for Year End Reporting Projects expected to exceed $100,000 at completion
The classes above are further defined in Section 4.

3. Useful Life Ranges
Useful lives are determined by suggested useful life tables and professional judgment , since similar capital assets may have different useful lives depending on how and where they are used. Questions about the useful life of a specific asset should be decided upon jointly by department personnel and the Administration Services Department. Items that have useful lives of less than two (2) years are not to be capitalized.

Overview of Standard Useful Lives by Asset Type
Assets Years
Buildings and improvements 30
Public Domain Infrastructure 50
System Infrastructure 10-40
Vehicles & Equipment 5-10
Other Assets 2+
Budgetary Control
Annually, the City Council considers capital asset acquisitions as part of the budget process.

Please refer to the budgetary policy for further understanding of the procedures performed.

Capital Accounts – Governmental Activities
Land Vehicles
Construction In Progress Improvements
Buildings Other Assets
Infrastructure Intangibles
Machinery and Equipment Capital Leases
Capital Accounts – Business-Type Activities
Land Pipelines and Collection
Construction In Progress Systems
Water wells Machinery and Equipment
Reservoirs Other Assets
Buildings and Improvements Intangibles
Capital Leases
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4. Acquisition of Capital Assets
Definitions:

Land and Land Improvements
Land includes all investments in real property other than structure and land improvements Land Improvements are non-building assets that enhance the quality or facilitate the use of land.

Examples of depreciable land improvements include parking lots, driveways, sidewalks, retaining walls, fencing, outdoor lighting, landscaping, irrigation systems, recreation areas, athletic fields and courts, and fountains. Land improvements such as fill, grading, and excavation that provide permanent benefits and incur limited deterioration with use or the passage of time are to be classified with land as nondepreciable.

Capitalization: All Land is to be capitalized. Land Improvements valued at or over the threshold defined in Table 3A above will be capitalized.

Valuation: The cost of land includes all expenditures in connection with acquisition and preparation for use such as, but not limited to: Purchase Price Appraisal and negotiation fees Title search and filing/recording fees Relocation costs, costs of consents Clearing, filling, and grading land for use, condemnation costs, demolishing or removing structures, surveying fees, hazardous waste clean-up. (Receipts from the sales of salvage should be credited against the land cost.)
In the case of land and buildings acquired as a single parcel, the value of the land and buildings should be determined individually and recorded separately into their respective capital accounts.

Construction In Progress
Construction in Progress includes new construction or improvements to land, buildings, or infrastructure that have not been physically completed or have not had all project costs processed by fiscal year-end and the final cost of which is expected to exceed the threshold defined in Table 3A above. Construction in Progress expenditures shall be reported to the Administration Services at the end of each fiscal year as the sum of the expenditures to date by project, to be classified under Construction in Progress account.

Infrastructure
Infrastructure is categorized as comm unity service assets that are long-Jived, generally stationary in nature, and normally preserved for a significantly greater number of years than most capital assets. Examples are pavements, curbs, gutters, and sidewalks associated with roadways, bridges, sewer systems, water distribution systems, and water drainage systems. 96 of 814
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Expansions and Improvements to infrastructure are those capital outlays that increase the asset's capacity or level of service, such as adding lanes to a road.

Capitalization: Infrastructure and infrastructure improvements valued at or over the threshold defined in Table 3A above will be capitalized. Refer to the “Treatment of Costs Subsequent to Acquisition" section of this document for more specific information.

Valuation: The cost of infrastructure includes the purchase price, contract prices, internal costs (see Self-Constructed Assets paragraph), and any other expenditures necessary to put the infrastructure into its intended state of operation. Refer to the Buildings paragraph for examples of costs to include.

Land purchased for infrastructure projects shall be capitalized into the Land account.

Preservation costs that significantly extend the useful life of an asset beyond its original estimated useful life, but do not increase the capacity of the asset, are generally capitalized.

Examples are seismic retrofitting bridges and reconstructing, recycling, or overlaying pavement.

Maintenance costs allow an infrastructure asset to continue to operate at its intended level of service during its originally established useful life and are not to be capitalized.

Building and Building Improvements
Buildings are structures that are physical property of a permanent nature that enclose people, equipment, services, or functions. Buildings may include major high-cost components such as boilers, elevators, HVAC systems, and roofs. If practical, these components should be recorded separately in the capital asset system to simplify future replacement transactions and because their useful lives can differ from buildings.

Building Improvements are additions or improvements to buildings that increase the value or extend the useful life of a building. Refer to "Treatment of Costs Subsequent to Acquisition" section of this document for more specific information. Examples include replacing major building components, structural additions to a building, major energy conservation projects, installation of upgraded plumbing or electrical systems, and major renovations of exterior structural deterioration.

Capitalization: Buildings and Building Improvements valued at or over the threshold defined in Table 3A above will be capitalized.

Valuation: The cost of Buildings and Building Improvements includes all expenditures in connection with acquisition or construction, such as:

Purchase price or construction costs, fixtures attached to the structure, filing and other closing costs, inspections and tests, architects' fees, payment of damages, cost of permits and licenses, accident or injury costs, insurance during construction. 97 of 814
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The cost shall be reduced for Sale of salvage from materials charged against the construction, discounts, allowances, and rebates secured, amount is recovered through surrender of liability and casualty insurance.

For Proprietary Funds only, the actual or imputed interest costs associated with the construction, period shall be capitalized in accordance with Financial Accounting Standards Board (PASB), Statement No. 34, FASB Statement No. 62, and supplemental updates.

Equipment
Equipment includes physical moveable personal property such as machines, tools, furniture, vehicles, aircraft, mobile home/office trailers, and computer servers. Equipment does not include major systems integrated into a building or structure such as elevators, boilers, roofs, or HVAC. Software capital assets are managed within the Equipment capital account (see Computer Software paragraph).

Capitalization : Individual units valued at or over the threshold defined in Table 3A above .

The group method for capitalization may apply in limited circumstances for equipment.

Grouping includes a number of different units purchased at the same time whose defined purpose is to work in conjunction with one another, their independent operation is not feasible, and replacement of which is intended as a whole. Purchase of multiple identical units (e.g. 4 printers @ $1,850 ea.) rarely represents valid grouping. Examples of valid grouping are:
• Computer systems comprised of hardware and software components designed to work exclusively with one another
• Unique multi-device systems for communications or vehicles Valuation: The cost of equipment includes all costs necessary to acquire and place the equipment into service, such as:

Purchase or construction price, less discounts, Installation Costs, Freight or other carriage charges Initial operational training, Sale, use, or transportation taxes The cost of new equipment should not be reduced by the value of trade-ins. Trade-ins shall be retired from the capital asset and financial systems, and any resultant gain or loss for the asset being traded-in should be recognized on its disposition for Proprietary Funds.

Intangible Assets
Intangible assets are financial assets that lack physical substance. Common examples of intangible assets are easements, rights-of-way, and computer software.

Software Capitalization: An individual software application or license purchased for City use shall be capitalized if it meets the criteria for capitalization at Section 2. Software Valuation: Software purchased as a component of a system designed to work exclusively with specific hardware shall be capitalized with the hardware using the group method as noted in the equipment paragraph above. Computer software developed or obtained for 98 of 814
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internal use shall follow the capital asset guidance provided i n the AICPA SOP 98-1.

Vendor modifications, such as patches and version upgrades, used to keep software in a usable state as opposed to adding significant new capabilities, should be charged as maintenance expense.

Capital Leases
Capital lease is a lease that transfers substantially all the benefits and risks of ownership of property to the City at the end of the lease term. If the cost of the property exceeds its class's capitalization threshold and the lease meets one of the four requirements listed below, as defined by Financial Accounting Standards Board (FASB) Statement 13, then it shall be considered a capital lease and accounted for as a capital asset:

1. The lease transfers ownership of the property to the City by the end of the lease term.

2. The lease contains a bargain purchase option.

3. The lease term equals 75% or more of the estimated economic useful life of the leased property.

4. The present value of the minimum lease payments exceeds 90% or more of the fair market value of the lease property at the date of the lease agreement. (The last two criteria do not apply when the asset is already in the last quarter of its economic life, which includes the asset's economic life prior to the lease.) For Proprietary Funds only, the actual or imputed interest costs associated with capital leases shall also be capitalized in accordance with FASB Statement No. 34, FASB Statement No.62, and supplement updates.

Leasehold Improvements
Leasehold Improvements are improvements to buildings or structures that the City leases to be used during the term of that lease. Leasehold improvements are permanent in nature in that they involve physical modifications to a leased property. As such, moveable equipment or office furniture that is not attached to the leased proper ty is not considered a leasehold improvement.

Leasehold improvements do not have a residual value as they revert to the lessor a t the expiration of the lease.

Leasehold improvements are capitalized by the City and are amortized over the shorter of (1) the remaining lease term, or (2) the useful life of the improvement. Improvements made in lieu of rent shall not be capitalized. If the lease contains an option to renew and the likelihood of renewal is uncertain, the leasehold improvement should be written off over the life of the initial lease term or useful life of the improvement. whichever is shorter. 99 of 814
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Eminent Domain
Eminent Domain is the acquisition of private property for public use. The value of a capital asset obtained through eminent domain shall include all direct costs included in reaching a settlement with the seller.

Works of Art and Historical Treasures
Works of Art and City Historical Treasures are defined as collections of works of art, historical treasures, and similar assets as one or more items which are considered inexhaustible and held for public exhibition, educational purposes, or research in enhancement of public service instead of financial gain.

These types of assets shall be capitalized and recorded at historical cost and are not to be depreciated. Items that require major renovations exceeding the thresholds established in this policy should be depreciated.

Donated Assets
Donated Assets to the City are to be recorded at their fair market value as of the date of acceptance by the City Council pl us any ancillary costs necessary to place those assets into service. The department receiving the donation is responsible for obtaining and providing written information required to create a Capital Asset record. Surplus property purchased at nominal prices far below actual value are in part a donation and shall be valued at the estimated fair market value at the time of acquisition.

5. Additional Capital Asset Issues
Treatment of Costs Subsequent to Acquisition
Major expenditures that increase future benefits from an existing capital asset beyond its previously assessed standard of performance shall be capitalized. After a capital asset has been placed into service, subsequent expenditures are capitalized if they meet the asset's class threshold and:

1. Extend the estimated life or increase the value of the asset as per established thresholds defined in this document, or

2. increase the future service potential, (capacity, or efficiency) of the asset, or

3. Are for a new major fixture of a building (e.g. elevator, boiler, HVAC, roof), or

4. For depreciated roads, the 'base' has been impacted by a recycle, reconstruction, overlay or other maintenance treatments that extend the life of the asset as per established threshold defined in Table 3A under Infrastructure .

The determination as to whether expenditures meet any of these factors shall be made by an evaluation of engineering design, physical condition, cost, and other relevant factors.

Alteration or remodeling of buildings, costs to change the physical structure or arrangement of capital assets that do not extend the building's useful life shall not be capitalized.

Repairs and Maintenance
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Repairs and Maintenance are defined as expenditures, which neither materially add to the value of property nor prolong its life, but merely maintain its original level of service or condition. Maintenance costs are not to be capitalized.

Depreciation
Depreciation is the process of allocating the cost of depreciable capital assets over a period of time, rather than incurring the entire cost as an expense in the year of acquisition. This process recognizes an asset's periodic cost of use and declining usefulness over time. Land, certain land improvements, and certain works of art and historical treasures are inexhaustible and are therefore not depreciated.

As a matter of policy, the City has elected to adopt the straight-line method of depreciation, unless there is dear evidence indicating that the expected consumption of an asset will significantly change as the asset ages.

The calculation of depreciation expense for assets with a straight-line life is as follows:

Asset Cost – Residual Value = Annual Depreciation Expense Estimated Useful Life in Years Residual value is the amount that can be anticipated to be recovered when the asset is no longer useful for its intended purpose. Useful life should approximate the time an asset will provide service to the City.

Capital assets that become fully depreciated and are still in use must remain in the financial capital accounts and identified within a capital asset system until they are disposed of.

Asset Dispositions, Transfers, and Sales
Surplus items are those that are no longer required by the asset's custodial department.

These assets may be traded in for new assets, transferred to other departments, or transferred to Public Works for classification as surplus and for subsequent redistribution to other departments, sale, or disposal. Any sale, transfer, donation, disposal, or dismantling of a capital asset must receive approval from the City Manager.

All transfers and sales require an update in the capital asset system. This includes transfers and sales between funds, transfers between departments, and site location changes. In addition to a capital asset system update, a financial transaction is necessary for the transfer or sale between funds.

A transfer would remove the asset from the giving fund and record it in the receiving fund at the original acquisition cost with depreciation incurred to date. 101 of 814
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A sale would remove the asset from the giving fund and record it in the receiving fund at the agreed upon amount.

Stolen or missing assets must be reported to the Administration Services Department immediately.

Controlled Capital-Type Assets
Capital-Type Assets are those assets that individually do not meet the capitalization threshold as discussed above, however they meet one of the requirements below and as such require special attention and management oversight.

1. Items that require special attention to ensure legal compliance. Legal or contractual provisions may require a higher than ordinary level of accountability over certain capitaltype items (e.g., items acquired through grant contracts);

2. Items that require special attention to protect public safety and avoid potential liability.

Some capital-type items by their very nature pose a risk to public safety and could be the source of potential liability (e.g., police weapons);

3. Items that require special attention to compensate for a heightened risk of theft (walk away items). Some capital-type items are both easily transportable and readily marketable or easily diverted to personal use (e.g., sound equipment, tablet or laptop computers, Cell Phones, etc.).

Each department is required to maintain their own listing of their specific types of Capital Type Assets and maintain custody over the assets. The individuals responsible for controlled capital-type items for each department should prepare and maintain a complete list of those items each year within the department. At the close of each fiscal year, every individual assigned responsibility for controlled capital-type items should prepare a report (to be maintained within the department) that provides a complete list of those items. along with an explanation of changes from the previous year.

Departments shall provide each year by June 30 an updated list of controlled Capital Type Assets to Administrative Services. The Administrative Services Department should periodically verify the data on controlled capital-type items in each department. No less than once every five years on a rotating basis (more frequently for particularly sensitive items), Administrative Services should verify the reliability and completeness of the data on file in each department concerning controlled capital-type items.
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Section C.4
Grant Management Policy

1. Overview ............................................................................................................................................................ 65

2. Purpose............................................................................................................................................................... 65

3. Defining A Grant............................................................................................................................................... 65

4. General Information......................................................................................................................................... 66

5. Pre-Application Evaluation.............................................................................................................................. 66

6. Grant Cycle........................................................................................................................................................ 67

7. Recordkeeping and Reporting ......................................................................................................................... 68

8. Pass-Through Grants........................................................................................................................................ 68

9. Roles and Responsibilities ................................................................................................................................ 69 103 of 814
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1. Overview
The City of Cotati continues its practice of taking advantage of granting opportunities to support operations, programs, and capital improvement projects. Major sources of grant awards are federal, state, local agencies, and private organizations. A grant’s scope is determined by the policy goals of the grantor, and the grantee is obligated to provide deliverables based on the terms and conditions of the grant. Grants differ based on the funding source, scope of work, requirements, and timelines.

This policy provides a general guidance to managing grants which may not be pertinent to manage all grants awarded to the City.

2. Purpose
The purpose of the Grants Management Policy is to develop, implement, and maintain meaningful grant oversight and coordination for the City Council thereby increasing grant-related revenue, limiting the City Council’s exposure to grant-related legal liability, and improving the efficiency and impact of programs and services funded through grants.

3. Defining A Grant
Grants are externally-funded activities in which a formal written agreement, i.e., a grant, contract, or cooperative agreement, is entered into by the City and a granting agency. The following conditions characterize a grant and distinguish grants from donations and contributions:

Statement of Work/Application
Grants are typically awarded in response to a request, application, detailed statement of work and commitment to a specified project plan. The statement of work and budget are usually described in a written proposal submitted by the City to the granting agency for competitive review.

Detailed Financial Accountability
The grant agreement generally defines the level of financial accountability associated with a grant funded project. While not all of the following conditions are necessary to define a grant project, they are collectively indicative of the increased level of financial accountability associated with such projects:
• a line-item budget related to the project plan. The terms of the agreement may specify allowable or unallowable costs, requirements for prior approvals for particular expenditures, etc.
• a specified period of performance, typically defined with "start" and "end" dates.
• a requirement to return any unexpended advance funds at the end of that period.
• requires draw down requests to receive funds related to allowable expenditures under the grant agreement.
• regular financial reporting and audit, including, for federal and state awards, or accountability under the terms of the Uniform Guidance Single Audit. • grant agreements may also include terms and conditions for the disposition of tangible or intangible property acquired or constructed using grant funds. 104 of 814
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4. General Information
The City shall only seek grants when sufficient staff resources are available to effectively administer the program in compliance with grant requirements and successfully perform the grant work scope and provide any necessary matching requirements. The City may pursue funding from federal, state, and other sources, for expenses consistent with identified City goals and priorities.

All grants and other federal and state funds shall be managed to comply with the regulations and requirements of the granting agency. No grant shall be applied for or accepted without first being reviewed and approved by the City Manager or Designee.

5. Pre-Application Evaluation
City staff will continuously identify grants in all functional areas in general but specifically in funding capital projects. City staff must review grant requirements to validate the feasibility of undertaking the responsibility of grant deliverables and the alignment of the scope with the City’s and the community’s mission before applying, accepting, and committing to any grant opportunity.

Short Term Revenues vs. Long Term Costs
Special attention must be paid to evaluate if a grant opportunity is viable to the City and that one time or short-term grant revenues are not adding to the fiscal burden of unprecedented permanent or long-term expenditures. For example, a grant funded project may require the City to hire additional staff, in this situation it is necessary to review the grant to assure that the City is clear about the requirement of additional staff, temporary or permanent. If permanent staff is required, the long-term labor cost must be evaluated and analyzed before applying for the grant. The viability consideration is not limited to labor cost; it must be evaluated for all types of costs such as ongoing operations and maintenance.

Required Resources
A grant opportunity must be evaluated based on required resources versus available resources in the City before moving forward with the application process. This applies to resources such as: staff support, local funding match, or in-kind match. i. If a funding match is required by a grantor, the City Manager must approve the funding source in writing before submitting the grant application.

Indirect Costs
During the grant application process the City staff shall include the cost of administering the grant program when possible and wherever it is allowable by the grantor in the grant terms and conditions. For example, some grantors may have a fixed percentage for indirect costs that can be reimbursed.
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Cost Benefits Analysis
The overall cost benefit analysis is required to confirm that the grant is in alignment with the City’s general mission and strategic goals and is in the best interest of the residents of the City.

Public Private Partnership
In a situation where the City is working in partnership with another organization (local or public) the solicitation process must be transparent. City Council approval is required prior to submitting the grant application. If the pre-approval step is missed in such a partnership, there must be an explanation provided to the City Council upon the grant acceptance.

6. Grant Cycle
A.) Grant Application
Department staff are required to follow the grantors’ determined application processes.

Department staff seeking and administering the grant are responsible for compiling the grant application, and the Administrative Services Department shall provide certain information that is required to be submitted with the proposal.
i. If a local funding match is required for a grant, obtain the City Manager approval for the funding source before submitting the grant application. ii. The Administrative Services Department must be notified upon submission of a grant application within ten (10) business days.

B.) Grant Award
Grant award is the notification that is provided to the applicant upon the acceptance of the grant application. The notification must be in writing and/or it can also be in a grant agreement format.

C.) Council Approval
Each grant must be formally accepted by the City Council before moving to the execution phase. Department staff are responsible for preparing the City Council agenda item. The recommended action must include the words “accept and appropriate” in the agenda report to ensure budget appropriation for execution. Some grants may require City Council authorization before a grant application is submitted and, in that case, recommended action may include the language about the acceptance and appropriation of funds upon grant award.

D.) Grant Set-Up
Department staff are responsible for submitting grant documents to the Finance department within ten (10) business days to be set up in the City’s financial system, which may require creating special account strings to fully track the related activity. Required documents are:
i. Grant Award Letter/Agreement
ii. Approved Council Minutes, and/or Resolutions
iii. Appropriate Grant Funds
E.) Grant Execution
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It is the Department staff’s responsibility to deliver agreed upon deliverables, generate status reports, exercise careful examination of the costs being incurred, and file for reimbursements from the grantor in a timely fashion. The Finance department assists as needed in terms of setting up account strings, budgets, and preparing monthly reports etc.

Department staff shall maintain a comprehensive project file for the records and send all documents to Administrative Services Department for record keeping in the financial system.

F.) Reimbursements/Reporting
Department staff shall submit reimbursements and other periodic reports in a timely manner depending upon the grantor specified timeline. Many grants are on a reimbursement basis.

Therefore, the City covers the expenditures from the cash reserve before the grant funds are reimbursed, which limits the City’s ability to fund other operations and city services. It is crucial that the reimbursement requests are submitted to the grantor in a timely manner to alleviate undue burden from the City’s cash reserves. Department staff shall communicate and forward documentation for reimbursement requests to the Administrative Services Department at the time of submission to the grantor.

G.) Close-Out
Department staff are responsible for following the specified close out procedure provided by the grantor. Grant funded project files and records are required to be maintained pre the City Retention policy or the Grant Terms whichever is longer. Final close-out reports shall be sent to the Administrative Services Department within ten (10) business days.

7. Recordkeeping and Reporting
Department staff must maintain all documents (purchasing, bidding, and communications with the grantor) even after the grant completion. Department staff shall also forward all documents to the Administrative Services Department for saving and retention in the financial system to ensure citywide availability as needed. This is primarily for audit purposes.

Appropriate audit facilitator is determined depending on the nature of the audit including the Annual Single Audit. The Finance department facilitates all financial audits and may reach out to Department staff for assistance if warranted.

8. Pass-Through Grants
Pass through grants are those grants that are received by the City to transfer or spend on behalf of a beneficiary recipient. The City may enter into a project development and administration agreement with a third party to administer the grant, however the City remains responsible for ensuring compliance with the terms of the grant. Any third-party administrator assigned to manage a pass-through grant shall be responsible for complying with the requirements outlined in this Chapter. Pass-through grants shall be processed and managed in the same manner as any other City grant covered under this policy. Pass-through grants shall be accounted for in Compliance with GASB Statement No. 24 Accounting and Financial Reporting for Certain Grants and Other Financial Assistance.
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9. Roles and Responsibilities
City Council
• Provides policy guidance to City staff to seek grants in certain categories and authorizes staff to apply for grants, and upon grant award, accepts and appropriates funds.

City Manager’s Office
• Executes grant agreements and directs/assigns staff to seek and execute grants.

Finance Department
• Provides guidance to Department staff about tracking costs appropriately. • Sets up account strings in the financial system.
• Assists in day-to-day financial operations.
• Generates periodic reports stating sources and uses of the grant funds. • Maintains project master in the financial system.
• Maintains the City’s general information regarding tax ID and tax-exempt status letter. • Maintains the City’s accounts with federal grant portals such as www.grant.gov , www.sam.gov , etc.
• Maintains the City’s CAGE code and Unique Identifier Number, formerly known as DUNS number.
• Generates Schedule of Expenditures of Federal Awards (SEFA) annually after fiscal close.
• Facilitates financial audits.
• Provides training on grant management and financial systems to improve the grants program.

Department Staff
• Applies for the grant.
• Takes awarded grant to the City Council for approval (Council action must read “Accept and appropriate funds…”).
• Prepares budget amendments based on the City Council approval. • Executes the grant. v. Delivers the grant deliverables under the terms and conditions. • Monitors costs and makes sure the costs are allowable and within the grant award. • Communicates and reports to the grantor/s regarding status, periodic, and close out reports, and any other communication regarding modifications to the scope or changes in timeline.
• Follows the procurement and other City policies in the process of issuing contracts. • Maintains complete project file during and after beyond project completion. • Assists finance/audit coordinator as needed during audit/s 108 of 814
Section D
Investment Management Policies

1. Policy and Scope...............................................................................................................................................71

2. Prudence ...........................................................................................................................................................71

3. Objectives..........................................................................................................................................................72

4. Delegation of Authority ...................................................................................................................................72

5. Ethics and Conflicts of Interest.......................................................................................................................72

6. Authorized Dealers and Institutions...............................................................................................................73

7. Authorized and Suitable Investments ............................................................................................................73

8. Review of Investment Portfolio.......................................................................................................................75

9. Investment Pools / Money Market Funds ......................................................................................................75

10. Collateralization ..........................................................................................................................................75

11. Safekeeping and Custody............................................................................................................................76

12. Diversification..............................................................................................................................................76

13. Maximum Maturities..................................................................................................................................76

14. Internal Controls.........................................................................................................................................76

15. Performance Standards..............................................................................................................................77

16. Reporting .....................................................................................................................................................77

17. Investment Policy Adoption .......................................................................................................................78

18. . Glossary of Terms in this Policy...............................................................................................................78

19. . Glossary of General Investment Terms...................................................................................................80 109 of 814
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1. Policy and Scope
Policy
The City of Cotati shall invest public funds in such a manner as to comply with state and local laws; ensure prudent money management; provide for daily cash flow requirements; and meet the objectives of the Policy, in priority order of Safety, Liquidity and Return on investment. In accordance with the Municipal Code of the City of Cotati and under authority granted by the City Council, the City Administrative Services Director, in coordination with the City Manager, is responsible for investing the surplus cash in the City pooled funds.

Scope
The investment policy applies to all investment activities and financial assets of the City of Cotati as accounted for in the Annual Comprehensive Financial Report (ACFR). This policy is applicable, but not limited to, all funds listed below:
• General Fund
• Capital Funds
• Enterprise Funds
• Other Special Revenue Funds, Debt Service Funds, Internal Service Funds • Any new fund created by the City Council unless specifically exempted.

2. . Prudence
The standard of prudence to be used by the designated representative shall be the “prudent investor” standard and shall be applied in the context of managing the overall portfolio. Persons authorized to make investment decisions on behalf of local agencies investing public funds are trustees and therefore fiduciaries subject to the prudent investor standard which states, “When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency”.

The City Manager, Administrative Services Director, and other individuals assigned to manage the investment portfolio, acting within the intent and scope of the investment policy and other written procedures, and exercising due diligence, shall be relieved of personal responsibility and liability for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely manner and appropriate action is taken to control adverse developments.
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3. . Objectives
The City’s primary investment objectives, in order of priority, shall be:

1. Safety: Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The City shall seek to preserve principal by mitigating the two types of risk: credit risk and market risk.
a. Credit risk, defined as the risk of loss due to failure of the issuer of a security, shall be mitigated by investing in issuers that carry the direct or implied backing of the U.S. Government (including, but not limited to, the U.S. Treasury, U.S. Government Agencies, and federally insured banks). The portfolio will be diversified so that the failure of any one issuer does not unduly harm the City’s capital base and cash flow. b. Market risk, (aka “interest rate risk”) defined as market value fluctuations due to overall changes in the general level of interest rates shall be mitigated by limiting the maximum maturity of any one security to five years, structuring the portfolio based on historic and current cash flow analysis eliminating the need to sell securities prior to maturity and avoiding the purchase of long-term securities for the sole purpose of short-term speculation. Moreover, it is the City’s full intent, at the time of purchase, to hold all investments until maturity to ensure the return of all invested principal dollars. Limited exceptions will be granted for security swaps that would improve the portfolio’s yield and/or credit quality.

2. Liquidity: The City’s investment portfolio will remain sufficiently liquid to enable the City of Cotati to meet all operating requirements, which might be reasonably anticipated.

3. Return on Investments: The City’s investment portfolio shall have the objective of attaining a comparative performance measurement or an acceptable rate of return throughout budgetary and economic cycles. These measurements should be commensurate with the City’s investment risk constraints identified in this Investment Policy and the cash flow characteristics of the portfolio.

4. Social and Political Considerations: In addition to State requirements, the City recognizes that it has an equal obligation to be aware of the social and political impacts of its investments, and subsequently to act responsibly in making its financial decisions.

4. . Delegation of Authority
The Municipal Code of the City of Cotati and the authority granted by City Council assign the responsibility of investing unexpended cash to the City Manager and Administrative Services Director. The Administrative Services Director, or their designee, shall have the daily management responsibility of the investment program and shall establish procedures for the operation consistent with this investment policy.

5. Ethics and Conflicts of Interest
Officers and employees involved in the investment process shall refrain from personal business activity that conflicts with proper execution of the investment program or impairs their ability to make impartial investment decisions. Additionally, the Administrative Services Director and their designee are required to annually file applicable financial disclosures as required by the Fair 111 of 814
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Political Practices Commission (FPPC). Furthermore, Investment officials must refrain from undertaking personal investment transactions with the same individual(s) employed by the financial institution with whom business is conducted on behalf of the City.

6. Authorized Dealers and Institutions
The Administrative Services Director will maintain a list of approved financial institutions authorized to provide investment services to the public agency in the State of California. These may include “primary” dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3-1 (uniform net capital rule). Best practices include the following: 1) A determination that all approved broker/dealer firms, and individuals covering the public agency, are reputable and trustworthy; 2) the broker/dealer firms should have the ability to meet all their financial obligations in dealing with the Public Agency; 3) the firms, and individuals covering the agency, should be knowledgeable and experienced in Public Agency investing and the investment products involved; 4) no public deposit shall be made except in a qualified public depository as established by the established state laws; 5) all financial institutions and broker/dealers who desire to conduct investment transactions with the public agency may supply the Administrative Services Director with audited financial statements, proof of FINRA certification, trading resolution, proof of State of California registration, a completed broker/dealer questionnaire, certification of having read the Public Agency’s investment policy and depository contracts.

The Administrative Services Director may conduct an annual review of the financial condition and registrations of qualified dealers & institutions.

7. Authorized and Suitable Investments
Investment of City funds is governed by the California Government Code Sections 53600 et seq.

Within the context of the limitations, the following investments are authorized, as further limited herein:
a) United States Treasury Bills, Bonds, and Notes or those for which the full faith and credit of the United States are pledged for payment of principal and interest. There is no percentage limitation of the portfolio that can be invested in this category, although a five-year maturity limitation is applicable.
b) Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises.
c) Local Agency Investment Fund (LAIF), which is a State of California managed investment pool, and Sonoma County Investment pool, may be used up to the maximum permitted by California State Law. A review of the pool/fund is required when part of the list of authorized investments, with the knowledge that the pool/fund may include some investments allowed by statute but not explicitly identified in this investment policy. 112 of 814
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Additionally, shares of beneficial interest issued by a joint powers authority (JPA) organized pursuant to CA Code (Section 6509.7) that invests in the securities and obligations in compliance with CA Code 53601 (subsection ‘a’ to ‘r’, inclusive) are also authorized. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:
• The adviser is registered or exempt from registration with the Securities and Exchange Commission.
• The adviser has not less than five years of experience investing in the securities and obligations authorized in CA Code (subsection ‘a’ to ‘r’, inclusive). • The adviser has assets under management in excess of five hundred million dollars ($500,000,000).
d) Negotiable Certificates of Deposit issued by nationally or state-chartered banks (FDIC insured institutions) or state or federal savings institutions. Purchases of negotiable certificates of deposit may not exceed 30% of total portfolio. Principal and accrued interest on each investments must not exceed the $250,000 FDIC insurance limit. A maturity limitation of five years is applicable.
e) Time deposits or placement service deposits, non-negotiable and collateralized in accordance with the California Government Code, may be purchased through banks or savings and loan associations. Since time deposits are not liquid, no more than 50% of the investment portfolio may be invested in this investment type. A maturity limitation of five years is applicable. Effective January 1, 2020, no more than 50 percent of the agency’s money may be invested in deposits, including certificates of deposit, through a placement service as authorized under 53601.8 (excludes negotiable certificates of deposit authorized under Section 53601(i)). On January 1, 2026, the maximum percentage of the portfolio reverts back to 30 percent. Investments made pursuant to 53635.8 remain subject to a maximum of 30 percent of the portfolio.
f) Various daily money market funds administered for or by trustees, paying agents and custodian banks contracted by the City of Cotati may be purchased as allowed under the State of California Government Code. Only funds holding U.S. Treasury or Government agency obligations can be used.

The following summary of maximum percentage limits, by instrument, are established for the City’s investment portfolio:

Authorized Investment Type Government
Code
Maximum
Maturity
Minimum
Credit
Quality
Maximum in
Portfolio
Maximum
Investment in
One Issuer
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Treasury Obligations (bills,
notes, & bonds) 53601(b) 5 Years N/A 100% N/A
US Government
Agency and Federal Agency
Securities
53601(f) 5 Years N/A 100% N/A
Local Agency Investment
Fund (LAIF) 16429.1
Upon
Demand
N/A
As permitted by LAIF
(currently $65
million per account) N/A
Sonoma County Investment Pool
(SCIP) 53684
Upon
Demand N/A
As permitted by County
Treasurer (currently no
limit) N/A
Joint Powers Authority Pool 53601(p) N/A
See § 8.3
(above) None N/A
Negotiable Certificates of Deposit 53601(i) 5 Years N/A 30% N/A Placement Service Deposits –
Deposits or
53601.8
and
53635.8
5 Years N/A 50% N/A

8. Review of Investment Portfolio
The securities held by the City of Cotati must be compliant with Section 8.0 “Authorized and Suitable Investments” at the time of purchase. The Administrative Services Director should review the portfolio of assets held in investments (at least annually) to identify non-compliant securities.

The Administrative Services Director should establish procedures to report any materially adverse impact on the performance of the portfolio or to the agency.

9. Investment Pools / Money Market Funds
A thorough investigation of the investment pool/money market fund is required prior to investing, and on a continual basis. Best efforts will be made to acquire the following information:
a) A description of eligible investment securities, and a written statement of investment policy and objectives.
b) A description of interest calculations and how it is distributed, and how gains and losses are treated.
c) A description of how the securities is safeguarded (including the settlement processes), and how often the securities are priced and the program audited. d) A description of who may invest in the program, how often, and what size deposit and withdrawal are allowed.
e) A schedule for receiving statements and portfolio listings. f) Are reserves, retained earnings, etc. utilized by the pool/fund? g) A fee schedule, and when and how it is assessed.
h) Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?

10.Collateralization
Collateralization will be required on two types of investments: non-negotiable certificates of deposit and repurchase (and reverse repurchase) agreements. To anticipate market changes and provide a 114 of 814
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level of security for all funds, the collateralization level will be 110% of market value for nonnegotiable certificate of deposit and 102% for reverse repurchase agreements of principal and accrued interest.

Collateral will always be held by an independent third party with whom the entity has a current custodial agreement. Clearly marked evidence of ownership (safekeeping receipt) must be supplied to the entity and retained.

The City may waive the collateralization requirements for any portion of the deposit that is covered by Federal Deposit Insurance.

11. Safekeeping and Custody
All security transactions shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by a third-party custodian designated by the Administrative Services Director and evidenced by safekeeping receipts.

12. Diversification
The City shall diversify the investments within the portfolio to avoid incurring unreasonable risks inherent in over-investing in specific instruments, individual financial institutions, or maturities. To promote diversification, no more than 5% of the portfolio may be invested in the securities of any one issuer, regardless of security type, excluding U.S. Treasuries, federal agencies, and pooled investments such as LAIF, money market funds, or local government investment pools.

13. Maximum Maturities
To the extent possible, the City of Cotati will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than five (5) years from the date of purchase. Any investment longer than five (5) years must be done with advance permission from City Council.

14. Internal Controls
The Administrative Services Director is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City of Cotati are protected from loss due to theft, fraud, or misuse.

Separation of functions between the City Manager, Administrative Services Director and any designee is designed to provide an ongoing internal review to prevent the potential for converting assets or concealing transactions.

Investment decisions are made by the Administrative Services Director, executed by the Administrative Services Director or City Manager, and documented and confirmed by the designee.

All wire transfers must have segregation of duties whereby approval cannot be performed by the initiator. Proper documentation obtained from confirmation and cash disbursement wire transfers is required for each investment transaction. Timely bank reconciliation is processed by an accountant or other designee who is outside of the investment management delegation to ensure proper handling of all transactions.
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The investment portfolio and all related transactions are reviewed and balanced to appropriate general ledger accounts on a monthly basis. An independent analysis by an external auditor shall be conducted annually to review and perform procedure testing on the City’s cash and investments that have a material impact on the financial statements. The Administrative Services Director shall review and confirm compliance with investment process and procedures.

15. Performance Standards
The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs.

The City intends to spread its investments relatively evenly between 0 and 5 years and hold those investments to maturity, also known as laddering. The City is limiting its authorized investments to the safest end of the investment spectrum—debt issued by the U.S. Treasury, U.S. Government Agencies, and debt that is federally insured (see section 8.0 Authorized and Suitable Investments, above, for a complete list of authorized investments).

Therefore, an appropriate performance benchmark will be a Constant Treasury Maturity Rate consistent with the weighted average maturity of the portfolio. The City recognizes that benchmarks may change over time based on changes in market conditions or cash flow requirements.

16. Reporting
The City Administrative Services Director may review and render quarterly reports to the City Council that include the following information:
• Investment type (e.g. U.S. Treasury Note, U.S. Government Agency Bond) • Name of the issuer (e.g. Federal Farm Credit Bank, Federal Home Loan Bank) • Maturity date
• Yield to maturity
• Current market value and source of market value
• Par and dollar amount for each security the City has invested in • Par and dollar amount on any money held by the City (e.g. LAIF balance, Cash Balance). • Description of any of the City’s funds, investments, or programs that are under the management of contracted parties, including lending programs. • Statement of compliance or non-compliance of the portfolio to the investment policy A statement denoting the ability or inability of the City to meet its expenditure requirements for the next six months
When provided, quarterly reports shall be placed on the City Council meeting agenda for its review and approval no later than 45 days after the quarter ends. If there are no Council meetings within the 45-day period, the quarterly report shall be presented to the Council at the soonest possible meeting thereafter.
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17. Investment Policy Adoption
The City of Cotati investment policy shall be adopted by resolution of the City Council. The policy shall be reviewed annually by the City Council and any modifications made thereto must be approved by the City Council.

The Administrative Services Director shall establish written investment policy procedures for the operation of the investment program consistent with this policy. The procedures should include reference to: safekeeping, master repurchase agreements, wire transfer agreements, banking service contracts and collateral/depository agreements. Such procedures shall include explicit delegation of authority to the people responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the City of Cotati.

18. Glossary of Terms in this Policy
Accrued Interest: Interest earned but not yet received.

Annual Comprehensive Financial Report (ACFR): The official annual financial report for the City. It includes five combined statements and basic financial statements for each individual fund and account group prepared in conformity with Generally Accepted Accounting Principles (GAAP).

Bond: A financial obligation for which the issuer promises to pay the bondholder a specified stream of future cash flows, including periodic interest payments and a principal repayment.

Bond Swap: Selling one bond issue and buying another at the same time to create an advantage for the investor. Some benefits of swapping may include tax-deductible losses, increased yields, and an improved quality portfolio.

Broker: In securities, the intermediary between a buyer and a seller of securities. The broker, who usually charges a commission, must be registered with the exchange in which he or she is trading, accounting for the name registered representative.

Certificate of Deposit: A deposit insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC) at a set rate for a specified period of time.

Collateral: Securities, evidence of deposit or pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposit of public moneys.

Constant Maturity Treasury (CMT): An average yield of a specific Treasury maturity sector for a specific time frame. This is a market index for reference of past direction of interest rates for the given Treasury maturity range.

Custody: A banking service that provides safekeeping for the individual securities in a customer's investment portfolio under a written agreement that also calls for the bank to collect and pay out income, to buy, sell, receive, and deliver securities when ordered to do so by the principal. 117 of 814
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Delivery vs. Payment (DVP): Delivery of securities with a simultaneous exchange of money for the securities.

Diversification: Dividing investment funds among a variety of securities offering independent returns and risk profiles.

Federal Deposit Insurance Corporation (FDIC): Insurance provided to customers of a subscribing bank that guarantees deposits to a set limit (currently $250,000) per account.

Interest Rate: The annual yield earned on an investment, expressed as a percentage.

Liquidity: Refers to the ability to rapidly convert an investment into cash.

Market Value: The price at which a security is trading and could presumably be purchased or sold.

Maturity: The date upon which the principal or stated value of an investment becomes due and payable.

Portfolio: Collection of securities held by an investor.

Primary Dealer: A group of government securities dealers that submit daily reports of market activity and security positions held to the Federal Reserve Bank of New York and are subject to its informal oversight.

Purchase Date: The date in which a security is purchased for settlement on that or a later date.

Rate of Return: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

Risk: Degree of uncertainty of return on an asset. Safekeeping: See Custody.

Settlement Date: The date on which a trade is cleared by delivery of securities against funds.

Time Deposit: A deposit in an interest-paying account that requires the money to remain on account for a specific length of time. While withdrawals can generally be made from a passbook account at any time, other time deposits, such as certificates of deposit, are penalized for early withdrawal.

Treasury Obligations: Debt obligations of the U.S. Government that are sold by the Treasury Department in the forms of bills, notes, and bonds. Bills are short-term obligations that mature in one year or less. Notes are obligations that mature between one year and ten years. Bonds are longterm obligations that generally mature in ten years or more.

U.S. Government Agencies: Instruments issued by various US Government Agencies most of which are secured only by the credit worthiness of the agency.

Yield: The rate of annual income returns on an investment, expressed as a percentage. It is obtained by dividing the current dollar income by the current market price of the security. 118 of 814
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Yield to Maturity: The rate of income returns on an investment, minus any premium or plus any discount, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond, expressed as a percentage.

1. Glossary of General Investment Terms
Active Deposits: Funds that are immediately required for disbursement.

Amortization: An accounting practice of gradually decreasing (increasing) an asset's book value by spreading its depreciation (accretion) over a period of time.

Asked Price: The price a broker dealer offers to sell securities. Basis Point: One basis point is one hundredth of one percent (.01). Bid Price: The price a broker / dealer offers to purchase securities.

Book Entry Securities: Securities, such stocks held in “street name,” that are recorded in a customer’s account, but are not accompanied by a certificate. The trend is toward a certificate-free society to cut down on paperwork and to diminish investors’ concerns about the certificates themselves. All the large New York City banks, including those that handle the bulk of the transactions of the major government securities dealers, now clear most of their transactions with each other and with the Federal Reserve through the use of automated telecommunications and the “book-entry” custody system maintained by the Federal Reserve Bank of New York. These banks have deposited with the Federal Reserve Bank a major portion of their government and agency securities holdings, including securities held for the accounts of their customers or in a fiduciary capacity for the City. Virtually all transfers for the account of the banks, as well as for the government securities dealers who are their clients, are now affected solely by bookkeeping entries.

The system reduces the costs and risks of physical handling and speeds up the completion of transactions.

Book Value: The value at which a debt security is shown on the holder's balance sheet. Book value is acquisition cost less amortization of premium or accretion of discount.

Bullet Bond: See “Non-callable Bond.”
Callable Bond: A debit obligation where the bond issuer (i.e. borrower) has the option to call the bond or pay it off early (before the scheduled maturity date). For instance, a 5-year bond might be “callable quarterly”—meaning that, although the bond has a scheduled end date 5 years from now, it could end in 3 months (and every 3 months after that, until the scheduled maturity date).

Coupon: The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value.

Credit Analysis: A critical review and appraisal of the economic and financial conditions or of the ability to meet debt obligations.

Current Yield: The interest paid on an investment expressed as a percentage of the current price of the security.
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Discount: The difference between the cost of a security and its value at maturity when quoted at lower than face value.

Duration: The weighted average maturity of a bond's cash flow stream, where the present value of the cash flows serve as the weights; the future point in time at which on average, an investor has received exactly half of the original investment, in present value terms; a bond's zero-coupon equivalent; the fulcrum of a bond's present value cash flow time line.

Fannie Mae: Trade name for the Federal National Mortgage Association (FNMA), a U.S. sponsored corporation.

Federal Reserve System: The central bank of the U.S. that consists of a seven member Board of Governors, 12 regional banks and approximately 8,000 commercial banks that are members.

Fed Wire: A wire transmission service established by the Federal Reserve Bank to facilitate the transfer of funds through debits and credits of funds between participants within the Fed system.

Freddie Mac: Trade name for the Federal Home Loan Mortgage Corporation (FHLMC), a U.S. sponsored corporation.

Investment Agreements: An agreement with a financial institution to borrow public funds subject to certain negotiated terms and conditions concerning collateral, liquidity and interest rates.

Nationally Recognized Statistical Rating Organizations (NRSRO): A U.S. Securities & Exchange Commission registered agency that assesses the creditworthiness of an entity or specific security. NRSRO typically refers to Standard and Poor’s Ratings Services, Fitch Ratings, Inc. or Moody’s Investors Services.

New Issue: Term used when a security is originally "brought" to market.

Non-callable Bond: Also known as, “Bullet Bond.” A non-callable bond is a debt obligation where the bond issuer does not have the option to “call the bond” i.e.-end the bond before the scheduled maturity date.

Perfected Delivery: Refers to an investment where the actual security or collateral is held by an independent third party representing the purchasing entity.

Repurchase Agreement (REPO): A transaction where the seller (bank) agrees to buy back from the buyer (City) the securities at an agreed upon price after a stated period of time.

Reverse Repurchase Agreement (REVERSE REPO): A transaction where the seller (City) agrees to buy back from the buyer (bank) the securities at an agreed upon price after a stated period of time.

Secondary Market: A market made for the purchase and sale of outstanding issues following the initial distribution.
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Yield Curve: The yield on bonds, notes or bills of the same type and credit risk at a specific date for maturities up to thirty years.
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Section E
Debt Management Policy

1. . Policy Purpose ................................................................................................................................................. 84

2. . Purposes for Which Debt May Be Issued...................................................................................................... 84

3. . Types of Debt................................................................................................................................................... 85

4. . Relationship of Debt to Capital Improvement Program and Budget......................................................... 86

5. . Policy Goals Related to Planning Goals and Objectives.............................................................................. 86

6. . Internal Control Procedures.......................................................................................................................... 87 122 of 814
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1. Policy Purpose
These Debt Management Policies (the "Debt Policy") establishes the parameters within which debt may be issued and administered by the City, the Cotati Facilities Financing Authority, and the Successor Agency to the Cotati Community Redevelopment Agency (collectively, the "Covered Entities"). Additionally, these policies apply to debt issued by a Covered Entity on behalf of assessment, community facilities, or other special districts, and conduit-type financing by a Covered Entity for multifamily housing or industrial development projects.

The Debt Policy may be utilized by staff of the Covered Entities with the discretion to deviate as determined appropriate by the City Manager or Director of Administrative Services, and may be amended by the governing board of the applicable Covered Entity as it deems appropriate from time to time in the prudent management of the debt and capital financing needs of the Covered Entities.

The City will make every effort to use pay-as-you-go financing for capital improvement projects.

Debt financing for a project can be used if the overall project cost exceeds anticipated available resources and/or if the cost of financing is favorable as compared to the use of City investment holdings over the financing term.

This Debt Policy is intended to comply with Government Code Section 8855(i) and shall govern all debt undertaken by a Covered Entity.

The Covered Entities hereby recognize that a fiscally prudent debt policy is required in order to:
• Ensure that the use of debt is in a manner that sustains financing payments at manageable levels.
• Maintain the Covered Entities' sound financial position. • Ensure the Covered Entities have the flexibility to respond to changes in future service priorities, revenue levels, and operating expenses. • Protect the Covered Entities' credit-worthiness.
• Ensure that all debt is structured in order to protect both current and future taxpayers, ratepayers and constituents of the Covered Entities.
• Ensure that the Covered Entities' debt is consistent with their planning goals and objectives and capital improvement program or budget, as applicable.

2. A. Purposes for Which Debt May Be Issued
Generally, the City will make every effort to use pay-as-you-go financing for capital improvement projects. Debt financing for a project can be used if the overall project cost exceeds anticipated available resources and/or if the cost of financing is favorable as compared to the use of City investment holdings over the financing term.

A. Long-Term Debt. Long-term debt may be issued to finance the construction, acquisition, 123 of 814
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and rehabilitation of capital improvements and facilities, equipment, and land to be owned and operated by the City.

A.1. Long-term debt financings are appropriate when the following conditions exist:
• When the project to be financed is necessary to provide basic services. • When the project to be financed will provide benefit to constituents over multiple years.
• When total debt does not constitute an unreasonable burden to the Covered Entities and the City's taxpayers and/or ratepayers, as applicable. • When the debt is used to refinance outstanding debt to produce debt service savings or to realize the benefits of a debt restructuring.

A.2. The Covered Entities may use long-term debt financings subject to the following conditions:
• The project to be financed must be approved by the governing board of the Covered Entity.
• The weighted average maturity of the debt (or the portion of the debt allocated to the project) will not exceed the average useful life of the project to be financed by more than 20%.
• The Covered Entity estimates that sufficient revenues will be available to service the debt through its maturity.
• The Covered Entity determines that the issuance of the debt will comply with the applicable state and federal law.
• The City will not issue long-term debt to finance current operations. • The City will not incur general obligation indebtedness for public improvements, which exceed in aggregate 15% of the assessed value of all real and personal property of the City as specified in the California Government Code Section 43605.

B. Short-term debt. Short-term debt may be issued to provide financing for the Covered Entities' operational cash flows to maintain a steady and even cash flow balance. Shortterm debt may also be used to finance short-lived capital projects; for example, the Covered Entities may undertake lease-purchase financing for equipment.

C. Financing on Behalf of Other Entities. The Covered Entities may also find it beneficial to issue debt on behalf of other governmental agencies or private third parties in order to further the public purposes of Covered Entities. In such cases, the Covered Entities shall take reasonable steps to confirm the financial feasibility of the project to be financed and the financial solvency of any borrower and that the issuance of such debt is consistent with the policies set forth herein.

3. Types of Debt
The following types of debt are allowable under this Debt Policy :
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• General obligation bonds (GO Bonds)
• Bond or grant anticipation notes (BANs)
• Lease revenue bonds, certificates of participation (COPs) and lease-purchase transactions • Other revenue bonds and COPs
• Lease-purchase method of financing for equipment (should be used if the lease rates are more favorable than the City's expected overall investment rate of return) • Tax and revenue anticipation notes (TRANs)
• Land-secured financings, such as special tax revenue bonds issued under the Mello-Roos Community Facilities Act of 1982, as amended, and limited obligation bonds issued under applicable assessment statutes
• Tax increment financing to the extent permitted under State law • Conduit financings, such as financings for affordable rental housing and qualified 501(c)(3) organizations
The governing body may from time to time find that other forms of debt would be beneficial to further its public purposes and may approve such debt without an amendment of this Debt Policy.

4. Relationship of Debt to Capital Improvement Program and Budget The City and Covered Entities are committed to long-term capital planning. The City and Covered Entities intend to issue debt for the purposes stated in this Debt Policy and to implement policy decisions incorporated in the capital budget and the capital improvement plan.

The City and Covered Entities shall strive to fund the upkeep and maintenance of its infrastructure and facilities due to normal wear and tear through the expenditure of available operating revenues. The City and Covered Entities shall seek to avoid the use of debt to fund infrastructure and facilities improvements that are the result of normal wear and tear.

The Covered Entities shall integrate their debt issuances with the goals of the capital improvement program by timing the issuance of debt to ensure that projects are available when needed in furtherance of their public purposes.

The Covered Entities shall seek to avoid the use of debt to fund infrastructure and facilities improvements in circumstances when the sole purpose of such debt financing is to reduce annual budgetary expenditures.

The Covered Entities shall seek to issue debt in a timely manner to avoid having to make unplanned expenditures for capital improvements or equipment from its general fund.

5. Policy Goals Related to Planning Goals and Objectives The City and Covered Entities are committed to long-term financial planning, maintaining appropriate reserves levels, and employing prudent practices in governance, management and 125 of 814
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budget administration. The Covered Entities intend to issue debt for the purposes stated in this Debt Policy and to implement policy decisions incorporated in the annual operations budget.

It is a policy goal of the City and the Covered Entities to protect taxpayers, ratepayers (if applicable) and constituents by utilizing conservative financing methods and techniques to obtain the highest practical credit ratings (if applicable) and the lowest practical borrowing costs.

The City and the Covered Entities will comply with applicable state and federal law as it pertains to the maximum term of debt and the procedures for levying and imposing any related taxes, assessments, rates, and charges.

When refinancing debt, it shall be the policy goal of the Covered Entities to realize, whenever possible, and subject to any overriding non-financial policy considerations, (i) minimum net present value debt service savings equal to or greater than 3.0% of the refunded principal amount, and (ii) present value debt service savings equal to or greater than 100% of any escrow fund negative arbitrage.

6. Internal Control Procedures
When issuing debt, in addition to complying with the terms of this Debt Policy, the Covered Entities shall comply with any other applicable policies regarding initial bond disclosure, continuing disclosure, post- issuance compliance, and investment of bond proceeds.

Without limiting the foregoing, the Covered Entities will periodically review the requirements of and will remain in compliance with the following:
• Any continuing disclosure undertakings entered into by the Covered Entities m accordance with SEC Rule 15c2-12.
• The City will diligently monitor its compliance with bond covenants. • Any federal tax compliance requirements, including, without limitation, arbitrage, and rebate compliance.
• Investment policies as they relate to the use and investment of bond proceeds.

Proceeds of debt will be held either (a) by a third-party trustee or fiscal agent, which will disburse such proceeds to or upon the order of the Covered Entities upon the submission of one or more written requisitions by the City Manager or Director of Administrative Services, or his or her written designee, or (b) by the Covered Entity, to be held and accounted for in a separate fund or account, the expenditure of which will be carefully documented by the Covered Entity.
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Section E.1
Unfunded Pension Liability Policies

1. . Purpose............................................................................................................................................................. 89

2. . Policy Goals and Objectives........................................................................................................................... 89

3. . Background and Discussion ........................................................................................................................... 89

4. . Funding Level Objective................................................................................................................................. 91

5. . Establishment of a Pension Rate Stabilization Fund. .................................................................................. 94

6. . Operation of a Pension Rate Stabilization Fund. ......................................................................................... 95

7. . Fiscal Hardship ............................................................................................................................................... 96

8. . Fiscal Transparency and Reporting .............................................................................................................. 96

9. . Annual Budget to Contain Policy Directed Information ............................................................................. 96

10. . Review of Policy.......................................................................................................................................... 96 127 of 814
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1. Purpose
The purpose of this Unfunded Accrued Liability Management Policy (the “Policy”) is to strategically address the existing and any future unfunded accrued liability (the “UAL”) associated with the City of Cotati’s (the “City”) California Public Employees’ Retirement System (CalPERS) pension plans (the “Pension Plans”). This Policy also addresses some of the principal elements and core parameters central to the policy objectives discussed in this Policy. In the development of this Policy, the City strives to reduce its UAL and the associated financing costs in the most costefficient and fiscally responsible manner possible.

The City is committed to fiscal sustainability by employing long-term financial planning efforts, maintaining appropriate reserve levels, and employing prudent practices in governance, management, budget administration, and financial reporting. This Policy is intended to make all relevant information readily available to decision-makers and the public to improve the quality of decisions, identify policy goals, and to demonstrate a commitment to long-term financial planning.

Adherence to this Policy signals to rating agencies and capital markets that the City is well managed and able to meet its obligations in a timely manner.

The Policy is intended to reflect a reasonable and conservative approach to managing the UAL costs associated with the Pension Plans. This Policy recognizes that the Pension Plans are subject to market volatility and that actual economic and demographic experience of the plans will differ from the actuarial assumptions. Accordingly, it is intended to allow for adaptive responses to changing circumstances, providing flexibility to address such volatility in a financially sound manner. As such, the City is required to continually monitor its Pension Plans and the corresponding UAL.

2. Policy Goals and Objectives
The overarching goals and objectives of this Policy are as follows:
• Establish, attain, and maintain targeted pension plan funding levels • Provide sufficient assets to permit the payment of all benefits under the Pension Plans • Seek to manage and control future contribution volatility to the extent reasonably possible • Strive to make Annual Discretionary Payments to accelerate UAL pay-down, reduce interest costs, and stabilize future payments
• Maintain the City’s sound financial position and creditworthiness • Provide guidance in making annual budget decisions
• Create sustainable and fiscally sound future budgets
• Demonstrate prudent financial management practices
• Ensure that pension funding decisions protect both current and future stakeholders • Create transparency as to how and why the Pensions Plans are funded

3. Background and Discussion
In General –
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Each Pension Plan is a multiple employer defined benefit pension plan administered by the California Public Employee Retirement System (“CalPERS”). All full-time and certain part-time City employees are eligible to participate in the CalPERS retirement and disability benefits, annual cost of living adjustments and death benefits offered to plan members and their beneficiaries.

CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute.

The financial objective of a defined benefit pension plan is to fund the long-term cost of benefits provided to the plan participants. To assure its financial soundness and sustainability, the plan should accumulate adequate resources in a systematic and disciplined manner to ensure sufficient resources are available to meet employee benefit requirements. This Policy outlines the practices the City will utilize to address its actuarially determined contributions to fund the long-term cost of benefits to the Pension Plan participants and annuitants.

Pension Costs and Liabilities
To fund its employees’ pension benefits, the City is required to make contributions (a portion of which may come from the employees) to CalPERS. CalPERS then invests these contributions to generate returns to help fund the pension benefits. The regular required contributions, known as the “normal cost,” are calculated as a percent of salaries and represent the annual cost of service accrual for the upcoming fiscal year for active employees. If, for any reason, the actual Pension Plan experience and investment performance fall short of the actuarial assumptions, the Pension Plan can become underfunded (i.e., the Pension Plan’s Normal Accrued Liability exceeds the Plan’s market value of assets). This shortfall is known as the Unfunded Accrued Liability (the “UAL”) and usually has to be covered by the City through a series of UAL Payments, which are above and beyond the “normal cost” contributions. The UAL Payments are calculated in total dollar amounts, not as a percent of salaries.

The UAL can be caused by multiple factors, including but not limited to, changes to CalPERS’ actuarial amortization policy, retroactive pension benefit enhancements, investment underperformance, actuarial assumption changes, demographic factors, and discount rate reductions.

UAL is Debt.

The UAL balance at any given point in time is a debt of the City owed to CalPERS which is amortized over a set period of time with interest accruing at the then current CalPERS discount rate (the “Discount Rate”). However, this debt can be prepaid at any time without penalties. Recognizing the UAL as debt helps the City identify proper steps to address it and minimize the associated financing costs.

Ongoing CalPERS Practices.
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Every year CalPERS prepares updated actuarial valuation reports for each of the City’s Pension Plans wherein it calculates the City’s total pension liability as of the end of the prior fiscal year (each a “Valuation Report”). If the investment performance during that fiscal year was different from the Discount Rate, or if CalPERS made any changes to its actuarial assumptions, or if the actual demographic or compensation experience within the Pension Plans was different from the actuarial assumptions, new line items, or UAL amortization “bases,” may be added to the plan and result in a change to the UAL balance. Such UAL amortization bases may be positive (indicating funding shortfall for the Pension Plans) or negative (indicating funding surplus for the Pension Plans). Since CalPERS can add new UAL amortization bases every year, the Pension Plans must be monitored annually and managed continually – there is no one-time solution.

CalPERS has adopted the UAL amortization methods that were meant to help public agencies “ease into” paying for the UAL increases. New UAL amortization bases are implemented incrementally, with a five-year ramp-up period, and at times include additional small increases in each of the subsequent years. The ramp-up period, while reducing the cash flow impact in the near term, increases the overall UAL repayment costs for the City by delaying repayment. Since the UAL balances accrue interest at the rate that is equal to the then current Discount Rate, the delayed payments prior to the commencement of the amortization and the reduced payments during the ramp-up period that do not fully cover the interest costs result in negative amortization, causing further increases to the UAL balance. To help reduce the overall costs of the UAL repayment, this Policy encourages level annual payments (i.e., no ramp-up) whenever possible.

4. Funding Level Objective
It is the City’s policy to strive to achieve and maintain a UAL “Funded Ratio” (being the ratio by which the Market Value of Assets—as set forth in the most recently published Valuation Report-- exceeds the Present Value of Projected Benefits or “PVB”—as set forth in the most recently published Valuation Report) for each Pension Plan of 90%, but never dropping below 80% (the “Funding Level Objective”).

Funding Level Objective = 90%
Achieving and maintaining the Funding Level Objective ensures that the ongoing contributions of the City and its employees, and therefore the taxpayer funds, are properly and adequately funding the retirement benefits of retirees and today’s workers. This concept is commonly referred to as the intergenerational equity. Falling short of this funded level forces future City Councils to pay the costs of the poor planning and execution of today’s Pension Plans. The reason for a Funding Level Objective less than 100% is to allow some cushion for the possibility that good investment returns in a given year might push the Funded Ratio of a Pension Plan above 100% (commonly referred to as “superfunded status”), which means that the City and its employees had contributed into the Pension Plan more than was necessary. Thus, while the City remains committed to maintaining a 100% funded level, it shall manage the 10% differential (i.e., the difference between 90% and 100%) through its own investment process by creating the “Pension Rate Stabilization Fund” discussed herein.
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Guidance:

To achieve the Funding Level Objective, this Policy provides the following guidance:

A. Pre-Pay the Entire Annual UAL Payment by July 31st of each year. On or before July 1st of each year, the City receives its annual CalPERS UAL invoice. The City has two payments options. The invoice can be paid in equal monthly increments or be fully pre-paid at the beginning of the fiscal year by July 31st. By prepaying the entire invoice amount due by July 31st, the City can concurrently save approximately 3.2% compared to making the monthly payments. As such, every effort should be made to pre-pay the UAL payment upon receipt of the annual invoice.

However, during periods of higher interest rates, the City may consider whether monthly payments allow for interest earnings that exceed the prepayment discount through investment of reserves and make appropriate changes to the timing of payments.

B. Pre-Pay UAL from Reserves, One-Time Revenues and Fund Surpluses. Reserves (often invested in LAIF) regularly do not earn returns that can offset the interest rate that CalPERS charges on the outstanding UAL balance. Supplemental contributions into the Pension Plans from available reserves, one-time revenues and fund surpluses can generate substantial long-term net savings. Each supplemental contribution, referred to by CalPERS as an Additional Discretionary Payment (ADP), reduces the UAL balance, the Annual Required Contributions (ARC) for future years, and the total interest costs associated with the UAL. Therefore, during each budget cycle, the City staff shall review all available reserves, one-time revenues, and fund surpluses to determine whether any such funds could be used to make an ADP to pay down the UAL, keeping in mind operational and capital budgetary constraints while maintaining adequate reserves and balancing the fiscal soundness of eliminating the high-interest UAL debt. ADPs should not adversely affect the general operations and fiscal soundness of the City.

C. Capital Financing. When considering capital projects, staff regularly reviews and plans for reserving capital to cash fund current and future projects. When considering how to pay for current and future capital projects, staff should review the current tax-exempt market to assess if it would be more cost effective to borrow at tax-exempt rates to pay for the capital projects and redirect the reserved funding (and/or such other appropriate funds of the City) to make ADPs to CalPERS. If there are projected cost savings by using this method, and a capital financing strategy is to be implemented, the City Council would need to approve of the ADPs being paid to CalPERS prior to the financing to ensure that the annual savings generated by implementing the strategy are applied to UAL paydowns.
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D. Utilize Savings Achieved from Refunding Outstanding Non-Pension Related Debt to Pre-Pay UAL. During each budget cycle, staff should review all outstanding longterm non-pension related debt of the City to determine whether a refunding of such debt might result in net present value savings of greater than 3%, and if so, consider a structure and strategy that frontloads the savings, which can then be used to pay down the UAL. This strategy should only be used if the interest rates on the currently outstanding debt is sufficiently below the then-current Discount Rate to ensure that overall savings are achieved by the City.

E. Sources of Revenue. All fees, rates and charges should incorporate full allocation of pension costs for employees providing associated services. While some funds cannot contribute more than their fair share (i.e., enterprise funds), they should not contribute less than their fair share. Staff shall review allocation of labor costs to proprietary and other funds to ensure full reimbursement of the pension cost burden.

Staff shall provide, or cause to be provided, consistent and well-documented methodology for pension cost allocation to all funds.

F. Pension Obligation Financing. The City shall consider issuing taxable municipal debt obligations (generically hereafter referred to as “Pension Obligations”) to refinance the UAL, in part or in whole, if such bond obligations are expected to produce minimum cash flow savings of at least 5%, taking into account all debt service and costs of issuance associated with such bond obligations, in comparison to CalPERS’ respective UAL amortization schedule and the then-current Discount Rate. Pension Obligations shall not utilize swaps or derivatives of any kind and should be structured with reasonable and flexible call provisions (with a maximum of 10-year call provision). Pension Obligations shall be used only to prepay the UAL liabilities and shall not be used to finance normal cost payments. The issuance of Pension Obligations must be voted upon and approved by the City Council.

G. Annual Review of the CalPERS Actuarial Valuation Reports and Associated Tasks.

The City staff shall review or cause to be reviewed the annual CalPERS actuarial valuation reports within 30 days of their release by CalPERS, which usually takes place during the month of August. The review should focus on identifying the annual changes to each of the Pension Plans UAL and quantifying the associated cost implications and the corresponding impact on the Funded Ratio. Staff should annually reach out to the City’s CalPERS actuary to request a calculation of flat payments (rather than ramp-up payments) for all outstanding and new UAL amortization bases. In making ADPs, the City staff shall determine or cause to be determined the optimal application of the ADPs to the outstanding UAL amortization bases to achieve the Funding Level Objective as well as desired budgetary outcomes.
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H. ADPs Shared Between All Benefiting City Funds. Whenever an ADP is made, the City will endeavor to ensure that all benefitting funds (the “Benefiting Funds”) contribute their fair share in accordance with the City’s allocation method of charging off its pension costs for each City fund.

5. Establishment and Operation of a Pension Rate Stabilization Fund.

The City shall establish a Pension Rate Stabilization Fund, either self-managed or a Section 115 trust fund managed by a third-party investment manager (the “Investment Manager”). The Pension Rate Stabilization Fund will receive Sequestered Savings (defined below) and Sequestered Surplus (defined below) as well as any other funds deposited into it at the discretion of the City Council, based on recommendations made by the City staff during the annual budget process. Funds in the Pension Rate Stabilization Fund should only be used to manage the City’s pension benefits costs to maintain each of the Pension Plans at the Funding Level Objective in accordance with the goals and objectives set forth in this Policy.

Funding the Pension Rate Stabilization Fund
A. Sequestered Savings. Upon the issuance of each series of Pension Obligations, and for each of the 10 succeeding years (or such other period of years as deemed appropriate by the City Council at the time of any subsequent issuances of Pension Obligations) following such issuance, a fixed dollar amount equal to 50% (or such other percentage as deemed appropriate by the City Council at the time of any subsequent issuances of Pension Obligations) of the “Total Sequestered Savings” (as calculated in the manner set forth below) achieved by issuing Pension Obligations (the “Annual Sequestered Savings Savings”), shall be transferred from the Benefiting Funds (as established in section A8 above) and deposited into the Pension Rate Stabilization Fund until such time that the Pension Rate Stabilization Fund reaches the Pension Rate Stabilization Fund Maximum (as outlined in section B3 below), and thereafter all Sequestered Savings will be directed to a “Pension Obligation Bond Call Fund” which will be established and maintained by the City for the purpose of prepaying any outstanding Pension Obligations.

Example of Annual Sequestered Savings Calculation
A $5M Pension Obligation was issued in 2022 for the purpose of prepaying CalPERS UAL.

The total UAL debt service (UALDS) paid off with the Pension Obligation was $8,000,000 133 of 814
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and the total debt service (DS) on the Pension Obligation is $7,000,000. The City elected to sequester 50% of the total savings over a 10-year period (Y).

𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴 𝑆𝑆𝑆𝑆𝑆𝑆. 𝑆𝑆 𝑆𝑆𝑆𝑆 𝑆𝑆𝑆𝑆 = 0.5𝑥𝑥(
8,000,000 − 7,000,000)
10 )
= $100,000
B. Sequestered Surplus. Each Fiscal Year during the City’s normal budget adoption process, beginning with the 2022-23 Fiscal year budget, and for each of the following 10 years, a best practice is to set aside between 0% and 5% of any available surplus from the prior Fiscal Year (the “Sequestered Surplus”) and deposit into the Pension Rate Stabilization Fund.

6. Operation of the Pension Rate Stabilization Fund.

Sequestered Surplus and Sequestered Savings (and any other amounts contributed by the City) shall be deposited in the Pension Rate Stabilization Fund and used solely for the purpose of making ADP’s (and Normal Cost payments during a Fiscal Hardship, and/or to the extent the amount therein exceeds the Pension Rate Stabilization Fund Maximum, as described below) to CalPERS for the purpose of achieving and maintaining Funding Level Objective.

With the goal of achieving and maintaining the Funding Level Objective, each year during the budget cycle, City staff shall calculate, or cause to be calculated, the upcoming Fiscal Year’s estimated Funded Ratio by considering the most recent Valuation Report’s statement of Funded Ratio and anything else that is known but not yet official from CalPERS that is expected to change the UAL valuation. If the Funded Ratio is estimated to be less than the Funding Level Objective, to the extent funds are available in the Pension Rate Stabilization Fund, the City Manager, or designee, shall either make, or shall direct the Investment Manger to make, an ADP to CalPERS in the amount necessary to bring the Funded Ratio back up to the Funding Level Objective. Additionally, staff shall assess whether to fully amortize any new bases to reduce the long-term interest costs associated with the “ramping” procedures used by CalPERS.

Moneys in the Pension Rate Stabilization Fund shall not be used for normal costs until such time as the amount therein, when combined with the Market Value of Assets (as set forth in the most recently published Valuation Report) exceeds the Entry Age Normal Accrued Liability (as set forth in the most recently published Valuation Report) by 10% (the “Pension Rate Stabilization Fund Maximum”). To the extent monies in the Pension Rate Stabilization Fund on June 30st exceed the Pension Rate Stabilization Fund Maximum (after consideration has been given to the amounts therein required to be paid to CalPERS for the ensuing Fiscal Year to maintain the Estimated Funded Ratio at or above the Funding Level Objective), of accrued surplus over 10%, these may be used to offset the City’s Normal Cost payment made to CalPERS in such Fiscal Year, and any Sequestered Savings will be directed to the Bond Call Fund. 134 of 814
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7. Fiscal Hardship
In the event of a Fiscal Hardship (as defined below), transfers of Sequestered Savings may be abated and/or the Pension Rate Stabilization Fund may be utilized for either normal or UAL costs until the Fiscal Hardship is no longer in effect.
“Fiscal Hardship” means an economic hardship, or other unanticipated fiscal emergency, that has been declared by resolution of the City Council.

8. Fiscal Transparency and Reporting
Funding of the Pension Plans should be transparent to all stakeholders, including plan participants, annuitants, the City Council, and City residents. To achieve this Policy objective, copies of the annual actuarial valuation reports for each Pension Plan shall be made available to the City Council and shall be posted on the City’s website. The City’s audited financial statements shall also be posted on the City’s website because they include, among other things, information on the City’s current and future annual Pension Plan contributions as well as the funded status of each Pension Plan.

9. Annual Budget to Contain Policy Directed Information The City’s annual operating budget shall consider the items specified in this Policy for inclusion in each such annual budget.

10.Review of Policy
Funding a defined benefit pension plan requires a long-term horizon planning approach. This Policy is intended to provide general objectives and guidelines, which will require periodic review and constant update to consider changes in the City’s financial position and Pension Plan funded status over time. As such, City staff will review the policy for implementation of new best practices and will provide to Council for adoption on an as needed basis. 135 of 814
Cotati City Council
Agenda Staff Report
Item type: PUBLIC HEARINGS (ACTION)
To: City Council
Subject: ADOPTION OF NOISE ORDINANCE AMENDMENTS TO

RESTRICT THE USE OF GAS-POWERED LEAF BLOWERS

DURING CERTAIN HOURS
Date: June 25, 2024
Written by: Damien O'Bid, City Manager
Recommendation
It is recommended that the City Council adopt an ordinance amending the noise ordinance to restrict the use of gas-powered leaf blowers during certain hours and clarify the standards for determining violations.

Background
During the current fiscal year, City Council directed staff to add an update of the noise ordinance to a future agenda item, specifically to discuss noise generated by leaf blowers. This was reflected in the FY 24-25 Strategic Planning work plan and indicated as complete by the end of FY 23-24.

On May 14, 2024, the City Council reviewed potential amendments to the municipal code to restrict the use of leaf blowers. Specifically, the City Council affirmed the proposed hours of use restriction and limiting it to gas powered leaf blowers only.

On June 11, 2024, the City Council voted to introduce the ordinance as amended. Prior to introduction, Council approved a motion to amend by Vice Mayor Ford, modifying the language in section G(1) to replace “in a residential zone” with “within City limits, except in industrial zones.”
Analysis/Discussion
Currently, the City’s noise ordinance does not specifically prohibit leaf blowers, but generally 136 of 814
prohibits loud and unusual noises, based on noise standards in Chapter 17.30.050 Noise Standards, in the City’s municipal code. The significance criteria are ultimately supported by the noise analyses completed with the General Plan.

Leaf blowers are transitory, and like any transitory noise, they would be difficult to regulate.

Presumably, most nuisance noise issues would come up outside of normal working hours, which adds an additional complication for regulation. Therefore, staff reviewed other ordinances that regulate leaf blowers (Santa Rosa and City of Sonoma, specifically). City staff also spoke with staff in the City of Sonoma to understand how they are regulated. Sonoma is also a smaller community and now has the benefit of hindsight after implementing a very contentious leaf blower ordinance. Of particular concern was the potential issues that could arise if police were required to ticket and potentially fine landscapers, as they are generally the only staff available outside normal business hours.

In discussions with City of Sonoma staff, the recommended approach to implement a leaf blower restriction is to initially reach out to landscape contractors that work in the area (in addition to the City’s own landscape contractor) and inform them of the change to put them on notice. For enforcement, the recommended practice is to rely on residents to report violations. For transitory or after-hours violations, it’s common practice for residents to document the issue and provide that the City for follow-up. In this case, the recommended process would be the same, with code enforcement following up with a warning letter followed by potential enforcement letters if violations do not cease. The resident would provide photos and times of the equipment in use, the address where the use is occurring, and photos of the door decals, etc. to identify the landscape contracting company. Both the landscape company and the owner of the address where the violation occurred would receive the city letters, and they would ultimately both be mutually liable for any fines and penalties if the parties were unresponsive and continued to violate the ordinance. In practice, City of Sonoma staff reported that the initial warning letter almost always resolves the issue.

Attached to the ordinance as Exhibit A is the City’s current noise ordinance section, with redlinestrike out text indicating proposed additions. Primarily, this is to update the references to the latest General Plan as well as adding more robust standards for determining violations, expanding the emergency exemptions, adding definitions and specifically prohibiting gas powered leaf blowers in residential zones between the hours of 8 pm – 8 am during weekdays and 8 pm – 9 am on weekends. This is modeled after the Santa Rosa restriction, which sets hour limitations rather than trying to measure the noise of a transitory and moving source, which would not be feasible.

On January 1, 2024, California Assembly Bill 1346 also took effect, which prohibited the sale of gas-powered leaf blowers, lawn mowers and other small off-road engines in California. This prohibition only applies to new purchases; homeowners and businesses can continue to use their gas-powered equipment until the end of the equipment's life.

Financial Considerations
The proposed ordinance amendments would result in some additional code enforcement and 137 of 814
Community Development time to send warning letters. If any issues escalated to the point of an administrative hearing, it could result in significant costs and staff time.

Environmental Issues
Amending the noise ordinance has no significant effect on the environment. Where it can be determined with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA review. This general rule can be applied to activities which could be subject to the CEQA process, but which logic dictates should not be subject to CEQA review. Therefore, based on the information provided above, the proposed resolution is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines in that there is no possibility that the activity may have a significant impact on the environment.
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ORDINANCE NO.

INTRODUCTION OF AMENDMENTS TO THE CITY’S NOISE ORDINANCE AND

ASSOCIATED DEFINITIONS TO RESTRICT THE USE OF GAS-POWERED LEAF

BLOWERS IN THE CITY DURING CERTAIN HOURS
WHEREAS, during the current fiscal year, City Councl directed staff to add an update of the noise ordinance to a future agenda item, specifically to discuss noise generated by leaf blowers.

WHEREAS, this project was reflected in the FY 24-25 Strategic Planning work plan and indicated as complete by the end of FY 23-24; and
WHEREAS, on May 14, 2024, the City Council reviewed potential amendments to the municipal code to restrict the use of leaf blowers and affirmed the proposed hours of use restriction and limiting it to gas powered leaf blowers only; and WHEREAS, staff researched noise ordinances in Santa Rosa and the City of Sonoma, including speaking with their code enforcement staff, to determine the best way to craft and enforce limitations on leaf blowers; and
WHEREAS, staff has also included general cleanup language in the proposed ordinance, including references to the General Plan and clarifying the standards for violations generally; and WHEREAS, this ordinance to amend Chapters 17.30.050 (Noise Standards) and

17.90.020 (Definitions of specialized terms and phrases) was introduced at a duly noticed public hearing on June 11, 2024; and
WHEREAS, amending the noise ordinance has no significant effect on the environment.

Where it can be determined with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA review.

This general rule can be applied to activities which could be subject to the CEQA process, but which logic dictates should not be subject to CEQA review. Therefore, based on the information provided above, the proposed resolution is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines in that there is no possibility that the activity may have a significant impact on the environment.

NOW THEREFORE THE CITY COUNCIL OF THE CITY OF COTATI DOES ORDAIN AS FOLLOWS:

SECTION 1: Recitals.

The foregoing recitals are true and correct and are incorporated into the findings herein.

SECTION 2: Amendment to the Cotati Municipal Code.

Section 17.30.050 (Noise Standards) is hereby amended as indicated by redline-strikeout text in Exhibit A, attached.
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SECTION 3: Amendment to the Cotati Municipal Code.

Section 17.90.020 (Definitions of specialized terms and phrases) is hereby amended as follows:

Add the following definition to section A. Definitions, “A.” “Ambient Noise” - The all-encompassing noise associated with a given environment, being usually a composite of sounds from many sources near and far. Ambient noise level is the level obtained when the noise level is averaged over a period of 15 minutes without inclusion of noise from isolated, identifiable sources, at the location and time of day near that at which a comparison is to be made.

Add the following definition to section D. Definitions, “D.” “Decibel” - A unit used to measure the intensity of a sound or the power level of an electrical signal by comparing it with a given level on a logarithmic scale. In zoning use a degree of loudness.

Add the following definition to section F. Definitions, “F.” “Frequency” - Is the measurement of the number of times that a repeated event occurs per unit of time. The frequency of wave-like patterns including sound, electromagnetic waves (such as radio or light), electrical signals, or other waves, expresses the number of cycles of the repetitive waveform per second.

SECTION 4: Compliance with the California Environmental Quality Act.

Amending the Noise Ordinance has no significant effect on the environment. Where it can be determined with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA review. This general rule can be applied to activities which could be subject to the CEQA process, but which logic dictates should not be subject to CEQA review. Therefore, based on the information provided above, the proposed resolution is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines in that there is no possibility that the activity may have a significant impact on the environment.

SECTION 5: Construction and Severability.

It is the intent of the City Council of the City of Cotati to supplement applicable state and federal law and not to duplicate or contradict such law, and this ordinance shall be construed consistently with that intent. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this ordinance, or its application to any other person or circumstance. The City Council of the City of Cotati hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective 140 of 814
of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.

SECTION 6: Effective Date.

This ordinance shall take effect thirty (30) days after its adoption, pursuant to the California Government Code.

SECTION 7: Publication.

The City Clerk shall cause this ordinance to be published and/or posted as required in Section 36933 of the California Government Code.

IT IS HEREBY CERTIFIED that the foregoing ordinance was introduced at a regular meeting of the City Council of the City of Cotati held on June 11, 2024, by the following vote, to wit:

RESULT:

MOVER:

SECONDER:

AYES:

IT IS HEREBY CERTIFIED that the foregoing ordinance was duly adopted at a regular meeting of the City Council of the City of Cotati held on June 25, 2024, by the following vote, to wit:

RESULT:

MOVER:

SECONDER:

AYES:

Approved:___________________________
Mayor
Attest:______________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:
______________________________
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
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______________________________
Kevin Patterson, Deputy City Clerk
142 of 814

EXHIBIT A

NOISE ORDINANCE AMENDMENTS

17.30.050 Noise standards.

A. Purpose. This section implements the policies of the noise element of the general plan, and provides standards for noise mitigation that are intended to protect the community health, safety, and general welfare by limiting exposure to the unhealthful effects of noise.

B. Applicability. No use, activity, or process shall exceed the maximum allowable noise levels established by this section, except for the following noise sources:

1. Emergencies. Public safety warning devices (e.g., ambulance, fire, and police sirens), sound for alerting persons to the existence of an emergency, or the performance of authorized emergency work including but not limited to restore property to a safe condition following a public calamity or work and equipment required to protect persons or property from an imminent exposure to danger or work and equipment by private or public utilities when restoring utility service;

2. State or Federal Preempted Activities. Any activity regulated by state or federal law;

3. Public Health and Safety Activities. Construction, maintenance, and/or repair operations by public agencies and/or utility companies or their contractors that are serving public interests, and/or protecting the public health, safety, and general welfare;

4. Parks. Public agency sanctioned recreational activities and programs conducted in public parks; and

5. Solid Waste Collection. The authorized collection of solid waste.

C. Noise Source Standards.

1. Noise Level Limitations. No use, activity, or process within the city shall generate noise in excess of the levels identified by Tables 3-3 and 3-4, as the noise is measured at the property line of a noise sensitive land use identified in Tables 3-3 and 3-4. a. If the measured ambient noise level exceeds the applicable noise level standard in any category shown in Table 3-3, the applicable standards shall be adjusted to equal the ambient noise level.
b. If the intruding noise source is continuous and cannot reasonably be discontinued or stopped to allow measurement of the ambient noise level, the noise level measured while the source is in operation shall be compared directly to the applicable noise level standards identified in Table 3-3.

Notwithstanding the above requirements, no person shall allow or cause the generation of any noise of a type, volume, pitch, tone, repetition, or duration that would be found to be a nuisance by a reasonable person beyond the boundaries of the property where the noise is generated. 143 of 814

EXHIBIT A

NOISE ORDINANCE AMENDMENTS
Table 3-3
Maximum Allowable Noise Level by Receiving Land Use
Outdoor Activity
Areas(1)(2)
Interior Spaces Noise Sensitive Land Use
dBA Ldn dBA Ldn dBA Leq
Residential 65 45 N.A.

Transient lodging 65 45 N.A.

Hospitals, extended care 65 45 N.A.

Theater, auditorium (3) 45 35
Meeting facility, public or private 65 45 40
Offices 75 45 45
School, library, museum 65 45 45
Playground park 70 N.A. N.A.

Notes:
(1) Where the location of outdoor activity areas is unknown, the exterior noise level standard shall be applied to the property line of the receiving land use.
(2) Where it is not possible to reduce noise in outdoor activity areas to 65 dB Ldn/CNEL or less using a practical application of the best-available noise reduction measures, an exterior noise level of up to 70 dB Ldn/CNEL may be allowed provided that available exterior noise level reduction measures have been implemented and interior noise levels are in compliance with this table.
(3) Subject to an acoustical analysis in compliance with subsection (C)(2) of this section.

Table 3-4
Noise Standards for Short-Duration Events Near Residential Areas Maximum Allowable Sound Level(1)
Sound Level Day/Evening dB
(7 a.m. to 10 p.m.)
Night dB
(10 p.m. to 7 a.m.)
Hourly Leq dB 50 45
Maximum Level, dB 70 65
Maximum Level, dB, for Impulsive Noise 65 60
Notes:
(1) If the offensive noise contains a steady, audible tone (e.g., a screech or hum), is a repetitive noise (e.g., hammering), or contains speech or music, the maximum allowable sound level shall be reduced by 5 dB. 144 of 814

EXHIBIT A

NOISE ORDINANCE AMENDMENTS

2. Acoustical Analysis Required. Where the director determines that a proposed project may generate noise in excess of any limit established by Table 3-3, and/or where the use may generate noise in outdoor areas in excess of 60 dBA, the land use permit application for the use shall include an acoustical analysis by a qualified professional approved by the director. a. Contents. The analysis shall determine the potential for stationary source noise impacts to neighboring land uses, include field measurements to determine more precise locations for existing and projected future noise levels (based on traffic projections in the circulation element of the general plan or as otherwise accepted by the city), and recommend appropriate mitigation measures.
b. Preferred Mitigation Measures for Receptor Sites. When development is subject to high noise levels requiring mitigation, the following measures shall be considered and preference shall be given where feasible in the following order:
i. Site layout, including setbacks, open space separation and shielding of noisesensitive uses with non-noise-sensitive uses; ii. Acoustical treatment of buildings; or
iii. Structural measures such as constructed of earth berms and/or wood or concrete barriers; provided that no sound wall shall be located adjacent to a public street.

3. Limitation on Hours of Construction. In order to allow construction schedules to take advantage of the weather and normal daylight hours, and to ensure that nearby residents as well as nonresidential activities are not disturbed by the early morning or late night activities, the city has established the following limits on construction, in compliance with Table 3-5 or as required by conditions of approval.

Table 3-5
Allowable Hours of Construction
Day Allowable Hours
Monday through Friday 7:00 a.m. to 7:00 p.m.

Saturday and Sunday,
Holidays
Construction activities may only be allowed by the review authority through conditions of approval between 9:00 a.m. and 5:00 p.m.

4. Limitation on Truck Deliveries. Truck deliveries to a commercial or industrial parcel adjacent to a residential zoning district shall be limited to the hours between seven a.m. and seven p.m., unless the director authorizes other delivery times based on the determination that there is either no feasible alternative, or there are overriding transportation and traffic management benefits to scheduling deliveries at night.

D. Noise Receptor Standards. Where noise-sensitive land uses are proposed in areas exposed to existing or projected noise levels in excess of the standards in Tables 3-3 and 3-4, the city shall require an acoustical analysis as part of the environmental review process so that noise mitigation may be included in the project design, so that proposed structures are designed to limit intruding 145 of 814

EXHIBIT A

NOISE ORDINANCE AMENDMENTS
noise in interior rooms to 45 dBA Ldn. At the discretion of the director, the requirement for an acoustical analysis may be waived if all of the following conditions are satisfied:

1. The development is for less than five ten (10) single-family dwellings or less than ten thousand square feet of total gross floor area for office buildings, churches, or meeting halls;

2. The noise source in question consists of a single roadway or railroad for which up-to-date noise exposure information is available. An acoustical analysis will be required if the noise source is a stationary noise source, or if there are multiple noise sources that could affect the project;

3. The projected future noise exposure at the exterior of proposed buildings or outdoor activity areas does not exceed 65 dBA Ldn;

4. The topography of the area is essentially flat; and

5. Effective noise mitigation, as determined by the director, is incorporated into the project design. The measures can include, but are not limited to, the use of building setbacks, building orientation, or noise barriers. If closed windows are required for compliance with interior noise level standards, air conditioning or a mechanical ventilation system will be required.

E. Noise Measurement. Exterior noise levels shall be measured at the property line of the noisesensitive land use receiving the noise, or alternatively at the property line of the source emitting the noise. Noise measurement shall be made with a sound level meter using the “A” weighted scale at slow meter response. Fast meter response shall be used only for an impulsive noise. (Ord. 766 § 2 Exh. A (part), 2004).

F. Standards for determining violations.

Notwithstanding any other provision of this chapter, and in addition thereto, it is unlawful for any person to willfully make or continue, or cause to be made or continued, any loud, unnecessary, or unusual noise which disturbs the peace or quiet of any neighborhood or which causes discomfort or annoyance to any reasonable person of normal sensitiveness residing in the area.

The standards which shall be considered in determining whether a violation of the provisions of this section exists shall include the significance criteria identified in Policy N 1.7 of the General Plan, the Land Use Compatibility Exterior Noise Exposure (Ldn) information in General Plan Table N-1, the Noise Level and Standards identified in Zoning Code Tables 3-3 and 3-4 as well as, but not limited to the criteria listed below:
(A) The level of noise;
(B) The intensity of the noise;
(C) Whether the nature of the noise is usual or unusual (D) Whether the origin of the noise is stationary and non-transportation or transportation noise; 146 of 814

EXHIBIT A

NOISE ORDINANCE AMENDMENTS
(E) The level and intensity of the background noise, if any; (F) The proximity of the noise to residential sleeping facilities; (G) The nature and zoning of the area within which the noise emanates; (H) The density of the inhabitation of the area within which the noise emanates; (I) The time of the day or night the noise occurs;
(J) The duration of the noise;
(K) Whether the noise is recurrent, intermittent or constant; (L) Whether the noise is produced by a commercial or noncommercial activity.

G. Special Noise Sources

1. Leaf Blowers
Offense. It is unlawful for any person to operate any gas-powered leaf blowers within City limits, except in industrial zones, between the hours of eight p.m. and eight a.m. on weekdays or between the hours of eight p.m. and nine a.m. on Saturdays and Sundays.

H. Violation
Any violation of this chapter may be enforced either as an infraction or as a misdemeanor, or by any remedy available to the city under this code, or under state law. 147 of 814
Cotati City Council
Agenda Staff Report
Item type: PUBLIC HEARINGS (ACTION)
To: City Council
Subject: INTRODUCTION OF ORDINANCE AMENDING CHAPTER

2.22 OF COTATI MUNICIPAL CODE ESTABLISHING

COMMUNITY-POLICE ADVISORY COMMITTEE
Date: June 25, 2024
Written by: Chris Simmons, Chief of Police
Recommendation
It is recommended that the Cotati City Council introduce an ordinance amending and restating in its entirety Chapter 2.22 of the Cotati Municipal Code to establish and define guidelines for a Community-Police Advisory Committee.

Background
Cotati City Councilmembers have expressed an interest in exploring additional forms of community involvement and oversight for the Cotati Police Department. Most notably, the reincorporation of some form of the currently dissolved/inactive Cotati Police Auxiliary Commission (Commission), as last outlined in Ordinance 638 and as currently defined in Chapter 2.22 of the Cotati Municipal Code, has been previously referenced at Council meetings.

This Commission has been inactive for almost thirty years.

Background information on the history of the then-Commission, regulations and policies currently governing and utilized by the Cotati Police Department, and types of oversight models that exist in other modern police agencies were detailed in the Cotati City Council Agenda Staff Report “Police Advisory and Oversight Options” submitted and presented to the City Council on May 28, 2024.

Analysis/Discussion
On May 28, 2024, the Cotati Chief of Police provided a presentation to the City Council on transparency, accountability, and community partnerships, as well as current trainings, policies, and procedures utilized by the Cotati Police Department. The presentation culminated with an 148 of 814
analysis of various police advisory and oversight models, including recommendations on the potential formation of a community-police advisory committee and what parameters might best be tailored for the Cotati Police Department.

As part of the May 28th presentation and staff report, the primary focus was on models that were advisory, as staff believed these models were more likely to be feasible in the context of limited staffing and resources. It was proposed that the City Council consider the following recommendations:

Community-Police Advisory Group
• Advisory only. No delegated investigatory or budget authority. • Duties. Development of community policing concepts, increasing public awareness, and addressing police/community relations regarding the public safety of the entire community. Detailed discussions, as permitted by law, to consist of:
o Notable Crime Trends, enforcement initiatives
o Use of Force – Statistics, types, summaries, reasons
o Complaints – Statistics, allegations, summaries, findings/outcomes o Notable Community events & Engagements, receive input/suggestions on ways to better engage with the community and provide assistance. o Arrest & Crime Statistics – summaries of notable incidents/contacts o Trainings
o Participation in interview panels for the Police Chief • Membership
o 5 members. Required to be a Cotati resident or Cotati business owner in good standing. Encourage members to be diverse: business community, resident, faithbased community, gender, race. o Selection by application and interview panel. The interview panel could consist of one or two councilmembers, city manager and police chief. o 2-year terms, with staggered initial terms. Removal by majority vote of City Council. Include provision for automatic resignation if member is unexcused for a defined number of meetings as well as a number of consecutive meetings. o Minimum requirements and training for commission members: ‘ride along” after selection, cannot be city employees or household, disqualification for felony conviction, crimes/incidents of moral turpitude, attorney involved in cases with law enforcement, involvement in criminal/civil cases with the City of Cotati. • Recommended Meeting Frequency
o Quarterly, with special meetings more often as needed. • Brown Act vs. Not Brown Act
o Committees created by a formal action of the legislative body (e.g.: City Council) is a Brown Act body, so this type of body is likely subject to the Brown Act. o Brown Act meetings are public and noticed, with meeting minutes taken.

However, it is anticipated that members will not be required to provide financial disclosures to the FPPC or enroll in mandated trainings.

It was further recommended that this group report at least annually to the City Council on its 149 of 814
activities.

Following these recommendations from staff, Councilmembers discussed specific desires for establishing a police advisory committee that generally followed the recommendations of staff, but also highlighted certain components that should potentially be modified or clarified, most notably to include the committee operating within the parameters of Brown Act meeting requirements. Other comments from Councilmembers included three-year staggered terms for committee members and panelists for selecting and appointing committee members be comprised of two councilmembers and the City Manager. The proposed ordinance reflects staff recommendations as well as the incorporation of Councilmembers’ discussions and comments that were distinct from the initial staff recommendations.

It is recommended that Councilmembers consider the attached proposed ordinance that restates and amends Chapter 2.22 of the Cotati Municipal Code in its entirety and establishes a PoliceCommunity Advisory Committee.

Once the ordinance is in effect, the City will begin recruitment for the committee, draft by-laws and set up the administrative support for a new Brown Act body.

Financial Considerations
As the City Council has directed staff to develop an ordinance for a police advisory group considerably similar to the staff recommendations, staff believe that this can be accommodated within the existing staffing and budget. Nevertheless, even this advisory committee will result in increased staff commitments that will not be available for other city operations or projects.

Expected staff time commitments include managing the advisory group, running meetings, increased data extraction, analysis, formatting, reporting, and presenting. Although the addition of the new records analyst position has greatly helped to streamline the process of mining and charting some limited data and information, the continuous mining of data and the analytics associated with providing enhanced details of such data, particularly if it expands over time, will have greater financial impacts in the future, potentially requiring additionally funded positions or designated funding streams to contract-out to those firms able to achieve more robust data reporting and analysis. Brown Act meetings will further generate additional staff commitments and expenses.

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 sections 15378 and 15061(b) (3).

Attachments:

Community-Police Advisory Committee Ordinance
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ORDINANCE NO.

ORDINANCE AMENDING CHAPTER 2.22 OF THE COTATI MUNICIPAL CODE IN

ITS ENTIRETY TO REPLACE THE COTATI POLICE AUXILIARY COMMISSION

WITH A COMMUNITY-POLICE ADVISORY COMMITTEE
WHEREAS, Ordinance 214 was adopted on February 18, 1975 establishing a Community-Police Advisory Commission, codified within Chapter 2.22 of the Cotati Municipal Code; and
WHEREAS, Chapter 2.22 was, thereafter, amended in 1987 (Ordinance 475) and gain in 1995 (Ordinance 638) to re-define the roles of what ultimately became known as the Cotati Police Auxiliary Commission; and
WHEREAS, on May 24, 1995, the Cotati Police Auxiliary Commission was dissolved, with no similar advisory group in effect since that date; and WHEREAS, in discussions over recent years, the Cotati City Council has expressed a desire to re-establish an advisory committee with the Cotati Police Department in order to further enhance community and police relations; and
WHEREAS, on May 28, 2024, the Cotati Chief of Police provided a staff report and subsequent presentation and recommendations for a community-police advisory committee to the City Council; and
WHEREAS, on May 28, 2024, the Cotati City Council discussed and defined guidelines and parameters for the creation and establishment of a new Community-Police Advisory Committee.

NOW THEREFORE THE CITY COUNCIL OF THE CITY OF COTATI DOES ORDAIN AS FOLLOWS:

SECTION 1: Recitals. The above recitals are hereby declared to be true and correct findings of the City Council of the City of Cotati.

SECTION 2: Amendments to Chapter 2.22 of the Cotati Municipal Code.

Chapter 2.22 of the Cotati Municipal Code is hereby retitled, amended and restated in its entirety to read as follows:

Chapter 2.22

COMMUNITY-POLICE ADVISORY COMMITTEE
Sections:

2.22.010 Created – Defined.

2.22.020 Purpose and objectives.

2.22.030 Membership and term of office.
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2.22.040 Committee Chairperson and Vice-Chairperson selection.

2.22.050 Meetings.

2.22.060 Removal from office.

2.22.070 Duties.

2.22.080 Staffing.

2.22.090 Qualifications.

2.22.010 Created – Defined.

This ordinance shall be known as the “Community-Police Advisory Committee Ordinance.” The Community-Police Advisory Committee is created and established. The term “Committee” shall refer to the Cotati Community-Police Advisory Committee. The police auxiliary commission is hereby dissolved.

2.22.020 Purpose and objectives.

The purpose and intent of the Committee is to serve as an advisory committee for the City Council to further community partnerships with the Cotati Police Department in a constructive way, provide an advisory forum for discussions between community group members and the Chief of Police, afford a platform for direct community feedback about public safety, and involve citizens in community based safety programs as defined by the City Council, City Manager, and Chief of Police.

2.22.030 Membership and term of office
A. The Committee shall consist of five members, selected through an application process and interview panel comprised of two City Council members and the City Manager.

B. The term of each member shall be three years after the initial appointments. Of the five members initially appointed, two shall be for a term of two years and three shall be for a term of three years.

C. All terms of office shall commence of January 1st of the year of appointment. Any unexpected vacancies on the Committee shall be filled for the unexpired term in the same manner in which regular appointments are otherwise made.

2.22.040 Committee Chairperson and Vice-Chairperson selection.

The Chairperson of the Committee shall be elected by a majority vote of Committee members in January of each year. A Vice-Chairperson to serve in the absence of the Chairperson shall likewise be elected in January of each year.

2.22.050 Meetings
A. The Committee shall meet regularly and no less than once every quarter (once every three months throughout a calendar year). Meetings shall be held at City Hall in the City Council 152 of 814
chambers, unless otherwise authorized by the City Council. Special meetings of the Committee may be called by the Chairperson or three members of the Committee.

B. A majority of appointed Committee members shall constitute a quorum for any transaction of business that would require a vote.

C. The time and place of all Committee meetings shall be posted in advance, with meetings open to the public according to state law.

2.22.60 Removal from office
Any of the Committee members may be removed at any time by a majority vote of the City Council. If a member of the Committee does not attend two regular meetings in any twelvemonth period, his or her membership shall automatically be terminated. His or her successor shall be appointed in the same manner in which regular appointments are otherwise made.

2.22.070 Duties
A. To act as a liaison between the community, the Cotati Police Department, the City Manager, and City Council
B. To assist in the development of community policing concepts that increase public awareness and address community-police relations regarding public safety.

C. To engage in discussions, as permitted by law, to include the following:
a. Arrest and crime statistics
b. Use of force statistics and summaries
c. Complaint statistics, allegations and findings/outcomes d. Notable crime trends and public safety initiatives
e. Notable community events and engagements
f. Giving and receiving input and suggestions on ways to better engage with the community
g. Police trainings
D. To have the Chairperson or delegated Committee member appointed by the Chairperson participate in oral boards and/or panels for applicants to the positions of Chief of Police and Police Lieutenant.

E. To report annually to the City Council on the Committee’s activities.

2.22.080 Staffing
A. All departments of the City, through the office of the City Manager, shall, when reasonably practicable and in accordance with law, furnish necessary existing public information and data, as well as provide technical assistance and advice as needed, to aid the Committee in the performance of their designated duties.

B. The City Manager shall provide or cause to be provided adequate staff to help maintain records for the Committee.

2.22.090 Qualifications
A. During the selection process for Committee members, City Council and the City Manager are encouraged to seek a diverse pool of applicants who reflect and represent multiple races, ethnicities, genders, orientations, backgrounds, and perspectives from the community, to include residents, business owners, faith-based members, and community and public safety advocates.
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B. Applicants for the Committee will be required to submit to a criminal screening investigation conducted by the Cotati Police Department prior to appointment. Applicants who do not meet this requirement will not move forward in the process and be appointed to the committee.

C. Applicants and Committee members shall not have a history involving incidents of violence or moral turpitude, defined as one who engages in behavior, actions, and/or criminal conduct with the intent to deceive, defraud, or harm another person, or have been convicted of a felony.

D. Inquiries into a Committee member’s history may be made by the City Manager or their designee after appointment to ensure public safety.

E. Committee members shall not be city employees or members of an employee’s household, attorneys involved in cases with law enforcement, nor involved in any criminal, civil, or administrative cases with the City of Cotati or the Cotati Police Department.

F. Committee members shall participate in a “ride along” and training with the Cotati Police Department within (3) three months of appointment.

G. Committee members who do not meet the above requirements to serve on the committee shall be automatically removed.

SECTION 3: Compliance with the California Environmental Quality Act. This Ordinance is categorically exempt from environmental review pursuant to the California Environmental Quality Act (“CEQA”) Guidelines Sections 15061(b) (3) and 15378 in that neither the Ordinance nor its implementation could foreseeably have any significant effect on the environment.

SECTION 4: Severability. The provisions of this Ordinance are severable and if any provision, clause, sentence, section, word or part thereof is held to be illegal, unconstitutional or inapplicable to any person or circumstance, such illegality, unconstitutionality, or inapplicability shall not affect or impair any of the remaining provisions, clauses, sentences, sections, words or parts thereof of this Ordinance or their applicability to other persons or circumstances.

SECTION 5: Judicial Review. The time within which judicial review must be sought is governed by California Government Code Section 65009.

SECTION 6: Posting. The City Clerk shall cause this ordinance to be published and/or posted within fifteen days after its adoption.

SECTION 7: Effective Date. This Ordinance shall take effect 30 days following its adoption.

IT IS HEREBY CERTIFIED that the foregoing ordinance was introduced at a regular meeting of the City Council of the City of Cotati held on June 25, 2024, by the following vote, to wit:

RESULT:

MOVER:

SECONDER:

AYES:
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IT IS HEREBY CERTIFIED that the foregoing ordinance was duly adopted at a regular meeting of the City Council of the City of Cotati held on July 9, 2024, by the following vote, to wit:

RESULT:

MOVER:

SECONDER:

AYES:

Approved:___________________________
Mayor
Attest:______________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:
______________________________
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
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Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: CONSIDERATION OF A RESOLUTION AUTHORIZING THE

CITY MANAGER TO ENTER INTO AN EXCLUSIVE

NEGOTIATING AGREEMENT WITH FREEBIRD

DEVELOPMENT LLC FOR THE DEVELOPMENT OF CITY
OWNED PROPERTY AT 120 E COTATI AVENUE WITH

AFFORDABLE HOUSING
Date: June 25, 2024
Written by: Noah Housh, Director of Community Development Recommendation
It is recommended the City Council approve the attached resolution providing authorization to the City Manager to enter into an Exclusive Negotiating Agreement with Freebird Development LLC., subject to final review by the City Attorney, for the development of City-owned property at 120 E.Cotati Avenue with a 100-percent affordable housing project.

Background
In 2021, the City of Cotati approved a three-story mixed-use project consisting of 27 residential units and 10,400 square feet of commercial space on three parcels totaling 0.86 acres at 120 E.

Cotati Avenue. This project was never built.

On March 1, 2022, Steve Leonard of Northbay Housing filed an SB 35 development application proposing to develop a 5-story, 60-foot tall, 70-unit multi-family housing project on the three parcels located at 120 E Cotati Avenue.

In summer of 2023, while still in the SB 35 review process, Mr. Leonard indicated an interest in selling the property.

On December 12, 2023, following a closed session discussion, the Cotati City Council directed staff to initiate purchase of the property at 120 E. Cotati Avenue with funding sourced from the Affordable Housing Fund. The City took ownership of this property in late 2023. 156 of 814
On February 13, 2024, the City council determined that the property at 120 E. Cotati Avenue was “exempt surplus land” and provided direction to staff to issue an Request for Qualifications seeking a qualified developer to partner with the City to develop 120 E. Cotati Avenue with a 100-percent affordable housing project. This RFQ was issued on March 21, 2024, to over 170 individuals and firms who have expressed interest in developing affordable housing within the State.

On April 30, 2024, City staff received a Developer Qualification statement from Freebird Development LLC, the only party to respond to the RFQ. After reviewing the statement, an internal panel of City staff determined that Freebird Development was adequately qualified and well versed in the development of affordable housing.

On May 30, 2024, City staff interviewed Freebird Development LLC ownership and their development partners and confirmed their qualifications and development acumen.

Analysis/Discussion
After reviewing the qualifications and references of Freebird Development LLC and meeting with their development and management team, City staff is supportive of moving forward with a negotiating agreement to formally partner with their team on the development of 120 E. Cotati Ave with a 100-percent affordable housing project. Freebird put together a thorough and responsive statement, addressing each element of the RFQ. Further, their concept project thoughtfully balances known community concerns such as overall building scale, massing and parking, against the goals of efficient use of the site to achieve City goals regarding housing. The Freebird team is a joint-venture of affordable housing veterans with a demonstrated ability to deliver on projects locally.

The conceptual project envisioned in the response package is a three-story, 52-unit mixed-use development. The site design includes approximately 8,200 square feet of ground floor commercial/non-residential space fronting onto La Plaza and E. Cotati Avenue, with a 56-space enclosed parking lot behind. Two stories of residential units proving a mix of size and bedroom count, served by an outdoor second floor courtyard would be constructed above. Residents would have on-site laundry and a community room provided as additional amenities. The complete response package, RFQ and draft negotiating agreement are attached for review.

It is worth noting that the property at 120 E. Cotati Avenue was purchased by the City using funding from the Affordable Housing Fund. This funding source, combined with the requirements of the Surplus Land Act, require that the City owned property be developed with affordable housing. The specific affordability levels and unit counts are subject to various factors including zoning, funding sources and development capacity of the property.

The draft Exclusive Negotiating Agreement (ENA) is attached for reference. This agreement template is based on the completed ENA between the City of Healdsburg and Freebird for a similar development in Saggio Hills. The ENA is intended to hold the property for Freebird for a defined time period and subject to certain performance standards during the due diligence and entitlement phases of the project. Ultimately, presuming the project becomes entitled, the ENA 157 of 814
will be replaced by a Development and Disposition Agreement (DDA) which will contain the mutual project commitments between the City and the developer. On the draft ENA, the text highlighted in yellow are still subject to final discussions between staff and the developer, subject to review of the full agreement by the City Attorney.

Financial Considerations
.Engagement with a qualified development partner to develop the property at 120 E. Cotati Avenue is not anticipated to have any significant direct impacts on the general fund, in the current (FY23/24) or future fiscal year (FY24/25). The RFQ identified the City goal of minimizing subsidy of future development of the property to the granting of the property.

However, financing of affordable housing is challenging and notoriously complex, so future request for additional support of an affordable housing development project on the site may occur. Additionally, there will be some limited staff time required to support the project beyond the costs of entitlements. Lastly, it is anticipated some project-related billing from the City Attorney’s office will be necessary to ensure all requirements are met. However, all dedicated time is anticipated to be within adopted FY 24/25 budget and will largely be cost recovery.

Environmental Issues
This action is exempt from the California Environmental Quality Act (CEQA) because entering into a negotiating agreement 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. Future development of the project site will require separate environmental analysis under CEQA. 158 of 814
RESOLUTION NO. (XX)

RESOLUTION OF THE COTATI CITY COUNCIL AUTHORIZING THE CITY

MANAGER TO NEGOTIATE AND ENTER INTO AN EXCLUSIVE NEGOTIATING AGREEMENT WITH FREEBIRD DEVELOPMENT LLC. FOR THE
DEVELOPMENT OF 120 E. COTATI AVENUE WITH A 100-PERCENT

AFFORDABLE HOUSING PROJECT
WHEREAS, the City of Cotati is the owner of three parcels of real property in the City of Cotati legally described as per Map recorded June 7, 1983 in Book 10, Pages 8 of Official Records, in the City of Cotati, County of Sonoma, State of California, APNs 144-274-014, 144- 274-015 and 144-274-002 as shown on the map on the attached Exclusive Negotiating Agreement (ENA) as Exhibit A and incorporated herein by this reference (“Property”); and WHEREAS, on March 30, 2024, the City issued a Request for Qualifications for the development of affordable housing, as defined and described in the City of Cotati Zoning Ordinance, on the Property (the “Project”) and the City is interested in exploring the feasibility of the Project with Freebird Development LLC as a potential developer of the Project; and WHEREAS, it is anticipated that the Project will include a range of 40-55 units at a mix of unit sizes and affordability levels, on-site parking, indoor amenity space including a community room, a lobby, laundry facilities and potentially a property management office and commercial space on the ground floor fronting onto La Plaza and East Cotati Avenue, with all units affordable to households with incomes not to exceed 120% of median income for Sonoma County, California, adjusted for actual household size appropriate for the unit, and as published from time to time by the State of California Department of Housing and Community Development; and WHEREAS, the purpose of the Agreement is to establish procedures and standards for the negotiation by the City and the Developer of a Disposition and Development Agreement (“DDA”) pursuant to which the Developer will conduct specified development activities related to the Property and the City will convey the Property, subject to a restriction requiring development of Affordable Housing, upon satisfaction of and subject to certain conditions to be negotiated.

NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Cotati:

1. Finds that this action is exempt from the California Environmental Quality Act (CEQA) as entering into a negotiating agreement 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. Future development of the project site will require separate environmental analysis under CEQA.

2. Authorizes the City Manager to enter into an Exclusive Negotiating Agreement with Freebird Development LLC, subject to final review by the City Attorney, with the goal of developing 120 E. Cotati Avenue with a 100-percent affordable housing development. 159 of 814
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 June 25, 2024, by the following vote, to wit:

Approved:___________________________
Laura Sparks, Mayor
Attest:______________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:______________________________
John Bakker, City Attorney
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Negotiation Agreement v1 Agreement

EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT
(APNs 144-274-014, 144-274-015 and 144-274-002)
This Exclusive Negotiating Rights Agreement (“Agreement”) is entered into as of this XXX, 2024 by and between the City of Cotati, a California municipal corporation (“City”) and Freebird Development Company, LLC, a California limited liability company (“Developer”). City and Developer may be referred to individually as a “Party” or collectively as the “Parties” or the “Parties to this Agreement.”

RECITALS
A. The City of Cotati is the owner of three parcels of real property in the City of Cotati legally described as per Map recorded June 7, 1983 in Book 10, Pages 8 of Official Records, in the City of Cotati, County of Sonoma, State of California, APNs 144-274-014, 144-274-015 and 144-274- 002 as shown on the map attached to this Agreement as Exhibit A and incorporated herein by this reference (“Property”).

B. On March 30, 2024, the City issued a Request for Qualifications for the development of affordable housing, as defined and described in the City of Cotati Zoning Ordinance, on the Property (the “Project”). The City is interested in exploring the feasibility of the Project and has selected the Developer as a potential developer of the Project.

C. It is anticipated that the Project will include a range of 40-55 units, with a mix of unit sizes and affordability levels. The Project is also anticipated to include on-site parking, and indoor amenity space including a community room, a lobby, laundry facilities and a property management office.

Commercial space on the ground floor fronting onto La Plaza and East Cotati Avenue is also desired. Outdoor recreation areas are anticipated to include one or more courtyards, with pedestrian and bike infrastructure anticipated to be included along the project frontage.

Developer acknowledges that the deed for the Property is likely to contain a restrictive covenant that the Property shall be developed as affordable housing, as defined and described in the City of Cotati Zoning Ordinance, and thus the Project is to be affordable to households with incomes not to exceed 120% of median income for Sonoma County, California, adjusted for actual household size appropriate for the unit, as determined by the U.S. Department of Housing and Urban Development pursuant to Section 8 of the United States Housing Act of 1937 and as published from time to time by the State of California Department of Housing and Community Development in Section 6932 of Title 25 of the California Code of Regulations or successor provision published pursuant to California Health and Safety Code Section 50093 (c).

Accordingly, the Project will be subject to one or more agreements restricting the sale and/or rental and occupancy of residential units to eligible households.

D. The purpose of this Agreement is to establish procedures and standards for the negotiation by the City and the Developer of a Disposition and Development Agreement (“DDA”) pursuant to which the Developer will conduct specified development activities related to the Property and the City will convey the Property, subject to a restriction requiring development of Affordable Housing, upon satisfaction of and subject to certain conditions to be negotiated. The Developer acknowledges and agrees that this Agreement in itself does not grant the Developer the right to develop the Project, nor does it obligate the Developer to any activities or costs to develop the Project, except for the preliminary analysis and negotiations contemplated by this Agreement. 162 of 814
«-

AGREEMENT
Now, therefore, in consideration of the mutual covenants and agreements set forth below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

EXCLUSIVE NEGOTIATIONS RIGHT

1. Good Faith Negotiations. The City and the Developer shall negotiate diligently and in good faith, during the Negotiating Period described in Section 2, the terms of a DDA for the development of the Project on the Property. During the Negotiating Period, the Parties shall use good faith efforts to accomplish the respective tasks outlined in the Work Plan Scope and Schedule set forth in Exhibit B to this Agreement to facilitate the negotiation of a mutually satisfactory DDA.

2. Negotiating Period. The exclusive negotiating period (“Negotiating Period”) under this Agreement shall be twelve (12) months, commencing on the date this Agreement is fully executed. The Negotiating Period shall be automatically extended for an additional twelve (12) months if, prior to the expiration of the Negotiating Period, Developer notifies City in writing that the Property is suitable for development pursuant to Section 10 (a) of the Work Plan Scope and Schedule set forth in Exhibit B to this Agreement. If Developer notifies City that the Property is not suitable for development, then this Agreement shall terminate in accordance with Section 10 (a) of the Work Plan Scope and Schedule set forth in Exhibit B to this Agreement.

The Negotiation Period may also be extended for up to two additional periods of six (6) months each upon presentation of a written request from the Developer together with a schedule of tasks to be accomplished during the additional period. Granting of such extension(s) shall be at the discretion of the City Manager and shall only be effective upon the execution of an amendment to the Agreement.

If a DDA has not been executed by the City and the Developer by the expiration of the Negotiating Period, then this Agreement shall terminate and neither Party shall have any further rights or obligations under this Agreement, except as set forth in Section 4 and Section 11. If a DDA is executed by the City and the Developer during the Negotiating Period, upon such execution, this Agreement shall terminate, and all rights and obligations of the Parties shall be as set forth in the executed DDA.

It is anticipated that, during the Negotiating Period, the Developer will meet with Planning and other City officials to determine scope of project and land use approval process, complete property due diligence, conduct community outreach, complete schematic design, secure entitlements and any required environmental review, and refine proforma and financing plan. The City will cooperate with Developer’s efforts to accomplish the above tasks with the goal of negotiating and executing a mutually acceptable DDA prior to the expiration of the Negotiating Period.

3. Exclusive Negotiations. During the Negotiating Period, the City shall not negotiate with any entity, other than the Developer, regarding development of the Property, or solicit or entertain bids or proposals to do so.

4. City Consulting Costs Deposit. The Developer acknowledges that the City shall expend resources in the negotiation of the DDA and performance of the tasks provided in the Work Plan Scope and Schedule attached hereto as Exhibit B. In order for this Agreement to remain in effect, the Developer shall submit to the City as a good faith and initial third-party consultant costs 163 of 814 «-
deposit, the sum of TWENTY-FIVE THOUSAND Dollars ($25,000) (“Deposit”) to be paid within thirty (30) calendar days following execution of this Agreement by the City and the Developer. The Deposit shall be placed in a separate City deposit account. Said deposit account shall not accrue interest.

The City shall have no obligation to begin negotiation of the DDA or to retain third-party consultants until the Developer delivers the Deposit to the City.

The Deposit may be used by the City to pay for the City’s third party consultant costs and expenses in negotiating and preparing the DDA (collectively, the "Transaction Documents”). Such costs may include, but are not limited to, reasonable fees and services of third party consultants and attorneys, selected by the City at its sole discretion, relating to the Project and the preparation of the Transaction Documents (“Consultant Costs”). Developer acknowledges that City’s third party consultant costs include its city attorney services provided by the firm of Redwood Public Law, LLP, who will assist City with the negotiation and drafting of the DDA. Notwithstanding the foregoing, the amount of the fees for city attorney services related to this Agreement and the DDA that Developer shall be responsible for shall not exceed $XXXX.

Developer shall be responsible for all of the City’s Consultant Costs subject to the restrictions contained in this Section 4. Prior to City incurring Consultant Costs in excess of the Deposit, the City shall provide the Developer with a schedule of the Consultant Costs incurred to date and an estimate of the additional Consultant Costs anticipated to be incurred. The Developer shall reasonably approve or disapprove the Consultant Costs within seven (7) calendar days following the City’s submittal of the anticipated Consultant Costs. If Developer disapproves the City’s Consultant Costs, the City and Developer will meet and confer in good faith to evaluate the estimate and attempt to reach a compromise budget acceptable to both parties. The Developer shall deposit with the City the amount of the additional Consultant Costs as approved by the Parties within fourteen (14) calendar days of such approval. The additional amount shall be added to the Deposit. If the Parties are unable to agree on a compromise budget within sixty (60) calendar days of Developer’s disapproval of City’s Consultant Costs, then either Party may terminate this Agreement. The City shall be reimbursed for all additional Consultant Costs approved by the Developer and incurred by the City prior to the date of the termination of this Agreement. To the extent this Agreement is terminated prior to or as of the end of the Negotiating Period and the City has incurred Consultant Costs that are less than the Deposit, and Developer has negotiated in good faith and is not in breach of this Agreement, the City shall return the unexpended balance of the Deposit to the Developer along with an accounting of the Consultant Costs incurred by the City.

If this Agreement is terminated by the City due to a failure by the Developer to negotiate in good faith under this Agreement, the Deposit shall be retained by the City. Conversely, if this Agreement is terminated by the Developer due to a failure by the City to negotiate in good faith under this Agreement, the unexpended Deposit shall be returned to the Developer.

Following such termination and the return of the appropriate amount of the Deposit as provided in this Section 4, neither party shall have any further right, remedy or obligation under this Agreement; provided, however, that the Developer’s indemnification obligation pursuant to Section 11 shall survive such termination.

5. Identification of Developer Representative. The Developer’s representative to negotiate the DDA with the City is Robin Zimbler.
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-sGENERAL PROVISIONS

6. Limitation on Effect of Agreement. This Agreement shall not obligate either the City or the Developer to enter into a DDA or to enter into any particular DDA. By execution of this Agreement, the City is not committing itself to or agreeing to undertake acquisition, disposition, and exercise of control over any property, or any other act or activity requiring the subsequent independent exercise of discretion by the City. Execution of this Agreement by the City is merely an agreement to conduct a period of exclusive negotiations in accordance with the terms hereof, reserving for subsequent City and City Council action the final discretion and approval regarding the execution of a DDA and all proceedings and decisions in connection therewith. Any DDA resulting from negotiations pursuant to this Agreement shall become effective only if and after certification, adoption or approval of any analysis required under the California Environmental Quality Act (“CEQA”), and final approval of all land use entitlements required under the Cotati Municipal Code have been secured, and only if such DDA has been duly considered and approved by the City Council, following conduct of all legally required procedures, and executed by duly authorized representatives of City and Developer. Until and unless a DDA is signed by Developer, approved by the City Council, and executed by City, no agreement drafts, actions, deliverables or communications arising from the performance of this Agreement shall impose any legally binding obligation on either Party to enter into or support entering into a DDA or be used as evidence of any oral or implied agreement by either Party to enter into any other legally binding agreement.

Failure of the City Council to approve a DDA after a public hearing thereon shall not constitute a default or a breach of the terms of this Agreement by City.

This Agreement does not limit in any way the discretion of City in acting on any applications for required permits or approvals for the proposed Project or any portion thereof. The Parties acknowledge that compliance with CEQA will be required in connection with consideration of such permits and approvals required for the proposed Project or any portion thereof, and the City shall retain the discretion in accordance with CEQA and other applicable law before taking action on any such permits or approvals to (1) adopt or certify an environmental analysis of the Project or any portion thereof, prepared in accordance with CEQA, (2) identify and impose mitigation measures to mitigate significant environmental impacts, nor limit the anticipated scope of any required public improvements, (3) select other feasible alternatives to avoid significant environmental impacts, including the “no project” alternative, (4) adopt a statement of overriding considerations in accordance with Public Resources Code Section 21081(b) relative to any significant environmental impacts of the Project or any portion thereof, or implementation of any required public improvements, prior to taking final action if such significant impacts cannot otherwise be avoided, or (5) determine not to proceed with the Project or any portion thereof. Any action taken by the City in the exercise of its discretion relating to any analysis required by CEQA, or on any application for a permit or approval required to develop and construct the Project or any portion thereof, shall not constitute a default or a breach of the terms of this Agreement by City.

7. Notices. Formal notices, demands and communications between the City and the Developer shall be sufficiently given if, and shall not be deemed given unless, dispatched by certified mail, postage prepaid, return receipt requested, or sent by express delivery or overnight courier service, to the office of the Parties shown as follows, or such other address as the Parties may designate in writing from time to time:
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City: City of Cotati
City Hall
201 West Sierra Ave
Cotati, CA 94931
Attention: City Manager
Developer
:

Freebird Development Company, LLC
Broadway
Oakland, CA 94607
Attention: Robin Zimbler
Such written notices, demands and communications shall be effective on the date shown on the delivery receipt as the date delivered.

8. Costs and Expenses. Except for the Developer’s obligation to fund certain City consultant costs under Section 4, above, Project Entitlements under Section 4 of Exhibit B, and CEQA Documentation under Section 9 of Exhibit B, each Party shall be responsible for its owns costs and expenses in connection with any activities and negotiations undertaken in connection with this Agreement, and the performance of each Party’s obligations under this Agreement.

9. No Commissions. The City shall not be liable for any real estate commissions or brokerage fees that may arise from this Agreement or any DDA that may result from this Agreement. The City represents that it has engaged no broker, agent or finder in connection with this transaction, and the Developer shall defend and hold the City harmless from any claims by any broker, agent or finder retained by the Developer.

10. Defaults and Remedies.

1. Default. Failure by either Party to (i) negotiate in good faith as provided in this Agreement, (ii) perform and complete tasks within the time provided for their performance as set forth in the Work Plan Scope and Schedule attached as Exhibit B to this Agreement, or (iii) comply with any of their obligations under this Agreement shall constitute an event of default hereunder. The non-defaulting Party shall give written notice of a default to the defaulting Party, specifying the nature of the default and the required action to cure the default. If the required action to cure the default involves the payment of money, the defaulting party shall have thirty (30) calendar days from receipt of such notice to cure the breach, otherwise the defaulting Party shall have forty five (45) calendar days from receipt of such notice to cure such breach; provided, however, if such breach or failure cannot reasonably be cured within such forty five (45) calendar day period and the defaulting Party has commenced the cure within such forty five (45) calendar day period and thereafter is diligently working in good faith to complete such cure, the defaulting Party shall have such longer period of time as may reasonably be necessary to cure the breach or failure, provided, however, in any event such breach or failure shall be cured within ninety (90) calendar days. If a default remains uncured after receipt by the defaulting party of such notice and the passing of time as set forth herein to cure such default, the non-defaulting Party may exercise the remedies set forth in subsection 2.
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2. Remedies. In the event of an uncured default by the City, the Developer’s sole remedy shall be to terminate this Agreement, upon which termination the Developer shall be entitled to the return of the uncommitted portion of the Deposit, as set forth in Section 4.

Notwithstanding anything to the contrary contained herein, in the event of such default, following notice and an opportunity to cure in accordance with subsection 1. above, Developer shall be entitled to (i) a return of the full Deposit in accordance with Section 4 of this Agreement, and (ii) all other rights or remedies available to it at law or in equity, provided that any monetary damages awarded to Developer as a result of such default shall not exceed the total amount of all actual, third party out-of-pocket costs reasonably incurred by Developer in connection with and after the date of this Agreement. Following any such termination and the return of the appropriate amount of the Deposit, neither party shall have any further right, remedy or obligation under this Agreement; provided, however, that the Developer’s indemnification obligation pursuant to Section 11 shall survive such termination.

In the event of an uncured default by the Developer, the City’s sole remedy shall be to terminate this Agreement and to retain any unexpended funds remaining in the Deposit.

Following such termination, neither Party shall have any right, remedy or obligation under this Agreement; provided; however, that the Developer’s indemnification obligation pursuant to Section 11 shall survive such termination.

Except as expressly provided above, neither party shall have any liability to the other for damages or otherwise for any default, nor shall either party have any other claims with respect to performance under this Agreement. Each party specifically waives and releases any such rights or claims they may otherwise have at law or in equity. 11 Developer’s Obligation to Indemnify City. Developer shall defend, indemnify, and hold harmless the City from and against all suits and causes of action, claims, losses, demands and expenses, including, but not limited to, reasonable attorneys’ fees and costs of litigation, damage or liability of any nature whatsoever, arising directly or indirectly, in whole or in part, are caused by, arise in connection with, result from, relate to, or are alleged to be caused by, arise in connection with performance of this Agreement on the part of the Developer or any contractor or subcontractor of the Developer; provided, however, that in no event shall Developer have any liability to the City for any claims, losses, demands or expenses arising from or relating to its ownership of the Property or any rights or obligations with respect to the Property, except to the extent caused by the negligence or willful misconduct of Developer or any contractor or subcontractor of the Developer. The Developer shall pay immediately upon the City’s demand any amounts owing under this indemnity. The duty of the Developer to indemnify includes the duty to defend the City, at the City’s choosing, to pay the City’s costs of its defense in any court action, administrative action, or other proceeding brought by any third Party arising in any manner by reason of or incident to the performance of this Agreement on the part of the Developer or any contractor or subcontractor of the Developer. The City shall have the right to approve any attorneys retained by the Developer to defend the City pursuant to this Section 11 and shall have the right to approve any settlement or compromise. The Developer’s duty to indemnify the City shall survive the termination of this Agreement. Notwithstanding the above, the Developer shall have no obligation to defend, indemnify or hold harmless the City, for any and all suits and causes of action, claims, losses, demands and expenses caused by, arising from, or related in any part to, any gross negligence, fraud or misconduct on the part of the City or its employees, agents, assigns, officers, or officials.
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12. Compliance with Laws. Developer shall comply with all applicable laws and regulations of the federal, state and local government, including but not limited to the Cotati Municipal Code.

13. Nonliability of Officials, Officers, Members, and Employees. No member, official, officer, or employee of the City shall be personally liable to the Developer, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Developer or to its successor, or on any obligations under the terms of this Agreement.

No member, officer, or employee of the Developer shall be personally liable to a‹ city, or any successor in interest, in the event of any default or breach by the Developer or for any amount which may become due to the City or to its successor, or on any obligations under the terms of this Agreement.

14. Lobbying Prohibition. Developer agrees and acknowledges that the negotiations of a DDA shall take place with the City Manager, acting by and through his or her staff, and the City’s legal, financial and planning advisers and such other City parties as may be designated by the City Manager from time to time (collectively, the “City-Designated Team”). Developer shall not engage in any material discussions, negotiations or lobbying of any City Council or Planning Commission members or other City employees or officials as may be designated by the City Manager from time to time (collectively, “Excluded City Parties”) with regards to the Project or DDA, unless authorized or requested to do so by the City-Designated Team for specific purposes related to the negotiations. Nothing in this Section 14 shall prevent: (1) responses to requests for information from one or more Excluded City Parties, provided such responses are directed to the City-Designated Team; (2) Developer’s participation in any question-and-answer sessions, workshops, or tours approved in writing by the City-Designated Team; or (3) Developer’s participation in public events or community forum at which one or more Excluded City Parties are present, provided Developer does not engage in communications with such Excluded City Parties at such events that are intended to influence the negotiations of the DDA.

15. Ballot and Legislative Measures. Developer expressly agrees and acknowledges that it shall not initiate, promote, support or pursue, or authorize any other person or party to initiate, promote, support or pursue, any ballot or legislative measure relating to the Project without the prior consent of the City as evidenced by City Council resolution.

16. Assignment. The Developer shall not assign its rights or responsibilities under this Agreement, in whole or in part, except with the written consent of the City which may be granted or denied in its sole discretion. Any attempted assignment without such prior written consent shall be invalid and void.

17. No Third-Party Beneficiaries. This Agreement shall not be construed to be an agreement for the benefit of any third party or parties and no third party or parties shall have any claim or right of action under this Agreement for any cause whatsoever.

18. Governing Law/Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California with venue in the Superior Court of Sonoma County, California.

19. Attorneys’ Fees/Costs. In the event any action or proceeding is brought to enforce or interpret any provision contained herein or as the result of any alleged breach thereof, each Party shall be responsible for their own fees, costs and expenses incurred, including any and all attorneys’ fees.

20. Entire Agreement. This Agreement, including the Exhibits, contains all the agreements, representations and understandings of the Parties, and supersedes and replaces any previous agreements, representations and understandings, whether oral or written.

21. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same agreement.

The Parties acknowledge and accept the terms and conditions of this Agreement as 168 of 814
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evidenced by the following signatures of their duly authorized representatives, to be effective as of the date executed by the last of the Parties.
(signatures on following page)
DEVELOPER:

FREEBIRD DEVELOPMENT COMPANY, LLC,
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Dated:

By:

Name: Robin Zimbler
Title: Manager
Local Address: 111 I Broadway
Oakland, CA 94607
Email Address: [email protected]
Telephone: 510-319-6959
CITY:

CITY OF COTATI, a California municipal corporation
Dated:

By:

Name: Damien O’Bid
Title: City Manager
Local Address: 201 West Sierra Ave
Cotati, CA 94931
Email Address: [email protected]
Telephone: 707-665-3621

APPROVED AS TO FORM
John Bakker,
City Attorney
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EXHIBIT A

LEGAL DESCRIPTION AND MAP OF PROPERTY
APN 144-274-002-000, 144-274-014-000 and 144-274-015-000

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF COTATI, COUNTY OF SONOMA, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:

Parcel One (APN: 144-274-014-000):

Lots 7, 8 and 9, Block 3, as shown upon the Map entitled "Plan of the Townsite of Cotati, being Subdivision No. 6, Rancho Cotati, Sonoma County, California, the property of the Cotati Company", filed in the Office of the County Recorder of Sonoma County, California, on June 7, 1983 in Book 10 of Maps, Page 8.

Excepting therefrom all that portion conveyed to the County of Sonoma by Deed Dated May 2, 1966 and Recorded May 20, 1966 in Book 2210 of Official Records, Page 250, Serial No. J 98361, Sonoma County Records.

Parcel Two (APN: 144-274-015-000):

Lots 10, 11 and 12, in Block 3, as shown upon the Map entitled "Plan of the Townsite of Cotati, being Subdivision No. 6, Rancho Cotati, Sonoma County, California, the property of the Cotati Company", filed in the Office of the County Recorder of Sonoma County, California, on June 7, 1983 in Book 10 of Maps, Page 8.

Parcel Three (APN: 144-274-002-000):

Lot 13, in Block 3, as shown upon the Map entitled "Plan of the Townsite of Cotati, being Subdivision No. 6, Rancho Cotati, Sonoma County, California, the property of the Cotati Company", filed in the Office of the County Recorder of Sonoma County, California, on June 7, 1983 in Book 10 of Maps, Page 8
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172 of 814
Exhibit B
SF #4820-7886-7668 vl0 -lEXHIBIT B

WORKPLAN SCOPE AND SCHEDULE
l. Overview. To facilitate negotiation of the DDA, the Parties shall use good faith efforts to accomplish the tasks set forth in this Exhibit B within the timeframes set forth herein which are intended to support the negotiation and execution of a mutually acceptable DDA prior to the expiration of the Negotiating Period (the “Work Plan Scope and Schedule”). The City Manager may agree on behalf of the City to modifications to the time periods established herein to complete certain tasks provided, however, in no event shall there be any modification to the Due Diligence Period or Negotiation Period beyond the time periods as may be authorized by the City Manager pursuant to Section 2 of the Agreement without the approval of the City Council. The Parties agree that failure of a Party to perform and complete a task within the timeframe set forth in this Work Plan Scope and Schedule shall constitute a default as contemplated in Section 10 of the Agreement.

2. Conceptual Plans: Site Plans and Scope of Development. By no later than December 31, 2024, the Developer shall prepare and submit to City staff for their review and comment a proposed site plan identifying the size and shape of the parcels which comprise the Property, the location of the Project improvements, including the public sidewalk and street light improvements, and location and number of vehicular points of ingress and egress to the Developer Parcels, to be constructed on each of the Development Parcels (“Site Plans”). Developer shall also prepare and submit to the City staff for their review and comment a detailed written description of the intended scope of development on the Property, including but not limited to a description of land uses, building heights, density, number and size of units, bedroom and bathroom composition, anticipated affordability level per unit, on-site parking count, on-site open space, recreation and other Project amenities, public sidewalk and street light improvements, and location and number of vehicular points of ingress and egress to the Developer Parcels (“Scope of Development”)(collectively, the Site Plans and Scope of Development means the “Conceptual Plans”). No later than thirty (30) calendar days following receipt of the Conceptual Plans, City staff shall arrange a meeting between City staff and Developer and its design consultants to meet and discuss City suggestions, recommendations and comments related to the Conceptual Plans, which Developer shall consider in good faith.

3. Community Presentation. Within ninety (90) calendar days after the review of the Conceptual Plans provided in Section 2 of this Exhibit B above, Developer shall thereafter prepare and submit to City staff an administrative draft of the proposed conceptual design development drawings for the Project, which must include, at minimum, a dimensioned and 173 of 814
Exhibit B
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detailed site plan, dimensioned floor plans, roof plan, parking and circulation plan, site sections that show the adjacent streets and heights of each building story, elevations of all sides of the proposed Project, renderings, color boards, material samples, sketches showing the massing of the buildings, and tabulation of uses and areas (“Community Presentation Packet”). No later than thirty (30) calendar days after receipt of the Community Presentation Packet, City staff shall review and provide suggestions, recommendations and comments to Developer on the Community Presentation Packet. Developer shall be available to meet with City staff during its review of the Community Presentation Packet. Developer shall thereafter consider City comments in good faith and revise its Community Presentation Packet in response to City staff comments, if any, and resubmit to City staff within (30) thirty calendar days following receipt of City staff comments.

After City staff have reviewed and commented on the resubmittal, as and if necessary, Developer shall revise the Community Presentation Packet and resubmit to the City. Upon acknowledgement from City staff that all comments on the Community Presentation Packet have been satisfactorily addressed, Developer shall thereafter make no less than two presentations to the community and key stakeholders of the proposed Project for input on Project design and operations.

4. Project Applications. Within ninety (90) calendar days after completing the presentations to the community and key stakeholders, Developer shall prepare and submit complete planning applications to the City, and shall be responsible to pay all costs, fees and expenses associated therewith, to secure all planning and development permits a required for the Project pursuant to the Cotati Municipal Code (“Project Entitlements”). Prior to submitting its planning applications with the City for the Project Entitlements, Developer and City staff shall meet to identify and confirm all required permits to be applied for and all information and materials to be submitted in connection therewith.

Developer acknowledges that the Property shall be subject to a deed restriction imposed by City requiring affordable housing to be constructed onsite. Additionally, without the express written consent of the City, which may be granted or denied in its sole and reasonable discretion, Developer shall not seek, request or apply for, and City shall have no obligation to consider or grant an application pursuant to California Government Code §65913.4. Further, with the consent of the City, which may be granted or denied in its reasonable discretion, Developer may seek, request or apply for affordable housing incentives or concessions as provided by the Cotati Municipal Code or California Government Code §65915 et.seq..

5. Priority Housing Obligations. Developer acknowledges that pursuant to the City’s local preference Policy, to the extent permitted by applicable law and the Project’s funding sources, to establish a priority list for the initial purchasers and/or renters of the affordable housing that is built on the Development Parcels and offered for sale or rent, respectively, which lists shall provide priority to current residents or employees working within the City of Cotati, individuals or families with children whom attend Rancho Cotati school district facilities, members of the Graton Rancheria Native American Tribe, and employees of Sonoma State University with respect to consideration of applications by such residents, employees, individuals or families, or tribal members to purchase or rent such affordable housing within the project, as applicable.

Subject to the limitations of applicable law, inclusive of Federal and State Fair Housing laws and those governing Federal and State Low Income Housing Tax Credit Laws and any other applicable requirements of the Project’s funding sources which may be applicable to the development of affordable housing on a Development Parcel, the Parties agree to make best efforts to include terms in the DDA between City and Developer to include a preference for initial purchasers and renters of affordable housing offered for purchase or rent thereon who are current residents or employees working within the City of Cotati, individuals or families with children whom attend Rancho Cotati 174 of 814 Exhibit B
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school district facilities, members of the Graton Rancheria Native American Tribe, and employees of Sonoma State University with respect to consideration of applications by such residents, employees, individuals or families, or tribal members.

City shall use good faith best efforts to determine whether such preferences are permitted by applicable law and the Project’s funding sources, including but not limited to providing a demographic analysis demonstrating sufficient evidence that such preferences will not cause a disparate impact on protected categories. In addition, City shall obtain HUD approval confirming that such preferences comply with federal fair housing law. In the event that City is unable to sufficiently evidence compliance with applicable laws and Project funding sources, or is unable to obtain HUD’s confirmation that the preferences comply with fair housing law, then such preferences shall not apply to the Project.

6. Developer Cooperation and Coordination with Adjacent Parcels. Developer acknowledges the adjacent parcels and shall plan the site to be sensitive to these neighborhoods.

7. Financing and Costs of Development.

As a component of the DDA the Developer shall provide the City with a detailed financial pro forma for the Project containing, among other matters, a detailed development budget setting forth the costs of the tasks to be undertaken by the Developer, and sources and uses of funds for acquisition of the Property and development of the Project. The financial pro forma will be used to evidence the financial feasibility of the Project, to discuss and evaluate the financial and operational components of the Project, including any requirements pertaining to the applicability of any prevailing wage requirements, to discuss and evaluate any affordable housing incentives or concessions requested by Developer in accordance with Section 4 above, and to develop a Term Sheet regarding the provisions of the DDA.

8. Developer Organizational Documents. No later than sixty (60) calendar days prior to execution of a DDA, the Developer shall (i) provide the City with its organization documents as well as organization chart outlining key personnel’s roles and responsibilities, and (ii) submit to the City for its approval, copies of all operating agreements, joint venture agreements or other agreements between the members of the development entity, and such financial statements or tax returns reasonably required by the City to determine the Developer’s financial capability, excluding confidential or proprietary information.
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Exhibit B
-4-

9. Environmental Review. Subject to the limitations set forth in Section 6 of the Agreement, upon submission by Developer of a complete application for all Project Entitlements as contemplated in Section 4 above, the City shall make good faith efforts to engage the services of an environmental consulting firm (“CEQA Consultant”) within thirty (30) calendar days thereafter to commence the preparation of environmental documentation required by the California Environmental Quality Act (“CEQA”) (“CEQA Documentation”), for consideration of approval of the Project Entitlements and DDA. The Developer shall provide such information as may be required to enable the City and its CEQA Consultant to prepare or cause the preparation and consideration of any required CEQA Documentation and shall otherwise generally cooperate with the City and its CEQA Consultant to complete this task. The Developer shall be responsible for all costs associated with the preparation of the required CEQA Documentation. Within thirty (30) calendar days after the City has engaged the services of the CEQA Consultant, the City and Developer, in consultation with the CEQA Consultant, shall develop a schedule and timeline for the preparation and consideration of the CEQA Documentation, Project Entitlements and DDA (“Project Entitlement Schedule”). As is necessary and warranted, the City and Developer, in consultation with the CEQA Consultant, shall update the Project Entitlement Schedule from time to time. Notwithstanding the foregoing, in the event that the Project applies a streamlining ministerial approval process, as consented to by the City in its reasonable discretion, this Section 9 shall not apply.

10. Due Diligence. The Developer shall, at its sole cost and expense, conduct the following due diligence activities:
(a) Property Adequacy Determination. The Developer shall, within six (6) months from the date Developer is able to access the Property pursuant to Section 11 below (“Due Diligence Period”), determine whether the Property is suitable for development of the Project, taking into account the geotechnical and soils conditions; the presence or absence of toxic or other hazardous materials; the zoning of the Property; the massing of the proposed Project improvements; traffic, circulation and parking requirements, issues and constraints imposed on projects of this type that may affect site development; assessment of major public and private utility capacities and connections for providing service to the Project; assessment of site drainage; assessment of creek and wetland issues that may affect development of the Project; and assessment of any other environmental and regulatory factors that the Developer deems relevant. Developer shall, prior to the expiration of the Due Diligence Period, notify the City in writing whether, in the Developer’s judgment based on such investigations and analyses, the Property either is or is not suitable for development. If Developer determines and notifies City in writing that the Property is suitable for development, then this Agreement shall continue in effect. If Developer determines and notifies City in writing that the Property is not suitable for development, then this Agreement shall terminate and the remaining balance of the Deposit shall be immediately refunded to the Developer and neither Party shall thereafter have any further duties, obligations, rights, or liabilities under this Agreement.

If the Developer fails to provide any written notification to the City prior to the expiration of the Due Diligence Period regarding the suitability of the Property for development, then it shall be deemed that the Property is not suitable for development and this Agreement shall terminate and the remaining balance of the Deposit shall be immediately refunded to the Developer and neither Party shall thereafter have any further duties, obligations, rights, or liabilities under this Agreement. 176 of 814
Exhibit B
-5-
(b) Objections to Title. Within sixty (60) calendar days following the execution of this Agreement, the Developer shall cause Old Republic Title Company (“Title Company”) issue a Preliminary Title Report (the “Report”) on the Property to the Developer and the City. If the Developer objects to any exception appearing on the Report or should any title exception arise after the date of the Report, the Developer may object to such exception, provided such objection is made to the City in writing on or before the thirtieth (30*) calendar day following the date the Developer and the City receive the Report from Title Company. If the Developer objects to any exception to title, the City, within fifteen (15) calendar days of receipt of Developer’s objection, shall notify Developer in writing whether City elects to (i) cause the exception to be removed of record, obtain a commitment from Title Company for an appropriate endorsement to the policy of title insurance to be issued to the Developer, insuring against the objectionable exception, or decline to address the Developer’s objection to an exception to title. If City declines to address the Developer’s objection to an exception to title, the Developer, within fifteen (15) calendar days of receipt of City’s written notification may either terminate this Agreement or elect to take title subject to such exception. If Developer elects to terminate this Agreement pursuant to this subsection, the remaining balance of the Deposit shall be immediately refunded to the Developer and neither Party shall thereafter have any obligations to or rights against the other hereunder. If the Developer fails to provide any notification to the City regarding an objection to any exception to title prior to expiration of the time period set forth herein, the condition set forth in this subsection shall be deemed satisfied and this Agreement shall continue in effect. Notwithstanding the foregoing, City shall use best efforts to keep the Property free and clear of any new liens or encumbrances during the Negotiating Period.

11. Site Access. Within thirty (30) calendar days following execution of this Agreement, City shall use best efforts to execute an agreement to provide Developer and its consultants with rights to enter, examine and conduct tests on the Property, subject to such terms, conditions, indemnity and insurance requirements as may be reasonably required.

12. Reports. The Developer shall provide the City with copies of all reports, studies, analyses, correspondence and similar documents, but excluding confidential or proprietary information, prepared or commissioned by the Developer with respect to this Agreement and the Project, promptly following execution of this Agreement with respect to documents then in its possession or under its reasonable control, and promptly upon their completion with respect to any subsequently prepared documents. The City shall provide the Developer with copies of all reports, studies, analyses, correspondence and similar documents, but excluding confidential or proprietary information, prepared or commissioned by the City with respect to this Agreement and the Project, promptly following execution of this Agreement with respect to documents then in its possession or under its reasonable control, and promptly upon their completion with respect to any subsequently prepared documents.
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Exhibit B
-6-
While desiring to preserve its rights with respect to treatment of certain information on a confidential or proprietary basis, the Developer acknowledges that the City will need sufficient, detailed information about the proposed Project (including, without limitation, the financial information described in Section 7 of this Exhibit B) to make informed decisions about the content and approval of the DDA. The City will work with the Developer to maintain the confidentiality of proprietary information, subject to the requirements of the Public Records Act, California Government Code section 6250 et req. (CPRA). The Developer acknowledges and agrees that the City may share information provided by the Developer of a financial and potential proprietary nature with third-party consultants who have been engaged to advise the City concerning matters related to this Agreement and to the City Council members as part of the negotiation and decisionmaking process. Information submitted to the City is a public record and may be subject to disclosure if requested by a member of the public. The Developer shall familiarize itself with the CPRA, including consulting with legal counsel, regarding its requirements for disclosure of public records and applicable exemptions from such disclosure. If the Developer claims an exemption from disclosure under the CPRA, it must identify the specific provision(s) of the CPRA providing an exemption from disclosure for each such item claimed as exempt from disclosure. The Developer must also clearly identify, in writing and with specificity, all copyright, patent or trademark materials, trade secrets, or proprietary or confidential commercial or financial information claimed as exempt from disclosure under the CPRA (collectively, “Exempt Information”). Any documents that Developer believes constitutes Exempt Information shall be clearly labeled in bold and all caps at the top of the page as “EXEMPT INFORMATION” prior to their submission to City.

Exempt Information shall remain the property of the Developer. If a request is made under CPRA for disclosure of Exempt Information, the City will endeavor to provide the Developer with reasonable timely notice of that request, in order that the Developer will have the opportunity, under the CPRA, to seek protection from disclosure by a court of competent jurisdiction. The City shall not be, under any circumstances, responsible or liable to the Developer, or any other person, for the disclosure of Exempt Information, whether such disclosure is required by law, by an order of a court, or as a result of inadvertence, mistake, or negligence on the part of the City or its elected or appointed officials, officers, employees, agents, contractors, representatives, or consultants.

The Developer submitting claimed Exempt Information in connection with this Agreement, by making such submittal of claimed Exempt Information, unconditionally agrees to indemnify, defend, and hold harmless the City and its elected or appointed officials, officers, employees, agents, contractors, representatives, and consultants, from and against any and all claims, damages, losses, liabilities, and expenses, including actual attorneys’ fees and costs, including in-house legal counsel fees and costs, incurred by the City, in good faith, that arise out of, relate to, or result from the City’s failure to disclose any claimed Exempt Information to any person making a request for such information. If the Developer fails to timely and diligently undertake indemnification of the City, it shall be deemed to have waived the right to claim exemption from disclosure under the CPRA; and after reasonable notice to the Developer, the City may release the requested information in accord with applicable law. 178 of 814
Exhibit B
-7-

13. Progress Reports. Each Party, on a monthly basis, shall provide oral or written progress reports advising the other party on studies being made and matters being evaluated by the reporting Party with respect to this Agreement and the Project. 179 of 814
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DEVELOPER QUALIFICATIONS
120 E COTATI AVENUE | COTATI, CA

FREEBIRD DEVELOPMENT COMPANY
April 30, 2024
Contact Information:

Robin Zimbler
Freebird Development Company
1111 Broadway, Suite 300
(510) 319-6959
[email protected]
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FREEBIRD DEVELOPMENT COMPANY

TABLE OF CONTENTS
Cover Letter
Section 1. Development Team 1
• 1.a. Development Team Overview 1
• 1.b. Resumes 3
Section 2. Comparable Projects 5
Section 3. Financial Capacity 8
• 3.a. Public Funding Experience 8
• 3.b. Bank Debt and Tax Credit Equity Experience 9
• 3.c. Financing Goals 9
• 3.d. Potential Financing Programs 10
Section 4. Conceptual Plan 12
• 4.a. Narrative 12
• 4.b. Program Principles and Objectives 12
Section 5. Exhibits 16
• 5.a. Disclosures 16
• 5.b. Freebird Project List 17
• 5.c. John Stewart Company Project List 18
• 5.d. Concept Drawings 19
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FREEBIRD DEVELOPMENT COMPANY
April 30, 2024
Noah Housh, Director
Community Development
City of Cotati
201 W Sierra Avenue
Cotati, CA 95931
Re: 120 E Cotati Avenue RFQ, Cotati, CA
Dear Mr. Housh,
Thank you for the opportunity to respond to the Request for Qualifications (RFQ) for 120 E Cotati Avenue. Freebird Development Company, LLC, is pleased to submit our qualifications. Our development team undoubtedly has the expertise, track record, community accountability, and imagination needed to fully realize the City’s and community’s vision for the site.

Our team’s strengths are:
• We transform lives through inclusive projects reaching households with a broad range of incomes and abilities.
• We have a strong commitment to community engagement.
• We integrate projects within existing neighborhoods to enhance communities. • We are a seasoned team with strong financial capacity and expertise, and a proven track record of bringing in projects on-time and on-budget.
• We have the capacity to make the project a top priority. It will not be one of many, as it may be for other development teams who currently have deeper pipelines with projects that compete for their time, energy, and financial resources.

We are pleased to submit our qualifications and look forward to working with you and community stakeholders. Should you have any questions regarding our qualifications, please do not hesitate to contact us.

Sincerely,
Robin Zimbler
Manager
Freebird Development Company, LLC
1111 Broadway, Suite 300
Oakland, CA 94607
510.319.6959
[email protected]
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FREEBIRD DEVELOPMENT COMPANY 1

1. DEVELOPMENT TEAM

1.a. Development Team
Freebird Development Company
Developer
1111 Broadway, Suite 300
Oakland, CA 94607
www.freebirddev.com
Contact Information
Robin Zimbler, Manager
510.319.6959
[email protected]
Freebird is a joint venture between Robin Zimbler and L+M Development Partners (L+M) launched in 2018. Robin is a leader in the affordable, mixed-income, and community development field with over 20 years of experience in the industry—a career spanning both the public and private sectors. In her private sector career, Robin has managed the development of over 2,400 units totaling over $1.4 billion in investment, including ten projects in California. A detailed list of Freebird’s and Robin’s past projects can be found in Exhibit 5.b. of this response.

Robin provides the day-to-day management of Freebird, financially backed by L+M, who has a strong balance sheet and deep financial capacity. Since 1984, L+M has been a real estate leader and innovator, responsible for more than $9 billion of development and construction. Working with community, government and investment partners, the company has developed or invested in over 30,000 units of high-quality, affordable and market rate housing. L+M is currently ranked 27th in Affordable Housing Finance magazine’s listing of “Top 50 Affordable Housing Developers” in the country.

North Bay Housing Coalition
Local Non-Profit Partner / Services Provider
1234 Empire Street, Suite 1210
Fairfield, CA 94533
www.northbayhousingcoalition.org
Contact Information
Mary Eble, Executive Director
707-718-9274
[email protected]
North Bay Housing Coalition (NBHC) will serve as a local non-profit partner and services provider for units set aside for people with intellectual and developmental disabilities. NBHC has been creating affordable housing opportunities for people with intellectual and developmental disabilities since 2001.

It owns and manages its inventory of single-family homes and condos as well as acting as liaison with private developers on larger projects with set-aside units. NBHC believes that people living with intellectual and developmental disabilities can and should have equal access to affordable housing, independence, and the opportunity to live their best possible life in their community. 184 of 814
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FREEBIRD DEVELOPMENT COMPANY 2
The John Stewart Company
Property Manager
1388 Sutter Street, 11th Floor
San Francisco, CA 94109
www.jsco.net
Contact Information
Jennifer Wood, Vice President
415-345-4400
[email protected]
The John Stewart Company (JSCO) is a leading full-service housing management, development and construction management company employing over 1,400 people at five offices throughout the state.

JSCO services a diverse portfolio of more than 444 properties with over 32,700 units of housing—home to more than 72,500 California residents. JSCO prides itself on its extensive knowledge of managing a wide variety of affordable and market rate housing complexes that have a multiplicity of federal, state, and local funding sources. This exposure has given JSCO wide-ranging experience in the operations and compliance requirements of many different housing programs. JSCO not only provides traditional property management services but also integrates them with a broad array of human services. It is the company's operating philosophy that a comprehensive program of housing and complementary support services is essential to the long-term viability of housing communities.

Lists of projects managed by JSCO are included in Exhibit 5.c. of this response. The lists include projects located in Sonoma, Napa, and Marin counties and projects with a set-aside of units for people with intellectual and developmental disabilities.

HKIT Architects
Architect
538 Ninth Street, Suite 240
Oakland, CA 94607
www.hkit.com
Contact Information
Paul McElwee, Principal
510-625-9800
[email protected]
HKIT Architects has 70 years of experience working with developers on affordable residential developments. Through the years of experience, HKIT has built a practice that understands the importance of design in creating a strong community and how to design efficient, well detailed buildings that meet the needs of the residents and clients. HKIT understands the critical importance of working with budgetary restraints, competitive funding sources, and diverse program needs. HKIT has provided architectural services and coordination activities for over 1,800 units of affordable housing funded through various state and federal programs. HKIT is unique in the housing industry with a portfolio of experience including many types of supportive living environments that rely heavily on creative design to provide structure to the needs of very special groups of residents, fostering a rich sense of community.
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1.b. Resumes
Robin Zimbler
Principal in Charge
Manager,
Freebird Development Company
Robin established Freebird Development Company as a joint venture with L+M Development Partners in 2018. Prior to that, she spent 3 years as Senior Vice President for Related California overseeing the Bay Area affordable office, where she was responsible for the coordination of all aspects of development and financing for Related’s affordable residential developments. Prior to joining Related, Robin was Development Director at L+M, where she oversaw the development of large scale, mixed-income residential developments: Faubourg Lafitte in New Orleans, Navy Green in Brooklyn, and Candlestick Heights in San Francisco, along with the ReFresh Project in New Orleans. Across her private sector career, Robin has managed the development of over 2,400 units totaling over $1.4 billion in investment.

She began her career working in the public sector as Director of Multifamily Initiatives for the New York City Department of Housing Preservation and Development, and Director of Strategic Planning, Policy, and Programs for Baltimore Housing. Robin holds a master’s degree in City and Regional Planning from the University of North Carolina – Chapel Hill and a bachelor’s degree from Washington University in St.

Louis.

As the majority owner and manager of Freebird, Robin Zimbler is authorized to execute and bind any required documents in connection with this RFQ including the ENA, LOA, Ground Lease, and Regulatory Agreement.

Lisa Gomez
Financial Partner
Chief Executive Officer,
L+M Development Partners
Lisa oversees the day-to-day operations of L+M Development Partners and its affiliated companies. Lisa has more than 25 years of experience in real estate finance and development. Prior to joining L+M, she was in senior management at the New York City Housing Development Corporation (HDC), overseeing $1 billion annually in bond financing and mortgage insurance. At HDC, she was also responsible for developing and executing policy and financing programs to stimulate the creation of affordable housing for Mayor Bloomberg’s successful New Housing Marketplace Plan. Lisa also held various positions at JP Morgan Chase Bank, the New York City Economic Development Corporation and Silverstein Properties, among others.

Lisa is a Board member of Center for the Urban Future as well as the Stella and Charles Guttman Community College Foundation. She is a past Chair of the New York State Association of Affordable Housing and the Greenpoint Manufacturing and Design Center. Lisa was also a Commissioner of the New York City Planning Commission from 2004 to 2007. She is a graduate of Louisiana State University. 186 of 814
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Mary Eble
Non-Profit Partner
Executive Director,
North Bay Housing Coalition
Mary has been the Executive Director of the North Bay Housing Coalition (NBHC) since 2001. She is dedicated to NBHC’s mission to create and to support affordable housing for persons with intellectual and developmental disabilities.

With a master’s degree in Social Work paired with her experience, Mary has created and managed many projects over her tenure with the organization including working with developers and affordable housing advocates. She oversaw the creation of the agency’s housing services program that has supported more than 500 people since its inception in 2012. As the aunt and care provider for her adult nephew with Down Syndrome, she also understands the needs from a personal point of view.

Jennifer Wood
Property Manager
Vice President,
John Stewart Company
Jennifer has 25 years of progressive experience in affordable housing and multifamily property management. She has extensive experience with all types of local, state, and federal programs including LIHTC, Project-Based Section 8, Public Housing, HOME, Bond, HOPE VI, RAD, tenant-based subsidy programs and more.

Jennifer began her career as a Community Manager in 1994 with Goodale & Barbieri in Spokane, Washington. She quickly advanced to corporate roles as an Occupancy Specialist and Regional Manager. She moved to Puget Sound in 2001 as a Portfolio Manager for Allied Residential where she managed both affordable and conventional properties for a variety of clients including for profit developers, non-profits, and public housing authorities. In 2005, joined Cambridge Management, Inc. in Tacoma, Washington where she served as Director and oversaw their property management operations while they expanded to more than 14,000 units in seven states including California. Jennifer began her tenure with The John Stewart Company in 2018 as Assistant Vice President for their San Francisco Bay Area region and assumed responsibility as Vice President in 2019.

Paul McElwee
Architect
Principal,
HKIT Architects
Paul brings over 20 years of experience specializing in multi-unit residential communities. His portfolio includes affordable and market rate developments, senior housing, assisted living, multi-family, SRO, and special needs housing. Paul is the recipient of several awards for his design work from various organizations, such as The Enterprise Foundation, San Francisco SPUR, and Dwell Magazine. He received his bachelor’s of architecture degree from Carnegie Mellon University. He is a licensed architect in California.
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COMPARABLE PROJECTS
Monroe Commons
Santa Clara, California
Monroe Commons is a 74,000 square-foot three-story building containing 65 residential units in a mix of studios and one-, two- and three-bedroom units. All units are deed restricted for use by households at income tiers between 30 - 80 percent of area median income (AMI), with a 25% set-aside for people with intellectual or developmental disabilities. The project includes on-site amenities such as a fitness center, game room, laundry room, community room, and approximately 32,000 square feet of open space. The project includes many sustainability features including photovoltaics covering 100% of the projected residential energy usage, pervious concrete for the parking lot, low flow plumbing fixtures, and energy efficient lighting.

Monroe Commons was developed pursuant to a long-term ground lease with the City of Santa Clara. The site was previously zoned as single-family with a general plan designation of transportation right-of-way. As a result, we could not use any of the State’s streamlining programs and led a year-long community engagement, entitlement and CEQA process.

The project was one of the first projects to be awarded funding under CalHFA’s Mixed Income Program. The project started construction in April 2022 and completed construction in October 2023.

Units: 65
Year Completed
Started construction in April 2022;
Completed in October 2023
Population Served
30%-80% AMI; 25% set-aside for
people with intellectual and
development disabilities
Financing
$50 million financed by 4% LIHTC,
tax exempt bonds, City subsidy,
County subsidy, CalHFA Mixed
Income Program, bank debt, and
Project Based Section 8
Reference
Jonathan Veach
Former Housing Division
Manager,
City of Santa Clara
310-422-1893
[email protected]
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South Park Commons
Santa Rosa, California
South Park Commons is a 66,000 square-foot four-story building containing 62 residential units in a mix of studios and one-, two- and three-bedroom units. All units are deed restricted for use by households at income tiers between 15 - 50 percent of area median income (AMI). 50% of the units are reserved for permanent supportive housing for households experiencing homelessness. The project includes on-site amenities including a community room, laundry room, property management office, social services office, and expansive open space including a children's play area and community gardening.

The project is all-electric by choice (the City did not require it to be all-electric since it is higher than 3 stories) and includes many sustainability features including photovoltaics, low flow plumbing fixtures, and energy efficient lighting. The project will meet CalGreen Tier 1 requirements and has qualified for an award of approximately $400,000 through the California Energy Commission’s Building Initiative for Low-Emissions Development Program (BUILD).

The City conveyed the site to the development team for $1. Entitlements were secured through a State density bonus and streamlined ministerial review. Nonetheless, we have worked very closely with neighbors through their neighborhood group, South Park Coalition, during predevelopment and construction.

We were successful in securing $24 million in State funding for the project through the Multifamily Housing Program, the Housing for Healthy California Program, and the Infill Infrastructure Grant Program. The project started construction in April 2023 and is expected to complete construction in 2024.

Units: 62
Year Completed
Started construction in April 2023;
Anticipated completion in 2024
Population Served
15%-50% AMI; 50% set-aside for
formerly homeless
Financing
$49 million financed by 4%
LIHTC, tax exempt bonds, City
subsidy, State Multifamily
Housing Program, State
Housing for Healthy California
Program, State Infill
Infrastructure Grant Program,
RED Housing Fund, BUILD
incentives, bank debt, and
Project Based Section 8
Reference
Nicole Del Fiorentino
Housing and Community Services
Manager,
City of Santa Rosa
707-889-2370
[email protected]
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FREEBIRD DEVELOPMENT COMPANY 7
Saggio Hills
Healdsburg, California
Freebird and the City of Healdsburg executed a Development and Disposition Agreement (DDA) in April 2023 to develop an affordable housing development on the Saggio Hills site.

The project, which will include both rental (up to 80% AMI) and for-sale (up to 120% AMI) phases in a variety of housing types and unit sizes, is located on 12 acres to the northeast of the Parkland Farms community. Indoor/outdoor recreation areas will include a community building with community room and teen room, playgrounds, pedestrian, and bike paths, and hiking trails connecting to the broader trail network. The project will meet Energy Star Multifamily New Construction Program requirements and include innovative sustainability measures such as a laundry-to-landscape greywater reuse system.

Per the terms of the DDA, the City will convey the site to the development team for $1.

The project qualified for a State density bonus to reduce minimum parking requirements but did not qualify for ministerial approval or CEQA streamlining. Freebird led a robust community engagement process with multiple in-person developer-led meetings and focus groups, plus seven project-specific public hearings. The biggest testament to the success of our community engagement process was that only one public comment was made during the two City Council hearings in which our entitlements and Development and Disposition Agreement were approved.

The project has been recommended for an award of HOME funds by the Sonoma County Community Development Commission. We recently applied to the State’s Affordable Housing and Sustainable Communities program—awards will not be announced until August 2024. We anticipate starting construction on the first rental phase in 2025 and completing all rental phases by the end of 2027.

Units: 118 total (108 rental; 10
ownership)
Year Completed
Project in predevelopment;
anticipated to start construction
in 2025 and complete in 2027
Population Served
• Rental – 30% - 80% AMI; 10%
set-aside for people with
intellectual and
developmental disabilities
• Ownership – Up to 120% AMI
Financing
Rental phases to be financed
through 4% LIHTC, tax exempt
bonds, City subsidy (secured),
County subsidy (secured), State
subsidy (AHSC application
pending), and bank debt
Reference
Stephen Sotomayor
Housing Director,
City of Healdsburg
707-431-3396
[email protected]
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3. FINANCIAL CAPACITY
After opening its doors in 2018, Freebird brought its first new construction project, Monroe Commons, to the financing markets in 2020 just as CDLAC moved to a competitive process for allocating tax-exempt bonds, and construction costs and interest rates were skyrocketing given the pandemic. In the intervening years, despite an incredibly competitive public funding environment and challenging construction and private financing markets, Freebird has proven its ability to secure public financing, to command the best pricing and terms for private bank debt and equity, and to deliver projects on-time and under-budget. Freebird has never asked TCAC or CDLAC for a time extension, a request that became commonplace for developers during the pandemic. Freebird closed on Monroe Commons in 2022 and South Park Commons in 2023 both within 4 months of CDLAC/TCAC allocation.

3.a. Public Funding Experience
With respect to public funding, Freebird’s manager, Robin Zimbler, closely follows the creation of new public funding programs and changes to the various existing State affordable housing financing programs including bonds, credits, HCD programs, and CalHFA programs, to ensure she is structuring projects as flexibly as possible to be competitive under multiple programs. For example, during the first year of CDLAC’s competitive process for bonds, it was very difficult for Northern California projects to compete in the General Pool given construction costs were so much higher in Northern California than in other parts of the State and the CDLAC scoring system had not yet adjusted for that. Recognizing this, Robin closely followed the creation of CalHFA’s Mixed Income Program (MIP) and made sure Monroe Commons (Santa Clara) was structured to compete successfully under that program. Monroe Commons was one of the first projects awarded under the MIP program, starting construction in April 2022, and completing in October 2023, well under budget. The project was 100% leased as of January 2024 and is on target to convert to permanent financing later this year ahead of schedule.

Similarly, on South Park Commons (Santa Rosa), Robin closely followed program regulation changes to various HCD programs to structure the project to be competitive for as many programs as possible so that the project could benefit from either stacking State funding programs or having multiple viable funding paths should the project not succeed in a specific program round. In the end, the project was successful in securing HCD funding through three different HCD programs, each in the first round we applied—the Multifamily Housing Program, the Housing for Healthy California Program, and the Infill Infrastructure Grant Program—securing over $24 million in State funding for the project. The project has also been awarded approximately $400,000 in funding through the California Energy Commission’s BUILD program, a new program designed to incentivize the construction of all-electric buildings. South Park Commons started construction in April 2023 and is on target to complete construction later this year well under budget.

Freebird recently applied for State Affordable Housing and Sustainable Communities funding for its Saggio Hills project in Healdsburg, with awards anticipated to be announced in August 2024. Proving again Freebird’s deep understanding of program regulations and scoring, Saggio Hills has the highest quantitative policy self-score of the Rural Innovation Project Area projects, based on preliminary information released by HCD.

In addition to State programs, Freebird has also been opportunistic in securing funding from new local funding programs in the jurisdictions in which its projects are located, including Sonoma County funding for projects that set aside units for people with intellectual and developmental disabilities (Monroe Commons) and funding from the newly-created RED Housing Fund in Santa Rosa (South Park Commons). Freebird also has experience securing funding from the Sonoma County Community 191 of 814
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Development Commission, which recently recommended an award for Freebird’s Saggio Hills project in Healdsburg.

3.b. Bank Debt and Tax Credit Equity Experience
Freebird’s financial partner and 49% owner, L+M Development Partners (L+M), provides any necessary project predevelopment funds and project guaranties for Freebird’s projects, commanding industryleading pricing and terms. L+M has a 40-year track record of securing funding for affordable housing projects including tax credit equity and private bank debt. Since its inception in 1984, L+M has secured over $9 billion in financing for over 30,000 units—the vast majority of which has been for affordable housing projects financed with low-income housing tax credits.

With L+M as its financial partner, Freebird has financed both Monroe Commons ($50 million) and South Park Commons ($49 million) with Chase as the construction lender and Raymond James as the tax credit syndicator (we received bids from multiple lenders/investors on both projects). Both projects enjoyed tax credit raises over $0.91 with favorable terms that allowed 20% of the equity to come in at construction financing and an additional 30% at completion to save a significant amount of money on construction interest—a structure that saves scarce public subsidy dollars.

Together, with Freebird as its Owner’s Representative, L+M secured $522,000,000 in financing (not a typo) for El Rancho Verde in San Jose, a 700-unit 100% affordable acquisition/rehabilitation project financed with tax-exempt bonds and 4% credits, which we acquired in 2018 and completed the rehabilitation of in 2019. Citibank provided the construction and permanent debt and a partnership between Citibank and Wells Fargo served as the tax credit investor with a tax credit raise of $0.985.

Prior to the creation of Freebird, L+M secured financing for and completed three additional California projects including: Candlestick Heights in San Francisco ($129,000,000), 5880 Third Street in San Francisco ($43,000,000), and Bellflower Manor in Los Angeles ($32,000,000). Freebird’s Manager and 51% owner, Robin Zimbler, served as project manager on Candlestick Heights and 5880 Third Street during her prior employment with L+M. She also oversaw the development and financing of an additional 4 California projects totaling approximately $400 million while Senior Vice President at Related California.

3.c Financing Goals
We are confident that we will be able to secure the necessary public and private financing for 120 E Cotati Avenue. The following three goals will underpin our financing approach:
• Provide Housing for Broad Range of Incomes and Abilities. We envision a project that is 100% affordable but serves a broad range of incomes between 30% AMI to up to 80% AMI depending on funding path. Given our partnership with the North Bay Housing Coalition, the project will include a 25% set-aside for people with intellectual and developmental disabilities, which will serve as the 30% AMI tier. We anticipate two additional income tiers to ensure no gaps in coverage—up to 60% AMI with a 50% AMI income average if 9% low-income housing tax credits or HCD’s Multifamily Housing Program (MHP) or Affordable Housing and Sustainable Communities (AHSC) programs are pursued, or up to 80% AMI with a 60% AMI income average if CalHFA’s Mixed Income Program (MIP) is pursued.
• Minimize Local Public Subsidy to the Greatest Extent Possible. To ensure financial feasibility of the project, we would structure the land sale with no upfront acquisition cost—this could be accomplished through a $1 fee simple sale, a long-term below market ground lease, or (if financially feasible) seller carryback financing for up to appraised value so that the City could 192 of 814
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ultimately recapture the land value over time through residual receipts payments (this is how we structured Monroe Commons). We would otherwise strive to minimize local public subsidy to the greatest extent possible although some may be necessary, particularly since the project is not in a Qualified Census Tract (QCT) or Difficult Development Area (DDA) and, therefore, does not qualify for the 130% basis boost on tax credits.
• Ensure Competitiveness Under Multiple Funding Paths. Given today’s climate of scarce resources and continued rising costs, it is necessary to have a Plan A, a Plan B, and even a Plan C. We will structure the development program including bedroom mix, number of special needs units, and income targeting to maximize scoring under several programs. With respect to bedroom mix, we will design the project with at least 25% two-bedroom units and at least 25% three-bedroom units to meet large family eligibility under several State programs (given the close proximity to other affordable senior developments, we do not think additional senior housing would be appropriate at this location). In addition, as previously mentioned, we will include a 25% set-aside for people with intellectual and developmental disabilities which will serve as our 30% AMI tier, with those units spread across bedroom sizes to ensure at least 10% of units at each bedroom size are 30% AMI. This structure satisfies scoring criteria under multiple programs for extremely low-income (30% AMI) and inclusion of special needs units.

3.d. Potential Financing Programs
Below is a description of some of the funding programs we think could be viable for the project:
• Section 811 Supportive Housing for Persons with Disabilities – Section 811 provides rental assistance to extremely low-income adults with disabilities. The program works similarly to Project Based Section 8 where the resident pays rent based on 30% of their income and the difference between the resident-paid portion and Fair Market Rent is contributed by HUD through CalHFA’s administration. CalHFA recently applied to HUD for funding under Round IV, with awards to State housing finance agencies anticipated to be made this year. If awarded, our understanding based on communication with CalHFA staff is that they will begin to allocate funding next year. This program has traditionally been one of the least competitive programs administered by the State, yet the rental assistance received can generate significant proceeds to projects. We would pursue this program for the units set aside for people with intellectual and developmental disabilities under any of the capital funding scenarios described in this section. • Sonoma County Community Development Commission – The Commission administers various local and federal sources which we will seek for the project. Based on the Commission’s past NOFAs, we believe the project will be competitive for funds administered by the County.

Freebird was recently successful in being recommended for funding by the Commission for its Saggio Hills project the first time we applied for Sonoma County funding. We will pursue County funding under any of the capital funding scenarios described in this section.

• Federal 9% Low Income Housing Tax Credits (9% LIHTC) – Twice annually TCAC awards up to $2,500,000 per project in 9% tax credits, subject to availability of credits. We then sell those credits to an investor who can claim the full amount of the allocation in each of 10 years, generating equity for the project. 9% LIHTC awards have traditionally been highly competitive and difficult to secure. Even though that will likely continue, we need to keep this option open should Congress expand the 9% program (current efforts underway) or should there be disaster recovery credits available to Sonoma County again in the future (as there were in the aftermath of recent fires).
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• Federal 4% Low Income Housing Tax Credits (4% LIHTC) and Tax-Exempt Bonds Coupled with State Capital Programs – Similar to 9% LIHTC, TCAC awards 4% LIHTCs to projects whose developers then sell those credits to an investor generating equity for the project. Although TCAC/CDLAC moved from an over-the-counter to a competitive process for 4% tax credits and tax-exempt bonds a few years ago, 4% credits are still less competitive than 9% credits, particularly for projects that do not request State tax credits. Given the project is not in a QCT or DDA and, therefore, does not qualify for the 130% basis boost for credits, and State tax credits will only become more competitive, if even available (the State’s current budget proposal does not renew the $500 million annual State tax credit program), we believe the project will need to couple 4% credits and tax-exempt bonds with one of the State capital programs listed below. • California Affordable Housing and Sustainable Communities Program (AHSC) – In the coming years, we anticipate AHSC to be one of the more stable State funding programs as it is funded through the State’s Cap and Trade auction. The AHSC Program provides grants and loans for transit-oriented affordable housing and related infrastructure that reduces greenhouse gas emissions. The key to a successful application is partnerships with the local jurisdiction to plan for pedestrian/bike improvements and with a transit agency to include a transit scope that maximizes the reduction of greenhouse gas emissions. Freebird recently worked with the City of Healdsburg, Sonoma County Transit, and CalVans on an AHSC application, with awards anticipated to be announced in August 2024. Unfortunately, the future Healdsburg SMART station was outside the 2-mile project area so could not be included in the application, but Freebird has developed good relationships with key staff at SMART with the eye toward a future application.
• California Multifamily Housing Program (MHP) and Infill Infrastructure Grant Program (IIG) – MHP could generate a significant amount of funding for the project ($250,000 - $400,000 per unit depending on bedroom and affordability mix) in the form of an up to 3% residual receipts permanent loan repayable from 50% of cash flow over the loan’s 55-year term. While MHP has historically been very competitive and may become even more competitive given proposed State budget cuts, there is a new Emerging Developer set-aside for which Freebird is eligible.

Plus, MHP can be coupled with the IIG program which could be a viable source of funding for site preparation, sidewalk and streetscape improvements, utility improvements, and storm water management. Freebird was successful in securing both MHP and IIG funds for its South Park Commons project the first time we applied for each.
• CalHFA Mixed Income Program (MIP) – MIP provides long-term subordinate financing for new construction of multifamily housing projects which restrict units between 30% AMI to 120% AMI.

Perhaps, more importantly, participation in this program provides access to a set-aside of taxexempt bonds and State tax credits. While projects with an average affordability of 60% AMI can be competitive in MIP (as opposed to other State programs where average affordability needs to be closer to 50% AMI or even 40% AMI for competitiveness), the increase in private debt that the higher rents generate does not offset the lower subsidy amount (MIP caps subsidy at $50,000/unit). As a result, it is reasonable to anticipate the project will need more local subsidy under a MIP execution than if successful in securing AHSC or MHP/IIG funds. 194 of 814
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4. CONCEPTUAL PLAN

4.a. Narrative
We have thoughtfully crafted a conceptual plan based on careful consideration of the Downtown Specific Plan, the City’s General Plan and Housing Element, and the Cotati Municipal Code. In response, our plan is based on two premises. The first is that as a sizeable amount of downtown vacant land, the site represents an unusual and important opportunity to create affordable housing that will help meet the City’s ever increasing RHNA numbers. The second is that given the site’s key location in Cotati’s historic downtown, the development should be something special—a community asset that contributes to the economic and social health of Cotati.

Conceptual drawings are included in Exhibit 5.d. It is important to note that our conceptual drawings are only intended to give an idea of what we think could be achieved on the site—additional study and discussions with City staff and community stakeholders would further shape our plan and could change it significantly. Having said that, we do believe that pursuing the 27-unit project for which the site has already been entitled would be a missed opportunity for the City, and that higher density can be achieved while still successfully integrating the project into historic downtown.

To achieve a higher unit count of 52 units while maintaining the 3-story height previously entitled, we have envisioned a 3-story podium building with a 56-stall parking garage on the ground floor screened by active, pedestrian-oriented uses along street frontages, with the residential units on the 2nd and 3rd floors, consistent with the Downtown Specific Plan. While the building is 3-stories along the street frontages, the back of the building adjacent to lower density development is one-story with a podium courtyard just off of the building’s 1,000 square foot community room. This well-defined and comfortable courtyard will provide a children’s play area and gathering space for residents. The 4,000 square foot commercial space at E Cotati Avenue and La Plaza and the building lobby at E Cotati Avenue and Charles Street anchor the project with prominent corner entries welcoming people in. We have kept ingress/egress to the parking garage as shown on the entitlement drawings from both E Cotati Avenue and Charles Street.

As previously noted in the Financial Capacity section, we would design the building with at least 25% two-bedroom units and 25% three-bedroom units, and a 25% set-aside for people with intellectual and developmental disabilities (I/DD) to maximize the project’s competitiveness for several affordable housing programs. The inclusion of the I/DD units helps achieve the City’s Housing Element goal of expanding affordable housing opportunities for developmentally disabled persons and has the added benefit of justifying a lower parking ratio, as we have found that residents in I/DD units typically do not own cars.

4.b. Program Principles and Objectives
Our conceptual plan responds to the program principles and objectives included in the RFQ in the following ways:
• Affordability – As previously described in the Financial Capacity section, we envision a project that is 100% affordable but serves a broad range of incomes between 30% AMI to up to 80% AMI depending on funding path. In addition to a 30% AMI tier serving people with intellectual and developmental disabilities, there would be either: a) 50% AMI and 60% AMI tiers with an average affordability of 50% AMI; or b) 50% AMI/60% AMI and 80% AMI tiers with an average affordability of 60% AMI, depending on funding path. Given the City’s RHNA numbers, we would prefer to include 80% AMI units, but that scenario would likely require more local subsidy as described in 195 of 814
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the Financial Capacity section. We would not include units above 80% AMI, as the increase in rents for those units would not be high enough to offset the loss of the property tax exemption for those units.
• Financing Security and Innovation – As discussed extensively in the Financial Capacity section, we would structure the project as flexibly as possible to be competitive under multiple affordable housing financing programs. Freebird has proven its financial acumen and success in securing local, state, and federal funding for affordable housing projects as also described in the Financial Capacity section.
• Accessibility – At least 15% of the project’s units will be accessible for people with physical disabilities and at least 10% will be accessible for people with hearing and/or vision impairment, exceeding building code requirements. Accessible units will be distributed throughout the project and all other units will be fully adaptable (blocking for future grab bars, sufficient circulation space widths, bathrooms and kitchens that comply with accessible or adaptable standards). Considerations for physical and audio/visual impairments will be made in all common areas and play structures will be designed to encourage engagement from all children, regardless of abilities. Clear orientation and wayfinding will be priorities in site planning and signage design. All service provision and programs will be held in accessible locations. • Sustainability and Resiliency – The building will be all-electric with a photovoltaic system sized to cover 100% of the projected residential electrical usage. A tight building envelope—particularly through high value insulation and windows—and high efficiency HVAC systems will allow the building to surpass State energy code requirements. Energy Star appliances will reduce energy usage even further. Interior materials and finishes will be selected for their durability, ease of maintenance and contribution to good indoor air quality. Low VOC and low formaldehyde finishes, walk-off mats, resilient or hard-surface flooring in all living areas of the residential units along with careful construction practices will also contribute to indoor air quality. Low flow fixtures and efficient irrigation on separate meters will reduce water use. At least 25% of the parking spaces will be EV Ready with chargers installed for at least 5% of the parking spaces.

Contractors will be required to provide construction storm water management and a high rate of waste diversion during construction. Similar to our South Park Commons project, we anticipate participating in the California Energy Commission’s Building Initiative for Low-Emissions Development Program (BUILD).
• Construction Innovation and Cost Efficiency – All applicable construction typologies will be studied as part of the initial project design for suitability in terms of cost, speed of project delivery, and sustainability. These methods will include standard Type V construction, modular, mass timber (for columns and floor plates), and load-bearing metal framing. Freebird’s manager, Robin Zimbler, has experience building multi-family housing using modular construction. While employed at L+M Development Partners she led the development of 5880 Third Street, a 136-unit multi-family building in San Francisco completed using modular construction. Moreover, our team recognizes that some of the most critical decisions related to project costs are made at the beginning of the project. Early cost estimating exercises have a significant impact on shaping the direction of the project. Together with the City, we will select a contractor through a negotiated bid process with a proven record of accurate cost estimating along the way. In addition, we will work with our seasoned design team to ensure the most costeffective structural and mechanical systems are chosen for the project and that design efficiency is achieved through the use of double-loaded corridors, stacking units, and back-toback plumbing. 196 of 814
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• Inclusion of Commercial Square Footage into the Project Design – Consistent with the Downtown Specific Plan, we have incorporated active pedestrian-scaled ground floor uses on our street frontages including 4,000 square feet of commercial space at the corner of E Cotati Avenue and La Plaza and our building lobby at the corner of E Cotati Avenue and Charles Street. We envision the commercial space to become a community gathering place—whether it be a community center, coffee shop, and/or co-working space. Through its founder, Robin Zimbler, Freebird has relevant commercial experience as she was the project lead on the Refresh Project in New Orleans, which brought together community-serving non-profits and institutions in a retail center which has become the de facto neighborhood hub.
• Outreach, Partnership, and Collaboration – We recognize the importance of community engagement, input, and response, and will work closely with City officials, neighbors, and other community stakeholders. We have successfully implemented community engagement plans in other low density and single-family neighborhoods—most recently in Healdsburg (Saggio Hills), Santa Clara (Monroe Commons), and Santa Rosa (South Park Commons). Through our experience, we have developed a framework for community engagement that is both rigorous and adaptable to the particular context or concerns of a community. The process begins with a series of listening meetings. One-on-one meetings with key stakeholders, appearances at neighborhood group meetings, and hosting of our own meetings open to all are critical to understanding the concerns of the community and the first step in gaining the trust and support necessary to get a project approved. The second step is to introduce some initial goals and principles to the community. Depending on their concerns, this may take the form of workshopstyle meetings on the site, or simple presentations about what we heard from the listening sessions, and thoughts about how we might respond. It is also important to be clear at this point about goals that are not achievable for the project. The third step is introduction to the specific proposal. Materials are presented in a way to demonstrate the ways in which the proposal incorporates initial feedback and framed with specific questions to make sure that the conversation is focused and productive. Throughout the project schedule—from predevelopment through construction and management—we will invest time and resources in creating long term community relationships and involving community members in planning and designing a project that meets the needs of the community and the future residents. Engaging in this rigorous process not only improves the chance for community support but helps shape the project in a way that it is well loved and seen as an active, successful integration into the larger community. We encourage you to reach out to the references listed in the Comparable Projects section to discuss our successful outreach efforts in other communities. • Equity – After working for 10 years in leadership roles for two of the largest affordable housing developers in the country, Freebird’s founder, Robin Zimbler, is incredibly fortunate to have the confidence of L+M who is helping her realize her vision of leading her own woman-owned affordable housing development company (Robin owns 51%). Freebird qualifies as an “Emerging Developer” for State affordable housing finance programs. Equity is a central concern to our team, and developing inclusive communities is one of the primary ways we promote equity. Robin is the aunt to an adult nephew with developmental disabilities and sees first-hand the struggles of a family to meet the on-going housing needs of an adult child with developmental disabilities. When Robin first launched Freebird she made a personal commitment to develop communities inclusive of this often overlooked and underserved population. By selecting our team, the City will demonstrate its commitment to people of not just diverse incomes, but of diverse abilities. We are also committed to ensuring racial equity in access to housing and job opportunities. On our Saggio Hills project, we have collaborated closely with Corazon Healdsburg to make sure Latinx voices are heard. Given Cotati’s relatively large Latinx community we anticipate conducting similar outreach to the Latinx community and other minority groups for this project. As we move forward with construction and operation of 197 of 814
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the project, we will work to connect local, small, and/or disadvantaged businesses and people to the general contractor for construction job opportunities and to our property manager for permanent job opportunities and/or maintenance contracts. In addition, we will work closely with our property manager to market the housing opportunities to diverse populations. Our resident selection criteria will make it clear in the very first paragraph that we do not discriminate against any individual or family because of race, color, creed, national or ethnic origin or ancestry, religion, sex, sexual orientation, gender identity, age, disability, handicap, or any other arbitrary basis. Once leased, we will provide a wide variety of services, including individual services, educational classes, and community-wide programs. Given residents will be made up of different races, nationalities, and cultures, our team will survey residents to tailor services to their needs. Social activities such as holiday celebrations, games and hobby classes, and potlucks will be designed to help residents discover both what they have in common and what they enjoy about their differences.
• Respondent Capacity – Our development team has the requisite financial expertise and capacity to implement the proposed project as described in the Development Team section and the Financial Capacity section of this response. If selected as developer, 120 E Cotati Avenue will be a top priority—it will not be one of a long list, as it may be for other development teams who currently have deeper pipelines with projects that compete for their time, energy, and financial resources.
• Quality Architecture and Community Benefits – Our architect, HKIT Architects, has a long track record of award-winning work. Together with Freebird, HKIT recently completed construction of Monroe Commons (Santa Clara) and is expected to complete construction of South Park Commons (Santa Rosa) later this year. While this response includes a conceptual site plan, we recognize the importance of community input and will collaborate closely with community stakeholders to develop consensus around the site plan, massing, and building aesthetic.

Finishes will be handsome, durable, healthy, sustainable, and cost-effective. The units will be generous, efficient, and light-filled with access to a shared courtyard. Our team recognizes the importance of building homes, not just “housing”, that will contribute to the neighborhood and provide a handsome community asset. Community benefits will include: public access to the community room for community events on a reservation basis, extraordinary sustainability and accessibility measures as described throughout this response, robust social service programs including adult education classes, individualized health and wellness services, and social gatherings, extensive local outreach and assistance in multiple languages, and a commitment to local, small, and/or disadvantaged businesses through our contracting. • Adhere to Affordability Requirements of the Surplus Land Act Exemptions – We have worked with both the City of Santa Rosa and the City of Healdsburg to receive Surplus Land Act Exemptions for South Park Commons and Saggio Hills, respectively. The Surplus Lands Act includes certain exemptions when an agency is already planning to dispose of land for affordable housing, including an exemption for land that is transferred pursuant to Government Code Section 37364 (Government Code section 54221(f)(1)(A)). Government Code Section 37364 requires only 40% of the units to be affordable, and of those, half (or 20% of the total) are set at 50% AMI, and half (or 20% of the total) are set at 60% AMI (i.e., 75% of 80% AMI). 100% of our project’s units will be affordable—even in the scenario where we include units up to 80% AMI, our income targeting will be much deeper than required under Government Code section 54221(f)(1)(A). 198 of 814
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5. EXHIBITS

5.a. Disclosures
As the majority owner and manager of Freebird Development Company, LLC, Robin Zimbler is authorized to execute and bind any required documents in connection with this RFQ including the ENA, LOA, Ground Lease, and Regulatory Agreement.

There have been no defaults, judgments, court orders, pending litigation, contractual disputes, violation notices, or other matters reflecting a violation of applicable regulations related to the operations or projects undertaken by Freebird or any of its individual members or affiliates exercising direct or indirect control over the development entity, including all key persons on the Respondent team.

The information provided in this RFQ is complete.

Freebird has never been assessed any CDLAC and/or TCAC Negative Points and has never had any HCD compliance issues.
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5.b. Freebird Projects List
Project Name/
Location
Income/
New or Rehab
Units Budget Financing
Sources
Status
45 Clermont, Navy Green
Brooklyn, NY
Affordable
New
101 $27,300,000 9% LIHTC,
Local Subsidy, Bank Debt
Completed
2012
7 Clermont, Navy Green
Brooklyn, NY
Mixed Income
New
112 $35,600,000 4% LIHTC, Tax Exempt
Bonds, Local Subsidy
Completed
2012
8 Vanderbilt, Navy Green
Brooklyn, NY
Mixed Income
New
99 $24,900,000 Local Subsidy, Bank Debt Completed
2016
Townhomes, Navy Green
Brooklyn, NY
Market Rate
New
23 $24,900,000 Equity,
Bank Debt
Completed
2016
Faubourg Lafitte Phase I
New Orleans, LA
Affordable
New
134 $42,100,000 9% LIHTC, State and Local
Subsidy, Bank Debt
Completed
2011
Faubourg Lafitte Phase II
New Orleans, LA
Affordable
New
142 $48,300,000 9% LIHTC, State and Local
Subsidy, Bank Debt
Completed
2011
Faubourg Lafitte Phase III
New Orleans, LA
Market Rate
New
89 $26,700,000 State Subsidy, Bank Debt Completed
2015
ReFresh Project
New Orleans, LA
Retail
Rehab
0 $18,200,000 NMTC Tax Credits, Local
Subsidy, Bank Debt
Completed
2014
Candlestick Heights
San Francisco, CA
Affordable
New
196 $129,500,000 4% LIHTC, Tax Exempt
Bonds, Inclusionary
Completed
2014
5880 Third Street
San Francisco, CA
Mixed Income
New
136 $43,000,000 State Subsidy, Equity,
Bank Debt
Completed
2015
Robert Pitts Plaza
San Francisco, CA
Affordable
Rehab
201 $86,200,000 4% LIHTC, Tax Exempt
Bonds, Local Subsidy, Bank
Debt
Completed
2017
Westside Courts
San Francisco, CA
Affordable
Rehab
135 $95,600,000 4% LIHTC, Tax Exempt
Bonds, Local Subsidy, Bank
Debt
Completed 2018
Westbrook Apartments
San Francisco, CA
Affordable
Rehab
223 $168,900,000 4% LIHTC, Tax Exempt
Bonds, Local Subsidy, Bank
Debt
Completed 2018
Sunnydale Parcel Q
San Francisco, CA
Affordable
New
55 $46,100,000 9% LIHTC,
Local Subsidy, Bank Debt
Completed 2019
El Rancho Verde
San Jose, CA
Affordable
Rehab
700 $522,000,000 4% LIHTC, Tax Exempt
Bonds, Bank Debt
Completed 2019
Monroe Commons
Santa Clara, CA
Affordable
New
65 $50,000,000 4% LIHTC, Tax Exempt
Bonds, CalHFA MIP, Local
Subsidy, Bank Debt
Completed 2023
South Park Commons
Santa Rosa, CA
Affordable
New
62 $49,000,000 4% LIHTC, Tax Exempt
Bonds, State MHP/HHC/IIG,
Local Subsidy, Bank Debt
Under
Construction
Saggio Hills
Healdsburg, CA
Affordable
New
118 TBD 4% LIHTC, Tax Exempt
Bonds, Local Subsidy
Predevelopment
2,591 $1,438,300,000
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5.c. John Stewart Company Projects List
Projects in Sonoma, Napa, and Marin Counties
Projects with Set-Asides for People with Intellectual and Developmental Disabilities 201 of 814
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5.d. Concept Drawings
Included on following pages.
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SETBACK

PROPERTY LINE
MAIL
MECH.

COMMERCIAL
(4,018 SF)
LOBBY
(4,212 SF)
BIKE ELEC.

PARKING
(56 STALLS)
TRASH
E. COTATI AVE.

LA PLAZA
CHARLES ST.

TRASH
UTIL.

V
10' - 0"
10' - 0"
10' - 0"
20' - 0"
V
78' - 5 3/8"
140' - 0"
160' - 0"
130' - 2 3/4"
UTIL.
125' - 0"
55' - 0"
21' - 1 1/8"
88' - 10 7/8"
42' - 2 3/4"
FLOOR
1 2
SUBTOTAL:

PARKING: 5
S
3 TOTAL UNIT

TOTAL BUIL

VICINITY MAP
1" = 40'-0" 1 SCHEME 3 V1 - LEVEL 1

COURTYARD
(7,038 SF)

COURTYARD
20' - 0"

COMMUNITY
(1,117 SF)
TR
1 BR
2 BR
1 BR
STUDIO
STUDIO
2 BR
2 BR
2 BR
3 BR
3 BR
3 BR
3 BR
UTIL.
1 BR
3 BR
2 BR
1 BR
STUDIO
STUDIO
STUDIO
1 BR
STUDIO
E. COTATI AVE.

LA PLAZA
CHARLES ST.
2 BR
STUDIO
1 BR
3 BR
20' - 0"
LAUND.

STUDIO
20' - 0"
1" = 40'-0" 1 SCHEME 3 V1 - LEVEL 2
E. COTATI AVE.

LA PLAZA
CHARLES ST.
2 BR
1 BR
2 BR
1 BR
STUDIO
STUDIO
2 BR
2 BR
2 BR
3 BR
3 BR
3 BR
UTIL.

COURTYARD
BELOW

COURTYARD
BELOW
1 BR
3 BR
3 BR
2 BR
1 BR
STUDIO
1 BR
STUDIO
TRASH
STUDIO
1 BR 2 BR
3 BR
1 BR
3 BR
1" = 40'-0" 1 SCHEME 3 V1 - LEVEL 3
City of Cotati
Request for Qualifications
Affordable Housing Development
For 120 E. Cotati Avenue
Location: 120 E. Cotati Avenue, Cotati, CA 94931
Released: March21, 2024
Due: 5:00 pm PT on April 30, 2024
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CITY CONTACT
Noah Housh, Director
Community Development
City of Cotati
201 W. Sierra Ave
Cotati CA, 95931
[email protected]
707-665-3635

PROJECT WEBSITE
https://www.cotaticity.org/Bids.aspx

RFQ SCHEDULE AND SUBMISSION INSTRUCTIONS
The following Request for Qualifications (RFQ) timeline is provided for the Respondent’s scheduling information but is subject to change at the City’s discretion.

Activity Date
Request for Developer Qualifications Released March 21, 2024 RFQ Questions and Requests for Clarifications Due April 4, 2024 5:00PM Pacific Time
City Response to RFQ Questions/Clarifications April 16, 2024 RFQ Submittal Deadline April 30, 2024
5:00PM Pacific Time
Parties responding to this RFQ (“Respondent(s)” or “Respondent Team(s)”) must submit their response via email to [email protected]. The City must receive responses to this RFQ through a Statement of Qualifications (SOQ) no later than the deadline listed above.

It is the Respondent's sole responsibility to ensure that the SOQ is received by the City before the deadline listed above. All emails sent by a Respondent will be time-stamped based on the time of receipt of such email.

SOQs must incorporate the Program Principals and Objectives listed below into the responding submittals. The page limit for the SOQ without exhibits is 15 pages; there is no page limit for exhibits.

All questions and/or requests for clarification should be sent to the City contact’s email 207 of 814
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address. The City will respond to questions and/or requests for clarification by emailing one attachment containing all questions and requests for clarification received by the deadline, along with an answer for each, via bcc to the email address(es) which submitted the questions and/or requests for clarification by the applicable deadline on March 11, 2024. This summary of questions and responses will also be appended to the City’s RFQ website on the same date.

DISCLAIMER
The City obtained the information contained in this RFQ from sources deemed reliable; however, the City makes no guarantees, warranties, or representations, nor expresses or implies any opinion concerning the accuracy or completeness of the information provided. It is furnished solely as an aid to interested parties. Interested parties are responsible for undertaking all necessary investigations on and off the City property to determine the suitability of the property for interested party’s intended use.

INTRODUCTION
The City is pleased to issue this RFQ for respondents capable of developing affordable housing on the City-owned property located at 120 E. Cotati Avenue in this RFQ, that will be consistent with and help fulfill state, regional, and local housing and development goals. 120 E. Cotati Avenue is a prime downtown development site in the heart of Cotati, consisting of three parcels with multiple public street frontages (APN 144-274-002, -014 & -015), collectively consisting of approximately 0.86 acres. Development of the site has been identified as a critical element of the community vision laid out in the Downtown Specific Plan, and the City’s certified 6th Cycle Housing Element. In 2021, the City entitled the site with a three story mixed use project consisting of 27 residential units and 10,400 square feet of commercial space. Separately, Section 3.5 of the 2023 City’s Housing Element identified the site’s realistic capacity as a maximum of 56 affordable housing units, split across income categories. As such, when the site came available, the City made the decision to utilize affordable housing funds to purchase the properties.

This RFQ is a City effort to address housing affordability through the construction of the entitled project referenced in Exhibit B, or an alternative project to be proposed by the respondents that seeks to implement the project principals and objectives identified below.

The City expects to evaluate the responding SOQs and then, provided that a) one or more of the Respondent SOQs are sufficient, and b) the City wishes to move forward with development of the site, the City intends to enter into an Exclusive Negotiating Agreement (ENA) and/or Lease Option Agreement (LOA) with the Respondent whose qualifications and development proposal the City deems best suited to the Principles and Objectives described in this RFQ. Successful completion of negotiations will lead to the execution of a development and disposition agreement or similar regulatory agreement to allow the development and use of the site for affordable housing.

More details on the location and description of the City-owned property included in this RFQ is in Exhibit A.
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PROGRAM PRINCIPLES AND OBJECTIVES
The lack of affordable housing across California is a matter of vital statewide importance and the City is working to expand housing opportunities through a combination of innovation and cooperation between the public and private sectors. While housing affordability is paramount, the City recognizes that this property presents an opportunity to leverage development for multi-benefit outcomes.

To help meet the affordable housing needs of the City of Cotati, and in alignment with other priorities identified in the City’s 6th Cycle Housing Element and Downtown Specific Plan, the City is seeking SOQs from Respondents who can demonstrate the capacity, creativity and commitment to support the Principles and Objectives listed below through development of the City owned property. Should the site move forward to the ENA phase, adherence to these Principles and Objectives will be critical to successfully moving to a development agreement with the City. 1) Affordability: Maximize depth and breadth of affordability to best meet the City’s affordable housing goals, while maintaining financial feasibility. The City has identified that a mix of affordability levels is likely the best approach to meeting the affordability needs and expectations of the community.
2) Financing Security and Innovation: Implement financing models which ensure project viability, finance-ability, and ultimate development of the site within a reasonable timeframe. The City is open to low-cost ground leases or purchase options as a vehicle to support development of the property. Further, the City is supportive of exploring creative financing mechanisms, including bonds as discussed in the Program 1-7 of the City of Cotati certified Housing Element. 3) Accessibility: Provide accessible housing by meeting or exceeding the requirements of the California Building Code and local requirements regarding universal design principles.
4) Sustainability and Resiliency: Incorporate local emphasis on sustainable construction, energy consumption and ecological resilience, including Electric Vehicle Charging, decarbonized energy use, and programs (such as AHSC) to leverage transportation options and La Plaza Park improvements. 5) Construction Innovation and Cost Efficiency: Explore the extent to which innovative construction technology and/or other cost-saving measures can be incorporated at this location resulting in reduced total project costs, reduced construction duration, and/or improved building performance while maintaining quality of construction.
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City of Cotati 120 E. Cotati Ave RFQ 5
6) Inclusion of Commercial Square Footage into the Project Design: Although the primary use of the site should be residential, the City finds that maintaining some commercial elements, especially along the La Plaza Street frontage, is critical to the future success of the project and cohesiveness with the City’s downtown. As such, it is expected that Respondents seek to maintain the mixed-use designation through the incorporation of commercial uses and features in the future project. Such uses could include retail, a community center or library space. 7) Outreach, Partnership, and Collaboration: Partner with the City to integrate local stakeholder, government and community input through a meaningful public participation process and conversation so that the proposed development addresses local concerns and meets local need.
8) Equity: Incorporate meaningful measures into the project that will achieve measurable equity outcomes that provide housing to all. Examples include but are not limited to construction-related programs, commercial tenant programming, and/or ownership partners.
9) Respondent Capacity: Demonstrate the Respondent’s financial capacity and development experience necessary to successfully implement the envisioned plans, and to overcome possible setbacks in the development process. 10)Quality Architecture and Community Benefits: Deliver a project that generally meets the La Plaza District Downtown Specific Plan architectural design expectations; that maximizes benefits of services, amenities, and improvements; and which strives to provide a parking ratio of one parking space/residential unit to minimize parking impacts on surrounding uses.
11)Adhere to the affordability requirements of the Surplus Land Act Exemptions:

The City of Cotati has confirmed the exemption status for development of the site with the California Department of Housing and Community Development.

Specifically, the project development is anticipated to meet the exemption requirements of SLA Exemptions F1A or F1F.
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City of Cotati 120 E. Cotati Ave RFQ 6

THE IDEAL RESPONSE TO THIS RFQ
The City seeks responses that:
• Are clear, concise, and to-the-point. Respondents are requested to avoid inclusion of extraneous marketing materials, overly detailed specifications, and other materials that increase the size of the submittal without providing meaningful additional information about Respondent's vision and implementation of the project objectives.
• Articulate a clear understanding of the City’s Program Principles and Objectives as listed above and demonstrate capacity for achieving them. • Demonstrate the Respondent’s capabilities and prior experience in delivering quality development projects on-time and within budget.

EVALUATION CRITERIA AND SUBMISSION REQUIREMENTS
An evaluation panel will identify the most qualified responses to this RFQ.

The City will invite selected Respondent Teams to a panel interview based on an evaluation of the following required elements.
1) Respondent Team Introduction
a) Provide an introduction to the Respondent Team that clearly identifies: the Team’s form of organization (LLC, partnership, etc.) and business headquarters, all equity partners or participants, and any involvement in the control over the Developer entity by such parties and any non-equity members. The complete Respondent team should be established as an integrated group prior to submitting the SOQ. b) If there is more than one proposed developer entity, identify the nature of the affiliation between the proposed developer entities, including roles and responsibilities and summary points on any agreements between the parties in pursuing the Project.
c) Identify the Respondent team principals and those authorized to execute and bind the team to an agreement. Include the name and/or title of the person who will be authorized to execute the ENA, LOA, ground lease, and/or regulatory agreement between the Respondent and the City. Include a brief biography for each principal member of the Respondent Team.
2) Demonstration of Experience
a) Evaluation Criteria: The overall track record of the Respondent Team (including the development company and its proposed project manager and any proposed contractors and partners) in planning, financing, developing, managing, and maintaining applicable development projects, including experience developing 211 of 814
City of Cotati 120 E. Cotati Ave RFQ 7
affordable housing in California.
b) Submission Requirements:
i) Describe the most recent and/or relevant development projects undertaken by Respondent Team, with information that includes the project name, project location, year completed, project value at completion, financing methodology and other relevant information such as whether any project was developed pursuant to a ground lease, purchase, other unique financing mechanism, etc. If Respondent is a group of developers, the history and qualifications of each should be provided. Highlight developer qualifications for the Low-Income Housing Tax Credit program or other state or federal funding programs and experience in the locality or region in which the site(s) is located. ii) Provide three project references that the City can contact. The project references should be for projects that are similar to the project envisioned in the SOQ. Project references should be able to confirm the Respondent’s claims of past success in the entitlement and discretionary approval process, participation in public-private joint development partnerships, financing of affordable housing projects, community engagement, use of innovative design or modular construction, and/or continued management of developments. iii) Provide a portfolio of similar projects that are now complete and stabilized, including projects with similar financing requirements that were completed within the past three years, to illustrate Respondent’s ability to obtain equity and debt financing (including “soft debt”) for the Project.
3) Capacity for achieving Program Principles and Objectives a) Describe your intended plan for incorporating the Program Principles and Objectives into development of the project site.
4) Demonstration of Financial Capacity
a) Evaluation Criteria: The financial capacity of Respondent Team to complete and manage the Project, including demonstrated abilities in financial innovation, adaptability, and command of emerging opportunities.
b) Submission Requirements:
i) Provide a statement describing the Respondent’s experience and track record in securing funding for affordable projects.
ii) Describe the conceptual approach to obtaining financing for theProject. 5) Conceptual Plan
a) Evaluation Criteria: The conceptual development plan description and the ability of that plan to meet the Program Principles and Objectives as described in this RFQ. b) Submission Requirements:
i) Provide a conceptual description of the proposed uses and site programing, including any characteristics you envision such as unique design features, sustainable materials, innovative housing types, onsite or offsite improvements, 212 of 814
City of Cotati 120 E. Cotati Ave RFQ 8
etc.
6) Additional Requirements and Representations
a) Evaluation Criteria: NA
b) Submission Requirements:
i) In their SOQs, Respondents must include an exhibit which identifies all of the following, as applicable, if any of them occurred within five years of the submission of the SOQ: defaults, any judgments, court orders, pending litigation, contractual disputes, violation notices, or other matters reflecting a violation of applicable regulations related to the operations or projects undertaken by the Developer entity or any of its individual members or affiliates exercising direct or indirect control over the development entity, including all key persons on the Respondent team.
ii) Respondents must certify the completeness of the information provided in their SOQ. The omission of information that the City deems material (determined in its sole discretion) may result in the SOQ being deemed non-responsive. iii) Provide detail for any assessed and/or outstanding CDLAC and/or CTCAC Negative Points and/or outstanding HCD compliance issues.

Surplus Land Act Requirements
City staff has engaged with the State Department of Housing and Community Development (HCD) regarding how the Surplus Land Act requirements affect the disposition and development of the project site. The results of this engagement are that the property transfer is expected to qualify as exempt from the requirements of the Surplus Land Act (SLA). Specifically, it is anticipated that any proposed project will comply with the allowances under the SLA exemptions F1A or F1F. The formal determination by HCD is available upon request.
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City of Cotati 120 E. Cotati Ave RFQ 9
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EO N-06-19 RFQ No. 1-21

EXHIBIT LIST
EXHIBIT 1. 120 E. Cotati Avenue Property Details
EXHIBIT 2. La Plaza View Project Entitlement Documents
EXHIBIT 3. Phase 1-Available on RFQ webpage due to size 215 of 814
EXHIBIT 1. – 120 E. Cotati
Avenue Property Details
120 E. Cotati Avenue consists of three parcels with multiple public street frontages (APN 144-274-002, -014 & -015), totaling approximately 0.86 acres.

The site is located within the La Plaza District of the City’s Downtown Specific Plan.

Downtown Specific Plan
https://www.cotaticity.org/221/Downtown-Specific-Plan
Certified 6th Cycle Housing Element
https://www.cotaticity.org/DocumentCenter/View/1444/Certified-Housing-Element Cotati Municipal Code
https://www.codepublishing.com/CA/Cotati/#!/Cotati17/Cotati17.html 216 of 814
EXHIBIT 2. – La Plaza View Project Entitlement
Documents
See Attached
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EXHIBIT 3 – Phase 1
See project RFQ website
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La Plaza View
Prepared by:
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Project Vicinity Map – Enhanced Aerial
▪ Existing Site Fire Station
Church
Senior Housing
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Site Plans –
Building 1 & 2
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La Plaza View – Project Highlights
▪ 2 Mixed-Use buildings on 3 vacant parcels
▪ 10,383 (8,263 requested) Square Feet of
Retail/Commercial – 15,000 sq ft currently approved
▪ 27 (29 requested) Apartments 1, 2 and 3 Bedroom
Units – 12 currently approved
▪ Parking located at rear of project hidden by buildings from streets – 25-50% with EV charging stations
▪ Solar Panel Systems on Carports and Roofs
▪ Undergrounding of overhead PG&E lines
▪ Recycling and Composting Systems
▪ On-Site water retention systems
▪ Low water usage landscape systems
▪ Downtown Specific Plan compliance
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La Plaza View – Project Need
▪ Aligns with State legislative actions to increase housing supply ▪ Increase of proposed housing units from 12 to 27 (29 requested) makes better use of providing prime downtown housing
▪ Helps meet City’s compliance with state mandated Housing Element ▪ Helps City of Cotati meet RHNA projected housing increase of 97% for 2023-2031
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La Plaza View – 2 Story / 3 Story Comparison
Approved Building 1 Approved Building 2
Proposed Building 1 Proposed Building 2
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La Plaza View – 27 / 29 Unit Comparison
Building 2 – 3 Units at 1st Level Building 2 – 5 Units at 1st Level 225 of 814 La Plaza View – 27 vs 29 Housing Units Analysis
▪ Retail / Commercial space 10,383 - 8,263 (requested) = 2,120 less retail space that could remain vacant along the E. Cotati Avenue frontage ▪ 27 vs. 29 (requested) Housing units will add 2 additional units needed to help meet State and City mandated requirements during this housing shortage ▪ FAR for buildings would be still be 20% vs the 25% required by zoning code ▪ DSP requirement for 50% of lineal footage be ground floor Retail would be meet if project was evaluated with total LF fronting E. Cotati Avenue of both Building 1 and 2 was calculated
▪ Structural design of building would accommodate future needs to convert ground floor to either Retail / Commercial space or Housing units ▪ Parking requirements for Housing units are approximately ½ as needed for Retail / Commercial Space: 1,000 sq. ft. housing unit = 2 spaces vs. 1,000 sq. ft. of Retail / Commercial space (1 space for 250 sq. ft.) = 4 spaces 226 of 814
Building 1 @ La Plaza - Looking Southeast
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Building 1 – Vignettes
Corner Entry Apartment Balcony & Retail Storefront
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Building 2 @ E. Cotati & Charles - Looking Southwest
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Building 2 – Vignettes
Corner Entry @ Charles & E. Cotati Exterior Stair & Retail Storefront 230 of 814
Design – Elements
Corner Entry Metal Roofing
Diagonal wall
plantings at
Building 1
Transitional Bus stop
Similar 3 – Story design proposed in City
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Design – Consideration
Recently approved downtown project with ground floor residential housing units in place of Retail / Commercial – 1 Santa Rosa Avenue 232 of 814 Historical References
▪ Circa 1950’s - Aerial ▪ Circa 1890’s Parcel Map
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DSP – La Plaza Park Reconfiguration Alternatives
▪ Current ▪ Alternative 1 ▪ Alternative 2 ▪ Alternative 3 234 of 814
DSP – La Plaza Park Restored and Street Section
▪ Restored Plaza ▪ La Plaza Street Section
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DSP – LP Design Excerpts
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DSP – Frontage Type - Commercial Block
▪ Shopfront I ▪ Shopfront II
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DSP – Architectural Style Guidelines
▪ Mainstreet Commercial ▪ Mission Revival 238 of 814
Design
Review
Approvals
Design
Meeting with
City
Concept
Design Review
Traffic Study
Tiger
Salamander
Study
Site
Environmental
Study
Historic
Resource
Study
Grading
Improvement
Plans
Architectural
Design Plans
Landscape
Plans
3 – Story
Redesign
▪ This project started design process in November of 2016, first application filings in 2017, 2 story approvals by PC in 2020 and redesign to 3 Story in 2020/2021. Here are the steps that have been taken over the past 4 ½ years:

Timeline
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Summary
▪ Request approval of the new 3 - Story design
▪ Request conditional approval of 29 Housing units
▪ Request any conditional approvals be handled at Staff level 240 of 814
La Plaza View
Thank you for your careful consideration and your service to the community. 241 of 814
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EXHIBIT A

CONDITIONS OF APPROVAL
La Plaza View
8170 La Plaza & 120‐128 East Cotati Avenue
(PA# 21/09)
Approval of Design Review for La Plaza View conditionally allows for development of a mixed-use development consisting of two three-story buildings containing a total of 27 residential units and 10,383 square feet of commercial floor area, onsite parking, landscaping and ancillary improvements as depicted on architectural plans dated December 15, 2020 (as amended May 18, 2021) and civil drawings dated December 14, 2020.

PLANNING DIVISION CONDITIONS

1. All conditions of approval detailed in the La Plaza View environmental analysis dated March 2020, shall be considered a part of these Conditions of Approval.

2. Prior to issuance of grading or building permits, the following shall be completed:
a. Applicant shall submit a $6,638.50 Specific Plan Recovery Fee ($7,810/acre x

0.85 acres); DSP Section 3.1.020.D.
b. Applicant shall submit for review and approval a Parcel Map application that removes the lot line separating APNs 144-274-002, 144-274-14 and 144- 274-015.
c. Applicant shall apply for approval of a tree removal permit. d. The following items shall be submitted to the Design Review Administration for Final Design and approval:
i. Final landscape and irrigation plans demonstrating compliance with the City’s Water Efficient Landscape Ordinance. The landscape plans shall also include the street frontage planter boxes and the vines along the southern wall of Building 1.
ii. The architectural, civil, and landscape plans shall be coordinated to remove any inconsistencies.

3. An application for a Master Sign Program shall be submitted and approved by the Design Review Administration prior to placement of any commercial signage.

BUILDING DIVISION CONDITIONS
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1. The proposed building will have multiple occupancies; a commercial (typically B or M occupancy) and apartment building (R-2 occupancy) in accordance the California Building Code. Include in the construction drawings a code analysis to confirm the occupancy, type of construction allowable area and building height are in conformance with requirements of chapter 5 & 6.

2. Plans will be required to be in compliance with the currently adopted Disabled Access requirements of 2019 CBC Chapter 11A.

3. The project requires a Geotechnical Report. The report shall provide design recommendations based upon the engineer’s findings and shall comply with the currently adopted CBC Section 1803. [ß107.2 CBC]

4. The project Soils Engineer shall confirm that the grading plans, foundation plans, and associated details and specifications have been reviewed and that it has been determined that the recommendations in the soil report are properly incorporated in the plans. [ 1803.6 CBC]

5. Provide Exit plans showing path of exits to the public way. Verify exit widths and overall length. [ß1014.2 CBC & Table 1016.2 CBC]

6. Provide complete dimensions on the floor plans for all rooms, spaces, hallways, passages, clearances, etc. [ 107.2 CBC]

7. Provide complete structural plans and calculations coordinated with the architectural plans.

8. Provide Electrical plans showing all processing equipment and provide Load Calculations to address the demand for all processing equipment.

9. Provide Title 24 Energy Documentation for Lighting (interior and exterior), Building envelope, Heating and cooling.

10. Disabled Access Paths of Travel and usage features are required to be detailed on the construction documents. Parking, entrances and all features within the building are required to be disabled compliant. 2019 CBC Chapter 11

11. Provide water supply, building drain and gas supply sizing calculations for the building in accordance with the California Plumbing code.

12. Units shall be provided with fire rated construction separating unit to unit for vertical and horizontal conditions. Sound transmission ratings of not less than 246 of 814
50 is required between units. All assemblies are required to be approved by a recognized testing agency. Please shall provide construction details and assemble source and reference number.

13. The project is required to comply with current CALGreen requirements.

Mandatory Measures level. The worksheets are to be printed on plan sheets in the plan set.

14. Before approval of the foundation inspection: A licensed Land Surveyor or Civil Engineer with proper certification shall conduct a survey of the (front, sides, rear, all) property lines and install property line markers that can be readily verified by Building Inspection staff. A written confirmation by the licensed surveyor (stamped) to the Building Department that the staking of the property lines has been completed and are accurate is required.

15. The electrical systems to all building sites must be sized to address the proposed loads in accordance with the California Electrical Code.

16. All water supplies and sanitary drainage sized in accordance with the current California Plumbing Code. Provide isometric plumbing plans for water supply (cold and hot) drains and vent systems.

17. Provide in the plan set a plan sheet with all conditions of approval from all departments.

RANCHO ADOBE FIRE PROTECTION DISTRICT CONDITIONS

1. AFSS Where required. Approved automatic fire sprinkler systems in new buildings and structures shall be provided in locations described in this section.

Additional local requirements are described in Section 903.2.1 through 903.2.19.1.2 and may supersede the following requirements. The most restrictive requirements shall apply. CFC 903.

Installation of the fire sprinkler system requires approved plans and permit from the Rancho Adobe Fire District prior to work commencing. The owner/contractor shall submit a permit application with three (3) sets of plans, cuts sheets, and calculations. This system shall comply with NFPA-13R or NFPA13.

2. Sprinkler system supervision and alarms. Valves controlling the water supply for automatic sprinkler systems, pumps, tanks, water levels and temperatures, 247 of 814
critical air pressures and water flow switches on all sprinkler systems shall be electrically supervised by a listed fire alarm control unit. CFC 903.4 Installation of the fire alarm system, or sprinkler monitoring systems, must be conducted with approved plans and permit obtained from the Rancho Adobe Fire District prior to work commencing. The fire alarm submittal shall include a permit application with three (3) sets of plans, cut sheets, and calculations for review. The system shall comply with NFPA-72.

3. Fire Alarm System required. Fire alarm systems and smoke alarms shall be installed in Group R-2 and R‐2.1 occupancies as required in Sections 9072.91.1 and 907.2.9.4. CFC 907.2.9.

Installation of the fire alarm system requires approved plans and permit from the Rancho Adobe Fire District prior to work commencing. The owner/contractor shall submit a permit application with three (3) sets of plans, cuts sheets, and calculations. This system shall comply with NFPA-72.

4. Elevator car to accommodate ambulance stretcher. Where elevators are provided in buildings four or more stories above, or four or more stories below, grade plane, not fewer that one elevator shall be provided for fire department emergency access to all floors. The elevator car shall be of such a size and arrangement to accommodate an ambulance stretcher 24 inches by 84 inches with not less than 5-inch radius corners, in the horizontal, open position and shall be identified by the international symbol for emergency medical services (star of life). The symbol shall be not less than 3 inches in height and shall be placed inside on both sides of the hoist-way door frame. CBC 3002.

5. Fire Department Access. Fire Apparatus Access Roads shall be constructed and provided prior to construction of any buildings on the site. Fire apparatus access roads shall be maintained for fire department operations at all times during the construction process. Closure or changes of fire apparatus access roads shall be reviewed and approved by the Petaluma Fire Prevention prior to closure or changes. CFC 503

6. Fire Hydrants. All required fire hydrants shall be installed and accepted by the Rancho Adobe Fire District prior to loading of any combustibles on-site or construction of the building. CFC Appendix D.
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7. Key Boxes. Where access to or within a structure or an area is restricted because of secured opening or where immediate access is necessary for life-saving or fire-fighting purposes, the fire code official is authorized to require a key box be installed in an approved location. The key box shall be of an approved type listed in accordance with UL 1037 and shall contain keys to gain necessary access as required by the fire code official.

Installation of the key boxes requires approved plans and permit from the Rancho Adobe Fire District prior to work commencing. The owner/contractor shall submit a permit application with three (3) sets of plans, cuts sheets, and calculations. This system shall comply with CFC Section 506.

8. Emergency Responder Radio Coverage. All new buildings shall have approved radio coverage for emergency responders within the building based on the existing coverage levels of the public safety communication system of the jurisdiction at the exterior of the building. The owner/project shall conduct appropriate testing and/or provide emergency responder radio coverage approved by the Rancho Adobe Fire District.

Installation of the emergency responder radio coverage system requires approved plans and permit from the Fire Prevention Bureau prior to work commencing. The owner/contractor shall submit a permit application with three (3) sets of plans, cuts sheets, and calculations. This system shall comply with CFC Section 510.

9. Fire and Life Safety Plan. Submittal of a Fire and Life Safety Plan is required.

10. Corridors. Corridors shall be fire-resistance rated in accordance with Table 1020.1. The corridor walls required to be fire-resistance rated shall comply with Section 708 of the California Building Code for fire partitions.

ENGINEERING DEPARTMENT CONDITIONS
General

1. The application involves three parcels (APNs 144-274-002, 144-274-014 & 144- 274-015) to be merged. The applicant shall make submittal of the parcel merger. The merger must be complete prior to the issuance of a Building Permit.

2. The applicant shall submit a sewershed study demonstrating sufficient capacity for the project.
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3. This project is required to construct new underground utilities and remove all above ground utilities on the project street frontages of East Cotati Avenue.

4. This project shall comply with City Code and City Council policy by undergrounding all utilities and utility boxes that are within or visible from the public right-of-way. No utility boxes for service shall be located on public property. PRIOR TO ISSUANCE OF A GRADING PERMITS, BUILDING PERMITS, AND/OR IMPROVEMENT PLANS, the applicant shall submit plans that identify the location of any utility boxes and a cross section that provide method used for undergrounding.

5. All plan sets submitted for improvement plans and final map shall have a sheet printed with all conditions of approval written herein.

6. The applicant agrees to annex the property into the City’s Community Financing District (CFD) for the residential units.

7. The driveway on Building 2, PA #17/17 shall be built with which ever project completes first. The access easement for the benefit of Building 2 shall be recorded prior to Building Permit for either PA #17/16 or 17.

8. Prior to final design review, the Applicant shall provide a letter from Recology stating their acceptance of the Trash Truck Exhibit and their willingness to serve.

9. Eliminate parking along the East Cotati Avenue frontage and shift the bike lane to the curb.

Environmental

10. Prior to final design review, the applicant shall provide a lighting plan together with a photometric study that identifies the minimum and maximum footcandles. This plan shall utilize the City’s decorative standard light fixtures with a maximum height of 14 feet and house-side shields as appropriate to minimize glare into residences. The plan shall demonstrate that lighting shall avoid “spilling” to off-site residential sites. The lighting plan and photometric study shall be reviewed and approved by the Community Development Director and Chief of Police.

11. The applicant shall incorporate the Best Management Practices for construction into the construction and improvement plans and clearly indicate these provisions in the specifications. In addition, an erosion control program shall be 250 of 814
prepared and submitted to the City of Cotati prior to any construction activity.

BMPs shall include but not be limited to the following:
a Exposed soils shall be watered periodically during construction, a minimum of twice daily. The frequency of watering shall be increased if wind speeds exceed 15 mph. Only purchased city water or reclaimed water shall be used for this purpose. Responsibility for watering shall include weekends and holidays when work is not in progress.
b Haul trucks used to transport soil shall utilize tarps or other similar covering devices to reduce dust emissions.
c Grading and construction equipment operated during construction activities shall be properly mufflered and maintained to minimize emissions.

Equipment shall be turned off when not in use.
d Traffic speeds on unpaved roads shall be limited to 15 mph e Construction sites involving earthwork shall provide for a gravel pad area consisting of an impermeable liner and drain rock at the construction entrance to clean mud and debris from construction vehicles prior to entering the public roadways. Street surfaces in the vicinity of the project shall be routinely swept and cleaned of mud and dust carried onto the street by construction vehicles.
f Enclose, cover, water twice daily or apply (non-toxic) soil binders to exposed stockpiles (dirt, sand, etc.).
g The Developer shall designate a person with authority to require increased watering to monitor the dust and erosion control program and provide name and phone number to the City of Cotati prior to issuance of grading permits. The name of the designated person shall be posted along with their phone number at the site prior to all on-site activities.

12. In the event that any cultural resources are uncovered during earthmoving activities, all construction excavation activities would be suspended for a period to be determined by a City-approved archaeologist to allow for adequate inspection, recommendation and retrieval, if appropriate.

13. In the event that human remains are uncovered during earthmoving activities, all construction excavation activities shall be suspended, and the following measures shall be undertaken:
a The Sonoma County Coroner shall be contacted.
b If the coroner determines the remains to be Native American the coroner shall contact the Native American Heritage Commission within 24 hours. 251 of 814
c The project sponsor shall retain a City-approved qualified archaeologist to provide adequate inspection, recommendations and retrieval, if appropriate. d The Native American Heritage Commission shall identify the person or persons it believes to be the most likely descended from the deceased Native American and shall contact such descendant in accordance with state law.
e The project sponsor shall be responsible for ensuring that human remains and associated grave goods are reburied with appropriate dignity at a place and process suitable to the most likely descendent.

14. The project sponsors shall comply with all Federal, State and local laws regarding use of hazardous materials at construction sites.

15. The project shall comply with all water quality requirements of the Regional Water Quality Control Board and the City Engineer.

16. The contractor shall comply with “Best Management Practices” as defined in California Storm Water Best Management Practices Handbooks “Construction Activity” and all requirements of the State of California “General Construction Activity Storm Water Permit”, including the following:
a Appropriate erosion control devices shall be utilized to retain sediment within the project areas during the construction season. b Prior to any grading activity that will occur after October 1 and before May 1, storm drains, outlet structures, check dams and ditches shall be constructed.
c Storm water shall not be allowed to flow directly down unprotected slopes.

Energy dissipating structures and erosion control devices shall be placed at all drainage outlets, which discharge into natural channels. d Sediment basins or filtration systems shall be used to ensure that water entering the storm drain system below the construction site is the same quality and character as the water above the site.
e Storm water runoff from the construction site shall be directed toward an inlet with a sediment or filtration interceptor prior to entering the storm drain system.
f After construction is complete all storm drain systems associated with this project shall be inspected and cleared of accumulated sediments and debris. g During the rainy season (October 15 to April 15), all paved areas would be kept clear of earth material and debris. The site is to be maintained by the developer, contractor or owner so that a minimum of sediment-laden runoff leaves the site.
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h During the rainy season (October 15 to April 15) all sediment barriers are to be inspected and repaired at the end of each working day and, in addition, after each storm. Sediment shall be removed as needed and filters cleaned or replaced when accumulations reach one-third the height of the barrier. i Entrance to the project shall be maintained in a condition that would prevent tracking or flowing of sediment into a public right-of-way.

17. Prior to receiving final occupancy for the first residential unit, the applicant shall submit a written certification by a qualified engineer verifying that all drainage improvements have been installed in accordance with the approved improvement plans and with the Stormwater Control Plan for the project.

18. Noise-generating construction activities, including truck traffic coming to and from the site for any purpose, shall be limited to Monday through Friday 7:00 a.m. to 7:00 p.m. (Cotati Land Use Code Section 17.30.050). No construction shall be permitted on Saturdays, Sundays or national holidays. Interior finish work (e.g., flooring installation, painting, etc.) after the close-in inspection only shall be permitted on Saturdays from 9:00 a.m. to 5:00 p.m.

19. All construction equipment powered by internal combustion engines shall be properly muffled and maintained to minimize noise. Equipment shall be turned off when not in use.

20. All stationary noise-generating construction equipment, such as air compressors, shall be located as far as practical from existing nearby residences and/or provided with acoustical shielding. Quiet construction equipment shall be used when possible.

21. PRIOR TO ISSUANCE OF A BUILDING/GRADING PERMIT, the project sponsor shall designate a “noise disturbance coordinator,” who would be responsible for responding to any local complaints about construction noise. The disturbance coordinator shall determine the cause of the noise complaint (e.g., starting too early, bad muffler, etc.) and shall take prompt action to correct the problem.

This designated person shall have his/her name and phone number posted on the site prior to all site work activities.

22. At all times during project grading and construction, stationary noise-generating equipment shall be located as far as practicable from sensitive receptors and placed so that emitted noise is directed away from residences. 253 of 814

23. Unnecessary idling of internal combustion engines shall be prohibited.

24. Neighbors located adjacent to the construction site shall be notified of the construction schedule in writing.

25. PRIOR TO ANY SITE WORK, the contractor shall provide a traffic control plan which, at a minimum, addresses ingress and egress, haul route, flagging, and maintenance of the road and identifies a staging area. The plan shall be reviewed and approved by the Chief of Police and the Planning Department prior to the start of any site work.

CITY ENGINEER
(Unless otherwise stated, conditions in this section shall be to the satisfaction of the City Engineer.)
General Requirements:

26. The developer shall prepare and submit improvement plans for the construction of all public improvements including water, sanitary sewer, storm drain facilities, roadway improvements, curbs, gutters, detached sidewalks, parkway strips, signing, striping, streetlights and demolition showing all items to be removed such as buildings, well system, septic system, etc. All design and construction shall conform to the latest edition of the City of Cotati Design and Construction Standards. The submittal shall include an Engineer’s Estimate for the public improvements.

27. The Improvement Plans shall include an approval line for the Geotechnical Engineer to sign off on the plans based on their Geotechnical Investigation Report.

28. Improvement plans must be approved and signed by the City Engineer prior to the issuance of an Encroachment Permit, Grading Permit or Building Permit.

29. Any topo or survey Plans shall include an stamped by the responsible Surveyor.

30. Plan check and inspection fees shall be paid prior to the signature of the improvement plans.

31. Mailbox plans and locations shall be approved by the Cotati Postmaster prior to improvement plan approval. The developer shall provide a letter and exhibit showing mailbox locations from the Cotati Postmaster approving mailbox locations.

32. All curb, gutter and sidewalk along the project frontage that are in disrepair shall be removed and replaced as part of the improvements for this project. As well, 254 of 814
all nonconforming pedestrian ramps and driveway approaches shall be brought up to current accessibility standards. All as determined by the City Engineer.

33. Deviations from City Standards shall be approved by the City Engineer. The applicant’s engineer shall request all design exceptions in writing.

34. Project benchmark shall be based on a City approved USGS benchmark.

35. Improvement plans shall be approved by the Rancho Adobe Fire Protection District.

36. A “dry” Utility Plan shall be submitted for review and approval by the City Engineer.

37. Provide letter from the Geotechnical Engineer certifying that the recommendations included in the Geotechnical Report dated February 2008 are current and conforming to all design requirements of 2019. Additionally, a qualified geotechnical consultant shall be on site to observe construction activities. If necessary, modifications to the Geotechnical Exploration Report will be made based on the observation and testing of method and materials used during various construction stages.

38. The design of all earthwork, cuts and fills, drainage, pavements, utilities, foundations and structural components shall be done by a qualified engineer and shall conform to requirements established under the geotechnical evaluation and to the specifications set by the City Engineer. The project Engineer shall provide written certification with submittal of Improvement Plans that the design conforms to the specifications.

39. Prior to approval of the Improvement Plans, the applicant shall submit a SonomaWater approval letter to the City. Finish Floor elevations to be confirmed after SonomaWater Hydraulics and Hydrology approval.

40. Prior to issuance of improvement plans, the project sponsor shall submit a final detailed drainage design that complies with the City of Cotati standards.

41. Required Improvement Plan Notes:
a "Any excess materials shall be considered the property of the contractor and shall be disposed of away from the job side in accordance with applicable local, state and federal regulations."
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b "All existing overhead utilities (of 26,000 volts or less) and proposed utilities, both on-site and along project frontages, shall be placed underground. This does not include surface mounted transformers, pedestal mounted terminal boxes and meter cabinets, which are required to be screened by means acceptable to the City."
c "If hazardous materials are encountered during construction, the contractor will halt construction immediately, notify the City of Cotati, and implement remediation (as directed by the City or its agent) in accordance with any requirements of the North Coast Regional Water Quality Control Board." d "The contractor(s) shall be required to maintain traffic flow on affected roadways during non-working hours, and to minimize traffic restriction during construction. The contractor shall be required to follow traffic safety measures in accordance with the Cal Trans “Manual of Traffic Safety Controls for Construction and Maintenance Work Zones.” The City of Cotati emergency service providers shall be notified of proposed construction scheduled by the contractor(s). The project specifications shall require that the contractor(s) notify emergency service providers in writing at least 24 hours in advance of its proposed schedule of work. A Traffic Handling Plan shall be provided to the City for City Engineer approval prior to any work occurring within the public right of way."
e The following notes shall be added to the cover of the plans in bold.  IMPORTANT NOTICE TO DEVELOPER AND ALL CONTRACTORS:
 Utility joint trench location shall be field staked and approved by the City PRIOR TO INITIATION OF ANY TRENCHING. This required approval by the City is independent of any authorization granted by the Utility Company, the Developer and/or Contractor. Trench locations within the tree protection zones of any protected trees may not be approved by the City. The City's inspector may require consultation by the City's arborist prior to approval of trench location. Failure to comply with these requirements may result in an immediate order to stop work, as well as incurrence of civil penalties as provided by City Ordinance.
 NOTE: Soil shall not be treated with lime or other cementitious material without prior express permission by the City Engineer.
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Roadway Improvements

42. The improvement plans shall include street profiles, typical street sections and calculations for the street design. Said plan shall incorporate the findings and recommendations from the approved Soils Report for the pavement design and the approved Traffic Study. The proposed T.I. shall be submitted to the City Engineer for review and approval.

43. The structural section of all road improvements shall be designed using a soil investigation which provides the soils R-value and expansion pressure test results. If no R-value tests are supplied, roadway structural sections shall be designed using and R-value of 5.0. A copy of a soils report and structural section calculations shall also be submitted with the first improvement plan check.

44. Ramps for disabled persons shall be provided at all intersections and crosswalks where sidewalks are proposed.

45. Sidewalk widths shall be provided to allow a clear five-foot walkway at all locations, including but not limited to areas where mailboxes, streetlights, street signs and fire hydrants are to be installed.

46. One-inch chases shall be installed to all parkway strips from adjacent parcels to allow for the installation of irrigation lines
Lighting, Signing and Striping Plan

47. Plans shall be subject to the review and approval of the City Engineer and the Police Chief. A photometric plan shall be submitted to the City Engineer for review and approval.

48. Striping, pavement markings and traffic signage shall be provided on all streets as necessary and as required by the City Engineer. Signage restricting parking and red painted curbing shall be installed where appropriate. Striping shall include no parking zone with red paint for limits noted by Sonoma County Transit The striping and signage plan shall direct exit traffic to right turn only and median striping as shown

49. Streetlights shall be City Standard Decorative type or approved equal. Developer shall provide additional streetlights for replacement purposes (5% of total or as otherwise approved).

Drainage Improvements

50. All project related flooding impacts shall be mitigated by the project developer.

Drainage improvements shall be designed by a Civil Engineer registered in the State of California in accordance with the Sonoma County Water Agency’s Flood Control Design Criteria. Public and private drainage improvements (including Storm Water Management Plans) shall be shown on the improvement plans and shall be submitted to and approved by the Sonoma Water (SCWA) prior to 257 of 814
approval by the City Engineer.

51. All design and construction shall meet the requirements of the most recent editions of City of Cotati, Phase I MS4 permit and the City of Santa Rosa Low Impact Development (LID) Technical Design Manual. Prior to approval of the improvement plans, the applicant shall submit a Final Storm Water Mitigation Plan (FSWMP) subject to review and approval by the City Engineer. The plan shall include post-construction storm water treatment and peak reduction measures, and shall address maintenance of private and/or public storm water facilities. The FSWMP shall be certified by a QSD and be approved by the City Engineer prior to issuance of the grading permit.

52. No lot to lot drainage is allowed. No concentrated drainage may discharge across sidewalks. All site drains must be connected to the public storm drain system or discharged through the face of curb or to an established waterway. A minimum of two curb drains will be required to drain each residential lot.

53. Plans and engineers of record certifications shall be provided by the developer to demonstrate compliance of all improvements, including building pads and finished floor elevations, with the City’s Flood Plain Ordinance, to the satisfaction of the Building Official and City Engineer. Pad elevations shall be constructed at a minimum of 1 foot above the 100-year Floodplain/Hydraulic Grade Line as determined by the City and certified by the project engineer.

54. Prior to approval of improvement plans and issuance of any Permits the applicant/developer shall submit a Declaration of Covenants Regarding Maintenance of Storm Water Best Management Practices (BMP) Facilities. The applicant/developer shall obtain the City’s review and approval of the said Declaration and record with the Sonoma County Recorder prior to approval of the Final Map. The planter and landscape strips adjacent to public streets shall be included in the Declaration and be maintained by the private property owner(s), subject to review and approval by the City Engineer.

Grading Improvements

55. Incorporate Wildlife Exclusion (per Sol Ecology Report) fencing prior to any earth disturbing activities.

56. The developer’s engineer shall include a site-grading plan prepared by a Civil Engineer registered in the State of California as part of the required improvement drawings. Lots shall be generally designed to drain to the street, unless otherwise approved in the interest of tree preservation or other unusual circumstances.

57. The applicant shall submit to the City for review and approval, a detailed Soils Report prepared by a Civil Engineer registered in the State of California and qualified to perform soils work. The grading plan shall incorporate the 258 of 814
recommendations of the approved Soils Report and be signed by the project Geotechnical Engineer.

58. Where soil or geologic conditions encountered during grading operations that are different from those anticipated in the Soils Report, or where such conditions warrant changes to the recommendations contained in the original soil investigation, a revised soil or geologic report shall be submitted for approval by the City Engineer. It shall be accompanied by an engineering and geological opinion as to the safety of the site from hazards of land slippage, erosion, settlement, and seismic activity.

59. All existing wells, septic tanks and/or underground fuel storage tanks shall be abandoned under permit and inspection of Sonoma County Environmental Health or other designated agency. If there are none, the project engineer shall provide a letter describing the scope of the search done to make this determination.

60. Improvements plans shall include an erosion control (winterization) plan. The plan must include an order of work and staging/scheduling component indicating when facilities must be installed and when they may be removed. A separate Rain Event Action Plan (REAP) shall be required and prepared as part of the Storm Water Pollution Prevention Plan (SWPPP). A copy of the REAP shall be kept on-site throughout the duration of construction activities.

Utility Improvements

61. All existing overhead utilities (of 26,000 volts or less) and proposed utilities, both on-site and along project frontages, shall be placed underground. All proposed utilities are to be placed underground per Chapter 17.30.100 of the City’s Municipal Code.

Sanitary Sewer and Water Improvements

62. All public water and sewer mains must be located in public right-of-way. Any and all rights-of-way, or if unavoidable, easement dedications must be made by the property owner to the City, at property owner’s expense, prior to final acceptance of the project by the City.

63. All private storm drain, potable water, fire service and sanitary sewer mains, laterals, and appurtenances, must be located within the private property and clearly identified as private on the design drawings.

64. Sewer grades must be designed such that ultimate finished floors are a minimum of 12” above upstream manhole or clean-out rim elevations. Inadequate elevation differentials or grade on private SS mains and laterals, as determined by the City, must be mitigated by either raising finished floor elevation(s) or installing privately owned and operated SS lift station(s) with grinder/ejector pump(s) on site.
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65. All irrigation water mains, service laterals, plumbing, valves, pipes, appurtenances, irrigation parts, vaults and boxes must be purple.

Permit Requirements

66. Provide evidence that a Notice of Intent has been submitted and received by the North Coast Regional Water Quality Control Board for a General Construction Activity Storm Water Permit. Two copies of the project Storm Water Pollution Protection Plan shall be provided to the City prior to issuance of a grading permit, encroachment permit or building permit.

Other / Landscape Parcels

67. Landscape and irrigation plans for plantings within the public street right-ofway shall be submitted at the time of the Improvement Plan submittal package.

Said plan is subject to review and approval by the City Engineer.

68. The applicant shall submit a revised Water Conservation Plan for review and approval by the City Engineer, that incorporates the following:
a Plants selected for this development shall not cause the Estimated Total Water Use to exceed the Maximum Applied Water Allowance as defined within the Water Efficient Landscape Ordinance (WELO);
b Turf shall not be permitted within the front yards. Turf shall only be permitted in the rear yard if the above standard can be made; c Plants shall be grouped by water needs to allow for irrigation by zone (hydro-zoning);
d Invasive plant species listed by Cal-IPC shall be prohibited; e Install high-efficiency irrigation systems and add smart controllers; f Mulch all exposed soil surfaces in planting areas with a minimum of 2 inches;
g Incorporate organic amendments (compost) to a minimum depth of 8 inches;
h Install separate dedicated landscape meters which would be used only for landscape irrigation;
i Install rain water collection system(s).

The following Conditions of Approval shall be satisfied prior to Final Map Approval:

69. A final map, as defined in the State Subdivision Map Act and prepared by a licensed surveyor or civil engineer, showing all parcels, rights-of-way, and easement(s) shall be submitted to the City Engineers Office for review and approval. Upon recording of the map, the subdivision is valid. 260 of 814

70. Submittal of the Final Map to the City Engineer for review and approval, shall include:
 A recent (within 3 months) Preliminary Subdivision Title Report;  Closure calculations;
 Documentation of existing easements and property encumbrances within the project;
 Improvement Plans and associated back up reports;
 Current submittal check list provided by the City.
 Article of Incorporation for the proposed Home Owners Association with draft Covenants, Conditions and Restrictions.
 Current Plan and Map check fee/deposit.
 Current Inspection fee/deposit.

71. The developer shall present to the City of Cotati, free of encumbrances, an irrevocable offer of dedication for rights-of-way as follows:
a Public Utility Easements, Public Sidewalk Easement, separate Public Water, Storm Drainage and Sanitary Sewer Easements as necessary, and as shown on the approved tentative map.
b The developer shall secure all necessary rights-of-way and easements for onsite and offsite road, utility, and drainage facilities. Rights-of-way and easements shall be dedicated on the map or provided by grant deed, when off-site. The developer shall prepare all necessary legal descriptions and deeds.
c Abandonment of any existing easements shall be referenced on the final map.

Local Agency Sheet

72. NOTE ON FINAL MAP: “Prior to the issuance of building permits, all applicable development impact fees shall be paid to the satisfaction of the Building Official and in accordance with City and local district ordinances.”

73. Limits of the 100-year flood elevation, as shown on the latest FEMA FIRM maps & Flood Insurance Study and determined by the City, shall be shown on the final map and labeled as “Subject to Inundation” (if applicable) or a note stating “No 100-Year FEMA areas of Inundation including in the boundary of this map”, whichever is applicable to the subdivision.

Subdivision Agreement

74. Prior to approval of the final map the developer shall either complete required construction as shown on the signed improvement plans, or enter into an 261 of 814
improvement agreement and post security with the City of Cotati, agreeing to complete the required construction within 24 months of grading permit issuance and prior to a request for occupancy of any structures, or as otherwise established by the City Engineer.

75. If the property is not presently included, the owner shall execute an agreement to annex into the City’s Community Financing District (CFD). The owner shall create a CFD if one does not already exist, and annex the property into it.

Determination of parcel descriptions to be dedicated to the District (versus roadway right of way) shall be determined by the City Engineer.

Prior to Issuance of a Grading Permit the Following Conditions Shall Apply:

76. The Improvement Plans shall be approved by the City Engineer.

77. Submittal of copies of required permits and/or agreement from resource agencies.

78. A haul route shall be submitted to the City Engineer for review and approval for the required import/export of material and for all demolition debris or unsuitable material disposal.

Prior to Issuance of an Encroachment Permit the Following Conditions Shall Apply:

79. A Traffic Control and Work Plan shall be submitted to the City Engineer for review and approval.

80. An Encroachment Permit shall be required prior to performing work on public utilities or work within public rights-of-way or public easements.

During Construction Operations the Following Conditions Shall Apply:

81. Prior to beginning construction, the applicant shall obtain a demolition permit from the City for removal of all existing structures on the site, for those structures identified to be demolished on the tentative map.

82. The developer shall keep adjoining public streets free and clean of project dirt, mud, materials, and debris during the construction period, as found necessary by the City Engineer.

83. If any hazardous waste is encountered during the construction of this project, all work shall be immediately stopped and the Sonoma County Environmental Health Department, the Fire District the Police Department, and the City Inspector shall be notified immediately. Work shall not proceed until clearance has been issued by all of these agencies.
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84. During construction, the Contractor shall be responsible for controlling noise, odors, dust and debris to minimize impacts on surrounding properties and roadways. Contractor shall be responsible that all construction equipment is equipped with manufacturers approved muffler’s baffles in compliance with all City codes relating to noise and idling equipment. City Code includes but is not limited to section 17.30.050. Failure to do so may result in the issuance of an order to stop work.

85. If grading is to take place between October 15 and April 15, both temporary and permanent erosion control measures, conforming to the project erosion control plans shall be in place before October 1st. Erosion control measures shall be monitored and maintained continuously throughout the storm season.

86. The following minimum Best Management Practices (BMPs) shall be required during construction:
a Construction crews shall be instructed in preventing and minimizing pollution on the job.
b Stabilize construction entrance/exit to prevent tracking onto roadway. Only one stabilized construction entrance/exit will be allowed per site. Vehicles entering and leaving construction sites spread pollutants such as sediment, gravel, and other loose particles onto adjacent roads. Pollutants are washed into roadside ditches and are a nuisance to drivers and may cause damage to vehicles.
c Protect exposed slopes from erosion through preventative measures. Cover slopes to avoid contact with storm water by hydro-seeding, mulch, use of plastic sheeting or other approved means.
d Use brooms and shovels when possible to maintain a clean site. Use of a hose is not recommended. Introducing water as a cleanup method adds to water pollution.
e Designate a concrete washout area, if needed, to avoid wash water from concrete tools or trucks from entering storm drain systems. Maintain washout area and dispose of concrete waste on a regular basis. f Establish a vehicle storage, maintenance, and refueling area, if needed, to minimize the spread of oil, gas, and engine fluids. Use of oil pans under stationary vehicles is strongly recommended.
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g Protect drain inlets from receiving polluted storm water through the use of filters such as fabrics, gravel bags or straw wattles.
h Be prepared for rain and have the necessary materials onsite before the rainy season.
i Inspect all BMPs before and after each storm event. Maintain BMPs on a regular basis and replace as necessary, through the entire course of construction.

Prior to Acceptance of Public Improvements and Bond Exoneration, the Following Conditions of Approval Shall Be Satisfied:

87. All improvements shown on the Improvement Plans shall be completed and accepted by the City.

88. Prior to acceptance of improvements or occupancy of buildings, existing curb, gutter and sidewalk to remain shall be inspected by the City. Any curb, gutter and sidewalk which is not in accord with City standards or is damaged before or during construction, shall be replaced.

89. The developer shall provide a written statement signed by his or her engineer verifying that the grading and/or drainage improvements are completed in accordance with the plans approved by the Sonoma Water, the City Engineer, and the Building Official.

90. A complete set of As‐Built or Record, improvement plans showing all constructive changes from the original plans, shall be provided to the Public Works Department prior to final acceptance of the public improvements. 264 of 814
Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: ADOPTION OF RESOLUTION APPROVING THE FISCAL
YEAR 2024/25 BUDGET
Date: June 25, 2024
Written by: Angela Courter, Director of Administrative Services Recommendation
It is recommended that the City Council Adopt a Resolution Approving the City of Cotati Budget for Fiscal Year 2024/25.

Background
The City Council held a Strategic Planning Study Session on February 20, 2024, where the City Council, the public, and staff reviewed and updated the goals and objectives, as well as the project priorities for Fiscal Year 2024/2025.

Subsequently, the City Council held two Budget Study Sessions, on April 2nd and May 13th, to review the draft proposed Fiscal Year 2024/25 budget, take public comment, and provide direction to staff.

City Staff have been continuing work to improve the City’s third online budget book that is available to the public at:
https://city-cotati-ca-budget-book.cleargov.com/14567
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.

Council Goals and Objectives:
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During the strategic planning sessions, the City Council provided feedback on the goals and objectives for the City. Key Goals were also then summarized for linking departmental goals and objectives. The final version of these goals is incorporated within the final budget documents presented and attached herein for approval.

Highlights of the overall FY Budget are;
• Conservative 2024/25 budget outlook.
• Balanced budget maintaining prudent fund balances.
• Continue to prioritize council goals of economic development, infrastructure, and community, while integrating equity and climate resilience in our daily operations and planning.

General Fund Highlights:
• Balanced Operating Budget for the 16th straight year. • The General Fund Operating Revenue exceeds Operating Expenditures by approximately $0.5M.
• The General Fund maintained a reserve of 25% of operating expenses, per Resolution No. 2009-50.
• The General Fund has an additional reserve of $1.6M for a total reserve of 42% of the proposed operating expenditures.
• General Fund Ending Fund Balance of $4.2M
General Fund Risks:
• Annual net operating surplus must be $1.5M or more to support basic maintenance/grant matching capital programs in future fiscal years. Surplus currently estimated at $0.5M in the FY 24/25 budget and estimated at $0.8M for FY 23/24. • Continued planned mid-year discussion on CalPERS actuarial results and associated UAL strategies that require prefunding to minimize interest costs • Petaluma is moving to expand cannabis retail, which may negatively affect cannabis retail revenues in Cotati. Petaluma currently allows two delivery-only retailers and an unlimited number of manufacturing, processing and testing operations. Proposed changes anticipated include the addition of three storefront retailers.

Capital Projects Highlights:

The proposed City budget includes the full 5 year CIP for the City, for planning purposes. For Fiscal Year 24/25, General Fund funding for the CIP is $4.4M, for a total of $7.4M in capital projects (All funds) to improve the community, including:
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• 2025 St. Improvements Projects
• 2026 St Improvements Projects
• Annual Bike/Ped Safety Projects
• Annual Landscaping Improvements Projects
• Class 1 Pathway Maintenance Project
• Gateway Signage Marquee and Main Entrance Points
• Cator Field Improvements
• Sunflower Park Improvements Phase 1
• Putnam Park Phase 1
• Veronda Falletti Ranch Barns
• Trash Implementation Plan Phase 1
• Landscaping Improvements
• Sidewalk Gap Closures
• Design Hwy 116/W. Cotati Ave
• Design- Falletti Ranch Barns
• City Hall Public Meetings Streaming System Improvements Internal Service Funds Highlights:

Vehicle Maintenance and Replacement
o $527,000 in funding across City Funds based on fleet usage. o Purchase of replacement police vehicles and various public works equipment and vehicles as needed.
o Evaluation of all-electric vehicles for replacements going forward, as applicable.

Compensated Absences Fund
o $119,480 funding provided by City wide allocation costing.

Enterprise Fund Highlights:
• The Enterprise Funds budget includes a combined $1.3 Million in various water and sewer capital projects including:
o SCADA Water/Sewer Server Replacement and Relocation
o Wastewater System Emergency Generator Project
o Well 1A/Well 3 Treatment Renewal and Replacement
o West Sierra Tank Recoating
The sewer operating fund has been operating with a negative operating balance. This was accounted for in the most recent rate studies approved by the City Council, with a “soft landing“ approach to turn around the annual operating deficit through short term use of reserves. This approach is intended to avoid customer rate shock with sudden rate adjustments. However, 267 of 814
unanticipated cost pressures, most significantly the cost of wastewater treatment, has created an on-going challenge for this fund. As discussed during budget development, staff will review enterprise rates again to determine if the current approach will meet the City’s objectives or if adjustments are needed.

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
The City has continued strategic projects and has not significantly reduced the reserve funds. The recommended budget includes a General Fund that is balanced with the estimated annual operating revenues exceeding the budget operating expenditures. However, as previously mentioned under General Fund Risks, the City must work to increase its’ net surplus operating revenue to perform future infrastructure maintenance, grant matching and re-build reserves. Due to the expense associated with reconstruction work currently underway, infrastructure in the general fund is supported with historical reserves. The overall fund total reserve is estimated to be $4.1M, or 42% of operating expenditures. This is an increase over prior years adopted budget which was estimated at $3.7M or 40% of operating expenses, but still higher than the required reserve of 25%.

Environmental Issues
The creation of an Annual Budget is not a project under the California Environmental Quality Act (CEQA), per the definition of a project identified in Section 15378 of CEQA in that there will be no direct, or reasonably foreseeable indirect physical change in the environment 268 of 814
RESOLUTION NO. (XX)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COTATI ADOPTING THE FISCAL YEAR 2024/25 BUDGET, INCLUSIVE OF THE 5 YEAR CIP WHEREAS, the City Council had previously held duly noticed study sessions on February 20, April 2, and May 13, 2024, and provided the opportunity for and received public comments on the Fiscal Year 2024/25 Proposed Budget; and
WHEREAS, the Planning Commission reviewed and found the 5 year CIP in conformance with the City’s General Plan at the April 15, 2024 Planning Commission meeting; 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 WHEREAS, the action of adopting an annual budget does not constitute a project as defined by California Environmental Quality Act (“CEQA”) and CEQA Guidelines Section 15378; therefore, no environmental review is required.

NOW THEREFORE BE IT RESOLVED, that the City Council of Cotati:

1. Adopts the proposed budget for Fiscal Year 2024/25 as the effective budget as of July 1, 2024.

2. Authorizes the City Manager 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. Authorizes unexpended appropriations from the Fiscal Year 2023/24 budget to 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. Amends the current year budget, Fiscal Year 2023/24, to equal the estimated actuals for the current year.

5. Authorize the City Manager, or their designee, to make minor typographical (nonfinancial) edits as may be required for budget award application.

6. 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 June 25, 2024, by the following vote, to wit:

Approved:___________________________
Mayor
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Attest:______________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:______________________________
City Attorney
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Proposed Budget
Fiscal Year
2024/25
PRESENTED BY:
DAMIEN O’BID, CITY MANAGER
ANGELA COURTER, DIRECTOR OF ADMIN

SERVICES
1 City of Cotati
City Council Session June 25, 2024
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2 Annual Budget Cycle
November-December
City Management
Budget Planning
Meetings
January
Mid-Year Financial
Performance Review
March
Budget Strategic
Planning Meetings with
Budget Guidelines
Internal Budget Review
April
Draft Budget Creation
and Review
Public Budget
Workshops
May/June
Budget Adoption
July-December
Financial Evaluations,
Budget Adjustments as
Approved by Council
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Budget Study Session Overview
3 Strategic Planning Session
•Developed City Objectives/Goals
20 Feb. 2024
Budget Study Session
•General Fund
•City Goals Finalization
2 Apr. 2024
Budget Study Session
•Enterprise Funds
•Special Revenues
•Capital Projects
•Transfers In and Outs
13 May 2024
Budget Adoption
Salary Schedule Adoption
Financial Policy Update Adoption
Appropriations Limit Adoption
25 June 2024
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Long Term Vitality
•Balanced Budget
•Economic Development
•Affordable & Appropriate Development
•Infrastructure Preservation
•Pursue Grant Opportunities
Climate Change
•Implementing the local goals in the adopted
Climate Action 2020 and Beyond
•Community Outreach and Communication to
Adapt to Climate Change
Community Engagement
•Promote programs or processes to improve
community awareness and participation
•Explore opportunities for neighborhood level
programs
Equitable, Compassionate & Healthy
Community
•Diversity is a Source of Strength
•Equity in Hiring/ Promoting/ Contracting
•Advance Equity & Health Partnerships
Best in Class Community Services
•Prioritize Community Safety
•Support High Quality Core Services
•Emergency Preparedness
•Update Regulations to Advance Priorities
•Responsive Development Services
•Participate Regionally to Benefit City
•Continually Improve Service Delivery
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Quick Economic Recap
UNEMPLOYMENT RATE*
The U.S. economic outlook is slow
growth1
◦ GDP for 2024 est. 2.4% vs. 2.5% growth 2023
◦ 4.2% increase in Real Personal Income in
2023
California economy same slowing2
◦ Unemployment slow rise to 5.3% but
number of jobs continued to increase
◦ 3.1% increase in Real Personal Income

SUMMARY
Unemployment
Rate April 2023 April 2024 Change
US 3.4% 3.9% 0.5%
California 4.4% 5.3% 0.9%
Sonoma* 3.6% 3.8% 0.2%

1. HTTPS://WWW.BLS.GOV/CPS/

2. HTTPS://EDD.CA.GOV/EN/ABOUT_EDD/NEWS_RELEASES_AND_ANNOUNCEMENTS/UNEMPLOYMENT-APRIL2024/#:~:TEXT=THE%20CALIFORNIA%20UNEMPLOYMENT%20RATE%20WAS%205.3%20PERCENT,APRIL%202024%2C%20WHICH%20IS%20THE%20SAME%20AS. 5 275 of 814
 Economic Uncertainty
 Federal Funds Rate Increases
 Impacts on Investments in Development
 Legislative Impacts from Federal, State & Regional Government  Budgetary Assumptions
 Revenues:
 Slowing in Sales Tax
 Slow growth in Cannabis Business Tax
 Excludes Uncertain Development Revenues
 Decreased Water Consumption Continuing
 Expenditures
 Project Cost based on Engineering Estimates
 Increased Insurance, Unknown Final Increase
 Utility Costs Increases of 20%
 Full Employment
 Continued Full Lump Sum CalPERS payment plus ADP of $335K 6 276 of 814

GENERAL

FUND A GENERAL FUND IS THE

PRIMARY FUND USED BY A GOVERNMENT
E N T I T Y.

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
TA S KS O F T H E G OV E R N M E N T E N T I T Y.
7 277 of 814
General Fund Highlights
Increase Operating Revenues of Approximately $163K for fiscal year 2024/25 Balanced Budget - Net Operating Surplus - $469 K
Total Operating Revenue - $10.4 M
Total Operating Expense - $10.0 M
General Fund is Funding $4.4M in Capital Projects
Leveraging an Additional $1.3M in Grants Matching ($5.5M total) Ending General Fund Balance of $4.2M
Budget reflects a total operating reserve of 42% exceeding the 25% requirement. 8 278 of 814
General Fund Risks
Annual net operating surplus must be $1.5M or more to support basic maintenance/grant matching capital programs in future fiscal years. Surplus currently estimated at $469K in the FY 24/25 budget.

Planned mid-year discussion on CalPERS losses and associated UAL strategies that require prefunding to minimize interest costs.

Energy Costs are continuing to increase and increases in consumption could dramatically increase costs as well.

State Budget Deficit reducing direct and passthrough County or regional grant availability Increasing mandated programs or reporting required by the City that are unfunded. These mandates either (1) require staff time which reduces availability of said staff for normal operations or (2) require outside contractor's assistance which cost more and removes the funds available for other projects or programs.

Undiversified General Fund Revenues. Over 57% of the proposed budget operating revenues are derived from Sales Tax. Over 77% is Sales Tax and Property Tax combined. 9 279 of 814
Cotati Budget Revenues:
 Based on best available information today
 Estimates are always conservative
 Sales tax and Measure S
 Approximately 57% of General Fund Operating Revenues
 Tax base is relatively secure – Subject to Consumer Spending Variability  Projecting Status Quo due to Weakening Spending offset by increased prices.  Primary Industry categories are Building/Construction, Fuel and Service Stations, Food and Drug, and the County Pool.
 Property Tax
 Approximately 20% of General Fund Operating Revenues
 Increasing 3.2% over prior year
 Assessor Applied CPI
 Transfers
 Cannabis Tax slow increasing due to increased business activity in previously inactive businesses 10 280 of 814
11 REVENUES 2023-2024 EST 2024-2025 PROP Incr /(Decr)
601- PROPERTY TAX $ 2,060,765 $ 2,123,996 $63,231 3.07% 603- SALES TAX $ 5,990,807 $ 6,027,000 $36,193 0.60%
604- OTHER TAX $ 740,715 $ 752,500 $11,785 1.59%
606- LICENSE & FRANCHISE $ 652,079 $ 597,400 ($54,679) -8.39% 607- RENTS $ 133,135 $ 114,000 ($19,135) -14.37%
608- REVENUE - OTHER AGENCIES $ 237,415 $ 218,870 ($18,545) -7.81% 609- OTHER REVENUE $ 127,365 $ 97,050 ($30,315) -23.80% 620- CHARGES FOR SVS $ 392,857 $ 356,326 ($36,531) -9.30% 640- CHARGES FOR SVA-PUB SFTY $ 66,560 $ 61,200 ($5,360) -8.05% 660- CONTRIBUTIONS $ 2,780 $ 6,300 $3,520 126.62%
680- SPECIAL REVENUES $ 96,600 $ 98,700 $2,100 2.17%
Total Operating Revenues $ 10,501,078 $ 10,453,342 ($47,736) -0.45% 281 of 814
Operating Expenditure
- All Departments -
• 2024-25 - FULL LUMP SUM PAYMENT OF THE PERS UNFUNDED

LIABILITY
• ADDITIONAL DISCRETIONARY PAYMENT OF $335 TO REMOVE

NEGATIVE AMORTIZATION

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 18%
• MARKET UNCERTAINTY

INSURANCE

INCREASES
• ESTIMATES ARE BASED ON EXISTING STAFFING
• INCLUDES ALL NEGOTIATED MOU CHANGES

ALL DEPARTMENTS

ARE BUDGETED AT

FULL STAFFING
12 282 of 814
13 EXPENSES
2023-2024 2023-2024 2024-2025
ADOPTED EST PROP Incr /(Decr)
CITY COUNCIL $170,457 $156,673 $183,606 $26,933 17.2%
CITY MANAGER 741,811 705,992 935,990 229,998 32.6%
ADMINISTRATIVE SERVICES 508,290 486,591 527,880 41,289 8.5% COMMUNITY DEVELOPMENT 1,159,735 1,051,153 942,168 -108,985 -10.4% PUB WORKS-COMBINED 1,400,181 1,510,106 1,738,486 228,380 15.1% POLICE 5,017,822 4,824,814 5,153,304 328,490 6.8%
RECREATION 449,530 416,981 502,432 85,451 20.5%
Total Operating Expenses $9,447,826 $9,152,310 $9,983,866 $831,556 9.1% 283 of 814
Department Change Highlights

No significant change from Strategic Planning or Study Sessions - Allocated Costs adjusted to addresses revised Heath Insurance - Police Department - Updated MOU for CPOA
14 284 of 814
General Fund Transfers
Transfer In for:
$170 K from Public Safety Fund
$4.2 K from Veterans Building
$32 K from Comm. Facilities Dist.
$2 K from S. Sonoma Bus. Park
Transfer Out for:
$319 K To Grants Funds
$4,086 K to Capital Projects
$12.5K to Special Revenues
15 285 of 814
16 286 of 814
Parks Capital
Projects
• 2024-25 Park Improvements - $2,536,000
• Putnam Park – Phase 1
• This project includes the perimeter pathway and pedestrian bridge across the Laguna de Santa Rosa, and parking lot lighting.
• Budget $2,471,000
• Sunflower Park – Phase 1
• Design and construction of pathways, a new play structure, picnic area, lighting and landscaping.
• Budget $5,000 (carryover)
• Veronda-Falletti Ranch Barns
• Continued Design of a barn/community program center at the Ranch.
• Budget $60,000
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Streets Capital
Projects
• 2024-25 Streets Improvements $3,249,000
• Street Paving Improvements and Maintenance
• 2025 Street Improvement - $664,000
• 2026 Street Improvement (Design) –$60,000
• Bicycle and Pedestrian Safety Improvements -
$50,000
• Gateway Signage – $61,000
• Park and Ride Replacement - $993,000 (Continued)
• Class 1 Pathway Maintenance - $185,000
• Landscaping Improvements - $35,000
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Streets Capital
Projects
• Street Continued – Partially Grant Funded
• Street Paving Improvements and Maintenance
• Redwood Drive & Cypress Completion -
$104,000
• HWY 116/W. Cotati Intersection - $362,000
• Sidewalk Gap Closures - $735,000
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Other Capital Projects
Storm Water
◦ Trash Implementation Plan - $231,000
City Buildings
◦ City Hall Public Meeting Streaming System - $306,000
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Special Revenue & Other Funds
21 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.
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Revenue Summary
22 - Other revenues are primarily Development fees for as well as RMRA funds.

By Fund
292 of 814
Revenue Summary
23 - Other revenues are primarily Development fees for as well as RMRA funds.

By Type
293 of 814
Expenditure Summary
24 By Type
- Primarily expenditures are transfers out for capital projects. 294 of 814
Internal Service Funds
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
◦ One 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
25 295 of 814

ENTERPRISE FUNDS
26 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.
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Enterprise Budget Highlights
27 Maintains a
reserve of 33% of
operating
expenses
Rate change per
the rate study for
water & sewer
Conservative
Revenue and
Expenditures
Estimates
Strategic focus on
infrastructure
improvements and
preservation
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Water Funds Combined Summary
Operating Revenues –Rate Increase – No significant Connection Fees Proposed Capital Project
Improvements:
◦ Water Meter Replacements
◦ SCADA Server Upgrade & Relocation - $82,000
◦ Well 1A/Well 3 Maintenance - $68,000
◦ West Sierra Tank Recoating - $839,000
Changes in Operating Expenditures:
◦ One Time UAL ADP in FY 2024/25
◦ Personnel budgeting full staffing
◦ Allocated Contract Services
◦ Estimated Increasing Insurance
◦ Continued water conservation programs
◦ Cost of Water Procurement -
◦ Water Agency Increased Rate of 10.0%
◦ Consistent Slowed Water Consumption
◦ Repairs & Maintenance include Water
Main Flushing Services and funding Vehicle
Maintenance contributions.
28 $0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
$5.0
2020-2021
Total Activity
2021-2022
Total Activity
2022-2023
Total Activity
2023-2024
Est. Actuals
2024-2025
Proposed
Millions
Combined Sewer Funds
Revenue and Expenses
Revenues Expenses
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Sewer Funds Combined Summary
Operating Revenues –Rate
Increase – No significant
Connection Fees
Proposed Capital Project
Improvements:
◦ SCADA Server Upgrade &
Relocation - $81,650
Changes in Operating
Expenditures:
◦ Allocated Expenses Increased
◦ Increased wastewater
treatment costs of
approximately 6.8%
◦ Debt Service back to General
Fund
29 $0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
$5.0
2020-2021
Total Activity
2021-2022
Total Activity
2022-2023
Total Activity
2023-2024
Est. Actuals
2024-2025
Proposed
Millions
Combined Sewer Funds
Revenue and Expenses
Revenues Expenses
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Conclusion
The Proposed FY 2024/25 Budget:

Prioritizes Community Engagement, Long Term Vitality, Best in Class Community Service
Initiation of actions towards address Climate Change and Equality Balanced Operating Budget
Operating Expenditures Do Not Exceed Conservatively Estimated Operating Revenues
Continued Significant Investments in Historically Deferred Capital Project Need to improve operating costs/expenses to fund future FY on-gong capital program
Fiscally Prudent
The General Fund Reserves To 42%
City staff are committed to exercise prudence and integrity in the management of public funds and provide transparency and accountability in its use. 30 300 of 814
31 301 of 814
City of Cotati
Fiscal Year 2024/25
Proposed Version - 6/14/2024
City of Cotati | Fiscal Year 2024/25 Proposed Budget Page 1 302 of 814

TABLE OF CONTENTS
Introduction 4
City Manager's Message / Transmittal Letter 5
History of City 7
Elected Officials 13
Demographics 17
Organization Chart 22
Fund Structure 23
Budget Process 26
Basis of Budgeting 32
Financial Policies 33
GFOA/CSMFO Budget Awards 34
Budget Overview 36
Executive Overview 37
Strategic Goals/Objectives 45
Short-term Factors 51
Priorities & Issues 53
Long Range Financial Plans 54
Personnel Changes 56
Appropriations Limit 59
Funding Sources 62
Property Taxes 63
Sales Taxes 65
Other Taxes Including Cannabis Business Tax 66
Licenses, Permits, Rents and Other Agency Fees 69
Departments 71
City Council 72
City Manager 76
Administrative Services 83
Community Development 88
Public Works 94
Police 102
Recreation 108
Fund Summaries 112
All Funds 113
General Fund 118
Enterprise Funds (Water/Sewer) 132
Water Operating 138
Water Capital 143
Sewer Operating 146
Sewer Capital 151
Special Revenue Funds 155
Grants Fund 161
CDBG 165
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Gas Tax 166
MTC Street 170
Traffic Mitigation 174
Park In-Lieu 178
PEG Fees 182
Public Safety 186
K-9 Program 190
In-Lieu Inclusionary Housing 194
Excess Bond Proceeds 198
Community Facilities District 201
Road Maintenance Rehabilitation Administration 204
Bed Tax 208
Linkage Afforable Housing 212
Parks Measure M 214
Disability Access & Education Revolving Fund 218
Veterans Building Management 222
In-Lieu Tree Fund 226
South Sonoma Business Park Assessment District 230
Successor Agency to The Cotati Community Redevelopment Agency 234 Internal Service Funds 238
Vehicle Maintenance and Replacement 239
Compensated Absences 243
Capital Projects Funds 246
Capital Outlay 253
Capital Projects Fund 256
2022A Streets Projects 260
Capital Improvements 261
One year plan 262
Multi-year plan 267
Debt 276
Government-wide Debt 277
Supplemental Statistical Information 280
Sales Tax Statistics 281
Property Tax Statistics 284
Demographic and Economic Statistics 290
Appendix 292
Public Works - Govt. Buildings Requests 293
Public Works - Parks Requests 301
Public Works - Storm Water Mgnt. Requests 351
Public Works - Streets Requests 356
Sewer Requests 425
Water Requests 439
Glossary 480
City of Cotati | Fiscal Year 2024/25 Proposed Budget Page 3 304 of 814

INTRODUCTION
City of Cotati | Fiscal Year 2024/25 Proposed Budget Page 4 305 of 814

CITY MANAGER'S MESSAGE
Damien O'Bid - City Manager
June 25, 2024
Mayor, Councilmembers, Residents, Community Organizations and Business Owners, Attached is the City of Cotati’s Fiscal Year 2024/25 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 2024/25 General Fund budget was prepared using a conservative approach on operations, while continuing to push hard to reduce deferred maintenance and improve the community through capital projects. This budget focuses on providing excellent core City services and continuing the aggressive push to reduce medium and long-term costs through pension funding strategies and infrastructure repair. In Fiscal Year 2023/24, the City Council continued heavy investment in the road system to reduce future maintenance costs and continued design work for major renovations of City Parks. Long term risk continues to be operating costs outpacing revenue growth and displacing the capacity for infrastructure repair and maintenance. Therefore, in this budget, the City continues to strategically fund projects that lower future costs (roads), improve the quality of life (parks), reduce future pension costs and promote economic development that will provide residents with jobs and services and the City with future revenue growth to stay ahead of continuing cost pressures. This is all intended to ensure that the City can continue 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 evaluating departmental needs assessments. However, we are continuing to experience increased operating costs, including 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 selective and pragmatic decisions through this budget year.

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, as well as implementing equity in hiring, greater transparency in policing, and polices to mitigate and adapt to the continuing effects of climate change.

Highlights of the Fiscal Year 2024/25 budget include:

Strategic focus on economic development to ensure the long-term vitality of the City.

Improving core services while striving to expand services with increased efficiencies.

Meeting or exceeding the General Fund reserve policy target of 25%.

Meeting or exceeding the Enterprise Fund (Water & Sewer) reserve policy target of 33%. In particular, the sewer operations fund will be carefully evaluated for additional actions that may be necessary to stabilize this fund.

Significant investments in improving our streets and parks.

Additional discretionary pension payment to CalPERS to avoid future compounded interest costs.

Continued development of policy for new housing development across a range of income levels.

City of Cotati | Fiscal Year 2024/25 Proposed Budget Page 5 306 of 814
Continuing to look for opportunities to promote equity, transparency in policing and measures to mitigate and adapt to climate change.

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 to 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 2024/25 budget.

Sincerely,
Damien O’Bid
City Manager
City of Cotati | Fiscal Year 2024/25 Proposed Budget Page 6 307 of 814

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 laid-out 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 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.

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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. 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.

Cotati Hotel
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 mid-1950'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.

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.

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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 low-budget 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
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.

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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 square feet 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 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.

Sonoma State University
Sonoma State University, located just outside Cotati's city limits, has played a significant role in the City's history since it moved onto 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.

COTATI TODAY
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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. 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 selfimposed limit on annexation turned the focus on development inwards.

This rapid growth has provided a significant challenge to the City and to the preservation of its unique charm as a modern residential-focused community with strong historical roots in agriculture and music. 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.

The City continues to work to enhance the downtown area, such as the new Information Kiosks for both 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.

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.

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.

Historical Society Video Walking Tour of Cotati
Visit the Digital Cotati Historical Museum Walking Tour online here .

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City of Cotati Map
For a detailed map, visit: https://tinyurl.com/2p8tzej3 (https://tinyurl.com/2p8tzej3) City of Cotati | Fiscal Year 2024/25 Proposed Budget Page 12 313 of 814
Your Elected Officials
Mayor 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.

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Vice Mayor 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 Boards of the Russian River Watershed Association and the Sonoma Clean Power Authority.

Councilmember Ford moved to Cotati in 2003 with his wife and their two kids. 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.

Council Member Sylvia Lemus
Email: [email protected] Phone: (707) 792-4600 ex. 201 Councilmember Sylvia Lemus was appointed to the City Council in 2022 for a full four-year term, ending in December 2026.

Prior to her appointment to City Council, Lemus served as a Cotati Planning Commissioner starting in February 2020 and was the Chair of the Planning Commission in 2022.

Sylvia Lemus has been a resident of Cotati since 2008 and has been a lifelong resident of Sonoma County. Councilmember Lemus has been a founding member of community organizations including Los Cien Sonoma County and Santa Rosa Cinco de Mayo organizations. She has also served on several boards and task forces and volunteered for numerous organizations including Hispanic Chamber of Commerce, LandPaths, Community and Law Enforcement Task Force, Latino Alliance of Rohnert Park/Cotati, and the Sonoma Speedway Children’s Charity.

Councilmember Lemus has been in local county government for over 33 years, specializing in human resources and communications, and looks forward to retirement at the end of 2022. Her long career gave her a diverse and in-depth experience into how government works at all levels. Councilmember Lemus was also instrumental in the county’s racial equity efforts and was involved on related committees and provided input to the development of ongoing policies at the county level.

Sylvia Lemus has also embarked on a new wine business startup in partnership with family. Through her appointment, Lemus has become the first Latina Councilmember in Cotati’s history, a source of great pride to Lemus, her family, and her entire community.

Councilmember Lemus’ primary goals include engaging our diverse community, anti-racist policies, climate issues, housing affordability, community safety, small business support, interjurisdictional collaboration, and keeping Cotati as a place where all residents can live and thrive.

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Council Member Kathleen Rivers Ph.D.

Email: [email protected] Phone: (707) 792-4600 ex. 202 Councilwoman Kathleen (Kay) Rivers, Ph.D. was appointed to the City Council in 2022 for a four-year term.

Kay has served on multiple Boards in the local area, including Petaluma Pride, the Unitarian Universalists of Petaluma, and is a proud member of the Cotati Historical Society. Before joining the Cotati community, she served many progressive causes including: the San José City Library and Education Commission, Billy DeFrank LGBT Community Center Board of Directors, and the Santa Clara County CEDAW Taskforce.

Professionally, Kay works as a public-school teacher at a continuation high school. She holds a doctorate in Psychology, a Master’s degree in Organizational Management, and a Bachelor’s in Spanish. Kay has authored, The Weight of Abuse:

Releasing Fear and Feeling Safe in Your Body and contributed the chapter, "Lesbian Teacher Believes in You" to the best-selling book, It Gets Better: Coming Out, Overcoming Bullying, and Creating a Life Worth Living. She recently completed her first novel, titled, After The Flash.

Personally, Kay is an out-lesbian mother of three, who's been married since 2000. She's raising chickens, cultivating herb and vegetable gardens, and researching how best to restore Cotati’s native flora and fauna. Kay's wife works for a local meditation center; her daughter graduated from UCSB in 2022; her older son is an active-duty United States Marine; and her youngest is attending Santa Rosa Junior College. Having grown up in a small town, Kay is dedicated to building community, promoting conservation, supporting local small business, advocating for anti-racism, balancing affordable housing with maintaining a small-town feel, and serving as a listening member of our community.

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Council Member 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, 2017 and 2023. 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), Santa Rosa Plain Groundwater Sustainability Agency, Sonoma County Transportation Authority/Regional Climate Protection Agency, Association of Bay Area Governments (ABAG) and Marin/Sonoma Mosquito Vector Control District. She serves on the Board of Directors of the Northbay Division of the League of California Cities and Sonoma Local Agency Formation Commission (LAFCO) representing Sonoma County. She serves as an alternative representative for REMIF/CIRA Board of Directors 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 45 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.

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Population Overview

TOTAL POPULATION
7,545
.8%
vs. 2021

GROWTH RANK
327 out of 498
Municipalities in California

DAYTIME POPULATION
6,568
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 5-year estimates

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 5-year estimates * Data Source: U.S. Census Bureau American Community Survey 5-year Data and the 2020, 2010, 2000, and 1990 Decennial Censuses 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2… 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 2024/25 Proposed Budget Page 17 318 of 814
Household Analysis

TOTAL HOUSEHOLDS
3,033
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: American Community Survey 5-year estimates 15%
lower than state average
Family Households
42%
8%
lower than state average
Married Couples
46%
15%
higher than state average
Singles
27%
66%
higher than state average
Senior Living Alone
22%
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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
16%
10%
lower than state average
Median Income
$107,321
17%
higher than state average
Below $25,000
11%
19%
lower than state average
* Data Source: American Community Survey 5-year estimates 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
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Housing Overview
2024 MEDIAN HOME VALUE
$645,000
* Data Source: Cotati, CA 2024

HOME VALUE DISTRIBUTION
* Data Source: 2022 US Census Bureau (http:/ www.census.gov/data/developers/datasets.html), American Community Survey. Home value data includes all types of owner-occupied housing.

HOME OWNERS VS RENTERS
Cotati
42%
Rent
58%
Own
State Avg.
44%
Rent
56%
Own
* Data Source: 2022 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
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
20222023
2024
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
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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, April 2022, March 2023, April 2024 median home values for the City from Redfin https://www.redfin.com/city/4316/CA/Cotati/housing-market  City of Cotati | Fiscal Year 2024/25 Proposed Budget Page 21 322 of 814
Organizational 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.

Those individuals highlighted in green are outside consultants and not employed by the City.

Staffing for each department, including the positions and names, are included within the detailed department pages within the budget.

Cotati Citizens
City Council
City Manager
City Manager's Department
Recreation Department
Administrative Services DepartmentCommunity Development Public Works and Engineering
Police Department
City Attorney
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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.

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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.

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 Gas Tax (203), MTC Streets (204), and Measure S Parks (225) 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.

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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.

Cotati City CouncilJune 25, 2024

Cotati City Council
June 25, 2024