Agenda packet — Cotati City Council, December 10, 2024

AGENDA

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

FORMER COTATI COMMUNITY REDEVELOPMENT AGENCY
City Council Chamber, City Hall 201 W. Sierra Avenue
Tuesday, December 10, 2024
6:00 PM REGULAR MEETING
The Cotati City Council welcomes you to its meetings that are generally scheduled for the 2nd and 4th Tuesday of every month. Your interest and participation are encouraged and appreciated.

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

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

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

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

2. Cable T.V. Broadcast, local channel 28
Members of the public can participate in the meeting online by clicking the link below:
https://us02web.zoom.us/j/84142036535?pwd=5dZNzq0GDnUtIEu7UXnEcslNwgW5Uq.1 If you do not have the ability to join online, but would like to participate in the meeting, you can call into the meeting using your telephone, by dialing one of the following numbers and entering the meeting credentials:

Webinar ID: 841 4203 6535 Passcode: 298946
+1 (669) 900-6833 or +1 (346) 248-7799 or +1 (253) 215-8782 or +1 (301) 715-8592 or +1 (312) 626-6799 or +1 (929) 436-2866 Attendees may join the meeting any time after 5:45pm. Attendees will be muted until they are called upon for Public Comment. To make a public comment, use the “raise hand” icon on your smart device or desktop computer, or dial *9 if you are using just your telephone. Please listen carefully for the Mayor or City Clerk to address you by name (or phone number) and for the audible Zoom notification that you have been unmuted. Once you begin your public comment, your three minutes will begin.

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

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

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

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

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

Cotati City Council Packet December 10, 2024
• Audience members are advised to keep conversations to a minimum or conduct them outside the building. • Photographs or video recordings using tri-pods or other means that would be distracting are to be taken only from the designated media area. • The Presiding Officer shall request that the audience withhold expressions of support or opposition for speakers in the interest of time and to encourage the full expression of differing views. (City Council Policy 2023-01 III.B.1.) Public Comment (Action items): Public comment on any one agenda item where the City Council will be taking some action is limited to no more than three (3) minutes per person. Action items are typically designated on the agenda title.

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

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

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

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

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

1. CALL TO ORDER

2. ROLL CALL

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

4. PLEDGE OF ALLEGIANCE

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

RESOLUTIONS AND ORDINANCES INTRODUCED AND/OR ADOPTED UNDER THIS

AGENDA (ACTION)
A. COTATI CITY COUNCIL – REGULAR MEETING – NOV 26, 2024

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

B. Measure S supports police services, a variety of recreation programs for all ages, and the Cotati City Council Packet December 10, 2024
maintenance of our streets, parks, and public buildings. See details on the web at cotaticity.org C. Citizens interested in receiving City of Cotati community alerts via text or email are encouraged to enroll with CivicReady, by signing up on the City’s website, www.cotaticity.org, under the “How do I” link at the top of the homepage.

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

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

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

9. CONSENT CALENDAR (ACTION)

10. DIRECTION ON FUTURE AGENDA ITEMS

11. PUBLIC HEARINGS (ACTION)
A. INTRODUCTION OF AN ORDINANCE TO ESTABLISH A DEVELOPMENT IMPACT

FEE ON BEHALF OF THE RANCHO ADOBE FIRE PROTECTION DISTRICT It is recommended that the City Council introduce an ordinance authorizing a fire impact fee on behalf of the Rancho Adobe Fire District within the City limits of Cotati.

B. INTRODUCTION AND FIRST READING OF AN ORDINANCE TO AMEND SECTION

17.42.170 ACCESSORY DWELLING UNITS/JUNIOR ACCESSORY DWELLING

UNITS OF THE COTATI MUNICIPAL CODE
It is recommended that the City Council hold a public hearing and introduce an Ordinance amending Title 17 (Land Use) of the Cotati Municipal Code in accordance with State law by repealing and replacing Section 17.42.170 Accessory Dwelling Units/Junior Accessory Dwelling Units and amending Section 17.90.020 Definitions of Specialized Terms and Phrases.

12. REGULAR AGENDA (ACTION)
A. AUTHORIZATION OF A DISCRETIONARY PAYMENT TO CALPERS AND STATUS

OF CITY PENSION PLANS
It is recommended that the City Council receive a presentation, discuss options, and adopt a resolution authorizing an additional discretionary payment for amounts already included within the Fiscal Year 2024/25 budget.

Cotati City Council Packet December 10, 2024
B. REVIEW AND DISCUSSION OF DESIGN OPTIONS FOR A PROPOSED AFFORDABLE HOUSING PROJECT ON CITY-OWNED PROPERTY AT 120 E

COTATI AVENUE
It is recommended that the City Council receive a presentation from Freebird Development LLC, discuss design options for an affordable housing project on City-owned property at 120 East Cotati Avenue, and provide direction to City staff and the design team.

C. 2025 VERONDA-FALLETTI RANCH WORKPLANS AND LICENSE AGREEMENT

WITH PHOENIX FARM CONCEPTS
It is recommended that the City Council: 1. Approve by motion the 2025 work plans for the Veronda Falletti Ranch (Ranch), 2. Authorize the City Manager to execute a 3-year license agreement with Ferm Homestead to operate the livestock, horticulture, compost and other related programs, 3. Authorize the City Manager to amend the license agreement with Sandy Loam to synchronize the term dates, and 4. Authorize the City Manager to execute an agreement substantially in the form attached with Point Blue Conservation Science for the installation of pollinators and trees along the east and south perimeters of the Ranch.

D. RECEIVE AND FILE STATEMENT OF THE VOTES CAST AND DECLARATION OF

THE RESULTS OF THE CITY OF COTATI CONSOLIDATED GENERAL
MUNICIPAL ELECTION HELD ON NOVEMBER 5, 2024
It is recommended that the City Council: 1) Adopt a motion to receive and file the Sonoma County Clerk’s Statement of the Votes Cast; and 2) Adopt a resolution declaring the results of the Consolidated General
E. ADMINISTRATION OF OATH OF OFFICE TO NEWLY ELECTED

COUNCILMEMBERS
It is recommended that the City Clerk will administer the oath of office to the elected Councilmembers.

F. REORGANIZATION OF CITY COUNCIL FOR CALENDAR YEAR 2025 It is recommended that the City Council elect a Mayor and Vice Mayor from among its members, to be effective January through December 2025.

13. CITY MANAGER'S REPORT

14. CITY COUNCIL MEMBER REPORTS

15. PUBLIC COMMENT ON NON-ACTION AGENDA ITEMS

16. INFORMATION RECEIVED AFTER THE AGENDA WAS POSTED

17. ADJOURNMENT
Certification of Posting of the Notice: I declare under penalty of perjury that I am employed by the City of Cotati and that I posted this notice on the City’s website, bulletin boards of City Hall, Veterans’ Memorial Building and the SMART Train Depot, on or before December 6, 2024. /s/ Kevin Patterson, Deputy City Clerk

MINUTES

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

FORMER COTATI COMMUNITY REDEVELOPMENT AGENCY
City Council Chamber, City Hall 201 W. Sierra Avenue
Tuesday, November 26, 2024
6:00 PM REGULAR MEETING

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

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

4. PLEDGE OF ALLEGIANCE

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

RESOLUTIONS AND ORDINANCES INTRODUCED AND/OR ADOPTED UNDER THIS

AGENDA (ACTION)
A. COTATI CITY COUNCIL – REGULAR MEETING – NOV 12, 2024 No public comment.

RESULT: Approve [4 TO 0]
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Cotati City Council Minutes November 26, 2024
MOVER: Susan Harvey, Councilmember
SECONDER: Ben Ford, Vice Mayor
AYES: Sparks, Ford, Harvey, Lemus
NAYS: None
ABSENT: Rivers

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

7. APPROVAL OF FINAL AGENDA (ACTION)
Mayor Sparks announced that item 11A would be moved to directly before item 8. There being no objections, the item was moved.

No public comment.
11A. RECOGNITION OF WALGREENS AND GRAYSON CHU, RECIPENT OF THE

EMPLOYERS BEST PRACTICES AWARD AND EMPLOYEE INITIATIVE AWARD FOR

PEOPLE WITH DISABILITIES
Presentation by City Manager Damien O’Bid.

Councilmembers comment.

Public Comment:

Grayson Chu of Rohnert Park
Council authorized the Mayor to send a letter of congratulations to Grayson and Walgreens of Cotati. 6 of 293
Cotati City Council Minutes November 26, 2024

Public Comment:

Laurie-Ann Barbour of Cotati

9. CONSENT CALENDAR (ACTION)
Vice Mayor Ben Ford requested to pull item 9A from the consent calendar. Motion to approve the consent calendar included only item 9B. Item 9A was moved to just after item 10.

B. SECOND READING OF AN ORDINANCE AMENDING CHAPTER 17.31 AFFORDABLE HOUSING AND 17.32 DENSITY BONUSES OF THE COTATI

MUNICIPAL CODE TO IMPLEMENT CHANGES TO AFFORDABLE HOUSING

LAND USE AND POLICY AND TO CREATE THE COTATI DENSITY BONUS RESULT: Approve [4 TO 0]
MOVER: Susan Harvey, Councilmember
SECONDER: Sylvia Lemus, Councilmember
AYES: Sparks, Ford, Harvey, Lemus
NAYS: None
ABSENT: Rivers

10. DIRECTION OF FUTURE AGENDA ITEMS
None.
9A. APPROVAL OF A PROFESSIONAL SERVICE AGREEMENT WITH MOE

ENGINEERING INC FOR ENGINEERING DESIGN AND BIDDING ASSISTANCE SERVICES FOR THE CLASS 1 PATHWAYS MAINTENANCE PROJECT
Presentation by Director of Public Works/City Engineer Craig Scott.

Councilmembers comment.

Public Comment:

Beverly Paulson
Jenny Blaker of Cotati
Esther
Neil Hancock of Cotati
Marla Charbonneau of Cotati
Shelley Berman of Cotati
Council directed staff to ask the project designer to include options for both repairing the existing 7 of 293 Cotati City Council Minutes November 26, 2024
asphalt path, or replacing with a more natural surface. These will be bid as alternates and staff will present options for City Council project award.

RESULT: Approve [4 TO 0]
MOVER: Ben Ford, Vice Mayor
SECONDER: Sylvia Lemus, Councilmember
AYES: Sparks, Ford, Harvey, Lemus
NAYS: None
ABSENT: Rivers

11. REGULAR AGENDA (ACTION)
B. DISCUSSION OF ENHANCED INFRASTRUCTURE FINANCING DISTRICTS (EIFDS) Presentation by City Manager Damien O’Bid.

Councilmembers comment.

Public Comment:

Laurie Alderman of Cotati
Council directed staff to return to Strategic Planning in early 2025 with a proposal for an initial viability study on establishing Enhanced Infrastructure Financing Districts in the City.

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

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

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

15. INFORMATION RECEIVED AFTER THE AGENDA WAS POSTED

16. ADJOURNMENT
Mayor Sparks adjourned the meeting at 7:45pm.
/s/ Kevin Patterson, Deputy City Clerk
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Cotati City Council
Agenda Staff Report
Item type: PUBLIC HEARINGS (ACTION)
To: City Council
Subject: INTRODUCTION OF AN ORDINANCE TO ESTABLISH A

DEVELOPMENT IMPACT FEE ON BEHALF OF THE

RANCHO ADOBE FIRE PROTECTION DISTRICT
Date: December 10, 2024
Written by: Damien O'Bid, City Manager
Recommendation
It is recommended that the City Council introduce an ordinance authorizing a fire impact fee on behalf of the Rancho Adobe Fire District within the City limits of Cotati.

Background
The Rancho Adobe Fire District (RAFD) provides fire protection and prevention services to the City of Cotati, unincorporated areas of Sonoma County around the City, as well as Sonoma State University. Currently, RAFD does not have any impact fees to mitigate the impact of development and the increased demand for services it creates. To ensure appropriate mitigation of impacts, the RAFD Board of Directors directed their staff to develop a nexus study and appropriate mitigation impact fees.

On June 19, 2024, the RAFD Board of directors approved the nexus study and fees. However, RAFD does not have the legal authority to impose the fees and must rely on the land use authorities within its service area. Therefore, RAFD staff reached out to City and the County of Sonoma to request that both agencies consider adoption of their fee program within our respective jurisdictional limits.

Analysis/Discussion
The attached ordinance is intended to authorize the collection of fire impact fees. By default, the program would be administered such that RAFD would collect the fees, manage the fee fund, issue refunds as needed, etc. Similar to school impact fees, the City would require developers to provide proof of payment prior to issuing building permits. 9 of 293
As the program is technically a City impact fee program, an Administration Agreement is required and is a condition of the ordinance going into effect. The Administration Agreement would provide indemnification for the City and detail RAFD responsibilities for providing impact fee accounting for the public in accordance with the Mitigation Fee Act. If the City were to provide a more direct role in collecting, managing, reporting, etc., the Administration Agreement would memorialize that arrangement.

City staff have been in contact with staff from the County of Sonoma and they are currently scheduled to bring this ordinance to the Board of Supervisors in early January 2025.

Financial Considerations
This agenda item required City staff time and public noticing, anticipated to be less than $3,000.

If the City Council introduces and adopts this ordinance, there will be some minor on-going noticing requirements with the City‘s other impact fees. However, this is expected to be de minimus.

If the City takes a more direct role in the administration of the fire impact fee, recovering administrative costs would be included in an Administrative Agreement. In the event of litigation around the fire impact fee, the Administration Agreement would indemnify the City.

Environmental Issues
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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ORDINANCE NO.

AN ORDINANCE OF THE CITY OF COTATI COUNCIL ADDING CHAPTER 4.15 ”FIRE IMPACT FEES” TO THE COTATI MUNICIPAL CODE TO ESTABLISH A

DEVELOPMENT IMPACT FEE ON BEHALF OF THE RANCHO ADOBE FIRE

PROTECTION DISTRICT
WHEREAS, this Ordinance sets forth the requirements for establishing and administering a development impact fee program imposed by the City of Cotati (“City”) on behalf of the Rancho Adobe Fire Protection District (“District”); and WHEREAS, the District requests the establishment and administration of a development impact fee because the District lacks statutory authority to impose development impact mitigation fees independently, and the District has prepared all of the supporting documentation to support the findings required to establish the fee, collect the fee and comply with all necessary reporting and accounting procedures for the fee; and
WHEREAS, the District has prepared the required documentation to comply with the California Mitigation Fee Act (Government Code §§66000-66025); and WHEREAS, the purpose of the fees adopted by this Ordinance is to pay the costs of Public Facilities, including Fire Facilities, Equipment, and Apparatus, pursuant to the authority of Government Code Section 66001, Article XIII C, Section 1 of the California Constitution, and Article XI, Section 7 of the California Constitution by imposing development fees to fund the costs of certain facilities the need for which is generated by the type and level of the proposed development in accordance with District’s nexus study; and WHEREAS, the use to which the fees are to be put is to pay the costs of the Public Facilities, including Fire Facilities, Equipment, and Apparatus as identified in the District’s resolution and nexus study attached to this Ordinance; and WHEREAS, there is a reasonable relationship between the fees used and the types of development projects on which the fee is imposed for the reasons set forth in the District’s resolution and nexus study attached to this Ordinance; and WHEREAS, there is a reasonable relationship between the need for the Public Facilities, including Fire Facilities, Equipment, and Apparatus, and the development projects on which the fee is imposed for the reasons set forth in the District’s resolution and nexus study attached to this Ordinance; and
WHEREAS, without the adoption of this Ordinance and the construction of the Public Facilities and purchase of the Fire Equipment and Apparatus, there will be decreased levels of service and reduced safety, inadequate fire protection deteriorating to the point where District’ Public Facilities cannot be safely maintained to meet to meet the needs of the new population and new development; and
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WHEREAS, on June 19, 2024, pursuant to Government Code section 66001(a), the District Board of Directors considered its consultants’ nexus study to make the following findings:

1. Identified the purpose of the fee;

2. Identified the use to which the fee is to be put. If the use is financing public facilities, the District has identified those public facilities;

3. Determined how there is a reasonable relationship between the fee’s use and the type of development imposed; and

4. Determined how there is a reasonable relationship between the need for the public facility and the fee imposed; and
WHEREAS, the County of Sonoma is currently scheduled to consider adoption of the District’s mitigation fee program in January 2025 for unincorporated areas of the District.

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

SECTION 1: Recitals.

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

SECTION 2: Amendment to the Cotati Municipal Code.

Chapter 4.15 (Fire Impact Fees) is hereby added as follows:

4.15.010. Purpose.

This Ordinance sets forth the requirements for establishing and administering a development impact fee program imposed by the City of Cotati (“City”) on behalf of the Rancho Adobe Fire Protection District (“District”). The District requests the establishment and administration of a development impact fee because the District lacks statutory authority to impose development impact mitigation fees independently, and the District has prepared all of the supporting documentation to support the findings required to establish the fee, collect the fee and comply with all necessary reporting and accounting procedures for the fee. The District has prepared the required documentation to comply with the California Mitigation Fee Act (Government Code §§66000-66025).

4.15.020. Definitions.

For purposes of this Ordinance, the words shall have the meaning ascribed to them in this section.

A. “Accessory Dwelling Unit” means a dwelling unit, or granny flat, either a detached or attached dwelling unit, which provides complete, independent living facilities for one or 12 of 293
more persons with provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the primary residence.

B. “Apparatus” means and includes but is not limited to fire engines, brush engines, ambulances, utility vehicles, staff vehicles, water tenders, bulldozers, and rescue vehicles.

C. “Development” or “development project” means any project for new residential, commercial, or industrial construction in the service boundaries of the District which requires the issuance of a building permit.

D. “District” means the Rancho Adobe Fire Protection District, which is an independent District organized under the 1987 Fire Protection District Laws (Health and Safety Code §§13800 et seq.)
E. “Equipment” means and includes but is not limited to ladders, fittings, hoses, radios, cellular telephones, tools, breathing apparatus, hazardous material equipment, and medical and rescue equipment.

F. “Fire facilities” means public improvements, including buildings and structures, not limited to fire stations, administrative buildings, training buildings, land purchase, and related planning, engineering, and construction costs as identified by the District’s in their resolution and nexus study.

G. “Fire impact fee” or “fee” means a monetary exaction, other than a tax or a special assessment, that the City imposes in connection with the approval of a development project to defray all, or a portion of, the cost of fire facilities, apparatus, and equipment related to the development project on behalf of District.

H. “Industrial” means manufacturing construction.

I. “Mobile home” means a development area for residential occupancy in vehicles that require a permit to be moved on a highway, other than a motor vehicle designed or used for human habitation and for being drawn by another vehicle.

J. “Multi-family housing” means buildings or structures designed for two or more families for living or sleeping purposes and having kitchen and bath facilities for each family.

K. “Office” means general, professional, and medical office construction.

L. “Public facilities” means fire facilities, equipment, and apparatus.

M. “Retail/Commercial” means retail, commercial, educational, and hotel/motel construction.

N. “Single-family housing” means detached or attached one-family dwelling unit with an assessor’s parcel number for each dwelling unit.

4.15.030. Establishment of fee.

At the request of the District and in compliance with the Mitigation Fee Act (California Government Code §§66000-66025), the City Council hereby establishes a development impact fee on behalf of the District, applied upon the issuance of all building permits for new development within the service boundaries of the District and the incorporated limits of the City.

Fees: Residential Development Per Living Area Sq.Ft.

Single Family Housing $2.00
Multi-Family Housing $2.77
Mobile Home $1.57
Accessory Dwelling Unit NOTE 1
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Nonresidential Development Per Building Sq.Ft.

Retail / Commercial $2.51
Office $4.15
Industrial $1.75
NOTE 1: The fee for an accessory dwelling unit shall be imposed proportionately in relation to the square footage of the primary dwelling unit. Accessory dwelling units of less than 750 square feet of living area are exempt.

4.15.040. Administration Agreement.

A. The City may impose the fees on behalf of the District, and the District may collect the fees pursuant to a written administration agreement (Agreement) between the City and the District.

B. The Agreement shall clearly define the rights and duties of each party and shall provide for the District to defend, indemnify, and hold the City, its officers, agents, and employees harmless from and against any and all liability, loss, damage, claims, judgments, costs, staff time, losses, expenses and any other costs of defense arising out of, resulting from, or related to the creation, establishment, modification, and imposition of fees on behalf of District or any other obligation of District or City under the agreement impose the fees on behalf of District in compliance with the Mitigation Fee Act.

C. The District shall ensure that any fee collected on their behalf comply with the Mitigation Fee Act.

4.15.050. Payment of Fee.

A. Fees established pursuant to this Ordinance shall be paid by the developer or their agent at the time of the building permit issuance.

B. Fees established pursuant to this Ordinance shall be paid to the District and proof of payment provided to the City, unless otherwise provided for in an Administration Agreement.

C. Chargeable residential square footage shall include new habitable living space within the perimeter of the structure, not including any carport, walkway, garages, overhangs, patios, enclosed patios, detached accessory structure, or detached storage space.

Chargeable commercial or industrial structure square footage shall include new and covered enclosed space within the perimeter of the new structure, not including garage, parking structure, unenclosed walkways, or utility areas. Chargeable square footage shall be calculated in the standard practice of the City.

4.15.060. Automatic Inflationary Adjustments
Fees established pursuant to this Ordinance shall be adjusted automatically without any further action by the District Board of Directors or City Council on January 1 of every year by the net 14 of 293
percentage change during the preceding fiscal year in the Engineering News-Record Construction Cost Index (20-City Average), or its successor publication.

Inflationary adjustments pursuant to this Ordinance shall be performed by the District, unless otherwise provided for in an Administration Agreement.

4.15.070. Refunds of Fees Paid.

If the construction of a development project has not commenced before the expiration of the building permit that would have enabled the applicant to proceed with construction, then a fee payer shall be entitled to a refund, with interest, of the fees paid as a condition imposed pursuant to this Ordinance for the issuance of such permit. The fee payer must apply for such a refund within thirty calendar days of the expiration of the permit.

In the event any fee collected remains unexpended in the fund established pursuant to this Ordinance, the following findings shall be made for the fifth fiscal year following the first deposit into such account, and every five years thereafter, with respect to that portion of the fee remaining unexpended, whether committed or uncommitted; (1) identify the purpose to which the fee is to be put; (2) demonstrate a reasonable relationship between the fee and the purpose for which it was charged; (3) identify all sources and amounts of funding anticipated to complete financing of public facilities and (4) designate the approximate dates on which such funding is expected to be deposited into the fund. The unexpended portion of the fees and any interest accrued thereon, for which need cannot be demonstrated pursuant to this section, shall be refunded to the then-current record owner or owners of lots or units of the development project or projects on a prorated basis. The provisions of Government Code section 66001 may be amended from time to time and shall apply fully to the collection, accounting, and refund of any fees imposed pursuant to this Ordinance.

Refunds and associated reporting requirements pursuant to this Ordinance shall be performed by the District, unless otherwise provided for in an Administration Agreement.

4.15.080 Fee Credits
A fee credit shall be given for demolished existing square footage as part of a new development project.

Fee credits pursuant to this Ordinance shall be performed by the District, unless otherwise provided for in an Administration Agreement.

4.15.100. In-Lieu Fees
In a developer dedicates land, constructs Fire Facilities, or provides Fire Equipment or Apparatus for the District, the fire impact fees imposed on that development project shall be adjusted to reflect a credit for the cost of the dedicated land, Fire Facilities, Equipment, and Apparatus provided.
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Evalution and determination of in-lieu credits pursuant to this Ordinance shall be performed by the District, unless otherwise provided for in an Administration Agreement.

4.15.110. Exemptions.

The following shall be exempted from payment of the fee:

A. A structure owned by a governmental agency.

B. An Accessory Dwelling Unit that is less than 750 square feet.

4.15.120. Segregation of Fee.

A. A fee collected pursuant to this Ordinance, together with any interest, shall be maintained and accounted for in a separate fund to avoid commingling such funds with other revenues.

B. Establishment and maintenance of the aforementioned fund shall be performed by the District, unless otherwise provided for in an Administration Agreement.

C. In accordance with an Administrative Agreement, the City may withhold a reasonable percent of the total fee owed for each development project to recover the administrative costs associated with the implementation of this Ordinance.

4.15.130. Annual Report.

For all fees established pursuant to this Ordinance shall, within one hundred eighty (180) days after the last day of each fiscal year, be made available to the public as required by Government Code section 66006(b).

SECTION 3. Severability.

If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and every section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared unconstitutional or invalid.

SECTION 4. Effective Date.

This ordinance shall take effect upon City Council approval of an Administration Agreement or March 14, 2025, whichever is later and is at least sixty (60) days after its adoption, pursuant to the California Government Code.

SECTION 5: Publication.

The City Clerk shall cause this ordinance to be published and/or posted as required in Section 36933 of the California Government Code.
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IT IS HEREBY CERTIFIED that the foregoing ordinance was introduced at a regular meeting of the City Council of the City of Cotati held on December 10, 2024, by the following vote, to wit:

RESULT:

MOVER:

SECONDER:

AYES:

IT IS HEREBY CERTIFIED that the foregoing ordinance was duly adopted at a regular meeting of the City Council of the City of Cotati held on January 14, 2024, by the following vote, to wit:

RESULT:

MOVER:

SECONDER:

AYES:

Approved:___________________________
Mayor
Attest:______________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:
______________________________
City Attorney
This document is a true and correct copy of Ordinance Number ### and has been published or posted pursuant to law. California Government Code § 40806
______________________________
Kevin Patterson, Deputy City Clerk
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BLAIR AAS | SCI CONSULTING GROUP
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About Development Impact Fees
DIFs are only one-time proceeds to fund new development’s share of the cost of expansion of the infrastructure of a community Premise: Development should “pay its own way” or “growth should pay for growth”
Nollan decision – “essential nexus”
Dolan decision – “rough proportionality”
Mitigation Fee Act - AB1600 was enabling legislation
Established a uniform process for determining, adopting, imposing, collecting, accounting for and protesting “development impact fees”
Must be adopted by land use authority on behalf of special districts
MAY 2024 FIRE IMPACT FEE PROGRAM OVERVIEW 2
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Methodology and Approach
FIRE IMPACT FEE PROGRAM OVERVIEW 3
Fee Cost Components
Land, stations, and other buildings
Apparatus and other vehicles
Equipment
Fee Program Administration
Existing Facility Standard
Methodology
Existing Level of Service Standard
Systemwide
Open-Ended
Existing Development
Homes and Residents
Businesses and Employees
Service Call Data
Existing Fire System
MAY 2024
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Maximum Fire Impact Fee
MAY 2024 FIRE IMPACT FEE PROGRAM OVERVIEW 4
Average Maximum Fire
Impact per Dwelling Unit
Single-Family Home - $3,810
Multi-Family Unit - $3,047
Mobile Home - $2,198
Land Use Category Unit
Maximum Fire
Impact Fee
Single Family Housing BSQFT $2.00
Multi-Family Housing BSQFT $2.77
Mobile Home BSQFT $1.57
Assessory Dwelling Unit => 750 sq. ft. BSQFT $2.00
Assessory Dwelling Unit < 750 sq. ft.

Retail / Commercial BSQFT $2.51
Office BSQFT $4.15
Industrial BSQFT $1.75
- - - Exempt - - -
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Fire Impact Fee Comparison
MAY 2024 FIRE IMPACT FEE PROGRAM OVERVIEW 5
Sonoma
County FPD
(Effective
July 1, 2024)
Sonoma
Valley FPD
(Effective
July 1, 2024)
Rancho
Adobe FPD
(Proposed)
$1.84
$2.43
$1.35
$2.00
$3.38
$2.21
$2.00
$2.77
$1.57
Single-Family Housing
Multi-Family Housing
Mobile Home
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Uses of Fee Revenue

ALLOWABLE USES
◦ New (added) or expanded land and facilities costs (100%) ◦ Apparatus, vehicles, and equipment purchases that expand the system inventory (100%) ◦ Facility costs already incurred to provide growth-related capacity (100%) ◦ A portion of apparatus and vehicle replacement costs attributable to new development (10.6%) ◦ A portion of a renovation project that expands service capacity
◦ Collection, accounting, documentation, annual reporting requirements, five-year report requirements, periodic
nexus studies, and other costs reasonably related to
compliance with the Act.

PROHIBITED USES
◦ Existing deficiencies, such as improvements to existing facilities that do not expand service capacity
◦ A portion of apparatus and vehicle replacement costs
attributable to existing development (89.4%) ◦ Operational, maintenance, or repair costs MAY 2024 FIRE IMPACT FEE PROGRAM OVERVIEW 6
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Accounting Requirements
 Fee proceeds must be deposited into a separate fund
or account so that there will be no commingling of fees with other revenues
 Fee proceeds must be expended solely for the purpose
for which there were collected
 Fee proceeds must be expended on fire facilities,
equipment, and apparatus that expand the District’s
service capacity.

MAY 2024 FIRE IMPACT FEE PROGRAM OVERVIEW 7
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Reporting Requirements
Annual Report
Must be made available to the public with
180 days after the last day of each fiscal
year
Five-Year Findings Report
For the fifth year following the first receipt of
fee proceeds, and every five years thereafter
in conjunction with Annual Report
Reports prepared by District; approved by District
Board; filed with City and County
MAY 2024 FIRE IMPACT FEE PROGRAM OVERVIEW 8
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June 2024
Board Meeting
District Board
Action
FIRE IMPACT FEE PROGRAM OVERVIEW 9
Receive public comment on Nexus Study and proposed fee
program
Receive and approve Nexus Study
Approve proposed fire impact fees
Formally request that the City Council and County BOS adopt the fee program on behalf of the District
Approve and request an automatic annual inflationary adjustment based on the Engineering-News Record Construction Cost Index Indemnification of the City and County
MAY 2024
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Tentative Timeline
FIRE IMPACT FEE PROGRAM OVERVIEW 10
May 15, 2024, 7
p.m. • District Board
Meeting
• Presentation of
Public Review
Draft and
Proposed Fee
Program
June 19, 2024, 7
p.m. • District Board
Meeting
• Conduct noticed
public hearing
• Approve Nexus
Study and fee
program
• Request
adoption by City
and County
Aug – Nov 2024
(TBD) • Cotati City
Council Meeting
• Noticed Public
Hearing
• Adoption of Fire
Impact Fee
Program
Aug – Nov 2024
(TBD) • Sonoma County
BOS Meeting
• Noticed Public
Hearing
• Adoption of Fire
Impact Fee
Program
February 2025
(TBD) • Implementation
• Fees become
effective 60-
days after
adoption
MAY 2024
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Questions?
Jeff Veliquette
Fire Chief
Rancho Adobe Fire Protection District
Jennifer Bechtold
Administrative Manager
Rancho Adobe Fire Protection District
Blair Aas
Vice President / Impact Fee Consultant
SCI Consulting Group
FIRE IMPACT FEE PROGRAM OVERVIEW MAY 2024 11
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Wednesday, September 18, 2024
Sent Electronically
[email protected]
Damien O’Bid, City Manager
City of Cotati
201 West Sierra Avenue
Cotati, CA 94931
Re: Fire Impact Fee Nexus Study and Program for the Rancho Adobe Fire Protection District Dear Mr. O’Bid:

On behalf of the Rancho Adobe Fire Protection District (the "District"), please find attached the District’s Fire Impact Fee Nexus Study (the "Nexus Study") prepared by SCI Consulting Group. The Nexus Study and the proposed fire impact fee program were approved by the District’s Board of Directors (the "Board") on June 19, 2024, by Resolution R-10. As the District does not have the land use authority to impose such fees, the Board formally requests that the City of Cotati Council adopt and implement the proposed fee program on behalf of the District.

It is my understanding that your office will be able to review and present this fee program to the City Council for consideration. I have also attached a draft ordinance for your use. If you have any questions regarding the fee program or the City adoption requirements, please let me know. Our office is ready to assist the City as needed. I can be reached at 707-816-9101 or via email at [email protected].

Sincerely,
Blair Aas, Vice President
SCI Consulting Group
cc: Chief Jeff Veliquette, Rancho Adobe Fire Protection District Jennifer Bechtold, Rancho Adobe Fire Protection District Attachments: Rancho Adobe FPD Fire Impact Fee Nexus Study Rancho Adobe FPD Resolution R-10
Draft City Ordinance

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Cotati City Council
Agenda Staff Report
Item type: PUBLIC HEARINGS (ACTION)
To: City Council
Subject: INTRODUCTION AND FIRST READING OF AN ORDINANCE TO AMEND SECTION 17.42.170 ACCESSORY DWELLING

UNITS/JUNIOR ACCESSORY DWELLING UNITS OF THE

COTATI MUNICIPAL CODE
Date: December 10, 2024
Written by: Autumn Buss, Associate Planner
Recommendation
It is recommended that the City Council hold a public hearing and introduce an Ordinance amending Title 17 (Land Use) of the Cotati Municipal Code in accordance with State law by repealing and replacing Section 17.42.170 Accessory Dwelling Units/Junior Accessory Dwelling Units and amending Section 17.90.020 Definitions of Specialized Terms and Phrases.

Background
Since 2016, the California State Legislature has regularly adopted new laws intended to increase the development of accessory dwelling units (“ADUs”) in an effort to create more housing opportunities in the state. This legislation has significantly reduced the amount of control that local jurisdictions have to regulate ADUs. In some cases, the new laws set state-level standards that supersede local standards; in others they simply nullify existing local regulations. In 2020, in response to a number of state laws passed in 2019, the City adopted an ordinance for ADU development in Cotati that reiterated the numerous standards and requirements set forth in the state ADU law. Since that time, the Legislature has continued to make frequent law changes that have rendered the existing ADU ordinance—codified as Section 17.42.170 of the Cotati Municipal Code—increasingly less accurate and relevant. For the most part, Section 17.42.170 is simply redundant with state law, reiterating standards set by the state over which the City has no control. However, some of the new state legislation has made Cotati’s code out of date and currently inconsistent with state law.

Analysis/Discussion
Staff expect that the State Legislature will continue to regularly adopt updates to state ADU law, 69 of 293
as California’s housing crisis continues. This, in turn, may make the City’s existing code further noncompliant with state law or require a great deal of staff, Planning Commission, and City Council time to repeatedly update the City’s code in order to remain current. An alternative, however, is to adopt an ordinance that references state ADU law, as updated from time to time, for the majority of standards, rather than attempting to adopt every standard of the state ADU law word for word into the City’s code. The City may choose to adopt an ADU ordinance addressing only certain standards, as long as those standards are consistent with the state law.

A copy of Section 17.42.170, Cotati’s current ADU standards, is included as Attachment 1. As mentioned above, while most of the provisions of Section 17.42.170 are a reiteration of state standards that are still applicable at this time, some of its provisions are no longer consistent with state law. Key state legislative changes that have been made since Section 17.42.170 was codified in 2020 include the following:
• Minimum allowable height limit of 18 feet for detached ADUs within ½ mile of SMART station or on properties with existing or proposed multifamily, multistory dwellings • Minimum allowable height limit of 25 feet for attached ADUs • Front setback requirements may not preclude development of a detached ADU of 800 square foot or less on a property
• Number of ADUs that must be allowed per single-family property is three—one junior accessory dwelling unit (JADU) of up to 500 square feet built entirely within the primary dwelling; one ADU built entirely within the existing space of the primary dwelling or an accessory structure; and a detached ADU up to 800 square feet in size • Unpermitted and/or nonconforming ADUs cannot be denied a permit • Owner occupancy of the property is no longer mandatory for ADUs • Stricter approval timelines are required of the City.

Two new legislative bills that will further render Section 17.42.170 inconsistent with state law have been passed and will take effect on January 1, 2025:
• SB 1211--Raises the allowable maximum number of detached ADUs on an existing multifamily property from two to eight; prohibits local agencies from requiring replacement of uncovered, off-street parking spaces that are removed to accommodate ADU construction
• AB 2533—Extends unpermitted ADU amnesty to JADUs and changes cut-off date for construction of units that may receive amnesty from January 1, 2018 to January 1, 2020.

State ADU law does provide limited opportunities for local jurisdictions to regulate certain aspects of ADU development. These may be included in a local ordinance, and are described below.
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• Limits on size. A local jurisdiction may:
o Limit an ADU to 50% or less of the square footage of the primary dwelling, although an ADU of at least 800 square feet in size must be allowed. o Limit studio or one-bedroom attached or detached ADUs to 850 square feet and 2+ bedroom ADUs to 1,000 square feet.
o Set a maximum cap of 1,200 square feet on all ADUs.
• Limit on height. Regardless of height in feet allowed by state law, a local jurisdiction may cap ADUs at 2 stories high.
• Parking in setbacks. Although parking in setbacks cannot be prohibited, a local jurisdiction may make a determination about the specific locations in setbacks where parking is permitted. (The City’s existing parking standards address this issue sufficiently through limits on parking in setbacks for both single-family and multifamily housing.) • Minimum 30-day rental of ADUs. This provision is intended to limit the use of ADUs as vacation rentals rather than permanent housing.

As described above, staff has determined that adoption of an ordinance that includes a reference to state ADU law for the bulk of the ADU standards (standards which the City is required to uphold regardless) is the most efficient and effective way to keep our code simple, up-to-date, and consistent with frequently-changing state law. Therefore, the proposed ordinance would repeal the City’s existing Land Use Code Section 17.42.170, and replace it with updated language referencing state standards for ADUs and codifying those standards over which the City has control. The key points of the proposed ordinance are as follows:
• Referral back to the required standards set by state ADU law. • Confirmation of ministerial, non-discretionary review for ADUs that conform to state law. An ADU that does not conform to state law but is consistent with City standards may also be considered for discretionary Design Review approval by the City. • Limit the size of ADU that may be built in the front setback to 800 square feet. (See additional discussion below.)
• Limit attached and detached ADUs on lots of up to ½ acre in size to 850 square feet for studio and one-bedroom units and 1,000 square feet for 2+ bedroom units, although applicants may choose a discretionary Design Review process to request relief from these limits. On lots over 1/2 acre in size these limits would not apply. (This is a current City standard in 17.42.170.)
• Limit the size of any ADU to 1,200 square feet. (This is a current City standard in

17.42.170.)
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• Restrict the size of an attached or interior conversion ADU to 50% of the square footage of the primary dwelling (although ADU of up to 800 square feet in size must be permitted). (This is a current City standard in 17.42.170.) • Height and Setbacks: Establish the City’s standards for height limits and setback requirements within the bounds of ADU law, which restricts jurisdictions from setting height limits below certain levels and setbacks above certain levels, but does not set an absolute height limit or setback requirement. Because state ADU law is fairly confusing on this point, it is prudent for the ordinance to clarify the maximum heights and minimum setbacks for Cotati, as follows:
o Minimum side and rear setbacks of 4 feet for all ADUs, with the exception of conversion of an existing legal accessory structure or living space that is converted to an ADU, in which case no setback may be required per state law. o Height limits that set the State’s minimum height limits as the maximum allowed in Cotati, as follows:

Type of ADU Maximum height
Attached 25 feet
Detached, within one halfmile of SMART station18 feet
Detached, on a property with
existing or proposed
multifamily, multistory
dwelling(s)
18 feet
Detached 16 or 18 feet
o While 16 feet is the lowest height limit that state law allows for an ADU at this time, staff proposes to set the height limit for all detached ADUs to 18 feet, in the interest of simplifying the implementation of the ordinance across the city. o ADUs that comply with the setback standards for the primary dwelling unit according to the applicable zoning district may utilize the corresponding height limit for the primary dwelling unit.
• Limit ADUs to two stories high, unless constructed through conversion of interior space in an existing building.
• Remove the requirement for parking for any ADU in Cotati. State law allows the City to require one parking space per ADU, with the exceptions of ADUs within ½ mile of any public transit, and JADUs. These exceptions greatly reduce the number of properties on which the City may require parking, and in the interest of streamlining implementation and in the spirit of the progressive parking standards recently adopted by the City for 72 of 293
multifamily development, staff proposes to remove the parking requirement for ADUs entirely. This would not preclude voluntary provision of parking. • Require a 30-day rental term minimum. (This is a current City standard in 17.42.170.) • Amend the definitions of single-family and multifamily housing in order to ensure that ADUs are not included in the unit count, density calculation, or site coverage calculation for a lot, and that the presence of one or more ADUs on a single-family lot does not classify that property or the dwellings on it as “multifamily.” (See Attachment 2 for redline version of proposed definition amendments.)
A copy of the proposed new Section 17.42.170 is included as Attachment 3.

Staff have developed a handout regarding ADU development that will help guide applicants and staff members in developing and evaluating ADU proposals. The handout addresses both state ADU law standards, and City standards that are not affected by state ADU law or are proposed to be adopted in the ADU ordinance. The handout is included as Attachment 4.

The ADU handout describes the criteria for placement of an ADU in a front setback. Since the state law, as amended in 2023, simply added “front setback” to a lengthy list of standards that a local jurisdiction may not apply if they preclude development of a detached ADU of up to 800 square feet on a property, with no qualifying or clarifying language, staff feels that a commonsense interpretation of the standard is warranted. This approach proposes allowing front setback development of an ADU only when no other location is available on the property due to permanent and/or natural features of a lot. Full details are in section 5B of the ADU handout in Attachment 4.

Planning Commission Recommendation
The Planning Commission held a public hearing and discussed the proposed ADU ordinance update at its meeting on November 18, 2024. The Planning Commission unanimously adopted a resolution recommending that the Council adopt the proposed ordinance, and supported the staff recommendations of setting the maximum height limit for detached ADUs to 18 feet and removing the parking requirement for all ADUs.

Financial Considerations
With the exception of the staff time needed to prepare the draft ordinance, there are no direct financial impacts to the general fund associated with the adoption of the ordinance.

Environmental Issues
The proposed ordinance is exempt from the California Environmental Quality Act as it is consistent with the program Final Environmental Impact Report (SCH# 2013082037) for the Cotati General Plan Update that was certified on March 24, 2015 (Resolution Number 2015-11) and the Mitigated Negative Declaration certified for the 2023-2031 Housing Element (SCH # 73 of 293
2013082037) adopted and certified on June 2, 2023. In addition, the proposed ordinance is consistent with and implements the City’s adopted General Plan, including the 2023-2031 Housing Element, and no new environmental impacts peculiar to the project site(s) have been realized or identified. Therefore no additional environmental analysis is required under CEQA Section 15183, and pursuant to Section 15168 of the CEQA Guidelines, no further environmental review is required.
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ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COTATI AMENDING TITLE 17 (LAND USE) OF THE COTATI MUNICIPAL CODE IN ACCORDANCE WITH STATE LAW BY REPEALING AND REPLACING SECTION 17.42.170

ACCESSORY DWELLING UNITS/JUNIOR ACCESSORY DWELLING UNITS AND AMENDING SECTION 17.90.020 DEFINITIONS OF SPECIALIZED TERMS AND

PHRASES
WHEREAS, on March 24, 2015, the Cotati City Council adopted its updated General Plan (Resolution No. 2015-12), which identifies the City’s vision for the future and provides a framework to guide decisions on growth and development consistent with the quality of life desired by Cotati citizens. On March 24, 2015, the Cotati City Council also certified the City of Cotati General Plan Environmental Impact Report (EIR), which reviewed potentially significant environmental effects resulting from the plan’s implementation and developed measures and policies to mitigate those impacts to less-than-significant levels; and WHEREAS, on May 24, 2023, the Cotati City Council adopted the 2023-2031 Housing Element Update to the General Plan (“Housing Element”), which includes goals and policies related to housing, including facilitating the development of accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs); and
WHEREAS, as described in the Housing Element, Cotati’s population increased 4.4% between 2010 and 2020, compared to the population of Sonoma County as a whole, which increased only 1% between 2010 and 2020, and this growth may increase housing demand in Cotati; and
WHEREAS, ADUs and JADUs provide housing for family members, students, elderly, in-home health care providers, the disabled, and others at below market prices within existing neighborhoods; and
WHEREAS, one of the purposes of Title 17 of the Cotati Municipal Code is to ensure that the General Plan, including the Housing Element, may be implemented, and adoption of changes to the Cotati Land Use Code are necessary to implement the General Plan with regard to its goals; and
WHEREAS, the State of California has established that a local agency may, by ordinance, provide for the creation of ADUs and JADUs in single-family and multifamily residential zones and that ordinance may set forth certain standards for the development of ADUs and JADUs as allowed by state law; and
WHEREAS, state laws related to the review and approval of ADUs and JADUs apply whether or not a local agency has adopted a local ordinance; and 75 of 293 WHEREAS, the State of California has made numerous legislative changes since 2016 intended to increase the supply of ADUs and JADUs by limiting a local jurisdiction’s ability to impose certain standards, review processes, and fees, as codified in California Government Code Sections 66310-66342; and
WHEREAS, the proposed Land Use Code amendments in this ordinance comply with California Government Code Sections 66310-66342; and
WHEREAS, the Legislature of the State of California has in Government Code Sections 65302, 65560, and 65800 conferred upon local governments the authority to adopt regulations designed to promote the public health, safety, and general welfare of its citizenry; and WHEREAS, on November 18, 2024, the Planning Commission of the City of Cotati held a duly noticed public hearing to review the proposed ordinance amending Title 17 (Land Use) of the Cotati Municipal Code in accordance with State law by repealing and replacing Section 17.42.170 Accessory Dwelling Units/Junior Accessory Dwelling Units and amending Section 17.90.020 Definitions of Specialized Terms and Phrases. After receiving the staff report, reviewing a presentation from the Planning Division, and considering all oral and written comments submitted to the City regarding the Ordinance, the Planning Commission voted to approve a resolution recommending adoption of the proposed ordinance; and WHEREAS, on December 10 , 2024, the City Council of the City of Cotati held a duly noticed public hearing on the proposed ordinance amending Title 17 (Land Use) of the Cotati Municipal Code in accordance with State law by repealing and replacing Section 17.42.170 Accessory Dwelling Units/Junior Accessory Dwelling Units and amending Section 17.90.020 Definitions of Specialized Terms and Phrases, received the staff report, reviewed a presentation from the Planning Division, and considered all oral and written comments submitted to the City regarding the Ordinance prior to voting to introduce the Ordinance.

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

SECTION 1: Recitals.

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

SECTION 2: Record.

The Record of Proceedings (“Record”) upon which the City Council makes its decision includes, but is not limited to: 1) the 2015 General Plan, 2) the FEIR certified for the 2015 General Plan, 3) the 2023-2031 Housing Element Update adopted by the City Council in 2023, 4) the Mitigated Negative Declaration certified for the 2023-2031 Housing Element, and 5) all staff reports, City files and records, and other documents prepared for and/or submitted to the City Council related to adoption of the ordinance amending Title 17 (Land Use) of the Cotati Municipal Code in accordance with State law by repealing and replacing Section 17.42.170 Accessory Dwelling Units/Junior Accessory Dwelling Units and amending Section 17.90.020 Definitions of Specialized Terms and Phrases.

SECTION 3: General Plan Consistency
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The Council of the City of Cotati does hereby find that the amendments to Title 17 (Land Use) of the Cotati Municipal Code in accordance with State law that repeal and replace Section

17.42.170 Accessory Dwelling Units/Junior Accessory Dwelling Units and amend Section

17.90.020 Definitions of Specialized Terms and Phrases, as set forth in this Ordinance, are in the best interest of the City in that they will further established goals, policies, and implementation programs of the General Plan, including the Housing Element, to expand housing opportunities, conserve resources, and use land appropriately.

Specifically, these amendments are consistent with and implement the following Housing Element policies and programs:

Policy H-1.9 Encourage the development of accessory dwelling units in order to provide additional affordable and attainable market rate rental units in Cotati.

Policy H-2.9 Continue to facilitate and encourage the construction of accessory dwelling units pursuant to the City’s Accessory Dwelling Unit Ordinance, Cottage Housing Ordinance, and pursuit of “affordable by design” missing middle housing such as junior accessory dwelling units and cohousing.

Policy H-2.11 Encourage housing development on existing infill sites in order to efficiently utilize existing infrastructure.

Policy H-3.1 Ensure that the City’s development standards encourage development of a range of housing types, including multifamily, mixed use, high density residential, accessory dwelling units, cottage housing units, and single-family units.

Policy H-3.5 Encourage housing for large and intergenerational families, including through the promotion of accessory dwelling units.

Program 3-1 Zoning for a variety of housing types: Allow the development of junior accessory dwelling units within all single-family dwellings, including those in the NM and NU zones, and ensure all accessory dwelling unit/junior accessory dwelling unit requirements are compliant with State law by December 2023.

In addition, these amendments are consistent with and implement the following General Plan policies and programs:

Policy CON 2.1: Improve air quality through continuing to require a compact development pattern that focuses growth in and around existing urbanized areas, locating new housing near places of employment, encouraging alternative modes of transportation, and requiring projects to mitigate significant air quality impacts.

Policy CON 3.10: Ensure that the layout and design of new development and significant remodels encourages the use of transportation modes other than automobiles and trucks.

Policy LU 2.4: Maintain the character of existing neighborhoods by ensuring new development is compatible in style, size, color, and footprint with the existing residences 77 of 293 in the neighborhood.

Policy LU 2.5: Locate medium and higher density housing within easy walking or bicycling distance of public facilities, services, transit, and major employers.

Policy LU 2.6: Require new residential development to be consistent with the smalltown character of Cotati and designed and landscaped in an aesthetically pleasing and sustainable manner.

SECTION 4: Compliance with the California Environmental Quality Act.

The Council of the City of Cotati does hereby find that the proposed ordinance to amend Title 17 (Land Use) of the Cotati Municipal Code in accordance with State law by repealing and replacing Section 17.42.170 Accessory Dwelling Units/Junior Accessory Dwelling Units and amending Section 17.90.020 Definitions of Specialized Terms and Phrases is exempt from the California Environmental Quality Act as the proposed ordinance is consistent with the program Final Environmental Impact Report (SCH# 2013082037) for the Cotati General Plan Update that was certified on March 24, 2015 (Resolution Number 2015-11) and the Mitigated Negative Declaration certified for the 2023-2031 Housing Element (SCH # 2013082037) adopted and certified on June 2, 2023; that this ordinance is consistent with and implements the City’s adopted General Plan, including the 2023-2031 Housing Element, and no new environmental impacts peculiar to the project site(s) have been realized or identified, therefore no additional environmental analysis is required under CEQA Section 15183, and therefore pursuant to Section 15168 of the CEQA Guidelines, as such no further environmental review is required.

SECTION 5: Amendment to the Cotati Municipal Code. Section 17.42.170 is repealed and replaced as follows:

17.42.170 Accessory dwelling units/junior accessory dwelling units. This section establishes procedures and development standards for accessory dwelling units (“ADUs”) and junior accessory dwelling units (“JADUs”), where allowed by Chapter 17.22 (Allowable Land Uses), and in compliance with this title and California Government Code Sections 66310-66342 (“state ADU law”), as may be amended from time to time.

A. Review. ADUs/JADUs that are consistent with the standards of state ADU law and this title, as modified by state ADU law and this section, shall be subject to a ministerial, non-discretionary City review process in conformance with state ADU Law. ADUs that are not consistent with the standards of state ADU law may be subject to a discretionary design review process by the City.

B. Development Standards.

1. Application of State ADU Law. Each ADU/JADU shall be consistent with all development standards identified in state ADU law except as modified by this section.

2. Land Use and Zoning Conformance. Each ADU/JADU shall meet all development standards of the zoning district in which it is located and other standards set forth in this title, except as modified by this section or by state ADU law.
a. ADUs/JADUs shall not be included in density calculations or unit count to determine the number of housing units per gross acre for residential or mixed-use properties and shall not be 78 of 293
included in site coverage calculations for a lot.
b. A certificate of occupancy for an ADU shall not be issued before that of the primary dwelling.

3. Location. Generally, AUDs/JADUs should be located to the side and/or rear of the primary structure on the site. Exceptions may be allowed in limited circumstances in which no other location is feasible to build an ADU due to the presence of mature, healthy trees; infrastructure; utility, access, or other easements; natural resources, hillsides, wetlands, or riparian features; existing accessory structures of a permanent nature including garages, carports, site-built custom sheds or greenhouses, or workshops/studios; in-ground swimming pools or spas; or other similar features as determined by the community development director. No ADU of more than eight hundred (800) square feet of gross floor area shall be located within the front setback or street side setback of a lot.

4. Parking. No additional parking spaces are required for the development of an ADU or JADU.

5. Size. ADUs shall be subject to the following requirements related to size:
a. ADUs on lots less than one-half acre (twenty-one thousand seven hundred eighty square feet) in size shall be limited to the following maximum sizes:

Less than two
bedrooms
Eight hundred fifty
square feet of gross
floor area
Two or more
bedrooms
One thousand square
feet of gross floor area
b. ADUs on lots less than one-half acre in size may exceed the above maximum sizes subject to approval of discretionary design review by the Planning Commission. c. In no case shall any detached ADU exceed one thousand two hundred square feet in size. d. The gross floor area of an attached (or interior) ADU shall not exceed fifty percent of the existing gross floor area of the primary residence. Notwithstanding the existing gross floor area of the primary residence, an ADU may contain at least eight hundred square feet of gross floor area.
e. The minimum allowable gross floor area of an ADU shall be the minimum size permitted by the California Building Code, but in no case shall it preclude a minimum-sized efficiency unit.

6. Occupancy, Rental, and Sale.
a. Owner-occupancy of an ADU or its primary dwelling is not required. Either the JADU or the primary dwelling associated with a JADU must be owner-occupied, unless the owner is a government agency, land trust, or housing organization. b. Any ADU/JADU may be rented separately from the primary dwelling, for a minimum rental term of 30 days.
c. An ADU may be sold separately from the primary dwelling, in accordance with State ADU Law.
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7. Height and Setbacks.
a. All ADUs shall comply with the primary structure height and setback requirements of the underlying zoning district with the exception of those described below:

Type of ADU Minimum Setbacks Maximum height
Attached Four feet side and
rear
Twenty-five feet
Detached, within one halfmile mile of SMART stationFour feet side and rear
Eighteen feet
Detached, on a property with
existing or proposed
multifamily, multistory
dwelling(s)
Four feet side and
rear
Eighteen feet
Detached Four feet side and
rear
Sixteen or Eighteen feet
No setback shall be required for a legally existing living space, garage, or accessory structure which is fully or partially converted to an ADU, or for a structure constructed in the same location and to the same dimensions as a legally existing living area, garage, or accessory structure which is fully or partially converted to an ADU. The maximum height for such structures shall be the greater of the existing height of the structure prior to conversion to an ADU, or the applicable height set forth in Section 17.42.170(B)(7)(a). b. No ADU shall exceed a height of two stories, with the exception of an interior ADU constructed fully within an existing dwelling or structure.

C. Rental. ADUs/JADUs must be rented for a minimum term of thirty days.

SECTION 6: Amendment to the Cotati Municipal Code. Section 17.90.020 is amended to amend the definitions of “accessory dwelling unit,” “junior accessory dwelling unit,” “multifamily housing,” and “single family dwelling,” and add the definitions of “primary dwelling” and “primary residence,” as follows:

17.90.020 Definitions of specialized terms and phrases
Section 17.90.020 Definitions is amended as follows:
“Accessory dwelling unit” has the same meaning as defined in California Government Code Section 66313 as amended from time to time.
80 of 293
“Junior accessory dwelling unit” has the same meaning as defined in California Government Code Section 66313, as amended from time to time.
“Multifamily housing” means a structure containing two or more dwelling units, a development of multiple structures that each contain two or more dwelling units, or a development of two or more structures each containing a single dwelling unit, located on a single property. Multifamily structures include: duplexes, triplexes, fourplexes (buildings with two, three or four dwelling units, respectively, in the same structure); apartments (five or more units in a single building); townhouse development (two or more attached dwellings where no unit is located over another unit); rowhouses; and other building types containing multiple dwelling units (for example, courtyard housing, stacked flats, etc.). Multifamily housing structures or developments may be under a single ownership with the dwelling units under rental tenancy, or the dwelling units may be individually owned and occupied, such as condominiums. Multifamily housing structures or developments may also contain accessory dwelling units, which are not included in the unit count, density calculations, or site coverage calculations for the purposes of determining consistency with this title, as allowed by state law.
“Primary dwelling” means the dwelling(s) which accommodate the primary use of the site.

Primary residence. See “Primary dwelling.”
“Primary structure” means a structure that accommodates the primary use of the site. “Primary use” means the main purpose for which a site is developed and occupied. “Single-family dwelling” means a building designed for and/or occupied exclusively by one family. Also includes factory-built, modular housing units, constructed in compliance with the Uniform Building Code (UBC), and mobilehomes/manufactured housing units that comply with the National Manufactured Housing Construction and Safety Standards Act of 1974, placed on permanent foundation systems. Single-family dwellings may also contain accessory dwelling units or junior accessory dwelling units or be located on lots with detached accessory dwelling units, which are not included in the unit count, density calculations, or site coverage calculations for the purposes of determining consistency with this Title, and which do not cause the singlefamily dwelling or the lot on which it is located to be considered a multifamily dwelling or a multifamily lot or property.

SECTION 7: Construction and severability.

It is the intent of the City Council of the City of Cotati to supplement applicable state and federal law and not to duplicate or contradict such law, and this ordinance shall be construed consistently with that intent. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this ordinance, or its application to any other person or circumstance. The City Council of the City of Cotati hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable. 81 of 293 SECTION 8: Effective date.

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

SECTION 9: Publication. The city clerk shall cause this ordinance to be published and/or posted as required in Section 36933 of the California Government Code.

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

RESULT: MOVER:

SECONDER: AYES:

Approved:

Mayor
Attest:

Kevin Patterson, Deputy City Clerk
Approved as to form:

City Attorney
This document is a true and correct copy of Ordinance Number ### and has been published or posted pursuant to law. California Government Code § 40806 Kevin Patterson, Deputy City Clerk
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City Council
Public Hearing
Accessory Dwelling Unit
Ordinance Update
Community Development
Department
December 10, 2024 83 of 293
Background
 State legislation to increase ADU development
by reducing local control began in 2016
 City adopted first ADU ordinance in 2020;
mirrored State law
 Multiple changes in state law = Cotati’s ADU
ordinance is now inconsistent
 More updates to state ADU law are likely, meaning:
Increasing inconsistency of City ordinance
More staff and decisionmaker time devoted to
regular updates of ordinance
 Adopting a revised, simplified ADU ordinance may
alleviate this
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State ADU law changes since 2020
 Lowest allowable height limit is 18’ for detached
ADUs within ½ mile of SMART or on MF properties
 Lowest allowable height limit 25’ for attached ADUs
 Front setback requirements may no longer preclude
a detached 800 sqft ADU on any property
 3 ADUs allowed per SF property: 1 JADU,
1 “interior” ADU, and 1 detached ADU of up
to 800 sqft
 Amnesty for unpermitted/nonconforming ADUs
 Owner occupancy no longer mandatory
 Stricter timelines for City approval 85 of 293
State ADU laws changing Jan 1, 2025
 SB 1211
Raises number of detached ADUs on
existing multifamily properties from 2 to 8
Uncovered offstreet parking spaces
removed for ADU development do not
need to be replaced
 AB 2533
Extends unpermitted amnesty to JADUs
Changes construction cut-off date for
amnesty from Jan 2018 to Jan 2020
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What DOES State Law Allow City to Regulate?
 Limits on ADU size
 May limit to 50% of sqft of primary
dwelling (to 800 sqft)
 May limit studio or 1br ADUs to 850 sqft;
2+ br ADUs to 1,000 sqft
 May set maximum cap of 1,200 sqft for all ADUs
May cap ADUS at 2 stories
 May regulate parking in setbacks
 May set minimum rental period of 30 days
 Setbacks and heights—within strict state limits
 These are objective standards for review purposes 87 of 293 Recommended Approach
 Repeal existing ordinance
 Adopt a new, streamlined ordinance
 Only includes standards over which the City
has some control or are legally necessary
 Simplified ordinance more likely to remain
current as State ADU law changes over
time, easier to update when needed
 Handout summarizing all state and City ADU
standards—can be updated at any time
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Proposed Ordinance Update
 Reference to state ADU law as basis
 Confirmation of ministerial, non-discretionary review Discretionary design review would be available for
ADUs that do not meet state law
 Limit ADUs in front setback to 800 sqft
 Square footage limits as allowed by state law
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Proposed Ordinance Update
 Setbacks and heights as allowed by
state law
 Two-story height limit
 Minimum 30-day rental
 Definition amendments:
ADUs are not included in unit count,
density calculation, or site coverage
ADUs do not classify a single-family
property as multifamily
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Potential Policy Changes for Ordinance
 Height of Detached ADUs
Maximum is 16’ if located in side or rear
setback (up to 4’)
Except within ½ mile of SMART or on
multifamily property—then 18’
Make height limit 18’ for all citywide?
 Parking
City can require 1 space per ADU
Except within ½ mile of transit and JADUs
Remove parking requirement citywide? 91 of 293
Planning Commission Recommendation
 Public hearing on November 18, 2024
 Unanimous recommendation of new
ADU ordinance
 Including consistent 18’ height limit
for all detached ADUs and removal of
parking requirement
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Recommendation
The Community Development
Department recommends that the
City Council hold a public hearing
and introduce an ordinance amending
Title 17 (Land Use) of the CMC in
accordance with State law by
repealing and replacing Section

17.42.170 and amending Chapter

17.90. 93 of 293
Questions?
94 of 293
Cotati Municipal Code Page 1/4
The Cotati Municipal Code is current through Ordinance 926, passed July 9, 2024.

ATTACHMENT 1

17.42.170 Accessory dwelling units/junior accessory dwelling units.

This section establishes procedures and development standards for the ministerial, nondiscretionary processing of applications for new accessory dwelling units (“ADUs”) and junior accessory dwelling units (“JADUs”), where allowed by Chapter 17.22 (Allowable Land Uses), and in compliance with California Government Code Sections 65852.2 and 65852.22.

A. General Requirements – ADUs/JADUs. All ADUs/JADUs shall be subject to the following standards:

1. One ADU and/or one JADU may be developed on a residentially zoned parcel with a proposed or existing single-family dwelling.

2. Not more than two detached ADUs may be located on a lot with an existing multifamily dwelling. The detached ADUs shall not exceed sixteen feet in height and shall be set back at least four feet from the side and rear property lines.

3. Multiple ADUs may be developed within portions of existing multifamily structures that are not used as livable space, including storage rooms, passageways, attics, basements or garages, if each unit complies with state building standards for dwellings. The number of ADUs allowed within existing multifamily structures is limited to twenty-five percent of the existing number of units on the property, except that at least one is allowed.

4. Any ADU/JADU may be rented separately from the primary residence, but shall not be sold independently of the primary residence, except as provided for in Section 65852.26 of the California Government Code.

5. Any ADU/JADU shall not be rented for less than thirty consecutive days.

6. Owner-Occupancy. Owner-occupancy of an ADU/JADU or its primary residence is not required.

7. Street addresses shall be assigned to all ADUs to assist in emergency response. Address creation for a JADU may be required depending on the configuration of the unit, and subject to the Fire Marshal’s recommendation.

8. ADUs/JADUs are not required to install fire sprinklers if they are not required for the primary residence.

9. ADUs/JADUs shall not be included in density calculations to determine the number of housing units per gross acre for residential properties.

10. ADUs/JADUs are not required to install new or separate utility connections directly between the ADU and the utility, and shall not be subject to connection fees or capacity charges for utilities, including sewer and water.

11. ADUs of seven hundred fifty square feet or less shall not be subject to development impact fees. ADUs larger than seven hundred fifty square feet may, as determined by the city council by resolution, be subject to impact fees charged proportionately in relation to the square footage of the primary dwelling unit. “Impact fee” has the same meaning as the term “fee” defined in Section 66000 of the California Government Code, except that it also includes the fees specified in Section 66477 of the California Government Code.

12. A permit application for an ADU/JADU shall be ministerially approved within sixty days from the date the city receives a complete application if there is an existing single-family or multifamily dwelling on the lot unless the application is submitted with an application to create a new single-family or multifamily dwelling on the lot.

B. Development Standards – ADUs.

1. Zoning Conformance. All ADUs shall meet all development standards of the zoning district in which it is located except as modified by this section.
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Cotati Municipal Code Page 2/4
The Cotati Municipal Code is current through Ordinance 926, passed July 9, 2024.

2. Permanent Foundation. A permanent foundation shall be required for all ADUs.

3. Separate Entry, Kitchen and Bathroom. All ADUs shall contain a separate entrance, kitchen and bathroom independent of the primary residence. No passageway shall be required in conjunction with the construction of an accessory dwelling unit.

4. Location. Detached ADUs are subject to the following location standards:
a. Detached ADUs shall be separated from the primary dwelling and any accessory structure by a minimum of five feet.
b. Setbacks. All ADUs shall be subject to the following setback requirements:
i. No ADUs shall be constructed within the front setback. ii. Attached or detached ADUs that are sixteen feet in height or less shall be set back a minimum of four feet from the rear and side property lines.
iii. Attached or detached ADUs that exceed sixteen feet in height shall be subject to the same minimum front, side and rear setback requirements as the primary residence. iv. No setback shall be required for a legally existing living space, garage or accessory structure which is fully or partially converted to an ADU, or for a structure constructed in the same location and to the same dimensions as a legally existing living area, garage or accessory structure which is fully or partially converted to an ADU.
v. An ADU constructed above a garage shall be set back a minimum of five feet from the rear and side property lines.

5. Height. If the ADU is located in conformance with the setback requirements of the primary residence the height shall be limited to the height limits of the primary residence. If the ADU is located within the setback areas applicable to the primary residence the attached or detached ADU shall not exceed sixteen feet in height.

6. Size. ADUs shall be subject to the following requirements related to size:
a. ADUs on lots less than one-half acre (twenty-one thousand seven hundred eighty square feet) in size shall be limited to the following maximum sizes:

Less than two bedrooms 850 square feet of gross floor area Two bedrooms 1,000 square feet of gross floor
area
b. ADUs on lots less than one-half acre in size may exceed the above maximum sizes following submittal of an application and approval of a discretionary design review application. c. In no case shall any ADU exceed one thousand two hundred square feet in size. d. The gross floor area of an attached or interior ADU shall not exceed fifty percent of the existing gross floor area of the primary residence. Notwithstanding the existing gross floor area of the primary residence, an ADU may contain at least eight hundred square feet of gross floor area. e. An interior ADU proposed within the space of an existing single-family residence or accessory structure may include an expansion of not more than one hundred fifty square feet beyond the same physical dimensions of the existing structure if the expansion is limited to accommodating ingress and egress. f. The minimum allowable gross floor area of an ADU shall be the minimum size permitted by the California Building Code, but in no case shall it preclude a minimum-sized efficiency unit. 96 of 293
Cotati Municipal Code Page 3/4
The Cotati Municipal Code is current through Ordinance 926, passed July 9, 2024.

7. Lot Coverage. An ADU shall comply with the lot coverage requirements of the applicable zoning district; however, notwithstanding the existing and proposed lot coverage, an ADU may contain at least eight hundred square feet of gross floor area.

8. Architectural Style. The architectural style, exterior materials, and colors of the ADU shall be compatible with the primary dwelling unit.

9. Windows. For an ADU located within the required setbacks of the primary residence, all windows along the wall facing the adjoining property line within the required setback shall be clerestory (minimum of six and one-half feet above the finished floor) or shall have permanently obscured glazing. Windows that vary from this standard may be allowed following the submittal of an application for approval of discretionary design review.

C. Development Standards – JADUs. JADUs are subject to the following objective standards:

1. Location. A JADU must be created within the walls of a proposed or existing single-family residence.

2. Size. The size of a JADU shall not exceed five hundred square feet of gross floor area. The gross floor area of a shared sanitation facility shall not be included in the maximum gross floor area of the unit.

3. Entryways. A JADU must include a separate entrance from the main entrance to the primary residence. An expansion of not more than one hundred fifty square feet beyond the same physical dimensions of an existing structure shall be allowed if the expansion is limited to accommodating ingress and egress.

4. Kitchen. The JADU shall include an efficiency kitchen as defined in California Government Code Section 65852.22.

5. Bathroom. A JADU may include separate sanitation facilities, or may share sanitation facilities with the primary residence.

6. Zoning Conformance. Any exterior improvements associated with the development of a JADU shall conform to zoning regulations and any existing land use entitlements on the property.

7. Deed Restriction. The junior accessory dwelling unit shall not be offered for sale apart from the principal unit. A deed restriction, which shall run with the land, shall be filed with the city and shall include both of the following:
a. A prohibition on the sale of the junior accessory dwelling unit separate from the sale of the single-family residence, including a statement that the deed restriction may be enforced against future purchasers; and
b. A restriction on the size and attributes of the junior accessory dwelling unit that conforms to this section.

8. No minimum parking requirement shall be required for a JADU.

D. Parking.

1. Unless otherwise specified below, one on-site parking space shall be required for an attached or detached ADU. This parking space is in addition to those spaces required for the primary residence(s). On-site parking is not required for an ADU in any of the following instances:
a. The ADU is located within one-half mile walking distance of public transit. b. The ADU is located within an architecturally and historically significant historic district. c. The ADU is part of the proposed or existing primary residence or accessory structure. 97 of 293
Cotati Municipal Code Page 4/4
The Cotati Municipal Code is current through Ordinance 926, passed July 9, 2024. d. When on-street parking permits are required but not offered to the occupant of the ADU. e. When there is a car share vehicle located within one block of the ADU.

2. The required parking space for an ADU may be located in any configuration on the same lot as the accessory dwelling unit, including, but not limited to, as covered spaces, uncovered spaces, tandem parking spaces, or by the use of mechanical automobile parking lifts.

3. When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an ADU or is converted to an ADU, the space(s) eliminated from that structure are not required to be replaced elsewhere on the lot.

E. Termination of Permit and Use. At his/her discretion, the community development director or his/her designee may grant an owner’s request to terminate an ADU/JADU. As a condition of termination, the director or his/her designee shall require the owner to make modifications to the property to comply with current building code requirements, and remove the kitchen. The property owner shall apply for a building permit to remove the kitchen as required by the city’s building and fire codes. (Ord. 893 § 4, 2020). 98 of 293
Attachment 2—Redline version of proposed amendments to Definitions Section 17.90.020 Definitions of Specialized Terms and Phrases is amended as follows:
“Accessory dwelling unit” has the same meaning as defined in California Government Code Section 66313 65852.2, as amended from time to time.
“Junior accessory dwelling unit” has the same meaning as defined in California Government Code Section 66313 65852.22, as amended from time to time. “Multifamily housing” means a structure containing two or more dwelling units, a development of multiple structures that each contain two or more dwelling units, or a development of two or more structures each containing a single dwelling unit, located on a single property. Multifamily structures include: duplexes, triplexes, fourplexes (buildings with two, three or four dwelling units, respectively, in the same structure); apartments (five or more units in a single building); townhouse development (two or more attached dwellings where no unit is located over another unit); rowhouses; and other building types containing multiple dwelling units (for example, courtyard housing, stacked flats, etc.). Multifamily housing structures or developments may be under a single ownership with the dwelling units under rental tenancy, or the dwelling units may be individually owned and occupied, such as condominiums.

Multifamily housing structures or developments may also contain accessory dwelling units, which are not included in the unit count, density calculations, or site coverage calculations for the purposes of determining consistency with this title, as allowed by state law. “Primary dwelling” means the dwelling(s) which accommodate the primary use of the site.

Primary residence. See “Primary dwelling.”
“Primary structure” means a structure that accommodates the primary use of the site. “Primary use” means the main purpose for which a site is developed and occupied. “Single-family dwelling” means a building designed for and/or occupied exclusively by one family. Also includes factory-built, modular housing units, constructed in compliance with the Uniform Building Code (UBC), and mobilehomes/manufactured housing units that comply with the National Manufactured Housing Construction and Safety Standards Act of 1974, placed on permanent foundation systems. Single-family dwellings may also contain accessory dwelling units or junior accessory dwelling units or be located on lots with detached accessory dwelling units, which are not included in the unit count, density calculations, or site coverage calculations for the purposes of determining consistency with this Title, and which do not cause the single-family dwelling or the lot on which it is located to be considered a multifamily dwelling or a multifamily lot or property.
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Attachment 3 Proposed Ordinance/Updated Code Language

A. Review. ADUs/JADUs that are consistent with the standards of state ADU law and this title, as modified by state ADU law and this section, shall be subject to a ministerial, nondiscretionary City review process in conformance with state ADU Law. ADUs that are not consistent with the standards of state ADU law may be subject to a discretionary design review process by the City.

B. Development Standards.

1. Application of State ADU Law. Each ADU/JADU shall be consistent with all development standards identified in state ADU law except as modified by this section.

2. Land Use and Zoning Conformance. Each ADU/JADU shall meet all development standards of the zoning district in which it is located and other standards set forth in this title, except as modified by this section or by state ADU law.
a. ADUs/JADUs shall not be included in density calculations or unit count to determine the number of housing units per gross acre for residential or mixed-use properties and shall not be included in site coverage calculations for a lot.
b. A certificate of occupancy for an ADU shall not be issued before that of the primary dwelling.

4. Parking. No additional parking spaces are required for the development of an ADU or JADU.

Less than two
bedrooms
Eight hundred fifty
square feet of gross
floor area
100 of 293
Two or more
bedrooms
One thousand square
feet of gross floor area
b. ADUs on lots less than one-half acre in size may exceed the above maximum sizes subject to approval of discretionary design review by the Planning Commission. c. In no case shall any detached ADU exceed one thousand two hundred square feet in size. d. The gross floor area of an attached (or interior) ADU shall not exceed fifty percent of the existing gross floor area of the primary residence. Notwithstanding the existing gross floor area of the primary residence, an ADU may contain at least eight hundred square feet of gross floor area.
e. The minimum allowable gross floor area of an ADU shall be the minimum size permitted by the California Building Code, but in no case shall it preclude a minimum-sized efficiency unit.

7. Height and Setbacks.
a. All ADUs shall comply with the primary structure height and setback requirements of the underlying zoning district with the exception of those described below:

Type of ADU Minimum Setbacks Maximum height
Attached Four feet side and
rear
Twenty-five feet
Detached, within one halfmile mile of SMART stationFour feet side and rear
Eighteen feet
Detached, on a property with
existing or proposed
multifamily, multistory
dwelling(s)
Four feet side and
rear
Eighteen feet
Detached Four feet side and
rear
Sixteen or Eighteen feet
101 of 293
No setback shall be required for a legally existing living space, garage, or accessory structure which is fully or partially converted to an ADU, or for a structure constructed in the same location and to the same dimensions as a legally existing living area, garage, or accessory structure which is fully or partially converted to an ADU. The maximum height for such structures shall be the greater of the existing height of the structure prior to conversion to an ADU, or the applicable height set forth in Section 17.42.170(B)(7)(a). b. No ADU shall exceed a height of two stories, with the exception of an interior ADU constructed fully within an existing dwelling or structure.

C. Rental. ADUs/JADUs must be rented for a minimum term of thirty days.

D. Termination of Permit and Use. At his/her discretion, the community development director or his/her designee may grant an owner’s request to terminate an ADU/JADU. As a condition of termination, the director or his/her designee shall require the owner to make modifications to the property to comply with current building code requirements, and remove the kitchen through a building permit process as required by the City’s building and fire codes. 102 of 293
Attachment 4
Accessory Dwelling Unit Standards
DRAFT Updated 11.19.24
The following standards apply to development of accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) in Cotati, as set forth in California Government Code Sections 66310-66342, as may be amended from time to time, (“State ADU Law”) and Cotati Municipal Code (CMC) Chapter 17.22 and Section 17.42.170.

See last page for key definitions.

A. General Requirements--All ADUs/JADUs

1. Location. ADUs and JADUs are allowed on any property where a single-family dwelling or multifamily dwelling(s) exists or are proposed to be developed along with the ADU/JADU(s).

2. Review and Permitting.
a. A permit application for an ADU/JADU that conforms to all required standards shall be ministerially approved within sixty days from the date the City receives a complete application if there is an existing single-family or multifamily dwelling on the lot. If the application is submitted with an application to create a new single-family or multifamily primary dwelling(s) on the lot, the applications will be considered in tandem according to the required timeline for the primary unit(s), although the review of the ADU/JADU will be ministerial.
b. ADUs/JADUs shall not be included in density calculations or unit count to determine the number of housing units per gross acre for residential or mixed-use properties, and shall not be included in site coverage calculations for a lot.
c. A demolition permit for a detached garage that is to be replaced with an ADU shall be reviewed with the application for the ADU and issued at the same time as the ADU building permit. The applicant shall not be required to provide written notice or signage posting for such demolition.
d. A certificate of occupancy for an ADU shall not be issued before that of the primary dwelling.

3. Number of ADUs/JADUs Allowed.
a. Single-Family Lots: One detached ADU; one JADU; and/or one ADU that is located fully within the existing or proposed primary dwelling, or within an existing accessory structure with a maximum expansion of such accessory structure of one hundred fifty feet strictly for 103 of 293
Attachment 4
the purposes of accommodating ingress and egress, may be developed on a residentially zoned parcel with a proposed or existing single-family dwelling. b. Multifamily Lots:
i. A maximum of eight detached ADUs may be located on a lot with an existing multifamily dwelling(s), although the number of such ADUs shall not exceed the number of existing units on the lot. Not more than two detached ADUs may be located on a lot with a proposed multifamily dwelling.
ii. Multiple ADUs may be developed within portions of existing multifamily structures that are not used as livable space, including storage rooms, attics, basements, or garages, if each unit complies with state building standards for dwellings. The number of such ADUs is limited to twenty-five percent of the existing number of units on the property, except that at least one is allowed.

4. Occupancy, Rental, and Sale.
a. Owner-occupancy of an ADU or its primary dwelling is not required. Either the JADU or the primary dwelling associated with a JADU must be owner-occupied, unless the owner is a government agency, land trust, or housing organization. b. Any ADU/JADU may be rented separately from the primary dwelling, for a minimum rental term of 30 days.
c. An ADU may be sold separately from the primary dwelling, in accordance with State ADU Law.

5. Fire and Safety
a. Street addresses shall be assigned to all ADUs to assist in emergency response. Address creation for a JADU may be required depending on the configuration of the unit, and subject to the Fire Marshal’s recommendation.
b. ADUs/JADUs are not required to install fire sprinklers if they are not required for the primary dwelling. Construction of an ADU/JADU shall not cause fire sprinkler installation to be required for the primary dwelling.

6. Impact Fees and Utilities
a. ADUs of seven hundred fifty square feet or less and JADUs shall not be subject to development impact fees. ADUs larger than seven hundred fifty square feet shall be subject to impact fees charged proportionately in relation to the square footage of the primary dwelling unit.
b. ADUs/JADUs are not required to install new or separate utility connections directly between the ADU and the utility, unless the ADU is sold separately from the primary dwelling subject to state ADU law.
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Attachment 4
c. ADUs/JADUs that are constructed fully within the space of an existing single-family dwelling shall not require a new or separate utility connection or be subject to a related connection fee or capacity charge, unless sold separately from the primary unit subject to state ADU law.
d. ADUs/JADUs shall not be subject to connection fees or capacity charges for utilities, including sewer and water, unless constructed with a new single-family dwelling or sold separately from the primary dwelling subject to state ADU law.

7. Nonconforming and Unpermitted Units. Correction of nonconforming zoning conditions, building code violations, or unpermitted structures that do not present a threat to public health and safety and are not affected by the construction of the ADU shall not be grounds for denying a permit for an ADU.

B. Development Standards – ADUs

1. Land Use and Zoning Conformance. Each ADU shall meet all development standards of the zoning district in which it is located and other standards set forth in the CMC, except as modified by State ADU Law and CMC Section 17.42.170.

2. Permanent Foundation. A permanent foundation shall be required for all ADUs.

3. Separate Entry. All ADUs shall contain a separate entrance, independent of the primary dwelling. No passageway shall be required in conjunction with the construction of an accessory dwelling unit.

4. Kitchen and Bathroom. An ADU may have a partial kitchen and bathroom, if the ADU meets the requirements of the state health and safety code for an “efficiency unit.” Otherwise, a full kitchen and bathroom are required.

5. Location.
a. ADUs/JADUs should be located to the side and/or rear of the primary structure on the site.

Exceptions may be allowed in limited circumstances in which no other location is feasible to build an ADU of up to 800 square feet on the property due to the presence of mature, healthy trees; utility infrastructure; utility, access, or other easements; natural resources, hillsides, wetlands, or riparian features; existing accessory structures of a permanent nature including garages, carports, site-built custom sheds or greenhouses, or workshops/studios; in-ground swimming pools or spas; or other features, as determined by the community development director. Features that are not grounds for an exception include above-ground swimming pools and spas, sport courts/equipment, play equipment, greenhouses/sheds from kits, garden beds, animal enclosures, antennae, decks, patios, tents/canopies, landscaping, storage areas, and other temporary and/or portable installations.
b. If it is determined that the only feasible location for an attached or detached ADU is between the primary dwelling’s front or street side façade and a public street, the following standards shall apply:
i. Maximum unit size of 800 square feet of gross floor area; 105 of 293
Attachment 4
ii. Minimum front and side setbacks of 4 feet;
iii. Height limit consistent with 6a below;
iv. May not be constructed on any utility or other easement, or within the Traffic Safety Visibility Area per CMC Section 17.30.040E.

6. Height and Setbacks.
a. All ADUs shall comply with the primary structure height and setback requirements of the underlying zoning district with the exception of those described below:

Type of ADU Minimum Setbacks Maximum height
Attached Four feet side and
rear
Twenty-five feet
Detached, within one
half-mile mile of SMART
station
Four feet side and
rear
Eighteen feet
Detached, on a property with
existing or proposed
multifamily, multistory
dwelling(s)
Four feet side and
rear
Eighteen feet
Detached Four feet side and
rear
Sixteen or Eighteen feet
No setback shall be required for a legally existing living space, garage, or accessory structure which is fully or partially converted to an ADU, or for a structure constructed in the same location and to the same dimensions as a legally existing living area, garage, or accessory structure which is fully or partially converted to an ADU. The maximum height for such structures shall be the greater of the existing height of the structure prior to conversion to an ADU, or the applicable height set forth in Section 17.42.170(B)(7)(a). b. Any ADU may be allowed up to an additional 2 feet in height to accommodate a roof pitch that is in alignment with that of the primary dwelling. c. No setback shall be required for a legally existing living space, garage, or accessory structure which is fully or partially converted to an ADU, or for a structure constructed in the same location and to the same dimensions as a legally existing living area, garage or accessory structure which is fully or partially converted to an ADU. The maximum height for 106 of 293
Attachment 4
such structures shall be greater of the existing height of the structure or the height set forth for each situation described above, in conformance with 6d below. d. All ADUs shall be limited to a height of two stories, with the exception of an interior ADU in an existing dwelling.

7. Size. ADUs shall be subject to the following requirements related to size:
a. ADUs on lots less than one-half acre in size shall be limited to the following maximum sizes:

Less than two
bedrooms
850 square feet of gross
floor area
Two or more
bedrooms
1,000 square feet of gross
floor area
b. ADUs on lots less than one-half acre in size may exceed the above maximum sizes following submittal of an application and approval of a discretionary design review application.
c. In no case shall any detached ADU exceed one thousand two hundred square feet in size. d. The gross floor area of an attached or interior ADU shall not exceed fifty percent of the existing gross floor area of an existing primary dwelling. (Although an 800 square foot ADU is allowed regardless of the size of the primary dwelling.) e. An ADU proposed through the conversion of an existing accessory structure must be built within the physical dimensions of that structure, with the exception of an expansion of up to one hundred and fifty square feet that is limited to the purpose of accommodating ingress and egress.
f. The minimum allowable gross floor area of an ADU shall be the minimum size permitted by the California Building Code, but in no case shall it preclude a minimum-sized efficiency unit.

C. Development Standards – JADUs

1. A JADU must be contained entirely within the walls of a proposed or existing single-family dwelling.

2. The size of a JADU shall not exceed 500 square feet of gross floor area. The gross floor area of a shared sanitation facility shall not be included in the maximum gross floor area of the unit.

3. A JADU must include its own entrance separate from that of the primary dwelling.

4. A JADU shall include an efficiency kitchen as defined in California Government Code Section 65852.22.
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Attachment 4

5. A JADU may include separate sanitation facilities, or may share sanitation facilities with the primary dwelling, if it has an interior entry to the shared sanitation facilities such that the resident does not need to go outside to access the facilities through an exterior entry.

6. A JADU shall not be offered for sale apart from the principal unit and shall be subject to a deed restriction as required by State ADU law.

7. For the purposes of any fire or life protection ordinance or regulation, a JADU shall not be considered a separate or new dwelling unit.

DD. Parking

1. Unless otherwise specified below, one on-site parking space shall be required for an attached or detached ADU. This parking space is in addition to those spaces required for the primary dwelling(s). On-site parking is not required for an ADU in any of the following instances:
a. The ADU is located within one-half mile walking distance of public transit. b. The ADU is located within an architecturally and historically significant historic district. c. The ADU is part of the proposed or existing primary dwelling or accessory structure. d. When on-street parking permits are required but not offered to the occupant of the ADU. e. When there is a car share vehicle located within one block of the ADU.

3. Design and development standards for parking for an ADU or JADU shall be consistent with CMC Section 17.36.090.

4. When a garage, carport, covered parking structure, or uncovered parking space is demolished or removed in conjunction with the construction of an ADU or is converted to an ADU, the parking space(s) or structure(s) eliminated are not required to be replaced.

5. There is no minimum parking requirement for a JADU.

Key Definitions
Attached ADU—An ADU that is constructed as a physical expansion (i.e., addition) of and shares a common wall with the primary dwelling unit.

Detached ADU—An ADU that is constructed as a separate structure from the primary dwelling unit.

Interior ADU—An ADU that is created within an existing structure.

JADU—An ADU that is no more than 500 square feet in size and contained fully within the primary dwelling unit.

Commented [NH1]: Delete parking requirements?
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Attachment 4
For additional definitions and more details, refer to CMC Chapter 17.90 Definitions and California Government Code Section 66313.

Note: This summary is not intended to replace or supersede any provisions of State ADU Law.

For full details, refer to California Government Code Sections 66310-66342, as may be amended from time to time, CMC Section 17.42.170.

Updated ______
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Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: AUTHORIZATION OF A DISCRETIONARY PAYMENT TO

CALPERS AND STATUS OF CITY PENSION PLANS
Date: December 10, 2024
Written by: Angela Courter, Director of Administrative Services Recommendation
It is recommended that the City Council receive a presentation, discuss options, and adopt a resolution authorizing an additional discretionary payment for amounts already included within the Fiscal Year 2024/25 budget.

Background
The City provides a defined-benefit pension to its retirees through the California Public Employees Retirement System (CalPERS) in lieu of a social security pension. Funding of CalPERS pensions relies on three sources: employee contributions, employer contributions, and investment returns. These three sources contribute to the City’s Market Value of Assets (MVA).

The MVA is then compared to the CalPERS actuarial determination of the Actuarial Accrued Liability (AAL) for all member agencies. The AAL is the actuarial projection of the total amount that CalPERS should currently have to cover promised benefits over time (accounting for anticipated investment earnings, expected future cost of living pay increases, future contributions of CalPERS members and member agencies, and various demographic assumptions such as life expectancy). If the AAL exceeds the MVA, the member agency’s “account” is in a deficit position and an Unfunded Accrued Liability (UAL) exists.

With each new CalPERS actuarial update, CalPERS creates a new UAL “layer “, which either adds UAL or credits the UAL owed, depending on the investment returns for that year. For these long-term financial projections, CalPERS uses 6.8% as the assumed rate of return on investments, otherwise known as the “discount rate.” If CalPERS over performs or underperforms this target, CalPERS will assign the loss or gain as additional UAL or a UAL credit in a layer for that year. If there is a loss, CalPERS will ramp up the full amortized payment for that loss over the first 5 years to soften the impact on the agency. During that time, the payments do not cover the full cost, so the agency is paying interest on the interest until the end of the 5-year ramp, adding significant additional cost over the term of the amortized Payments. 110 of 293
To address this issue, the City adopted a policy to evaluate pre-paying the interest up front to avoid compounding interest as well as leveling the amortization schedule, which generally increases costs to the City in the first 5 years but lowers the payments over the remaining 15 years. The policy also set a minimum of 80% funding level for UAL, with a future target of 90% Funded.

For the Fiscal Year Ending (FYE) June 30, 2021, CalPERS recorded investment earnings of

21.3% and therefore a credit actuarial base was added to the City’s pension plans, lowering the UAL balance. Subsequently for the FYE June 30, 2022, CalPERS reported an investment loss of 7% (net loss of 13.8% compared to the discount rate), adding back in new unfunded liability, and increasing the UAL balance. For the FYE June 30, 2023, CalPERS had investment earnings at

5.8%, which is less than the target discount rate of 6.8%, which created a loss actuarial base and increased UAL balance.

For FYE June 30, 2024, CalPERS announced an investment earnings estimate of 9.3% which exceeds the 6.8% target and creates a future UAL reduction. CalPERS will provide updated actuarial reports which account for the full adjustment for 2024, in Fall of 2025.

Historical Actions Taken to Address Increasing Costs
The City has taken several steps to address the CalPERS pension costs. These have included:
• Lower Benefit Tiers for Employees - Two new lower benefit tiers have been established with CalPERS:
o Tier 2 Employees hired in 2011-12 (depending on employee group) are required to pay the full employee contribution and have a lower retirement benefit. o Tier 3 was created in 2013 when the California Public Employees' Pension Reform Act (PEPRA) established a reduced tier of benefits for new CalPERS employees. • Annual prepayments to CalPERS - Since FY2015/16 the City has prepaid the annual Unfunded Accrued Liability payment at the beginning of each fiscal year to save over 3% annually, rather than letting the interest accrue over the course of the fiscal year. • Unfunded Pension Liability Policy – Creation of this policy guides City actions to address the outstanding UAL owed by the City, as discussed briefly above. This policy also included the establishment of a Section 115 Trust. • UAL Refinancing - In January of 2022, the City Council approved a refinancing strategy to contribute approximately $6,000,000 (six million dollars) to pay down the UAL and invest in street rehabilitation. The contributions included borrowing approximately $4.0 million in the form of a tax-exempt pension loan at 3.2% interest rate; as well as an additional $2.0 million cash contribution to CalPERS from reserves and on-going revenues.
• Additional Discretionary Payments to eliminate negative amortization - in March and July of 2024 the City contributed a combined amount of approximately $670,000 to reduce negative amortization on the 2022 actuarial bases.

Analysis/Discussion
City staff reviewed the CalPERS actuarial reports as of June 30, 2023. According to these reports, the City’s UAL has a combined underfunded balance of $7.7M, which equates to 83.1% funded. This is above the 80% minimum required for the Unfunded Pension Liability Policy, but under the target of 90% funded. This does not account for the City’s additional discretionary payment of $670,000 or the subsequent CalPERS earnings for FYE June 30, 2024. With those adjustments staff estimate the unfunded ratio to be closer to 85.3%. 111 of 293
CalPERS remains focused on the long-term performance of the fund. The total fund annualized returns for the five-year period ending June 30 stood at 6.6%, the 10-year period at 6.2%, the 20- year period at 6.7%, and the 30-year period at 7.7%.

Staff are recommending two phases to address the unfunded liability. • First for current implementation - staff recommend making an additional discretionary payment to CalPERS of $62,000 to eliminate the current year’s negative amortization on the 2023 base. If this action is taken along with the additional payment for the same amount in fiscal year 2025/26, the estimated future interest savings is approximately $77,000.
• Second, staff recommend evaluating the conversion of the 2022 bases from ramp up to level repayment, the second $62,000 ADP for the negative amortization for the 2023 base, and other discretionary payments during our strategic planning and budget meetings next year. Committing to leveling the amortization of the 2022 bases does affect current cash availability in the short term, so this must be balanced against operational and capital needs as we develop the future budgets.

Financial Considerations
The Council’s actions have allowed the City to meet the policy minimum requirements with an actuarial funded balance for 2023 of 83.1% and estimated actual funded balance for 2024 of

85.3%. Applying the strategy proposed would continue to maintain the City’s funded status within the policy objectives.

This proposed ADP for the current fiscal year would not require a budget amendment but require council approval for payment authorization.

Future fiscal year actions for applying additional discretionary payments, as well as leveling the amortization of the UAL bases, will be explored by staff, and presented to City Council during the budget development meetings. Delaying this decision allows for direct analysis of the cost benefit against other competing budget demands.

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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RESOLUTION NO. (XX)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COTATI

AUTHORIZING AN ADDITIONAL DISCRETIONARY PAYMENT

CONTRIBUTIONS TOWARD CALPERS PLAN PENSION LIABILITIES
WHEREAS, the City has adopted a financial policy for unfunded pension liability requiring an Annual Review of the CalPERS Actuarial Valuation Reports and Associated Tasks; and
WHEREAS, staff facilitated the annual review, and even though the funded status meets the minimum 80% funded ratio with a funding ration of 83.1% at FYE 2023, staff proposes to take an initial step to address the unfunded pension losses by funding and remitting an additional discretionary payment in the amount of $62,000 to fund the outstanding interest due on the 2023 UAL as incurred for the period covering fiscal year 2023/24, and WHEREAS, steps to address the remaining 2022 CalPERS loss, including payment of the outstanding 2022 UAL interest incurred for fiscal year 2023/24 and the re-amortization of the loss basis removing the negative amortization, will be evaluated with Council during budget study sessions for fiscal year 2025/26, and
WHEREAS, the City maintains sufficient funds within its unallocated General Fund, Water Fund and Sewer Fund Balance to contribute toward each funds a proportionate share of the long-term liability.

NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Cotati does hereby approve the following:

1. Authorize the transfer of one-time funds to CalPERS to be applied to the pension plans as outlined for FYE 2024 in Table 10 of the Pension Liability Update Report, indicated below.
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2. Authorize the City Manager or their designee to sign any approvals to complete the transaction requirements to apply the payments to the outstanding interest balance due to the 2023 CalPERS loss in coordination with Ridgeline.

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 December 10, 2024, by the following vote, to wit:

TECHNICAL MEMORANDUM
To: Ms. Angela Courter, City of Cotati
Mr. Damien O’Bid, City of Cotati
From: Dmitry Semenov, Ridgeline Municipal Strategies, LLC Date: November 21, 2024
Re: 2024 Pension Liability Review; Ridgeline #23035

INTRODUCTION
Per your request, Ridgeline Municipal Strategies, LLC (Ridgeline) has performed a review of the Unfunded Accrued Liability (UAL) that the City of Cotati (City) has outstanding with the California Public Employees' Retirement System (CalPERS). This technical memorandum documents the results of the review and suggested actions that the City could take to reduce its future UAL costs.

Recommended for Implementation:
• Elimination of negative amortization for the 2023 UAL (estimated to save the City approximately $77,000).

Recommended for Consideration Based on Overall Budget Outlook:
• Reamortize the remaining balance on the 2022 UAL from ramp-up to level payments (savings will vary depending on the selected option). • Additional discretionary payments to repay the 2023 UAL faster to generate additional savings on the UAL interest.

CITY’S PENSION PLANS AND UNFUNDED ACCRUED LIABILITY
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City provides pension benefits to its employees and retirees through six pension plans with CalPERS. As of 06/30/2023 (the most recent official information available as of the date of this memorandum), the plans had a total actuarial accrued liability (the estimated amount necessary, as of the valuation date, to fund all earned pension benefits for current employees, retirees, and beneficiaries) of approximately $45.5 million, held approximately $37.8 million in assets, and its plans were underfunded by approximately $7.7 million. The pension plans were 83.1% funded, as summarized in Table 1 below.

Source: CalPERS’ Actuarial Valuation Report as of June 30, 2023 All six pension plans are underfunded, but the Classic Miscellaneous Tier 1 and Classic Safety Tier 1 represent 89% of the underfunded amount.

In January 2021, the City issued a pension obligation refunding loan and a street improvements financing loan (UAL Refunding Loans) that allowed it to pay down the UAL by $6,000,000. After the UAL refunding, the City had to make relatively small UAL payments to CalPERS on the UAL that remained outstanding after the refunding at the time, as well as payments on the two loans. Since the loan interest rates are significantly lower than the interest rate charged by CalPERS, the refunding allowed the City to generate approximately $2.25 million in cash flow savings.

Pension Plan
Total
Accrued
Liability
M arket
Value of
Assets
Unfunded
Accrued
Liability
%
Funded
M iscellaneous $21,890,933 $18,174,505 $3,716,428 83.0% Safety $17,385,012 $14,246,820 $3,138,192 81.9%
Safety 2nd Tier $1,158,739 $999,177 $159,562 86.2%
M isc 2nd Tier $1,568,922 $1,347,802 $221,120 85.9%
PEPRA Safety $1,825,557 $1,564,410 $261,147 85.7%
PEPRA M isc $1,688,177 $1,476,552 $211,625 87.5%
TOTAL $45,517,340 $37,809,266 $7,708,074 83.1%
City of Cotati
Table 1
Pension Plans Summary
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Subsequently, CalPERS’ investment underperformance and reconciliation adjustments in FYEs 2022 and 2023 resulted in new UAL increases.

Following the CalPERS investment loss of 2022, the City made two Additional Discretionary Payments (“ADP”) in March and July of 2024 in the combined amount of approximately $670,000 to reduce negative amortization on the 2022 actuarial bases. 117 of 293
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Graph 1 shows the recent and future UAL and UAL refunding loan amortization schedule. This schedule DOES NOT include the ADPs made by the City, as it illustrates the official CalPERS 2023 amortization schedule generated before the ADPs were made.

Graph 1
City of Cotati
Current UAL and UAL Refunding Loan Amortization Schedule ($000s) 118 of 293
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2024 Pension Liability Review – 11/21/2024

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Source: CalPERS’ Actuarial Valuation Report as of June 30, 2023 and UAL Refunding Loans Amortization Schedule 119 of 293
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CALPERS INVESTMENT PERFORMANCE FOR FYE 2023 and FYE 2024 For FYE 2023, CalPERS generated an investment return of 5.8%, which fell below the target of 6.8%. This resulted in a small UAL increase.

CalPERS recently announced its FYE 2024 investment earnings estimate of 9.3%, which exceeds the 6.8% target. This will result in a welcomed UAL reduction. Graph 2 below shows the history of CalPERS’ annual investment returns.

Graph 2
City of Cotati
History of CalPERS’ Annual Investment Returns, FYE 1993-2024 Source: CalPERS
The average annual investment returns as reported by CalPERS are as follows:
• 5 years: 6.6%
• 10 years: 6.2%
• 20 years: 6.7%
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• 30 years: 7.7%
The average returns indicate that historically CalPERS has been able to achieve the longterm investment target rate of 6.8% (the current discount rate). CalPERS has been lowering the target rate over the last decades. It appears that the current target rate favorably corresponds to the past performance. However, past performance is not a guarantee of future results.

SUMMARY OF FYE 2023 UAL INCREASES
For FYE 2023, CalPERS added two new actuarial bases to each of the City’s six pension plans:
• The Investment Loss base increased the UAL to account for the investment underperformance of 1.0%, compared to the 6.8% discount rate. • The Non-Investment Loss base is the annual reconciliation to account for the differences between the actuarial assumptions and the actual plan experience for the year. This base increased the UAL reportedly due to the larger than expected salary increases and pension COLA increases within the pension pool.

Table 2 summarizes the impacts of these two bases on the City’s UAL.

Pension Plan
Investment
Loss
N onInvestment
Loss
Total UAL
Increase
M iscellaneous $118,075 $337,615 $455,690
Safety $93,413 $227,877 $321,290
Safety 2nd Tier [1] $30,677 $0 $30,677
M isc 2nd Tier $8,751 $24,197 $32,948
PEPRA Safety $10,250 $23,929 $34,179
PEPRA M isc $9,584 $26,036 $35,620
TOTAL $270,750 $639,654 $910,404
[1] Investment Loss includes total net UAL increase.

Table 2
City of Cotati
FYE 2023 UAL Increase Factors
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Source: CalPERS
While prior experience indicates that investment market downturns similar to what took place in FYE 2022 are followed by market recoveries, the FYE 2023 investment performance and the CalPERS’ historical investment returns suggest that a quick elimination of the 2022 UAL is unlikely and the City may want to consider additional steps to reduce the long-term interest costs associated with the new UAL. Recommended pension cost reduction strategies are discussed below.

IMPACT OF FYE 2024 CALPERS’ INVESTMENT PERFORMANCE ON THE CITY To assess the impact of CalPERS’ FYE 2024 investment performance on the funded status of pension plans, it is important to remember that to maintain an unchanged funded ratio, among other things, CalPERS needs to achieve an investment gain equal to the discount rate, which is currently 6.8%. Any time that the investment returns are below the discount rate, the funded level of the pension plans decreases and an additional UAL is created.

Conversely, whenever the investment returns are above the discount rate, the funded level increases and the UAL amount is reduced.

The 9.3% investment return translates into a 2.5% funding surplus (the difference between the 6.8% discount rate and the 9.3% estimated investment return). This surplus is estimated to reduce the City’s UAL by approximately $945,000.

Table 3 below shows the 2024 investment performance impact estimates for each of the City’s pension plans.
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Source: Ridgeline
The investment underperformance impact is estimated based on the FYE 2022 market value of assets within each pension plan multiplied by 2.5%. CalPERS may make additional adjustments and reconciliations to account for actual vs. projected plan experience and any methodology changes.

CITY’S NORMAL COST RATES
In addition to the new UAL, the City should also be aware that its Normal Costs are increasing as follows for the fiscal year 2025-26:
• Classic Miscellaneous Tier 1 Plan: by 0.07% of salaries (from 16.02% to 16.09%) for the City, while remaining unchanged for the employees;
• Classic Miscellaneous Tier 2 Plan: by 0.05% of salaries (from 10.71% to 10.76%) for the City, and by 0.01% of salaries (from 6.93% to 6.94%) for the employees; • PEPRA Miscellaneous Plan: by 0.09% of salaries (from 7.87% to 7.96%) for the City, while remaining unchanged for the employees;
• Classic Safety Tier 1 Plan: by 0.05% of salaries (from 25.86% to 25.91%) for the City, while remaining unchanged for the employees;
• Classic Safety Tier 2 Plan: by 0.06% of salaries (from 20.09% to 20.15%) for the City, while remaining unchanged for the employees;
Pension Plan
Estimated 2024
UAL Credit
M iscellaneous ($454,000)
Safety ($356,000)
Safety 2nd Tier ($25,000)
M isc 2nd Tier ($34,000)
PEPRA Safety ($39,000)
PEPRA M isc ($37,000)
TOTAL ($945,000)
Table 3
City of Cotati
Estimated 2024 Investment Performance Impact
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• PEPRA Safety Plan: by 0.23% of salaries (from 13.76% to 13.99%) for the City, while remaining unchanged for the employees.

CITY’S ESTIMATED FYE 2024 PENSION PLAN FUNDED LEVELS
CalPERS will publish the 06/30/2024 actuarial reports for the City in or around August 2025. The reports will reflect any changes that have taken place during the fiscal year, including the investment performance, the City’s and its employees’ contributions, including the ADPs made by the City to reduce negative amortization, benefit payments to plan beneficiaries, and any adjustments made by CalPERS to reconcile the actual vs. projected plan experience and to account for any actuarial methodology changes.

While the reconciliation and methodology adjustments are unknown at this time, Ridgeline has developed an estimate of the other changes, including the FYE 2024 ADPs, which are summarized in Table 4 below.

Sources: CalPERS, Ridgeline
Description M isc Plan Safety Plan Total
M arket Value of Assets
2023 Balance $18,175,000 $14,247,000 $32,422,000
Normal Cost Contribution $139,000 $81,000 $220,000
UAL Payment $193,000 $171,000 $364,000
ADP $159,000 $131,000 $290,000
Investment Gain / (Loss) $1,690,000 $1,325,000 $3,015,000 Benefit Payments ($1,310,000) ($1,050,000) ($2,360,000) Estimated 2024 Balance $19,046,000 $14,905,000 $33,951,000 Unfunded Accrued Liability
2023 Balance $3,716,000 $3,138,000 $6,854,000
UAL Payment ($193,000) ($171,000) ($364,000)
Interest $253,000 $213,000 $466,000
ADP ($159,000) ($131,000) ($290,000)
Investment (Gain) / Loss ($454,000) ($356,000) ($810,000) Estimated 2024 Balance $3,163,000 $2,693,000 $5,856,000 Pension Plan 2024 Funded Level 85.8% 84.7% 85.3%
City of Cotati
2024 Pension Plan Funded Level Estimate
Rounded to '000s
Table 4
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Due to the relatively small current UAL balances of the Tier 2 and PEPRA Plans, they have been omitted from the calculations.

It should be emphasized that the amounts calculated in Table 4 are estimates only and can only be finalized once CalPERS publishes the 06/30/2024 actuarial reports in August 2025.

The Normal Cost contributions, UAL payments (including the ADPs), and benefit payments estimates were generated by CalPERS. The investment gain / loss and UAL interest estimates were generated by Ridgeline.

It is estimated that the City’s Classic Miscellaneous and Safety Tier 1 plans were approximately 85% funded as of 06/30/2024, before any additional adjustments that could be made by CalPERS.

Concurrently with the issuance of the UAL Refunding Loans, the City adopted an Unfunded Accrued Liability Management Policy, which calls for the City to maintain a target pension plan funded level objective of 90%. The City is below this threshold.

AMORTIZATION OF UAL CREDIT
The 2024 UAL credit will be amortized over a 20-year period with a 5-year ramp-up. The first application of the credit will take place in FYE 2027 (July 2026).

The amortization schedule is based on the estimated 2024 UAL base balances shown in Table 3 above.

Graph 3 illustrates how the UAL credit will impact the City’s UAL repayment structure for the two Classic Tier 1 plans.
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Graph 3
City of Cotati
UAL Repayment with 2024 Projected Base Amortization ($000s) Source: CalPERS’ Actuarial Valuation Report as of June 30, 2023, UAL Refunding Loans Amortization Schedule, Ridgeline 126 of 293
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Table 5 provides the annual detailed estimate of the existing UAL amortization, the UAL Refunding Loans repayments, and the new UAL amortization schedule.

Source: UAL Refunding Loans Amortization Schedule, Ridgeline POB Street Loan Existing
UAL
2024 UAL POB Street Loan Existing
UAL
2024 UAL Total D ebt
Service UAL Total
2023 $197,540 $73,354 $218,709 $0 $489,603 $150,855 $56,018 $190,922 $0 $397,796 $477,768 $409,631 $887,399 2024 $197,539 $73,354 $192,898 $0 $463,791 $150,855 $56,018 $170,871 $0 $377,744 $477,766 $363,769 $841,535 2025 $197,541 $73,354 $235,892 $0 $506,787 $150,856 $56,018 $207,336 $0 $414,210 $477,769 $443,228 $920,997 2026 $197,542 $73,354 $278,121 $0 $549,018 $150,857 $56,018 $236,464 ($8,728) $434,611 $477,772 $505,857 $983,628 2027 $197,540 $73,354 $290,822 ($11,131) $550,585 $150,855 $56,018 $246,497 ($17,456) $435,914 $477,767 $508,732 $986,499 2028 $197,539 $73,354 $303,525 ($22,262) $552,156 $150,854 $56,018 $256,532 ($26,185) $437,220 $477,766 $511,611 $989,376 2029 $197,541 $73,354 $353,487 ($33,393) $590,989 $150,856 $56,018 $297,340 ($34,913) $469,301 $477,769 $582,522 $1,060,291 2030 $197,540 $73,354 $356,383 ($44,524) $582,754 $150,855 $56,018 $299,630 ($43,641) $462,863 $477,768 $567,848 $1,045,616 2031 $197,543 $73,354 $356,383 ($55,654) $571,625 $150,857 $56,018 $299,630 ($43,641) $462,864 $477,772 $556,718 $1,034,490 2032 $197,537 $73,354 $356,382 ($55,654) $571,619 $150,853 $56,018 $299,630 ($43,641) $462,860 $477,763 $556,717 $1,034,480 2033 $197,541 $73,354 $356,383 ($55,654) $571,624 $150,856 $56,018 $299,628 ($43,641) $462,861 $477,769 $556,716 $1,034,485 2034 $197,542 $73,354 $356,382 ($55,654) $571,623 $150,856 $56,018 $299,632 ($43,641) $462,866 $477,771 $556,719 $1,034,489 2035 $197,539 $73,354 $356,381 ($55,654) $571,620 $150,855 $56,018 $299,631 ($43,641) $462,863 $477,766 $556,717 $1,034,483 2036 $197,539 $73,354 $356,384 ($55,654) $571,622 $150,854 $56,018 $299,630 ($43,641) $462,861 $477,765 $556,719 $1,034,484 2037 $197,540 $73,354 $356,383 ($55,654) $571,623 $150,855 $56,018 $299,630 ($43,641) $462,863 $477,768 $556,718 $1,034,486 2038 $0 $73,354 $356,381 ($55,654) $374,081 $0 $56,018 $299,631 ($43,641) $312,008 $129,372 $556,717 $686,089 2039 $0 $73,354 $356,383 ($55,654) $374,083 $0 $56,018 $299,632 ($43,641) $312,009 $129,372 $556,720 $686,092 2040 $0 $73,354 $356,380 ($55,654) $374,080 $0 $56,018 $299,628 ($43,641) $312,005 $129,372 $556,713 $686,085 2041 $0 $73,354 $356,381 ($55,654) $374,081 $0 $56,018 $299,633 ($43,641) $312,010 $129,372 $556,719 $686,091 2042 $0 $73,354 $356,382 ($55,654) $374,082 $0 $56,018 $299,629 ($43,641) $312,006 $129,372 $556,716 $686,088 2043 $0 $0 $125,050 ($55,654) $69,396 $0 $0 $101,217 ($43,641) $57,576 $0 $126,972 $126,972 2044 $0 $0 $361,627 ($166,963) $194,664 $0 $0 $286,680 ($130,923) $155,757 $0 $350,421 $350,421 TOTAL $2,963,105 $1,467,082 $6,993,099 ($1,001,781) $10,421,505 $2,262,830 $1,120,365 $5,889,053 ($829,178) $8,443,069 $7,813,381 $11,051,193 $18,864,574 D ebt Service UAL
Table 5
City of Cotati
Estimated UAL Amortization Schedule - CalPERS
FYE
M iscellaneous Plan Safety Plan Total
D ebt Service UAL
Total
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The debt service allocation to the Miscellaneous and Safety plans is made based on the UAL balances that were paid down through the issuance of the UAL Refunding Loans (see Table 6 below).

Source: UAL Refunding Loans Amortization Schedule
The 2024 UAL credit amortization is estimated based on the net UAL balance for each plan.

PENSION COST OPTIMIZATION STRATEGIES
Concurrently with the issuance of the UAL Refunding Loans, the City adopted the UAL Management Policy, which provides guidance on how the City should approach managing future UAL.

In addition to following the historical practice of prepaying the UAL payments by July 31 of each year, in FYEs 2024 and 2025, the City made ADPs to address negative amortization.

If the City wants to accelerate achieving the target funded level stated in the UAL Management Policy, it may want to consider the following additional actions:
• Strategy A: Eliminate negative amortization on the 2023 actuarial bases. • Strategy B: Convert the 2022 actuarial bases from ramp-up to level repayment structure.
• Strategy C: Make additional discretionary contributions in excess of those necessary to cover the negative amortization.

Description
UAL
Paydown
%
Miscellaneous Plan UAL Payoff $3,402,000 56.70%
Safety Plan UAL Payoff $2,598,000 43.30%
Total $6,000,000 100.00%
Table 6
City of Cotati
Debt Service Allocation
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Since the 2024 investment performance resulted in a UAL credit, no ADP is necessary for the investment performance base. Once the 2024 actuarial report is published in August of 2025, the City may want to consider an ADP if there are UAL increases due to other adjustments made by CalPERS.

Strategy A: Eliminate Negative Amortization on 2023 Bases One of the key factors that contributed to the historical growth of UAL and associated pension costs for agencies covered by CalPERS was the negative amortization within pension plans.

The standard CalPERS practice does not require agencies to make any payments on new UAL for the first two years. After that the new UAL is amortized over a 20-year term with a 5-year ramp-up period to the full payment amount.

During the ramp-up period, the payments increase by 20% of the full payment amount each year. In other words, the first year’s payment amount is only 20% of the full payment, the second year’s payment amount is 40% of the full payment, etc.

However, the new UAL starts accruing interest at 6.8% (the discount rate) as soon as it is added to the plan.

Thus, the CalPERS standard UAL amortization practice results in negative amortization for each pension plan that does not take proactive steps.

Negative amortization occurs whenever the debt payment for any period is less than the interest charged over that period so that the outstanding balance of the debt increases.

In each year when the City’s UAL payments on any given actuarial UAL base are less than the interest accrued on that base, the base’s balance increases. In the following year, the interest is accrued on the higher balance.

Under the current CalPERS amortization rules, each agency finds itself in the negative amortization situation for the first four years after new UAL is incurred. In year 5, the required payment amount is just slightly higher than the interest amount for the year, which translates into essentially an interest-only payment. It is only in year 6 that the UAL starts being paid down.
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This leads to significantly higher interest costs for the CalPERS member agencies.

Elimination of negative amortization is a recommended practice. It is achieved in two steps.

1. Additional discretionary payments (ADPs) in the two years following the creation of new UAL to cover accrued interest.

The ADP amount is calculated by multiplying the new UAL amount by 6.8%.

These payments can be made as early as in the 13th and 25th months following the end of the fiscal year in which the new UAL was created. For the 2023 actuarial UAL bases, such ADPs can be made as early as July 2024 and July 2025.

To make these payments, you have to contact your CalPERS actuary 2-3 weeks prior to making the payments. You need to inform the actuary that you would like to make an ADP to cover the interest on the 2023 Investment Loss base and to instruct the actuary to apply the ADP to the 2023 Investment Loss base.

The actuary will then set up a receivable in the system that will allow you to make the payment through the City’s MyCalPERS portal.

These actions should be taken after July 1, 2024 (for the 2023 UAL bases), after the fiscal year is closed, and need to be repeated the next year as well.

With the City’s 2023 UAL additions of approximately $456,000 for the Miscellaneous Plan and $321,000 for the Safety Plan, the ADPs are estimated to be as following:
o Miscellaneous Plan: $31,000 in each FYE 2025 and 2026 o Safety Plan: $22,000 in each FYE 2025 and 2026

2. Convert new UAL bases from ramp-up to level amortization schedule.

This request should be made to the City’s CalPERS actuary after the negative amortization ADPs have been made. As a result of the request, the City’s UAL payments will be recalculated from the ramp-up to level repayment schedule. The first payment will still be due in FYE 2026 (July 2025) for the 2023 bases. 130 of 293
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Table 7 illustrates the implementation of this strategy. The estimated savings from the elimination of the negative amortization on the 2023 actuarial bases is approximately $77,000.
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Original
Ramp-Up
Level Original
Ramp-Up
Level Original
Ramp-Up
Level Original
Ramp-Up
Level
2023 $0 $6,400 $0 $15,500 $0 $8,000 $0 $23,000
2024 $0 $6,400 $0 $15,500 $0 $8,000 $0 $23,000
2025 $2,290 $8,672 $23,373 $21,176 $2,895 $10,978 $34,629 $31,367 2026 $4,580 $8,672 $23,373 $21,176 $5,790 $10,978 $34,629 $31,367 2027 $6,870 $8,672 $23,373 $21,176 $8,685 $10,978 $34,629 $31,367 2028 $9,160 $8,672 $23,373 $21,176 $11,580 $10,978 $34,629 $31,367 2029 $11,450 $8,672 $23,373 $21,176 $14,475 $10,978 $34,629 $31,367 2030 $11,450 $8,672 $23,373 $21,176 $14,475 $10,978 $34,629 $31,367 2031 $11,450 $8,672 $23,373 $21,176 $14,475 $10,978 $34,629 $31,367 2032 $11,450 $8,672 $23,373 $21,176 $14,475 $10,978 $34,629 $31,367 2033 $11,450 $8,672 $23,373 $21,176 $14,475 $10,978 $34,629 $31,367 2034 $11,450 $8,672 $23,373 $21,176 $14,475 $10,978 $34,629 $31,367 2035 $11,450 $8,672 $23,373 $21,176 $14,475 $10,978 $34,629 $31,367 2036 $11,450 $8,672 $23,373 $21,176 $14,475 $10,978 $34,629 $31,367 2037 $11,450 $8,672 $23,373 $21,176 $14,475 $10,978 $34,629 $31,367 2038 $11,450 $8,672 $23,373 $21,176 $14,475 $10,978 $34,629 $31,367 2039 $11,450 $8,672 $23,373 $21,176 $14,475 $10,978 $34,629 $31,367 2040 $11,450 $8,672 $23,373 $21,176 $14,475 $10,978 $34,629 $31,367 2041 $11,450 $8,672 $23,373 $21,176 $14,475 $10,978 $34,629 $31,367 2042 $11,450 $8,672 $23,373 $21,176 $14,475 $10,978 $34,629 $31,367 2043 $11,450 $8,672 $23,373 $21,176 $14,475 $10,978 $34,629 $31,367 2044 $11,450 $8,672 $23,373 $21,176 $14,475 $10,978 $34,629 $31,367 Total Pmts $206,100 $186,234 $467,460 $454,518 $260,550 $235,568 $692,580 $673,334 Interest $112,687 $92,821 $349,385 $336,443 $142,475 $117,493 $574,505 $555,259 Savings $19,866 $12,942 $24,982 $19,246 $77,036
Source: CalPERSand Ridgeline
Total
Savings
Table 7
City of Cotati
2023 Negative Amortization Elimination Analysis
FYE
Safety Tier 1 Investment
Loss Base
M iscellaneous Tier 1 NonInvestment Loss BaseSafety Tier 1 NonInvestment Loss BaseM iscellaneous Tier 1 Investment Loss Base
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Strategy B: Convert 2022 Bases from Ramp-up to Level Repayment The City can ask CalPERS to convert the 2022 Investment Loss actuarial bases from the ramp-up to a level repayment schedule.

There are two scenarios that the City can request:
a. No Negative Amortization – Under this scenario, the City can request to make lower payments in FYEs 2026, 2027, and 2028, before converting to a level payment. The lower payments in the first three years are sufficient to cover the interest amount accrued during the year and also contribute some funds for the repayment of the principal amount. CalPERS usually does not allow revised payments that are below the original amortization schedule.

Under this scenario, the City will be able to save approximately $285,000 for the Safety Tier 1 plan and $347,000 for the Miscellaneous Tier 1 plan over the 20- year repayment period of the bases, compared to the original amortization schedule.
b. Level Payment – Under this scenario, the City can request to make the same payment throughout the remaining term of the amortization schedule.

Under this scenario, the City will be able to save approximately $354,000 for the Safety Tier 1 plan and $433,000 for the Miscellaneous Tier 1 plan over the 20- year repayment period of the bases, compared to the original amortization schedule.

Table 8 compares the payment amounts under the original amortization schedule, the current amortization schedule after factoring in the ADPs and the FYE 2025 UAL payments that have already been made, and the two scenarios described above. 134 of 293
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Original
Ramp-Up
Revised
Ramp-Up
No Negative
Am
Level Original
Ramp-Up
Revised
Ramp-Up
No Negative
Am
Level
2023 $0 $0 $0 $0 $0 $0 $0 $0
2024 $0 $113,880 $113,880 $113,880 $0 $139,160 $139,160 $139,160 2025 $41,059 $154,939 $154,939 $154,939 $50,174 $189,334 $189,334 $189,334 2026 $82,118 $72,240 $116,000 $161,700 $100,348 $88,280 $141,000 $197,600 2027 $123,177 $108,360 $124,000 $161,700 $150,522 $132,420 $151,000 $197,600 2028 $164,236 $144,480 $165,000 $161,700 $200,696 $176,560 $201,000 $197,600 2029 $205,295 $180,600 $171,000 $161,700 $250,870 $220,700 $209,200 $197,600 2030 $205,295 $180,600 $171,000 $161,700 $250,870 $220,700 $209,200 $197,600 2031 $205,295 $180,600 $171,000 $161,700 $250,870 $220,700 $209,200 $197,600 2032 $205,295 $180,600 $171,000 $161,700 $250,870 $220,700 $209,200 $197,600 2033 $205,295 $180,600 $171,000 $161,700 $250,870 $220,700 $209,200 $197,600 2034 $205,295 $180,600 $171,000 $161,700 $250,870 $220,700 $209,200 $197,600 2035 $205,295 $180,600 $171,000 $161,700 $250,870 $220,700 $209,200 $197,600 2036 $205,295 $180,600 $171,000 $161,700 $250,870 $220,700 $209,200 $197,600 2037 $205,295 $180,600 $171,000 $161,700 $250,870 $220,700 $209,200 $197,600 2038 $205,295 $180,600 $171,000 $161,700 $250,870 $220,700 $209,200 $197,600 2039 $205,295 $180,600 $171,000 $161,700 $250,870 $220,700 $209,200 $197,600 2040 $205,295 $180,600 $171,000 $161,700 $250,870 $220,700 $209,200 $197,600 2041 $205,295 $180,600 $171,000 $161,700 $250,870 $220,700 $209,200 $197,600 2042 $205,295 $180,600 $171,000 $161,700 $250,870 $220,700 $209,200 $197,600 2043 $205,295 $180,600 $171,000 $161,700 $250,870 $220,700 $209,200 $197,600 2044 $205,295 $180,600 $171,000 $161,700 $250,870 $220,700 $209,200 $197,600 Total Pmts $3,695,310 $3,483,499 $3,409,819 $3,341,119 $4,515,660 $4,256,954 $4,168,694 $4,082,894 Interest $2,020,601 $1,808,790 $1,735,110 $1,666,410 $2,469,190 $2,210,484 $2,122,224 $2,036,424 Savings $211,811 $285,491 $354,191 $258,706 $346,966 $432,766 Source: CalPERSand Ridgeline
Table 8
City of Cotati
2022 Investment Loss Base Reamortization Scenarios
Safety Tier 1 Repayment Scenarios M iscellaneous Tier 1 Repayment Scenarios FYE
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Strategy C: Additional Discretionary Contributions
To further lower the UAL interest costs, the City may want to consider making additional ADPs to reduce its UAL balances. This decision should be made in light of the overall City’s fiscal situation, including reserve balances, capital improvement projects, cash flow management, City Council’s vision and direction, etc.

The additional ADPs would also allow the City to quicker achieve its target 90% pension plan funded ratio, as documented in the UAL Management Policy. Table 8 shows that to achieve the target funded ratio, the City would need to make an ADP of approximately $1.6 million (after the FYE 2025 ADP that has already been made). Given the recent investment market volatility and the prior history of market recoveries that follow market downturns, the City may want to postpone making additional ADPs to see if market gains transpire to further offset a portion of the 2022 UAL.

Source: Ridgeline
CONCLUSION and RECOMMENDATIONS
Proactive pension liability management practices are essential for keeping the City’s future UAL balances and the associated interest costs under control.

Recommended for Implementation: Strategy A
Description Amount Comments
Estimated 2024 MVA $33,951,000 See Table 4
Estimated 2024 UAL $5,856,000 See Table 4
Estimated 2024 Total Accrued Liability $39,807,000
Estimated 2023 Funded Level 85.3% See Table 4
90% Funded Level Amount $35,826,000
ADP Required to Achieve 90% Funded Level $1,875,000
Less: FYE 2025 ADPs Already M ade ($290,000)
Remaining ADP to Achieve 90% Funded Level $1,585,000
Table 9
City of Cotati
Funded Ratio Target Estimate
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Strategy A is a low-hanging fruit and does not a require a significant investment of City funds. It is recommended that it is implemented to achieve long-term cash flow savings.

To cover the interest on the FYE 2023 actuarial bases, the following ADPs are recommended:

Source: Ridgeline
To make these ADPs, the City should request the following receivables to be set up by CalPERS:

Pension Plan
FYE 2024
Interest
FYE 2025
Interest
FYE 2026
Interest
M iscellaneous $31,000 $31,000 $0
Safety $21,900 $21,900 $0
Safety 2nd Tier $2,100 $2,100 $0
M isc 2nd Tier $2,200 $2,200 $0
PEPRA Safety $2,300 $2,300 $0
PEPRA M isc $2,500 $2,500 $0
TOTAL $62,000 $62,000 $0
Table 10
City of Cotati
Summary of Current Interest ADPs
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Recommended for Consideration Based on Overall Budget Outlook Strategies B and C require a much larger commitment of the City’s funds. It is recommended that these strategies be considered in the context of the overall budget outlook to balance the goal of achieving long-term cash flow savings with the on-going fiscal resiliency of the City’s reserves.

If you have any questions about this technical memorandum or suggested strategies, do not hesitate to contact us.

Pension Plan
2023
Investment
Loss Base
2023 N onInvestment
Loss Base
Total
M iscellaneous $8,000 $23,000 $31,000
Safety $6,400 $15,500 $21,900
Safety 2nd Tier $2,100 n/ a $2,100
M isc 2nd Tier $600 $1,600 $2,200
PEPRA Safety $700 $1,600 $2,300
PEPRA M isc $700 $1,800 $2,500
TOTAL $18,500 $43,500 $62,000
City of Cotati
FYE 2025 CalPERS AD P Receivables
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Municipal Advisory | Pension Optimization | Financial Planning 140 of 293
City of Cotati – UAL Update with 2024 Results 12/10/2024 2 CalPERS UAL Refunding Overview
• Jan 2022 – City closed on Pension Obligation and Street Improvement Loans • The closing took place right before an unprecedented run up in interest rates • Loan proceeds provided funds (incl. freed up reserves) to pay down CalPERS UAL by $6M and saved the City ≈ $2.25M
• Recent CalPERS Performance:
• FYE 2022 investment loss of 7%
• FYE 2023 investment gain of 5.8% (1% below 6.8% discount rate) • FYE 2024 estimated investment gain of 9.3% (2.5% above 6.8% discount rate) 141 of 293
City of Cotati – UAL Update with 2024 Results 12/10/2024 3 06/30/2023 Pension Plans Overview
Source: 06/30/2023
CalPERS Actuarial
Reports
Pension Plan
Total
Accrued
Liability
Market Value
of Assets
Unfunded
Accrued
Liability
%
Funded
Miscellaneous $21,890,933 $18,174,505 $3,716,428 83.0%
Safety $17,385,012 $14,246,820 $3,138,192 81.9%
Safety 2nd Tier $1,158,739 $999,177 $159,562 86.2%
Misc 2nd Tier $1,568,922 $1,347,802 $221,120 85.9%
PEPRA Safety $1,825,557 $1,564,410 $261,147 85.7%
PEPRA Misc $1,688,177 $1,476,552 $211,625 87.5%
TOTAL $45,517,340 $37,809,266 $7,708,074 83.1%
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City of Cotati – UAL Update with 2024 Results 12/10/2024 4 2024 Funded Level Estimate (Rounded)
All 2024 numbers are
estimates and may vary
Source: 06/30/2023
CalPERS Actuarial
Reports
Description Misc Plan Safety Plan Total
Market Value of Assets
2023 Balance $18,175,000 $14,247,000 $32,422,000
Normal Cost Contribution $139,000 $81,000 $220,000
UAL Payment $193,000 $171,000 $364,000
ADP $159,000 $131,000 $290,000
Investment Gain / (Loss) $1,690,000 $1,325,000 $3,015,000 Benefit Payments ($1,310,000) ($1,050,000) ($2,360,000) Estimated 2024 Balance $19,046,000 $14,905,000 $33,951,000 Unfunded Accrued Liability
2023 Balance $3,716,000 $3,138,000 $6,854,000
UAL Payment ($193,000) ($171,000) ($364,000)
Interest $253,000 $213,000 $466,000
ADP ($159,000) ($131,000) ($290,000)
Investment (Gain) / Loss ($454,000) ($356,000) ($810,000) Estimated 2024 Balance $3,163,000 $2,693,000 $5,856,000 Pension Plan 2024 Funded Level 85.8% 84.7% 85.3% 143 of 293 City of Cotati – UAL Update with 2024 Results 12/10/2024 5 2023 UAL + POB Amortization Schedule
Historical Payments
Sources: 06/30/2023
CalPERS Actuarial
Reports and Loan
Amortization Schedules
UAL and Debt Service
Payments only – no
normal cost
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City of Cotati – UAL Update with 2024 Results 12/10/2024 6 2024 CalPERS Performance
• Estimated investment gain of 9.3% (Aug 2024)
• Funding surplus of 2.5% (after discount rate)
• FY2025 results are too early to tell
UAL reduction is estimated based on CalPERS preliminary returns (9.3% gain) and does not include any other possible adjustments. Actual UAL change may vary.

Pension Plan Estimated 2024
UAL Credit
Miscellaneous ($454,000)
Safety ($356,000)
Safety 2nd Tier ($25,000)
Misc 2nd Tier ($34,000)
PEPRA Safety ($39,000)
PEPRA Misc ($37,000)
TOTAL ($945,000)
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City of Cotati – UAL Update with 2024 Results 12/10/2024 7 2024 Investment Impact Estimate
Historical Payments
Sources: 06/30/2023
CalPERS Actuarial
Reports, Loan
Amortization Schedules,
CalPERS, and UAL
estimates
UAL and Debt Service
Payments only – no
normal cost
Safety & Misc Tier 1 only
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City of Cotati – UAL Update with 2024 Results 12/10/2024 8 UAL Policy Implementation:

Eliminate 2023 Negative Amortization
• Additional Discretionary Payments to cover interest on 2023 UAL:
• ≈ $62,000 – pay this fiscal year
• ≈ $62,000 – pay in July 2025
• Estimated cash flow savings of ≈ $77,000
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City of Cotati – UAL Update with 2024 Results 12/10/2024 9 UAL Policy Implementation Strategies:
90% Funded Level Target
• Estimated FYE 2024 Funded Level – 85.3%
• FYE 2025 ADPs ($290K, already made) raise funded level to 86% • Estimated gap to 90% - $1.6M
• Proposed ADPs will help reduce gap further
• Based on budget outlook, staff may recommend additional ADPs and reamortization of 2022 UAL bases in the future
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12/10/2024 10
Questions?
Dmitry Semenov
Ridgeline Municipal Strategies, LLC
(916) 250-1590
[email protected]
RidgelineMuni.com
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Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: REVIEW AND DISCUSSION OF DESIGN OPTIONS FOR A
PROPOSED AFFORDABLE HOUSING PROJECT ON CITYOWNED PROPERTY AT 120 E COTATI AVENUE Date: December 10, 2024
Written by: Jon-Paul Harries, Senior Planner
Recommendation
It is recommended that the City Council receive a presentation from Freebird Development LLC, discuss design options for an affordable housing project on City-owned property at 120 East Cotati Avenue, and provide direction to City staff and the design team.

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

Cotati Avenue. This project was never built.

On March 1, 2022, Steve Leonard of Northbay Housing filed an SB 35 development application proposing to develop a 5-story, 60-foot tall, 70-unit multi-family housing project on the three parcels located at 120 E Cotati Avenue. In the summer of 2023, while still in the SB 35 review process, Mr. Leonard indicated an interest in selling the property.

On December 12, 2023, following a closed-session discussion, the Cotati City Council directed staff to initiate purchase of the property at 120 E. Cotati Avenue with funding sourced from the Affordable Housing Fund. This funding source, combined with the requirements of the Surplus Land Act, requires that the City-owned property be developed with affordable housing. The specific affordability levels and unit counts are subject to various factors including zoning, funding sources and development capacity of the property. The City took ownership of this property in late 2023.

On February 13, 2024, the City Council determined that the property at 120 E. Cotati Avenue 150 of 293
was “exempt surplus land” and provided direction to staff to issue a Request for Qualifications seeking a qualified developer to partner with the City to develop a 100-percent affordable housing project at 120 E. Cotati Avenue. This RFQ was issued on March 21, 2024, to over 170 individuals and firms.

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

On June 25, 2024, the City Council authorized the City Manager to enter into an Exclusive Negotiating Agreement (“ENA”) with Freebird Development LLC for the development of a 100- percent affordable housing project (see Attachment B). The ENA, signed on July 20, 2024, establishes procedures and standards for the negotiation between the City and Freebird Development LLC of a Disposition and Development Agreement (“DDA”) pursuant to which Freebird Development LLC will conduct specified development activities related to the property and the City will convey the property, subject to a restriction requiring development of an affordable housing project, upon satisfaction of and subject to certain conditions to be negotiated. To date, the City and Freebird Development LLC have negotiated in good faith and pursuant to the terms of the ENA, including the delivery of preliminary designs to City staff for review and feedback and the completion of two presentations to the community to gather input on project design and operations.

On September 18, 2024, the first noticed community engagement meeting was held at City Hall.

About a dozen people attended the meeting; largely residents either adjacent to the site or from nearby residences, including residents from the Charles Street Village senior community. The meeting focused on an introduction of the development team, proposed development & operational goals, and a survey of architectural design preferences. The results of the design survey are shown in the attached PowerPoint presentation (see Attachment A). The meeting was recorded and is available to view on the City’s YouTube page.

On November 20, 2024, a second noticed community engagement meeting was held at City Hall, with similar attendance and many of the same attendees from the first meeting. The meeting focused on a recap of the first community engagement meeting, the results of the design survey from the first meeting, and a presentation of four design options: two Mission-styled designs and two Craftsman-styled designs (see Attachment A). Eight of the twelve attendees expressed preference for the Mission style and at least two of the attendees strongly preferred the Craftsman style. The meeting was recorded and is available to view on the City’s YouTube page.

Analysis/Discussion
City staff and the development team are requesting City Council and public feedback on the proposed development program and design goals prior to the formal submission of an entitlement or building permit application. The project proponent has made several requests 151 of 293
regarding the development review process and potential project timeline, which are summarized below. Staff is evaluating these requests and the ability for them to be implemented but has not fully analyzed how best to implement the requested process and timeline for review, while also ensuring all City priorities are met.

Development Program Goals
• Leverage location and size of the site to help City meet RHNA numbers while integrating into the existing downtown fabric
o Approximately 50 units in a 3-story building
• Serve a broad range of household sizes and incomes
o Up to to 80% of area median income (Very-Low and Low Income Units) o Studios, one-, two-, and three-bedroom units
• Provide a portion of the project units as inclusive for people with intellectual and developmental disabilities
o 25% of the units set aside for supportive housing
• Be a good neighbor
o Community engagement and design considerations
o Mitigate traffic and circulation related impacts
Design Goals
• Maximize units while limiting structure to 3 stories
• Articulate buildings to relate and transition to surrounding context and meet Objective Design Standards
• Activate public streets with commercial space
• Incorporate indoor and outdoor community spaces
• Provide an adequate amount of parking
• Be environmentally conscious
Design options
• Style
o Mission
o Craftsman
• Exterior Materials
o Siding, roofing, trim, details
• Colors
Other Project Design Considerations
• As currently proposed, the structure would step down in height from three to two stories at the building’s southern façades along La Plaza and Charles Street o Intent is to help transition the proposed structure mass to the existing surrounding development.
o Results in the loss of up to three units (two 1-BR units & one 2-BR unit) and a 3-BR unit would be replaced with a studio unit.

Staff recommends maintaining the three-story height along the (predominately commercial) La Plaza façade.
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• Vehicle access to/from E. Cotati Avenue
o Staff has requested a traffic impact study to help determine if this access point can be both safe and not interfere with efficient traffic flow on E. Cotati Ave.

Access from E. Cotati Avenue will likely require controls on turning movements and other infrastructure improvements (i.e. right-in turns & rightout turns only with no exiting left turns) o Potential loss of parking along E. Cotati Ave. if used for ingress/egress o If E. Cotati Ave. is not used for ingress/egress, then all garage traffic will use Charles Street for ingress/egress.
• Streetscape improvements and visual appearance of structure as viewed from E.

Cotati Avenue
o Sidewalk width
o Tree plantings
Next Steps
• Developer requests Winter/Spring 2025 timeline for Final City review including:
o Staff and developer response to City Council and public comments o Approval of project design and infrastructure improvements o Council Approval of the Development and Disposition Agreement (DDA) • April 2025 - Developer application for project funding through the State’s Department of Housing and Community Development (HCD) Multifamily Finance Super NOFA
o Project design approval and DDA required for HCD application submittal
Financial Considerations
Engagement and negotiation with Freebird Development, LLC to develop the property at 120 E.

Cotati Avenue is not anticipated to have a significant direct impact on the City’s General Fund in the current fiscal year (FY24/25). The RFQ issued in March 2024, identified the City’s goal of minimizing subsidy of future development of the property to the granting of the property.

However, financing of affordable housing is challenging and complex, so future requests for additional support of an affordable housing development project on the site may occur.

Additionally, there will be some limited staff time required to support the project beyond the costs of entitlements. Lastly, it is anticipated some project-related billing from the City Attorney’s office will be necessary to ensure all requirements are met. However, all dedicated time is anticipated to be within adopted FY 24/25 budget and will largely be cost recovery.

Environmental Issues
This agenda item is to review and discuss various design and program options for potential development of City-owned property. This action is exempt from the California Environmental Quality Act (“CEQA”) because the matter is not currently a project that has the 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. The 153 of 293
level of environmental analysis required for the project under CEQA will be determined after the project description is finalized and a development application is submitted to the City for review.

The project may be exempt from CEQA review pursuant to AB 2162 (2018), which added Sections 65650-65656 to the California Government Code. Those provisions, among other things, require supportive housing to be a use by-right in mixed-use zones (under certain conditions), and correspondingly and intentionally, expanded the CEQA exemption for the ministerial approval of projects.
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120 E COTATI AVENUE

COTATI, CA

CITY COUNCIL MEETING
DECEMBER 10, 2024
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• Introductions
• Process to Date
• Recap Community Meetings
• Concept Plans
• Feedback and Next Steps
• Questions
AGENDA
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Carmen Alcantara
Housing Specialist,
North Bay Regional
Center
Paul McElwee
Principal,
HKIT Architects
Sam McGeehan
Senior Project Manager,
HKIT Architects

DEVELOPMENT TEAM
Robin Zimbler
Founder,
Freebird Development
Company
Adan Rios
Designer
HKIT Architects
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• City Purchase Property Late 2023
• City Issued Request for Proposals March 21, 2024
• City Council Approval Developer Selection June 25, 2024 • Exclusive Negotiating Agreement Signed July 20, 2024
• Community Engagement Meeting #1 September 18, 2024
• Community Engagement Meeting #2 November 20, 2024

PROCESS TO DATE
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COMMUNITY ENGAGEMENT MEETINGS
• Held meetings on 9/18 and 11/20 at
City Hall
• 12 people attended each, of which
about 10 people attended both
• Primarily residents either adjacent to
or across from the site
• Meeting #1
• Introduction to Development Team
• Discussion of Development Goals and
Design Goals
• Two Break-Out Groups with Architectural
Style Preference Survey
• Meeting #2
• Recap of Meeting #1
• Design Survey Results
• Early Design Concepts 159 of 293

DEVELOPMENT PROGRAM GOALS
• Leverage location and size of site to help City meet RHNA numbers while integrating into existing downtown fabric
 Approximately 50 units in 3-story building
• Serve broad range of household sizes and incomes at three separate income tiers up to either 60% AMI or 80% AMI
 Studios, one-, two-, and three-bedroom units
• Provide inclusive housing for people with intellectual and developmental disabilities  25% of the units set-aside as permanent supportive housing • Be a good neighbor!
 Through both community engagement and design
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DESIGN GOALS
• Maximize number of units while limiting
height to 3 stories
• Articulate buildings to relate and transition to
surrounding context
• Activate public streets with lobby and
commercial space
• Ensure security through single point of entry
• Incorporate indoor and outdoor community
spaces
• Provide adequate amount of parking
• Design project to be environmentally
conscious
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MEETING #1 SURVEY RESULTS
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ARCHITECTURAL STYLE: LIKE
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ARCHITECTURAL STYLE: DISLIKE
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MEETING #2 RENDERINGS
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MISSION STYLE
Charles Street and East Cotati Avenue, Corner View
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MISSION STYLE
La Plaza and East Cotati Avenue, Corner View
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CRAFTSMAN STYLE A
Charles Street and East Cotati Avenue, Corner View
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CRAFTSMAN STYLE A
La Plaza and East Cotati Avenue, Corner View
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CRAFTSMAN STYLE B
Charles Street and East Cotati Avenue, Corner View
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CRAFTSMAN STYLE B
La Plaza and East Cotati Avenue, Corner View
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CONCEPT PLANS
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• Residential units on 2nd floor
with community room, laundry
room, and podium courtyard
with separate seating area and
play area
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• Residential units on 3rd floor
• Building steps down to two
stories on La Plaza and Charles
• Project could gain 4 additional
units without step downs for a
total of 48 units
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FEEDBACK
• 9 people (of 13) expressed preference for
Mission style although others strongly
preferred Craftsman style
• Concerns about parking garage access from
E Cotati Avenue and loss of on-street
parking
• Streetscape improvements and traffic
calming measures for pedestrian safety
• Questions about types of retail/commercial
uses

FEEDBACK AND NEXT STEPS

NEXT STEPS
• Traffic Study to determine garage access
and streetscape improvements
• Submit formal entitlement application in
January
• State HCD SuperNOFA anticipated to be
released February 2025 with applications
due April 2025; need entitlement approval
and Development and Disposition
Agreement prior to then
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QUESTIONS?
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FINANCING

INCOME SCHEDULE
Number of People
1 2 3 4
30% AMI $ 29,070 $ 33,210 $ 37,350 $ 41,490
50% AMI $ 48,450 $ 55,350 $ 62,250 $ 69,150
60% AMI $ 58,140 $ 66,420 $ 74,700 $ 82,980
80% AMI $ 77,520 $ 88,560 $ 99,600 $ 110,640
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FINANCING

RENT SCHEDULE
Number of Bedrooms
Studio One Two Three
30% AMI $726 $778 $933 $1,078
50% AMI $1,211 $1,297 $1,556 $1,798
60% AMI $1,453 $1,557 $1,867 $2,157
80% AMI $1,938 $2,076 $2,490 $2,877
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Freebird-City of Cotati ENA
120 East Cotati Avenue

Page 1 of 18 ends

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

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

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

C. It is anticipated that the Project will include a range of 40-55 units, with a mix of unit sizes and affordability levels. The Project is also anticipated to include on-site parking, and indoor amenity space including a community room, a lobby, laundry facilities and a property management office. Commercial space on the ground floor fronting onto La Plaza and East Cotati Avenue is also desired. Outdoor recreation areas are anticipated to include one or more courtyards, with pedestrian and bike infrastructure anticipated to be included along the project frontage. Developer acknowledges that the deed for the Property is likely to contain a restrictive covenant that the Property shall be developed as affordable housing, as defined and described in the City of Cotati Zoning Ordinance, and thus the Project is to be affordable to households with incomes not to exceed 120% of median income for Sonoma County, California, adjusted for actual household size appropriate for the unit, as determined by the U.S. Department of Housing and Urban Development pursuant to Section 8 of the United States Housing Act of 1937 and as published from time to time by the State of California Department of Housing and Community Development in Section 6932 of Title 25 of the California Code of Regulations or successor provision published pursuant to California Health and Safety Code Section 50093 (c). Accordingly, the Project will be subject to one or more agreements restricting the sale and/or rental and occupancy of residential units to eligible households.

D. On February 13, 2024, the Council of the City of Cotati, by resolution, declared the Property “Exempt Surplus Land” in accordance with the terms, requirements, and provisions of the Surplus Land Act as that term is defined in California Government Code Section 54221(f)(1)(A) or 54221(f)(1)(F), making findings and justifications that the purchaser will be required to develop a project that is consistent with either Government Code Section 54221(f)(1)(A) or 54221(f)(1)(F). A copy of this Resolution was sent to the California Department of Housing and Community Development in accordance with the requirements of Section 400(e) of the Surplus Land Act Guidelines (April 2021), and the Guide to Exemptions from the Standard Surplus Land Act Process for Local Agencies issued by the California Department of Housing Docusign Envelope ID: 63951041-1107-411B-90ED-E58D94228AC9 July 20th
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Freebird-City of Cotati ENA
120 East Cotati Avenue

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and Community Development (July 2022). Development of the Property was then put out for competitive bid through a Request for Qualifications (RFQ) process with invitations to participate being sent to all known entities as identified in GC 54222, through which Freebird Development LLC was the chosen partners with which to develop the Property.

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

Docusign Envelope ID: 63951041-1107-411B-90ED-E58D94228AC9 182 of 293
Freebird-City of Cotati ENA
120 East Cotati Avenue

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

EXCLUSIVE NEGOTIATIONS RIGHT

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

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

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

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

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

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

4. City Consulting Costs Deposit. The Developer acknowledges that the City shall expend resources in the negotiation of the DDA and performance of the tasks provided in the Work Plan Scope and Schedule attached hereto as Exhibit B. In order for this Agreement to remain in effect, the Developer shall submit to the City as a good faith and initial third-party Docusign Envelope ID: 63951041-1107-411B-90ED-E58D94228AC9 183 of 293
Freebird-City of Cotati ENA
120 East Cotati Avenue

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consultant costs deposit, the sum of TWENTY-FIVE THOUSAND Dollars ($25,000) (“Deposit”) to be paid within thirty (30) calendar days following execution of this Agreement.

The Deposit shall be placed in a separate City deposit account. Said deposit account shall not accrue interest.

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

The Deposit may be used by the City to pay for the City’s third party consultant costs and expenses in negotiating and preparing the DDA (collectively, the "Transaction Documents”). Such costs may include, but are not limited to, reasonable fees and services of third party consultants and attorneys, selected by the City at its sole discretion, relating to the Project and the preparation of the Transaction Documents (“Consultant Costs”). The Deposit is not intended to fund entitlement review, building permit issuance or other costs outside of the work contemplated in this ENA, which would be funded through a separate deposit account.

Once the DDA is executed, the City will refund the remaining ENA Deposit, or if requested by the Developer in writing, the City may apply the remaining Deposit balance to subsequent phases of work.

Developer acknowledges that City’s third party consultant costs include its city attorney services provided by the firm of Redwood Public Law, LLP, who will assist City with the negotiation and drafting of the DDA. Notwithstanding the foregoing, the amount of the fees for city attorney services related to this Agreement and the DDA that Developer shall be responsible forshall not exceed the initial Deposit without the written consent of the Developer.

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

If this Agreement is terminated by the City due to a failure by the Developer to negotiate in good faith under this Agreement, the Deposit shall be retained by the City. Conversely, if this Agreement is terminated by the Developer due to a failure by the City to negotiate in good faith under this Agreement, the Deposit (including any expended portion of the Deposit) shall be returned to the Developer.

Following such termination and the return of the appropriate amount of the Deposit as Docusign Envelope ID: 63951041-1107-411B-90ED-E58D94228AC9 184 of 293
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120 East Cotati Avenue

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

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

GENERAL PROVISIONS

6. Limitation on Effect of Agreement. This Agreement shall not obligate either the City or the Developer to enter into a DDA or to enter into any particular DDA. By execution of this Agreement, the City is not committing itself to or agreeing to undertake acquisition, disposition, and exercise of control over any property, or any other act or activity requiring the subsequent independent exercise of discretion by the City. Execution of this Agreement by the City is merely an agreement to conduct a period of exclusive negotiations in accordance with the terms hereof, reserving for subsequent City and City Council action the final discretion and approval regarding the execution of a DDA and all proceedings and decisions in connection therewith.

Any DDA resulting from negotiations pursuant to this Agreement shall become effective only if and after certification, adoption or approval of any analysis required under the California Environmental Quality Act (“CEQA”), and final approval of all land use entitlements required under the Cotati Municipal Code have been secured, and only if such DDA has been duly considered and approved by the City Council, following conduct of all legally required procedures, and executed by duly authorized representatives of City and Developer. Until and unless a DDA is signed by Developer, approved by the City Council, and executed by City, no agreement drafts, actions, deliverables or communications arising from the performance of this Agreement shall impose any legally binding obligation on either Party to enter into or support entering into a DDA or be used as evidence of any oral or implied agreement by either Party to enter into any other legally binding agreement. Failure of the City Council to approve a DDA after a public hearing thereon shall not constitute a default or a breach of the terms of this Agreement by City.

This Agreement does not limit in any way the discretion of City in acting on any applications for required permits or approvals for the proposed Project or any portion thereof.

The Parties acknowledge that compliance with CEQA will be required in connection with consideration of such permits and approvals required for the proposed Project or any portion thereof, and the City shall retain the discretion in accordance with CEQA and other applicable law before taking action on any such permits or approvals to (1) adopt or certify an environmental analysis of the Project or any portion thereof, prepared in accordance with CEQA, (2) identify and impose mitigation measures to mitigate significant environmental impacts, nor limit the anticipated scope of any required public improvements, (3) select other feasible alternatives to avoid significant environmental impacts, including the “no project” alternative, (4) adopt a statement of overriding considerations in accordance with Public Resources Code Section 21081(b) relative to any significant environmental impacts of the Project or any portion thereof, or implementation of any required public improvements, prior to taking final action if such significant impacts cannot otherwise be avoided, or (5) determine not to proceed with the Project or any portion thereof. Any action taken by the City in the exercise of its discretion relating to any analysis required by CEQA, or on any application for a permit or approval required to develop and construct the Project or any portion thereof, shall not constitute a default or a breach of the terms of this Agreement by City.

7. Notices. Formal notices, demands and communications between the City and the Developer shall be sufficiently given if, and shall not be deemed given unless, dispatched by certified mail, Docusign Envelope ID: 63951041-1107-411B-90ED-E58D94228AC9 185 of 293
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120 East Cotati Avenue

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postage prepaid, return receipt requested, or sent by express delivery or overnight courier service, to the office of the Parties shown as follows, or such other address as the Parties may designate in writing from time to time:

City:

City of Cotati
201 West Sierra Ave
Cotati, CA 94931
Attention: City Manager
Developer:

Freebird Development Company, LLC
Broadway
Oakland, CA 94607
Attention: Robin Zimbler
Such written notices, demands and communications shall be effective on the date shown on the delivery receipt as the date delivered.

8. Costs and Expenses. Except for the Developer’s obligation to fund certain City consultant costs under Section 4, above, Project Entitlements under Exhibit B, and CEQA Documentation under Exhibit B, each Party shall be responsible for its own costs and expenses in connection with any activities and negotiations undertaken in connection with this Agreement, and the performance of each Party’s obligations under this Agreement.

9. No Commissions. The City shall not be liable for any real estate commissions or brokerage fees that may arise from this Agreement or any DDA that may result from this Agreement. The City represents that it has engaged no broker, agent or finder in connection with this transaction, and the Developer shall defend and hold the City harmless from any claims by any broker, agent or finder retained by the Developer.

10. Defaults and Remedies.

1. Default. Failure by either Party to (i) negotiate in good faith as provided in this Agreement, (ii) perform and complete tasks within the time provided for their performance as set forth in the Work Plan Scope and Schedule attached as Exhibit B to this Agreement, or (iii) comply with any of their obligations under this Agreement, shall constitute an event of default hereunder. The non-defaulting Party shall give written notice of a default to the defaulting Party, specifying the nature of the default and the required action to cure the default. If the required action to cure the default involves the payment of money, the defaulting party shall have thirty (30) calendar days from receipt of such notice to cure the breach, otherwise the defaulting Party shall have forty five (45) calendar days from receipt of such notice to cure such breach; provided, however, if such breach or failure cannot reasonably be cured within such forty five (45) calendar day period and the defaulting Party has commenced the cure within such forty five (45) calendar day period and thereafter is diligently working in good faith to complete such cure, the defaulting Party shall have such longer period of time as may reasonably be necessary to cure the breach or failure, provided, however, in any event such breach or failure shall be cured within ninety (90) calendar days. If a default remains uncured after receipt by the defaulting party of such notice and the passing of time as set forth herein to cure such default, the non-defaulting Party may exercise the remedies set forth in subsection 2.

2. Remedies. In the event of an uncured default by the City, the Developer’s Docusign Envelope ID: 63951041-1107-411B-90ED-E58D94228AC9 186 of 293
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sole remedy shall be to terminate this Agreement, upon which termination the Developer shall be entitled to the return of the Deposit, as set forth in Section 4. Notwithstanding anything to the contrary contained herein, in the event of such default, following notice and an opportunity to cure in accordance with subsection 1. above, Developer shall be entitled to (i) a return of the full Deposit in accordance with Section 4 of this Agreement, and (ii) all other rights or remedies available to it at law or in equity, provided that any monetary damages awarded to Developer as a result of such default shall not exceed the total amount of all actual, third party out-ofpocket costs reasonably incurred by Developer in connection with and after the date of this Agreement. Following any such termination and the return of the appropriate amount of the Deposit, neither party shall have any further right, remedy or obligation under this Agreement; provided, however, that the Developer’s indemnification obligation pursuant to Section 11 shall survive such termination.

In the event of an uncured default by the Developer, the City’s sole remedy shall be to terminate this Agreement and to retain any unexpended funds remaining in the Deposit.

Following such termination, neither Party shall have any right, remedy or obligation under this Agreement; provided; however, that the Developer’s indemnification obligation pursuant to Section 11 shall survive such termination.

Except as expressly provided above, neither party shall have any liability to the other for lost profits, consequential damages, punitive damages, actual damages or otherwise for any default, nor shall either party have any other claims with respect to performance under this Agreement. Each party specifically waives and releases any such rights or claims they may otherwise have at law or in equity.
11 Developer’s Obligation to Indemnify City. Developer shall defend, indemnify, and hold harmless the City from and against all suits and causes of action, claims, losses, demands and expenses, including, but not limited to, reasonable attorneys’ fees and costs of litigation, damage or liability of any nature whatsoever, arising directly or indirectly, in whole or in part, are caused by, arise in connection with, result from, relate to, or are alleged to be caused by, arise in connection with performance of this Agreement on the part of the Developer or any contractor or subcontractor of the Developer; provided, however, that in no event shall Developer have any liability to the City for any claims, losses, demands or expenses arising from or relating to its ownership of the Property or any rights or obligations with respect to the Property, except to the extent caused by the negligence or willful misconduct of Developer or any contractor or subcontractor of the Developer. The Developer shall pay immediately upon the City’s demand any amounts owing under this indemnity. The duty of the Developer to indemnify includes the duty to defend the City, with counsel of the City’s choosing, to pay the City’s costs of its defense in any court action, administrative action, or other proceeding brought by any third party arising in any manner by reason of or incident to the performance of this Agreement on the part of the Developer or any contractor or subcontractor of the Developer. The City shall have the right to approve any attorneys retained by the Developer to defend the City pursuant to this Section 11 and shall have the right to approve any settlement or compromise. The Developer’s duty to indemnify the City shall survive the termination of this Agreement. Notwithstanding the above, the Developer shall have no obligation to defend, indemnify or hold harmless the City, for any and all suits and causes of action, claims, losses, demands and expenses caused by, arising from, or related in any part to, any gross negligence, fraud or misconduct on the part of the City or its employees, agents, assigns, officers, or officials.

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12. Compliance with Laws. Developer shall comply with all applicable laws and regulations of the federal, state and local government, including but not limited to the Cotati Municipal Code.

13. Nonliability of Officials, Officers, Members, and Employees. No member, official, officer, or employee of the City shall be personally liable to the Developer, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Developer or to its successor, or on any obligations under the terms of this Agreement.

No member, officer, or employee of the Developer shall be personally liable to a‹ city, or any successor in interest, in the event of any default or breach by the Developer or for any amount which may become due to the City or to its successor, or on any obligations under the terms of this Agreement.

14. Lobbying Prohibition. Developer agrees and acknowledges that the negotiations of a DDA shall take place with the City Manager, acting by and through his or her staff, and the City’s legal, financial and planning advisers and such other City parties as may be designated by the City Manager from time to time (collectively, the “City-Designated Team”). Developer shall not engage in any material discussions, negotiations or lobbying of any City Council or Planning Commission members or other City employees or officials as may be designated by the City Manager from time to time (collectively, “Excluded City Parties”) with regards to the Project or DDA, unless authorized or requested to do so by the City-Designated Team for specific purposes related to the negotiations. Nothing in this Section 14 shall prevent: (1) responses to requests for information from one or more Excluded City Parties, provided such responses are directed to the City-Designated Team; (2) Developer’s participation in any question-and-answer sessions, workshops, or tours approved in writing by the City-Designated Team; or (3) Developer’s participation in public events or community forum at which one or more Excluded City Parties are present, provided Developer does not engage in communications with such Excluded City Parties at such events that are intended to influence the negotiations of the DDA.

15. Ballot and Legislative Measures. Developer expressly agrees and acknowledges that it shall not initiate, promote, support or pursue, or authorize any other person or party to initiate, promote, support or pursue, any ballot or legislative measure relating to the Project without the prior consent of the City as evidenced by City Council resolution.

16. Assignment. The Developer shall not assign its rights or responsibilities under this Agreement, in whole or in part, except with the written consent of the City which may be granted or denied in its sole discretion. Any attempted assignment without such prior written consent shall be invalid and void.

17. No Third-Party Beneficiaries. This Agreement shall not be construed to be an agreement for the benefit of any third party or parties and no third party or parties shall have any claim or right of action under this Agreement for any cause whatsoever.

18. Governing Law/Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California with venue in the Superior Court of Sonoma County, California.

19. Attorneys’ Fees/Costs. In the event any action or proceeding is brought to enforce or interpret any provision contained herein or as the result of any alleged breach thereof, each Party shall be responsible for their own fees, costs and expenses incurred, including any and all attorneys’ fees.

20. Entire Agreement. This Agreement, including the Exhibits, contains all the agreements, representations and understandings of the Parties, and supersedes and replaces any previous Docusign Envelope ID: 63951041-1107-411B-90ED-E58D94228AC9 188 of 293
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agreements, representations and understandings, whether oral or written.

21. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same agreement.

The Parties acknowledge and accept the terms and conditions of this Agreement as evidenced by the following signatures of their duly authorized representatives, to be effective as of the date executed by the last of the Parties. (signatures on following page)
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DEVELOPER:

FREEBIRD DEVELOPMENT COMPANY, LLC,
Dated:

By:

Name: Robin Zimbler
Title: Manager
Local Address: 111 I Broadway
Oakland, CA 94607
Email Address: [email protected]
Telephone: 510-319-6959
CITY:

CITY OF COTATI, a California municipal corporation
Dated:

By:

Name: Damien O’Bid
Title: City Manager
Local Address: 201 West Sierra Ave
Cotati, CA 94931
Email Address: [email protected]
Telephone: 707-665-3621

APPROVED AS TO FORM
John Bakker,
City Attorney
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EXHIBIT A

LEGAL DESCRIPTION AND MAP OF PROPERTY
APN 144-274-002-000, 144-274-014-000 and 144-274-015-000

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF COTATI, COUNTY OF SONOMA, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:

Parcel One (APN: 144-274-014-000):

Lots 7, 8 and 9, Block 3, as shown upon the Map entitled "Plan of the Townsite of Cotati, being Subdivision No. 6, Rancho Cotati, Sonoma County, California, the property of the Cotati Company", filed in the Office of the County Recorder of Sonoma County, California, on June 7, 1983 in Book 10 of Maps, Page 8.

Excepting therefrom all that portion conveyed to the County of Sonoma by Deed Dated May 2, 1966 and Recorded May 20, 1966 in Book 2210 of Official Records, Page 250, Serial No. J 98361, Sonoma County Records.

Parcel Two (APN: 144-274-015-000):

Lots 10, 11 and 12, in Block 3, as shown upon the Map entitled "Plan of the Townsite of Cotati, being Subdivision No. 6, Rancho Cotati, Sonoma County, California, the property of the Cotati Company", filed in the Office of the County Recorder of Sonoma County, California, on June 7, 1983 in Book 10 of Maps, Page 8.

Parcel Three (APN: 144-274-002-000):

Lot 13, in Block 3, as shown upon the Map entitled "Plan of the Townsite of Cotati, being Subdivision No. 6, Rancho Cotati, Sonoma County, California, the property of the Cotati Company", filed in the Office of the County Recorder of Sonoma County, California, on June 7, 1983 in Book 10 of Maps, Page 8
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EXHIBIT B

WORKPLAN SCOPE AND SCHEDULE
l. Overview. To facilitate negotiation of the DDA, the Parties shall use good faith efforts to accomplish the tasks set forth in this Exhibit B within the timeframes set forth herein which are intended to support the negotiation and execution of a mutually acceptable DDA prior to the expiration of the Negotiating Period (the “Work Plan Scope and Schedule”). The City Manager may agree on behalf of the City to modifications to the time periods established herein to complete certain tasks provided, however, in no event shall there be any modification to the Due Diligence Period or Negotiation Period beyond the time periods as may be authorized by the City Manager pursuant to Section 2 of the Agreement without the approval of the City Council. The Parties agree that failure of a Party to perform and complete a task within the timeframe set forth in this Work Plan Scope and Schedule shall constitute a default as contemplated in Section 10 of the Agreement.

2. Conceptual Plans: Site Plans and Project Narrative. Prior to releasing or presenting the initial Conceptual Plans to the public, the Developer shall prepare and submit to City staff the Conceptual Plans for their review and comment. The Conceptual Plan shall include the proposed site plan identifying the size and shape of the parcels which comprise the Property, the location of the Project improvements, including the public sidewalk and street light improvements, and location and number of vehicular points of ingress and egress to the Developer Parcels, to be constructed on each of the Development Parcels (“Site Plans”).

Developer shall also prepare and submit to the City staff for their review and comment a detailed written description (“Project Narrative”) of the intended scope of development on the Property, including but not limited to a description of land uses, building heights, ingress/egress points, anticipated waivers from development standards, project density, number and size of units, bedroom and bathroom composition, anticipated affordability level per unit, on-site parking count, on-site open space, recreation and other Project amenities, (collectively, the Site Plans and Project Narrative means the “Conceptual Plans”). No later than thirty (30) calendar days following receipt of the Conceptual Plans, City staff shall arrange a meeting between City staff and Developer and its design consultants to meet and discuss City suggestions, recommendations and comments related to the Conceptual Plans.

3. Community Presentations. Prior to submission of the project application, Developer shall conduct the following community presentations: 1) one pre-application community presentation prior to submission of Conceptual Plans; 2) one community presentation of Conceptual Plans; and 3) one community presentation of revised Conceptual Plans.

4. Project Applications. City and Developer shall use good faith best efforts to ensure submission of project application by January 31, 2025. Developer shall prepare and submit complete planning applications to the City, and shall be responsible to pay all costs, fees and expenses associated therewith, to secure all planning and development permits a required for the Project pursuant to the Cotati Municipal Code (“Project Entitlements”). Prior to Docusign Envelope ID: 63951041-1107-411B-90ED-E58D94228AC9 193 of 293
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submitting its planning applications with the City for the Project Entitlements, Developer and City staff shall meet to identify and confirm all required permits to be applied for and all information and materials to be submitted in connection therewith.

Developer acknowledges that the Property shall be subject to a deed restriction imposed by City requiring affordable housing to be constructed onsite. Additionally, without the express written consent of the City, which may be granted or denied in its sole and reasonable discretion, Developer shall not seek, request or apply for, and City shall have no obligation to consider or grant an application pursuant to California Government Code §65913.4. Further, with the consent of the City, which may be granted or denied in its reasonable discretion, Developer may seek, request or apply for affordable housing incentives or concessions as provided by the Cotati Municipal Code or California Government Code §65915 et.seq..

5. Priority Housing Obligations. Developer acknowledges that pursuant to the City’s local preference policy, to the extent permitted by applicable law and the Project’s funding sources, to establish a priority list for the initial purchasers and/or renters of the affordable housing that is built on the Development Parcels and offered for sale or rent, respectively, which lists shall provide priority to current residents or employees working within the City of Cotati, individuals or families with children whom attend Rancho Cotati school district facilities, members of the Graton Rancheria Native American Tribe, and employees of Sonoma State University with respect to consideration of applications by such residents, employees, individuals or families, or tribal members to purchase or rent such affordable housing within the project, as applicable.

Subject to the limitations of applicable law, inclusive of Federal and State Fair Housing laws and those governing Federal and State Low Income Housing Tax Credit Laws and any other applicable requirements of the Project’s funding sources which may be applicable to the development of affordable housing on a Development Parcel, the Parties agree to make best efforts to include terms in the DDA between City and Developer to include a preference for initial purchasers and renters of affordable housing offered for purchase or rent thereon who are current residents or employees working within the City of Cotati, individuals or families with children whom attend Rancho Cotati school district facilities, members of the Graton Rancheria Native American Tribe, and employees of Sonoma State University with respect to consideration of applications by such residents, employees, individuals or families, or tribal members.

City shall use good faith best efforts in collaboration with Developer to determine whether such preferences are permitted by applicable law and the Project’s funding sources. In the event that City is unable to sufficiently evidence compliance with applicable laws and Project funding sources, or is unable to obtain HUD’s confirmation that the preferences comply with fair housing law, then such preferences shall not apply to the Project.

6. Developer Cooperation and Coordination with Adjacent Parcels. Developer acknowledges the adjacent parcels and shall plan the site to be sensitive to these neighborhoods.

7. Financing and Costs of Development.

As a component of the DDA the Developer shall provide the City with a detailed financial pro forma for the Project containing, among other matters, a detailed development budget setting forth the costs of the tasks to be undertaken by the Developer, and sources and Docusign Envelope ID: 63951041-1107-411B-90ED-E58D94228AC9 194 of 293
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uses of funds for acquisition of the Property and development of the Project. The financial pro forma will be used to evidence the financial feasibility of the Project, to discuss and evaluate the financial and operational components of the Project, including any requirements pertaining to the applicability of any prevailing wage requirements, to discuss and evaluate any affordable housing incentives or concessions requested by Developer in accordance with Section 4 above, and to develop a Term Sheet regarding the provisions of the DDA.

8. Developer Organizational Documents. Concurrent with the submission of the pro forma under Section 7 (Financing and Costs of Development), the Developer shall (i) provide the City with its organization documents as well as an organization chart outlining key personnel’s roles and responsibilities, and (ii) submit to the City for its approval, copies of all operating agreements, joint venture agreements or other agreements between the members of the development entity, and such financial statements or tax returns reasonably required by the City to determine the Developer’s financial capability, excluding confidential or proprietary information.

9. Environmental Review. Subject to the limitations set forth in Section 6 of the Agreement, upon submission by Developer of a complete application for all Project Entitlements as contemplated in Section 4 above, the City shall make good faith efforts to engage the services of an environmental consulting firm (“CEQA Consultant”) within thirty (30) calendar days thereafter to commence the preparation of environmental documentation required by the California Environmental Quality Act (“CEQA”) (“CEQA Documentation”), for consideration of approval of the Project Entitlements and DDA. The Developer shall provide such information as may be required to enable the City and its CEQA Consultant to prepare or cause the preparation and consideration of any required CEQA Documentation and shall otherwise generally cooperate with the City and its CEQA Consultant to complete this task. The Developer shall be responsible for all costs associated with the preparation of the required CEQA Documentation. Within thirty (30) calendar days after the City has engaged the services of the CEQA Consultant, the City and Developer, in consultation with the CEQA Consultant, shall develop a schedule and timeline for the preparation and consideration of the CEQA Documentation, Project Entitlements and DDA (“Project Entitlement Schedule”). As is necessary and warranted, the City and Developer, in consultation with the CEQA Consultant, shall update the Project Entitlement Schedule from time to time. Notwithstanding the foregoing, in the event that the Project applies a streamlining ministerial approval process which does not require CEQA approval of the Project, as consented to by the City in its reasonable discretion, this Section 9 shall not apply.

10. Due Diligence. The Developer shall, at its sole cost and expense, conduct the following due diligence activities:
(a) Property Adequacy Determination. The Developer shall, within six (6) months from the date Developer is able to access the Property pursuant to Section 11 below (“Due Diligence Period”), determine whether the Property is suitable for development of the Project, taking into account the geotechnical and soils conditions; the presence or absence of toxic or other hazardous materials; the zoning of the Property; the massing of the proposed Project improvements; traffic, circulation and parking requirements, issues and constraints imposed on projects of this type that may affect site development; assessment of major public and private utility capacities and connections for providing service to the Project; assessment of site drainage; assessment of creek and wetland issues that may affect development of the Project; Docusign Envelope ID: 63951041-1107-411B-90ED-E58D94228AC9 195 of 293
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and assessment of any other environmental and regulatory factors that the Developer deems relevant. Developer shall, prior to the expiration of the Due Diligence Period, notify the City in writing whether, in the Developer’s judgment based on such investigations and analyses, the Property either is or is not suitable for development. If Developer determines and notifies City in writing that the Property is suitable for development, then this Agreement shall continue in effect. If Developer determines and notifies City in writing that the Property is not suitable for development, then this Agreement shall terminate and the remaining balance of the Deposit shall be immediately refunded to the Developer and neither Party shall thereafter have any further duties, obligations, rights, or liabilities under this Agreement. If the Developer fails to provide any written notification to the City prior to the expiration of the Due Diligence Period regarding the suitability of the Property for development, then it shall be deemed that the Property is not suitable for development and this Agreement shall terminate and the remaining balance of the Deposit shall be immediately refunded to the Developer and neither Party shall thereafter have any further duties, obligations, rights, or liabilities under this Agreement. (b) Objections to Title. Within sixty (60) calendar days following the execution of this Agreement, the Developer shall cause Old Republic Title Company (“Title Company”) issue a Preliminary Title Report (the “Report”) on the Property to the Developer and the City. If the Developer objects to any exception appearing on the Report or should any title exception arise after the date of the Report, the Developer may object to such exception, provided such objection is made to the City in writing on or before the thirtieth (30th) calendar day following the date the Developer and the City receive the Report from Title Company. If the Developer objects to any exception to title, the City, within fifteen (15) calendar days of receipt of Developer’s objection, shall notify Developer in writing whether City elects to (i) cause the exception to be removed of record, obtain a commitment from Title Company for an appropriate endorsement to the policy of title insurance to be issued to the Developer, insuring against the objectionable exception, or decline to address the Developer’s objection to an exception to title. If City declines to address the Developer’s objection to an exception to title, the Developer, within fifteen (15) calendar days of receipt of City’s written notification may either terminate this Agreement or elect to take title subject to such exception. If Developer elects to terminate this Agreement pursuant to this subsection, the remaining balance of the Deposit shall be immediately refunded to the Developer and neither Party shall thereafter have any obligations to or rights against the other hereunder. If the Developer fails to provide any notification to the City regarding an objection to any exception to title prior to expiration of the time period set forth herein, the condition set forth in this subsection shall be deemed satisfied and this Agreement shall continue in effect. Notwithstanding the foregoing, City shall use best efforts to keep the Property free and clear of any new liens or encumbrances during the Negotiating Period.

11. Site Access. Within thirty (30) calendar days following execution of this Agreement, City shall use best efforts to execute an agreement to provide Developer and its consultants with rights to enter, examine and conduct tests on the Property, subject to such terms, conditions, indemnity and insurance requirements as may be reasonably required.

12. Reports. The Developer shall provide the City or its consultants or attorneys with copies of all reports, studies, analyses, correspondence and similar documents, but excluding confidential or proprietary information, prepared or commissioned by the Developer with respect to this Agreement and the Project, promptly following execution of this Agreement Docusign Envelope ID: 63951041-1107-411B-90ED-E58D94228AC9 196 of 293
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with respect to documents then in its possession or under its reasonable control, and promptly upon their completion with respect to any subsequently prepared documents. The City shall provide the Developer with copies of all reports, studies, analyses, correspondence and similar documents, but excluding confidential or proprietary information, prepared or commissioned by the City with respect to this Agreement and the Project, promptly following execution of this Agreement with respect to documents then in its possession or under its reasonable control, and promptly upon their completion with respect to any subsequently prepared documents.

While desiring to preserve its rights with respect to treatment of certain information on a confidential or proprietary basis, the Developer acknowledges that the City will need sufficient, detailed information about the proposed Project (including, without limitation, the financial information described in Section 7 of this Exhibit B) to make informed decisions about the content and approval of the DDA. The City will work with the Developer to maintain the confidentiality of proprietary information, subject to the requirements of the Public Records Act, California Government Code section 7920.000 et seq. (CPRA). The Developer acknowledges and agrees that the City may share information provided by the Developer of a financial and potential proprietary nature with third-party consultants who have been engaged to advise the City concerning matters related to this Agreement and to the City Council members as part of the negotiation and decision-making process. Information submitted to the City is a public record and may be subject to disclosure if requested by a member of the public.

The Developer shall familiarize itself with the CPRA, including consulting with legal counsel, regarding its requirements for disclosure of public records and applicable exemptions from such disclosure. If the Developer claims an exemption from disclosure under the CPRA, it must identify the specific provision(s) of the CPRA providing an exemption from disclosure for each such item claimed as exempt from disclosure. The Developer must also clearly identify, in writing and with specificity, all copyright, patent or trademark materials, trade secrets, or proprietary or confidential commercial or financial information claimed as exempt from disclosure under the CPRA (collectively, “Exempt Information”). Any documents that Developer believes constitutes Exempt Information shall be clearly labeled in bold and all caps at the top of the page as “EXEMPT INFORMATION” prior to their submission to City.

Exempt Information shall remain the property of the Developer. If a request is made under CPRA for disclosure of Exempt Information, the City will endeavor to provide the Developer with reasonable timely notice of that request, in order that the Developer will have the opportunity, under the CPRA, to seek protection from disclosure by a court of competent jurisdiction. The City shall not be, under any circumstances, responsible or liable to the Developer, or any other person, for the disclosure of Exempt Information, whether such disclosure is required by law, by an order of a court, or as a result of inadvertence, mistake, or negligence on the part of the City or its elected or appointed officials, officers, employees, agents, contractors, representatives, or consultants.

The Developer submitting claimed Exempt Information in connection with this Agreement, by making such submittal of claimed Exempt Information, unconditionally agrees to indemnify, defend, and hold harmless the City and its elected or appointed officials, officers, employees, agents, contractors, representatives, and consultants, from and against any and all claims, damages, losses, liabilities, and expenses, including actual attorneys’ fees and costs, including in-house legal counsel fees and costs, incurred by the City, in good faith, that arise out of, relate to, or result from the City’s failure to disclose any claimed Exempt Information to any person making a request for such information. If the Developer fails to timely and diligently undertake indemnification of the City, it shall be deemed to have waived the right to claim exemption from disclosure under the CPRA; and after reasonable notice to the Developer, Docusign Envelope ID: 63951041-1107-411B-90ED-E58D94228AC9 197 of 293
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the City may release the requested information in accord with applicable law.

13. Progress Reports. Each Party, on a monthly basis, shall provide oral or written progress reports advising the other party on studies being made and matters being evaluated by the reporting Party with respect to this Agreement and the Project.

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Certificate Of Completion
Envelope Id: 63951041-1107-411B-90ED-E58D94228AC9 Status: Completed Subject: Cotati - Freebird ENA
Source Envelope:

Document Pages: 18 Signatures: 3 Envelope Originator:

Certificate Pages: 5 Initials: 0 Damien O'Bid
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
[email protected]
IP Address: 108.213.217.140
Record Tracking
Status: Original
7/20/2024 6:39:23 PM
Holder: Damien O'Bid
[email protected]
Location: DocuSign
Security Appliance Status: Connected Pool: StateLocal
Storage Appliance Status: Connected Pool: Carahsoft OBO City of Cotati Location: DocuSign Signer Events Signature Timestamp
Robin Zimbler
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 142.254.63.193
Sent: 7/20/2024 6:50:19 PM
Viewed: 7/20/2024 7:12:48 PM
Signed: 7/20/2024 7:13:33 PM
Electronic Record and Signature Disclosure:

Accepted: 7/20/2024 7:12:48 PM
ID: 99122e54-9412-4ea5-87ce-73f693b08ec1
Damien O'Bid
[email protected]
City Manager
City of Cotati
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 108.213.217.140
Signed using mobile
Sent: 7/20/2024 7:13:35 PM
Viewed: 7/20/2024 7:44:09 PM
Signed: 7/20/2024 7:45:00 PM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
In Person Signer Events Signature Timestamp
In Person Signing Host:

Kevin Patterson
[email protected]
In Person Signer:

John Bakker
Security Level: In Person
Signature Adoption: Pre-selected Style
Using IP Address: 71.6.94.254
Sent: 7/20/2024 7:45:02 PM
Viewed: 7/23/2024 8:28:36 AM
Signed: 7/23/2024 8:28:59 AM
Electronic Record and Signature Disclosure:

Accepted: 7/23/2024 8:28:36 AM
ID: 9d215c6a-cdcd-491b-9139-53878109abb9
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
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Carbon Copy Events Status Timestamp
Noah Housh
[email protected]
Director of Community Development
City of Cotati
Security Level: Email, Account Authentication
(None)
Sent: 7/20/2024 7:45:01 PM
Viewed: 7/22/2024 10:40:31 AM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Kevin Patterson
[email protected]
Deputy City Clerk
City of Cotati
Security Level: Email, Account Authentication
(None)
Sent: 7/23/2024 8:29:00 AM
Viewed: 12/2/2024 8:59:12 AM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 7/20/2024 6:50:19 PM
Certified Delivered Security Checked 7/23/2024 8:28:36 AM Signing Complete Security Checked 7/23/2024 8:28:59 AM
Completed Security Checked 7/23/2024 8:29:00 AM
Payment Events Status Timestamps
Electronic Record and Signature Disclosure
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ELECTRONIC RECORD AND SIGNATURE DISCLOSURE
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Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: 2025 VERONDA-FALLETTI RANCH WORKPLANS AND

LICENSE AGREEMENT WITH PHOENIX FARM CONCEPTS
Date: December 10, 2024
Written by: Damien O'Bid, City Manager
Recommendation
It is recommended that the City Council: 1. Approve by motion the 2025 work plans for the Veronda Falletti Ranch (Ranch), 2. Authorize the City Manager to execute a 3-year license agreement with Ferm Homestead to operate the livestock, horticulture, compost and other related programs, substantially in the form attached. 3. Authorize the City Manager to amend the license agreement with Sandy Loam to synchronize the term dates, and other minor edits, and 4.

Authorize the City Manager to execute an agreement substantially in the form attached with Point Blue Conservation Science for the installation of pollinators and trees along the east and south perimeters of the Ranch.

Background
The Veronda Falletti Ranch (Ranch) is a City owned ranch that is intended to serve as a venue for a wide variety of agricultural-based education and events.

The City received notice that Farmster was winding down operations, effective July 31, 2024. As a result of the compressed timeline, the City began a search for an interim licensee until a full request for proposals could be conducted. On July 9, 2024, the City Council selected Fern Homestead as the interim operator and approved the corresponding workplan for the remainder of the 2024 calendar year.

Currently, the Ranch is operated by two licensees. Beginning in late July 2024, Fern Homestead (dba Phoenix Farm Concepts) assumed operations from Farmster as an interim operator and Sandy Loam continued as the second licensed operator. Phoenix Farm Concepts manages the city-owned livestock, compost program, and horticulture program for all ages. Sandy Loam manages the Ranch common areas, conducts a variety of all-age community workshops and open 204 of 293
farm events, as well as programs with a focus on youth education.

Due to the limited duration of the Phoenix Farm Concepts interim license agreement (ending January 2025), on October 10, 2024, the City posted on the City website and distributed a request for proposals (RFP) to interested parties. The City also sent the RFP to the Open Space District to distribute through their channels. The RFP closed on November 11, 2024 and received one proposal from Phoenix Farm Concepts. Based on the proposal, as well as direct work experience with them as the interim operator, they are very well qualified to perform the requested work.

Analysis/Discussion
Proposed 2025 Works Plans
Phoenix Farm Concepts and Sandy Loam work closely together and with the City to design and run community programming. The workplans outlined below are the product of past experience with community interest, greater integration between the licensees and City input on priorities.

Phoenix Farm Concepts (Phoenix)
As described in the attached workplan, the primary elements are:
• Free Compost Program. Operate this program in partnership with Zero Waste Sonoma for the community
• Free Farmer Picnics. This once-a-month program would operate as a drop-in time to ask Farmer Tomi questions about animal keeping, horticulture, and other ranch related topics. • Free Food Forest Tours. The ”food forest” section of the Ranch will be open to the public most Fridays.
• Volunteer Program. Phoenix will host volunteer days to assist with the garden and livestock care.
• Fall Festival. Partnering with Sandy Loam and the City to run the annual Fall Festival.

This is a continuation and continued growth of the fall festival days on the Ranch, including a variety of activities, games and crafts around a fall theme. • Youth Farm Club. This program is in partnership with Sandy Loam for children 8-12.

This new program is intended to expose children ages 8-12 to animal husbandry and horticulture.
• Grazing school. This program will run a grazing school with a local expert to provide instruction on livestock care, e-fencing, etc.
• Sheep shearing demonstration and related topics
• Compost workshop and related topics
Additionally, there is related social media content creation and engagement, as described in the workplan.

In the initial 6-month term, Farmer Tomi has had the opportunity to conduct a full assessment of the livestock and horticulture operations. Based on this, Farmer Tomi plans to begin a rotational 205 of 293
grazing program in 2025 with a mobile hay feeder for the public to interact with the animals.

The workplan also includes expanding the garden area grow more food crops to support programming. Pumpkins will still also be grown for the Fall Festival, but will be a smaller portion of the overall garden space.

Large Animal Mangement
To make the rotational animal grazing successful, Farmer Tomi has recommended that the two large animals (the cows) be re-homed. As described in the workplan, ”The size and quality of the pasture is not suited to the keeping of cows. By removing the pressure applied by the cows, we can begin rehabilitating the soil and vegetation quality on the property. Additionally, cows and goats/sheep need different types of electric fencing and pasture shelters.” If the City Council authorizes the workplan, it will include re-homing the cows at a vetted non-profit animal sanctuary in Oregon (Tikkun Olam Farm Sanctuary).

Sandy Loam
As described in the attached workplan, the primary elements are:
• Coordinating the installation of a pollinator hedgerow along the front and side of the property, planned and installed 100% through a grant. See description under Point Blue Conservation Science for additional details, below.
• Early Release Enrichment Program. This is an existing after-school program, which is planned to be integrated with livestock education.
• Paint it Bright Farm & Nature Camps. These are TK-Grade 5 farm-based art camps. • Chicken Keeping Field Trip Program. This is a continuation of the walking field trips for local preschools. This year, we plan to expand it to other schools as a paid field trip. • Youth Farm Club. In partnership with Phoenix, as described above and in both workplans.
• Open Ranch Days. This is a continuation of the wildly popular open ranch days during the summer months.
• Fall Festival. This is a continuation and continued growth of the fall festival days on the Ranch, including a variety of activities, games and crafts around a fall theme. • A variety of Workshops, including:
o Indro to Gardening Tools
o Flower Harvesting & Bouquet Making
o Farm to Table
o Bulb plants
o Cookie decorating & Cocoa
o Teatime crafting
Additionally, Sandy Loam is required by the license agreement to be the lead operator for overall property maintenance and management. Sandy Loam also provides related social media content creation and engagement.

Point Blue Conservation Science (Point Blue) Landscaping Project Point Blue has received funding from the California Wildlife Conservation Board (“WCB”) for 206 of 293
the Building Wildlife-Friendly Resilience and Equity in California’s Working Landscapes Project for wildlife habitat restoration projects on approximately 40,000 acres throughout California. Through Sandy Loam, Point Blue designed a wildlife friendly landscape design for the east and south perimeters of the Ranch. If authorized by the City Council, Point Blue would install and initially maintain the landscaping indicated in the attachments (maintenance through 12/31/2026). After this initial work period, the City would maintain the landscaping and would be required to make reasonable efforts to not damage or destroy the landscaping through the term of the agreement (2038). Among the planned plantings include new Valley Oak trees in the corral area at the corner of El Rancho and East School Street and a variety of native shrubs and pollinators.

Summary
In addition to the workplans and landscaping project, the City will need to extend the license agreement with Tomi Henry to implement the workplan. Staff suggest a 3 year term and an amendment to the Sandy Loam license agreement so that they have the same term dates (1/1/2028). Sandy Loam’s license agreement currently expires in 2026.

Financial Considerations
The proposed Phoenix Concepts 2025 work plan has a cost of $80,990, which is similar to the budget authorized for Farmster in 2024. The proposed Sandy Loam 2025 work plan has a cost of $126,445, which is similar to the workplan cost last year. The total programming and maintenance costs for the Ranch in 2025 is slightly reduced to $207,435, compared to 2024.

Based on revenue in 2024 to date, offsetting revenue is expected to be approximately $20-25k, with a net total annual General Fund contract cost of approximately $187,000-182, 000. City staff time is estimated at an additional $25,000, based on 2024 actuals to date.

Cost control and revenue generation, while simultaneously ensuring accessibility of community programs, continues to be a significant focus at the Ranch in 2025. Regardless, all expenditures go towards the matching grant requirements. At this time, expenditures towards the matching grant are approximately $2.3 million.

Produce and support events including workshops, Fall Fest, Volunteer Days and fundraisers.

Produce and distribute food, education and compost to the community.
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A
B
C Having determined that we need to reduce stock
in order to improve pasture soil and vegetation, I
propose to rehome cows Nani & Nellie to a
vetted farm sanctuary.

Priority Projects
Rehome Cows
Pumpkin Patch
Irrigation
Convert the pumpkin patch into a food garden
and distribute food through events, u-picks and
for suggested donation.

Bring irrigation up to code by replacing garden
hoses with permanent irrigation equipment.
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Pasture areas at Veronda-Falletti have historically been, and currently are, overstocked. This means there are too many animals living there for the available resources. Overstocking pastures can lead to reduced soil and vegetation quality, and reduced animal health.

Be reducing livestock pressure on our environment, we can rehabilitate the soil and vegetation quality and provide a better environment for our animals and our community. In the coming year, we can expect to see an increase in high-quality vegetation, and a decrease in manure concentration.

Why Rehome Our Cows?
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Where will they go?
Tikkun Olam Farm Sanctuary, near Ashland, Oregon, is eager to receive Nani & Nellie. The sanctuary, offering 10 acres of irrigated pasture, has one mini cow who recently lost her companion. Hadassah from TOFS is available to transport our cows to the sanctuary at no cost, beginning in December.
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Other Projects
Food Forest Fill empty spaces in food forest with new plants of similar species.

Soil testing & amendments to improve
production. Finish fencing and add gate so
livestock can be used to clear & fertilize.

Food Garden
Aux. Paddocks Cover crop experiments designed to improve soil quality and make the space available for use.

Crop plans Provide and enact 12-month crop plans for
greenhouses and garden, assist Sandy Loam with
crop plan for flower beds.
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In partnership with Sarah Keiser, we’ll offer technical instruction in efence and livestock care on site at the Ranch, and provide them with referrals for ongoing assistance.

Community Events
Grazing School

LOW COST
Farm Club In partnership with Sandy Loam, we’ll host a 4-week program for kids ages 8-12, teaching livestock care with hands-on activities, including hatching chicks.

Fall Fest This community favorite will be better than ever next year, with more and higher quality experiences for all ages.
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An interactive demo where beginners can learn about
shearing and go home with some fresh fleece.

Community Events
Sheep Shearing

LOW COST
Compost Workshop This workshop will demonstrate the process of compost production in its various stages. We’ll start a new compost pile with feedstock from the ranch.

Food Forest Fridays A supervised weekly u-pick. One flat entry fee to fill a crate we provide.
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Community Events

NO COST
Free Compost We will continue to assist the community with free compost.

Farmer Picnics On the first Saturday of the month, Farmer Tomi will be available from 12-1 at the picnic tables.

Volunteer Days This year we will be focused on building a cadre of trusted volunteers who can assist with regular tasks such as garden and livestock care.
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Ranch Manager/Coordinator
Tomi Henry
Callie Warne
Contact
Social Media/Marketing
Bryce Nahas
Project Manager/Garden Coordinator
[email protected]
www.fernhomestead.com
IG @ fernhomestead
[email protected]
IG @ farmer_nahas
[email protected]
www.sonomasoil.com
IG @ sonoma.soil
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2025 Work Plan
Veronda-Falletti Ranch
November 4, 2024
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Table of Contents
EXECUTIVE SUMMARY 3
PHOENIX FARM CONCEPTS 3
THE TEAM 4
WORK PLAN 5
INTERIM SUMMARY 5
RANCH OPERATIONS 6
COMMUNITY OUTREACH 8
FUNDRAISING 9
EDUCATIONAL OPPORTUNITIES 10
2025 ACTIVITY SCHEDULE 10
3 YEAR VISION 11
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EXECUTIVE SUMMARY
The Veronda-Falletti Ranch was established to provide education and recreation to the local community. Phoenix Farm Concepts proposes to continue realizing that vision in 2025 with free and low-cost community events for all ages, in conjunction with sustainable farm operations. Our events are designed to be interactive, educational and low-impact. No expertise or physical ability is necessary to participate, making the ranch accessible to all.

PHOENIX FARM CONCEPTS
Like the mythological phoenix, my land management company was born from fire. As a long time homesteader, I was just beginning to explore a passion for growing food for other people, when the Glass Fire struck in 2020. After “losing everything” I had a realization: that I hadn’t really lost anything important- my family survived, as well as the knowledge I gained in all those years growing food.

I established Fern Homestead in 2021, and immediately enrolled in SRJC’s Sustainable Agriculture program, earning an A.S. in that subject while using the practices I was learning about. In three years, I turned a 4 acre mowed field into a thriving regenerative farm that produces food for 7+ families. We produce vegetables, fruit, honey, meat, milk and eggs, nearly a complete diet for our farm share members.

In addition to growing food sustainably, Fern Homestead is dedicated to community engagement and education. We host volunteer days, tours and workshops, and one annual paid internship for an aspiring farmer. My passion for education goes all the way back to my time at UC Berkeley, where I worked at the Center for Middle Eastern Studies after graduating from that department. I planned and executed educational programming for the community, on sensitive cultural and political topics, and managed a $1M+ annual budget.
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THE TEAM
Phoenix Farm Concepts owner/operator Tomi Laine Henry has a lifetime of experience in education and events and has been growing food for over a decade. She has a B.A. in Middle Eastern Studies and an A.S. in Sustainable Agriculture. She currently manages two small farms, producing food and educational content.

REFERENCES
Emily Gottreich Adjunct Professor,
UC Berkeley
(510) 409-9723
Amy Houseman Animal and Equine
Science Program
Coordinator, SRJC
(559) 706-8059
Brooke Pippi Agricultural Engineer,

USDA-NRCS
(707) 796-9040
Project Manager and Garden Coordinator Bryce Nahas has a background in construction management and school garden education. He’s passionate about smart environmental solutions and community education. He is currently pursuing a certificate in Sustainable Ag from SRJC.

Callie Warne established social media/marketing company Sonoma Soil after seeing a need for more community engagement with agriculture. She has a bachelor’s degree in Applied Business Management and certificates in Marketing and Agribusiness. In addition to managing Sonoma Soil, she is Poultry Manager at Apricot Lane Farms, of The Biggest Little Farm documentary.

Heigi Pillor is Phoenix Farm Concepts’ 2024-25 intern. After earning a degree in Enology & Viticulture from UC Davis and becoming a winemaker, Heigi realized she has dreams of owning her own farm. She is learning food production and livestock care in pursuit of that dream.
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WORK PLAN

INTERIM SUMMARY
Since taking over management of the Ranch in July, we have pursued our goals of engaging with the community, organizing and beautifying the property, and supporting existing programming in partnership with the City and Sandy Loam.

We have been in contact with members of the Cotati Historical Society, the Rotary Club, Church of the Oaks, walkers on nearby paths, attendees at ranch events, and participants in the free compost program. We’re forming an idea of what the community wants, and how it can be achieved within the boundaries of the ecological and financial reality of the property.

We spent dozens of hours removing trash, junk and rubble from all farm areas, as well as trimming perennial bushes and trees for safe clearance between paths, buildings and equipment. Materials deemed suitable for future use were organized behind fencing to prevent animal access. Tools were organized in the barn and tool shed, a lock was added to the tool shed, and all gate codes were updated for security. Broken tools and equipment were either repaired or disposed of. We successfully implemented a livestock weight loss plan for optimum healthy weight, and treated one cow for chronic fly stress.

We provided in-person and logistical support for multiple Sandy Loam and Cotati City events, such as Open Ranch Day and Fall Fest. We facilitated interactions between the public and the Ranch’s animals, grew plant starts for a community giveaway, managed activities, recruited volunteers, and solicited funding.

RANCH OPERATIONS
Phoenix Farm Concepts currently manages three distinct use areas on Ranch property, in addition to providing advice and support in areas managed by Sandy Loam. Areas 222 of 293
under our purview are the livestock pasture and paddocks; the food forest (including the large greenhouse); and the pumpkin patch. By agreement with Sandy Loam, we manage the chicken coop and the small greenhouse.

Our livestock management includes long term planning for animal and ecological health, arrangement of all necessary tasks and procedures (such as shearing, hoof trimming, and vaccines), and daily monitoring of animal quality of life.

We strive to be in compliance with all shared agreements with the City of Cotati, the Cotati Historical Society, and Open Space District while also providing ecological farm management within the mission of the City Council and the bounds of available funding.

In the coming year, we have been charged with converting the pumpkin patch to a food garden. We plan to achieve this by testing the soil, adding appropriate amendments, extending the planting rows, and reducing the width of the rows while increasing the number of rows. We’ll use compost, mulch and cover cropping to cultivate new soil appropriate to growing vegetables.

In early 2025, we’ll begin rotational grazing of the pasture at the ranch, with a goal of increasing soil and vegetation quality, and animal health. We’ll use electric net fencing to move the animals around the pasture to achieve an appropriate level of impact. A public-facing mobile hay feeder and info station will rotate with the animals, along the fence line. The mobile feeder is designed to facilitate through-the-fence interactions between the public and the livestock, by giving people a chance to feed hay and learn about rotational grazing.

For several reasons, we recommend rehoming the ranch’s two cows, Nani & Nellie. The size and quality of the pasture is not suited to the keeping of cows. By removing the pressure applied by the cows, we can begin rehabilitating the soil and vegetation quality 223 of 293
on the property. Additionally, cows and goats/sheep need different types of electric fencing and pasture shelters. Involving both types of animals in a rotational grazing plan at Veronda-Falletti could double the costs of that program.

We have identified a sanctuary near Ashland, Oregon that is home to a single and lonely mini cow. Tikkun Olam Farm Sanctuary provides 10 acres of irrigated pasture to its animals, and owner/operator Hadassah Dejack is prepared to personally deliver Nani & Nellie to their new home there. We think this would be the best outcome for everyone.

In the auxiliary paddocks, we have begun conducting cover crop experiments designed to break up compacted soils in those areas, and make them more pleasant and useful to both livestock and humans. In November 2024, we added mobile shelters to the auxiliary paddock on West Sierra so the livestock can spend time in that area and be visible to the public during the winter.

We plan to fill empty spaces in the food forest with similar species, and the plants’ nutrient, water, and trimming/mulching needs will be closely monitored by Garden Coordinator Bryce Nahas. Bryce will bring our irrigation equipment up to code by installing additional valves and replacing garden hoses with high quality distribution and drip irrigation lines. The new system will be below ground to remove trip hazards and help the equipment last longer.

We’ll provide 12-month crop plans for use in both greenhouses and the food garden. By agreement with Sandy Loam, and as part of our mission to support educational programming with our co-licensee, we’ll grow plant starts in the SL greenhouse primarily to support SL programming or to give away or sell at other Ranch events.

Plants grown in the large greenhouse will primarily be for transplanting in the garden or food forest. We plan to use this space for educational and fundraising events as well, leaving the central area open for this purpose.
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We will continue to manage the chicken coop environment and we have started exploring options for providing the chickens with free range opportunities in the Sandy Loam garden.

COMMUNITY OUTREACH
As part of our mission of community engagement, we welcome visitors to the ranch and seek the opinions of interested community members. We are collecting contact information for people who show an interest in receiving updates, volunteering at the Ranch, or donating to support ranch operations. One of our main 2025 goals is establishing a robust cadre of trusted volunteers who participate regularly in farm events; we have several volunteer days planned, focusing on seasonal garden activities on the ranch. We look forward to helping provide people with the satisfaction of seeing their efforts produce food.

Next year we’ll institute two new recurring events: Farmer Picnics and Food Forest Fridays. On the first Saturday of every month (weather permitting), Farmer Tomi will have lunch at the picnic tables (BYO), and be available to answer questions or hear concerns from community members. On Fridays from 11:30-1:30 Bryce will open the food forest and garden to visitors and host a supervised u-pick; for a set entrance fee, each family can fill a container provided by us. Food not picked on Fridays or at relevant events will be harvested and made available to City employees for suggested donation.

Our social media accounts (@verondafallettiranch on both instagram and facebook) are thriving, with a growing engagement and almost daily posts. Our videos are up close and personal with the plants and animals on the Ranch, to allow followers to experience farm life virtually and encourage them to participate in person. Next year we’ll explore options for email marketing and a regular newsletter to share updates. We will continue to oversee the distribution of free compost to the community, and we hope to begin offering free mulch in 2025 as well.
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FUNDRAISING
We propose to create simple and voluntary donation opportunities, such as posting a QR code at the mobile feeder. This method of crowdsourcing funds provides users a streamlined process for easily donating small sums of money, which can add up. Making connections with community members creates emotional “buy-in” and allows us to build toward events with more substantial fundraising opportunities, such as an on-site farm to table dinner.

Food produced on the Ranch has not typically been available for purchase, but by diversifying our production and engaging in creative marketing practices, we can make food available to the community while also defraying operational costs.

EDUCATIONAL OPPORTUNITIES
Next year we’ll provide a regular, low-cost composting class, taught by Garden Coordinator Bryce Nahas. In Spring, we’ll host a sheep shearing demonstration at the Ranch.

In partnership with Sarah Keiser of Wild Oat Hollow, we’ll hold a “grazing school” designed for teens and adults to learn how to manage vegetation on a small acreage with sheep and goats. Technical instruction in livestock care and operation of electric fencing will be conducted at the Ranch.

Farm Club, planned in cooperation with Sandy Loam, is designed for kids ages 8-12 to learn animal husbandry skills. We’ll discover how animal products are created and how that can be done sustainably and humanely. This program will run for 4 weeks in Spring.

In addition to Farm Club, we’ll be supporting Sandy Loam with in-person and logistical assistance. We plan to present weekly lessons as part of the Early Release Enrichment Program, sparking kids’ imaginations with hands-on livestock activities. Each summer camp session in 2025 will begin with a tour from Farmer Tomi and the presentation of a 226 of 293
“Farm Chore Chart” which the kids will be responsible for checking off (with adult supervision).
2025 ACTIVITY SCHEDULE
January Rotational grazing, crop planning, terminate cover crop and sheet mulch garden, graze cover crop in aux. paddock
February Rotational grazing, pick up bare root fruit trees and pot up March Rotational grazing, terminate cover crop in aux. paddock, starting plants for Sandy Loam, Grazing School, Compost Workshop, Volunteer Day:
perennial planting and seed sowing, sow carrots in pumpkin patch April Rotational grazing, weeding in garden/food forest, sow summer cover crop in aux. paddock, direct seeding veggies, Farm Club weeks 1-2, sheep shearing demonstration
May Rotational grazing, Farm Club weeks 2-4, Compost Workshop, Volunteer Day: veggie transplanting, first u-pick
June Rotational grazing, maintaining food forest/garden, weekly u-pick July Rotational grazing, Volunteer Day: harvest/weeding in food forest and garden, sowing fall veggies, weekly u-pick
August Compost Workshop, Volunteer Day: transplanting fall veggies, weekly u-pick
September Harvest Dinner
October Fall Fest
November Volunteer Day: putting the garden to bed
December Rotational grazing, cover cropping
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3 YEAR VISION
Our ecological priority is improving soil and vegetation quality at the Ranch, so that it can support more, and healthier, animals, plants and people. Our community priority is encouraging participation in ranch activities. With more participation, we can do more:
grow more food, make the ranch more beautiful, and give away more compost, plants and knowledge.

To achieve this, we’ll grow our base of volunteers, donors, and event attendees. We’ll listen to the community and hear what people want to see. The possibilities are endless:
beekeeping, wool working, goat milking, growing food, canning & preserving, trialing additional cultivars or species, all in an effort to both satisfy and pique the community’s curiosity. In addition to plant and food giveaways, we’ll begin selling our food products via a farm stand and/or a CSA program to help support ranch operations.

In the coming years, I expect to watch Veronda-Falletti Ranch grow into a thriving community hub of food and knowledge. We’ll increase production efficiency in every area, utilize spaces that haven’t been useful in the past, and produce healthy food products from healthy soil. We will actively fundraise, for all ranch operations, but particularly for the new barns.

We look forward to working with the City of Cotati and our other Ranch partners to fulfill this dream, and we encourage City Hall employees and City Council members to visit Fern Homestead, to see what three years of our management services can do. 228 of 293

V E R O N D A - F A L L E T T I R A N C H
202 5 WO R K P L A N

FRE E & A F F O RD A B L E PR O G R A M S F O R

C H I LDRE N , Y O UT H & F A M I L I E S
Sandy Loam Sustainable Communities | sandyloam.org
Ammamma Tati | ammammatati.com
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T A B L E O F C O N T E N T S
Scope of Work
10 Calendar
Sandy Loam Sustainable Communities | sandyloam.org
1 2 Cost Plan
1 About Us
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A B O U T U S
Provides high-quality early childhood education best exemplified by the Montessori Method, and sustainability-minded workshops, events & enrichment programs for individuals of all ages. We serve the beautiful communities located in Southern Sonoma County.

Sandy Loam Sustainable Communities | sandyloam.org

P R O V I D E R O F F R E E & A F F O R D A B L E P R O G R A M S operates

C A M P S & E N R I C H M E N T P R O G R A M S

W O R K S H O P S & S P E C I A L E V E N T S
Sandy Loam’s programs aim to foster real-life community relationships in an increasingly virtual world, and provide practical tools and experiences required to take the world’s future into our hands.

In 2025, programs will be expanded to include families, seniors, and disabled individuals.

Sandy Loam offers Montessori-inspired enrichment programs that allow preschool and elementary-aged children to be active participants in the care of Veronda-Falletti Ranch. Students have the opportunity to care for the Ranch’s animals and guide the development of food and garden plans. After-school programs and camps are hosted with appropriate health and safety measures in place, and are staffed with experienced instructors with background clearances and first aid training.

Located at
Veronda-Falletti Ranch
Cotati, CA
1 C O M M U N I T Y E D U C A T I O N
Sandy Loam connects and engages with community members through projects and activities that focus on environmental sustainability and Sonoma County’s diverse cultural heritage. The basis for this work is the Veronda-Falletti Ranch itself! Demonstration gardens and plantings are continuously worked on throughout the year.
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A B O U T U S
Gabe has been dedicated to environmental education since graduating high school. He has worn many hats as an
educator, including coordinating with classrooms around Santa Rosa through the School Garden Network, teaching
wildlife conservation at the Oakland Zoo, and as a Summer Camp Director at various camps in California.

Most recently he has served as Garden Educator / Specialist with Napa County Office of Education’s COOL School
program in Santa Rosa, maintaining the school gardens at Meadowview & Bellevue Elementaries and providing lessons throughout the school day. He looks forward to bringing this wealth experience to the Cotati community!
Sandy Loam Sustainable Communities | sandyloam.org

T E A M
2 Francisca is an avid yoga and Reiki practitioner, California Naturalist, hiking guide, and herbalist who brings together outdoor education, mindful movement, and healing
practices. Her community-focused practice includes
partnerships with local nonprofits, yoga hikes, and
specialized programs in schools, summer camps, private
settings, and corporate environments.

She holds a Philosophy degree from Cal Poly, SLO, and
trained in Hatha yoga, with over 5,000 hours teaching diverse yoga styles including Restorative, Chair, Gentle, Prenatal, Vinyasa, and Kids/Family yoga.

Aishwarya realized early on that her career would be devoted to working with families and building sustainable
communities. After gaining experience in education,
healthcare and environmental sustainability, she saw endless and exciting possibilities in merging these interests. This is how Sandy Loam was born! She is proud to be a part of the Cotati community, a welcoming and diverse place that she loves calling home.

Aishwarya has a B.A. in Journalism & Mass
Communications from New York University and a J.D. from UC Law SF (formerly UC Hastings College of the Law), and is pursuing continuing education in environmental planning and spatial data science.

Francisca Lizotte
Enrichment Specialist
Gabe Smith
Environmental Educator
Program Coodinator
Aishwarya Kancharla
Director
Program Curator
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S C O P E O F W O R K
Sandy Loam Sustainable Communities | sandyloam.org
3 2. Pollinator hedgerow within Sandy Loam-managed
areas of the Ranch: In 2025, a pollinator hedgerow of
low-profile native plants coupled with higher-profile
native trees will be installed, in effect preserving the line of sight into this historic property. Included in the project is an oak restoration on the corner of E. School St. and El Rancho St. The plant list was compiled by experts at the environmental consulting group Prunuske & Chatham to
emphasize species that are well-suited to lawn
conversions. In addition to providing habitat for
pollinators, this hedgerow will introduce the community to native California landscaping.

This project is being implemented under a partnership
with Point Blue Conservation Science’s STRAW
program, with grant funding from the California Wildlife Conservation Board (“WCB”) for the Building WildlifeFriendly Resilience and Equity in California’s Working Landscapes Project. School children from four local
classrooms will be guided through the restoration process by Point Blue’s team. Pending CEQA clearance and
completion of the Landowner Agreement between Point
Blue Conservation Science and the City of Cotati, the
hedgerow will be installed on February 20 and 25, 2025. buckeye
coast live oak
Valley oak
common manzanita
coyote brush
wild lilac, blueblossom
western redbud
hazelnut
coffeeberry
silk tassel
toyon
red flowering currant
California rose
blue elderberry
narrow leaf milkweed
California fescue
sticky monkey flower
bee plant
A. Property Management
Sandy Loam will continuously monitor and provide oversight of Veronda-Falletti Ranch to ensure safe public access and a comfortable experience for visitors, including ensuring timely janitorial services, routine upkeep of facilities, and seasonally-responsive landscape management of Ranch premises and garden on the corner of School St. and West Sierra Ave. Sandy Loam will manage vendors and contractors brought on board to support property management efforts.

In order to educate young people, their families and community members on agricultural & environmental topics and broader themes, farm and garden demonstration areas will continue to be designed, built and maintained. In 2025, we anticipate two major projects:

1. Native flowers & foods demonstration garden installation & management:

This garden, along W. Sierra Ave in front of the ranch house, will serve as the foundation for the youth curriculum, community workshops and perhaps even marketable food, medicinal and ornamental products that are native to Sonoma County and California. While non-native plants may find a home here, the emphasis will be on native plants.
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S C O P E O F W O R K
Enrichment Programs for Youth
Farm and Chicken-Keeping Field Trip Program for Youth (ages 3-10) Farm Camps (6 summer sessions) (ages 4-12)
Early Release Enrichment Program (ages 5-10)
Farm Club (in partnership with Phoenix Farm Concepts) (ages 8-12) Sandy Loam Sustainable Communities | sandyloam.org
B. Program Management
Sandy Loam will continue to enhance public access to Veronda-Falletti Ranch through meaningful farm and nature-focused programs that are free or low-cost. A special emphasis will be placed on building relationships with organizations serving people with unique needs and disabilities, engaging with retired individuals through a volunteer program, and working towards long-term financial sustainability.

Sandy Loam will maintain oversight of farm & nature educational and enrichment programs and camps including mandated record-keeping, regulatory compliance, community relations, staff and contractor management, student/participant behavioral guidance and parent communication.

In 2025, Sandy Loam programs will implement the following programs:
4 Workshops & Events
Open Ranch Days (5 days)
Garden & Nature Workshops (5 total)
Workshop: Intro to Gardening Tools
Flower Harvesting & Bouquet-Making
Farm to Table
Bulbs!
Holiday Workshops:

Cookie Decorating & Cocoa
Teatime Crafting
Cotati Fall Festival
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E N R I C H M E N T P R O G R A M S

P A I N T I T B R I G H T

F A R M & N A T U R E C A M P S
Sandy Loam will offer enrichment programs with appropriate health and safety measures in place, and will be staffed with experienced instructors with background clearances and first aid training.

Sandy Loam Sustainable Communities | sandyloam.org
6 one-week sessions serving TK-5 grades,
split into two cohorts. Each camp session will
run from Monday through Thursday, from
8:30am - 2:00pm.

A robust farm, art and nature-based program
will be planned and implemented. Movement
and yoga will be incorporated every day.

Farmer Tomi Henry will act as a guest
instructor for one morning per camp, and will
help establish an age-appropriate farm “chore
chart” for campers.

Sandy Loam will market Camp Cotati
programs in addition to its own camps through
a promotional partnership with
enrichment.kids
A culminating art show and party will be held
for campers and their families, as well as
Camp Cotati participants.
5 A farm, art and nature-based program
planned and implemented every
Wednesday that local schools are in
session, serving K-5 grades. Movement
and yoga will be incorporated every week.

Flexible sign-ups, children may attend as
many or little days as desired.
"Pay what you can" model, with a $25
minimum fee for a 5+ hour program.

Limited spots may also be available for a
shorter yoga & movement session at a rate
of $10.

Farmer Tomi Henry will be integrated
into the program, and will visit the
students every Wednesday for a 30-
minute session. Students will support
Farmer Tomi Henry in care of the
animals.

E A R L Y R E L E A S E
01 E N R I C H M E N T P R O G R A M 02
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E N R I C H M E N T P R O G R A M S

F A R M A N D C H I C K E N - K E E P I N G F I E L D T R I P

P R O G R A M F O R Y O U T H
Continued collaboration with local preschool
groups which conduct walking field trips to the
Ranch at no cost: preschoolers and teachers have
regular monthly access to programs, resulting in
relatively stable groups of children receiving
increasingly complex and exciting opportunities to
participate.

Specialized farm and nature curriculum developed
& targeted to youth with disabilities or learning
differences.

Expansion of program to include other school
groups and non-profit organizations. A fee-based
field-trip program will be developed and marketed.

Follow-up curriculum is shared with teachers, and
the general community, so that the children’s
experiences at the Ranch are easily integrated into
the classroom and at home.

The Field Trip program has been expanded to include broader school-age groups, community school and non-profit groups. In 2025, we will begin publishing a social media newsletter that shares our curriculum with the broader community.

Sandy Loam Sustainable Communities | sandyloam.org
6 Y O U T H F A R M C L U B
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This unique farm club will be held in partnership
with Farmer Tomi Henry to provide animal
husbandry and horticultural skills to youth ages 8 to
12 years old over four consecutive Saturdays in the
Spring.

Sandy Loam will develop the garden curriculum for
the program, as well as hold responsibility for the
student care/classroom management aspects of the
program, including behavioral guidance and parent
communication.

Newprogram!
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W O R K S H O P S & E V E N T S

O P E N R A N C H D A Y S
Casual farm and art experiences for youth
will be provided during 5 special
afternoons. Families love dropping in to
explore the ranch and participate in
activities.

Sandy Loam Sustainable Communities | sandyloam.org
5 open ranch days
Staffing to be provided by Sandy Loam.

Included:

Ice cream, hot cocoa & other treats
Farm and nature based activities
Art stations
7 01
F A L L F E S T I V A L 02
The Fall Festival will return and will be
collaboratively operated by the City of Cotati,
Sandy Loam and Phoenix Farm Concepts.

Hours of Operation:

One Friday: 3:30pm - 6pm
One Saturday: 10am - 3pm
City of Cotati to set price of entry
Festival features to include:

Pumpkin patch & pumpkin painting
Crafts
Fall harvest giveaway
Culinary and beverage experiences for
adults
Hay bale pyramid
Corn sensory boxes
Pumpkin bowling
Chicken & animal petting
Photo area backdrop
Games: pumpkin toss
"How tall this fall" sign
Hot cider & donuts
Music
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W O R K S H O P S & E V E N T S

W O R K S H O P S
Holiday Workshops will be held for up to 24 individuals per session, and will be structured as open air gatherings.

Sandy Loam Sustainable Communities | sandyloam.org
Sandy Loam worked with a Sonoma State University student group called Innovation Hub, whose members Sophie Buzzini, Magdali Gramajo, Marcus Grundman, and Siena Guerra conducted research and surveys to determine which program structures and topics most interest the community. Based on their input, our workshop schedules have been revised to make them more accessible to families, with most occurring in the late afternoon. And, workshop topics have been broadened to include areas that interest all ages and abilities. 8 03
The following workshops will be held for up to 14 participants and/or 6 families on the following topics. Participants will walk away with knowledge and goodies. The City of Cotati will establish fees.

Intro to Gardening Tools
Giveaway:

Tool & Plant Starts
Flower Harvesting &
Bouquet-Making
Giveaway:

Flowers
Farm to Table
Giveaway:

Treats
Bulbs!
Giveaway:

Bulb Planter &
Assorted Bulbs
Cookie Decorating & Cocoa
Pick up a cookie decorating
kit and have hot cocoa.

Teatime Crafting
Sip tea and make nature-based
crafts, ornaments or centerpieces.
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Month Ranch Programs
January
Early Release Enrichment (W)
Field Trips (~10)
February
Early Release Enrichment (W)
Field Trips (~10)
Pollinator hedgerow tentative
installation period w/ STRAW
March
Early Release Enrichment (W)
Field Trips (~10)
Open Ranch Youth Day
Workshop: Intro to Gardening Tools
April
Early Release Enrichment (W)
Field Trips (~10)
Open Ranch Youth Day
Farm Club w/ Phoenix Farm Concepts
May
Early Release Enrichment (W)
Field Trips (~10)
Open Ranch Youth Day
Workshop: Flower Harvesting &
Bouquet-Making
June
Paint it Bright Farm Camps TK - 5th
grade (3 sessions)
Month Ranch Programs
July
Paint it Bright
Farm Camps TK - 5th grade
(3 sessions)
August
Workshop: Farm to Table
Open Ranch Youth Day
September
Early Release Enrichment (W)
Field Trips (~10)
Open Ranch Youth Day
October
Early Release Enrichment (W)
Field Trips (~10)
Fall Festival (incl. Fall workshops)
November
Early Release Enrichment (W)
Field Trips (~10)
Workshop: Bulbs!
December
Early Release Enrichment (W)
Field Trips (~10)
Holiday Workshops: Cookies
Decorating & Cocao; Tea Time
Crafting

P R O G R A M C A L A N D A R
Sandy Loam Sustainable Communities | sandyloam.org
free &
Affordable
Programs
5 Days p/ Week
Linking Community to
Farms & Nature
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C O S T P L A N
2025 Cost Plan - Item Cost Total
General Management Costs - Fixed Fees
Administrator & Program Curator - Aishwarya Kancharla $18,000 Environmental Educator & Program Coordinator - Gabe Smith $60,840 Enrichment Specialist - Francisca Lizotte $7,500
Annual Administration & Marketing Fee (includes enrichment.kids marketing costs)
$1,945
Subtotal $88,285
Property Management Costs - Estimated Reimbursable Expenses Administrative Costs, Materials & Supplies $5,200
Seasonally-Responsive Landscape Management $10,800
Janitorial Services $5,200
Subtotal $21,200
Program Implementation Costs - Estimated Reimbursable Expenses Summer Camp & Assistant Teachers $11,760
Estimated Reimbursable Expenses $5,200
Subtotal $16,960
TOTAL $126,445
Estimated Labor Hours
Environmental Educator
& Coordinator
Enrichment
Specialist
Summer Camp
Teachers
Farm & Chickenkeeping Field Trips 160
Early Release Enrichment Program & Farm Camp 448 112 392 Summer Camps - 6 Sessions 400 84
Workshops 72
Fall Festival 40
Open Ranch Days 40
Property Management, Gardening & Harvesting 630
Community Outreach & General Admin 225
TOTAL 1855 196 392
Sandy Loam Sustainable Communities | sandyloam.org
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Contact
Sandy Loam Sustainable Communities
175 West Sierra Ave.

Cotati, CA 94931
t. 707-664-5347
sandyloam.org
Sandy Loam Sustainable Communities | sandyloam.org
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1 Roots Restoration Project
Landowner Agreement

POINT BLUE CONSERVATION SCIENCE
Project #XXXXXX
This Landowner Agreement (“Agreement”) is entered into by and between Point Blue Conservation Science (“Point Blue”) a California non-profit benefit corporation, and The City of Cotati (“Landowner”). Point Blue and Landowner are sometimes referred to herein individually as a “Party” and collectively as the “Parties.”

RECITALS
A. Point Blue is a non-profit benefit corporation.

B. Point Blue has received funding from the California Wildlife Conservation Board (“WCB”) for the Building Wildlife-Friendly Resilience and Equity in California’s Working Landscapes Project for wildlife habitat restoration projects on approximately 40,000 acres throughout California.

C. Landowner owns, operates, or is a tenant of the real property described in Exhibit A (“Property”). Landowner is authorized to permit Point Blue, its employees, agents, and designees, including its Subgrantees and Subcontractors (collectively, “Point Blue”), to access the Property to complete wildlife habitat restoration on the Property (“Project”).

D. The Project Plan described in Exhibit B outlines the restoration and enhancement work for the Project (“Work”) that will be conducted during the Work Term as defined in Section 1(b). All or part of the Work will be conducted by third parties retained by Point Blue (“Subgrantees”).

Point Blue’s Subgrantees shall have all rights of Point Blue under Section 1. After the Work Term, monitoring, inspection, and/or maintenance activities (“Post-Implementation Activities”) shall be conducted during the Post-Implementation Term as defined in Section 1(c).

E. Landowner acknowledges the benefits of the Project and therefore has agreed to allow Point Blue to enter the Property to implement the Project on the terms and conditions set forth herein.

NOW THEREFORE, Point Blue and Landowner agree as follows:

1. Right of Access.
(a) Right of Access. Landowner grants to Point Blue the right of access to the Property to implement and inspect the Project. The right of access to the Property shall be subject to all terms and conditions in this Agreement.
(b) Work Term. The Work Term shall commence on Work Start Date and expire on Work End Date.
(c) Post-Implementation Term. The Post-Implementation Term shall commence on the expiration of the Work Term and expire on January 13, 2038. 242 of 293
2 (d) Work Areas. Except for ingress and egress to the Property, the Work and PostImplementation Activities shall be confined to the area shown in Exhibit C (“Work Areas”). (e) Advance Notice. Point Blue and its Subgrantee(s) shall give no less than seven (7) days advance notice prior to entering the Property to conduct the Work or Post-Implementation Activities. The notice shall be sufficient if made either by telephone, or e-mail directed to the address and telephone number shown below or to an alternate address provided by Landowner. (f) Nonexclusive Right - Protection of Project. Point Blue’s right of access to the Property is not exclusive. Landowner and its employees, licensees and invitees shall each have the right to use the Property for all purposes permitted by federal, state, and local statutes, laws, ordinances, codes, regulations, and rules, so long as such use does not interfere with the rights of Point Blue under this Agreement, interfere with or delay the Work or Post-Implementation Activities, or damage, destroy, or reduce the effectiveness of any part of the Property restored or enhanced for the Project. Landowner shall make reasonable efforts to prevent any such practices or acts by any person acting for, on behalf of, or under right or permission granted by Landowner. If during the Work or Post-Implementation Terms Landowner willfully destroys the parts of the Property improved by the Project, without replacing in kind, such failure shall be a material default under Section 3.
(g) Inspection. Landowner shall permit Point Blue and the agents and employees of WCB and the California Department of Fish and Wildlife (“DFW”) to inspect the Property on at least an annual basis during the Work and Post-Implementation Terms to determine whether the Project has been implemented in compliance with the Grant Agreement and this Agreement.

Point Blue, WCB, and DFW shall give Subgrantee 30 days’ advance written notice before entering the Property for an inspection.
(h) No Property Interest Conveyed. This Agreement does not convey a property interest to Point Blue in the Property or any portion thereof.

2. Successors Bound By Agreement. The terms and conditions of this Agreement shall be binding on, and inure to, the benefit of the Parties and their personal representatives, heirs, successors, and assigns. Landowner shall provide written notice to Point Blue of any sale or transfer of title or possession of the Property or the Work Areas. Landowner shall provide written notice of this Agreement to buyers, lessees, licensees, and operators (“Successors”) and shall secure the agreement of all Successors to be bound by the terms of this Agreement.

3. Default. In the event of a material default by either Party, this Agreement may be terminated by the non-defaulting Party if (a) the non-defaulting Party gives written notice to the defaulting Party describing the nature of the default, (b) the non-defaulting Party provides the defaulting party a reasonable timeline to cure the default, and (c) the defaulting party fails to cure the default within such period. If the material default is Landowner’s failure to maintain the parts of the Property improved by the Project during the Work and Post-Implementation Terms, in addition to the right to terminate the Agreement and other remedies provided by law or equity, Point Blue shall be entitled to reimbursement from Landowner for Point Blue’s soft and hard costs to restore the Property to its condition prior to Landowner’s failure to maintain the parts of the Property improved by the Project.

4. Cooperation and Coordination. During the Work and Post-Implementation Terms, Landowner shall take proper, reasonable, necessary, and sufficient precautions, safeguards, 243 of 293
3 and protections against the occurrence of any accidents, injuries, or damage to any person or the Property. Landowner shall notify any licensees of this Agreement and require that they comply with the terms herein.

5. Informational Products
Landowner has been made aware that all informational products (e.g. data, studies, findings, management plans, manuals, photos, etc.) relating to California’s natural environment and produced with the use of Grant Funds, Point Blue’s funds, or other public funds shall be catalogued in the California Geoportal (https://gis.data.ca.gov), maintained by the California Department of Technology.

6. Insurance and Indemnification.
(a) Insurance. Point Blue agrees to maintain insurance during the Work and PostImplementation Terms at its own cost and expense Point Blue shall maintain limits no less than:

1. General Liability: $2,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.

3. Employers Liability: $1,000,000 per accident for bodily injury or disease

4. Worker’s Compensation, Statutory Limits: $1,000,000 per accident for bodily injury or disease.

5. Umbrella Insurance: No less than $5,000,000 per occurrence and aggregate.

Point Blue shall name Landowner, and Landowner’s elected and appointed officials, employees and agents as additional insured in the insurance policies. Any insurance policy shall include a statement that the coverage is primary and non-contributory; and include an endorsement of waiver of subrogation.

Point Blue shall be obligated to require any Subgrantee and Subcontractor to provide the same insurance coverage as Point Blue is obligated to provide, including all required endorsements, as stated above.
(b) Indemnification. Point Blue shall indemnify, defend, and hold Landowner harmless from any and all claims, liability, losses, costs, charges, or expenses (“Claim”) resulting from the acts or omission of Point Blue or its Subgrantees in the performance of this Agreement. This indemnification obligation shall not apply to the extent a Claim is the result of a negligent or wrongful act or omission of Landowner.
(c) Repair of Damage. Point Blue shall promptly repair any damage to the Property caused by Point Blue or its Subgrantee’s acts or omissions.

7. Force Majeure. A Force Majeure Event is an event that is beyond a Party’s reasonable control that materially and adversely affects a Party’s ability to perform its obligations under this Agreement, including wildfire, extreme flood or landslides, earthquake, explosion, war, civil unrest, or other similar forces. A Party will not be responsible for a failure to perform its obligations under this agreement if such failure to perform is caused by a Force Majeure Event. 244 of 293
4 The Parties shall resume performance under this Agreement as soon as practicable under the circumstances when the Force Majeure Event has abated. If a Force Majeure Event occurs, the Party seeking to avoid or delay its obligations under this Agreement as a result of the event shall notify the other Party as soon as practicable of the date and details of the event and confer with the other Party to determine the best course of action.

8. Compliance with Applicable Laws. The Parties agree to comply in all respects with any and all applicable federal, state, and local statutes, laws, ordinances, codes, regulations, and permit conditions in connection with the Project.

9. Notice.
(a) Method of Notice. The Parties shall give all notices and communications between the Parties by (i) personal delivery, (ii) a nationally-recognized, next-day courier service, (iii) first-class registered or certified mail, postage prepaid, (iv) fax, or (v) electronic mail to the Party’s address specified in this agreement, or to the address that a Party has notified to be that Party’s address for the purposes of this section.
(b) Receipt of Notice. A notice given under this Agreement will be effective on the other Party's receipt of such notice.

Landowner:

City Manager
201 West Sierra Avenue
Cotati, CA 94931
Phone: 707.665.3622
Email: [email protected]
Point Blue Conservation Science:

Danielle Valverde
Point Blue Conservation Science
3820 Cypress Dr., #11
Petaluma, CA 94954
707-781-2555 x404
[email protected]

10. General Provisions.
(a) Recitals. The recitals set forth above are, by this reference, incorporated into and deemed a part of this Agreement.
(b) Integration. This Agreement contains the complete and entire agreement between the Parties and cannot be altered, modified, or amended except by the written agreement of the Parties. The Parties agree that there are no oral agreements, understandings, representations, or warranties which are not expressly set forth herein. (c) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California.
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5 (d) Captions. All sections and paragraph headings and captions appearing in this Agreement are included for convenience only and shall not be considered in interpreting this Agreement.
(e) Severability. If any term, provisions, condition, or covenant of this Agreement shall, to any extent, be held invalid or unenforceable, the remainder of this Agreement shall not be affected thereby, and this Agreement shall otherwise be valid and enforceable to the fullest extent permitted by law.
(f) Exhibits. All exhibits attached hereto are hereby incorporated by reference and made a part of this Agreement.
(g) Waiver. A waiver by one Party of the performance of any covenant, agreement, obligation, or condition, shall not be construed as a waiver of any other covenant, agreement, or condition. A waiver by any Party of the performance of any act shall not constitute a waiver of the performance of any other act or an identical act required to be performed at a later time. (h) Interpretation. Each Party and its counsel have reviewed and revised this Agreement and any rule of contract interpretation to the effect that ambiguities or uncertainties are to be interpreted against the drafting Party or the Party who caused it to exist shall not be employed in the interpretation of this Agreement or any document executed in connection herewith.
(i) Mediation of Disputes. If a dispute arises out of or relates to this Agreement or the breach thereof, the Parties agree to first try in good faith to settle the dispute by non-binding mediation before resorting to binding arbitration or litigation. (j) Jurisdiction and Venue. The Parties acknowledge and understand that the making of this Agreement is in Sonoma County, California. The exclusive venue for any suit, action, or proceeding shall be Sonoma County, California.
(k) Counterparts. This Agreement may be executed and delivered in counterparts, each of which shall be deemed to be a duplicate original hereof. This Agreement may also be executed in multiple counterparts and shall be effective when counterparts hereof, when taken together, bear the signatures of all the Parties set forth below. (l) Authority. The undersigned Parties affirm that the individuals signing this Agreement have been granted the authority to do so.
(m) Litigation Costs. In any legal proceeding to enforce this Agreement, the prevailing party shall be entitled to recover its costs of suit, attorneys’ and experts’ fees in the trial court and on appeal, and costs of enforcing any judgment.

IN WITNESS WHEREOF, this Agreement has been entered into as of the date and year set forth below.

Signatures:
______________________________________________________________________________ Damien O’Bid, City Manager on behalf of Landowner Date
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6 ______________________________________________________________________________ ______________________________________________________________________________ Padmini Srinivasan, CFO Point Blue Conservation Science Date ______________________________________________________________________________ PB Project Director LEAD Date
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7 Exhibit A
Description of Property
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8 Exhibit B
Project Plan
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9 Exhibit C
Diagram of Work Areas
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Figure 1. Veronda-Falletti Ranch

HEDGEROW PROJECT
175 W. Sierra Ave., Cotati
Plan Date: 7/25/24
Photo Date: 5/27/23
Partners: Point Blue/STRAW & PCI
200 ft
N
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TABLE 1. Veronda-Falletti Ranch Plant Quantities + Guidelines 7/25/24 Area
#1
Area
#2
Area
#3
Area
#4
Area
#5
TOTALS Propagule Plant Protection
Length (feet): 60 70 100 80 50 360
Width : 14 10 8 10 50
Sq. Ft. 840 700 800 800 2500 5640
Species Common Name
Trees***
Aesculus californica buckeye 2 2 4 Direct Seed small plant & gopher Quercus agrifolia coast live oak 0 Direct Seed small plant & gopher Quercus lobata Valley oak 2 2 3 4 11 Direct Seed small plant & gopher Shrubs**
Arctostaphyos manzanita common manzanita 10 10 DeePot + Larger Baccharis pilularis coyote brush 5 5 DeePot + Larger
Ceanothus thrysiflorus wild lilac, blueblossom 6 5 11 DeePot + Larger As needed Cercis occidentalis western redbud 4 4 8
Corylus cornuta hazelnut 6 5 11 DeePot + Larger As needed Frangula californica coffeeberry 6 4 5 5 20 DeePot + Larger As needed Garrya elliptica silk tassel 2 2 5 9 DeePot + Larger As needed Heteromeles arbutifolia toyon 6 4 10 5 25 DeePot + Larger As needed Ribes sanguineum red flowering currant 5 5 10 DeePot + Larger As needed Rosa californica CA rose 5 5 DeePot + Larger As needed
Sambucus nigra ssp. Cerulea blue elderberry 5 5 DeePot + Larger As needed Forbes & Grass-like*
Asclepias fascicularis narrow leaf milkweed 10 6 6 5 27 DeePot/gallon small plant Festuca californica California fescue 5 10 15 DeePot/gallon Mimulus aurantiacus sticky monkey flower 10 10 20 DeePot/gallon Scrophularia californica bee plant 8 6 6 5 25 DeePot/gallon small plant Totals: 46 38 52 57 28 221 221 check
Small Plant: See Small Plant Detail, attached
As Needed = Use Deer-Off type spray if browse is observed, tree wrap for girdling All plants receive a Mat or Mulch = Coir mat alone, or cardboard with 3" of arbor mulch on top Many of these plants can be hedged or pruned
*2-foot spacing between plants **4-foot spacing, single or double row for most shrubs. ***Wide spacing for trees: 10 to 20 feet apart
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TOMI HENRY

VERONDA-FALLETTI RANCH DEMONSTRATION FARM LICENSE AND

PROPERTY MANAGEMENT AGREEMENT
THIS LICENSE AND PROPERTY MANAGEMENT AGREEMENT (this
“Agreement”) is entered into this _____ day of ________, 2024 (the “Effective Date”), by and between the City of Cotati, a municipal corporation of the State of California (the “City”), and Tomi Henry, a sole proprietor (“Licensee”). The City and Licensee are sometimes individually referred to as a “Party” or collectively as the “Parties.”

RECITALS
A. The City is the owner of that certain real property located at 175 West Sierra Avenue, in the City of Cotati, Sonoma County, California (the “Property”) including the Licensed Premises, as more particularly described and depicted in Exhibit A attached hereto and incorporated herein by this reference, consisting of approximately 4.4 acres including a perimeter pathway and picnic area at the corner of East School Street and El Rancho.

B. The Property may contain one or more non-exclusive licenses to further the public purpose of the Property, including use as a demonstration farm, recreation area, and farm based and historical education. This non-exclusive license agreement covers access to the Property, which includes the perimeter fencing and all areas and structures within the perimeter fencing, including the Licensed Premises in Exhibit A (the “Licensed Premises”).

C. The Property and Licensed Premises are subject to restrictions in use, as described in that certain Deed and Agreement by and between the City of Cotati and the Sonoma County Agricultural Preservation and Open Space District recorded October 17, 2008 as Document No. 2008-095027 (the “Conservation Easement”) and that certain Agricultural Preservation and Open Space District (“Open Space District”) and the approved City Work Plan dated July 1, 2021 attached hereto as Exhibit B, as may be subsequently amended, both incorporated herein by this reference.

D. On September 24, 2018, the City and Farmster entered that certain Veronda-Falletti Ranch Demonstration Farm License Agreement (the “2018 License Agreement”) for a threeyear period ending September 24, 2021, with up to three additional 5-year renewal terms unless either party gave notice to terminate.

E. On October 26, 2021, the City approved new license agreements with Farmster and Ammamma Tati to cover the primary conditions of use of the property for a 5-year term, while relying on an annual Farm Work Plan process for operational and programming details to maintain flexibility as community needs dictate.

F. On February 13, 2024, the City revised the license agreements to incorporate the sublicensee template and various other minor amendments to clarify administrative procedures.

G. On July 1, 2024, Farmster provided the City with official notice of its intent to dissolve and discontinue operations on the Property, effective July 31, 2024. 253 of 293
H. On July 9, 2024, the City Council authorized the execution of a 6-month license agreement with the Licensee to perform work in the approved Farm Work Plan.

I. During the interim license agreement period, the City issued a request for proposals for long term operations on the Property, which was awarded to Tomi Henry on December 10, 2024.

J. To accomplish the programs and activities contemplated for the Property, the City may, in its sole discretion, enter into additional non-exclusive license agreements with any other party (“Other Licensees”) to operate programs and facilities on the Property, including mutual access rights over the Property.

K. The Parties desire to enter into this Agreement in order to continue available programming and activities on the Property by the Parties for the benefit of the community during the 6 monthfor a 3-year license period, under the terms and conditions set forth in this Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

1. Grant of License. City hereby grants to Licensee a revocable, non-transferrable, nonexclusive license (the “License”) to enter the Property and for the specific uses set forth in this Agreement for the Licensed Premises. The License is subject to the terms, covenants, and conditions set forth in this Agreement, and Licensee covenants as a material part of the consideration for this Agreement to keep and perform each and all of the terms, covenants, and conditions set forth herein. The License does not grant a leasehold or grant any property rights to Licensee in the Property or the Licensed Premises. Licensee hereby acknowledge that this Agreement grants a license, not a lease, and therefore Licensee does not have a possessory interest in the Property or the Licensed Premises. City expressly retains the right to grant other licenses relating to the Property and Licensed Premises to any Other Licensees on such terms as City may, in its sole discretion, deem appropriate, but which do not unreasonably interfere with the License granted hereunder or would inhibit Licensee’s ability to perform each and all of the terms, covenants, and conditions set forth herein.

It is understood and agreed by Licensee that the Property and the Licensed Premises are subject to concurrent and superior use by the City including but not limited to the City’s use of the Property and Licensed Premises as open space or other future community use, provided, however, City will not inhibit Licensee’s ability to perform each and all of the terms, covenants, and conditions set forth herein.

Licensee shall not interfere with the use of or access to the Property or the Licensed Premises by City or by any Other Licensees, nor shall Licensee interfere with any other activity the City deems fit to conduct on the Property, including the Licensed Premises.

2. Expiration of License. The License granted hereunder will automatically expire on January 31, 20285 (the “Expiration Date”). Notwithstanding the foregoing, the License granted by the City herein is non-transferrable, non-exclusive, revocable, and may be terminated at any time in accordance with Section 27.
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If Licensee does not surrender the Property and/or the Licensed Premises upon the Expiration Date or the sooner termination of the License, Licensee shall be deemed a trespasser and shall be liable to the City for damages, and any personal property of Licensee remaining on the property after the Expiration date or sooner termination of the License shall be deemed to have been abandoned. Licensee agrees to indemnify, defend (with counsel approved by City) and hold the City and its elected and appointed officers, officials, employees, agents and representatives (all of the foregoing collectively “Indemnities”) harmless from and against all liability, loss, cost, claim, demand, action, suit, legal or administrative proceeding, penalty, deficiency, fine, damage and expense (including, without limitation, reasonable attorneys’ fees and costs of litigation) (all of the foregoing collectively “Claims”) resulting from Licensee’s failure to surrender the Property and/or Licensed Premises, including, without limitation, any Claims made by any Other Licensee or succeeding licensee. Licensee’s indemnification obligations set forth in this Section 2 shall not apply to Claims arising from the gross negligence or willful misconduct of the Indemnitees.

3. License Fee. For and in consideration of this Agreement and the License granted herein, on or before the Effective Date and each anniversary thereof, Licensee shall pay to City a fee (the “License Fee”) in the amount of One Dollar ($1.00) per year, which is in addition to Licensee’s agreement to operate the Licensed Premises in accordance with the Farm Work Plan.

4. Appointment of Property Manager. City hereby appoints Licensee as the Property Manager for the Licensed Premises portion of the Property with the responsibilities for managing, operating, maintaining and servicing the Licensed Premises, only (collectively, the “Management Services”). The specific Management Services required to be performed by Property Manager on the Licensed Premises are set forth in the Farm Work Plan and Exhibit C attached hereto and incorporated into this Agreement by this reference.

5. Representations and Warranties. Licensee represents and warrants to the City that: (i) Licensee and Licensee’s employees, contractors or subcontractors have the necessary skills, experience and resources to provide the Management Services at the Licensed Premises; (ii) Licensee and any of Licensee’s employees, contractors or subcontractors providing the Management Services at the Licensed Premises are qualified to perform the duties of Licensee under this Agreement in full compliance with the laws of the State of California and hold all required licenses, certifications and permits (if any) necessary to perform such duties; (iii) Licensee is duly organized entity as stated under the preamble and validly existing under the State of California; (iv) Licensee has full right, power and authority to execute, deliver and perform its obligations under this Agreement; and (v) this Agreement is a legal, valid and binding obligation of Licensee, enforceable against Licensee in accordance with its terms.

6. Conditions of Use.

Farm Work Plan. Licensee has provided an approved plan to the City which sets forth the plan for the management and operations of the Licensed Premises, which shall be incorporated into an overall plan for the management and operations of the Property in coordination with any Other Licensees on the Property (the “Farm Workplan”).
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Farm Work Plan. Each year, Licensee shall provide a plan to the City which sets forth the plan for the management and operations of the Licensed Premises, which shall be incorporated into an overall plan for the management and operations of the Property in coordination with any Other Licensees on the Property (the “Farm Workplan”).
- A detailed proposal for the operation and proposed programming of the demonstration farm.
- A detailed plan that sets forth the scope of work for the management of the Property and the Licensed Premises.
- A preliminary schedule of public events and programs, including cost estimates and estimates of off-setting revenue as well as prior Farm Work Plan year actual revenue.
- A detailed list of any animals that are owned by Parties that will be or are residing on the Licensed Premises.
- The designation of the person that will act as the Property Manager of the Licensed Premises. This will be the City’s single point of contact for all matters concerning the Licensed Premises. Contact information shall be provided to the City and updated immediately upon any changes. - The proposed construction of any proposed new structures on the Property or the Licensed Premises. Prior to constructing structures on the Licensed Premises in accordance with the Farm Work Plan, Licensee shall obtain advance approval from the Open Space District, as required.

The Farm Workplan must be provided to the City for approval within 60 days of execution of this agreement if no Farm Work Plan exists, or shall be updated no less than annually each February, in consultation with the City. City meetings with Licensee shall occur at least monthly, unless another frequency is mutually agreed upon.

B. Compliance with Laws. Licensee shall comply with the Farm Workplan and with all state, federal and local laws, regulations, rules and orders, applicable to this Agreement, the management of the Demonstration Farm, the Property, the Licensed Premises and the License, including without limitation all Environmental Laws (defined in Exhibit D attached hereto and incorporated herein by reference). Licensee shall not cause or permit any Hazardous Material (defined in Exhibit D) to be generated, brought onto, used, stored, or disposed of in or about the Property.
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(i) Notice of Release or Investigation. If during the term of this Agreement, Licensee becomes aware of (a) any actual or threatened release of any Hazardous Material in, on, under, or about the Property, or (b) any inquiry, investigation, proceeding, or claim by any government agency or other person regarding the presence of Hazardous Material in, on, under, or about the Property, Licensee shall give City written notice of the release or investigation within five (5) days after learning of it and shall simultaneously furnish to City copies of any claims, notices of violation, reports, or other writings received by Licensee that concern the release or investigation.
(ii) Remediation Obligations. If the presence of any Hazardous Material brought onto the Property by Licensee or Licensee’s agents, employees, invitees, customers, consultants, contractors or subcontractors results in contamination of the Property or any part thereof, Licensee shall promptly take all necessary actions to remove or remediate such Hazardous Materials, whether or not they are present at concentrations exceeding state or federal maximum concentration or action levels, or any governmental agency has issued a cleanup order, at Licensee’s sole expense, to return the Property to the condition that existed before the introduction of such Hazardous Material. Licensee shall first obtain City’s approval of the proposed removal or remedial action.

C. Minimum Wage Requirements. Licensee shall comply with minimum wage laws, as those wages are determined pursuant to Labor Code Section 1182.12 et seq. (“Minimum Wage Laws”).

Licensee shall indemnify, defend (with counsel reasonably approved by City) and hold the Indemnitees harmless from and against all Claims which directly or indirectly, in whole or in part, are caused by, arise in connection with, result from, relate to, or are alleged to be caused by, arise in connection with, or relate to, the payment or requirement of payment of minimum wages (including without limitation, all claims that may be made by contractors, subcontractors or other third party claimants pursuant to Labor Code Sections 1726 and 1781), whether or not any insurance policies shall have been determined to be applicable to any such Claims. It is further agreed that City does not and shall not waive any rights against Licensee which they may have by reason of this indemnity and hold harmless agreement because of the acceptance by City, or Licensee’s deposit with City of any of the insurance policies described in this Agreement. The provisions of this Section shall survive the expiration or earlier termination of this Agreement. Licensee’s indemnification obligations set forth in this Section 6.C shall not apply to Claims arising from the gross negligence or willful misconduct of the Indemnitees.

D. Pesticide, Herbicide Use. Licensee agree not to apply pesticides, insecticides, fungicides, herbicides, or other chemical treatments on the Property, except with the prior written consent of the City Manager. At his or her sole discretion, the City Manager may either approve or disapprove of any chemical treatments. 257 of 293
E. Property Management. Licensee shall comply with the Farm Workplan in carrying out the required Management Services. The City reserves the right to request additional Management Services, at the discretion of the City Manager, at any time during the term of this Agreement; provided, however, Licensee shall have the option to terminate this Agreement, in accordance with Section 27, if the additional Management Services requested by the City would result in undue burden on Licensee, as determined is Licensee’s sole discretion. Except as otherwise set forth in the Farm Work Plan and Exhibit C, Licensee shall have no responsibility for management, maintenance, or operation of the Property.

F. Responsibility for Visitors. Licensee may host visitors, educational classes, and special events in accordance the Farm Workplan. Licensee will provide the City with notice of any special events anticipated to exceed 30 visitors no later than ninety (90) calendar days before the date Licensee plans to host the event, unless waived by the City Manager. Licensee will not allow visitors to enter structures that are not suitable for public entry. Licensee will ensure that all activities are conducted in accordance with the Farm Workplan, licensing and other laws and will ensure that each visitor signs a release, waiving any and all Claims against City that arise from visitor’s presence on the Property.

G. Access Routes; Interference. The License includes a non-exclusive license to enter on and use the established access routes and the right of ingress and egress to and from the Property for the purposes of conducting Farm Workplan activities on the Property and providing the Management Services.

H. Improvements. Except as otherwise agreed to in writing by the City, and subject to Section 6.J, below, any changes in infrastructure, fencing, signage, structures or other improvements necessary to implement the Farm Workplan will be funded by Licensee at no cost to the City. If not included in the Farm Workplan, they must be submitted to the City Manager, and/or the Open Space District, as may be required, for written approval prior to any changes.

I. Repair and Maintenance.. All repair and maintenance of improvements installed by the Licensee, or any damage thereto due to the negligence of the Licensee, shall be the obligation of the Licensee. Except as described under Section 7, all other maintenance and repair of the Licensed Premises shall be the obligation of the City, subject to the discretion of the City Manager and available budget to perform the work. Licensee shall immediately notify the City Manager in writing of the need for maintenance and repair of the Licensed Premises that is the responsibility of the City.

Licensee will use its best efforts and due diligence to deliver the Management Services at the Licensed Premises in accordance with the terms and conditions set forth in this Agreement, the Farm Workplan and policies recommended from time to time by City or by Licensee and approved by City.
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J. City Contribution. As agreed to annually in the Farm Work Plan, and subject to budget availability, the City will provide operational funding support for community programming, events and general property maintenance to promote engagement at the Property and Licensed Premises. Unless otherwise agreed in a specific case and subject to the City’s sole discretion, City will arrange for and construct all capital (non-maintenance) improvements. Capital improvements generally are the construction of significant new or replacement infrastructure or structures on the Licensed Premises. Determination of whether work constitutes a capital improvement is within the City’s sole discretion. All capital improvements performed by the City are subject to a mutually agreeable schedule, funding availability, and approval by the City.

K. Temporary Structures. Licensee will have the right to erect, maintain, and remove at Licensee expense, a temporary fence on the Licensed Premises, provided that such fence, including removal, does not damage the Property in any way. Any planned placement or construction of moveable buildings, temporary structures, or signage must be included in the Farm Workplan or otherwise approved by the City in advance.

L. Reimbursement of Farm Expenses. City shall reimburse Licensee for expenses associated with activities approved in the Farm Workplan.

Licensee shall submit an itemized invoice to the City Manager no more frequently than monthly for reimbursement of authorized expenses associated with Farm Workplan. All expenses incurred during the City fiscal year (July 1- June 30), must be submitted no later than August 1 of each year. The City will reimburse Licensee for authorized expenses within thirty (30) days of receipt of the invoice.

M. Use of City Property. Licensee is not permitted to donate, sell or otherwise use materials or products from the Property, except as approved in the Farm Work Plan or by the City Manager. All City funded events and programs must use the City’s designated registration system and all funds and donations shall be remitted to the City. All Licensee events or programs occurring on the Property, regardless of funding source, must be authorized by the City in advance and scheduled on the City’s calendar. Non-City events or programs on the Property are not eligible for reimbursement and paid events or programs will be subject to the current rental rates per the City’s current Fee Schedule.

N. Inspection of Property. City, its contractors and agents, together with the Open Space District, shall have the right to enter in or upon the Property and the Licensed Premises at any time to examine or inspect the same and to perform such construction, improvement, repair, or alteration as City Manager, in his or her opinion, may deem necessary and to post notices of non-responsibility.

O. Background Checks. The Property hosts various children’s programs and camps.

Therefore, the Licensee, any employees and any contractors, or volunteers under the control of the Licensee that are on the Property shall be subject to a 259 of 293
background check using the method and format required by the City. The Licensee is required to provide a background check for the Licensee, and initial employees, contractors, and volunteers to the City within 10 business days of the Effective Date of this License Agreement, and the Licensee shall provide a background check for any additional employees, contractors, or volunteers within 10 business days of starting work on the Property. The City may exempt contractors that perform intermittent work, such as routine landscape contractors, janitorial contractors and similar. The City, in its sole discretion, may, in response to a person’s background check exclude the person from the property, and may require updates to background checks at any time.

7. Damages to Property and Licensed Premises. Licensee shall bear responsibility for the cost of any and all damages to or on the Property or Licensed Premises and improvements thereon caused by Licensee’s operations or by any act or omission of Licensee, unless such damages are caused by reasonable wear and tear, as determined by City, or caused by the sole negligence or willful misconduct of the City or Other Licensees.

8. Indemnity. Licensee shall indemnify, defend (with counsel reasonably approved by the City), and hold harmless the Indemnitees from and against any and all Claims, including reasonable attorneys’ fees, or liabilities of any kind, arising out of or in connection with Licensee’s actions or inactions relating to this Agreement or Licensee’s failure to comply with any of its obligations contained in this Agreement, except such loss or damage caused by the sole negligence or willful misconduct of the City or Other Licensees. Licensee’s obligations under this Section shall survive the expiration or earlier termination of this Agreement.

9. Release. City makes no representations or warranties whatsoever regarding the condition of the Property or the Licensed Premises, including, without limitation, the suitability or fitness of the Property or the Licensed Premises for the permitted uses. Licensee shall be solely responsible for any damage or harm whatsoever suffered by Licensee, its employees, agents, contractors, servants, licensees, invitees, livestock and other property, and hereby releases, waives and discharges the City and its officers, officials, agents, employees, and volunteers from any claims and demands arising out of such damage or harm. Licensee is aware of the provisions of California Civil Code Section 1542 which provides:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE

CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER

FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF

KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS
OTHER SETTLEMENT WITH THE DEBTOR.

As relates to this Section, Licensee hereby waives and relinquishes all rights and benefits which Licensee may have under California Civil Code Section 1542. _______________
Licensee’s Initials
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10. Liens and Other Encumbrances. Licensee shall keep the Property free and clear of any and all liens and other encumbrances.

11. Insurance. Throughout the Term, Licensee’s will maintain in full force and effect a comprehensive insurance policy applicable to Licensee’s use of the Property with limits of liability of at least:

A. General Liability: $1 million per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the Property or the general aggregate limit shall be twice the required occurrence limit. Licensee’s general liability statement will name City, its respective officers, officials, agents, employees, and representatives as additional insureds. Licensee will also maintain such other insurance as required by law.

B. Automobile Liability: $1 million per accident for bodily injury and property damage.

C. Workers Compensation: Licensee’s shall provide workers compensation insurance in the amounts required by the State of California.

D. Insurance Requirements. All policies of insurance required hereunder shall be provided by insurance carriers licensed to issue such policies in the State of California and which have a current A.M. Best’s rating of no less an A:VII.

Prior to the Effective Date, Licensee’s shall furnish City with certificates of insurance in form acceptable to City evidencing the required insurance coverage and duly executed endorsements evidencing such additional insured status. The certificates shall contain a statement of obligation on the part of the carrier to notify City of any material change, cancellation, termination or non-renewal of the coverage at least thirty (30) days in advance of the effective date of any such material change, cancellation, termination or non-renewal. Coverage provided by Licensee shall be primary insurance and shall not be contributing with any insurance, or self-insurance maintained by City, and the policies shall so provide.

The insurance policies shall contain a waiver of subrogation for the benefit of the City.

12. Taxes.

A. NOTICE IS HEREBY GIVEN THAT THE PROPERTY INTEREST TO BE

CREATED BY THIS AGREEMENT AND TO BE VESTED IN LICENSEE

PURSUANT TO THIS AGREEMENT MAY BE SUBJECT TO THE

PAYMENT OF POSSESSORY INTEREST TAXES LEVIED ON SUCH
INTEREST. THIS NOTICE IS GIVEN PURSUANT TO CAL. REVENUE & TAXATION CODE SECTION 107.6.
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B. Licensee’s shall pay any and all taxes assessed as a result of the treatment of Licensee’s interest under this Agreement as a possessory interest under the Revenue and Taxation Code of the State of California. Licensee’s shall also pay before delinquency, all taxes or assessments which may be levied or assessed during the term of this Agreement on all animals and other personal property owned or placed on the Property by Licensee.

13. Assignment. This License is personal to Licensee and may not be transferred or assigned, except with the prior written consent of the City. If, during the term of this Agreement, any Other Licensee on the Property remains in default under their license agreement with the City after expiration of all applicable cure periods, the City may offer, in writing, to cause the assignment of the defaulted license agreement to Licensee before issuing the defaulted license to another entity. Licensee shall have thirty (30) days to accept that assignment of the defaulted license agreement and assume the obligations thereunder. Upon mutual agreement of the Licensee and City, the City may assign the defaulted license agreement to the Licensee.

14. Sublicensee. A sublicensee is any person or group that occupies a portion of the Licensed Premises in any capacity beyond short term permitted events. “Short Term Permitted Event” is defined as any event or activity that is 48 hours or less in duration, unless otherwise permitted by the City. The Licensee may sublicense the Licensed Premises only upon written authorization by the City, in accordance with the City’s authorized sublicense agreement.

15. Amendment. This Agreement can be amended only by a written instrument executed by the City and Licensee.

16. Waiver. The waiver by either Party of any term, covenant, or condition contained in this Agreement shall not be deemed to be a continuing waiver of such term, covenant, or condition, or any subsequent breach of the same or any other term, covenant, or condition in this Agreement.

17. No Rights in Third Parties. Nothing in this Agreement, express or implied, is intended to confer any rights or remedies hereunder on any third party, nor is anything in this Agreement intended to relieve or discharge any obligation or liability of any third party to any Party hereto, nor shall any provision in this Agreement give any third party any right of subrogation or action over or against any Party to this Agreement.

18. Time of Essence. Time is and shall be of the essence of the performance of this Agreement.

19. Governing Law. This Agreement shall be interpreted and enforced in accordance with the laws of the State of California and the City of Cotati Municipal Code.

20. Successors and Assigns. The provisions, terms, and conditions of this Agreement shall bind and inure to the benefit of the Parties, their heirs, successors, executors, administrators, and permitted assigns. Licensee shall not assign, sublicense or transfer its rights or obligations under this Agreement without the prior written consent of the City. 262 of 293

21. Relationship of Parties. The Parties intend by this Agreement to establish the relationship of Parties only, and do not intend to create a partnership, joint venture, joint enterprise, or any other business relationship other than that of Parties. At all times during the term of this agreement, Licensee and Licensee employee’s, agents and any approved subcontractors or assigns shall be independent contractors and are not employees of City. Notwithstanding any other local, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Licensee and any of its employees, agents, and approved subcontractors or assigns providing services under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any and all claims to, any compensation, benefit, or any incident of employment by City.

22. Remedies Cumulative. No remedy or election of remedies provided for in this Agreement shall be deemed exclusive but shall be cumulative with all other remedies at law or in equity. Each remedy shall be construed to give it the fullest effect allowed by law.

23. Severability. If any provision of this Agreement or the application thereof to any person or circumstance, shall to any extent be or become invalid or unenforceable, the remainder of this Agreement, or the application of such provision to persons or circumstances other than those as to which it is invalid or unenforceable, shall not be affected thereby, and each provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law.

24. Notices, Payments, and Demands. All notices, payments, and demands of any kind which either Party may require or desire to serve on the other in connection with this Agreement shall be in writing and may be served (as an alternative to personal service) by first class mail, postage prepaid and addressed to the Party to be served as follows:

City: City Manager
201 West Sierra Avenue
Cotati, CA 9493 I
707-665-3622
Licensee: Tomi Henry
130 Fern Avenue
Penngrove, CA 94951
Attn: Tomi Henry
Either Party may change its address by giving notice of such change to the other Party in the manner provided in this Section. All notices and other communications mailed in accordance with this Section shall be deemed communicated as of the earlier of (i) actual receipt or (ii) the fifth day following deposit in the United States Mail.

25. Integration. This Agreement, including any Exhibits hereto, contains all of the agreements and understandings of the Parties with respect to any matter mentioned in this Agreement, and supersedes and terminates all prior and contemporaneous agreements between Parties with respect to the matters covered in this Agreement. 263 of 293

26. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

27. Default and Termination. Unless otherwise set forth in this Agreement, either Party may terminate this Agreement with or without cause upon delivery of not less than 30 days’ advance written notice delivered in accordance with Section 24. If the City or Licensee provides written notice of a default of the terms of this Agreement either Party has thirty (30) days to cure the default. If the default cannot by its nature be cured within such thirty (30) day period, then the City or Licensee will have an additional thirty (30) days to cure the default. A termination for cause pursuant to this provision shall not prejudice or waive any rights or remedies in law which one Party may have against the other.

In the event of a life, health or safety issue on the Licensed Premises, as determined by the City Manager, the City may immediately terminate this Agreement and of all Licensee activities on the Property and the Licensed Premises. City may take any remedial action to abate the life, health or safety issue, at the discretion of City.

The Parties agree to make a good faith attempt to resolve any dispute arising out of this Agreement through mediation prior to commencing litigation. The foregoing does not in any way limit the City’s legal remedies, including but not limited to the remedies set forth herein. The Parties shall mutually agree upon the mediator and shall divide the costs of mediation equally.

Upon termination of this Agreement, Licensee will, at Licensee’s expense, surrender the Property and Licensed Premises in good order and condition, reasonable wear and tear excepted, and will remove all of Licensee’s personal property. Except as may otherwise be agreed in writing by City and Licensee at the time of installation, all permanent improvement and alterations to the Property, including all equipment, furniture, furnishings, tools, supplies, inventory and other property of City in the possession of Licensee, other than trade fixtures owned by Licensee, will belong to City. Licensee may retain ownership of, and will remove, all sheds, mobile buildings, signs, and other non-permanent improvements Licensee may have made to the Property. Licensee shall deliver to City copies of all books, records and files in possession of Licensee relating to the management, maintenance, operation, marketing and use of the Property, and all keys, combinations to locks, and other security devices on the Property.

Licensee shall assign all existing contracts, if any, relating to the operation, maintenance, and marketing of the Property as City directs in writing. Licensee shall render such assistance as City may reasonably request to facilitate an orderly transition in the management of the Property.

28. Construction and Interpretation. It is agreed and acknowledged by Licensee that the provisions of this Agreement have been arrived at through negotiation, and that Licensee has had a full and fair opportunity to revise the provisions of this Agreement and to have such provisions reviewed by legal counsel. Therefore, the normal rule of construction that any ambiguities are to be resolved against the drafting party shall not apply in construing or interpreting this Agreement.
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IN WITNESS WHEREOF, Parties have executed this Agreement as of the day and year first written above.

CITY: LICENSEE
______________________________ ______________________________ Damien O’Bid, City Manager Tomi Henry
ATTEST:
______________________________
Kevin Patterson, Deputy City Clerk
APPROVED AS TO FORM:
______________________________
John Bakker, City Attorney
5530479.1
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EXHIBIT A

PROPERTY EXHIBIT
Licensee’s Licensed Premises is indicated in Yellow outline, including the area outlined in Red. 266 of 293

EXHIBIT B
CONSERATION EASEMENT (B-1) & OPEN SPACE APPROVED CITY WORKPLAN (B-2) 267 of 293

EXHIBIT C

LICENSE PROVISIONS SPECIFIC TO LICENSEE
Maintenance and Access
Licensee is responsible for the Licensed Premises and the Property between the external fence and public pathways/sidewalks (Exhibit A), including maintenance, scheduling of events, and public access. Licensee acknowledges that the License granted herein is non-exclusive, and that Licensee shall provide access to the Property and the Licensed Premises to any Other Licensee(s) in accordance with the Farm Work Plan or otherwise upon reasonable advance coordination; notwithstanding the foregoing, Other Licensee(s)’s access to the Property and Licensed Premises shall not be restricted by Licensee, except as otherwise agreed in writing between the Licensees.

Any additional terms and conditions regarding reasonable advance coordination of access to or through the Licensed Premises by Other Licensee(s) may be determined under separate agreement between Licensee and the Other Licensee(s), subject to City’s review prior to execution.

Management Services
The Property must be managed in accordance with the Conservation Easement, the approved City Work Plan, the Roots Restoration Project, and the current Farm Work Plan, as may be amended. This includes, but is not limited to, weed abatement, pest abatement, and maintaining the Property in good repair and tidy appearance.

Grazing; Animals. In addition to other uses, the Licensed Premises are licensed to Licensee for the purpose of operating a demonstration farm, consistent with the terms of this Agreement. City shall have the right to prohibit or limit grazing if the City Manager determines that the soil moisture content is excessive or if the Licensed Premises is exhibiting signs of overgrazing.

Grazing will be accomplished in accordance with accepted good pasture management practices, good farming practices and animal husbandry. The City Manager shall have sole discretion to limit animal unit loading
Compost Hub
The City has entered into a Memorandum of Understanding (MOU) with Zero Waste Sonoma to operate a pilot community compost hub. The Licensee agrees to operate the compost hub and abide by the terms of the MOU.
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EXHIBIT D

ENVIRONMENTAL CONDITIONS
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EXHIBIT E

STANDARD SUBLICENSE AGREEMENT FORM
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Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: RECEIVE AND FILE STATEMENT OF THE VOTES CAST

AND DECLARATION OF THE RESULTS OF THE CITY OF

COTATI CONSOLIDATED GENERAL MUNICIPAL
ELECTION HELD ON NOVEMBER 5, 2024
Date: December 10, 2024
Written by: Kevin Patterson, Deputy City Clerk
Recommendation
It is recommended that the City Council: 1) Adopt a motion to receive and file the Sonoma County Clerk’s Statement of the Votes Cast; and 2) Adopt a resolution declaring the results of the Consolidated General Municipal Election held on November 5, 2024, determining the elected council members and certifying that Measure S (repeal of the roundabout ban) was approved by a majority vote of Cotati voters and the Mayor is authorized to attest to the ordinance passage.

Background
The City of Cotati held a Consolidated General Municipal Election on November 5, 2024, for the purpose of electing three members of the City Council and to vote on Measure S - "Repeal Roundabout Ban” The election was conducted on behalf of the City of Cotati by the County of Sonoma. Pursuant to California Elections Code 10262, the County Clerk has certified the election results and provided a Statement of the Votes Cast at the City of Cotati Election.

Pursuant to Elections Code 10263, the City Council shall adopt a resolution declaring the results of the election.

Analysis/Discussion
The ordinance to repeal the existing ban on roundabouts and traffic circles, formerly known as Measure U and codified in Cotati Municipal Code 11.11.101, was introduced by resolution 2024- 43 at the July 9, 2024 regular City Council meeting. The ordinance was assigned as Measure S by the Sonoma County Registrar of Voters and placed on the ballot for the election held on November 5, 2024. Measure S was voted in favor of and thereby deemed adopted by the people 271 of 293
by 60.31% of the total votes, exceeding the necessary simple majority vote for passage. Per Elections Code 9217, upon certification, the ordinance shall become effective ten (10) days after the declaration of the results of that election by the City Council of the City of Cotati.

Susan Harvey, Laura Sparks, and Ben Ford were the successful candidates and have been elected to the City Council for full terms of four years.

Financial Considerations
None.

Environmental Issues
The action of receiving the Sonoma County Clerk‘s Statement of Votes Cast does not constitute a project as defined by the California Environmental Quality Act Guidelines Section 15378; therefore, no further environmental review is required. 272 of 293
RESOLUTION NO. (XX)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COTATI

DECLARING THE RESULTS OF THE CONSOLIDATED GENERAL MUNICIPAL ELECTION HELD ON NOVEMBER 5, 2024
WHEREAS, a Consolidated General Municipal Election was held and conducted in the City of Cotati on Tuesday, November 5, 2024, as required by law; and WHEREAS, notice of said election was duly and legally given, voting precincts were properly established, election officers appointed, election supplies furnished, and that in all respects said election was held and conducted and the votes cast, received, canvassed, and the returns made and declared in time, form, and manner as required by the general laws of the State of California governing elections in cities; and
WHEREAS, the qualified electors, including vote by mail voters, cast ballots at said election for the following offices:

Three Councilmembers, for Terms Ending in 2028
WHEREAS, the qualified electors, including vote by mail voters, cast ballots at said election upon the following proposed measure:

Measure S – Repeal Cotati Roundabout Ban
WHEREAS, the Sonoma County Registrar of Voters canvassed the returns of the election and on December 3, 2024, the County Clerk filed with the City Clerk a “Statement of the Votes Cast”, attached hereto as “Exhibit A”, certifying the canvass of the votes cast at the Consolidated General Municipal Election held on November 5, 2024; and WHEREAS, per Elections Code Section 10262(b), the city elections official, upon receipt of the results of the election shall certify the results to the City Council; and WHEREAS, Elections Code Section 10263 provides that upon completion of the canvass and before installing the new officers, the governing body shall adopt a resolution reciting the fact of the election and other matters that are enumerated in Elections Code Section 10264.

NOW THEREFORE BE IT RESOLVED that the City Council of the City of Cotati herby declares, determines, and orders as follows:

Section 1. That said Consolidated General Municipal Election was held and conducted in the City of Cotati on Tuesday, November 5, 2024, in time, form, and manner as required by law, that there were voting precincts established for the purpose of holding said election.

Section 2. That the whole number of votes cast in the the City for the Member of City Council office was 4,064, and the whole number of votes cast in the City for Measure S was 3,777.
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Section 3. That the names of persons voted for at the election for Member of the City Council are as follows:
• Susan Harvey
• Ben Ford
• George Barich
• Laura Sparks
Section 4. That the measure voted upon at the election was as follows:

YES Measure S
Shall an ordinance be adopted repealing the prohibition of the construction of roundabouts, traffic circles, and other similar features anywhere within the City of Cotati city limits? NO
Section 5. The City does declare and determine that:

1. Susan Harvey, Ben Ford, and Laura Sparks were elected as Members of the City Council for the full term of four years.

2. As a result of the election, a majority of Cotati voters voting on Measure S voted in favor of by the following vote:

YES 2,278
NO 1,499
Section 6. That the number of votes given at all precincts and the number of votes given in the City to each of the person named above for the respective office for which the persons were candidates, and for and against Measure S, are contained in “Exhibit A’ attached and incorporated herein by reference.

Section 7. That the City Clerk shall immediately make and deliver to each of the persons so elected a certificate of Election signed by the City Clerk and authenticated; the City Clerk shall also administer to each person elected the Oath of Office prescribed in the Constitution of the State of California and shall have them subscribe to it and file it in the office of the City Clerk.

Each and all of the persons so elected shall then be inducted into the respective office to which they have been elected.

Section 8. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

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 December 10, 2024, by the following vote, to wit:
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Approved:___________________________
Mayor
Attest:______________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:
______________________________
City Attorney
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Page: 20 of 22 12/3/2024 1:30:14 PM
Measure S - City of Cotati Roundabouts Simple Majority (Vote for 1) Precincts Reported: 4 of 4 (100.00%)
Total
Times Cast 4,051 / 5,050 80.22%
Candidate
YES
Party Total
2,278
1,499
3,777
NO
Total Votes
Total
Unresolved Write-In 0
Measure O - City of Healdsburg Amend Growth Management Simple Majority (Vote for 1)
Precincts Reported: 5 of 5 (100.00%)
Total
Times Cast 6,278 / 7,410 84.72%
Candidate
YES
Party Total
2,615
3,325
5,940
NO
Total Votes
Total
Unresolved Write-In 0
Measure Y - City of Petaluma Modify and Extend Urban Growth Boundary Simple Majority (Vote for 1)
Precincts Reported: 39 of 39 (100.00%)
Total
Times Cast 34,699 / 40,312 86.08%
Candidate
YES
Party Total
21,560
NO 9,199
Total Votes 30,759
Total
Unresolved Write-In 0
Measure U - City of Sebastopol Transactions and Use Tax Simple Majority (Vote for 1)
Precincts Reported: 6 of 6 (100.00%)
Total
Times Cast 4,766 / 5,668 84.09%
Candidate
YES
Party Total
3,252
1,260
4,512
NO
Total Votes
Total
Unresolved Write-In 0
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United States of America
Certificate of Election
State of California, )
County of Sonoma ) ss.

I, Kevin Patterson, Deputy City Clerk of the City of Cotati, State of California, certify that at a General Municipal Election held in the City on the 5th day of November, 2024,
Ben Ford
was elected to the office of
Councilmember
as appears by the official returns of the election and the statement of votes cast now on file in my office.

I affix my hand and official
seal this 10th day of December,
2024
_______________________________
Kevin Patterson
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Deputy City Clerk
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United States of America
Certificate of Election
State of California, )
County of Sonoma ) ss.

I, Kevin Patterson, Deputy City Clerk of the City of Cotati, State of California, certify that at a General Municipal Election held in the City on the 5th day of November, 2024,
Susan Harvey
was elected to the office of
Councilmember
as appears by the official returns of the election and the statement of votes cast now on file in my office.

I affix my hand and official
seal this 10th day of December,
2024
_______________________________
Kevin Patterson
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Deputy City Clerk
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United States of America
Certificate of Election
State of California, )
County of Sonoma ) ss.

I, Kevin Patterson, Deputy City Clerk of the City of Cotati, State of California, certify that at a General Municipal Election held in the City on the 5th day of November, 2024,
Laura Sparks
was elected to the office of
Councilmember
as appears by the official returns of the election and the statement of votes cast now on file in my office.

I affix my hand and official
seal this 10th day of December,
2024
_______________________________
Kevin Patterson
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Deputy City Clerk
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ORDINANCE NO.

AN ORDINANCE OF THE VOTERS OF THE CITY OF COTATI REPEALING CHAPTER 11.11.101 OF THE MUNICIPAL CODE TO REMOVE THE EXISTING

BAN ON ROUNDABOUTS AND TRAFFIC CIRCLES IN THE CITY OF COTATI BE IT ORDAINED BY THE VOTERS OF THE CITY OF COTATI:

SECTION 1: FINDINGS. The voters of the City of Cotati hereby find and declare as follows:
a. Ordinance 838 was placed on the ballot by a citizen’s initiative as Measure U at the November 2012 election.
b. At the November 2012 election, a majority of Cotati voters adopted Measure U, which imposed a ban on the construction of roundabouts, traffic circles, or any other similar traffic features within the city limits of Cotati.
c. Measure U was codified in Chapter 11.11.101 “Roundabouts and Traffic Circles” of the Cotati Municipal Code.
d. On July 2, 2024, the City received a Citizen’s Initiative Petition to repeal Chapter

11.11.101 of the Cotati Municipal Code.
e. On July 8, 2024, the Sonoma County Registrar of Voters certified that the petition received the required number verified of signatures.
f. On July 9, 2024, the City Council of the City of Cotati voted to send the proposed Ordinance to Cotati voters on the ballot for the November 5, 2024 General Municipal Election.
g. On December 4, 2024, the City of Cotati received the Statement of Votes from the Sonoma County Registrar of Voters, certifying that the Ordinance, designated as “Measure S” was approved by the voters by a simple majority vote.

SECTION 2: AMENDMENT TO MUNICIPAL CODE. Section 11.11.101 “Roundabouts and Traffic Circles” of the Cotati Municipal Code is hereby deleted in its entirety.

SECTION 3. SEVERABILITY. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other person or circumstances shall not be affected thereby.

SECTION 4. EFFECTIVE DATE. This ordinance, if approved by a majority of the voters of the City of Cotati at the election on November 5, 2024, shall become effective ten (10) days after the declaration of the results of that election by the City Council of the City of Cotati, pursuant to Elections Code Section 9217.

SECTION 5. PUBLICATION. The Clerk of the City of Cotati shall cause this ordinance to be published in accordance with applicable provisions of law.

SECTION 7. EXECUTION. The Mayor is hereby authorized to attest to the adoption of the Ordinance by the voters of the City by signing where indicated below. 285 of 293
IT IS HEREBY CERTIFIED that the foregoing ordinance was APPROVED by the following vote of the People of the City of Cotati on November 5, 2024:

YESES: 2,278
NOES: 1,499
IT IS HEREBY FURTHER CERTIFIED that the forgoing Ordinance No. __ was ADOPTED by Declaration of the November 5, 2024 election results by the City Council of the City of Cotati on December 10, 2024, by the following vote, to wit:

RESULT:

MOVER:

SECONDER:

AYES:

ELECTED COUNCILMEMBERS
Date: December 10, 2024
Written by: Kevin Patterson, Deputy City Clerk
Recommendation
It is recommended that the City Clerk will administer the oath of office to the elected Councilmembers.
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I
Oath of Office

STATE OF CALIFORNIA

COUNTY OF SONOMA
} Ss:

FOR THE POSITION OF Councilmember
City of Cotati
, Laura Sparks, do solemnly swear that I will support and defend the Constitution of the United States and the Constitution of the State of California against all enemies, foreign and domestic; that I will bear true faith and allegiance to the Constitution of the United States and the Constitution of the State of California; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties upon which I am about to enter.

Subscribed and sworn before me
this 10th day of December, 2024
Signature
Kevin Patterson, Deputy City Clerk
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I
Oath of Office

STATE OF CALIFORNIA

COUNTY OF SONOMA
} Ss:

FOR THE POSITION OF Councilmember
City of Cotati
, Susan Harvey, do solemnly swear that I will support and defend the Constitution of the United States and the Constitution of the State of California against all enemies, foreign and domestic; that I will bear true faith and allegiance to the Constitution of the United States and the Constitution of the State of California; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties upon which I am about to enter.

Subscribed and sworn before me
this 10th day of December, 2024
Signature
Kevin Patterson, Deputy City Clerk
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I
Oath of Office

STATE OF CALIFORNIA

COUNTY OF SONOMA
} Ss:

FOR THE POSITION OF Councilmember
City of Cotati
, Ben Ford, do solemnly swear that I will support and defend the Constitution of the United States and the Constitution of the State of California against all enemies, foreign and domestic; that I will bear true faith and allegiance to the Constitution of the United States and the Constitution of the State of California; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties upon which I am about to enter.

Subscribed and sworn before me
this 10th day of December, 2024
Signature
Kevin Patterson, Deputy City Clerk
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Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: REORGANIZATION OF CITY COUNCIL FOR CALENDAR
YEAR 2025
Date: December 10, 2024
Written by: Kevin Patterson, Deputy City Clerk
Recommendation
It is recommended that the City Council elect a Mayor and Vice Mayor from among its members, to be effective January through December 2025.

Background
Per the City Council Rules (City Council Policy 2023-1), following the certification of the election and seating of new Councilmembers, the Mayor and Vice Mayor will be elected by a majority vote of a quorum of the City Council. The City Council shall consider the election of a Mayor and Vice Mayor for a one (1) year term at the first regular meeting in December of each year.

Analysis/Discussion
The new Mayor and Vice Mayor will assume their titles on January 1, 2025, and the new Mayor will chair the City Council meetings beginning in January. City Council appointments to City and regional bodies will follow in January 2025.

For convenience, below is a summary of the recent Mayors and Vice Mayors. 291 of 293
Mayor Vice Mayor Year
Laura Sparks Ben Ford 2024
Susan Harvey Laura Sparks 2023
Mark Landman Susan Harvey 2022
John Moore Mark Landman 2021
Wendy Skillman John Moore 2020
Financial Considerations
None.

Environmental Issues
The action of City Council reorganization does not constitute a project as defined by California Environmental Quality Act Guidelines Section 15378; therefore, no further environmental review is required.
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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: December 10, 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]. 293 of 293

Cotati City CouncilDecember 10, 2024

Cotati City Council
December 10, 2024