Agenda packet — Cotati City Council, September 8, 2026 (part 1 of 2)

AGENDA

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

FORMER COTATI COMMUNITY REDEVELOPMENT AGENCY
City Council Chamber, City Hall 201 W. Sierra Avenue
Tuesday, September 08, 2026
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 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://www.youtube.com/@cityofcotati7280/streams

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/85732486653?pwd=yOIntUsUmNuvNboRaZBFaFSFLBz6LQ.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: 857 3248 6653 Passcode: 074311
+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 in writing and included as part of the record of the meeting. They will not be read aloud into the record at 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, in accordance with the City Council Rules of Conduct.

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.

Cotati City Council Agenda September 08, 2026
Accommodations: 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 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.
• Audience members are advised to keep conversations to a minimum or conduct them outside the building. • Members of the public are prohibited from speaking, yelling, or otherwise making loud noises from the audience that disrupt the orderly proceeding of the meeting.
• 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.

Public Comment: Public comment on any one agenda item is limited to no more than three (3) minutes per person, in accordance with the City Council Rules of Conduct.

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).

Announcements:

A. Meeting Orientation for New Attendees/Viewers. In conformance with the Brown Act and the adopted City Council Rules, if the City Council is considering an item in which action will be taken, citizens will be invited to provide comments relevant to the item being discussed.

The meeting agenda also includes a Citizen Business item, which is the designated place on the agenda where citizens have the right to comment on any matter within the City’s subject matter jurisdiction. However, Citizen Business items do not generally receive a response because the Brown Act prohibits the City Council from taking action or considering any item that is not on this agenda, so as to ensure that other members of the community who wish to provide comment are notified in advance through a properly noticed meeting agenda. Nonetheless, in accordance with the Brown Act, the Council may briefly respond, may ask a question for clarification, or may direct an item be placed on a future agenda.

B. Measure S supports police services, a variety of recreation programs for all ages, and the maintenance of our streets, parks, and public buildings. See details on the web at cotaticity.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. Have you noticed a street light out, pothole, or issues in a City Park? We want to keep Cotati beautiful and running smoothly, so please let us know what needs to be fixed, by going to the City website under “How do I” and “Report a Service Request.” E. 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 nonemergency 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.

City Council meetings are conducted according to City Council Policy 2025-03: City Council Rules of Conduct. 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 - ROLL CALL

2. 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 – AUG 18, 2026 B. COTATI CITY COUNCIL – REGULAR MEETING – AUG 25, 2026

3. PROCLAMATIONS (ACTION)
Cotati City Council Agenda September 08, 2026
A. LATINO HERITAGE MONTH
B. CREEK WEEK 2026
C. CHILDHOOD CANCER AWARENESS MONTH

4. PRESENTATIONS
A. PRESENTATION BY THE COTATI LIBRARY COMMISSIONER
It is recommended that the City Council receive a presentation from the Cotati Library Commissioner. No action will be taken.

5. AGENDA REVIEW (ACTION)

6. 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 2025-03, 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.

7. CONSENT CALENDAR (ACTION)
A. CANCELLATION OF THE CITY COUNCIL MEETING ON SEPTEMBER 22, 2026 It is recommended that the City Council adopt a motion to cancel the regular City Council meeting of September 22, 2026.

B. SECOND READING OF AN ORDINANCE AMENDING SECTION 17.42.170

ACCESSORY DWELLING UNITS/JUNIOR ACCESSORY DWELLING UNITS OF

THE COTATI MUNICIPAL CODE TO CONFORM TO STATE LAW
It is recommended by the Community Development Department that the City Council adopt an ordinance amending Section 17.42.170 Accessory Dwelling Units/Junior Accessory Dwelling Units of the Cotati Municipal Code to conform with State law.

C. BIANNUAL CONFLICT OF INTEREST CODE REVIEW
It is recommended that the City Council adopt a resolution re-approving the City of Cotati’s Conflict of Interest Code.

D. APPROVAL OF CONTRACTS EXCEEDING CITY MANAGER CONTRACTING AUTHORITY – JOHNSTON SIGN COMPANY INC. AND INDEPENDENT

INVESTIGATIVE CONSULTANTS, LLC
It is recommended that the City Council adopt a resolution approving:

1. An agreement with Johnston Sign Company Inc. for fabrication of park rules and wayfinding signs in an amount not to exceed $36,000; and

2. A related $50,000 budget reclassification from the Cator Field Basketball Resurfacing Project; and

3. A continuing services agreement with Independent Investigative Consultants, LLC for Police Department investigative services in an amount not to exceed $40,000.

E. CONSIDERATION AND ADOPTION OF RESOLUTION APPROVING THE CITY OF Cotati City Council Agenda September 08, 2026
COTATI’S 2026 COTATI CANDYLAND EVENT
It is recommended that the City Council adopt a resolution approving the City of Cotati’s 2026 Cotati Candyland Event.

F. APPROVAL OF 2026 COTATI CHAMBER OF COMMERCE OKTOBERFEST EVENT

IN LA PLAZA PARK
It is recommended that the City Council adopt a resolution approving the 2026 Cotati Chamber of Commerce Oktoberfest event.

8. DIRECTION ON FUTURE AGENDA ITEMS

9. REGULAR AGENDA (ACTION)
A. QUARTERLY FINANCIAL UPDATE FOR THE UNAUDITED FISCAL YEAR END 2025/26
It is recommended that the City Council receive and file the Fiscal Year 2025/26 Fourth Quarter Unaudited Financial Report for the period ending June 30, 2026, including the investment report, and fiscal resilience report for the same quarter ended. No action will be taken.

B. 2026 PRESENTATION ON THE PENSION UNFUNDED ACCRUED LIABILITY,

POLICY COMPLIANCE, AND FUNDED STATUS
It is recommended that the City Council receive and file the 2026 Pension Liability Review prepared by Ridgeline Municipal Strategies, LLC. No action will be taken.

C. APPROVAL OF MEASURE O GRANT AGREEMENT - MOBILE CRISIS TEAM

SUPPORT
It is recommended that the City Council adopt a motion authorizing the City Manager to execute a grant agreement for Measure O funds to support mobile crisis team operations in the City of Cotati, Rohnert Park and Sonoma State University for FY 26-27 through FY 28-29.

D. APPROVAL OF THIRD AMENDED SAFE MEMORANDIUM OF UNDERSTANDING It is recommended that the City Council approve a resolution authorizing the City Manager to enter into and execute the Second Amended and Restated Memorandum of Understanding (MOU) with the City of Rohnert Park, Sonoma State University and Petaluma People Services Center to Operate and Manage the Rohnert Park/Cotati SAFE Team (Specialized Assistance for Everyone) to provide crisis response services to our communities, subject to final review and such revisions as may be approved by the City Attorney.

E. UPDATE ON THE LA PLAZA WATER FOUNTAIN
It is recommended that the City Council receive an update on the planned removal of the decommissioned water fountain in La Plaza Park and provide direction to staff, if any.

F. AWARD OF 2026/2027 PAVEMENT PRESERVATION PROJECT
It is recommended the City Council of the City of Cotati adopt a resolution approving the award of a construction contract for the 2026/2027 Pavement Preservation Project (Project) to Graham Contractors, Inc.; approving an amendment to the Professional Services Agreement with Green Valley Consulting Engineers for Construction Management and Inspection services; approving a $50,000 budget amendment; and authorizing the City Manager to execute the agreements, amendments, and any necessary change orders within the approved Project budget.

10. LAND ACKNOWLEDGMENT & PLEDGE OF ALLEGIANCE
Cotati City Council Agenda September 08, 2026
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 millenia. This acknowledgment does not take the place of authentic relationships with Indigenous communities but serves as a gesture of respect to the land we are on.

11. CITY MANAGER'S REPORT & COUNCILMEMBER REPORTS

12. INFORMATION RECEIVED AFTER THE AGENDA WAS POSTED

13. 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 September 4, 2026. /s/ Kevin Patterson, 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, August 18, 2026
6:00 PM SPECIAL MEETING

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

Attendee Name Title Status
Sylvia Lemus Mayor Present
Susan Harvey Vice Mayor Absent
Ben Ford Councilmember Present
Laura Sparks Councilmember Present
John Savage Councilmember Present

2. PUBLIC COMMENT
Pursuant to California Government Code Section 54954.3(a), members of the public wishing to address the Council may do so at the beginning of the special meeting, and such comments shall be limited to the special meeting topic.

3. REGULAR AGENDA (ACTION)
A. RESOLUTION CANCELLING THE NOVEMBER 3, 2026 GENERAL MUNICIPAL

ELECTION AND APPOINTING THE NOMINATED CANDIDATES TO THE CITY

COUNCIL
Presentation by City Manager Damien O’Bid.

Councilmembers discuss.

Council voted to cancel the November 3, 2026 General Municipal Election, and appoint the two qualified candidates, Kimberlyn Moffet and Ryan Long, to the two available Council seats.

RESULT: Adopted [4 – 0]
MOVER: Ben Ford, Councilmember
SECONDER: Laura Sparks, Councilmember
AYES: Lemus, Ford, Sparks, Savage
ABSENT: Harvey
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Cotati City Council Minutes August 18, 2026

4. LAND ACKNOWLEDGEMENT & PLEDGE OF ALLEGIANCE
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.

5. INFORMATION RECEIVED AFTER THE AGENDA WAS POSTED

6. ADJOURNMENT
Mayor Lemus adjourned the meeting at 6:12pm.
/s/ Kevin Patterson, City Clerk
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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, August 25, 2026
6:00 PM REGULAR MEETING

1. CALL TO ORDER - ROLL CALL

Mayor Lemus called the meeting to order at 6:00pm.

Attendee Name Title Status
Sylvia Lemus Mayor Present
Susan Harvey Vice Mayor Absent
Ben Ford Councilmember Present
Laura Sparks Councilmember Present
John Savage Councilmember Present
Staff Present: City Manager Damien O’Bid, City Attorney John Bakker, City Clerk Kevin Patterson, Director of Administrative Services Angela Courter, Director of Community Development Noah Housh, Director of Public Works/City Engineer Craig Scott, Police Chief Chris Simmons, Senior Planner JP Harries, Associate Planner Autumn Buss

2. 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 - AUG 11, 2026 No public comment.

RESULT: Approve [4 TO 0]
MOVER: Ben Ford, Councilmember
SECONDER: Laura Sparks, Councilmember
AYES: Lemus, Ford, Sparks, Savage
NAYS: None
ABSENT: Harvey

3. PROCLAMATIONS (ACTION)
A. WOMEN'S EQUALITY DAY 8 of 280
Cotati City Council Minutes August 25, 2026
Mayor Lemus read the proclamation.

B. PROCLAMATION IN HONOR OF MICHAEL LARRAIN, THE COTATI FLOWER GUY
Mayor Lemus read the proclamation. Proclamation was accepted by Bonny Russell Larrain and Wilder Larrain.

4. AGENDA REVIEW (ACTION)
No changes.

5. 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 2025-03, 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.

Public Comment:

Laurie Alderman of Cotati

6. CONSENT CALENDAR (ACTION)
A. SECOND READING OF AN ORDINANCE AMENDING SEVERAL SECTIONS OF

THE COTATI MUNICIPAL CODE TO CORRECT ERRORS AND STREAMLINE THE CITY’S PERMITTING PROCESS
B. CONSIDERATION OF A RESOLUTION APPROVING THE ANNUAL RENEWAL OF CONTRACT SERVICES FOR CIVICPLUS FOR FISCAL YEAR 2026/27 AND 2027/28 INCLUDING A MINOR BUDGET AMENDMENT FOR $1,908
RESULT: Adopt [4 TO 0]
MOVER: Ben Ford, Councilmember
SECONDER: Laura Sparks, Councilmember
AYES: Lemus, Ford, Sparks, Savage
NAYS: None
ABSENT: Harvey

7. DIRECTION OF FUTURE AGENDA ITEMS
None.

8. PUBLIC HEARINGS (ACTION)
A. CONSIDERATION OF A 12-MONTH TIME EXTENSION TO THE COTATI VILLAGE

I PROJECT
Presentation by Senior Planner JP Harries. 9 of 280
Cotati City Council Minutes August 25, 2026
Councilmembers discuss.

Public Comment:

Monica Goddell of Cotati
Laurie Alderman of Cotati
RESULT: Adopt [4 TO 0]
MOVER: Laura Sparks, Councilmember
SECONDER: Ben Ford, Councilmember
AYES: Lemus, Ford, Sparks, Savage
NAYS: None
ABSENT: Harvey
B. ADU ORDINANCE UPDATE
Presentation by Associate Planner Autumn Buss.

Councilmembers discuss.

No public comment.

RESULT: Introduce [4 TO 0]
MOVER: Laura Sparks, Councilmember
SECONDER: John Savage, Councilmember
AYES: Lemus, Ford, Sparks, Savage
NAYS: None
ABSENT: Harvey

9. REGULAR AGENDA (ACTION)
A. APPOINTMENT OF A VOTING DELEGATE AND ALTERNATE TO THE 2026

LEAGUE OF CALIFORNIA CITIES (LOCC) ANNUAL CONFERENCE
Presentation by City Manager Damien O’Bid.

Councilmembers discuss.

No public comment.

Council voted to appoint Mayor Lemus as the voting delegate, Vice Mayor Harvey as the first alternate, and City Manager O’Bid as the second alternate. Council gave direction to the voting delegate to oppose the proposed Resolution unless amended, to ensure that the State retains power to penalize cities who try to circumvent State housing goals. 10 of 280
Cotati City Council Minutes August 25, 2026
RESULT: Approve [4 TO 0]
MOVER: Laura Sparks, Councilmember
SECONDER: Ben Ford, Councilmember
AYES: Lemus, Ford, Sparks, Savage
NAYS: None
ABSENT: Harvey
B. ENHANCED INFRASTRUCTURE FINANCE DISTRICT UPDATE
Presentation by City Manager Damien O’Bid.

Councilmembers discuss.

Public Comment:

Laurie Alderman of Cotati
C. CONSIDER SUPPORTING AB 1761 (RODGERS) - IMPROVING PCIA

TRANSPARENCY
Presentation by City Manager Damien O’Bid.

Councilmembers discuss.

No public comment.

RESULT: Approve [4 TO 0]
MOVER: Laura Sparks, Councilmember
SECONDER: Ben Ford, Councilmember
AYES: Lemus, Ford, Sparks, Savage
NAYS: None
ABSENT: Harvey

10. 11.

LAND ACKNOWLEDGMENT & PLEDGE OF ALLIGIANCE
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 millenia. This acknowledgment does not take the place of authentic relationships with Indigenous communities but serves as a gesture of respect to the land we are on.

CITY MANAGER'S REPORT & COUNCILMEMBER REPORTS
Report by City Manager Damien O’Bid.

Councilmembers report out on local and regional events and meetings.

12. INFORMATION RECEIVED AFTER THE AGENDA WAS POSTED

13. ADJOURNMENT
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Cotati City Council Minutes August 25, 2026
Mayor Lemus adjourned the meeting at 7:40pm in honor of Isle Meingast, a Cotati resident who passed away recently at the age of 114.
/s/ Kevin Patterson, City Clerk
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PROCLAMATION

OF THE CITY COUNCIL OF THE CITY OF COTATI
PROCLAMING SEPTEMBER 15-OCTOBER 15, 2026 AS LATINO HERITAGE MONTH
WHEREAS, each year, the federal, state, and many local governments observe Hispanic Heritage Month from September 15 to October 15 by recognizing and celebrating the histories, cultures, and contributions of American citizens whose ancestors came from Spain, Mexico, the Caribbean and Central and South America; and
WHEREAS, September 15th is significant as a starting date for Latino Heritage month because it is the anniversary of independence for the Latin American countries of Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. In addition, Mexico and Chile celebrate their independence on September 16th and September 18th respectively, and Dia de La Raza, which is October 12th, falls within this 30-day period; and
WHEREAS, the National Hispanic Heritage Month theme for 2026 is “Unidos, Somos Más”, which translates to “Together, We Are More”, celebrating community strength, unity, and collective impact; and
WHEREAS, the observation started in 1968 as Latino Heritage Week under President Lyndon Johnson and was expanded by President Ronald Reagan in 1988 to cover a 30- day period starting on September 15 and ending on October 15. Each successive President has called upon the people of our country to observe this month with appropriate respect, ceremonies, activities; and
WHEREAS, Hispanics/Latine have made immeasurable contributions to our culture and economy and have been integral to the prosperity and enrichment of Cotati, Sonoma County and the United States; and
WHEREAS, in the City of Cotati, Hispanic/Latine community members, business owners, residents, and students continue to foster the culture and tradition as a whole while also advocating and ensuring a voice on behalf of the Hispanic/Latine community, with recent focus on immigration, education, health, wellness, financial stability, economic and civic engagement, and social justice; and
WHEREAS, Hispanics/Latine continue to enrich our nation’s character and contribute to our common future; and
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WHEREAS, Hispanic Heritage Month also allows us to honor and celebrate the key leadership roles and accomplishments of Hispanics/Latine in our community and our shared values.

NOW, THEREFORE, BE IT PROCLAIMED on this day of September 8, 2026, by the City Council of the City of Cotati that September 15 - October 15, 2026 is Hispanic Heritage Month and the City Council encourages all citizens to recognize their significant and continuing contributions to our shared culture and continuing prosperity.

Approved:_____________________________
Mayor
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PROCLAMATION

OF THE CITY COUNCIL OF THE CITY OF COTATI
PROCLAIMING THE WEEK OF SEPTEMBER 21 - 27, 2026 AS "POLLUTION PREVENTION WEEK” AND SEPTEMBER 19 – 25, 2026 AS "CREEK WEEK" IN THE

RUSSIAN RIVER WATERSHED
WHEREAS, throughout the United States the week starting on the third Monday of September is recognized as National Pollution Prevention Week; and WHEREAS, throughout much of California, including the Russian River watershed, cities, counties and other stewardship organizations are recognizing the fourth week of September as Creek Week; and
WHEREAS, our pollution prevention practices are intrinsically linked to the health of our watershed lands and waterways; and
WHEREAS, the Russian River Watershed Association supports programs to reduce pollution, increase the environmental quality of our watershed, and provide our communities with the knowledge to be effective stewards of the Russian River watershed lands and waterways; and
WHEREAS, the nearly 1,500 square miles of lands, 150 creeks, and approximately 360,000 residents of the Russian River watershed are connected and mutually support each other; and
WHEREAS, the Russian River, along with its tributaries and associated features are important resources to the people of Sonoma and Mendocino Counties; and WHEREAS, pollution in the form of trash and debris, chemicals from industry and everyday living, and sediment from construction and many land uses and activities all have the potential to degrade the quality of life and the quality of resources within the Russian River watershed; and
WHEREAS, the Russian River Watershed Association strives to protect our lands and waterways through ongoing pollution prevention outreach which aims to raise awareness of the harmful effects of pollutants to our natural systems; and WHEREAS, during Pollution Prevention Week and Creek Week, creek, river and ocean clean-up campaigns will take place throughout Sonoma and Mendocino Counties, including our 15 of 280
annual creek cleanup and first invasive species removal events in the Laguna de Santa Rosa on September 20, 2025.

NOW, THEREFORE, BE IT PROCLAIMED on this day of September 8, 2026, by the City Council of the City of Cotati that September 21-27, 2026, is Pollution Prevention Week and September 19-25, 2026 is Creek Week in the Russian River watershed, and asks all members of our community to support efforts to protect and enrich our watershed health by participating in the many Pollution Prevention Week/Creek Week activities, including the City of Cotati creek clean up and invasive species removal on September 20, 2026 and to take active steps to reduce pollution and care for our environment throughout the year.

Approved:_____________________________
Mayor
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PROCLAMATION

OF THE CITY COUNCIL OF THE CITY OF COTATI

PROCLAIMING SEPTEMBER AS CHILDHOOD CANCER AWARENESS MONTH WHEREAS, childhood cancer is the leading cause of death by disease in children; and WHEREAS, 1 in 285 children in the United States will be diagnosed by their 20th birthday; and
WHEREAS, 46 children per day or 16,790 children per year are diagnosed with cancer in the U.S.; and
WHEREAS, the average age of diagnosis is 6 years old; and WHEREAS, 80% of childhood cancer patients are diagnosed late and with metastatic disease; and
WHEREAS, on average there’s been a 0.6 percent increase in incidence per year since the mid 1970’s resulting in an overall incidence increase of 24 percent over the last 40 years; and WHEREAS, two-thirds of childhood cancer patients will have chronic health conditions as a result of their treatment toxicity, with one quarter being classified as severe to life-threatening; and
WHEREAS, approximately one half of childhood cancer families rate the associated financial stress due to out-of-pocket expenses as considerable to severe; and WHEREAS, in the last 30 years only six new drugs have been approved by the FDA to specifically treat childhood cancer; and
WHEREAS, the National Cancer Institute recognizes the unique research needs of childhood cancer and the associated need for increased funding to carry this out; and WHEREAS, hundreds of non-profit organizations at the local and national level are helping children with cancer and their families cope through educational, emotional and financial support; and
WHEREAS, researchers and healthcare professionals work diligently dedicating their expertise to treat and cure children with cancer; and
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WHEREAS, too many children are affected by this deadly disease, and more must be done to raise awareness and find a cure.

NOW, THEREFORE, BE IT PROCLAIMED on this day of September 8, 2026, by the City Council of the City of Cotati that September is Childhood Cancer Awareness Month and encourages the community to support this cause that so deeply impacts families in every community across our country.

Approved:_____________________________
Mayor
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Cotati City Council
Agenda Staff Report
Item type: PRESENTATIONS
To: City Council
Subject: PRESENTATION BY THE COTATI LIBRARY

COMMISSIONER
Date: September 8, 2026
Written by: Damien O'Bid, City Manager
Recommendation
It is recommended that the City Council receive a presentation from the Cotati Library Commissioner. No action will be taken.
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Cotati City Council
Agenda Staff Report
Item type: CONSENT CALENDAR (ACTION)
To: City Council
Subject: CANCELLATION OF THE CITY COUNCIL MEETING ON
SEPTEMBER 22, 2026
Date: September 8, 2026
Written by: Kevin Patterson, City Clerk
Recommendation
It is recommended that the City Council adopt a motion to cancel the regular City Council meeting of September 22, 2026.

Background
The City Council generally meets on the 2nd and 4th Tuesday of each month. This year, the 4 th Tuesday of September falls on September 22nd. The Mayor and Vice Mayor will be traveling to attend the League of California Cities Annual Conference in Anaheim on September 22nd.

Additionally, Councilmember Ford is unavailable in person, so would only be able to attend remotely.

Analysis/Discussion
Given the unavailability of the Mayor and Vice Mayor to attend a meeting on September 22nd, as well as the inability for Councilmember Ford to attend in person, there would only be two City Councilmembers available and a minimum of three in person is required to have a quorum.

Therefore, it is recommended that the City Council cancel the Regular meeting of September 22nd. The next regularly scheduled City Council meeting is October 13, 2026.

Although not required by State open meeting laws, in accordance with the City Council Rules of Conduct, section I.A.3, “Any meeting of the Council may be canceled in advance by a majority vote of the Council.” This is intended to provide advanced notice for the public when there is a changed or canceled meeting date.
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Financial Considerations
There will be no direct financial impact from canceling a City Council meeting.

Environmental Issues
The action of canceling City Council meeting dates does not constitute a project as defined by the California Environmental Quality Act.
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Cotati City Council
Agenda Staff Report
Item type: CONSENT CALENDAR (ACTION)
To: City Council
Subject: SECOND READING OF AN ORDINANCE AMENDING
SECTION 17.42.170 ACCESSORY DWELLING UNITS/JUNIOR

ACCESSORY DWELLING UNITS OF THE COTATI

MUNICIPAL CODE TO CONFORM TO STATE LAW
Date: September 8, 2026
Written by: Autumn Buss, Associate Planner
Recommendation
It is recommended by the Community Development Department that the City Council adopt an ordinance amending Section 17.42.170 Accessory Dwelling Units/Junior Accessory Dwelling Units of the Cotati Municipal Code to conform with State law.

Background
On August 25, 2026, the City Council held a public hearing and introduced an ordinance amending Section 17.42.170 Accessory Dwelling Units/Junior Accessory Dwelling Units of the Cotati Municipal Code to conform with State law. The Council voted to approve the ordinance.

Financial Considerations
Beyond the staff time to draft the ordinance, there are no financial impacts to the City from adoption of the proposed ordinance.

Environmental Issues
In conformance with California Environmental Quality Act (CEQA), staff finds that the proposed amendments to the Cotati Municipal Code identified in the draft ordinance are related to and implement the goals, policies, and objectives of the 2015 General Plan and the 2023-31 Housing Element, and therefore finds that these proposed revisions conform to CEQA Guidelines Section 15183, which provides a streamlined review of the environmental impacts of the project by tiering from the program level analysis prepared for the Cotati General Plan and its 22 of 280
certified EIR and/or the Housing Element and its certified Mitigated Negative Declaration (MND), and other previously completed environmental analysis. Staff further finds that all adopted mitigating General Plan policies and mitigation measures identified in the 2015 General Plan EIR and/or 2023-2031 Housing Element MND address any potential environmental impacts of the proposed code changes. Finally, future project-specific environmental analysis of any permit or variance proposed under the amended Code will be required and will allow projectspecific impacts not previously identified or anticipated to be addressed. 23 of 280
ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COTATI AMENDING SECTION 17.42.170 ACCESSORY DWELLING UNITS/JUNIOR ACCESSORY

DWELLING UNITS OF THE COTATI MUNICIPAL CODE TO CONFORM TO

STATE LAW
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, 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 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 24 of 280 WHEREAS, on August 3, 2026, the Planning Commission of the City of Cotati held a duly noticed public hearing to review the proposed ordinance amending Section 17.42.170 Accessory Dwelling Units/Junior Accessory Dwelling Units of the Cotati Municipal Code to conform with State law. 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 August 25, 2026, the City Council of the City of Cotati held a duly noticed public hearing on the proposed ordinance amending Section 17.42.170 Accessory Dwelling Units/Junior Accessory Dwelling Units of the Cotati Municipal Code to conform with State law, 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 Section 17.42.170 Accessory Dwelling Units/Junior Accessory Dwelling Units of the Cotati Municipal Code to conform with State law..

SECTION 3: General Plan Consistency
The Council of the City of Cotati does hereby find that the amendments to Section 17.42.170 Accessory Dwelling Units/Junior Accessory Dwelling Units of the Cotati Municipal Code to conform with State law, 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 25 of 280
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 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 Section 17.42.170 Accessory Dwelling Units/Junior Accessory Dwelling Units of the Cotati Municipal Code to conform with State law 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 26 of 280
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 amended 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 through 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, 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.

The city shall not deny an application for a permit to create an ADU due to the 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.

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. Parking. One parking space shall be required for each ADU, except when an exemption is provided by state ADU law. No parking is required for JADUs.

3. Size and Lot Coverage. ADUs shall be subject to the following requirements related to size:
a. ADUs on single-family lots and attached ADUs on multifamily 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 interior livable space
Two or more
bedrooms
One thousand square feet of
interior livable space
b. ADUs on single-family lots and attached ADUs on multifamily 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. 27 of 280
c. In no case shall any detached ADU on a single-family lot or attached ADU on a multifamily lot exceed one thousand two hundred square feet of interior livable space. d. The interior livable space of an attached ADU shall not exceed fifty percent of the existing interior livable space of the primary residence. Notwithstanding the existing interior livable space of the primary residence, an ADU may contain at least eight hundred square feet of interior livable space.
e. The minimum allowable interior livable space 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. f. No ADU of more than eight hundred square feet of interior livable space shall be located within the front setback or street side setback of a lot. g. 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.

4. Occupancy, Rental, and Sale.
a. A certificate of occupancy for an ADU shall not be issued before that of the primary dwelling, except in a situation where all of the following requirements are met:
i.The primary dwelling was substantially damaged or destroyed by an event referenced in a state of emergency proclamation issued by the California Governor on or after February 1, 2025 that is applicable to Sonoma County;
ii. The ADU is not attached to the primary dwelling; and iii. The ADU has been issued construction permits and has passed all required inspections.
b. Owner-occupancy of an ADU, JADU, or another dwelling on the property is not required, with the exception that if a JADU shares sanitation facilities with the primary dwelling, the owner must reside in either the primary dwelling or the JADU. c. Any ADU/JADU may be rented separately from the primary dwelling, for a minimum rental term of thirty days.
d. An ADU may be sold separately from the primary dwelling, in accordance with state ADU law.

5. 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:
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Type of ADU Minimum Setbacks Maximum height*
Attached Four feet side and rear Twenty-five feet
Detached Four feet side and rear Eighteen feet
No setback shall be required for an 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 an 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)(5)(a). *Any ADU shall be allowed up to two additional feet in height to accommodate a roof pitch that is consistent with that of the primary dwelling. 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. 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.

SECTION 6: 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.

SECTION 7: Effective date.

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

SECTION 8: 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 29 of 280
meeting of the City Council of the City of Cotati held on September 9, 2026, by the following vote, to wit:

RESULT:

MOVER:

SECONDER:

AYES:

Approved:

Mayor
Attest:

Kevin Patterson, 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, City Clerk
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Cotati City Council
Agenda Staff Report
Item type: CONSENT CALENDAR (ACTION)
To: City Council
Subject: BIANNUAL CONFLICT OF INTEREST CODE REVIEW
Date: September 8, 2026
Written by: Kevin Patterson, Deputy City Clerk
Recommendation
It is recommended that the City Council adopt a resolution re-approving the City of Cotati’s Conflict of Interest Code.

Background
The Political Reform Act, California Government Code §81000-91014, declares in part that “Public officials, whether elected or appointed, should perform their duties in an impartial manner, free from bias caused by their own financial interests or the financial interests of persons who have supported them” §81001(b). To this end the Political Reform Act (“Act”) requires many state and local public officials and employees to disclose certain personal financial holdings so that they and members of the public are made aware of potential areas of conflict in relation to their official duties. This information is disclosed on the Fair Political Practices Commission’s (FPPC) Form 700 (sometimes informally referred to as “SEIs” “Form 700s” or “conflict of interest statements”).

The Act also requires every government agency to establish and subsequently conduct a biennial review of its conflict of interest code to revise it as necessary to adapt to changed circumstances.

At its regular meeting of September 24, 2024, the Council adopted Resolution No. 2024-58, rescinding previous code amendments and approving the biennial code amendment for 2024.

Analysis/Discussion
Accurate disclosure is essential to monitor whether officials have conflicts of interest and to help ensure public trust in government. The City’s present conflict of interest code has been reviewed and it has been determined that there are no updates needed for this cycle. There have been no additional employee job classifications added since the last update, and the City finds that the 31 of 280
current disclosure categories are appropriate for the named positions.

Financial Considerations
None.

Environmental Issues
The action of updating the City’s Conflict of Interest Code does not constitute a project as defined by California Environmental Quality Act Guidelines Section 15378; therefore, no further environmental review is required.
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RESOLUTION NO. (XX)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COTATI
RESCINDING RESOLUTION NO. 2024-58 AND READOPTING THE CONFLICT OF

INTEREST CODE
WHEREAS, pursuant to the Political Reform Act (Article III of Chapter 7 of the California Government Code, commencing with Section 8100), the City of Cotati is required to adopt and promulgate a Conflict of Interest Code (Government Code Section 87300 et seq.); and WHEREAS, the Political Reform Act requires all local government agencies to review their Conflict of Interest Codes biennially and to revise them as necessary to adapt to changed circumstances; and
WHEREAS, pursuant to Government Code Section 8302, the Conflict of Interest Code shall provide for specific enumeration of the provisions within the City, other than those specified in Government Code Section 87200, which involve the making or participation in the making of decisions which may foreseeably have material effect on any financial interest and for each such enumerated position, the specific types of investments, business positions, interests in real property and sources of income which are reportable; and WHEREAS, on September 24, 2024, the City Council adopted Resolution No. 2024-58, amending the Conflict of Interest Code; and
WHEREAS, the City has reviewed its Conflict of Interest Code and determined that no changes in job duties or responsibilities of its employees and City boards and agencies have occurred since the last time the Code was amended, which would require the Conflict of Interest Code to be updated; and
WHEREAS, the Fair Political Practices Commission has adopted a regulation, at 2 California Code of Regulations Section 18730, which contains a model conflict of interest code for the use of local agencies and which requires each local agency to incorporate by reference its own appendix which specifies the categories of positions within the agency that have disclosure responsibilities under the Act and the financial interests which must be disclosed by the position; and
WHEREAS, Title 2 of the California Code of Regulations Section 18730 may be amended from time to time by the Fair Political Practices Commission to conform to the Political Reform Act after public notices and hearings conducted by the Fair Political Practices Commission pursuant to the Administrative Procedure Act, Government Code Section 11370 et seq.; and
WHEREAS, the City Council intends that amendments made to Title 2 of the California Code of Regulations Section 18730 apply to the City’s Conflict of Interest Code as adopted by this resolution and replaces the Conflict of Interest Code of the City of Cotati previously in effect.
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NOW THEREFORE BE IT RESOLVED as follows:

Section 1. Resolution No. 2024-58 amending the Conflict of Interest Code of the City of Cotati is hereby rescinded.

Section 2. Section 18730 of Title 2 of the California Code of Regulations, and any amendments made thereto, is hereby adopted as the Conflict of Interest Code of the City of Cotati within the meaning of Government Code Section 87300 et seq.

Section 3. Any person who is required to file Statements of Economic Interest under this Code shall file in electronic format, if any, approved by the City.

Section 4. Appendices “A,” “B,” and “C” attached to this resolution as Exhibit A are incorporated into the Conflict of Interest Code of the City of Cotati as referenced therein by the term “Appendix.”
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 September 8, 2026, by the following vote, to wit:

Approved:___________________________
Mayor
Attest:______________________________
Kevin Patterson, City Clerk
Approved as to form:______________________________
City Attorney
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APPENDIX “A” - DEFINITIONS
"Public Official at any level of state or local government" means a member, officer, employee, or consultant of a state or local government agency. The term "public official" also includes individuals who perform the same or substantially the same duties as an individual holding an office or a position listed in Government Code Section 87200, including "other public officials who manage public investments" as that term is defined in 2 California Code of Regulations Section 18720.
“Designated Filers” means employees, members and consultants determined by the City of Cotati to be persons who “make or participate in the making of decisions which may foreseeably make a material effect on economic interests”, under 2 California Code of Regulations, Section 18730(b)(2) Designated Employees.
"Member" shall include, but not be limited to, salaried or unsalaried members of boards or commissions with decision making authority. A board or commission possesses decision making authority whenever:
(A) It may make a final governmental decision;
(B) It may compel a governmental decision, or it may prevent a governmental decision either by reason of an exclusive power to initiate the decision or by reason of a veto which may not be overridden; or
(C) It makes substantive recommendations which are, and over an extended period of time have been, regularly approved without significant amendment or modification by another public official or governmental agency.
"Consultant" means an individual who, pursuant to a contract with a state or local government agency:
(1) Makes a governmental decision whether to:
(A) Approve a rate, rule, or regulation;
(B) Adopt or enforce a law;
(C) Issue, deny, suspend, or revoke any permit, license, application, certificate, approval, order or similar authorization or entitlement;
(D) Authorize the agency to enter into, modify, or renew a contract provided it is the type of contract which requires agency approval;
(E) Grant agency approval to a contract which requires agency approval and in which the agency is a party or to the specifications for such a contract; (F) Grant agency approval to a plan, design, report, study, or similar item; (G) Adopt, or grant agency approval of, policies, standards, or guidelines for the agency or for any subdivision thereof; or
(2) Serves in a staff capacity with the agency and in that capacity performs the same or substantially all the same duties for the agency that would otherwise be performed by an individual holding a position specified in the agency's Conflict of Interest Code. 35 of 280
APPENDIX “B”- DESIGNATED FILERS
The persons occupying the positions in the table below are designated employees for the purpose of this Conflict of Interest Code and shall disclose their financial interests in accordance with the disclosure categories set forth herein, as more fully described in Appendix “C”.

NOTE: The following positions are NOT covered by the Conflict of Interest Code because they must file under Government Code Section 87200 and, therefore, are listed here for information purposes only: Mayor/Councilmember, Planning Commissioner, City Manager/Executive Director, City Attorney/Successor Agency Counsel, Director of Administrative Services, and candidates for any of these offices at any election. NOTE: 87200 filers are category 1, 2, 3 filers Agency/Department Position Category
City Clerk 1,2,3
Deputy City Clerk 1,2,3
Recreation Manager 1,2,3
City Manager/City Clerk
Senior Management Analyst 4
Consultants* See note below
City Engineer/Public Works 1,2,3
Director
Civil Engineer/Associate 1,2,3
Engineer
Maintenance Superintendent 3,4
Engineering/Public Works

Senior Accountant 1,2,3
Administrative Services
Accountant 4
Community/Economic Development/Code Community Development Director 1,2,3 Planner/Senior Planner 1,2,3
Building Official 1,2,3
Enforcement
Code Enforcement Officer 1,2,3
Chief 1,2,3
Lieutenant 1,2,3
Police
Sergeant 1,2,3
* Consultantsshall be included in the list of designated employees and shall disclose pursuantto the broadest disclosurecategoryinthe code subjectto the followinglimitation:

The City Manager or his/her designee may determine in writing that a particular consultant, although a “designated filer,” is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements described in this section. Such written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements. The City Manager or his/her designee's determination is a public record and shall be retained for public inspection in the same manner and location as this Conflict of Interest Code. (Gov. Code Section 81008. 36 of 280
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APPENDIX “C” – DISCLOSURE CATEGORIES
Designated filers must report their interests according to their assigned disclosure category(ies).

Disclosure Category 1
All Interests in real property located in whole or in part within the City of Cotati or within two (2) miles of the boundaries of the City of Cotati or within two miles of any land owned or used by the City.

Disclosure Category 2
All Investments and business positions in business entities, including parent corporations, subsidiary corporations or otherwise related business entities that provide services, supplies, materials, machinery, or equipment of the type utilized by the City of Cotati.

Disclosure Category 3
All Sources of income, including loans, gifts and travel payments from sources that provide services, supplies, materials, machinery or equipment of the type utilized by the City of Cotati.

Disclosure Category 4
All Investments and business position in business entities, and income, including loans, gifts and travel payments, from entities that provide services, supplies, materials, machinery, or equipment of the type utilized, purchased or leased by the designated position’s division or department.
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Cotati City Council
Agenda Staff Report
Item type: CONSENT CALENDAR (ACTION)
To: City Council
Subject: APPROVAL OF CONTRACTS EXCEEDING CITY MANAGER
CONTRACTING AUTHORITY – JOHNSTON SIGN COMPANY
INC. AND INDEPENDENT INVESTIGATIVE CONSULTANTS,
LLC
Date: September 8, 2026
Written by: Angela Courter, Director of Administrative Services Recommendation
It is recommended that the City Council adopt a resolution approving:

1. An agreement with Johnston Sign Company Inc. for fabrication of park rules and wayfinding signs in an amount not to exceed $36,000; and

2. A related $50,000 budget reclassification from the Cator Field Basketball Resurfacing Project; and

3. A continuing services agreement with Independent Investigative Consultants, LLC for Police Department investigative services in an amount not to exceed $40,000.

Background
The Administrative Services Department is bringing these contracts to the City Council because each exceeds the City Manager's $25,000 contracting authority under Cotati Municipal Code §

2.12.122.

The contracts are presented together because they are routine procurement and contract approval matters. Each contract is funded differently, as described below.

Analysis/Discussion
Johnston Sign Company Inc.

The City Council previously approved the park rules and general signage program that was used to design the new park rule signs. The signs are consistent with the City's Park Use and Special 39 of 280
Event Permit Policy adopted by the City Council on November 18, 2025. Johnston Sign Company Inc. of Petaluma has provided a proposal to fabricate the park rules signs for all City parks, as well as signs for special use facilities (basketball courts, tennis courts, etc.). The proposal totals $35,527.35, including sales tax. Staff recommends a contract amount not to exceed $36,000. Installation is not included in the proposal. Public Works staff are expected to install the signs using existing staff resources, so no additional contractor cost is anticipated for installation.

To fund the cost of these new signs, staff are recommending a reclassification of the $50,000 currently budgeted for the Cator Field Basketball Resurfacing Project to fund the signage project and related costs. The basketball resurfacing project was anticipated for next summer. Staff believe the existing court surface remains in good enough condition to postpone the project and re-evaluate at midyear. Depending on funding availability, the resurfacing project will be rescheduled at midyear or potentially incorporated into the City's next two-year budget cycle for construction early in Fiscal Year 2027/28.

Independent Investigative Consultants, LLC
The Police Department has previously used Independent Investigative Consultants, LLC (IICLLC) for investigative services and has found the firm to be a qualified resource. IIC-LLC provides administrative, personnel, internal, criminal, civil, and background investigative services to government agencies and law firms. Staff recommend establishing a continuing services agreement so the Police Department can use the firm when investigative services are needed.

The agreement will have a not-to-exceed amount of $40,000. The City will only pay for services that are requested and performed. The agreement will be funded using existing Police Department appropriations and does not require a budget amendment.

Financial Considerations
The Johnston Sign Company Inc. contract will not exceed $36,000 and will be funded through the proposed $50,000 reclassification from the Cator Field Basketball Resurfacing Project as provided in the attached proposed budget adjustment journal. The basketball resurfacing project will be postponed to midyear, or potentially into Fiscal Year 2027/28, depending on budget availability.

The IIC-LLC agreement will not exceed $40,000 and will be funded from existing Police Department appropriations. No additional appropriation or budget amendment are required.

Environmental Issues
Approving contracts for sign manufacturing and for independent investigation services can be 40 of 280
determined with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Therefore, 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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5 W. Gay Street
West Chester, PA 19380
T 484.266.0648
www.merjedesign.com

ENVIRONMENTS & EXPERIENCES
Cotati, CA
Park Rules
Wayfinding Signage

DESIGN INTENT DRAWINGS
July 13, 2026
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SPECIFICATIONS

REVISIONS

CLIENT / PROJECT

SHEET TITLE
DATE

SUBCONSULTANT
PROJECT NO.

DRAWN BY:

SHEET NO.

These drawings are meant for DESIGN INTENT ONLY
and are not for construction. Contractor shall verify
and be responsible for all dimensions and conditions
of the job. Contractor shall be familiar with the site
and conditions it presents. This office must be notified of any variations from the dimensions and conditions shown on this drawing. Shop drawings and details must be submitted to this office for approval
prior to proceeding with fabrication. All copy shall be proofread by client and legal requirements checked
by legal department.
07/13/26 MP
2 NOTES
Cotati, CA
Park Rules Sign
Wayfinding Signage

1. Fabricator to verify the mounting conditions and provide a detail drawing for each mounting situation, prior to fabrication.

Fabricator must obtain approval from the Designer or Client for placement prior to fabrication.

2. All vinyl and painted surfaces must receive a compatible anti-graffiti (and U/V) clear coat or vinyl over laminate.

3. Hardware: All exposed hardware shall be tamper proof fasteners.

4. Contractor must provide shop drawings for all structural components, signed and sealed by a licensed engineer in the State of the project.
5 W. Gay Street
West Chester, PA 19380
T 484.266.0648
www.merjedesign.com

ENVIRONMENTS & EXPERIENCES
All type shall be set exactly as specified. Substitutions will only be accepted, at the DESIGNER’S discretion, where they match the specified typeface in every detail. The FABRICATOR should be aware that different versions of typesetting equipment may not satisfactorily match specified typefaces and in such instances will not be acceptable.

TYPEFACE 4
TYPEFACE 5
Campton Light

ABCDEFGHIJKLMNOPQRSTUVWXYZ
abcdefghijklmnopqrstuvwxyz
1234567890 !@$%
Amongst the several mechanical Arts that have engaged my attention, there is no one which I have pursued with so much steadiness and pleasure, as that of Letter Founding.

Downtown Downtown Downtown
123A 123A 123A
acceptable NOT acceptable NOT acceptable
acceptable NOT acceptable NOT acceptable
Campton Bold

Downtown Downtown Downtown
123A 123A 123A
acceptable NOT acceptable NOT acceptable
acceptable NOT acceptable NOT acceptable
Campton Light

Downtown Downtown Downtown
123A 123A 123A
acceptable NOT acceptable NOT acceptable
acceptable NOT acceptable NOT acceptable
Campton Bold

Downtown Downtown Downtown
123A 123A 123A
acceptable NOT acceptable NOT acceptable
acceptable NOT acceptable NOT acceptable
Typography
Specifications
43 of 280

SPECIFICATIONS

REVISIONS

CLIENT / PROJECT

SHEET TITLE
DATE

SUBCONSULTANT
PROJECT NO.

DRAWN BY:

SHEET NO.

These drawings are meant for DESIGN INTENT ONLY
and are not for construction. Contractor shall verify
and be responsible for all dimensions and conditions
of the job. Contractor shall be familiar with the site
and conditions it presents. This office must be notified of any variations from the dimensions and conditions shown on this drawing. Shop drawings and details must be submitted to this office for approval
prior to proceeding with fabrication. All copy shall be proofread by client and legal requirements checked
by legal department.
07/13/26 MP
3 NOTES
Cotati, CA
Park Rules Sign
Wayfinding Signage
5 W. Gay Street
West Chester, PA 19380
T 484.266.0648
www.merjedesign.com

ENVIRONMENTS & EXPERIENCES
Typography
Specifications
Individual spacing of each letter needs to be evaluated. All copy shall be kerned so that each character is optically centered between the center of each of the surrounding characters.

Cotati Cotati
Cotati Cotati

SIGN TEXT STANDARDS

LETTER-SPACING
IMPORTANT: Individual spacing of each letter needs to be evaluated. See Examples Above.

Kern all Copy so that each character is optically centered between the center of each of the surrounding characters.

TYPEFACE 1 TYPEFACE 1
TYPEFACE 2 TYPEFACE 2
Inconsistencies in Letter Spacing Corrected Letter Spacing X EjklH baseline

COPY HEIGHT
When measuring copy height, measure only the height of the Capital letters to determine your overall copy height (shown in illustration below as “X”) Some of the other letters have an extended height beyond the average height of the letters.
baseline
baseline
EjklH
EjklH

LINE SPACING
X
When measuring line spacing, always measure from the baseline of the topmost text line to the baseline of the text line below (shown as “X”) 44 of 280

SPECIFICATIONS

REVISIONS

CLIENT / PROJECT

SHEET TITLE
DATE

SUBCONSULTANT
PROJECT NO.

DRAWN BY:

SHEET NO.

These drawings are meant for DESIGN INTENT ONLY
and are not for construction. Contractor shall verify
and be responsible for all dimensions and conditions
of the job. Contractor shall be familiar with the site
and conditions it presents. This office must be notified of any variations from the dimensions and conditions shown on this drawing. Shop drawings and details must be submitted to this office for approval
prior to proceeding with fabrication. All copy shall be proofread by client and legal requirements checked
by legal department.
07/13/26 MP
NOTES
Cotati, CA
Park Rules Sign
Wayfinding Signage
5 W. Gay Street
West Chester, PA 19380
T 484.266.0648
www.merjedesign.com

ENVIRONMENTS & EXPERIENCES
4 All artwork pictured on this page will be provided to the sign fabricator by the designer and/or client. This artwork must be used for all sign applications in this provided documentation. Do NOT substitute with any other artwork!
Project Artwork

LOGO ELEMENTS

PICTOGRAPH
Utilized in Pedestrian Signage
Group Events Amplified Music Dogs on Leash Clean up After Dogs Allowed Baseball Volleyball Tennis your dog
No Dogs No Smoking No Camping No Skateboarding No Motorized Bikes
No Littering No Fires No Alcohol
Basketball
45 of 280

SPECIFICATIONS

REVISIONS

CLIENT / PROJECT

SHEET TITLE
DATE

SUBCONSULTANT
PROJECT NO.

DRAWN BY:

SHEET NO.

These drawings are meant for DESIGN INTENT ONLY
and are not for construction. Contractor shall verify
and be responsible for all dimensions and conditions
of the job. Contractor shall be familiar with the site
and conditions it presents. This office must be notified of any variations from the dimensions and conditions shown on this drawing. Shop drawings and details must be submitted to this office for approval
prior to proceeding with fabrication. All copy shall be proofread by client and legal requirements checked
by legal department.
07/13/26 MP
NOTES
Cotati, CA
Park Rules Sign
Wayfinding Signage
5 W. Gay Street
West Chester, PA 19380
T 484.266.0648
www.merjedesign.com

ENVIRONMENTS & EXPERIENCES
5 The FABRICATOR must submit three (3) identical sets of each color specified for approval prior to any painting. Sample paint swatches must be produced on .080" aluminum sheet, approximately 3" x 6", including primer and free of defects. Sample material swatches should be the same approximate size.

Samples MUST have project and color specifications attached to back side.

The colors must look exactly the same every time they are used so that people associate them with the Cotati Wayfinding Program. All media, vinyl, paint, and inks must be produced so that the colors match as specified on this page.

Paint
and Materials
Color Chart
Matthews Paint MP 11477
To match Pantone® 202 C
To match Pantone® 2236 C
To match Pantone® 2332 C
To match Pantone® 2179 C
To match Pantone® 2176 C
Surface applied, exterior sign paint and protective top coat:

MATTHEWS Acrylic Polyurethane with Clear Coat Satin finish.

Surface applied, exterior sign paint and protective top coat:

MATTHEWS Acrylic Polyurethane with Clear Coat Satin finish.

Surface applied, exterior sign paint and protective top coat:

MATTHEWS Acrylic Polyurethane with Clear Coat Satin finish.

Surface applied, exterior sign paint and protective top coat:

MATTHEWS Acrylic Polyurethane with Clear Coat Satin finish.

Surface applied, exterior sign paint and protective top coat:

MATTHEWS Acrylic Polyurethane with Clear Coat Satin finish.

Surface applied, exterior sign paint and protective top coat:

MATTHEWS Acrylic Polyurethane with Clear Coat Satin finish.

P PAINTS NAME SPECIFICATION PROCESS
P1
P2
P3
P4
P5
P6
White
Red
Gray
Blue
Light Blue
To match Pantone® 2306 C Surface applied, exterior sign paint and protective top coat:

MATTHEWS Acrylic Polyurethane with Clear Coat Satin finish. P7 Green To match Pantone® 2302 C
To match Pantone® 7534 C
Surface applied, exterior sign paint and protective top coat:

MATTHEWS Acrylic Polyurethane with Clear Coat Satin finish.

Surface applied, exterior sign paint and protective top coat:

MATTHEWS Acrylic Polyurethane with Clear Coat Satin finish.

P8
P9
Light Green
Tan
P9 Reflective Blue To match Pantone® 2179 C Reflective Paint Light Gray
Red Cedar, Treated To match existing signage

M MATERIALS NAME SPECIFICATION PROCESS
M1 Wood Post
46 of 280
SPECIFICATIONS SIGN TYPE: FUNCTION:

REVISIONS

CLIENT / PROJECT

SHEET TITLE
DATE

SUBCONSULTANT
PROJECT NO.

DRAWN BY:

SHEET NO.

These drawings are meant for DESIGN INTENT ONLY
and are not for construction. Contractor shall verify
and be responsible for all dimensions and conditions
of the job. Contractor shall be familiar with the site
and conditions it presents. This office must be notified of any variations from the dimensions and conditions shown on this drawing. Shop drawings and details must be submitted to this office for approval
prior to proceeding with fabrication. All copy shall be proofread by client and legal requirements checked
by legal department.
07/13/26 MP
6 NOTES
Cotati, CA
Park Rules Sign
Wayfinding Signage

1. Fabricator to verify the mounting conditions and provide a detail drawing for each mounting situation, prior to fabrication.

Fabricator must obtain approval from the Designer or Client for placement prior to fabrication.

2. All vinyl and painted surfaces must receive a compatible anti-graffiti (and U/V) clear coat or vinyl over laminate.

3. Hardware: All exposed hardware shall be tamper proof fasteners.

ENVIRONMENTS & EXPERIENCES
Sign Type INTERP.1
Interpretive Panel
RULES.1.1 Park Rules
Front View: RULES.1.1
SCALE: 3/4" = 1'-0" 1 Side View:RULES.1.1SCALE: 3/4" = 1'-0" 2 Back View: RULES.1.1SCALE: 3/4" = 1'-0" 3 M1 6
Top View: RULES.1.1
SCALE: 3/4" = 1'-0" 4 Alernative Mounting: RULES.1.1
SCALE: NTS 5
*Note: Please see page F.5 for more details.

P3 8 P5 7
F.1
2 P5 7
P9 7
P5 6
P5 7
P1 7
4"
6'-6 1/4"
3'-0"
3'-2 1/4"
2'-0"
3'-1"
1 2 3

FENCE MOUNT WALL MOUNT BRICK WALL MOUNT

6. 4x4 WOOD POST
MATERIAL: 4" x 4"nom. Red Cedar Post. Actual
(3.5"x3.5")
SURFACE PROCESS: Smooth, painted detail at
cap.

FOOTER: Direct Bury

7. 1/4" SIGN PANEL
MATERIAL: 1/4" thick Aluminum sheet
FABRICATION PROCESS: Router Cut
EDGES: Smooth
COLOR: custom, as noted
SURFACE PROCESS: Paint all exposed surfaces
with Matthews Acrylic Polyurethane, with clear
coat satin finish.

GRAPHIC BACKGROUND AND COPY PROCESS:
3M custom inks print direct to Scotchcal ®
#3690 with 3M approved UV/Graffiti Vinyl
Overlaminate.

FASTENER: Press-roll per 3M requirements.

Mechanically fastened to mounting sleeve,
tamper-resistant hardware.

8. 4" MOUNTING SLEEVE
MATERIAL: Aluminum U-channel (.1875" wall)
FABRICATION PROCESS: Extruded
EDGES: Square, Smooth
COLOR: custom, as noted
SURFACE PROCESS: Paint all exposed surfaces
with Matthews Acrylic Polyurethane, with clear
coat satin finish.

FASTENER: Mechanically fastened to post,
Tamper-resistant hardware.
47 of 280

REVISIONS

CLIENT / PROJECT

SHEET TITLE
DATE
PROJECT NO.

DRAWN BY:

SHEET NO.

These drawings are meant for DESIGN
INTENT ONLY and are not for construction.

Contractor shall verify and be responsible for all
dimensions and conditions of the job. Contractor
shall be familiar with the site and conditions
it presents. This office must be notified of any
variations from the dimensions and conditions
shown on this drawing. Shop drawings and
details must be submitted to this office for
approval prior to proceeding with fabrication.

All copy shall be proofread by client and legal
requirements checked by legal department.

MP
07/13
7 SPECIFICATIONS
Cotati, CA
Park Rules Signage
Wayfinding Signage
5 W. Gay Street
West Chester, PA 19380
T 484.266.0648
www.merjedesign.com

ENVIRONMENTS & EXPERIENCES
NOTES:

1. Fabricator to verify the mounting conditions and provide a detail drawing for each mounting situation, prior to fabrication. Fabricator must obtain approval from the Designer or Client for placement prior to fabrication.

2. All vinyl and painted surfaces must receive a compatible anti-graffiti (and U/V) clear coat or vinyl over laminate.

3. Hardware: All exposed hardware shall be tamper proof fasteners.

4. Contractor must provide shop drawings for all structural components, signed and sealed by a licensed engineer in the State of the project.

Graphic Layouts
SIGN PANEL LAYOUTS:

NOTES:
• Panel layouts for ALL sign locations shall be included in shop drawings for review by designer and client.

Sign Types:

RULES.1.1
Graphic Layout: RULES.1.1
SCALE: 3" = 1'-0" 1

PARK RULES

HARD FENCED COURT
PARK HOURS: 6AM-9PM DAILY
Fire prohibited
CMC 9.36.070
Litter prohibited
CMC 9.36.030.E
Skates,
skateboards
prohibited
Consumption of
alcohol prohibited
CMC 9.36.100
Dogs prohibited
CMC 7.24.085
Camping prohibited
CMC 9.36.060
Motorized cycles,
scooters prohibited
CMC 9.36.030.C
Smoking prohibited
CMC 9.31.050

REVISIONS

CLIENT / PROJECT

SHEET TITLE
DATE
PROJECT NO.

DRAWN BY:

SHEET NO.

These drawings are meant for DESIGN
INTENT ONLY and are not for construction.

All copy shall be proofread by client and legal
requirements checked by legal department.

MP
07/13
8 SPECIFICATIONS
Cotati, CA
Park Rules Signage
Wayfinding Signage
5 W. Gay Street
West Chester, PA 19380
T 484.266.0648
www.merjedesign.com

ENVIRONMENTS & EXPERIENCES
NOTES:

2. All vinyl and painted surfaces must receive a compatible anti-graffiti (and U/V) clear coat or vinyl over laminate.

3. Hardware: All exposed hardware shall be tamper proof fasteners.

4. Contractor must provide shop drawings for all structural components, signed and sealed by a licensed engineer in the State of the project.

Graphic Layouts
SIGN PANEL LAYOUTS:

NOTES:
• Panel layouts for ALL sign locations shall be included in shop drawings for review by designer and client.

Sign Types:

RULES.1.1
Graphic Layout: RULES.1.1
SCALE: 3" = 1'-0" 1
PARK HOURS: 6AM-9PM DAILY
Dog allowed off leash
in signed dog park
CMC 7.24.080

DOG PARK RULES
Fire prohibited
CMC 9.36.070
Litter prohibited
CMC 9.36.030.E
Skates,
skateboards
prohibited
Consumption of
alcohol prohibited
CMC 9.36.100
Camping prohibited
CMC 9.36.060
Motorized cycles,
scooters prohibited
CMC 9.36.030.C
Smoking prohibited
CMC 9.31.050

DOES THIS FACILITY
NEED ATTENTION?
Scan the QR code or visit
cotati.311service.com to submit
a service request
CMC: Cotati Municipal Code | For non-emergency assistance please call 707-792-4611 Permit required
for group events
CMC 4.04.020
Permit required
for amplified sound
CMC 9.36.110
Help keep this area clean
by removing your pet’s waste
CMC 7.24.060
PARK HOURS: 6AM-9PM DAILY
Motorized cycles,
scooters prohibited
CMC 9.36.030.C

PARK RULES

SPECIAL SPORT FACILITIES
Litter prohibited
CMC 9.36.030.E
Dogs
prohibited
Fire prohibited
CMC 9.36.070
Skates,
skateboards
prohibited
Consumption of
alcohol prohibited
CMC 9.36.100
Camping prohibited
CMC 9.36.060
Smoking prohibited
CMC 9.31.050

REVISIONS

CLIENT / PROJECT

SHEET TITLE
DATE
PROJECT NO.

DRAWN BY:

SHEET NO.

These drawings are meant for DESIGN
INTENT ONLY and are not for construction.

All copy shall be proofread by client and legal
requirements checked by legal department.

MP
07/13
9 SPECIFICATIONS
Cotati, CA
Park Rules Signage
Wayfinding Signage
5 W. Gay Street
West Chester, PA 19380
T 484.266.0648
www.merjedesign.com

ENVIRONMENTS & EXPERIENCES
NOTES:

2. All vinyl and painted surfaces must receive a compatible anti-graffiti (and U/V) clear coat or vinyl over laminate.

3. Hardware: All exposed hardware shall be tamper proof fasteners.

4. Contractor must provide shop drawings for all structural components, signed and sealed by a licensed engineer in the State of the project.

Graphic Layouts
SIGN PANEL LAYOUTS:

NOTES:
• Panel layouts for ALL sign locations shall be included in shop drawings for review by designer and client.

Sign Types:

RULES.1.1
Graphic Layout: RULES.1.1
SCALE: 3" = 1'-0" 1

DOES THIS FACILITY
NEED ATTENTION?
Scan the QR code or visit cotati.311service.com
to submit a service request
50 of 280
Construction Details
51 of 280

REVISIONS

CLIENT / PROJECT

SHEET TITLE
DATE
PROJECT NO.

DRAWN BY:

SHEET NO.

These drawings are meant for DESIGN
INTENT ONLY and are not for construction.

All copy shall be proofread by client and legal
requirements checked by legal department.

MP
07/13
F.1

SPECIFICATIONS
Cotati, CA
Park Rules Signage
Wayfinding Signage
5 W. Gay Street
West Chester, PA 19380
T 484.266.0648
www.merjedesign.com

ENVIRONMENTS & EXPERIENCES
NOTES:

2. All vinyl and painted surfaces must receive a compatible anti-graffiti (and U/V) clear coat or vinyl over laminate.

3. Hardware: All exposed hardware shall be tamper proof fasteners.

4. Contractor must provide shop drawings for all structural components, signed and sealed by a licensed engineer in the State of the project.

Construction Details
Sign Type:

RULES.1.1
Section Details
Section View: RULES.1.1
SCALE: 3" = 1'-0" 1
3/16" thk Aluminum U-Channel Bracket,
Mechanically fastened to sign post
4 x 4 Wood Post (3.5”x3.5”)
1/4” Aluminum Sign Panel
Section View: RULES.1.1
SCALE: 3" = 1'-0" 2
3/16" thk Aluminum U-Channel Bracket,
Mechanically fastened to sign post
4 x 4 Wood Post (3.5”x3.5”)
1/4” Aluminum Sign Panel
52 of 280

REVISIONS

CLIENT / PROJECT

SHEET TITLE
DATE
PROJECT NO.

DRAWN BY:

SHEET NO.

These drawings are meant for DESIGN
INTENT ONLY and are not for construction.

All copy shall be proofread by client and legal
requirements checked by legal department.

MP
07/13
F.2

SPECIFICATIONS
Cotati, CA
Park Rules Signage
Wayfinding Signage
5 W. Gay Street
West Chester, PA 19380
T 484.266.0648
www.merjedesign.com

ENVIRONMENTS & EXPERIENCES
NOTES:

2. All vinyl and painted surfaces must receive a compatible anti-graffiti (and U/V) clear coat or vinyl over laminate.

3. Hardware: All exposed hardware shall be tamper proof fasteners.

4. Contractor must provide shop drawings for all structural components, signed and sealed by a licensed engineer in the State of the project.

Section Details
Construction Details
Sign Type:

RULES.1.1
Section View: BOLLARD.1, TDIR.1
SCALE: 3" = 1'-0" 1 Section View: TRAIL.ID.1SCALE: 3" = 1'-0" 2 Section View: Post Cap 8"
SCALE: 3" = 1'-0" 3 Section View: Post Cap 6"SCALE: 3" = 1'-0" 4 Section View: Post Cap 4"SCALE: 3" = 1'-0" 5 1/4” Aluminum Sign Panel
7 1/2" 3 1/2"
2 1/4"
1"
1 1/4"
1"
1 3/4"
1/2"
1"
1/2"
6 1/2" 3" 4 1/2"
5 1/2"
2"
3/4"
1"
3/4"
53 of 280

REVISIONS

CLIENT / PROJECT

SHEET TITLE
DATE
PROJECT NO.

DRAWN BY:

SHEET NO.

These drawings are meant for DESIGN
INTENT ONLY and are not for construction.

All copy shall be proofread by client and legal
requirements checked by legal department.

MP
07/13
F.3

SPECIFICATIONS
Cotati, CA
Park Rules Signage
Wayfinding Signage
5 W. Gay Street
West Chester, PA 19380
T 484.266.0648
www.merjedesign.com

ENVIRONMENTS & EXPERIENCES
NOTES:

2. All vinyl and painted surfaces must receive a compatible anti-graffiti (and U/V) clear coat or vinyl over laminate.

3. Hardware: All exposed hardware shall be tamper proof fasteners.

4. Contractor must provide shop drawings for all structural components, signed and sealed by a licensed engineer in the State of the project.

Direct Bury Footer
The FABRICATOR shall be familiar with all site conditions and shall be responsible for all underground utility checks.

The FABRICATOR shall be familiar with all basement/vault locations by obtaining plans from the local municipality Department of Public Works.

Where a basement/vault interferes with a proposed
location, the sign shall be relocated to a location deemed appropriate by the municipalities Department of Public
Works
Where relocation is not an option the FABRICATOR will
develop the appropriate mounting solution. The solution shall meet all engineering criteria as established by the standard footings (i.e. windloads).

FINAL DESIGNS AND SHOP DRAWINGS SHALL

BE SUPPLIED BY THE FABRICATOR FOR EACH

OF THE BREAK-AWAY POLES IDENTIFIED AND

A CALIFORNIA REGISTERED PROFESSIONAL

ENGINEER IS REQUIRED TO SIGN AND SEAL THE
SUBMITTAL OF SHOP DRAWINGS.

NOTE:

NOTE:
1) SOIL IS AVERAGE WITH MAXIMUM ALLOWABLE
SOIL PRESSURE OF 3,000 POUNDS PER SQUARE
FOOT. SOIL UNIT WEIGHT OF 125 PCF AND
FRICTION ANGLE OF 30 DEGREES (ASSUMED).
2) CONCRETE STRENGTH AT 28 DAYS F’C=4,000 PSI
REINFORCEMENT SHALL BE ASTM 36 FY=60,000
PSI
3) FOLLOW THE MOST RECENT CALTRANS

DESIGN STANDARDS FOR MATERIAL AND

CONSTRUCTION INFORMATION FOR THE

SIGN POST BASES AND FOUNDATIONS NOT

OTHERWISE SPECIFIED IN THESE CONTRACT
DRAWINGS.
4) FOR SIGN POST SIZES REFER TO THE DESIGN
Wood Post INTENT DRAWING SHEETS.
(Size varies by sign type)
Top Soil / Seeding
Concrete / Granular Backll
3'-0" Min
3"
As Required
Wood Post
(Size varies by sign type)
Concrete / Granular Backll
3'-0" Min
As Required
Section View: Foundation @ Pavers
SCALE: NTS 3 Section View: Foundation @ ConcreteSCALE: NTS 2 Section View: Foundation @ TurfSCALE: NTS 1 Existing Concrete Slab
Aluminum Post
(Size varies by sign type)
PARK.2 & PARK.2a
Drill two 3 inch holes perpendicular
to roadway for breakaway
Weep Holes as Required
Concrete / Granular Backll
3'-0" Min
As Required
Existing Pavers
PARK.1 = 2-0 diameter x 3-0 deep per post
PARK.2 = 2-2 diameter x 3-0 deep
PARK.2a = 3-0 diameter x 3-0 deep
PDIR.1 = 1-9 diameter x 3-0 deep
TRAIL.ID.1 = 2-0 diameter x 3-0 deep (Post Only)
TRAIL.ID.2 = 1-9 diameter x 3-0 deep
TDIR.1= 1-0 diameter x 3-0 deep
BOLLARD.1= 1-0 diameter x 3-0 deep
54 of 280

REVISIONS

CLIENT / PROJECT

SHEET TITLE
DATE
PROJECT NO.

DRAWN BY:

SHEET NO.

These drawings are meant for DESIGN
INTENT ONLY and are not for construction.

All copy shall be proofread by client and legal
requirements checked by legal department.

MP
07/13
F.4

SPECIFICATIONS
Cotati, CA
Park Rules Signage
Wayfinding Signage
5 W. Gay Street
West Chester, PA 19380
T 484.266.0648
www.merjedesign.com

ENVIRONMENTS & EXPERIENCES
NOTES:

2. All vinyl and painted surfaces must receive a compatible anti-graffiti (and U/V) clear coat or vinyl over laminate.

3. Hardware: All exposed hardware shall be tamper proof fasteners.

4. Contractor must provide shop drawings for all structural components, signed and sealed by a licensed engineer in the State of the project.

Sidewalk Footer
Placement Details
Sidewalk Footer Placement Details
The FABRICATOR shall be familiar with all site conditions and shall be responsible for all underground utility checks.

The FABRICATOR shall be familiar with all basement/vault locations by obtaining plans from the local municipality Department of Public Works.

FINAL DESIGNS AND SHOP DRAWINGS SHALL

BE SUPPLIED BY THE FABRICATOR FOR EACH

OF THE BREAK-AWAY POLES IDENTIFIED AND

A CALIFORNIA REGISTERED PROFESSIONAL

ENGINEER IS REQUIRED TO SIGN AND SEAL THE
SUBMITTAL OF SHOP DRAWINGS.

NOTE:
1) SOIL IS AVERAGE WITH MAXIMUM ALLOWABLE
SOIL PRESSURE OF 3,000 POUNDS PER SQUARE
FOOT. SOIL UNIT WEIGHT OF 125 PCF AND
FRICTION ANGLE OF 30 DEGREES (ASSUMED).
2) CONCRETE STRENGTH AT 28 DAYS F’C=4,000 PSI REINFORCEMENT SHALL BE ASTM 36 FY=60,000 PSI
3) FOLLOW THE LATEST CALTRANS DESIGN

STANDARDS FOR MATERIAL AND

CONSTRUCTION INFORMATION FOR THE

SIGN POST BASES AND FOUNDATIONS NOT

OTHERWISE SPECIFIED IN THESE CONTRACT
DRAWINGS.
4) FOR SIGN POST SIZES REFER TO THE DESIGN
INTENT DRAWING SHEETS.

Plan: Footer Placement
SCALE: NTS 1
Plan View: Footer
SCALE: 1" = 1' - 0" 2
NOTE: When locating a footer within a single pavement block adjacent to at least 2 expansion joints, the entire block of pavement shall be removed and replaced with the same materials and finish of adjacent sidewalk areas.

Plan: Specialty Pavers Footer Placement
SCALE: NTS 3
Unacceptable Footer Detail
Unacceptable Footer Detail
Unacceptable Footer Detail
NOTE: The pattern of bricks need to be removed, stored and replaced in the order they were removed. Marking the Specialty Pavers sidewalk with spray paint will NOT be allowed.

Acceptable Footer Detail
Acceptable Footer Detail
Acceptable Footer Detail
Varies
Varies
Footer
Class B
Concrete Footing
Reference State DOT
Req. Standards
Sign Post
Existing sidewalk block
to be removed and replaced
Footer
Sign Post
Existing Specialty Pavers
to be removed, saved and replaced.

CL
CL
Sign Post
55 of 280

REVISIONS

CLIENT / PROJECT

SHEET TITLE
DATE
PROJECT NO.

DRAWN BY:

SHEET NO.

These drawings are meant for DESIGN
INTENT ONLY and are not for construction.

All copy shall be proofread by client and legal
requirements checked by legal department.

MP
07/13
F.5

SPECIFICATIONS
Cotati, CA
Park Rules Signage
Wayfinding Signage
5 W. Gay Street
West Chester, PA 19380
T 484.266.0648
www.merjedesign.com

ENVIRONMENTS & EXPERIENCES
NOTES:

2. All vinyl and painted surfaces must receive a compatible anti-graffiti (and U/V) clear coat or vinyl over laminate.

3. Hardware: All exposed hardware shall be tamper proof fasteners.

4. Contractor must provide shop drawings for all structural components, signed and sealed by a licensed engineer in the State of the project.

Alternate Panel
Mounting Methods
Alternate Panel Mounting Methods

A DETAIL - REGULATORY PANEL SIGNS - MOUNTING
Scale: N.T.S.

NOTES AND SPECIFICATIONS

1. Fence Mount: 1/4" thick painted aluminum
panel with printed vinyl graphics and
clearcoat; Panel mounts to fence with (4)
1/4" x 2" studs welded to back of panel and
mechanically fastened to 1/4" thick x 1"
high painted aluminum backup strip behind
panel.

2. Wall Mount: 1/4" thick painted aluminum
panel with printed vinyl graphics and
clearcoat flush mounted to existing wall
surface with VHB tape and silicone.

3. Brick Wall Mount: 1/4" thick painted
aluminum panel with printed vinyl graphics
and clearcoat; Panel mounts flush to brick
wall with (4) 1/4" x 2" studs welded to back
of panel.
1 1
2 3

FENCE MOUNT WALL MOUNT BRICK WALL MOUNT

FENCE MOUNT - BACK VIEW
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REVISIONS

CLIENT / PROJECT

SHEET TITLE
DATE
PROJECT NO.

DRAWN BY:

SHEET NO.

These drawings are meant for DESIGN
INTENT ONLY and are not for construction.

All copy shall be proofread by client and legal
requirements checked by legal department.

MP
07/13
F.6

SPECIFICATIONS
Cotati, CA
Park Rules Signage
Wayfinding Signage
5 W. Gay Street
West Chester, PA 19380
T 484.266.0648
www.merjedesign.com

ENVIRONMENTS & EXPERIENCES
NOTES:

2. All vinyl and painted surfaces must receive a compatible anti-graffiti (and U/V) clear coat or vinyl over laminate.

3. Hardware: All exposed hardware shall be tamper proof fasteners.

4. Contractor must provide shop drawings for all structural components, signed and sealed by a licensed engineer in the State of the project.

Screw Through Vinyl
Screw Through Vinyl SCREW THROUGH FACE / VINYL GUIDANCE The reective vinyl manufacturer recommends using at least 1, (preferably 2), nylon
washers between the reective vinyl surface and the mounting bolt head. (see Fig. 1). The 2 nylon washers should slip on each other as opposed to slipping on the surface of the sign, preventing it from cutting

into the laminate.

Installing the hardware doesnt need to be aggressively tight and shall follow structural engineering requirements.

Caution: If the contractor / installer over-torques or provides too much force when installing the fastener, the
laminate will not hold up to that
treatment (see Fig. 2 / Fig. 3).

The vinyl manufacturer has stated, in regards to the warranty, it does not cover this type of damage (cracking, bubbling, peeling) caused by improper installation. The compromised laminate can allow moisture to penetrate and prematurely degrade the
print.

The extent of this will depend on the
type of installation damage that occurred.

There is no way to repair this
damage after installation.

Additional Consideration: Punching a hole in the vinyl (see Fig. 4), may provide less vinyl for the washer/bolt to torque on, therefore reducing the possibility of damage.

Contractors Responsibility: The sign contractor shall always con rm the
proper methods, sequencing and materials to be used for the installation with the vinyl manufacturer, to avoid voiding any warranties associated with the vinyl products. The sign contractor shall be responsible for replacing all vinyl sheeting damaged do to not following the manufacturers instructions.

Fig. 1 Fig. 2
Fig. 3 Fig. 4
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RESOLUTION NO. (XX)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COTATI
APPROVING AN AGREEMENT WITH JOHNSTON SIGN COMPANY INC.,

APPROVING A RELATED BUDGET RECLASSIFICATION, AND APPROVING A

CONTINUING SERVICES AGREEMENT WITH INDEPENDENT INVESTIGATIVE

CONSULTANTS, LLC
WHEREAS, Cotati Municipal Code § 2.12.122 authorizes the City Manager to approve and sign contracts for special and professional services in amounts not exceeding $25,000; and WHEREAS, the contracts presented to the City Council exceed the City Manager's contracting authority and therefore require City Council approval; and WHEREAS, Johnston Sign Company Inc. has provided a proposal to fabricate park rules and wayfinding signs for a total estimated cost of $35,527.35 and the City desires to authorize a contract with Johnston Sign Company Inc. in an amount not to exceed $36,000; and WHEREAS, staff recommends reclassifying $50,000 currently budgeted for the Cator Field Basketball Resurfacing Project to fund the park signage project and related costs as basketball resurfacing project can be postponed to midyear or into Fiscal Year 2027/28, depending on budget availability; and
WHEREAS, Independent Investigative Consultants, LLC has previously provided investigative services to the City and is qualified to provide continuing investigative services to the Police Department; and
WHEREAS, the City desires to enter into a continuing services agreement with Independent Investigative Consultants, LLC in an amount not to exceed $40,000 using funding from existing Police Department appropriations.

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

1. An agreement with Johnston Sign Company Inc. for fabrication of park rules and wayfinding signs in an amount not to exceed $36,000.

2. The budget reclassification of $50,000 from the Cator Field Basketball Resurfacing Project to fund the park signage project and related costs.

3. A continuing services contract agreement with Independent Investigative Consultants, LLC for Police Department investigative services in an amount not to exceed $40,000.
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4. The City Manager to execute said agreements and authorize the City Manager and delegate City staff to administer the agreements consistent with their approved scopes, available funding, and the respective not-to-exceed amounts.

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 September 8, 2026, by the following vote, to wit:

Approved:___________________________
Mayor
Attest:______________________________
Kevin Patterson, City Clerk
Approved as to form:______________________________
City Attorney
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9/1/2026 7:16:00 PM Page 1 of 3
Budget Adjustment Register
Cotati, CA Adjustment Detail
Packet: GLPKT16073 - Reclassify $36,000 From Cator Basketball to Park S
Adjustment Number Budget Code Description Adjustment Date BA0000106 Adopted Budget for FY 2026… Reclass $36,000 Cator Resurfacing to Park Signage 9/8/2026 Reclasify $36,000 of funds from the Cator Basketball Court Resurfacing project, which had an adopted budget of $50,000, to fund the Park Sign Fabrication.

Summary Description:

Account Number Account Name Adjustment Description Before Adjustment After 101-22-67000-FND225 OPER TRANS IN-FUND 225 Trans. In from Fund 225 - Sign Fabrication Proj… 0.00 -26,000.00 -26,000.00 September: -26,000.00
101-22-80570-000000 R&M-GENERAL $36,000 Increase for Park Signage Fabrication 10,000.00 36,000.00 46,000.00 September: 36,000.00
101-22-81000-FND605 OTHER TRANSFER OUT-CAPITAL… Remove Transfer Out For Cator Court Resurfac… 10,000.00 -10,000.00 0.00 September: -10,000.00
225-22-81000-000000 OPER TRANSF OUT-PARKS MEA… Reclass $26,000 From Funding Cator Resurfaci… 40,000.00 -26,000.00 14,000.00 September: -26,000.00
225-22-81000-FND101 OTHER TRANSFER OUT-GENER… Reclass $26,000 To Funding Park Sign Fabricati… 0.00 26,000.00 26,000.00 September: 26,000.00
605-22-67000-BSKTBL OPER TRANS IN-CATOR BASKET… Reclass $36,000 Cator Resurfacing to Park Sign… -50,000.00 36,000.00 -14,000.00 September: 36,000.00
605-22-91300-BSKTBL Cator Basketball Ct. Resurfacing Reclass $36,000 Cator Resurfacing to Park Sign… 50,000.00 -36,000.00 14,000.00 September: -36,000.00
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Budget Adjustment Register Packet: GLPKT16073 - Reclassify $36,000 From Cator Basketball to Park S 9/1/2026 7:16:00 PM Page 2 of 3
Budget Budget Description Account Account Description After Budget Code Summary
Before Adjustment
2026-2027 Adopted Budget for FY 20… 101-22-67000-FND225 OPER TRANS IN-FUND 225 0.00 -26,000.00 -26,000.00 101-22-80570-000000 R&M-GENERAL 10,000.00 36,000.00 46,000.00 101-22-81000-FND605 OTHER TRANSFER OUT-CAPITAL P… 10,000.00 -10,000.00 0.00 225-22-81000-000000 OPER TRANSF OUT-PARKS MEASR… 40,000.00 -26,000.00 14,000.00 225-22-81000-FND101 OTHER TRANSFER OUT-GENERAL … 0.00 26,000.00 26,000.00 605-22-67000-BSKTBL OPER TRANS IN-CATOR BASKETBA… -50,000.00 36,000.00 -14,000.00 605-22-91300-BSKTBL Cator Basketball Ct. Resurfacing 50,000.00 -36,000.00 14,000.00 2026-2027 Total: 60,000.00 0.00 60,000.00
Grand Total: 60,000.00 0.00 60,000.00
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Budget Adjustment Register Packet: GLPKT16073 - Reclassify $36,000 From Cator Basketball to Park S 9/1/2026 7:16:00 PM Page 3 of 3
Fund After
Fund Summary
Before Adjustment
Budget Code:2026-2027 - Adopted Budget for FY 2026/27 Fiscal: 2026-2027 101 20,000.00 0.00 20,000.00
225 40,000.00 0.00 40,000.00
605 0.00 0.00 0.00
Budget Code 2026-2027 Total: 60,000.00 0.00 60,000.00
Grand Total: 60,000.00 0.00 60,000.00
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Cotati City Council
Agenda Staff Report
Item type: CONSENT CALENDAR (ACTION)
To: City Council
Subject: CONSIDERATION AND ADOPTION OF RESOLUTION
APPROVING THE CITY OF COTATI’S 2026 COTATI

CANDYLAND EVENT
Date: September 8, 2026
Written by: Ashley Wilson, Recreation Manager
Recommendation
It is recommended that the City Council adopt a resolution approving the City of Cotati’s 2026 Cotati Candyland Event.

Background
Cotati Candyland is an event that the City of Cotati sponsors each year, bringing the community to La Plaza Park and throughout the City to celebrate Halloween. This will be the City’s 7th year running this event. This year, staff intend to incorporate crafts and other goods that vendors can sell throughout the event, as well as food vendors and trucks, and carnival games.

Analysis/Discussion
Below is a summary of the event. The logistics, operations, and participants are anticipated to be similar to the 2025 event. The request includes the following:
1) Exclusive use of La Plaza Park;
2) Closure of public parking spaces;
3) Food truck and other vendor sales in the park; and
4) Live, amplified entertainment as well as animals in the park.

Event Attendance Dates/Times
Cotati Candyland 250-500 Saturday, October 31 (11:00 am-3:00 pm) 66 of 280
California Vehicle Code Section 21101 (e) authorizes the temporary closing of any street for celebrations, parades, local events and other purposes when, in the opinion of local authorities having jurisdiction, the closing is necessary for the safety and protection of persons who are to use that portion of the street during the temporary closing. In this instance, the public parking spaces would be heavily used for vendor logistics and equipment, so closure would be in the best interest of public safety. The streets will remain open, so no emergency service agencies will need to be notified of road closures.

Cotati Candyland is a yearly event that brings many children and adults together. The event will begin at 11:00 am with vendors and agencies handing out candy and other goodies in the park, carnival games hosted by Rancho Cotate High School students in the park, and vendors selling items in the park. Staff are requesting exclusive use of La Plaza Park, the Bandstand, and parking spaces on La Plaza between West Sierra Avenue and Old Redwood Highway from 8:00 am through 7:00 pm to allow for set-up, breakdown, and clean-up.

Financial Considerations
This event is widely marketed and has historically increased the number of visitors to the City.

The increased visitation is evidenced at the event and local businesses. The event provides increased opportunities to promote economic development.

Financial considerations for the City would be expenditure of about $7,534 in staff and supply costs accommodated in the FY 26-27 budget. The supply and staff costs for the recreation, public works, and police department include the following:

Staff Time - 58 hours, estimated cost $6,834
• Recreation Staff prep work & day of event – 55 hours - approx. $6,240 • Public Works Install/Remove no parking signs in La Plaza Park Environmental Issues – 3 hours - $594
Supplies – candy, giveaways, decorations - $700
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)
APPROVING CITY OF COTATI’S 2026 COTATI CANDYLAND EVENT
WHEREAS, the City of Cotati sponsors an annual Cotati Candyland Trick or Treat event, traditionally held in La Plaza Park; and
WHEREAS, California Vehicle Code Section 21101(e) authorizes temporary street closures where certain conditions exist; and
WHEREAS, it will be necessary to temporarily close parts of certain streets, as described in this resolution and Exhibit “A,” to facilitate this event; and WHEREAS, the closure is necessary for the safety and protection of persons who are to use that portion or portions of the street(s) during the temporary closing; and WHEREAS, the City Council finds that this event is part of a comprehensive economic development strategy by the City of Cotati in that it increases visitation to the City, promotes the Cotati community and results in increased sales tax revenues; and WHEREAS, the City Council further finds that the health, safety, and welfare of the citizens of the City of Cotati will not be jeopardized by the approval of this event; and WHEREAS, it will be necessary to conform to certain conditions as described in “Exhibit A,” attached hereto, to facilitate this event; and WHEREAS, the event organizers have been conditioned to return the park and streets to their prior condition of cleanliness and repair as set forth in Exhibit “A” attached hereto; and WHEREAS, the action of approving a trick or treating event does not constitute a project as defined by California Environmental Quality Act Guidelines Section 15378, and therefore, no further environmental review is required.

NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Cotati as follows:

1. The above recitals are true and correct and are incorporated herein by reference.

2. The closure of La Plaza Park for use for the Cotati Candyland Trick or Treat event on Saturday, October 31, 2026, between 8:00 am and 7:00 pm is hereby approved, to include amplified music, vendor and food truck sales, and other activities as described in the accompanying staff report.

3. The temporary closure of parking spaces on La Plaza Street, between Old Redwood Highway and West Sierra Avenue on October 31, 2026, between the hours of 8:00 am and 7:00 pm is hereby approved.
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4. The use of staff time and City Funds for Cotati Candyland, as further described in the accompanying staff report, is hereby approved.

5. The Conditions of Approval, attached as Exhibit A to this resolution, are hereby approved.

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 September 8, 2026, by the following vote, to wit:

Approved:___________________________
Mayor
Attest:______________________________
Kevin Patterson, City Clerk
Approved as to form:______________________________
City Attorney
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EXHIBIT “A”

CONDITIONS OF APPROVAL

COTATI CANDYLAND

1. The City of Cotati shall ensure the public facilities (park, parking spaces and streets) are cleaned completely and returned to pre-event condition within 48 hours of the event.

2. The event shall be carried out as described in the written descriptions submitted by the applicant, approved by the City Council, and in compliance with these Conditions of Approval.

3. The City of Cotati is granted exclusive use of La Plaza Park, including closure of all public streets and parking spaces necessary to accommodate the event on Saturday, October 31st, 2026, from 11:00 am to 3:00 pm for the event. This approval includes amplified live entertainment, food and vendor sales, and closure of parking spaces connected to La Plaza Park on La Plaza Street between Old Redwood Highway and West Sierra Avenue between 8:00 am-7:00 pm.

4. The City of Cotati shall arrange for trash, recycling, and compost bins to be delivered and collected.

5. The City of Cotati shall adhere to the following approved event area:
o La Plaza Park
o Parking spaces on La Plaza from West Sierra Avenue to Old Redwood Hwy 70 of 280
Cotati City Council
Agenda Staff Report
Item type: CONSENT CALENDAR (ACTION)
To: City Council
Subject: APPROVAL OF 2026 COTATI CHAMBER OF COMMERCE

OKTOBERFEST EVENT IN LA PLAZA PARK
Date: September 8, 2026
Written by: Ashley Wilson, Recreation Manager
Recommendation
It is recommended that the City Council adopt a resolution approving the 2026 Cotati Chamber of Commerce Oktoberfest event.

Background
The Cotati Chamber of Commerce has sponsored many community events and the City has historically granted the Chamber permission to use City facilities, namely La Plaza Park, City Hall parking lot, and various streets and parking spaces. For 2026, the Cotati Chamber of Commerce is proposing to bring back the Annual Cotati Oktoberfest.

Analysis/Discussion
Below is a summary of the event. The logistics, operation and participants are anticipated to be very similar to previous years’ events. Requests include the following:

1. Exclusive use of La Plaza Park;

2. Food truck and vendor sales of food and beverages;

3. Live, amplified entertainment;

4. Alcoholic beverage sales;

5. Street closures of La Plaza between West Sierra Ave and Old Redwood Highway; and

6. Dogs in the park.

Event Attendance Dates/Times (including set-up)
Oktoberfest 1500 Saturday, October 10th
8:00am-8:00pm
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This event will feature amplified live music, food, and beverages in La Plaza Park beginning at noon and going until 5:00 PM.

The Chamber is requesting exclusive use of the park and bandstand from 8:00 AM through 8:00 PM to allow for set-up, breakdown, and clean-up. The event at La Plaza Park will be free of charge. Entertainment will include live bands, dancing, and dachshund races. Alcoholic beverages and food will be sold in association with the festival.

The Chamber has reviewed the City’s insurance requirements and has indicated that they have adequate insurance. A Condition of Approval has been included which requires proof of insurance be supplied to the City before each event.

A Condition of Approval has been included which requires a California Department of Alcohol and Beverage Control approved temporary permit to allow for the sale of alcohol to be supplied to the City before the events.

Financial Considerations
The Chamber has requested fee waivers and City support of staff time. This event is widely marketed by the Chamber and increases the number of visitors to the City. The increased visitation is evidenced not only at the events, but at local businesses as well. The event provides increased opportunities to promote economic development and some increased sales tax revenue.

Financial considerations for the City would be a park rental fee waiver (per the license agreement with the Chamber of Commerce) from the normal $456 in park use permit fees (Park Rental Fee + Application Fee).

Octoberfest Summary of Fees
Park rental fee* $ 399
Application fee* $ 57
Street closure fee $ 798
Banner Installation fee: $ 990
Restroom cleaning fee: $ 100
Total $2,344
*Less Waived fees ($ 456)
Adjusted Total $1,888
*Waived with Chamber License Agreement
Given that the City is a partner in these events, staff recommend a City Council contribution for these events to cover the remaining fees. Therefore, the additional cost to the City in the form of waived fees is estimated to be $1,888, which the City’s General Fund will provide if approved.

The City would still collect the $500 refundable deposit, which would be returned after the event, if the park is left in good condition.
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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)
2026 COTATI CHAMBER OF COMMERCE OKTOBERFEST IN LA PLAZA PARK WHEREAS, the Cotati Chamber of Commerce submitted an application to the City for the Cotati Oktoberfest, 2026; and
WHEREAS, it will be necessary to conform to certain conditions as described in “Exhibit A,” attached hereto, to facilitate this event; and WHEREAS, the City Council finds that this event is part of a comprehensive economic development strategy by the Chamber of Commerce in that it increases visitation to the City, promotes the Cotati community and results in increased sales tax revenues; and WHEREAS, the City Council further finds that the health, safety, and welfare of the citizens of the City of Cotati will not be jeopardized by the approval of this event; and WHEREAS, the application for this event is attached as Exhibit B; and WHEREAS, in accordance with the City’s license agreement (License Agreement) with the Chamber of Commerce, the Chamber is entitled to rent La Plaza Park two times per year without a rental fee; and
WHEREAS, because the City is a partner in these events, it is recommended that the City fund the remaining fees to facilitate these events (estimated at $1,888); and WHEREAS, the action of approving an Oktoberfest event does not constitute a project as defined by California Environmental Quality Act Guidelines Section 15378; therefore, no further environmental review is required.

NOW THEREFORE BE IT RESOLVED, that
Section 1. Findings. The above recitals are declared to be true and correct and are incorporated herein as findings of the City Council.

Section 2. Approval of Conditions. The City Council hereby approves the conditions of approval for this event, attached as Exhibit A.

Section 3. Approval of Fee Waivers for Cotati Chamber of Commerce. The fee waiver for the park permit has been previously waived in accordance with the License Agreement. For this event, the estimated cost of City banner hanging, street closure, and restroom cleaning requires an additional City contribution from the City's General Fund of $1,888, as described in the accompanying Staff Report, is hereby approved to facilitate these events.

Section 4. Effective Date of this Resolution. This Resolution shall become effective immediately.

Section 5. Severability. Each portion of this resolution is severable. Should any portion of this resolution be adjudged to be invalid and unenforceable by a body of competent jurisdiction, 74 of 280
then the remaining resolution portions shall be and continue in full force and effect, except as to those resolution portions that have been adjudged invalid. The City Council of the City of Cotati hereby declares that it would have adopted this resolution and each section, subsection, clause, sentence, phrase and other portion thereof, irrespective of the fact that one or more section, subsection, clause, sentence, phrase or other portion may be held invalid or unconstitutional.

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 September 8, 2026, by the following vote, to wit:

Approved:___________________________
Mayor
Attest:______________________________
Kevin Patterson, City Clerk
Approved as to form:______________________________
City Attorney
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EXHIBIT “A”

CONDITIONS OF APPROVAL
COTATI CHAMBER OF COMMERCE OKTOBERFEST 2026

1. Applicant shall provide the City with proof of insurance for event and vendors, as required, to the satisfaction of the City, no less than 30 days prior to event.

2. Applicant shall ensure the public facilities (park, parking spaces, restrooms, and streets) are cleaned completely and returned to pre-event condition within 24 hours of event. This includes the removal of any chalk or tape used to mark vendor spaces and returning eight sets of trash, recycling, and compost bins to the unimproved area immediately behind the stage in the park. All litter in the park and on the surrounding streets within the event area shall be cleaned up by 9:30am on the Monday following the event. If necessary, litter removal will be completed by Public Works or other City Staff after 9:30am and the cost will be charged to the event host at the staff hourly rate in accordance with the current fee schedule. Spray paint and drilling of holes in any concrete or asphalt roadway or sidewalk area is strictly prohibited.

3. Applicant shall arrange for trash, recycling, and compost bins and porta-potties to be delivered and collected. All communication with delivery and pickup shall be done between the provider and applicant. Collections of porta-potties, handwashing stations, and extra trash, recycling, and compost bins shall be made by Monday, October 12. No trash, recycling, or compost receptacles or portable restrooms may be positioned within one hundred feet of any open food serving establishment.

4. Applicant shall obtain a Daily License from the Department of Alcoholic Beverage Control (ABC). The City authorizes the sale and consumption of beer and wine and margaritas only; a copy of the license, as well as evidence of responsible beverage service training, shall be provided to the City prior to the event date.

5. Event shall be carried out as described in the written descriptions submitted by the applicant, approved by the City Council, and in compliance with these Conditions of Approval.

6. Applicant shall obtain the required permits and follow all regulations from the Sonoma County Environmental Health Department, and shall ensure each food vendor complies with Health Department requirements.

7. Applicant shall ensure that all vendors follow Cotati Municipal Code 8.20.030 (Prohibited food service ware and products), which bans the selling or serving of food ware that contains polystyrene foam or PFAS.

8. Applicant shall notify all neighboring businesses and residents of the event and street closures, no later than 14 days prior to the event.

9. Applicant shall contact the Sonoma County Fire District and comply with any permit requirements of the District.

10. Applicant shall prominently feature the City of Cotati as an event sponsor on all advertising and marketing materials.

11. Applicant shall notify all neighboring businesses and residents of the event and street closures, no later than 14 days prior to the event. Once completed, applicant shall immediately remit verification of notices with dates, method, and contact info (addresses) to the City.
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12. The Police Department shall notify the appropriate agencies of street closures per California Vehicle Code Section 21101 (e). This Section authorizes the temporary closing of any street for celebrations, parades, local events, and other purposes when, in the opinion of local authorities having jurisdiction, closing is necessary for the safety and protection of persons who are to use that portion of the street during the temporary closing.

13. Applicant is granted exclusive use of La Plaza Park, including public parking spaces adjacent to the Park for the event on Saturday, October 10, 2026, from 8:00 am – 8:00 pm for the event to be held from noon to 5:00 pm. This approval includes amplified live entertainment.
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September 3, 2026
To: Damien O'Bid
CC: Ashley Wilson
From: Liz Derammelaere, Executive Director of Cotati Chamber of Commerce The Cotati Chamber of Commerce is applying for use of La Plaza Park for our upcoming Cotati Oktoberfest on Saturday, October 10, 2026.

The annual event celebrates our community with live music, local businesses, food, drinks, and family-friendly activities. The Cotati Chamber has been hosting Oktoberfest for the past several years, and we are proud to provide the community with a free event. We will feature live music and host retail and food vendors throughout the park.

The event will run from 12:00 PM to 5:00 PM. We are requesting use of the park and the same street closures as previous years from 8:00 AM to 8:00 PM for setup and breakdown.

We will apply for a one-day ABC license for beer, wine, and margarita sales. We are requesting the same closure of La Plaza Street, including the area behind the park, to accommodate food vendors and beverage sales. We will also secure additional garbage, compost, and recycling receptacles, as well as additional portable restrooms for the event.

Since this event is part of the comprehensive economic effect and licensing agreement with the Cotati Chamber of Commerce, the Chamber kindly requests that all park fees be waived.

Additionally, the Cotati Chamber of Commerce respectfully requests that the City:

Open the public restrooms at La Plaza Park from 8:00 AM to 8:00 PM on the day of the event and ensure that the timers are set properly.

Put up the Old Redwood Highway street banner for Cotati Oktoberfest approximately 2 weeks in advance of the event.
216 E. School St. Cotati, CA 94931 cotati.org
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Ensure that no watering or mowing of the lawn in La Plaza Park takes place on Saturday, October 10, 2026.

Close La Plaza Street from 8:00 AM to 8:00 PM, consistent with previous Oktoberfest street closures and event operations.

Please contact me with any questions at 707-795-5508 or by email at [email protected].

Thank you for your consideration.

Liz Derammelaere
Executive Director
Cotati Chamber of Commerce
707-795-5508
[email protected]
216 E. School St. Cotati, CA 94931 cotati.org
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Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: QUARTERLY FINANCIAL UPDATE FOR THE UNAUDITED
FISCAL YEAR END 2025/26
Date: September 8, 2026
Written by: Angela Courter, Director of Administrative Services Recommendation
It is recommended that the City Council receive and file the Fiscal Year 2025/26 Fourth Quarter Unaudited Financial Report for the period ending June 30, 2026, including the investment report, and fiscal resilience report for the same quarter ended. No action will be taken.

Background
The City prepares quarterly financial updates to provide the City Council and community with timely information regarding revenues, expenditures, enterprise operations, and cash and investments. This report presents preliminary year-end results for Fiscal Year 2025/26 and compares current-year activity with the prior fiscal year and the amended budget.

The figures remain unaudited and may change as year-end entries and accruals are completed.

Revenues shown in the report include receipts attributable to the fiscal year that were received through August 31, 2026. In addition, construction and street-improvement projects commonly extend across more than one fiscal year, so capital revenue and expenditure timing may differ from the City's annual budget cycle.

Analysis/Discussion
Overall, the City's preliminary financial results are generally consistent with the adopted budget.

Across all funds, the City received approximately $25.1 million in revenue, equal to 99.5% of the amended revenue budget, and incurred approximately $24.5 million in expenditures, equal to

89.4% of the amended expenditure budget. Below is a snapshot of the financial measures for 80 of 280
City-wide revenues and expenditures as outlined within the quarterly attached report.

Financial Measure Actual As of
06/30/2026
Amended Budget % of Budget
All Funds - Revenues $25,061,490 $25,199,061 99.5%
All Funds - Expenditures $24,463,305 $27,363,250 89.4%
General Fund - Revenues $11,792,990 $11,390,361 103.5%
General Fund - Expenditures $12,833,639 $13,520,166 94.9% Water Fund - Revenues $3,029,599 $2,854,860 106.1%
Water Fund - Expenditures $2,186,609 $2,701,254 80.9%
Wastewater Fund - Revenues $4,121,436 $4,141,267 99.5%
Wastewater Fund - Expenditures $3,671,519 $3,918,034 93.7% Citywide Results
Overall revenues and expenditures were in line with the budget. Funds where the revenues or expenses were outside of a 95% variance include Capital Project Funds Revenues and Internal Service Fund Expenditures. Capital Project revenues were below budget primarily because revenue recognition and transfers follow the timing of the related projects. Internal Service Fund expenditures exceeded budget because a vehicle purchased with grant funding and initially budgeted as a capital project was transferred to the Vehicle Replacement Fund for ongoing financial reporting and management.

General Fund Revenues
General Fund operating revenues totaled approximately $11.8 million, which was $252,445, or

2.2%, higher than Fiscal Year 2024/25 and 103.5% of the amended budget. Growth in Property Tax and Community Development charges were partially offset by lower Other Taxes, Other Revenues, Investment Earnings, and Transfers-In. Sales tax receipts appeared to stabilize with marginally higher revenue (1.8% over FY 24-25) and 2.6% over the amended budget. Below is a summary of the primary reasons for each decreased revenue stream for the General Fund during this Fiscal Year:

Revenue Result Primary Explanation
Property Tax
+$145K /
106.8% of
budget
Higher residual Redevelopment Property Tax Trust Fund distributions after recognized redevelopment obligations were paid.

Other Taxes 84.4% of
budget
Lower cannabis tax revenue following the closure of a business that historically generated approximately $148,000 annually.

Community
Development Charges
+$434K year
over year
Building permit revenue follows development activity, while codeenforcement revenue depends on when established receivables become collectible.

Other Revenues 43.0% of
budget
Includes a $57,000 allowance for doubtful aged receivables and approximately $108,000 less administrative reimbursement revenue.
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Investment Earnings
$145K /
113.0% of
budget
Portfolio yield declined from 4.21% to 4.03%, and lower General Fund balances reduced the fund's proportional investment earnings.

Note: Budget in this table refers to the final amended budget General Fund Expenditures
General Fund expenditures totaled approximately $12.8 million, an increase of $386,832, or

3.1%, over Fiscal Year 2024/25, with total expenditures ending at 94.9% of the amended budget.

Salaries, benefits and payouts, compared to prior year, increased by approximately $323,000.

Contract services and legal costs increased by almost $270,000 combined, reflecting insurance costs, the EFID evaluation, mobile home park litigation, code-enforcement matters, and other one-time work.

Repairs and maintenance increased primarily because of a budgeted $156,000 Police Department contribution to the Vehicle Replacement Fund. Other expenses increased due to technology subscriptions, bank and merchant processing fees, and payments under the downtown parking lot lease. Department-level changes also reflect employee compensation adjustments, Police fieldtraining hours, Community Development inspections, and the incorporation of Veronda-Falletti Ranch operations into the Recreation Department (they were previously recorded under Public Works-Parks).

Enterprise Funds
Water Fund revenue increased by approximately $224,000, or 8.0%, over the prior year, while Wastewater Fund revenue increased by approximately $437,000, or 11.9%. The increases primarily reflect adopted utility rates, partially offset by lower water consumption. Wastewater revenue also reflects re-averaging based on the prior year's higher water use.

Most enterprise-fund expenses were within budget. The principal year-over-year increases relate to one-time capital outlay for the water fund for the emergency pipeline repairs on Highway 116 and increased wastewater treatment costs. Salaries and benefits declined primarily because actuarial pension gains for CalPERS Fiscal Year 2024/25 reduced the unfunded pension liability recognized for financial-reporting purposes.

Cash and Investments
As of June 30, 2026, the City held $16,241,077 in cash and investments. The portfolio was consistent with the City's adopted investment policy, and available balances were sufficient to meet more than six months of operating requirements.

Fiscal Resilience
Overall, the City’s financial position at the close of the fourth quarter and fiscal year continues to reflect a stable financial foundation and responsible fiscal management. Revenues and expenditures across the City’s major funds remained generally consistent with budget expectations, with year-end variances primarily reflecting the timing of revenues and 82 of 280
expenditures, project activity, and other normal fluctuations in operations.

Year-end results demonstrate the City’s continued ability to manage changes in revenue performance, service costs, and capital investment while maintaining overall financial stability.

As the City moves into Fiscal Year 2026/27, staff will continue to closely monitor key revenue sources, including sales tax and cannabis-related revenues, expenditure trends, and the timing and funding of capital projects. These results will also help inform ongoing budget monitoring, adjustments that may be appropriate during the FY 2026/27 mid-year budget review, and the budget development early next calendar year.

Financial Considerations
The report provides preliminary year-end information for monitoring the City's financial position. Receiving and filing the quarterly financial report does not incur any costs outside of staff time.

Staff are not proposing any budget amendments or additional appropriations for the Fiscal Year ended June 30, 2026.

Environmental Issues
The review of financial information is not a project which has a reasonable possibility to create a significant effect on the environment, and as such 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 non-action review of finances 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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Fiscal Year Financial Report
Un-Audited Fiscal Year July 1, 2025, to June 30, 2026
Administrative Services 9/2/26 Q4 2025/26
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Fiscal Year End Report
Fiscal Year 2025/26
FISCAL YEAR FINANCIAL REPORT | PAGE 1 of 8
Introduction
This financial report provides an overview of where we are within the budget cycle, then a summary of the City’s financial position through the Fiscal Year (FY) 2025/26 (July 1, 2025, through June 30, 2026) for (1) Citywide Revenues and Expenses, (2) the General Fund, (3) Enterprise Funds, and (4) Summary of Cash and Investments. Notable cumulative year-end to year-end and preliminary amended budget to actual comparisons are included in this report.

The following factors should be taken into consideration when analyzing year-end data:
 Revenues reported herein are calculated based on actual receipts through June 30, 2026, but received through August 31, 2026. Some revenues for the Fiscal year are still being received and will be properly accrued for the audited financial statements.  Construction projects, specifically street improvements, have a different project cycle which is offset from the Fiscal Year. As such, major projects are typically funded across two or more Fiscal Years.

Standard Budget Process Cycle - Where We Are Now & Next Steps:

Tentative Schedule for Financial Reporting:
 September 14th – Start of 2025/26 Fiscal Year end audit fieldwork.  October 27th – Present the Q1 2026/27 financial summary to Council.  November 10th – Present audited financial statements and community annual financial report to the Council for Fiscal Year 2025/26
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FISCAL YEAR FINANCIAL REPORT | PAGE 2 of 8
Citywide Revenues and Expenses
 Other Special Revenues consist of the following funds: Gas Tax, RMRA, Public Safety, K-9 Program, Traffic Mitigation, CDBG Grants, Inclusionary Housing, Linkage Affordable Housing, MTC Streets, Measure M Parks, PEG, In-Lieu Tree Fund, and Bed Tax.

City-wide Significant Variances
Fund type variances where revenues were less than 95 % or expenditures are greater than 95% of budget as of year-end were evaluated as follows:
 Capital Projects’ revenues are currently less than the budget due to the timing of the projects in place and the required transfers from other funds to cover expenditure as of the fiscal year end.  Internal Services Funds had higher expenditures than budgeted primarily due to the transfer of the vehicle purchased with grant funding (budgeted under capital projects) to the Vehicle Replacement fund for financial reporting and management.

Overall actual revenues and expenditures for all funds are anticipated to be aligned with the adopted budget, with the proposed adjustments, for the fiscal year ending June 30, 2026. 86 of 280
FISCAL YEAR FINANCIAL REPORT | PAGE 3 of 8
General Fund: Operating Revenues
The following table includes cumulative revenue comparisons of Fiscal Year 2024/25 and Fiscal Year 2025/26, and revenue budget to actual comparison for Fiscal Year 2025/26.

General Fund operating current revenues are $252,445, or 2.2% above the same period in FY 2024/25.

The most significant reason for this increase was due to the increase in Property Taxes, Sales Taxes and Community Development Charges for Services offset by decreases in Other Taxes, Other Revenues, Investment Earnings, and Transfers In.

The Community Development significant changes include an increase of $174K and $272K for building permit revenues and code enforcement orders respectively. It is important to note that building permit revenue fluctuates primarily based on when development activity occurs, while code enforcement revenue can fluctuate based on when previously established receivables are actually collectible. Therefore, both revenue sources can experience significant year-to-year variations that do not necessarily reflect changes in City fees or ongoing service levels. Charges for Services are subject to building cycles which come and go and are not expected to be flat year to year.

The following is an explanation of the notable variances from budget (greater than $50K and 5%):
- Property Sales Tax revenues are approximately 6.7% or $145K greater than last year and 6.8% above budget. The City received higher-than-anticipated property tax revenue from the distribution of residual Redevelopment Property Tax Trust Fund (RPTTF) funds. These residual funds are distributed to local taxing agencies after the required obligations of the former redevelopment agency, as identified on the Recognized Obligation Payment Schedule (ROPS), have been paid. The amount available for distribution can vary from year to year based on property tax collections and the amount needed to satisfy redevelopment obligations. - Other Taxes were less than budgeted and prior year primarily due to the closure of one of the cannabis businesses which previously operated within the City. This former business had historical contributions of approximately $37K a quarter or $148K annually. - Community Development Charges varied from budget primarily related to the reasons discussed above for building permits and code enforcement orders. 87 of 280
FISCAL YEAR FINANCIAL REPORT | PAGE 4 of 8
- Other Revenues decreased from prior year and the budget due to year end adjustments to build allowance for doubtful revenues pertaining to aged accounts receivable totaling $57K and a decrease of $108K related to reimbursements for administrative charges for the Community Development staff time. This staff time revenue is primarily driven by development project deposit account work and as these reimbursement projects moved into more development phases the permit charges increase, and the administrative reimbursement charges decrease. - Investment Earnings have decreased due to decreased interest earnings in the prior year we had a weighted Yield to Maturity of 4.21% and as of June 30, 2026, the same rate has declined to 4.03%.

Additionally, as the City continues to utilize general fund balances towards capital work, the fund balance has decreased and the proportionate allocation of the interest earnings across all funds has decreased.
- Transfers-In are decreased due to prior years one time transferred back to the general fund for one time grant project reimbursements from the compensated absences (502) fund back to the General Fund as it had collected excess funds above what was sufficient for funding continuing support of expected future distributions.

General Fund: Operating Expenditures
The following table includes cumulative actual expenditure comparisons by department and again by expenditure type for Fiscal Year 2024/25 and Fiscal Year 2025/26 and an expenditure budget to actual comparison for Fiscal Year 2025/26.

Expenditures by Type
Salaries & Benefits
Contract Services
Legal
Insurance
Materials & Supplies
Utilities
Repairs & Maintenance
Other Expenses
Reimbursable Expenses
Transfers Out
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FISCAL YEAR FINANCIAL REPORT | PAGE 5 of 8
Expenditures by Department
Expenditures by General Fund Departments have decreased in the Public Works Department as well as a small decrease in the City Council Department these decreases were due to decreased contract services for one-time special projects primarily for the street’s public works department. The City Council decrease was primarily due to decreased health insurance charges as the Council membership changed.

These decreases were offset by increases in City Managers Department for one time project costs for the EFID evaluation (which has partial refunds from Rohnert Park) as well as increased salary increases both under the MOU’s and with the advancement of the City Clerk during the fiscal year. Community Development increased due to increased permit expenses for inspections. and legal charges for code enforcement. The Police Department had increases primarily related to salaries and benefits due to regular MOU increases as well as increased Field Training Hours (FTO) for training new employees in the current year compared to the prior year. the contributions for vehicle replacements which were postponed in prior year. The Recreation and VF Ranch is primarily increased due to the incorporation of the ranch operations which were reported within parks in the prior year. This increase was approximately $255K for FY 25/26.

See below for details based on the Costs for all other departments were primarily driven by the following:
- Contract Services and Legal have increased by more than $260K from the prior year. This increase is due to continued insurance costs for the City’s general liability and workers comp. insurance premiums. Additionally, the City Manager’s office includes the legal costs pertaining to the mobile home park litigation and Community Development has legal costs for code enforcement. - Repairs & Maintenance primarily increased due to the police department required contribution to the vehicle replacement fund of $156K for FY 25/26.
- Other Expenses increased related to increasing charges for the following, dues and subscription charges for technology services, bank and merchant fees with increased adaption for payments by credit card for more city services, and payments for the lease agreement for the downtown parking lot.
$- $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 $11 $12 $13 $14 $15
FY 2024/25
Actual
FY 2025/26
Actual
FY 2025/26
Budget
City Council
City Manager Admin Services Community Development Public Works Police Recreation & VF Ranch Transfers Out
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FISCAL YEAR FINANCIAL REPORT | PAGE 6 of 8
- Reimbursable Expenses have increased due to continued tracking of insurance claim reimbursable expenses within this new department.

Reviewing the costs by comparison to budget for the General Fund, by department and by type, most expenditures are aligned with expectations and the fund in total remains well within the fiscal year budget.

Enterprise Funds: Operating and Capital Revenues and Expenses The following table includes cumulative revenue and expenses comparisons of Fiscal Year 2024/25 and Fiscal Year 2025/26, and a revenue budget to actual comparison for Fiscal Year 2025/26 for the Enterprise Funds.

The Water and Wastewater Fund revenues are made up of charges for services, connection fees other revenues, and development fees. The revenues for the Water Funds have increased in the current year to increase in rates offset by decreases in consumption. This is consistent with the Wastewater fund, which also has an increase in revenue due to re-averaging consumption from the prior year’s higher water use and increased utility rates. Total revenues for Water and Wastewater funds increased $224K or 8.0% and $436K or 11.9% respectively over the prior year.

For Fiscal Year 2025/26, most of the expenses are in line with the budget at year-end. Significant differences between fiscal years are primarily related to one-time capital outlay for projects and slight increases in Wastewater Treatment. Salaries & Benefits decreased during the current fiscal year primarily due to actuarial calculations for the pension gains which are realized for the purposes of financial reporting with a decrease in unfunded pension liability. 90 of 280
FISCAL YEAR FINANCIAL REPORT | PAGE 7 of 8
Cash and Investments
The tables below show the cash and investments held by the City as of June 30, 2025. The current cash and investment balances are in line with the City adopted investment policy and as budgeted are enough to meet the City’s expenditure requirements for the next six months. 91 of 280
FISCAL YEAR FINANCIAL REPORT | PAGE 8 of 8
Cash and Investment Detail by Composition

Conclusion
Except for identified variances, expenditures and revenues are mostly in line with budget. Continued budgetary strategic planning for future years along with capital project planning and focus on economic development will continue to improve the City’s financial position going forward. Staff look forward to providing Council and community our audited Fiscal Year 2025/26 annual comprehensive financial report (ACFR) and the community focused popular annual financial report (PAFR). 92 of 280
UN-AUDITED REVIEW OF FISCAL YEAR END 25/26
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FINANCIAL

REPORTING

YEAR-END REVIEW
• Citywide Revenues & Expenses
• General Fund Operating Results
• Enterprise Funds
• Cash & Investments Portfolio
• Summary of Fiscal Resilience
• Conclusion & Future Reporting
Preliminary (Un-Audited) Results through June 30, 2026
FINANCIAL UPDATE | Q4 FY 2025/26 94 of 280 2

REVENUES AND EXPENSES ACROSS ALL CITY FUNDS
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CITYWIDE - REVENUES & EXPENSES CITYWIDE — REVENUES & EXPENSES

REVENUES AND EXPENSES

ARE GENERALLY ON TARGET

99.5%
of revenue budget received

89.4%
of expenditure budget used
• Capital Project Revenues reflect project timing and related transfers • Internal Service spending included a grant-funded vehicle as a transferred into the Vehicle Replacement Fund. • Overall results are expected to align with the adopted budget.

FINANCIAL UPDATE | Q4 FY 2025/26 4
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GENERAL FUND
Operating revenues and expenditures
FINANCIAL UPDATE | Q4 FY 2025/26 5
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COMPARATIVE REVENUES & EXPENDITURES
$11.79M | 103.5% of budget
General Fund Revenues
$12.83M | 94.9% of budget
General Fund Expenditures
Revenues increased $252,445 (2.2%) & expenditures increased $386,832 (3.1%) compared with FY 2024/25.

FINANCIAL UPDATE | Q4 FY 2025/26 6
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GENERAL FUND - DETAILED REVENUES

KEY YEAR-END VARIANCES
• Property tax: +$145K year over year; 106.8% of budget, including higher RPTTF residual distributions. • Other taxes: lower after closure of a cannabis business that historically generated about $148K annually. • Community Development charges: building permits and code-enforcement collections vary with development and collectability timing. • Other revenue: reduced by a $57K doubtful-receivable allowance and $108K less administrative reimbursement revenue. • Investment earnings: yield declined from 4.21% to 4.03%; available General Fund balances also decreased.

FINANCIAL UPDATE | Q4 FY 2025/26 99 of 280 7

GENERAL FUND REVENUES PROPORTION
Sales Tax, $5,930,212 Property Tax, $2,315,299
Other Taxes, $706,987
Licenses, Permits &
Franchises, $823,708
Rent, $164,148
Other Agencies,
$275,761
Community
Development
Charges,
$697,386
Public
Work…
Public
Safety
Charg
es,
$11…
Recreation &
Ranch Charges,
$204,267
Other
Rev…
Investme
nt
Earnings,
$145,539
Transfers In,
$266,697
FINANCIAL UPDATE | Q4 FY 2025/26 8
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KEY YEAR-END VARIANCES

GENERAL FUND - DETAILED EXPENDITURES
• Salaries and benefits rose $323K; contract services and legal rose more than $260K combined. • Repairs and maintenance include a $156K Police vehicle-replacement contribution. • Other expenses reflect technology subscriptions, payment-processing costs, and the downtown parking-lot lease. • Department changes include EFID work, code-enforcement costs, Police training and MOU increases, and incorporation of Veronda-Falletti Ranch operations. • Most General Fund costs remain aligned with expectations and within the year-end budget.

BY TYPE BY DEPARTMENT
FINANCIAL UPDATE | Q4 FY 2025/26 9
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ENTERPRISE FUNDS
Water and wastewater operating and capital results
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ENTERPRISE FUNDS ANALYSIS

REVENUES AND EXPENSES

ON TARGET
 Water revenue increased $224K, or

8.0%, over the prior year
 Wastewater revenue increased
$436K, or 11.9%, over the prior year.
 Rate increases offset by lower
consumption; wastewater also
reflects re-averaging on prior-year
usage.
 Most expenses are within budget.

Differences between years primarily
reflect one-time capital outlay and
wastewater treatment.
 Salaries and benefits declined
primarily due to actuarial pension
gains used for financial reporting.

FINANCIAL UPDATE | Q4 FY 2025/26 11
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CASH &

INVESTMENTS
Balances and Portfolio Composition
As of June 30, 2026
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SUMMARY OF CASH AND INVESTMENTS
• Portfolio is consistent with the City’s adopted investment policy. • LAIF is the largest holding at $9.66 million and a 3.92% yield. • Currently evaluating move of funds from LAIF to (SCIP) • Balances are sufficient to meet more than six months of operating requirements.
$16.24M

TOTAL CASH AND INVESTMENTS
FINANCIAL UPDATE | Q4 FY 2025/26 13
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The portfolio is concentrated in LAIF and U.S. Bank Trust, while cash is distributed across operating, enterprise, special revenue, capital, internal-service, deposit, and successor-agency funds.

INVESTMENT PORTFOLIO COMPOSITION

OPERATING
CASH, $778,456 ,
5%
LAIF, $9,658,755 ,
59%

US BANK,
$5,447,696 , 34%
CAMP, $20,796 ,
0%
SCIP, $302,685 ,
2%
Investment Portfolio Composition - $16.2 Million
Gen. Operating,
$3,178,703
Special Revenues,
$3,041,485
Successor Agency,
$1,191,136
Water Operating and
Capital, $4,659,942
Wastewater
Operating and
Capital, $3,005,240
Internal Service
Funds, $279,333
Capital Projects,
$808,051
Deposit Accounts,
$77,187
Cash and Investment Value By Funds - $16.2 Million
FINANCIAL UPDATE | Q4 FY 2025/26 14
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YEAR-END TIMING & NEXT STEPS
Preliminary results will be finalized through the audit and year-end accrual process.

REPORTING CONSIDERATIONS
Results include receipts through June 30 that were
received through August 31, 2026.

Additional FY 2025/26 revenues will be accrued in the
audited financial statements.

Construction and street-improvement projects often
span multiple fiscal years.

TENTATIVE SCHEDULE
SEPT 14 Audit fieldwork begins
OCT 27 Q1 FY 2026/27 financial summary
NOV 10 Audited statements and community
annual financial report
FINANCIAL UPDATE | Q4 FY 2025/26 15
Fiscal Resilience Evaluation Identified No Current
Risk Areas
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CONCLUSION
• Continue long-term budget and capital-project planning. • Maintain focus on economic development and fiscal resilience. • Revenues and expenditures are mostly in line with budget. • Return with the audited FY 2025/26 ACFR and the community-focused PAFR.

FINANCIAL UPDATE | Q4 FY 2025/26 16
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City of Cotati
Summary of Fiscal Resilience Enterprise Fund Factors
As of:

General Fund:

Cash*
Budget Operating
Expenses Cash Coverage Goal
A. Cash Coverage Ratio = $ 3,166,073 $ 10,258,169 30.86% > 25% Cash* Current Liabilities** Quick Ratio Goal
B. Liquidity Ratio = $ 3,166,073 $ 644,536 4.91 > 2.00
Twelve Month
Rolling Revenues To
6/30/2026
Twelve Month
Rolling Budget
Revenues
Revenues to
Budget Goal
C.1 Rolling Twelve Months Revenue to Budget = $ 11,792,990 $ 11,390,361 4% > - 10% Fiscal Year Total
Revenues To
6/30/2026
Prior Fiscal Year
Revenues *
6/30/2025
Revenues to Prior
Year
C.2 Current Fiscal Year Revenue to Prior Fiscal Year = $ 11,792,990 $ 11,540,545 2% D. Increase in Expenditures
Fiscal Year
Operating
Expenditures
6/30/2026
Budget Expenditures
(12 Months)
Expenditures to
Budget Goal
Operating Expenditures Compared to Budget $ 10,044,413 $ 10,258,169 -2% < 10% Fiscal Year
Operating
Expenditures
6/30/2026
Prior Fiscal Year
Operating
Expenditures
06/30/2025
Expenditures to
Prior Year
Operating Expenditures Compared to Prior Year $ 10,044,413 $ 9,224,255 9% E. Significant Revenue Sources Changes
Current Fiscal Year
6/30/2026
Prior Fiscal Year
6/30/2025 % Change Goal
Bradley Burns $ 2,937,350 $ 2,768,865 6.1% > - 10%
Measure S $ 2,992,862 $ 3,056,386 -2.1%
Combined Sales Tax $ 5,930,212 $ 5,825,251 1.8%
Property Tax $ 2,315,299 $ 2,170,267 6.7%
Current Fiscal Year
6/30/2026
Budget
(12 Months) % Change Goal
Bradley Burns $ 2,937,350 $ 2,753,360 6.7% > - 10%
Measure S $ 2,992,862 $ 3,024,000 -1.0%
Combined Sales Tax $ 5,930,212 $ 5,777,360 2.6%
Property Tax $ 2,315,299 $ 2,168,480 6.8%
Tuesday, June 30, 2026
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City of Cotati
Summary of Fiscal Resilience Enterprise Fund Factors
As of:

General Fund:

Tuesday, June 30, 2026
F. Community Event Identification: None Noted
Fiscal Year Total
Revenues To
6/30/2026
Fiscal Year
Operating
Expenditures
6/30/2026
Current Year
Revenues to
Expenses Goal
G. Current Fiscal Year Revenues to Operating Expenditures $ 11,792,990 $ 10,044,413 117% > 110% Prior Fiscal Year
Revenues
6/30/2025
Prior Fiscal Year
Expenditures
06/30/2025
Prior Year
Revenues to
Expenses
Prior year Revenues to Operating Expenditures $ 11,540,545 $ 9,224,255 125% * Cash incudes the pooled cash attributable to the evaluated fund which consists of all liquid available cash and investments held including CD's and Treasury notes. ** Current Liabilities are the total of all liabilities for the evaluated fund, as of the reporting date, that are due and payable within one year.

Though no new indicator was noted. Closure of Cannabis Business impacted current fiscal year revenues and are not anticipated to be replaced with a new cannabis business at this time.
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City of Cotati
Summary of Fiscal Resilience Enterprise Fund Factors
As of:

Water Enterprise Fund
Cash*
Budget Operating
Expenses Cash Coverage Goal
A. Cash Coverage Ratio = $ 4,659,942 $ 2,224,693 209.46% > 33% Cash* Current Liabilities** Quick Ratio Goal
B. Liquidity Ratio: = $ 4,659,942 $ 560,422 8.32 > 2.0
Twelve Month
Rolling Revenues To
6/30/2026
Twelve Month
Rolling Budget
Revenues Revenues to Budget Goal
C.1 Rolling Twelve Months Revenue to Budget = $ 3,029,599 $ 2,854,860 6% > - 10% Fiscal Year Total
Revenues To
6/30/2026
Prior Fiscal Year
Revenues
6/30/2025
Revenues to Prior
Year
C.2 Current Fiscal Year Revenue to Prior Fiscal Year = $ 3,029,599 $ 2,805,659 8% D. Increase in Expenditures Fiscal Year
Operating
Expenditures
6/30/2026
Budget Operating
Expenditures
(12 Months)
Expenditures to
Budget Goal
Operating Expenditures Compared to Budget $ 1,880,756 $ 2,224,693 -15% < 10% Fiscal Year
Operating
Expenditures
6/30/2026
Prior Fiscal Year
Operating
Expenditures
06/30/2025
Expenditures to
Prior Year
Operating Expenditures Compared to Prior Year $ 1,880,756 $ 2,024,096 -7% E. Supporting Agency Change In Rates
1-Jul-25 Goal
Budgeted Rate Agency Rate Difference < 2%
Sonoma County Water Agency (65% of supply) 12.00% 10.76% -1.2400% F.

Fiscal Year Total
Revenues To
6/30/2026
Fiscal Year
Operating
Expenditures
6/30/2026
Revenues to
Expenses Goal
Operating Revenues to Operating Expenditures $ 3,029,599 $ 1,880,756 161% > 110% Prior Fiscal Year
Revenues
6/30/2025
Prior Fiscal Year
Expenditures
06/30/2025
Prior Year Revenues
to Expenses
Prior Year Revenues to Operating Expenditures $ 2,805,659 $ 2,024,096 139% Tuesday, June 30, 2026
* Cash incudes the pooled cash attributable to the evaluated fund which consists of all liquid available cash and investments held including CD's and Treasury notes. ** Current Liabilities are the total of all liabilities for the evaluated fund, as of the reporting date, that are due and payable within one year. 111 of 280
City of Cotati
Summary of Fiscal Resilience General Fund Factors
As of:

Sewer Enterprise Funds
Cash*
Budget Operating
Expenses Cash Coverage Goal
A. Cash Coverage Ratio = $ 2,993,298 $ 3,739,977 80.04% > 33% B. Cash* Current Liabilities** Quick Ratio Goal
Liquidity Ratio: = $ 2,993,298 $ 332,574 9.00 > 2.0
C.1 Twelve Month
Rolling Revenues To
6/30/2026
Twelve Month
Rolling Budget
Revenues Revenues to Budget Goal
Rolling Twelve Months Revenue to Budget = $ 4,121,436 $ 4,141,267 0% > - 10% C.2 Fiscal Year Total
Revenues To
6/30/2026
Prior Fiscal Year
Revenues
6/30/2025
Revenues to Prior
Year
Current Fiscal Year Revenue to Prior Fiscal Year = $ 4,121,436 $ 3,684,591 12% D. Increase in Expenditures Fiscal Year
Operating
Expenditures
6/30/2026
Budget Expenditures
(12 Months)
Expenditures to
Budget Goal
Operating Expenditures Compared to Budget $ 3,504,349 $ 3,739,977 -6% < 10% Fiscal Year
Operating
Expenditures
6/30/2026
Prior Fiscal Year
Operating
Expenditures
06/30/2025
Expenditures to
Prior Year
Operating Expenditures Compared to Prior Year $ 3,504,349 $ 3,706,900 -5% E. Supporting Agency Change In Rates
1-Jul-25 Goal
Budgeted Rate Agency Rate Difference < 2%
Santa Rosa Wastewater Treatment 5.00% 2.09% -2.9100%
F.

Total Revenues To
6/30/2026
Operating
Expenditures
6/30/2026
Revenues to
Expenses Goal
Operating Revenues to Operating Expenditures $ 4,121,436 $ 3,504,349 118% > 110% Prior Fiscal Year
Revenues
6/30/2025
Prior Fiscal Year
Operating
Expenditures
06/30/2025
Prior Year Revenues
to Expenses
Prior Year Revenues to Operating Expenditures $ 3,684,591 $ 3,706,900 99% Tuesday, June 30, 2026
* Cash incudes the pooled cash attributable to the evaluated fund which consists of all liquid available cash and investments held including CD's and Treasury notes. ** Current Liabilities are the total of all liabilities for the evaluated fund, as of the reporting date, that are due and payable within one year. 112 of 280

FINANCE DEPARTMENT
DATE: July 21, 2026
TO: Honorable Mayor and City Council
VIA: Damien O’Bid, City Manager
FROM: Angela Courter, Administrative Services Director
SUBJECT: INVESTMENT REPORT FOR THE QUARTER ENDED
JUNE 30, 2026
Attached for your information is the quarterly report of investments as of June 30, 2026.

The total cash and investment portfolio book value (cost) held by the City as of JUNE 30, 2026 was $16,241,077.

The cash and investments held by the City include the following components:

Managed Investment Portfolio ($5,447,696), State of CA Local Agency Investment Fund ($9,658,755), California Asset Management Program (CAMP) Pooled Investment Fund ($20,796), Sonoma County Investment Pool ($302,685), Cash/Time Deposits ($778,456), and accrued interest on investments ($32,689). (Earned interest is the interest earned on investments over a specific time period, accrued interest is the interest that an investment has earned, but hasn’t yet been received, and paid interest is the interest that has already been received as payment).

Cash and investments held by the City and the trustees continue to be invested in accordance with the Government Code and the Council Investment Policy as adopted on May 9, 2023.

During the quarter, four Certificates of Deposit totaling $984,000 matured. 113 of 280
Council Information
FY 2025-26 Q4 Quarterly Investment Report
JUNE 30, 2026

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Two-year Treasuries were yielding 3.79% at the beginning of the quarter and ended the quarter at 4.14%, which was an increase of 35 basis points for the quarter.

As of JUNE 30, 2026, the Weighted Yield to Maturity on the Managed Investment Portfolio was 4.03%.

At the end of this quarter, the Weighted Average Maturity of the Managed Investment Portfolio was 1.99 years.

The Federal Open Market Committee (FOMC) meets approximately every six weeks and determines the level of the Federal Funds Rate. At the June 17th meeting, the FOMC voted to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent.

Summary from the June 17th meeting:
“The Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent, in support of the Federal Reserve’s dual mandate. The Committee reaffirmed its policy of maintaining ample reserves in the banking system.

Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East. Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little.

Inflation remains elevated relative to the Committee’s 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy. The Committee will deliver price stability.” Finance staff hired Optimized Investment Partners in May 2023 to help improve the investment returns for the City and to ensure compliance with California Government Code by ensuring safety of principal and sufficient liquidity for operations. Ongoing portfolio management activity will continue to be performed in partnership with Optimized Investment Partners, the City Manager, and the Administrative Services Director.

Considering the projected timing of cash receipts and disbursements and the structure of the Pooled Investment Portfolio, the City should be able to comfortably meet overall cash flow needs over the next six months.

If you have any questions, please feel free to contact me at 707-665-4236. 114 of 280
Par Value (1) Market Value (2) Book Value (3)
Cash & Investments Held by City
Investment Portfolio
Managed Investments
U.S. Bank Custodial Cash Account $ 265,000 $ 265,000 $ 265,000 1.63% U.S. Treasury Bill/ Note 3,285,000 3,196,572 3,203,701 19.77% Federal Agency Bond 800,000 796,792 747,994 4.61%
Certificate of Deposit 1,231,000 1,237,733 1,231,000 7.59% Managed Investments Subtotal $ 5,581,000 $ 5,496,096 $5,447,696 33.61% Pooled Investments
State of CA Local Agency Investment Fund $ 9,658,755 $ 9,658,755 $ 9,658,755 59.59% CAMP 20,796 20,796 20,796 0.13%
Sonoma County Investment Pool 302,685 302,685 302,685 1.87% Pooled Investments Subtotal $ 9,982,236 $ 9,982,236 $9,982,236 61.59% Investment Portfolio Subtotal $ 15,563,236 $ 15,478,332 $15,429,932 95.20% Cash/Time Deposits $ 778,456 $ 778,456 $ 778,456 4.80%
Funds Available for Investment $ 16,341,692 $ 16,256,788 $16,208,387 100.00% Accrued Interest $ 32,689 $ 32,689 $ 32,689
Total Cash & Investments Held by City $ 16,374,381 $ 16,289,477 $16,241,077 Notes:

1. Par value is the principal amount of the investment on maturity.

2. Market values contained herein are received from sources we believe are reliable; however, we do not guarantee their accuracy.

3. Book value is par value of the security plus or minus any premium or discount on the security.

Summary of Cash and Investments for the Quarter Ended June 30, 2026 City of Cotati
Portfolio Assets % of Portfolio
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1.99 4.03%
*Note: Cash/time deposits not included in WYTM and WAM
Excludes Pooled Investments and U.S. Bank Custodial Cash Account Under 1 Year
Maturity Jun 2026 Mar 2026 Change 1 - 2 Years
3-Month 3.87% 3.70% 0.17% 2 - 3 Years
1-Year 3.98% 3.68% 0.30% 3 - 4 Years
2-Year 4.14% 3.79% 0.35% 4 - 5 Years
3-Year 4.15% 3.81% 0.34% Total
5-Year 4.19% 3.92% 0.27%
10-Year 4.44% 4.30% 0.14%
Apr
May
Jun 2026 Jun 2025 Jun 2024 Jun 2023 Jun

4.14% 3.72% 4.71% 4.87% Total for Quarter
Note: Interest Earnings figures do not include capital gains or losses $ 171,606 $ 143,025 $ (28,581)
$ 48,592 $ (4,512)
$ 59,962 $ 45,436 $ (14,526)
2-Year U.S. Treasury Yield - Historical Data $ 48,997 $ (9,543) $ 800,000 15%
$ 5,316,000 100%
Interest Earnings FY 24-25 FY 25-26 Change
$ 53,104
$ 58,540
$ 1,048,000 20%
$ 870,000 16%
$ 815,000 15%
U.S. Treasury Yields - Quarterly Comparison $ 1,783,000 34% Book Value (COST) $ 15,429,932
Market Value $ 15,478,332
Weighted Average Maturity (in years)
Weighted Yield to Maturity*
Portfolio Maturity PAR Maturing % Maturing
City of Cotati
Investment Portfolio Summary and Key Statistics
Portfolio Key Statistics
PAR Value $ 15,563,236
Investment Report for the Quarter Ended June 30, 2026

19.66% 59.41%

7.61%

4.90%

4.79%

1.86%

1.63%

0.13%
LOCAL AGENCY INVESTMENT FUND 59.41%
U.S. TREASURY BILL/NOTE 19.66%
CERTIFICATE OF DEPOSIT 7.61%
FEDERAL AGENCY BOND/NOTE 4.90%
CASH/TIME DEPOSITS 4.79%
SONOMA COUNTY INVESTMENT POOL 1.86%
INVESTMENT CASH ACCOUNT 1.63%
CAMP 0.13%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Under 1 Year 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years 34%
20%
16% 15% 15%
Portfolio Maturity Distribution
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Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: 2026 PRESENTATION ON THE PENSION UNFUNDED

ACCRUED LIABILITY, POLICY COMPLIANCE, AND

FUNDED STATUS
Date: September 8, 2026
Written by: Angela Courter, Director of Administrative Services Recommendation
It is recommended that the City Council receive and file the 2026 Pension Liability Review prepared by Ridgeline Municipal Strategies, LLC. No action will be taken.

Background
The City provides retirement benefits to its employees through the California Public Employees' Retirement System (CalPERS). Like many public agencies, the City has an unfunded pension liability, which represents the difference between the estimated cost of future pension benefits earned by employees and the assets currently available to pay those benefits.

In January 2022, the City took significant action to reduce its unfunded pension liability by issuing refinancing loans that allowed the City to pay down approximately $6 million of its CalPERS Unfunded Accrued Liability (UAL). The refinancing also resulted in approximately $2.25 million in estimated cash flow savings at the time of the refinancing.

At the time the loans were issued, the City also adopted an Unfunded Accrued Liability Management Policy establishing a target pension plan funded level of 90 percent.

In FY 2023/24 and FY 2024/25, the City made additional discretionary payments toward its UAL to help address negative amortization on new UAL balances. The City also requested that certain actuarial payment schedules be converted to level amortization. These actions, combined with favorable CalPERS investment performance, have significantly improved the City's pension funding position.
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Analysis/Discussion
Pension Funding Position
As of June 30, 2025, the City's pension plans were approximately 89.5 percent funded, with an unfunded liability of approximately $5.2 million. Since that time, the City's pension position has improved significantly, primarily due to strong investment performance by CalPERS.

CalPERS earned a 12.1 percent investment return in FY 2024/25, compared with its long-term investment target of 6.8 percent. This period's investment performance reduced the City's UAL by approximately $2.1 million. After accounting for changes in actuarial assumptions and other factors that increased the liability, the City's total UAL decreased by approximately $1.48 million during FY 2024/25.

For FY 2025/26 CalPERS has also estimated a 14.8 percent investment return, earning a strong return on the historically low interest $6 million loan. Strong investment returns increase the assets available to pay future pension benefits and reduce the City's unfunded liability. With these estimates, CalPERS' investment performance could reduce the City's UAL by an additional $3.53 million, although the final amount will depend on additional actuarial adjustments that will not be known until CalPERS completes its official actuarial valuation around August 2027.

However, based on the FY 2025/26 investment performance and other available information, the estimated City's pension plans were approximately 97.2% funded as of June 30, 2026, with an estimated remaining unfunded liability of approximately $1.4 million. This represents a substantial improvement from the approximately $5.2 million unfunded liability reported as of June 30, 2025 and approaching 100% funded.

FY 2024/25 Estimated
FY 2025/26
Estimated Funded Level 89.5% 97.2%
Unfunded Accrued Liability (UAL) $ 5.16 Million $1.41 Million The City's estimated funded level is now estimated to be significantly above the 90 percent target established by the City's UAL Management Policy.

Future Pension-Related Debt Payments
The City's remaining UAL payments are projected to be substantially reduced due to the improved funding position. Using the information, as it is right now, the City's separate UAL payments will decline from approximately $609,000 in FY 2026/27 to approximately $263,000 in FY 2028/29. Beginning in FY 2029/30, the City is projected to have no separate UAL payment. (See Table 5 in Report.) This projection assumes there are no significant additional FY 2025/26 actuarial adjustments and that CalPERS continues to achieve at least its 6.8 percent 118 of 280
investment return target.

The elimination of the separate UAL payment does not mean that all pension-related debt payments will end. The City will continue making payments on the UAL Refunding Loans issued in 2022. The UAL Refunding Loans will continue to require annual debt service after the separate UAL payments are eliminated. The current amortization schedule shows the following estimated payments:

Fiscal Year
UAL
Payments Loan Debt Service Total
FY 2026/27 $ 609,000 $ 478,000 $1.09 million
FY 2027/28 $ 627,000 $ 478,000 $1.1 million
FY 2028/29 $ 263,000 $ 478,000 $ 741,000
FY 2029/30 $ 0 $ 478,000 $ 478,000
FY 2030/31–FY 2036/37 $ 0 ~$478,000/year ~$478,000/year FY 2037/38–FY 2041/42 $ 0 ~$129,000/year ~$129,000/year These amounts are estimates based on the current actuarial report, and amounts will be affected by future CalPERS investment performance and actuarial adjustments.

Additional Discretionary Payments
In prior years, the City made additional payments toward its unfunded pension liability to help reduce future costs and address negative amortization. The City did not make an additional discretionary payment during FY 2025/26. Based on the City's current estimated funding position, we have concluded that no policy-mandated Additional Discretionary Payment is necessary for FY 2026/27 and we do not anticipate that a policy-mandated payment will be necessary in FY 2027/28, assuming there are no significant changes resulting from the FY 2025/26 actuarial valuation which will be completed next August 2027.

The City's Pension Rate Stabilization Fund (Section 115 Trust) is an option for consideration based on the City's overall budget outlook. A future contribution to this fund could provide the City with additional resources to help manage pension costs and potential changes in future employer contribution rates. Staff will continue to evaluate this option as we build our next twoyear budget for Fiscal Years 2027/28 & 2028/29.

Ongoing Pension Costs
Although the City's unfunded liability has improved significantly, the City will continue to have 119 of 280
ongoing pension costs for current employees. These costs, known as "Normal Costs," are the regular annual costs associated with benefits being earned by current employees. Staff anticipates increases in several employer Normal Cost rates beginning in FY 2027/28. The increases vary by employee group and pension tier, with the largest increase applying to the City's Classic Safety Tier 2 employees. These ongoing costs are separate from the City's unfunded liability payments and will continue to be incorporated into the City's annual operating budgets.

Important Consideration
The FY 2025/26 funded levels included in the report are estimates. CalPERS is expected to issue its official June 30, 2026, actuarial valuation reports in approximately August 2027. Those reports will incorporate the actual investment results, City and employee contributions, benefit payments, and any additional actuarial adjustments.

While the City's current pension position is very favorable, future investment performance, actuarial changes, or legislative changes (such as AB 1383) can affect the City's liability. For this reason, staff will continue to monitor the City's pension position and provide updates as official CalPERS information becomes available.

Financial Considerations
The City's pension position has improved considerably over the past year. The estimated unfunded liability has decreased from approximately $5.2 million to $1.4 million, and the estimated funded level has increased from 89.5% to 97.2%. This improved funding position is expected to significantly reduce the City's future UAL payments. Based on current estimates, the remaining UAL could be eliminated through the existing payment structure by approximately FY 2029/30.

The City will continue to budget for its required annual pension costs, including both its ongoing Normal Cost and remaining UAL payments and Debt Service payments. Any additional discretionary payments undertaken by the City in future years would require separate Council consideration and appropriation.

There is no immediate fiscal impact associated with receiving this report except for the staff time utilized to generate the report.

Environmental Issues
Where it can be determined with certainty that there is no possibility that receiving a report on the City’s Pension Liability 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 agenda item is exempt from CEQA 120 of 280
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. 121 of 280
2213 P LAZA D RIVE , R OCKLIN , CA 95 765
T EL : 916.25 0 .1590 ; WEB : WWW . RIDGELINEMUNI . COM

TECHNICAL MEMORANDUM
To: Ms. Angela Courter, City of Cotati
Mr. Damien O’Bid, City of Cotati
From: Dmitry Semenov, Ridgeline Municipal Strategies, LLC Date: August 24, 2026
Re: 2026 Pension Liability Review; Ridgeline #23035

INTRODUCTION
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) as of FYE 2025. This technical memorandum documents the review results and outlines recommended actions the City could take to reduce future UAL costs.

Recommended for Implementation:
• No policy-mandated ADPs or actuarial base modifications are necessary for FYE 2026.

Recommended for Consideration Based on Overall Budget Outlook:
• Contributions to the Pension Rate Stabilization Fund.

CITY’S PENSION PLANS AND UNFUNDED ACCRUED LIABILITY
The City provides pension benefits to its employees and retirees through six pension plans with CalPERS. Beginning with FYE 2024, CalPERS consolidated its reporting and now provides two reports: one report for all Safety (Police) plans and one report for all Miscellaneous plans.
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City of Cotati
2026 Pension Liability Review – 08/24/2026

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As of 06/30/2025 (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 $49.3 million, held approximately $44.1 million in assets, and were underfunded by approximately $5.2 million. The pension plans were 89.5% funded, as summarized in Table 1 below.

Source: CalPERS’ Actuarial Valuation Reports as of June 30, 2025 In January 2022, 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. Since then, the City has been making reduced UAL payments to CalPERS on the remaining UAL, 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 total cash flow savings at the time of the refunding.

Subsequently, CalPERS’ investment performance and reconciliation adjustments resulted in additional UAL changes.

In FYEs 2024 and 2025, the City has made several Additional Discretionary Payments (ADPs) to offset the effects of negative amortization on new UAL balances, as well as requested CalPERS to convert some of the actuarial bases to level amortization.

Figure 1 shows the recent and future UAL and UAL Refunding Loans amortization schedule. This schedule reflects the official CalPERS 2025 amortization schedule and DOES NOT include the ADPs made by the City. However, it does incorporate the impact of these ADPs on future UAL payments.

Pension Plan Total Accrued
Liability
Market Value
of Assets
Unfunded
Accrued
Liability
%
Funded
Safety - Police $21,669,029 $19,241,357 $2,427,672 88.8% Miscellaneous $27,642,706 $24,907,534 $2,735,172 90.1%
TOTAL $49,311,735 $44,148,891 $5,162,844 89.5%
City of Cotati
Table 1
Pension Plans Summary - 06/30/2025
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Figure 1
City of Cotati
Current UAL and UAL Refunding Loan Amortization Schedule (in $ thousands) Source: CalPERS’ Actuarial Valuation Reports as of June 30, 2025 and UAL Refunding Loans Amortization Schedules 124 of 280
City of Cotati
2026 Pension Liability Review – 08/24/2026

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CALPERS INVESTMENT PERFORMANCE FOR FYE 2025 and FYE 2026 For FYE 2025, CalPERS generated an investment return of 12.1%, which exceeded CalPERS’ performance target of 6.8%. This resulted in a UAL decrease, some of which was offset by certain actuarial reconciliation adjustments.

CalPERS recently announced an estimated FYE 2026 investment return of 14.8%, exceeding the 6.8% target. This will result in an additional UAL reduction. However, other actuarial reconciliation adjustments for FYE 2026 are not yet known. Figure 2 below shows the history of CalPERS’ annual investment returns.

Figure 2
City of Cotati
History of CalPERS’ Annual Investment Returns, FYE 1997-2026 Source: CalPERS
The average annual investment returns as reported by CalPERS are as follows:
• 5 years: 6.8%
• 10 years: 8.6%
• 20 years: 6.8%
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The average returns indicate that historically CalPERS has been able to achieve the current long-term investment target rate of 6.8% (the current discount rate). CalPERS has gradually lowered its target rate over recent decades. It appears that the current target rate corresponds favorably with the past performance. However, past performance is not a guarantee of future results.

SUMMARY OF FYE 2025 UAL CHANGES
For FYE 2025, CalPERS added three new actuarial bases to each of the City’s pension plans:
• The Investment Gain base decreased the UAL to account for the investment overperformance of 5.3%, compared to the 6.8% discount rate. • The Assumption Change base is a one-time adjustment that includes various pension formula revisions adopted by CalPERS as a part of the 2025 Experience Study and Review of Actuarial Assumptions process, primarily related to increasing the price inflation assumption from 2.3% to 2.5% and increasing the wage inflation assumption from 2.8% to 3.0%. This base increased the UAL. • 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.

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

Source: CalPERS’ Actuarial Valuation Reports as of June 30, 2025 The combined impact of these three bases reduced the City’s total UAL by approximately $1.5 million, significantly improving the City’s funding position and future UAL payments profile.

Pension Plan Investment
Returns
Assumption
Change Other Factors Total UAL Change
Safety - Police (924,111) 118,892 185,034 (620,185)
Miscellaneous (1,186,643) 61,862 269,095 (855,686)
TOTAL (2,110,754) 180,754 454,129 (1,475,871)
Table 2
City of Cotati
FYE 2025 UAL Change Factors
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IMPACT OF FYE 2026 CALPERS’ INVESTMENT PERFORMANCE ON THE CITY To assess the impact of CalPERS’ FYE 2026 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%. Whenever investment returns fall 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 14.8% investment return translates into an 8.0% funding surplus (the difference between the 6.8% discount rate and the 14.8% estimated investment return). This surplus is projected to reduce the City’s UAL by approximately $3.5 million, subject to future actuarial adjustments.

Table 3 shows the 2026 investment performance impact estimates for the City’s plans.

Source: Ridgeline
The investment overperformance impact is estimated based on the FYE 2025 market value of assets within each pension plan multiplied by 8.0%. However, CalPERS may make additional adjustments to account for actual vs. projected plan experience and methodology changes, similarly to what was done in FYE 2025.

CITY’S NORMAL COST RATES
In addition to the UAL changes, the City should be aware that its Normal Costs are changing as follows for FYE 2028:
• Classic Miscellaneous Tier 1 Plan: increased by 0.46% of salaries (from 16.07% to

16.53%) for the City, while remaining unchanged for the employees; Pension Plan Estimated 2026
UAL Change
Safety - Police ($1,539,000)
Miscellaneous ($1,993,000)
TOTAL ($3,532,000)
Table 3
City of Cotati
Estimated 2026 Investment Return Impact
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• Classic Miscellaneous Tier 2 Plan: increased by 0.27% of salaries (from 10.75% to

11.02%) for the City, while remaining unchanged for the employees; • PEPRA Miscellaneous Plan: increased by 0.12% of salaries (from 7.93% to 8.05%) for the City, while remaining unchanged for the employees;
• Classic Safety Tier 1 Plan: appears to have been eliminated (no active employees); • Classic Safety Tier 2 Plan: increased by 1.35% of salaries (from 20.17% to 21.52%) for the City, while remaining essentially unchanged for the employees1 (a minor decrease from 8.97% to 8.96%);
• PEPRA Safety Plan: increased by 0.46% of salaries (from 13.91% to 14.37%) for the City, while remaining unchanged for the employees.

CITY’S ESTIMATED FYE 2026 PENSION PLAN FUNDED LEVELS
CalPERS will publish the 06/30/2026 actuarial reports in or around August 2027. The reports will reflect any changes that have taken place during the fiscal year, including the investment performance, City’s and employees’ contributions, including ADPs (none were made), benefit payments to plan beneficiaries, and CalPERS’ adjustments to reconcile the actual vs. projected plan experience and to account for actuarial methodology changes.

While the reconciliation and methodology adjustments are unknown at this time, Ridgeline has developed an estimate of the other changes, which are summarized in Table 4 below.
1 The 2025 Actuarial Report for the Safety Plans shows no remaining Classic Safety employees. 128 of 280
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Sources: CalPERS, Ridgeline
The amounts calculated in Table 4 are estimates only and can only be finalized once CalPERS publishes the 06/30/2026 actuarial reports in August 2027.

The UAL payments and benefit payments estimates were generated by CalPERS. ADP amounts are $0, as the City did not make any ADPs during the year. The Normal Cost contributions, investment gain / loss, and UAL interest estimates were generated by Ridgeline.

It is estimated that the City’s Miscellaneous and Safety plans were approximately 97% funded as of 06/30/2026, 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 has surpassed that target funded level.

Description Misc Plans Safety Plans Total
Market Value of Assets
2025 Balance $24,908,000 $19,241,000 $44,149,000
Normal Cost Contribution $555,000 $376,000 $931,000
UAL Payment $301,000 $267,000 $568,000
ADP $0 $0 $0
Investment Gain / (Loss) $3,686,000 $2,848,000 $6,534,000 Benefit Payments ($1,380,000) ($1,114,000) ($2,494,000) Estimated 2026 Balance $28,070,000 $21,618,000 $49,688,000 Unfunded Accrued Liability
2025 Balance $2,735,000 $2,428,000 $5,163,000
UAL Payment ($301,000) ($267,000) ($568,000)
Interest $186,000 $165,000 $351,000
ADP $0 $0 $0
Investment (Gain) / Loss ($1,993,000) ($1,539,000) ($3,532,000) Estimated 2026 Balance $627,000 $787,000 $1,414,000
Pension Plan 2026 Funded Level 97.8% 96.5% 97.2%
City of Cotati
2026 Pension Plan Funded Level Estimate
Rounded to '000s
Table 4
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AMORTIZATION OF THE UAL CREDIT
The 2026 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 2029 (July 2028).

However, with the scheduled UAL payments over the next two years, the 2026 UAL credit is expected to completely offset the remaining UAL balance by 2030, resulting in the elimination of the remaining UAL payments. This assumes that there will be no other significant FYE 2026 UAL adjustments by CalPERS and that CalPERS continues to earn at least 6.8% investment return going forward.

Figure 3 illustrates how the UAL credit will impact the City’s UAL repayment structure for the combined plans. Starting with FYE 2030, under the assumptions stated above, there will be no more UAL payments and the City would only need to make the debt service payments on the UAL Refunding Loans.
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Figure 3
City of Cotati
UAL Repayment with Projected 2026 UAL Investment Gain Credit (in $ thousands) Source: CalPERS’ Actuarial Valuation Reports as of June 30, 2025, UAL Refunding Loans Amortization Schedules, Ridgeline 131 of 280
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2026 Pension Liability Review – 08/24/2026

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Table 5 provides the annual detailed estimate of the existing UAL amortization, the UAL Refunding Loans repayments, and the projected 2026 UAL amortization schedule.

Source: CalPERS’ Actuarial Valuation Reports as of June 30, 2025, UAL Refunding Loans Amortization Schedules, Ridgeline POB Street Loan Existing UAL 2026 UAL POB Street Loan Existing UAL 2026 UAL Total Debt Service UAL Total 2023 $197,540 $73,354 $218,709 - $489,603 $150,855 $56,018 $190,922 - $397,796 $477,768 $409,631 $887,399 2024 $197,539 $73,354 $192,898 - $463,791 $150,855 $56,018 $170,871 - $377,744 $477,766 $363,769 $841,535 2025 $197,541 $73,354 $247,153 - $518,048 $150,856 $56,018 $229,636 - $436,510 $477,769 $476,789 $954,558 2026 $197,542 $73,354 $301,275 - $572,172 $150,857 $56,018 $267,121 - $473,996 $477,772 $568,396 $1,046,168 2027 $197,540 $73,354 $326,930 - $597,824 $150,855 $56,018 $281,859 - $488,732 $477,767 $608,789 $1,086,556 2028 $197,539 $73,354 $334,936 - $605,829 $150,854 $56,018 $291,659 - $498,532 $477,766 $626,595 $1,104,361 2029 $197,541 $73,354 $346,254 ($346,254) $270,895 $150,856 $56,018 $301,058 ($37,732) $470,200 $477,769 $263,326 $741,095 2030 $197,540 $73,354 $303,509 ($303,509) $270,894 $150,855 $56,018 $267,509 ($267,509) $206,874 $477,768 - $477,768 2031 $197,543 $73,354 $260,763 ($260,763) $270,897 $150,857 $56,018 $233,959 ($233,959) $206,875 $477,772 - $477,772 2032 $197,537 $73,354 $231,670 ($231,670) $270,892 $150,853 $56,018 $211,303 ($211,303) $206,871 $477,763 - $477,763 2033 $197,541 $73,354 $231,670 ($231,670) $270,895 $150,856 $56,018 $211,299 ($211,299) $206,874 $477,769 - $477,769 2034 $197,542 $73,354 $231,669 ($231,669) $270,896 $150,856 $56,018 $211,301 ($211,301) $206,875 $477,771 - $477,771 2035 $197,539 $73,354 $231,671 ($231,671) $270,894 $150,855 $56,018 $211,302 ($211,302) $206,873 $477,766 - $477,766 2036 $197,539 $73,354 $231,670 ($231,670) $270,893 $150,854 $56,018 $211,301 ($211,301) $206,872 $477,765 - $477,765 2037 $197,540 $73,354 $231,670 ($231,670) $270,895 $150,855 $56,018 $211,302 ($211,302) $206,874 $477,768 - $477,768 2038 - $73,354 $231,670 ($231,670) $73,354 - $56,018 $211,302 ($211,302) $56,018 $129,372 - $129,372 2039 - $73,354 $231,669 ($231,669) $73,354 - $56,018 $211,305 ($211,305) $56,018 $129,372 - $129,372 2040 - $73,354 $231,666 ($231,666) $73,354 - $56,018 $195,679 ($195,679) $56,018 $129,372 - $129,372 2041 - $73,354 $231,671 ($231,671) $73,354 - $56,018 $195,683 ($195,683) $56,018 $129,372 - $129,372 2042 - $73,354 $110,236 ($110,236) $73,354 - $56,018 $100,269 ($100,269) $56,018 $129,372 - $129,372 2043 - - - - - - - - - - - - -
2044 - - - - - - - - - - - - -
TOTAL $2,963,105 $1,467,082 $4,959,359 ($3,337,458) $6,052,088 $2,262,830 $1,120,365 $4,416,640 ($2,721,246) $5,078,588 $7,813,381 $3,317,295 $11,130,676 Debt Service UAL
Table 5
City of Cotati
Estimated UAL Amortization Schedule - CalPERS
FYE
Miscellaneous Plan Safety Plan Total
Debt Service UAL
Total
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City of Cotati
2026 Pension Liability Review – 08/24/2026

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The debt service allocation to the Miscellaneous and Safety plans is made based on the UAL balances paid down with the UAL Refunding Loans (see Table 6 below).

Source: UAL Refunding Loans Amortization Schedules
The 2026 UAL credit amortization calculation is estimated based on the Market Value of Assets for each plan.

PENSION COST OPTIMIZATION STRATEGIES ASSESSMENT
When the UAL Refunding Loans were issued, the City adopted a UAL Management Policy to guide future pension liability management.

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. The combination of these ADPs and the three years of favorable market returns have allowed the City to exceed the 90% funded level target within the plans, as shown in Table 7.

Source: Ridgeline
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
Description Amount Comments
Estimated 2026 MVA $49,688,000 See Table 4
Estimated 2026 UAL $1,414,000 See Table 4
Estimated 2026 Total Accrued Liability $51,102,000
Estimated 2026 Funded Level 97.2% See Table 4
90% Funded Level Amount $45,992,000
ADP Required to Achieve 90% Funded Level ($3,696,000) Funded Target Met Table 7
City of Cotati
FYE 2026 Funded Ratio Target Estimate
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City of Cotati
2026 Pension Liability Review – 08/24/2026

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The Investment Gain bases added to the City’s plans for FYE 2025 and expected to be added for FYE 2026 have the negative amortization dynamic working in the City’s favor:
• The ramp-up structure of Investment Gain bases helps maximize the interest cost offset benefit.
• The level amortization for Non-Investment Loss and Assumption Change bases ensures that their amortization starts with the first payments. • The accrued interest during the first two “no payment” years for the NonInvestment Loss and Assumption Change bases is offset by the accrued interest on the Investment Gain bases.

The FYE 2023 bases have been converted from ramp-up to level repayment, and no further action is required for them.

CONCLUSION and RECOMMENDATIONS
Given the estimated funded level of the plans, the prior actions taken by the City, and the FYE 2026 actuarial bases dynamic, no policy-mandated ADPs are needed in FYE 2027.

Additionally, unless CalPERS makes significant adjustments to the plans for FYE 2026, at this time we do not expect that policy-mandated ADPs will be needed in FYE 2028.

Based on the overall budget outlook, the City could consider making discretionary contributions into its Pension Rate Stabilization Fund. 134 of 280
2026 Pension
Liability Update
September 8, 2026
Municipal Advisory | Pension Optimization | Financial Planning 135 of 280
City of Cotati – 2026 Pension Liability Update 09/08/2026 2 CalPERS UAL Refunding Overview
• Jan 2022 – City closed on Pension Obligation and Street Improvement Loans • The closing took place right before interest rates run up and locked in low rates for the City • 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 2024 investment gain of 9.3% (2.5% above 6.8% discount rate) • FYE 2025 investment gain of 12.1% (5.3% above 6.8% discount rate) • FYE 2026 estimated investment gain of 14.8% (8.0% above 6.8% discount rate) 136 of 280
City of Cotati – 2026 Pension Liability Update 09/08/2026 3 06/30/2025 Pension Plans Overview
Source: 06/30/2025
CalPERS Actuarial
Reports
Definitions:

Total Accrued Liability = What You Need
Market Value of Assets = What You Have
Unfunded Accrued Liability = What You Owe
Pension Plan Total Accrued
Liability
Market Value
of Assets
Unfunded
Accrued
Liability
%
Funded
Safety - Police $21,669,029 $19,241,357 $2,427,672 88.8% Miscellaneous $27,642,706 $24,907,534 $2,735,172 90.1%
TOTAL $49,311,735 $44,148,891 $5,162,844 89.5%
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City of Cotati – 2026 Pension Liability Update 09/08/2026 4 2026 Funded Level Estimate (Rounded)
All 2026 numbers are
estimates and may vary
Source: 06/30/2025
CalPERS Actuarial
Reports & Ridgeline
Description Misc Plans Safety Plans Total
Market Value of Assets
2025 Balance $24,908,000 $19,241,000 $44,149,000
Normal Cost Contribution $555,000 $376,000 $931,000
UAL Payment $301,000 $267,000 $568,000
ADP $0 $0 $0
Investment Gain / (Loss) $3,686,000 $2,848,000 $6,534,000 Benefit Payments ($1,380,000) ($1,114,000) ($2,494,000) Estimated 2026 Balance $28,070,000 $21,618,000 $49,688,000 Unfunded Accrued Liability
2025 Balance $2,735,000 $2,428,000 $5,163,000
UAL Payment ($301,000) ($267,000) ($568,000)
Interest $186,000 $165,000 $351,000
ADP $0 $0 $0
Investment (Gain) / Loss ($1,993,000) ($1,539,000) ($3,532,000) Estimated 2026 Balance $627,000 $787,000 $1,414,000
Pension Plan 2026 Funded Level 97.8% 96.5% 97.2%
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City of Cotati – 2026 Pension Liability Update 09/08/2026 5 2025 UAL + POB Amortization Schedule
Historical Payments
Sources: 06/30/2025
CalPERS Actuarial Reports
and Loan Amortization
Schedules
UAL and Debt Service
Payments only – no
normal cost
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City of Cotati – 2026 Pension Liability Update 09/08/2026 6 2026 CalPERS Performance
• Estimated gain of 14.8% (Aug 2026)
• Funding surplus of 8.0% (after discount rate)
• FY2027 results are too early to tell
• Assuming no other adjustments by CalPERS &
continuing CalPERS investment earnings of at
least 6.8% per year-
UAL will be fully paid off in FYE 2029.

UAL reduction is estimated based on CalPERS preliminary returns (14.8% gain) and does not include any other
possible adjustments. Actual UAL change will be different.

Pension Plan Estimated 2026
UAL Change
Safety - Police ($1,539,000)
Miscellaneous ($1,993,000)
TOTAL ($3,532,000)
140 of 280
City of Cotati – 2026 Pension Liability Update 09/08/2026 7 2026 Investment Impact Estimate
Historical Payments
Sources: 06/30/2025 CalPERS
Actuarial Reports, Loan
Amortization Schedules,
CalPERS, and UAL estimates
UAL and Debt Service
Payments only – no
normal cost
141 of 280
City of Cotati – 2026 Pension Liability Update 09/08/2026 8 UAL Policy Implementation
• FYE 2024: ≈$335,000 ADP (negative amortization)
• FYE 2025: ≈$400,000 ADP (negative amortization)
• With ADPs and market performance, FYE 2026 pension plan funded level is estimated at ≈97% => no new ADPs are needed at this time 142 of 280
City of Cotati – 2026 Pension Liability Update 09/08/2026 9 AB 1383: Public Employees’ Retirement Benefits
• What we know
• Applies to PEPRA employees and goes into effect on Jan 1, 2027, if approved • Not retroactive
• Increases Safety employee benefit formulas:
• Maximum benefit percentage 2 years earlier (55 vs 57) - automatic • New top tier (3% at 55, capped at 90% of final pay) – only if bargained 143 of 280
City of Cotati – 2026 Pension Liability Update 09/08/2026 10 AB 1383: Public Employees’ Retirement Benefits
• What it could cost the City in year one*
• Higher Normal Cost: Rates increase by up to 5.5% of pensionable payroll (shared by City and employees).
• Higher UAL: Projected total increase of up to $135,000 * Ridgeline Estimate – Based on CalPERS’ methodology using FYE 2025 payroll data, subject to change 144 of 280
09/08/2026 11
Questions?
Dmitry Semenov
Ridgeline Municipal Strategies, LLC
(916) 250-1590
[email protected]
RidgelineMuni.com
145 of 280
Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: APPROVAL OF MEASURE O GRANT AGREEMENT -

MOBILE CRISIS TEAM SUPPORT
Date: September 8, 2026
Written by: Damien O'Bid, City Manager
Recommendation
It is recommended that the City Council adopt a motion authorizing the City Manager to execute a grant agreement for Measure O funds to support mobile crisis team operations in the City of Cotati, Rohnert Park and Sonoma State University for FY 26-27 through FY 28-29.

Background
The City of Cotati, in partnership with Rohnert Park, formed a mobile crisis response team in 2021, based on the Cahoots model from the Whitebird Clinic in Oregon. The team was named Specialized Assistance for Everyone (SAFE) for consistency with the Petaluma SAFE team, intended to reduce public confusion. Sonoma State University (SSU) subsequently joined the Cotati-Rohnert Park SAFE team in 2022, to form the current Cotati-Rohnert Park-SSU SAFE team. The SAFE team is operated by Petaluma Peoples Services Center (PPSC) under a fourparty contract between PPSC, Cotati, Rohnert Park and SSU.

Initially run as a part-time pilot program, the SAFE team became operational 24/7 during FY 24-

25. During the early years of the program, the SAFE team was funded by a mix of State grants, Measure O grants, Cotati Measure S funds, and other local in-kind support. In FY 24-25, the first year the SAFE team was fully operational 24/7, the bulk of the funding came from a Measure O grant with local in-kind support. However, each year, the County of Sonoma declined to enter into a multi-year funding agreement. This resulted in program funding uncertainty each year until grant funding was secured, so the SAFE team has consistently requested multi-year grant funding for program stability. 146 of 280
Analysis/Discussion
The attached grant agreement for Measure O funds is a three-year agreement, beginning July 1, 2026. A priority of the County of Sonoma, Department of Health Services (DHS) is to begin collecting the necessary information to begin Medi-Cal billing, across all mobile crisis teams (InResponse, SAFE and MST). Therefore, the primary requirement of the grant agreement is that the SAFE team meets the eligibility requirements for Medi-Cal billing and collects the necessary information in the field using a data platform called SMART Care. Aside from a variety of certifications to qualify as a Medi-Cal provider, a new element for FY 26-27 to meet the requirements for the higher Medi-Cal reimbursement rate is the addition of a telehealth licensed clinician. As of September 1, 2026, the SAFE team is fully Medi-Cal compliant and is live with Medi-Cal data collection for reimbursement billing.

The Cotati-Rohnert Park-SSU SAFE team splits costs (and grant funds) among the members using a two-year rolling average of actual calls for service by jurisdiction. DHS did not want to have variable splits between the jurisdictions in years 2 and 3, so Cotati volunteered to act as the fiscal agent for the Measure O grant. This means that Cotati will bill DHS each year on behalf of the entire team, and Rohnert Park and SSU would then bill Cotati for reimbursement. This would allow for the internal cost splits to continue to vary each year and simplify the contracting with DHS. In FY 26-27, the cost/grant split is 88% (Rohnert Park), 9% (Cotati) and 3% (SSU), based on the two-year average of calls for service.

Moving forward, a priority for all mobile crisis teams is to work collaboratively to secure sustainable funding for this program. The intent is to begin using a common data collection platform (SMART Care) across all mobile crisis teams to ensure uniform data definitions and collection for reporting but also to begin to understand the diversions that benefit from the mobile crisis service so that they can participate in the funding of the program. Additionally, future Medi-Cal reimbursement rates are uncertain. In the FY 26-27 State budget, one time funding was included to maintain the 85% Medi-Cal reimbursement rate. However, there is concern that this won‘t be included in future budgets, dropping the reimbursement rate to 50%.

DHS has also stated to the Board of Supervisors that they intend to work towards a consolidated model of mobile crisis by July 1, 2027. The expectation is that a multi-jurisdictional working group (including jurisdictional representatives of both SAFE teams, InResponse and MST) will be forming shortly to begin discussing this.

Financial Considerations
The City is proposed to act as the fiscal agent for the Cotati-Rohnert Park-SSU SAFE team. The grant funds are intended to pay the “hard” contract costs of PPSC as well as the vehicle purchase/maintenance costs. The other in-kind support costs, such as administrative management, dispatch support, etc., will be funded by the respective jurisdictions as part of the partnership with DHS.

Although the proposed grant agreement is for three years, funds have been pushed forward into 147 of 280
years 1 and 2 to allow the jurisdictions some “runway” to determine a long term sustainable fiscal and operational model. If alternate fund sources are not identified by the end of year 2, it is unlikely that the SAFE team would continue to operate in its current form.

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.

Page 1 of 32 ends

AGREEMENT BETWEEN COUNTY OF SONOMA

AND THE CITY OF COTATI FOR

MOBILE CRISIS RESPONSE PROGRAM FUNDING
This agreement (hereinafter “Agreement”) dated on _____________________, 2026 (hereinafter “Effective Date”) is by and between the County of Sonoma, a political subdivision of the State of California (hereinafter “County”) and City of Cotati (hereinafter “City”).

R E C I T A L S
WHEREAS, the California Department of Health Services has implemented a new MediCal Mobile Crisis Benefit requiring counties to provide rapid response, individual assessment and community-based stabilization to Medi-Cal beneficiaries who are experiencing a behavioral health crisis;
WHEREAS, the Sonoma County Department of Health Services is partnering with the cities of Santa Rosa, Petaluma, Rohnert Park, and Cotati to expand their services in implementing this benefit through a regional collaboration approach; WHEREAS, the Sonoma County Board of Supervisors allocated Measure O Sales Tax revenue in May 2023 to support the implementation of these city-level programs and participate in a collaborative evaluation of these programs along with the Department of Health Services’ Mobile Support Team;
WHEREAS, Cotati’s mobile crisis response team is consistent with the requirements of the Medi-Cal Mobile Crisis benefit that utilizes behavioral health and emergency medical service teams to act as first responders to service calls that do not require law enforcement resources; WHEREAS, the cities of Cotati, Rohnert Park, Petaluma, and the Sonoma State University are partnering with Petaluma People Services Center to operate SAFE (Specialized Assistance for Everyone), to improve response to mental illness and substance abuse crises, and will operate teams of specially trained civilian first responders who respond to and proactively address calls for service that have traditionally (and unnecessarily) burdened law enforcement, emergency medical services and health care providers; and
WHEREAS, in the judgment of the Board of Supervisors, it is necessary and desirable to provide funding to the City of Cotati as a one-time investment to assist in expanding the capabilities of their mobile support team program.

WHEREAS, County personnel provide clinical services for the Cotati mobile support team, as described in Exhibit A (Scope of Work and Budget).

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, the parties hereto agree as follows:

A G R E E M E N T

1. Contract Exhibits
This Agreement includes the following exhibits, which are hereby incorporated by reference as though fully set forth herein. In the event of a conflict between the terms in the body of this Agreement and any of the following exhibits, the terms in the body of this Agreement shall control.
149 of 280
Agreement No: 2026-6419-A00

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Exhibit A. Scope of Work and Budget
Exhibit B. Insurance Requirements
Exhibit C. Special Terms and Conditions – Information Privacy & Security – HIPAA Business Associate Addendum
Exhibit D. Mobile Support Team (MST) SmartCare “On Demand” Report Parameters

2. Funding Amount
County agrees to provide funding (“Program Funds”) to City in the amount of $3,200,000 upon execution of this Agreement.

3. Use of Program Funds
City shall use Program Funds as described in Exhibit A (Scope of Work and Budget), attached hereto and incorporated herein by this reference (hereinafter “Exhibit A”). In the event City does not complete efforts as described in Exhibit A by the end of the term of this Agreement, City shall return to the County all unused Program Funds provided to City under this Agreement. City shall serve as the fiscal agent between City, Rohnert Park, and the Sonoma State University.

Under this Agreement, County shall provide payment to City as described in Exhibit A, and City shall be solely responsible for disbursing funds appropriately to Rohnert Park, and the Sonoma State University.

4. Documentation of Project
City shall provide a written report on the use of Program Funds, and any other reasonable information the County should request including data requested as part of the collaborative evaluation efforts, within ten days after the term end date of this Agreement.

5. Invoices
City agrees to provide County with invoices demonstrating City’s expenditures under this Agreement with sufficient detail and frequency to reasonably demonstrate compliance with this Program Funding agreement.

All billing and payment invoices shall be submitted via email or to the following address:

Sonoma County Department of Health Services
Fiscal Department
Attention: Accounts Payable
1450 Neotomas Avenue, Suite 200
Santa Rosa, CA 95405
[email protected]

6. Term and Termination

6.1. Term
The term of this Agreement shall be from July 1, 2026 to June 30, 2029.

6.2. Termination
Notwithstanding any other provision of this Agreement, at any time and without cause, County shall have the right, in its sole discretion, to terminate this Agreement by giving 5 days’ advance written notice to City.
150 of 280
Agreement No: 2026-6419-A00

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7. Publicity
Publicity generated by City for work performed or services offered or funded by this Agreement during the term of this Agreement and for one year following expiration of this Agreement shall make reference to the contribution of the County in making the project possible.

8. Non-Discrimination
City agrees to comply with applicable federal state and local laws prohibiting discrimination in employment or in the provision of services because of race, color, religion, national origin, age, sex, sexual orientation or mental or physical handicap or any other protected category. City agrees to comply with Sections 19-30 through 19-40 of the Sonoma County Code, prohibiting discrimination due to HIV infection or a related condition.

9. Indemnification
City agrees to accept all responsibility for loss or damage to any person or entity, including but not limited to County, and to defend, indemnify, hold harmless, reimburse and release County, its officers, agents and employees, from and against any and all actions, claims, damages, disabilities, liabilities and expense, including but not limited to attorney’s fees and the cost of litigation incurred in the defense of claims as to which this indemnity applies or incurred in an action by County to enforce the indemnity provisions herein, whether arising from personal injury, property damage or economic loss of any type, that may be asserted by an person or entity, including City, arising out of or in connection with the performance or obligations of City or its agents’, employees’, contractors’, subcontractors’, or invitees’, including Rohnert Park and the Sonoma State University, under this Agreement hereunder, whether or not there is concurrent negligence on the part of the County, but to the extent required by law, excluding liability due to the sole or active negligence or due to the willful misconduct of the County. If there is a possible obligation to indemnify, City’s duty to defend exists regardless of whether it is ultimately determined that there is not a duty to indemnify. County shall have the right to select its own legal counsel at the expense of City. This indemnification obligation is not limited in any way by any limitation on the amount or type of damages or compensation payable to or for City or its agents under workers’ compensation acts, disability, benefit acts, or other employee benefit acts.

10. Confidentiality
Contractor agrees to maintain the confidentiality of all patient medical records and client information in accordance with all applicable state and federal laws and regulations, including the requirement to implement reasonable and appropriate administrative, physical and technical safeguards to protect all confidential information. This Section 10 shall survive termination of this Agreement.

In addition, when subcontracting for provider services under this contract, Contractor must include all language from, “Exhibit C. Special Terms and Conditions – Information Privacy & Security – HIPAA Business Associate Addendum” in the provider sub-contract.

11. Compliance With Laws
City agrees to comply, and to ensure compliance by its employees, subcontractors, and agents with all applicable federal, state and local laws, regulations, and statutes and policies, applicable to the services provided under this Agreement as they exist now and as they are changed, 151 of 280
Agreement No: 2026-6419-A00

Page 4 of 32 ends

amended, or modified during the term of this Agreement. To the extent there is a conflict between federal or state law or regulation and a provision in this Agreement, City shall comply with the federal or state law or regulation. Noncompliance during the term of the Agreement will be considered a material breach and may result in termination of the Agreement or pursuit of other legal or administrative remedies.

12. Right to Audit and Inspect
City understands and agrees to permit County the right to audit and inspect all records, notes and writings of any kind to the extent permitted by law, for the purpose of monitoring City compliance with the terms and conditions of this Agreement.

13. Obligations after Termination
The following shall remain in full force and effect after termination of this Agreement:
(1) Article 8, Non-Discrimination, (2) Article 9, Indemnification, (3) Article 10, Confidentiality, and (4) Article 11, Compliance With Laws.

14. No Political or Religious Activity
County funds shall be used only for the purposes specified in this Agreement and in any attachments thereto. No County funds shall be used for any political activity, or to further the election or defeat of any candidate for political office. No County funds shall be used for purposes of religious worship, instruction, or proselytizing.

15. Merger
This writing is intended both as the final expression of the Agreement between the parties hereto with respect to the included terms and as a complete and exclusive statement of the terms of the Agreement, pursuant to Code of Civil Procedure 1856. No modification of this Agreement shall be effective unless and until such modification is evidenced by a writing signed by both parties.

16. Severability
In the event that any provision of this Agreement shall be held by a court to be invalid or illegal for any reason, said invalidity or illegality shall not affect the remaining provisions of this Agreement.

17. Method and Place of Giving Notice
All notices shall be made in writing and may be given by personal delivery or by mail. Notices sent by mail should be addressed as follows:

To County: To City:

Behavioral Health Director
Behavioral Health Division
Department of Health Services
County of Sonoma
2227 Capricorn Way, Suite 207
Santa Rosa, CA 95407
707-565-4850
Damien O'Bid, City Manager
City of Cotati
201 West Sierra Avenue
Cotati, CA 94931
707-792-4600
[email protected]
And when so addressed, shall be deemed given upon deposit in United States mail, postage prepaid. In all other instances, notices shall be deemed given at the time of actual delivery. 152 of 280
Agreement No: 2026-6419-A00

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Changes may be made in the names and addresses of the person to whom notices are to be given by giving notice pursuant to this paragraph.

18. Assignment/Delegation
Neither party shall assign, sublet, or transfer any interest in or delegate any duty under this Agreement without the written consent of the other, and no assignment shall have any force or effect whatsoever unless and until the other party shall have so consented.

19. Status of Parties
This Agreement shall not be construed to create a joint venture or partnership. Neither party is the agent of the other for any purpose. There are no third party beneficiaries to this Agreement, and it may be enforced only by the parties hereto.

20. Insurance
With respect to performance of work under this Agreement, City shall maintain and shall require all of its subcontractors, contractors, and other agents to maintain insurance as described in Exhibit B (Insurance Requirements), which is attached hereto and incorporated herein by this reference.
§ The remainder of this page has intentionally been left blank. § 153 of 280
Agreement No: 2026-6419-A00

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date.

CITY OF COTATI:

Damien O’Bid, City Manager Dated
City of Cotati
COUNTY OF SONOMA:

Certificate of Insurance on File with County:

Nolan Sullivan, Director Dated
Department of Health Services
Approved as to Substance:

Division Director or Designee Dated
Approved as to Form:

Sonoma County Counsel Dated
Approved as to Substance:

Privacy & Security Officer or Designee Dated
8/19/2026
154 of 280
Agreement No: 2026-6419-A00
Exhibit A

Page 7 of 32 ends

Exhibit A. Scope of Work and Budget
I. Program/Project Overview:

Agency/Organization Name: City of Cotati
Program/Project Name: Mobile Crisis Services Expansion
Geographic Areas Served:

Central County (Santa Rosa)
North County
South County
East County
West County
II. Sonoma County Contract Contact Persons:

Contract Manager:

Name: David Evans
Phone: 707-565-4935
Email: [email protected]
III. Purpose:

State of California Department of Health Care Services Behavioral Health Information Notice 23-025 (BHIN 23-025) established a Medi-Cal Benefit for Mobile Crisis services providing rapid response, assessment, and stabilization to individuals experiencing a mental health and/or substance use disorder (SUD) crisis.
a. Under this agreement, the City of Cotati, Rohnert Park and Sonoma State will retain the services of a qualified subcontractor to operate mobile crisis services as defined by the California Department of Health Care Services (DHCS) Behavioral Health Information Notice No. 23-025 (BHIN 23-025) and specified by and in partnership with Sonoma County Department of Health Services (DHS) Behavioral Health Division. City of Cotati will act as the fiscal agent for City of Rohnert Park and Sonoma State University. b. The City of Cotati, Rohnert Park and Sonoma State will require its qualified subcontractor to retain a Licensed Practitioner of the Healing Arts (LPHA), either through a formal partnership with another legal entity or through internal hiring practices, in accordance with the requirements set forth by the California Department of Health Care Services (DHCS) Behavioral Health Information Notice No. 23-025 (BHIN 23- 025).
c. The City of Cotati, Rohnert Park and Sonoma State will require their subcontractor to use Department of Health Services (DHS) Behavioral Health Division electronic health record, SmartCare for the collection and reporting of all data fields as listed in Mobile Support Team (MST) SmartCare “On Demand” Report Parameters which is hereby incorporated by reference as and attached hereto as Exhibit D (Mobile Support Team (MST) SmartCare “On Demand” Report Parameters) (hereinafter “Exhibit D”). d. All calls for service shall adhere to the guidelines outlined in BHIN 23-025, regardless of the individual’s Medi-Cal or insurance status.
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Exhibit A

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e. The City of Cotati, Rohnert Park and Sonoma State will require their qualified subcontractor to adhere to Exhibit C, the Special Terms and Conditions – Information Privacy & Security – HIPAA Business Associate Addendum as may be subsequently amended due to changes in the law or by mutual consent of the City of Cotati, Rohnert Park and Sonoma State and County.

IV. Requirements
a. Results-Based Accountability (RBA) Plan
Upon execution of this contract, County and Contractor may collaboratively develop a Results-Based Accountability (RBA) evaluation plan to support program monitoring and continuous quality improvement. The plan will include performance measures that disaggregate data by client demographics to evaluate program effectiveness across all populations served.

As part of the RBA plan implementation, Contractor may be required to:
• Attend one RBA training session;
• Collect and submit performance measure data as specified; and • Participate in periodic data review meetings with the County. 156 of 280
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Exhibit A

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V. Budget:

Direct Personnel Expenses Combined
FTE
FY 26-27
Total ($)
FY 27-28
Total ($)
FY 28-29
Total ($)
SAFE Team Director 0.36 42,399 44,095 45,858
SAFE Team Manager 0.36 31,150 32,396 33,692
SAFE Training Manager 0.36 33,313 34,646 36,03
Part-time Counselor 0.1 8,592 8,936 9,294
SAFE Team Navigator 0.36 25,958 26,997 28,077
EMT Specialists 5.5 346,240 360,090 374,493
Crisis Intervention Specialists 5.5 346,240 360,090 374,493 Total Direct Personnel 833,893 867,249 901,938
Total Staff Benefits (23% of Salaries) 191,795 199,467 207,446 Operating Expenses
Dues & Fees 1,300 1,352 1,406
Duplication & Printing 130 135 141
SAFE Medical & Other Supplies 15,600 16,224 16,873
Staff Training 1,560 1,622 1,687
Staff Travel 2,080 2,163 2,250
Food Supplies 1,352 1,406 1,462
Furniture & Equipment 5,200 5,408 5,624
Equipment Repair & Maintenance 14,560 15,142 15,748
Communications 15,600 16,224 16,873
Total Operating Expenses 57,382 59,677 62,064
Total Indirect Expenses (15% de minimis rate) 162,461 168,959 175,717 PPSC Subtotal 1,245,531 1,295,352 1,347,166
24/7 COTS Telehealth Clinician (x 0.5) 167,085 169,262 171,467 SAFE Vehicle Costs 68,361 68,970 69,602
Indirect Costs (10%) 6,836 6,897 6,960
Subtotal 242,282 245,128 248,030
Grand Total 1,487,813 1,540,480 1,595,196
Agency Supplemental/Other Sources 0 (128,293) (1,295,196) DHS Funding Request 1,487,813 1,412,187 300,000
*Payment Method: A lump sum payment will be issued to the City of Cotati at the beginning of each fiscal year upon receipt of an invoice. The City of Rohnert Park and Sonoma State University will then invoice the City of Cotati for their respective shares. For purposes of this Agreement, Rohnert Park and the Sonoma State University shall be considered subcontractors of the City of Cotati.
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Exhibit B (Insurance Template 17)

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Exhibit B. Insurance Requirements
City shall maintain insurance as described below unless such insurance has been expressly waived by the attachment of a Waiver of Insurance Requirements. The insurance shall be maintained for 1 year after all Program Funds have been disbursed.

County reserves the right to review any and all of the required insurance policies and/or endorsements, but has no obligation to do so. Failure to demand evidence of full compliance with the insurance requirements set forth in this Agreement or failure to identify any insurance deficiency shall not relieve City from, nor be construed or deemed a waiver of, its obligation to maintain the required insurance at all times during the performance of this Agreement.

1. Workers Compensation and Employer's Liability Insurance a. Workers Compensation insurance with statutory limits as required by the Labor Code of the State of California.
b. Employer's Liability with minimum limits of $1,000,000 per Accident; $1,000,000 Disease per employee; $1,000,000 Disease per policy.
c. Required Evidence of Insurance: Certificate of Insurance.

2. General Liability Insurance
a. Commercial General Liability Insurance on a standard occurrence form, no less broad than Insurance Services Office (ISO) Form CG 00 01.
b. Minimum Limits: $1,000,000 per Occurrence; $2,000,000 General Aggregate; $2,000,000 Products/Completed Operations Aggregate. The required limits may be provided by a combination of General Liability Insurance and Commercial Umbrella Liability Insurance. If City maintains higher limits than the specified minimum limits, County requires and shall be entitled to coverage for the higher limits maintained by City. c. Any deductible or self-insured retention shall be shown on the Certificate of Insurance. If the deductible or self-insured retention exceeds $25,000, it must be approved in advance by County. City is responsible for any deductible or self-insured retention and shall fund it upon County's written request, regardless of whether City has a claim against the insurance or is named as a party in any action involving the County. d. “County of Sonoma, its Officers, Agents, and Employees” shall be additional insureds for liability arising out of City's ongoing operations. (ISO Endorsement CG 20 26 or equivalent).
e. The insurance provided to the additional insureds shall be primary to, and non-contributory with, any insurance or self-insurance program maintained by them. f. The policy definition of “insured contract” shall include assumptions of liability arising out of both ongoing operations and the products-completed operations hazard (broad form contractual liability coverage, including the “f” definition of insured contract in ISO Form CG 00 01 or equivalent).
g. The policy shall cover inter-insured suits between County and City and include a “separation of insureds” or “severability” clause which treats each insured separately. h. Required Evidence of Insurance
i. Copy of the additional-insured endorsement or policy language granting additionalinsured status; and ii. Certificate of Insurance.
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3. Automobile Liability Insurance
a. Minimum Limits: $1,000,000 combined single limit per accident. b. Insurance shall apply to all owned vehicles if City owns vehicles. c. Insurance shall apply to hired and non-owned vehicles. d. Required Evidence of Insurance: Certificate of Insurance.

4. Professional Liability/Errors and Omissions Insurance a. Minimum Limit: $1,000,000 per claim or per occurrence. b. Any deductible or self-insured retention shall be shown on the Certificate of Insurance. If the deductible or self-insured retention exceeds $25,000, it must be approved in advance by County.
c. If the insurance is on a Claims-Made basis, the retroactive date shall be no later than the commencement of the work.
d. Required Evidence of Insurance: Certificate of Insurance.

5. Standards for Insurance Companies
Insurers, other than the California State Compensation Insurance Fund, shall have an A.M. Best's rating of at least A:VII.

6. Documentation
a. All required Evidence of Insurance shall be submitted prior to the execution of this Agreement. City agrees to maintain current Evidence of Insurance on file with County for the required period of insurance.
b. The name and address for Additional Insured endorsements and Certificates of Insurance is:

County of Sonoma, its Officers, Agents, and Employees
Attn: DHS – Contract & Board Item Development Unit
1450 Neotomas Avenue, Suite 200
Santa Rosa, CA 95405
[email protected]
c. Required Evidence of Insurance shall be submitted for any renewal or replacement of a policy that already exists at least 10 days before expiration or other termination of the existing policy.
d. City shall provide immediate written notice if: (1) any of the required insurance policies is terminated; (2) the limits of any of the required policies are reduced; or (3) the deductible or self-insured retention is increased.
e. Upon written request, certified copies of required insurance policies must be provided within 30 days.

7. Policy Obligations
City's indemnity and other obligations shall not be limited by the foregoing insurance requirements.
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Exhibit C (Privacy #4 – v20231218)

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Exhibit C. Special Terms and Conditions – Information Privacy & Security – HIPAA Business Associate Addendum
This Business Associate Addendum (“Addendum”) supplements and is made a part of the services agreement (“Agreement”) by and between County of Sonoma (“County”) and City of Cotati (“Business Associate”).

R E C I T A L S
WHEREAS, County is a Hybrid Entity as defined under 45 Code of Federal Regulations (“CFR”) Section 164.103;
WHEREAS, City of Cotati is a Business Associate as defined under 45 CFR Section 160.103;
WHEREAS, County wishes to disclose certain information to Business Associate pursuant to the terms of Addendum, some of which information may constitute Protected Health Information (“PHI”), including electronic Protected Health Information (“ePHI”); WHEREAS, County and Business Associate intend to protect the privacy and provide for the security of PHI, including ePHI, disclosed to Business Associate pursuant to Addendum in compliance with the Health Insurance Portability and Accountability Act of 1996, Public Law 104 191 (“HIPAA”), regulations promulgated thereunder by the U.S. Department of Health and Human Services, and other applicable laws; and
WHEREAS, as part of the HIPAA Regulations, the Privacy Rule and Security Rule require County to enter into a contract containing specific requirements with Business Associate prior to the disclosure of PHI, including ePHI, as set forth in, but not limited to, 45 CFR Sections 164.502(e), 164.504(e), and 164.308(b)(1) and contained in Addendum.

NOW THEREFORE, in consideration of the mutual promises below and the exchange of information pursuant to Addendum, the parties agree as follows:

Part I: HIPAA Business Associate Addendum (Applies to HIPAA Business Associates)

1. Definitions
Terms used, but not otherwise defined, in Addendum shall have the same meaning as those terms in the HIPAA Regulations as set forth at 45 CFR Sections 160.103, 164.304, and 164.501.

A. HIPAA Regulations. “HIPAA Regulations” shall mean the Privacy, Security, Breach Notification, and Enforcement Rules as set forth at 45 CFR Part 160 and Part 164.

B. Breach. “Breach” shall mean the acquisition, access, use, or disclosure of PHI in a manner not permitted under 45 CFR Part 164 Subpart E and that compromises the security or privacy of PHI as defined at 45 CFR Section 164.402.

C. Business Associate. “Business Associate” shall have the same meaning as the term “Business Associate” as set forth at 45 CFR Section 160.103.

D. Covered Entity. “Covered Entity” shall have the meaning given to such term under the Privacy Rule and the Security Rule, including, but not limited to, 45 CFR Section 160.103. For purposes of this Addendum, this term is intended to mean the County of Sonoma.
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Exhibit C (Privacy #4 – v20231218)

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E. Data Aggregation. “Data Aggregation” shall have the same meaning as the term “Data aggregation” as set forth at 45 CFR Section 164.501.

F. Designated Record Set. “Designated Record Set” shall have the same meaning as the term “designated record set” as set forth at 45 CFR Section 164.501.

G. Disclosure. “Disclosure” shall mean the release of, transfer of, provision of access to, or divulging in any manner information outside the entity holding the information in accordance with 45 CFR Section 160.103.

H. Health Care Operations. “Health Care Operations” shall have the same meaning as “Health care operations” as set forth at 45 CFR Section 164.501.

I. Individual. “Individual” shall have the same meaning as the term ''Individual'' as set forth at 45 CFR Section 164.501, except that the term “Individual” as used in this Addendum shall also include a person who qualifies as a personal representative in accordance with 45 CFR Section 164.502(g).

J. Minimum Necessary. “Minimum Necessary” shall mean the minimum amount of PHI necessary for the intended purpose, as set forth at 45 CFR Sections 164.502(b) and 164.514(d): Standard: Minimum Necessary.

K. Privacy Rule. “Privacy Rule” shall mean the HIPAA Standards for Privacy of Individually Identifiable Health Information as set forth at 45 CFR Part 160 and 45 CFR Part 164 Subparts A and E.

L. PHI. “PHI” shall have the same meaning as the term “protected health information” as set forth at 45 CFR Section 160.103, except limited to the information received from Covered Entity or created, received, maintained, or transmitted by Business Associate on behalf of Covered Entity.

M. Required by Law. “Required by law” shall have the same meaning as the term “required by law” as set forth at 45 CFR Section 164.103.

N. Secretary. “Secretary” shall mean the Secretary of the United States Department of Health and Human Services (“DHHS”) or his/her designee.

O. Security Incident. “Security Incident” shall mean the attempted or successful unauthorized access, use, disclosure, modification, or destruction of personally identifiable information. . A Security Incident includes the attempted or successful unauthorized access, use, disclosure, modification, or destruction of or interference with systems operations in an information system which processes PHI that is under the control of Covered Entity or Business Associate of Covered Entity, but does not include minor incidents that occur on a daily basis, such as scans, “pings”, or unsuccessful random attempts to penetrate computer networks or servers maintained by Business Associate.

P. Security Rule. “Security Rule” shall mean the HIPAA Security Standards for the Protection of ePHI as set forth at 45 CFR Part 160 and 45 CFR Part 164 Subparts A and E.

Q. Subcontractor. “Subcontractor” shall mean a subcontractor of Business Associate that creates, receives, maintains, or transmits PHI on behalf of Business Associate. 161 of 280
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R. Unsecured PHI. “Unsecured PHI” shall have the same meaning as the term “unsecured protected health information” as set forth at 45 CFR Section 164.402, except limited to the information received from Covered Entity or created, received, maintained, or transmitted by Business Associate on behalf of Covered Entity.

S. Use. “Use” shall mean, with respect to individually identifiable health information, the sharing, employment, application, utilization, examination, or analysis of such information within an entity that maintains such information in accordance with 45 CFR Section 160.103.

2. Obligations of Business Associate
Business Associate acknowledges that Business Associate is directly required to comply with the HIPAA Regulations and that Business Associate (including its subcontractors) may be held directly liable for and be subject to penalties for failure to comply. . To the extent Business Associate is to carry out one or more of County's obligations under 45 CFR Part 164 Subpart E of the Privacy Rule, Business Associate agrees to comply with the requirements of 45 CFR Part 164 Subpart E that apply to County in the performance of such obligations.

3. Use or Disclosure of Protected Health Information
Except as otherwise provided in Addendum, Business Associate shall use and/or disclose PHI only as necessary to perform functions, activities, or services documented in the Scope of Work (“Exhibit A”) section of this Agreement for or on behalf of County, provided that such use and/or disclosure does not violate the HIPAA Regulations. . Business Associate agrees not to further use or disclose PHI other than as permitted or required by Addendum or as required by law. . Business Associate must make reasonable efforts to limit PHI to the Minimum Necessary to accomplish the intended purpose of the use, disclosure, or request. The uses of PHI may not exceed the limitations applicable to County under the HIPAA Regulations.

4. Designation of a Privacy Officer and a Security Officer A. Contractor shall designate a qualified and trained Security Officer to oversee its data security program who shall be responsible for carrying out the requirements of the HIPAA Security Rule (45 CFR Part 164 Subpart C)
B. Contractor shall designate a qualified and trained Privacy Officer to oversee its information privacy program who shall be responsible for carrying out the requirements of the HIPAA Privacy Rule (45 CFR Part 164 et. seq.)

5. Safeguarding Protected Health Information
Business Associate shall use appropriate safeguards to prevent the use or disclosure of PHI other than as provided for by Addendum. Business Associate shall implement administrative, physical, and technical safeguards and shall comply with 45 CFR Part 164 Subpart C with respect to ePHI that reasonably and appropriately protect the confidentiality, integrity, and availability of ePHI created, received, maintained, or transmitted on behalf of County and prevent the use or disclosure of PHI other than as provided for by Agreement.

A. Encryption Requirements for Transmission and Storage of Electronic Data. All ePHI transmitted to Business Associate by County, and/or for or on behalf of County by Business Associate, and/or to County by Business Associate shall be provided or transmitted using encryption methods which renders such ePHI unusable, unreadable, or 162 of 280
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Exhibit C (Privacy #4 – v20231218)

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indecipherable by unauthorized persons. All ePHI stored by Business Associate on electronic media shall be protected using encryption methods which render such ePHI unusable, unreadable, or indecipherable by unauthorized persons. Encryption of ePHI in transit or at rest shall use a technology or methodology set forth by the Secretary in the guidance issued under Section 13402(h)(2) of Public Law 111-5, and in accordance with the National Institute of Standards Technology (NIST) and Standards and Federal Information Processing Standards (FIPS), as applicable.

B. Destruction of PHI on paper, film, or other hard copy media must involve either shredding or otherwise destroying the PHI so that it cannot be read or reconstructed.

C. Should any employee or subcontractor of Business Associate have direct, authorized access to County computer systems that contain ePHI, Business Associate shall immediately notify County of any change of such personnel (e.g., employee or subcontractor termination, or change in assignment where such access is no longer necessary) in order for County to disable the previously authorized access.

6. Notification of Breach, Unauthorized Use or Improper Disclosure Business Associate must notify County in writing of any access, use, or disclosure of PHI not permitted or provided for by Addendum and/or any actual or suspected use or disclosure of data in violation of any applicable federal or state laws or regulations of which Business Associate becomes aware. A breach or unauthorized access, use, or disclosure shall be treated as discovered by Business Associate the first day on which such unauthorized access, use, or disclosure is known, or should reasonably have been known, to Business Associate or to any person, other than the individual committing the unauthorized disclosure, that is an employee, officer, subcontractor, agent, or other representative of Business Associate.

A. Notification must be made as soon as practicable, but not later than 24 hours after discovery, by telephone call to 707-565-5703 plus e-mail to:

DHS-Privacy&[email protected], and will include:
1) The identification of each Individual whose PHI has been, or is reasonably believed by Business Associate to have been, accessed, acquired, used, or disclosed; and 2) A description of any remedial action taken or proposed to be taken by Business Associate.

B. Business Associate must provide a complete report of the investigation to the County Privacy and Security Officer within ten (10) working days of the discovery of the breach or unauthorized use or disclosure. The report shall be submitted on the “Privacy Incident Report” form and shall include an assessment of all known factors relevant to a determination of whether a breach occurred. The report shall also include a full, detailed corrective action plan, including information on measures that were taken to halt and/or contain the improper use or disclosure. If the County requests information in addition to that listed on the “Privacy Incident Report” form, Contractor shall make reasonable efforts to provide the County with such information.

C. Business Associate must mitigate any harm that results or may result from the breach, security incident, or unauthorized access, use, or disclosure of unsecured PHI by 163 of 280
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Exhibit C (Privacy #4 – v20231218)

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Business Associate or its employees, officers, subcontractors, agents, or other representatives.

D. Following a breach or unauthorized access, use, or disclosure of unsecured PHI, Business Associate agrees to take any and all corrective action necessary to prevent recurrence, to document any such corrective action, and to make this documentation available to County.

7. Agents and Subcontractors of Business Associate
In accordance with 45 CFR Sections 164.502(e)(1)(ii) and 164.308(b)(2), and to the extent that Business Associate uses any agent, including a subcontractor, to which Business Associate provides PHI received from, created by, maintained by, or received by Business Associate on behalf of County, Business Associate shall execute an agreement with such agent or contractor containing a requirement to ensure compliance with the same restrictions and conditions that apply through Addendum to Business Associate with respect to PHI.

8. Access to Protected Health Information
At the request of County, and in the time and manner designated by County, Business Associate shall provide access to PHI in Designated Record Set to an Individual or County to meet the requirements of 45 CFR Section 164.524, and Ca. Health & Safety Code 123100 et. seq.

9. Amendments to Designated Record Set
Business Associate shall make any amendment(s) to PHI in Designated Record Set as directed or agreed to by County, or to take other measures necessary to satisfy County's obligations under 45 CFR Section 164.526.

10. Accounting of Disclosures
Business Associate shall document and make available such disclosures of PHI and information related to such disclosures as would be required for County to respond to a request by an Individual for an accounting of disclosures of PHI in accordance with 45 CFR Section 164.528.

11. Records Available to County, State, and Secretary
Business Associate shall make available internal practices, books, and records related to the use, disclosure, and privacy protection of PHI received from County, or created, maintained, or received by Business Associate on behalf of County, to County, State, or the Secretary for the purposes of investigating or auditing Business Associate's compliance with the HIPAA Regulations in the time and manner designated by County, State, or Secretary.

12. Return or Destruction of Protected Health Information A. Upon termination of Addendum for any reason, Business Associate shall:
1) Return all PHI received from County; return all PHI created, maintained or received by Business Associate on behalf of County; and return all PHI required to be retained by the HIPAA Regulations; OR:
2) at the discretion of County, destroy all PHI received from County, or created, maintained, or received by Business Associate on behalf of County. Destruction of PHI on paper, film, or other hard copy media must involve shredding or otherwise destroying the PHI in a manner which will render the PHI unreadable, 164 of 280
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undecipherable, or unable to be reconstructed. Business Associate shall certify in writing that such PHI has been destroyed.

B. In the event Business Associate determines that returning or destroying PHI is not feasible, Business Associate shall provide County notification of the conditions that make return or destruction not feasible. Business Associate shall extend the protections of this Addendum to such PHI and limit further uses and disclosures of such PHI to those purposes that make the return or destruction infeasible, for so long as Business Associate maintains such PHI.

13. Data Aggregation
Business Associate may provide data aggregation services related to the health care operations of County as permitted by 45 CFR Section 164.504(e)(2)(i)(B).

14. Other Applicable Laws
Business Associate shall comply with all other applicable laws to the extent that such state confidentiality laws are not preempted by HIPAA.

15. Penalties/Fines for Failure to Comply with HIPAA
Business Associate shall pay any penalty or fine assessed against Covered Entity arising from Business Associate's failure to comply with the obligations imposed by HIPAA.

16. Training of Employees and Enforcement of Requirements Business Associate shall train and use reasonable measures to ensure compliance with the requirements of this Business Associate Agreement by employees who assist in the performance of functions or activities on behalf of County under this Contract and use or disclose protected information; and discipline employees who intentionally violate any provisions.

17. Amendments to Addendum
No amendment of Addendum shall be effective unless and until such amendment is evidenced by a writing signed by the parties. County and Business Associate agree to take such action as is necessary to amend Addendum as required for County to comply with the requirements of the HIPAA Regulations. However, any provision required by HIPAA Regulations to be in Addendum shall bind the parties whether or not provided for in Addendum.

18. Termination of Addendum
If Business Associate should fail to perform any of its obligations hereunder, or materially breach any of the terms of Addendum, County may terminate Addendum immediately upon provision of notice stating the reason for such termination to Business Associate. County, within its sole discretion, may elect to give Business Associate an opportunity to cure such breach.

19. Material Breach
A breach by Business Associate or any of its agents or subcontractors of any provision of Addendum, as determined by County, shall constitute a material breach of Addendum and shall provide grounds for immediate termination of Addendum.
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20. Indemnification
Business Associate agrees to accept all responsibility for loss or damage to any person or entity, including County, and to indemnify, hold harmless, and release County, its officers, agents, and employees from and against any actions, claims, damages, liabilities, disabilities, or expenses that may be asserted by any person or entity, including Business Associate, that arise out of, pertain to, or relate to Business Associate's or its agents', employees', contractors', subcontractors', or invitees' performance or obligations under Agreement. Business Associate agrees to provide a complete defense for any claim or action brought against County based upon a claim relating to such Business Associates' or its agents', employees', contractors', subcontractors', or invitees' performance or obligations under Agreement. Business Associates' obligations under Article 5 (Indemnification) apply whether or not there is concurrent negligence on County's part, but to the extent required by law, excluding liability due to County's conduct.

County shall have the right to select its legal counsel at Business Associate's expense, subject to Business Associate's approval, which shall not be unreasonably withheld. This indemnification obligation is not limited in any way by any limitation on the amount or type of damages or compensation payable to or for Business Associate or its agents under workers' compensation acts, disability benefits acts, or other employee benefit acts.

Part II: Privacy and Security of Personal Information and Personally Identifiable Information Not Subject to HIPAA: (Applies to all contractors)

21. Recitals
A. In addition to the Privacy and Security Rules under the Health Insurance Portability and Accountability Act of 1996 (HIPAA) the County is subject to various other legal and contractual requirements with respect to the personal information (PI) and personally identifiable information (PII) it maintains. These include:
1) The California Information Practices Act of 1977 (California Civil Code §§ 1798 et seq.).
2) The Agreement between the Social Security Administration (SSA) and the County, known as the Information Exchange Agreement (IEA), which incorporates the Computer Matching and Privacy Protection Act Agreement (CMPPA) between the SSA and the California Health and Human Services Agency. The IEA, including the CMPPA, is attached to this Exhibit as Attachment B and is hereby incorporated in this Agreement.

B. The purpose of this Exhibit, Part II is to set forth Contractor’s privacy and security obligations with respect to PI and PII that Contractor may create, receive, maintain, use, or disclose for or on behalf of County pursuant to this Agreement. Specifically, this Exhibit applies to PI and PII which is not Protected Health Information (PHI) as defined by HIPAA and therefore is not addressed in this Exhibit, Part I of this Agreement, the HIPAA Business Associate Addendum.

C. The IEA Agreement referenced in A.2) above requires the County to extend its substantive privacy and security terms to subcontractors who receive data provided to DHCS by the Social Security Administration. If Contractor receives data from County that includes data provided to DHCS by the Social Security Administration, Contractor must comply with the following specific sections of the IEA Agreement: E. Security 166 of 280
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Procedures, F. Contractor/Agent Responsibilities, and G. Safeguarding and Reporting Responsibilities for Personally Identifiable Information (“PII”), and in Attachment 4 to the IEA, Electronic Information Exchange Security Requirements, Guidelines and Procedures for Federal, State and Local Agencies Exchanging Electronic Information with the Social Security Administration. Contractor must also ensure that any agents, including a subcontractor, to whom it provides County data that includes data provided by the Social Security Administration, agree to the same requirements for privacy and security safeguards for such confidential data that apply to Contractor with respect to such information.

D. The terms used in this Exhibit, Part II, but not otherwise defined, shall have the same meanings as those terms have in the above referenced statute and Agreement. Any reference to statutory, regulatory, or contractual language shall be to such language as in effect or as amended.

22. Definitions
A. “Breach” shall have the meaning given to such term under the IEA and CMPPA. It shall include a “PII loss” as that term is defined in the CMPPA.

B. “Breach of the security of the system” shall have the meaning given to such term under the California Information Practices Act, Civil Code § 1798.29(d).

C. Confidential Information shall mean information that is exempt from disclosure under the provisions of the California Public Records Act (Government Code sections 6250-6265) or other applicable state or federal laws
D. “CMPPA Agreement” means the Computer Matching and Privacy Protection Act Agreement between the Social Security Administration and the California Health and Human Services Agency (CHHS).
https://www.ssa.gov/dataexchange/documents/CMPPA%20State%20Model.pdf E. “County PI” shall mean Personal Information, as defined below, accessed in a database maintained by the County, received by Contractor from the County or acquired or created by Contractor in connection with performing the functions, activities and services specified in this Agreement on behalf of the County.

F. “IEA” shall mean the Information Exchange Agreement currently in effect between the Social Security Administration (SSA) and the California Department of Health Care Services (DHCS).
https://www.ssa.gov/dataexchange/documents/IEA(F)%20State%20Level.pdf G. “Notice-triggering Personal Information” shall mean the personal information identified in Civil Code section 1798.29(e) whose unauthorized access may trigger notification requirements under Civil Code § 1709.29. For purposes of this provision, identity shall include, but not be limited to, name, identifying number, symbol, or other identifying particular assigned to the individual, such as a finger or voice print, a photograph or a biometric identifier. Notice-triggering Personal Information includes PI in electronic, paper or any other medium.

H. “Personally Identifiable Information” (PII) shall have the meaning given to such term in the IEA and CMPPA.
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Exhibit C (Privacy #4 – v20231218)

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I. “Personal Information” (PI) shall have the meaning given to such term in California Civil Code § 1798.3(a).

J. “Required by law” means a mandate contained in law that compels an entity to make a use or disclosure of PI or PII that is enforceable in a court of law. This includes, but is not limited to, court orders and court-ordered warrants, subpoenas or summons issued by a court, grand jury, a governmental or tribal inspector general, or an administrative body authorized to require the production of information, and a civil or an authorized investigative demand. It also includes Medicare conditions of participation with respect to health care providers participating in the program, and statutes or regulations that require the production of information, including statutes or regulations that require such information if payment is sought under a government program providing public benefits.

K. “Security Incident” means the attempted or successful unauthorized access, use, disclosure, modification, or destruction of PI, or confidential data utilized in complying with this Agreement; or interference with system operations in an information system that processes, maintains or stores PI.

L. Sensitive Information shall mean information that requires special precautions to protect from unauthorized use, access, disclosure, modification, loss, or deletion. Sensitive Information may be either Public Information or Confidential Information. It is information that requires a higher than normal assurance of accuracy and completeness.

Thus, the key factor for Sensitive Information is that of integrity. Typically, Sensitive Information includes records of agency financial transactions and regulatory actions.

23. Terms of Agreement
A. Permitted Uses and Disclosures of County PI and PII by Contractor Except as otherwise indicated in this Exhibit, Part II, Contractor may use or disclose County PI only to perform functions, activities or services for or on behalf of the County pursuant to the terms of this Agreement provided that such use or disclosure would not violate the California Information Practices Act (CIPA) if done by the County.

B. Responsibilities of Contractor
Contractor agrees:
1) Nondisclosure. Not to use or disclose County PI or PII other than as permitted or required by this Agreement or as required by applicable state and federal law. o The Contractor and its employees, agents, or subcontractors shall protect from unauthorized disclosure any Personal Information, Sensitive Information, or Confidential Information (hereinafter identified as PSCI). o The Contractor and its employees, agents, or subcontractors shall not use any PSCI for any purpose other than carrying out the Contractor's obligations under this Agreement.
o The Contractor and its employees, agents, or subcontractors shall promptly transmit to the County Program Contract Manager all requests for disclosure of any PSCI not emanating from the person who is the subject of PSCI. 168 of 280
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o The Contractor shall not disclose, except as otherwise specifically permitted by this Agreement or authorized by the person who is the subject of PSCI, any PSCI to anyone other than County without prior written authorization from the County Program Contract Manager, except if disclosure is required by State or Federal law.
2) Safeguards. To implement appropriate and reasonable administrative, technical, and physical safeguards to protect the security, confidentiality and integrity of County PI and PII, to protect against anticipated threats or hazards to the security or integrity of County PI and PII, and to prevent use or disclosure of County PI or PII other than as provided for by this Agreement. Contractor shall develop and maintain a written information privacy and security program that include administrative, technical and physical safeguards appropriate to the size and complexity of Contractor’s operations and the nature and scope of its activities, which incorporate the requirements of Section 3, Security, below. Contractor will provide County with its current policies upon request.
3) Security. Contractor shall take any and all steps necessary to ensure the continuous security of all computerized data systems containing PHI and/or PI, and to protect paper documents containing PHI and/or PI. These steps shall include, at a minimum:
a) Complying with all of the data system security precautions listed in Part IV of this Special Terms and Conditions Document, Contractor Data Security Requirements; and
b) Providing a level and scope of security that is at least comparable to the level and scope of security established by the Office of Management and Budget in OMB Circular No. A-130, Appendix III- Security of Federal Automated Information Systems, which sets forth guidelines for automated information systems in Federal agencies; and
c) If the data obtained by User(s) from County includes PII, User(s) shall also comply with the substantive privacy and security requirements in the Computer Matching and Privacy Protection Act Agreement between the SSA and the California Health and Human Services Agency (CHHS) and in the Agreement between the SSA and DHCS, known as the Information Exchange Agreement (IEA), which are attached as Attachment B and are incorporated into this Agreement. The specific sections of the IEA with substantive privacy and security requirements to be complied with are sections E, F, and G, and in Attachment 4 to the IEA, Electronic Information Exchange Security Requirements, Guidelines and Procedures for Federal, State and Local Agencies Exchanging Electronic Information with the SSA. The User(s) also agree to ensure that any agents, including a subcontractor, to whom they provide County PII agree to the same requirements for privacy and security safeguards for confidential data that apply to the User(s) with respect to such information. The User(s) also agree to ensure that any agents, including a subcontractor, to whom they provide County PII agree to the same requirements for privacy and security safeguards for confidential data that apply to the User(s) with respect to such information. 169 of 280
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4) Mitigation of Harmful Effects. To mitigate, to the extent practicable, any harmful effect that is known to Contractor of a use or disclosure of County PI or PII by Contractor or its subcontractors in violation of this Exhibit, Part II. 5) Contractor’s Agents and Subcontractors. To impose the same restrictions and conditions set forth in this Exhibit, Part II on any subcontractors or other agents with whom Contractor subcontracts any activities under this Agreement that involve the disclosure of County PI or PII to the subcontractor.
6) Availability of Information to County. To make PI and PII available to the County for purposes of oversight, inspection, amendment, and response to requests for records, injunctions, judgments, and orders for production of County PI and PII. If Contractor receives County PII, upon request by County, Contractor shall provide County with a list of all employees, contractors and agents who have access to County PII, including employees, contractors and agents of its subcontractors and agents. 7) Cooperation with County. With respect to County PI, to cooperate with and assist the County to the extent necessary to ensure the County’s compliance with the applicable terms of the CIPA including, but not limited to, accounting of disclosures of County PI, correction of errors in County PI, production of County PI, disclosure of a security breach involving County PI and notice of such breach to the affected individual(s). 8) Breaches and Security Incidents. During the term of this Agreement, Contractor agrees to implement reasonable systems for the discovery and prompt reporting of any breach or security incident, and to take the following steps:
a) Initial Notice to the County. (1) To notify the County immediately by telephone call plus email or fax upon the discovery of a breach of unsecured County PI or PII in electronic media or in any other media if the PI or PII was, or is reasonably believed to have been, accessed or acquired by an unauthorized person, or upon discovery of a suspected security incident involving County PII. (2) To notify the County within 24 hours (1 hour if SSA data) by email or fax of the discovery of any suspected security incident, intrusion or unauthorized access, use or disclosure of County PI or PII in violation of this Agreement or this Exhibit, Part I, or potential loss of confidential data affecting this Agreement. A breach shall be treated as discovered by Contractor as of the first day on which the breach is known, or by exercising reasonable diligence would have been known, to any person (other than the person committing the breach) who is an employee, officer or other agent of Contractor.
b) Notice shall be provided to the County Privacy and Security Officer. If the incident occurs after business hours or on a weekend or holiday and involves electronic County PI or PII, notice shall be provided by calling the County Privacy and Security Officer. Notice shall be made using the County “Privacy Incident Report” form.
c) Upon discovery of a breach or suspected security incident, intrusion or unauthorized access, use or disclosure of County PHI, Contractor shall take:
i. Prompt corrective action to mitigate any risks or damages involved with the breach and to protect the operating environment; and
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ii. Any action pertaining to such unauthorized disclosure required by applicable Federal and State laws and regulations.
d) Investigation and Investigation Report. To immediately investigate such suspected security incident, security incident, breach, or unauthorized access, use or disclosure of PHI within 72 hours of the discovery, Contractor shall submit an updated “Privacy Incident Report” containing the information marked with an asterisk and all other applicable information listed on the form, to the extent known at the time, to the County Privacy and Security Officer. e) Complete Report. To provide a complete report of the investigation to the County Privacy and Security Officer within ten (10) working days of the discovery of the breach or unauthorized use or disclosure. The report shall be submitted on the “Privacy Incident Report” form and shall include an assessment of all known factors relevant to a determination of whether a breach occurred. The report shall also include a full, detailed corrective action plan, including information on measures that were taken to halt and/or contain the improper use or disclosure. If the County requests information in addition to that listed on the “Privacy Incident Report” form, Contractor shall make reasonable efforts to provide the County with such information. If, because of the circumstances of the incident, Contractor needs more than ten (10) working days from the discovery to submit a complete report, the County may grant a reasonable extension of time, in which case Contractor shall submit periodic updates until the complete report is submitted. If necessary, a Supplemental Report may be used to submit revised or additional information after the completed report is submitted, by submitting the revised or additional information on an updated “Privacy Incident Report” form. The County will review and approve the determination of whether a breach occurred and individual notifications are required, and the corrective action plan. f) Responsibility for Reporting of Breaches. If the cause of a breach of County PI or PII is attributable to Contractor or its agents, subcontractors or vendors, Contractor is responsible for all required reporting of the breach as specified in CIPA, § 1798.29(a) – (d) and as may be required under the IEA. Contractor shall bear all costs of required notifications to individuals as well as any costs associated with the breach. The County Privacy and Security Officer shall approve the time, manner and content of any such notifications and their review and approval must be obtained before the notifications are made. The County will provide its review and approval expeditiously and without unreasonable delay. If Contractor has reason to believe that duplicate reporting of the same breach or incident may occur because its subcontractors, agents or vendors may report the breach or incident to the County in addition to Contractor, Contractor shall notify the County, and the County and Contractor may take appropriate action to prevent duplicate reporting.
g) County Contact Information. To direct communications to the above referenced County staff, the Contractor shall initiate contact as indicated herein. The County reserves the right to make changes to the contact information below by giving written notice to the Contractor. Said changes shall not require an amendment to this Addendum or the Agreement to which it is incorporated. 171 of 280
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Sonoma Co. Privacy Officer: 1450 Neotomas Ave. Suite 200, Santa Rosa, CA 95405; 707-565-5703; DHS-Privacy&[email protected] Part III: Miscellaneous Terms and Conditions including Access to 42 CFR Part 2 information. (Applies to all Contractors)

1. Confidentiality of Alcohol and Drug Abuse Patient Records If Contractor is in possession or has access to information regulated by Title 42 Code of Federal Regulations, Chapter I, Subchapter A, Part 2, (42 CFR Part 2), Contractor shall comply with all related regulations. Contractor is aware that criminal penalties may be imposed for a violation of these confidentiality requirements.

2. Disclaimer
The County makes no warranty or representation that compliance by Contractor with this Exhibit, HIPAA or the HIPAA regulations will be adequate or satisfactory for Contractor’s own purposes or that any information in Contractor’s possession or control, or transmitted or received by Contractor, is or will be secure from unauthorized use or disclosure. Contractor is solely responsible for all decisions made by Contractor regarding the safeguarding of the County PHI.

3. Amendment
A. The parties acknowledge that federal and state laws relating to electronic data security and privacy are rapidly evolving and that amendment of this Exhibit may be required to provide for procedures to ensure compliance with such developments. The parties specifically agree to take such action as is necessary to implement the standards and requirements of HIPAA, the HITECH Act, and the HIPAA regulations. Upon either party’s request, the other party agrees to promptly enter into negotiations concerning an amendment to this Exhibit embodying written assurances consistent with the standards and requirements of HIPAA, the HITECH Act, and the HIPAA regulations. The County may terminate this Agreement upon thirty (30) days written notice in the event:
1) Contractor does not promptly enter into negotiations to amend this Exhibit when requested by the County pursuant to this section; or
2) Contractor does not enter into an amendment providing assurances regarding the safeguarding of County PHI that the County deems necessary to satisfy the standards and requirements of HIPAA and the HIPAA regulations.

4. Judicial or Administrative Proceedings
Contractor will notify the County if it is named as a defendant in a criminal proceeding for a violation of HIPAA or other security or privacy law. The County may terminate this Agreement if Contractor is found guilty of a criminal violation of HIPAA. The County may terminate this Agreement if a finding or stipulation that the Contractor has violated any standard or requirement of HIPAA, or other security or privacy laws is made in any administrative or civil proceeding in which the Contractor is a party or has been joined. County will consider the nature and seriousness of the violation in deciding whether or not to terminate the Agreement.

5. Assistance in Litigation or Administrative Proceedings Contractor shall make itself and any subcontractors, employees or agents assisting Contractor in the performance of its obligations under this Agreement, available to the County at no cost to the 172 of 280
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County to testify as witnesses, or otherwise, in the event of litigation or administrative proceedings being commenced against the County, its directors, officers or employees based upon claimed violation of HIPAA, or the HIPAA regulations, which involves inactions or actions by the Contractor, except where Contractor or its subcontractor, employee or agent is a named adverse party.

6. No Third-Party Beneficiaries
Nothing express or implied in the terms and conditions of this Exhibit is intended to confer, nor shall anything herein confer, upon any person other than the County or Contractor and their respective successors or assignees, any rights, remedies, obligations or liabilities whatsoever.

7. Interpretation
The terms and conditions in this Exhibit shall be interpreted as broadly as necessary to implement and comply with HIPAA, the HITECH Act, and the HIPAA regulations. The parties agree that any ambiguity in the terms and conditions of this Exhibit shall be resolved in favor of a meaning that complies and is consistent with HIPAA, the HITECH Act and the HIPAA regulations.

8. Conflict
In case of a conflict between any applicable privacy or security rules, laws, regulations or standards the most stringent shall apply. The most stringent means that safeguard which provides the highest level of protection to PHI from unauthorized disclosure. Further, Contractor must comply within a reasonable period of time with changes to these standards that occur after the effective date of this Agreement.

9. Regulatory References
A reference in the terms and conditions of this Exhibit to a section in the HIPAA regulations means the section as in effect or as amended.

10. Survival
The respective rights and obligations of Contractor under Section 3, Item D of Exhibit, Part I, Responsibilities of Contractor, shall survive the termination or expiration of this Agreement.

11. No Waiver of Obligations
No change, waiver or discharge of any liability or obligation hereunder on any one or more occasions shall be deemed a waiver of performance of any continuing or other obligation, or shall prohibit enforcement of any obligation, on any other occasion.

12. Audits, Inspection and Enforcement
From time to time, and subject to all applicable federal and state privacy and security laws and regulations, the County may conduct a reasonable inspection of the facilities, systems, books and records of Contractor to monitor compliance with this Exhibit. Contractor shall promptly remedy any violation of any provision of this Exhibit. The fact that the County inspects, or fails to inspect, or has the right to inspect, Contractor’s facilities, systems and procedures does not relieve Contractor of its responsibility to comply with this Exhibit. The County's failure to detect a non-compliant practice, or a failure to report a detected non-compliant practice to Contractor does not constitute acceptance of such practice or a waiver of the County's enforcement rights under this Agreement, including this Exhibit. 173 of 280 Agreement No: 2026-6419-A00
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13. Due Diligence
Contractor shall exercise due diligence and shall take reasonable steps to ensure that it remains in compliance with this Exhibit and is in compliance with applicable provisions of HIPAA, the HITECH Act and the HIPAA regulations, and that its agents, subcontractors and vendors are in compliance with their obligations as required by this Exhibit.

14. Term
The Term of this Exhibit shall extend beyond the termination of the Agreement and shall terminate when all County PHI is destroyed or returned to the County, in accordance with 45 C.F.R. § 164.504(e)(2)(ii)(I), and when all County PI and PII is destroyed in accordance with Attachment A.

15. Effect of Termination
Upon termination or expiration of this Agreement for any reason, Contractor shall return or destroy all County PHI, PI and PII that Contractor still maintains in any form, and shall retain no copies of such PHI, PI or PII. If return or destruction is not feasible, Contractor shall notify the County of the conditions that make the return or destruction infeasible, and the County and Contractor shall determine the terms and conditions under which Contractor may retain the PHI, PI or PII. Contractor shall continue to extend the protections of this Exhibit to such County PHI, PI and PII, and shall limit further use of such data to those purposes that make the return or destruction of such data infeasible. This provision shall apply to County PHI, PI and PII that is in the possession of subcontractors or agents of Contractor.

Part IV: Contractor Data Security Requirements

1. General Controls
Contractor shall preserve and shall ensure that its sub-consultants or vendors preserve, the confidentiality, integrity, and availability of County data with administrative, technical and physical measures that conform to generally recognized industry standards and best practices that the selected firm then applies to its own processing environment. Maintenance of a secure processing environment includes, but is not limited to, the timely application of patches, fixes and updates to operating systems and applications as provided by Contractor and/or its subconsultants or vendors. Contractor agrees to, and shall ensure that its sub-consultants or venders, comply with County’s current and future information security policies, standards, procedures, and guidelines.

2. Designation of Individual(s) Responsible for information Privacy and Security A. Security Officer:

Contractor shall designate a qualified individual, (HIPAA Security Officer), to implement and oversee its data security program. The individual shall be responsible for, and knowledgeable about, carrying out the requirements of this Special Terms and Conditions Exhibit, ensuring Contractor compliance with all provisions of the HIPAA Security Rule (45 CFR 164.300 et. seq.), and for communicating about privacy and security matters with the County.

B. Privacy Officer:
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Contractor shall designate a qualified individual, (HIPAA Privacy Officer), to implement and oversee its information privacy program. The individual shall be responsible for, knowledgeable about, and trained in, carrying out the requirements of this Special Terms and Conditions Exhibit, ensuring Contractor compliance with all applicable state and federal information privacy laws (including but not limited to HIPAA, WIC 5328, 42 CFR Part 2, California Medical Information Act, etc.), and for communicating about privacy and security matters with the County.

C. The individual designated to the above roles may be the same individual so long as they are qualified and able to effectively perform the duties of both designations.

D. Any individual(s) designated as the Privacy Officer and/or Security Officer, must attend a Basic Privacy Compliance Academy course offered by the Health Care Compliance Association (HCCA) and obtain, within six (6) months of appointment, a “Certified in Healthcare Privacy Compliance” certification from the Health Care Compliance Association. Certification must be maintained continuously while designated in the role.

Alternate training and certification may be considered equivalent if approved at the sole discretion of the County Privacy & Security Officer.

3. Personnel Controls
A. Employee Training. All workforce members who assist in the performance of functions or activities on behalf of the County, or access or disclose County PHI or PI must complete information privacy and security training, at least annually, at Contractor's expense. Each workforce member who receives information privacy and security training must sign a certification, indicating the member’s name and the date on which the training was completed. These certifications must be retained for a period of six (6) years following termination of this Agreement.

B. Employee Discipline. Appropriate sanctions must be applied against workforce members who fail to comply with privacy policies and procedures or any provisions of these requirements, including termination of employment where appropriate.

C. Confidentiality Statement. All persons that will be working with County PHI or PI must sign a confidentiality statement that includes, at a minimum, General Use, Security and Privacy Safeguards, Unacceptable Use, and Enforcement Policies. The statement must be signed by the workforce member prior to access to County PHI or PI. The statement must be renewed annually. The Contractor shall retain each person’s written confidentiality statement for County inspection for a period of six (6) years following termination of this Agreement.

D. Background Check. Before a member of the workforce may access County PHI or PI, a background screening of that worker must be conducted. The screening should be commensurate with the risk and magnitude of harm the employee could cause, with more thorough screening being done for those employees who are authorized to bypass significant technical and operational security controls. The Contractor shall retain each workforce member’s background check documentation for a period of three (3) years.

4. Technical Security Controls
A. Workstation/Laptop encryption. All workstations and laptops that store County PHI or PI either directly or temporarily must be encrypted using a FIPS 140-2 certified algorithm 175 of 280
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Cotati City CouncilSeptember 8, 2026

Cotati City Council
September 8, 2026