CITY OF FAIRFIELD
RESOLUTION NO. 2025-58
APPROVING THE CITY’S FISCAL YEAR 2023-2024 FINAL SCHEDULE OF EXPENDITURES FOR
FEDERAL AWARDS REPORT
NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:
Section 1. Pursuant to Section 37208 (c) of the Government Code, the fiscal year 2023-2024 Final Schedule of Expenditures for Federal Awards Report (Single Audit) and other reports are hereby approved and ratified.
Section 2. The city manager and director of finance are hereby authorized to take all actions necessary to implement this resolution.
PASSED AND ADOPTED this 15th day of April 2025, by the following vote:
AYES: MEMBERS: MOY/BERTANI/CARR/PANDURO/SANDHU/TONNESEN/WILLIAMS NOES: MEMBERS: _________________________________________________ ABSENT: MEMBERS: _________________________________________________ ABSTAIN: MEMBERS: _________________________________________________
_________________________________________________
MAYOR
ATTEST:
___________________________
CITY CLERK
1 March 18, 2025
To the City Council and Audit Committee
City of Fairfield, California
We have audited the financial statements of the City of Fairfield, California (City) as of and for the year ended June
30, 2024, and have issued our report thereon dated December 12, 2024. Professional standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit under Generally Accepted Auditing Standards and Government Auditing Standards and our Compliance Audit under the Uniform Guidance As communicated in our letter dated July 23, 2024, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America and to express an opinion on whether the City complied with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs. Our audit of the financial statements and major program compliance does not relieve you or management of its respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, ass urance ab out whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to pr ovide a ny assurance concerning such internal control.
Our responsibility, as prescribed by professional standards as it re lates to the audit of the City’s major federal program compliance, is to express an opinion on the compliance for each of the City’s major federal programs based on our audit of the types of compliance requirements referred to above. An audit of major program compliance includes consideration of internal control over compliance with the types of compliance requirements referred to above as a basis for designing audit procedures th at are ap propriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, as a part of our major program compliance audit, we considered internal control over compliance for these purposes and not to provide any assurance on the effectiveness of the City’s internal control over compliance.
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2 We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.
W
e have provided our comments regarding internal controls during our audit in our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards dated December 12, 2024.
We have also provided our comments regarding compliance with the types of compliance requirements referred to above and internal controls over compliance during our audit in our Independent Auditor’s Report on Compliance with Each Major Federal Program and Report on Internal Control Over Compliance Required by the Uniform Guidance dated March 18, 2025.
P
lanned Scope and Timing of the Audit
W
e conducted our audit consistent with the planned scope and timing we previously communicated to you.
C
ompliance with All Ethics Requirements Regarding Independence T
he engagement team, others in our firm, as appropriate, our firm, and other firms utilized in the engagement, if applicable, have complied with all relevant ethical requirements regarding independence.
Q
ualitative Aspects of the Entity’s Significant Accounting Practices S
ignificant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during 2024. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
Acco
unting Estimates
A
ccounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.
Th
e most sensitive accounting estimates affecting the financial statements are:
• The net pension liability and related deferred inflows of resources and deferred outflows of resources and disclosures are based on actuarial valuations.
• Self-insurance claims liabilities are based on actuarial studies performed by the City's independent actuaries.
W
e evaluated key factors and assumptions used to develop the estimates in determining that they are reasonable in relation to the financial statements taken as a whole.
3 Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to:
The City’s disclosure of the defined benefit pension plans, net pension liability and related deferred in
flows of resources and deferred outflows of resources in Note 14 to the financial statements. The valuation of the net pension liability and related deferred outflows/inflows of resources are sensitive to the underlying actuarial assumptions used, including, but not limited to, the investment rate of return and discount rate. As disclosed in Note 14, a 1% increase or decrease in the discount rate has a material effect on the City’s net pension liability.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole. Uncorrected misstatements or matters underlying those uncorrected misstatements could potentially cause future-period financial statements to be materially misstated, even though the uncorrected misstatements are immaterial to the financial statements currently under audit. There were no uncorrected or corrected misstatements identified as a result of our audit procedures.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the financial statements or the auditor’s report. No such disagreements arose during the course of the audit.
Circumstances that Affect the Form and Content of the Auditor’s Report For purposes of this letter, professional standards require that we communicate any circumstances that affect the form and content of our auditor’s report.
We modified our Auditor’s report over the City’s compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the City’s major federal programs. Based on our testing, the City did not comply with requirements regarding the Community Economic Adjustment Assistance for Responding to Threats to the Resilience of a Military Installation program (Assistance Listing No. 12.003) as described in finding 2024-003 for Procurement, Suspension and Debarment.
As a result of the noncompliance, we qualified our opinion on compliance with the program requirements.
Representations Requested from Management
We have requested certain written representations from management which are included in the management representation letter dated December 12, 2024, for the basic financial statements and March 18, 2025, for the single audit.
4 Management’s Consultations with Other Accountants
I
n some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.
O
ther Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating conditions affecting the entity, and operating plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors.
O
ther Information Included in Annual Reports
P
ursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in the City’s annual reports, does not extend beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information.
A
dditionally, in accordance with such standards, we read the other information and considered whether such information, or the manner of its presentation, was materially inconsistent with its presentation in the financial statements.
O
ur responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.
G
roup Audits
T
he financial statements include the financial statements of the Fairfield Public Financing Authority, Fairfield Water Facilities Improvement District No. 1, Fairfield Municipal Park Improvement District No. 1, Fairfield Storm Drain Facilities Improvement District No. 1, Fairfield Community Facilities Districts, and Housing Authority of the City of Fairfield, which are blended component units of the City, which for the purposes of our audit we did not consider to be significant components within the financial statements. Consistent with the audit of the financial statements as a whole, our audit included obtaining an understand of the component units and their environment, including internal control, sufficient to assess the risks of material misstatements of the financial statements and completion of further audit procedures.
This report is intended solely for the information and use of the City Council, Audit Committee, and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.
S
acramento, California
Federal Awards Reports in Accordance
with the Uniform Guidance
June 30, 2024
City of Fairfield, California
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City of Fairfield, California
Table of Contents
June 30, 2024
I
ndependent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ............................................................................................................................... 1 Independent Auditor’s Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance ............................................................................................................. 3 Schedule of Expenditures of Federal Awards ............................................................................................................ 7 Notes to Schedule of Expenditures of Federal Awards ............................................................................................. 9 Schedule of Findings and Questioned Costs
Section I – Summary of Auditor's Results ............................................................................................................ 10 Section II – Financial Statement Findings ............................................................................................................ 11 Section III – Federal Award Findings and Questioned Costs ................................................................................ 12 Summary Schedule of Prior Audit Findings .............................................................................................................. 16
1 I
ndependent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
T
o the City Council
City of Fairfield, California
W
e have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards), the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Fairfield, California (the City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated December 12, 2024.
R
eport on Internal Control over Financial Reporting
I
n planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control.
Accordingly, we do not express an opinion on the effectiveness of the City's internal control.
A
deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
O
ur consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We identified certain deficiencies in internal control, described in the accompanying Schedule of Findings and Questioned Costs and as item 2024-001 that we consider to be a significant deficiency.
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2 R
eport on Compliance and Other Matters
A
s part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
C
ity’s Response to Findings
G
overnment Auditing Standards requires the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in the accompanying Schedule of Findings and Questioned Costs. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
P
urpose of this Report
T
he purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
S
acramento, California
December 12, 2024
3 Independent Auditor’s Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
T
o the Honorable Mayor and Members of the City Council
City of Fairfield, California
R
eport on Compliance for Each Major Federal Program
Q
ualified and Unmodified Opinions
W
e have audited the City of Fairfield, California’s (the City) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2024. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.
Q
ualified Opinion on the Community Economic Adjustment Assistance for Responding to Threats to the Resilience of a Military Installation Program
I
n our opinion, except for the noncompliance described in the Basis for Qualified and Unmodified Opinions section of our report, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect the on Community Economic Adjustment Assistance for Responding to Threats to the Resilience of a Military Installation Program for the year ended June 30, 2024.
U
nmodified Opinion on Each of the Other Major Federal Programs I
n our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its other major federal programs identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs for the year ended June 30, 2024.
B
asis for Qualified and Unmodified Opinions
W
e conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.
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4 W
e are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified and unmodified opinions on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.
M
atter Giving Rise to a Qualified Opinion on the Community Economic Adjustment Assistance for Responding to Threats to the Resilience of a Military Installation Program A
s described in the accompanying schedule of findings and questioned costs, the City did not comply with requirements regarding Assistance Listing No. 12.003, Community Economic Adjustment Assistance for Responding to Threats to the Resilience of a Military Installation Program, as described finding 2024- 003 for Procurement, Suspension and Debarment.
C
ompliance with such requirements is necessary, in our opinion, for the City to comply with the requirements applicable to that program.
R
esponsibilities of Management for Compliance
M
anagement is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City’s federal programs.
A
uditor’s Responsibilities for the Audit of Compliance
O
ur objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.
I
n performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
5 • O
btain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over c
ompliance. Accordingly, no such opinion is expressed.
W
e are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.
O
ther Matters
T
he results of our auditing procedures disclosed other instances of noncompliance, which are required to be reported in accordance with the Uniform Guidance and which are described in the accompanying schedule of findings and questioned costs as item 2024-002. Our opinion on each major federal program is not modified with respect to this matter.
G
overnment Auditing Standards requires the auditor to perform limited procedures on the City’s response to the noncompliance findings identified in our compliance audit described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.
R
eport on Internal Control over Compliance
O
ur consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we did identify certain deficiencies in internal control over compliance that we consider to be material weaknesses and significant deficiencies.
A de
ficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis.
We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2024-003 to be a material weakness.
6 A
significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2024-002 to be a significant deficiency.
O
ur audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.
G
overnment Auditing Standards requires the auditor to perform limited procedures on the City’s response to the internal control over compliance findings identified in our compliance audit described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.
T
he purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
R
eport on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance W
e have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended June 30, 2024 and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated December 12, 2024, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.
The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.
S
acramento, California
March 18, 2025
See Notes to Schedule of Expenditures of Federal Awards 7 City of Fairfield, California
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2024
Federal Program/Project
Financial or Pass-through Amounts
Assistance Identification Provided to
Listing Number Expenditures Subrecipients
U.S. Department of Defense
Direct Programs:
Community Economic Adjustment Assistance for Responding to Threats to the Resilience of a Military Installation 12.003 MIR1973-22-01 868,591$ - $ Total U.S. Department of Defense 868,591 -
U.S. Department of Housing and Urban Development
Direct Programs:
CDBG-Entitlement/Special Purpose Grants Cluster:
Community Development Block Grant/Entitlement Grants 14.218 B22MC060027 380,265 33,074 Community Development Block Grant/Entitlement Grants 14.218 B23MC060027 810,769 79,326 Community Development Block Grant/Entitlement Grants 14.218 Program Income 196,106 - COVID-19 Community Development Block Grant 14.218 B20MW060027 116,126 116,126 Subtotal CDBG-Entitlement/Special Purpose Grant Cluster 1,503,266 228,526 Housing Voucher Cluster:
Section 8 Housing Choice Vouchers 14.871 N/A 10,942,491 - Subtotal Housing Voucher Cluster 10,942,491 -
Passed through the Community AcƟon Partnership Solano
Joint Powers Authority:
COVID-19 Emergency Solutions Grant Program 14.231 N/A 65,705 - Passed through the California Department of Housing and Community Development:
Home Investment Partnerships Program - Program Income 14.239 Program Income 54,288 - Total U.S. Department of Housing and Urban Development 12,565,750 228,526 U.S. Department of Justice
Direct Programs:
Edward Byrne Memorial Justice Assistance Grant Program 16.738 2019-DJ-BX-0627 12,966 - Edward Byrne Memorial Justice Assistance Grant Program 16.738 2020-DJ-BX-0341 34,622 - Edward Byrne Memorial Justice Assistance Grant Program 16.738 15PBJA-21-GG-
01261-JAGX 42,897 -
Edward Byrne Memorial Justice Assistance Grant Program 16.738 15PBJA-22-GG-
02136-JAGX 22,490 -
Edward Byrne Memorial Justice Assistance Grant Program 16.738 15PBJA-23-GG-
03174-JAGX 43,251 -
Subtotal Edward Byrne Memorial Justice Assistance Grant Program 156,226 - Total U.S. Department of Justice 156,226 -
Federal Grantor/Pass-Through
Grantor/Program or Cluster Title
S
ee Notes to Schedule of Expenditures of Federal Awards 8 City of Fairfield, California
Schedule of Expenditures of Federal Awards
Year Ended Ju ne 30, 2024
Federal Program/Project
Financial or Pass-through Amounts
Assistance Identification Provided to
Listing Number Expenditures Subrecipients
Federal Grantor/Pass-Through
Grantor/Program or Cluster Title
U.S. Department of Transportation
Direct Programs:
Federal Transit Cluster:
Federal Transit Formula Grant 20.507 CA-2021-019-00 1,206,518$ -$ Federal Transit Formula Grant 20.507 CA-2021-200-00 1,376,989 - Federal Transit Formula Grant 20.507 CA-2022-188-00 143,962 - Federal Transit Formula Grant 20.507 CA-2023-218-00 397,000 - Federal Transit Formula Grant 20.507 CA-2024-059-00 2,315,457 - COVID-19 ARPA Federal Transit Formula Grant 20.507 CA-2023-026-00 1,343,353 - Subtotal Federal Transit Cluster 6,783,279 -
Passed through the California Department of Transportation:
Highway Planning and Construction 20.205 STPCML-5132 (049) 1,065,634 - Highway Planning and Construction 20.205 HSIPL-5132 (50) 816,344 - Highway Planning and Construction 20.205 HSIPL-5132 (51) 999,741 - Highway Planning and Construction 20.205 HSIPL-5132 (52) 244,318 - Highway Planning and Construction 20.205 HSIPL-5132 (55) 1,040 - Subtotal Highway Planning and Construction 3,127,077 -
Passed through the California Office of Traffic Safety:
Highway Safety Cluster:
State and Community Highway Safety 20.600 PT23026 30,238 - State and Community Highway Safety 20.600 PT24068 104,874 - Subtotal Highway Safety Cluster 135,112 -
Total U.S. Department of Transportation 10,045,468 -
U.S. Department of the Treasury
Direct Programs:
COVID-19 Coronavirus State and Local Fiscal
Recovery Funds 21.027 N/A 3,100,000 -
Passed through the California State Water Resources Control Board:
COVID-19 Coronavirus State and Local Fiscal
Recovery Funds 21.027 CA4810003 238,106 -
Subtotal COVID-19 Coronavirus State and Local Fiscal Recovery Funds 3,338,106 - Total U.S. Department of the Treasury 3,338,106 -
U.S. Department of Homeland Security
Direct Programs:
Staffing for Adequate Fire & Emergency Response 97.083
EMW-2020-FF-
00816 1,142,331 -
Passed through the Solano County Emergency Food and Shelter Program Local Board:
Emergency Food and Shelter National Board Program 97.024 40-0902-00 10,000 - Total U.S. Department of Homeland Security 1,152,331 -
Total Federal Expenditures 28,126,472$ 228,526$
9 City of Fairfield, California
N
otes to Schedule of Expenditures of Federal Awards
Year Ended Ju ne 30, 2024
Note 1 - Basis of Presentation
T
he accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the City under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City.
Note 2 - Summary of Significant Accounting Policies
E
xpenditures reported on the Schedule are reported on the modified accrual basis of accounting for governmental funds and the accrual basis of accounting for proprietary funds, except for subrecipient expenditures, which are reported on the cash basis. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Note 3 - Indirect Cost Rate
Th
e City has elected to use the 10% de minimis cost rate.
10 City of Fairfield, California
Schedule of Findings and Questioned Costs
Year Ended Ju ne 30, 2024
Section I – Summary of Auditor’s Results
FINANCIAL STATEMENTS
Type of auditor's report issued Unmodified
Internal control over financial reporting:
Material weaknesses identified No
Significant deficiencies identified not considered
to be material weaknesses Yes
Noncompliance material to financial statements noted? No
FEDERAL AWARDS
Internal control over major program:
Material weaknesses identified Yes
Significant deficiencies identified not considered
to be material weaknesses Yes
Type of auditor's report issued on compliance
for major programs:
Unmodified for all major programs except
for the Community Economic Adjustment
Assistance for Responding to Threats to
the Resilience of a Military Installation
program, which is qualified.
Any audit findings disclosed that are required to be reported in accordance with Uniform Guidance 2 CFR 200.516(a)? Yes
Identification of major programs:
Federal Financial Assistance Listing
Community Economic Adjustment Assistance for Responding to Threats to the Resilience of a Military Installation 12.003 Community Development Block Grant/Entitlement Grants 14.218 Section 8 Housing Choice Vouchers/Housing Voucher Cluster 14.871 Coronavirus State and Local Fiscal Recovery Funds 21.027 Staffing for Adequate Fire & Emergency Response 97.083
Dollar threshold used to distinguish between type A
and type B programs: $843,794
Auditee qualified as low-risk auditee? No
Name of Major Federal Program or Cluster
City of Fairfield, California
Schedule of Findings and Questioned Costs
Year Ended June 30, 2024
11 Section II – F inancial Statement Findings
2 024-001 Systems Access Reviews
Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Criteria:
Management is responsible for establishing a system of internal controls to prevent individuals having inappropriate access to systems or records within their accounting system. This includes having controls in place to review the systems access granted to individuals to ensure that those individuals are only granted the access they require for their position and assigned responsibilities, removing access when those individuals no longer require it, and reviewing the assigned access for conflicts with segregation of duties.
Condition:
There was no documentation of the review of user access in Tyler to verify the appropriateness of permissions based on their role and job duties. We corroborated with City employees that a review was performed, but there was no documentation of the review and the results of the review.
Cause:
The City’s procedures do not include documenting the results of its periodic review of user access in Tyler.
Effect:
By not reviewing the user access in Tyler, there is an increased risk of individuals having inappropriate access and conflicting segregation of duties which increases the risk of fraud or error occurring within the accounting system and not being identified by management.
Recommendation:
We recommend that management formally document their periodic review of users and their access granted in Tyler to ensure that their current assigned access in appropriate for their position and responsibilities.
Views of Responsible Officials:
The City hired an expert to review all permissions and build a robust workflow model, this review and implementation was completed in November 2024, and while the City has consistently been reviewing permissions in the past there were too many changes made over the course of the first year of implementation to formally document. When the City conducts future periodic reviews, the process will be documented to reflect the outcome of the review.
See separate corrective action plan.
City of Fairfield, California
Schedule of Findings and Questioned Costs
Year Ended June 30, 2024
12 Section III – F ederal Award Findings and Questioned Costs 20 24-002 Federal Agency: U.S. Department of Defense
Program/Cluster: Community Economic Adjustment Assistance for Responding to Threats to the Resilience of a Military Installation
Federal Assistance Listing Number: 12.003
Award No.: MIR1973-22-01
Award Year: 2023
Compliance Requirement: Matching, Level of Effort and Earmarking Type of Finding: Significant Deficiency in Internal Control over Compliance, Instance of Noncompliance
C
riteria:
2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
2 CFR 200.430(g)(4) Salaries and wages of employees used in meeting cost sharing requirements on Federal awards must be supported in the same manner as salaries and wages claimed for reimbursement from Federal awards.
2 CFR 200.306(f) requires that if services furnished by a third-party organization are claimed as a cost-sharing match, these services must be valued at the employee’s regular rate of pay, plus an amount of fringe benefits that is reasonable, necessary, allocable, and otherwise allowable.
C
ondition:
We noted personnel services furnished by third-party organizations totaled $31,025 for the life of the grant, including $10,854 in fiscal year 2024. For the services furnished by third-party organizations as a local match of costs, the City valued the personnel time based on budgeted rates. The City could not provide documentation supporting the actual cost incurred by the third-party organization to support the in-kind services claimed.
Cause:
The City’s policies and procedures for in-kind services furnished by third-party organizations toward the grant did not include obtaining documentation to support the actual costs incurred and value of services claimed.
Effect:
The City did not comply with required local match of expenses for the grant.
City of Fairfield, California
Schedule of Findings and Questioned Costs
Year Ended June 30, 2024
13 Questioned Costs:
W
e identified questioned costs totaling $2,435 for unsubstantiated costs furnished by third- party organizations claimed as local cost share expenditures.
C
ontext/Sampling:
A
nonstatistical sample of 13 out of 54 local cost share expenditures were tested. This represents $9,114 of local cost share expenditures out of a total of $46,809 incurred for fiscal year 2024. Upon further investigation, the questioned costs were isolated to contributed services furnished by third-party organizations which totaled $10,854 in the fiscal year 2024.
R
epeat Finding from Prior Year(s):
N
o.
R
ecommendation:
W
e recommend the City establish policies and procedures and documentation standards to comply with the Uniform Guidance standards for documentation of personnel expenses used to meet the local share of expenses.
V
iews of Responsible Officials:
M
anagement concurs with the finding. See separate corrective action plan. 20 24-003 Federal Agency: U.S. Department of Defense
Program/Cluster: Community Economic Adjustment Assistance for Responding to Threats to the Resilience of a Military Installation
Federal Assistance Listing Number: 12.003
Award No.: MIR1973-22-01
Award Year: 2023
Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance
C
riteria:
2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
City of Fairfield, California
Schedule of Findings and Questioned Costs
Year Ended June 30, 2024
14 Title 2 CFR Section 200.214 of the Uniform Guidance states that the City must comply with 2 CFR part 180, which implements Executive Orders 12549 and 12689. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities.
P
er 2 CFR Section 180.300, when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) ch
ecking the System for Award Management (SAM) Exclusions maintained by the General S
ervices Administration (GSA) and available at https://www.sam.gov/SAM/, (2) collecting a c
ertification from the entity, or (3) adding a clause or condition to the covered transaction with that entity.
2 CFR 200.318(i) Procurement records. The recipient or subrecipient must maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price.
T
he City’s grant policy, chapter 100 of the City’s administrative policy, section 34 states that contracts valued between $3,500 to $150,000 allow for informal procurement methods but requires that price or rate quotes must be obtained (and kept on hand for audit purposes) from an adequate number of qualified sources.
2 CFR 200.327 requires that the recipient's or subrecipient's contracts must contain the applicable provisions described in Appendix II of 2 CFR 200.
C
ondition:
D
uring our testing of the City’s provisions for procurement requirements, we noted the following:
1) F
or two (2) of two (2) contracts selecting for testing there was no evidence that the City verified the entity was not suspended or debarred or otherwise excluded from participating in the transaction, prior to entering the contract. Upon our search, none of the vendors were suspended or debarred.
2) F
or one (1) of two (2) contracts selected for testing with a contract value of $103,800, the C
ity did not document the history of the procurement, including the rationale for the method of procurement, selection of contract type, basis for contractor selection, and the basis for the contract price.
3) F
or two (2) out of two (2) contracts selected for testing, the City did not include all a
pplicable provisions described in 2 CFR 200 Appendix II.
City of Fairfield, California
Schedule of Findings and Questioned Costs
Year Ended June 30, 2024
15 Cause:
T
he City did not follow their policy to verify the information described in the condition prior to entering the transactions.
T
he City did not follow their policy documenting the history of the procurement, including the rationale for the method of procurement, selection of contract type, basis for contractor selection, and the basis for the contract price.
T
he City’s policy does not include the requirement to include all applicable provisions identified in 2 CFR 200 Appendix II in its contracts.
E
ffect:
F
ailure to implement and maintain a proper control process could result in payments to vendors that are suspended or debarred or improper awarding of contracts under the procurement guidance.
Q
uestioned Costs:
N
o questioned costs were identified.
C
ontext/Sampling:
W
e tested 100% of the procurement transactions. This represented a total of $1,323,800 in contracted services under the grant. $862,375 was paid for contracted services in fiscal year 2024.
R
epeat Finding from Prior Year(s):
N
o.
R
ecommendation:
W
e recommend the City strengthen its policies and procedures to ensure that the verification of the debarment and suspension is documented and retained, the history of procurement transactions is documented and retained in its official records, and that contracts include all applicable provisions of 2 CFR 200 Appendix II.
V
iews of Responsible Officials:
M
anagement concurs with the finding. See separate corrective action plan.
16 City of Fairfield, California
S
ummary Schedule of Prior Audit Findings
Year Ended Ju ne 30, 2024
Finding
No.
Program/Cluster or
Finding Description
Federal Assistance
Listing No.
Compliance
Requirement Status
2023-001 Systems Access, Security and
Segregation of Duties
N/A N/A Partially implemented.
See current year finding
2024-001.
2023-002 Prior Period Adjustment, Manual
Adjustments and Chart of Accounts
for Financial Reporting
N/A N/A Implemented.
2023-003 Reconciliations N/A N/A Implemented.
2023-004 Staffing for Adequate Fire &
Emergency Response
97.083 Reporting Implemented.
2023-005 Highway Planning and Construction 20.205 Special Tests and Provisions – Wage Rate
Requirements
Implemented.
2023-006 Section 8 Housing Choice Vouchers
Cluster
14.871 Reporting Implemented.
2023-007 Section 8 Housing Choice Vouchers
Cluster
14.871 Special Tests and
Provisions – Housing
Quality Standards
Inspections
Implemented.
City of Fairfield, California
Corrective Action Plan
June 30, 2024
Prepared by: Myles Dixon, Accounting Manager
City of Fairfield, California
Corrective Action Plan
June 30, 2024
3 Section II ‐ Financial Statement Findings:
2024‐001 Systems Access Reviews
Significant Deficiency in Internal Control over Financial Reporting Views of Responsible Officials:
We concur.
Corrective Action Plan:
The City hired an expert to review all permissions and build a robust workflow model. This review and implementation was completed in November 2024, and while the city has consistently been reviewing permissions in the past there were too many changes made over the course of the first year of implementation to formally document. When the City conducts future periodic reviews, the process will be documented to reflect the outcome of the review .
Responsible Individual(s):
Savita Chaudhary, IT Director/Asst. City Manager
Anticipated Completion Date:
To be completed by 6/30/2025
Section III – Federal Award Findings and Questioned Costs
2023‐002 Matching, Level of Effort and Earmark
Significant Deficiency in Internal Control over Compliance, Instance of Noncompliance We concur.
Corrective
Action Plan:
The City was not provided with payroll registers or pay stub copies for the in‐kind local match contribution from Solano County and the Travis Community Consortium. However, the City did maintain hourly tracking for the two agencies when they attended meetings and used a lower pay rate, as outlined in the approved grant budget, when reporting back to the agencies. The required 10% in‐kind match was exceeded by $9,224.28, with a portion of the $30,000 mentioned above included in the excess match. Additionally, the grant had a pay rate cap of $87 for one of the County employees, so using the actual pay rate to calculate the in‐kind match was not permitted. The City will collaborate with the other agencies to obtain better documentation for the shared local match.
Responsible Individual(s):
Liz Aptekar, Assistant to the City Manager
Anticipated Completion Date:
To be completed by 6/30/2025
City of Fairfield, California
Corrective Action Plan
June 30, 2024
4 2024‐003 Procurement, Suspension and Debarment
Material Weakness in Internal Control over Compliance, Material Noncompliance Views of Responsible Officials:
We concur.
Corrective Action Plan:
The City’s grant policy requires compliance with grant guidelines, referencing CFR 200.303(a) and directing staff to the SAM.gov website and CFR 200 guidelines. However, the department that applied for and accepted the grant
failed to include CFR 200 Appendix II in the Professional Services Agreement and did not document the review of contractor status on SAM.gov. To address this, the City will provide targeted training for departments and staff involved in grants, focusing on compliance with grant policies, special provisions, and proper documentation of actions.
Responsible Individual(s):
Anna Guiles, Assistant Community Development Director
Anticipated Completion Date:
To be completed by 3/31/2025
Agenda Item No: N.6
AGENDA REPORT
DATE: April 15, 2025
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2025-59 FN Independent Annual Audit Services
Authorizing Execution of a Professional Services Agreement Between the City of Fairfield and The Pun Group, LLP for Independent Annual Audit Services
Funding Source: $684,250; General Fund
Contact: Myles Dixon, (707) 428-7567
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
The City Council is requested to approve a Professional Services Agreement for the independent annual audit of the City of Fairfield for the fiscal years ending June 30, 2025, 2026, 2027, 2028, and 2029. The cost of the audit will be funded by the General Fund, with a proportional allocation to the City’s major funds and related agencies.
DISCUSSION
Eide Bailly LLP (EB) has served as the City's independent auditor for the past seven years. While there have been no disagreements regarding the City's audits, it is considered best practice to periodically review the market and, when appropriate, rotate audit firms.
To ensure a competitive selection process, the Finance Department issued a Request for Proposal (RFP) for auditing services in December 2024, dist ributing it to nine independent CPA firms in Northern California. The City received six responses, and after a thorough evaluation, three firms were selected for interviews. Each firm met mandatory criteria, including licensure in California and the absence of conflicts of interest.
The evaluation process focused on key factors such as:
Experience in governmental auditing
Qualifications of personnel assigned to the engagement Adequacy of the proposed staffing plan
Approach to auditing and financial statement review
Cost of Engagement
References from other municipal clients
Following an extensive review, including interviews, cost analysis, and reference checks, The Pun Group LLP is recommended as the City's independent auditor for fiscal years 2025 through 2029.
The Pun Group currently serves 51 other cities, including Napa and Pleasanton. Additionally, they will provide free staff training on accounting updates, which will assis t in the implementation of new governmental accounting standards.
The Audit Committee reviewed the evaluation process and findings and has accepted the staff's recommendation to engage The Pun Group LLP for auditing services.
FINANCIAL IMPACT
The following outlines the audit fees in the recommended Professional Service Agreement, with a 10% contingency due to additional Single Audit programs that may need to be selected.
Fiscal year Ending Annual Cost 10% Contingency Not-to-Exceed June 30, 2025 $116,000 $11,600 $127,600 June 30, 2026 $120,060 $12,006 $132,066 June 30, 2027 $124,262 $12,426 $136,688 June 30, 2028 $128,611 $12,861 $141,472 June 30, 2029 $133,113 $13,311 $146,424 Total $622,046 $62,204 $684,250 The total amount for audit services for the fiscal years ended June 30, 2025 , through June 30, 2029, would be $622,046, with the 10% annual contingency of $62,204, for a total not-to-exceed amount of $684,250. The fees would be paid by the General Fund, with a proportional allocation to the city’s major funds and related agencies.
ALTERNATIVE ACTION
The council may choose to s elect an alternative firm to perform independent audit services for the City. This is not recommended, since staff completed a lengthy RFP process to arrive at the selected consultant.
COORDINATED WITH
N/A
STAFF CONTACT
John Furtado, Director of Finance
(707) 428-7629
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Proposed Agreement
CITY OF FAIRFIELD
RESOLUTION NO. 2025-59
AUTHORIZING EXECUTION OF A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF
FAIRFIELD AND THE PUN GROUP, LLP FOR INDEPENDENT ANNUAL AUDIT SERVICES
WHEREAS, the City of Fairfield (City) issued a request for proposal for audit services in December 2024; and
WHEREAS, the City received six proposals from audit firms which were evaluated by the Finance Department; and
WHEREAS, with the guidance of the Audit Committee, staff is recommending The Pun Group LLP for the audit services for the Fiscal Years 2025, 2026, 2027, 2028, and 2029, including a 10% contingency for any additional costs associated with the Single Audit.
NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:
Section 1. The city manager is hereby authorized to execute the professional services agreement between the City of Fairfield and The Pun Group, LLP for independent annual audit services in the amount of $622,046, with an annual 10% contingency of $62,204, for a total not -to-exceed amount of $684,250.
PASSED AND ADOPTED this 15th day of April 2025, by the following vote:
AYES: MEMBERS: MOY/BERTANI/CARR/PANDURO/SANDHU/TONNESEN/WILLIAMS NOES: MEMBERS: _________________________________________________ ABSENT: MEMBERS: _________________________________________________ ABSTAIN: MEMBERS: _________________________________________________
_________________________________________________
MAYOR
ATTEST:
___________________________
CITY CLERK
1 Revised 1/09/2025
PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT is made at Fairfield, California, as of ________________, 20____, by and between the City of Fairfield, a municipal corporation (the “CITY") and The Pun Group, LLP ("CONSULTANT"), who agree as follows:
1) SERVICES. Subject to the terms and conditions set forth in this Agreement, CONSULTANT shall provide to the CITY the services described in Exhibit “A,” which consists of the proposal submitted by CONSULTANT. CONSULTANT shall provide said services at the time, place, and in the manner specified in Exhibit “A.”
2) PAYMENT. CITY shall pay CONSULTANT for serv ices rendered pursuant to this Agreement at the times and in the manner set forth in Exhibit “B.” The payments specified in Exhibit “B” shall be the only payments to be made to CONSULTANT for services rendered pursuant to this Agreement.
CONSULTANT shall submit all billings for said services to the CITY in the manner specified in Exhibit “B.” 3) FACILITIES AND EQUIPMENT. CONSULTANT shall, at its sole cost and expense, furnish all facilities and equipment which may be required for furnishing services pursuant to this Agreement. 4) GENERAL PROVISIONS. The general provisions set forth in Exhibit “C” are part of this Agreement. In the event of any inconsistency between said general provisions and any other terms or conditions of this Agreement, the provisions set forth in Exhibit “C” shall control. 5) INSURANCE REQUIREMENTS. The insurance requirements set forth in Exhibit “D” are part of this Agreement. In the event of any inconsistency between said general provisions and any other terms or conditions of this Agreement, the requirements set forth in Exhibit “D” shall control. 6) BUSINESS LICENSE. The CONSULTANT shall obtain and keep current a business license fo r work within the City of Fairfield pursuant to Chapter 10B of the Fairfield City Code, with respect to the gross receipts received pursuant to this Agreement. No payments shall be made to any SERVICE PROVIDER until such business license has been obtained, and all fees paid therefore, by the CONSULTANT. Business license applications and information may be obtained from the Community Development Department, Fairfield City Hall, 1000 Webster Street, Fairfield, CA 94533-4883, (707-428- 7509) and online at
www.fairfield.ca.gov/biz.
7) EX HIBITS. All exhibits referred to herein are attached hereto and are by this reference incorporated herein.
8) TERM. This agreement shall be in effect through March 31, 2029 or until the scope of work completed.
9) GOVERNING LAW AND VENUE. Should either Party to this Agreement bring legal action against the other, the validity, interpretation, and performance of this Contract shall be controlled by and construed under the laws of California, excluding Califo rnia’s choice of law rules. Venue for any such action relating to this Agreement shall be in the Solano County Superior Court. 10) Where applicable, vehicles with a GVWR greater than 8,500 lbs. and light-duty package delivery vehicles operated in California may be subject to the California Air Resources Board Advanced
2 Revised 1/09/2025
Clean Fleets regulations. Such vehicles may therefore be subject to requirements to reduce emissions of air pollutants. For more information, please visit the CARB Advanced Clean Fleets webpage at https://ww2.arb.ca.gov/our-work/programs/advanced-clean-fleets 11) ENTIRE AGREEMENT. This Agreement, including any other documents incorporated herein by specific reference, represents the entire and integrated agreement between CITY and CONSULTANT.
This Agreement supersedes all prior oral or written negotiations, representations or agreements. This Agreement may not be modified or amended, nor any provision or breach waived, except in a writing signed by both parties which expressly refers to this Agreement. 12) COUNTERPARTS. This Agreement may be executed in counterpart originals, duplicat e originals, or both, each of which is deemed to be an original for all purposes. 13) NOTICES. This Agreement is managed and administered on the CITY’s behalf by th e individual named below. All invoices must be submitted and approved by this individual and all notices shall be given to the CITY using the following contact information:
CITY Contact: Myles Dixon
E-mail: [email protected]
Address: 1000 Webster Street, Fairfield CA 94533 Telephone: (707) 428-7567
Notices must be given to CONSULTANT at the following:
CONSULTANT Contact: Coley Delaney
E-mail: [email protected]
Address: 2121 North California Boulevard, Suite 290 Walnut Creek CA 94596 Telephone: (858) 242-5101
EXECUTED as of the day first above-stated.
City of Fairfield, a municipal corporation
By:__________________________________
CONSULTANT
By:___________________________________
City of Fairfield
28 | PUNGROUP.CPA
Specific Audit Approach
S
cope of Work, Audit Approach, and Methodology
The City of Fairfield is requesting the Firm to perform Professional Auditing Services and issue opinions on the City’s fina
ncial statements. The audits are to be completed in accordance with all applicable and generally accepted auditing standards, including, but not limited to, the following:
x Generally accepted auditing standards as set forth by the American Institute of Certified Public Accountants (AICPA).
x US General Accounting Office’s (GAO) Standard for Audit of Governmental Organizations, Programs, Activities, and Functions.
x Local Governments and Governmental Accounting Standards Board (GASB) Pronouncements. x The standards applicable to financial audits contained in the most current version of the Generally Accepted Government Auditing Standards (Yellow Book), issued by the Comptroller General of the United States. x The provisions of the Single Audit Act as amended in 1996. x The provisions of the US Office of Management and Budget (OMB) Uniform Guidance (formerly known as Circular A-133), Audits of State and Local Governments and Non-profit Organizations, and the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
The Firm will perform the following services:
9 Financial Statement Audits and issuance of an opinion statement on the Annual Comprehensive Financial Report of the City of Fairfield and the financial statements of its component units. The audit will be conducted in accordance with Generally Accepted Government Auditing Standards. The report will be in full compliance with all current GASB pronouncements.
The following component units will be audited as part of the audit of the City’s financial statements:
x Fairfield Transportation Fund
x Solano Animal Control
In addition, the Firm will assist in meeting the requirements for the Government Finance Officers Association (GFOA) “Certificate of Achievement for Excellence in Financial Reporting.” 9 Prepare a Single Audit Report which will include the following:
o Report on compliance and internal control over financial reporting based on an audit of financial statements performed in accordance with Government Auditing Standards. o
Report on compliance with requirements applicable to each major program, internal control over compliance, and on the schedule of expenditures of federal awards in accordance with Unifor m G
uidance, “Audits of State and Local Governments,” and the Single Audit Act of 1984 (Public Law 98-502).
o
Schedule of Expenditures of Federal Awards.
o Notes to Schedule of Expenditures of Federal Awards.
o Schedule of Findings and Questioned Costs.
o Any other required schedules or reports.
o Prepare the Data Collection Form for Reporting on Audits of States, Local Governments, and Non- Profit Organizations.
9 Issue a separate Management and GAGAS Letters that includes recommendations for improvements on internal control, accounting procedures, and other significant observations that are considered to be no reportable conditions.
9 Provide Agreed Upon Procedures performed related to the Golf Courses, REAC, calculation of the GANN Appropriations Limit, and compliance reports for the City’s measure P and UUT revenues. 9 Perform the City’s Financial Transactions Report to the State Controller. 9 If required, the Firm will conduct the Annual Street Report to the State Controller.
EXHIBIT A
City of Fairfield
29 | PUNGROUP.CPA
Provided By Client (PBC) Lists: They will be provided for both interim and final audits according to an agreed-upon timeline between the engagement team and the City in order to be reasonably prepared for a field audit. The engagement team will meet with the City’s management during the initial planning stage to discuss audit schedules and review the prior year's audit findings (if any). We will deliver a list of all documents to be provided by the City’s staff. Once such materials are agreed upon by the engagement team and City’s finance personnel, no other schedules will be requested unless new information comes to light in the course of test work.
Attendance at Meetings and Hearings: The engagement team will participate in as many meetings with staff as needed to perform the work scope tasks, present the audit plan prior to beginning fieldwork, and discuss the draft audit reports. The team will attend public meetings to present and discuss its findings and recommendations. Once all issues of discussion are resolved, the completed Financial Reports, Single Audit report (if applicable), and other reports will be delivered to the City according to the agreed-upon schedule.
Proposed Audit Adjustments: All proposed adjusting journal entries by the Firm will be discussed and explained in a timely manner with the designated Finance Department personnel. Such proposed adjustments will be in a format that shows the lowest level of posting detail needed for data entry in the general ledger systems.
Supplemental Reports, Audits, or Agreed-Upon Procedures: Other services, such as agreed-upon procedures, may be deemed necessary. These services will be performed at agreed-upon rates and will be added to a written agreement before commencing audit work. The Firm and the City of Fairfield will discuss and approve the scope and associated costs of these tasks.
Advice and Consultation: Will be provided throughout the year on matters relating to accounting and financial reporting. Such services do not include any task that entails significant research or a formal report.
GASB Implementation: The Firm will provide technical assistance and training in the implementation of applicable GASB pronouncements not yet in effect. We have a dedicated partner, Mr. Jack Georger, who will be responsible for providing advice and consultation for the implementation of these new standards. The Firm will advise the City on the applicability of accounting and reporting standards and other accounting issues and provide guidance on new note disclosures, GASB implementations, and other reporting requirements. We will also provide training, resources, and information on topics relevant to the City’s financial reporting and operations. ( Based on the scope, additional charges may apply.)
Report of all Irregularities and Illegal Acts: The Firm will make an immediate written report of all irregularities and illegal acts or indications of illegal actions of which we may become aware to the following parties:
x David Gassaway, City Manager
x Savita Chaudhary, Assistant City Manager
The engagement team will also make all communications to the City required by the audit standards under which the engagement is performed.
Working Paper Retention and Access to Working Papers : The Firm will retain, at its own expense, all working papers and reports for a minimum of five (5) years unless the City of Fairfield notifies the Firm in writing of the need to extend the retention period. The Firm will make working papers available upon request, to the following parties or their designees:
x City of Fairfield
x Parties designated by the federal or state governments or by the City of Fairfield as part of an audit quality review process
x Auditors of entities of which the City of Fairfield is a sub-recipient of grant funds x State of California, Office of the State Controller
Also, we will comply with reasonable requests from successor auditors and allow them to review working papers that relate to matters of continuing accounting significance.
City of Fairfield
30 | PUNGROUP.CPA
Methodology and Segmentation of Engagement
The Firm’s audit approach consists of six phases: Engagement Acceptance and General Planning, Planning and Internal Control Evaluation, Fieldwork, Post Fieldwork, Report Preparation and Review, and Final Production.
1. Engagement Acceptance and General Planning: The engagement partner and manager will meet with City’s management to obtain an update on the current City policies and procedures, help identify risk areas and new operations and establish any specific requirements they may have. Our team will work on the identification of unique transactions, implementation of new GASB pronouncements, and develop the audit work plan for the engagement. Proposed timeline: April of each year.
2. Planning and Internal Control Evaluation: The engagement team, including the engagement partner, will assess accounting policies adopted by the City in order to obtain an understanding of its structure and its operating environment. Also, our team will review internal controls on all significant transaction classes, perform walkthroughs and/or tests of internal controls, perform preliminary analytical procedures, develop an initial risk assessment, evaluate Single Audit compliance, identify any audit issues, and prepare confirmation correspondence. The engagement team and City’s Management will establish expectations, including responsibilities and assignments for the year-end fieldwork, and will hold a progress status meeting at the end of the interim phase. Proposed timeline: May of each year.
3. Fieldwork: The engagement team, including the engagement partner, will conduct audit procedures on account balances in the general ledger, finish confirmation procedures, perform data analysis using our AI tools, search for unrecorded liabilities, perform substantial analytical review procedures, complete work on compliance with Federal Assistance, and conclude fieldwork. The engagement team and City Management will hold an exit conference at year-end. Periodic update meetings will be held to communicate audit progress to management. Proposed timeline: first two weeks of November.
4. Post Fieldwork: During the phase, the engagement team, including the engagement partner, will review all documents and evaluate commitments and contingencies. The team will perform an assessment of the going concern and jointly plan for the next steps. Proposed timeline:
immediately after fieldwork completion.
5. Report Preparation and Review: The Firm will review and prepare audit reports and perform quality control procedures following the Quality Control Standards issued by the AICPA. We will also examine reports for compliance with GFOA reporting guidelines at no additional cost. Any comments will be recorded in a letter to management. At the City’s request, the engagement partner and manager will present the audit to City’s Management and other governing bodies. Proposed timeline: draft copies of all audit reports will be delivered to staff by mid-November.
6. Final Production: The final phase of our approach entails obtaining the management representation letter and final financial statement report, which may include a final presentation to the City’s Management and other governing bodies (if applicable).
Proposed timeline: final reports will be delivered by December 15 th of each year.
The Firm will complete the audit fieldwork and issue all reports within the established timeframe, assuming no internal circumstances within the City causes delays in the audit.
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Level of Staff and Number of Hours to be Assigned to Each Segment of the Engagement
The Pun Group LLP understands that the City is not only looking to employ our auditing services but is also seeking to receive value within that professional relationship. We believe that our value derives from the in-depth knowledge, experience, and commitment that our auditing firm employs. We stress and emphasize “employ” because all of the knowledge and expertise listed on paper will not benefit you un less it is applied. That is why we have developed a plan that we feel will accomplish the objectives of the City and your particular needs. Our Firm will utilize the information that you have shared with us and our experience from our previous audits of this nature from various government entities and cities to develop a practical plan for all major areas.
Estimated Total Hours*:
*Does not include CPE hours related to Governmental Webinars and/or optional services.
Sample Size and the Extent to Which Statistical Sampling is to be Used in this Engagement
In our audit approach, random and statistical sampling is used in conjunction with our skilled judgment and knowledge of each situation. When designing an audit sample, our auditors consider the purpose of the audit procedure and the characteristics of the population from which the sample will be drawn. We determine a sample size sufficient to reduce sampling risk to an acceptably low level and select items for such a task in a way that we can reasonably expect it to be representative of the relevant sample and likely to provide the auditor with a reasonable basis for conclusions about the population.
Enhancing Auditing Quality with Artificial Intelligence
There are plenty of challenges with established audit practices. Outdated CAAT tools, sampling practices, and the explosive growth of big data are some of the examples, and they all present significant barriers to detecting anomalies, intentional or otherwise, in financial data. The Pun Group deploys a comprehensive, risk-based approach, complemented by using MindBridge™'s Artificial Intelligence Platform, to conduct our audit. Through this tool, we can seamlessly analyze thousands and thousands of financial and operating data and records, identifying and cataloging significant risks in mere seconds .
The AI Auditor platform works by our side, augmenting our capacity to detect errors or fraud in the collected data not only by analyzing the entire set but by cross-correlating dozens of testing criteria against pre-established data points and presenting us with a view of every user, vendor, and transaction, by risk. All are happening within moments of ingesting analyzed data, which is something standard audit procedures simply cannot accomplish.
We utilize these tools to allow our audit team to increase efficiency in the audit process, enhance the existing quality of our work, provide directed testing in areas subject to the highest risk, and quickly assimilate large amounts of data your staff would typically be asked to gather. The tools also help us to meet our professional requirements regarding fraud and internal control, allowing us to:
9 Run Benford’s analysis to check for fraud in transactions. 9 Increase the value of audit findings with complete, 100% data coverage. 9 Isolate risk and control issues before they impact your operations. 9 Improve productivity by automating procedures and eliminating manual tasks. 9 Conduct more direct, efficient, and effective audits to improve overall service quality.
Partner(s)
Director/
Manager
Supervisory
Staff Staff Clerical Total
Engagement Acceptance & General Planning 3 5 12 16 1 37 Planning & Internal Control Evaluation 5 7 18 25 1 56
Fieldwork 24 36 90 124 5 278
P o s t F i e l d w o r k 1 62 46 08 2 31 8 6
Report Preparation & Review 24 36 90 124 5 278
Final Production 8 12 30 41 2 93
Total* 80 120 300 412 16 928
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Our engagement team easily imports data in a secure environment from the City’s financial software and extracts useful data for testing and analytical procedures particular to the following areas:
x Successful Fraud Test x Kickback or Conflict-of-Interest Schemes x Questionable Invoices x Dormant Account Schemes
x Phantom Vendor Schemes x Mone y Laundering Schemes
Type and Extent of Analytical Procedures to be Used in the Engagement
Analytical procedures are one of many financial audit processes that help an auditor understand the client’s operation and changes in the environment and identify potential risk areas to plan other audit procedures. Such procedures include a comparison of financial information on prior periods, budgets, forecasts, and industry benchmarks. We use trend and ratio analysis to identify any uncertain or unusual events. To perform these analyses, our Firm surveys cities and counties and develops benchmarks on specific vital financial indicators, such as the cost of services to tax revenues ratios, average general fund balance, capital assets, debt-to-capital, and general fund unassigned fund balance to total general fund expenditures, etc. Our engagement members have extensive experience in successfully implanting analytical procedures to the City’s benefit.
Our analytical procedures process is performed during three stages of the audit: (a) at the start, (b) in the middle, and (c) at the end. These three stages are risk assessment procedures, substantive analytical procedures, and final analytical procedures:
x Risk assessment procedures are used to assist the auditor in understanding the business better and in planning the nature, timing, and extent of audit procedures.
x Substantive analytical procedures are used to obtain evidential matters about particular assertions related to the account balances or classes of transactions. During the interim phase, our engagement team will set up expectations for the year-to-date results and balances and compare them with budgeted and prior-year amounts. This process allows us to forecast year-end amounts, reducing the workload during the year-end phase and allowing us to focus on areas of concern.
x Final analytical procedures are used as an overall review of the financial information in the last review stage of the audit. The Engagement Partner(s) and Manager(s) will perform a high-level analytical analysis of the financial information, comparing its data both quantitatively and qualitatively to ensure the amounts are fairly presented in all material respect in the financial statements.
Approach to be Taken to Gain and Document an Understanding of the Internal Control Structure
Audit risk assessment is established by an internal control review, combined with the engagement team’s understanding of the City’s operations and accounting software. Using the Committee of Sponsoring Organizations (COSO) Framework, staff members will evaluate the City’s processes and identify any control deficiencies. These diagnostic review procedures allow the engagement team to assess the City’s systems and controls and to provide constructive feedback to management.
During our initial planning phase of the audit, our engagement team, including the engagement Partner and Manager, will obtain an understanding of the entity and its environment. It is an essential aspect of performing an audit under generally accepted auditing standards. That understanding establishes a frame of reference within which the auditor plans the procedures and exercises professional judgment about assessing risks of material misstatement of the financial statements and responding to those risks throughout the examination.
During the interim phase of the audit, our engagement team will perform a walkthrough of all significant accounting systems, including processes for financial reporting, revenue recognition and cash receipts, purchasing/contract management and cash disbursements, payroll and related liabilities, and others. Our auditors will obtain the written policies and procedures, inquiring accounting personnel, and document the process in either a flowchart or narrative summary format. After gaining an understanding of the accounting and internal control systems, our auditor will make a preliminary assessment of control risk, at the assertion level, for each material account balance or class of transactions.
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The form and extent of this documentation are influenced by the size and complexity of the entity and the nature of its accounting and internal control systems. Generally, the more complex the entity’s accounting and internal control systems and the more extensive the auditor’s procedures, the broader our documentation will need to be.
Approach to be Taken in Determining Laws and Regulations that Will be Subject to Audit Test Work
The Firm stays continually up to date with audit requirements—including new regulations, compliance supplements, state guidelines, and related contracts—to ensure that we conduct audits under applicable laws and regulations. We test transactions for compliance with the Single Audit Act, California Government Code, GANN Appropriations Limit, provisions of applicable grant guidelines, requirements of local measures, and others.
For example, the Single Audit Act requires that we determine which grants to include in our audit and select transactions from those grants for detailed testing. While most items will be tested as part of the Interim phase, we cannot determine which grants will be selected for the Single Audit until the year-end/fieldwork stage of the audit.
Our compliance audits of cash, investments, debt covenants, and other areas will be performed following the California Government Code, which has many provisions and regulations covering investments.
Approach to be Taken in Drawing Audit Samples for Purposes of Tests of Compliance
To test compliance, we will follow the AICPA’s Audit Sampling Considerations of Uniform Guidance Compliance Audits. We will select an appropriate sample size based on our professional judgment and knowledge. Any deviations from control and compliance requirements will be documented.
Audit Firm’s Expectations of the Role and Participation of City’s Staff in the Audit Process
The engagement team will meet with the City’s management during the initial planning stage to discuss audit schedules and review the prior year's audit findings (if any). We will deliver a list of all documents to be provided by the City’s staff. Once such materials are agreed upon by the engagement team and City’s finance personnel, no other schedules will be requested unless new information comes to light in the course of test work.
Our goal is to cause the least amount of interruptions to the City’s daily operations; therefore, to the extent possible, we will use information in the form available from the City’s records.
We believe client/engagement team communication is vital to perform results satisfactorily. With that sentiment in mind, we will hold regular meetings with the City’s management to determine the status of the audit as well as any items which will require special attention. Open and frequent communication is critical.
Objectives of Our Services
Our primary objective for the proposed audit is to examine the City’s financial statements and express our opinion on the fairness of the presentation, following generally accepted accounting principles. Other objectives that will benefit the City include the following:
x To offer beneficial observations and recommendations about policies and procedures for accounting and operating controls
x To identify opportunities to make City operations more efficient and reduce costs x To perform the audit efficiently and effectively. Disruptions to office operations are kept to a minimum x To provide continuing advisory services so the City can implement recommendations x To meet these objectives at no additional cost to the City
The Engagement Team will perform the audit abiding by the Firm’s quality-control procedures, which include following standard audit programs, careful planning, using industry-standardized software for auditing and internal control documentation, and welcoming an objective review of audit work. In other words, our client-tailored approach emphasizes careful planning, open communication, and proper assignment of responsibilities.
The Firm will supply portable computers to the on-site staff members.
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Identification of Anticipated Potential Audit Problems
While we do not expect any problems with the audit, we will carefully investigate and monitor the following relevant accounting issues:
Investments:
x Compliance with GASB 31 and GASB 34
x Authorization and approval process for City investments x Controls to assure the City’s compliance with investment limitations and types of specific investments x Monitoring by the City of its investments
Financial Reporting:
x Compliance with current reporting and disclosure requirements issued by GASB x Compliance with the various GASBs in effect
x Perform valuations of OPEB benefits to determine the liability for all benefits promised to active, retired, and inactive plan members as of each valuation date
x Compliance with Governmental Accounting Standards Board (GASB) Statements 74 and 75 x Compliance with infrastructure obligations and regulatory provisions
Internal Control Structure:
x City’s internal control functions and compliance with proper internal control philosophies x Computer-system processes and controls and adequacy of the control environment
Cost Proposal
Certification
We are committed to the performance of a high-quality audit at the most reasonable fee level possible, both initially and throughout the engagement. Also, our partners will provide advice and consultation as needed at no additional cost to the City of Fairfield.
Name of Firm: The Pun Group
LLP – Certified Public Accountants and Business Advisors Contact Name: Coley Delaney, CPA
Contact Email Address: [email protected]
Authorization to Represent the Firm
I, the undersigned, certify I am duly authorized to represent The Pun Group LLP and am empowered to submit this bid. In addition, I certify I am authorized to contract with the City of Fairfield on behalf of the Firm.
February 21, 2025
_________________________________________ _______________________________
Coley Delaney, CPA | Partner Date
The Pun Group
LLP
Total All-Inclusive Maximum Price
Our proposed fees for Professional Auditing Services for the fiscal year ending June 30, 2025, with the option to audit the City of Fairfield financial statements for each of the four subsequent fiscal years, are presented in the following page.
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Out of Pocket Expenses are Included in the Total All-Inclusive Maximum Price and Reimbursement Rates The Firm’s policy is to maintain flexible billing rates to meet the needs of clients and help them control costs. In the interest of starting our long-term relationship, we will absorb expenses such as travel and printing costs. Additionally, our Partners will be available to provide advice and consultation as necessary to the City of Fairfield. The Firm will also absorb these costs.
Rates for Additional Professional Services
Below are the Firm’s hourly billing rates, delineated by staffing levels:
Any supplemental reports, audits, or agreed-upon procedures not covered by this proposal may be added to a written agreement prior to commencing audit work. The Firm and the City will discuss and approve the scope and associated costs of these tasks. Any additional work will be performed at the above-quoted hourly rates.
Manner of Payment
Engagement Team members are required to maintain timesheets detailing the date, number of hours, and work performed for every audit task. The Firm will collect these timesheets and bill the City of Fairfield at the rates outlined in the Total All-Inclusive Maximum Price section in four stages: (1) at the conclusion of the planning phase, (2) at the conclusion of the interim phase, (3) at the conclusion of the Year-End phase, (4) and after presentation and acceptance of the final audit reports. Interim billings will cover a period not less than a calendar month. The billing amounts generally break down as follows:
Partner(s) 300 $
Director(s) 250 $
Senior Manager(s) 225 $
Manager(s) 200 $
Supervisor(s) 175 $
Senior Accountant(s) 150 $
Staff Accountant(s) 125 $
Clerical 100 $
Hourly Billing Rates
Work Performed % of Proposal Amount
Planning 10%
Interim 40%
Fieldwork 40%
Presentation and Acceptance of Reports 10%
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EXHIBIT “B”
PAYMENT
1) The total contract price for services rendered by CONSULTANT under this Agreement shall be as specified below, with the exception of additional single audit fee for an additional programs which are required to be selected:
FY 2025 - $116,000
FY 2026 - $120,060
FY 2027 - $124,262
FY 2028 - $128,611
FY 2029 - $133,113
2) Payment shall be made to CONSULTANT on a time and materials basis, and CONSULTANT shall submit monthly invoices to the Finance Department for the same. 3) Any additional meetings or work required beyond that set forth in Exhibit “A” shall be mutually agreed to in writing by the CITY and CONSULTANT, and shall be billed on a time and materials basis to the City of Fairfield.
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EXHIBIT “C”
GENERAL PROVISIONS
1) INDEPENDENT CONSULTANT. At all times during the term of this Agreement, CONSULTANT shall be an independent contractor and shall not be an employee of CITY. CITY shall have the right to control CONSULTANT only insofar as the results of CONSULTANT's services rendered pursuant to this Agreement; however, CITY shall not have the right to control the means by which CONSULTANT accomplishes services rendered pursuant to this Agreement. 2) LICENSES; PERMITS; ETC. CONSULTANT represents and warrants to CITY that CONSULTANT has all licenses, permits, qualifications, and approvals of whatsoever nature which are legally required for CONSULTANT to practice CONSULTANT's profession. CONSULTANT represents and warrants to CITY that C O N S U L T A N T s h a l l , a t i t s s o l e c o s t a n d e x p e n s e , k e e p i n e f f e c t a t a l l t i m e s d u r i n g t h e t e r m o f t h i s Agreement, any licenses, permits, and approvals which are legally required for CONSULTANT to practice his profession.
3) TIME. CONSULTANT shall devote such servic es pursuant to this Agreement as may be reasonably necessary for satisfactory performance of CONSULTANT's obligations pursuant to this Agreement. CONSULTANT shall adhere to the Schedul e of Activities as described in their Executive Summary.
4) CONSULTANT NOT AN AGENT. Except as CITY may specify in writing, CONSULTANT shall have no authority, express or implied, to act on behalf of CITY in any capacity whatsoever as an agent.
CONSULTANT shall have no authority, express or implied, pursuant to this Agreement, to bind CITY to any obligation whatsoever.
5) ASSIGNMENT PROHIBITED. No party to this Agreement may assign any right or obligation pursuant to this Agreement. Any attempted or purported assignment of any right or obligation pursuant to this Agreement shall be void and of no effect.
6) PERSONNEL. CONSULTANT shall assign only competent personnel to perform services pursuant to this Agreement. In the event that CITY, in its sole discretion, at any time during the term of this Agreement, desires the removal of any person or persons assigned by CONSULTANT to perform services pursuant to this Agreement, CONSULTANT shall remove any such person immediately upon receiving notice from CITY of the desire of CITY for the removal of such person or persons. 7) STANDARD OF PERFORMANCE. CONSULTANT shall perform all services required pursuant to this Agreement. Services shall be performed in the manner and according to the standards observed by a competent practitioner of the profession in which CONSULTANT is engaged in the geographical area in which CONSULTANT practices his profession. All products which CONSULTANT delivers to CITY pursuant to this Agreement shall be prepared in a workmanlike manner, and conform to the standards of quality normally observed by a person practicing in CONSULTANT's profession. CITY shall be the sole judge as to whether the product of the CONSULTANT is satisfactory.
8) CANCELLATION OF AGREEMENT. This Agreement may be canceled at any time by the CITY at its discretion upon written notification to CONSULTANT. CONSULTANT is entitled to receive full payment for all services performed and all costs incurred up to and including the date of receipt of written notice
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to cease work on the project. CONSULTANT shall be entitled to no further compensation for work performed after the date of receipt of written notice to cease work. All completed and incomplete products up to the date of receipt of written notice to cease work shall become the property of CITY. 9) PRODUCTS OF CONSULTING. All products of the CONSULTANT provided under this Agreement shall be the property of the CITY.
10) INDEMNIFY AND HOLD HARMLESS.
a) If AGREEMENT is an agreement for design professional services subject to California Civil Code § 2782.8(a) and CONSULTANT is a design professional, as defined in California Civil Code § 2782.8(c)(2), to the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY and its elected officials, officers, agents, employees and designated volunteers (collectively “CITY Indemnitees”) from and against any and all claims, losses, liabilities, damages, costs and expenses, including attorney’s fees and costs, to the extent they arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT. CONSULTANT’s duty to defend shall consist of reimbursement of defense costs incurred by CITY in direct proportion to the CONSULTANT’s proportionate percentage of fault. CONSULTANT’s percentage of fault shall be determined, as applicable, by a court of law, jury or arbitrator. In the event any loss, liability or damage is incurred by way of settlement or resolution without a court, jury or arbitrator ha ving made a determination of the CONSULTANT’s percentage of fault, the parties agree to mediation with a third party neutral to determine the CONSULTANT’s proportionate percentage of fault for purposes of determining the amount of indemnity and defense cost reimbursement owed to the CITY.
b) If AGREEMENT is not an agreement for design professional services subject to California Civil Code § 2782.8(a) or CONSULTANT is not a design professional as defined in California Civil Code § 2782.8(c)(2), to the fullest extent allowed by law, CONSULTANT shall indemnify, defend, and hold harmless the CITY Indemnitees from all claims, suits, or actions of every name, kind and description, brought forth on account of injuries to or death of any person or damage to property arising from or connected with the willful misconduct, negligent acts, errors or omissions, ultra-hazardous activities, activities giving rise to strict liability, or defects in design by CONSULTANT or any person directly or indirectly employed by or acting as agent for CO NSULTANT in the performa nce of this Agreement, including the concurrent or successive passive negligence of the CITY Indemnitees.
It is understood that the duty of CONSULTANT to indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code.
Acceptance of insurance certificates and endorsements required under this Agreement does not relieve CONSULTANT from liability under this indemnification and hold harmless clause. This indemnification and hold harmless clause shall apply whether or not such insurance policies are determined to be applicable to any such damages or claims for damages.
CONSULTANT’S responsibility for such defense and indemnity shall survive termination or completion of this agreement for the full period of time allowed by law. 11) PROHIBITED INTERESTS. No employee of the CITY shall have any direct financial interest in this agreement. This agreement shall be voidable at the option of the CITY if this provision is violated.
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12) LOCAL EMPLOYMENT POLICY. The CITY desires wherever possible, to hire qualified local residents to work on city projects. Local resident is defined as a person who resides in Solano County.
The CITY encourages an active affirmative action program on the part of its contractors, consultants, and developers. When local projects require, subcontrac tors, contractors, consultants and developers will solicit proposals from qualified local firms where possible.
As a way of responding to the provisions of the Davis-Bacon Act and this program, contractor, consultants, and developers will be asked, to provide no more frequently than monthly, a report which lists the employee's name, job class, hours worked, salary paid, city of residence, and ethnic origin. 13) CONSULTANT NOT A PUBLIC OFFICIAL. CONSULTANT is not a "public official" for purposes of Government Code §§ 87200 et seq. CONSULTANT conducts research and arrives at his or her conclusions, advice, recommendation, or counsel independent of the control and direction of the CITY or any CITY official, other than normal contract monitoring. In addition, CONSULTANT possesses no authority with respect to any CITY decision beyond these conclusions, advice, recommendation, or counsel. 14) EMPLOYMENT DEVELOPMENT DEPARTMENT REPORTING REQUIREMENTS. When the CITY executes an agreement for or makes payment to CONSULTANT in the amount of $600 (six hundred dollars) or more in any one calendar year, CONSULTANT shall provide the following information to CITY to comply with Employment Development Department (EDD) reporting requirements:
a) Whether CONSULTANT is doing business as a sole proprietorship, partnership, limited liability partnership, corporation, limited liability corporation, non-profit corporation or other form of organization.
b) If CONSULTANT is doing business as a sole proprietorship, CONSULTANT shall provide the full name, address and social security number of the sole proprietor. c) If CONSULTANT is doing business as other than a sole proprietorship, CONSULTANT shall provide CONSULTANT’S federal tax identification number.
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EXHIBIT “D”
INSURANCE REQUIREMENTS
CONSULTANT shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the CONSULTANT, its agents, representatives, or employees. 1) MINIMUM SCOPE AND LIMITS OF INSURANCE
a) Commercial General Liability coverage (occurrence Form CG 00 01) with minimum limits of $1,000,000 per occurrence for bodily injury, personal injury, products and completed operations, and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.
b) Automobile Liability coverage (Form CA 00 01 with Code 1 – any auto) with minimum limits of $1,000,000 per accident for bodily injury and property damage. c) Workers’ Compensation insurance as required by the State of California and Employers’ Liability insurance, each in the amount of $1,000,000 per accident for bodily injury or disease. 2) INDUSTRY SPECIFIC COVERAGES
If checked below, the following insurance is also required.
Professional Liability Insurance / Errors and Omissions Liability in the minimum amount of $1,000,000 per occurrence.
Pollution Liability Insurance in the minimum amount of $1,000,000 per occurrence Garage Keepers Insurance in the minimum amount of $1,000,000 per occurrence Fidelity / Crime / Dishonesty Bond in the minimum amount of $____________ MCS-90 Endorsement to Business Automobile insura nce for transportation of hazardous materials and pollutants
Builder’s Risk / Course of Construction Insurance in the minimum amount of $__________.
3) INSURANCE PROVISIONS
a) DEDUCTIBLES AND SELF-INSURED RETENTIONS. Any deductibles or self-insured retentions must be declared to and approved by the CITY. At the option of the CITY, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the CITY, its officers, officials, employees and volunteers; or the CONSULTANT shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. b) The general and automobile liability policies (and if applicable, pollution liability, garage keepers x
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liability and builder’s risk policies) are to contain, or be endorsed to contain, the following provisions:
i) The CITY, its officers, officials, employees and volunteers are to be covered as insureds as respects: liability arising out of work or operations performed by or on behalf of the CONSULTANT; products and completed operations of the CONSULTANT; premises owned, occupied or used by the CONSULTANT; and automobiles owned, leased, hired or borrowed by the CONSULTANT. The coverage shall contain no special limitations on the scope of protection afforded to the CITY, its officers, officials, employees or volunteers. ii) For any claims related to this project, the CONSULTANT’S insurance coverage shall be primary insurance as respects the CITY, its officers, officials, employees and volunteers. Any insurance or self-insured maintained by the CITY, its officers, officials, employees or volunteers shall be in excess of the CONSULTANT’S insurance and shall not contribute with it. iii) Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the CITY, its officers, officials, employees or volunteers.
iv) The CONSULTANT’S insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. v) Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days’ prior written notice by certified mail, return receipt requested, has been given to the CITY.
vi) The policy limits of coverage shall be made available to the full limits of the policy. The minimum limits stated above shall not serve to reduce the CONSULTANT’S policy limits of coverage.
Therefore, the requirements for coverage and limits shall be (1) the minimum coverage and limits specified in this agreement, or (2) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the named insured, whichever is greater. c) ACCEPTABILITY OF INSURER. Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the CITY.
VERIFICATION OF COVERAGE. CONSULTANT shall furnish the CITY with original endorsements effecting coverage required by this Exhibit D. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf; on forms equivalent to CG 20 10 11 85, subject to CITY approval; and submitted electronically via email at [email protected]. All insurance certificates and endorsements are to be received and approved by the CITY before work commences. At the request of the CITY, CONSULTANT shall provide complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications. d) SUB-CONTRACTORS. CONSULTANT shall require all subcontractors to procure and maintain insurance policies subject to the requirements of Exhibit D. Failure of CONSULTANT to verify existence of sub- contractor’s insurance shall not relieve CONSULTANT from any claim arising from sub-contractors work on behalf of CONSULTANT.
Agenda Item No: O.1
AGENDA REPORT
DATE: April 15, 2025
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2025-60 PW West Texas Complete Streets Award and Fiscal Year 2024- 2025 Budget Update
Approving the Plans and Specifications and Awarding a Contract to Ghilotti Brothers, Inc. for the West Texas Street Complete Streets Project and Authorizing an Update to the Fiscal Year 2024 - 2025 Budget
Funding Source : $11,597,710 ($10,068,180, State Grant [Active Transportation Program]; $284,530, Intergovernmental Loan Fund [Broadband]; $600,000, General Fund [Measure P ]; $300,000, Solid Waste; $345,000 Senate Bill-1)
Contact: David Vong, (707) 428-7748
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
The Heart of Fairfield Specific Plan (Plan), adopted by the City Council in May 2017, identified the renovation of West Texas Street between Beck and Pennsylvania Avenue as a top priority. These improvements are key to the implementation of the Plan and catalyzing private investment in the Plan area. The City was awarded $10.9 million in federal grant funds in 2021 to fund the construction of the complete streets improvements which were identified by the public through the development of the Plan. This resolution will award a contract in the amount of $10,084,965 for the construction of the West Texas Street Complete Streets Project (CPW070110) to Ghilotti Brothers, Inc. (Ghilotti Bros.) and update the fiscal year (FY) 2024-2025 budget.
DISCUSSION
West Texas Street became a local street when Caltrans rerouted Highway 12 and relinquished the right-of-way for the former Highway 12 to the City in the mid -1990s. The City launched a comprehensive planning process in 2015 to actively engage residents, businesses, property owners, developers, neighborhood representatives, elected and appointed officials, and other
stakeholders to establish a long -term vision t hrough 2040 and beyond for the revitalization of Downtown Fairfield. This plan includes the West Texas Street corridor and the adjacent areas.
The community outreach and engagement process included two workshops, a community open house, online information, surveys, and outreach booths at community events. This process took a year, and 300 people participated.
The public identified the redesign of West Texas Street as a high priority. In addition to helping to catalyze public investment in the area, these i mprovements to West Texas Street were identified as needed to accomplish the public’s goals of:
• Improved traffic flow
• Increased traffic safety
• Improved walkability and bike-ability
• Increased lighting
• Improved overall aesthetics
• Enhanced landscaping
The Plan identified the replacement of the five-lane highway design for West Texas with a three- lane complete streets design. The Plan included Class IV separated bikeways; widened sidewalks, landscaped buffers, and two additional marked crossings: one new traffic signal at 2nd St and one rectangular rapid flashing beacon near 1st Street.
The Complete Streets Plan includes a raised center median between 1st Street and Pennsylvania Avenue, as well as portions of West Texas between Beck Avenue and 5th Street. Center medians prohibit left turns and are considered with special care. Additionally, center medians have the benefit of improving safety and traffic flow. An analysis of crash data for West Texas Street showed that the block between 1st Street and Pennsylvania Avenue had a very high rate of serious collisions. According to a review of 5 years’ worth of data, 35% of crashes and 65% of fatalities along the entire stretch of the Project occurred in this block and involved many turns into or out of driveways. This section of West Texas Street also has a school crossing. Based on the data, a center median in this block was necessary to address this history of issues and provide necessary safety for all mode s of transportation. The median betwe en Beck Avenue and 5 th Street was added for safety and improved traffic flow.
The reduction in vehicle travel lanes from five to three was necessary to achieve the safety goals of the Plan. Although there are fewer lanes in the new design, the clear separation of modes of transportation (i.e., vehicles, bicycles, and pedestrians) and the corresponding reduction in the number of accidents provide far smoother and safer traffic flow. Modeling, which has been calibrated with real -world examples shows that the overall capacity of the new three -lane complete streets configuration is only slightly less than the five -lane configuration and has adequate capacity to handle the projected traffic volumes.
The City applied for grant funding for the street improvements in the 2020 Active Transportation Program (ATP) Cycle. The City was notified in 2021 that they were successful and granted $10.9 million in ATP funds. The funds combined with local matching funds provided for the installation
of all the proposed street improvements between Beck and Pennsylvania Avenue in a single phase.
The improvement design was recently completed, and the Project was placed on a bid with the engineer’s estimate of $11,274,000. Seven Contractors submitted bids for the Project and bids were opened on March 11, 2025. The apparent low bidder was Ghilotti Bros. of San Rafael in the amount of $10,084,965. Staff reviewed the bid package submitted by Ghilotti Bros. and determined that the bid was responsible and responsive. Staff recommend that the council adopt the attached resolution awarding a contract to Ghilotti Brothers, Inc. for the construction of the Project. The total project authorization is $11,597,710 which includes a 15% contingency to account for potential unforeseen underground utility conflicts during construction.
Construction of the improvements includes a complete renovation of the streets with narrow pavement, widened sidewalks, new driveways, enhanced landscaping, and other street improvements and is expected to take approximately nine months to complete. This level of improvement will impact businesses and traffic during construction. To minimize these impacts, the Project requires the contractor to maintain through traffic, minimize lane closures and flagging, provide notice to property owners of driveway clo sures for replacement and limits the duration that these driveways can be closed. As part of the Project award, three years of ongoing landscape maintenance is included and will be awarded as a separate contract once the project construction is completed.
FINANCIAL IMPACT
The construction authorization for this project will be $11,597,710, which is the total bid amount plus a 15% contingency ($10,084,965 total bid + $1,512,745 contingency). Funding for this Project is captured in Project No. CPW070110.
The City has been awarded a total of $1,370,000 of the Regional Transportation Impact Fee (RTIF) for the Project. Amendment 1 to the Solano Transportation Authority (STA) Funding Agreement increased the RTIF by $175,000 from $1,195,000 to $1 ,370,000 for design only. $284,530 from the Intergovernmental Loan Fund (Fund 551) dedicated to Broadband will be transferred to the Project for construction. A total of $ 459,530 ($284,530 + $175,000) will be transferred to the Streets Capital Project Fund (Fund 252; CPW070110) requiring a budget adjustment to the 2024- 2025 Fiscal Year budget.
Project budget savings , accomplished by value engineering and low bids, in the construction budget for FY 2024-2025 Budget will allow a release of $3,480,470 of SB-1 funding (Fund 163) funding from the project. The overall project expenditures will be decreased by $3, 305,470.
Finance has confirmed that adequate reserves in CPW070110 exist and that no projects will be jeopardized by the reallocation of these expenditures.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
In addition to the public outreach associated with the development of the Plan, staff also held a community Open House on November 15, 2023, to inform residents, property , and business
owners about the project. The City’s design consultant also worked with City staff to coordinate with approximately 40 property owners to solicit rights -of-entry for construction of the improvements.
After the Project is awarded, staff will work closely with the Marketing and Outreach Division (MOD) team to inform the public of the Project, and the potential impact residents and business owners may experience from construction activities. Once a construction schedule has been solidified, staff will re-engage the public and businesses in the surrounding area.
ALTERNATIVE ACTION
If the council has any questions, the recommended action may be delayed so that staff can provide the necessary background information. Staff does not recommend this, however, as this will delay the delivery of the Project and potentially lose grant funding.
COORDINATED WITH
Finance and Information Technology
STAFF CONTACT
David Vong, Senior Civil Engineer
(707) 428-7748
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Bid Results
Attachment 4: Project Budget
Attachment 5: STA Funding Agreement RTIF Amendment 1
CITY OF FAIRFIELD
RESOLUTION NO. 2025-60
APPROVING THE PLANS AND SPECIFICATIONS AND AWARDING A CONTRACT TO GHILOTTI BROTHERS, INC. FOR THE WEST TEXAS STREET COMPLETE STREETS PROJECT AND AUTHORIZING AN UPDATE TO THE FISCAL YEAR 2024-2025 BUDGET
WHEREAS, the Heart of Fairfield Specific Plan identified the improvement of the West Texas Steet Project (CPW070110) between Beck and Pennsylvania Avenue as a complete street to be a high priority, and
WHEREAS, in 2017, the City was awarded $ 10,903,000 in Active Transportation Program grant funds to construct the complete street improvements; and
WHEREAS, the plans and specifications for the West Texas Complete Streets Project (Plans) have been completed by GHD Engineers; and
WHEREAS, 36 months of landscape maintenance that will be performed after construction will be awarded using a Landscape Maintenance Agreement; and
WHEREAS, bids were opened on March 11, 2025; and
WHEREAS, staff has reviewed the bids and found the bid submitted by, Ghilotti Brothers, Inc. of San Rafael in the amount of $10,084,965 is the lowest responsive and responsible bid; and
WHEREAS, staff is recommending the City Council award the contract to Ghilotti Brothers, Inc. in the amount of $10,084,965; and
WHEREAS, additional funding in the amount of $284,530 for broadband infrastructure (Fund 551) was not allocated in the City’s approved fiscal year (FY) 2024-2025 Budget, thus requiring an adjustment of $284,530 to the Project construction budget; and
WHEREAS, per Resolution No. 2023 -215, the city has received $1,195,000 in Regional Transportation Impact Fee (RTIF) for the Project, and is receiving an additional $175,000 of RTIF per the First Amendment to Regional Transportation Impact Fee Funding Agreement Between Solano Transportation Authority and City of Fairfield for the West Texas Complete Streets Project on August 20,2024; and
WHEREAS, $3,480,470 of SB1 funding is to be released from West Texas Complete Streets Project; and
RES. NO. 2025-60
WHEREAS, the revised appropriation constitutes an update to the FY 2024 -2025 Budget approved pursuant to Resolution No. 2014-133.
NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:
Section 1. The Plans for the Project are hereby approved.
Section 2. The city manager or designee is authorized to enter into a contract with Ghilotti Brothers, Inc. of San Rafael, California for the Project for a not-to-exceed amount of $10,084,965.
Section 3. The city manager or designee is authorized to enter into a separate Landscape Maintenance Agreement with Ghilotti Brothers, Inc. of San Rafael, California for a not-to-exceed amount of $100,800.
Section 4. The public works director is here by authorized to execute and administer change orders for an amount not-to exceed 15% ($1,512,745) of the above contract amount.
Section 5. The city manager is authorized to enter into an escrow agreement for security deposits in lieu of retention for said contract, if necessary.
Section 6. The city manager is authorized and directed to all things necessary to implement the above-mentioned contract.
Section 7. The council hereby approves a budget transfer of $284,530 to cover broadband infrastructure construction cost from the Intergovernmental Loan Fund (Fund 551).
Section 8. The council hereby approves an appropriation of $175,000 in RTIF to the Capital Streets Fund (CPW070110) for design.
Section 9. The council hereby approves the release of $3,480,470 of SB1 funding from the West Texas Complete Streets Project (CPW070110).
RES. NO. 2025-60
PASSED AND ADOPTED this 15th day of April 2025, by the following vote:
AYES: MEMBERS: MOY/BERTANI/CARR/PANDURO/SANDHU/TONNESEN/WILLIAMS NOES: MEMBERS: _________________________________________________ ABSENT: MEMBERS: _________________________________________________ ABSTAIN: MEMBERS: _________________________________________________
_________________________________________________
MAYOR
ATTEST:
___________________________
CITY CLERK
City of Fairfield
Public Works Department
West Texas Street Complete Streets Project
ATPL-5132(056)
NAME OF PROJECT
March 11, 2025 at 2:00 p.m.
DATE OF BID
NO. BIDDER AMOUNT
1 Ghilotti Bros., Inc. San Rafael, CA $10,084,965.00
2 Ghilotti Construction Company, Inc. Santa Rosa, CA $10,578,207.50 3 R&R Pacific Construction Woodland, CA $10,869,301.00
4 Team Ghilotti, Inc. Petaluma, CA $11,217,141.00
5 McGuire and Hester Sacramento, CA $12,633,480.50
6 DeSilva Gates Construction LLC Dublin, CA $13,444,333.00 7 Teichert Construction Roseville, CA $13,530,118.18
Engineer’s Estimate $11,274,000.00
Note: This bid summary shows the bids in order but is not a determination of award, responsiveness, or responsibility of bids received. The values computed are values based on staff’s interpretation of the bids, correction of mathematical errors and assumptions made where ambiguous and/or illegible entries are encountered during the review process.
CONSTRUCTION
10,903,000.00 Total ATP
838,000.00 Design ATP
167,600.00 Only 20% of deisgn can shift to construction 10,065,000.00 Construction ATP
10,232,600.00 ATP Availabe for Construction
858,890.00 Broadband need confirmation if IT approves as they agreed to the estimate amount of $284,530 600,000.00 Measure P
300,000.00 Solid Waste
4,100,000.00 SB1 ($45K reserved to pay PTAP26 Local Contribution) 16,091,490.00 Total Budget for Construction
10,084,965.00 Award Amount
1,512,744.75 15% contingency
11,597,709.75 Total Authorization
4,493,780.25 Remaining Construction Funds
393,780.25 Remaining if we transfer all of SB1 back
DESSIGN
710,000.00 Con Lic Tax
1,195,000.00 RTIF
175,000.00 RTIF Amendment 1
2,080,000.00 TOTAL
1,550,118.00 GHD Contract
155,012.00 GHD Contingency
1,705,130.00 Total Authorization
374,870.00 Remainign Design Fund (Not including soft cost)
FIRST AMENDMENT TO REGIONAL TRANSPORTATION IMPACT FEE
FUNDING AGREEME NT BETWEEN
SOLANO TRANSPORTATION AUTHORITY
AND
CITY OF FAIRFIELD
FOR
WEST TEXAS COMPLETE STREETS PROJECT
This First Amendment ("First Amendment") is made between the Solano Transportation Authority, a joint powers authority organized under Government Code section 6500 et seq. consisting of the County of Solano and the cities of Benicia, Dixon, Fairfield, Rio Vista, Suisun, Vacaville, and Vallejo ("STA"); and the City of Fairfield, a municipal corporation ("City"), each individually referred to as "Party" and collectively as the "Parties" to be effective as of , 2024
1. RECITALS
A. The Parties entered into a Funding Agreement on August 31, 2023 (the "Agreement") to allocate $1,195,000 of Districts 2 and 4 Regional Traffic Impact Fee ("RTIF") funds for the West Texas Complete Streets project (the "Project").
B. The Parties now desire to amend the Agreement ("First Amendment") to increase the budget for the Project.
C. The Parties agree to amend the Agreement as set forth below.
2. AGREEMENT
This First Amendment represents a budget increase of $175,000 from RTIF District 4, for a total RTIF commitment to the Project of $1,370,000.
3. EFFECTIVENESS OF CONTRACT
Except as set forth in this First Amendment, all of terms and conditions specified in the Agreement remain unchanged and in full force and effect.
SOLANO TRANSPORTATION AUTHORITY
By:
Daryl K. Halls, Executive Director
Approved as to Form:
By:
Megan J. Callaway, ST A Legal Counsel
anager
Approved as to Form:
<S) ___:___ L ------- By:
City Attorney
RT!F Funding Agreement Fisrt Amcndment_ST A-Co FF 07-2024 August 20
Agenda Item No: O.2
AGENDA REPORT
DATE: April 15, 2025
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2025-61 CM Supporting Shipbuilding in Solano County
Supporting Efforts to Attract Shipbuilding to Solano County
Funding Source: N/A
Contact: David Gassaway, (707) 428-7400
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
Solano County has a long history of shipbuilding, notably with the establishment of the Mare Island Naval Shipyard in 1854. Since Mare Island’s closing in 1996, many of the more than 5,800 jobs in shipbuilding were lost. With a renewed U.S. focus on increa sing shipbuilding capacities, Solano County is well-positioned to benefit from the establishment of new shipbuilding facilities and the jobs and positive economic impact they bring.
DISCUSSION
The U.S. Government has expressed interest in making needed investments to expand national shipbuilding capabilities. In the 1970’s, the U.S. built around 5% of the world's ocean-going vessels. Today, that number has dropped below 0.2% of total global outp ut by gross tonnage.
The U.S. decline in shipbuilding presents not only national defense implications but also a loss of well-paid jobs in the maritime trades. Attracting shipbuilding back to Solano County represents a great opportunity for economic develo pment and can benefit from the federal government ’s pursuit of policies to expand shipbuilding capabilities.
Solano County’s location along the S an Pablo and Suisun Bays provides natural deep-water shipping access to the Pacific Ocean. Established in 185 4, Mare Island was the first shipbuilding port on the west coast of the U.S. Mare Island was a critical economic engine for the region, employing nearly 40,000 people during World War II.
Recently, the federal government has expressed intent on renewing U.S. shipbuilding capabilities for both civilian use and the U.S. Navy. A bipartisan, bicameral bill, the “Shipbuilding and Harbor Infrastructure for Prosperity and Security for America Act of 2024,” or “SHIPS for America Act of 2024,” was introduced in lat e 2024 and is co-sponsored by Congressman Garamendi . The bill seeks to make sweeping reinvestment into American Maritime capabilities. Additionally, President Trump created an Office of Shipbuilding and has expressed plans for executive orders to strengthen U.S. shipbuilding capabilities.
In addition to Mare Island, and its capability for renewed shipbuilding and/or repair facilities, Solano County also benefits from miles of deepwater access along the Carquinez Strait all the way to the Sacr amento River. Southeastern Solano County, east of Collinsville at the southern end of the Montezuma Hills, also has land that could be utilized as new shipbuilding facilities. In fact, the County of Solano identified 1,400 acres of land in that area in their 2008 General Plan, specifically for waterfront industrial land uses. A new shipbuilding facility at that location would likely generate thousands of new jobs and investment, from which Fairfield can benefit.
In January 2025, the City Council identifie d Economic Development as a top priority. Attracting new businesses and well -paid jobs will play a critical role in ensuring Fairfield’s financial sustainability well into the future. The attached resolution expresses the City Council’s full support in att racting new shipbuilding facilities to Solano County. It also authorizes the city manager to undertake activities and work with regional partners to help in attracting necessary investment and calls on elected representatives in Sacramento and Washington D .C. to support regional efforts to restore and enhance shipbuilding in Solano County.
The resolution was coordinated with city managers from cities across Solano County.
FINANCIAL IMPACT
This item is a position of support only. There is no financial impact.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
None.
ALTERNATIVE ACTION
The council may choose not to approve the resolution. Doing so may negatively impact a regional effort to attract shipbuilding to Solano County.
COORDINATED WITH
Solano County City Managers
STAFF CONTACT
David Gassaway, City Manager
(707) 428-7400
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
CITY OF FAIRFIELD
RESOLUTION NO. 2025-61
SUPPORTING EFFORTS TO ATTRACT SHIPBUILDING TO SOLANO COUNTY
WHEREAS, Solano County has a storied history of shipbuilding, notably with the establishment of the Mare Island Naval Shipyard in 1854, in the City of Vallejo, which served as the first United States Navy base on the Pacific Ocean and was instrumental in U.S. Pacific Naval operations until its closure in 1996; and
WHEREAS, the Mare Island Naval Shipyard played a pivotal role during World War II, significantly contributing to the nation's defense efforts, and bolstering the local economy through job creation and industrial development, eventually building more than 520 vessels; and
WHEREAS, even after the closure of the Mare Island Naval Shipyard, the Mare Island Dry Dock continues operating to this day, providing dry-docking, ship repair, and conversions, major overhauls, and emergency ship services to both government and commercially owned vessels; and
WHEREAS, also within Solano County, the city of Benicia was previously home to the Turner/Robertson Shipyard, founded by renowned shipbuilder Matthew Turner, who was the most prodigious shipbuilder in North America around the turn of the 20 th century and over a career spanning nearly 40 years, constructed 228 vessels including numerous sailing ships, steamers, and other vessels; and
WHEREAS, the Southern Pacific Railroad, which was succeeded by the Central Pacific Railroad, constructed and operated the ferry Solano, launched in 1879, which was a marvel of its time and the largest railroad ferry in the world for 35 years until its sister ship, the Contra Costa, was commissioned. The ferries were capable of transporting entire trains across the Carquinez Strait, showcasing Solano County's innovative spirit in maritime transportation; and
WHEREAS, Solano County forms the northern boundary of the Carquinez Strait, a tidal estuary of the Sacramento and San Joaquin rivers that connect Suisun Bay with San Pablo Bay, the northern extension of the San Francisco Bay, providing access to deep water shipping channels further inland to the Port of Sacramento and the Port of Stockton; and
WHEREAS, Solano County is a central point within the Northern Calif ornia megaregion which is home to more than 12.6 million residents with a combined GDP surpassing $1.21 trillion, representing 3.9% of the U.S. population, and 5.9% of the U.S. economy; and
RES. NO. 2025-61
WHEREAS, Solano County is proudly the home of the California Ma ritime Academy, and due to Solano’s central location, is within a 2 -hour drive of Stanford University, UC Berkeley, UC San Francisco, UC Davis, and five California State University campuses; and
WHEREAS, southeastern Solano County, at the tail end of the Sacramento River, has a 2 -mile- long stretch of waterfront along the deepwater shipping channel which is identified by the County of Solano General Plan for water-dependent industrial, which calls for waterfront industrial such as manufacturing and shipbuilding; and
WHEREAS, given the area’s rich history in shipbuilding, central location within the Northern California megaregion, access to world -class educational institutions, sheltered deep water access, and land use designations that allow for waterfront manufacturing, Sola no County is uniquely positioned to restore U.S. shipbuilding dominance on the west coast, leveraging its unparalleled location, infrastructure, and workforce; and
WHEREAS, establishment of a new shipbuilding facility east of Collinsville would help to re vive Solano County’s proud maritime heritage, leveraging the county's strategic location, existing infrastructure, and workforce to enhance national security and stimulate economic growth; and
WHEREAS, the development of such a facility is anticipated to create substantial employment opportunities, not only for Solano County residents but also for surrounding counties including Contra Costa, Napa, Yolo, San Joaquin , and Sacramento, fostering a broad regional workforce; and
WHEREAS, a revitalized shipbuilding ecosystem will generate demand for supporting industries such as steel fabrication, advanced manufacturing, maritime logistics, and maritime technology innovation throughout the greater Northern California megaregion; and
WHEREAS, this maritime development will strengthen regional supply chain networks and spur further infrastructure investment, benefiting all cities within Solano County, as well as the County of Solano; and
WHEREAS, the economic stimulus from this regional initiative is expected to e nhance regional resilience and competitiveness, creating cross-county collaborative opportunities for education, workforce development and training, and research partnerships with local colleges and universities; and
WHEREAS, the City of Fairfield recognizes the potential for the development of a shipbuilding facility to serve as a generational opportunity for the entire region, fostering long-term economic prosperity, reinforcing the county's historical identity as a hub of maritime excellence, and uplifting communities across the region; and
RES. NO. 2025-61
WHEREAS, the City of Fairfield is committed to collaborating with regional and national partners to support initiatives that honor our rich maritime history and contribute to the economic vitality of our community and its neighboring jurisdictions.
NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:
Section 1. The City of Fairfield is in full support of a coordinated regional effort to attract the investment necessary to construct a new shipbuilding facility in southeastern Solano County , and/or Mare Island, that be nefits all cities and Solano County economically while addressing environmental impacts.
Section 2. Authorizes the city manager to undertake activities in partnership with the Solano Economic Development Corporation, the County of Solano, and each of the incorporated cities within the county to represent the interests of the region in attracting investment for shipbuilding, repair facilities, and other maritime industries.
Section 3. Calls on our elected representatives at the state and federal level, i ncluding the Governor of California, to offer their full support to make Solano County a part of demonstrating California’s might in innovation and economic prowess and restore U.S. maritime dominance.
PASSED AND ADOPTED this 15th day of April 2025, by the following vote:
AYES: MEMBERS: MOY/BERTANI/CARR/PANDURO/SANDHU/TONNESEN/WILLIAMS NOES: MEMBERS: _________________________________________________ ABSENT: MEMBERS: _________________________________________________ ABSTAIN: MEMBERS: _________________________________________________
_________________________________________________
MAYOR
ATTEST:
___________________________
CITY CLERK
Agenda Item No: O.3
AGENDA REPORT
DATE: April 15, 2025
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: CM Council Discussion and Direction Regarding Commercial Cannabis Businesses
City Council Discussion and Direction Regarding Commercial Cannabis Businesses
Funding Source: N/A
Contact: David Gassaway, (707) 428-7400
RECOMMENDED ACTION
City Council discussion and direction to staff, as appropriate.
STATEMENT OF ISSUE
Mayor Moy requested a discussion item be placed on the agenda for council to discuss the implementation of the Commercial Cannabis Businesses ordinance, Chapter 10E.1 of the Fairfield Municipal Code.
DISCUSSION
Mayor Moy requested a discussion item be p laced on the agenda for council to discuss the implementation of the Commercial Cannabis Businesses ordinance, Chapter 10E.1 of the Fairfield Municipal Code.
FINANCIAL IMPACT
There is no financial impact related to council discussion. Any desired changes to the Commercial Cannabis Business ordinance could have a financial impact depending on the changes identified.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
None
ALTERNATIVE ACTION
N/A
COORDINATED WITH
N/A
STAFF CONTACT
David Gassaway, City Manager
(707) 428-7400
[email protected]
ATTACHMENTS
None
Agenda Item No: P.1
AGENDA REPORT
DATE: April 15, 2025
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2025-37 CD Commercial Cannabis - Authentic Fairfield LLC
Rescinding the Approved Issuance of a Commercial Cannabis Retail Business Permit to Authentic Fairfield LLC
Funding Source: N/A
Contact: Dave Zellers, (707) 428-7436
RECOMMENDED ACTION
Hold public hearing and adopt resolution.
STATEMENT OF ISSUE
The City Council requested agendizing a Public Hearing for consideration of rescinding the Preliminary Approval for a Commercial Cannabis Retail Business Permit awarded to Authentic Fairfield LLC on June 22, 2021, by Resolution 2021-143.
DISCUSSION
In June 2021, Authentic Fairfield LLC was granted approval for a Commercial Cannabis Business Permit pending the completion of actions and meeting specific conditions per the City Resolution 2021-143. Since June 2021, the complete set of conditions has not been satisfied, nor ha s documentation been provided to indicate whether some or all the conditions have been satisfied.
Authentic Fairfield LLC's last contact with City staff overseeing the commercial cannabis program prior to the start of this public hearing was in July of 202 3 and indicated the business was exploring the possibility of utilizing a different location than the one specified in its initial application. As there had been no communication with the City since to indicate a change in ownership or location, at any point in the last three years, as of Section 1.5 of Exhibit A, included with Resolution 2021-143 and Fairfield Municipal Code Chapter 10E; also known as Commercial Cannabis Businesses (FMC-10E), the council may consider rescinding the preliminary approval for the permit granted in 2021.
On October 15, 2024, the council passed and adopted Ordinance No. 2024-08 which includes an amendment to FMC-10E allowing for the revocation of Preliminary Approvals for a Commercial Cannabis Business Permit. During the presen tation of the first reading on October 1, 2024, of Ordinance No. 2024 -08, two council members requested to add a Public Hearing for the rescinding of the preliminary approval granted to Authentic Fairfield LLC. Furthermore, the city attorney stated during the first reading presentation that regardless of the changes to the FMC - 10E the council could rescind preliminary approval as it relates to the conditions at the time it was conferred.
As of November 2024, the State of California Department of Cannabis C ontrol records did not show the same owners for Authentic Fairfield LLC as the application submitted to the city in September 2020. The Public Hearing Notice for the council meeting on December 3, 2024, was given to Authentic Fairfield LLC in November 2024. Authentic Fairfield LLC provided digital copies of two operating agreements; both agreements are dated after the date of the permit application. Neither of these documents, which address responsibilities, management, shares, and other operational considerations, were provided to the city at any point prior to this matter being added to the agenda at the council’s request. Therefore, they could not be reviewed as part of the preliminary approval process nor were they provided in a timely manner during the period wherein Authentic Fairfield LLC was to be abiding by the terms and conditions set forth in Resolution 2021-143. At the request of Authentic Fairfield LLC council continued their hearing to a future date.
The council was briefed on the legal aspect s of the matter at a Closed Session on January 21, 2025, prior to the continuation of the Public Hearing on March 4, 2025. The hearing, having been continued, was scheduled for the March 18, 2025, meeting. In the days prior to March 4, 2025, the council me eting of various interested parties provided further information via written correspondence to council for their consideration in the matter. Because of the limited time for the council to review the said information, at the request of the mayor , should any parties wish to provide additional information for the council to consider in the matter, it should be submitted in writing no later than March 14, 2025. Subsequently, the council held a Special Meeting on Friday, March 14, 2025, and voted to continue the hearing to a future date past March 18, 2025.
After the conversation between representatives of the City and Authentic Fairfield LLC the date of April 15, 2025, was selected and advertised for the Public Hearing continuation.
FINANCIAL IMPACT
N/A
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
The initial Public Hearing was advertised in the Daily Republic on November 17, 2024. A certified letter was sent to the individuals listed on the 2020 initial permit application as owners of Fairfield Authentic LLC dated November 14, 2024, to make them aware of the initial Public Hearing. Further continuation of the Public Hearing was advertised in the Daily Republic on February 19, 2025, and March 4, 2025. As the mayor announced at the March 4, 2025, council meeting that the continuation date would be March 18, 2025, additional advertising is not
required. Following the council’s special meeting on March 14, 2025, no immediate date was selected for continuation beyond the March 18, 2025, council meeting. The date for continuation on April 15, 2025, was advertised in the Daily Republic on March 30, 2025.
ALTERNATIVE ACTION
The council may choose to vote against the passage of the resolution.
COORDINATED WITH
City Attorney’s Office and City Manager’s Office
STAFF CONTACT
Dave Zellers, Director of Community and Economic Development (707) 428-7436
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Resolution 2021-143 with Exhibits
CITY OF FAIRFIELD
RESOLUTION NO. 2025-37
RESCINDING THE APPROVED ISSUANCE OF A COMMERCIAL CANNABIS RETAIL
BUSINESS PERMIT TO AUTHENTIC FAIRFIELD LLC
WHEREAS, on June 22, 2021, the City Council of the City of Fairfield approved Resolution 2021 - 143 granting Authentic Fairfield LLC; and
WHEREAS, Fairfield Municipal Code Chapter 10E Section 11(b) states:
“(b) The City Council may revoke a preliminary approval or a commercial canna bis business permit for a violation of any State or local law, including, but not limited to, this Chapter; a violation of any condition or term of the commercial cannabis business permit; and/or a violation of any condition or term made a part of any other permit or entitlement granted to the commercial cannabis business or its owner;” and
WHEREAS, Section 1.5 in Exhibit A as part of City of Fairfield Resolution 2021-143 states:
“Notwithstanding the issuance of a commercial cannabis business permit, the contents of AUTHENTIC FAIRFIELD LLC's application and the conditions of approval as set forth shall remain applicable and be fully enforceable through the City's police power. In the event AUTHENTIC FAIRFIELD LLC's operations deviate from AUTHENTIC FAIRFIELD LLC's application in any way, violate these conditions of approval, result in a public or private nuisance, or are otherwise inconsistent with any federal, state, or local, law, rule, or regulation, the City shall have all remedies available, in law or in equity to enforce the terms of AUTHENTIC FAIRFIELD LLC's application, conditions, laws, rules and regulations. Notwithstanding the above, the city manager may approve deviations from AUTHENTIC FAIRFIELD LLC's application to the extent necessary to further the purposes of FMC Chapter 10E or to protect public health, safety, and welfare;” and
WHEREAS, Fairfield Municipal Code 10E Section 14(b) states:
“The permittee shall file an updated application form with the City Manager at least 30 calendar days prior to an anticipated change to any other information listed in the permit application, including but not limited to a change in contact information, change in trade name, or change in the security plan; provided, however, that a change in ownership shal l comply with Section 10E.15;” and
WHEREAS, Fairfield Municipal Code 10E Section 15(a) states:
“Prior to any transfer or change in ownership of a commercial cannabis business permit, the permittee shall file a new application with the City Manager. The app lication shall be accompanied by a transfer fee in an amount set by resolution of the City Council (or if not set, shall be the same amount as an application fee);” and
RES. NO. 2025-37
WHEREAS, Fairfield Municipal Code 10E Section 15(b) states:
“The City Manager shall review the application to determine whether the new owner(s) meet the minimum permit eligibility criteria. If the transfer involves a substantial change in ownership, the City Council shall hold a public hearing and approve or deny the transfer pursuant to the procedures for approval of a new permit application. A "substantial change in ownership" shall mean any change in the permittee’s business structure or ownership of the business entity that results in a change of more than 51% of the original ownership. A transferred permit shall be valid for a period of one year from the date of the City Council’s approval;” and
WHEREAS, State of California Department of Cannabis Control records for Authentic Fairfield LLC ownership do not match the ownership record provided as part of the application for a Commercial Cannabis Retail Business Permit provided to the City of Fairfield and the business has not communicated to the City Manager as prescribed in Fairfield Municipal Code Chapter 10E that an ownership change has taken place nor provided the required information for an ownership change; and
WHEREAS, Authentic Fairfield LLC has not wholly complied with the conditions of approval for the permit set forth as part of Resolution 2021-143, nor provided documentation of progress on satisfying all conditions in full in order to receive a Commercial Cannabis Retail Business Permit.
NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:
Section 1. The City Council revokes the preliminary approval of Resolution 2021 -143 for a Commercial Cannabis Retail Permit granted to Fairfield Authentic LLC due to the applicant’s failure to comply with Fairfield Municipal Code Chapter 10E Sections 14(b), 15(a), and 15(b), and directs the city manager to do all things necessary to effectuate this revocation.
PASSED AND ADOPTED this 15th day of April 2025, by the following vote:
AYES: MEMBERS: MOY/BERTANI/CARR/PANDURO/SANDHU/TONNESEN/WILLIAMS NOES: MEMBERS: ______________________________________________________ ABSENT: MEMBERS: ______________________________________________________ ABSTAIN: MEMBERS: ______________________________________________________ ______________________________________________________
MAYOR
ATTEST:
___________________________
CITY CLERK
CITY OF FAIRFIELD
RESOLUTION NO. 2021- 143
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD APPROVING ISSUANCE OF A
COMMERCIAL CANNABIS RETAIL BUSINESS PERMIT TO AUTHENTIC FAIRFIELD LLC SUBJECT TO
CONDITIONS AND IN ACCORDANCE WITH THE REQUIREMENTS AND PROCEDURES OF FAIRFIELD MUNICIPAL CODE CHAPTER 10E
WHEREAS, on June 16, 2020, the City Council of the City of Fairfield adopted Ordinance 2020- 07, adding Chapter 10E (Commercial Cannabis Businesses) to the Fairfield Municipal Code ( FMC) to permit commercial cannabis businesses within the City and establish a regulatory program requiring all commercial cannabis uses to obtain a commercial cannabis business permit issued by the City prior to commencing operation; and
WHEREAS, as required by FMC Sections 10E.8 and 10E.9, on July 7, 2020, the council approved Resolution 2020- 136, establishing the procedures to govern the application process by which decisions would be made regarding the issuance of commercial cannabis business permits in a document known as " Application Procedures & Guidelines for a Commercial Cannabis Business Permit" ( the " Application Procedures"); and
WHEREAS, during the application period conducted from September 8, 2020 to October 23, 2020, the City received fourteen applications for retail permits and one application for a manufacturing permit; and
WHEREAS, the council approved Resolution 2021- 68 and Resolution 2021- 80 to modify the Application Procedures in response to unanticipated circumstances; and WHEREAS, all applicants for retail permits made presentations to the council on April 28, 2021 and April 29, 2021; and
WHEREAS, on May 4, 2021, the council held a public hearing to receive public testimony on the applications and to consider the merits of all fourteen applications for retail permits; and WHEREAS, following the close of the public hearing, the council considered the evaluation criteria set forth in Resolution 2021- 80 and narrowed their review to five top applicants and gave preliminary approval to two of these applicants; and
WHEREAS, since new information was received on one of the remaining three top applicants after the close of the public hearing, the council moved to continue the discussion on these three top applicants so that this information could be entered into the public record at a subsequent limited hearing; and
RES. NO. 2021- 143
WHEREAS, on June 1, 2021, the council held a limited public hearing to discuss the new information that was received by the council and awarded preliminary approval to operate a commercial cannabis retail business to Authentic Fairfield LLC; and WHEREAS, the council directed staff to prepare a resolution authorizing the city manager to issue a commercial cannabis business permit to Authentic Fairfield LLC subject to conditions and in accordance with the requirements and procedures of FMC Code Chapter 10E.
NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:
Section 1. Pursuant to FMC Section 10E.9(g), the council adopts the following findings in support of issuing a commercial cannabis business permit to Authentic Fairfield LLC:
a) The location and site characteristics of the proposed cannabis business are consistent with all applicable state laws and City standards and guidelines. The application submitted by Authentic Fairfield LLCdemonstrates that the proposed business meets or exceeds the requirements of FMC Chapter 10E Section 18, Location and Design of Cannabis Businesses.
The business conforms with the City' s general plan and is located in and meets all development requirements for the CR (Regional Commercial) district. It is to be located within an existing single -tenant building and commercial center and meets parking requirements with 101 parking spaces reserved on site to serve the business. It is located over 600 feet away from sensitive uses. The business shall be constructed in a manner that minimizes odors to surrounding uses, and promotes quality design and construction, consistent with surrounding properties. The location is adequate in size and shape to accommodate the walls, fences, parking and loading facilities, landscaping, and all items required for the development of the business. The business can be adequately served by existing highways and road network. As conditioned, the location and site characteristics of the business will be consistent with all applicable state laws and City standards and guidelines.
b) All provisions have been made to ensure that the operation of the commercial cannabis business will not create excessive demands for police service or other public services, and that the business will benefit the City. The business meets the safety and security requirements as specified in FMC Chapter 10E, as conditioned. A safety plan and security plan has been prepared by licensed professionals and will be subject to the review and approval the Fairfield Fire Department and Police Department. The business will have 24- hour on -site security which will deter criminal activity on -site. This in addition to compliance with the requirements of FMC Chapter 10E.22, Security Measures, will ensure the business does not create an excessive demand for police service. The business will be located in a building that will be served with adequate electricity, sewerage, disposal, water, fire protection, and storm drainage facilities for a cannabis business. The business will be required to enter into a community relations agreement with the Cityfor the benefit of the city, committing to the provision of benefits and programs such as a youth
RES. NO. 2021- 143
educational program, a compassionate care program, the establishment of a drug prevention community fund, and the provision of a minimum of one -and -one- half percent of gross annual profit to the community fund, in perpetuity. As conditioned, the operation of the commercial cannabis business will not create excessive demands for police service or other public services, and the business will benefit the city.
Section 2. Based on the above findings, the council hereby approves the application by Authentic Fairfield LLC to operate a commercial cannabis — retail business at 2470 Martin Road.
Section 3. The council hereby authorizes the city manager to formally issue a commercial cannabis business permit to Authentic Fairfield LLCto operate a retail cannabis business at 2470 Martin Road after the director of community development confirms that all of the required Land use approvals have been obtained, subject to the Conditions of Approval attached hereto as Exhibit A" and incorporated herein by this reference, and in accordance with the requirements and procedures of FMC Code Chapter 10E.
Section 4. The council finds that approving the application for a commercial cannabis business permit by Authentic Fairfield LLC is categorically exempt from the requirements of Calfiornia Environmental Quality Act ( CEQA) pursuant to Section 15301 of the CEQA Guidelines Existing Facilities). Permit approval would allow for operation of the commercial cannabis business in an existing single -tenant building in an urban area. An expansion of use beyond the former commercial use is not contemplated, and minor interior or exterior alterations as proposed are consistent with the Section 15301 exemption. No environmentally sensitive areas or historic resources are on the site, and there are not unusual circumstances or cumulative effects that could result in a significant effect on the environment.
PASSEDAND ADOPTEDthis 22"dday of June 2021, by the following vote:
4 AYES: COUNCILMEMBERS: PRICE /- BfiiT l / MOY / PANDURO / TIMM / TONNESEN / VACCARO NOES: COUNCILMEMBERS:(' A
ABSENT: COUNCILMEMBERS: ` 0 4
ABSTAIN: COUNCILMEMBERS: NOri
MAYOR
CITY CLERK
EXHIBIT A
Commercial Cannabis — Retail
Conditions of Approval
Business Name: Authentic Fairfield LLC
DBA: Authentic Fairfield
Address: 2470 Martin Road
File No.: CRM2020- 003
AUTHENTIC FAIRFIELD LLC has been granted preliminary approval to operate a commercial cannabis — retail business in the City of Fairfield at 2470 Martin Road as described in the application and shown on the site plan submitted to the City on October 15, 2020.
The City Council may impose such terms, conditions, and restrictions on the operation, management, and conduct of the commercial cannabis business, as deemed necessary to protect the health, safety, or welfare of the City or to ensure compliance with state or local laws. This preliminary approval has been granted subject to compliance with the following conditions which must be satisfied prior to the issuance of a commercial cannabis business permit, unless noted otherwise:
1. 0 PRELIMINARY APPROVAL/ REVOCATION
1. 1 AUTHENTIC FAIRFIELD LLC shall comply with ( i) all of the provisions set forth in Fairfield Municipal Code ( FMC) Chapter 10E applicable to a store - front retail commercial cannabis business, as the case may be; ( ii) any and all applicable rules and regulations at any time promulgated by the city manager pursuant to said chapter; ( iii) any and all amendments to said chapter; ( iv) any and all ordinances, rules, and policies adopted by the City which are made applicable to all store -front retail commercial cannabis businesses operating within the jurisdictional boundaries of the City; and ( v) any and all laws and regulations of the State of California applicable to AUTHENTIC FAIRFIELD LLC' s store - front commercial cannabis retail business.
1.2 The city manager shall not formally issue the commercial cannabis business permit to AUTHENTIC FAIRFIELD LLC unless and until the community development director confirms that all of the required land use approvals have been obtained.
1.3 AUTHENTIC FAIRFIELD LLC shall not begin operations, notwithstanding the issuance of a permit, until it has complied with all state and local laws and regulations, including but not limited to receipt of a state license.
1.4 AUTHENTIC FAIRFIELD LLC shall abide by, honor, adhere to, perform, implement, and carry out all the representations, statements, promises, statements of plans and intentions, assurances, descriptions, conditions, and terms, as the case may be, set forth in AUTHENTIC FAIRFIELDLLC's application. Should any conflicts exist between AUTHENTIC FAIRFIELDLLC's application and the laws, rules, policies, and/ or regulations described in condition 1. 1, above, the more stringent provision shall apply.
1.5 Notwithstanding the issuance of a commercial cannabis business permit, the contents of AUTHENTIC FAIRFIELD LLC's application and the conditions of approval as set forth shall remain applicable and be fully enforceable through the City' s police power. In the event AUTHENTIC FAIRFIELD LLC' s operations deviate from AUTHENTIC FAIRFIELD LLC' s application in any way, violate these conditions of approval, result in a public or private nuisance, or are otherwise inconsistent with any federal, state, or local, law, rule, or regulation, the City shall have all remedies available, in law or in equity to enforce the terms of AUTHENTIC FAIRFIELD LLC's application, conditions, laws, rules and regulations. Notwithstanding the above, the city manager may approve deviations from AUTHENTIC FAIRFIELD LLC's application to the extent necessary to further the purposes of FMC Chapter 10E or to protect public health, safety, and welfare.
2. 0 COMMUNITY RELATIONS
2.1 AUTHENTIC FAIRFIELDLLC shall provide to the City, and to all businesses and residences located within 100 feet of the business, the name, telephone number, and email address of a community relations representative to whom notice of problems associated with the commercial cannabis business can be provided.
2.2 During the first year of operations following receipt of a permit, the owner, manager, and community relations representative from AUTHENTIC FAIRFIELD LLC shall attend meetings with the city manager, and other interested parties as deemed appropriate by the city manager, to discuss the costs, benefits, and other community issues arising as a result of implementation of FMC Chapter 10E. After the first year of operation, the owner, manager, and community relations representative from AUTHENTIC FAIRFIELD LLC shall meet with the city manager upon reasonable request.
2. 3 AUTHENTIC FAIRFIELD LLC shall develop a City -approved public outreach and educational program for youth organizations and educational institutions that outlines the risks of youth addiction to cannabis, and that identifies resources available to youth related to drugs and drug addiction.
2.4 Prior to issuance of the commercial cannabis business permit, AUTHENTIC FAIRFIELDLLCshall enter into a community relations agreement with the City setting forth the terms and conditions under which AUTHENTIC FAIRFIELD LLC shall implement its community relations program, including but not limited to those set forth below:
2. 4. 1 AUTHENTIC FAIRFIELDLLCshall establish a drug prevention community fund for the sole purposes of funding a youth education and drug prevention program and drug prevention program community outreach and engagement activities.
2. 4. 2 AUTHENTIC FAIRFIELD LLC shall allocate a minimum of 1. 5% of gross annual profits to the drug prevention community fund in perpetuity.
2. 4. 3 AUTHENTIC FAIRFIELDLLCshall establish a community advisory board made up of Fairfield community stakeholders and representatives. The board shall have the sole power and authority to distribute the drug prevention community fund to community partners for the implementation of the youth education and drug prevention program community outreach and engagement activities in perpetuity and free of influence of AUTHENTIC FAIRFIELD LLC staff.
2. 4. 4 AUTHENTIC FAIRFIELD LLCshall reserve up to two community advisory board positions for City of Fairfield representatives. The final number of City of Fairfield representatives will be determined as part of the community relations agreement.
2. 4. 5 AUTHENTIC FAIRFIELDLLCshall partner with Community Action North Bay and commit to providing monetary support, with a minimum annual contribution of 15, 000. 00 in perpetuity.
2. 4. 6 AUTHENTIC FAIRFIELDLLCshall partner with the Food Bank of Contra Costa and Solano and commit to providing monetary support, with a minimum annual contribution of $ 15, 000. 00 in perpetuity.
2. 4. 7 AUTHENTIC FAIRFIELD LLC shall host monthly educational panels, informational workshops, or non- profit partnership events for the purpose of providing community education on cannabis and related safety issues.
2. 4. 8 AUTHENTIC FAIRFIELD LLC shall create and provide a workforce development program in partnership with the Los Angeles Trade Tech College, or other institution as specified in the community relations agreement, providing both educational classes and career development counseling. The program shall be made available to all Fairfield employees.
2. 4. 9 AUTHENTIC FAIRFIELD LLC shall create and provide a career development program in partnership with Solano Community College, or other institution as specified in the community relations agreement. The program shall include, but not be limited to, scholarships for two years of classes at Solano Community College for three participants and a work program providing part time jobs and mentoring to Solaro Community College students on an annual basis. The program shall be targeted towards individuals such as those with a non-violent cannabis offense, veterans, those from the foster care system, or others who have simply experienced extreme financial hardship.
2. 4. 10 AUTHENTIC FAIRFIELD LLC shall create educational materials on the subject of cannabis and safe cannabis consumption and make such materials available in store.
2.4.11 AUTHENTIC FAIRFIELD LLC shall offer a compassionate use program which provides reduced and no -cost medicine to low income and seriously ill patients in accordance with the regulations set forth by the Bureau of Cannabis Control.
2.4.12 AUTHENTIC FAIRFIELDLLCshall provide a living wage for all retail non -salaried employees starting at $ 17.50 per hour, subject to cost -of -living increases.
2. 4. 13 AUTHENTIC FAIRFIELD LLC shall offer all employees a competitive comprehensive benefits package which includes health, vision, and dental programs and shall cover a minimum of 70% of all insurance premiums for employees enrolled in the plans.
2.4.14 AUTHENTIC FAIRFIELDLLCshall provide all full- time employees 10 paid holidays per year and provide double pay if an employee works on such a day.
2.4. 15 AUTHENTIC FAIRFIELD LLC shall provide all employees a minimum of 72 hours of paid time off and 48 hours of paid sick leave per year, separate from any paid time off provided for volunteer time or holidays.
2.4. 16 AUTHENTIC FAIRFIELD LLC shall create an employer funded pension plan available to all employees.
2.4.17 AUTHENTIC FAIRFIELDLLCshall provide all employees up to 6 weeks of maternity or paternity leave, separate from and in addition to any leave guaranteed under the Family Medical Leave Act.
2.4.18 AUTHENTIC FAIRFIELDLLCshall provide a minimum of 24 paid volunteer hours per year to all employees.
2. 4. 19 A minimum of 75% of employees hired by AUTHENTIC FAIRFIELDLLCto work at the permitted location shall be local hires. For the purposes of this condition local hire" means that the employee, at the time of hire, is a resident of Solano County.
3. 0 GENERAL REQUIREMENTS
3. 1 No person may engage in any commercial cannabis business or in any commercial cannabis activity within the City, including cultivation, manufacture, processing, laboratory testing, distributing, dispensing, or sale of cannabis or a cannabis product, unless the person ( 1) has a
valid commercial cannabis business permit from the City; (2) has a valid State license, and (3) is currently in compliance with all applicable State and local laws and regulations pertaining to the commercial cannabis business and the commercial cannabis activities.
3.2 It is the responsibility of the owner( s) of AUTHENTIC FAIRFIELDLLCto ensure that it operates in a manner that complies with all applicable State and local laws, any regulations promulgated thereunder, and any licensing or permit requirements or conditions of approval.
3.3 Neither preliminary approval or the issuance of a commercial cannabis business permit for AUTHENTIC FAIRFIELDLLCshall waive compliance with all sections of the Fairfield City Code Zoning, Subdivision, Building Codes, etc.), Fairfield General Plan, and applicable policy plans.
3.4 Any leases, subleases, or other agreements for the use of real property by AUTHENTIC FAIRFIELD LLC must be based on a monthly rate. No person shall be issued or hold a commercial cannabis business permit if such person has entered into a lease, sublease, or other agreement for the use of property for such business at less than fair market value or such lease, sublease or agreement provides for the tenant to pay the property owner, commercial broker, or any third party a percentage of gross receipts, royalties, equity, or other unreasonable compensation as determined by the City.
3.5 Issuance of a commercial cannabis business permit does not create a property right or land use entitlement. Each commercial cannabis business permit shall expire 12 months after the date of issuance. No person shall have any entitlement or vested right to receive a permit under FMC Chapter 10E.
3.6 AUTHENTIC FAIRFIELDLLCshall pay the commercial cannabis business permit fee established by resolution of the City Council.
3. 7 AUTHENTIC FAIRFIELD LLC shall maintain accurate books and records in an electronic format, detailing all of the revenues and expenses of the business, and all of its assets and liabilities.
On no less than an annual basis ( at or before the time of the renewal of a commercial cannabis business permit), or at any time upon reasonable request of the City, AUTHENTIC FAIRFIELD LLCshall file a sworn statement detailing the number of sales by the commercial cannabis business during the previous twelvemonth period ( or shorter period based upon the timing of the request), provided on a per -month basis. The statement shall also include gross sales for each month, and all applicable taxes and fees paid or due to be paid. On an annual basis, AUTHENTIC FAIRFIELD LLC shall submit to the City a financial audit of the business' s operations conducted by an independent certified public accountant. AUTHENTIC FAIRFIELD LLCshall be subject to a regulatory compliance review and financial audit as determined by the City Manager.
3. 8 AUTHENTIC FAIRFIELD LLC shall maintain a current register of the names and contact information ( including the address and telephone number) of anyone owning or holding an interest in the commercial cannabis business, and separately of all the officers, managers,
employees, agents, and volunteers currently employed or otherwise engaged by the commercial cannabis business. The register required by this paragraph shall be provided to the City Manager upon reasonable request.
3.9 AUTHENTIC FAIRFIELD LLC shall maintain an inventory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products for all stages of the growing, production or manufacturing, and laboratory testing until purchase as set forth in MAUCRSA.
3. 10 AUTHENTIC FAIRFIELDLLCshall allow City officials accessto the business's books, records, and accounts, together with any other data or documents relevant to its permitted commercial cannabis activities, for the purpose of determining compliance with FMC Chapter 10E. Books, records, accounts, and any and all relevant data or documents will be produced or made available no later than 24 hours after receipt of the City' s request, unless otherwise stipulated by the City. The city may require the materials to be submitted in an electronic format that is compatible with the City' s software and hardware.
4. 0 OPERATING REQUIREMENTS
4.1 Operating hours where the business is open to the public for both in-store and/ or delivery services, shall be restricted to 9: OOam— 10: 00pm, seven days a week. No business activities may occur, regardless of whether the business is open to the public or not, between the hours of 10: OOpm — 6: OOam, seven days a week.
4.2 AUTHENTIC FAIRFIELDLLCshall comply with the requirements of Fairfield Municipal Code Chapter 10E Section 24, General Operating Requirements.
4.3 AUTHENTIC FAIRFIELDLLC shall comply with the requirements of Fairfield Municipal Code Chapter 10E Section 25, Operating Requirements for Store -front Retailers.
4.4 Prior to commencing operations, AUTHENTIC FAIRFIELD LLC shall obtain a City business license.
4. 5 The original copy of the commercial cannabis business permit and the City - issued business license shall be posted inside the commercial cannabis business in a location readily visible to the public. A copy of these conditions of approval shall be maintained on -site and shall be provided for review upon request by any law enforcement officer or City official.
4.6 AUTHENTIC FAIRFIELD LLC shall have in place a point -of -sale or management inventory tracking system to track and report on all aspects of the commercial cannabis business including, but not limited to, such matters as cannabis tracking, inventory data, gross sales by weight and by sale) and other information which may be deemed necessary by the City.
The commercial cannabis business shall ensure that such system is compatible with the City'
s record- keeping systems and can produce historical transactional data for review. The system must be approved by the City Manager prior to being used by the permittee.
4. 7 Persons under the age of 21 shall not be allowed on the premises of a commercial cannabis business and shall not be allowed to serve as a driver for a mobile delivery service. It is unlawful and a violation of FMC Chapter 10E for any person to employ any person at a commercial cannabis business who is not at least 21 years of age. Notwithstanding the above, persons who are at least 18 years old and in possession of a valid physician' s recommendation and/ or Health and Safety Code Section 11362. 71 identification card (" Medical Marijuana Card") may be granted access to a retail cannabis business for the sole purpose of purchasing medicinal cannabis or medicinal cannabis products consistent with the physician' s recommendation.
4.8 Minimum training standards shall be established for all employees in accordance with the training standards included in AUTHENTIC FAIRFIELDLLC's application and any Federal, State, or local law, rule, or regulation. The City Manager shall have the discretion to require additional training should the City identify deficiencies or non- compliance issues with City or State requirements.
4. 9 AUTHENTIC FAIRFIELD LLC shall maintain the property in a clean and orderly condition at all times and remove all litter from the exterior areas around the premises, including adjacent public sidewalk areas and parking areas, no less frequently than once each day prior to the close of business.
5. 0 SECURITY
5.1 The final Security Plan shall be in substantial conformance with AUTHENTIC FAIRFIELDLLC's application and shall comply with the requirements of FMC Chapter 10E Section 22, Security Measures. The final Security Plan shall be reviewed and approved by the Chief of Police prior to the issuance of a commercial cannabis business permit.
5.2 AUTHENTIC FAIRFIELD LLC shall contract with a security firm licensed by the State of California' s Bureau of Security and Investigative Services to provide a minimum of two licensed, uniformed, on -site security guards during operating hours and one licensed, uniformed, on -site security guard during non - business hours.
5.3 All owners of AUTHENTIC FAIRFIELDLLCmust undergo a criminal history background check to demonstrate that they do not provide " good cause" for denial per FMC Sections 10E. 7 and 10E.21. All owners shall submit to a Live Scan prior to permit issuance in order to complete the background check process. This will require the owner( s) to submit fingerprints to the city.
The process will be conducted by the Fairfield Police Department, which will submit the Live Scan to the DOJ/ FBI to review for criminal offender record information ( CORI). The CORI reports will be provided to the City for the sole purpose of determining eligibility for operating
a commercial cannabis business. The Live Scan process must be completed prior to issuance of the commercial cannabis business permit.
5. 4 Before the date of hire or within 30 calendar days of issuance of a commercial cannabis business permit, whichever is later, AUTHENTIC FAIRFIELD LLC shall identify each prospective employee and submit for each: the name, address, telephone number, title, primary responsibility( ies), and a valid government - issued form of identification, together with any other related information requested by the Chief of Police for the purpose of conducting mandatory background checks. Evidence that a prospective employee has been convicted of any the offenses listed in FMC Section 10E.21(b) shall be grounds for denial of employment.
If AUTHENTIC FAIRFIELD LLC wishes to hire an individual despite such conviction, it shall appeal to the Chief of Police, who at his or her sole discretion may issue a written waiver.
5. 5 AUTHENTIC FAIRFIELD LLC shall provide the City Manager with the name, telephone number both land line and mobile, if available) of an on- site employee or owner to whom emergency notice can be provided at any hour of the day. AUTHENTIC FAIRFIELDLLCshall ensure such contact information remains current for the duration of the commercial cannabis permit.
5.6 AUTHENTIC FAIRFIELD LLC shall prohibit loitering by persons outside the facility on the premises and shall notify the Fairfield Police Department if anyone continues to loiter around the building or premises after all reasonable action has been taken to remove the individual( s) and the action has failed to do so in a timely manner.
6. 0 SITE DEVELOPMENT
6.1 The building design and construction for the business, including, but not limited to, floor plan, site plan, landscape plan, and building fagade, shall be in substantial conformance with the plans provided in AUTHENTIC FAIRFIELD LLC's application.
6.2 Before a building permit may be issued, AUTHENTIC FAIRFIELDLLCshall submit all building design, construction, and/ or improvement plans for the business to the Community Development Department for the purposes of verifying compliance with site development conditions of approval; provided, however, that if Minor Discretionary Review, Plan Review, or other land use approvals are required, such plans may be submitted as part of that entitlement process.
6. 3 AUTHENTIC FAIRFIELD LLC shall retain and maintain on -site parking which meets the requirements of the City of Fairfield Zoning Ordinance, at all times. One on -site parking space shall be required for every 200 square feet of floor area. If the business is to operate out of a multi -tenant building, AUTHENTIC FAIRFIELDLLCshall provide verification that the required number of parking spaces necessary to serve the business shall be reserved for said business.
Verification shall be in the form of lease agreement or other binding document subject to the review and approval of the Community Development Department.
6.4 Prior to commencing operations, AUTHENTIC FAIRFIELDLLCshall be subject to a mandatory building inspection and must obtain all required permits and approvals which would otherwise be required for any business of the same size and intensity operating in that zone.
This includes but is not limited to obtaining any required building permit( s), Fairfield Fire Department approvals, and Health Department approvals.
6.5 AUTHENTIC FAIRFIELD LLC shall comply with Fairfield Fire Department & Building Code requirements as contained in the attached document " Building and Fire Code Requirements for Cannabis Related Occupancies".
6.6 The final Safety Plan shall be in substantial conformance with AUTHENTIC FAIRFIELD LLC's application and shall be reviewed and approved by the Fairfield Fire Department prior to the issuance of a commercial cannabis business permit.
6.7 AUTHENTIC FAIRFIELDLLCshall ensure that landscaping is maintained in a healthy and well - kept manner at all times. Dead or damaged landscape material/ vegetation shall be replaced immediately per the approved landscape plan. The irrigation system shall be maintained at all times. Trees shall be permitted to grow to their maximum height.
6.8 AUTHENTIC FAIRFIELDLLCshall ensure that the building is maintained in good condition at all times.
6.9 AUTHENTIC FAIRFIELDLLCshall ensure that the driveway and parking areas are maintained in good condition at all times.
6. 10 AUTHENTIC FAIRFIELD LLC shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the commercial cannabis business that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights- of -way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the commercial cannabis business. As such, AUTHENTIC FAIRFIELD LLC must install and maintain the following equipment, or any other equipment which the City Manager determines is a more effective method or technology:
6. 10. 1 An exhaust air filtration system with odor control that prevents internal odors from being emitted externally;
6.10.2 An air system that creates negative air pressure between the commercial cannabis business' s interior and exterior, so that the odors generated inside the commercial cannabis business are not detectable on the outside of the commercial cannabis business.
7. 0 SIGNS
7. 1 Business identification signage for AUTHENTIC FAIRFIELD LLC shall conform to the requirements of the City' s Sign Ordinance, including, but not limited to, seeking the issuance of a City sign permit.
7. 2 No cannabis or cannabis products, or graphics depicting cannabis or cannabis products, shall be visible from the exterior of any property issued a commercial cannabis business permit, or on any of the vehicles owned or used as part of the commercial cannabis business.
7.3 No signs shall obstruct any entrance, exit, or window of the commercial cannabis business.
7. 4 Each entrance shall be visibly posted with a clear and legible notice indicating that smoking, ingesting, or otherwise consuming cannabis on the premises or in the areas adjacent to the commercial cannabis business is prohibited.
7. 5 The entrance to the commercial cannabis business shall be clearly and legibly posted with a notice that no person under the age of 21 is permitted to enter the premises.
7.6 Business identification signage shall be limited to that needed for identification only and shall not contain any logos or information that identifies, advertises, or lists the services or the products offered. No commercial cannabis business shall advertise by having a person holding a sign and advertising the business to passersby, whether such person is on the premises of the commercial cannabis business or elsewhere including, but not limited to, the public right- of- way.
7. 7 No banners, flags, a- frames, inflatables or billboards, or other prohibited signs may be used at any time.
7.8 AUTHENTIC FAIRFIELDLLCunderstands and agrees that it is prohibited from advertising any commercial cannabis business located in the city utilizing a billboard fixed or mobile), bus shelter, placard, aircraft, or other similar forms of advertising. This paragraph is not intended to place limitations on the ability of a commercial cannabis business to advertise in other legally authorized forms, including on the internet, in magazines, or in other similar ways.
8. 0 INDEMNIFICATION AND INSURANCE
8.1 By accepting the commercial cannabis business permit, AUTHENTIC FAIRFIELDLLCagrees to indemnify, defend ( at applicant' s sole cost and expense), and hold harmless the City and its officers, officials, employees, representatives, and agents, from any and all claims, damages, injuries, liabilities, or losses (including attorney and expert witness fees) which arise out of, or which are in any way related to, the City' s issuance of the commercial cannabis business permit or other pertinent approvals to AUTHENTIC FAIRFIELDLLC, the process used by the City in making its decisions, the alleged violation of any federal, state, or local laws by AUTHENTIC FAIRFIELD LLC' s commercial cannabis business operations, or the operations or
activities of AUTHENTIC FAIRFIELD LLC or any of its officers, employees or agents. The requirements of this Section 8. 1 shall survive expiration or termination of the commercial cannabis business permit.
8. 2 By accepting the commercial cannabis business permit, AUTHENTIC FAIRFIELD LLC agrees that it shall reimburse the City for all costs and expenses, including but not limited to legal fees and costs and court costs, which the City may be required to pay as a result of any legal challenge related to the City' s approval of the commercial cannabis business permit or the operations of AUTHENTIC FAIRFIELDLLC's commercial cannabis business in the City. The City may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve any of the obligations imposed by this section. The requirements of this Section 8. 2 shall survive expiration or termination of the commercial cannabis business permit.
8.3 AUTHENTIC FAIRFIELDLLC shall procure and maintain for the duration of the commercial cannabis business permit insurance against claims for injuries to persons or damages to property which may arise from or in connection with commercial cannabis activities by AUTHENTIC FAIRFIELD LLC, its agents, representatives, employees, or subcontractors.
8. 3. 1 MINIMUM SCOPE AND LIMITS OF INSURANCE
8.3.1.1 Commercial General Liability coverage ( occurrence Form CG 00 01) with minimum limits of $ 2,000,000 per occurrence for bodily injury, personal injury, products and completed operations, and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/ location orthe general aggregate limit shall be twice the required occurrence limit.
8.3.1.2 Automobile Liability coverage ( Form CA 00 01 with Code 1 — any auto) with minimum limits of $ 1,000,000 per accident for bodily injury and property damage.
8.3.1.3 Workers' Compensation insurance as required by the State of California and Employers' Liability insurance, each in the amount of $ 1,000, 000 per accident for bodily injury or disease.
8. 3. 2 OTHER INSURANCE PROVISIONS
8.3.2.1 Any deductibles or self -insured retentions must be declared to and approved by the city. At the option of the City, either the insurer shall reduce or eliminate such deductibles or self - insured retentions as respects the City, its officers, officials, employees, and volunteers; or AUTHENTIC FAIRFIELDLLCshall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses.
8. 3. 2. 2 The general and automobile liability policies are to contain, or be endorsed to contain, the following provisions:
a) The CITY, its officers, officials, employees, and volunteers are to be covered as insureds as respects: liability arising out of work or operations performed by or on behalf of AUTHENTIC FAIRFIELDLLC; products and operations of AUTHENTIC FAIRFIELD LLC; premises owned, occupied, or used by AUTHENTIC FAIRFIELD LLC; and automobiles owned, leased, hired, or borrowed by AUTHENTIC FAIRFIELD LLC. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, officials, employees, or volunteers.
b) For any claims related to the commercial cannabis business permit or business operations, AUTHENTIC FAIRFIELD LLC' s insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, and volunteers. Any insurance or self -insured maintained by the City, its officers, officials, employees, or volunteers shall be excess of AUTHENTIC FAIRFIELD LLC' s insurance and shall not contribute with it. AUTHENTIC FAIRFIELD LLC's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer' s liability. c) Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty ( 30) days' prior written notice by certified mail, return receipt requested, has been given to the City.
d) The policy limits of coverage shall be made available to the full limits of the policy. The minimum limits stated above shall not serve to reduce AUTHENTIC FAIRFIELD LLC's policy limits of coverage.
Therefore, the requirements for coverage and limits shall be ( 1) the minimum coverage and limits specified herein, or ( 2) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the named insured, whichever is greater.
8.3.2.3 Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A: VII, unless otherwise acceptable to the City.
8.3.2.4 AUTHENTIC FAIRFIELD LLC shall furnish the City with original endorsements effecting coverage required by this provision. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf; on forms equivalent to CG 20 10 11 85,
subject to City approval; and submitted electronically through the Exigis insurance system to: certificates- fairfield@riskworks. com. All insurance certificates and endorsements are to be received and approved by the City before issuance of the commercial cannabis business permit. At the request of the City, AUTHENTIC FAIRFIELD LLCshall provide complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications.
9. 0 APPLICANT CONSENT
I hereby declare under penalty of perjury that I am authorized to sign on behalf of AUTHENTIC FAIRFIELD LLC and by signing these conditions of approval AUTHENTIC FAIRFIELD LLC agrees to all conditions contained herein and shall satisfy all conditions prior to the issuance of a commercial cannabis business permit, unless noted otherwise.
Signature: Date:
Name:
Title:
The original, signed conditions of approval and related supporting material shall be retained on file by the City of Fairfield. A copy of these signed conditions of approval shall be maintained on -site of the business and shall be provided for review upon request by any law enforcement officer or City official.
EST. 1865
FIRE DEPT.
Fairfield Fire Department & Building Code
Requirements
Building and Fire Code Requirements
for
Cannabis Related Occupancies
The following regulations pertain to City of Fairfield Building Division and Fire Department requirements for the permit application, plan review, approval, and inspection of cannabis related occupancies. The requirements listed below are intended to assist the applicant with some of the requirements applicable to a Building Division permit submittal, and are not to be considered an all- inclusive listing of Building and/ or Fire Code requirements for plan approval or permit issuance. Only items pertinent to each specific submittal are to be included. Every listed item will not necessarily be applicable to all projects.
General Requirements
1. A building permit is required to verify occupancy for a cannabis facility, even if no improvements or modifications to the property are proposed. The building permit application must meet the City's general building permit submittal requirements.
2. Construction plans, calculations and related documentation supporting the building permit application are required per the California Building Code Section 105 when the owner or occupant intends to construct, enlarge, alter, remove, repair, demolish, or change the occupancy of a building or structure; or to erect, install, enlarge, alter, repair, remove, convert, or replace any electrical, gas, mechanical or plumbing system, the installation of which is regulated by the Building and/ or Fire Code; or to cause this work to be done. As a minimum, a site plan and floor plan of the proposed occupancy shall be submitted for all proposed projects.
3. All Building permit design and supporting documentation is required to be prepared, stamped, and signed by qualified design professionals licensed and registered by the state of California. California Business and Professions Code ( B& PQ § 5536. 1 and 6735.
4. An application for a building permit will not be accepted for a cannabis related business without confirmation that all discretionary approvals have been obtained or a zoning clearance has been issued.
5. All construction and related work must be performed by contractors licensed by the State of California as general and/ or specialty contractors for the specific discipline of work to be performed.
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6. All design and construction shall be consistent with the provisions of the City of Fairfield Municipal Code and the current edition of the California Building and Fire Codes as adopted by the California Building Standards Commission, and as amended by the Santa Rosa City Code.
7. A City of Fairfield building permit application form must be completed in its entirety and included with each submittal.
8. Codes and Standards regulating cannabis facilities currently adopted and/ or recognized by the City of Fairfield include, but are not limited to:
A. California Building Code (CBC)
B. California Electrical Code ( CEC)
C. California Mechanical Code ( CIVIC)
D. California Plumbing Code (CPC)
E. California Energy Code
F. California Fire Code ( CFC)
G. California Existing Building Code ( CEBC)
H. California Green Building Standards Code (CalGreen)
I. California Existing Building Code ( CEBC)
J. California Health and Safety Code (H&SC)
K. California Business and Professions Code ( B& PC)
L. National Fire Protection Association Standards ( NFPA) M. Medical and Adult Use Cannabis Regulation and Safety Act ( MAUCRSA) N. Fairfield City Code ( FCC)
9. A project specific submittal package is required for each individual building and building address, or each tenant in multi -tenant buildings. A minimum of 3 sets of plan documents, 2 sets of Title 24 energy compliance documentation and 2 sets of CALGreen check lists are required at time of submittal. Additional documentation may be required for structural modifications and/ or additions to existing building or structures. Contact the Building Permit Center for final determination of required documentation for submittal.
10. The plan review fees must be paid in full before the plans will be accepted for plan review.
11. Construction or work for which the permit is required shall be subject to inspection by the Building Division and/ or Fire Department, and such construction or work shall remain accessible and exposed for inspection purposes until approved. No construction shall commence prior to the issuance of a Building permit.
12. No building or structure shall be used or occupied, and no change in the existing occupancy classification of the building or structure or portion thereof shall be made, until the Building Official has issued a certificate of occupancy. Issuance of a Certificate of Occupancy shall not be construed as an approval of a violation of the provisions of applicable codes and standards or the other regulations of the State of California or the City of Fairfield.
13. The owner/ occupant is required to keep all City approved plans, specifications, and related documents on the premises, in an easily accessible location for City inspection staff for the required inspections.
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Building Code Repuir' ements ( applicableto all occupanciesand MAUCRSApermit types)
1. The height and area of all structures shall be designed and detailed for compliance with CBC Chapter 5.
2. The Building Official shall determine the Occupancy and Construction Type of the proposed facility, and such occupancy designation shall be clearly identified by the applicant on the construction plan documents consistent with the requirements of CBC Chapter 6.
3. All fire rated elements in the space must meet the applicable requirements of CBC Chapter 7.
4. Applicable Means of Egress requirements shall be consistent with CBC Chapter 10. The design for the occupant load based on CBC Chapter 10, § 1004. Unless otherwise determined by the Building Official, growing, storage and shipping areas are 300 sq. ft. per person; cannabis manufacturing, processing, and infused products preparation, testing and business areas are 100 sq. ft. per person.
5. The minimum required exit width shall be consistent with CBC § 1005.
6. The means of egress, including the exit discharge, shall be illuminated at all times the building space is occupied in accordance with CBC § 1008.
7. Accessible means of egress is required. Accessible means of egress shall comply with CBC § 1009. Occupiable spaces shall be provided with not less than one accessible means of egress. Where CBCrequires more than one means of egress from any space, each portion of the space shall be served by not less than two accessible means of egress. § 1015.1 or § 1021.1. An accessible route of travel shall be provided and maintained between multiple required exits from any space or building including cultivation areas.
8. The minimum width of stairways shall be consistent with CBC § 1005. 1, but such width shall not be less than 44 inches. CBC § 1009. 2
9. Exits and exit accessdoors shall be marked by an approved exit sign readily visible from any direction of egress travel. The path of egress travel to exits and within exits shall be marked by readily visible exit signs to clearly indicate the direction of egress travel in cases where the exit or the path of egress travel is not immediately visible to the occupants. Intervening means of egress doors within exits shall be marked by exit signs. Exit sign placement shall be such that no point in an exit access corridor or exit passageway is more than 100 feet or the listed viewing distance for the sign, whichever is less, from the nearest visible exit sign.
CBC § 1011.
10. Two exits are required from all spaces when the occupant load is greater than 49 occupants and/ or the common egress path of travel distance exceeds 75 feet, CBC § 1014. 3 & § 1015. 1 ( NOTE: In other than H Occupancies, A 100- foot common path travel distance is allowed if the building is equipped with an automatic fire sprinkler system in accordance with CBC § 903. 3. 1. 1).
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11. Corridors shall be fire - resistance rated in accordance with CBC Table 1018. 1. The corridor walls required to be fire - resistance rated shall be consistent with CBC § 709 for fire partitions.
12. All spaces within each story shall have accessto the minimum number of approved independent exits as specified in CBC Table 1021. 1 based upon the tributary occupant load of the space and story.
13. Exits shall discharge directly to the exterior of the building. The exit discharge shall be at grade or shall provide direct access to grade. The exit discharge shall not re- enter a building, and shall provide a compliant path of travel to the Public Way. CBC § 1027.
14. Interior finish requirements based on occupancy type of group. Interior wall and ceiling finishes shall have a flame spread index not greater than that specified in CBCTable 803.9 for the group and location designated.
Interior wall and ceiling finish materials tested in accordance with NFPA286 and meeting the acceptance criteria of CBC § 803.1.2.1, shall be permitted to be used where a ClassA classification in accordance with ASTM E 84 or UL 723 is required. CBC § 803. 9.
15. All materials used as interior finishes, trim and decorative materials must comply with the provisions of CBC 803 " Wall and Ceiling Finishes" and the flame spread rating for interior finishes or covered with a thermal barrier per CBC § 2603.4. Plastic film, foam plastic insulation and the paper facing on fiberglass insulation must be rated or covered with an approved thermal barrier.
16. The ventilation, temperature control, lighting, yards and courts, sound transmission, room dimensions, surrounding materials and rodent proofing associated with the interior spaces of buildings shall be consistent with CBC Chapter 12, " Interior Environment".
Accessibility Requirements ( applicableto all occupanciesand MAUCRSApermit types) Accessibility requirements are based on standards outlined in CBCChapter 11-B. Access shall be provided throughout the building for individuals with disabilities.
Accessibility requirements apply to sites, building, structures, facilities, elements, and spaces, temporary or permanent to provide access to individuals with disabilities. This includes anyone who utilizes a space, including occupants, employees, students, spectators, participants, and visitors. Minimum scoping and technical requirements are set forth in CBC Chapter 11- B. New buildings, structures, facilities, elements, and spaces must comply in their entirety. Additions and alterations to existing buildings or facilities must comply with CBC § 116- 202.4. Alterations that decrease accessibility are prohibited.
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The following is a list of some of the elements of required accessfor individuals with disabilities:
Path of travel reauirements.
When alterations or additions are made to an existing buildings or facilities, an accessible path of travel to the specific area of alteration or addition shall be provided. The primary accessible path of travel shall include:
A. A primary entrance to the building or facility,
B. Toilets and bathing facilities serving the area,
C. Public telephones serving the area, and
D. Signs.
1. Interior accessible path of travel shall address all the following:
A. Accessible routes to all functional areas.
B. Common use circulation paths with employee work areas.
C. Clear width of walking areas.
2. Door or gate information should include:
A. Required clear width dimensions.
B. Maneuvering clearances.
C. Level landings on each side of doors or gates.
D. Required threshold dimensions and geometry.
E. Door or gate hardware should not require tight grasping, pinching, or twisting of the wrist.
F. Required smooth surface dimensions on push side of the door within the finish floor or ground.
3. Restroom information should include:
A. Turning space within the room.
B. Door swing not in the clear space of any fixture ( except for a single user).
C. Mirrors and accessories.
D. Clear floor space at fixtures.
E. Compartment configuration side and end entry, toe clearances.
F. Side and rear grab bars.
G. Accessible lavatories ( sinks), heights and knee clearances.
H. Restroom symbols on doors.
I. Shower compartments ( if any) must be accessible.
J. Drinking fountains.
4. Miscellaneous elements include:
A. Dressing and locker rooms.
B. Storage.
C. Exit signs ( tactile)
D. Signs.
E. Benches.
F. Dining or break room tables.
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G. Electrical switches, controls, and electrical receptacle outlets.
H. Kitchen and common sinks.
5. Site plan should include information on site accessibility features including:
A. Arrival points including parking area access points and signage from the public way.
B. The location and number accessible parking stalls and the number of standard parking stalls.
C. Access aisles from parking.
D. The slope of the accessible parking spaces and access aisles.
E. The identification at accessible spaces and/ or lot entrances.
F. A clear accessible egress path of travel to the adjoining public way.
Fire Code Renuif ements ( applicableto all occupanciesand MAUCRSApermit types) All applicants will need to provide a detailed written scope of work related to all business activities, equipment and products utilized in their business model or process in compliance with the current Edition of the 2019 California Building and Fire Codes. List license type( s) proposed, storage configurations, equipment type and location, and hazardous materials to be stored and utilized. Prior to finalization of Building Permit, annual operation permits will need to be secured with the Fire Department.
1. Approved automatic sprinkler systems in new buildings and structures shall be provided in the locations described in CFC § 903 and as amended by the City of Fairfield Fire Code. A change in the occupancy of the space, substantial alterations, or an expansion of square footage, may require the installation of a fire suppression system for the proposed space.
2. Automatic fire -extinguishing systems, other than automatic sprinkler systems, shall be designed, installed, inspected, tested, and maintained in accordance with the provisions of CFC § 903 and the applicable referenced standards.
3. An approved fire alarm system installed in accordance with the provisions of the CFCand 2019 NFPA 72 shall be provided in new buildings and structures in accordance with CFC § 907. 2 and provide occupant notification in accordance with CFC § 907. 6 as well as specific requirements detailed in CFC.
4. Duct smoke detectors complying with UL 268A shall be installed in accordance with the CBC, CFC, CIVICand NFPA 72.
a. In the main return air and exhaust air plenum of each air-conditioning system having a capacity greater than 2,000 CFM. Such detectors shall be located in a serviceable area downstream of the last duct inlet.
b. At each connection to a vertical duct or riser serving two or more stories from a return air duct or plenum of an air-conditioning system.
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5. Portable fire extinguishers shall be installed in F, B, H, and U occupancy groups per CFC § 906. The size and distribution of portable fire extinguishers shall be in accordance with CFC § 906.
6. Where access to or within a structure or an area is restricted because of secured openings or where immediate access is necessary for life- saving or fire -fighting purposes, the Fire Code Official is authorized to require a key box to be installed in an approved location. The key box shall be of an approved type and shall contain keys to gain necessary access as required by the Fire Code Official per CFC § 506. 1
7. The provisions of CFC § 407 shall be applicable where hazardous materials subject to permits under CFC § 5001.5 are used and/ or stored on the premises or where required by the Fire Code Official.
8. Storage, use and handling of compressed gases in compressed containers, cylinders, tanks, and systems shall comply with CFCChapter 53 including those gases regulated elsewhere in the CFC and/ or any applicable NFPAStandards as determined by the Fire Code Official. Partially full compressed gas container, cylinders or tanks containing residual gases shall be considered as full for purposes of the controls required.
9. Compressed gases classified as hazardous materials shall also comply with CFCChapter 50 for general requirements and chapter addressing specific hazards, including CFCChapters 58 Flammable Gases), 60 (Highly Toxic and Toxic Materials), 63 (Oxidizer, Oxidizing Gases, and Oxidizing Cryogenic Fluids) and 64 (Pyrophoric Materials) and/ or any applicable NFPAStandards as determined by the Fire Code Official.
10. The storage, use and handling of all hazardous materials shall be in accordance with CFCChapter 50 and California Health and Safety Code requirements. The maximum allowable quantity ( MAQ) of hazardous materials per control area will be established using CFC § 5003. 1. Applicant will need to contact the Fire Department for hazardous materials storage permitting and approval.
11. Hazardous Materials Inventory Statement ( HMIS) per CFC § 5001. 5. 2. An application for building permit shall include an HMIS. The HIMS shall include the following information:
A. Product name.
B. Component.
C. Chemical Abstract Service ( CAS) number.
D. Location where stored or used.
E. Container size.
F. Hazard classification.
G. Amount in storage.
H. Amount in use - closed systems.
I. Amount in use - open systems.
J. Safety Data Sheets (SDS) for all proposed materials
The business will also need to comply with electronic reporting requirements specific to the California Environmental Reporting System ( CERS). Applicants will need to contact the Fire Department for direction and permitting related to hazardous materials inventory reporting amounts.
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12. The smoking or carrying of a lighted pipe, cigar, cigarette or any other type of smoking paraphernalia or material is prohibited in the areas indicated in CFC § 310.
13. Storage of combustible materials in buildings shall be orderly. Storage shall be separated from heaters or heating devices by distance or shielding so that ignition cannot occur per CFC § 315.
14. Any security device or system that emits any medium that could obscure a means of egress in any building, structure or premise shall be prohibited per CFC § 316. 5.
15. Reporting of emergencies, coordination with emergency response forces, emergency plans and procedures for managing or responding to emergencies shall comply with the provisions of CFC § 401.
16. Emergency evacuation drills complying with provisions of the Fire Code shall be conducted at least annually for Group H and Group Foccupancies listed in section CFC § 403 or when required by the Fire Code Official.
CFC § 405.
17. High - piled storage or rack storage in any occupancy group shall comply with the CFC Chapter 32.
MAUCRSA Permit Specific Requirements
The requirements in this section are related to specific permit types as outlined in the Medical and Adult Use Cannabis Regulation and Safety Act ( MAUCRSA)
Cultivation Facilities ( MAUCRSA permit types 1- 5)
1. An Annual Fire Department Operational Permit is required for all cannabis cultivation facilities.
2. Cannabis Cultivation facilities shall be consistent with CBC, Chapter 3 requirements based upon Use and Occupancy Classification for a Factory Industrial, F-1, Moderate - hazard Occupancy. CBC § 306. 2.
3. Cannabis Cultivation facilities for the exclusive use of plant production may be classified as a U occupancy and shall be consistent with the requirements of CBC Appendix C.
4. Cultivation areas shall be considered " wet locations" as they are subject to wash down. Indoor wet location wiring methods shall meet requirements of CECarticle 300. 6.
5. Grow lights must be installed per the manufacture instructions and wired per CEC article 410.
A. Remote ballasts shall be installed as near to the lamp as practicable to keep the secondary conductors as short as possible. CEC article 410. 144( B).
B. Ballast secondary cord/ conductors cannot pass through partitions and must be visible its entire length outside the fixture. CEC article 410. 62( C)( 1).
C. All grow lights shall be controlled by a multi -level astronomical time switch.
6. High -Intensity Discharge Lighting. Luminaires that use a Metal Halide lamp, other than a thick- glass parabolic reflector lamp ( PAR), shall be provided with a containment barrier ( LENS) on the fixture. CEC article 410. 130( F)( 5).
7. NM cable ( Romex) is not allowed for use in damp locations ( cultivation rooms) ( CEC § 334. 10). Approved wiring methods utilized in cultivation facilities shall be consistent with " Wet Use" Wiring Methods and Materials, ( CEC Chapter 3).
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8. Cultivation areas shall be supplied with ventilation at a minimum rate of 15 cfm/ person for the number of occupants. The minimum occupant load for ventilation design shall be specified by the building designer, and shall not be less than one half of the maximum occupant load assumed for egress purposes as specified in the California Building Code, whichever is greater. ( CIVIC table 402. 1 footnote 4 & CEC subchapter 120. 1( b).
9. All applications for a cultivation occupancy shall include an odor mitigation plan certified by a qualified licensed professional engineer that includes the following:
A. Operational processes and maintenance plan, including activities undertaken to ensure the odor mitigation system remains functional;
B. Staff training procedures;
C. Engineering controls, which may include carbon filtration or other methods of air cleansing, and evidence that such controls are sufficient to effectively mitigate odors from all odor sources.
All odor mitigation systems and plans submitted pursuant to this subsection shall be consistent with accepted and best available industry -specific technologies designed to effectively mitigate cannabis odors
10. Cultivation facility exhaust outlets must be located at least 10' from the property lines, operable openings into the building and from mechanical air intakes ( CIVIC § 506. 9).
11. A separate permit from the Fire Department is required for CO2enrichment systems used within any cultivation system and room. Separate monitoring alarm systems shall be provided in all buildings, areas or rooms which use CO2enrichmentManufacturing;
Facility ( MAUCRSA permit type 6, N, P) 1.
AnAnnualFire DepartmentOperational Permit is requiredfor all cannabismanufacturingfacilities. 2.
AllPlantProcessingand Extractionfacilities shall complywith CFC Chapter39. 3.
Facilitiesused for processingcannabis into foods, beverages, salves, inhalants, tinctures or otherforms for human consumptionor useare subjectto reviewand approvalby theSolanoCounty EnvironmentalHealth Division.
A separatepermit applicationis requiredthrough their office. Buildingpermits will not be issuedprior to planapprovalfrom HealthDepartment. Final occupancywill not be grantedprior to fieldinspectionand approvalfrom Health Department. 4.
Type6 ( non-volatile) manufacturingfacilities shall complywith CBC, Chapter3 requirementsbased upon Use and OccupancyClassificationfor a FactoryIndustrial, F- 1, Moderate -Hazard Occupancy. High pressureCO2 extraction may requireclassificationas a HighHazardH- 2 Occupancybased upon systempressure and/ or volume. CBC § 306 and 307. 5.
Type7 ( volatile) manufacturingfacilities are to meetCBC, Chapter3 requirementsbased upon Use and Occupancy Classificationfor a FactoryIndustrial, F- 1, Moderate -Hazard Occupancy, or HighHazardGroup H- 2 basedupon the MaximumAllowed Quantities (MAQ) of hazardous, dangerous, flammable, or combustible materials used and/ or storedin thefacility. CBC § 306 and 307. 6.
Extractionprocesses utilizing flammablegasses or flammablecryogenic fluids shall not be locatedin a building containinga GroupA, E, I, orR occupancy. CFC § 3903. 2 7.
Cannabismanufacturingfacilities shall submitas a partof theirpermitapplicationa comprehensivedescription of theprogramand all processesproposed for the operationand productionat thefacility. The documentation shall, as applies, include ( but not be limitedto) all thefollowing:
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A. A written narrative that specifies all means, methods, materials, and equipment to be used for extracting, heating, washing, infusing, cooking, baking or otherwise combining, or changing the form of the cannabis plant; all methods and equipment used for testing any cannabis or cannabis product; all methods, materials, and equipment used for processing and packaging the final product; all means, methods, and quantities for storage of raw and processing materials, and final products.
B. A description of all toxic, dangerous, hazardous, volatile, flammable, or other materials regulated by the CBC, CFC, or any other federal, state, or local government codes and standards that will be used, stored, processed, or created at the facility; the quantities of such materials used at each location within the facility; and the manner and quantity in which such materials will be stored.
C. Material Safety Data Sheets for all proposed toxic, dangerous, hazardous, volatile, or health hazard materials proposed for storage and use within the facility.
8. Concentrations of grease, smoke, heat, steam, off -gassing, or products of combustion created when cannabis is manufactured into products including, but not limited to, foods, beverages, salves, inhalants, and tinctures are to be contained as detailed in the CIVIC § s 506 and 507 ( Type I and Type II hoods). Hoods that are utilized for the removal of grease laden vapors shall be protected by a fixed engineered extinguishing system. Contact the Fire Department for verification of requirements.
9. Sanitation requirements for facilities used for processing cannabis into foods, beverages, salves, inhalants, and tinctures shall meet the requirements of Solano County Environmental Health Department. The following are general guidelines that are to be detailed on the drawings submitted for review:
A. Location of hand wash sinks.
B. Hand sinks must be conveniently located for employees.
C. Hand sinks shall only be used for hand washing ( maximum water temperature of 110 degrees is to be maintained through an appropriate mixing valve).
D. Sinks used for food or medicine preparation or for washing equipment shall not be used for hand washing.
E. How dishes will be washed. CPC § 802. 1 requires all food handling and health care related fixtures, devices, and equipment to discharge through indirect waste lines into a floor sink.
F. Contact surfaces shall be smooth, free of breaks, open seams, cracks, chips, pits and similar imperfections, free from sharp internal angles, corners, crevices, finishes to have smooth welds and joints.
G. Equipment containing bearings and gears shall be designed, constructed, and maintained to ensure that it meets food and health requirements ( washing machines are not listed for food or health related preparations).
H. All rooms shall have sufficient ventilation to keep them free from excessive heat, steam, condensation, vapors, odors, smoke, and fumes per CIVIC chapters 4 and 5.
I. Table or counter mounted equipment shall be installed to facilitate the cleaning of the equipment and adjacent areas by being sealed to the surface or elevated by at least four inches.
J. Three compartment sinks are required for washing, rinsing, and sanitizing equipment and utensils.
K. At least one utility or mop sink must be provided.
L. Garbage and refuse shall be stored in a manner to be inaccessible to insects and rodents.
M. Floors shall be smooth, durable, nonabsorbent, light colored and maintained in good repair.
N. Walls and ceilings must be smooth and easily cleanable.
0. Hazardous materials waste discharge to the sanitary sewer is prohibited.
10. Storage, use and handling of compressed gases in compressed gas containers, cylinders, tanks, and systems shall comply with CFC, NFPAStandards, H&SCand CCR, including those gases regulated elsewhere in this code. Partially full compressed gas containers, cylinders or tanks containing residual gases shall be considered as full for the purposes of the controls required.
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Compressed gases classified as hazardous materials shall also comply with CFCChapters 50 and 53 for general requirements and chapters addressing specific hazards, including Chapters 58 Flammable Gases), 60 (Highly Toxic and Toxic Materials), 63 (Oxidizers, Oxidizing Gases and Oxidizing Cryogenic Fluids) and 41 (Pyrophoric Materials).
EXTRACTION EQUIPMENT
11. If cannabis plant oil extraction is proposed, provide complete details of the proposed extraction process as a part of the comprehensive narrative description outlined in item # 7 above. Extraction description shall include:
A. Types of extraction proposed ( CO2, Butane, Propane, ethanol etc.) B. Number of extraction equipment units proposed
C. Manufacturers cut - sheets for all listed equipment
D. Description of basic design of non - listed equipment E. Resume of qualifications and experience of proposed independent equipment certification engineer F. Description of proposed exhaust systems
G. Description of monitoring and alarm systems
H. Description for storage and use of raw and production materials I. MAUCRSA Permit type ( Type 6 or 7)
J. Description of employee safety program
12. Extraction equipment shall be located in an enclosed room fully separated from all other areas of the facility. Multiple extraction units contained in a single room shall comply with all requirements for occupancy type and MAQ quantities allowed for type of extraction proposed. All extraction units contained in a single room shall be of the same type.
13. Exit doors from any and all rooms containing extraction equipment shall swing in the direction of egress path of travel.
14. A local hydrocarbon, solvent vapor, or CO2 detection and alarm system consistent with CFC requirements shall be used in all extraction and material storage areas as determined by the Fire Code Official. A separate permit from the Fire Department is required for all detection and alarm systems.
15. The use of propane, butane, hexane, or other similar flammable hydrocarbon gasses in open systems is prohibited by Santa Rosa City Code. Closed hydrocarbon systems are approved by permit only after review to confirm that the system follows the CBC, CFC, and Fairfield City Code requirements.
16. Closed hydrocarbon system rooms shall include a low level (typically floor level) mechanical exhaust system minimum 1 CFM/ sq. ft. of floor area) or a hazardous exhaust hood or other system listed and rated for exhausting flammable vapors to capture any possible vapor release. Hydrocarbon extraction ventilation and exhaust systems shall be designed by a licensed mechanical engineer.
17. Where closed hydrocarbon systems use refrigeration recovery units, the unit must be rated for use with hydrocarbon refrigerants.
18. CO2supercritical extraction relief venting shall be piped to the exterior of the building.
19. The use of alcohol or other volatile, flammable, combustible solvents in open systems is prohibited by Fairfield City Code. Closed solvent systems are approved by permit only after review to confirm that the system follows the CBC, CFC, and Fairfield City Code requirements
Building and Fire Code Requirements for Page 12
Cannabis Related Occupancies April 22, 2020
20. Alcohol or other volatile, flammable, combustible solvent extractions or post production treatment where the liquid is heated, boiled, distilled, or evaporated shall be contained within a closed loop system and shall be consistent with the CFCand Fairfield City Code. The proposed solvents ( typically alcohol) shall be clearly identified including type, use and storage in the narrative description noted under item # 5 above.
21. Rooms containing extraction equipment using volatile, flammable, or combustible materials and areas adjacent to extraction rooms shall include Class 1 Division 2 rated electrical fixtures, equipment, and wiring methods consistent with California Electrical Code Article 500.
22. Closed solvent extraction system rooms shall include a mechanical exhaust system ( minimum 1 CFM/ sq. ft. of floor area) or a hazardous exhaust hood or other system designed for or specifically listed and rated for exhausting flammable and/ or volatile vapors to capture any possible vapor release. Solvent extraction ventilation and exhaust systems shall be designed by a licensed mechanical engineer.
23. Systems and/ or equipment used for extraction shall be listed for the specific use. If the systems and/ or equipment is not listed, then the systems and/ or equipment shall be reviewed and analyzed by an independent approved California licensed professional engineer. The reviewing engineer shall prepare a technical report based upon analysis of the systems and/ or equipment. The report shall be consistent with CFC § 3904. 3. The report shall include but not be limited to:
1. Equipment manufacturer information
2. Name and contact information of report author
3. Date of report and revision history
4. Preparers engineering stamp and signature
5. Equipment model number and/ or description
6. Description of the design and review methodology
7. Equipment description
8. General flow schematic
9. Pressure vessel analysis
10. Structural analysis of the frame supporting equipment and seismic anchorage of equipment
11. Process safety analysis
12. Comprehensive process analysis
13. Review of assembly instructions, operational and maintenance manuals
14. List of standards and references used in the analysis Report is to be provided for review by the Building Official and Fire Code Official at the time of building permit submittal. Deferred approval of extraction equipment is not allowed.
24. Certification from a California Licensed Engineer confirming field review of the extraction facility and verifying all extraction equipment assembly, installation, and the improvements associated with such equipment are constructed and installed consistent with the approved equipment design and supporting documents. This written certification shall be submitted at final inspection. This certification shall be reviewed and approved by the Building Official and Fire Code Official prior to issuance of occupancy. CFC § 3904. 4
25. All extraction equipment shall be subject to annual re -certification by a California licensed engineer. A current report shall be maintained on site for review by the Fire Department during the annual inspection of the facility.
Building and Fire Code Requirements for
Cannabis Related Occupancies
April 22, 2020
26. Additions, alterations, or repairs to previously approved extraction equipment shall be reviewed and analyzed by an independent approved California licensed professional engineer consistent with the requirements of CFC § 3904. 3. A new and/ or revised report outlining all equipment modifications shall be submitted for review and approval by the Building Official and fire Code Official prior to operation of the modified equipment.
Testing/ Laboratory ( MAUCRSA permit type 8)
1. An annual Fire Department Operational Permit is required for all Testing and Laboratory facilities.
2. Testing/ Laboratory facilities are to meet CBC, Chapter 3 requirements based upon Use and Occupancy Classification for a Business Group, B, Occupancy. CBC § 304. 1.
3. Exhaust hoods shall meet the requirements of CIVIC § s 506, 507 and 508.
4. Hazardous materials storage, use, handling, and wastes shall be permitted and reported through the Fire Department prior to operation.
Retail ( MAUCRSA permit 10)
1. Cannabis Retail facilities are to meet CBC, Chapter 3 requirements based upon Use and Occupancy Classification for a Mercantile Group, M, Occupancy. CBC § 309. 1.
2. Cannabis consumption areas associated with retail facilities shall meet CBC Chapter 3 requirements based upon use and occupancy classification A- 2.
3. Retail areas including display cases, checkout counters, credit card readers or point of sale devices shall be accessible to persons with disabilities consistent with the requirements of CBCChapter 11B.
4. Retail facilities where cannabis foods, beverages, salves, inhalants, tinctures, or otherforms intended for human consumption or use are sold are subject to review and approval by the Sonoma County Environmental Health Division. A separate permit application is required through their office. Building permit will not be issued prior to plan approval from Health Department. Final occupancy will not be granted prior to field inspection and approval from Health Department.
Distribution Facilities ( MAUCRSA permit type 11)
1. An annual Fire Department Operational Permit is required for all Distributor facilities.
2. Distributor facilities are to meet CBC, Chapter 3 requirements based upon Use and Occupancy Classification for a Storage Group, S, Occupancy. CBC § 311. 1.
A. Facilities that include storage and distribution of food products in non-combustible containers shall be classified in Occupancy Group S-2 " Low Hazard Storage". CBC § 311. 3.
B. Facilities that include storage and distribution of all other cannabis packaged and manufactured products shall be classified in Occupancy Group S-1 "Moderate Hazard Storage". CBC § 311. 2.
Building and Fire Code Requirements for
Cannabis Related Occupancies
Microbusiness ( MAUCRSA)
April 22, 2020
1. Cannabis microbusiness facilities containing cultivation, manufacturing, distribution, retail, and consumption areas in any combination shall be classified as "mixed use" occupancies consistent with CBC section 508. Occupancy classifications for specific areas may include: F-1 (cultivation, manufacturing); H-2 manufacturing); B (office and administrative); S-1/ S-2 (storage, open or enclosed vehicle parking); A-2 larger consumption areas); M ( retail areas).
2. Each separate occupancy area may require fire barrier separation between adjacent occupancies as required in CBC section 508. 4
Microbusiness ( MAUCRSA permit type 12)
1. Cannabis microbusiness facilities containing cultivation, manufacturing, distribution, retail, and consumption areas in any combination shall be classified as "mixed use" occupancies consistent with CBC section 508. Occupancy classifications for specific areas may include: F-1 (cultivation, manufacturing); H-2 manufacturing); B (office and administrative); S-1/ S-2 (storage, open or enclosed vehicle parking); A-2 larger consumption areas); M ( retail areas).
2. Each separate occupancy area may require fire barrier separation between adjacent occupancies as required in CBC section 508. 4
Transporter ( MAUCRSA permit type 13)
1. Type 13 Transporter facilities are to meet CBC, Chapter 3 requirements based upon Use and Occupancy Classification for a Storage Group, S-1, and/ or Business Group, B, Occupancy. CBC § 311. 1.
A. Facilities that include storage, transfer, and/ or temporary warehousing of cannabis products shall be classified in Occupancy Group S-1.
B. Facilities that do not contain any storage, transfer or warehousing of products and consists of administrative offices shall be classified in Occupancy Group B.