Cotati City Council
February 11, 2025

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, February 11, 2025
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.gov. 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/87384937525?pwd=5Jx4yLXvMNXMBMCc2yjPM6Znniga3w.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: 873 8493 7525 Passcode: 066895
+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.gov 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 February 11, 2025
• 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.gov 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 – SPECIAL MEETING – JAN 21, 2025 B. COTATI CITY COUNCIL – REGULAR MEETING – JAN 28, 2025

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.

Cotati City Council Packet February 11, 2025
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.gov 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.gov, 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. 8.

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

DECLARING THE MONTH OF FEBRUARY AS BLACK HISTORY MONTH

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

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

10. CONSENT CALENDAR (ACTION)
A. RECEIVE AND FILE THE FISCAL YEAR 2023/24 AUDITED ANNUAL

COMPREHENSIVE FINANCIAL REPORT (ACFR), SINGLE AUDIT REPORT, AND

THE AUDIT REPORT ON THE APPROPRIATIONS LIMIT
It is recommended that the City Council receive and file the Fiscal Year 2023/24 audited Annual Comprehensive Financial Report (ACFR), the Single Audit Report, and the Report on AgreedUpon Procedures Applied to the Appropriations Limit Schedule.

11. DIRECTION ON FUTURE AGENDA ITEMS

12. PUBLIC HEARINGS (ACTION)
A. CONSIDERATION AND ADOPTION OF RESOLUTION CERTIFYING SANTERO

WAY SPECIFIC PLAN EIR AND ADOPTING SANTERO WAY SPECIFIC PLAN UPDATE
It is recommended by the Community Development Department and the Planning Commission that the City Council adopt a resolution certifying the Santero Way Specific Plan (SWSP) EIR and finding the proposed update to the Santero Way Specific Plan (SWSP) consistent with the SWSP EIR and the General Plan EIR; adopting the Santero

Cotati City Council Packet February 11, 2025

13. Way Specific Plan Update; a General Plan map amendment to formalize the expansion of the SWSP boundary to include three additional parcels within the Specific Plan (SP) Land Use Designation and directing further amendments to Chapter 17 of the Cotati Municipal Code, as necessary to implement the updated SWSP.

REGULAR AGENDA (ACTION)
A. LETTER TO GOVERNOR NEWSOM TO RECONSIDER PROPOSED BUDGET CUTS

AT SONOMA STATE UNIVERSITY (SSU)
It is recommended the City Council adopt a motion authorizing the Mayor to sign and transmit a final version of the draft letter to Governor Newsom recommending reconsideration of the proposed budget cuts at Sonoma State University.

B. MID-YEAR BUDGET REVIEW FOR FISCAL YEAR 2024-2025
It is recommended that the City Council receive the fiscal year 2024/25 mid-year budget review report, adopt the resolution to amend the fiscal year budget based on updated assumptions for investment earnings, and receive the investment report for the quarter ended December 31,2024.

C. RECEIVE AND FILE THE FISCAL YEAR 2023/24 POPULAR ANNUAL FINANCIAL

REPORT (PAFR)
It is recommended that the City Council adopt a motion to receive and file the Fiscal Year 2023/24 Popular Annual Financial Report (PAFR)

14. CITY MANAGER'S REPORT

15. CITY COUNCIL MEMBER REPORTS

16. PUBLIC COMMENT ON NON-ACTION AGENDA ITEMS

17. INFORMATION RECEIVED AFTER THE AGENDA WAS POSTED

18. 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 February 7, 2025. /s/ Kevin Patterson, Deputy City Clerk

Cotati City Council
Agenda Staff Report
Item type: APPROVAL OF MINUTES AND NOTICE OF WAIVING OF READING OF ALL RESOLUTIONS AND...

To: City Council
Subject: APPROVAL OF MINUTES FROM JANUARY 21, 2025 SPECIAL

STRATEGIC PLANNING WORKSHOP
Date: February 11, 2025
Written by: Damien O'Bid, City Manager
Recommendation
It is recommended that the City Council adopt a motion approving the workshop report as the minutes for the January 21, 2025 Strategic Planning meeting.

PROCLAMATION

OF THE CITY COUNCIL OF THE CITY OF COTATI
DECLARING THE MONTH OF FEBRUARY 2025 BLACK HISTORY MONTH WHEREAS, National African American History Month first originated as Negro History Week in 1926 as part of an initiative by writer and educator Dr. Carter G. Woodson to recognize the heritage and achievements of African Americans and to enhance knowledge about African American history; and
WHEREAS, the national theme for Black History Month in 2025 is "African Americans and Labor," focusing on the significant role that work, in all its forms, has played in the collective experiences of Black people throughout history; and WHEREAS, this theme aims to highlight how work, both free and unfree, skilled and unskilled, has been central to the Black American experience and how labor has shaped Black communities, identities, and struggles for social justice; and WHEREAS, in celebrating the entire history of African Americans, the City places into the national spotlight the wide-ranging contributions to the history of the United States with an eye towards what the rest of the twenty-first century will bring.

NOW, THEREFORE, BE IT PROCLAIMED that the City Council of the City of Cotati proclaims the month of February as Black History Month in Cotati and calls on the community to study African American history, arts and culture, by visiting sites such as asalh.org (Association for the Study of African American Life and History), to attend local Black History Month events, and to acknowledge the value African American community members add to the vibrancy and culture of our city.

Approved:______________________________
Mayor

Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: RECEIVE AND FILE THE FISCAL YEAR 2023/24 AUDITED

ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR),

SINGLE AUDIT REPORT, AND THE AUDIT REPORT ON THE

APPROPRIATIONS LIMIT
Date: February 11, 2025
Written by: Angela Courter, Director of Administrative Services Recommendation
It is recommended that the City Council receive and file the Fiscal Year 2023/24 audited Annual Comprehensive Financial Report (ACFR), the Single Audit Report, and the Report on AgreedUpon Procedures Applied to the Appropriations Limit Schedule.

Background
The Annual Comprehensive Financial Report (ACFR) is an audited summary report of the financial transactions of the City for the Fiscal Year 2023/24, ending June 30, 2024. The report is presented to the City Council and is designed to provide summary financial information for citizens, other government agencies, municipal lenders, and other interested parties. The format of this report complies with the Generally Accepted Accounting Principles (GAAP) and reporting requirements of the national Governmental Accounting Standards Board (GASB).

Badawi & Associates, licensed Certified Public Accountants who specialize in governmental audits, has audited the City’s financial statements. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2024, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation.

The ACFR is intended to improve access and transparency by providing ten years of historical financial information and expert narrative analysis of the City's finances. This provides a multiPage 29 of 965 year look at the City finances and helps the reader understand the information presented in the Basic Financial Statements section of the ACFR.

Since fiscal year 2017/18 the City has applied for and received the Government Finance Officers Association (GFOA) ACFR award called the Certificate of Achievement for Excellence in Financial Reporting and will continue to apply for this award, which has historically been awarded to less than 1% of cities our size.

A Single Audit includes an audit of the Cities financial statements and compliance with Federal award requirements for federal grant programs identified as major programs for the audit. This audit is only a requirement in years where the City is a recipient of total federal expenditures during a year equal or more than $750,000. This report is then filed with the federal clearinghouse and the State Controller’s Office.

The Appropriations Limit, otherwise known as the Gann Limit, is a law in California that limits the amount of money state and local governments can spend on tax-funded services. It was approved by voters in 1979 and is based on the amount of money spent in 1978–79, adjusted for inflation and population changes.

Analysis/Discussion
The City’s financial statements provide information about the finances of the City in its entirety, as well as information about individual funds. The ACFR is organized into the four sections summarized below.

Introductory Section
 Letter of Transmittal - which is designed to complement Management’s Discussion and Analysis (the MD&A) and is prepared by management and used to communicate information on areas that may have an impact on the City’s finances now and in the future. This includes economic factors as well as budget and management factors. Both should be read together to understand the City’s financial position.

Financial Section (the main body of the ACFR for current year information)  Independent Auditors’ Report – the City’s report card on the content of the ACFR.  Management’s Discussion and Analysis (MD&A) – provides an analytical overview of the City’s financial status and results for the year.
 Basic Financial Statements – reports finances at a point in time (assets - liabilities) and throughout the year (revenues - expenditures), and cash flows.  Government-Wide Statements – overview of financial information including all the City’s operations by financial activity.
 Fund Financial Statements – a detailed look at funds, reporting the Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balance.  Notes to the Financial Statements (Notes) – a narrative explanation that accompanies the Basic Financial Statements.

Required Supplementary Information
 Budget to Actual Comparisons – for all governmental funds with a legally adopted budget.
 Pension Information – schedule of changes in the pension liability and related ratios; schedule of contributions by plan.
 OPEB Information – schedule showing Other Post-Employment Benefits Other Than Pensions since fiscal year 2017/18.

Other Supplementary Information
 Non-Major Funds combining financial statements including the balance sheet and statements of revenues, expenditures, and changes in fund balances.  Budget to Actual Comparisons – for non-major governmental funds with a legally adopted budget.
 Statements for Internal Service Funds.
 Schedule of Measure S Revenues and Uses for the fiscal year.

Statistical Section (current and historical information – up to 10 years) The last section of the ACFR, which is unaudited, contains schedules of statistical data about the City of Cotati in five major categories:

1. Financial Trends

2. Revenue Capacity

3. Debt Capacity

4. Demographic and Economic Information

5. Operating Information
These schedules, covering a ten-year period, provide operating context for the financial data presented in the financial section of the ACFR.

The ACFR is available on the City’s Financial Information webpage and attached to this staff report. Copies can be made available for review in the City Manager’s Office and in the Administrative Services Office.

Financial Highlights
Badawi & Associates, the independent auditor, has issued the City a clean audit opinion. This independent audit includes an evaluation of the appropriateness of accounting policies used by the City, evaluation of any significant accounting estimates made by City management as well as verification that the financial statements are free from material misstatement. The attached ACFR has no material misstatements. The “corrected misstatements” on the Letter to those Charged with Governance relate to correcting the recording of the new debt for the pension and street project as well as correcting the deferred loss on the same refunding.

Additionally for the government-wide statements there is a prior year adjustment posted for $1.0M due to the timing of capitalization of assets, see footnote 19 on ACFR page 76. This correction to the government-wide prior year statement is a conversion entry for financial reporting from the

modified accrual basis to the full accrual basis and as such does not impact the prior year fund financial statements. Due to this adjustment, comparison numbers to the prior year have been adjusted to reflect the corrected prior year basis.

Government-Wide Financial Statements (ACFR pages 17 - 21)  At the close of the fiscal year, the assets and deferred outflows of the City exceeded liabilities and deferred inflows of resources by $56.0 million (Total net position in the government-wide) compared to $56.8 million in FY 2022/23. The two significant contributing factors to the change in fund balance are as follows:
 Net increase of approximately $3.5 million, or 8.4% increase in net investment in capital assets was mainly due to the completion of streets improvement capital projects, computer systems upgrades, and purchasing and upfitting of police electric vehicles.
 Restricted Net Position of $10.0 million represents resources that are subject to external restrictions on their use, or by enabling legislation. Restricted net position is comprised of amounts restricted for housing ($4.7 million or 46.6%) capital and street projects ($2.0 million or 20.3%), and Public Safety ($2.5 million, or 25.2%).

Restricted net position decreased by $4.3 million, or 30.0%, primarily due to completion of increased number of projects which were postponed due to economic uncertainty caused by Covid-19.
 Unrestricted Net Position in the amount of $0.6 million represents net position of the City that is not restricted for any project or purpose. The decrease of $0.1 million, or 20.0%, was primarily due to increased use of funds for City projects offset by increased change in overall change in net position. This change was also impacted by the prior period adjustment of $1.0 related to capitalization of capital assets
 As of June 30, 2024, the City’s governmental activities reported a net position of approximately $41.5 million compared to $42.2 million in FY 2022/23, a $0.7 million or

1.7% decrease.
 As of June 30, 2024, the City’s business-type activities reported a net position of $14.5 million compared to $14.6 million in FY 2022/23, a $0.1 million or less than a 0.1% decrease.

Fund Financial Statements (ACFR pages 23 - 40)
 As of the close of the current fiscal year, the City’s Governmental Funds reported a combined ending fund balance of approximately $14.5 million, a $4.0 million decrease from the prior year. This change is primarily due to the use of funds for capital projects The Nonmajor Governmental Funds are restricted for use primarily for streets projects, community development projects and other special purposes.  Within the Governmental Funds ending fund balances were primarily made up of the following; (See Governmental Funds Balance Sheet on page 27). o $0.3 million for capital projects ($13.5 thousand restricted and $0.3 million

committed),
o $1.7 million restricted for streets,
o $3.5 million restricted for affordable housing,
o $2.5 million committed for emergencies per required reserve policy. o $2.8 million nonspendable
o $2.9 million is unassigned.
 As of the close of the current fiscal year, the City’s General Fund reported an ending fund balance of $9.0 million compared to $10.2 million in FY 2022/23, a $1.2 million net change.
 The City’s General Fund continued to maintain a significant balance above the 25% required reserve.

Financial Considerations
The audit report included at ACFR pages 1-4 provides reasonable assurance that the financial statements are free of any material misstatements and find no material weaknesses. This report signals the City’s quality of accounting and financial reporting and is an indication that City funds are being spent appropriately and as intended by the City Council, grantor agencies, and federal and State laws. It also helps maintain the City’s favorable bond ratings Environmental Issues
The creation of the Annual Consolidated Financial Reporting document is not a project under the California Environmental Quality Act (CEQA), per the definition of a project identified in Section 15378 of CEQA in that there will be no direct, or reasonably foreseeable indirect physical change in the environment.

Cotati City Council
Agenda Staff Report
Item type: PUBLIC HEARINGS (ACTION)
To: City Council
Subject: CONSIDERATION AND ADOPTION OF RESOLUTION

CERTIFYING SANTERO WAY SPECIFIC PLAN EIR AND

ADOPTING SANTERO WAY SPECIFIC PLAN UPDATE
Date: February 11, 2025
Written by: Noah Housh, Director of Community Development Recommendation
It is recommended by the Community Development Department and the Planning Commission that the City Council adopt a resolution certifying the Santero Way Specific Plan (SWSP) EIR and finding the proposed update to the Santero Way Specific Plan (SWSP) consistent with the SWSP EIR and the General Plan EIR; adopting the Santero Way Specific Plan Update; a General Plan map amendment to formalize the expansion of the SWSP boundary to include three additional parcels within the Specific Plan (SP) Land Use Designation and directing further amendments to Chapter 17 of the Cotati Municipal Code, as necessary to implement the updated SWSP.

Background
In August 2001, the Santero Way Specific Plan (SWSP) was adopted, and originally envisioned a mixed-use office neighborhood adjacent to the SMART rail station. The primary objective of the original SWSP was to increase the number of residents and employees within walking distance (1/2 mile) of the SMART station. Specifically, the original Plan envisioned the development of 198 new dwelling units, 339,200 square-feet of office and institutional uses, 68,000 square-feet of retail uses, and 57,000 square feet of supporting parkland/open space.

On August 8, 2023, in response to stalled development within the Plan area, the City Council authorized the City Manager to enter into a professional services agreement with 4LEAF Inc. and several subconsultants to provide planning consulting services to complete the Santero Way Specific Plan Update.

In September 2023, the Association of Bay Area Governments (ABAG) and Metropolitan

Transportation Commission (MTC) published draft administrative guidance on their TransitOriented Communities (TOC) policies. These policies are intended to intensify land uses within one half-mile of transit hubs with the primary goal of increasing the overall supply of housing while also supporting the creation of jobs and increasing transit ridership, in keeping with the Plan Bay Area 2050. For Cotati, this area primarily covers properties along East Cotati Avenue.

These criteria essentially serve to increase residential and commercial densities, support alternative transportation, and reduce the perceived impediments to development. Currently, this includes requirements such as a minimum residential density range of 25-35 units per acre and no minimum parking requirement, and establishment of parking maximums for residential and commercial units. While adoption of the TOC policies is voluntary for Bay Area jurisdictions, TOC compliance will be required to retain eligibility for One Bay Area Grant (OBAG) funds by 2026, which have amounted to approximately $1,000,000 in annual funding for the City of Cotati in recent years.

On November 6, 2023, the City of Cotati held a public scoping meeting as the first step in the California Environmental Quality Act (CEQA) process once a determination has been made that an environmental impact report (EIR) is required for a project. Per CEQA Guidelines § 15082 and 15083, a Notice of Preparation was circulated for a 30-day period ending on November 22, 2023, and the scoping meeting was held to solicit comments on the scope of the EIR. This meeting was an opportunity for the public, agencies, and stakeholders to comment on the specific issues that should be addressed in the environmental review. Individuals who were unable to attend the scoping meeting were invited to email or mail their comments to the Community Development Department. Parallel with the scoping process for the EIR, staff began a public engagement campaign to gather community input on the update to the Plan itself. A Community Advisory Committee (CAC) was formed including residents, property owners, business representatives and local advocates. A Technical Advisory Committee (TAC) was also created to gather technical expertise on elements of the plan needing more specialized input from public agencies and subject matter experts.

In April 2024, staff identified a potential opportunity for the environmental analysis being prepared for the SWSP Update to be expanded to additionally analyze the potential impacts of implementing ABAG/MTC TOC policies on the other eligible parcels within the ½ mile radius surrounding the Cotati SMART station (graphic attached). Including this analysis into the environmental impact report (EIR) already underway was approved to provide significant cost savings, expedite the analysis and prepare the City for future adoption of the TOC policies upon approval by the City Council.

On July 19, 2024, the City of Cotati issued a second Notice of Preparation to identify that the scope of the environmental impact analysis was being expanded to analysis of the potential impacts of full TOC implementation in Cotati.

On August 5, 2024, the Planning Commission held a public workshop and second CEQA scoping meeting to assess new project alternatives and policy options resulting from the April decision to expand the scope of the project environmental analysis.

On November 1, 2024, a Public Review Draft Specific Plan and Draft Environmental Impact

Report (EIR) were made available for public comment for a 45-day period, as is required by State law. Only one comment was received during this comment period which came from CalTrans.

On November 15, 2024, a public review draft of the updated Santero Way Specific Plan was published for public review and comment for a 30-day period. Two comments were received, one from Rancho Adobe Fire Protection District and the other from the City of Rohnert Park staff.

On January 13, 2025, the Planning Commission considered the draft EIR and SWSP Update at a noticed public hearing. After receiving all presented information and conducting the public hearing, the Planning Commission voted unanimously (4-0-1) to recommend City Council adoption of the SWSP EIR and Update.

Analysis/Discussion
Since adoption of the Santero Way Specific Plan in 2001, approximately 100 homes and 15,000 square-feet of live-work spaces have been constructed, with an additional 98 residential units and 5,500 square-feet of office and retail uses approved for development. While the lack of the Plan's full buildout over its 20-year life can be partly attributed to market forces, feedback from potential developers and stakeholders has indicated that the original SWSP is too prescriptive in terms of development standards (such as design type and building height) and too reliant on commercial square footage given the economic changes since Plan adoption.

In response to the stalled redevelopment in this part of the City and to help meet local housing needs, the City has proposed to update the Plan to increase the quantity of residential development in place of the office and institutional square footage currently identified in the Plan. Essentially, the goal is to pivot the SWSP from an office-focused, mixed-use development to a residentially focused, transit-oriented neighborhood that also allows for mixed-use and neighborhood-serving retail development.

Proposed SWSP Document Updates
The SWSP update includes revised policies to implement local resident input, updated development standards and also incorporates recent changes in State law and regional policy direction, and adjusts the allowed mix of residential and commercial uses anticipated under the Plan (and supported by the accompanying Program Environmental Impact Report). The updated specific plan document and the environmental analysis document (EIR) are included as Attachments A and B to this report.

General Plan Amendments
The proposed update to the Santero Way Specific Plan expands the Plan boundary by adding three parcels not included in the original plan, as shown in the Table below. The General Plan

Land Use designation of Specific Plan (SP) is proposed to apply to all three of these parcels. See attached General Plan land use map.

Because of the density differences between the Downtown Specific Plan (DSP) and the Santero Way Specific Plan, a General Plan text amendment is not proposed to incorporate the specific allowable densities within the Specific Plan Land Use Designations. Rather, the individual zoning districts will identify the allowable densities for the Specific Plan land use designation.

The projected growth associated with the Specific Plan would be within projections of the Cotati General Plan and Plan Bay Area 2050+ for housing and population growth.

Zoning
The updated Santero Way Specific Plan proposes two separate zoning districts, the Transit Oriented Communities (TOC) District and the Santero Way (SW) District. Zoning capacity focuses on undeveloped parcels within the Plan Area, and considers existing conditions of Santero Way, including residential communities and the community-expressed need to minimize commercial traffic at the terminus of the cul-de-sac. The purpose of the zoning districts and the manner in which they are applied are as follows:

Transit-Oriented Communities (TOC): The TOC District is applied to all areas appropriate for a variety of higher-density mixed use development types, neighborhood-serving commercial, and light-manufacturing/maker type uses on parcels with frontage on East Cotati Avenue and the northern portion of Santero Way, closest to the train station. The allowable base density range is 25-35 units per acre (25 u/a minimum, 35 u/a maximum) and the allowable Floor Area Ratio (FAR) for commercial development is a minimum of 1.0 and maximum of 3.0.

Santero Way (SW): The SW District is applied to all areas appropriate for a variety of higherdensity residential and mixed-use development types, including multi-family housing, condominiums, and townhomes. The allowable residential density range is 25-35 units per acre (25 u/a minimum, 35 u/a maximum) and the allowable Floor Area Ratio (FAR) for commercial development is a minimum of 1.0 and maximum of 3.0. Commercial uses are limited to neighborhood serving retail and live-work applications associated with a residential development project. Unlike the TOC District, 100% commercial development is not allowed in the SW District. Additionally select allowances for low-intensity industrial land uses are applied to parcels with existing buildings to facilitate maximum functionality prior to anticipated redevelopment.

APN Address ExistingGPLand Use Proposed GPLand Use
144-301-008 955 ECotati Ave
Commercial, East Cotati
Corridor (CE)
Specific Plan (SP)
144-310-006 1015 ECotati Ave
Commercial, East Cotati
Corridor (CE)
Specific Plan (SP)
144-320-012 1038 ECotati Ave
Neighborhood, Low Density
(NL)
Specific Plan (SP)

Regional Policy and State Law
The Bay Area’s regional government agency, the Metropolitan Transportation Commission & Association of Bay Area Governments (MTC/ABAG) has established requirements for both residential and commercial developments within Transit-Oriented Communities (TOC) areas.

TOC areas are defined as parcels within a ½ mile radius of major transit stops, including the Sonoma-Marin Area Rail Transit (SMART). The requirements include both density minimums for residential developments, and minimum floor area ratios (FAR) for non-residential developments. In communities with commuter rail like Cotati, TOC minimums are as follows:

Table 1: Transit-Oriented Communities (TOC) Density Standards Development Type Minimum Density Maximum Density
Residential 25 units/acre 35 units/acre
Commercial 1.0 FAR 3.0 FAR
The entire Plan Area is located within the applicable ½ mile radius, and undeveloped parcels are subject to the minimum residential and commercial densities, as reflected in the Plan. Parcels with existing residential development can be exempted from density standards, but existing commercial and mixed-use development are subject to the policy.

In addition to the requirements of the TOC Policy that regulate development within the Plan Area, the Specific Plan itself is subject to State law that requires:
-Consistency with General Plan: The Specific Plan must be consistent with the local jurisdiction's General Plan.
-Text and Diagram: The plan should include both text and diagrams, such as maps and illustrations, to clearly convey its contents.
-Distribution, Location, and Extent of Land Uses: Clearly define the distribution, location, and extent of land uses within the area covered by the plan, including open space, residential, commercial, industrial, and other public and private uses. -Infrastructure and Public Facilities: Describe the proposed distribution, location, extent, and capacity of major infrastructure components, such as transportation, sewage, water, drainage, solid waste disposal, energy, and other essential facilities. -Standards and Criteria: Outline standards and criteria for the development and use of land, including the regulation of buildings and structures, street dimensions, lot sizes, and other relevant development parameters.
-Implementation Measures: Specify the implementation measures, including financing and phasing, required to carry out the Specific Plan.
-Consistency with Regional and State Policies: Ensure the plan aligns with broader regional

and state policies, including environmental regulations and housing requirements. -Environmental Review: Include an environmental review process as required by the California Environmental Quality Act (CEQA), with appropriate documentation and mitigation measures. -Public Participation: Engage the public through meetings, workshops, and other forms of community involvement to ensure input and feedback are considered in the planning process. -Flexibility and Amendments: Provide mechanisms for the amendment of the Specific Plan as needed to address changing circumstances or unforeseen issues. -Design Guidelines: Include design guidelines to ensure the aesthetic quality and architectural consistency of developments within the plan area.
-Monitoring and Evaluation: Establish a process for monitoring and evaluating the implementation of the Specific Plan to ensure it meets its objectives and can be adjusted as necessary.

IV. General Plan Consistency
Adoption of the Santero Way Specific Plan Update is consistent with and advances the following General Plan policies and actions:

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

GP Policy LU 2.10: Encourage mixed-use, pedestrian-, and transit-oriented development, with a focus on the Hub and major corridors.

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

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

Policy LU 2.7: Encourage social interaction between neighbors in new residential developments by providing opportunities for community gathering in common areas, parks, and neighborhood commercial centers.

Action LU 4a: Review and update the City’s development permitting process to provide a streamlined and straightforward process. At a minimum, the review may consider:

1. Methods to streamline and simplify the process, including the process for review by City staff as well as the various committees and commissions.

2. Opportunities to reduce redundancies and delays.

3. Methods to prioritize and fast-track in-fill development projects and re-use projects that are

consistent with the General Plan and Land Use Code.

4. Updating the City’s website to provide additional information to the public regarding development application requirements, and the building permit and land use approval process.

Policy H-3-2: Provide incentives for affordable housing development, including density bonus, expedited processing, relaxation of development standards, and either reduction, delay, or waiver of fees when financially feasible.

As noted above, a General Plan map amendment will formalize the expansion of the SWSP boundary to include three additional parcels within the Specific Plan (SP) Land Use Designation.

Consistency with City Council Strategic Goals
Adoption of the Santero Way Specific Plan Update is consistent with and advances the following City Council Strategic Goals:

Goal 1: Ensure long-term vitality for the City.

Objective 1c: Facilitate affordable housing, new development, and new infrastructure consistent with vision and goals of the General Plan and EIR.

Goal 2: Actively work to mitigate and adapt to the impact of climate change in accordance with adopted City Council policies.

Objective 2a: City to continue implementing the local goals in the adopted Climate Acton 2020 and Beyond plan to achieve greenhouse gas (GHG) reduction targets for City operations and the community.

Goal 3: Provide core services consistent with best-in-class community service levels.

Objective 3d: Update City regulations to respond to applicable legislative and legal changes.

Objective 3e: Provide convenient and reliable zoning, permitting, and development services.

Community Engagement
Cotati’s Santero Way Specific Plan Update process included the following public outreach efforts to involve members of the community and help guide development of the updated Plan:
-Specific Plan Update Website ( https://www.cotaticity.org/1535/Santero-Way-Specific-PlanUpdate ) provides status updates, introductory information to the process, access to meeting agendas and materials, contact information for comments about the Specific Plan Update, and community surveys in Spanish and English.
-Pop-up office at the Cotati SMART Station Depot, including hosting a Regional Housing Resource Fair, a Countywide Active Transportation Plan workshop, and three Community Advisory Committee (CAC) meetings from January to April 2024. -Meetings with a Technical Advisory Committee (TAC), comprised of representatives from the City of Cotati, City of Rohnert Park, Rancho Adobe Fire District, Sonoma County

Transportation Authority (SCTA), Sonoma County Transportation (SCT), Sonoma-Marin Area Rail Transit (SMART), and the Metropolitan Transportation Commission (MTC/ABAG). -Community survey on issues affecting the Plan Area, and a second survey to assess interest in various policy options for land use and transportation issues. Surveys were made available in English and Spanish and could be completed on paper or on cell phones, computers, and other internet-accessing devices. Surveys were promoted on the City webpage, email distribution lists, through social media, at in person events such as the farmers market and on flyers posted throughout the community.
-Kick-off presentation at a Planning Commission meeting was held November 6, 2023, covering the Specific Plan process and a preliminary scoping meeting for the Environmental Impact Report (EIR). A second scooping meeting was also held in fall of 2024 and both meetings included an opportunity for members of the public to speak and provide input.

Community input that helped guide development of the Specific Plan document identified the following priorities and areas of concern:
-63% of the community that responded to the survey would like to see the Plan Area develop with a mix of housing options and commercial development. -Over 59% of survey respondents identified a preference for development of lower density housing options such as single-family homes, townhouses, and plex housing to maintain compatibility with existing housing options.
-Senior housing options within the Plan Area with access to nearby transit and commercial businesses was identified as a priority.
-Maintaining an urban canopy and recreational open space was identified as a top priority by survey respondents.
-Throughout both surveys, parking was identified as a significant concern. -Use of the SMART Depot building as a community resource was expressed in the second survey.

In general, staff’s position is that updates to the Santero Way Specific Plan address State law and regional policy, implement the policy direction identified in the City Council Strategic Goals, are complementary to existing land use regulations including expanding on opportunities to develop housing within the City, incorporate and respond to community input, and address concerns that the original Specific Plan was too prescriptive and reliant on commercial development.

Financial Considerations
To date, the City has received an ABAG/MTC Priority Development Area (PDA) grant of

$415,000 and appropriated $50,000 in city funds for a total funding allocation of $465,000.

Because of the complexity of the project, a number of consultants were needed to fully analyze the potential impacts associated with development of the updated plan including land use, CEQA and utility experts. Further, the timing of the ABAG/MTC policies being published after the initial consultant work plans and contract scopes were executed, required budget amendments to ensure all necessary elements could be addressed with their analysis. The total not-to-exceed contract amounts were $482,487, with additional budgeted staff time going to management of this process.

Non-budgeted future financial considerations include One Bay Area Grant (OBAG) funds, which have amounted to approximately $1,000,000 in annual funding for the City of Cotati in recent years. TOC compliance has been identified as a significant factor in eligibility consideration for OBAG funds in the 2026 grant cycle and may also grant access to expanded and/or priority funding opportunities. Given this, ensuring TOC policy compliance will help to secure this future funding and support additional infrastructure improvements within the City.

Environmental Issues
According to CEQA Guidelines Section 15168(a), a Program Environmental Impact Report (PEIR) may be prepared on a series of actions that can be characterized as one large project. As such, a PEIR was prepared to evaluate the environmental impacts associated with development consistent with the Plan, and two alternative development outcomes that may occur. In accordance with CEQA Guidelines Section 15094(d), after the City Council provides a decision on the adoption of the Specific Plan Update, the city will file a notice of determination with the County Clerk within five working days of the decision. Following adoption of the updated SWSP, proposed development projects that are consistent with the Specific Plan would undergo a streamlined CEQA review process.

The complete EIR (draft and Final) and all appendices is attached for the public and City Council consideration. These documents include impact analysis across all categories analyzed under CEQA; all comments received throughout the process and responses to each; summary of impacts all mitigation measures identified to mitigate to less than significant impacts.

RESOLUTION NO. (XX)

RESOLUTION OF THE COUNCIL OF THE CITY OF COTATI CERTIFYING THE

SANTERO WAY SPECIFIC PLAN (SWSP) EIR AND FINDING THE PROPOSED

UPDATE TO THE SANTERO WAY SPECIFIC PLAN (SWSP) CONSISTENT WITH

THE SWSP EIR AND THE GENERAL PLAN EIR AND ADOPTING AN UPDATE TO THE SANTERO WAY SPECIFIC PLAN; FILE NO PA23-18
WHEREAS, in August 2001, the Santero Way Specific Plan (SWSP) was adopted, and originally envisioned a mixed-use office neighborhood adjacent to the SMART rail station. The primary objective of the original SWSP was to increase the number of residents and employees within walking distance (1/2 mile) of the SMART station. Specifically, the original Plan envisioned the development of 198 new dwelling units, 339,200 square-feet of office and institutional uses, 68,000 square-feet of retail uses, and 57,000 square feet of supporting parkland/open space; and
WHEREAS, on August 8, 2023, in response to stalled development within the Plan area, the City Council authorized the City Manager to enter into a professional services agreement with 4LEAF Inc. and several subconsultants to provide planning consulting services to complete the Santero Way Specific Plan Update, and
WHEREAS, in September 2023, the Association of Bay Area Governments (ABAG) and Metropolitan Transportation Commission (MTC) published draft administrative guidance on their Transit-Oriented Communities (TOC) policies. These policies are intended to intensify land uses within one half-mile of transit hubs with the primary goal of increasing the overall supply of housing while also supporting the creation of jobs and increasing transit ridership, in keeping with the Plan Bay Area 2050. For Cotati, this area primarily covers properties along East Cotati Avenue. These criteria essentially serve to increase residential and commercial densities, support alternative transportation, and reduce the perceived impediments to development. Currently, this includes requirements such as a minimum residential density range of 25-35 units per acre, no minimum parking requirements, and establishment of parking maximums for residential and commercial units. While adoption of the TOC policies is voluntary for Bay Area jurisdictions, TOC compliance will be required to retain eligibility for One Bay Area Grant (OBAG) funds by 2026, which have amounted to approximately $1,000,000 in annual funding for the City of Cotati in recent years, and
WHEREAS, on November 6, 2023, the City of Cotati held a public scoping meeting as the first step in the California Environmental Quality Act (CEQA) process once a determination has been made that an environmental impact report (EIR) is required for a project. Per CEQA Guidelines § 15082 and 15083, a Notice of Preparation was circulated for a 30-day period ending on November 22, 2023, and the scoping meeting was held to solicit comments on the scope of the EIR. This meeting was an opportunity for the public, agencies, and stakeholders to comment on the specific issues that should be addressed in the environmental review. Individuals who were unable to attend the scoping meeting were invited to email or mail their comments to the

Community Development Department. Parallel with the scoping process for the EIR, staff began a public engagement campaign to gather community input on the update to the Plan itself. A Community Advisory Committee (CAC) was formed including residents, property owners, business representatives and local advocates. A Technical Advisory Committee (TAC) was also created to gather technical expertise on elements of the plan needing more specialized input from public agencies and subject matter experts, and
WHEREAS, on April 2024, staff identified a potential opportunity for the environmental analysis being prepared for the SWSP Update to be expanded to additionally analyze the potential impacts of implementing ABAG/MTC TOC policies on the other eligible parcels within the ½ mile radius surrounding the Cotati SMART station (graphic attached). Including this analysis into the environmental impact report (EIR) already underway was approved to provide significant cost savings, expedite the analysis and prepare the City for future adoption of the TOC policies upon approval by the City Council, and WHEREAS, on July 19, 2024, the City of Cotati issued a second Notice of Preparation to identify that the scope of the environmental impact analysis was being expanded to analysis the potential impacts of full TOC implementation in Cotati; and WHEREAS, on August 5, 2024, the Planning Commission held a public workshop and second CEQA scoping meeting to assess new project alternatives and policy options resulting from the April decision to expand the scope of the project environmental analysis; and WHEREAS, on November 1, 2024, a Public Review Draft Specific Plan and Draft Environmental Impact Report (EIR) were made available for public comment for a 45-day period, as is required by State law. Only one comment was received during this comment period which came from CalTrans; and
WHEREAS, on November 15, 2024, a public review draft of the updated Santero Way Specific Plan was published for public review and comment for a 30-day period. Two comments were received, one from Rancho Adobe Fire Protection District and the other from the City of Rohnert Park staff; and
WHEREAS, on January 13, 2025, the Planning Commission of the City of Cotati conducted a public hearing to consider the proposed SWSP Update. After receiving all information presented and conducting the hearing, the Planning Commission voted 4-0-1 to recommend that the City Council certify the EIR and adopt the SWSP Update.

NOW THEREFORE BE IT RESOLVED, that the Council of the City of Cotati does find as follows:
1: Recitals.

The above recitals are true and correct and are incorporated into the findings herein. 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, 5) the Santero Way Specific Plan, 6) the Santero Way Specific Plan EIR, and 7) all staff reports, City files and records, and other documents prepared for and/or submitted to the Planning Commission and City Council related to adoption of this update to the Santero Way Specific Plan and the associated amendments to the General Plan Land Use Graphic and Title 17 (Land Use) of the Cotati Municipal Code.
3: General Plan Consistency
The Council of the City of Cotati does hereby find that the updates to the Santero Way Specific Plan, the General Plan Land Use Graphic and Title 17 (Land Use) of the Cotati Municipal Code to establish consistency with the Specific Plan Update, as set forth in this Ordinance, are in the best interest of the City in that they will further establish goals, policies, and implementation programs of the General Plan, including the Housing Element, to locate higher density near services, employers and transit; encourage mixed use development near transit and the Hub; maintain character of existing neighborhoods; encourage social interaction between neighbors in new developments; streamline the City’s development review process; expand housing opportunities; conserve resources, and use land appropriately.

Specifically, the proposed amendments implement the below referenced Housing Element and General Plan policies in that they will help to maintain the character of neighborhoods as development occurs; allow additional density for in-fill development; provide additional residential units in close proximity to local amenities and employment opportunities; the changes will support increased compact development and housing near local employment and supporting the use of alternative transportation methods; and the updated language will further encourage mixed use and transit oriented development through increased allowable density, including around the Hub and major corridors.

GP Policy LU 2.10: Encourage mixed-use, pedestrian-, and transit-oriented development, with a focus on the Hub and major corridors.

GP Policy LU2.4: Maintain the character of existing neighborhoods by ensuring new development is compatible in style, size, color, and footprint with existing residences in the neighborhood.

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

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

GP Policy LU2.7: Encourage social interaction between neighbors in new residential developments by providing opportunities for community gathering in common areas, parks, and neighborhood commercial centers.

GP Action LU 4a: Review and update the City’s development permitting process to provide a streamlined and straightforward process. At a minimum, the review may consider:

1. Methods to streamline and simplify the process, including the process for review by City staff as well as the various committees and commissions.

2. Opportunities to reduce redundancies and delays.

3. Methods to prioritize and fast-track in-fill development projects and re-use projects that are consistent with the General Plan and Land Use Code.

4. Updating the City’s website to provide additional information to the public regarding development application requirements, and the building permit and land use approval process.

HE Policy H-3-2: Provide incentives for affordable housing development, including density bonus, expedited processing, relaxation of development standards, and either reduction, delay, or waiver of fees when financially feasible. 4: Compliance with the California Environmental Quality Act.

In conformance with California Environmental Quality Act (CEQA), the City Council finds that the proposed amendments to Santero Way Specific Plan, the General Plan Land Use Graphic and Title 17 (Land Use) of the Cotati Municipal Code are consistent with and implement the goals, policies, and objectives of the 2015 General Plan, the 6th Cycle Housing Element and ABAG/MTC TOC policies. Further, consistent with CEQA Guidelines Section 15168(a), a Program Environmental Impact Report (PEIR) was prepared on the proposed series of actions (namely land use changes and future development), characterized as one large project. As such, a PEIR was prepared to evaluate the environmental impacts associated with development consistent with the Plan, and two alternative development outcomes that may occur. In accordance with CEQA Guidelines Section 15094(d), after the City Council provides a decision on the adoption of the Specific Plan Update, the City will file a notice of determination with the County Clerk within five working days of the decision. Following

adoption of the updated SWSP, proposed development projects that are consistent with the Specific Plan would undergo a streamlined CEQA review process.

The Council further finds that all adopted mitigating General Plan policies combined with mitigation measures identified in the SWSP PEIR and the Housing Element Mitigated Negative Declaration will address any potential environmental impacts of the proposed land use and code changes. Further, future project-specific environmental analysis of any development proposed under the amended Code will be required and will allow projectspecific impacts not previously identified or anticipated to be addressed.

NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council of the City of Cotati hereby certifies the SWSP EIR, adopts the Santero Way Specific Plan Update and approves the General Plan map amendment to formalize the expansion of the SWSP boundary to include three additional parcels within the Specific Plan (SP) Land Use Designation and providing direction on future necessary zoning changes.

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 February 11, 2025, by the following vote, to wit:

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

Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: LETTER TO GOVERNOR NEWSOM TO RECONSIDER

PROPOSED BUDGET CUTS AT SONOMA STATE

UNIVERSITY (SSU)
Date: February 11, 2025
Written by: Damien O'Bid, City Manager
Recommendation
It is recommended the City Council adopt a motion authorizing the Mayor to sign and transmit a final version of the draft letter to Governor Newsom recommending reconsideration of the proposed budget cuts at Sonoma State University.

Background
Sonoma State recently announced severe budget cuts in response to the reductions across the California state university system. This was the result of across-the-board ~8% reductions imposed on state agencies to reduce the State budget deficit.

At the January 28, 2025 City Council meeting, the City Council requested that staff draft a letter opposing the cuts and agendize it for a future City Council meeting.

Attached are similar letters from the Sonoma County Board of Supervisors and the Executive Director of Sonoma Clean Power for reference.

City of Cotati
Sonoma County, California
________________________________________________________________ 201 W. Sierra Ave, Cotati, CA 94931 | (707) 792-4600 | www.cotaticity.gov | @cityofcotati February 12, 2025
Governor Gavin Newsom
1021 O Street, Suite 9000
Sacramento, CA 95814
SUBJECT: BUDGET CUTS AT SONOMA STATE UNIVERSITY (SSU)
Dear Governor Newsom,
The City Council is writing to express our deep concern regarding the risk that would be created by implementing the disproportionate financial cuts recently announced for Sonoma State University (SSU).

The scale of these severe cuts without a long-term plan for addressing the root cause of declining enrollment jeopardizes the university’s existence. As an employer of numerous SSU alumnus, the City has witnessed firsthand the vital role that this university plays in educating the next generation of professionals and leaders that serve our community.

SSU’s contributions extend far beyond the campus. For decades, its programs—such as the Masters in Public Administration, Physics, Economics, and Earth and Environmental Sciences—have served as a pipeline for highly skilled professionals and our future leaders in Northern California. These programs have been instrumental in workforce development, supporting local businesses, governments, and organizations like the City that rely on SSU graduates for their expertise. The elimination of these programs will have ripple effects across the region, crippling industries that depend on a steady flow of educated professionals.

The City, with our neighbors in Rohnert Park and Sonoma State University are entering into a joint Memorandum of Understanding to work together on a variety of critical issues in the community, region and state. This builds on our current collaborations with workforce development, economic development and housing. Additionally, the City has worked closely with SSU on public safety initiatives, including the first multi-jurisdictional-University mobile mental health crisis response team benefiting students on and off campus as well as our residents. The proposed cuts jeopardize the ability of SSU to continue to work on innovative programs such as these that prove models for the State and nation.

The university system in California is unique and has been a key driver of innovation, economic and job growth in California. The proposed cuts eliminating numerous programs threatens not just our region but the long-term position of California as an innovator and economic engine of the United States. The housing crisis has been a drag on our economy, but one that we can build back from unless our

City of Cotati
Sonoma County, California
________________________________________________________________ 201 W. Sierra Ave, Cotati, CA 94931 | (707) 792-4600 | www.cotaticity.gov | @cityofcotati university system is hobbled by severe cuts that diminishes it’s ability to educate the next generator of innovators and entrepreneurs.

A Long-Term Plan
The enrollment decline at SSU begs for a clear long-term plan, one that does not just involve budget cuts, but one that also lowers the risk of exacerbating the decline. SSU’s current identity as a liberal arts institution would be thrown into question with the proposed elimination of so many departments and majors. Additionally, the complete elimination of all sports programs fundamentally undermines the culture of SSU and is the glue that brings people together, creates a school identity and builds school pride.

The North Bay has no other institution like SSU. Eliminating core academic programs, all athletics and entire departments jeopardizes not only the university’s ability to attract students but also its mission to serve the critical workforce needs of our region. We understand the need to live within our financial means, but believe that the public university system in California is a key part of our collective future and we should be strategic about any reductions.

What is its new identity that will continue to attract new students, preserve the core educational mission and keep SSU viable? The answer to this question should not follow budget cuts; it should precede them.

Proven Methods for Increasing Enrollment
The breadth of the cuts creates new risks for the continued viability of SSU. Historically, the CSU has mitigated budget shortfalls at underenrolled campuses by directing applicants elsewhere in the system to the underenrolled campuses. There have also been expanded partnerships with community colleges, such as at CalPoly Humboldt, alleviate some expenses while preserving critical majors. A newer problem is that the CalState Apply online application process is rejecting students for overly rigid reasons and inviting them to appeal after they are rejected, a process that is daunting and leaving many seeking admission elsewhere. Repairing that online process would increase access and enrollment. Strategies such as these could bolster enrollment and preserve critical majors at SSU, but they appear absent in this proposal.

The City respectfully requests that the Governor’s office and legislature pause the budget cuts at SSU and work with the Chancellor to support a rapid effort to articulate the long-term vision and then ensure any budget cuts support that vision. The state can also play a role by rolling back or reducing nonacademic administrative requirements, which over time have become progressively more time consuming and resource intensive, threatening to crowd out the ability to fund academic programs – particularly during tight budgets. Additionally, we urge that the CSU Board of Trustees reinstate proven strategies, such as enrollment management, deeper partnerships with our community college, and fixing the online application tool to help close the budget gap without sacrificing the educational and economic lifeblood of the North Bay.

City of Cotati
Sonoma County, California
________________________________________________________________ 201 W. Sierra Ave, Cotati, CA 94931 | (707) 792-4600 | www.cotaticity.gov | @cityofcotati Thank you for your attention to this matter. I am confident that with thoughtful consideration and creative solutions, we can preserve the North Bay’s only educational institution of its kind.

Sincerely,
Mayor
Cc: CSU Chancellor’s office
Chairman Jack B. Clarke Jr. and CSU Board of Trustees
CSU Board of Trustees
Chancellor Mildred Garcia
Interim SSU President Emily F. Cutrer
Senator pro Tempore Mike McGuire
Senator Christopher Cabaldon
Assemblymember Damon Connelly
Assemblymember Cecilia Aguiar-Curry
Assemblymember Chris Rogers
US Representative Mike Thompson
US Representative Jared Huffman
https://cotaticityorg-my.sharepoint.com/personal/dobid_cotaticity_org/Documents/Santero Way Apartments/Exoneration Letter - Colvin.docx

Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: MID-YEAR BUDGET REVIEW FOR FISCAL YEAR 2024-2025 Date: February 11, 2025
Written by: Angela Courter, Director of Administrative Services Recommendation
It is recommended that the City Council receive the fiscal year 2024/25 mid-year budget review report, adopt the resolution to amend the fiscal year budget based on updated assumptions for investment earnings, and receive the investment report for the quarter ended December 31,2024.

Background
The Mid-Year Budget Review is an opportunity for staff to update the City Council on current year budget performance based on actual operating results through December 31, 2024. This report's intent is to update the Council on how major revenue sources and operating expenditures are trending compared to the approved budget and propose any amendments to the budget if needed. Additionally, the mid-year revenue and expenditure report serves as a good baseline from which to begin developing the City Manager’s fiscal year 2025/26 recommended budget.

Emphasis is placed on an analysis of the City’s major General Fund revenues, as the overall health of those revenues is instrumental to the City’s ability to help, and potentially enhance, services in the future. In addition to the General Fund revenues, we will also evaluate the General Fund expenditures and the Water Fund, Sewer Fund, and Cash and Investments.

The City hired Optimized Investment Partners (OIP) in May 2023 to help improve the investment returns for the city and to ensure compliance with California Government Code by ensuring safety of principal and sufficient liquidity for operations. The independently generated investment report for the quarter ended December 31, 2024, is attached along with the Quarterly Financial Report and Fiscal Resilience Report for consistency with prior quarters and compliance. This report is provided to meet the reporting requirements in the California Government Code Sections 53600 et seq. and the City of Cotati Investment Policy and Guidelines.

Analysis/Discussion
General Fund
General Fund Revenues: The General Fund revenues are on track for the budgeted expectations at mid-year. There is a variation of timing of receipts for Sales Taxes, Revenues from Other Agencies, Revenue from Other Taxes, and Licenses, Permits and Franchises which are expected to be reconciled by the end of the budget year. City staff are proposing two types of budget adjustments for General Fund Revenues. First increasing investment earnings by $25,000 as cash balances retained within the funds have increased allowing for higher leverage of funds in pooled the pooled investment accounts to earn more returns. Offsetting that increase is a decrease in Sales Tax as receipts have slowed over the previous year and a more conservative outlook is expected. With the new proposed budget, total sales tax would have a combined sales tax revenue of just under $5.98 million, down $13,807 or 0.2% from the previous year’s actual balance of $5.99 million.

Total expenditures both by expenditure type and by department for fiscal year 2024/25 are in line with the current year budget. Comparing the expenditures to the same periods in the prior year, there is a 31.0 percent increase of $1.4 million. This increase was primarily related to increased transfers needed for capital projects, increased contract services for insurance and tech and data projects.

Enterprise Funds
Water Funds- The water funds charges for services are tracking at 16.2 percent above the same period in the prior year and at 61.6 percent of the annual budget. This increase is primarily due to the City’s rate increase. Expenses as of mid-year are slightly below budget and in line with expectations. Aqueduct water usage, contract services, and salaries-benefits are the main expenses for the fund at $413,538, $216,147, and $363,273, respectively for the current fiscal year to December 31, 2024. Expenditures compared to prior years have increased due to increased aqueduct charges and contract services including allocated technology, data improvements and insurance, and the Main Flushing program.

Sewer Funds- The sewer fund revenues and expenditures are tracking at budget expectations of

51.8 percent. Total revenues for the funds compared to the same period in the previous year decreased due to one-time non-operating service payments received for developments. The actual balance of expenditures compared to the prior year at the mid-point has decreased 2.0 percent due to decreased capital outlay for projects during the period.

Staff are proposing budget adjustments to increase revenue expectations for investment earnings for both the water and sewer funds. Initial budget estimates for this non-operating revenue source were more conservative and staff have been able to manage cash on hand for these funds to leverage excess funds available for liquid investments in CAMP. Additionally, staff completed discussions related to the leachate agreement and as such were able to fully charge for Collection System Charges related to the contract thus increasing the revenues for the current fiscal year by $73,000. Lastly, due to increased water consumption and reductions in usage from local wells, staff propose a minor increase in the water aqueduct charges by $50,000 to $695,660 for the

fiscal year 2024/25.

These funds will continue to be monitored for variations in the budget as we continue to work towards the next fiscal year's budget.

Cash and Investments Mid-Year Report
Cash and investments held by the City and the trustees continue to be invested in accordance with the Government Code and the Council Investment Policy as adopted on May 9, 2024.

Cash Flows- Sufficient cash inflows were available from July 2024 through December 2024 to meet all City expenditures. In addition, the City has enough cash flow on December 31, 2024, to cover expected expenditures through the next six months. The difference in reporting between the cash and investments in the Mid-Year Report and the Investment Report is due to timing differences for the balance of outstanding payments and accrued interest.

Investment Reporting Balances: The total cash and investment portfolio book value (cost) held by the City as of December 31, 2024, was $16,149,496. Total cash and investments held by the trustees for the 2019 and 2020A Bonds was $274,297.

The cash and investments held by the City include the following components: Managed Investment Portfolio ($6,414,164), State of CA Local Agency Investment Fund ($6,363), California Asset Management Program (CAMP) Pooled Investment Fund ($8,633,955), Cash/Time Deposits ($1,064,235), and accrued interest on investments ($30,779). Earned interest is the interest earned on investments over a specific time period, accrued interest is the interest that an investment has earned, but has not yet been received, and paid interest is the interest that has already been received as payment.

During the quarter, no investments were purchased and none matured.

Two-year Treasuries yielding 3.66% at the beginning of the quarter ended higher at the end of the quarter at 4.25%, which was an increase of 59 basis points for the quarter.

As of December 31, 2024, the Weighted Yield to Maturity on the Managed Investment Portfolio was 4.45% and the Weighted Average Maturity 1.45 years.

Financial Considerations
City staff are proposing to amend the general fund fiscal year budget to address variances in revenues and some expenditures. The net change to the General Fund is a decrease in revenues of $25,000. The net change in the Sewer Fund is an increase of revenues of $123,000 and the Water Fund has a net $0.00 change with equal changes to revenues and expenditures for the budget year 2024/25. See Exhibit A for details of proposed changes.

No other adjustments or financial considerations are proposed with the presentation of the MidYear budget or the investment reports.

Environmental Issues
The action of a mid-year budget review does not constitute a project as defined by California Environmental Quality Act Guidelines Section 15378; therefore, no further environmental review is required.

RESOLUTION NO. (XX)

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COTATI TO AMEND THE ADOPTED BUDGETED FOR THE FISCAL YEAR 2024/25.

WHEREAS, the Council for the City of Cotati adopted the fiscal year 2024/25 budget on June 25, 2024, using the best-known information of projected revenues and expenses at that time; and
WHEREAS, with the review of the mid-year financial standings and economic environment staff have identified seven budget adjustments which would align the budget with expectations for the current fiscal year, and
WHEREAS, the proposed amendments to the Fiscal Year 2024/25 budget are enumerated in Exhibit A to this resolution; and
WHEREAS, the adopted Fiscal Year 2024/25 Budget will be revised to reflect each and all the amendments which the City Council, up to the time of adoption of this Resolution, believes should be made as per Exhibit A; and
NOW THEREFORE BE IT RESOLVED, the amendments for the Fiscal Year 2024/25 adopted budget as so amended, modified, revised, and corrected are approved and adopted. In adopting the budget amendments, the City Council hereby approves and instructs the City Manager and Administrative Services Director to implement changes, as necessary.

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 February 11, 2025, by the following vote, to wit:

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

Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: RECEIVE AND FILE THE FISCAL YEAR 2023/24 POPULAR ANNUAL FINANCIAL REPORT (PAFR).

Date: February 11, 2025
Written by: Angela Courter, Director of Administrative Services Recommendation
It is recommended that the City Council adopt a motion to receive and file the Fiscal Year 2023/24 Popular Annual Financial Report (PAFR).

Background
The Government Finance Officers Association (GFOA) established the Popular Annual Financial Reporting Awards Program (PAFR Awards Program) in 1991 to encourage and assist state and local governments to extract information from their Annual Comprehensive Financial Report (ACFR) to produce high quality popular annual financial reports specifically designed to be readily accessible and easily understandable to the general public and other interested parties without a background in public finance and then to recognize individual governments that are successful in achieving that goal.

The Popular Annual Financial Report (PAFR) for the City of Cotati provides a snapshot of financial data and City specific information as was included within the audited ACFR. It highlights the topics of most frequent interest including; City overview including history, vital statistics, and resources available to the public; financial highlights including details on comparative revenues, expenses, net position fund balance; as well as strategic goals and accomplishments made during the year.

To reach more citizens about the vitality of the City and our financial standing, staff also translated the full document into Spanish. Both English and Spanish versions will be published online and promoted through social media with a City Financials Quiz, consistent with prior years.

Analysis/Discussion
The purpose of the PAFR is to increase awareness throughout the community of the City’s finances. The report provides a brief analysis of the City’s revenue sources, where those dollars are spent, and an overview of the City’s financial condition. It is our goal that this report is easy to read and understand.

Though the intent of the PAFR is to provide a basic summary of the financial information, it is a focused subset of the financial information as provided within the audited ACFR. As such, it is noted throughout the report to find the detailed financial reports within the City’s ACFR, which can be viewed at City Hall or on the City’s website at cotaticity.org. The ACFR is a more complete, independently audited financial presentation, prepared in accordance with Generally Accepted Accounting Principles (GAAP).

Consistent with the prior year, the Administrative Services Department will provide the PAFR both in physical documents, available at City Hall, the Police Department, and the Chamber of Commerce, as well as digital copies available on the City Website. With the next City newsletter, we will also provide a notice to the public about the availability of both the PAFR as well as the ACFR online and at City Hall.

Financial Considerations
No financial considerations are applicable to the filing of the Popular Annual Financial Report.

This report is a summarization of the financial information provided within the audited ACFR which is available for review online or at City Hall.

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.

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: February 11, 2025
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].