• A copy of the eligibility criteria and program details if they are not included in the ordinance or other documents establishing the program.
• If an outside contractor is used as the point of contact, a description of the jurisdiction’s approach for oversight of the contractor. 116 of 275
Appendix B: Jurisdictions by Funding Tier
Table 1 lists the jurisdictions in each funding tier and the jurisdiction’s required minimum four-year funding commitment for each policy selected that requires a funding commitment. Note: all Bay Area jurisdictions are listed, although not all jurisdictions have TOC areas.
For the policies in the Protection category, the required funding amount by tier can be split among any two of the four policies, but the jurisdiction will only receive credit toward one policy. For example, a Tier A jurisdiction could choose to spend $30,000 on fair housing enforcement and $70,000 on a rental assistance program, for a total of $100,000. Alternatively, the jurisdiction could spend $100,000 on a single policy, such as rental assistance. In either scenario, the jurisdiction would receive credit toward one policy for meeting the $100,000 funding threshold for Protection policies.
Table 1: Jurisdictions by Funding Tier
Jurisdiction
Very Lowand LowIncome
RHNA Tier
Production 2
and Production 6
Preservation 1
and
Preservation 5
Protection 3,
Protection 4,
Protection 5, and
Protection 10
Yountville 30 A $1,000,000 $500,000 $100,000
Calistoga 50 A $1,000,000 $500,000 $100,000
Ross 54 A $1,000,000 $500,000 $100,000
Unincorporated
Napa 61 A $1,000,000 $500,000 $100,000
Colma 69 A $1,000,000 $500,000 $100,000
Belvedere 77 A $1,000,000 $500,000 $100,000
Monte Sereno 83 A $1,000,000 $500,000 $100,000
Sebastopol 86 A $1,000,000 $500,000 $100,000
Cotati 94 A $1,000,000 $500,000 $100,000
Portola Valley 115 A $1,000,000 $500,000 $100,000
Unincorporated
Solano 130 A $1,000,000 $500,000 $100,000
Cloverdale 141 A $1,000,000 $500,000 $100,000
Woodside 142 A $1,000,000 $500,000 $100,000
Atherton 148 A $1,000,000 $500,000 $100,000
St. Helena 163 A $1,000,000 $500,000 $100,000
Dixon 175 A $1,000,000 $500,000 $100,000
Pinole 190 A $1,000,000 $500,000 $100,000
Los Altos Hills 197 A $1,000,000 $500,000 $100,000
Fairfax 235 A $1,000,000 $500,000 $100,000
Hillsborough 244 A $1,000,000 $500,000 $100,000
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Jurisdiction
Very Lowand LowIncome
RHNA Tier
Production 2
and Production 6
Preservation 1
and
Preservation 5
Protection 3,
Protection 4,
Protection 5, and
Protection 10
Suisun City 255 A $1,000,000 $500,000 $100,000
Piedmont 257 A $1,000,000 $500,000 $100,000
East Palo Alto 260 A $1,000,000 $500,000 $100,000
Clayton 267 A $1,000,000 $500,000 $100,000
San Pablo 273 A $1,000,000 $500,000 $100,000
American Canyon 278 A $1,000,000 $500,000 $100,000
Half Moon Bay 285 A $1,000,000 $500,000 $100,000
Healdsburg 299 A $1,000,000 $500,000 $100,000
Tiburon 303 A $1,000,000 $500,000 $100,000
Sausalito 315 A $1,000,000 $500,000 $100,000
Corte Madera 336 A $1,000,000 $500,000 $100,000
Benicia 339 A $1,000,000 $500,000 $100,000
San Anselmo 398 A $1,000,000 $500,000 $100,000
Mill Valley 413 B $1,400,000 $600,000 $200,000
Morgan Hill 413 B $1,400,000 $600,000 $200,000
Oakley 440 B $1,400,000 $600,000 $200,000
Larkspur 459 B $1,400,000 $600,000 $200,000
Albany 486 B $1,400,000 $600,000 $200,000
Brisbane 500 B $1,400,000 $600,000 $200,000
Moraga 501 B $1,400,000 $600,000 $200,000
El Cerrito 526 B $1,400,000 $600,000 $200,000
Hercules 542 B $1,400,000 $600,000 $200,000
Martinez 551 B $1,400,000 $600,000 $200,000
Orinda 587 B $1,400,000 $600,000 $200,000
Windsor 607 B $1,400,000 $600,000 $200,000
Rohnert Park 629 B $1,400,000 $600,000 $200,000
Brentwood 634 B $1,400,000 $600,000 $200,000
Emeryville 710 C $2,000,000 $700,000 $200,000
Saratoga 715 C $2,000,000 $700,000 $200,000
Newark 732 C $2,000,000 $700,000 $200,000
Belmont 769 C $3,000,000 $700,000 $200,000
Petaluma 787 C $2,000,000 $700,000 $200,000
Los Altos 789 C $2,000,000 $700,000 $200,000
Pittsburg 812 C $2,000,000 $700,000 $200,000
Foster City 819 C $2,000,000 $700,000 $200,000
Los Gatos 847 C $2,000,000 $700,000 $200,000
Pacifica 848 C $2,000,000 $700,000 $200,000
Pleasant Hill 892 C $2,000,000 $700,000 $200,000
Novato 898 C $2,000,000 $700,000 $200,000
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Jurisdiction
Very Lowand LowIncome
RHNA Tier
Production 2
and Production 6
Preservation 1
and
Preservation 5
Protection 3,
Protection 4,
Protection 5, and
Protection 10
Millbrae 906 C $2,000,000 $700,000 $200,000
Lafayette 943 C $2,000,000 $700,000 $200,000
Danville 1,028 C $2,000,000 $700,000 $200,000
Gilroy 1,054 C $2,000,000 $700,000 $200,000
Vallejo 1,059 C $2,000,000 $700,000 $200,000
Vacaville 1,081 C $2,000,000 $700,000 $200,000
San Bruno 1,109 D $3,000,000 $900,000 $300,000
San Carlos 1,164 D $3,000,000 $900,000 $300,000
Menlo Park 1,166 D $3,000,000 $900,000 $300,000
Campbell 1,186 D $3,000,000 $900,000 $300,000
Napa 1,214 D $3,000,000 $900,000 $300,000
Antioch 1,248 D $3,000,000 $900,000 $300,000
Fairfield 1,256 D $3,000,000 $900,000 $300,000
Unincorporated
San Mateo 1279 D $3,000,000 $900,000 $300,000
Unincorporated
Santa Clara 1305 D $3,000,000 $900,000 $300,000
Richmond 1,325 D $3,000,000 $900,000 $300,000
San Rafael 1,349 D $3,000,000 $900,000 $300,000
San Leandro 1,357 D $3,000,000 $900,000 $300,000
Union City 1,358 D $3,000,000 $900,000 $300,000
Burlingame 1,360 D $3,000,000 $900,000 $300,000
South San
Francisco 1,373 D $3,000,000 $900,000 $300,000
Unincorporated
Sonoma 1,608 E $4,000,000 $1,200,000 $300,000
Hayward 1,692 E $4,000,000 $1,200,000 $300,000
Dublin 1,710 E $4,000,000 $1,200,000 $300,000
Unincorporated
Marin 1734 E $4,000,000 $1,200,000 $300,000
Redwood City 1,758 E $4,000,000 $1,200,000 $300,000
Cupertino 1,880 E $4,000,000 $1,200,000 $300,000
Santa Rosa 1,919 E $4,000,000 $1,200,000 $300,000
Unincorporated
Alameda 1,972 E $4,000,000 $1,200,000 $300,000
Concord 2,036 E $4,000,000 $1,200,000 $300,000
Livermore 2,075 E $4,000,000 $1,200,000 $300,000
Daly City 2,105 E $4,000,000 $1,200,000 $300,000
Alameda 2,239 E $4,000,000 $1,200,000 $300,000
San Ramon 1,359 E $4,000,000 $1,200,000 $300,000
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Jurisdiction
Very Lowand LowIncome
RHNA Tier
Production 2
and Production 6
Preservation 1
and
Preservation 5
Protection 3,
Protection 4,
Protection 5, and
Protection 10
Palo Alto 2,452 E $4,000,000 $1,200,000 $300,000
Walnut Creek 2,611 E $4,000,000 $1,200,000 $300,000
Milpitas 2,655 E $4,000,000 $1,200,000 $300,000
Pleasanton 2,758 E $4,000,000 $1,200,000 $300,000
San Mateo 2,800 E $4,000,000 $1,200,000 $300,000
Unincorporated
Contra Costa 3,266 F $8,000,000 $2,400,000 $400,000
Berkeley 3,854 F $8,000,000 $2,400,000 $400,000
Mountain View 4,370 F $8,000,000 $2,400,000 $400,000
Santa Clara 4,525 F $8,000,000 $2,400,000 $400,000
Sunnyvale 4,677 F $8,000,000 $2,400,000 $400,000
Fremont 5,736 F $8,000,000 $2,400,000 $400,000
Oakland 10,261 G $40,000,000 $8,000,000 $1,000,000
San Jose 23,775 G $40,000,000 $8,000,000 $1,000,000
San Francisco 32,881 G $40,000,000 $8,000,000 $1,000,000 120 of 275
Revised Santero Way Specific Plan Update EIR Scoping Map 121 of 275
RESOLUTION NO.
RESOLUTION OF THE COUNCIL OF THE CITY OF COTATI APPROVING AN
AMENDED SCOPE OF SERVICES AND CONTRACT AMOUNT FOR THE
SANTERO WAY SPECIFIC PLAN REZONING WITH 4LEAF INC. AND THE
ASSOCIATED SUB-CONSULTANTS AND AUTHORIZING THE CITY
MANAGER TO EXECUTE AN AMENDMENT TO THE PROFESSIONAL
SERVICES AGREEMENT WITH 4LEAF INC. AND CAROLLO AND
ASSOCIATES FOR THE SANTERO WAY SPECIFIC PLAN REZONING
PROJECT TO INCLUDE ADDITIONAL CEQA ANALYSIS
WHEREAS, the City desires to employ a consultant to provide services related to, and to make certain updates and amendments to, the Santero Way Specific Plan area of Cotati and to expand the environmental analysis conducted to include implementation of Transit Oriented Communities (TOC) policies within the ½ mile radius of the SMART station; and WHEREAS, the work is to be performed in accordance with the terms and conditions described in the scope of services, including the budget and schedule, attached hereto as Exhibit A; and
WHEREAS, the City has initially determined that 4Leaf Inc. is qualified by experience and ability to perform the planning related services desired by the City, and 4Leaf Inc. is willing to perform such services and has continues to support this determination in approving the expanded scope of work and budget amendment; and
WHEREAS, 4Leaf Inc., and their identified subconsultants will conduct all the work as described and detailed in a Professional Services Agreement with the City; and WHEREAS, the original Professional Services Agreement with 4 Leaf was proposed to run until approximately July 2024, with a not to exceed amount totaling $378,000 is now being amended to include an additional $44,597 to cover the costs of the additional analysis resulting in a new maximum not to exceed amount of $422,591; and
WHEREAS, the original Professional Services Agreement with Carollo was proposed to run until approximately July 2024, and identified a not to exceed amount totaling $30,000 is now being amended to include an additional $5,000 to cover any costs associated with the additional analysis resulting in a new maximum not to exceed amount for this contract of $35,000; and WHEREAS, City staff has reviewed the scope of services provided and finds it to be fair, reasonable and likely to meet the City’s requirements and needs of the Santero Way Specific Plan rezoning process, and the related CEQA analysis and documentation for the SWSP Update and the .
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NOW THEREFORE BE IT RESOLVED the City Council of the City of Cotati does hereby:
1. Find that the foregoing recitals are true and correct and are hereby incorporated by reference.
2. Find that the action of contract approval does not constitute a project as defined by California Environmental Quality Act Guidelines Section 15378; therefore, no further environmental review is required.
3. Approve the budget amendment and updated schedule for the Scope of Services identified in the attached Exhibit A, proposed by 4Leaf Inc., and authorizes the City Manager to execute any needed amendments to the Professional Services Agreement with 4Leaf Inc. for a new not to exceed amount of $422,591.
4. Approve an additional $5,000 in funding for the Carollo and Associates Professional Services Agreement for a new not to exceed amount of $35,000.
IT IS HEREBY CERTIFIED that the foregoing resolution was duly adopted at a regular meeting of the City Council of the City of Cotati held on the August 13, 2024, by the following vote, to wit:
Approved: Mayor
Attest:
Kevin Patterson, Deputy City Clerk
Approved as to form:
City Attorney
Attachments:
Exhibit A-Supplement PSA and Gantt with Budget
123 of 275
124 of 275
Director Senior/
Principal Assistant Planning Tech
$205 $180 $120 $100
10 TOC Policy Implementation 6/15/24 12/10/24 16 40 40 2 12 112 16 40 40 2 12 112
$3,280 $7,200 $5,600 $240 $1,200 $17,800
$21,797
$5,000
$44,597
Fehr & Peers Totals
Rincon Consultants Totals Subconsultant Budget Totals
GRAND TOTAL
Cotati Santero Way Budget Amendment for Transit-Oriented Communities (TOC) Policy Implementation - 4LEAF, Inc. 4LEAF Totals (Hours & Budget)
$140
Associate Task # Task Description Start End Hrs/Task
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Santero Way Specific Plan
Budget Amendment Request - Transportation Analysis
Fehr & Peers understands that the scope of the Cotati Santero Way Specific Plan has been modified to expand the area of potential land use changes versus previous expectations. The additional parcels are located in other Traffic Analysis Zones in the SCTA model and will require additional coordination with the project team to (1) confirm assumptions and (2) confirm that the City of Cotati continues to meet regional modeling land use control totals. The additional parcels located away from the Santero Way corridor also add complexity to the intersection Level of Service analysis as the development is more spread out amongst the five study intersections.
With this amendment, Fehr & Peers will update the travel demand model runs for the land use alternatives to reflect the additional parcels, as well as prepare a Level of Service analysis reflecting the additional parcels. It is presumed with this amendment that the Specific Plan continues to screen from CEQA Transportation section VMT analysis, and that VMT by speed bin data from the SCTA Travel Demand Model would continue to be required to CEQA Air Quality, Greenhouse Gas and Energy section analyses.
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Fee Proposal for Santero Way Specific Plan Add-On
Fehr & Peers
Principal-inCharge/PMTravel Model
Expert/QAQCer
Project
Planner/Engineer
Graphics Project Coordinator
Labor
Hours
Direct
Costs
Total
Tasks $320 $285 $205 $215 $160
Additional Coordination on Land Use Assumptions 2 1 4 0 1 8 $165 $2,070 Update Model and Confirm VMT Values 1 2 8 0 1 12 $240 $2,930 Total for all Tasks 3 3 12 0 2 20 $405 $5,000
Notes:
This fee proposal is valid for a period of 90 days from the proposal submittal date.
Actual billing rate at the time of service may vary depending on the final staffing plan at the time the project starts; the overall fee will not be exceeded.
Mileage is billed at the IRS rate plus 10% handling fee Rates and non-key staff are subject to change at any time, without notice, and within the total budget shown 1 127 of 275
Rincon Consultants, Inc.
4825 J Street, Suite 200
Sacramento, California 95819
916-706-1374
www.rinconcons ultants.com
June 6, 2024
Rincon Project No. 22-13884
Luke Lindenbusch, Senior Planner
4LEAF, Inc.
2235 Mercury Way #120
Santa Rosa, California 95407
Via email: [email protected]
Subject: Revised Request #1 for Add Services Request for the Santero Way Specific Plan Environmental Impact Report
Rincon Consultants, Inc. (Rincon) is requesting this scope amendment and budget augmentation to our existing agreement to assist the City of Cotati with continuing work on the Environmental Impact Report (EIR) for the Santero Way Specific Plan Update. The City of Cotati and 4LEAF staff requested the addition of nine additional parcels totaling approximately 14 acres. The following Assessor’s Parcel Numbers (APN) are included in the expansion of the project area: 144-292-023, 144-292-024, 144- 301-010, 144-302-022, 144-302-050, 144-501-004, 144-570-001, 144-720-029, and 144-720- 040. We are seeking an acknowledgement and modification to our budget to accommodate the additional labor associated with this modification to the project area.
Add Services Request
Task 9.0: Project Management
The extended project schedule and revision to the project area will require additional project management labor beyond that in the current authorized scope of work. The additional labor is associated with standard project management tasks including internal team coordination, budget and schedule management, and project oversight.
Task 9.2.1: Updated Notice of Preparation
Due to the modification to the project area, we recommend re-issuance of the Notice of Preparation (NOP). Revisions to the NOP prior to re-issuance include updates to the description of the project area, revisions to the project area figure, and revisions to the project description to incorporate proposed changes to the project area.
Rincon will prepare a draft Updated NOP for City staff to review. The Updated NOP will include all required details including project description, location, dates of public review and dates/location of the public scoping meeting. Rincon will submit a draft Updated NOP in Microsoft Word format for City review. Upon receipt of one round of consolidated comments on the draft Updated NOP, Rincon will prepare a final PDF copy of the Updated NOP for City staff to post on its website and for distribution to public agencies. It is assumed that the City will be responsible for any the Updated NOP distribution list and associated direct mailing of printed copies of the Updated NOP. Rincon will assist with filing the Updated NOP with the State Clearinghouse/Office of Planning and Research and Sonoma County Clerk. It is assumed that the City will complete the County Clerk filing. 128 of 275
City of Cotati
Santero Way Specific Plan EIR
2 The Updated NOP and relevant correspondence received in response to the Updated NOP will be attached as an Appendix to the Draft EIR. The scope of the EIR will be adjusted, if necessary, based on the comments received.
Task 9.4.1: Second Scoping Meeting
Similar to the recommended re-issuance of the NOP, we recommend conducting a second Scoping Meeting during the public review period of the Updated NOP. Rincon will facilitate one public and agency scoping meeting associated with the release of the Updated NOP. The Scoping Meeting will be held during the 30-day review period to introduce the community and responsible agencies to the EIR process and obtain input on the EIR scope of work. Applicable agencies and interested parties would be invited to attend the scoping meeting. The meeting will include a brief presentation, followed by public comment and input from meeting attendees. Rincon will prepare a summary of relevant input gathered, which will be included in the Draft EIR along with relevant written public comments received during the Updated NOP comment period. Rincon assumes the Scoping Meeting will be held at a Planning Commission meeting, which the City will organize. For the purposes of this scope, we have assumed attendance at the scoping meeting will be virtual. Notice of the scoping meeting would be provided in the Updated NOP.
Task 9.5.1: Updated AB 52 and SB 18 Consultation Assistance The changes to the project require updated tribal consultation letters be sent out, in accordance with Assembly Bill (AB) 52 (California Government Code Section 21080.3.1[a]) and Senate Bill (SB) 18 (California Government Code Section 65352.3 and 65352.4). Rincon will utilize the Native American Hertiage Commission contacts list for the project, dated November 13, 2023, and will provide the City with letter templates explaining the project update to the contacts listed. After receipt of letters, Native American Tribes have 30 days to reply to a request for consultation under AB 52 and 90 days under SB 18; the 30-day wait period for AB 52 is subsumed in the wait period for SB 18. This task does not include meetings, outreach, consultation or mailing letters to Tribal governments, although consultation support may be added for an additional cost if needed. Rincon assumes that the City will officially contact all applicable Tribes. Additionally, Rincon will include the new consultation efforts in an assessment of impacts to Tribal Cultural Resources for the CEQA document.
Task 9.6: Administrative Draft EIR
Rincon will revise the draft Administrative Draft EIR sections completed to date to reflect the updated project area. This includes figure revisions as well as narrative revisions to the text, where necessary.
This also includes revisions to chapters of the EIR referencing the NOP publication date, comment period, and scoping meeting, to incorporate the Update NOP publication date, second comment period, and second scoping meeting.
This further includes additional investigation related to cultural and historical resources, including reviewing the potential for historical and archaeological resources to occur within the expanded project site and the potential impacts to those resources as a result of the project. As part of the original cultural resources investigation, Rincon requested a California Historical Resources Information System (CHRIS) records search of the original project site as well as a 0.5-mile radius around the project site, which encompasses the expanded project site. Therefore, a new records search request is not warranted at this time. Rincon will update the technical report to include discussion of the expanded project site. If significant impacts are identified, programmatic mitigation measures will be provided.
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City of Cotati
Santero Way Specific Plan EIR
3 Assumptions
• Attendance at the scoping meeting will be virtual.
• No additional field work will be required.
Add Services Fee Estimate
Our estimate for the costs to complete the additional requested tasks described above is $21,797.00 as shown in the table below.
Cost Summary
Task Estimated Cost
Task 9.0 Project Management $1,739.00
Task 9.2.1 Updated Notice of Preparation $1,446.00
Task 9.4.1 Second Scoping Meeting $2,144.00
Task 9.5.1 Updated AB 52 and SB 18 Consultation Assistance $1,603.00 Task 9.6 Administrative Draft EIR $14,865.00
Total $21,797.00
We appreciate your consideration of this request to add services. If you have any questions or would like any additional information, please contact us at your convenience.
Sincerely,
Rincon Consultants, Inc.
Aileen Mahoney
Project Manager
Matt Maddox, AICP MESM
Principal
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WEEK OF: 3-Jun 10-Jun 17-Jun 24-Jun 1-Jul 8-Jul 15-Jul 22-Jul 29-Jul 5-Aug 12-Aug 19-Aug 26-Aug 2-Sep 9-Sep 16-Sep 23-Sep 30-Sep 7-Oct 14-Oct 21-Oct 28-Oct 4-Nov 11-Nov 18-Nov 25-Nov 2-Dec 9-Dec
1.0 Project Management
1.1 Commencement Meeting DONE DONE
1.2 Ongoing Project Coordination STARTED 12/10/24 City/4L Cnsltnts City/4L City/4L Cnsltnts City/4L City/4L Cnsltnts City/4L City/4L BOTH City/4L BOTH City/4L City/4L Cnsltnts City/4L City/4L Cnsltnts
2.0 Existing Conditions & Data Analysis
2.1 Existing Conditions & Opportunities DONE DONE
2.2 Housing Policy Options DONE DONE
3.0 Community Engagement
3.1 Community Workshop #1 DONE DONE
3.2 TAC Meeting #1 DONE DONE
3.3 Embedded Community Engagement STARTED 12/10/24
4.0 Land Use & Circulation Alternatives
4.1 Land Use & Transportation Plan Alts DONE DONE
4.2 TAC Meeting #2 6/17/24 7/19/24
4.3 Community Workshop #2 DONE DONE
5.0 Preferred Alternative
5.1 Preparation of Plan Alternatives STARTED 6/14/24
5.2 Community Workshop #3 7/8/24 7/19/24 PC 7/15
6.0 Specific Plan Update Document
6.1 Admin Draft STARTED 8/23/24
6.2 Public Review Draft (45 Days for EIR) 9/16/24 10/31/24
6.3 Community Workshop #4 9/2/24 9/24/24 PC 9/16 CC 9/24
7.0 General Plan/Zoning Amendments
7.1 Text Amendments & Needs Assessment 9/23/24 11/4/24
8.0 Plan Adoption
8.1 Staff Reports 10/7/24 11/4/24
8.2 PC Hearing 10/14/24 11/4/24 PC 11/4
8.3 CC Hearing 11/5/24 12/10/24 CC 12/10
9.0 6/14/24 6/28/24
6/17/24 9/15/24
6/17/24 6/17/24
6/17/24 8/23/24
8/23/24 9/6/24
9/6/24 9/16/24
9/16/24 10/31/24
10/17/24 10/31/24
LEGEND
Ongoing, As Needed
Prep
City Deliverable
City Review
Italics Proposed Date
Cotati Santero Updated Schedule - 4LEAF, Inc.
Task # Task Description Start End
June 2024 Revision
Admin Draft EIR (Rincon)
Review of Admin Draft EIR (City)
Note: timelines assume that data and information requested by 4LEAF will be provided within one week and that all administrative reviews return a single set of non-conflicting comments within 2 weeks of receipt.
Environmental Impact Report (EIR) Milestones
Revised Schedule/Timeframe
Buildout Calculations to City (4LEAF)
Project Description & Revised NOP (Rincon)
6/5/24
6/11/24
Final EIR (Rincon)
Incorporation of City Input (Rincon)
Public Review Draft EIR (City/Rincon)
Tribal Consultation Letters Out (City)
Technical Information to Subconsultants (4LEAF)
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Cotati City Council
Agenda Staff Report
Item type: CONSENT CALENDAR (ACTION)
To: City Council
Subject: GO SONOMA & SIDEWALK GAP CLOSURE COOPERATIVE
AGREEMENTS
Date: August 13, 2024
Written by: Craig Scott, Director of Public Works/City Engineer Recommendation
It is recommended that the City Council adopt a Resolution approving Cooperative Funding Agreements for City to 1) receive funds through the Go Sonoma Act and 2) to receive Go Sonoma Act funds for the Sidewalk Gap Closures Project, and authorizing the City Manager to execute said agreements in substantially the form attached.
Background
On November 3, 2020, Sonoma County voters approved the 2020 Go Sonoma Act Expenditure Plan and Ordinance (Go Sonoma) which is an extension of the existing Measure M transportation 1/4 cent sales tax. The Sonoma County Transportation Agency (SCTA) receives these sales tax dollars and in turn redistributes the funding to the County and cities and transportation agencies in Sonoma County. This measure continues to fund transportation projects including local road maintenance, bike and pathways, traffic and safety and public transportation. Funding agreements are needed between SCTA and local jurisdictions to provide rules and procedures for spending the sales tax proceeds on specific projects within each jurisdiction.
Analysis/Discussion
Go Sonoma provides the City with an annual allocation based on a formula and project specific funding for priority City projects that meet the Go Sonoma criteria. The formula amount is used by the City towards street paving, bicycle and pedestrian pathway and traffic safety Capital Projects as depicted in its annual budget and, for future years, its Capital Improvement Program. 132 of 275
This formula based funding requires a Cooperative Agreement to pass funding through to the City.
The Sonoma County Transportation Authority (SCTA) is tasked by Go Sonoma to prioritize and make funds available to its member agencies. To this end, SCTA developed the 2023 Strategic Implementation Plan (Go Sonoma SIP) which includes a Build Bikeways and Pathways program for the development of improvements to better separate bikes from cars and make it easier to bike and walk. Consistent with the Build Bikeways and Pathways program, SCTA has approved the City’s Sidewalk Gap Closure Project (Project) for Go Sonoma funding. A separate Cooperative Agreement is needed for rules and procedures for the City to receive payment for the Project.
The bid advertisement period is open presently for the Project with bids to be opened and anticipated Council award on August 27, 2024, and construction to begin 3-5 weeks later. The City is to begin invoicing SCTA for Go Sonoma funding once construction and construction management expenses are incurred.
Financial Considerations
The formulaic Go Sonoma funds due to the City are estimated to be $75,000 per year.
The Project is included in the City’s adopted FY24/25 budget for an amount of $735,000, for completing design, construction and construction management services. These funds consist of $235,000 from the City’s General Fund and $500,000 of project specific Go Sonoma funding.
Environmental Issues
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. 133 of 275
RESOLUTION NO. (XX)
APPROVING COOPERATIVE FUNDING AGREEMENTS FOR CITY TO 1) RECEIVE FUNDS THROUGH THE GO SONOMA ACT AND 2) TO RECEIVE GO
SONOMA ACT FUNDS FOR THE SIDEWALK GAP CLOSURES PROJECT
WHEREAS, on November 3, 2020, Sonoma County voters approved the 2020 Go Sonoma Act Expenditure Plan and Ordinance (Go Sonoma) which is an extension of the existing Measure M transportation sales tax, and this measure continues to fund transportation projects including local road maintenance, bike and pathways, traffic and safety and public transportation; and
WHEREAS, funding agreements are needed between the local transportation agency, Sonoma County Transportation Authority, and local jurisdictions to provide rules and procedures for spending the sales tax proceeds on specific projects within each jurisdiction; and WHEREAS, Go Sonoma provides the City with an annual allocation based on a formula and project specific funding for priority City projects that meet the Go Sonoma criteria, and the formula amount is used by the City towards street paving, bicycle and pedestrian pathway and traffic safety Capital Projects as depicted in its annual budget and, for out years, its Capital Improvement Program; and
WHEREAS, the Sonoma County Transportation Authority (SCTA) is tasked by Go Sonoma to prioritize and make funds available to its member agencies, and, to this end, SCTA developed the 2023 Strategic Implementation Plan (Go Sonoma SIP) which includes a Build Bikeways and Pathways program for the development of improvements to better separate bikes from cars and make it easier to bike and walk; and
WHEREAS, consistent with the Build Bikeways and Pathways program, SCTA has approved the City’s Sidewalk Gap Closure Project (Project) for Go Sonoma funding, and a separate Cooperative Agreement is needed for rules and procedures for the City to receive payment for the Project; and
WHEREAS, the bid advertisement period is open presently for the Project with bids to be opened and anticipated Council award on August 27, 2024, and construction to begin 3-5 weeks later, and the City is to begin invoicing SCTA for Go Sonoma funding once construction and construction management expenses are incurred; and
WHEREAS, the formulaic Go Sonoma funds due to the City are estimated to be $75,000 per year; and
WHEREAS, the Project is included in the City’s adopted FY24/25 budget for an amount of $735,000, for completing design, construction and construction management services, and these funds consist of $235,000 from the City’s General Fund and $500,000 of project specific 134 of 275
Go Sonoma funding; and
WHEREAS, 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
NOW THEREFORE BE IT RESOLVED, that the City of Cotati City Council hereby determines:
1. The Cooperative Funding Agreement No. G20200E1 between the Sonoma County Transportation Authority and City of Cotati is approved substantially in the form attached, and
2. The Cooperative Funding Agreement No. G70201E1I between the Sonoma County Transportation Authority and City of Cotati is approved substantially in the form attached, and
3. The City Manager is authorized to execute said cooperative agreements substantially in the form attached.
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 August 13, 2024, by the following vote, to wit:
Approved:___________________________
Mayor
Attest:______________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:______________________________
City Attorney
135 of 275
COOPERATIVE FUNDING AGREEMENT NO. G20200E1
BETWEEN
THE SONOMA COUNTY TRANSPORTATION AUTHORITY
AND
CITY OF COTATI
This Agreement is made and entered into as of April 1, 2025 (“Effective Date”) by and between the City of COTATI, hereinafter referred to as “CITY” and the SONOMA COUNTY TRANSPORTATION AUTHORITY, hereinafter referred to as “AUTHORITY.”
RECITALS
1. AUTHORITY adopted that certain 2024 Strategic Implementation Plan that sets forth AUTHORITY’S program and project implementation policies with regard to the use of funds provided under the 2020 Go Sonoma Act Expenditure Plan and Ordinance approved by the voters of Sonoma County on November 3, 2020 (hereinafter referred to as “Go Sonoma”). The 2024 Strategic Implementation Plan as such plan may be amended from time to time is hereinafter referred to as the “Strategic Implementation Plan.”
2. Pursuant to the Strategic Implementation Plan and Go Sonoma, AUTHORITY and CITY desire to enter into a Cooperative Funding Agreement to define a framework to enable the two parties to work cooperatively in allocating funding for local road maintenance and related eligible work as described in the Strategic Implementation Plan (hereinafter “Go Sonoma Roads”).
3. Each party to the Agreement is a public agency duly authorized and existing under the laws of the State of California.
4. CITY desires to undertake Go Sonoma Roads projects to maintain existing roads on an as needed basis, and to utilize Go Sonoma funding to help defray costs of those Go Sonoma Roads projects, to the extent such funds have been set aside by the AUTHORITY in the Strategic Implementation Plan for the benefit of the CITY.
5. CITY is authorized in accordance with Section 9 of Article XI of the California Constitution to establish, purchase and operate public works in order to furnish residents with light, water, power, heat, transportation, or means of communication.
6. Pursuant to the Strategic Implementation Plan and Go Sonoma, AUTHORITY is committed to make available quarterly payments to CITY for such Go Sonoma Roads Projects based on the formula set forth in Go Sonoma.
7. AUTHORITY is authorized in accordance with §180152 and 180205 of the Local Transportation Authority and Improvement Act (California Public Utilities Code §180000 et seq, hereinafter referred to as the Local Transportation Act”) to make contracts and enter into stipulations of any nature whatsoever and to do all acts necessary and convenient for the full exercise of the powers imposed under the Local Transportation Act for the construction, maintenance improvement and operation of local streets, roads, and highways, and for the construction improvement, and operation of public transit systems.
NOW, THEREFORE, in consideration of the foregoing, AUTHORITY and CITY do hereby agree as follows:
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SECTION I
CITY AGREES
1. Compliance with Laws. With regard to the Go Sonoma Roads projects, CITY shall at all times comply with all applicable laws of the United States, the State of California, the County, and with all applicable regulations promulgated by federal, state, regional, or local administrative and regulatory agencies now in force and as they may be enacted, issued, or amended during the term of the Agreement.
2. Records. To allow AUTHORITY to audit all expenditures relating to Go Sonoma Roads projects funded through this Agreement. For the duration of the Go Sonoma Roads Projects funded under this Agreement, and for five (5) years following the termination of this Agreement, CITY shall make available to AUTHORITY all records relating to expenses incurred in performance of this Agreement.
3. Reporting Requirements. To provide annual updates on the Go Sonoma Roads Projects to AUTHORITY in the form attached hereto as Exhibit A.
SECTION II
AUTHORITY AGREES:
1. Allocation of Funding. Consistent with its Strategic Implementation Plan, to make available Go Sonoma funds to CITY for such Go Sonoma Roads Projects (also referred to as “GSR”) based on the formula set forth in Go Sonoma. AUTHORITY shall distribute such funds to CITY on a quarterly basis.
2. Notice of Audit. To provide timely notice to CITY if an audit is to be conducted.
SECTION III
IT IS MUTUALLY AGREED:
1. Term. This Agreement will remain in effect until discharged as provided in Paragraph 2 or 12 of this Section III.
2. Termination. This Agreement shall be subject to termination as follows:
a. a. This Agreement may be canceled by a non-breaching party for breach of any obligation, covenant or condition hereof by the other party, upon notice to the breaching party. With respect to any breach which is reasonably capable of being cured, the breaching party shall have thirty (30) days from the date of the notice to initiate steps to cure. If the breaching party diligently pursues cure, such party shall be allowed a reasonable time to cure, not to exceed sixty (60) days from the date of the initial notice, unless a further extension is granted by the nonbreaching party. On cancellation, the non-breaching party retains the same rights as a party exercising its right to terminate under the provisions of paragraph 2(b), except that the canceling party also retains any remedy for breach of the whole contract or any unperformed balance. If the Agreement is cancelled by AUTHORITY because CITY has failed to meet the reporting or basic operational requirements under Go Sonoma or the Strategic Implementation Plan, 137 of 275
AUTHORITY may, at its option, demand repayment of all unexpended funds and funds determined by audit not to have been expended as provided for in this Agreement, with interest accrued thereon as would have accrued had such funds been invested in the Sonoma County Treasury Pool; and, further, to offset such balances due AUTHORITY from any other Go Sonoma funds due CITY. b. By mutual consent of both parties, this Agreement may be terminated at any time. Upon termination by mutual consent, CITY shall repay to AUTHORITY any unexpended ·funds originally provided to CITY under this Agreement, and any interest that has accrued thereon.
3. Indemnity. Each party shall indemnify, defend, protect, hold harmless, and release the other, its officers, agents, and employees, from and against any and all claims, loss, proceedings, damages, causes of action, liability, costs, or expense (including attorneys’ fees and witness costs) arising from or in connection with, or caused by any act, omission, or negligence of such indemnifying party or its agents, employees, contractors, subcontractors, or invitees. This indemnification obligation shall not be limited in any way by any limitation on the amount or type of damages or compensation payable to or for the indemnifying party under workers’ compensation acts, disability benefit acts, or other employee benefit acts,
4. Notices. Any notice which may be required under this Agreement shall be in writing, shall be effective when received, and shall be given by personal service, or by certified or registered mail, return receipt requested, to the addresses set forth below, or to such addresses which may be specified in writing to the parties hereto.
To CITY Name, Director of Public Works
City of COTATI
Street Address
City, CA ZIP
Phone number
Email
To AUTHORITY James R. Cameron, Executive Director
411 King Street
Sant Rosa, CA 95405
(707) 565-5373
Email [email protected]
5. Additional Acts and Documents. Each party agrees to do all such things and take all such actions, and to make, execute and deliver such other documents and instruments, as shall be reasonably requested to carry out the provisions, intent and purpose of the Agreement.
6. Integration. This Agreement represents the entire agreement of the parties with respect to the subject matter hereof. No representations, warranties, inducements or oral 138 of 275
agreements have been made·by any of the parties except as expressly set forth herein, or in otp.er contemporaneous written agreements.
7. Amendment This Agreement may not be changed, modified or rescinded except in writing, signed by all parties hereto, and any attempt at oral modification of this Agreement shall be void and of no effect.
8. Independent Agency. CITY renders its services under this Agreement as an independent agency. None of the CITY's agents or employees shall be agents or employees of the AUTHORITY.
9. Assignment. The Agreement may not be assigned, transferred, hypothecated, or pledged by any party without the express written consent of the other party.
10. Successors. This Agreement shall be binding upon the successor(s), assignee(s) or transferee(s) of the AUTHORITY or CITY as the case may be. This provision shall not be construed as an authorization to assign, transfer, hypothecate or pledge this Agreement other than as provided above. ·
11. Severability. Should any part of this Agreement be determined to be unenforceable, invalid, or beyond the authority of either party to enter into or carry out, such determination shall not affect the validity of the remainder of this Agreement which shall continue in full force and effect; provided that, the remainder of this Agreement can, absent the excised portion, be reasonably interpreted to give effect to the intentions of the parties.
12. Limitation. All obligations of AUTHORITY under the terms of this Agreement are expressly subject to AUTHORITY' s continued authorization to collect and expend the sales tax proceeds provided by Go Sonoma. If for any reason AUTHORITY' s right to collect or expend such sales tax proceeds is terminated or suspended in whole or part, AUTHORITY shall promptly notify CITY, and the parties shall consult on a course of action. If, after twenty five (25) working days, a course of action is hot agreed upon by the parties, this Agreement shall be deemed terminated by mutual consent; provided, that any future obligation to fund from the date of the notice shall be expressly limited by and subject to (i) the lawful ability of AUTHORITY to expend sales tax proceeds for the purposes of the Agreement; and (ii) the availability, taking into cons1deration all the obligations of AUTHORITY under all outstanding contracts, agreements to other obligations of AUTHORITY, of funds for such purposes.
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.
CITY OF COTATI SONOMA COUNTY
TRANSPORTATION
AUTHORITY
By: By:
Name, Mayor Lynda Hopkins, Chair of the Board
ATTEST: APPROVED AS TO SUBSTANCE:
By: By:
Name, Title James R. Cameron, Executive
Director
APPROVED AS TO LEGAL FORM FOR
CITY:
By: By:
Name, City Attorney Adam Brand, County Counsel
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COOPERATIVE FUNDING AGREEMENT NO: G20200E1
Between the SONOMA COUNTY TRANSPORTATION AUTHORITY
And CITY OF COTATI
EXHIBIT A
FORM OF REPORTING LETTER
PROJECT SPONSOR LETTERHEAD
Please refer to the Reporting Instructions and Submittal Requirements before sending your completed Annual Reporting Letter to the SCTA. The Annual Reporting Letter is due to the SCTA by September 15.
Date
Sonoma County Transportation Authority
411 King Street
Santa Rosa, CA 95404
Go Sonoma Roads Program (GSR) - Annual Reporting Letter – FY _______ Dear SCTA Chair:
The City of / Town of/ County of ___________ is pleased to present information related to Go Sonoma funding for the above referenced program for FY __________ Reported:
Go Sonoma Roads allocation expenses in this fiscal year included the following:
A. FY Reported Allocations $ -
B. Unspent Prior Allocations $ -
C. Interest earned on Unspent Prior Allocations $ -
D. Total Funding Available in FY Reported $ -
E. Total Funding Spent in FY Reported $ -
F. Total Go Sonoma Rollover to Next FY $ -
G. Overlay Program $ -
H. Maintenance Program $ -
I. ITS $ -
J. Traffic Calming $ -
K. Other $ -
L. Total Funding Spent in FY Reported $ -
Description of Go Sonoma Expenditures on Local Streets Maintenance 141 of 275
M. Describe work done with Go Sonoma Roads Funding on such work as overlays, general maintenance, pothole repair, ITS, and traffic calming. (insert text below table)
Street/Road/Location Treated Total Length PCI Before/After Please enter any further description of project or work completed here:
N. Describe how multimodal needs were considered?
Report on Public Information Requirements
O. Did you display the Go Sonoma logo on signs at the construction site or on vehicles? Please enclose picture.
P. Did you provide digital pictures of projects before, during and after construction? Q. Did you identify Go Sonoma on your web site? Please provide link.
R. Did you include SCTA and Go Sonoma in any public outreach/engagement? S. Please Identify Go Sonoma funding benefits and discuss how Go Sonoma funds assisted in delivering your program.
T. Has there been a change in your total road miles in the Pavement Management Program? Please explain.
To meet our reporting requirements, we are submitting an original signed copy on our letterhead. We have emailed an electronic copy to the SCTA.
We have sent electronic format photographs in jpeg file format.
If you have any questions regarding this program information, please contact:
Name:
Phone:
Email:
Sincerely,
SIGNATURE REQUIRED
Name
Title (City Manager, Public Works Director, District Director) 142 of 275
Cooperative Funding Agreement No. G70201E1I
City of Cotati
COOPERATIVE FUNDING AGREEMENT NO. G70201E1I
BETWEEN
THE SONOMA COUNTY TRANSPORTATION AUTHORITY
AND
CITY OF COTATI
This Agreement is made and entered into as of , 2024 (“Effective Date”) by and between the CITY OF COTATI hereinafter referred to as “CITY” and the SONOMA COUNTY TRANSPORTATION AUTHORITY hereinafter referred to as “AUTHORITY.”
RECITALS
1. AUTHORITY adopted that certain 2023 Strategic Implementation Plan that sets forth AUTHORITY’s program and project implementation policies with regard to the use of funds provided under the 2020 Go Sonoma Act Expenditure Plan and Ordinance approved by the voters of Sonoma County on November 3, 2020 (hereinafter referred to as “Go Sonoma”). The 2023 Strategic Implementation Plan may be amended from time to time is hereinafter referred to as the “Go Sonoma SIP”.
2. Pursuant to the Strategic Implementation Plan and Go Sonoma, AUTHORITY and CITY desire to enter into a Cooperative Funding Agreement to define a framework to enable the two parties to work cooperatively in developing transportation improvements that will better separate bikes from cars and make it easier to bike and walk in Sonoma County (hereinafter referred to as “Build Bikeways and Pathways” or “BBP.”
3. Consistent with the Build Bikeways and Pathways (BBP), CITY desires to complete a Sidewalk Gap Closures project, as more particularly described in Exhibit A to this Agreement (hereinafter referred to as the “Project”).
4. Pursuant to Go Sonoma MTIS funds require a minimum 15% funding match.
5. CITY has submitted a financial plan and schedule for completion of the Project which is attached hereto as Exhibit B (hereinafter referred to as the “Financial Plan and Schedule”).
6. Pursuant to the Strategic Implementation Plan, AUTHORITY is committed to make available up to $500, 000 of Go Sonoma BBP funds to assist with the Project.
NOW, THEREFORE, in consideration of the foregoing, AUTHORITY and CITY do hereby agree as follows:
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Cooperative Funding Agreement No. G70201E1I
City of Cotati
SECTION I
CITY AGREES:
1.CITY Contribution. To provide a minimum 15% of matching funds towards the Project (as further described in Exhibit B).
2. Project Completion. To timely complete the Project (as further described in Exhibit B).
3. Invoices. Should CITY desire reimbursement of its expenses in connection with this Agreement, CITY shall do so by requesting a specific appropriation of Go Sonoma funding by submitting to AUTHORITY a Request for Funding Appropriation in the form attached hereto as Exhibit C (hereinafter referred to as “Appropriation Request”). Once an Appropriation Request is approved by AUTHORITY, CITY may submit to AUTHORITY invoices for reimbursements for expenses authorized under the terms of this Agreement and an approved Appropriation Request. Invoices shall be submitted to AUTHORITY no more frequently than monthly, and no less frequently than every six months following initial appropriation, provided however that if CITY is unable to invoice in this time frame a written request for time extension shall be provided or the funds may be deobligated.
Invoices shall be in a form reasonably acceptable to AUTHORITY’s Executive Director. An example of which is attached hereto as Exhibit D.
4. Compliance with Laws. With regard to administering and completing the Project, CITY shall at all times comply with all applicable laws of the United States, the State of California, the County, and with all applicable regulations promulgated by federal, state, regional, or local administrative and regulatory agencies, now in force and as they may be enacted, issued, or amended during the term of this Agreement.
5. Records. To allow AUTHORITY to audit all expenditures relating to the Project funded through this Agreement. For the duration of the Project, and for five (5) years following completion of the Project, or earlier discharge of the Agreement, CITY shall make available to AUTHORITY all records relating to expenses incurred in performance of this Agreement.
6. Reporting Requirements. To provide quarterly status and annual financial updates on the active PROJECT appropriations to AUTHORITY in the forms attached hereto as Exhibit E.
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Cooperative Funding Agreement No. G70201E1I
City of Cotati
SECTION II
AUTHORITY AGREES:
1. Reimbursement of CITY Expenses. Consistent with the Go Sonoma SIP, to make available up to $500,000 of Go Sonoma BBP funds to assist with the Project. AUTHORITY shall process CITY invoices within forty-five (45) days of receiving an invoice in a form reasonably acceptable to AUTHORITY’s Executive Director.
2. Notice of Audit. To provide timely notice to CITY if an audit is to be conducted.
SECTION III
IT IS MUTUALLY AGREED:
1. Funding Availability and Needs. The funding available to the Project for expenditure is limited by the funds identified in Exhibit B and to approved appropriations by the SCTA Board. If funds beyond those identified in Exhibit B are necessary to complete the Project, AUTHORITY will cooperate with CITY to identify and secure new or increased fund commitments; however, completion of the Project remains the responsibility of CITY.
2. Term. This Agreement will remain in effect until discharged as provided in Paragraph 3 or 13 of this Section III.
3. Discharge. This Agreement shall be subject to discharge as follows:
a. This Agreement may be canceled by a party for breach of any obligation, covenant or condition hereof by the other party, upon notice to the breaching party.
With respect to any breach which is reasonably capable of being cured, the breaching party shall have thirty (30) days from the date of the notice to initiate steps to cure. If the breaching party diligently pursues cure, such party shall be allowed a reasonable time to cure, not to exceed sixty (60) days from the date of the initial notice, unless a further extension is granted by the non-breaching party. On cancellation, the non-breaching party retains the same rights as a party exercising its right to terminate under the provisions of paragraph 3(b), except that the canceling party also retains any remedy for breach of the whole contract or any unperformed balance. If the Agreement is cancelled by AUTHORITY because CITY has failed to wholly or partially complete the Project, AUTHORITY may, at its option, demand repayment of all unexpended funds and funds determined by audit not to have been expended as provided for in this Agreement, with interest accrued thereon as would have accrued had such funds been invested in the Sonoma County Treasury Pool; and, further, to offset such balances due AUTHORITY from any other Go Sonoma funds due CITY.
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Cooperative Funding Agreement No. G70201E1I
City of Cotati
b. By mutual consent of both parties, this Agreement may be terminated at any time. Upon termination by mutual consent, CITY shall repay to AUTHORITY any unexpended funds originally provided to CITY under this Agreement, and any interest that has accrued thereon.
4. Indemnity. Each party shall indemnify, defend, protect, hold harmless, and release the other, its officers, agents, and employees, from and against any and all claims, loss, proceedings, damages, causes of action, liability, costs, or expense (including attorneys’ fees and witness costs) arising from or in connection with, or caused by any act, omission, or negligence of such indemnifying party or its agents, employees, contractors, subcontractors, or invitees. This indemnification obligation shall not be limited in any way by any limitation on the amount or type of damages or compensation payable to or for the indemnifying party under workers’ compensation acts, disability benefit acts, or other employee benefit acts.
5. Notices. Any notice which may be required under this Agreement shall be in writing, shall be effective when received, and shall be given by personal service, or by certified or registered mail, return receipt requested, to the addresses set forth below, or to such addresses which may be specified in writing to the parties hereto.
To CITY
To AUTHORITY James R. Cameron, Executive Director
Sonoma County Transportation Authority
411 King St
Santa Rosa, CA 95405
(707) 565-5373
Email: [email protected]
6. Additional Acts and Documents. Each party agrees to do all such things and take all such actions, and to make, execute and deliver such other documents and instruments, as shall be reasonably requested to carry out the provisions, intent and purpose of the Agreement.
7. Integration. This Agreement represents the entire agreement of the parties with respect to the subject matter hereof. No representations, warranties, inducements or oral agreements have been made by any of the parties except as expressly set forth herein, or in other contemporaneous written agreements. 146 of 275
Cooperative Funding Agreement No. G70201E1I
City of Cotati
8. Amendment. This Agreement may not be changed, modified or rescinded except in writing, signed by all parties hereto, and any attempt at oral modification of this Agreement shall be void and of no effect.
9. Independent Agency. CITY renders its services under this Agreement as an independent agency. None of the CITY’s agents or employees shall be agents or employees of the AUTHORITY.
10. Assignment. The Agreement may not be assigned, transferred, hypothecated, or pledged by any party without the express written consent of the other party.
11. Successors. This Agreement shall be binding upon the successor(s), assignee(s) or transferee(s) of the AUTHORITY or CITY as the case may be. This provision shall not be construed as an authorization to assign, transfer, hypothecate or pledge this Agreement other than as provided above.
12. Severability. Should any part of this Agreement be determined to be unenforceable, invalid, or beyond the AUTHORITY of either party to enter into or carry out, such determination shall not affect the validity of the remainder of this Agreement which shall continue in full force and effect; provided that, the remainder of this Agreement can, absent the excised portion, be reasonably interpreted to give effect to the intentions of the parties.
13. Limitation. All obligations of AUTHORITY under the terms of this Agreement are expressly subject to AUTHORITY’s continued authorization to collect and expend the sales tax proceeds provided by Go Sonoma. If for any reason AUTHORITY’s right to collect or expend such sales tax proceeds is terminated or suspended in whole or part, AUTHORITY shall promptly notify CITY, and the parties shall consult on a course of action.
If, after twenty-five (25) working days, a course of action is not agreed upon by the parties, this Agreement shall be deemed terminated by mutual or joint consent; provided, that any future obligation to fund from the date of the notice shall be expressly limited by and subject to (i) the lawful ability of AUTHORITY to expend sales tax proceeds for the purposes of the Agreement; and (ii) the availability, taking into consideration all the obligations of AUTHORITY under all outstanding contracts, agreements to other obligations of AUTHORITY, of funds for such purposes.
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Cooperative Funding Agreement No. G70201E1I
City of Cotati
IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.
CITY OF COTATI SONOMA COUNTY
TRANSPORTATION AUTHORITY
By: ___________________________ By: ____________________________ Mayor Lynda Hopkins, SCTA Chair
ATTEST: APPROVED AS TO SUBSTANCE:
By: ____________________________ By: ____________________________ Name James R. Cameron, Executive Director
APPROVED AS TO LEGAL FORM
FOR COUNTY/CITY:
By: ____________________________ By: ____________________________ CITY Attorney Adam Brand, Legal Counsel
Authority
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Cooperative Funding Agreement No. G70201E1I
City of Cotati
Exhibit A
COOPERATIVE FUNDING AGREEMENT NO. G70201E1I
BETWEEN
THE SONOMA COUNTY TRANSPORTATION AUTHORITY
AND
CITY OF COTATI
EXHIBIT A
DESCRIPTION OF THE PROJECT
The Project constructs sidewalks to close gaps throughout the City of Cotati, repairs existing sections of sidewalk in the identified areas including tripping hazards and upgrades to ADA ramps. The new and repaired sidewalks on the west side of Hwy 101 are at the following locations: West Cotati Avenue from Highway 116 to Gilman Ranch Road, West Cotati Avenue from north of Cohen Court to 230 feet north of Cotati Oaks Court, West School Street from Maple Avenue to Clifford, along Clifford and then north on West Cotati Avenue to Maple Avenue. A Class 1 multipurpose trail along West School Street from the School Street turn beneath Highway 101 to the Thomas Page Elementary School. On the east side of Highway 101 the new and repaired sidewalk sections are at the following locations:
Valparaiso from Cotati Creek to the entrance to Delano Park, 230 feet north of Lund Hill Lane, 220 feet of sidewalk from the Veteran’s Memorial parking lot to Myrtle Avenue, Myrtle Avenue from Park Avenue across the frontage of Helen Putnam Park, and approximately 65 feet along Olof Street to West Sierra Avenue.
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Cooperative Funding Agreement No. G70201E1I
City of Cotati
Exhibit B
COOPERATIVE FUNDING AGREEMENT NO. G70201E1I
BETWEEN
THE SONOMA COUNTY TRANSPORTATION AUTHORITY
AND
CITY OF COTATI
EXHIBIT B
FINANCIAL PLAN AND SCHEDULE
Financial Plan
Fund Source Amount
Go Sonoma-(MTIS
or BBP)
$500,000
Matching Funds $_________
Total $_________
Schedule
Project
Development Phase
Begin
(MO/YR)
End
(MO/YR)
Scoping 05/2023 09/2023
Environmental
(PAED)
10/2023 04/2024
Design (PSE) 10/2023 07/2024
Right of Way (R/W) 09/2023 07/2024
Construction (CON) 10/2024 01/2025
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Cooperative Funding Agreement No. G70201E1I
City of Cotati
Exhibit C
COOPERATIVE FUNDING AGREEMENT NO. G70201E1I
BETWEEN
THE SONOMA COUNTY TRANSPORTATION AUTHORITY
AND
CITY OF COTATI
EXHIBIT C
REQUEST FOR FUNDING APPROPRIATION
APPROPRIATION REQUEST SHOULD BE SUBMITTED ON CITY (OR COUNTY) LETTERHEAD Date
SCTA Chair
Sonoma County Transportation Authority
411 King St
Santa Rosa, CA 95404
FUNDING APPROPRIATION REQUEST
PROJECT NAME____________________________________________________ AGREEMENT NO. _________________________
Dear SCTA Chair:
The City of (name of City or County of Sonoma) hereby requests that the Sonoma County Transportation Authority (SCTA) take action to appropriate funds at its next Board meeting for the (name of project).
The City (or County) has entered into a cooperative funding agreement with the SCTA (Cooperative Agreement No. (number of agreement)) and is ready to begin work on the (name of development phase) phase of the project. Below is the specific appropriation request information.
Project Name & Description: Fill in Project Name & Description Project Category: Fill in Move Traffic and Improve Safety or Build Bikeways and Pathways Project.
Phase Development Phase of this
Appropriation:
Fill in Development Phase (Scoping,
Environmental, Right of Way Capital, Right of
Way Support, PS&E, Construction Capital, or
Construction Management). Note: Only one
phase per request.
Amount of Go Sonoma Appropriate Request: Fill in amount of appropriation request.
Amount of Local Funding Match: Fill in $ Local Match for this request Sources of Local Funding Match: Fill in amount and source(s) of matching funds.
Total Project Cost: Fill in total cost of project, including all fund sources and phases.
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Cooperative Funding Agreement No. G70201E1I
City of Cotati
Exhibit C
The current schedule for the (name of project) is as follows:
Project Development Phase Begin Complete
Scoping date date
Environmental date date
Right of Way date date
PS&E date date
Construction date date
Thank you for your consideration.
Sincerely,
NAME
Title
cc:
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Cooperative Funding Agreement No. G70201E1I
City of Cotati
Exhibit D
COOPERATIVE FUNDING AGREEMENT NO. 70201E1I
BETWEEN
THE SONOMA COUNTY TRANSPORTATION AUTHORITY
AND
CITY OF COTATI
EXHIBIT D
INVOICE EXAMPLE
[Local Agency Letterhead]
Move Traffic & Improve Safety/Build Bikeways and Pathways Project Go Sonoma Invoice Summary
REQUIRED FIELDS: [Formatting is left to local agency]
Project Sponsor:
Date of Request:
Period of Request:
Cooperative Agreement Number:
Project Name/Phase/Description:
Invoice Number:
Project Development Phase:
Description of work performed this period:
Go Sonoma
Amount Appropriated $
Amount Previously
Invoiced
$
Current Invoice $
Invoiced to-date $
Attachments:
• Summary of All Expenses
1. Staff Time: Summary of Hours worked, and total dollars by employee
2. Contracts: Summary of Invoices Paid
3. Miscellaneous Expenses: Summary of Invoices
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Cooperative Funding Agreement No. G70201E1I
City of Cotati
Exhibit E
COOPERATIVE FUNDING AGREEMENT NO. G70201E1I
BETWEEN
THE SONOMA COUNTY TRANSPORTATION AUTHORITY
AND
CITY OF COTATI
EXHIBIT E
PROJECT REPORTING LETTER
Please refer to the Reporting Instructions and Submittal Requirements before sending your completed Annual Reporting Letter to the SCTA. The Annual Reporting Letter is due to the SCTA by September 15.
Date
Sonoma County Transportation Authority
411 King Street
Santa Rosa, CA 95404
[Name of Project] - Annual Reporting Letter – FY _______ Dear SCTA Chair:
The City of/Town of / County of ___________ is pleased to present information related to Go Sonoma funding for the following project for FY __________ Reported:
Work was performed on the following project using Go Sonoma funds including:
Project Name:
Project Phase/Development Phase:
B. $ -
C. $ -
D. $ -
E. $ -
F. $ -
G. $ -
H. $ -
I. $ -
ReimbursementsReceived in FY00/00
Amount of Matching FundsProvided
Total Go Sonoma ReimbursementsReceived in Prior Years
Total Go Sonoma Funding Reimbursed to Date
Total Appropriation Remaining Balanceto Rollover to FY00/00 Amount Appropriated in FY00/00
A.
Amount Appropriated in PreviousFiscal Years
Total Amount of Unexpended Appropriationsfrom Prior FY
J. Describe work completed this fiscal year.
K. How were bike/pedestrian needs considered?
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Cooperative Funding Agreement No. G70201E1I
City of Cotati
Exhibit E
Overall Statusof Project byPhase %Complete Est. Completion Date Scoping
Environmental
Design
Right of Way
Construction &Construction Management
L.
Overall Project Funding
Phase Total Go Sonoma
MTIS/BBP
Other Need
$ $ $ $
$ $ $ $
$ $ $ $
$ $ $ $
$ $ $ $
M.
Totals $
-
$ - $
-
$
-
(Insert additional table if necessary to provide each alternative fund source per project phase)
Report on Public Information Requirements:
N. Describe where you displayed the Go Sonoma logo, such as on signs at the construction site or on vehicles? Please enclose pictures.
O. Provide digital pictures of projects before, during and after construction.
P. Did you identify Go Sonoma on your web site or in press releases? Please provide link.
Q. Identify project benefits and discuss how Go Sonoma funds assisted in project delivery.
To meet our reporting requirements, we are submitting a signed copy on our letterhead to the SCTA.
We have also attached electronic photographs in jpeg file format.
If you have any questions regarding this project information, please contact:
Name:
Phone:
Email:
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Cooperative Funding Agreement No. G70201E1I
City of Cotati
Exhibit E
Sincerely,
SIGNATURE REQUIRED
Name
Title (City Manager, Public Works Director, or District Director) 156 of 275
Cotati City Council
Agenda Staff Report
Item type: CONSENT CALENDAR (ACTION)
To: City Council
Subject: ACCEPTANCE OF THE GATEWAY SIGN PROJECT
Date: August 13, 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 accepting the Gateway Sign Improvement Project, authorizing the City Clerk to file the Notice of Completion with the County Recorder, and after 35 days with no protests, release the construction contract retention.
Background
In 2021, a design concept for new entrance signs and monument signs was approved by the City Council. The signs were split into different projects to be completed over several years. The trail signs and kiosks have been installed, with the interpretive panels planned for installation later this year. The subject project is for the installation of signs at each of the road entrances to the City.
Analysis/Discussion
On February 27, 2024, City Council awarded the construction agreement for the Gateway Sign Project to Bay Area Sign DBA Aloha Electric Sign Company. Field work began on the installation on June 10, 2024, and a final inspection was conducted on June 28, 2024, and the City Engineer has determined the work has been completed in accordance to the project documents. Construction Management for the Project has been conducted by Moe Engineering.
The work has been completed on schedule and within budget with no change orders. The City Engineer is recommending the Project for acceptance by the City. Following City Council action, a Notice of Completion is to be filed with the County Recorder and after thirty five days, provided there are no protests, the City is to release the retention to the Contractor. 157 of 275
Financial Considerations
On February 27, 2024, City Council approved a total Project budget of $95,000. The construction contract had no change orders (a total of ($68,900) and the Construction Management Professional Services Agreement is estimated to leave $10,000 unspent. Remaining unspent funds of $26,100 will be returned to the unappropriated General Fund balance.
Environmental Issues
This action is found to qualify for a Class 2 Categorical Exemption under CEQA Section 15302 in that the project consists of replacement or reconstruction of existing structures and facilities where the new structure/facility will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. 158 of 275
RESOLUTION NO. (XX)
ACCEPTING THE GATEWAY SIGN IMPROVEMENT PROJECT, AUTHORIZING
THE CITY CLERK TO FILE THE NOTICE OF COMPLETION WITH THE
COUNTY RECORDER AND RELEASE THE CONSTRUCTION CONTRACT
RETENTION
WHEREAS, in 2021, a design concept for new gateway signs, integrated into a holistic sign design program, was approved by the City Council; and WHEREAS, the thirteen new two post gateway signs were to replace aging and faded existing single post entrance signs; and
WHEREAS, on February 27, 2024, City Council awarded the construction agreement for the Gateway Sign Project to Bay Area Sign DBA Aloha Electric Sign Company for $68,900; and WHEREAS, field work began on the installation on June 10, 2024, and a final inspection was conducted on June 28, 2024, and the City Engineer has determined the work has been completed in accordance to the project documents and recommends acceptance by the City; and WHEREAS, Construction Management for the Project has been conducted by Moe Engineering, and the work has been completed on schedule and within budget with no change orders; and
WHEREAS, the construction contract had no change orders and the Construction Management Professional Services Agreement is estimated to leave $10,000 unspent; and WHEREAS, remaining unspent funds of $26,100 will be returned to the unappropriated General Fund balance; and
WHEREAS, following City Council action, a Notice of Completion is to be filed with the County Recorder and after thirty-five days, provided there are no protests, the City is to release the retention to the Contractor; and
WHEREAS, the action of accepting improvements is found to qualify for a Class 2 Categorical Exemption under CEQA Section 15302 in that the project consists of replacement or reconstruction of existing structures and facilities where the new structure/facility will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced.
NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Cotati hereby takes the following actions:
1. Accepts the contract work performed on the Gateway Sign Project; and
2. Directs the City Clerk to record the attached Notice of Completion for said contract work 159 of 275
within 15 days of the date of resolution and provide a copy to the contractor (Cal. Civil Code §9204); and
3. Authorizes the City Manager to release any remaining contract retention to Bay Area Sign DBA Aloha Electric Sign Company thirty-five (35) days after the recordation of the Notice of Completion, provided that no liens or stop notices have been filed against the Project.
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 August 13, 2024, by the following vote, to wit:
Approved:___________________________
Mayor
Attest:______________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:______________________________
City Attorney
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After recording, return to:
Kevin Patterson, Deputy City Clerk
City of Cotati
201 W. Sierra Avenue
Cotati, CA 94931-4217
NOTICE OF COMPLETION
(ACCEPTANCE OF IMPROVEMENTS)
NOTICE IS HEREBY GIVEN THAT:
1. The City Council of the City of Cotati has accepted the improvements at the City Council meeting of August 13, 2024, for the Gateway Sign Project. The nature of the City of Cotati’s interest, as owner, of the property is as public right-of-way.
2. The improvements were completed and deemed complete by the Director of Public Works/City Engineer on June 28, 2024.
3. The name of the original contractor for the work of improvement was Bay Area Sign DBA Aloha Electric Sign Company for a total constructed amount of $68,900.
4. The Contractor has provided the City with a maintenance bond and guaranty in the amount of 10 percent of the construction contract amount for a period of one (1) year from the date of City Council acceptance of the improvements.
5. This Notice of Completion constitutes the City’s acceptance of the improvements for this project.
I am the City Engineer/Public Works Director for the City of Cotati, a Municipal Corporation. I make this verification on behalf of the City of Cotati. I have read the Notice and know its contents. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.
Dated: _________________ ___________________________
Craig A Scott
City Engineer/Public Works Director
Document1
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Cotati City Council
Agenda Staff Report
Item type: CONSENT CALENDAR (ACTION)
To: City Council
Subject: CONSIDERATION OF A RESOLUTION AUTHORIZING DROP
MOBILITY THE RIGHT TO OPERATE SHARED ELECTRIC
BICYCLES WITHIN THE CITY OF COTATI AND
AUTHORIZING THE CITY MANAGER TO ENTER INTO A
REVOCABLE LICENSE AGREEMENT WITH DROP MOBILITY
LLC (DBA: DROP MOBILITY) TO PARK AND OPERATE
SHARED ELECTRIC BICYCLES WITHIN THE CITY OF
COTATI
Date: August 13, 2024
Written by: JP Harries, Senior Planner
Recommendation
Staff recommends that the City Council adopt a Resolution authorizing Drop Mobility the right to operate shared electric bicycles within Cotati and authorizing the City Manager to enter into a revocable license agreement with Drop Mobility and sign all other documents necessary to allow operation and parking of shared electric bikes within Cotati as part of a two-year bike share pilot program in Sonoma and Marin counties.
Background/Discussion
In August 2018, the Metropolitan Transportation Commission (MTC) awarded the Sonoma County Transportation Authority (SCTA) and the Transportation Authority of Marin (TAM) a $826,000 Bike Share Capital Program grant to support the Marin-Sonoma Bike Share Program (Program). The Program will provide for a system of at least 300 shared pedal electric assist bicycles (e-bikes) around and connecting to the Sonoma-Marin Area Rail Transit (SMART) stations between Santa Rosa and Larkspur. The participating agencies and jurisdictions include Cotati, Santa Rosa, Rohnert Park, Petaluma, Novato, San Rafel, Larkspur, SMART, and the Golden Gate Bridge Highway & Transportation District.
Goals of the Program as established through the grant:
• To encourage and support the expansion of bicycle use through bike sharing • To facilitate multimodal transportation with local transit 162 of 275
• To address first/last mile connections for commuters who use SMART and other transit systems
In February 2020, SCTA approved an agreement with Gotcha Mobility, LLC (Gotcha) to plan, launch and operate a three-year pilot bike share program. In early 2021, Gotcha was purchased by Gotcha Mobile Holdings, LLC with their services operating under the name Bolt Mobility (Bolt).
On May 11, 2021, the Cotati City Council adopted Resolution No. 2021-19 authorizing Bolt the right to operate shared e-bikes within the City of Cotati as a part of the Program and authorizing the City Manager to enter into a Coordination Agreement with Bolt, SCTA, TAM and other jurisdictions participating in the Program. The City Manager signed the finalized Coordination Agreement on September 30, 2021.
Interjurisdictional coordination and Program planning proceeded until the summer of 2022 when Bolt ceased communications with staff and discontinued operations nationwide. SCTA subsequently terminated its agreement with Bolt. To date, only a small portion of the grant funding for the Program has been spent on attorney’s fees.
Like all forms of transit and transportation, the COVID-19 pandemic caused market instability for shared micromobility companies with reduced trips, supply chain issues, and increased operating costs. After Bolt ceased operations, City staff continued to work with SCTA, TAM and other jurisdictions to consider whether a modified scope might be more viable, and whether alternative programs that also advance goals for reducing vehicle miles travelled and first/last mile connections with transit should be considered. SCTA, TAM and the participating jurisdictions chose to continue to pursue a shared micromobility program and agreed to modify the scope of work to allow for more flexibility to develop a more viable Program.
In June 2023 SCTA staff released a revised Request for Proposals (RFP). In August, four proposals were received and reviewed. One proposal was rejected because it did not meet the minimum requirements and then a selection panel comprised of staff from SCTA, TAM, MTC, SMART, Santa Rosa, and San Rafael reviewed, scored and interviewed the remaining firms. The panel made a unanimous decision to recommend Drop Mobility as the top-ranked firm.
On December 11, 2023, the SCTA Board authorized the Executive Director to finalize and enter into an agreement with Drop Mobility to plan and operate a two-year bike share pilot program.
Since then, City staff have been meeting monthly with SCTA, TAM, SMART, MTC, and other participating jurisdictions to plan and develop the Program with Drop Mobility.
Analysis/Discussion
Marin-Sonoma Bike Share Program
The proposed Program scope of work (see Exhibit A) includes planning, equipment procurement, launch, and a two-year operation of a system of 300 shared pedal electric assist bicycles (Class 1 e-bikes) and approximately 75 parking hubs with wayfinding and advertising signage. Under the agreement with SCTA, Drop will design the service area and bicycle parking plan based on previous research, public and stakeholder input, market analysis and site evaluations. The system is expected to launch in September of this year and continue for two 163 of 275 years after launch. The agreement includes a 90/10 revenue split, where Drop maintains 90 percent of the revenue and 10 percent is allocated to SCTA to reinvest in the system during or after the pilot period. System operations after the pilot are expected to require additional funding for subsidies.
Currently, there are three e-bike parking hubs proposed in Cotati. One will be at the SMART station located on SMART property adjacent to the platform. The other two will be located within the public right-of-way: 1) next to the bus stop located on Old Redwood Highway between West Sierra Avenue and La Plaza, and 2) at the corner of La Salle Avenue and East Cotati Avenue. Other nearby parking hubs include Sonoma State University and Sonoma Mountain Village.
Figure 1 – Location of bike share parking hub at La Plaza Park Figure 2 – Location of bike share parking hub at La Salle Avenue & East Cotati Avenue 164 of 275
Figure 3 – Rack style used by Drop Mobility
Financial Considerations
The Program will be funded by the Bike Share Capital Program grant from MTC that was awarded to SCTA and TAM. The Program will require city staff time for participation in the working groups, public outreach, and the permitting process. Additionally, the City has agreed to waive all permitting fees associated with the license agreement for installation of the bike hub and operations of the program.
Environmental Issues
This project qualifies for a Categorical Exemption under California Environmental Quality Act (CEQA) Guidelines Section 15301(c) (Existing Facilities). The project also qualifies for a Statutory Exemption under Section 21080.25(b)(1) of the Public Resources Code, which exempts transportation projects that include bicycle facilities that improve safety, access, or mobility, including new facilities, within the public right-of-way as long as it meets the criteria provided in Section 21080.25(c) of the Public Resources Code. Section 21080.25(c) exempts new bicycle facilities (including bike share facilities) when: 1) a public agency is carrying out the project and is the lead agency, 2) the project is located within an urbanized area, 3) the project is located within an existing right-of-way, 4) the project will not add new automobile capacity, and 5) the project will not require the demolition of affordable units. All these criteria are met; therefore, no further environmental review is required. 165 of 275
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EXHIBIT A: SCOPE OF WORK
The program shall include bike share rentals that are available on-demand, 24 hours a day, seven days a week, 365 days a year, through a range of membership options. The system should include sufficient shared micromobility devices to provide reliable travel options throughout the service area. Each shared micromobility vehicle should include a locking mechanism and transaction terminal. The system should utilize geofenced service areas and also include dedicated hub-based stations with bike racks, or parklets if available. The initial system shall include a minimum of 300 Drop electric assist model E201L bicycles and approximately 75 hub stations that include bicycle racks, advertising and wayfinding panels.
The Contractor is responsible for all aspects of the system launch and operations including: final system planning, any necessary permitting design; equipment purchases; construction/installation, if any; pre-launch and ongoing marketing; operations and maintenance; and, ongoing customer service financial transaction handling, dispute resolution, and evaluation and reporting.
The Contractor will provide services in the areas of system development, procurement, installation and launch, system operations and maintenance, and financial and business operations, as described below.
Task 1: Program Development
Task 1A: Contractor shall develop a bike sharing micromobility system that will provide sufficient micromobility devices to support the system, which ideally encompasses a geographic area consisting of SMART station areas from Larkspur through Santa Rosa and key destinations with high potential for use.
To help promote safety, equity and bike interoperability in the Bay Area, Contractor must ensure the bike share system includes the following:
a. Provide a service area that includes at least 20% in communities identified as within a ¼-mile of a Equity Priority Community (EPC), Community Air Risk Evaluation (CARE) Program Area; or in communities with a developed community based transportation plan for low income or disadvantaged communities (TAM and SCTA will work with the Contractor to ensure this policy is met in the final service are design).
b. Meet bicycle safety standards which meet or exceeding International Organization for Standardization (ISO) 4210: Safety Requirements for City and Trekking Bicycles. c. Provide data sharing with SCTA and TAM, including quarterly trip and membership data; other additional applicable data that may inform annual program analysis related to mode shift, safety, public health and equity; GBFS format data to monitor parking, trip, and route demand.
Annual Program data and analysis related to mode shift, safety, public health and equity. d. Comply with data privacy conditions (see Exhibit C).
Task 1B: Contractor shall work with a working group made up of SCTA, TAM and partnering jurisdictions on a regular basis and prepare for and attend monthly meetings either in-person or virtual to ensure good local coordination and connectivity and help resolve technical issues. Contractor shall attend a project initiation meeting with the working group, which SCTA/TAM will schedule within 60 days following execution of this agreement.
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Task 1C: Contractor shall work with each participating agency to permit the system operations and execution of right-of-way approvals for bike/shared micromobility parking. This may require the contractor to attend meetings or presentations with governing city/town board/council, as appropriate, for program approvals and permitting during the stages of the approval and permitting process. Note that several hub locations have been previously vetted in jurisdictions along the SMART rail corridor and based on the information available it is anticipated that those hubs would be permitted efficiently. Additional hubs may be identified and not all previously identified hubs are required to be in the initial system.
Task 1D: SCTA/TAM will develop and share branding concepts with Contractor. Submit draft brand concept.
Incorporate SCTA/TAM comments on brand concept and resubmit. Submit draft image, including color scheme, logo images, and messages not already identified in brand concept.
Task 1E: Contractor shall present a plan to encourage safety including facilitation of helmet use and availability, and safe bicycling/riding behavior for review and approval by SCTA/TAM. This plan shall include the following efforts:
• Educational and safety screens users must scroll through during the registration process • Signage at each station with safety information and how to properly use the system • Community events that promote safety and include helmet give-aways Task 1F: Contractor shall work with SCTA/TAM and participating agencies to develop and approve any unique membership options for the program. Membership options shall include the following categories and not exceed the following pricing during the two-year pilot period. • Pay as you go option - $1 to unlock + .25 cents per minute • Memberships - $20 per month, $50 quarterly and $100 annual (includes 60 minutes of free ride time per day)
• Passes - $10 for a 24-hour pass
• Discounted access
o Student pass
o Equity pass - $5 per month (includes 60 minutes of free ride time per day) • Special access – sponsors, city staff, corporate partners, etc. • Others - event pricing, coupons, etc.
Optional fees:
• Overtime: .40 cents per minute of overtime
• Out of hub parking fee: $15
• Out of system parking fee: $50
Task 2: Parking Spaces and Service Area Plan
Contractor will provide both a preliminary service area and parking map that the SCTA/TAM and Contractor will release for public agency input. These maps should consider previously vetted high-priority areas developed and the equity requirements included under Task 1. The formula for assigning bikes throughout the service area shall be shared and approved by TAM and SCTA.
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Task 2A: Contractor shall conduct site visits, phone calls, and in-person meetings with participating agencies as needed to confirm service area and parking siting. Submit initial system map with detailed service area and parking spaces. Map should include service area rationale and methodology, actual physical parking locations, owner of property, and parking impact. Recommended parking hubs must comply with underlying zoning, and the Americans with Disabilities Act. Parking hub locations must be in proposed service areas and should emphasize maximizing ridership across all demographics while minimizing operating costs and the loss of on-street parking revenue. Proposed parking hub locations should reflect key destinations, transit hubs, neighborhoods, and activity centers. Any parking hub location proposed for private property must receive written approval from property owner.
Bike and micromobility parking infrastructure should be designed to be flexibly deployed in a variety of surfaces and configurations, without interfering with sidewalks, traffic, or other street operations. Contractor shall work with the partner cities and property owners to install bike racks and/or bike corrals throughout the system area sufficient to ensure user convenience and to ensure misparked bicycles and micromobility devices do not create a public nuisance or hazard. The initial system shall include approximately 75 parking hubs with bicycle racks, advertising and wayfinding panels across jurisdictions that commuter rail currently serves. Jurisdictions included in the Service Area Plan are anticipated to include: Larkspur, San Rafael, Novato, Petaluma, Cotati, Rohnert Park, and Santa Rosa.
Additional equipment needed shall include spare parts, charging infrastructure and equipment for warehouses, wayfinding and informational signage, information technology equipment and software applications.
Task 2B: Submit recommended system map that incorporates feedback from SCTA/TAM and partner agencies, and includes a formal response to comments.
Task 2C: Incorporate final changes from partner agencies. Final parking locations subject to approval by each respective participating agency’s authorized agent.
Task 2D: Obtain rights and permissions for all parking hubs sited on each participating agency’s property, for both placement of parking spaces, right of Contractor to conduct work on property and for public access to the site, 24 hours a day, and 365 days a year to use the system, including publicly and privately owned sites. Obtain permission to operate within each jurisdiction where parking hubs are sited. Submit these written agreements to SCTA/TAM. Draft permit application materials from former sites will be supplied to contractor to support new applications, as appropriate.
Task 2E: Develop Site Plans for all final parking hub locations, providing necessary information for partner agencies to designate locations within the public right of way. Contractor shall ensure that Site Plans comply with all applicable state, federal, and local laws, including but not limited to the Americans with Disabilities Act.
Task 3: Outreach and Marketing Plan
Contractor will create and execute a campaign, in collaboration with SCTA/TAM, partner agencies, and local partners, to build local enthusiasm and interest in bike sharing ridership, membership, and sponsorship.
Task 3A: Develop outreach and marketing plan based on research into potential customer markets, methods to increase ridership, secure corporate memberships, partner with organizations throughout the community, and align with SCTA/TAM transportation plans and goals. Outreach and marking plan shall include an initial contact list, which will be developed collaboratively with participating agency 168 of 275
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staff. The contact list shall be an inclusive and diverse representation of all interested parties, including advocacy groups; community groups; civic groups; neighborhood associations; business and planning professionals; environmental groups; elected officials; and government agencies.
The outreach and promotional strategy will include, but not be limited to, the following:
• An initial launch event and press outreach – Contractor will use the time leading up to the launch and the first few weeks after to generate local buzz and excitement, educating the community by announcing system size, station locations, demos and pricing. • Employer outreach - establish ongoing connections with local businesses and major employers within our partner communities. Through the provision of information, exclusive pricing, and product demonstrations, we aim to cater to commuters effectively. • Community outreach - housing developers love to tout bike share as an amenity, and we can use this to our advantage to get them to help spread the word. We can approach housing communities based on proximity to hub locations to provide education. Additionally, we conduct outreach to low-income communities, ensuring they are well-informed about special pricing options tailored to their needs.
• Community events - we actively host/participate in community events where we educate individuals on system usage, give safety trainings, offer complimentary rides and sell membership opportunities.
• Social Media - we oversee the system's social media platforms and orchestrate campaigns. We strategically employ geo-targeted educational advertisements within the system's service areas, effectively reaching and engaging our intended audiences. • Radio and print promotion - good old-fashioned radio and print help inform the community and spread the message about bike share.
Program Website and Smart-phone Apps Design, maintain, and host a program website that provides information about and promotes the program and allows users to register, submit credit card data, and execute a user agreement. Ensure web pages display correctly on all major web browsers and mobile devices/formats. Contractor will also develop or provide a program smart phone app for iOS and Android formats that provides all the same information and functionality as the program website.
Website and apps will include a clearly-written Frequently Asked Questions (FAQs) section and should be available in multiple languages to ensure widespread accessibility to Marin and Sonoma communities.
Task 3B: Identify key messages for different customer target areas.
Task 3C: Identify social media strategies.
Task 3D: Identify strategies to engage low-income users and traditionally under-represented groups.
Environmental justice needs will be addressed by ensuring that low income and underrepresented community members are engaged in the process conducting outreach for planning, system development and ongoing throughout the project.
Task 3E: Develop collateral in multiple languages, including letterhead, system brochures, and a video on how to use the bike share system.
Task 3F: Develop registration packet.
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Task 4: Acquire and Launch System
Contractor will acquire and coordinate all System equipment; ensure that all equipment complies with all applicable state, federal, and local laws, including but not limited to the Americans with Disabilities Act; store and check equipment; and hire local employees and/or contractors; install and execute System launch.
Task 4A: Contractor will acquire System capital equipment, including but not limited to a bicycles, other micromobility devices as applicable, spare parts, software licensing and warranties.
Task 4B: Contractor will secure and set up a maintenance and office facility and office systems for operations, maintenance, repair, equipment storage and distribution, as well as for business and financial affairs, customer service, public affairs, marketing and membership fulfillment. It is highly desirable that Contractor’s project manager and operations manager are both based in the Bay Area.
Task 4C: Receive and perform detailed inspections of all capital equipment to ensure that equipment is free of any defects. Submit detailed inspection report for all Capital Equipment.
System Testing Field test all integrated components of entire system (hardware and software) prior to launch to SCTA and TAM’s satisfaction. Identify and resolve problems and make any necessary system improvements before launch.
Task 4D: Submit a plan for developing and implementing a regular inspection, maintenance and repair schedule that keeps the system and the bicycles in continuous compliance with all local regulations, partner contracts (e.g. property owner agreements, sponsor agreements, etc.) and warranty requirements.
Contractor works with leading manufacturing partners, adhering to international protocols like ISO 9001:2015 and has industry Gold standard certifications like CFR1512 for our e-bikes. Vehicles also comply with CPSC Public Law 107-309 for maximum engine wattage and ISO 43.150. TUV testing certification is also available and can be provided on request. All Drop bikes meet or exceed the ISO 4210 standards for Safety Requirements for City and Trekking Bicycles.
Contractor provides a comprehensive inspection, RMA, repair and maintenance plan and process. This includes RMA for software, stations and bicycles. We also agree to replace any part that becomes obsolete during the life with one that functions at an equivalent level.
Contractor provides up to a 10-year warranty on the bike frame. Additionally, limited warranties are available on select key parts in case of quality issues unrelated to normal wear and tear. A sufficient inventory of spare parts is maintained both on site and in Contractors global warehouses for use during the contract period.
Task 4E: Assign operations manager(s) and operating team to the system.
Task 4F: Submit draft webpage to SCTA/TAM.
Task 4H: Conduct pre-launch marketing activities, including but not limited to web site launch, media promotions, membership pre-sales, a ribbon cutting launch event, and appearance at up to seven (7) marketing events.
Task 4I: Obtain any necessary permits to perform installation. 170 of 275
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Task 4J: Install 100% of Stations or otherwise implement the System on the streets in compliance with all relevant regulations, permit and contract requirements. Contractor shall promptly repair or replace any sidewalk or other property that is damaged in the course of system installation. The system must be fully operational.
Task 4K: Host launch festivities and ribbon cutting ceremonies in both Marin and Sonoma counties.
Task 4L: Establish physical sign-up locations in each service area accessible by the public to obtain bike share micromobility program information, execute a user agreement, add funds to their account using check, credit/debit card, or cash, and obtain RFID cards if included in the system. Efforts should be made to co-locate physical sign-up locations with or near existing Clipper® retail locations, if Clipper® is being used as a membership identifier.
Task 5: Operate Service (ongoing from System launch)
The period of performance for these services shall include an initial term encompassing system development activities and a minimum of 24 months of system operations. The period of system operations begins when the full system is operating and open for public use.
Real-time System Information Provide a system to track bicycles, other micromobility devices, parking station and dock status, as applicable. Populate an interactive map with location and status of micromobility devices throughout service area along with optional address and directions, and transit information. Map updates will be provided to the system website and iOS and Android Apps in real-time to enable users to locate stations and status of micromobility devices.
1. Open Data The Contractor shall make available open content data that will allow third party developers to provide applications to assist users in finding micromobility devices, parking, and comparing travel and usage information consistent with reports from other US systems.
Contractor shall make real-time data available in General Bikeshare Feed Specification (GBFS) and/or Mobility Data Specification (MDS) format. The Contractor shall also provide monthly anonymized data on user origins and destinations, trip length, trip time, and demographic information (age, sex, zip code). The Contractor shall work with SCTA and TAM to conduct user surveys on a semi-annual basis.
2. Customer Service Provide responsive and customer-friendly services that encourage repeat use, including timely response to complaints. Contractor will be required to submit for SCTA/TAM approval a system for creating and managing excellent customer service standards and procedures. At a minimum, system users should be able to report system comments and complaints to Contractor using a telephone hotline, a system website with a comment form or email address, and via program smart-phone apps. All system equipment shall contain a conspicuously posted telephone number and instructions for filing a complaint. The Contractor will provide a shared database in which SCTA/TAM can communicate complaints from the public and from the partner cities and properties, and in which the Contractor can report the resolution of such complaints. The Contractor will provide a timely response to any customer inquiries or complaints, according to agreed upon service standards.
Contractor will insure that Customer Service meetings the following standards:
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• Riders can contact support teams through in-app messaging, email or phone. All inquiries or complaints can be handle in both English and Spanish.
• The support team is trained and experienced in handling rider onboarding and education, billing questions, fee disputes, on trip issues management and parking complaints. The support team also assists fleet teams in fleet management and rider outbound related to parking education reinforcement.
• The customer service team responds to 70% of customer contacts in under 15 minutes with an overall SLA of 14 hours based on our hours of operation from 8am to 7pm MST. • Contractor is willing to hire a local associate who intimately knows the partner communities. • The customer service set up includes users being able to communicate with the backend operations in a few different ways: directly through in app, support phone number, email, etc. • Riders can also send an email to a customer support address. Contractor can enable customer support and ticketing tools for email management or plug into any of the customer support services or tools that you may currently use.
• For users who are well versed with the app or unable to call/email, there are detailed FAQ’s available on the app and website for answers to regular questions and some basic troubleshooting.
• Contractor enables periodic user surveys and give the users to rate their trip experience through the app directly. A report is shared with SCTA and TAM. • Contractor has a deep knowledge of the product and platform and SCTA and TAM you to find a cost effective support solution that meets the needs of your rider base.
3. Call Center - Operator shall provide to SCTA/TAM, participating agencies, all subscribers, and the public at large, a telephone number for Operator’s call center. The call center shall be in continuous operation 24 hours per day, 7 days per week, and 365 days per year. Operator shall conspicuously post a notice on each bike and online advising the general public that they may direct their questions, complaints, and comments to the Operator’s call center. Operator shall ensure that the call center can handle calls in English and Spanish using operators fluent in those languages. The operators at the call center shall be fully competent and knowledgeable to answer questions and provide information concerning, among other things, subscription process, subscription prices, billing, crashes, comments, complaints, malfunction problems, location of Stations, direction to the nearest Station that has Bicycles available for use and/or available parking for returns. The call center manager shall be knowledgeable about all the service areas. The call center operators shall keep accurate and complete written records of each such call in a customer service log as hereinafter required, including the primary reason for each call and the status of the call (e.g., “no further action”, “requires reimbursement”). Any emails to Operator’s public information email address must be responded to within 1 business day.
4. Maintenance and Repair Contractor will be required to submit for SCTA/TAM approval a plan for developing and implementing a regular inspection, maintenance and repair schedule that keeps the system and the micromobility devices in continuous compliance with all local regulations, partner contracts (e.g. property owner agreements, sponsor agreements, etc.) and warranty requirements. System maintenance shall include preventive maintenance, inspection and prompt repair or replacement of all system hardware and software elements including but not limited to terminals, signs, bicycles, bicycle components, micromobility devices, concrete or asphalt beneath stations, solar panels (if applicable), website, operating system and all software.
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basis, as well as removal of debris in and around the system structures. System maintenance and repair will comply with the below service standards for the duration of the operating period:
• The monthly average Bicycle Fleet Level, recorded once each Day of the month between the hours of 6:00 AM and 9:00 PM, is not less than 70% of the Program Fleet.
5. System Balancing Monitor the location of each bicycle, micromobility device, and if applicable, the status of each designated parking location. Continuously and predictably redistribute bicycles and micromobility devices so that the system provides users with consistent availability of bikes and micromobility devices throughout the service area and, if applicable, consistent availability of spaces in which to park bicycles and micromobility devices at the end of a trip.
Contractor shall respond to and relocate, retrieve, or remove any misparked bicycles or micromobility devices in a timely fashion. Incentives for users to end trips in high-demand areas may be used to support rebalancing. System balancing will comply with the following service standards for the duration of the operating period:
• No station shall be completely empty of available bikes for use or completely lacking empty parking spaces for more than 120 consecutive minutes during Peak Hours (i.e., 6:00 AM to 9:00 PM). After the first 12 months of operations, this service standard may be assessed and reformulated, and a new service standard may be fully implemented immediately following the review of the first 12 months of operations data with approval from SCTA/TAM.
Additionally, the local operations team is advised to maintain a certain minimum density of bikes in specific Equity Priority Community neighborhoods, as defined during the discovery phase. Contractor will also track bike availability in specifically marked equity zones within the service area through the operations dashboard to ensure a regular rebalancing of bikes to such zones.
6. Helmets & Safety Develop a safety program that includes outreach about safe and legal riding practices and provides incentives for the use of helmets. These efforts should be coordinated with local and countywide bicycle safety education efforts and should utilize a range of media capable of reaching different audiences.
7. Special Events Contractor has established comprehensive protocols to effectively navigate unique and unforeseen circumstances. These measures encompass, among others:
• Swiftly dismantling or relocating infrastructure in response to emergencies, adverse weather, or road closures.
• Adapting vehicle placement and distribution to accommodate heightened demand or unexpected crises.
• Creating temporary virtual stations or designated "parking corrals" to address shortterm parking requirements for special events. • Secure bikes and infrastructure within our operational facility or warehouse during instances of extreme weather or emergencies.
8. Reporting At monthly, quarterly, and annual intervals, Contractor shall submit reports that track Key Performance Indicators (KPIs) against agreed upon service standards. At a minimum, reports will include a monthly public-facing “snapshot” report that tracks overall membership and usage 173 of 275
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levels; monthly management reports for SCTA/TAM project managers that monitor KPIs against agreed upon service standards, as well as monthly business/financial metrics; and an annual report available to the public and interested stakeholders. Contractor will be available to present to SCTA, TAM, and their respective Boards and/or Advisory Committees on an asneeded basis. Annual reports should include program data and analysis related to mode shift, safety, public health, and equity. SCTA, TAM, and all partners will have access to real-time system information via Contractor’s proprietary administrative software and dashboard. The dashboard will include the KPI data listed below. Contractor can customize and provide information on anything specific that partners ask for and will work to set up custom reports during the Discovery Phase.
KPI Metric Tracking
KPIs will be broken into two categories:
1) Daily roll ups will be graphed over time to study overall system performance. These will be the core metrics we all work towards improving/maintaining. 2) Instantaneous data to help us determine acute system health at a glance, shown in italics.
The dashboard should show both the roll up data as “today so far” as well as the instantaneous at-a-glance data. The instantaneous data can also be used in more detailed reports for deeper dives into performance.
Trips
• Trips per day (total)
• Trips per available Bike per Day
• Trip distance in miles
• Trip duration
• Failed trips (Could include for tracking app performance) • Trip History
Vehicles
• Percent of Availability
• Number of Low batteries
• Number of unavailable Vehicles
• Improper parking
• Percent of battery per bike
Operations
• Number of Unique ScansTouches (total)
• Number of Unique ScansTouches per day (eventually get to staff-hour) • Number of Battery Swaps Performed
• Number of Customer Service Interactions per trip
• Number of Repairs Resolved
• Inspections performed on vehicles and infrastructure
• Fines/fees collected
• Number of Rebalanced vehicles per day per zone
• Number of bicycles retrieved outside of service areas Revenue
• $ Daily revenue (total)
• $ Average revenue per trip
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• $ Revenue per bike per day
• Farebox recovery
Membership
• Active riders
• Total members
• App downloads
• Equity passes
• Student usage
• All which can be broken down by geography and demographics.
Customer service
• Average response
• Number of complaints with more than 24-hour response time • Website and telephone hotline time online
9. Registration Provide and maintain in full operation a form within the program website and smart-phone apps that enable users to register, submit credit card data, and execute a user agreement. After registration, members should be able to immediately access a bike or other micromobility device (i.e. walk-up utilization). Membership of various durations (such as 30 minutes, hourly, daily, weekly, monthly and/or annual) shall be available. The system may optionally use Clipper® (the Bay Area’s electronic transit fare payment system) as a membership identifier (i.e. mechanism to check out or unlock bicycles).
10. Secure Financial Transactions and Data Privacy Complete secure financial transactions with data input at the web page, through station kiosks/terminals, or by smart-phone. Financial data must be held securely in a manner that complies with all laws and is only accessible to authorized personnel. Contractor shall develop a robust security policy. The Contractor must ensure that its security policy is enforced, report any breaches to SCTA/TAM, and develop a corrective plan to prevent future breaches. The method for protecting financial data, user names, and addresses, must be Payment Card Industry (PCI) compliant and satisfy Data Privacy Conditions in Exhibit C.
Any sharing of user data with third parties or access to camera, photos, files, contacts, location services, or other data as part of smart phone “app” should be clearly and explicitly disclosed to users as part of user agreement, with clear opt-in or opt-out abilities.
11. Fee Collection Track whether bicycles and other micromobility devices, as applicable, are returned during a specified period and accurately assess overtime fees. Clearly communicate rules regarding duration of usage of bicycles and other micromobility devices, as applicable, and fees to users. Options for low-income memberships should be included with details provided about eligibility thresholds, verification process, and strategies to reduce barriers to obtaining discounted memberships.
12. Revenue All revenues, including membership fees, use fees, and revenue from other sources, will be collected by the Contractor. Revenue will be split 90/10 where Drop maintains 90% to offset operational costs and subsidies 10% is maintained by SCTA and TAM in order to reinvest in the system or offset programmatic costs. Membership model and fee structure for users of the System, including promotions and a program for discounted or free low-income membership, are described in Task 1F.
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13. Records Maintain all business-related, accounting and customer service-related records and make them available to SCTA/TAM upon appropriate notice for inspection and auditing.
14. Billing and Compensation Contractor shall submit invoices to SCTA based on an agreed upon schedule. SCTA/TAM anticipate that the Contractor will be compensated on a cost plus fixed fee basis. Any change in the fees between pre-launch and system operations phases of the project must be reflected in the cost proposal. The monthly fee may, if needed, cover a reasonable number of station relocations or system adjustments, as agreed upon during Regular Operations Reviews. Note the grant is subject to the requirement that funding is made available for bike share specifically, whereas scooters and other micromobility devices may be part of the program but operations may not funded from the MTC grant. Therefore billing must be related to the bike share operations.
15. Regular Operations Review Review and provide on a quarterly basis reports, maps, and data pertaining to membership, ridership, fee structure, and trips and routes. Contractor will also share all raw data related to user complaints with SCTA/TAM. Based on the data Contractor is expected to develop recommendations that promote increased use of the system, promote closer coordination with bike share micromobility system partners (e.g. transit operators, major employers), and reduce or eliminate any operating deficits. Any recommendations for complementary bicycle or pedestrian infrastructure or transit service improvements will need prior SCTA/TAM approval. Contractor will meet with SCTA/TAM or other partner agencies or stakeholders as needed to discuss program modifications.
16. Risk Management Contractor will purchase, manage, and maintain all necessary insurance policies needed to protect all people and property related to the program. Contractor shall indemnify, hold harmless, and defend the SCTA, TAM, MTC, all partner jurisdictions, and partner properties (including their respective elected officials, officers, agents and employees) from and against any and all claims, litigation, demands, damages, liabilities, costs, and expenses, including court costs, attorney’s fees, experts fees and other costs and fees of litigation or other dispute resolution proceedings (“Claims”) resulting or arising from Contractor’s performance, or failure to perform, except Claims arising out of the SCTA’s or TAM’s sole negligence or willful conduct. Contractor shall indemnify, defend and hold harmless MTC and its board members, officers, agents, and employees from any and all claims, demands, suits, loss, damages, injury, and/or liability (including any and all costs and expenses in connection therewith), caused by any negligent or otherwise wrongful act or omission of Contractor, its officers, agents, or employees.
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RESOLUTION NO. (XX)
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COTATI AUTHORIZING
DROP MOBILITY THE RIGHT TO OPERATE SHARED ELECTRIC BICYCLES
WITHIN THE CITY OF COTATI AS PART OF A TWO-YEAR LONG PILOT PROGRAM (“MARIN-SONOMA BIKE SHARE PROGRAM”) AND AUTHORIZING
THE CITY MANAGER TO ENTER INTO A REVOCABLE LICENSE AGREEMENT
WITH DROP MOBILITY AND SIGN ALL OTHER DOCUMENTS NECESSARY TO
IMPLEMENT THE PROGRAM
WHEREAS, the Sonoma County Transportation Authority (“SCTA”) and Transportation Authority of Marin (“TAM”) jointly applied for the Bike Share Capital Program through Metropolitan Transportation Authority (“MTC”) and in August 2018 were awarded a $826,000 grant for the implementation of a bike share pilot program in Sonoma and Marin counties (“Marin-Sonoma Bike Share”) in connection with Sonoma Marin Area Rail Transport (“SMART”); and
WHEREAS, in 2022, the company selected to operate the bike share program ceased all communications and operations nationwide and subsequently all operating agreements with the company were terminated; and
WHEREAS, in June 2023 SCTA released a revised Request for Proposals, and on December 11, 2023, the SCTA Board authorized its Executive Director to enter into an agreement with Drop Mobility to plan and operate a two-year bike share pilot program with a focus on providing bike share facilities along the cities and towns located along the SMART rail line; and
WHEREAS, the City of Cotati adopted the updated Active Transportation Plan on May 14, 2024, which includes Policy 3-5 directing the City to continue to work with SCTA to develop a regional bike share/micromobility program; and
WHEREAS, Drop Mobility will operate, and maintain the Bike Share Pilot Program within Cotati at no direct cost to the city; and
WHEREAS, all monitoring and evaluation of the Bike Share Pilot Program will be conducted by Drop Mobility and overseen by the SCTA and TAM; and WHEREAS, the City desires to enter into a Revocable License Agreement with Drop Mobility to allow operation and parking of shared electric bicycles at locations within the City’s right of way.
WHEREAS, the City of Cotati has determined that that the Marin-Sonoma Bike Share Program is categorically exempt from the California Environmental Quality Act 177 of 275
(CEQA) pursuant to CEQA Guidelines Section 15301(c) (Existing Facilities) and qualifies for a statutory exemption under Section 21080.25(b)(1) of the Public Resources Code.
NOW, THEREFORE, BE IT RESOLVED that the City of Cotati authorizes Drop Mobility the right to park and operate shared electric bicycles within the City of Cotati during the pilot period; and
BE IT FURTHER RESOLVED that the City Council of the City of Cotati authorizes the City Manager, or designee, to enter into a Revocable License Agreement with Drop Mobility, substantially in the form shown in Attachment A at no cost, and sign all required permits for installation of designated bike share parking and other documents related to the operation of the Marin-Sonoma Bicycle Share Pilot Program.
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 August 13, 2024, by the following vote, to wit:
Approved:___________________________
Mayor
Attest:______________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:______________________________
City Attorney
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ATTACHMENT A
REVOCABLE LICENSE AGREEMENT
This Revocable License Agreement (“Agreement”) is entered into as of , 2024 (“Effective Date”), by and between the CITY OF COTATI, a municipal corporation of the State of California (hereinafter "City"), and DROP MOBILITY CORPORATION and DROPBIKE INC, DBA Drop Mobility, a California corporation (hereinafter “Licensee” or “Drop Mobility”).
RECITALS:
A. City is the owner of the public right of way located at sites in Cotati, California, more particularly described in Exhibit A attached hereto and incorporated herein (“Premises”).
B. Drop Mobility is a duly qualified and licensed shared micromobility operator, experienced in the operations of bike share micromobility systems, including rental, repair, marketing, customer service, and related services.
C. Drop Mobility seeks to install, operate, and maintain modular bicycle racks and a bike hub, designated for locking and storing Class I Electric Bicycles including related display panels of information and instruction for use.
D. Drop Mobility seeks to locate said bike hubs on a portion of City’s Property, for the purposes outlined above.
E. City has determined that the said right of way will not be required for a public purpose during the term of this License and that the use of the surface of said right of way by the public or the City will not be impaired.
F. City finds that there is a public benefit in providing a bike sharing system to the community.
G. City is willing to grant a license to Drop Mobility for these purposes on the terms and conditions hereinafter set forth.
FOR VALUABLE CONSIDERATION, the receipt of which is acknowledged, the parties agree as follows:
1. Grant of License
City grants to Drop Mobility, subject to the conditions and covenants of this Agreement, a revocable license (“License”) to use the Premises for the purposes outlined above, together with necessary rights of ingress and egress over portions of the Property for these purposes. This grant of access is exclusively to permit access to the bike racks of the bike hub and does not include any rights to the remainder of City’s Property. 179 of 275
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2. Nonexclusiveness of License
This License is non-exclusive.
3. Prior Rights
This grant is made subject and subordinate to the prior and continuing right and obligation of the City to use the Property in the performance of its transportation operations, as they may now exist and as may be contemplated in the future.
In the event City determines that it needs to obtain possession of all or a portion of the Premises or needs to place restrictions on Lessee’s use of the Premises, City will give Lessee thirty (30) days’ notice prior to the date Lessee must vacate the Premises, a portion of the Premises or restrict the Permitted Use (“Surrender Date”). If City only uses a portion of the Premises, this License will continue in full force for the remainder of the Premises.
This grant is made subject to all licenses, Licenses, easements, restrictions, conditions, covenants, encumbrances, liens, and claims of title which may affect Property. The word “grant” shall not be construed as a covenant against the existence of any of these.
4. Term of License
The term of this License shall commence upon execution of this Agreement subject to the following:
a. Either party may terminate this License by giving ninety (90) calendar days of written notice to the other party,
b. If Drop Mobility defaults with respect to any obligation, covenant or condition of this Agreement and fails to correct the default within thirty (30) days after receipt of written notice from City of its intention to do so, City may immediately terminate this Agreement by written notice to Drop Mobility.
5. Drop Mobility Obligations
Drop Mobility agrees to install, operate, and maintain bicycle racks / bike hubs for Class 1 Electric bicycles in furtherance of operating the Bike Share Program.
As further consideration for this License, Drop Mobility acknowledges and agrees to the following when using the Property:
a. Utilities. Drop Mobility acknowledges that no utilities are required nor offered in association with the use of the portion of the City’s Property associated with this license agreement.
b. Access. Access to the Property shall only be by public streets, designated bicycle pathways and interior circulation routes in accordance with the paths of travel. 180 of 275
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c. Surrender and Restoration. Upon termination of this License, Licensee, at its sole cost and expense, shall remove any improvements placed on the Premises, remove any personal property therefrom, restore the Premises to its original condition, and cease any further use of the Premises as provided herein. Should Licensee neglect to restore the Premises to a condition satisfactory to the City within 90 days, City may perform such work or have such work performed and Licensee shall immediately reimburse City for all direct and indirect costs associated with such work upon receipt of a statement therefore.
6. Hazardous Materials
No hazardous materials shall be handled by Drop Mobility at any time upon Property.
7. Assumption of Risk
Drop Mobility shall assume all risk of damage to property of Drop Mobility, including specifically to its bike share bicycles, wherever located on City Property and its docking equipment while upon Property of City incident to its use of Property as defined in this License; provided, however, such assumption by Drop Mobility shall not include any damage caused by the negligence and/or willful misconduct of City, its agents or employees.
8. Indemnification
Drop Mobility shall release, defend, and indemnify City, its successors and assigns and its directors, officers, employees, and agents (collectively, “Indemnitees”) from and against all claims, liability, cost, and expense for loss of, or damage to, property and for injuries to, or death of, any person (including, but not limited to, the property and employees of each party) when arising or resulting from the use of Premises by Drop Mobility or Drop Mobility invitees; or Drop Mobility 's breach of these provisions; provided, however, such release shall not include any liability, cost or expense caused by the negligence and/or willful misconduct of City, its agents or employees. It is the intention of the parties that should any term of this indemnity provision be found to be void or unenforceable, the remainder of the provision shall remain in full force and effect.
9. Insurance
Licensee agrees to obtain and maintain in full force and effect during the term of this Agreement the insurance policies set forth in Exhibit “B” “Insurance Requirements” and made a part of this Agreement. All insurance policies shall be subject to approval by City as to form and content. These requirements are subject to amendment or waiver if so approved by the City Manager. Licensee agrees to provide City with copies of the required policies upon request.
10. Notices
All notices required or permitted to be given under this Agreement shall be in writing and mailed postage prepaid by certified or registered mail, return receipt requested, or by 181 of 275
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personal delivery or by overnight courier, to the appropriate address indicated below or at such other place or places as either City or Drop Mobility may, from time to time, respectively, designate in a written notice given to the other. Notices shall be deemed sufficiently served four (4) days after the date of mailing by certified or registered mail, one (1) day after mailing by overnight courier, or upon personal delivery.
To DROP MOBILITY: Dropbike Corporation
548 Market Street, PMB 64073
San Francisco, CA 94104
Attn:
To Licensor: Community Development Department
City of Cotati
201 West Sierra Avenue
Cotati, CA 94931
Day-to-day communications to Licensor regarding this
Agreement should be directed to:
Jon-Paul Harries, Senior Planner
11. Successors and Assigns
Drop Mobility shall not assign nor sublet, in whole or in part, any rights covered by this Agreement, or permit any other person, firm, or corporation, to use, in whole or in part, any of the rights or privileges granted pursuant to this Agreement, without first obtaining the written consent of City.
12. No Waiver
No waiver of any default or breach of any covenant of this Agreement by either party shall be implied from any omission by either party to take action on account of such default if such default persists or is repeated, and no express waiver shall affect any default other than the default specified in the waiver, and then the waiver shall be operative only for the time and to the extent stated. Waivers of any covenant, term, or condition by either party shall not be construed as a waiver of any subsequent breach of the same covenant, term, or condition. The consent or approval by either party to or of any act by either party requiring further consent or approval shall not be deemed to waive or render unnecessary their consent or approval to or of any subsequent similar acts.
13. Severability
Each provision of this Agreement is intended to be severable. If any term of provision shall be determined by a court of competent jurisdiction to be illegal or invalid for any reason whatsoever, such provision shall be severed from this Agreement and shall not affect the validity of the remainder of this Agreement. 182 of 275
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14. Attorneys’ Fees
If any legal proceeding should be instituted by either of the parties to enforce the terms of this Agreement or to determine the rights of the parties under this Agreement, the prevailing party in the proceeding shall receive, in addition to all court costs, reasonable attorneys’ fees.
15. Governing Law
The rights and liability of the parties under this Agreement shall be interpreted in accordance with the laws of the State of California.
16. Counterparts
This Agreement may be executed in counterparts, each of which shall be deemed an original but both of which together shall constitute one and the same agreement.
IN WITNESS WHEREOF, the parties have executed this License as of the day and year first above written by their duly authorized representatives.
CITY OF COTATI
By:
Name
___________________________________
City Manager
___________________________________
Date
DROPBIKE CORPORATION
By:
Name
_________________________________
Title
___________________________
Date:
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Exhibit A
Bike Share Parking Hub Locations (two locations total)
La Plaza Park – Old Redwood Highway & La Plaza
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East Cotati Avenue & La Salle Avenue
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Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: COUNTYWIDE IMPLEMENTATION OF MICROENTERPRISE
HOME KITCHEN ORDINANCE
Date: August 13, 2024
Written by: Damien O'Bid, City Manager
Recommendation
It is recommended that the City Council review background materials, the prior letter issued by the City Council, and the proposal from the County of Sonoma to allow Micro Enterprise Home Kitchens in Sonoma County and provide direction to staff on updates/revisions to the prior letter from City Council, if any.
Background
The City Council previously discussed this item on October 12, 2021. The link to the meeting packet can be found here:
https://cotaticity.primegov.com/Portal/Meeting?meetingTemplateId=392. The letter sent to the County following that meeting is attached.
Analysis/Discussion
Microenterprise Home Kitchen Operations (MEHKOs) are small-scale retail food facilities established by Assembly Bills 626 (2018) and 377 (2019), allowing individuals to run small restaurants (dine-in or take-out) from their private residences. The intent of this legislation was to provide home-based business opportunities, particularly for those with limited access to capital or facing barriers such as child or elder-care responsibilities. The legislation was also intended to increase community access to healthy food, offering options for cultural or regional foods that may not be available locally.
MEHKOs must be operated by a resident in their private home, with no more than one full-time employee from outside the household. Food must be prepared, cooked, and served on the same day, and sales are limited to 30 meals per day or 90 meals per week, with annual sales capped at 189 of 275
$100,000. Third-party delivery services, catering, resale, and sales from food trucks or carts are prohibited, and outdoor signage is not allowed, though online sales are permitted. Issuance of permits and compliance is performed by the applicable Health Department, in this case the County of Sonoma Environmental Health Department.
For the service of alcohol, MEHKO’s are regulated by the California Department of Alcohol Beverage Control (ABC) like other retail establishments. In accordance with ABC, there are various factors that are considered when licensing any business for the sale or consumption of alcoholic beverages, and there are various restrictions on what licensed and unlicensed businesses are permitted to do. Before issuing an alcohol license, ABC would be looking to see if they meet the minimum qualifications of a bonafide eating place and then if they are going to be selling alcohol out of their home, then they would have to go through the permitting process first for approval. If that is granted and their neighbors or the Police Department do not protest, then the alcohol in the house would be limited to what they are authorized to sell. ABC would do a full investigation as if they were any other applicant. The link to ABC‘s frequently asked questions on the topic are at the following link: https://www.abc.ca.gov/wpcontent/uploads/2019/11/MEHK-AB-626-ABC-FAQ-11.5.19.pdf Once a County opts-in with a MEHKO ordinance, all the cities within the county are also optedin. In accordance with Part 7 of Division 104 of the California Health and Safety Code, Chapter
11.6, Section 114367(b), ”A permit issued by a county that has authorized the permitting of microenterprise home kitchen operations in accordance with this chapter shall be valid in any city within the county regardless of whether the city has separately enacted an ordinance or resolution to authorize or prohibit the permitting of microenterprise home kitchen operations within that city.” The City of Cotati has permissive zoning, which means that unless an activity is listed as an allowed activity, it is not allowed. Currently, restaurant uses are not allowed in most residentially zoned areas under the City’s land use zoning.
The County has indicated that they will propose to opt into the MEHKO statute via ordinance in September. As part of the ordinance to opt in, the County has indicated that they would require that the applicant demonstrate that a MEHKO is consistent with the governing General Plan of the applicable city or the County.
• In the cities, the form of this demonstration would be a letter from the city, or if the city does not respond in a timely manner, Environmental Health’s interpretation of the city’s general plan. Alternatively, cities could provide Environmental Health with a list of General Plan designations that allow and disallow MEHKOs. • In the unincorporated part of the County, Permit Sonoma would provide a list of consistent general plan areas. The County General Plan has many of the agricultural zoned areas (wineries, farms) that prohibit restaurants on the properties. In a nutshell, MEHKOs would not be allowed on agricultural land in the unincorporated areas of the County where the General Plan disallows restaurants.
Under this proposed review process, the County will consult with cities when they receive new applications in their respective jurisdictions. If a permit is issued, staff believe it will be required 190 of 275
to allow the MEHKO use, in accordance with state law. For the first year, MEHKO permits would not have fees, because the permitting fees would be covered by the grant received from the State.
Financial Considerations
There is no financial impact from issuing a revised letter to the County. If the County authorizes MEHKO’s within the City, there may be future costs associated with code enforcement activities, if necessary.
Environmental Issues
Issuing a revised letter will have no impact 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 14.03.021 of the CEQA Guidelines in that there is no possibility that the activity may have a significant impact on the environment. 191 of 275
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1450 Neotomas Avenue, Santa Rosa, CA 95405 • phone (707) 565-4700 • fax (707) 565-7849 Tina Rivera – Director
Agenda Item from: Tina Rivera, Director, Department of Health Services Agenda Item to: City Managers
Date: June 18, 2024
Purpose: City Managers’ Meeting June 20, 2024
Agenda Item – MEHKO – Microenterprise Home Kitchen Operations Microenterprise Home Kitchen Operations (MEHKO)
Microenterprise Home Kitchen Operations (MEHKOs) are small-scale retail food facilities established by Assembly Bills 626 (2018) and 377 (2019), allowing individuals to run small restaurants (dine-in or take-out) from their private residences. MEHKOs provide home-based business opportunities, particularly for those with limited access to capital or facing barriers such as child or elder-care responsibilities. They also increase community access to healthy food, offering options for cultural or regional foods that may not be available locally.
MEHKOs must be operated by a resident in their private home, with no more than one full-time employee from outside the household. Food must be prepared, cooked, and served on the same day, and sales are limited to 30 meals per day or 90 meals per week, with annual sales capped at $100,000. Third-party delivery services, catering, resale, and sales from food trucks or carts are prohibited, and outdoor signage is not allowed, though online sales are permitted.
The County will propose to opt into the MEHKO statute via ordinance in September. As part of the ordinance to opt in we would require that the applicant demonstrate that a MEHKO is consistent with the governing General Plan of the applicable city or county. • In the cities, the form of this demonstration would be a letter from the city, or if the city does not timely respond, Environmental Health’s interpretation of the city’s general plan.
Alternatively, cities could provide Environmental Health with a list of General Plan designations that allow and disallow MEHKOs.
• In the unincorporated part of the County, Permit Sonoma would provide a list of consistent general plan areas. In a nutshell, MEHKOs would not be allowed on agricultural land in the unincorporated areas of the County where the General Plan disallows restaurants.
For the first year, MEHKO permits would not have fees, because the permitting fees would be covered by the grant received from the State.
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Update for September 2024 Board Item
Microenterprise Home Kitchen Operations
MEHKO
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Microenterprise Home Kitchen Operation
AB 626, AB 377, AB 1325
• A Microenterprise Home Kitchen Operation (MEHKO) is a small-scale restaurant (dine-in or take -out) operated by a resident in a private home.
• Assembly Bills 626 (2018), 377 (2019) and 1325 (2023) establish the regulations for MEHKOs through California Health and Safety Code (CalCode).
• The County may “opt in” by ordinance or resolution, which allows permitting of MEHKOs within both the unincorporated County and in the cities.
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• MEHKOs provide home-based business
opportunities for those with limited access to
capital and lower the barriers for entry to
disadvantaged persons wishing to start a food
related business.
• MEHKOs increase community access to healthy
food, offering cultural and regional foods that
may not be available locally.
• The Legislature also found that many of these
small-scale businesses already exist, and less
restrictive regulation will provide better food
safety oversight.
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MEHKO Requirements
• Operator must be a resident of the private home operating as a MEHKO and hold a food safety manager certification.
• The MEHKO must be the primary residence. Second homes, vacation homes and motor homes do not qualify.
• If the residence is leased or rented, the property owner will be required to approve the use. • No more than one employee may work in the facility in addition to family and household members. • Any individual working in the MEHKO must obtain a food handler card. 4 198 of 275
MEHKO Requirements (cont.)
• Food must be prepared, cooked and served the same day. • Food preparation must occur in the kitchen of the residence with no auxiliary kitchens added. • No outdoor signage is allowed.
• Sales limited to no more than 30 meals per day or 90 meals per week with gross annual sales limited to $100,000 annually.
• Meals can be consumed on site, picked up or delivered through an employee or intermediary registered with CDPH. Third party delivery services, catering, resale and sales from food trucks or carts are prohibited.
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Health and Safety Code Limitations
• Environmental Health can conduct no more than one routine inspection per year, with additional inspections being allowed only to investigate a complaint or suspected health hazard.
• MEHKOs are exempted from several health and safety requirements that apply to other restaurants:
– A dedicated handwashing sink is not required in the kitchen area – Separate dishwashing/preparation sinks are not required – Ventilation and hoods are not required to meet restaurant fire and safety standards – Animals are not excluded in cooking areas
– ADA requirements are not applicable
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Zoning, Land Use and Permitting
• The decision to opt in will also apply automatically within the city limits. (Health & Safety Code § 114367) If the county opts in, the cities may not opt out. • MEHKOs are automatically by right uses in residential occupancies for the purposes of zoning and cannot be further regulated by local zoning or building regulations. • All that is required is a Health permit.
• The law allows for the enforcement of noise and nuisance ordinances. 7 201 of 275
Regulatory Authority
8 Environmental Health:
• One routine inspection in a 12-month period. Must be scheduled with the operators at a time convenient to them. Additional scheduled inspections in response to a complaint or an emergency • Exempt from placarding/grading system
• Permit to be renewed annually
Partner Agencies (Code Enforcement, City, Police and Fire, etc.):
• Signage, Noise, Nuisances (excessive crowding, traffic, parking issues, garbage overflow, etc.)
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AB 178 MEHKO Assistance Grant
• Sonoma County received $138,015.04 in Grant Funds for FY 2023/2024 and 2024/2025 to assist with costs associated with development of a MEHKO program, including program development, public outreach, offsetting permit fees, and enforcement. This grant funding does not require the implementation of a program.
• According to the grant letters of intent the following jurisdictional information is available:
– 14 jurisdictions have opted into the MEHKO program (Riverside, Santa Barbara, San Diego, Solano, San Mateo, San Benito, Santa Clara, Alameda, Amador, Imperial, Sierra, Monterey, Lake and the City of Berkeley).
– 17 jurisdictions are currently considering a MEHKO program (City of Vernon, Mariposa, Inyo, Trinity, Tehama, Mendocino, Nevada, Marin, Santa Cruz, City of Long Beach, Contra Costa, Sonoma, Fresno, Los Angeles, Mono, Humboldt and El Dorado). 9 203 of 275
Previous City Outreach and Comments - 2021
• County received written comments from the following jurisdictions: Town of Windsor, City of Rohnert Park, City of Cotati, City of Sebastopol, City of Santa Rosa, City of Petaluma. • Cities were generally supportive of the program’s goals, but positions on whether the County should opt in were mixed.
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Policy Options/Considerations
• Sonoma County Health Services was directed by the Board to return in September of 2024 with a draft MEHKO ordinance.
• Health Services will bring a proposal to opt into the MEHKO statute via ordinance. MEKHOs would be permitted in any residence but would not be permitted in areas of the applicable city or county where they are prohibited by General Plan.
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Next Steps
1. Let the County know if your city supports or opposes the proposal
2. Reach out to Department with Health Services with any questions or concerns 12 206 of 275
13 Sonoma County
Department of Health Services
Tina Rivera, (707) 565-7901
Director, Department of Health Services
[email protected]
Christine Sosko, (707) 565-6521
Director of Environmental Health
[email protected]
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Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: APPROVAL OF AGREEMENT FOR BUDGET WORKSHOP
FACILITATION
Date: August 13, 2024
Written by: Damien O'Bid, City Manager
Recommendation
It is recommended that the City Council approve by motion an agreement for facilitation of a budget workshop and authorize the City Manager to execute said agreement.
Background
During the budget workshops for the FY 24-25 budget, the City Council indicated that they were interested in exploring a 2 year budget, beginning with the FY 25-26 budget cycle. The timing would allow any new City Council members to participate in the 2 year budget process at the beginning of their terms.
The City Council also indicated that given the longer time horizon for the budget, it would be important to have a robust conversation about priorities upfront before moving into the more detailed strategic planning and budget workshops.
Analysis/Discussion
Given the well-received team building workshop conducted by Baker-Tilly (formerly Management Partners), staff began exploring options for a facilitated workshop format in preparation of the 2-year budget. Ultimately, staff developed the attached proposed scope of work in collaboration with staff from Baker Tilly.
While not specifically cited in the attached scope of work, it would be beneficial to ensure that questions around housing priorities be part of the interviews and workshop discussion, as well as a bigger picture discussion around mission and vision that will feed into the more operational goals and objectives. Staff confirmed that these could be included within the existing scope and 208 of 275
fee.
Financial Considerations
The proposed work would be performed for $25,000, which is included in the adopted FY 24-25 budget. No additional appropriations are requested.
Environmental Issues
The proposed budget engagement process will not have any effect on the enviroment. 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 14.03.021 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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Client Name
September 29, 2022
1 May 28, 2024
Damien O'Bid
City Manager
City of Cotati
201 W. Sierra Avenue
Cotati, CA 94931
Delivered electronically
Dear Mr. O’Bid:
Thank you for discussing the City of Cotati’s current budget process and your desire to add a workshop with Al Zelinka and Michelle New as you transition to a two-year budget cycle. We have prepared this proposal to facilitate a Council governance and priority-setting workshop in early 2025.
We know there is great value to a Council and City Manager when there is clear direction and alignment about priorities and expectations. Convening in a workshop setting is an opportunity for the Council and City Manager to discuss important issues and initiatives and reach consensus about top priorities for the City Manager and staff to focus time and attention on in the coming years. This will enable the Council and staff to focus the City’s limited resources (both time and money) to make meaningful progress on a few important projects and initiatives. There are many assignments that compete for staff time and other resources, and it is essential to establish priorities.
Setting priorities is difficult but necessary and requires choices to be made. Our facilitation team will lead a discussion with Council members about identifying priorities and the importance of making choices. We will utilize vision boards to visualize the various projects and initiatives under consideration, making it easier for Council members to see the potential impact and benefits of each option. They will then go through a narrowing process to establish several Council priorities, using the visualized projects on the vision boards to guide their decisions and ensure a clear, shared understanding of the priorities being set.
This workshop will be planned using a collaborative approach between our team, you, and your staff to ensure it is productive and meets the objectives of the Mayor and Council. To optimize Council participants’ time during the session, we are proposing careful advance planning. This includes meeting with you to discuss the workshop and your desired outcomes, conducting interviews with the Mayor and each Council member, preparing an agenda and other materials, and coordinating workshop logistics with your staff. Following the session, we will prepare a report that documents the direction provided by the Council as a body.
The plan of work anticipated for the engagement is described below. It will be conducted in person in a half-day session. All preparation will be done remotely.
Proposed plan of work
The following describes the plan of work anticipated for the engagement.
Activity 1 – Gather background information and conduct interviews We will start by having a conversation with you to discuss the work plan and schedule. We will then conduct remote interviews with each Council member. We will ask questions such as:
• What are the key accomplishments of the City over the past year? • What are the key challenges facing the City in the coming year? Baker Tilly US, LLP
2570 W El Camino Real
Suite 640
Mountain View, CA 94040
+1 (949) 222 2999
bakertilly.com
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2 • What goals and objectives would you like to see discussed at the workshop? • What are your top three priorities for the City in the next year? • What do you see as impediments to accomplishing Council priorities? • What will help the upcoming Council priority setting workshop be successful? What could get in the way?
• What is their role in ensuring effective governance?
• What other issues would you like to discuss at the workshop? We will ask each Council member to consider their vision of the projects that they would like to see accomplished within the next two years and bring pictures to help illustrate their ideas. These visual aids will not only provide clarity but also help in fostering a shared understanding among all members of the Council, ensuring that we can collaboratively prioritize and strategize the most impactful initiatives.
The results of our interviews will be summarized for discussion during the workshop.
Activity 2 – Design and prepare for priority-setting workshop We will prepare a draft agenda and identify materials that will be helpful during workshop discussions. We will then review the draft agenda with you and finalize it, along with other workshop materials. Based on the information provided by Council members, we will create vision boards to visually represent their ideas and priorities. We will also prepare a PowerPoint presentation to aid in the workshop process, incorporating elements from the vision boards to enhance engagement and clarity. Participants will include Council members and the management team.
Activity 3 – Facilitate priority-setting workshop
Our team will facilitate the workshop with the Mayor, Council members and you. We suggest three to four hours be devoted to this session to provide sufficient time for discussion and consensus. The session will be facilitated in such a way to enable all members of Council to equally participate and engage in a collaborative conversation, with the goal of reaching consensus direction.
In addition to facilitating discussions, we will prepare vision boards in advance based on the information provided by Council members. These vision boards will visually represent their ideas, priorities and preferred projects, enhancing the workshop's interactive nature and fostering creativity in decisionmaking.
We will begin by reviewing the Council’s feedback, including their perceptions of the City’s key accomplishments, challenges and preferred priorities. Using the information provided by staff, we will review projects, initiatives, and priority areas that are already being implemented or addressed.
We will then facilitate a discussion of the Council’s desired priority projects, with the intention of identifying specific projects, programs or initiatives that fit within the consensus priorities. To aid this process, we will use the vision boards, enhancing the workshop's interactive nature and fostering creativity in decision-making. It is likely that the outcome of the interviews will be many proposed priorities, and there may not be a clear consensus around a reasonable number (four to five). If that is the case, we will use a process (such as dot voting) to reduce the number of priorities to a reasonable number.
When we facilitate these types of priority-setting workshops, the City Manager actively participates. This is essential so that the result is a realistic and achievable set of established priorities. The discussion needs to be collaborative.
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3 The workshop will result in a consensus by the Mayor and Council on the priorities for the coming year.
We will also facilitate a discussion about how the Council and staff will work together to stay on course with the consensus priorities throughout the year.
After the session, we will prepare a report summarizing the results, including the established priorities and follow-up steps to be taken, integrating insights from the prepared vision boards to provide a comprehensive overview of the workshop outcomes.
About Baker Tilly
Celebrating more than 90 years serving our valued clients As a future-looking firm, we celebrate more than 90 years in the marketplace by honoring our roots and continuing to shape our future. We embrace the fact that local governments can’t stand still — and we won’t stand still. As we help our clients identify new needs and opportunities, we innovate and change to work better.
Effective on or around June 1, 2024, all consulting and tax engagements will be performed by Baker Tilly Advisory Group, LP. All assurance engagements will continue to be performed by Baker Tilly US, LLP.
Delivering specialized expertise to our public sector clients State and local government is a complex, unique environment shaped by fiscal, regulatory and operational considerations not found in other industries. We recognize this complexity, and we are eager to serve as a truly valued advisor to the public sector. Nationwide, our state and local government practice has served nearly 4,000 state and local governmental entities, including municipalities, special districts, counties, public utilities, school districts and transit.
SUPPORTING STATE AND LOCAL GOVERNMENTS WITH SPECIALIZED EXPERTISE The City of Cotati will benefit from the insight Baker Tilly has gained from serving thousands of public sector clients across the United States.
Comprehensive services for local governments
Your team is ready to help you find solutions to overcome the obstacles that stand between you and your goals. We provide a full range of service offerings for state and local governments, including those listed below.
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4 FULL RANGE OF SERVICE OFFERINGS FOR LOCAL GOVERNMENTS Accounting services and assurance Housing and economic development Capital planning Human capital services
Cybersecurity consulting Management services
Classification and compensation study Organizational assessment Efficiency studies Organizational development
Executive coaching Process improvement
Executive performance assessment Rate and user fee studies Executive recruitment Risk advisory and internal audit
Federal funding advisory Service sharing and service consolidation Financial planning, budgeting and analysis Strategic planning
Aligning key engagement team members with your goals
We believe in strong personal relationships, and this means a personal interest in the City of Cotati from some of our most experienced team members. Engagement team members are introduced below.
ENGAGEMENT TEAM FOR THE CITY OF COTATI
Al Zelinka – Director
Role: Project director and facilitator
Al brings a wealth of experience in both local government leadership and consulting to his work with Baker Tilly’s public-sector advisory team. He served most recently as city manager for the California cities of Huntington Beach and Riverside. Key accomplishments in those roles include overhauling outdated administrative policies and procedures, improving financial health, developing public infrastructure, advancing strategic planning and succession planning, advancing policies on equity and homelessness, and promoting community engagement. Al also served as community development director for the cities of Riverside and Fullerton, creating more efficient and effective processes and improving operations.
Michelle New – Manager, Consulting
Role: Relationship manager and facilitator
Michelle assists public sector clients with strategic plans, city council workshops, organization assessments and comparison analysis studies. She spent 15 years with the City of Santa Maria, where she worked first as a management analyst in the City Manager’s Office and then as the human resources manager, responsible for oversight of all aspects of the human resources function. During her tenure, Michelle developed an award-winning succession planning program, overhauled multiple paper processes, actively participated in employee negotiations, coordinated the city’s performance, disciplinary and investigative issues and was involved in the citywide budget. Michelle served as a Central Coast regional co-chair of the Municipal Management Association of Southern California (MMASC) and is the founding member of the region’s annual Women in Leadership event. Michelle is also a graduate of Leadership Santa Maria and served on its board for three years including one year as vice chair. 213 of 275
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5 References
We encourage you to connect with the clients below to learn more about the value of their relationship with Baker Tilly. Each client will offer a different perspective as you consider your own needs.
CITY OF SACRAMENTO, CALIFORNIA
Name Howard Chan Title City Manager
Phone +1 (916) 808-7488 Email [email protected] Description Baker Tilly was engaged to conduct a workshop to establish City Council priorities for the City Manager’s attention. Through individual interviews with the mayor and each member of City Council, we distilled the seven core goal areas of the City Council. In collaboration with the executive team, we then identified major ongoing projects (strategies) that aligned with the goal areas for which each of the members of City Council would vote on their top priorities. City Council members engaged in in-depth discussions about the challenges faced by city staff, participated in priority-setting exercises, and collaborated on developing a focused action plan to better align council goals with staff capacity and resources.
The workshop resulted in a clear report reaffirming the four top priorities set by the Council and set the stage for the City Manager to lead a productive offsite meeting with the executive team to develop practical work plans in line with the established priorities.
This approach reflects the collaborative spirit of the Council and lays a solid foundation for effective governance.
TOWN OF WINDSOR, CALIFORNIA
Name Travis Hopkins Title Assistant City Manager
Phone +1 (714) 475 4112 Email [email protected]
Description Baker Tilly assisted the City of Huntington Beach with the development of a four-year strategic plan and implementation action plan. Baker Tilly conducted interviews with each Council Member, Charter officers and City Manager to identify top priorities that became the eight goals at the center of the 2023-27 Strategic Plan. With guidance provided by Baker Tilly, City staff prepared an environmental scan to identify factors important to consider during the strategic planning process (i.e., demographics, economic trends, funding, and key changes in recent years). Baker Tilly also led a focus group with the department heads to identify the City’s strengths and challenges from an operational perspective. A gap analysis was also completed. Baker Tilly conducted a strategic plan workshop with City Council, received public comments, confirmed the eight goals, and prioritized the strategies identified by the department heads. Ongoing collaboration between Baker Tilly and Huntington Beach staff resulted in City staff identifying key steps required to complete each strategy as incorporated into an implementation action plan, City staff’s roadmap to carry out the policy direction embodied in the strategic plan.
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6 TOWN OF WINDSOR, CALIFORNIA
Name Jon Davis Title Town Manager
Phone +1 (707) 838 5335 Email [email protected]
Description In this engagement, Baker Tilly facilitated a half-day governance workshop with the Town Council to review and discuss governance best practices, Council norms, and approaches to working together collaboratively for the benefit of Town residents. In advance of the workshop, the facilitator conducted confidential interviews with Council members, prepared handouts and a slide deck to guide the workshop and coordinated with the Town Manager and staff to ensure a productive meeting. Town Council members engaged in rich discussion about what is working well and what needs to improve and spent time getting to know each other better and strengthening teamwork and cohesion.
Professional fee
The total cost of this project is $25,000, which includes all fees and expenses. The ultimate test of a quality project is that the client is pleased with the results, and we are committed to achieving that goal.
Conclusion
The City of Cotati will continue to be a valued client of Baker Tilly, and I will be personally involved in all aspects of our relationship, from planning through completion. Thank you for the opportunity to make tangible contributions to your success. Our team is excited to maintain your trust, and we look forward to discussing your questions and feedback.
Sincerely,
Carol Jacobs, Managing Director
Baker Tilly US, LLP
+1 (949) 809 5588 | [email protected]
Accepted for the City of Cotati by:
Name: _____________________________________
Title: _____________________________________
Date: _____________________________________
Baker Tilly US, LLP is currently undergoing a restructuring of its organization which is anticipated to occur on or around June 1, 2024. Following the closing of such restructuring, all consulting and tax engagements will be performed by Baker Tilly Advisory Group, LP. All assurance engagements will continue to be performed by Baker Tilly US, LLP.
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. © 2024 Baker Tilly US, LLP.
Baker Tilly US, LLP, trading as Baker Tilly, is an independent member of Baker Tilly International. Baker Tilly International Limited is an English company. Baker Tilly International provides no professional services to clients. Each member firm is a separate and independent legal entity, and each 215 of 275 The City of Cotati
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7 describes itself as such. Baker Tilly US, LLP is not Baker Tilly International’s agent and does not have the authority to bind Baker Tilly International or act on Baker Tilly International’s behalf. None of Baker Tilly International, Baker Tilly US, LLP nor any of the other member firms of Baker Tilly International has any liability for each other’s acts or omissions. The name Baker Tilly and its associated logo is used under license from Baker Tilly International Limited.
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Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: DISCUSS COTATI CULTURAL EVENT GRANT PROGRAM
Date: August 13, 2024
Written by: Ashley Wilson, Recreation Manager
Recommendation
It is recommended that the City Council review and discuss the proposed Cotati Cultural Event Small Grant Program and provide direction to staff, if any.
Background
At the November 11, 2022 City Council Meeting, the City Council approved a list of measures and projects created by the Equity Ad Hoc Committee, with a goal of improving equity in the City. One of the measures directed staff to create a small grant program to bring more multicultural community events to Cotati.
Outside of the Council’s equity goals, the City of Cotati also has a long history of approving fee and staff time waivers for events in La Plaza Park, no-cost license agreements (Lions Club, Rancho Coati Fire Station, Historical Society, and Chamber of Commerce), as well as supporting the Chamber of Commerce with direct grants.
The City also has an old Donation Policy (1990-01), which is attached for reference.
Analysis/Discussion
The Cotati Cultural Event Grant Program is proposed to be held on an annual cycle, with applications due by all interested parties in January, reviewed in February, and announced in March of each year. Applications will open for the following year’s grant cycle in April. Given that this is a pilot year, applicants would have a shorter application period for this first year, if approved.
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Applications will be reviewed, evaluated, and ranked by an internal staff committee. The committee will recommend projects to the City Council, who will make the final decisions on which grants will be awarded.
The program is proposed to be open to new and existing events, but each event can only be awarded once. Existing events could include Oktoberfest, Accordion Festival, Shop and Stroll, Music Fest and the Farmers Market. The priority is to provide support for the first year of an event, with the hope that they will be successful and return in the future. However, given that several of the current annual community events are hosted by non-profit groups and are multicultural, it is recommended that they are also eligible to apply for the grant.
Applicants may apply for multiple events per year but only one event per applicant can be awarded per cycle. They can reapply during the following cycle for any events not awarded.
The rubric to measure grant proposals for new or ongoing multicultural events would evaluate if the proposals are promoting events that reflect the diversity of our community. A draft of the scoring rubric is shown below. If the City Council has input/suggestions on the criterion categories, staff will incorporate those into a final scoring rubric brought back to the City Council for approval.
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This grant program will not take the place or change the current fee waiver options in the Park Permit and Special Event Policy. The current fee waiver options allow annual events to request a full rental fee waiver during the first year of their event and a 50% fee waiver during the second year of their event, with the hopes that the event will be established enough to come back for a third year with fully assessed fees. In addition, IRS recognized non-profit groups and government organizations may request a 50% fee waiver for permit fees in any year of their event, given that the event is free to the public to attend. The Council did make an exception to this process last year for the Cotati Accordion Festival. If an application for the small grant program is not awarded, they are still permitted to apply for a fee waiver through the park permitting process. In addition to these fee waivers and the proposed small community grant, the City is also able to provide free refuse service for community events through the franchise agreement with Recology. At this time, Recology also provides up to three (3) porta-potties for community events.
City park fees are affordable and in staffs’ experience, have not typically been a barrier to events.
The time required to plan and organize an event is generally the primary barrier that prevents people/groups from hosting community events. However, the proposed grant program may entice individuals/groups to propose an event in Cotati. It also has the potential for event organizers to retain more profits/revenue from their events. Regardless, to ensure that the grant program meets the goals of the City Council, any proposed grant program should be a limited term pilot.
Further details of the grant program are provided in Exhibit A, attached to this report.
Staff will return at a future meeting with updates, including an application and evaluation form, and a new donation policy, incorporating City Council feedback. The old donation policy (1990- 01) will be repealed and replaced with a new policy accompanied by the grant program. 219 of 275
Once finalized, staff will promote the new grant program on the City’s website, social media accounts, downtown marquee, monthly newsletter, and through further outreach to known community groups.
Financial Considerations
The financial considerations for the Cotati Cultural Event Small Grant Program would be $10,000 annually. Funding would come from the City Council annual allotment through the City’s General Fund. The existing fee waiver program is not reflected in this expense account but is reflected in reduced revenue in the General Fund. No additional appropriation is required.
Environmental Issues
This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guideline section 15378.
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Exhibit A – Cotati Cultural Event Grant
What is the Cotati Cultural Event Grant? What is the purpose of the program? The Cotati Cultural Event Grant is the City of Cotati’s community grant program. Its purpose is to encourage organizations and groups to host new and multicultural events in Cotati that promote an equitable, compassionate, and healthy community, that honor diversity as a source of strength.
Funding comes from the City of Cotati’s General Fund and is non-guaranteed annually.
What will the grant fund?
The grant can be used to fund new or ongoing cultural community events in Cotati.
How much can we apply for?
Applicants can apply for up to $5000, which is the maximum grant award. Up to $10,000 in awards may be granted in each annual cycle of funding, dependent upon budget availability. The amount of the grant award will be determined by the amount available. Funding for the Cotati Cultural Event Grant is limited; not all applications will be awarded.
Who can apply?
Any local organization or non-profit or individuals or small groups who are partnering with an organization or non-profit with event experience is eligible to apply for the grant. Grants will not be awarded to groups who propose events that promote hate, discrimination of any kind, or political lobbying.
What is the grant cycle time frame?
Applications will open in April and close in January. All applications are reviewed in February and awards will be announced in March. Awards will be sent out in April, following the announcements, and completion of required paperwork.
How will grants be selected?
Applications will be reviewed, evaluated, and ranked by an internal staff committee. The committee will recommend projects to the City Council, who will make the final decisions on which grants will be awarded.
Can grants be awarded to the same applicant more than once? To provide a diverse use of funds, applicants can only receive one award per cycle. Groups may submit multiple applications per cycle, but only one per group may be awarded.
Can applicants apply for on-going funding?
No. Each event can be awarded one time. Applicants can apply for multiple events, but each event is only eligible for one award. Applicants who are not selected for an award may apply multiple times.
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When must the event take place?
Each award must be used by the end of the grant cycle each year, between April and March of each year.
What happens if an awardee cancels their event after receiving a grant? If a grant recipient does not follow through with the proposed event after being awarded, the awardee will be responsible for returning all grant funds to the City and may be ineligible to receive additional grant awards.
If awarded, will the City of Cotati waive permit and other fees associated with the event? Awarded applicants should include applicable City fees with their application. Waivers may be considered for City permits addressed in the application, to be approved by the City Council on a case-by-case basis.
How will awardees be notified?
Grant awardees will be notified via email, phone, or post when selected. The City will communicate with the primary contact listed on the application.
Applicants not selected to receive grant funds will be notified as well.
How will the grant funding be dispersed?
Checks will be mailed to the awardees at the address listed on the grant application. 222 of 275
Y:\POLICIES AND PROCEDURES SOPS
(CCLK)\CCPolicyCover.merge.docx
City Council Policy No. 1990-01
Policy for Allocating Funds for Community Promotion
Adopted August 28, 1990 Resolution No. 90-47
City of Cotati
City Council Policy No. 1990-01
Policy for Allocating Funds for Community Promotion
________________________________________________
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Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: QUARTERLY FINANCIAL UPDATE - UNAUDITED FISCAL
YEAR ENDING JUNE 30, 2024
Date: August 13, 2024
Written by: Angela Courter, Director of Administrative Services Recommendation
It is recommended that the City Council receive the presentation on the un-audited financial position for the City as of June 30, 2024, covering the Fiscal Year of 2023/24 and adopt by motion the proposed budget amendment.
Background
City staff are committed to continued financial updates to report on receipts of key revenues, management of expenditures, overall City cash position, summary of investment management, and a financial resilience evaluation.
Analysis/Discussion
General Fund:
Revenues:
Overall Revenues for the General Fund are $353,373 or 3.3% above the same period in Fiscal year 2022/23. This is on an adjusted basis which removes the one-time receipt of $2,375,000 funds for the sale of the St. Joseph's Park and Ride Lot. This one-time receipt of funds is restricted for use for the alternative park and ride replacement lots projects. These balances are based on known balances as of September 8, 2024, and as such exclude certain additional payments that are pending to the City. These additional payments will be properly accrued as adjustments for the annual audited financial statements.
The City of Cotati’s main revenue sources as a percent of total General Fund Sources are Sales Taxes at 26.6%, Voter Approved Local Revenue (Measure S) at 27.75%, Property Taxes at 17% then other Taxes, Charges for Services, Permits and Licenses for a combined 29.2%. 229 of 275
Significant changes to the total revenues for the General Fund were:
• Sales Tax revenues are approximately 1.5% or $92K less than last year’s cumulative year-end balance. We believe this is still a post pandemic correction and adjustment to both changes in post covid consumer demand with increased inflation and increased interest rates. This is expected to continue to remain constant for the fiscal year 2024/25. • Licenses Permits and Franchises are primarily reduced due to pending Q4 receipts or accrual adjusting entries for franchise agreements for both Cable TV and Gas. • Charges for Services decreased by 18.5% or $111K due to a combination of (1) reduced need of engineering plan checks for development projects, (2) number of encroachments permits primarily major encroachment permits, as well (3) reduced police charges for services under traffic and parking citations as they implement use of more warnings. • Other Revenues received to date increased almost 820% or by $250K primarily due to reimbursements for administrative costs related to grants and developer deposit accounts Expenditures:
City council adopted the amended fiscal year 2023/24 budget in June. After the adoption, two balances were excluded in error. First is the Transfers out of the General Fund for the Park-and Ride Project. As the one-time receipt and held escrow funds are included in the General Fund for accounting purposes, the funds must be transferred out of the general fund and then into the Capital Fund. This transfer does not have a cash effect on the general fund as the transfers only pertain to the balance held in the escrow account. Second the Recreation contract class and event expenditures budget totaling $40,000 was also removed in error and should be returned for proper accounting.
With these adjustments the overall General Fund expenditures increased from the previous year by approximately 1.1% or $130K. This change was due to increased Salaries & Benefits and Other Expenses, offset by decreases in transfers out.
By department, total dollar increases were noted in all departments except for the City Council. most of this increase is due to (1) the proportional share of allocated expenses for the additional discretionary payment (ADP) to CalPERS, (2) continued increasing insurance costs, (3) increased transfers for capital charges to the vehicle replacement fund, (4) negotiated MOU increases, and (5) increased utility charges for PG&E. Each department is anticipated to complete the fiscal year in line with the budget as proposed with the amendment.
Enterprise Funds:
The revenues for the Water Funds and Wastewater have continued to increase primarily related to the move to monthly billing, better matching the period of service with the revenues derived and expenditures incurred. Additional factors that increased revenues are the increases applied based on the adopted rate schedule and increased interest earnings on investments.
For Fiscal Year 2023/24, most of the expenses are in line with the budget at year-end. Increases in salaries and benefits were primarily due to the additional discretionary payment made to CalPERS. Overall expenses are expected to be in line with the budget at the end of the fiscal year.
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City-Wide Cash and Investments:
Cash and Investments remain stable at $18.9M, where funds are held in US Bank Trust laddered investments (41%), liquid pooled investment funds at California Asset Management Program (46%), Local Agency Investment Funds (LAIF) and Sonoma County Investment Pool (SCIP) both with less than 1%, then Cash held in Escrow Funds held for funding the park and ride project and other time deposits at 12%, and the remaining held in operating cash within the City’s Operating Checking account held at Exchange Bank (1%). The balances within the checking accounts are managed very closely to match availability of funding requirements while optimizing investments to earning more return.
Financial Considerations
There is no immediate fiscal impact based on the reporting presented. Staff are proposing a budgetary adjustment as follows for Fiscal Year 2023/24 for proper accounting of the intended expenditures for the year.
General Fund – Net change increase of expense $740,000
Expenditure Increases
101-00-80188-000000 – Transfers Out for Park-and-Ride $1,990,000 101-24-80187-CLSEXP – Contract Class $ 25,000
101-24-80187-EVENTS – Contract Events $ 15,000
Expenditure Decreases
101-00-80188-000000 – Transfers Out for Redwood Drive $1,290,000 Capital Projects – Net change decrease of revenue $1,290,000 Revenue and Expenditure Increase
605-00-67000-PARKNR – Transfer In for Park-and-Ride $1,990,000 605-00-91300-PARKNR – Capital Costs $1,990,000
Revenue Decrease
201-00-67000-PWRDCY – Transfers in for Redwood Drive $1,290,000 City Staff will continue to report to Council and the community quarterly and will bring forward the audited financial statements for the fiscal year.
Environmental Issues
This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guideline section 15378.
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UN-AUDITED
FISCAL YEAR END
BUDGET & ACTUALS REVIEW
Fiscal Year 2023/24
Un-Audited Year ending June 30, 2024
City of Cotati
FINANCIAL REPORTING
Citywide Overview
General Fund
Enterprise Funds
Cash and Investments Portfolio
CITYWIDE
CITYWIDE -
REVENUES &
EXPENSES
Fund Un-Audited
Actual
Annual
Budget**
%
Budget
Un-Audited
Actual
Annual
Budget**
%
Budget
General $ 11,216,926 $ 10,946,693 102.5% $ 12,107,318 $ 12,507,930 96.8% Wastewater 3,505,418 3,605,010 97.2% 3,947,726 4,245,963 93.0% Water 2,396,442 2,340,724 102.4% 2,128,615 2,220,062 95.9% Other Special Revenues * 1,019,435 1,092,224 93.3% 831,470 2,589,197 32.1% Capital Projects 6,373,182 7,622,901 83.6% 7,498,524 7,813,543 96.0% Internal Service 454,849 434,370 104.7% 197,190 448,420 44.0% Total For All Funds $ 24,966,252 $ 26,041,922 95.9% $ 26,710,843 $ 29,825,115 89.6% Revenues Expenses
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
General
Wastewater
Water
Other Special Revenues *
Capital Projects
Internal Service
Expenses Revenues
Revenues and Expenses On Target
•Wastewater – Pending Operating Transfer of
Funds from the operations fund to the capital
fund of $244K.
•Other Special Revenues – Due to Timing of
Receipts for Revenues and year end accrual
adjustments (exp. sales tax pass through from
the county).
•Capital Projects – Pending Transfers in Trueups as well as final year end grant billing Revenues are at 95.9% of Budget
•General Fund – Includes proposed
adjustments to budget for Transfers $700K and
Rec. $40K
•Capital Projects and Special Revenue Funds–
are subject to timing of the projects in place
and related activity incurred during the fiscal
year.
•Internal Service- Pending true-up of
compensated absences use of funds
Expenses are at 89.6% of Budget
GENERAL FUND
COMPARATIVE
REVENUES & EXPENDITURES
FY 2022/23 FY 2023/24 $ Variance % Variance FY 2023/24
Budget % Budget
Revenues $ 10,471,631 $ 10,780,536 $ 308,904 2.9% $ 10,701,973 100.7% Transfers In 391,922 436,390 44,469 11.3% 244,720 178.3% Total Revenus $ 10,863,553 $ 11,216,926 $ 353,373 3.3% $ 10,946,693 102.5% Expenditures $ 7,975,143 $ 8,829,037 853,894 10.7% $ 9,190,755 96.1% Transfers Out 4,002,213 3,278,281 (723,932) -18.1% 3,317,175 98.8% Total Expenditures $ 11,977,355 $ 12,107,318 $ 129,963 1.1% $ 12,507,930 96.8% Revenues Over (Under) Expenditures $ (1,113,802) $ (890,392) $ 129,963 $ (1,561,237) Un-Audited Actuals Comparison
(July 1 - June 30) Budget to Actual Comparison General Fund Revenues & Expenditures
DETAILED ADJUSTED REVENUES
(REMOVED ONE TIME RECEIPT FROM PY)
FY 2022/23 FY 2023/24*** $ Variance % Variance FY 2023/24 Budget % Budget
Property Tax $ 1,967,056 $ 2,083,756 $ 116,700 5.9% 2,060,765 101.1% Sales Tax 6,024,055 5,932,192 (91,863) -1.5% 5,990,807 99.0% Other Taxes 678,562 715,810 37,249 5.5% 740,715 96.6%
Licenses, Permits & Franchises 718,840 642,128 (76,712) -10.7% 652,079 98.5% Rent 102,863 141,301 38,437 37.4% 133,135 106.1%
Other Agencies 151,897 285,361 133,464 87.9% 237,415 120.2% Charges for Services 602,780 491,308 (111,471) -18.5% 459,417 106.9% Other Revenues 30,455 280,116 249,661 819.8% 223,965 125.1% Investment Earnings 187,238 199,829 12,591 6.7% 200,895 99.5% Contributions 7,886 8,734 848 10.8% 2,780 314.2%
Transfers In 391,922 436,390 44,469 11.3% 244,720 178.3% Total: $ 10,863,553 $ 11,216,926 $ 353,373 3.3% $ 10,946,693 102.5% General Fund Revenues &
Expenditures
Un-Audited Actuals Comparison
(July 1 - June 30) Budget to Actual Comparison
PROPORTION OF
GENERAL FUND REVENUES
Property Tax, $2,083,756
Sales Tax, $5,932,192
Other Taxes, $715,810
Licenses, Permits & Franchises, $642,128
Rent, $141301
Other Agencies, $285,361 Charges for Services, $491,308 Other Revnues, $280,116 Investment Earnings, $199,829
Transfers In, $436,390
DETAILED ADJUSTED EXPENDITURES
(INCLUDES PROPOSED BUDGET AMENDMENTS)
YTD FY
2023/24
FY 2023/24
Budget % Budget
City Council $ 133,600 $ 156,673 85.3%
City Manager 694,205 705,992 98.3%
Admin Services 480,392 485,031 99.0%
Community Development 983,813 1,051,153 93.6%
Public Works 1,423,236 1,510,111 94.2%
Police 4,668,616 4,824,814 96.8%
Recreation 445,175 456,981 97.4%
Transfers Out 3,278,281 3,317,175 98.8%
Total: $ 12,107,318 $ 12,507,930 96.8%
General Fund Expenditures by Department
Budget to Actual Comparison
General Fund Expenditures by Type YTD FY
2023/24
FY 2023/24
Budget % Budget
Salaries & Benefits $ 5,336,377 $ 5,159,228 103.4%
Contract Services $ 1,409,821 $ 1,641,155 85.9%
Legal and Insurance $ 674,254 $ 771,189 87.4%
Materials & Supplies $ 85,498 $ 106,815 80.0%
Utilities $ 362,570 $ 403,591 89.8%
Repairs & Maintenance $ 123,559 $ 298,495 41.4%
Other Expenses $ 836,957 $ 810,282 103.3%
Transfers Out $ 3,278,281 $ 3,317,175 98.8%
Total: $ 12,107,318 $ 12,507,930 96.8%
Budget to Actual Comparison
ENTERPRISE FUNDS
SUMMARY OF WATER AND
WASTEWATER FUNDS
ENTERPRISE FUNDS ANALYSIS
Revenues and Expenses On Target
•Wastewater fund is pending a transfer in
to the wastewater capital fund from the
operating fund.
Revenues are at 102% and 97% of Annual
Budget
• Capital Projects are subject to timing.
(Pending Same Transfer mentioned
above)
•Increased expenditures consistent with
general fund across salaries and benefits
and legal and insurance.
Expenses are at 96% and 93% of Annual Budget
Enterprise Funds FY 2022/23 FY 2023/24 $ Variance % Variance FY 2023/24 Budget % Budget
-
Water Operations & Capital
Revenues $ 2,149,043 $ 2,396,442 $ 247,399 11.5% $ 2,340,724 102.4% Expenses
Salaries & Benefits 766,739 691,898 (74,841) -9.8% 664,457 104.1% Contract Services 297,403 234,528 (62,876) -21.1% 250,015 93.8% Legal & Insurance 77,022 96,994 19,973 25.9% 95,460 101.6% Other Expenses 275,634 345,629 69,996 25.4% 344,735 100.3% Aquaduct Water 554,449 641,128 86,680 15.6% 620,524 103.3% Operating Expenses 1,971,247 2,010,178 38,931 2.0% 1,975,191 98.3% Capital Outlay 288,411 100,633 (187,778) 100.0% 116,000 86.8% Interfund Debt 19,524 17,805 (1,719) -8.8% 128,871 13.8% Total Expenses $ 2,279,181 $ 2,128,615 $ (150,566) -6.6% $ 2,220,062 95.9% Net Income $ (130,137) $ 267,827 $ 120,662
Wastewater
Operations & Capital $ 2,938,131 $ 3,387,452 449,322 15.3% $ 3,313,010 102.2% Interfund Debt 48,733 117,966 69,233 100.0% 292,000 40.4% Revenues $ 2,986,863 $ 3,505,418 $ 518,555 17.4% $ 3,605,010 97.2% Expenses
Salaries & Benefits 766,552 692,777 (73,774) -9.6% 645,535 107.3% Contract Services 81,068 80,325 (742) -0.9% 79,745 100.7% Legal & Insurance 71,317 94,029 22,712 31.8% 82,520 113.9% Other Expenses 125,138 195,692 70,554 56.4% 426,950 45.8% Wastewater Treatment 2,372,316 2,348,951 (23,365) -1.0% 2,348,964 100.0% Operating Expenses 3,416,391 3,411,775 (4,616) -0.1% 3,583,714 105.0% Capital Outlay 250,469 497,742 247,273 98.7% 585,340 85.0% Interfund Debt 32,276 38,210 5,935 18.4% 76,909 49.7%
Total Expenses $ 3,699,135 $ 3,947,726 $ 248,591 6.7% $ 4,245,963 93.0% Net Income $ (712,272) $ (442,308) $ (640,953)
Un-Audited Actuals Comparison
(July 1 - June 30) Budget to Actual Comparison
CASH &
INVESTMENTS
Active Investment
Management
One Year of Impacts
FY 2023/24
SUMMARY OF CASH
AND INVESTMENTS AT
JUNE 30, 2024
Name of Investment Maturity Date Yield
Balance at
06/30/2024
Local Agency Investment Funds - (LAIF)
LAIF - Pooled Investments - Net FMV N/A 4.51% $ 6,218
US Bank Investment Trust Various Laddered 4.28% $ 7,750,548 Cash and Time Deposits Including Escrow Accounts N/A 2.40% $ 2,167,611 California Asset Management Program (CAMP)
Pooled Investment Funds N/A 5.43% $ 8,724,821
Exchange Bank Operating & Payroll Accounts N/A N/A $ 249,458 Total Cash and Investments $ 18,898,656
FISCAL YEAR 2023/24
AS OF JUNE 30, 2024
• Total approximately $18.9M.
• In line with the City updated adopted
investment policy.
• Investments for quarter earned $219K in
returns
• Overall cash is enough to meet operational
needs for next 6 months in fiscal year
FISCAL RESILIENCE EVALUATION
F.
Total Revenues To
6/30/2024
Operating
Expenditures
6/30/2024
Revenues to
Expenses Goal
Operating Revenues to Operating Expenditures $ 3,505,418 $ 3,411,775 103% > 110% Prior Fiscal Year
Revenues
6/30/2023
Prior Fiscal Year
Expenditures
06/30/2023
Prior Year
Revenues to
Expenses
Prior Year Revenues to Operating Expenditures $ 2,986,863 $ 3,416,391 87% Note: This item is improving over prior year and aligned with the utility rate study. Revenues have improved in part due to the move to monthly billing which more closely ties to the cost of services rendered. This will continue to be monitored for increased risk.
E. Supporting Agency Change In Rates
1-Jul-24 Goal
Budgeted Rate Agency Rate Difference < 2%
Sonoma County Water Agency (65% of supply) 6.00% 9.98% 3.9800% The indicators below are excerpts from the full evaluation. All indicators are green except for the two below which are continued known items for the water and sewer fund. The staff are moving forward with a rate study refresh for both funds and will report back to council during future quarterly evaluations.
CONCLUSION
Fiscal Year was primarily on
track with Budget with
increases in both overall
Revenues and Expenditures
compared Prior Year.
Proposed final budget
amendment in general fund
and capital projects. Requests
for Adjustments outlined in
staff report.
City staff will continue to
update the Council with
quarterly financial reports as
well as the audited financial
reports for Fiscal Year 2023/24
City staff are committed to
exercising prudence and
integrity in the management
of public funds and provide
transparent accountability for
its use
Fiscal Year Financial Report
Un-Audited Fiscal Year July 1, 2023, to June 30, 2024
Administrative Services 8/7/24 Q4 2023/24
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Introduction This financial report provides an overview of where we are within the budget cycle, then a summary of the City’s financial position through the Fiscal Year (FY) 2023/24 (July 1, 2023, through June 30, 2024) for (1) Citywide Revenues and Expenses, (2) the General Fund, (3) Enterprise Funds, and (4) Summary of Cash and Investments. Notable cumulative year-end to year-end and preliminary amended budget to actual comparisons are included in this report.
The following factors should be taken into consideration when analyzing year-end data:
∗ Revenues reported herein are calculated based on actual receipts through June 30, 2023, but received through July 31, 2024. Some revenues for the Fiscal year are still being received and will be properly accrued for the audited financial statements. ∗ Construction projects, specifically street improvements, have a different project cycle which is offset from the Fiscal Year. As such, major projects are typically funded across two or more Fiscal Years.
Standard Budget Process Cycle - Where We Are Now & Next Steps:
Tentative Schedule for Financial Reporting and Budget Year 2023/24 Planning:
∗ September 2nd – Start of 2023/24 Fiscal Year end audit fieldwork. ∗ October 22nd – Present the Q1 2024/25 financial summary to Council. ∗ November 12th – Initiate scheduling for next Fiscal year budget planning meetings. ∗ November 12th – Present audited financial statements and community annual financial report to the Council for Fiscal Year 2023/24
February
Year-end & Financial
Performance Review
March
Year-end & Financial
Performance Review
Internal Budget Review,
Strategic/Long-Term and
Capital Planning
April - May
Draft Budget
Budget Workshops
June
Budget Adoption
NOW** July - December
Financial Evaluations
Budget Adjustments as
Approved by Council
November-December
City Manager and Admin.
Services Budget Planning
Meetings
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Citywide Revenues and Expenses
∗ Other Special Revenues consist of the following funds: Gas Tax, RMRA, Public Safety, K-9 Program, Traffic Mitigation, CDBG Grants, Inclusionary Housing, Linkage Affordable Housing, MTC Streets, Measure M Parks, PEG, In-Lieu Tree Fund, and Bed Tax.
** Includes the proposed budget adjustments for (1) the Park-n-Ride lot capital project including increased expenses for transfers out of the General Fund of $700,000, increased transfers in and related expenditures to the Capital Projects Fund of $1,982,588 and (2) $40,000 for recreation contract classes and event expenses.
City-wide Significant Variances
Fund type variances where revenues were less than 95 % or expenditures are greater than 95% of budget as of year-end were evaluated as follows:
• Capital Projects’ revenues are currently less than the budget due to the timing of the projects in place and pending transfers from other funds to cover expenditure as of the fiscal year end. • Other Special Revenues and Internal Services Funds had lower expenditures than budgeted primarily due to the pending year end closing entries and transfers of funds for capital projects and compensated absences as well as accounting for depreciation expense within the vehicle replacement fund.
Overall actual revenues and expenditures for all funds are anticipated to be aligned with the adopted budget, with the proposed adjustments, for the fiscal year ending June 30, 2024.
Fund Un-Audited
Actual
Annual
Budget**
%
Budget
Un-Audited
Actual
Annual
Budget**
%
Budget
General $ 11,217,761 $ 10,946,693 102.5% $ 12,107,318 $ 12,467,930 97.1% Wastewater 3,505,418 3,605,010 97.2% 3,947,726 4,245,963 93.0% Water 2,396,442 2,340,724 102.4% 2,128,615 2,220,062 95.9% Other Special Revenues * 1,019,435 1,092,224 93.3% 831,470 2,589,197 32.1% Capital Projects 6,373,182 7,622,901 83.6% 7,498,524 7,813,543 96.0% Internal Service 454,849 434,370 104.7% 197,190 448,420 44.0% Total For All Funds $ 24,967,087 $ 26,041,922 95.9% $ 26,710,843 $ 29,785,115 89.7% Revenues Expenses
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
General
Wastewater
Water
Other Special Revenues *
Capital Projects
Internal Service
Expenses Revenues
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General Fund: Operating Revenues
The following table includes cumulative revenue comparisons of Fiscal Year 2022/23 and Fiscal Year 2023/24, and revenue budget to actual comparison for Fiscal Year 2023/24.
General Fund operating current revenues are $2,021,627, or 15.3% below the same period in FY 2022/23. The most significant reason for these decreases was primarily due to the one-time General Fund receipt of restricted funds for the Park-n-Ride Replacement. For Fiscal Year 2022/23 the City completed the sale of the St. Josephs Park and Ride which created a one-time Other Revenue inflow of $2,375,000. For the sake of comparisons, the adjusted balance for General Fund Revenues is provided below.
Operating Revenues – Adjusted
For the adjusted revenues, overall, there is an increase of approximately 3.3% over the prior year representing an additional $353,373 towards operating income for the General Fund. Staff are aware of minor additional pending receipts that are still to be accrued for the final reporting of the fiscal year-end including franchise payments for gas and cable television. To properly depict the revenue for sales tax the City has included an estimated accrual of approximately $536K in Sales Tax receipts expected to be received by August 28, 2024.
FY 2022/23 FY 2023/24*** $ Variance % Variance FY 2023/24 Budget % Budget
Property Tax $ 1,967,056 $ 2,083,756 $ 116,700 5.9% 2,060,765 101.1% Sales Tax 6,024,055 5,932,192 (91,863) -1.5% 5,990,807 99.0% Other Taxes 678,562 715,810 37,249 5.5% 740,715 96.6%
Licenses, Permits & Franchises 718,840 642,128 (76,712) -10.7% 652,079 98.5% Rent 102,863 141,301 38,437 37.4% 133,135 106.1%
Other Agencies 151,897 285,361 133,464 87.9% 237,415 120.2% Charges for Services 602,780 491,308 (111,471) -18.5% 459,417 106.9% Other Revenues 2,405,455 280,116 (2,125,339) -88.4% 223,965 125.1% Investment Earnings 187,238 199,829 12,591 6.7% 200,895 99.5% Contributions 7,886 8,734 848 10.8% 2,780 314.2%
Transfers In 391,922 436,390 44,469 11.3% 244,720 178.3% Total: $ 13,238,553 $ 11,216,926 $ (2,021,627) -15.3% $ 10,946,693 102.5% Un-Audited Actuals Comparison
(July 1 - June 30) Budget to Actual Comparison General Fund Revenues & Expenditures
FY 2022/23 FY 2023/24*** $ Variance % Variance FY 2023/24 Budget % Budget
Property Tax $ 1,967,056 $ 2,083,756 $ 116,700 5.9% 2,060,765 101.1% Sales Tax 6,024,055 5,932,192 (91,863) -1.5% 5,990,807 99.0% Other Taxes 678,562 715,810 37,249 5.5% 740,715 96.6%
Licenses, Permits & Franchises 718,840 642,128 (76,712) -10.7% 652,079 98.5% Rent 102,863 141,301 38,437 37.4% 133,135 106.1%
Other Agencies 151,897 285,361 133,464 87.9% 237,415 120.2% Charges for Services 602,780 491,308 (111,471) -18.5% 459,417 106.9% Other Revenues 30,455 280,116 249,661 819.8% 223,965 125.1% Investment Earnings 187,238 199,829 12,591 6.7% 200,895 99.5% Contributions 7,886 8,734 848 10.8% 2,780 314.2%
Transfers In 391,922 436,390 44,469 11.3% 244,720 178.3% Total: $ 10,863,553 $ 11,216,926 $ 353,373 3.3% $ 10,946,693 102.5% General Fund Revenues &
Expenditures
Un-Audited Actuals Comparison
(July 1 - June 30) Budget to Actual Comparison
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The following is an explanation of the notable variances:
- Sales Tax revenues are approximately 1.5% or $92K less than last year’s cumulative year-end balance. The primary source of this decrease is reduced spending on Cotati fuel and service stations, general consumer goods, and business and industry. We believe this is still a post pandemic correction and adjustment to both changes in post covid consumer demand with increased inflation and increased interest rates.
- Licenses Permits and Franchises are primarily reduced due to pending Q4 receipts or accrual adjusting entries for franchise agreements for both Cable TV and Gas. - Charges for Services decreased by 18.5% or $111K due to a combination of (1) reduced need of engineering plan checks for development projects, (2) number of encroachments permits primarily major encroachment permits, as well (3) reduced police charges for services under traffic and parking citations as they implement use of more warnings.
- Other Revenues received to date increased almost 820% or by $250K primarily due to reimbursements for administrative costs related to grants and developer deposit accounts.
General Fund: Operating Expenditures
The following table includes cumulative actual expenditure comparisons by department and again by expenditure type for Fiscal Year 2022/23 and Fiscal Year 2023/24 and an expenditure budget to actual comparison for Fiscal Year 2023/24. This comparison incorporates the proposed adjustments to the Fiscal Year 2023/24 budget to increase the transfers out for the Park-and-Ride project as well as increase the expenditures for Recreation contract class and event expense as it was removed in error during the budget process.
Expenditures by Type – Adjusted
General Fund Expenditures by Type FY 2022/23 FY 2023/24 $ Variance % Variance FY 2023/24 Budget % Budget
Salaries & Benefits $ 4,964,375 $ 5,336,377 $ 372,002 7.5% $ 5,159,228 103.4% Contract Services 1,358,546 1,409,821 51,275 3.8% 1,641,155 85.9% Legal and Insurance 577,017 674,254 97,237 16.9% 771,189 87.4% Materials & Supplies 101,585 85,498 (16,087) -15.8% 106,815 80.0% Utilities 335,068 362,570 27,503 8.2% 403,591 89.8%
Repairs & Maintenance 113,920 123,559 9,639 8.5% 298,495 41.4% Other Expenses 524,632 836,957 312,325 59.5% 810,282 103.3% Transfers Out 4,002,213 3,278,281 (723,932) -18.1% 3,317,175 98.8% Total: $ 11,977,355 $ 12,107,318 $ 129,963 1.1% $ 12,507,930 96.8% Un-Audited Actuals Comparison
(July 1 - June 30) Budget to Actual Comparison
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Expenditures by Department – Adjusted
Evaluating the expenditures on an adjusted basis, overall spending by General Fund Departments is consistent with the prior year with total dollar increases noted in all departments except for the City Council which was reduced due to a one-time contract service of $15K in the prior year 2022/23. Costs for all other departments were primarily driven by the following:
- Salaries & Benefits have increased over the last year primarily due to the proportional share of allocated expenses for the additional discretionary payment (ADP) to CalPERS, as well as negotiated MOU increases, increased overtime costs related to shift coverage with increased training and turnover, as well as payout transfers to the compensated absences fund. - Legal and Insurance has increased due to continued insurance costs that are being seen across the county which also change the City’s general liability, and workers comp. insurance premiums. The City uses California Intergovernmental Risk Authority as a risk management insurance pool with other agencies. Overall costs are expected to continue to increase and have been accounted for within the budget and discussed during the budget study sessions for the previous two years. - Contract Services had a minimal increase of 3.8% over the prior year primarily related to increased CPI across multi-year agreements as well as the one-time contract for professional recruiting services for the new Chief of Police.
- Utilities have increased primarily due to increased rates for electric charges from PG&E as well as some increased water consumption with establishment of new landscaping in the parks along with increased rates.
- Other Expenses increases in capital charges as other charges related to allocated charges for the vehicle replacement fund an increase of $275K. Other increases included costs for meeting and training as and recruiting which increased $22K and allow expense which increased $13K. Permit expense was previously a pass-through charge but is now a direct charge to the City and to be covered by the adopted set fees.
Reviewing the costs comparison to budget for the General Fund, by department and by type, most expenditures are aligned with expectations. The two types of expenditures which exceeded the budget were the Salaries & Benefits and Other Expenses. The reason for the increased expenses is outlined above.
General Fund Expenditures by
Department FY 2022/23 FY 2023/24 $ Variance % Variance FY 2023/24 Budget % Budget City Council $ 141,150 $ 133,600 $ (7,550) -5.3% $ 156,673 85.3% City Manager 689,672 694,205 4,534 0.7% 705,992 98.3%
Admin Services 421,651 480,392 58,740 13.9% 485,031 99.0% Community Development 921,758 983,813 62,055 6.7% 1,051,153 93.6% Public Works 1,309,049 1,423,236 114,187 8.7% 1,510,111 94.2% Police 4,078,078 4,668,616 590,538 14.5% 4,824,814 96.8% Recreation 413,784 445,175 31,391 7.6% 456,981 97.4%
Transfers Out 4,002,213 3,278,281 (723,932) -18.1% 3,317,175 98.8% Total: $ 11,977,355 $ 12,107,318 $ 129,963 1.1% $ 12,507,930 96.8% Un-Audited Actuals Comparison
(July 1 - June 30) Budget to Actual Comparison
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Enterprise Funds: Operating and Capital Revenues and Expenses The following table includes cumulative revenue and expenses comparisons of Fiscal Year 2022/23 and Fiscal Year 2023/24, and a revenue budget to actual comparison for Fiscal Year 2023/24 for the Enterprise Funds.
The Water and Wastewater Fund revenues are made up of charges for services, connection fees other revenues, and development fees. The revenues for the Water Funds have increased in the current year to increase in consumption and rates as well as increased investment earnings. Investment earnings have increased by approximately $60K or more than 155% over the previous year. This increase is related to the City’s movement to active investment management as well as increased rates of investment. This is consistent with the Wastewater fund which also has an increase in revenue due to increased consumption and rates as well as increased investment earnings of $26K or 120% over the prior year.
For Fiscal Year 2023/24, most of the expenses are in line with the budget at year-end. Significant differences between fiscal years are primarily related to Salaries and Benefits, Legal and Insurance, and charges from outside agencies for the Aqueduct Water purchases. During fiscal year 2022/23 the City completed the sewer line replacement along E. Cotati Ave and in fiscal year 2023/24 we also invested in the sewer line replacement along Cypress Ave. in advance of the street paving improvements.
Enterprise Funds FY 2022/23 FY 2023/24 $ Variance % Variance FY 2023/24 Budget % Budget
-
Water Operations & Capital
Revenues $ 2,149,043 $ 2,396,442 $ 247,399 11.5% $ 2,340,724 102.4% Expenses
Salaries & Benefits 766,739 691,898 (74,841) -9.8% 664,457 104.1% Contract Services 297,403 234,528 (62,876) -21.1% 250,015 93.8% Legal & Insurance 77,022 96,994 19,973 25.9% 95,460 101.6% Other Expenses 275,634 345,629 69,996 25.4% 344,735 100.3% Aquaduct Water 554,449 641,128 86,680 15.6% 620,524 103.3% Operating Expenses 1,971,247 2,010,178 38,931 2.0% 1,975,191 98.3% Capital Outlay 288,411 100,633 (187,778) 100.0% 116,000 86.8% Interfund Debt 19,524 17,805 (1,719) -8.8% 128,871 13.8% Total Expenses $ 2,279,181 $ 2,128,615 $ (150,566) -6.6% $ 2,220,062 95.9% Net Income $ (130,137) $ 267,827 $ 120,662
Wastewater
Operations & Capital $ 2,938,131 $ 3,387,452 449,322 15.3% $ 3,313,010 102.2% Interfund Debt 48,733 117,966 69,233 100.0% 292,000 40.4% Revenues $ 2,986,863 $ 3,505,418 $ 518,555 17.4% $ 3,605,010 97.2% Expenses
Salaries & Benefits 766,552 692,777 (73,774) -9.6% 645,535 107.3% Contract Services 81,068 80,325 (742) -0.9% 79,745 100.7% Legal & Insurance 71,317 94,029 22,712 31.8% 82,520 113.9% Other Expenses 125,138 195,692 70,554 56.4% 426,950 45.8% Wastewater Treatment 2,372,316 2,348,951 (23,365) -1.0% 2,348,964 100.0% Operating Expenses 3,416,391 3,411,775 (4,616) -0.1% 3,583,714 105.0% Capital Outlay 250,469 497,742 247,273 98.7% 585,340 85.0% Interfund Debt 32,276 38,210 5,935 18.4% 76,909 49.7%
Total Expenses $ 3,699,135 $ 3,947,726 $ 248,591 6.7% $ 4,245,963 93.0% Net Income $ (712,272) $ (442,308) $ (640,953)
Un-Audited Actuals Comparison
(July 1 - June 30) Budget to Actual Comparison
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Cash and Investments
The tables below show the cash and investments held by the City as of June 30, 2024. The current cash and investment balances are in line with the City adopted investment policy and as budgeted are enough to meet the City’s expenditure requirements for the next six months. 255 of 275
Cash and Investment Detail by Composition
Conclusion
Except for identified variances, expenditures and revenues are mostly in line with budget. Continued budgetary strategic planning for future years along with pension planning strategies will continue to improve the City’s position into the future. Staff will provide the Council and community financial reporting for the Fiscal Year 2023/24 annual audited financial statements as well as Fiscal Year 2024/25 quarterly budget to actual reports.
Name of Investment Maturity Date Yield
Balance at
06/30/2024
Local Agency Investment Funds - (LAIF)
LAIF - Pooled Investments - Net FMV N/A 4.51% $ 6,218
US Bank Investment Trust Various Laddered 4.28% $ 7,750,548 Cash and Time Deposits Including Escrow Accounts N/A 2.40% $ 2,167,611 California Asset Management Program (CAMP)
Pooled Investment Funds N/A 5.43% $ 8,724,821
Exchange Bank Operating & Payroll Accounts N/A N/A $ 249,458 Total Cash and Investments $ 18,898,656
FISCAL YEAR 2023/24
AS OF JUNE 30, 2024
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City of Cotati
Summary of Fiscal Resilience Enterprise Fund Factors
As of:
General Fund:
Cash*
Budget Operating
Expenses Cash Coverage Goal
A. Cash Coverage Ratio = $ 5,197,399 $ 9,170,755 56.67% > 25% Cash* Current Liabilities** Quick Ratio Goal
B. Liquidity Ratio = $ 5,197,399 $ 389,506 13.34 > 2.00 Twelve Month
Rolling Revenues To
6/30/2024
Twelve Month
Rolling Budget
Revenues
Revenues to
Budget Goal
C.1 Rolling Twelve Months Revenue to Budget = $ 11,216,926 $ 10,946,693 2% > - 10% Fiscal Year Total
Revenues To
6/30/2024
Prior Fiscal Year
Revenues *
6/30/2023
Revenues to Prior
Year
C.2 Current Fiscal Year Revenue to Prior Fiscal Year = $ 11,216,926 $ 10,863,553 3% D. Increase in Expenditures
Fiscal Year
Operating
Expenditures
6/30/2024
Budget Expenditures
(12 Months)
Expenditures to
Budget Goal
Operating Expenditures Compared to Budget $ 8,829,037 $ 9,190,755 -4% < 10% Fiscal Year
Operating
Expenditures
6/30/2024
Prior Fiscal Year
Expenditures
06/30/2023
Expenditures to
Prior Year
Operating Expenditures Compared to Prior Year $ 8,829,037 $ 7,975,143 11% E. Significant Revenue Sources Changes
Current Fiscal Year
6/30/2024
Prior Fiscal Year
6/30/2023 % Change Goal
Bradley Burns $ 2,857,805 $ 2,916,524 -2.0% > - 10%
Measure S $ 3,070,593 $ 3,100,971 -1.0%
Combined Sales Tax $ 5,928,398 $ 6,017,495 -1.5%
Property Tax $ 2,083,756 $ 1,967,056 5.9%
Current Fiscal Year
6/30/2024
Budget
(12 Months) % Change Goal
Bradley Burns* $ 2,857,805 $ 2,871,000 -0.5% > - 10%
Measure S* $ 3,070,593 $ 3,115,000 -1.4%
Combined Sales Tax* $ 5,928,398 $ 5,986,000 -1.0%
Property Tax $ 2,083,756 $ 2,060,765 1.1%
Sunday, June 30, 2024
* - Sales Tax - 11 of the 12 monthly payments have been received to date as they are received two months after the collection period they represent. An estimated payment was included within the analysis above and will be accrued for the fiscal year end. 257 of 275
City of Cotati
Summary of Fiscal Resilience Enterprise Fund Factors
As of:
General Fund:
Sunday, June 30, 2024
F. Community Event Identification: None Noted
Fiscal Year Total
Revenues To
6/30/2024
Fiscal Year
Operating
Expenditures
6/30/2024
Current Year
Revenues to
Expenses Goal
G. Current Fiscal Year Revenues to Operating Expenditures $ 11,216,926 $ 8,829,037 127% > 110% Prior Fiscal Year
Revenues
6/30/2023
Prior Fiscal Year
Expenditures
06/30/2023
Prior Year
Revenues to
Expenses
Prior year Revenues to Operating Expenditures $ 10,863,553 $ 7,975,143 136% Ref:
* Cash incudes the pooled cash attributable to the evaluated fund which consists of all liquid available cash and investments held including CD's and Treasury notes. ** Current Liabilities are the total of all liabilities for the evaluated fund, as of the reporting date, that are due and payable within one year.
Due to timing of major revenue sources, mentioned in D above, it is consistent that the coverage for revenues would be lower through this period to date. This will continue to be monitored for risk.
Though no indicator was noted, this will continue to be monitored. 258 of 275
City of Cotati
Summary of Fiscal Resilience Enterprise Fund Factors
As of:
Water Enterprise Fund
Cash*
Budget Operating
Expenses Cash Coverage Goal
A. Cash Coverage Ratio = $ 3,922,197 $ 2,010,178 195.12% > 33% Cash* Current Liabilities** Quick Ratio Goal
B. Liquidity Ratio: = $ 3,922,197 $ 84,420 46.46 > 2.0
Twelve Month
Rolling Revenues To
6/30/2024
Twelve Month
Rolling Budget
Revenues Revenues to Budget Goal
C.1 Rolling Twelve Months Revenue to Budget = $ 2,396,442 $ 2,340,724 2% > - 10% Fiscal Year Total
Revenues To
6/30/2024
Prior Fiscal Year
Revenues
6/30/2023
Revenues to Prior
Year
C.2 Current Fiscal Year Revenue to Prior Fiscal Year = $ 2,396,442 $ 2,149,043 12% D. Increase in Expenditures Fiscal Year
Operating
Expenditures
6/30/2024
Budget
Expenditures
(12 Months)
Expenditures to
Budget Goal
Operating Expenditures Compared to Budget $ 2,010,178 $ 1,975,191 2% < 10% Fiscal Year
Operating
Expenditures
6/30/2024
Prior Fiscal Year
Expenditures
06/30/2023
Expenditures to
Prior Year
Operating Expenditures Compared to Prior Year $ 2,010,178 $ 1,971,247 2% E. Supporting Agency Change In Rates
1-Jul-24 Goal
Budgeted Rate Agency Rate Difference < 2%
Sonoma County Water Agency (65% of supply) 6.00% 9.98% 3.9800% F.
Fiscal Year Total
Revenues To
6/30/2024
Fiscal Year
Operating
Expenditures
6/30/2024
Revenues to
Expenses Goal
Operating Revenues to Operating Expenditures $ 2,396,442 $ 2,010,178 119% > 110% Prior Fiscal Year
Revenues
6/30/2023
Prior Fiscal Year
Expenditures
06/30/2023
Prior Year Revenues
to Expenses
Prior Year Revenues to Operating Expenditures $ 2,149,043 $ 1,971,247 109% Sunday, June 30, 2024
* Cash incudes the pooled cash attributable to the evaluated fund which consists of all liquid available cash and investments held including CD's and Treasury notes. ** Current Liabilities are the total of all liabilities for the evaluated fund, as of the reporting date, that are due and payable within one year. 259 of 275 City of Cotati
Summary of Fiscal Resilience General Fund Factors
As of:
Sewer Enterprise Funds
Cash*
Budget Operating
Expenses Cash Coverage Goal
A. Cash Coverage Ratio = $ 3,228,970 $ 3,583,714 90.10% > 33% B. Cash* Current Liabilities** Quick Ratio Goal
Liquidity Ratio: = $ 3,228,970 $ 48,608 66.43 > 2.0
C.1 Twelve Month
Rolling Revenues To
6/30/2024
Twelve Month
Rolling Budget
Revenues Revenues to Budget Goal
Rolling Twelve Months Revenue to Budget = $ 3,505,418 $ 3,605,010 -3% > - 10% C.2 Fiscal Year Total
Revenues To
6/30/2024
Prior Fiscal Year
Revenues
6/30/2023
Revenues to Prior
Year
Current Fiscal Year Revenue to Prior Fiscal Year = $ 3,505,418 $ 2,986,863 17% D. Increase in Expenditures Fiscal Year
Operating
Expenditures
6/30/2024
Budget
Expenditures
(12 Months)
Expenditures to
Budget Goal
Operating Expenditures Compared to Budget $ 3,411,775 $ 3,583,714 -5% < 10% Fiscal Year
Operating
Expenditures
6/30/2024
Prior Fiscal Year
Expenditures
06/30/2023
Expenditures to
Prior Year
Operating Expenditures Compared to Prior Year $ 3,411,775 $ 3,416,391 0% E. Supporting Agency Change In Rates
1-Jul-24 Goal
Budgeted Rate Agency Rate Difference < 2%
Santa Rosa Wastewater Treatment 9.00% 6.38% -2.6200%
F.
Total Revenues To
6/30/2024
Operating
Expenditures
6/30/2024
Revenues to
Expenses Goal
Operating Revenues to Operating Expenditures $ 3,505,418 $ 3,411,775 103% > 110% Prior Fiscal Year
Revenues
6/30/2023
Prior Fiscal Year
Expenditures
06/30/2023
Prior Year Revenues
to Expenses
Prior Year Revenues to Operating Expenditures $ 2,986,863 $ 3,416,391 87% Note:
Sunday, June 30, 2024
* Cash incudes the pooled cash attributable to the evaluated fund which consists of all liquid available cash and investments held including CD's and Treasury notes. ** Current Liabilities are the total of all liabilities for the evaluated fund, as of the reporting date, that are due and payable within one year.
This item is improving over prior year and aligned with the utility rate study. Revenues have improved in part due to the move to monthly billing which more closely ties to the cost of services rendered. This will continue to be monitored for increased risk. 260 of 275
FINANCE DEPARTMENT
DATE: July 16, 2024
TO: Honorable Mayor and City Council
VIA: Damien O’Bid, City Manager
FROM: Angela Courter, Administrator Services Director
SUBJECT: INVESTMENT REPORT FOR THE QUARTER ENDED
JUNE 30, 2024
Attached for your information is the quarterly report of investments as of June 30, 2024.
The total cash and investment portfolio book value (cost) held by the City as of June 30, 2024 was $18,898,657 and total cash and investments held by trustees was $745,227.
The cash and investments held by the City include the following components:
Managed Investment Portfolio ($7,750,548), State of CA Local Agency Investment Fund ($6,218), California Asset Management Program (CAMP) Pooled Investment Fund ($8,724,821), Cash/Time Deposits ($2,346,220), and accrued interest on investments ($70,849). (Earned interest is the interest earned on investments over a specific time period, accrued interest is the interest that an investment has earned, but hasn’t yet been received, and paid interest is the interest that has already been received as payment).
Cash and investments held by the City and the trustees continue to be invested in accordance with the Government Code and the Council Investment Policy as adopted on May 9, 2023.
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Council Information
FY 2023-24 4th Quarter Investment Report
June 30, 2024
During the quarter, one Certificate of Deposit matured in the amount of $150,000.
No new investments were purchased.
Two-year Treasuries yielding 4.59% at the beginning of the quarter ended higher at the end of the quarter at 4.71%, which was an increase of 12 basis points for the quarter.
As of June 30, 2024, the Weighted Yield to Maturity on the Managed Investment Portfolio was 4.55%.
At the end of this quarter, the Weighted Average Maturity of the Managed Investment Portfolio was 1.58 years.
The Federal Open Market Committee (FOMC) meets approximately every six weeks and determines the level of the Federal Funds Rate. At the June 12th meeting, the FOMC voted to maintain the Federal Funds Rate target range at its current level of 5.25-5.50%.
Summary from the June 12th meeting:
“Recent indicators suggest that economic activity has continued to expand at a solid pace. Job gains have remained strong, and the unemployment rate has remained low. Inflation has eased over the past year but remains elevated. In recent months, there has been modest further progress toward the Committee's 2 percent inflation objective.
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee judges that the risks to achieving its employment and inflation goals have moved toward better balance over the past year. The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks.
In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.
In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to returning inflation to its 2 percent objective. 262 of 275
Council Information
FY 2023-24 4th Quarter Investment Report
June 30, 2024
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.”
Finance staff hired Optimized Investment Partners in May 2023 to help improve the investment returns for the city and to ensure compliance with California Government Code by ensuring safety of principal and sufficient liquidity for operations. Ongoing portfolio management activity will continue to be performed in partnership with Optimized Investment Partners, the City Manager, and the Administrator Services Director.
Considering the projected timing of cash receipts and disbursements and the structure of the Pooled Investment Portfolio, the City will be able to comfortably meet overall cash flow needs over the next six months.
If you have any questions, please feel free to contact me at 707-665-4236. 263 of 275
Par Value (1) Market Value (2) Book Value (3)
Cash & Investments Held by District
Investment Portfolio
Managed Investments
U.S. Bank Custodial Cash Account $ 34,625 $ 34,625 $ 34,625 0.18% U.S. Treasury Bill/ Note 1,438,000 1,423,443 1,433,225 7.61% Federal Agency Bond 3,150,000 3,095,412 3,087,699 16.40% Certificate of Deposit 3,195,000 3,186,775 3,195,000 16.97% Managed Investments Subtotal $ 7,817,625 $ 7,740,254 $ 7,750,548 41.17% Pooled Investments
State of CA Local Agency Investment Fund $ 6,218 $ 6,218 $ 6,218 0.03% CAMP 8,724,821 8,724,821 8,724,821 46.34%
Pooled Investments Subtotal $ 8,731,039 $ 8,731,039 $ 8,731,039 46.37% Investment Portfolio Subtotal $ 16,548,664 $ 16,471,294 $ 16,481,588 87.54% Cash/Time Deposits $ 2,346,220 $ 2,346,220 $ 2,346,220 12.46% Funds Available for Investment $ 18,894,884 $ 18,817,514 $ 18,827,808 100.00% Accrued Interest $ 70,849 $ 70,849 $ 70,849
Total Cash & Investments Held by the City $ 18,965,733 $ 18,888,363 $ 18,898,657 Cash & Investments Held by Trustee
Investment Agreements $ - $ - $ -
Cash with Fiscal Agents 301,247 301,247 301,247
Restricted Cash 443,980 443,980 443,980
U.S. Government
Total Cash & Investments Held by Trustee $ 745,227 $ 745,227 $ 745,227 Total Portfolio 19,710,961 $ 19,633,590 $ 19,643,884 $
Notes:
1. Par value is the principal amount of the investment on maturity.
2. Market values contained herein are received from sources we believe are reliable; however, we do not guarantee their accuracy.
3. Book value is par value of the security plus or minus any premium or discount on the security.
City of Cotati
Summary of Cash and Investments for the Quarter Ended June 30, 2024 Portfolio Assets % of Portfolio
264 of 275
*Note: Cash/time deposits not included in WYTM
Excludes Pooled Investments and U.S. Bank Custodial Cash Account Under 1 Year
Maturity Jun 2024 Mar 2024 Change 1 - 2 Years
3-Month 5.48% 5.46% 0.02% 2 - 3 Years
1-Year 5.09% 5.03% 0.06% 3 - 4 Years
2-Year 4.71% 4.59% 0.12% 4 - 5 Years
3-Year 4.52% 4.40% 0.12% Total
5-Year 4.33% 4.21% 0.12%
10-Year 4.36% 4.20% 0.16%
Apr
May
Jun 2024 Jun 2023 Jun 2022 Jun 2021 Jun
4.71% 4.87% 2.92% 0.25% Total for Quarter
Note: Interest Earnings figures do not include capital gains or losses $ 219,806 102,475 $ 117,331 $
$ 68,822 68,822 $
$ 74,607 92,216 $ (17,609) $
2-Year U.S. Treasury Yield - Historical Data 10,259 $ 76,377 $ 66,118 $ $ 0% -
$ 100% 7,783,000
Interest Earnings FY2023 FY2024 Change
$ 23% 1,784,000
$ 23% 1,783,000
$ 13% 1,048,000
U.S. Treasury Yields - Quarterly Comparison $ 41% 3,168,000 Book Value (COST) 16,481,588 $
Market Value 16,471,294 $
Weighted Average Maturity (in years) 1.58
Weighted Yield to Maturity* 4.55%
Portfolio Maturity PAR Maturing % Maturing
City of Cotati
Investment Report for the Quarter Ended June 30, 2024
Investment Portfolio Summary and Key Statistics
Portfolio Key Statistics
PAR Value 16,548,664 $
46.37%
16.94%
16.45%
12.47%
7.56%
0.18% 0.03% CAMP 46.37%
CERTIFICATE OF DEPOSIT 16.94%
FEDERAL AGENCY BOND 16.45%
CASH/TIME DEPOSITS 12.47%
U.S. TREASURY BILL/NOTE 7.56%
INVESTMENT CASH ACCOUNT 0.18%
LOCAL AGENCY INVESTMENT FUND 0.03%
0%
10%
20%
30%
40%
50%
Under 1
Year
1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years
41%
23% 23%
13%
0%
Portfolio Maturity Distribution
265 of 275
Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: DISCUSSION AND DIRECTION ON POTENITAL LETTERS
OF OPPOSITION TO AB 2561 AND AB 2557
Date: August 13, 2024
Written by: Damien O'Bid, City Manager
Recommendation
It is recommended that the City Council adopt a motion authorizing the Mayor to sign letters of opposition to AB 2561 and AB 2557 and potentially discuss this position with state legislators.
Background
The City is a member of the League of California Cities (Cal Cities), which advocates for city interests at the State Legislature. At times, Cal Cities issues Action Alerts when Cal Cities has taken a position on pending legislation that is believed to significantly affect cities, either negatively or positively. Action Alerts are requests of all member cities to support Cal Cities efforts in Sacramento with letters of support or opposition.
On August 7, 2024, Cal Cities issued an Action Alert for two pieces of pending legislation, AB 2561 and AB 2557, described in more detail below.
Analysis/Discussion
Background on AB 2561
Sizable vacancy rates exist in the public sector — for both state and local employers. In fact, the vacancy rate for the state of California has consistently been above 10 percent statewide for the past 20 years.
Local government decision-makers and public agency department heads recognize the impact of long-term vacancy rates on both current employees and those who receive city services. Many specialty positions like planners are experiencing nationwide workforce shortages and a dwindling pipeline for new entrants, driven by both an expansion of services and an aging 266 of 275
workforce. To further complicate recruitment, local governments are competing with both the private sector and other government agencies. Local governments are implementing innovative ways to try to boost recruitment and incentivize retention, including sign-on bonuses and housing stipends.
What does AB 2561 specifically do?
Requires each public agency exceeding a vacancy rate of 15% for more than 180 days to:
• Meet and confer with the recognized employee organization within 21 days about strategies to fill the vacancies. Such requests are limited to once per calendar year for each bargaining unit.
• Hold a public hearing within 90 days about high vacancy rates, any obstacles in the hiring process, and the public agency’s strategies to fill vacancies. • Entitles the employee organization to make a presentation at the public hearing. • Specifies that the meet and confer obligation imposed by these provisions are in addition to the meet and confer responsibilities of existing law.
Talking Points:
• AB 2561 does not address the root causes of low labor force participation rates in California. Instead, the measure will create additional layers of bureaucracy that detract from meaningful efforts to recruit and retain the public sector workforce. • Local agencies are carrying out initiatives to expand pipeline programs, build pathways into public sector jobs, modernize the hiring process, and offer competitive compensation.
• If the true intent of AB 2561 is to provide a path for public agencies to reduce staff vacancies, diverting staff away from core service delivery and mandating they spend time producing reports on their vacancy rates will not achieve that goal. • We welcome a partnership on workforce strategies and believe there is a more productive and economical pathway than AB 2561. AB 2561 is the wrong approach.
A sample letter of opposition, provided by Cal Cities, is provided.
Background on AB 2557:
There are more than 4,800 local agencies in the state. Most of them rely — at least in part — on contractors for a variety of local programs and services. Given current public sector workforce shortages, it would be difficult to provide these services without their assistance.
What does AB 2557 specifically do?
The bill would require anyone who enters a special services contract for over $100,000 with a 267 of 275
city to perform functions that are currently — or were in the last five years — performed by city employees represented by an employee organization to follow extensive reporting requirements.
This is an expensive endeavor that would require considerable investment in IT infrastructure and staff for local agencies.
These onerous requirements mean that contractors will have to provide considerable information that may not be directly applicable to the work that they are contracted to do or may be duplicative of other mandated reporting requirements associated with their work.
Cities must also give reasonable notice to the affected workforce’s union, in writing, of its intent to modify or renew the contract at least 30 days before the contract’s modification or renewal.
There are several vague provisions in AB 2557 which will certainly lead to disputes and implementation delays. This includes an unclear definition of “reasonable” notification and “beginning a procurement process.”
Talking Points:
• AB 2557’s new requirements for local agencies may result in fewer nonprofit providers, community-based organizations, and other private service providers willing to engage with local agencies.
• This bill undermines the importance of a collaborative and productive working relationship between cities and private sector and non-profit partners. These partners are essential to meeting cities’ statutory obligations and effectively serving our residents. • AB 2557’s new online posting requirements will be an expensive endeavor that would require considerable investment in IT infrastructure and staff for local agencies. • The reporting requirements mean that employee data would be accessible to any member of the public. This could subject private sector employees to the same harassment sometimes endured by public employees, further discouraging contractors and nonprofits from engaging in these contracts.
• We also anticipate exacerbated caseloads and workloads for existing city staff, as well as increased costs and delays for local agencies. These delays are not compatible with contracts for urgent needs.
• The bill prevents flexibility for emergency services. Local agencies are first responders and need flexible and accessible contracting protocols with a clear understanding of the required services.
• The issues addressed by the bill are better addressed at the bargaining table where local conditions can be appropriately considered.
A sample opposition letter, provided by Cal Cities, is attached. 268 of 275
Financial Considerations
There are no financial impacts for issuing a position letter on the pending legislation. If the legislation were to become law, there would be an unquantified impact on City operations.
Environmental Issues
Issuing the proposed letters of opposition will have no impact 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 14.03.021 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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***CITY LETTERHEAD***
DATE
The Honorable Liz Ortega
1021 O Street, Room 5120
Sacramento, CA 95814
Re: AB 2557 (Ortega): Local Agencies: Contracts for Special Services and Temporary Help: Performance Reports (As amended 7/3/24)
OPPOSE
Dear Assembly Member Ortega,
The City/Town of __________ must respectfully oppose AB 2557, a bill related to contracting by local agencies. AB 2557 is overly burdensome and inflexible, which will likely result in worse outcomes for vulnerable communities and diminished local services for our residents.
Broad application has costly implications. The City/Town of __________ relies in part on contractors to provide a variety of programs and services. Given our current workforce shortages, it would be difficult to provide these services without their capable assistance. (Insert how your city currently uses contractors for services, if applicable.) With the additional requirements of AB 2557 for local agencies with represented workforces and their contractors, we can expect fewer nonprofit providers, communitybased organizations, and other private service providers willing to engage with local agencies. The requirements will also exacerbate already-demanding caseloads and workloads for our existing staff and increase city costs.
Making private employee data subject to the California Public Records Act deters effective partnerships with the private sector. This bill would require anyone who enters a special services contract over $100,000 in value with a city to perform functions that are currently, or were in the prior five years, performed by city employees represented by an employee organization to post the contract and any related documents, including any required performance reports on their website. This is an expensive endeavor that would require considerable investment in IT infrastructure and staff for our city.
Additionally, AB 2557 requires contractors to provide information about employees and retain records. This private employee data would be accessible to any member of the public. Public employee data subject to the CPRA has resulted in data mining for profit, as well as subjecting employees to harassment and threats.
Local agencies are already subject to statutory limitations on contracting. Cities are already subject to the statutory provisions of the Meyers-Milias-Brown Act and related state law provisions. Local agencies cannot contract out work currently performed by bargaining unit employees simply to save money and most contracting-out decisions are already subject to meet-and-confer requirements. All the issues the bill seeks to 270 of 275 address are better addressed at the bargaining table where local conditions can be appropriately considered.
Unclear terminology creates confusion, and invites disputes.
We remain concerned that the notification timeframes provided are impractical. While the bill includes the requirement for a “reasonable” notification to the employee representative, we are unclear as to what exactly this requirement means. Further, the emergency exemption provided in the bill appears to only apply to portions of the notice provisions. Local agencies are first responders and need flexible and accessible means for contracting with clear understanding of what is required prior to doing so.
AB 2557 represents a sweeping change to the fundamental work of local governments, but we are unaware of a specific problem that this measure would resolve or prevent.
The bill will not improve services, reduce costs, or protect employees.
For these reasons, the City/Town of _______ respectfully opposes AB 2557.
Sincerely,
NAME
TITLE
CITY/TOWN of ______________
Cc: The Honorable Senator Anna Caballero, Chair, Senate Appropriations Committee
YOUR Senator
Your Cal Cities Regional Public Affairs Manager (via email) League of California Cities, (via email: [email protected]) 271 of 275
***CITY LETTERHEAD***
DATE
The Honorable Senator Anna Caballero
Chair, Senate Appropriations Committee
1021 O Street, Room 7620
Sacramento, CA 95814
RE: AB 2561 (McKinnor) Local Public Employees: Vacant Positions.
Notice of OPPOSE (As Amended 07/03/2024)
Dear Senator Caballero,
The City/Town of __________ must respectfully oppose SB 2561 (McKinnor). This measure requires cities with bargaining unit vacancy rates exceeding 15% for more than 180 days to meet with the representative of the recognized employee organization within 21 days about strategies to fill vacancies. The bill requires the public agency to present this plan during a public hearing to the governing legislative body and to publish the plan on its internet website for public review for at least one year.
The City/Town of __________ recognizes the impact that long-term vacancy rates have, both on current employees and our residents who receive local services. Many specialty positions like (Insert positions that are often a challenge to staff in your city here) are experiencing nationwide workforce shortages and a dwindling pipeline for new entrants, driven by both an expansion of services and an aging workforce. To further complicate recruitment, local governments are competing with both the private sector and other government agencies.
Cities are implementing innovative ways to try to boost recruitment and incentivize retention. (CITE HOW YOUR CITY HAS IMPLEMENTED EFFORTS TO BOOST RECRUITMENT/RETENTION).
In The City/Town of __________ is committed to continuing the work happening now between all levels of government and employees to expand pipeline programs, build pathways into public sector jobs, modernize the hiring process, and offer competitive compensation. However, we cannot close the workforce shortages overnight; it will take investment from educational institutions, all levels of government, and the private sector to meet the workforce demands across the country.
We must use our limited human resources staff to hire employees during this economically challenging time rather than diverting resources to additional reports. (Insert the challenges of implementing the bill’s timelines, working with vague terms, and what the meet and confer requirements could mean for the city.) 272 of 275
It is important to note that the new meet and confer requirements are not merely procedural in nature to facilitate conversations on vacancy rates. The requirements could result in demands to reopen MOUs, and might even lead to arguments that this bill voids bargained-for no strike and “entire agreement” (i.e., “zipper”) clauses in existing MOUs, thereby exposing local agencies to impasse procedures, fact finding, and strikes during the MOU term. Certainly, there will be additional time and cost pressures for local agencies related to this requirement, potentially leading to adjudication before the Public Employment Relations Board (PERB).
Local bargaining units have the ability to address workforce concerns and develop hiring retention strategies at the barraging table within agreements and compensation studies. The City/Town of __________ welcomes partnering on workforce strategies and believes there is a more feasible solution than AB 2561. As currently drafted, AB 2561 is the wrong approach.
For those reasons The City/Town of __________ respectfully opposes AB 2561 (McKinnor).
Sincerely,
NAME
TITLE
CITY/TOWN of ______________
cc: The Honorable Tina McKinnor
Members, Senate Appropriations Committee
(Your Senator and Assembly Member)
(Your Cal Cities Regional Public Affairs Manager, via email) League of California Cities (via email: [email protected]) 273 of 275
Cotati City Council
Agenda Staff Report
Item type: INFORMATION RECEIVED AFTER THE AGENDA WAS POSTED To: City Council
Subject: INFORMATION RECEIVED AFTER THE AGENDA WAS POSTED Date: August 13, 2024
Written by: Kevin Patterson, Deputy City Clerk
Recommendation
Information or written comments pertaining to this meeting, and which was received after the agenda was posted, is attached below.
Pursuant to City Council Policy 2023-01: City Council Rules section IV A., written Communications, interested persons or their authorized representative may address the Council by written communication on any matters concerning the City’s business, or any matters over which the Council has control.
1. To be considered for inclusion in the agenda packet, such written communication shall be delivered to the Deputy City Clerk no later than 11:00 a.m. of the Wednesday the week preceding the regular Council meeting for which such written communication is intended.
2. If received after the above date and time, but no later than noon the day before the meeting, written communications received by the Deputy City Clerk shall be posted on the website by the end of that day and notification provided to the electronic Agenda mailing list by the end of the day. All written communications received by the Deputy City Clerk by 5 pm on the City Council meeting day shall be made available to the City Council and public at the City Council meeting.
City Council Policy 2023-01 is available at the online meeting portal at www.cotaticity.org or by request from the Deputy City Clerk at 707-665-3622 or [email protected]. 275 of 275