San Rafael City Council
November 20, 2023

AGENDA
SAN RAFAEL CITY COUNCIL - MONDAY, NOVEMBER 20, 2023
REGULAR MEETING AT 7:00 P.M.

San Rafael City Council Chambers
1400 Fifth Avenue, San Rafael, CA 94901
Watch Online:

Watch on Zoom Webinar: https://tinyurl.com/cc-2023-11-20 Watch on YouTube: www.youtube.com/cityofsanrafael
Listen by phone: (669) 444-9171
ID: 860-6190-5675#
One Tap Mobile: +16694449171,,86061905675# US
This meeting will be held in-person. This meeting is being streamed to YouTube at www.youtube.com/cityofsanrafael.

How to participate in the meeting:
• Provide them in-person at the meeting. You are welcome to come to the meeting and provide public comment in-person. Each speaker will have 2-minutes to provide public comment. • Submit your comments by email to [email protected] by 4:00 p.m. the day of the meeting.

If you experience technical difficulties during the meeting, please contact [email protected].

OPEN SESSION – THIRD FLOOR CONFERENCE ROOM – 5:30 P.M.

1. Mayor Kate to announce Closed Session items.

CLOSED SESSION – THIRD FLOOR CONFERENCE ROOM – 5:30 P.M.

2. Closed Session:
a. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation (Paragraph (2) of subdivision (d) of Government Code Section 54956.9): One potential case
b. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
i. CONFERENCE WITH LEGAL COUNSEL--EXISTING LITIGATION
Government Code section 54956.9(d)(1): 1 case
Shaleeta Boyd, et al. v. City of San Rafael, et al. (U.S. District Court, N.D. Cal., Case No. 23-cv-04085-EMC)
ii. CONFERENCE WITH LEGAL COUNSEL--EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Government Code Section 54956.9) 1 case: Crimmins v. CSR
iii. CONFERENCE WITH LEGAL COUNSEL--EXISTING LITIGATION (Paragraph (1) of subdivision (d) of Government Code Section 54956.9) 1 case:

Anthony Alex v. City of San Rafael, et al.
(Marin Superior Court Case No. SCV-270064)
2 CITY MANAGER AND COUNCILMEMBER REPORTS:
(including AB 1234 Reports on Meetings and Conferences Attended at City Expense)

3. City Manager and Councilmember Reports:

CONSENT CALENDAR:

The opportunity for public comment on consent calendar items will occur prior to the City Council’s vote on the Consent Calendar. The City Council may approve the entire consent calendar with one action. In the alternative, items on the Consent Calendar may be removed by any City Council or staff member, for separate discussion and vote.

4. Consent Calendar Items:
a. Approval of Minutes
Approve Minutes of the Regular City Council Meeting of November 6, 2023 (CC) Recommended Action - Approve minutes as submitted
b. City Council Meeting Time Change
Final Adoption of Ordinance No. 2031: An Ordinance of the City Council of the City of San Rafael Amending Section 2.04.010 of the San Rafael Municipal Code Concerning Regular Meetings (CC)
Recommended Action – Final Adoption of Ordinance No. 2031 c. Downtown Business Improvement District (BID) Business Assessment Annual Renewal Resolution Declaring the City Council’s Intention to Levy an Annual Assessment for Calendar Year 2024 for the Downtown San Rafael Business Improvement District (ED) Recommended Action – Adopt Resolution
d. Agreement to Participate in a Medi-Cal Intergovernmental Transfer Cost Recovery Program
Authorize the City Manager to Execute an Agreement Allowing the San Rafael Fire Department to Participate in a Medi-Cal Intergovernmental Transfer (IGT) Program with the California Department of Health Care Services (DHCS) for the Service Period of January 1, 2022 through December 31, 2022 (FD)
Recommended Action – Authorize the City Manager to execute an agreement allowing the San Rafael Fire Department to participate in a Medi-Cal Intergovernmental Transfer (IGT) program with the California Department of Health Care Services (DHCS) for the service period of January 1, 2022 through December 31, 2022
e. State and Federal Summary Criminal History for Employee Background Information Resolution Authorizing the City of San Rafael to Access State and Federal Summary Criminal History for Employee Background Information Through the Department of Justice (HR)
Recommended Action – Adopt Resolution
f. California State Preschool Program Continued Funding Application for Fiscal Year 2024- 2025
Resolution Approving the City of San Rafael to Enter into a Funding Agreement with the California Department of Education for the Purpose of Providing Childcare and Development Services (LR)
Recommended Action – Adopt Resolution
3 g. California Department of Parks and Recreation Division of Boating and Waterways Grant Approval
Resolution Approving the Acceptance and Appropriation of California Department of Parks and Recreation Division of Boating and Waterways Grant Funds in the Amount of $76,099 for the “Boating Safety and Enforcement Equipment” Grant, and Authorizing the City Manager to Execute a Grant Agreement and any other Documents Related to the Grant (PD)
Recommended Action – Adopt Resolution
h. Police Accountability and Advisory Committee
Resolution Repealing and Replacing Resolution 15525 Establishing the City of San Rafael Police Accountability and Advisory Committee (PD)
Recommended Action – Adopt Resolution
i. Office of Traffic Safety Grant Approval
Resolution Approving the Acceptance and Appropriation of State of California Office of Traffic Safety Grant Funds in the Amount of $69,000 for the “Selective Traffic Enforcement Program” (“STEP”) Grant from October 1, 2023, Through September 30, 2024, and Authorizing the City Manager to Execute a Grant Agreement and any other Documents Related to the Grant (PD)
Recommended Action – Adopt Resolution
j. Special Event Street Closure
Resolution Authorizing the Temporary Closure of Streets for the San Rafael Winter Wonderland Event (PD)
Recommended Action – Adopt Resolution
OTHER AGENDA ITEMS:

5. Other Agenda Items:
a. Year-End Audited Financial Statements and Related Audit Reports Fiscal Year 2022-23 Annual Comprehensive Financial Report; Memorandum on Internal Control; Report of Required Communications; Child Development Program Financial Report; and Gann Appropriations Limit (Fin)
Recommended Action – Accept the Fiscal Year 2022-23 Annual Comprehensive Financial Report, Memorandum on Internal Control, Report of Required Communications, Child Development Program Financial Report, and GANN Appropriations Limit Report

OPEN TIME FOR PUBLIC EXPRESSION
The public is welcome to address the City Council at this time on matters not on the agenda that are within its jurisdiction. Please be advised that pursuant to Government Code Section 54954.2, the City Council is not permitted to discuss or take action on any matter not on the agenda unless it determines that an emergency exists, or that there is a need to take immediate action which arose following posting of the agenda. Comments may be no longer than two minutes and should be respectful to the community.

SAN RAFAEL SUCCESSOR AGENCY:

1. Consent Calendar: - None.

ADJOURNMENT:
4 Any records relating to an agenda item, received by a majority or more of the Council less than 72 hours before the meeting, shall be available for inspection online and at City Hall, 1400 Fifth Avenue, and placed with other agenda-related materials on the table in front of the Council Chamber prior to the meeting. Sign Language interpreters may be requested by calling (415) 485-3066 (voice), emailing [email protected] or using the California Telecommunications Relay Service by dialing “711”, at least 72 hours in advance of the meeting. Copies of documents are available in accessible formats upon request. To request Spanish language interpretation, please submit an online form at https://www.cityofsanrafael.org/request-for-interpretation/.

Minutes subject to approval at the November 20, 2023 meeting AGENDA
SAN RAFAEL CITY COUNCIL - MONDAY, NOVEMBER 6, 2023
REGULAR MEETING AT 7:00 P.M.

San Rafael City Council Chambers
1400 Fifth Avenue, San Rafael, CA 94901
Watch Online:

Watch on Zoom Webinar: https://tinyurl.com/cc-2023-11-06 Watch on YouTube: www.youtube.com/cityofsanrafael
Listen by phone: (669) 444-9171
ID: 844-3204-9611#
One Tap Mobile: +16694449171,,84432049611# US
This meeting will be held in-person. This meeting is being streamed to YouTube at www.youtube.com/cityofsanrafael.

How to participate in the meeting:
• Provide them in-person at the meeting. You are welcome to come to the meeting and provide public comment in-person. Each speaker will have 2-minutes to provide public comment. • Submit your comments by email by 4:00 p.m. the day of the meeting.

If you experience technical difficulties during the meeting, please contact [email protected].

OPEN SESSION – THIRD FLOOR CONFERENCE ROOM – 5:00 P.M.

1. Mayor Kate announced Closed Session items.

CLOSED SESSION – THIRD FLOOR CONFERENCE ROOM – 5:00 P.M.

2. Closed Session:
a. Conference with Labor Negotiators – Government Code Section 54957.6 Lead Negotiators: Timothy L. Davis and Allison B. Hernandez (Burke, Williams & Sorensen)
Agency Designated Representatives: Cristine Alilovich, Paul Navazio, Marissa Sanchez, Sylvia Gonzalez, Angela Nicholson, and Angela Robinson Piñon Employee Organizations: San Rafael Police Mid-Management Association; Public Employee Union, Local 1; San Rafael Firefighters’ Association; San Rafael Police Association; SEIU Local 1021; Western Council of Engineers; San Rafael Fire Chief Officers’ Association; San Rafael Police Mid-Management Association; San Rafael Fire Chief Officers’ Association; Unrepresented Mid-Management; Unrepresented Executive Management
b. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Government Code section 54956.9(d)(1): 1 case
Shaleeta Boyd, et al. v. City of San Rafael, et al. (U.S. District Court, N.D. Cal., Case No. 23- cv-04085-EMC)

Present: Councilmember Bushey
Councilmember Kertz
Vice Mayor Llorens Gulati
Mayor Kate
2 Absent: Councilmember Hill
Also Present: City Manager Cristine Alilovich
City Attorney Robert Epstein
Deputy City Clerk Brenna Nurmi
Mayor Kate called the meeting to order at 7:04 p.m. and invited Deputy City Clerk Brenna Nurmi to call the roll. All members of the City Council were present, except for Councilmember Hill.

City Attorney Rob Epstein announced there was no reportable action in the Closed Session held prior to the regular meeting, as well as, on October 2. Regarding the Closed Session held on October 16, Council provided authority and settlements have been concluded in connection with two actions that were pending that were both mandate proceedings: Theo Emison v. City of San Rafael was resolved for $75,000 and California Newspapers Partnership v. City of San Rafael was resolved for $87,083.68. And, with those settlement dismissals filed, those actions concluded.

Mayor Kate provided opening remarks, which included appreciation to City staff, public comment going forward will be from the public physically present in Chambers, the recent war started in the Middle East, the recent Maine mass shooting and a land acknowledgment.

Deputy City Clerk Brenna Nurmi informed the community that the in-person meeting would also be recorded and streamed live to YouTube and through Zoom. She noted the two-minute timer for public comment and closed captioning on Zoom.

CITY MANAGER AND COUNCILMEMBER REPORTS:
(including AB 1234 Reports on Meetings and Conferences Attended at City Expense)

3. City Manager and Councilmember Reports:

City Manager Cristine Alilovich announced:
• City Hall to be closed on Friday, November 10, in observance of Veterans Day • Seeds of Hope event at B Street Community Center held earlier today – Next event to be held February 5, 2024
• San Rafael received an award for 4th on SMU DataArts’ nationwide Top 40 ArtsVibrant Communities of 2023 • Drugs in the Age of Fentanyl Film Screening and Panel Discussion to be held Tuesday, November 7, at 5:30 pm at Marin County Office of Education • Marin County Participatory Budgeting – Voting is now open • Inspire Teaching Artist Show, presented by Youth in Arts, to be held Friday, November 10, at 4pm at 917 C Street
City Councilmember Reports:
• Vice Mayor Llorens Gulati reported on the Police Accountability & Advisory Committee (PAAC) interviews, an East San Rafael businesses with Supervisor Rodoni event, a MCE monthly board meeting, the Mill Vally Film Festival, a Voces del Canal with SRPD community meeting, the Women of Industry Awards, a BayWAVE meeting and the Canal Dia de los Muertos event.
• Councilmember Kertz reported on an Exchange Bank ribbon-cutting, the PAAC interviews and a Marin County Council of Mayors and Councilmembers (MCCME) meeting.
• Councilmember Bushey reported on the Mill Valley Film Festival, the PAAC interviews and other Board, Commission & Committee (BCCs) interviews, a San Rafael Sanitation District board meeting, a Central Marin Sanitation Agency board meeting, a 3 Transportation Authority of Marin meeting, a Marin Transit board meeting, a Point San Pedro Road Coalition annual meeting, a MCCMC meeting in Novato and a MCCMC Water Committee meeting.
• Mayor Kate reported on SMART, a Safe Routes to Schools Walk & Roll, a Bicycle & Pedestrian Advisory Committee (BPAC) meeting, a webinar on homeless encampments near Davidson Middle School, a Marin Realtors Government Affairs event, an Arbor Day Celebration and a meeting with the Federated Indians of Graton Rancheria.

Mayor Kate invited public comment; however, there was none.

CONSENT CALENDAR:

Mayor Kate held item 4.d from the Consent Calendar.

Mayor Kate invited public comment on the Consent Calendar, not including Item 4.d.; however, there was none.

Vice Mayor Llorens Gulati moved and Councilmember Kertz seconded to approve the remainder of the Consent Calendar.

4. Consent Calendar Items:
a. Approval of Minutes
Approve Minutes of the Special and Regular City Council Meetings of October 2, 2023 and Special City Council Meetings of October 16, 2023 and October 23, 2023 (CC) Approved minutes as submitted
b. Fire Commission Appointments
Appointment of John Chung and Brian Waterbury to Fill Two Four-Year Terms as Alternate Members to the End of October 2027 on the Fire Commission (CC) Approved Appointments
c. Pickleweed Advisory Committee
Resolution Adopting New Bylaws for the Pickleweed Advisory Committee and Appointing Mydung Nguyen as an Alternate Member to the End of October 2027 on the Pickleweed Advisory Committee (CC)
Resolution 15255 - Resolution Adopting New Bylaws for the Pickleweed Advisory Committee and Approved Appointment
d. Proclamation in Recognition of Native American Heritage Month 2023 (CM) Agenda Item 4.d was held from the Consent Calendar.

Mayor Kate presented the proclamation to Lorelle Ross, Tribal Vice-Chair of the Federated Indians of Graton Rancheria
Lorelle Ross, Tribal Vice-Chair of the Federated Indians of Graton Rancheria provided comments.

Vice Mayor Llorens Gulati moved and Councilmember Kertz seconded to approve Item

4.d.
4 AYES: Councilmembers: Bushey, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: Hill
Received and filed
e. City Quarterly Investment Report
Acceptance of City of San Rafael Quarterly Investment Report for the Quarter Ending September 30, 2023 (Fin)
Accepted Report
f. Professional Services Agreement for Labor Negotiations Services Professional Services Agreement with Burke, Williams & Sorensen, LLP for Labor Negotiation Services, In an Amount Not to Exceed $150,000 (HR) Authorized the City Manager to Enter into Agreement
g. Albert Park Netting and Fencing Project
Albert Park Netting and Fencing Project Bid Rejection (PW) Rejected the Bid for the Albert Park Netting and Fencing Project and Directed Staff to Develop Design Alternatives
h. Essential Facilities Construction Project – Fire Station 55 Site Improvements Authorize the City Manager to Approve Contract Amendments to the Construction Agreement with Michael Paul Company, Inc. for Miscellaneous Unforeseen Conditions Associated with the Fire Station 55 Site Work Project (PW) Authorized the City Manager to Approve Contract Amendments AYES: Councilmembers: Bushey, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: Hill

SPECIAL PRESENTATIONS

5. Special Presentations:

Mayor Kate invited public comment; however, there was none. a. Presentation of Proclamation in Recognition of United Against Hate Week 2023 and Support for Not in Our Town (CM)
Mayor Kate presented the proclamation.

Councilmember Kertz provided comments.
b. Presentation of Proclamation in Recognition of Mark Machado, Former Park and Recreation Commissioner, for 16 Years of Service (LR)
Mayor Kate presented the proclamation to Mark Machado, former Park & Recreation Commissioner.

Mark Machado provided comments.
5 PUBLIC HEARINGS

6. Public Hearings:
a. Marin Sanitary Service Rates for 2024
Recommended Action - Removed from agenda
b. City Council Meeting Commencement Time
Consideration of An Ordinance Amending Section 2.04.10 of the San Rafael Municipal Code Concerning Regular Meetings (CC)
Linday Lara, City Clerk presented the Staff Report.

Mayor Kate invited public comment; however, there was none.

Councilmembers provided comments.

Councilmember Kertz moved and Councilmember Bushey seconded to waive further reading of the Ordinance, refer to it by title only and introduce the Ordinance; and the City Clerk read the title of the Ordinance.

An Ordinance Amending Section 2.04.10 of the San Rafael Municipal Code Concerning Regular Meetings
AYES: Councilmembers: Bushey, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: Hill
Waived further reading of the Ordinance, referred to it by title only, and introduced the Ordinance

OPEN TIME FOR PUBLIC EXPRESSION
Mayor Kate invited public comment; however, there was none.

SAN RAFAEL SUCCESSOR AGENCY:

Chair Kate invited public comment; however, there was none.

Member Bushey moved and Member Kertz seconded to approve the Consent Calendar.

1. Consent Calendar:
a. Successor Agency Quarterly Investment Report
Acceptance of Successor Agency Quarterly Investment Report for the Quarter Ending September 30, 2023 (Fin)
Accepted Report
AYES: Members: Bushey, Kertz, Llorens Gulati & Chair Kate NOES: Members: None
ABSENT: Members: Hill
ADJOURNMENT:

Mayor Kate adjourned the meeting at 7:50 p.m.
6 OPEN SESSION – COUNCIL CHAMBERS – FOLLOWING ADJOURNMENT

7. Mayor Kate to announce Closed Session items.

CLOSED SESSION – THIRD FLOOR CONFERENCE ROOM – FOLLOWING ADJOURNMENT

8. Closed Session:
a. Conference with Labor Negotiators – Government Code Section 54957.6 Lead Negotiators: Timothy L. Davis and Allison B. Hernandez (Burke, Williams & Sorensen)
Agency Designated Representatives: Cristine Alilovich, Paul Navazio, Marissa Sanchez, Sylvia Gonzalez, Angela Nicholson, and Angela Robinson Piñon Employee Organizations: San Rafael Police Mid-Management Association; Public Employee Union, Local 1; San Rafael Firefighters’ Association; San Rafael Police Association; SEIU Local 1021; Western Council of Engineers; San Rafael Fire Chief Officers’ Association; San Rafael Police Mid-Management Association; San Rafael Fire Chief Officers’ Association; Unrepresented Mid-Management; Unrepresented Executive Management
b. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Government Code section 54956.9(d)(1): 1 case
Shaleeta Boyd, et al. v. City of San Rafael, et al. (U.S. District Court, N.D. Cal., Case No. 23- cv-04085-EMC)
___________________________
LINDSAY LARA, City Clerk
APPROVED THIS _____DAY OF____________, 2023
_____________________________________
KATE COLIN, Mayor
ORDINANCE NO. 2031

AN ORDINANCE OF THE CITY OF SAN RAFAEL CITY COUNCIL AMENDING SECTION 2.04.010 OF THE SAN RAFAEL MUNICIPAL CODE CONCERNING

REGULAR MEETINGS
WHEREAS, as authorized by Article VII, Section 3 of the Charter of the City of San Rafael, the City Council has provided in San Rafael Municipal Code, Chapter 2.04, for the time and place of its meetings; and
WHEREAS, pursuant to San Rafael Municipal Code Section 2.04.010, regular meetings of the City Council currently convene on the first and third Mondays of the month at the hour of 7:00 p.m.; and
WHEREAS, the time of commencement of the meetings of the many Boards, Commissions and Committees have been changed to 6:00 p.m., and the City Council now finds that it would be in the best interests of the City for the City Council also to commence its regular meetings at 6:00 p.m., so as to facilitate the public's participation therein.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS:

DIVISION 1. Section 2.04.10 of Chapter 2.04 of the Municipal Code of the City of San Rafael is hereby amended as follows (additions are shown in underline and deletions in strikethrough):

2.04.010 - Regular meetings.

The regular meetings of the council of the City of San Rafael, County of Marin, State of California, shall be held on the first and third Monday of each month at the regular place of meeting specified in this section. Where the first or third Monday falls upon either New Year's Day, President's Day, Memorial Day, the Fourth of July, Labor Day, Veteran's Day or Christmas Day a city holiday, the council shall meet on the Tuesday following the holiday. Regular meetings shall convene at the hour of seven six p.m. (76:00 p.m.). The regular meetings may be adjourned from time to time as may be determined by the council for the purpose of completing the business and duties of the council, and may be adjourned to any other date and time.

All regular meetings of the council shall be held at the city hall situated on the northerly side of Fifth Avenue between C Street and E Street, and the meetings shall be held in the general assembly room in the building set apart for the meetings of the council.

DIVISION 2.

All former ordinances or parts thereof conflicting or inconsistent with the provisions of this Ordinance or the Codes hereby adopted are hereby repealed.

DIVISION 3.

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

DIVISION 4.

The City Council finds that adoption of this Ordinance is exempt from the California Environmental Quality Act (CEQA), pursuant to 14 CCR Section 15061(b)(3), since it can be seen with certainty that there is no possibility that the adoption of this Ordinance may have a significant effect on the environment.

DIVISION 5.

This Ordinance shall be published once, in full or in summary form, before its final passage, in a newspaper of general circulation, published and circulated in the City of San Rafael and shall be in full force and effect 30 days after its adoption. If published in summary form, the summary shall also be published within fifteen (15) days after the adoption, together with the names of those Council members voting for or against same, in a newspaper of general circulation published and circulated in the City of San Rafael, County of Marin, State of California.

Within 15 days after adoption, the City Clerk shall also post in the office of the City Clerk, a certified copy of the full text of this Ordinance along with the names of those Councilmembers voting for and against the Ordinance.

THE FOREGOING ORDINANCE was first read and introduced at a regular meeting of the San Rafael City Council on the 6th day of November 2023, and was passed and adopted at a regular meeting of the San Rafael City Council on the 20th day of November 2023 by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
_______________
Kate Colin, Mayor
Attest:
_____________________
LINDSAY LARA, City Clerk
SUMMARY OF ORDINANCE NO. 2031

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN
RAFAEL AMENDING SECTION 2.04.010 OF THE SAN RAFAEL

MUNICIPAL CODE CONCERNING REGULAR MEETINGS
This Summary concerns a proposed ordinance of the City of San Rafael, designated as Ordinance No. 2031, which will amend Section 2.04.010 of the San Rafael Municipal Code. Ordinance No. 2031 is scheduled for adoption by the San Rafael City Council at its regular meeting of November 20, 2023. The City Clerk has been directed to publish this Summary pursuant to City Charter and California Government Code section 36933(c)(1).

SUMMARY OF AMENDMENT TO MUNICIPAL CODE
The City Council currently holds its regular City Council meetings on the first and third Monday at 7:00 p.m. This proposed ordinance would amend the municipal code to have regular meetings of the City Council to be held on the first and third Monday at 6:00 p.m.

Copies of Ordinance No. 2031 are available for public review on the City’s website: https://www.cityofsanrafael.org. You may also contact the City Clerk at (415) 485-3066 for information.
________________________________

LINDSAY LARA
San Rafael City Clerk
Dated: 11/7/2023
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 4.c
Meeting Date: November 20, 2023

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Economic Development
Prepared by: Micah Hinkle
Economic Development Director
City Manager Approval: ______________
TOPIC: DOWNTOWN BUSINESS IMPROVEMENT DISTRICT (BID) BUSINESS ASSESSMENT

ANNUAL RENEWAL
SUBJECT: RESOLUTION DECLARING THE CITY COUNCIL’S INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR CALENDAR YEAR 2024 FOR THE DOWNTOWN SAN RAFAEL

BUSINESS IMPROVEMENT DISTRICT
RECOMMENDATION:

Accept the report and adopt the resolution declaring the City Council’s intention to levy an annual assessment for calendar year 2024 for the Downtown San Rafael Business Improvement District.

BACKGROUND:

Section 36500 of the California Streets and Highways Code allows for the creation of a business improvement district (BID) within a municipality, whereby businesses within the district self-assess an annual fee to pay for improvements and activities which benefit the overall business district. The intent of the state law is to provide a funding mechanism for business districts to promote economic vitality. The City of San Rafael’s role is to levy and collect membership fees from businesses within the district.

In 1979, businesses in Downtown San Rafael established a BID. This original district included approximately 125 businesses along Fourth Street between Lincoln Avenue and E Street. In 2013, the City Council voted to replace it with a larger district of approximately 700 businesses along Fourth Street.

The expanded district includes the West End and some side streets, as well as non-ground floor tenants and other tenants not included in the original BID.

Earlier this year, the City Council approved transitioning the program administration of the BID to the San Rafael Chamber of Commerce. This move, which aims to reduce costs, improve organizational synergies, and explore a sustainable funding model to support the growing needs of the downtown recently occurred in September 2023 and will be complete by the start of 2024.

For 2023, the BID Advisory Board continued its focus on supporting downtown businesses as they emerged from the COVID-19 pandemic. The BID has achieved many notable accomplishments as highlighted in its Annual Report (Attachment 2), including initiatives and partnerships to promote foot SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2

traffic downtown, hosting and/or sponsoring numerous events downtown, and actively promoting the downtown through social media, the BID website, marketing campaigns, and email blasts.

For 2024, the BID, in partnership with the San Rafael Chamber of Commerce and the City will continue to explore the potential for establishing a new property-based BID. Specifically, over the next year, the three entities will focus on establishing the potential boundaries of a new district, establishing desired services to support the downtown, and hiring a technical consultant for a feasibility study.

ANALYSIS
State law requires the BID to submit to the City Council an annual report for which assessments are to be levied and collected to pay the costs of the improvements and activities described in the report. The report may propose changes, including, but not limited to, the boundaries of the parking and business improvement area or any benefit zones within the area, the basis and method of levying the assessments, and any changes in the classification of businesses, if a classification is used.

A summary of the required report elements are as follows:

1. There are no proposed changes in the boundaries of the BID.

2. The budget outlines the improvements and activities programmed for the calendar year 2024.

3. The budget outlines the estimated cost of improvement and activities outlined for the calendar year 2024.

4. The budget outlines the surplus or deficit being carried over from the previous calendar year.

5. The budget outlines contributions anticipated from sources other than assessments, including City funds.

Staff reviewed the San Rafael Downtown BID annual report and exhibits and found it meets the State’s requirements.

As of November 1, 2023, the City of San Rafael collected $65,044 in BID annual assessments for 2023.

For calendar year 2024, the annual assessment levy on businesses will be the same as prior years. See Exhibit B to the Annual Report for the 2024 Assessment Formula.

BID Renewal Process
Per State law, to renew the annual assessment the City Council must first adopt a Resolution of Intention to Levy an Annual Assessment and set a public hearing for a future date. In accordance with State law, the annual renewal process for the BID assessment will take place at two City Council meetings as follows:

Meeting #1 – November 20, 2023
Adopt Resolution of Intention to Levy an Annual Assessment: The City Council will consider action to accept the BID annual report and adopt the resolution of intention to levy an annual assessment for calendar year 2024. The resolution sets a public hearing date of December 4, 2023.

Meeting #2 – December 4, 2023
Public Hearing on Annual Assessment: The City Council will have the opportunity to receive additional input from the public on the annual BID assessment and to confirm the levy of an assessment for the upcoming calendar year 2024.

COMMUNITY OUTREACH:

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3

The BID will notify its members of the annual renewal process through its member communications, including the BID e-newsletter, notifications on the BID website, and through agenda items at the monthly BID Board meeting.

FISCAL IMPACT:

There is no fiscal impact associated with this action. The assessment collected by the City of San Rafael on behalf of the BID is passed to the BID upon receipt. All administrative costs associated with collecting the assessment are absorbed by the General Fund.

OPTIONS:

The City Council has the following options to consider on this matter:
1) Accept report and adopt the resolution as presented. 2) Accept report and adopt the resolution with modifications. 3) Decline to accept the report and decline to adopt the resolution.

RECOMMENDED ACTION:

Accept the report and adopt the resolution declaring the City Council’s intention to levy an annual assessment for calendar year 2024 for the Downtown San Rafael Business Improvement District.

ATTACHMENTS:

1. Resolution

2. BID 2023 Annual Report, including:

A. Exhibit A: BID Map
B. Exhibit B: 2024 BID Assessment Formula
C. Exhibit C: BID 2024 Budget & 2023 Financial Summary
RESOLUTION NO.

RESOLUTION OF THE SAN RAFAEL CITY COUNCIL DECLARING THE CITY COUNCIL’S INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR CALENDAR YEAR 2024 FOR THE DOWNTOWN SAN RAFAEL BUSINESS IMPROVEMENT

DISTRICT
WHEREAS, California Streets and Highways Code Sections 36500 et seq. authorizes cities to establish parking and business improvement areas for the purpose of promoting economic revitalization and physical maintenance of business districts, in order to create jobs, attract new businesses and prevent erosion of business districts; and
WHEREAS, the Downtown San Rafael Business Improvement District (“BID”) was established in 2013 to amend the existing Parking and Business Improvements District instituted in 1979 in the commercial area on and around the Fourth Street corridor in San Rafael; and
WHEREAS, pursuant to San Rafael Municipal Code Chapter 10.09 and California Streets and Highways Code Section 36533, the Advisory Board of the BID shall prepare an annual report for each calendar year in which assessments are to be levied which the City Council shall review; and
WHEREAS, the BID Advisory Board has prepared and filed with the City Clerk its “BID 2023 Annual Report” and the City Council has reviewed and approved the report; NOW THEREFORE BE IT RESOLVED by the City Council of the City of San Rafael as follows:

1. The City Council intends to levy and collect an annual benefit assessment for calendar year 2024 on businesses in the Downtown San Rafael Business Improvement District to pay for selected improvements and activities of the BID.

2. The boundaries of the entire area to be included in the BID, and the boundaries of each separate benefit zone within the BID, are set forth in Exhibit A to the BID 2023 Annual Report on file with the City Clerk.

3. The types of improvements and activities proposed to be funded by the levy of assessments on business in the BID are set forth in the BID 2023 Annual Report on file with the City Clerk.

4. The method and the basis for levying the benefit assessment on businesses within the BID and proposed assessments to be levied for calendar year 2024 are set forth in San Rafael Municipal Code Section 10.09.050 and Exhibit B to the BID 2023 Annual Report on file with the City Clerk.

5. All funds of the BID shall be expended on improvements and activities within the BID.

6. New businesses shall not be exempt from payment of the fee.

7. A public hearing to consider the levy of the BID assessment shall be held before the City Council on December 4, 2023 at 7 p.m. in the Council Chambers, 1400 Fifth Avenue, San Rafael, California.

At the public hearing the testimony of all interested persons, for or against the levy of the BID assessment or on any of the matters included in the assessment, will be heard and all protests collected.

8. A protest against the assessment of the BID, or any aspect of the assessment may be made in writing or orally at the public hearing. To be counted as a part of a majority protest against the assessment of the BID, a protest must be in writing and from a business in the BID. A written protest may be withdrawn from the record at any time before the conclusion of the public hearing. Each written protest shall contain a written description of the business in which the person signing the protest is interested, sufficient to identify the business, and its address. If the person signing the protest is not shown on the official records of the City of San Rafael as the owner of the business, then the protest shall contain or be accompanied by written evidence that the person is the owner of the business. Any written protest of the regularity of the proceedings shall be in writing and clearly state the irregularity or defect to which objection is made.

9. If at the conclusion of the public hearing on December 4, 2023 there is a record of written protests by business owners within the BID who will pay fifty percent (50%) or more of the total assessments of the entire BID, no further proceedings to levy the proposed assessment shall occur for a period of at least one year from the date of the finding of the majority written protest by the City Council. If the majority written protest is against the furnishing of a specified type or types of improvement or activity within the area, those types of improvements or activities shall be eliminated.

10. Further information regarding the Downtown San Rafael Business Improvement District may be obtained from the Office of Economic Development at 1400 Fifth Avenue, San Rafael, CA 94901.

11. The City Clerk is directed to give notice of said public hearing by publishing this resolution of intention once in a newspaper of general circulation in the City of San Rafael, at least seven days before the hearing; and by mailing a complete copy of this Resolution of Intention to those interested parties who have filed a written request with the local agency for mailed notice of public meetings or hearings on new or increased general taxes.

I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of the City of San Rafael, held on Monday, the 20th day of November 2023, by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

Lindsay Lara, City Clerk
2023 Annual
Report
BID BOARD OF DIRECTORS 2023/24
President
Terrance Thornton,
San Rafael Martial Arts
Vice President
Adam Dawson,
Mike’s Bikes
Jeff Brusati,
T & B Sports
Bishlam & Amy Bullock,
Salon B Style Lab
Kelly Phu,
Vin Antico
Committee Members:

Jaime Ortiz,
Bank of Marin
Meg Reilly,
Marin Society of the Artists
Secretary
Tobi Lessem,
Bodywise Massage
Joe McCallum, Newmark
Knight Frank
Morgan Schauffler,
Youth in Arts
Potential New Board
Members for 2024:

Kaity Galvez,
Perry’s Deli
Valon Grajqevci,
Tam Commons
Jana Fleming,
Friends Books
DowntownSanRafael.org ~ 415-849-1874 ~ [email protected]
Dear fellow BID Members,
I would like to start by sharing our Thanks and Appreciation. Thank you for the hard work leading into this year and throughout the year.

We appreciate you and your support in our mission to revitalize the downtown corridor and promote the common interests of Downtown businesses. Thank you for continuing to make Downtown a different, fun, and memorable experience for all. For being contributors and active participants in forging memories for all that visit. • Whether it’s strolling through the Art District for the 2nd Friday Art Walk Downtown.
• Enjoying a unique dining experience with Dining Under The Lights. • The next generations learn about classic cars at May Madness. • Enjoying the Craft Beer and Premium Wines with friends with the Hops and Vines Stroll.
• Indoor or Outdoor, enjoy live music, food, activities, and more at the West End Culture Crawl.
• One of our newest events with families bonding while searching for Holiday or Summer Elves.

Along with many other memory-creating moments and events hosted in Downtown San Rafael. Building off the growth and better-thanprojected revenue in 2023, the BID is projecting a profitable 2024.

Thank you in advance for your continued support and may we all thrive together in 2024 and beyond.

Terrance Thornton, President
▪ Beautification and Landscaping upgrades - The BID
added Phase 2 and 3 to the popular and successful
Clean & Green Day on Earth Day. The BID organized a
day in September and December for volunteers to
help the BID and DPW add mulch to our intersections.
▪ Farmer’s Market – Rebuilt our relationship with AIM
to bring the Thursday Night Farmers Market back to
Fourth St, moving the weekly DUTL to the 2nd Friday of
the month to coincide with the 2nd Friday Art Walk.
▪ Engaged with the local Students – Created a Back to
School Night during the September Dining Under the
Lights.
▪ Added new board members, committee members,
and volunteers – We welcomed 3 new Board
members this year, 2 of whom work in the
food/beverage industry which added a necessary and
important voice to our group.
▪ Downtown San Rafael Arts District Collaboration –
The BID is on the DSRAD board to help increase the
visibility of the Arts in our Downtown. DSRAD received
a grant for $671k and the BID will be working with the
group to help the arts shine in Downtown San Rafael.
▪ Partnerships – Continued and strengthened
partnerships with the following organizations to bring
more foot traffic to our Downtown Businesses: SR
Chamber, Pacifics, Embassy Suites, California Film
Institute, SMART, Marin Convention & Visitors Bureau.
▪ Fundraising & Event Management – The events
committee with the help of the BID Board was able to
raise over $15k to support the BID.
▪ Downtown Eats Passport Program – New this year, the
BID developed a program to bring people Downtown to
eat in the typically quiet month of August. Ten
businesses signed up to participate and in the selffunded program. Over 100 community members participated and their feedback highlighted that they
loved exploring “new” places in Downtown.
▪ Fe-BREW-ary – New this year, the BID joined a
promotional program called Fe-BREW-ary, where our
breweries and taprooms were invited to list a special
deal or discount on a BID webpage. This page was
shared with an existing promotional program created
by SMART where Petaluma and Santa Rosa breweries
were also participating.
▪ Scavenger Hunts – Our community requested more
family-friendly activities in Downtown, so we developed 2 Elf Hunt Scavenger Hunts, one during the Summer
Kick-Off in June and one during the December holidays.
▪ Website management – The BID brought website
management in-house in 2023 saving $1200/year. The
ED strives to provide clean, fun, relevant, and timely
information on our Downtown San Rafael website.
▪ Downtown San Rafael Business Directory – Our online
directory serves as a current database of all businesses in the Downtown, complete with emails and contact
info in the back end. The ED cleaned up the database
and optimized the search tool. Directory searches have
tripled since this significant improvement.
▪ Member emails, newsletters, and updates – The BID
upgraded software this year to increase contract reach
and design capability for our monthly newsletters.
▪ Downtown News – Member news and events can be
displayed on our homepage and are also shared in the
monthly newsletter.

DowntownSanRafael.org ~ 415-849-1874 ~ [email protected]
Marketing, Promotions, Programming, Fundraising, & Collaborations BID Accomplishments 2023
▪ In 2023 added a Social Media Manager Contractor –
The BID hired a part-time social media contractor to
promote and showcase a different Downtown Business
each day on IG & FB. Since this program began in April, we increased reach by 242% in the 1st month, added
100 followers a month in IG since then, and reached 2k
per month. FB = 4,169 followers, IG = 2,707 followers
In 2023, we brought back many popular events and
successfully raised money for the BID in the process.
▪ 33rd Annual May Madness (May 6) – This Annual event
produced by Rick Lewis, the volunteer BID Event
Committee, and the ED of the BID brought roughly 5,000
people to Downtown. We raised over $18k (a new
record!) to be split between the BID and local non-profits. ▪ Total Expenses = $15,230
▪ Total Income = $33,815
▪ Event Net Profit = $18,584
▪ Net Profit for BID = $9,232
▪ 3
rd
Annual Hops & Vines Stroll (Sept 30) – The Annual
Hops & Vines Stroll traditionally brought nearly 300
people INTO Downtown Businesses. Even with the
unseasonably rainy weather, we made a net profit for the BID.
▪ Total Expenses = $6,714
▪ Total Income = $11,260
▪ Net Profit for BID = $4,545
▪ San Rafael Parade of Lights & Winter Wonderland on
Shop Small Saturday 2022 – In 2022, the BID
volunteer event committee kept a tradition alive by
creating a paired down version of the 40-year-old
event, that was once produced by a professional event
company, the day after Thanksgiving. Our intimate
version of this event was created to bring people to
Downtown on Shop Small Saturday. We had a makers
marketplace, snow machines, jumpies, food trucks,
face painting, and lighted car cruise. The event
brought approximately 1000 people to Downtown on
Shop Small Saturday. We are currently planning a
similar event in 2023 and will be making it bigger with more financial support from the City to hire an event
contractor to support on the day of and produce a
tree-lighting in the plaza. Below are our fundraising
numbers from 2022.
▪ Total expenses = $12,798
▪ Total Income = $15,625
▪ Net Profit to BID = $2,826
DowntownSanRafael.org ~ 415-849-1874 ~ [email protected]
BID Produced Events & Mixers
BID Event Accomplishments 2023
Events - Economic Drivers & More
Fundraising Events:
▪ Clean & Green Day, City of San Rafael & The BID
(April 21) – The City and BID join efforts every year on Earth Day to promote Clean and Green Day by inviting
over 40 volunteers to help mulch, remove graffiti,
pick up litter, and clean parking meters/poles.
▪ Dining Under The Lights featuring Live Music,
Outdoor Dining, and Kids Activities (May-Oct) – This
monthly event, held in conjunction with the 2nd Friday
Art Walk, included 5 blocks and brought hundreds of
people to our Downtown to enjoy Outdoor Dining,
Live Music, and Kids Activities.
▪ Friday Night Block Party in the West End (June-Oct) – This popular event held in the West End, includes
bands booked by the Pint Size Lounge. It drew
hundreds of people to not just the West End, but to
San Rafael. Past surveys showed that people came
from all over Marin and the Bay Area to enjoy the
exceptional atmosphere.
▪ 35th Annual Trick or Treat on 4th Street & Pet
Costume Contest (Oct. 28) – This Annual tradition
brings hundreds of families to our Downtown and fills
it with smiles and laughter!
▪ Annual Menorah Lighting (Dec. 10) - For the 2nd
year, we will be working with Chabad of Marin to
bring in a Giant Menorah to be lit for Hanukkah.

We will offer latkes, hot chocolate, dancing, and a
gelt drop!
DowntownSanRafael.org ~ 415-849-1874 ~ [email protected]
▪ Public Art – Work with Downtown San Rafael Arts District (DSRAD) and the City Library & Rec Director to identify opportunities to expand public art in Downtown.
▪ Continue Landscaping upgrades - Hardscape landscaping updates to intersections via volunteer coordination we are now calling the “Mulching Project”.
▪ Hanging Flower Program – Work with the City and DPW
to review potential locations to start a hanging flower pilot program. Preliminary research completed.
▪ Other Beautification options – Work with the Economic Development Department & DPW to explore more
opportunities for Downtown Beautification (power
washing, business frontage grants, awning cleaning, and more)
▪ Cleanliness – Work with DPW and the City’s Economic
Development Department to request a more proactive
cleanliness plan for Downtown San Rafael.
▪ Vacancies – Work with the City’s Economic Development Department to assist with their strategy to fill vacancies. ▪ Social Media Marketing Plan – Continue to work with a social media contractor and showcase 3 businesses per
week on Instagram and Facebook.
▪ Thursday Night Summer Farmer’s Market growth– Work
with AIM to assist in better promotion and marketing to expand the weekly Thursday Night Summer Market.

Possibly add a food truck experience in Downtown in
conjunction, or on another night.
▪ Create more culturally diverse events in Downtown–
Work with the City and volunteer BID event committee to bring more culturally diverse, relevant and inclusive
events to our downtown.
▪ Outdoor Movie Night – Work with DSRAD and Parks &
Rec to bring their successful outdoor movie night in the park program to our Downtown.
▪ Fe-BREW-ary – Continue the new February promotion and add more businesses to the SMART promotion.
▪ Scavenger Hunts – Continue to produce scavenger huntbased promotions to get people INTO local businesses with this fun and affordable program.
▪ Passport Program – Increase participation with our 2nd annual passport program to get more people INTO our
restaurants during the slower months.
▪ Explore partnerships with local Schools – Reach out to our local schools and see how we can partner together
to support the students in our community.
▪ Chamber Partnership to help BID Financial Stability & Review a PBID to increase our funding - The City has
contracted with the Chamber to support the BID. The
Chamber will conduct outreach and host informational
sessions with property owners and businesses to assist
the City feasibility analysis of a property-based
improvement district or modifications to the District
business assessment rate structure to enhance economic
vitality.
▪ Partnership & Collaboration – Continue to align the BID with DSRAD stakeholders, the SR Chamber, Pacifics,
Embassy Suites, the City, SMART, SRPD, & and more.
▪ Communicate with members/community outreach –
Continue engagement via website, email, newsletters, social media, marketing, advertising, and in person.
▪ Events: The BID has committed to continue events produced in 2023.
▪ Add board members, committee members & volunteers
– Actively recruit committee members and engage
prospective board members to build an inclusive
environment for greater equity and diversity. If you are interested, please contact us!
Future Marketing, Development, Events, & Operations
Downtown San Rafael BID Preliminary Work Plan 2024
Dear BID Members,
Coming into this role in 2022 was an exciting adventure, but also a challenge given that our Annual Assessments
were down over $25k since 2019. I worked diligently over the last 2 years to increase our funds by way of event
fundraising and by decreasing our operational costs.

Listening to our business community, I created fun
programming and promotions to help increase foot traffic.

By adding the Social Media contractor to our 2023
programming, the online visibility of our Downtown San
Rafael businesses skyrocketed! None of this would be
possible without the incredible teamwork, dedication, and passion of our BID Board. Each member's unique
perspective and expertise have helped guide our decisionmaking and execute our goals. Working with our President, Terrance, has been an absolute pleasure. His leadership and commitment to our mission have been
instrumental in driving our district's vision. I look forward to an exciting future of collaboration with the San Rafael Chamber in 2024 to continue this vision and make our
Downtown shine!
-Sarah Tipple, Executive Director
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Document Path: X:\Finance\BID\BID_Edits_20180802.mxd ZBaron Print Date: 8/13/2018 San Rafael Business Improvement District (BID) PREMIUM BID -

STANDARD BID -
BID Assessment Formula
Exhibit B
San Rafael Business Improvement District Proposed Budget for 2024 as of 11.14.23
Estimate Year
End 2023
Projected 2024
REVENUES Programs Budget 2023 Budget 2024
Balance Forward From Previous Year $ 17,000.00 $ 19,256.74 BID Assessments/City Support $58,594.00 $59,000.00
May Madness Rev for BID $9,292.32 $9,000.00
Hops & Vines $11,260.00 $ 4,500.00
Holiday Celebrations/SR Winterwonderland/Tree
Lighting/Menorah Lighting $ 20,000.00 $ 20,000.00
DSRAD kick off celebration (Fall Arts and Crafts) $ 3,500.00 DUTL (Elf Hunt, jumpy, sponsorships) $ 2,888.14 $ 3,000.00 Dining Passport Program $ 710.00 $ 710.00
Other income (refunds, interest, etc) $ 1,200.00 $ -
$124,444.46 $115,466.74
EXPENSES Programs Budget 2023 Budget 2024
Event & Marketing
Expenses
Clean and Green Day $- $-
West End events/ Culture Crawl $(1,200.00) $(1,300.00)
Trick or Treat $(600.00) $(600.00)
Mixers (fall, holiday) $(1,200.00) $(1,200.00)
Hops & Vines $(6,714.00) $(1,200.00)
Holiday Celebrations/SR Winterwonderland/Tree
Lighting/Menorah Lighting
$(20,000.00) $(20,000.00)
DSRAD Fall Arts Fest $(2,000.00) $-
DUTL $(3,000.00) $(3,000.00)
Dining Passport Program $(700.00) $(700.00)
West End Block Party $- $-
Social/print/digital Media $(1,000.00) $(4,000.00)
Beautification Efforts $- $(5,000.00)
$(36,414.00) $(37,000.00)
Operating Expenses Payroll/Staffing $(50,000.00) $(65,000.00) Employee Payroll Tax & fees $(5,000.00) $(6,000.00)
Postage Mailing $(194.00) $(194.00)
Consultants/Professional/Accounting fees $(2,893.25) $- Bank Fees $(435.00) $(200.00)
Computer Programs & Software $(3,402.51) $(2,500.00)
Insurance $(1,864.00) $(2,000.00)
Rent $(2,800.00) $-
Office Supplies $(147.00) $-
Telephone $(1,737.96) $(1,300.00)
Website Maintenance/Hosting $(300.00) $(100.00)
$(68,773.72) $(77,294.00)
Budget 2023 Budget 2024
$(105,187.72) $(114,294.00)
$124,444.46 $115,466.74
TOTAL PROFIT/LOSS $19,256.74 $1,172.74
Total Operating Income
Event & Marketing subtotal
Operating Subtotal

TOTAL EXPENSES

TOTAL INCOME
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 4.d
Meeting Date: November 20, 2023

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Fire
Prepared by: Darin White, Fire Chief
Thomas Wong, Sr. Mgmt. Analyst II
City Manager Approval: ______________
TOPIC: AGREEMENT TO PARTICIPATE IN A MEDI-CAL INTERGOVERNMENTAL

TRANSFER COST RECOVERY PROGRAM
SUBJECT: AUTHORIZE THE CITY MANAGER TO EXECUTE AN AGREEMENT ALLOWING THE

SAN RAFAEL FIRE DEPARTMENT TO PARTICIPATE IN A MEDI-CAL

INTERGOVERNMENTAL TRANSFER (IGT) PROGRAM WITH THE CALIFORNIA

DEPARTMENT OF HEALTH CARE SERVICES (DHCS) FOR THE SERVICE PERIOD OF JANUARY 1, 2022 THROUGH DECEMBER 31, 2022.

RECOMMENDATION:

Authorize the City Manager to execute an agreement allowing the San Rafael Fire Department to participate in a Medi-Cal Intergovernmental Transfer (IGT) program with the California Department of Health Care Services (DHCS) for the service period of January 1, 2022 through December 31, 2022.

EXECUTIVE SUMMARY:

The proposed agreement for participation in a Medi-Cal Intergovernmental Transfer (IGT) for the service period of January 1, 2022 through December 31, 2022 represents the ninth year of the City’s participation in the IGT program. The IGT program is administered the following year to allow for statewide ambulance data to be calculated which sets the IGT rate for each agency. The program assists the City in recovering costs associated with the provision of Emergency Medical Services (EMS) to individuals who are covered by Medi-Cal. Participation in the IGT program provides an important opportunity for the City to collect ambulance transport fees that would not otherwise be available.

Currently, the Medi-Cal program reimburses far less than the actual cost to provide the service.

BACKGROUND:

Since 2006, DHCS has offered public healthcare providers the opportunity to participate in a program that increases reimbursement for services provided to Medi-Cal Managed Care plan members. The DHCS Voluntary Rate Range Intergovernmental Transfer program (Welfare and Institutions Code §§14164, 14301.4), provides a way for Medi-Cal Managed Care Health Plan providers to gain access to federal matching funds for Medi-Cal reimbursements. In 2015, this program was expanded to include public Emergency Medical Services (EMS) providers like the San Rafael Fire Department, who provide health care/ambulance services to Medi-Cal managed care enrollees. This made eligible, public EMS providers to receive increased reimbursements from Medi-Cal Managed Care Health Plan providers.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
Under the IGT program, counties and other governmental entities in the State may elect to transfer funds to the State in support of the Medi-Cal program. These funds are used as a match for federal funds, which are eventually returned to the EMS providers through their respective Medi-Cal Managed Care Health Plan providers. In Marin County, the Medi-Cal Managed Care Health Plan provider is called Partnership HealthPlan of California.

To calculate the program’s total size and each agency’s share of the reimbursement, transport data is collected from each agency on a quarterly basis. Once collected, letters of interest are sent to each eligible agency to determine if they intend to participate. Using the letters of interest, DHCS then calculates each agency’s share of the program based on the number of returned letters of interest.

Since Q4 2022 transport data is not submitted until Q1 2023, the calendar year 2022 program is administered in 2023.

ANALYSIS:

Overview of IGT Program: The IGT program requires the transfer of eligible local dollars from the City to DHCS. DHCS, in turn, uses transferred funds from local governments to increase monthly capitation rates it previously paid Medi-Cal Managed Care Health Plan providers in the prior fiscal year, thus allowing DHCS to receive additional federal funding from the Centers for Medicare and Medicaid Services (CMS) for payment to the Medi-Cal Managed Care Health Plan providers. The Medi-Cal Managed Care Health Plan providers then pay most of their IGT-funded rate increases to the local governments that transferred the funds. Ultimately, each local government participant receives back the funding it provided to participate in the program, plus the federal match in return.

In September 2023, DHCS notified the City that a non-binding letter of interest must be submitted in order for the City to participate in the program for the service period of January 1, 2022 through December 31, 2022. Since the IGT program is voluntary, the non-binding letter allows DHCS to better estimate how many agencies will participate, which sets the IGT contribution rate for each agency.

Staff submitted the non-binding letter of interest and has been working with DHCS to develop the necessary agreement for participation. In October 2023, DHCS provided an estimated transfer amount based on the returned LOIs from participating agencies with a standard agreement that all participating agencies must sign (Attachment 1). DHCS is requesting the agreement be returned by November 24, 2023.

Transfer from the City to the State: Once CMS has approved the entire IGT transaction, and the Plan rate contracts have been signed by DHCS and the Medi-Cal Managed Care Health Plans throughout the State, DHCS will submit a request to participating agencies to transfer funds to the State. With the City Council’s approval, the City will transfer an estimated $273,667 to DHCS. Additionally, the City will make a separate estimated payment of $54,733 (20%) to DHCS as authorized in Welfare and Institutions Code Section 14301.4, to cover the administrative costs (assessment fee) of operating the IGT program for the service period of January 1, 2022, through December 31, 2022. If the State is unable to use all the transferred funds to increase Plan rates, it will return any used funds and the associated 20% administrative fee.

Payment to the City: Federal matching funds received by the City will be used to promote the wellbeing of Partnership HealthPlan of California beneficiaries by maintaining the current service levels of the paramedic program. Although DHCS and Partnership HealthPlan of California have not provided the City a revenue estimate at this time, the Fire Department expects to net roughly $450,000 for the service period of January 1, 2022 through December 31, 2022 based on prior year revenues.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
The calendar year 2021 program was temporarily put on hold by DHCS due to a request to revise rates resulting in a review and a delay of the final payment until Q4 2023. Using the last full year’s payment, FY 2019-2020, the City received $774,339, which consists of the original contributions and the federal matched funds. When the 20% pre-paid administrative fee is considered, the resulting net revenue received by the City was $458,222 for FY 2019-20. The City expects net revenue of a similar amount for calendar year 2022, as discussed below.

FISCAL IMPACT:

The IGT will support the Emergency Medical Services Fund in recovering a greater portion of its transport costs.

The DHCS agreement provides approximate transfer amounts based on information provided to the City by Partnership HealthPlan of California, the County’s Medi-Cal Managed Health Care Plan provider. A summary of the amount the City expects to transfer to DHCS and receive back through participation in this program is outlined below.

Time Period Funding
Source
Transfer
Amount to
DHCS
Admin
Fee to
DHCS
Estimated Funds
Returned to City
Estimated
Net New
Funds
2022 Calendar
Year Fund 210 $273,667 $54,733 $800,000 $471,600
The proposed funds to be transferred to the State will be allocated from the City’s Paramedic Services Fund (210) and are expected to be transferred in January 2024.

OPTIONS:

1. Authorize the City Manager to execute an agreement allowing the San Rafael Fire Department to participate in a Medi-Cal Intergovernmental Transfer (IGT) program with the California Department of Health Care Services (DHCS) for the service period of January 1, 2022 through December 31, 2022.

2. Direct staff to return with more information.

3. Take no action.

RECOMMENDED ACTION:

Authorize the City Manager to execute an agreement allowing the San Rafael Fire Department to participate in a Medi-Cal Intergovernmental Transfer (IGT) program with the California Department of Health Care Services (DHCS) for the service period of January 1, 2022 through December 31, 2022.

ATTACHMENTS:

1. IGT Agreement for 2022 Calendar Year with San Rafael Fire Department Allocation Estimates CONTRACT # IGT-22-0015
1 Template Version - 10/2023

INTERGOVERNMENTAL AGREEMENT REGARDING

TRANSFER OF PUBLIC FUNDS
This Agreement is entered into between the CALIFORNIA DEPARTMENT OF HEALTH CARE SERVICES (“DHCS”) and CITY OF SAN RAFAEL FIRE DEPARTMENT (“GOVERNMENTAL FUNDING ENTITY”) with respect to the matters set forth below.

The parties agree as follows:

AGREEMENT

1. Transfer of Public Funds

1.1 The GOVERNMENTAL FUNDING ENTITY agrees to make a transfer of funds to DHCS pursuant to sections 14164 and 14301.4 of the Welfare and Institutions Code.

The amount transferred shall be based on the sum of the applicable rate category per member per month (“PMPM”) contribution increments multiplied by member months, as reflected in Exhibit

1. The GOVERNMENTAL FUNDING ENTITY agrees to initially transfer amounts that are calculated using the Estimated Member Months in Exhibit 1, which will be reconciled to actual enrollment for the service period of January 1, 2022, through December 31, 2022 in accordance with Sub-Section 1.3 of this Agreement. The funds transferred shall be used as described in SubSection 2.2 of this Agreement. The funds shall be transferred in accordance with the terms and conditions, including schedule and amount, established by DHCS.

1.2 The GOVERNMENTAL FUNDING ENTITY shall certify that the funds transferred qualify for Federal Financial Participation pursuant to 42 C.F.R. part 433, subpart B, and are not derived from impermissible sources such as recycled Medicaid payments, Federal money excluded from use as State match, impermissible taxes, and non-bona fide provider- CONTRACT # IGT-22-0015
2 Template Version - 10/2023
related donations. Impermissible sources do not include patient care or other revenue received from programs such as Medicare or Medicaid to the extent that the program revenue is not obligated to the State as the source of funding.

1.3 DHCS shall reconcile the “Estimated Member Months,” in Exhibit 1, to actual enrollment in HEALTH PLAN(S) for the service period of January 1, 2022, through December 31, 2022 using actual enrollment figures taken from DHCS records. Enrollment reconciliation will occur on an ongoing basis as updated enrollment figures become available.

Actual enrollment figures will be considered final two years after December 31, 2022. If reconciliation results in an increase to the total amount necessary to fund the nonfederal share of the payments described in Sub-Section 2.2, the GOVERNMENTAL FUNDING ENTITY agrees to transfer any additional funds necessary to cover the difference. If reconciliation results in a decrease to the total amount necessary to fund the nonfederal share of the payments described in Sub-Section 2.2, DHCS agrees to return the unexpended funds to the GOVERNMENTAL FUNDING ENTITY. If DHCS and the GOVERNMENTAL FUNDING ENTITY mutually agree, amounts due to or owed by the GOVERNMENTAL FUNDING ENTITY may be offset against future transfers.

2. Acceptance and Use of Transferred Funds

2.1 DHCS shall exercise its authority under section 14164 of the Welfare and Institutions Code to accept funds transferred by the GOVERNMENTAL FUNDING ENTITY pursuant to this Agreement as Intergovernmental Transfer (IGTs), to use for the purpose set forth in Sub-Section 2.2.

2.2 The funds transferred by the GOVERNMENTAL FUNDING ENTITY pursuant to Section 1 and Exhibit 1 of this Agreement shall be used to fund the non-federal share CONTRACT # IGT-22-0015
3 Template Version - 10/2023
of Medi-Cal Managed Care actuarially sound capitation rates described in section 14301.4(b)(4) of the Welfare and Institutions Code as reflected in the contribution PMPM and rate categories reflected in Exhibit 1. The funds transferred shall be paid, together with the related Federal Financial Participation, by DHCS to HEALTH PLAN(S) as part of HEALTH PLAN(S)’ capitation rates for the service period of January 1, 2022, through December 31, 2022, in accordance with section 14301.4 of the Welfare and Institutions Code.

2.3 DHCS shall seek Federal Financial Participation for the capitation rates specified in Sub-Section 2.2 to the full extent permitted by federal law.

2.4 The parties acknowledge that DHCS will obtain any necessary approvals from the Centers for Medicare and Medicaid Services.

2.5 DHCS shall not direct HEALTH PLAN(S)’ expenditure of the payments received pursuant to Sub-Section 2.2.

3. Assessment Fee

3.1 DHCS shall exercise its authority under section 14301.4 of the Welfare and Institutions Code to assess a 20 percent fee related to the amounts transferred pursuant to Section 1 of this Agreement, except as provided in Sub-Section 3.2. GOVERNMENTAL FUNDING ENTITY agrees to pay the full amount of that assessment in addition to the funds transferred pursuant to Section 1 of this Agreement.

3.2 The 20-percent assessment fee shall not be applied to any portion of funds transferred pursuant to Section 1 that are exempt in accordance with sections 14301.4(d) or 14301.5(b)(4) of the Welfare and Institutions Code. DHCS shall have sole discretion to determine the amount of the funds transferred pursuant to Section 1 that will not be subject to a CONTRACT # IGT-22-0015
4 Template Version - 10/2023
20 percent fee. DHCS has determined that $ 0.00 of the transfer amounts, as shown in the table below, will not be assessed a 20 percent fee, subject to Sub-Section 3.3.

3.3 The 20-percent assessment fee pursuant to this Agreement is nonrefundable and shall be wired to DHCS simultaneously with the transfer amounts made under Section 1 of this Agreement. If at the time of the reconciliation performed pursuant to SubSection 1.3 of this Agreement, there is a change in the amount transferred that is subject to the 20-percent assessment in accordance with Sub-Section 3.1, then a proportional adjustment to the assessment fee will be made.

4. Amendments

4.1 No amendment or modification to this Agreement shall be binding on either party unless made in writing and executed by both parties.

4.2 The parties shall negotiate in good faith to amend this Agreement as necessary and appropriate to implement the requirements set forth in Section 2 of this Agreement.

5. Notices. Any and all notices required, permitted, or desired to be given hereunder by one party to the other shall either be sent via secure email or submitted in writing to the other party personally or by United States First Class, Certified or Registered mail with postage prepaid, addressed to the other party at the address as set forth below:

To the GOVERNMENTAL FUNDING ENTITY:

Thomas Wong, Senior Management Analyst II
1375 5th Ave.

San Rafael, CA 94901
(415) 458-5360
[email protected]
CONTRACT # IGT-22-0015
5 Template Version - 10/2023
With copies to:

Insert CC Info as identified by Funding Entity
To DHCS:

Vivian Beeck
California Department of Health Care Services
Capitated Rates Development Division
1501 Capitol Ave., MS 4413
Sacramento, CA 95814
[email protected]
Any required signature(s) on any documents must be in compliance with California Government Code section 16.5 and any other applicable state or federal regulations.

6. Other Provisions

6.1 This Agreement contains the entire Agreement between the parties with respect to the Medi-Cal payments described in Sub-Section 2.2 of this Agreement that are funded by the GOVERNMENTAL FUNDING ENTITY, and supersedes any previous or contemporaneous oral or written proposals, statements, discussions, negotiations or other agreements between the GOVERNMENTAL FUNDING ENTITY and DHCS relating to the subject matter of this Agreement. This Agreement is not, however, intended to be the sole agreement between the parties on matters relating to the funding and administration of the MediCal program. This Agreement shall not modify the terms of any other agreement, existing or entered into in the future, between the parties.

6.2 The non-enforcement or other waiver of any provision of this Agreement shall not be construed as a continuing waiver or as a waiver of any other provision of this Agreement.

CONTRACT # IGT-22-0015
6 Template Version - 10/2023

6.3 Sections 2 and 3 of this Agreement shall survive the expiration or termination of this Agreement.

6.4 Nothing in this Agreement is intended to confer any rights or remedies on any third party, including, without limitation, any provider(s) or groups of providers, or any right to medical services for any individual(s) or groups of individuals. Accordingly, there shall be no third party beneficiary of this Agreement.

6.5 Time is of the essence in this Agreement.

6.6 Each party hereby represents that the person(s) executing this Agreement on its behalf is duly authorized to do so.

7. State Authority. Except as expressly provided herein, nothing in this Agreement shall be construed to limit, restrict, or modify the DHCS’ powers, authorities, and duties under Federal and State law and regulations.

8. Approval. This Agreement is of no force and effect until signed by the parties.

9. Term. This Agreement shall be effective as of January 1, 2022, and shall expire as of June 30, 2025 unless terminated earlier by mutual agreement of the parties.

SIGNATURES
IN WITNESS WHEREOF, the parties hereto have executed this Agreement, on the date of the last signature below.

CITY OF SAN RAFAEL FIRE DEPARTMENT:

By: Date: _______________________
(Funding Entity Signer)
CONTRACT # IGT-22-0015
7 Template Version - 10/2023
THE STATE OF CALIFORNIA, DEPARTMENT OF HEALTH CARE SERVICES:

By: Date: _______________________
David Bishop, Acting Division Chief, Capitated Rates Development Division CONTRACT # IGT-22-0015
8 Template Version - 10/2023
Exhibit 1
* Note that Estimated Member Months are subject to variation, and the actual total Contribution (Non-Federal Share) may differ from the amount listed here. * FMAP is a weighted blend of multiple FMAPs.

Health Plan Funding Entity County Service Period Participation % Partnership Health Plan
of California
City of San Rafael Fire
Department Regional 1/2022 - 12/2022 0.51%
Category of Aid SIS/UIS Contribution
PMPM
Estimated Member
Months*
Estimated
Contribution (NonFederal Share)
Child SIS $ 0.02 2,574,310 $ 51,486
Child UIS $ 0.03 75,498 $ 2,265
Adult SIS $ 0.04 1,136,355 $ 45,454
Adult UIS $ 0.11 124,071 $ 13,648
ACA Optional Expansion SIS $ 0.01 2,310,919 $ 23,109
ACA Optional Expansion UIS $ 0.08 160,059 $ 12,805
SPD SIS $ 0.12 446,077 $ 53,529
SPD UIS $ 0.29 21,750 $ 6,308
SPD/Full-Dual SIS $ 0.03 866,986 $ 26,010
SPD/Full-Dual UIS $ 0.08 1,419 $ 114
LTC (non-dual) SIS $ 0.58 1,167 $ 677
LTC (non-dual) UIS $ 1.20 384 $ 461
LTC/Full-Dual SIS $ 0.46 31,135 $ 14,322
LTC/Full-Dual UIS $ 0.98 31 $ 30
Whole Child Model SIS $ 0.23 98,296 $ 22,608
Whole Child Model UIS $ 0.42 2,002 $ 841
Est. FE Total 7,850,459 $ 273,667
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting: _______________________
Disposition: ___________________________
Agenda Item No: 4.e
Meeting Date: November 20, 2023

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Human Resources
Prepared by: Marissa Sanchez, Human
Resources Director
City Manager Approval: ______________
TOPIC: STATE AND FEDERAL SUMMARY CRIMINAL HISTORY FOR EMPLOYEE

BACKGROUND INFORMATION
SUBJECT: RESOLUTION AUTHORIZING THE CITY OF SAN RAFAEL TO ACCESS STATE AND

FEDERAL SUMMARY CRIMINAL HISTORY FOR EMPLOYEE BACKGROUND

INFORMATION THROUGH THE DEPARTMENT OF JUSTICE
RECOMMENDATION:

Adopt a resolution to authorize the City to access state and federal summary criminal history for employee background information through the Department of Justice.

BACKGROUND:

Since 2008, the City has implemented an administrative policy to collect fingerprints and obtain a background check on every applicant who has accepted a conditional offer of employment with the City.

California Penal Code Sections 11105(b)(11) and 13300(b)(11) authorize cities to access state and local summary criminal history information for employment, licensing, or certification purposes, and federallevel criminal history by transmitting fingerprint images and related information to the Department of Justice who, in turn, transmits that information to the Federal Bureau of Investigation (FBI).

On August 16, 2021, the City Council adopted Ordinance No. 1999 to add Chapter 2.22 to the San Rafael Municipal Code entitled “Background Checks”. It established the requirement of background checks for all employee types. Currently, the San Rafael Police Department is the Custodian of Records and receives all pre-employment fingerprint and background check results.

ANALYSIS:

The Human Resources Department works closely with the San Rafael Police Department to schedule fingerprint appointments for applicants with conditional job offers. The Police Department obtains state criminal history information by transmitting fingerprints to the California Department of Justice. When a check against the national criminal database is required, as it typically is, the State acts on the City’s behalf and transmits the fingerprints to the federal Department of Justice for a report from the FBI.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
In this current process, the Custodian of Records in the Police Department receives the results of the summary criminal history. In a continuous effort to improve the operational efficiency of the hiring process, staff have identified opportunities to streamline the process of relaying results from the Custodian of Records to the Human Resources Department. These enhancements will foster quicker and more consistent communication between the Police Department and the Human Resources Department, reducing the potential for delays, accelerating the progression of applicants to the formal offer stage of employment, and ensuring a smoother experience for all involved parties.

If approved, the attached resolution would authorize the City to continue to access the state and federal summary of an applicant with a conditional offer as required under Chapter 2.22 of the San Rafael Municipal Code. This would improve the City’s overall recruitment timeline. The FBI has approved the proposed resolution language and now requires City Council approval.

FISCAL IMPACT:

There is no additional fiscal impact associated with the recommended action. Police Department staff currently collect and submit fingerprints and receive the results of background checks. Any fees associated with background checks have been included in the budget for the Human Resources Department.

OPTIONS:

The City Council has the following options to consider on this matter:

1. Adopt resolution.

2. Adopt resolution with modifications.

3. Direct staff to return with more information.

4. Take no action.

RECOMMENDED ACTION:

Adopt a resolution to authorize the City of San Rafael to access state and federal summary criminal history for employee background information through the Department of Justice.

ATTACHMENTS:

1. Resolution
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING THE

CITY OF SAN RAFAEL TO ACCESS STATE AND FEDERAL SUMMARY CRIMINAL HISTORY

FOR EMPLOYEE BACKGROUND INFORMATION THROUGH THE DEPARTMENT OF

JUSTICE
WHEREAS, Penal Code Sections 11105(b)(11) and 13300(b)(11) authorize cities, counties, districts and joint powers authorities to access state and local summary criminal history information for employment, licensing or certification purposes; and WHEREAS, Penal Code Section 11105(b)(11) authorizes cities, counties, districts and joint powers authorities to access federal level criminal history information by transmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation; and
WHEREAS, Penal Code Sections 11105(b)(11) and 13300(b)(11) require that there be a requirement or exclusion from employment, licensing, or certification expressly based on specific criminal conduct on the part of the subject of the record; and WHEREAS, Penal Code Sections 11105(b)(11) and 13300(b)(11) require the city council, board of supervisors, governing body of a city, county or district or joint powers authority to specifically authorize access to summary criminal history information for employment, licensing, or certification purposes.

NOW THEREFORE, BE IT RESOLVED, that the City of San Rafael is hereby authorized to access state and federal level summary criminal history information for employment with City of San Rafael (including volunteers and contract employees) and may not disseminate the information to a private entity; and
BE IT FURTHER RESOLVED that the City of San Rafael shall not consider a person who has been convicted of a violent or serious felony or misdemeanor eligible for employment (including volunteers and contract employees, if applicable), if and to the extent required by applicable law for a certain position.

I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of the City of San Rafael, held on Monday, the 20th day of November 2023, by the following vote, to wit:

AYES:

NOES:

ABSENT:
______________________________
LINDSAY LARA, City Clerk
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 4.f
Meeting Date: November 20, 2023

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Library and Recreation
Prepared by: Kelly Albrecht,
Senior Recreation Supervisor
City Manager Approval: ______________
TOPIC: CALIFORNIA STATE PRESCHOOL PROGRAM CONTINUED FUNDING APPLICATION FOR FISCAL YEAR 2024-2025
SUBJECT: RESOLUTION APPROVING THE CITY OF SAN RAFAEL TO ENTER INTO A FUNDING

AGREEMENT WITH THE CALIFORNIA DEPARTMENT OF EDUCATION FOR THE

PURPOSE OF PROVIDING CHILDCARE AND DEVELOPMENT SERVICES RECOMMENDATION:

Adopt the resolution approving the City of San Rafael to enter into a funding agreement with the California Department of Education to provide preschool services at Pickleweed Preschool and authorize the designated personnel, Senior Recreation Supervisor, to sign contract documents for fiscal year 2024- 2025, the Continued Funding Application and related documents.

BACKGROUND:

Assembly Bill 2759 (Chapter 308, Statutes of 2008) created the California State Preschool Program (CSPP). This program consolidated the funding for State Preschool, Prekindergarten and Family Literacy, and General Childcare center-based programs serving eligible three- and four-year-old children to create the California State Preschool Program. The program provides both part-day and full-day services which include a core class curriculum that is developmentally, culturally, and linguistically appropriate for the children served. The program also provides meals and snacks to children, parent education, referrals to health and social services for families, and staff development opportunities to employees. The program is administered through local agencies, colleges, community-action agencies, and private nonprofit agencies.

The City of San Rafael has an agreement with the State of California to operate the Pickleweed Preschool as a CSPP contractor. Contractors who wish to be considered for continued funding for Fiscal year 2024- 25 must complete the continued funding application in a timely manner. Upon the City’s submission of the application, and the State’s acceptance thereof, the 2024-2025 contract is automatically renewed in accordance with all applicable federal and state laws as well as California State Preschool Funding Terms and Conditions and Program Requirements.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
ANALYSIS:

Pickleweed Preschool has been providing preschool services since 1997. Pickleweed Preschool relies on the renewal of the CSPP contract to provide preschool services for sixty-eight income-eligible families.

The preschool is designed to facilitate the transition to kindergarten for three-year-old and four-year-old children. Each child is given the opportunity to prepare and develop at their own pace, under the supervision and care of City childcare staff. Each year, the program establishes goals for each child to build a foundation of skills needed to succeed in their future schooling and society.

FISCAL IMPACT:

The City is seeking ongoing funding support through a grant from the California Department of Education for the preschool program at Pickleweed Preschool. This important funding from the California Department of Education is essential for the City to continue providing preschool services at Pickleweed Preschool.

Estimated funds available through the grant program in fiscal year 2024-25 will depend on program enrollment and program costs to be determined through the fiscal year2024-25 budget process. For the current fiscal year, the State Department of Education is expected to provide $466,229 in grant funding, representing 69% of the program costs. The following provides a summary of the revenue sources supporting the Pickleweed Preschool Program in the current fiscal year:

Pickleweed Preschool Program Fiscal Year 2023-24 Budget Revenue Sources:

California State Department of Education State Preschool Program $466,229 First 5 Marin $100,000
Community Development Block Grant (Federal) $21,500
Safety Net (Marin Childcare Council) $20,000
Available (Prior Year) Fund Balance $66,763
Total Revenues $674,492
Expenditures:

Personnel $620,453
Non-Personnel $54,040
Total Expenditures: $674,492
OPTIONS:

The City Council has the following options to consider on this matter:

1. Adopt the resolution as proposed to enter into the funding agreement with the California Department of Education.

2. Do not adopt the resolution, resulting in the city declining the opportunity to receive grant from the California State Department of Education.

RECOMMENDED ACTION:

Adopt the resolution approving the City of San Rafael to enter into a funding agreement with the California Department of Education to provide preschool services at Pickleweed Preschool and authorize the designated personnel, Senior Recreation Supervisor, to sign contract documents for fiscal year 2024- 2025, the Continued Funding Application and related documents.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
ATTACHMENTS:

1. Resolution

2. Continued Funding Application Fiscal Year 2024-2025
RESOLUTION NO.

RESOLUTION APPROVING THE CITY OF SAN RAFAEL TO ENTER INTO A FUNDING

AGREEMENT WITH THE CALIFORNIA DEPARTMENT OF EDUCATION FOR THE PURPOSE

OF PROVIDING CHILDCARE AND DEVELOPMENT SERVICES
WHEREAS, the City operates the Pickleweed Preschool at the Pickleweed Children’s Center; and
WHEREAS, the City desires to provide no-cost preschool programming to lowincome families from East San Rafael through programming at the Pickleweed Children’s Center; and
WHEREAS, the State of California has awarded the City of San Rafael funds for subsidy of the Pickleweed Preschool Program since 1997; and WHEREAS, the City desires to enter into a funding agreement with the California Department of Education for the purpose of providing childcare and Development services.

NOW THEREFORE BE IT RESOLVED, Rafael does hereby approve the City of San Rafael to enter into a funding agreement with the California Department of Education to provide preschool services at Pickleweed Preschool and authorize the designated personnel, Senior Recreation Supervisor, to sign contract documents for fiscal year 2024-2025, the Continued Funding Application and related documents.

I, Lindsay Lara, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of the City of San Rafael held on Monday, the 20th of November 2023 by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
_____________________________
Lindsay Lara, City Clerk
Application
Fiscal Year 2024-25 CSPP Continued Funding
Early Education Division
Overview
Contractors holding a current California State Preschool Program (CSPP) contract, and if applicable a Prekindergarten and Family Literacy Support (CPKS) contract, who wish to be considered for continued funding for fiscal year (FY) 2024-25 must complete this application for continued funding. The FY 2024-25 Continued Funding Application (CFA) Overview and Instructions may be accessed on the CFA web Rag�.

Contractors who apply for and are approved for continued funding do not need to sign a contract with the CDE to provide CSPP and CPKS services for FY 2024-25.

Contracts will be automatically renewed in accordance with all applicable federal and state laws and Contract Terms and Conditions (CT&Cs). By signing this CFA, the contractor is indicating that it wishes to automatically renew its contract(s) for FY 2024-25 and accepts all of the terms and conditions of the 2024-25 CSPP contract, and if applicable the 2024-25 CPKS contract, which will be provided to the contractor no later than June 1, 2024.

Upon completion of this CFA, the California Department of Education (CDE) will review the application and may contact your agency seeking additional information.

If the CFA is returned to the COE in a timely manner but is not fully and accurately completed, funding for FY 2024-25, if approved, may be delayed.

Please also note that contractors have no vested right to a subsequent contract.

Completion of this CFA does not guarantee a renewal of funding. If the CDE determines your agency will not be renewed for a subsequent contract year, you will be notified in writing no later than April 7, 2024, pursuant to the California Code of Regulations, Title 5 (5 CCR) Section 17828.

Contractors that wish to reject the terms of the FY 2024-25 CSPP and/or CPKS contract must provide the COE with a written notice that the terms of the contract(s) are rejected by emailing [email protected] on or before June 30, 2024. The email should come from the Executive Director/Superintendent of the contracting entity or their authorized representative and state that the terms of the FY 2024-25 CSPP and, as applicable, the CPKS contract are rejected. Contractors providing such notice to the COE of the rejection of the terms of the contract will not have a contract(s) in effect for FY 2024-25. Note that while contractors who currently receive CPKS funding may reject their 2024-25 CPKS contract, they cannot reject their 2024-25 CSPP contract and still receive funding under a CPKS contract since CPKS funding is tied to having a CSPP contract.

If a contractor wishes to terminate the contract for any reason during the FY 2024- 25 contract term, the contractor shall notify the COE of its intent to terminate the contract at least 90 calendar days in advance of contract termination and shall follow CCR 17795.

Instructions
Review the "Fiscal Year 2024-25 Continued Funding Application Overview and Instructions" document provided on the CFA web page for detailed instructions on how to complete each section of the CFA. All fields must be completed unless otherwise noted as optional. The application is structured into the following sections:

Section I: Contractor Information
Section II: Contract and Program Type
Section 111: Contractor's Officers and Board of Directors Information Section IV: Program Narrative
Section V: Subcontract Certification
Section VI: Contractor Certification
Section VII: CFA Checklist
Only a person with the legal authority to contractually bind the agency, or the contractor's "authorized representative" identified in the Board Resolution, may sign the CFA and related contractual documents on behalf of the agency.

Please refer to the "Fiscal Year 2024-25 Continued Funding Application Overview and Instructions" and the template Board Resolution provided on the CFA web Rag .

If you do not complete the CFA in one session, you must select the Save Responses button located on the bottom of the screen. Once selected, you will be redirected to a new browser window to enter your email address. You will receive an email with a unique web address for entrance back into the CFA. It is recommended that you save the application web address. If you have any questions regarding the CFA, please contact [email protected].

I _Reset 11 Save Responses 11 Next j
-·'1 }·'/'•
( ([ f / / () l / { rH P MU M N r • EDUCATION
Section I: Contractor Information
Contractor Legal Name:

City of San Rafael
Contractor "Doing Business As" (DBA): (Optional)
Headquartered County:

I 21 Marin v J
Vendor Number:

Executive Director Name:

Cristine Alilovich
Executive Director Telephone Number: (999-999-9999)
415-485-3384
Executive Director Email Address:
[email protected]
Legal Business Address:
1400 Fifth Avenue
City:

San Rafael
Zip Code:
94901
Is Mailing Address different from Legal Business Address? @ Yes
0 No
Mailing Address:
618 B Street
Application
Mailing Cit
San Rafael
Mailing Zip Code:
94901
Name of Person Completing the CFA:
kelly Albrecht
Title of Person Completing the CFA:

Senior Recreation Supervisor
Contact Person Telephone Number: (999-999-9999)
415-485-3386
Contact Person Email Address:
[email protected]
j Back 11 Reset 11 Save Responses ] j Next )
( J // I-"
, ,1 ; : i ': fl, F .•\ 1 1 P/,. N r or • EDUCATION
Section II: Contract and Program Type
Part 1: Contract and Program Type
Application
Check all applicable boxes indicating the programs the contractor intends to continue to administer for FY 2024-25. The contractor agrees to continue implementation of these programs with funds provided by the COE.

Contract Type: (select all that apply)
rJ CSPP
0 CPKS
Does the CSPP operate a Family Childcare Home Education Network (FCHEEN)?
0 Yes
@ No
ProgramType: (Select all that apply. A completed Program Calendar (Form EEO 9730) must be submitted. If the contractor operates both a full-day and a part-day program, a separate Program Calendar (Form EEO 9730) must be uploaded for each.)
0 Full-Day/Full-Year
Part-Day/Part-Year
D Full-Day/Part-Year
D Part-Day/Full-Year
Part 2: Projected Enrollment
Insert the number of subsidized children your agency expects to enroll with the CSPP contract for each county services are provided, as applicable.

How many counties does your agency operate in?
I 1 VI
County 1 Information
Select the County Name: I 21 Marin v I
Number of Children to be
Enrolled in Part-Day CSPP 68
in County 1: ---
Number of Children to be
Enrolled in Full-Day CSPP o
in County 1: ·---
Total Number of Children to ----- 68 be Enrolled in County 1:

Total Number of CSPP Children to be Enrolled: (Add the total from each county.)
68 [ Back 11 Reset I [ Save Responses ] I Next I
Application
Section Ill: Contractor's Officers and Board of Directors Information
Does the contractor have a board of directors?
@ Yes
0 No
How many officers and board members/governing individuals (i.e., owner, director, etc.) does your agency have? (If there are more than 10, please complete this section and email [email protected] with any additional members and their contact information.)
I s vi
Officer #1:

Officer 1 First
Name:

Officer 1 Last
Name:

Officer 1 Title:

Officer 1
Telephone
Number: (999-
999-9999)
Officer 1 Mailing
Address:

Officer 1 Mailing
City:

Officer 1 Mailing
Zip Code:

Officer 1 Email
Address:

Officer #2:

Officer 2 First
Name:

Officer 2 Last
Name:

Officer 2 Title:

Kate
Colin
Mayor
415-205-3119
11400 Fifth Avenue
San Rafael
94901
[email protected]
Maribeth
Bushey
Council Member
Officer 2
Telephone
Number (999-
999-9999):

Officer 2 Mailing
Address:

Officer 2 Mailing
City:

Officer 2 Mailing
Zip Code:

Officer 2 Email
Address:

Officer #3:

Officer 3 First
Name:

Officer 3 Last
Name:

Officer 3 Title:

Officer 3
Telephone
Number (999-
999-9999):

Officer 3 Mailing
Address:

Officer 3 Mailing
City:

Officer 3 Mailing
Zip.Code:

Officer 3 Email
Address:

Officer #4:

Officer 4 First
Name:

Officer 4 Last
Name:

Officer 4 Title:

Officer 4
Telephone
Number (999-
999-9999):

Officer 4 Mailing
Address:

Officer 4 Mailing
City:
415-485-3070
11400 Fifth Avenue
San Rafael
94901
I maribeth. [email protected]
Eli
Hill
Council Member
415-485-3070
11400 Fifth Avenue
San Rafael
94901
[email protected]
Maika
Llorens Gulati
Council Member
415-485-3070
11400 Fifth Avenue
San Rafael
Officer 4 Mailing
Zip Code:

Officer 4 Email
Address:

Officer #5:

Officer 5 First
Name:

Officer 5 Last
Name:

Officer 5 Title:

Officer 5
Telephone
Number (999-
999-9999):

Officer 5 Mailing
Address:

Officer 5 Mailing
City:

Officer 5 Mailing
Zip Code:

Officer 5 Email
Address:
94901
[email protected]
Rachel
Kertz
Council Member
415-485-3070
11400 Fifth Avenue
San Rafael
94901
[email protected]
Have any of the listed officers, board members, owners or other governing individuals ever served as an officer, board member, owner or governing individual with an agency that received state or federal funding and which agency funding was terminated or involuntarily nonrenewed, or the agency was debarred from funding for any period of time?
0 Yes
@ No
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(/ I if', I'll i DEPARTMENT OF • EDUCATION
Section IV: Program Narrative
Application
Does the contractor have program or minimum days of operation (MDO) changes?
O Yes
@ No
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Application
Section V: Subcontract Certification
Subcontractor refers to a separate agency subcontracted to provide CSPP services in accordance with the provisions contained in the California Education Code, 5 CCR, and the CT&Cs.

Does the Contractor have subcontractors?
O Yes
@ No
Contractors who subcontract CSPP services must also submit a completed Subcontractor Information Form (EED-3704B). The form is available on the CFA web Rag§..

AGREEMENT: By signing this application electronically, I, the District Superintendent, or authorized designee, agree that my electronic signature is the legally binding equivalent to my handwritten signature. @ Yes
0 No
Printed Name of the Contractor's Authorized Representative:
kelly Albrecht
Title of the Contractor's Authorized Representative:

Senior Recreation Supervisor
Certification Date: (MM/OO/YYYY)
10/25/2023
Authorized Representative's Telephone Number: (999-999-9999) 415-485-3386
Authorized Representative's Email Address:
kelly.albrecht@cityofsanraf ael. org
Application
Section VI: Contractor Certification
Under penalty of perjury, I certify the following statements as true and correct to the best of my knowledge: (Each box below must be selected in order to continue with the application.)
l"J I have read and understand the staffing requirements for Program Director, Site Supervisor, and Teacher. All staff employed by the contractor for the provision of preschool services are fully qualified for their respective positions. The exception to this certification is a person employed as Program Director or Site Supervisor who possesses a current Staffing Qualifications Waiver approved by the Early Education Division.
r'J I am authorized by the contractor's Board of Directors or other governing authority to execute this CFA, signifying their intent to automatically renew the current CSPP contract, and CPKS contract if applicable, for FY 2024- 25, under new terms and conditions to be established by the COE, unless rejected in writing prior to the effective date of the new CSPP contract(s) on June 30, 2024.
rJ On behalf of the contractor and its governing authority, I understand that some information requested in this CFA is intended for use by COE auditors in connection with future audit work and performance reviews and may not be used, reviewed, or considered by the COE until after the contract has expired, if ever. Therefore, the contractor further understands that the information (and any underlying transactions) disclosed by this CFA shall not be considered properly noticed to the COE, nor approved, accepted, or authorized by the COE, even if the contractor's request for continued funding by the COE is subsequently approved.
rJ The governing board members or persons with governing authority have been trained in understanding conflict of interest requirements associated with their positions on the board and have reported all known conflicts of interest.

As the authorized representative of the CSPP contractor named in this application, I certify that: (Each box below must be selected in order to continue with the application.)
l"J I have reviewed all of the information for my agency and, to the best of my knowledge, the information on the CDMIS website reflects accurate information for my agency as of the date this certification is signed. l'J I understand my obligation as a CSPP contractor to ensure the accuracy of information in CDMIS on an ongoing basis and will update the information in CDMIS as needed throughout the contract period.

As the signer on this CFA I have supervisory authority over the CSPP and have actual, personal knowledge of the information provided in this CFA. I am familiar with and will ensure that the contractor complies with all applicable program statutes and regulations in effect for FY 2024-25, including but not limited to: (Each box below must be selected in order to continue with the application.)
l'J Subcontracting requirements, including competitive bidding, COE approval, and audit requirements in 5 CCR.
l'J Prohibitions on conflicts of interests, including (i) the assurances required to establish that transactions with officers, directors and other related party transactions are conducted at arm's length, and (ii) employment limitations stated in EC.
l'J Cost reimbursement requirements, including reimbursable and nonreimbursable costs, documentation requirements, the provisions for determining the reimbursable amount and other provisions in 5 CCR, and accounting and reporting requirements in 5 CCR.
ea Operational and programmatic requirements.
l'J Personnel requirements as stipulated in the California Education Code, 5 CCR; and the CT &Cs.

By signing this CFA, the contractor is indicating that it wishes to automatically renew the current contract for FY 2024-25 and, if approved, is willing to, and does accept, all terms and conditions of the CSPP contract, which will be provided to the contractor no later than June 1, 2024. The contractor may reject the FY 2024-25 contract by providing the COE with a written notice of rejection no later than June 30, 2024. Contractors that wish to reject the terms of the FY 2024-25 contract must provide written notice that the terms of the contract are rejected by emailing [email protected] on or before June 30, 2024. The email should come from the Executive Director/Superintendent of the contracting entity or their authorized representative and state that the terms of the FY 2024-25 CSPP contract, and CPKS contract if applicable, are rejected.

Contractors providing such notice to the COE of the rejection of the terms of the contract(s) will not have a contract(s) in effect for FY 2024-25. I understand that failure to timely reject the terms of the contract means that the contract may be automatically renewed for FY 2024-25 starting on July 1, 2024.

AGREEMENT: By signing this application electronically, I, the District Superintendent, or authorized designee, agree that my electronic signature is the legally binding equivalent to my handwritten signature. @ Yes
0 No
Printed Name of the Contractor's Authorized Representative:
kelly Albrecht
Title of the Contractor's Authorized Representative:

Senior Recreation Supervisor
Certification Date: (MM/OO/YYYY)
10/25/2023
Authorized Representative's Telephone Number: (999-999-9999) 415-485-3386
Authorized Representative's Email Address:
[email protected]
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Application
Section VII - CFA Checklist
Is the Contractor a public or non-public agency? (The State Administrative Manual defines a public agency as any state agency, city, county, special district, school district, community college district, county superintendent of schools, or federal agency. A charter school is also a public agency. Any agency that does not meet these criteria is considered a "nonpublic agency.'? @ Public Agency
0 Non-Public Agency
Is the Contractor a community college or community college district in California? (Community colleges and community college districts appear in the California Community Colleges Chancellor's Office Directory) 0 Yes
@ No
Is the Contractor a local education agency (LEA)? (An LEA is a local entity involved in education including but not limited to school districts, county offices of education, direct-funded charter schools, and special education local plan areas. LEAs appear in the California School Directory) 0 Yes
@ No
All forms and documentation listed below must be completed and attached to this application when submitting the CFA. Download, complete, and save each required attachment, as applicable, from the CFA web Rag . Before uploading your completed attachments, they must be saved on your computer in a compressed (zipped) folder.

Instructions for saving all attachments in a compressed (zipped) folder:

Save all completed attachments in one folder on your computer. Name each document with your Vendor ID Number followed by the title of the document, for example "12345 - STD 204," "12345 - Board Resolution," etc.

Name the folder containing all attachments with your Vendor ID Number followed by "CFAAttachments," for example "12345 - CFAAttachments." Right click on the folder, hover your cursor over the "Send to" option, then select "Compressed (zipped) folder." (Mac users may instead select all the documents within the folder, right click, and select "Compress X items" where X is the number of items selected.) The compressed folder will appear in the same location as the original folder. The compressed folder name will end with ".zip." Check each box below to confirm the required item is completed and included in your zipped file:

Part-Day Calendar (Form EEO 9730). Required for contractors who indicated a Part-Day program type in Section II.

Included
California Civil Rights Laws Certification (C0-005). Required for all contractors.

Included
Contractor Certification Clauses (CCC). Required for all contractors.

Included
Federal Certification (C0.8). Required for all contractors. rJ Included
CDMIS Agency Information Certification. Required for all contractors. (Review all information in CDMIS, update any outdated or incorrect information, and generate the Agency Information Certification form. Log on to the COM IS and follow the steps outlined in the FY 2024-25 CFA Instructions.) rJ Included
Public Agency's Board Resolution or Minutes authorizing signature authority.

Required for all Public Agencies. (If the contractor is a County Office of Education, Resolution is not required only IF the CFA is signed by the County Superintendent).
rJ Included
□ Not Applicable
If applicable: Application for License Exemption. Applicable only for LEAs choosing to apply to be exempt from licensure pursuant to Health & Safety Code (H&SC) Section 1596.792(0).
□ Included
Not Applicable
Upload the .zip file containing all required attachments. To upload the file, click the icon below, select the .zip folder saved on your computer, and click "upload." When the file has uploaded successfully a unique ID will appear in the box below .
.!.

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L;a11rornIa uepartment or t:.aucauon
Early Education Division
California State Preschool Program Fiscal Year 2024-25 Program Calendar t:.t:.U-l:H;jU
09/2023
Contractor Name: City of San Rafael
Vendor Number: 2193 Contract Type: CSPP
county: Marin
Program Type: Part-Day
Instructions: Check the box on each date your program will operate. Total days of operation will automatically calculate.

July 2024 Days of Operation 0

SUN MON TUE WED THU FRI
N/A 1 □ 2 □ 3 □ 4 □ 5 □
7 □ 8 □ 9 □ 10 0 11 □ 12 □
14 □ 15 □ 16 □ 17 0 18 0 19 □
21 □ 22 □ 23 □ 24 □ 25 □ 26 0
28 0 29 □ 30 □ 31 □ NIA NIA
A uoust 2024 D avs o fO oeratIon 13

SUN MON TUE WED THU FRI
NIA NIA NIA NIA 1 □ 2 □
4 □ 5 □ 6 □ 7 □ 8 □ 9 □
11 □ 12 0 13 0 14 0 15 0 16 0
18 □ 19 0 20 0 21 0 22 0 23 0
25 □ 26 0 27 0 28 0 29 0 30 0
September 2024 Days of Operation 20

SUN MON TUE WED THU FRI
1 □ 2 □ 3 0 4 0 5 0 6 0
8 □ 9 0 10 Ii 11 0 12 I 13 0
15 1 16 0 17 0 18 0 19 0 20 0
22 □ 23 0 24 I 25 0 26 r 27 0
29 0 30 0 NIA NIA NIA NIA
October 2024 Da s of O eration 14

SUN MON TUE WED THU FRI
NIA N
6 13
20 27
NIA
3 10
17 24
December 2024 Davs of Operation 15

SUN MON TUE- WED THU
1 □ 2 0 3 171 4 0 5 0
8 □ 9 0 10 0 11 0 12 0
15 □ 16 [ l 17 0 18 0 19 0
22 □ 23 □ 24 0 25 0 26 □
29 □ 30 □ 31 0 NIA NIA
FRI
6 0
13 0
20 l.ll
27 0
NIA
SAT
6 □
13 □
20 □
27 □
NIA
SAT
3 □
10 0
17 0
24 0
31 0
SAT
7 □
14 1
21 0
28 1
NIA
SAT
7 □
14 0
21 0
28 □
N/A
January 2025 Days of Operation 19

SUN MON TUE WED THU
NIA NIA NIA 1 □ 2 □
5 □ 6 0 7 0 8 0 9 0
12 0 13 0 14 0 15 0 16 0
19 0 20 0 21 171 22 0 23 0
26 n 27 0 28 0 29 0 30 0
Februarv 2025 Days of Operation 16

SUN MON TUE WED THU

NIA NIA NIA N/A NIA
2 □ 3 0 4 0 5 0 6 0
9 □ 10 0 11 0 12 0 13 0
16 0 17 0 18 0 19 0 20 0
23 0 24 0 25 0 26 0 27 0
M arc h 2025 D all's 0 fO Ipera t' I0n 15

SUN MON TUE WED THU

N/A NIA N/A N/A NIA
2 □ 3 0 4 17 5 0 6 17
9 n 10 0 11 0 12 0 13 0
16 0 17 0 18 □ 19 0 20 0
23 0 24 0 25 J l 26 0 27 l l
30 0 31 0 NIA NIA NIA
NI
6 13
20 27
May 2025 Days of Operation 21

SUN MON TUE WED THU
NIA NIA NIA NIA 1 0
4 □ 5 0 6 0 7 0 8 0
11 □-12 l.ll 13 [ J 14 l.ll 15 0
18 LJ 19 0 20 0 21 0 22 0
25 0 26 L J 27 0 28 l.ll 29 I..{]
June 2025 Days of Operation 9

SUN MON TUE WED THU
1 □ 2 0 3 0 4 0 5 0
8 □ 9 0 10 0 11 0 12 0
15 0 16 0 17 0 18 □ 19 0
22 0 23 0 24 0 25 0 26 0
29 □ 30 0 NIA NIA NIA
Total Days of Operation: 175
EEO Consultant Initials (For EEO Use Only)
Date Approved by EEO (For EEO Use Only)

FRI SAT
3 □ 4 □
10 0 11 □
17 0 18 D
24 0 25 □
31 0 N/A

FRI SAT
N/A 1 □
7 0 8 □
14 0 15 0
21 0 22 □
28 0 N/A

FRI SAT
NIA 1 □
7 0 8 r
14 0 15 0
21 0 22 0
28 0 29 0

NIA NIA

FRI SAT

FRI SAT
2 I..{] 3 □
9 0 10 □
16 I..{] 17 I l
23 0 24 0
30 I..{] 31 LJ

FRI SAT
6 0 7 □
13 □ 14 □
20 0 21 □
27 0 28 □

NIA NIA
California Department of Education
Fiscal & Administrative Services Division
CO-005 (NEW 4/2020)

CALIFORNIA CIVIL RIGHTS LAWS CERTIFICATION
Pursuant to Public Contract Code section 2010, if a bidder or proposer executes or renews a contract in the amount of $100,000 or more on or after January 1, 2017, the bidder or proposer hereby certifies compliance with the following:

1. CALIFORNIA CIVIL RIGHTS LAWS: For contracts $100,000 or more, executed or renewed after January 1, 2017, the contractor certifies compliance with the Unruh Civil Rights Act (Section 51 of the Civil Code) and the Fair Employment and Housing Act (Section 12960 of the Government Code); and

2. EMPLOYER DISCRIMINATORY POLICIES: For contracts $100,000 or more, executed or renewed after January 1, 2017, if a Contractor has an internal policy against a sovereign nation or peoples recognized by the United States government, the Contractor certifies that such policies are not used in violation of the Unruh Civil Rights Act (Section 51 of the Civil Code) or the Fair Employment and Housing Act (Section 12960 of the Government Code).

CERTIFICATION
I, the official named below, certify under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

1. Proposer/Bidder Firm Name (Printed):

City of San Rafael

2. Federal ID Number:
946000424

3. By (Authorized Signature):

4. Printed Name and Title of Person Signing:

Kelly Albrecht, Senior Recreation Supervisor

5. Date Executed:
10/24/2023

6. Executed in the County and State of:

Marin

Contractor Certification Clauses
CCC 04/2017

CERTIFICATION
I, the official named below, CERTIFY UNDER PENAL TY OF PERJURY that I am duly authorized to legally bind the prospective Contractor to the clause(s) listed below. This certification is made under the laws of the State of California.

Contractor/Bidder Firm Name (Printed)
City of San Rafael
By (Authorized Signature)
Printed Name and Title of Person Signing
Kelly Albrecht, Senior Recreation Supervisor
Date Executed
10/24/2023

CONTRACTOR CERTIFICATION CLAUSES
Federal ID Number
946000424
Executed in the County of
Marin

1. STATEMENT OF COMPLIANCE: Contractor has, unless exempted, complied with the nondiscrimination program requirements. (Gov. Code §12990 (a-f) and CCR, Title 2, Section 11102) (Not applicable to public entities.)

2. DRUG-FREE WORKPLACE REQUIREMENTS: Contractor will comply with the requirements of the Drug-Free Workplace Act of 1990 and will provide a drug-free workplace by taking the following actions:
a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations.
b. Establish a Drug-Free Awareness Program to inform employees about:
1) the dangers of drug abuse in the workplace;
2) the person's or organization's policy of maintaining a drug-free workplace; 3) any available counseling, rehabilitation and employee assistance programs; and, 4) penalties that may be imposed upon employees for drug abuse violations. c. Every employee who works on the proposed Agreement will:
1) receive a copy of the company's drug-free workplace policy statement; and, 2) agree to abide by the terms of the company's statement as a condition of employment on the Agreement.

Failure to comply with these requirements may result in suspension of payments under the Agreement or termination of the Agreement or both and Contractor may be ineligible for award of any future State agreements if the department determines that any of the following has occurred: the Contractor has made false certification, or violated the certification by failing to carry out the requirements as noted above. (Gov. Code §8350 et seq.)

3. NATIONAL LABOR RELATIONS BOARD CERTIFICATION: Contractor certifies that no more than one (1) final unappealable finding of contempt of court by a Federal court has been issued against Contractor within the immediately preceding two-year period because of Contractor's failure to comply with an order of a Federal court, which orders Contractor to comply with an order of the National Labor Relations Board. (Pub. Contract Code §10296) (Not applicable to public entities.)

4. CONTRACTS FOR LEGAL SERVICES $50,000 OR MORE- PRO BONO REQUIREMENT: Contractor hereby certifies that Contractor will comply with the requirements of Section 6072 of the Business and Professions Code, effective January 1, 2003.

Contractor agrees to make a good faith effort to provide a minimum number of hours of pro bona legal services during each year of the contract equal to the lessor of 30 multiplied by the number of full time attorneys in the firm's offices in the State, with the number of hours prorated on an actual day basis for any contract period of less than a full year or 10% of its contract with the State.

Failure to make a good faith effort may be cause for non-renewal of a state contract for legal services, and may be taken into account when determining the award of future contracts with the State for legal services.

5. EXPATRIATE CORPORATIONS: Contractor hereby declares that it is not an expatriate corporation or subsidiary of an expatriate corporation within the meaning of Public Contract Code Section 10286 and 10286.1, and is eligible to contract with the State of California.

6. SWEATFREE CODE OF CONDUCT:
a. All Contractors contracting for the procurement or laundering of apparel, garments or corresponding accessories, or the procurement of equipment, materials, or supplies, other than procurement related to a public works contract, declare under penalty of perjury that no apparel, garments or corresponding accessories, equipment, materials, or supplies furnished to the state pursuant to the contract have been laundered or produced in whole or in part by sweatshop labor, forced labor, convict labor, indentured labor under penal sanction, abusive forms of child labor or exploitation of children in sweatshop labor, or with the benefit of sweatshop labor, forced labor, convict labor, indentured labor under penal sanction, abusive forms of child labor or exploitation of children in sweatshop labor.

The contractor further declares under penalty of perjury that they adhere to the Sweatfree Code of Conduct as set forth on the California Department of Industrial Relations website located at www.dir.ca.gov, and Public Contract Code Section 6108. b. The contractor agrees to cooperate fully in providing reasonable access to the contractor's records, documents, agents or employees, or premises if reasonably required by authorized officials of the contracting agency, the Department of Industrial Relations, or the Department of Justice to determine the contractor's compliance with the requirements under paragraph (a).

7. DOMESTIC PARTNERS: For contracts of $100,000 or more, Contractor certifies that Contractor is in compliance with Public Contract Code section 10295.3.

8. GENDER IDENTITY: For contracts of $100,000 or more, Contractor certifies that Contractor is in compliance with Public Contract Code section 10295.35.

DOING BUSINESS WITH THE STATE OF CALIFORNIA
The following laws apply to persons or entities doing business with the State of California.

1. CONFLICT OF INTEREST: Contractor needs to be aware of the following provisions regarding current or former state employees. If Contractor has any questions on the status of any person rendering services or involved with the Agreement, the awarding agency must be contacted immediately for clarification.

Current State Employees (Pub. Contract Code §10410):
1 ). No officer or employee shall engage in any employment, activity or enterprise from which the officer or employee receives compensation or has a financial interest and which is sponsored or funded by any state agency, unless the employment, activity or enterprise is required as a condition of regular state employment. 2). No officer or employee shall contract on his or her own behalf as an independent contractor with any state agency to provide goods or services.

Former State Employees (Pub. Contract Code §10411 ):
1 ). For the two-year period from the date he or she left state employment, no former state officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements or any part of the decision-making process relevant to the contract while employed in any capacity by any state agency. 2). For the twelve-month period from the date he or she left state employment, no former state officer or employee may enter into a contract with any state agency if he or she was employed by that state agency in a policy-making position in the same general subject area as the proposed contract within the 12-month period prior to his or her leaving state service.

If Contractor violates any provisions of above paragraphs, such action by Contractor shall render this Agreement void. (Pub. Contract Code §10420) Members of boards and commissions are exempt from this section if they do not receive payment other than payment of each meeting of the board or commission, payment for preparatory time and payment for per diem. (Pub. Contract Code §10430 (e))

2. LABOR CODE/WORKERS' COMPENSATION: Contractor needs to be aware of the provisions which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions, and Contractor affirms to comply with such provisions before commencing the performance of the work of this Agreement. (Labor Code Section 3700)

3. AMERICANS WITH DISABILITIES ACT: Contractor assures the State that it complies with the Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et seq.)

4. CONTRACTOR NAME CHANGE: An amendment is required to change the Contractor's name as listed on this Agreement. Upon receipt of legal documentation of the name change the State will process the amendment. Payment of invoices presented with a new name cannot be paid prior to approval of said amendment.

5. CORPORATE QUALIFICATIONS TO DO BUSINESS IN CALIFORNIA:
a. When agreements are to be performed in the state by corporations, the contracting agencies will be verifying that the contractor is currently qualified to do business in California in order to ensure that all obligations due to the state are fulfilled. b. "Doing business" is defined in R&TC Section 23101 as actively engaging in any transaction for the purpose of financial or pecuniary gain or profit. Although there are some statutory exceptions to taxation, rarely will a corporate contractor performing within the state not be subject to the franchise tax.
c. Both domestic and foreign corporations (those incorporated outside of California) must be in good standing in order to be qualified to do business in California. Agencies will determine whether a corporation is in good standing by calling the Office of the Secretary of State.

6. RESOLUTION: A county, city, district, or other local public body must provide the State with a copy of a resolution, order, motion, or ordinance of the local governing body which by law has authority to enter into an agreement, authorizing execution of the agreement.

7. AIR OR WATER POLLUTION VIOLATION: Under the State laws, the Contractor shall not be: (1) in violation of any order or resolution not subject to review promulgated by the State Air Resources Board or an air pollution control district; (2) subject to cease and desist order not subject to review issued pursuant to Section 13301 of the Water Code for violation of waste discharge requirements or discharge prohibitions; or (3) finally determined to be in violation of provisions of federal law relating to air or water pollution.

8. PAYEE DATA RECORD FORM STD. 204: This form must be completed by all contractors that are not another state agency or other governmental entity.

FEDERAL CERTIFICATIONS
co.a (REV. 06120)
California Department of Education
CERTIFICATIONS REGARDING LOBBYING; DEBARMENT, SUSPENSION AND OTHER RESPONSIBILITY MATTERS; AND DRUG-FREE WORKPLACE REQUIREMENTS Applicants should refer to the regulations cited below to determine the certification to which they are required to attest. Applicants should also review the instructions for certification included in the regulations before completing this form. Signature on this form provides for compliance with certification requirements under 45 CFR Part 93, "New restrictions on Lobbying," and 45 CFR Part 76, "Government-wide Debarment and Suspension (Non procurement) and Government-wide requirements for Drug-Free Workplace (Grants)." The certifications shall be treated as a material representation of fact upon which reliance will be placed when the Department of Education determines to award the covered transaction, grant, or cooperative agreement.

1. LOBBYING
As required by Section 1352, Title 31 of the U.S.

Code, and implemented at 45 CFR Part 93, for
persons entering into a grant or cooperative
agreement over $100,000 as defined at 45 CFR
Part 93, Sections 93.105 and 93.110, the applicant
certifies that:
(a) No federal appropriated funds have been paid
or will be paid, by or on behalf of the undersigned,
to any person for influencing or attempting to
influence an officer or employee of any agency, a
member of Congress in connection with the
making of any federal grant, the entering into of
any cooperative agreement, and the extension,
continuation, renewal, amendment, ormodification
of any federal grant or cooperative agreement:
(b) If any funds other than federal appropriated
funds have been or will be paid to any person for
influencing or attempting to influence an employee
of Congress, or any employee of a Member of
Congress in connection with this Federal grant or
cooperative agreement, the undersigned shall
complete and submit Standard Form -LLL,
"Disclosure Form to Report Lobbying," in
accordance with this instruction;
(c) The undersigned shall require that the language
of this certification be included in the award
documents for all subawards at all tiers (including
subgrants, contracts under grants and cooperative
agreements, and subcontracts) and that all
subrecipients shall certify and disclose
accordingly.
1 2. DEBARMENT, SUSPENSION, AND OTHER

RESPONSIBILITY MATTERS
As required by executive Order 12549, Debarment
and Suspension, and other responsibilities
implemented at 45 CFR Part 76, for prospective
participants in primary or a lower tier covered
transactions, as defined at 45 CFR Part 76,
Sections 76.105 and 76.110.

A. The applicant certifies that it and its principals:
(a) Are not presently debarred, suspended
proposed for debarment, declared ineligible, or
voluntarily excluded from covered transactions by
any federal department or agency:
(b) Have not within a three-year period preceding
this application been convicted of or had a civil
judgment rendered against them for commission of
fraud or a criminal offense in connection with
obtaining, attempting to obtain, or performing a
public (federal, state, or local) transaction or
contract under a public transaction violation of
federal or State antitrust statutes or commission of
embezzlement, theft, forgery, bribery, falsification
or destruction of records, making false statements,
or receiving stolen property;
(c) Are not presently indicted for or otherwise
criminally or civilly charged by a governmental
entity (federal, state, or local) with commission of
any of the offenses enumerated in paragraph (1)
(b) of this certification; and
(d) Have not within a three-year period proceeding
this application had one or more public
transactions (federal, state, or local) terminated for
cause or default; and
B. Where the applicant is unable to certify to any
of the statements in this certification, he or she
shall attach an explanation to this application.

3. DRUG-FREE WORKPLACE (GRANTEES

OTHER THAN INDIVIDUALS)
As required by the Drug-Free Workplace Act of
1988, and implemented at 45 CFR Part 76,
Subpart F, for grantees, as defined at 45 CFR Part
76, Sections 76.605 and 76.610-
A. The applicant certifies that it will or will continue to provide a drug-free workplace by:
(a) Publishing a statement notifying employees that
the unlawful manufacture, distribution, dispensing,
possession, or use of a controlled substance is
prohibited in the grantee's workplace and
specifying the actions that will be taken against
employees for violation of such prohibition.
(b) Establishing an on-going drug-free awareness
program to inform employees about-
(1) The danger of drug abuse in the workplace;
(2) The grantee's policy of maintaining a drugfree workplace; (3) Any available drug counseling, rehabilitation,
and employee assistance programs; and
(4) The penalties that may be imposed upon
employees for drug abuse violations occurring in
the workplace;
(c) Making it a requirement that each employee to
be engaged in performance of the grant be given a
copy of the statement required by paragraph (a);
(d) Notifying the employee in the statement required
by paragraph (a) that, as a condition of
employment under the grant, the employee will -
(1) Abide by the terms of the statement; and
(2) Notify the employer in writing of his or her
conviction for a violation;
2 (e) Notifying the agency, in writing, within 10
calendar days after receiving notice under
subparagraph (d) (2) from an employee or
otherwise receiving actual notice of such
conviction. Employers of convicted employees
must provide notice, including position title,
to: Director, Grants, and Contracts Service, U.S.

Department of Education, 400 Maryland Avenue,
S.W., (Room 3124, GSA Regional Office
Building No. 3), Washington, DC 20202-4571.

Notice shall include the identification number(s)
of each affected grant;
(f) Taking one of the following actions, within 30
calendar days of receiving notice under
subparagraph (d) (2), with respect to any
employee who is so convicted:
(1) Taking appropriate personnel action against
such an employee, up to and includingtermination
consistent with the requirements of the
Rehabilitation Act of 1973, as amended; or
(2) Requiring such employee to participate
satisfactorily in a drug abuse assistance or
rehabilitation program approved for such purposes
by a federal, state, or local health, law
enforcement, or other appropriate agency:
(g) Making a good faith effort to continue to
maintain a drug-free workplace through
implementation of paragraphs (a), (b), (c), (d),(e),
and (f).

B. The grantee shall insert in the space provided
below the
site(s) for the performance of work done in
connection with the specific grant:

Place of Performance (Street address, city,
county, state, zip code)
Pickleweed Preschool
40 Canal Street
San Rafael CA 94901
D Check if there are workplaces on
file that are not identified here.

DRUG-FREE WORKPLACE
(GRANTEES WHO ARE INDIVIDUALS)
As required by the Drug-Free Workplace Act of
1988, and implemented at 45 CFR Part 76,
Subpart F, for grantees, as defined at 45 CFR
Part 76, Sections 76.605 and 76.610-
a As a condition of the grant, I certify that I will
not engage in the unlawful manufacture,
distribution, dispensing, possession, or use of a
controlled substance in conducting any activity
with the grant, and
b. If convicted of a criminal drug offense
resulting from a violation occurring during the
conduct of any grant activity, I will report the
conviction, in writing, within 10 calendar days of
the conviction, to: Director, Grants and contracts
Service, U.S. department of Education, 400
Maryland Avenue, S.W. (Room 3124, GSA
Regional Office Building No. 3) Washington,
DC 20202-4571. Notice shall include the
identification numbers(s) of each affected grant.

ENVIRONMENTAL TOBACCO SMOKE ACT
As required by the Pro-Children Act of 1994,
(also known as Environmental Tobacco Smoke),
and implemented at Public Law 103-277, Part C
requires that:

The applicant certifies that smoking is not
permitted in any portion of any indoor facility
owned or leased or contracted and used
routinely or regularly for the provision of health
care services, day care, and education to
children under the age of 18. Failure to comply
with the provisions of this law may result in the
imposition of a civil monetary penalty of up to
$1,000 per day. (The law does not apply to
children's services provided in private residence,
facilities funded solely by Medicare or Medicaid
funds, and portions of facilities used for inpatient drug and alcohol treatment.) As the duly authorized representative of the applicant, I hereby certify that the applicant will comply with the above certifications.

FISCAL YEAR 2024-25

CONTRACTOR NAME VENDOR ID NUMBER
City of San Rafael 2193

PRINTED NAME AND TITLE OF AUTHORIZED REPRESENTATIVE
Kelly Albrecht, Senior Recreation Supervisor

SIGNATURE
3 DATE
10/24/23
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting: _______________________
Disposition: ___________________________
Agenda Item No: 4.g
Meeting Date: November 20, 2023

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Police Department
Prepared by: Alex Holm, Police Lieutenant City Manager Approval: ______________ TOPIC: CALIFORNIA DEPARTMENT OF PARKS AND RECREATION DIVISION OF BOATING

AND WATERWAYS GRANT APPROVAL
SUBJECT: RESOLUTION APPROVING THE ACCEPTANCE AND APPROPRIATION OF

CALIFORNIA DEPARTMENT OF PARKS AND RECREATION DIVISION OF BOATING AND WATERWAYS GRANT FUNDS IN THE AMOUNT OF $76,099 FOR THE “BOATING SAFETY AND ENFORCEMENT EQUIPMENT” GRANT, AND

AUTHORIZING THE CITY MANAGER TO EXECUTE A GRANT AGREEMENT AND

ANY OTHER DOCUMENTS RELATED TO THE GRANT
RECOMMENDATION:

Adopt the resolution accepting $76,099 from the California Department of Parks and Recreation Division of Boating and Waterways, Boating Safety and Enforcement Equipment (BSEE) grant funds, and authorizing the City Manager to execute the grant agreement.

BACKGROUND:

The City of San Rafael and the San Rafael Police Department (SRPD) recognize that the San Rafael Bay, San Rafael Creek, and San Pablo Bay are vital to our community and those who use and visit these areas for recreation and commercial activity. To ensure the safe use of these waterways, the SRPD Marine Unit regularly patrols these waters to conduct enforcement and respond to emergency calls for service. The Marine Unit utilizes the “Mission City” and “Rescue 22” patrol boats.

The SRPD Marine Unit provides emergency medical care and rescue assistance to vessels and people in distress, enforces applicable municipal, state, and federal laws, and responds to fire, medical, and crime incidents. The Marine Unit performs various duties prescribed by California boating laws emphasizing boating safety and ensures the vessels and equipment are maintained.

The SRPD has continuously operated the Marine Unit with at least one police patrol boat available during service hours and on-call after hours. The Marine Unit operates within the nearly six square miles of water that encompass the San Rafael Bay and San Rafael Creek. In addition, the Marine Unit patrols large portions of San Pablo Bay, which is connected to the San Rafael Bay and Creek.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
The Marine Unit responds to numerous calls for assistance that extend within and outside city-limit jurisdiction. These calls for assistance come from boaters, swimmers, and other recreators on the water.

Additionally, the Marine Unit receives mutual aid requests through the United States Coast Guard (USCG), Marin County Sheriff’s Communications Center, California Highway Patrol’s Golden Gate Division Dispatch, and Contra Costa County Dispatch. Some of these calls for assistance have taken the Marine Unit as far south as the Golden Gate Bridge and San Francisco Bay Bridge and as far north as the Petaluma River and Carquinez Straits. Our Marine Unit prides itself in being an essential partner with neighboring jurisdictions when rapid and skilled responses are required.

Responses range from boats running aground, capsizing, sinking, and taking on water, fires, open water swimmers in distress, paddle boarders in distress, storm exposures, boaters lost in the fog, suicides from the Richmond/San Rafael Bridge (Interstate 580), drownings, missing persons, search and rescue missions, overdue boats/craft/person searches, body recovery, hazmat, environmental cleanup, boating enforcement saturation patrols, multi-jurisdiction enforcement operations, suspect apprehension missions, SWAT missions, and many others.

To be at constant readiness, and to handle the types of calls and incidents described above, the police patrol boats require ongoing regular maintenance. During recent routine maintenance and service, it was identified that the two patrol boats need new navigation, RADAR, radio directional finder (RDF), and radio equipment. SRPD has completed other required routine and unexpected maintenance projects during the annual fiscal period. Additional funding sources are needed to replace outdated navigation and radio equipment.

ANALYSIS:

At the end of 2022, the “Mission City” and “Rescue 22” patrol boats underwent an operational assessment and inspection to determine their viability and operational needs. During the assessment, it was determined that “Mission City” and “Rescue 22” patrol boats are due for a significant overhaul of outdated electronic navigation, RADAR, radio directional finder (RDF), as well as radio equipment which they use to safely operate and use for a variety of calls for assistance, requests for help, emergencies, and search and rescue missions which occur both day and night and in ideal and inclement weather conditions.

Much of the navigational equipment is twenty years old, and replacement parts can no longer be acquired.

Continued navigational equipment operation requires replacing RADAR, RDF, and radio equipment.

The SRPD applied for and received tentative approval for a Boating Safety and Enforcement Equipment (BSEE) Grant from the California Department of Parks and Recreation Division of Boating and Waterways in the amount of $76,099. Acceptance of the grant will allow the SRPD to upgrade the various identified electronic equipment on the “Mission City” and “Rescue 22” police patrol boats. If this resolution is adopted, the City will use BSEE funds to replace the systems noted below. Equipment estimates are as follows:
1) RADAR Systems: $18,303
2) Electronic Navigation Systems: $29,412
3) VHF Radios and Radio Direction Finder: $28,384
FISCAL IMPACT:

There is no fiscal impact to the City of San Rafael, as the California Department of Parks and Recreation Division of Boating and Waterway’s Boating Safety and Enforcement Equipment Grant will provide the required funding to replace the identified electronic equipment on the two police patrol boats.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
OPTIONS:

The City Council has the following options to consider on this matter:

1. Adopt the resolution as presented.

2. Adopt the resolution with modifications.

3. Direct staff to return with more information.

4. Take no action.

RECOMMENDED ACTION:

Adopt the resolution accepting $76,099 from the California Department of Parks and Recreation Division of Boating and Waterways, Boating Safety and Enforcement Equipment (BSEE) grant funds, and authorizing the City Manager to execute the grant agreement.

ATTACHMENTS:

1. Resolution

2. Fiscal Year 2023/2024 California Department of Parks and Recreation Division of Boating and Waterway’s Boating Safety and Enforcement Equipment (BSEE) Grant.

RESOLUTION NO.

RESOLUTION APPROVING THE ACCEPTANCE AND APPROPRIATION OF

CALIFORNIA DEPARTMENT OF PARKS AND RECREATION DIVISION OF BOATING AND WATERWAYS GRANT FUNDS IN THE AMOUNT OF $76,099 FOR THE “BOATING SAFETY AND ENFORCEMENT EQUIPMENT” GRANT,

AND AUTHORIZING THE CITY MANAGER TO EXECUTE A GRANT
AGREEMENT AND ANY OTHER DOCUMENTS RELATED TO THE GRANT.

Whereas, the State of California, Department of Parks and Recreation Division of Boating and Waterways has tentatively approved a grant to the City of San Rafael in the amount of $76,099; and
Whereas, this grant money may be spent to pay for Police Department Marine Unit equipment including RADAR systems, navigation/GPS/Chart Plot equipment, VHF radios and radio direction finder; and
NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of San Rafael approves the acceptance and appropriation of $76,099 in California Department of Parks and Recreation Division of Boating and Waterways funds for the Boating Safety and Enforcement Equipment grant with funds to be appropriated in a Grant Fund; and authorizes the City Manager to execute a Grant Agreement and any other documents related to the Grant.

I, Lindsay Lara, City Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council held on the 20th day of November 2023 by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

Lindsay Lara, City Clerk
State of California – Natural Resources Agency

DEPARTMENT OF PARKS AND RECREATION

DIVISION OF BOATING AND WATERWAYS

GRANT AGREEMENT
GRANTEE: City of San Rafael
GRANT TITLE: Boating Safety and Enforcement Equipment Grant - FY 2023 / 24 GRANT NUMBER: C23L0605
GRANT AMOUNT: $76,099.00
GRANT AGREEMENT TERM: _________________ through September 30, 2031 GRANT PERFORMANCE PERIOD: _________________ through September 30, 2024.

The Grantee agrees to the terms and conditions of this contract, hereinafter referred to as Agreement, and the State of California, acting through its Director of the Department of Parks and Recreation, and pursuant to the State of California agrees to fund the total state grant amount indicated below. The GRANTEE agrees to complete the SCOPE OF WORK as defined in the Agreement.

The following are attached and made a part of and incorporated into this grant agreement: Exhibit A Grant Terms and Conditions, Exhibit B General Terms and Conditions, Exhibit C Contractor Certification Clauses, Exhibit D Doing Business with California, Exhibit E Darfur Contracting Act, Exhibit F Recycled Content Certification, and Exhibit G Scope of Work/Budget (Application).

This grant award is funded by the U.S. Coast Guard from the Sport Fish Restoration and Boating Trust Fund CFDA 97.012, administered by California Department of Parks and Recreation, Division of Boating and Waterways. The Federal FY 22 award, 70Z02323M0000497 to California; $6,500,733.

This is not a research and development grant.

Grantee: City of San Rafael
Address: 1400 Fifth Avenue,
San Rafael, CA 94901
Name of
Authorized
Representative:

Title of Authorized
Representative:

Authorized Signature:

Date:

Agency: Department of Parks and Recreation
Division of Boating and Waterways
ATTN: Johanna Naughton
Address: 4940 Lang Ave., Dock H,
Administration, Floor 12
McClellan, CA 95652
Authorized Signature:

Printed Name: Keren Dill
Title: Staff Services Manager II
Date:

Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 1 of 58

CERTIFICATE OF FUNDING
(FOR STATE USE ONLY)
GRANTEE: City of San Rafael
GRANT AGREEMENT TERM : through September 30, 2031
GRANT TITLE: BOATING SAFETY EQUIPMENT AND ENFORCEMENT GRANT PROGRAM GRANT NUMBER: C23L0605
PURCHASE ORDER NUMBER:

NO
C23L0605

AMENDMENT NO SUPPLIER ID
0000007131

PROJECT NO
379065600200
AMOUNT

ENCUMBERED BY

THIS DOCUMENT
$76,099.00

FUND DESCRIPTION
Federal Trust Fund #0890

AGENCY BILLING CODE NO
053706

REPORTING

STRUCTURE
37900706
ITEM
3790-101-0890

CHAPTER
12 STATUTE
23 FISCAL YEAR
2023/24

BUSINESS UNIT
3790

ACCOUNT
5432000

ALT ACCOUNT ACTIVITY CODE
68784
Name of Project Representative:

Phone:

Email:

Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 2 of 58

BOATING SAFETY
AND

ENFORCEMENT EQUIPMENT

GRANT AGREEMENT
City of San Rafael
C23L0605
State of California
Department of Parks and Recreation
Division of Boating and Waterways
Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 3 of 58
INDEX

DESCRIPTION PAGE

EXHIBIT A GRANT TERMS AND CONDITIONS

1. DEFINITIONS ................................................................................................................. 5

2. GENERAL ...................................................................................................................... 5

3. PAYMENT PROVISIONS AND DISBURSEMENT OF GRANT ....................................... 6

4.EQUIPMENT/PATROL BOAT OWNERSHIP ................................................................... 7

5. OPERATION AND MAINTENANCE OF EQUIPMENT/PATROL BOAT .......................... 7

6. TERMINATION OF GRANT AGREEMENT ..................................................................... 8

7. REVERSION OF EQUIPMENT/PATROL BOAT TO DEPARTMENT .............................. 8

8. LIABILITY ..........;.............................................................................................................. 9

9. WAIVER OF RIGHTS ..................................................................................................... 9

10. REMEDIES NOT EXCLUSIVE ........................................................................................ 9

11. OPINIONS AND DETERMINATIONS .............................................................................. 9

12. PROCUREMENT PROCEDURES ................................................................................... 9

13. DISPOSITION OF EQUIPMENT/PATROL BOAT ............................................................ 10

14. DISPOSITION OF PROCEEDS FROM SALE OF EQUIPMENT INSTALLED AND PARTIALLY FUNDED EQUIPMENT ..................................................................... 10 15. FEDERAL TERMS, CONDITIONS AND REGULATIONS ................................................. 10

16. COMPLIANCE WITH LAW, REGULATION AND POLICY ................................................. 11 EXHIBIT B GENERAL TERMS AND CONDITIONS ............................................................ 15 EXHIBIT C CONTRACTOR CERTIFICATION CLAUSES .................................................. 19 EXHIBIT D DOING BUSINESS WITH THE STATE OF CALIFORNIA ................................ 21 EXHIBIT E DARFUR CONTRACTING ACT ........................................................................ 23 EXHIBIT F RECYCLED CONTENT CERTIFICATION ........................................................ 25 EXHIBIT G SCOPE OF WORK/BUDGET (APPLICATION) ................................................ 26 Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 4 of 58

EXHIBIT A

GRANT TERMS AND CONDITIONS

1. DEFINITIONS
A. "DEPARTMENT": The Department of Parks and Recreation, Division of Boating and Waterways (DBW).

B. "EFFECTIVE DATE": The date the GRANT AGREEMENT face page is signed by the DEPARTMENT’.

C. "EQUIPMENT": Boating–specific equipment or other equipment used to implement or conduct boating safety and boating law enforcement activities.

D. "GRANT": Funds provided by the DEPARTMENT, from the federal Recreational Boating Safety (RBS) Grant, to the GRANTEE to finance all or part of the PURCHASE COSTS for items that assist in meeting the purposes of the Boating Safety Equipment and Enforcement (BSEE) and RBS programs.

E. "GRANT AGREEMENT": The contract to which these grant terms and conditions are attached.

F. "GRANT AGREEMENT TERM": The timeframe for which the GRANTEE must comply with the obligations and responsibilities identified in this GRANT AGREEMENT.

G. "GRANT PERFORMANCE PERIOD": The timeframe specified on the grant agreement face page which includes the agreement start date (effective date) and final date for purchasing and receiving equipment. .

H. "GRANTEE": The person or entity identified as the Grantee on the face page of the Agreement.

I. "GRANTEE FUNDS": Any funds provided by the GRANTEE for the purchase or operation and maintenance of the EQUIPMENT/PATROL BOAT.

J. "PATROL BOAT": A DEPARTMENT approved, registered vessel purchased for use in boating safety and law enforcement activities.

K. "PURCHASE COSTS": Those costs incurred by the GRANTEE in purchasing the EQUIPMENT/PATROL BOAT; such PURCHASE COSTS shall not include any operation or maintenance costs, nor any costs incurred prior to the EFFECTIVE DATE of this GRANT AGREEMENT, nor any indirect or overhead costs claimed by the GRANTEE.

2. GENERAL
A. The funding available in this GRANT shall not exceed the amount specified in this GRANT AGREEMENT and shall be used for the purchase of EQUIPMENT and/or PATROL BOAT for Boating Safety and Enforcement activities in accordance with all Exhibits incorporated and referenced herein.

B. GRANT AGREEMENT TERM shall begin on the GRANT PERFORMANCE PERIOD start date and shall continue for the following lengths of time after granted items are received by the GRANTEE unless terminated in accordance with the terms and conditions of this GRANT AGREEMENT: fifteen [15] years for PATROL BOATS and all registered vessels and seven (7) years for EQUIPMENT.

Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 5 of 58
C. No amendment of the terms of this GRANT AGREEMENT shall be valid unless made in writing and signed by an authorized representative or designee of the DEPARTMENT and the GRANTEE.

D. No variation of the terms of this GRANT AGREEMENT shall be valid unless made in writing and signed by an authorized representative or designee of the DEPARTMENT.

E. Oral understandings are not binding on any of the parties.

F. EQUIPMENT/PATROL BOAT purchase shall be completed prior to the end of the PERFORMANCE PERIOD.

G. GRANTEE hereby certifies that the obligations created by this GRANT AGREEMENT do not violate the provisions of Sections 1090 to 1096 of the Government Code.

H. This GRANT AGREEMENT is not fully executed until signed by the DEPARTMENT.

Grantee may not make any purchases until GRANT AGREEMENT is fully executed and equipment specifications and cost estimates have been approved in writing by the DEPARTMENT.

I. GRANTEE hereby certifies that during the performance of this GRANT AGREEMENT, GRANTEE and any sub-grantees shall fully comply with State regulations regarding the implementation of Disabled Veteran business participation goals as set forth in Disabled Veteran Business Enterprise Participation Requirements, Recycling Certification and, Contractor Certification Clauses.

J. GRANTEE shall continue with the responsibilities of this GRANT AGREEMENT during any dispute.

K. Failure by the GRANTEE to comply with the terms of any Department of Parks and Recreation grant agreement may jeopardize the grantee's ability to be awarded funding in future grant opportunities offered by the Department of Parks and Recreation.

L. Subvention agencies: GRANTEES participating in the DEPARTMENT’S Subvention Financial Aid Program acknowledge and certify that failure to fully spend subvention funding in the prior fiscal year will negatively impact the DEPARTMENT’S consideration of future grant applications from your agency for up to three (3) years.

M. Annual Reports: Grantee shall submit an Annual Report beginning August 31st, 2024 and each and every year by August 31 for the term of this agreement (15 years for registered vessels or 7 years for any equipment valued at $5,000 or less). Reports shall include maintenance records, number of hours BSEE equipment is used, additional equipment or modifications of any equipment or patrol boats, any loss or damage to equipment or patrol boat and a summary of boating accident reports submitted during the reporting year. Failure to submit annual reports by the deadline may jeopardize future funding.

N. GRANTEE is required to participate in at least one (1) outreach event per year, such as Operation Dry Water, to conduct boating under the influence (BUI) check-points and educate boaters on the importance of boating sober. Grantee must identify what event it has participated in in its annual report.

O. GRANTEE shall submit accident reports to DBW within 30 days of responding to a boating accident in waterbodies within GRANTEE’S area of responsibility. Failure to do so may jeopardize future DBW and Department funding for up to three (3) years.

P. GRANTEE, representatives, agents or employees shall not act or represent Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 6 of 58
themselves as officers, employees or agents of the DEPARTMENT in the performance of this GRANT AGREEMENT.

3. PAYMENT PROVISIONS AND DISBURSEMENT OF GRANT
A. Reimbursements must be requested on GRANTEE’S official agency letterhead and include:
• Amount requested for reimbursement
• GRANT AGREEMENT number
• Statement of acceptance of the vessel or equipment and certification of meeting DBW’s approved specifications
• Certification that you complied with all procurement procedures outlined this agreement;
• Name of payee and address where payment is to be sent • Location of performance (where the equipment will be used) • Signature of the person authorized in the resolution or minute order to execute the agreement
• Copies of brand name, description, make, model and serial number • Proof of payment for purchase including invoices showing cost and sales tax • For all motorized vessels: Department of Motor Vehicle (DMV) proof showing the DEPARTMENT as the legal owner and GRANTEE as the registered owner
• Certificate of Origin for all PATROL BOATS and trailers.

B. GRANTEE shall request grant reimbursements no later than 60 days from GRANT PERFORMANCE PERIOD end date by mailing one (1) complete reimbursement request package to:

For FedEX, UPS and other overnight mail:

Division of Boating and Waterways
Attn: BSEE Grant Manager
4940 Lang Avenue Dock H
McClellan, CA 95652
For United States Post Office (USPS) mail:

Division of Boating and Waterways
Attn: BSEE Grant Manager
P.O. Box 942896, Administration, Floor 12
Sacramento, CA 94296
Or by emailing to the DBW assigned grant manager.

C. No funds shall be reimbursed for purchases made prior to the EFFECTIVE DATE of this agreement.

D. The DEPARTMENT shall have no obligation to disburse the GRANT unless and until the GRANTEE obtains the prior written approval by the DEPARTMENT of the type and cost of the EQUIPMENT/PATROL BOAT.

E. The DEPARTMENT will disperse the grant to the GRANTEE in arrears for the approved PURCHASE COST of the EQUIPMENT/PATROL BOAT
F. The DEPARTMENT may withhold any grant disbursement if the GRANTEE fails to comply with any of the provisions of this GRANT AGREEMENT.

4. EQUIPMENT/PATROL BOAT OWNERSHIP
Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 7 of 58
The DEPARTMENT shall be the legal owner of the EQUIPMENT/PATROL BOAT. The GRANTEE shall be the registered owner of PATROL BOAT or any other registered vessels purchased with GRANT FUNDS. The GRANTEE shall not assign, mortgage, hypothecate or transfer its interest in the EQUIPMENT/PATROL BOAT without the prior written approval of the DEPARTMENT.

5. OPERATION AND MAINTENANCE OF EQUIPMENT/PATROL BOAT
A. The GRANTEE shall use the EQUIPMENT/PATROL BOAT for the purpose of promoting recreational boating safety and boating law enforcement and shall keep the EQUIPMENT/PATROL BOAT available for search and rescue operations and other projects or programs supported by the federal government provided that such use will not interfere with the program for which it was acquired (CFR 200.313.c.2) B. The GRANTEE shall be responsible for the costs of operating and maintaining the PATROL BOAT/EQUIPMENT for the GRANT AGREEMENT TERM; the DEPARTMENT shall not be liable for such costs.

C. The GRANTEE shall maintain the EQUIPMENT/PATROL BOAT in good repair according to all manufacturer recommendations and shall make all repairs necessary to keep EQUIPMENT/PATROL BOAT functioning through the term of the GRANT AGREEMENT.

D. The GRANTEE, at its own expense, agrees to repair or replace the EQUIPMENT/PATROL BOAT if it is damaged, destroyed or rendered useless prior to the end of the GRANT AGREEMENT TERM.

E. GRANTEE shall submit maintenance records to the DEPARTMENT with each annual report.

F. The GRANTEE shall seek DEPARTMENT approval for the purchase and installation of additional equipment or modifications to any registered vessel purchased with grant funds. Complete and accurate records of all such modifications shall be reported to the DEPARTMENT in the GRANTEE’S annual report and made available to the DEPARTMENT or authorized representative for inspection upon request.

G. Each GRANTEE shall report to the DEPARTMENT loss or damage to any equipment purchased with grant funds within 30 days of occurrence.

H. Each GRANTEE shall ensure that any PATROL BOAT/EQUIPMENT purchased with grant funds is operated solely by qualified Boating Safety and Boating Law Enforcement Officers. Operators must fully comply with GRANTEE’S documented training and certification requirements to be deemed qualified, which shall include, at a minimum, receipt of a California Boater Card.

I. GRANTEE shall obtain prior DBW approval before submitting requests for modification or survey of a grant-funded PATROL BOAT/EQUIPMENT to California Department of General Services (DGS).

6. TERMINATION OF GRANT AGREEMENT
A. Either DEPARTMENT or GRANTEE may unilaterally terminate this GRANT AGREEMENT if a material breach of the GRANT AGREEMENT is made by the other; such termination shall become effective NINETY [90] DAYS following the date of receipt by either the DEPARTMENT or the GRANTEE of a written notice of termination from the party initiating the termination.

B. The GRANTEE may terminate this GRANT AGREEMENT if the GRANTEE becomes financially or legally unable to comply with the terms and conditions of this GRANT AGREEMENT; such termination shall become effective NINETY [90] DAYS following Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 8 of 58
receipt by the DEPARTMENT of a written notice of termination from the GRANTEE.

C. The DEPARTMENT may terminate this GRANT AGREEMENT immediately and be relieved of any payments should the legislative body of the GRANTEE fail to appropriate GRANTEE FUNDS for purchase costs, if required, or if the GRANTEE fails to perform the requirements of this Agreement at the time and in the manner herein provided; such termination to become effective upon receipt by the GRANTEE of a written termination notice from the DEPARTMENT.

D. The DEPARTMENT has the option to void the GRANT AGREEMENT with 30 days’ notice in the event grant funds are not appropriated or amend the GRANT AGREEMENT to reflect any unexpected reduction of grant funds.

7. REVERSION OF EQUIPMENT/PATROL BOAT TO DEPARTMENT
If EQUIPMENT/PATROL BOAT is no longer needed or this GRANT AGREEMENT is terminated prior to the expiration of the term of the GRANT AGREEMENT:

A. The GRANTEE shall deliver, at no cost to the State, the fully functioning EQUIPMENT/PATROL BOAT to the DEPARTMENT for reassignment and shall execute any document(s) necessary to effect appropriate changes in pertinent public records; the reversion of registered title is hereby declared to be in addition to, and not in lieu of, any other remedies for breach of this GRANT AGREEMENT which may be available to the DEPARTMENT.

B. The GRANTEE shall be prohibited from receiving DEPARTMENT BSEE Grants for a period of three (3) years if EQUIPMENT/PATROL BOAT is not fully functional at time of termination.

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8. LIABILITY
A. The GRANTEE waives all claims and recourse against the DEPARTMENT, including the right to contribution for any loss or damage arising from, growing out of or in any way connected with or incident to this GRANT AGREEMENT.

B. GRANTEE agrees to indemnify, defend and save harmless the State, its officers, agents and employees from any and all claims and losses accruing or resulting to any and all contractors, subcontractors, suppliers, laborers, and any other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this GRANT AGREEMENT, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by GRANTEE in the performance of this Agreement. GRANTEE warrants, represents and agrees that it and its subgrantees, subcontractors, employees and representatives shall at all times comply with all applicable State contracting laws, codes, rules and regulations in the performance of this GRANT AGREEMENT.

C. If the DEPARTMENT is named as a co-defendant, the GRANTEE shall notify the DEPARTMENT and represent it unless the DEPARTMENT elects to represent itself. If the DEPARTMENT undertakes its own defense, it shall bear its own litigation costs, expenses and attorney's fees.

D. Insurance Coverage Requirements
(1) Vessel Insurance: GRANTEE shall maintain the necessary insurance for the full replacement value of vessels and equipment purchased with GRANT including fire, collision or sinking and all costs associated with removal and demolition. (2) Watercraft Liability: GRANTEE shall maintain watercraft liability with limits not less than $1,000,000 combined single limit per accident. Such insurance shall cover liability arising out of the maintenance and use of watercraft.
(3) The policy must include:
"The State of California, its officers, agents, employees and servants as additional insureds, but only with respect to vessels and equipment purchased with this grant.”

9. WAIVER OF RIGHTS
It is the intention of the parties hereto that from time to time either party may waive certain of its rights under this GRANT AGREEMENT. Any waiver at this time by either party hereto of its rights with respect to a default or any other matter arising in connection with this GRANT AGREEMENT shall not be deemed to be a waiver with respect to any other default or matter.

10. REMEDIES NOT EXCLUSIVE
The use by either the DEPARTMENT or GRANTEE of any remedy specified in this GRANT AGREEMENT for the enforcement of this GRANT AGREEMENT is not exclusive and shall not deprive the party using such remedy of, or limit the application of, any other remedy provided by law.

11. OPINIONS AND DETERMINATIONS
Where the terms of GRANT AGREEMENT provide for action to be based upon the opinion, judgment, approval, review, or determination of either the DEPARTMENT or GRANTEE, such terms are not intended to be and shall never be construed as permitting such opinion, judgment, approval, review, or determination to be arbitrary, capricious, or unreasonable.

12. PROCUREMENT PROCEDURES
A. The GRANTEE must use procurement procedures that reflect applicable State and local public procurement laws and regulations, provided that the procedures conform Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 10 of 58
to applicable Federal law and the standards identified in 2 CFR §200.318.

There shall be no changes, corrections, modifications or exceptions to DEPARTMENT approved specifications without advance written approval by the DEPARTMENT. Procurement procedures used by the GRANTEE must conform to State law and regulations regarding Disabled Veteran Business Enterprise Participation Requirements, Recycling Certification, AND CONTRACTORS CERTIFICATION CLAUSES. The GRANTEE is responsible, in its sole discretion, for the review of all bids for compliance.

B. Procurement for boats and other registered vessels must be conducted using Invitation for Bid and must adhere to the specific procurement standards identified by GRANTEE’S governing board regarding advertising, adequate purchase descriptions, sealed bids, and public openings.

C. EQUIPMENT AND ELECTRONICS PROCUREMENT PROCEDURES:

Grantee must obtain at least three (3) bids or rate quotations from qualified sources for each item that has a unit cost of $10,000 or more. The bids may be obtained over the phone but must be verified with written documentation from the vendor, and must include the make, model, size, name of vendor, date, and cost of item.

D. DEPARTMENT REVIEW
(1) GRANTEE must submit to the DEPARTMENT proposed technical specifications of PATROL BOATS and other registered vessels for review and approval prior to solicitation of bids.
(2) Grantees and sub-grantees must make available on request to the DEPARTMENT procurement documents, such as requests for proposals or invitations for bids, independent cost estimates, etc. and must retain such documents for four years after equipment acquisition for auditing purposes.

13. DISPOSITION OF EQUIPMENT/PATROL BOAT
In accordance with 2 CFR 200.313 e.1 and 2, upon completion of the GRANT AGREEMENT TERM, GRANTEE may continue to use EQUIPMENT/PATROL BOAT if needed. If EQUIPMENT/PATROL BOAT is no longer needed, GRANTEE must deliver EQUIPMENT/PATROL BOAT to the California Department of General Services (DGS), Office of Fleet and Asset Management (OFAM) for sale at auction. Prior to delivering EQUIPMENT/PATROL BOAT to DGS, GRANTEE must receive approval from the DEPARTMENT to request that DGS complete an OFAM6 Form. Once DGS has completed the OFAM6, GRANTEE will submit the OFAM6 to the DEPARTMENT with an official letter requesting to surrender the vessel. The DEPARTMENT will provide the GRANTEE with an OFAM27 form and instructions for delivering the EQUIPMENT/PATROL BOAT to auction via email. GRANTEE will deliver the EQUIPMENT/PATROL BOAT and OFAM27 to the auction as instructed by the DEPARTMENT. GRANTEE shall have the OFAM27 signed at the auction and shall return the signed OFAM27 to the DEPARTMENT.

14. DISPOSITION OF PROCEEDS FROM SALE OF EQUIPMENT INSTALLED AND

PARTIALLY FUNDED EQUIPMENT
If the GRANTEE has contributed funding in excess of the GRANT to the PURCHASE COSTS of the EQUIPMENT/PATROL BOAT, and in the event of a sale of the EQUIPMENT/PATROL BOAT after the expiration or termination of this GRANT AGREEMENT or the reversion of the EQUIPMENT/PATROL BOAT to the DEPARTMENT, then the proceeds of the EQUIPMENT/PATROL BOAT sale shall be distributed between the DEPARTMENT and the Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 11 of 58
GRANTEE in proportion to their respective contributions of the PURCHASE COSTS, e.g.: if the PURCHASE COSTS totaled $100,000 and the GRANT contribution amounts to $60,000, then the DEPARTMENT would receive 60 percent of the EQUIPMENT/PATROL BOAT sale proceeds and the GRANTEE would receive 40 percent.

15. FEDERAL TERMS, CONDITIONS AND REGULATIONS
This GRANT is funded by the Federal Recreational Boating Safety (RBS) Grant and as such, GRANTEE shall comply with all the governing regulations, namely 2 CFR 200 - the most applicable of which have been included here for reference. For clarity, “Non-federal entity” shall be understood to be “DEPARTMENT” and “Award” shall be understood to be “GRANT”.

GRANTEES are subject and must adhere to the provisions set forth in the 2020 DHS Standard Terms and Conditions which are available online at:
https://www.dhs.gov/sites/default/files/publications/fy20_dhs_standard_terms_and_condition s_v10.1_dated_12-31-2019.pdf and made a part of this agreement by reference.

GRANTEES are subject to and must adhere to the regulations set forth in the 2 CFR 200 available online at: https://www.govinfo.gov/content/pkg/CFR-2014-title2-vol1/pdf/CFR-2014- title2-vol1-part200.pdf and made a part of this agreement by reference.

16. COMPLIANCE WITH LAW, REGULATION AND POLICY
It is understood and agreed that the Grantee shall comply with all applicable laws and regulations of the State of California, U.S. Coast Guard Code of Federal Regulations: 2 CFR identified in section §§ 200.318 General Procurement standards through 200.326 Contract provisions, 50 CFR 80 and 50 CFR 85, Equal Opportunity (41 CFR 60-1.4(b)), Davis-Bacon Act, as amended (40 U.S.C. 3141-3148), Copeland “Anti-Kickback” Act (40 U.S.C. 3145), Contract Work Hours and Safety Standards Act (40 U.S.C. 3701-3708), “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements” (37 CFR Part 401), Clean Air Act (42 U.S.C. 7401- 7671q.), and the Federal Water Pollution Control Act as amended (33 U. S.C. 1251-1387), Debarment and Suspension (Executive Orders 12549 and 12689), Byrd Anti-Lobbying amendment (31 U.S.C. 1352) and all policies of DBW.

A. MANDATORY DISCLOSURES
The non-Federal entity or applicant for a Federal award must disclose, in a timely manner, in writing to the Federal awarding agency or pass-through entity all violations of Federal criminal law involving fraud, bribery, or gratuity violations potentially affecting the Federal award. Failure to make required disclosures can result in any of the remedies described in §200.338 remedies for noncompliance, including suspension or debarment. (See also 2 CFR part 180 and 31 U.S.C. 3321).

B. ENHANCEMENT OF RECIPIENT AND SUBRECIPIENT EMPLOYEE

WHISTLEBLOWER PROTECTION
This award, related subawards, and related contracts over the simplified acquisition threshold and all employees working on this award, related subawards, and related contracts over the simplified acquisition threshold are subject to the whistleblower rights and remedies established at 41 USC 4712.

Recipients, their subrecipients, and their contractors awarded contracts over the simplified acquisition threshold related to this award, shall inform their employees in writing, in the predominant language of the workforce, of the employee whistleblower rights and protections under 41 USC 4712.

The recipient shall insert this clause, including this paragraph, in all subawards and in Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 12 of 58
contracts over the simplified acquisition threshold related to this award.

C. EQUAL OPPORTUNITY CLAUSE
During the performance of this grant, the grantee agrees to sections i-vii below:
i. The grantee will not discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation, gender identity, or national origin. The grantee will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, sexual orientation, gender identity, or national origin. Such action shall include, but not be limited to the following: Employment, upgrading, demotion, or transfer, recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The grantee agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the granting officer setting forth the provisions of this nondiscrimination clause. ii. The grantee will, in all solicitations or advertisements for employees placed by or on behalf of the grantee, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, or national origin. iii. The grantee will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided by the agency granting officer, advising the labor union or workers' representative of the grantee's commitments under section 202 of Executive Order 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.
iv. The grantee will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.
v. The grantee will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the granting agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.
vi. In the event of the grantee's non-compliance with the nondiscrimination clauses of this grant or with any of such rules, regulations, or orders, this grant may be canceled, terminated or suspended in whole or in part and the grantee may be declared ineligible for further Government grants in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law.
vii. The grantee will include the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 13 of 58
Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The grantee will take such action with respect to any subcontract or purchase order as may be directed by the Secretary of Labor as a means of enforcing such provisions including sanctions for noncompliance: Provided, however, that in the event the grantee becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction, the grantee may request the United States to enter into such litigation to protect the interests of the United States.

The applicant further agrees that it will be bound by the above equal opportunity clause with respect to its own employment practices when it participates in federally assisted construction work: Provided, That if the applicant so participating is a State or local government, the above equal opportunity clause is not applicable to any agency, instrumentality or subdivision of such government which does not participate in work on or under the grant.

The applicant agrees that it will assist and cooperate actively with the administering agency and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the equal opportunity clause and the rules, regulations, and relevant orders of the Secretary of Labor, that it will furnish the administering agency and the Secretary of Labor such information as they may require for the supervision of such compliance, and that it will otherwise assist the administering agency in the discharge of the agency's primary responsibility for securing compliance.

The applicant further agrees that it will refrain from entering into any contract or contract modification subject to Executive Order 11246 of September 24, 1965, with a contractor debarred from, or who has not demonstrated eligibility for, Government contracts and federally assisted construction grants or contracts pursuant to the Executive order and will carry out such sanctions and penalties for violation of the equal opportunity clause as may be imposed upon grantees and contractors by the administering agency or the Secretary of Labor pursuant to Part II, Subpart D of the Executive order. In addition, the applicant agrees that if it fails or refuses to comply with these undertakings, the administering agency may take any or all of the following actions: Cancel, terminate, or suspend in whole or in part this grant (contract, loan, insurance, guarantee); refrain from extending any further assistance to the applicant under the program with respect to which the failure or refund occurred until satisfactory assurance of future compliance has been received from such applicant; and refer the case to the Department of Justice for appropriate legal proceedings.

Subcontracts. Each nonexempt prime contractor or subcontractor shall include the equal opportunity clause in each of its nonexempt subcontracts.

I. Incorporation by reference. The equal opportunity clause may be incorporated by reference in all Government contracts and subcontracts, including Government bills of lading, transportation requests, contracts for deposit of Government funds, and contracts for issuing and paying U.S. savings bonds and notes, and such other contracts and subcontracts as the Deputy Assistant Secretary may designate.

II. Incorporation by operation of the order. By operation of the order, the equal opportunity clause shall be considered to be a part of every contract and subcontract required by the order and the regulations in this part to include such a clause whether or not it is physically incorporated in such contracts and whether or not the contract between the agency and the contractor is Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 14 of 58
written.

Adaptation of language. Such necessary changes in language may be made in the equal opportunity clause as shall be appropriate to identify properly the parties and their undertakings.

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EXHIBIT B
General Terms and Conditions (GTC 04/2017)

1. APPROVAL:

This Agreement is of no force or effect until signed by both parties and approved by the Department of General Services, if required. Contractor /GRANTEE may not commence performance until such approval has been obtained.

2. AMENDMENT:

No amendment or variation of the terms of this Agreement shall be valid unless made in writing, signed by the parties and approved as required. No oral understanding or Agreement not incorporated in the Agreement is binding on any of the parties.

3. ASSIGNMENT:

This Agreement is not assignable by the Contractor/GRANTEE, either in whole or in part, without the consent of the State in the form of a formal written amendment.

4. AUDIT:

Contractor/GRANTEE agrees that the awarding department, the Department of General Services, the Bureau of State Audits, or their designated representative shall have the right to review and to copy any records and supporting documentation pertaining to the performance of this Agreement. Contractor/GRANTEE agrees to maintain such records for possible audit for a minimum of three (3) years after final payment, unless a longer period of records retention is stipulated. Contractor//GRANTEE agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. Further, Contractor/GRANTEE agrees to include a similar right of the State to audit records and interview staff in any subcontract related to performance of this Agreement. (Gov. Code §8546.7, Pub. Contract Code §10115 et seq., CCR Title 2, Section 1896).

5. INDEMNIFICATION:

Contractor/GRANTEE agrees to indemnify, defend and save harmless the State, its officers, agents and employees from any and all claims and losses accruing or resulting to any and all GRANTEES, contractors, subcontractors, suppliers, laborers, and any other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Agreement, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by Contractor/GRANTEE in the performance of this Agreement.

6. DISPUTES:

Contractor/GRANTEE shall continue with the responsibilities under this Agreement during any dispute.

7. TERMINATION FOR CAUSE:

The State may terminate this Agreement and be relieved of any payments should the Contractor/GRANTEE fail to perform the requirements of this Agreement at the time and in the manner herein provided. In the event of such termination the State may proceed with the work in any manner deemed proper by the State. All costs to the State shall be deducted from any sum due the Contractor/GRANTEE under this Agreement and the balance, if any, shall be paid to the Contractor/GRANTEE upon demand.

8. INDEPENDENT CONTRACTOR:

Contractor/GRANTEE, and the agents and employees of Contractor/GRANTEE, in the performance of this Agreement, shall act in an independent capacity and not as officers or Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 16 of 58
employees or agents of the State.

9. RECYCLING CERTIFICATION:

The Contractor/GRANTEE shall certify in writing under penalty of perjury, the minimum, if not exact, percentage of post-consumer material as defined in the Public Contract Code Section 12200, in products, materials, goods, or supplies offered or sold to the State regardless of whether the product meets the requirements of Public Contract Code Section 12209. With respect to printer or duplication cartridges that comply with the requirements of Section 12156(e), the certification required by this subdivision shall specify that the cartridges so comply (Pub. Contract Code §12205).

10. NON-DISCRIMINATION CLAUSE:

During the performance of this Agreement, Contractor/GRANTEE and its subcontractors shall not deny the contract’s benefits to any person on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, nor shall they discriminate unlawfully against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. Contractor/GRANTEE shall insure that the evaluation and treatment of employees and applicants for employment are free of such discrimination.

Contractor/GRANTEE and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code §12900 et seq.), the regulations promulgated thereunder (Cal. Code Regs., tit. 2, §11000 et seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code §§11135-11139.5), and the regulations or standards adopted by the awarding state agency to implement such article.

Contractor/GRANTEE shall permit access by representatives of the Department of Fair Employment and Housing and the awarding state agency upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours’ notice, to such of its books, records, accounts, and all other sources of information and its facilities as said Department or Agency shall require to ascertain compliance with this clause.

Contractor/GRANTEE and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. (See Cal. Code Regs., tit. 2, §11105.)
Contractor/GRANTEE shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the Agreement.

11. CERTIFICATION CLAUSES:

The CONTRACTOR CERTIFICATION CLAUSES contained in the document CCC 04/2017 are hereby incorporated by reference and made a part of this Agreement by this reference as if attached hereto.

12. TIMELINESS:

Time is of the essence in this Agreement.

13. COMPENSATION:

The consideration to be paid Contractor/GRANTEE, as provided herein, shall be in compensation for all of Contractor's/GRANTEE’S expenses incurred in the performance hereof, including travel, per diem, and taxes, unless otherwise expressly so provided.

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14. GOVERNING LAW:

This contract is governed by and shall be interpreted in accordance with the laws of the State of California.

15. ANTITRUST CLAIMS:

The Contractor/GRANTEE by signing this agreement hereby certifies that if these services or goods are obtained by means of a competitive bid, the Contractor/GRANTEE shall comply with the requirements of the Government Codes Sections set out below. a. The Government Code Chapter on Antitrust claims contains the following definitions:
1) "Public purchase" means a purchase by means of competitive bids of goods, services, or materials by the State or any of its political subdivisions or public agencies on whose behalf the Attorney General may bring an action pursuant to subdivision (c) of Section 16750 of the Business and Professions Code.
2) "Public purchasing body" means the State or the subdivision or agency making a public purchase. Government Code Section 4550. b. In submitting a bid to a public purchasing body, the bidder offers and agrees that if the bid is accepted, it will assign to the purchasing body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, materials, or services by the bidder for sale to the purchasing body pursuant to the bid.

Such assignment shall be made and become effective at the time the purchasing body tenders final payment to the bidder. Government Code Section 4552. c. If an awarding body or public purchasing body receives, either through judgment or settlement, a monetary recovery for a cause of action assigned under this chapter, the assignor shall be entitled to receive reimbursement for actual legal costs incurred and may, upon demand, recover from the public body any portion of the recovery, including treble damages, attributable to overcharges that were paid by the assignor but were not paid by the public body as part of the bid price, less the expenses incurred in obtaining that portion of the recovery. Government Code Section 4553. d. Upon demand in writing by the assignor, the assignee shall, within one year from such demand, reassign the cause of action assigned under this part if the assignor has been or may have been injured by the violation of law for which the cause of action arose and (a) the assignee has not been injured thereby, or (b) the assignee declines to file a court action for the cause of action. See Government Code Section 4554.

16. CHILD SUPPORT COMPLIANCE ACT:

For any Agreement in excess of $100,000, the contractor/GRANTEE acknowledges in accordance with Public Contract Code 7110, that:
a. The contractor/GRANTEE recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with section 5200) of Part 5 of Division 9 of the Family Code; and b. The contractor/GRANTEE, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department.

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17. UNENFORCEABLE PROVISION:

In the event that any provision of this Agreement is unenforceable or held to be unenforceable, then the parties agree that all other provisions of this Agreement have force and effect and shall not be affected thereby.

18. PRIORITY HIRING CONSIDERATIONS:

If this Contract includes services in excess of $200,000, the Contractor/GRANTEE shall give priority consideration in filling vacancies in positions funded by the Contract to qualified recipients of aid under Welfare and Institutions Code Section 11200 in accordance with Pub.

Contract Code §10353.

19. SMALL BUSINESS PARTICIPATION AND DVBE PARTICIPATION REPORTING REQUIREMENTS:
a. If for this Contract Contractor/GRANTEE made a commitment to achieve small business participation, then Contractor/GRANTEE must within 60 days of receiving final payment under this Contract (or within such other time period as may be specified elsewhere in this Contract) report to the awarding department the actual percentage of small business participation that was achieved. (Govt. Code § 14841.) b. If for this Contract Contractor/GRANTEE made a commitment to achieve disabled veteran business enterprise (DVBE) participation, then Contractor/GRANTEE must within 60 days of receiving final payment under this Contract (or within such other time period as may be specified elsewhere in this Contract) certify in a report to the awarding department: (1) the total amount the prime Contractor/GRANTEE received under the Contract; (2) the name and address of the DVBE(s) that participated in the performance of the Contract; (3) the amount each DVBE received from the prime Contractor/GRANTEE; (4) that all payments under the Contract have been made to the DVBE; and (5) the actual percentage of DVBE participation that was achieved. A person or entity that knowingly provides false information shall be subject to a civil penalty for each violation. (Mil. & Vets. Code § 999.5(d); Govt. Code § 14841.)

20. LOSS LEADER:

If this contract involves the furnishing of equipment, materials, or supplies then the following statement is incorporated: It is unlawful for any person engaged in business within this state to sell or use any article or product as a “loss leader” as defined in Section 17030 of the Business and Professions Code. (PCC 10344(e).)
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EXHIBIT C

CERTIFICATION
I, the official named below, CERTIFY UNDER PENALTY OF PERJURY that I am duly authorized to legally bind the prospective Grantee to the clause(s) listed below. This certification is made under the laws of the State of California.

Grantee Agency Name (Printed)
City of San Rafael
Federal ID Number
94-6000424
By Authorized Signature:

Printed Name and Title of Person Signing
,
Date Executed Executed in the County of
Marin

GRANTEE CERTIFICATION CLAUSES

1. STATEMENT OF COMPLIANCE:

Grantee has, unless exempted, complied with the nondiscrimination program requirements. (Gov. Code §12990 (a-f) and CCR, Title 2, Section 8103) (Not applicable to public entities.)

2. DRUG-FREE WORKPLACE REQUIREMENTS:

18.10 Grantee will comply with the requirements of the Drug-Free Workplace Act of 1990 and will provide a drug-free workplace by taking the following actions:
a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations.
b. Establish a Drug-Free Awareness Program to inform employees about:
1) the dangers of drug abuse in the workplace;
2) the person's or organization's policy of maintaining a drug-free workplace; 3) any available counseling, rehabilitation and employee assistance programs; and,
4) penalties that may be imposed upon employees for drug abuse violations. c. Every employee who works on the proposed Agreement will:
1) receive a copy of the company's drug-free workplace policy statement; and, 2) agree to abide by the terms of the company's statement as a condition of employment on the Agreement.

3. NATIONAL LABOR RELATIONS BOARD CERTIFICATION:

Grantee certifies that no more than one (1) final unappealable finding of contempt of court by a Federal court has been issued against Grantee within the immediately preceding two-year period because of Grantee's failure to comply with an order of a Federal court, which orders Grantee to comply with an order of the National Labor Relations Board. (Pub. Contract Code §10296) (Not applicable to public entities.)

4. CONTRACTS FOR LEGAL SERVICES $50,000 OR MORE- PRO BONO REQUIREMENT:

Grantee hereby certifies that Grantee will comply with the requirements of Section 6072 of the Business and Professions Code, effective January 1, 2003.

Grantee agrees to make a good faith effort to provide a minimum number of hours of pro bono legal services during each year of the agreement equal to the lessor of 30 multiplied by the Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 20 of 58
number of full time attorneys in the firm’s offices in the State, with the number of hours prorated on an actual day basis for any contract period of less than a full year or 10% of its agreement with the State.

Failure to make a good faith effort may be cause for non-renewal of a state agreement for legal services, and may be taken into account when determining the award of future contracts/agreements with the State for legal services.

5. EXPATRIATE CORPORATIONS:

18.40 Grantee hereby declares that it is not an expatriate corporation or subsidiary of an expatriate corporation within the meaning of Public Contract Code Section 10286 and 10286.1, and is eligible to contract with the State of California.

6. SWEATFREE CODE OF CONDUCT:
a. All Grantees contracting for the procurement or laundering of apparel, garments or corresponding accessories, or the procurement of equipment, materials, or supplies, other than procurement related to a public works contract, declare under penalty of perjury that no apparel, garments or corresponding accessories, equipment, materials, or supplies furnished to the state pursuant to the contract have been laundered or produced in whole or in part by sweatshop labor, forced labor, convict labor, indentured labor under penal sanction, abusive forms of child labor or exploitation of children in sweatshop labor, or with the benefit of sweatshop labor, forced labor, convict labor, indentured labor under penal sanction, abusive forms of child labor or exploitation of children in sweatshop labor. The Grantee further declares under penalty of perjury that they adhere to the Sweatfree Code of Conduct as set forth on the California Department of Industrial Relations website located at www.dir.ca.gov, and Public Contract Code Section 6108.
b. The Grantee agrees to cooperate fully in providing reasonable access to the Grantee’s records, documents, agents or employees, or premises if reasonably required by authorized officials of the contracting agency, the Department of Industrial Relations, or the Department of Justice to determine the Grantee’s compliance with the requirements under paragraph (a).

7. DOMESTIC PARTNERS:

For contracts over $100,000 executed or amended after January 1, 2007, the Grantee certifies that Grantee is in compliance with Public Contract Code section 10295.3.

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EXHIBIT D

DOING BUSINESS WITH THE STATE OF CALIFORNIA
The following laws apply to persons or entities doing business with the State of California.

1. CONFLICT OF INTEREST:

Grantee needs to be aware of the following provisions regarding current or former state employees. If Grantee has any questions on the status of any person rendering services or involved with the Agreement, the awarding agency must be contacted immediately for clarification.

Current State Employees (PCC 10410):
1) No officer or employee shall engage in any employment, activity or enterprise from which the officer or employee receives compensation or has a financial interest and which is sponsored or funded by any state agency, unless the employment, activity or enterprise is required as a condition of regular state employment. 2) No officer or employee shall contract on his or her own behalf as an independent contractor with any state agency to provide goods or services.

Former State Employees (Pub. Contract Code §10411):
1) For the two-year period from the date he or she left state employment, no former state officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements or any part of the decision-making process relevant to the contract while employed in any capacity by any state agency.
2) For the twelve-month period from the date he or she left state employment, no former state officer or employee may enter into a contract with any state agency if he or she was employed by that state agency in a policy-making position in the same general subject area as the proposed contract within the 12-month period prior to his or her leaving state service.

If Grantee violates any provisions of above paragraphs, such action by Grantee shall render this Agreement void. (PCC 10420).

Members of boards and commissions are exempt from this section if they do not receive payment other than payment of each meeting of the board or commission, payment for preparatory time and payment for per diem. (PCC 10430 (e)).

2. LABOR CODE/WORKERS' COMPENSATION:

Grantee needs to be aware of the provisions which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions, and Grantee affirms to comply with such provisions before commencing the performance of the work of this Agreement. (Labor Code Section 3700).

3. AMERICANS WITH DISABILITIES ACT:

Grantee assures the State that it complies with the Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et seq.)

4. GRANTEE NAME CHANGE:

An amendment is required to change the Grantee's name as listed on this Agreement. Upon receipt of legal documentation of the name change the State will process the amendment.

Payment of invoices presented with a new name cannot be paid prior to approval of said Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 22 of 58
amendment. Any changes of the Grantee’s representative shall be notified to DBW within 30 days written notice on Grantee’s letterhead.

5. CORPORATE QUALIFICATIONS TO DO BUSINESS IN CALIFORNIA:
a. When agreements are to be performed in the state by corporations, the contracting agencies will be verifying that the Grantee is currently qualified to do business in California in order to ensure that all obligations due to the state are fulfilled. b. "Doing business" is defined in R&TC Section 23101 as actively engaging in any transaction for the purpose of financial or pecuniary gain or profit. Although there are some statutory exceptions to taxation, rarely will a corporate Grantee performing within the state not be subject to the franchise tax.
c. Both domestic and foreign corporations (those incorporated outside of California) must be in good standing in order to be qualified to do business in California.

Agencies will determine whether a corporation is in good standing by calling the Office of the Secretary of State.

6. RESOLUTION:

A county, city, district, or other local public body must provide the State with a copy of a resolution, order, motion, or ordinance of the local governing body which by law has authority to enter into an agreement, authorizing execution of the agreement.

7. AIR OR WATER POLLUTION VIOLATION:

Under the State laws, the Grantee shall not be: (1) in violation of any order or resolution not subject to review promulgated by the State Air Resources Board or an air pollution control district; (2) subject to cease and desist order not subject to review issued pursuant to Section 13301 of the Water Code for violation of waste discharge requirements or discharge prohibitions; or (3) finally determined to be in violation of provisions of federal law relating to air or water pollution.

8. PAYEE DATA RECORD FORM STD. 204:

This form must be completed by all Grantees that are not another state agency or other governmental entity.

Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 23 of 58

EXHIBIT E
Bid/Proposal Attachment regarding the Darfur Contracting Act of 2008 Effective January 1, 2009, all Invitations for Bids (IFB) or Requests for Proposals (RFP) for goods or services must address the requirements of the Darfur Contracting Act of 2008 (Act). (Public Contract Code sections 10475, et seq.; Stats. 2008, Ch. 272). The Act was passed by the California Legislature and signed into law by the Governor to preclude State agencies generally from contracting with “scrutinized” companies that do business in the African nation of Sudan (of which the Darfur region is a part), for the reasons described in Public Contract Code section 10475.

A scrutinized company is a company doing business in Sudan as defined in Public Contract Code section 10476. Scrutinized companies are ineligible to, and cannot, bid on or submit a proposal for a contract with a State agency for goods or services. (Public Contract Code section 10477(a)).

Therefore, Public Contract Code section 10478 (a) requires a company that currently has (or within the previous three years has had) business activities or other operations outside of the United States to certify that it is not a “scrutinized” company when it submits a bid or proposal to a State agency. (See # 1 on the sample Attachment).

A scrutinized company may still, however, submit a bid or proposal for a contract with a State agency for goods or services if the company first obtains permission from the Department of General Services (DGS) according to the criteria set forth in Public Contract Code section 10477(b). (See # 2 on the sample Attachment).

The following sample Attachment may be included in an IFB or RFP to satisfy the Act’s certification requirements of bidders and proposers.

Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 24 of 58
Exhibit E - DARFUR CONTRACTING ACT
Pursuant to Public Contract Code section 10478, if a bidder or proposer currently or within the previous three years has had business activities or other operations outside of the United States, it must certify that it is not a “scrutinized” company as defined in Public Contract Code section 10476.

Therefore, to be eligible to submit a bid or proposal, please complete only one of the following three paragraphs (via initials for Paragraph # 1 or Paragraph # 2, or via initials and certification for Paragraph # 3): YOUR BID OR PROPOSAL WILL BE DISQUALIFIED UNLESS YOUR BID OR PROPOSAL INCLUDES THIS FORM WITH EITHER PARAGRAPH #1 OR #2 INITIALED OR PARAGRAPH #3 INITIALED AND CERTIFIED.

1. _____ We do not currently have, or we have not had within the previous three years, business activities or other operations outside of the United States.

OR

2. _____ We are a scrutinized company as defined in Public Contract Code section 10476, but we have received written permission from the Department of General Services (DGS) to submit a bid or proposal pursuant to Public Contract Code section 10477(b). A copy of the written permission from DGS is included with our bid or proposal.

OR

3. _____ We currently have, or we have had within the previous three years, business activities or other operations outside of the United States, but we certify below that we are not a scrutinized company as defined in Public Contract Code section 10476.

CERTIFICATION For # 3.

I, the official named below, CERTIFY UNDER PENALTY OF PERJURY that I am duly authorized to legally bind the prospective proposer/bidder to the clause listed above in # 3. This certification is made under the laws of the State of California.

Grantee Agency Name (Printed)
City of San Rafael
Federal ID Number
94-6000424
By (Authorized Signature)
Printed Name and Title of Person Signing
,
Date Executed Executed in the County of
Marin

YOUR BID OR PROPOSAL WILL BE DISQUALIFIED UNLESS YOUR BID OR PROPOSAL INCLUDES THIS FORM WITH EITHER PARAGRAPH #1 OR #2 INITIALED OR PARAGRAPH #3

INITIALED AND CERTIFIED
Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 25 of 58

EXHIBIT F

SUGGESTED LANGUAGE FOR RECYLING CERTIFICATION
State law requires that state contracts shall have Recycling Certification in writing under penalty of perjury, the minimum, if not exact, percentage of recycled content, both post-consumer waste and secondary waste as defined in the Public Contract Code, Sections 12161 and 12200, in materials, goods, or supplies offered or products used in the performance of this Agreement, regardless of whether the product meets the required recycled product percentage as defined in the Public Contract Code, Sections 12161 and 12200. Contractor may certify that the product contains zero recycled content. (PCC 10233, 10308.5, 10354)

RECYCLED CONTENT CERTIFICATION
I, the official named below, CERTIFY UNDER PENALTY OF PERJURY that I am duly authorized to legally bind the prospective Contractor to the clause(s) listed below. This certification is made under the laws of the State of California.

Name and Title of Person Signing Date Executed
Authorized Signature Executed in the County of
Marin
Title Telephone Number
Legal Business Name
City of San Rafael
Federal ID Number
94-6000424
The Contractor hereby certifies under penalty of perjury, that {min_recycle_pct} percent of the materials, goods, supplies offered, or products used in the performance of this contract meets the or exceeds the minimum percentage of recycled material as defined in Sections 12161 and 12200 of the Public Contract Code. The Contractor may certify that the product contains zero recycled content.

Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 26 of 58
General
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ 1 Applicant Information
a. Applicant Name City of San Rafael
b. Organizational Unit San Rafael Police Marine Unit
c. Address 1375 Fifth Avenue
d. Address 2
e. City San Rafael State CA Zip 94901
f. Federal ID Number 94-6000424 Unique Entity Id. CRDWQSJB4 AR1
g. Agency Type
City County
State Agency District
Other Public Agency
2 Project Information
a. Project Name Boating Safety and Enforcement Equipment Grant - FY 2023 / 24 b. Is implementing agency same as Applicant Yes No
c. Implementing Agency Name
d. Project Start Date Oct-01-2023 End Date Sep-30-2031
e. Amount of Funds Requested $76,099.00 Project Cost $76,099.00 Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 27 of 58
3 Contacts
a. Project Administrator
Name Justin Graham
Title Sergeant
Mailing Address 1375 Fifth Avenue
City San Rafael State CA Zip 94901
Telephone (415) 485-3000 Fax (415) 485-3043
E-mail Address [email protected]
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 28 of 58
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________

1. Minimum Qualifications
Attach a Letter of Intent as required by Title 14. A template letter is in the ‘Show Documents’ area.
37314_0_621_SRPD -
BSEE Grant Letter of
Intent.pdf
As a subgrantee for this federal grant award, your agency must be registered in the Federal System of Award Management (https://www.sam.gov/SAM/pages/public/searchRecords/search.jsf) Your agency’s registration must be current in that system at the time you submit your application.

Attach a screenshot showing your registration is active. (A sample screenshot is available in the 'Show Documents' area)
37316_0_871_City of
San Rafael SAM.pdf
1 a. Do you have an active Boating Safety and/or Boating Law Enforcement Patrol? Yes No 1 b. What training and/or authorization does your
agency have to perform boating safety and/or
boating law enforcement in your jurisdiction?
(max. 1024 characters)
The San Rafael Police Department employs peace officers who are able to carry out police and law enforcement functions per section 830.1 of the California Penal Code. The Police
Department's Marine Unit operates two police boats with the following personnel: six peace officers, one reserve peace officer, and five civilian volunteers. The police boats are staffed by at least one peace officer or reserve officer at all times while underway. The officers on the boat have arrest and citation powers per section 836 of the California Penal Code and section 663 of the Harbors and Navigation Code.
1 c. Certify that your agency will report all boating accident statistics as required in Section 656 of Harbors and Navigation Code for the grant term if awarded this grant? An agency's failure to submit a report may result in ineligibility of future DBW funding opportunities for up to 5 fiscal years.

Yes No
1 d. Certify by checking the boxes that your agency meets all the following criteria:

Your agency employs at least one boating safety law enforcement officer defined in California Code of Regulations, Title 14, Division 4, Chapter 1, Article 4.5.2 as trained personnel authorized and retained to perform on-the-water boating safety and boating law enforcement activities.

Your agency’s boating safety law enforcement officer(s) conducts sufficient patrol and has the jurisdiction and authority to ensure adequate enforcement of all applicable state boating safety laws and regulations.

Your agency has the knowledge and means to properly report boating accidents to DBW. 1 e. Has your agency been out of compliance with the terms of any other Department of Parks and Recreation contract or agreement in the past 3 years? Yes No
If you responded 'Yes' to 1 e, please provide
an explanation
Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 29 of 58
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________

1. California State Senate Districts
Select one or more of the California State Senate Districts where the proposed project activities will occur. Copy and Paste the URL (http://www.legislature.ca.gov/legislators_and_districts/districts/districts.html) in your browser to determine the State Senate district(s).

State Senate 01 State Senate 02 State Senate 03 State Senate 04 State Senate 05 State Senate 06 State Senate 07 State Senate 08 State Senate 09 State Senate 10 State Senate 11 State Senate 12 State Senate 13 State Senate 14 State Senate 15 State Senate 16 State Senate 17 State Senate 18 State Senate 19 State Senate 20 State Senate 21 State Senate 22 State Senate 23 State Senate 24 State Senate 25 State Senate 26 State Senate 27 State Senate 28 State Senate 29 State Senate 30 State Senate 31 State Senate 32 State Senate 33 State Senate 34 State Senate 35 State Senate 36 State Senate 37 State Senate 38 State Senate 39 State Senate 40

2. California State Assembly Districts
Select one or more of the California State Assembly Districts where the proposed project activities will occur.

Copy and Paste the URL (http://www.legislature.ca.gov/legislators_and_districts/districts/districts.html) in your browser to determine the State Assembly district(s).

State Assembly 01 State Assembly 02 State Assembly 03 State Assembly 04 State Assembly 05 State Assembly 06 State Assembly 07 State Assembly 08 State Assembly 09 State Assembly 10 State Assembly 11 State Assembly 12 State Assembly 13 State Assembly 14 State Assembly 15 State Assembly 16 State Assembly 17 State Assembly 18 State Assembly 19 State Assembly 20 State Assembly 21 State Assembly 22 State Assembly 23 State Assembly 24 State Assembly 25 State Assembly 26 State Assembly 27 State Assembly 28 State Assembly 29 State Assembly 30 State Assembly 31 State Assembly 32 State Assembly 33 State Assembly 34 State Assembly 35 State Assembly 36 State Assembly 37 State Assembly 38 State Assembly 39 State Assembly 40 State Assembly 41 State Assembly 42 State Assembly 43 State Assembly 44 State Assembly 45 State Assembly 46 State Assembly 47 State Assembly 48 State Assembly 49 State Assembly 50 State Assembly 51 State Assembly 52 State Assembly 53 State Assembly 54 State Assembly 55 State Assembly 56 State Assembly 57 State Assembly 58 State Assembly 59 State Assembly 60 State Assembly 61 State Assembly 62 State Assembly 63 State Assembly 64 State Assembly 65 State Assembly 66 State Assembly 67 State Assembly 68 State Assembly 69 State Assembly 70 State Assembly 71 State Assembly 72 State Assembly 73 State Assembly 74 State Assembly 75 State Assembly 76 State Assembly 77 State Assembly 78 State Assembly 79 State Assembly 80

3. California Congressional Districts
Select one or more of the California Congressional Districts where the proposed project activities will occur.

Copy and Paste the URL (https://www.govtrack.us/congress/members/CA) in your browser to determine the Congressional district(s).

Congressional District 1 Congressional District 2 Congressional District 3 Congressional District 4 Congressional District 5 Congressional District 6 Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 30 of 58
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ Congressional District 7 Congressional District 8 Congressional District 9 Congressional District 10 Congressional District 11 Congressional District 12 Congressional District 13 Congressional District 14 Congressional District 15 Congressional District 16 Congressional District 17 Congressional District 18 Congressional District 19 Congressional District 20 Congressional District 21 Congressional District 22 Congressional District 23 Congressional District 24 Congressional District 25 Congressional District 26 Congressional District 27 Congressional District 28 Congressional District 29 Congressional District 30 Congressional District 31 Congressional District 32 Congressional District 33 Congressional District 34 Congressional District 35 Congressional District 36 Congressional District 37 Congressional District 38 Congressional District 39 Congressional District 40 Congressional District 41 Congressional District 42 Congressional District 43 Congressional District 44 Congressional District 45 Congressional District 46 Congressional District 47 Congressional District 48 Congressional District 49 Congressional District 50 Congressional District 51 Congressional District 52 Congressional District 53

4. County
Select one or more of the California Counties where the proposed project activities will occur.

Alameda Alpine Amador Butte Calaveras Colusa
Contra Costa Del Norte El Dorado Fresno Glenn Humboldt
Imperial Inyo Kern Kings Lake Lassen
Los Angeles Madera Marin Mariposa Mendocino Merced
Modoc Mono Monterey Napa Nevada Orange
Placer Plumas Riverside Sacramento San Benito San
Bernardino
San Diego San Francisco San Joaquin San Luis
Obispo
San Mateo Santa Barbara
Santa Clara Santa Cruz Shasta Sierra Siskiyou Solano
Sonoma Stanislaus Sutter Tehama Trinity Tulare
Tuolumne Ventura Yolo Yuba
Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 31 of 58
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________

2. Citation Authority
2 a. Number of Full-Time Boating Safety and/or Boating Law Enforcement Officers do you have?
1 2 b. Number of Part-Time Boating Safety and/or Boating Law Enforcement Officers do you have?
6 How many hours per year do they work? 1,100
Is this work seasonal or continuous? Continuous

3. Does your boating safety and enforcement unit have citation authority? Yes No If YES, Authorizing Code # 830.1 PC, 836 PC, 663
HNC
a. How many boating safety related citations did your agency issue last calendar year?
5 b. How many boating accidents did your agency respond to in the last calendar year?
15 c. How many BOATING safety related Search and Rescue missions did your agency perform in the last calendar year?
24 4. Does your boating safety and enforcement unit have arrest authority? Yes No If YES, Authorizing Code # 830.1 PC, 836 PC, 663
HNC
How many boating related arrests did you conduct last calendar year? 1

5. How many outreach events with the general public did your agency participate in to promote boating safety education last calendar year? Please list the events and describe how boating safety was promoted.
2 5a.

Event Name Date of Event
What BOATING SAFETY information was
provided at this event?
Paddle Boat Races Weekly Discuss the use of flotation devices and knowing the weather forecast.

SEA & SRHS Sailing Classes Monthly - March
to Aug
Give them instructions on safe sailing, use of
flotation devices, knowing the weather forecast.

Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 32 of 58
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION ________________________________________________________________________________________________________________ 6. Jurisdiction Table List all waterbodies that are in your jurisdiction and fill in the below chart for each Waterbody Size (area)
List all boating activities (e.g.fishing, water skiing, paddling,etc.) conducted on thiswaterbody.

How many
hours/year is
this
waterbody
patrolled by
your agency
Is theresharedjurisdictionon thiswaterbody?
If shared jurisdiction, list otheragency(s)
San Rafael Bay and Channel 5.96 Sq Mi Open water swimming, paddle boarding, sailing, kayaking,canoeing, personal watercraft (PWC)sports, wind surfing, sport boating,fishing, yachting, kite boarding,seaplane aviation, including a once ayear triathlon sporting event. 1,100 Yes United States Coast Guard
San Pablo Bay 90 Sq Mi Open water swimming, paddle
boarding, sailing, kayaking,canoeing, personal watercraft (PWC)sports, wind surfing, sport boating,fishing, yachting, kite boarding,seaplane aviation, commuter ferries,commercial shipping. 1,100 Yes United States Coast Guard, Marin
County Sheriff, Sonoma County Sheriff,Contra Costa Sheriff, Richmond Police Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 ________________________________________________________________________________________________________________ Page: 33 of 58 Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________

7. Top three BOATING safety issues
This is a Federal Pass-Through ‘Recreational Boating Safety Grant’. The purpose of the grant is to promote boating safety and to decrease the number of accidents, injuries, and fatalities on U.S. waters. Clearly identify the top three BOATING safety issues that affect recreational boaters in your jurisdiction and describe how the requested grant will address these issues. Your answer to this question will be referenced throughout this grant application.

The City of San Rafael and the San Rafael Police Department recognize that the San Rafael Bay and Creek and the San Pablo Bay are vital to our community and those who use and visit these areas for work or pleasure. To ensure the safe use of these waterways, the San Rafael Police Marine Unit regularly patrols these waters to conduct enforcement and respond to emergency calls for service.

Our Marine Unit’s mission is to keep these waterways safe by providing emergency medical care and rescue assistance to vessels and people in distress. Enable the department to enforce various municipal, state, and federal laws. Prevent fire and crime incidents. Perform various duties prescribed by California boating laws emphasizing boating safety. To do this, the Marine Unit maintains its proficiency through training and skills assessment. Additionally, the two patrol boats are regularly maintained and serviced.

During recent routine maintenance and service, it was identified that the two patrol boats need new navigation, RADAR, infrared cameras, side scanning SONAR, radio directional finder (RDF), and radio equipment. SRPD has completed other required maintenance projects during the annual fiscal period that have put the Marine Unit’s operating costs over budget. Additional funding sources are needed to replace outdated navigation and radio equipment.

The San Rafael Police Department has continuously operated a Police Marine Unit with at least one police patrol boat available. The Marine Unit operates within and outside San Rafael Bay and Creek. The San Rafael Bay and Creek is within the City of San Rafael limits and covers 5.96 square miles of water. In addition, the Marine Unit patrols large portions of San Pablo Bay which the San Rafael Bay and Creek are connected to.

On an ongoing and frequent basis, the Marine Unit responds to numerous calls for assistance that extend within and outside the Marine Unit’s city-limit jurisdiction.

These calls for assistance come from boaters, swimmers, and other recreational users on the water. Additionally, the Marine Unit receives mutual aid requests through the United States Coast Guard (USCG), Marin County Sheriff’s Communications Center, CHP’s Golden Gate Division Dispatch, and Contra Costa County Dispatch. Some of these calls for assistance have taken the Marine Unit as far south as the Golden Gate Bridge and San Francisco Bay Bridge and as far north as the Petaluma River and Carquinez Straits. Our Marine Unit pride itself in being good neighbors and are able to partner with and respond into other Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 34 of 58
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ jurisdictions that may not have a rescue or enforcement asset available.

Call types range from boats running aground, boats capsizing and sinking, boats and watercraft taking on water, fires, open water swimmers in distress, paddle boarders in distress, storm exposures, lost in the fog, suicides from the Richmond/San Rafael Bridge (Interstate 580), drownings, missing persons, search and rescue missions, overdue boats/craft/person searches, body recovery, hazmat, environmental cleanup, boating enforcement saturation patrols, multi-jurisdiction enforcement operations, suspect apprehension missions, SWAT missions, and many others.

In 1986, the San Rafael Police Department purchased a 35-foot Modutech police patrol boat through a grant from the California Department of Boating and Waterways. When purchasing the patrol boat, the original agreement was to have it available to operate within San Pablo Bay. This patrol boat, named “Mission City,” has been well maintained by the unit and is still the primary operating patrol boat.

At the end of 2022, Mission City patrol boat underwent an operational assessment and inspection to determine its viability and operational needs. During the assessment, inspectors found that the main exterior deck, bow railings and handles, and aft panel needed to be replaced. SRPD spent over $40,000 to complete this work in January of this year.

Additionally, during the assessment, it was also determined that Mission City is due for a significant overhaul of outdated electronic navigation, RADAR, infrared cameras, radio directional finder (RDF), side scanning SONAR, and radio equipment which it uses to safely operate and use for a variety of calls for assistance, requests for help, emergencies, and search and rescue missions which occur both day and night and in ideal and inclement weather conditions. The majority of the equipment is 20 years old. This means most of this electronic equipment is so old that replacement parts can no longer be located.

Lastly, it was determined that Mission City needed new emergency lights, work lights, a siren, and a public address system. SRPD has budgeted $12,000 to complete this project in the coming months.

In 2013, the department recognized the need for a rapid response or “quick boat” platform to assist our community and officers in addition to patrol boat Mission City.

A $65,000 grant was secured with the California Department of Boating and Waterways to purchase a 22-foot Rogue Jet rigid haul named “Rescue 22”. Rescue 22 has been an invaluable addition to the Marine Unit since SRPD can train and maintain a response team of sworn peace officers to use it when Mission City patrol boat is unavailable. This boat gives SRPD faster response times to local emergencies, rescues, and increases law enforcement capabilities within the San Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 35 of 58
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ Rafael Creek. Due to the boat’s smaller size and ease of use, SRPD can quickly train sworn peace officer personnel to operate it. These officers have then been able to respond to calls for service and a wide variety of enforcement and rescue missions.

Rescue 22 underwent a similar assessment and inspection as the Mission City underwent in late 2022. The assessment and inspection determined that the main deck needed refurbishment, which SRPD spent nearly $30,000 to repair at the beginning of this year.

Additionally, Rescue 22 was found to need an overhaul of its outdated electronic navigation, RADAR, and radio equipment. The equipment is currently ten years old and becoming difficult to service. This equipment is vital to the safe operation of the boat during law enforcement and search and rescue missions.

Between completed projects, current assessments, and the current operational needs of Mission City and Rescue 22, it has overrun the current budget. It will also likely continue to overrun the police department’s Marine Unit operating and maintenance budget in the coming year, which is not a sustainable practice.

Based on this fiscal year’s current projects completed, the police department Marine Unit has exceeded the budget by 321%. The police department wants to invest and keep this valuable resource operating at its peak to keep our community safe, enforce laws, and be able to respond to search and rescue missions.

Additional funding sources are required to keep the Marine Unit in top operational condition.

The Marine Unit consists of one-full time reserve peace officer, one full-time peace officer (currently assigned to street patrol due to staffing), six part-time Rescue 22 trained sworn peace officers, and five civilian marine auxiliary volunteers. The reserve peace officer is the primary operator of both patrol boats of the Marine Unit, with the full-time peace officer also fully trained. Due to staffing, the full-time peace officer is primarily assigned to street patrol and can team up with the reserve officer when staffing allows. The six additional peace officers are also primarily assigned to street patrol but have the training and skillset to deploy Rescue 22 as needed.

The six marine auxiliary volunteers operate on a rotation and support the reserve peace officer. The Marine Unit consistently operates at least every weekend throughout the year. Lastly, the entire Marine Unit trains on a regular basis to maintain proficiency and conducts major quarterly training, which sometimes includes allied and partnering agencies.

Even though the Marine Unit consistently operates on the weekends, they are available and on-call to respond to any call for service throughout the week. In Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 36 of 58
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ addition to weekend operations, the Marine Unit supports several local and SF Bay Area events, such as the Marin Triathlon, Opening Day on the Bay, SF Fleet Week, and several others. The Marine Unit has successfully deployed and operated in very dynamic and complex situations and in various weather conditions.

The Marine Unit operates in locations of San Rafael Bay and Creek and San Pablo Bay, requiring electronic navigation equipment. The San Rafael Bay and Creek, along with the San Pablo Bay, have many shallow areas and can become exposed during low tide. These areas are usually charted, but because of rescue missions may require our Marine Unit to navigate into these areas furthering the need for RADAR, GPS, and depth-finding equipment. San Rafael Bay and Creek and the San Pablo Bay also have a significant number of exposed obstacles and hazards, such as docks and piers, navigation aids/buoys, boat and watercraft traffic, the Richmond San Rafael Bridge, West and East Marin Islands, Sisters Islands, Rat Rock, Red Rock Island, East Brother Light Station, along with commercial shipping and commuter ferry lanes of travel. During inclement weather and night conditions, these obstacles can be hidden and obscured, furthering the need for properly functioning navigation equipment.

Based on proactive patrols, calls for service, requests for assistance, and mutual aid requests, the San Rafael Police Department has determined that the top three issues within the Marine Units response area are as follows:

Rescue and enforcement of people without or not using life jackets. Every weekend, the Marine Unit is either proactively enforcing or responding to incidents where people on the water are in peril due to not having or using personal flotation devices and life jackets. Both the Mission City and Rescue 22 patrol boats participate in proactive enforcement. Some of this proactive enforcement occurs in hazardous and shallow locations, requiring navigation and RADAR equipment. In other situations, both patrol boats are needed each weekend for rescue calls from a person who is without a life jacket and suffering from exhaustion and exposure. Frequently these people needing help use their cell phones to call 9-1-1. When dispatch centers receive these calls, they receive the cellular phone’s GPS location information which is heavily relied upon. It has been the experience of the Marine Unit that most people in peril are not sure of their exact location when in the water. This GPS information is forwarded to our Marine Unit, that then is charted into navigation equipment that provides the location and heading. Additionally, most people in need of rescue are in extremely shallow locations and can make rescuing difficult without knowing current tidal and weather conditions. These conditions exist where most of these incidents occur and where recreators are drawn, such as the shorelines of China Camp State Park, McNear’s Beach Park, the San Rafael Creek, •
Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 37 of 58
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ Spinnaker Point, Marin Rod and Gun, and San Quentin Beach Park.

Searching for overdue and lost boats/people in a variety of conditions. The Marine Unit often responds to calls where boats and people are overdue.

Many incidents happen during inclement weather conditions, such as heavy fog or storms. The Marine Unit uses as much information as it can obtain regarding overdue boats and people and plots the information into navigation equipment. Navigation and RADAR equipment is also used to keep the Marine Unit safe during searches so that they can be made aware of hazards, obstacles, and other boat traffic. In some cases, the Marine Unit has operated in limited to no visibility circumstances due to weather or storms to locate boats and people. These missions were carried out with the support and use of critical navigation, RADAR and RDF equipment. Many overdue boats and people have been found stranded in the shallows of the bay. Some of these finds have been the result of using RADAR, RDF, and infrared cameras to locate vessels and watercraft in these areas. While a boat rescue has been impossible at times, the use of navigation and radio equipment to accurately pass along the location of the stranded to rescue helicopters is vital.
•
Boating and missing persons search and rescue missions. The Marine Unit responds to numerous search and rescue missions for boats and people in the water. The Marine Unit uses Mission City and Rescue 22 patrol boats for these missions. These calls for assistance come from the boat in distress, the person needing rescue, or through SRPD Dispatch or any allied and partnering agencies. The Marine Unit is often the primary responding unit for the San Rafael Bay and Creek, including San Pablo Bay.

In addition, the Marine Unit can be the primary response unit when requested by other agencies with extended estimated arrival times. The Marine Unit also participates with and supports allied agencies’ search and rescue missions. Many of these search and rescue missions are during inclement weather and require constant use of radios, RADAR, thermal imagind cameras, and navigation equipment. Again, Mission City and Rescue 22 patrol boats need proper functioning navigation, RADAR, and radio equipment to navigate safely as well as to keep track of searched and need to be searched locations, other rescue craft, boat traffic, and to avoid hazards. Some of these missions have included a person who committed suicide from Richmond San Rafael Bridge, boat collisions, sinking boats, boats on fire, person overboard, drowned victims, open water swimmers suffering from exhaustion and exposure, injured kite surfers, overturned kayakers, and more. The Mission City has been called to assist in a number of unique and high profile cases. The Mission City was called to •
Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 38 of 58
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ assist in the Scott Peterson homicide and used its side scanning SONAR to search for the body of Lacui Peterson. The Mission City has also used its side scanning SONAR for downed aircraft and more recently for persons who have committed suicide from the Richmond San Rafael Bridge. There has been an increase in these suicide cases where the Mission City has responded for body recovery efforts.

The Marine Unit has found that with water sports becoming more popular and accessible, many recreators find themselves unprepared and beyond their skillset with rapidly changing weather conditions. For some, it was their first time on the water; they had done little to no research about the area and were ill-equipped.

This increase in incidents and rescues further demonstrates the need for quality, high-functioning navigation RADAR, thermal imaging, and radio equipment While the San Rafael Police Department has gone above and beyond with maintaining and servicing the equipment the Marine Unit needs on its two patrol boats for safe and successful operations and missions, additional funding sources are needed for the replacement of outdated navigation, RADAR, RDF, thermal imaging cameras, and radio equipment.

The San Rafael Police Department prioritizes maintaining safety and security on the waterways within its city limits and far beyond. For these reasons, the City of San Rafael and the San Rafael Police Department request the consideration of grant funding from the California Department of Waterways Boating Safety and Enforcement Equipment Grant.

Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 39 of 58
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION ________________________________________________________________________________________________________________ 8. Inventory List all patrol boats, PWCs and inflatables in your current inventory (Local and State owned) Year Make CF Number
How many
hours/year is
this used?
What waterbodies is itused on?
Is this boatcurrentlybeingsurplused?
Was thisvesselfunded by aDBW grant?
Is thisvesseloperational?
Is this vessel usedfor anything elsebesides patrolling. Ifso, explain. 1986 Modutech CF 2448 XC 1,000 San Rafael Bay and
Creek, San Pablo Bay,and San Francisco Bay
No Yes Yes Yes, search and rescue
missions.
2013 Rogue Jet CF 5424 XC 300 San Rafael Bay and
Creek, and San PabloBay
No Yes Yes Yes, search and rescue
missions.

Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 ________________________________________________________________________________________________________________ Page: 40 of 58 Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________

9. Project Type
Are you requesting a new Patrol Boat/PWC or Misc. Equipment.? New Patrol Boat/PWC - see definition below
Equipment / Repairs
NOTE: A “Patrol Boat” is defined as “A Department of Parks and Recreation, Division of Boating and Waterwaysapproved, registered vessel (with or without trailer and/or outboard motor) purchased for use in boating safety and law enforcement activities.” VERIFY THAT YOUR REQUEST IS CORRECTLY CLASSIFIED. Failure to correctly classify may result in disqualification of your grant application. * All items purchased with funding provided by the Division of Boating and Waterways are for the exclusive use of the Boating Safety and Enforcement Unit.

Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 41 of 58
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ Misc Equipment Instructions

PLEASE READ THE FOLLOWING CAREFULLY
ENTER INFORMATION IN THIS SECTION ONLY IF YOU SELECTED 'MISC. EQUIPMENT' AS A PROPOSAL TYPE
IF YOU DID NOT SELECT 'MISC. EQUIPMENT' AS A PROPOSAL TYPE, CLICK ON THE NEXT TAB TO

NAVIGATE TO THE NEXT SECTION
Misc. Equipment Items

11. Describe what you are requesting. You may request only FIVE ITEMS TOTAL (patrol boat and equipment). You may group "like items”. “Like items” are related items that work together. You need one to work with the other.

Examples of “like items” include a ‘patrol boat and a trailer’ or ‘dive masks and dive suits’.” NOTE: Do not ask for supplies (ie: rope, water bottles, cleaning supplies, hardware). Supplies WILL NOT BE CONSIDERED for grant funding.

Item Cost Quantity Total Priority Comments
RADAR Systems 9,151.50 2.00 18,303 First Rescue 22 - $2903.41 / Mission City - $8800.00 / Labor -
$6600.00
Navigation/GPS/Chart
Plot
14,706.00 2.00 29,412 Second Rescue 22 - $7316.67 / Mission City - $15495.00 / Labor -
$6600.00
VHF Radios and RDF 14,192.00 2.00 28,384 Third For Mission City patrol boat / Labor - $6600.00
Thermal Imaging
Camera
54,809.28 1.00 54,809 Fourth For Mission City patrol boat / Labor - $6600.00
Side Scanning
SONAR
11,595.00 1.00 11,595 Fifth For Mission City patrol boat / Labor - $6600.00
TOTAL 142,503
Misc. Equipment Items Questions (RADAR Systems)

11. Item Details
11 a. Is this equipment general all-purpose gear? NOTE: person-specific items will not be funded.

Yes No
11 b. Describe exactly what you are requesting and how this equipment will help mitigate the boating safety issues you identified in Question 7. If your requested quantity is more than one for any item, explain the need for having multiple items. (max. 2000 characters)
The following equipment is requested for the "Mission City" and "Rescue 22":

RADAR Systems - This equipment is required for each patrol boat to safely navigate, operate, and locate vessels, obstacles, and hazards. This equipment is essential during inclement weather, heavy rain, reduced visibility due to fog, and darkness. In summary, this equipment will be used for (1) rescue and enforcement of persons not wearing life jackets/PFDs, (2) searching for overdue and lost people and vessels, and (3) search and rescue missions involving missing people and vessels.

1. 11 c. Describe any negative impacts to boating safety and/or boating enforcement if you do not get this grant.

Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 42 of 58
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ The equipment for Mission City patrol boat is 20 years old and is beyond its reasonable life span. Most of the equipment cannot be repaired since parts are no longer available. If the Marine Unit does not replace the old RADAR equipment on Mission City, it will not be able to remain in-service to focus on the three main identified problem areas, continue to conduct enforcement operations and respond to search and rescue emergencies.

The equipment for Rescue 22 patrol boat faces the same circumstance as Mission City patrol boat. The RADAR equipment aboard Rescue 22 is ten years old and becoming a maintenance issue due to no or hard-to-find parts. If the equipment fails to function as needed, then Rescue 22 will need to be taken out of service, and it will not be able to focus on the three main identified problem areas, continue to conduct enforcement operations, and respond to search and rescue emergencies.
11 d. Classify this request
Classify this request by choosing one of the following options and present a strong justification for the request
"Critical" (operations would cease without it)
"Increased efficiency" (if it would save staff time, identify how much time) "Convenience" (it would make life a little easier)
"Protection" of existing equipment (ex: shade tents, hoists to get the vessels out of the water, etc. to extend longevity)
Justify your classification of this request. (max. 300 characters) The RADAR Systems for both patrol boats are old and outdated. Both boats will not be able to remain in service when this equipment fails. Both boats will not be able to focus on the three main identified problem areas as well as other missions.

Percentage of time on the water this equipment will be used for:

Activity Percentage
Boating Safety Activities 15
Search and Rescue Activities 75
Other Activities 10
TOTAL 100.00
List any other activities this equipment will be used for: (max 300 characters) Mission City and Rescue 22 operate during special events, such as SF Bay Opening Day, Marin Triathlon, and SF Fleet Week, which all require the ability to have navigation, RADAR, and radio equipment. 11 e. If you are not awarded your full request, would your agency be able to supplement the difference?
Yes No
If yes, what percentage can you supplement? 10
11 f. What other capabilities exist in your region for this equipment? Justify why it is not feasible to borrow this equipment from a neighboring agency.

There are limited to no other capabilities that the San Rafael Police Marine Unit could use. The San Rafael Police Marine Unit is considered the regional asset for the area. This equipment is vital to the operation of the patrol boats themselves and is essential for San Rafael Bay and Creek operations as well as operating in San Pablo Bay. While the Marin Sheriff and the United States Coast Guard have assets that could assist, they often call us to assist them since they have extended response times or no availability. 11 g. How and why did you select this particular model? Explain if this is standard equipment or do you need Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 43 of 58
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ something specialized for your waterbody to meet your agency's needs? List less expensive models considered and explain why they are not being requested. List other funding sources available to your agency that could be used to purchase or partially purchase this equipment.

The makes and models of the equipment identified are considered reliable and the "standard" for our needs and use and were determined using a respected and trusted vendor. The equipment is also backed by industry-leading manufacturers who provide trusted and quality warranties and service.

There is no other less expensive equipment/makes/models due to it being sub-standard for the rigorous needs of our Marine Unit. 20 and 10-year-old versions of these makes/models are what is being requested for replacement.

There are currently no other funding sources available to the police department. The police department's marine unit funding is currently 321% over budget in just this year alone. SRPD has made it a priority to maintain both boats and due to age and maintenance, the ability to have extra funds for these types of equipment currently does not exist.

Misc. Equipment - Informational
11 h. What body(s) of water will this equipment be used on? San Rafael Bay and Creek, San Pablo Bay, and San Francisco Bay 11 i. How many hours per month on average will this equipment be used for Boating Safety Enforcement? May through September 600
October through April 500
11 j. Will this equipment be used for anything besides Recreational Boating Safety Enforcement (ie. Junior lifeguard, swimming rescues, enforcing commercial activities, etc.)?
Yes No
If YES, complete the table below
List Other Activity (NOT BOATING RELATED

ACTIVITY)
Hours per month on
average this
equipment will be
used for other Activity
Community Police Academy Ride-alongs 1
Law Enforcement Investigations (Homicides, Missing
Persons, Suicides)
2 11 k. Select the PRIMARY purpose this equipment will be used for:

Search and rescue
Enforcement of state and local measures
Inspection of vessels
Recovering drowned bodies
Supervising organized water events
11 l. If Search and Rescue is the primary purpose, list the activity (i.e: recovery of drowned body) and the number of boating-related emergencies this equipment would have been used for last year doing that activity. Do not include NON-BOATING emergencies (i.e: those related to swimmers)

BOATING-RELATED ACTIVITY

NUMBER OF TIMES

NEEDED LAST YEAR
Missing/overdue boats 5
Kayakers and paddle boarders in distress 24
Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 44 of 58
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ Drowned bodies 2
Vessels run aground or taking on water 15
Misc. Equipment Items Questions (Navigation/GPS/Chart Plot)

11. Item Details
11 a. Is this equipment general all-purpose gear? NOTE: person-specific items will not be funded.

Yes No
11 b. Describe exactly what you are requesting and how this equipment will help mitigate the boating safety issues you identified in Question 7. If your requested quantity is more than one for any item, explain the need for having multiple items. (max. 2000 characters)
The following equipment is requested for the "Mission City" and "Rescue 22" patrol boats:

Navigation/GPS/Chart Plot Systems - This equipment is required to navigate, operate, and locate people, vessels, obstacles, and hazards. Additionally, this equipment is required to provide constant and accurate location information for situational awareness. This contributes to aiding with the top three identified problem areas of (1) rescue and enforcement of persons not wearing life jackets/PFDs, (2) searching for overdue and lost people and vessels, and (3) search and rescue missions involving missing people and vessels.

1. 11 c. Describe any negative impacts to boating safety and/or boating enforcement if you do not get this grant.

The navigation/GPS/chart plotting equipment for Mission City patrol boat is 20 years old and is beyond its reasonable life span. Most of the equipment cannot be repaired since parts are no longer available. If the Marine Unit does not replace the old navigation/GPS/Chart plotting equipment on Mission City, it will not be able to remain in-service to focus on the three main identified problem areas, continue to conduct enforcement operations, and respond to search and rescue emergencies.

The equipment for Rescue 22 patrol boat faces the same circumstance as Mission City patrol boat. The navigation/GPS/chart plotting equipment aboard Rescue 22 is ten years old and becoming a maintenance issue due to no or hard-to-find parts. If the equipment fails to function as needed, then Rescue 22 will need to be taken out of service, and it will not be able to focus on the three main identified problem areas, continue to conduct enforcement operations, and respond to search and rescue emergencies. 11 d. Classify this request
Classify this request by choosing one of the following options and present a strong justification for the request
"Critical" (operations would cease without it)
"Increased efficiency" (if it would save staff time, identify how much time) "Convenience" (it would make life a little easier)
"Protection" of existing equipment (ex: shade tents, hoists to get the vessels out of the water, etc. to extend longevity)
Justify your classification of this request. (max. 300 characters) The Navigation/GPS/Chart Plot equipment for Mission City and Rescue 22 patrol boat is old and outdated. Both boats will not be able to remain in service when this equipment fails. Both boats will not be able to focus on the three main identified problem areas as well as other missions.

Percentage of time on the water this equipment will be used for:

Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 45 of 58
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ Activity Percentage
Boating Safety Activities 45
Search and Rescue Activities 45
Other Activities 10
TOTAL 100.00
List any other activities this equipment will be used for: (max 300 characters) Mission City and Rescue 22 operate during special events, such as SF Bay Opening Day, Marin Triathlon, and SF Fleet Week, which all require the ability to have navigation and radio equipment. 11 e. If you are not awarded your full request, would your agency be able to supplement the difference?
Yes No
If yes, what percentage can you supplement?
11 f. What other capabilities exist in your region for this equipment? Justify why it is not feasible to borrow this equipment from a neighboring agency.

There are limited to no other capabilities that the San Rafael Police Marine Unit could use. The San Rafael Police Marine Unit is considered the regional asset for the area. This equipment is vital to the operation of the patrol boats themselves and is essential for San Rafael Bay and Creek operations as well as operating in San Pablo Bay. While the Marin Sheriff and the United States Coast Guard have assets that could assist, they often call us to assist them since they have extended response times or no availability. 11 g. How and why did you select this particular model? Explain if this is standard equipment or do you need something specialized for your waterbody to meet your agency's needs? List less expensive models considered and explain why they are not being requested. List other funding sources available to your agency that could be used to purchase or partially purchase this equipment.

The makes and models of the equipment identified are considered reliable and the "standard" for our needs and use and were determined using a respected and trusted vendor. The equipment is also backed by industry-leading manufacturers who provide trusted and quality warranties and service.

There is no other less expensive equipment/makes/models due to it being sub-standard for the rigorous needs of our Marine Unit. 20 and 10-year-old versions of these makes/models are what is being requested for replacement.

There are currently no other funding sources available to the police department. The police department's marine unit funding is currently 321% over budget in just this year alone. SRPD has made it a priority to maintain both boats and due to age and maintenance, the ability to have extra funds for these types of equipment currently does not exist.

Misc. Equipment - Informational
11 h. What body(s) of water will this equipment be used on? San Rafael Bay and Creek, San Pablo Bay, and San Francisco Bay. 11 i. How many hours per month on average will this equipment be used for Boating Safety Enforcement? May through September 500
October through April 500
11 j. Will this equipment be used for anything besides Recreational Boating Safety Enforcement (ie. Junior lifeguard, swimming rescues, enforcing commercial activities, etc.)?
Yes No
Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 46 of 58
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ If YES, complete the table below
List Other Activity (NOT BOATING RELATED

ACTIVITY)
Hours per month on
average this
equipment will be
used for other Activity
Community Police Academy Ride-alongs 1
Law Enforcement Investigations (Homicides, Missing
Persons, Suicides)
2 11 k. Select the PRIMARY purpose this equipment will be used for:

Search and rescue
Enforcement of state and local measures
Inspection of vessels
Recovering drowned bodies
Supervising organized water events
11 l. If Search and Rescue is the primary purpose, list the activity (i.e: recovery of drowned body) and the number of boating-related emergencies this equipment would have been used for last year doing that activity. Do not include NON-BOATING emergencies (i.e: those related to swimmers)

BOATING-RELATED ACTIVITY

NUMBER OF TIMES

NEEDED LAST YEAR
Missing/overdue boats 5
Kayakers and paddle boarders in distress 24
Drowned bodies 2
Vessels run aground or taking on water 15
Misc. Equipment Items Questions (VHF Radios and RDF)

11. Item Details
11 a. Is this equipment general all-purpose gear? NOTE: person-specific items will not be funded.

Yes No
11 b. Describe exactly what you are requesting and how this equipment will help mitigate the boating safety issues you identified in Question 7. If your requested quantity is more than one for any item, explain the need for having multiple items. (max. 2000 characters)
The following equipment is requested for the "Mission City" and "Rescue 22":

VHF Radios and RDFs - This equipment is required to receive and relay information between other vessels and rescue assets. It is also used to warn and notify the general public of known hazards or emergencies. To communicate with people and vessels in distress. The RDF assists with locating the last known points of transmission. This will be essential to for work focused on the top three identified problem areas.

1. 11 c. Describe any negative impacts to boating safety and/or boating enforcement if you do not get this grant.

The equipment for Mission City patrol boat is 20 years old and is beyond its reasonable life span. Most of the equipment cannot be repaired since parts are no longer available. If the Marine Unit does not replace the old VHF Radios and RDF equipment on Mission City, it will not be able to remain in-service to focus on the three main identified problem areas, continue to conduct enforcement operations and respond to search and rescue emergencies.

Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 47 of 58
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ The equipment for Rescue 22 patrol boat faces the same circumstance as Mission City patrol boat. The VHF radios and RDF equipment aboard Rescue 22 is ten years old and becoming a maintenance issue due to no or hard-tofind parts. If the equipment fails to function as needed, then Rescue 22 will need to be taken out of service, and it will not be able to focus on the three main identified problem areas, continue to conduct enforcement operations, and respond to search and rescue emergencies.
11 d. Classify this request
Classify this request by choosing one of the following options and present a strong justification for the request
"Critical" (operations would cease without it)
"Increased efficiency" (if it would save staff time, identify how much time) "Convenience" (it would make life a little easier)
"Protection" of existing equipment (ex: shade tents, hoists to get the vessels out of the water, etc. to extend longevity)
Justify your classification of this request. (max. 300 characters) The VHF Radios and RDF systems for both patrol boats are old and outdated. Both boats will not be able to remain in service when this equipment fails. Both boats will not be able to focus on the three main identified problem areas as well as other missions.

Percentage of time on the water this equipment will be used for:

Activity Percentage
Boating Safety Activities 45
Search and Rescue Activities 45
Other Activities 10
TOTAL 100.00
List any other activities this equipment will be used for: (max 300 characters) Mission City and Rescue 22 operate during special events, such as SF Bay Opening Day, Marin Triathlon, and SF Fleet Week, which all require the ability to have navigation, RADAR, and radio equipment. 11 e. If you are not awarded your full request, would your agency be able to supplement the difference?
Yes No
If yes, what percentage can you supplement? 5
11 f. What other capabilities exist in your region for this equipment? Justify why it is not feasible to borrow this equipment from a neighboring agency.

There are limited to no other capabilities that the San Rafael Police Marine Unit could use. The San Rafael Police Marine Unit is considered the regional asset for the area. This equipment is vital to the operation of the patrol boats themselves and is essential for San Rafael Bay and Creek operations as well as operating in San Pablo Bay. While the Marin Sheriff and the United States Coast Guard have assets that could assist, they often call us to assist them since they have extended response times or no availability. 11 g. How and why did you select this particular model? Explain if this is standard equipment or do you need something specialized for your waterbody to meet your agency's needs? List less expensive models considered and explain why they are not being requested. List other funding sources available to your agency that could be used to purchase or partially purchase this equipment.

The makes and models of the equipment identified are considered reliable and the "standard" for our needs and use Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 48 of 58
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ and were determined using a respected and trusted vendor. The equipment is also backed by industry-leading manufacturers who provide trusted and quality warranties and service.

There is no other less expensive equipment/makes/models due to it being sub-standard for the rigorous needs of our Marine Unit. 20 and 10-year-old versions of these makes/models are what is being requested for replacement.

There are currently no other funding sources available to the police department. The police department's marine unit funding is currently 321% over budget in just this year alone. SRPD has made it a priority to maintain both boats and due to age and maintenance, the ability to have extra funds for these types of equipment currently does not exist.

Misc. Equipment - Informational
11 h. What body(s) of water will this equipment be used on? San Rafael Bay and Creek, San Pablo Bay, and San Francisco Bay 11 i. How many hours per month on average will this equipment be used for Boating Safety Enforcement? May through September 600
October through April 500
11 j. Will this equipment be used for anything besides Recreational Boating Safety Enforcement (ie. Junior lifeguard, swimming rescues, enforcing commercial activities, etc.)?
Yes No
If YES, complete the table below
List Other Activity (NOT BOATING RELATED

ACTIVITY)
Hours per month on
average this
equipment will be
used for other Activity
Community Police Academy Ride-alongs 1
Law Enforcement Investigations (Homicides, Missing
Persons, Suicides)
2 11 k. Select the PRIMARY purpose this equipment will be used for:

Search and rescue
Enforcement of state and local measures
Inspection of vessels
Recovering drowned bodies
Supervising organized water events
11 l. If Search and Rescue is the primary purpose, list the activity (i.e: recovery of drowned body) and the number of boating-related emergencies this equipment would have been used for last year doing that activity. Do not include NON-BOATING emergencies (i.e: those related to swimmers)

BOATING-RELATED ACTIVITY

NUMBER OF TIMES

NEEDED LAST YEAR
Missing/overdue boats 5
Kayakers and paddle boarders in distress 24
Drowned bodies 2
Vessels run aground or taking on water 15
Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 49 of 58
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ Misc. Equipment Items Questions (Thermal Imaging Camera)

11. Item Details
11 a. Is this equipment general all-purpose gear? NOTE: person-specific items will not be funded.

Yes No
11 b. Describe exactly what you are requesting and how this equipment will help mitigate the boating safety issues you identified in Question 7. If your requested quantity is more than one for any item, explain the need for having multiple items. (max. 2000 characters)
Mission City patrol needs the following:

Thermal imaging camera system - This equipment is required for search and rescue missions. This equipment will aid in the identified problem areas of (2) searching for missing people and vessels, and (3) search and rescue missions involving missing people and vessels.

1. 11 c. Describe any negative impacts to boating safety and/or boating enforcement if you do not get this grant.

The equipment for Mission City patrol boat is 20 years old and is beyond its reasonable life span. Most of the equipment cannot be repaired since parts are no longer available. If the Marine Unit does not replace the old thermal imaging camera equipment on Mission City, it will be limited or unable to properly function as a search and rescue asset. The majority of search and rescue missions seem to occur during low visibility or nighttime. The equipment greatly assists in extending search capabilities. 11 d. Classify this request
Classify this request by choosing one of the following options and present a strong justification for the request
"Critical" (operations would cease without it)
"Increased efficiency" (if it would save staff time, identify how much time) "Convenience" (it would make life a little easier)
"Protection" of existing equipment (ex: shade tents, hoists to get the vessels out of the water, etc. to extend longevity)
Justify your classification of this request. (max. 300 characters) The thermal imaging equipment for Mission City patrol boat is very old and likely to fail at any time. Mission City will be limited and unable to support low-visibility/night-time search and rescue missions.

Percentage of time on the water this equipment will be used for:

Activity Percentage
Boating Safety Activities 20
Search and Rescue Activities 80
Other Activities 0
TOTAL 100.00
List any other activities this equipment will be used for: (max 300 characters) Potentially for law enforcement missions involving searches for suspects during case and arrest missions. 11 e. If you are not awarded your full request, would your agency be able to supplement the difference?
Yes No
Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 50 of 58
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ If yes, what percentage can you supplement?
11 f. What other capabilities exist in your region for this equipment? Justify why it is not feasible to borrow this equipment from a neighboring agency.

There are limited to no other capabilities that the San Rafael Police Marine Unit could use. The San Rafael Police Marine Unit is considered the regional asset for the area. This equipment is vital to the operation of the patrol boats themselves and is essential for San Rafael Bay and Creek operations as well as operating in San Pablo Bay. While the Marin Sheriff and the United States Coast Guard have assets that could assist, they often call us to assist them since they have extended response times or no availability. 11 g. How and why did you select this particular model? Explain if this is standard equipment or do you need something specialized for your waterbody to meet your agency's needs? List less expensive models considered and explain why they are not being requested. List other funding sources available to your agency that could be used to purchase or partially purchase this equipment.

The makes and models of the equipment identified are considered reliable and the "standard" for our needs and use and were determined using a respected and trusted vendor. The equipment is also backed by industry-leading manufacturers who provide trusted and quality warranties and service.

There is no other less expensive equipment/makes/models due to it being sub-standard for the rigorous needs of our Marine Unit. 20 and 10-year-old versions of these makes/models are what is being requested for replacement.

There are currently no other funding sources available to the police department. The police department's marine unit funding is currently 321% over budget in just this year alone. SRPD has made it a priority to maintain both boats and due to age and maintenance, the ability to have extra funds for these types of equipment currently does not exist.

Misc. Equipment - Informational
11 h. What body(s) of water will this equipment be used on? San Rafael Bay and Creek, San Pablo Bay, San Francisco Bay 11 i. How many hours per month on average will this equipment be used for Boating Safety Enforcement? May through September 40
October through April 40
11 j. Will this equipment be used for anything besides Recreational Boating Safety Enforcement (ie. Junior lifeguard, swimming rescues, enforcing commercial activities, etc.)?
Yes No
If YES, complete the table below
List Other Activity (NOT BOATING RELATED

ACTIVITY)
Hours per month on
average this
equipment will be
used for other Activity
Law Enforcement Investigations (Homicides, Missing
Persons, Suicides)
2 11 k. Select the PRIMARY purpose this equipment will be used for:

Search and rescue
Enforcement of state and local measures
Inspection of vessels
Recovering drowned bodies
Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 51 of 58
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ Supervising organized water events
11 l. If Search and Rescue is the primary purpose, list the activity (i.e: recovery of drowned body) and the number of boating-related emergencies this equipment would have been used for last year doing that activity. Do not include NON-BOATING emergencies (i.e: those related to swimmers)

BOATING-RELATED ACTIVITY

NUMBER OF TIMES

NEEDED LAST YEAR
Missing/overdue boats 5
Kayakers and paddle boarders in distress 24
Vessels run aground or taking on water 15
Misc. Equipment Items Questions (Side Scanning SONAR)

11. Item Details
11 a. Is this equipment general all-purpose gear? NOTE: person-specific items will not be funded.

Yes No
11 b. Describe exactly what you are requesting and how this equipment will help mitigate the boating safety issues you identified in Question 7. If your requested quantity is more than one for any item, explain the need for having multiple items. (max. 2000 characters)
Mission City boat patrol needs the following:

Side scanning SONAR - This equipment is required for submerged vessels, bodies, vehicles, and artifacts. This will aid with (3) search and rescue missions involving missing people and vessels.

1. 11 c. Describe any negative impacts to boating safety and/or boating enforcement if you do not get this grant.

The equipment for Mission City patrol boat is 20 years old and is beyond its reasonable life span. Most of the equipment cannot be repaired since parts are no longer available. If the Marine Unit does not replace the old side scanning SONAR equipment on Mission City, it will not be able to conduct or support search and rescue and law enforcement-specific missions where this equipment has been found to be essential in homicides, vehicles into the water, downed aircraft, body recovery, and article searches. Mission City patrol boat is considered a regional asset for this equipment.
11 d. Classify this request
Classify this request by choosing one of the following options and present a strong justification for the request
"Critical" (operations would cease without it)
"Increased efficiency" (if it would save staff time, identify how much time) "Convenience" (it would make life a little easier)
"Protection" of existing equipment (ex: shade tents, hoists to get the vessels out of the water, etc. to extend longevity)
Justify your classification of this request. (max. 300 characters) The side scanning SONAR equipment for Mission City patrol boat is very old and likely to fail at any time.

Mission City will be limited and unable to conduct search and rescue missions, such as drowned bodies, vehicles into the water, downed aircraft, article searches, and more.

Percentage of time on the water this equipment will be used for:

Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 52 of 58
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ Activity Percentage
Boating Safety Activities 0
Search and Rescue Activities 100
Other Activities 0
TOTAL 100.00
List any other activities this equipment will be used for: (max 300 characters) It can be used to support law enforcement missions involving suspicious incidents and case investigations.

Additionally, we will be able to provide a regional asset for other partnering agencies. 11 e. If you are not awarded your full request, would your agency be able to supplement the difference?
Yes No
If yes, what percentage can you supplement?
11 f. What other capabilities exist in your region for this equipment? Justify why it is not feasible to borrow this equipment from a neighboring agency.

There are limited to no other capabilities that the San Rafael Police Marine Unit could use. The San Rafael Police Marine Unit is considered the regional asset for the area. This equipment is vital to the operation of the patrol boats themselves and is essential for San Rafael Bay and Creek operations as well as operating in San Pablo Bay. While the United States Coast Guard have assets that could assist, they often call us to assist them since they have extended response times or no availability.
11 g. How and why did you select this particular model? Explain if this is standard equipment or do you need something specialized for your waterbody to meet your agency's needs? List less expensive models considered and explain why they are not being requested. List other funding sources available to your agency that could be used to purchase or partially purchase this equipment.

The makes and models of the equipment identified are considered reliable and the "standard" for our needs and use and were determined using a respected and trusted vendor. The equipment is also backed by industry-leading manufacturers who provide trusted and quality warranties and service.

There is no other less expensive equipment/makes/models due to it being sub-standard for the rigorous needs of our Marine Unit. 20 and 10-year-old versions of these makes/models are what is being requested for replacement.

There are currently no other funding sources available to the police department. The police department's marine unit funding is currently 321% over budget in just this year alone. SRPD has made it a priority to maintain both boats and due to age and maintenance, the ability to have extra funds for these types of equipment currently does not exist.

Misc. Equipment - Informational
11 h. What body(s) of water will this equipment be used on? San Rafael Bay and Creek, San Pablo Bay, San Francisco Bay 11 i. How many hours per month on average will this equipment be used for Boating Safety Enforcement? May through September 5
October through April 5
11 j. Will this equipment be used for anything besides Recreational Boating Safety Enforcement (ie. Junior lifeguard, swimming rescues, enforcing commercial activities, etc.)?
Yes No
Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 53 of 58
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ If YES, complete the table below
List Other Activity (NOT BOATING RELATED

ACTIVITY)
Hours per month on
average this
equipment will be
used for other Activity
11 k. Select the PRIMARY purpose this equipment will be used for:

Search and rescue
Enforcement of state and local measures
Inspection of vessels
Recovering drowned bodies
Supervising organized water events
11 l. If Search and Rescue is the primary purpose, list the activity (i.e: recovery of drowned body) and the number of boating-related emergencies this equipment would have been used for last year doing that activity. Do not include NON-BOATING emergencies (i.e: those related to swimmers)

BOATING-RELATED ACTIVITY

NUMBER OF TIMES

NEEDED LAST YEAR
Missing/overdue boats 5
Drowned bodies 2
Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 54 of 58
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ 12 Previous BSEE Grants
FY 21/22 FY 20/21 FY 19/20
Did your agency apply for a BSEE grant ? No No No
Were you awarded a BSEE grant? (leave blank if
No)
Amount awarded: (List amount or leave blank if
No or NA)
Amount reimbursed: (List amount or leave blank if
No or NA)
List the equipment purchased: (List leave
blank if No or NA)
Boating Safety and Enforcement Income

13. Revenue and Expenditures
Boat Tax Revenue 0.00
Other Revenue:
a) Other local revenue sources: (Example: launching facilities, campgrounds, parking, anything that goes toward marine
patrol support)

0.00 b) Any State boating funding sources, including DBW subvention/financial aid:

0.00 TOTAL ANNUAL BOATING INCOME IN YOUR OPERATING
BUDGET

0.00 TOTAL EXPENDITURES FOR BOATING SAFETY AND

ENFORCEMENT
22,000.00

14. If you participated in the subvention/financial aid program, were all allocated funds expended in the previous closed year?
Yes No NA
If NO, state percentage of remaining funds.

Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 55 of 58
Budget Detail for Boating Safety and Enforcement Equipment Grant - FY 2023 / 24

Agency: City of San Rafael

Application: Boating Safety and Enforcement Equipment Grant - FY 2023 / 24 ________________________________________________________________________________________________________________ Line Item Qty Rate UOM Total Req Amount 1 Patrol Boat2 Equipment
RADAR Systems 2.0000 9151.500 SET 18,303.00 18,303.00Navigation/GPS/Chart Plot 2.0000 14706.000 SET 29,412.00 29,412.00VHF Radios and RDF 2.0000 14192.000 SET 28,384.00 28,384.00Thermal Imaging Camera 0.0000 0.000 SET 0.00 0.00Side Scanning SONAR 0.0000 0.000 SET 0.00 0.00 Total for Equipment 76,099.00 76,099.00
3 Adjustment
TOTAL EXPENDITURES 76,099.00 76,099.00
Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 ________________________________________________________________________________________________________________ Page: 56 of 58 Budget Summary for Boating Safety and Enforcement Equipment Grant - FY 2023 / 24

Agency: City of San Rafael

Application: Boating Safety and Enforcement Equipment Grant - FY 2023 / 24 ________________________________________________________________________________________________________________ Category Total Req Amount Narrative 1 Patrol Boat 0.00 0.002 Equipment 76,099.00 76,099.003 Adjustment 0.00 0.00 TOTAL EXPENDITURES 76,099.00 76,099.00
Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 ________________________________________________________________________________________________________________ Page: 57 of 58 Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ Applicant Certification
a. Under penalty of perjury, I certify that I have examined this application and the document(s), proposal(s), and statement(s) submitted in conjunction herewith, and that to the best of my information and belief, the information contained herein is true, accurate, correct, and complete. b. I certify that I am the person authorized to submit this application on behalf of the applicant.

Name: Justin Graham
Title: Police Sergeant
Date Signed: 04/27/202
3 Contract # C23L0605, City of San Rafael, Boating Safety and Enforcement Equipment Grant - FY 2023 / 24, Date: 09/05/2023 __________________________________________________________________________ Page: 58 of 58
____________________________________________________________________________________

FOR CITY CLERK ONLY
Meeting Date:

Disposition:

Agenda Item No: 4.h
Meeting Date: November 20, 2023

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Police Department
Prepared by: D.C. Spiller, Police Chief City Manager Approval: ______ TOPIC: POLICE ACCOUNTABILITY AND ADVISORY COMMITTEE
SUBJECT: RESOLUTION REPEALING AND REPLACING RESOLUTION 15525

ESTABLISHING THE CITY OF SAN RAFAEL POLICE

ACCOUNTABILITY AND ADVISORY COMMITTEE
RECOMMENDATION: Adopt a resolution repealing and replacing Resolution 15525 establishing the City of San Rafael Police Accountability and Advisory Committee (PAAC).

BACKGROUND:

On June 5, 2023, the City Council adopted Resolution 15525, establishing the Police Accountability and Advisory Committee. The Resolution indicated the City Council would select the initial Chair and Vice Chair of the Committee. Typically, under San Rafael’s Boards, Commissions, and Committees Rules and Procedures, committees select their Chair and Vice Chair for the inaugural year of the committee, and staff recommends this practice for the PAAC.

ANALYSIS:

Staff recommends the City Council adopt a resolution repealing and replacing Resolution 15525, removing the City Council’s appointment of the Chair and Vice Chair of the Committee. With this change, the PAAC will have the authority to appoint its Chair and Vice Chair for the inaugural year of the Committee, consistent with San Rafael’s Boards, Commissions, and Committees Rules and Procedures.

RECOMMENDED ACTION: Adopt a resolution repealing and replacing Resolution 15525 establishing the City of San Rafael Police Accountability and Advisory Committee (PAAC).

ATTACHMENTS:

1. Resolution
1 RESOLUTION NO.

RESOLUTION REPEALING AND REPLACING RESOLUTION 15525 ESTABLISHING THE

CITY OF SAN RAFAEL POLICE ACCOUNTABILITY AND ADVISORY COMMITTEE WHEREAS, the City of San Rafael City Council adopted Resolution 15525 on June 5, 2023; and
WHEREAS, the resolution provided authority to the City Council to appoint the Chair and Vice Chair of the initial Committee; and
WHEREAS, staff recommends the Committee appoint its Chair and Vice Chair, consistent with the rules outlined in San Rafael’s Board, Commission and Committees Rules and Procedures.

NOW, THEREFORE, BE IT RESOLVED, by the San Rafael City Council repeal and replace Resolution 15525 as follows:

1. The City of San Rafael Police Accountability and Advisory Committee is hereby established as an advisory committee to the City Council to improve public transparency and accountability with respect to the San Rafael Police Department and provide greater community participation in making recommendations on police department policies, practices, and procedures.

2. The Committee will be comprised of seven members appointed by the City Council and may include alternate(s). Committee members must be City of San Rafael residents, who have pledged to be impartial, unbiased, and objective. The membership of the Committee should be inclusive and reflective of community members of diverse backgrounds including but not limited to race, ethnicity, age, gender identity, sexual orientation, economic status, and various communities of interest. Committee members must be City of San Rafael residents at least 18 years old (except for one designated seat for a youth member between ages of 17-26) Members are not required to have any specialty knowledge or particular skills to be eligible.

3. Each Committee member will serve a term of four (4) years, except for certain initial appointments which will be shorter to ensure that the terms are staggered, and not all of the appointments expire in the same year. Members will be limited to two consecutive four-year terms.

4. The City Clerk is hereby authorized to conduct an open, community-wide call for applications for Committee members.

5. The Police Accountability and Advisory Committee shall be governed by the City of San Rafael Boards, Commissions and Committees Rules and Procedures, adopted by the City Council by resolution in March 2023 (Resolution 15196). Staff will propose Police Accountability and Advisory Committee bylaws for City Council adoption at a future date following further community engagement. The bylaws will include specific details regarding responsibilities and meeting frequencies of the Committee. 2 I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City held on Monday, the 20th day of November 2023, by the following vote, to wit:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

Lindsay Lara, City Clerk
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting: _______________________
Disposition: ___________________________
Agenda Item No: 4.i
Meeting Date: November 20, 2023

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Police Department
Prepared by: Alex Holm, Police Lieutenant City Manager Approval: ______________ TOPIC: OFFICE OF TRAFFIC SAFETY GRANT APPROVAL
SUBJECT: RESOLUTION APPROVING THE ACCEPTANCE AND APPROPRIATION OF STATE

OF CALIFORNIA OFFICE OF TRAFFIC SAFETY GRANT FUNDS IN THE AMOUNT OF $69,000 FOR THE “SELECTIVE TRAFFIC ENFORCEMENT PROGARM” (“STEP”) GRANT FROM OCTOBER 1, 2023, THROUGH SEPTEMBER 30, 2024, AND

AUTHORIZING THE CITY MANAGER TO EXECUTE A GRANT AGREEMENT AND ANY OTHER DOCUMENTS RELATED TO THE GRANT.

RECOMMENDATION:

Adopt the resolution approving the acceptance and appropriation of State of California Office of Traffic Safety grant funds in the amount of $69,000 for the “Selective Traffic Enforcement Program” (STEP) grant from October 1, 2023 through September 30, 2024, and authorizing the City Manager to execute the grant agreement and any other documents related to the grant.

BACKGROUND:

Over the last twenty years, the Office of Traffic Safety (OTS) of the State of California has awarded over two million dollars in traffic safety grants to the City of San Rafael. These grants have included the Marin County “Avoid the Marin 13” Driving Under the Influence (DUI)/ Driver’s License (DL) campaign, “Click it or Ticket” grants, DUI mini-grants, DUI Enforcement and Awareness grants, and STEP grants. Each grant has provided critical traffic enforcement and education operations by funding the deployment of officers for DUI / DL checkpoints, DUI saturation patrols, red light and speed enforcement, seat belt enforcement, and distracted driving enforcement. Currently, the only available funding is through the STEP grant program. This development has greatly reduced our funding for traffic and DUI enforcement activities.

Over the last several years, the San Rafael Police Department (SRPD) has staffed two full-time traffic enforcement officers and one traffic sergeant. Due to staffing constraints, the two full-time traffic officers have been reassigned to patrol teams to ensure minimum staffing requirements. The traffic sergeant remains in the traffic unit and performs collateral administrative duties. The SRPD has encouraged patrol officers and traffic officers to conduct enforcement focused on reducing alcohol and speed-related SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
collisions and increasing pedestrian and bicycle safety. The SRPD community outreach and social media teams regularly disseminate traffic safety information in a bilingual format.

ANALYSIS:

OTS has approved a grant of $69,000 to the City of San Rafael. The project goal of this OTS grant is to reduce the number of people killed and injured in traffic collisions. Areas of focus include alcohol and drug-involved collisions, as well as other primary collision factors. The SRPD will implement “best practice” strategies through education and enforcement. The grant will provide the necessary resources for traffic enforcement, education operations, and advanced officer training.

Accepting and implementing this $69,000 grant is critical to maintaining traffic safety levels in San Rafael.

A review of collision data from the previous three years has indicated that most of the collisions within San Rafael occurred due to unsafe turns, excessive/unsafe speed, red-light violations, and driving under the influence of drugs and/or alcohol. The SRPD recognizes that additional education and enforcement are needed to reduce these numbers.

The SRPD encourages patrol and traffic officers to conduct focused enforcement to reduce alcohol, drug, pedestrian, and speed-related collisions. However, current staffing levels inherently limit the frequency of more proactive traffic enforcement efforts because officers are primarily focused on responding to emergency calls for service.

Should the City Council approve this grant, the SRPD will have the resources to implement enforcement programs including, but not limited to, various safety and awareness campaigns and enforcement operations. The grant also includes funding for advanced officer training and enforcement operations for distracted driving and bicycle/pedestrian safety, among others. Operations for this grant will be scheduled between October 1, 2023, and September 30, 2024.

The SRPD will report statistics quarterly to the Office of Traffic Safety, and the grant will be evaluated based on how well the stated goals and objectives were accomplished.

FISCAL IMPACT:

The grant funding will be received into the Grant Fund – Safety (Fund #281) and will be appropriated for operational expenses such as overtime costs, travel, and training associated with the focused enforcement of traffic safety, up to the total proceeds of the grant of $69,000.

OPTIONS:

The City Council has the following options to consider on this matter:

1. Adopt the resolution as presented.

2. Adopt the resolution with modifications.

3. Direct staff to return with more information.

4. Take no action.

RECOMMENDED ACTION:

Adopt the resolution approving the acceptance and appropriation of State of California Office of Traffic Safety grant funds in the amount of $69,000 for the “Selective Traffic Enforcement Program” (STEP) grant from October 1, 2023, through September 30, 2024, and authorizing the City Manager to execute the grant agreement and any other documents related to the grant.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
ATTACHMENTS:

1. Resolution

2. Year 2023/2024 California Office of Traffic Safety Selective Traffic Enforcement Program Grant.

RESOLUTION NO.

RESOLUTION APPROVING THE ACCEPTANCE AND APPROPRIATION OF

STATE OF CALIFORNIA OFFICE OF TRAFFIC SAFETY GRANT FUNDS IN THE AMOUNT OF $69,000 FOR THE “SELECTIVE TRAFFIC ENFORCEMENT PROGARM” (“STEP”) GRANT FROM OCTOBER 1, 2023 THROUGH SEPTEMBER 30, 2024, AND AUTHORIZING THE CITY MANAGER TO EXECUTE A GRANT AGREEMENT AND ANY OTHER DOCUMENTS RELATED TO THE GRANT.

Whereas, the State of California, Office of Traffic Safety has tentatively approved a grant to the City of San Rafael in the amount of $69,000; and Whereas, the grant funds may be spent to pay overtime costs, travel and equipment purchase associated with the Selective Traffic Enforcement Program (“STEP”) Grant Program to mitigate traffic safety program deficiencies and expand ongoing activity; and
Whereas, to improve traffic safety, the San Rafael Police Department will use the STEP Grant funds for education campaigns, DUI saturation patrols, DUI repeat offender identification, distracted driving enforcement, traffic safety educational presentations, pedestrian/bicycle enforcement operations; and Whereas, the Police Department will use the STEP Grant funds for overtime personnel costs of Captains, Lieutenants, Sergeants, Corporals, Officers, Community Service Officers, Dispatchers and Cadets incurred in connection with the enforcement activities, including training and travel and expenses related to enforcement activities; and
NOW, THEREFORE BE IT RESOLVED, that the City Council approves the acceptance and appropriation of $69,000 in State of California Office of Traffic Safety Selective Traffic Enforcement Program funds to be appropriated in a Grant Fund; and authorizes the City Manager to execute a Grant Agreement and any documents related to the Grant.

I, Lindsay Lara, City Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council held on the 20th day of November 2023 by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

Lindsay Lara, City Clerk

____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 4.j
Meeting Date: November 20, 2023

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Police Department
Prepared by: Alex Holm, Lieutenant City Manager Approval: ______________ TOPIC: SPECIAL EVENT STREET CLOSURE
SUBJECT: RESOLUTION AUTHORIZING THE TEMPORARY CLOSURE OF STREETS FOR THE

SAN RAFAEL WINTER WONDERLAND EVENT
RECOMMENDATION: Adopt the resolution authorizing the temporary closure of streets in San Rafael for the San Rafael Winter Wonderland Event.

BACKGROUND:

The San Rafael Police Department (SRPD) received a special event application requiring road closures.

California Vehicle Code section 21101(e) authorizes the City to adopt a resolution temporarily closing a portion of any street for celebrations, parades, local special events, and other purposes when, in the opinion of local authorities having jurisdiction or a public officer or employee that the local authority designates by resolution, the closing is necessary for the safety and protection of persons who are to use that portion of the street during the temporary closing.

ANALYSIS:

The Police Department reviewed the special event application for the San Rafael Winter Wonderland event.

Event producers for the event must obtain an encroachment permit, fulfill insurance requirements to indemnify the City from liability associated with the event, and provide detailed information regarding the operation, logistics, and activities included in the event. The permitting process includes submission of street closure diagrams and traffic control plans that are used to develop internal plans including event staffing, required signage, infrastructure, and other needs.

The Police Chief has the authority to approve special event permits if all the above obligations are met by the applicants. Since these events require temporary road closures, the City Council must consider the matter before the special event permit can be approved. The Police Chief recommends the adoption of the attached resolution authorizing the temporary road closures. Information regarding the event is summarized on the following page.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
Event: San Rafael Winter Wonderland Event
Date: November 25, 2023 (Saturday)
Details: The Downtown San Rafael Business Improvement District will host the Annual Winter Wonderland and Holiday Maker’s Market. This family-friendly event and merchant open house attracts residents and visitors throughout the Bay Area.

There will be holiday entertainment and musical performances along Fourth Street and activities for children. There will not be a lighted car parade this year.

Closure
Location(s): Fourth Street from A Street to Lincoln Avenue, Lootens Place from Fifth Avenue to Commercial Place, and Cijos Street from Fourth Street to Commercial Place.

Event Time: 12:00 p.m. – 6:00 p.m.

Closure Time: 10:00 a.m. – 7:00 p.m.

COMMUNITY OUTREACH:

If approved, the applicants must conduct outreach to neighboring merchants, businesses, residents, and the general public to notify them of the impacts of their events. The Police Department will utilize social media accounts to notify the general for traffic planning purposes of any street closures.

FISCAL IMPACT:

The San Rafael Police Department will be providing in-kind law enforcement services to include two police officers during the closure period, valued at approximately $2,340. The Department of Public Works will be providing in-kind road closure services, valued at approximately $500. The City’s Economic Development Department’s budget will fund $6,500 of the associated event costs. The event producer will be responsible for entertainment, tree lighting equipment and infrastructure, event equipment, and other associated costs.

OPTIONS:

The City Council has the following options to consider on this matter:

1. Adopt the resolution.

2. Adopt resolution with modifications.

3. Direct staff to return with more information.

4. Take no action.

RECOMMENDED ACTION:

Adopt the resolution authorizing the temporary closure of streets in San Rafael for the San Rafael Winter Wonderland Event.

ATTACHMENTS:

1. Resolution
RESOLUTION NO.

RESOLUTION OF THE SAN RAFAEL CITY COUNCIL AUTHORIZING THE TEMPORARY CLOSURE

OF STREETS FOR A SPECIAL EVENT
WHEREAS, it is in the best interests of public health and safety to implement modified traffic plans and road closures for certain special events in San Rafael and nearby neighborhoods; and WHEREAS, after reviewing plans for the proposed San Rafael Winter Wonderland, City staff recommend that certain streets be closed to accommodate this special event for the safety and protection of persons who are to use that portion of the streets during the temporary closings.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL HEREBY RESOLVES as follows:

1. Pursuant to the authority of Vehicle Code section 21101(e), the City Council hereby authorizes the temporary closure of streets in downtown San Rafael to accommodate the San Rafael Winter Wonderland Event. These authorized road closures are necessary for the safety and protection of persons who are to use that portion of the streets during the temporary closings.

2. City staff in consultation with the Police Department shall determine the specific time periods for the temporary closures and give timely notice to the public of those time periods by signage and/or other appropriate means.

I, Lindsay Lara, City Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council held on the 20th day of November 2023 by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

Lindsay Lara, City Clerk
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 5.a
Meeting Date: November 20, 2023

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Finance
Prepared by: Paul Navazio,
Finance Director
City Manager Approval: __________
TOPIC: YEAR-END AUDITED FINANCIAL STATEMENTS AND RELATED AUDIT

REPORTS
SUBJECT: FISCAL YEAR 2022-23 ANNUAL COMPREHENSIVE FINANCIAL REPORT; MEMORANDUM ON INTERNAL CONTROL; REPORT OF REQUIRED
COMMUNICATIONS; CHILD DEVELOPMENT PROGRAM FINANCIAL
REPORT; AND GANN APPROPRIATIONS LIMIT
RECOMMENDATIONS:

Accept the Fiscal Year 2022-23 Annual Comprehensive Financial Report, Memorandum on Internal Control, Report of Required Communications, Child Development Program Financial Report, and GANN Appropriations Limit Report.

BACKGROUND:

As required by local code, State law, and bond covenants, as well as best practices, the City of San Rafael completes an annual independent audit of its financial activities. The auditing firm of Maze and Associates, Accountancy Corporation, conducted the FY 2022-23 audit. Their work was completed in accordance with generally accepted auditing standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget Circular A-133, Audits of State and Local Government and Non-Profit Organizations. The draft Comprehensive Annual Financial Report for the fiscal year ending June 30, 2023FY 2022-23 is included as Attachment 1 to this staff report.

The auditors have also prepared a Memorandum on Internal Control to address the City’s control over its financial activities. In addition, the requirements of Section 1.5 of Article XIIIB of the California Constitution are met with an agreed-upon procedure report applied to the Gann Appropriation Limit calculated for the year ending June 30, 2024. These reports are included as Attachments 2-5 to this staff report.

As part of the fiscal year-end activities, the Finance and Library & Recreation departments worked with the auditors to complete the annual audit of the City’s childcare program, as required by the State of California.

For the year ending June 30, 2023, the City did not receive funds under the purview of the Transportation Development Act. Therefore, no separate audit report was completed to satisfy the requirements of the State of California pertaining to these funds.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
ANALYSIS:

Fiscal Year 2022-23 Annual Comprehensive Financial Report – City-wide Financial Results The independent auditor has issued an unqualified opinion relative to the City’s financial statements for the fiscal year ending June 30, 2023. This opinion states that the financial statements present fairly, in all material respects, the City’s financial position. The audited results of the City’s financial activities for the fiscal year ending June 30, 2023, are presented in the attached Annual Comprehensive Financial Report (ACFR). Please refer to Attachment 1 for more information.

The report includes Government-wide financial statements with governmental and business-type activities presented separately. At the end of the fiscal year, the net position of the City’s governmental activities, inclusive of all governmental funds, all assets of the City (including infrastructure), and all liabilities (including long-term debt) was $281.5 million, an increase of $47.3 million from the prior year adjusted balance.

This increase is attributable to several factors. First, Pension and Other Post-Employment Benefits (OPEB) adjustments, based mainly on fiscal year 2021-22 activity, and the impact of market gains achieved on investments during the measurement period. These adjustments resulted in a reduced cumulative impact of both pension and OPEB liabilities on the financial statements as a whole.

Also significantly impacting the increase was the capitalization of large-scale public works projects, namely the Third Street improvement project, during the year. This has the impact of both increasing capital assets in the asset section of the balance sheet as well as the net investment in capital assets in the net position section. To a lesser extent, the net position was impacted by positive results from strong sales and use tax and property tax rolls combined with SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
reduced personnel expenses resulting from position vacancies. The Parking Fund reported as a business-type activity, ended the fiscal year with a net position of $10.8 million, or $0.7 million greater than the previous fiscal year. The increase was mainly due to the aforementioned pension and OPEB adjustments as operational results remain subdued from the lingering impacts of the COVID-19 pandemic.

Additional explanatory information is provided in the Management’s Discussion and Analysis (MD&A) section beginning on page five of the attached ACFR. The MD&A provides key highlights and a summary view of financial activities for the year.

Financial Results: General Fund
General Fund expenditures and transfers out exceeded revenues and transfers by $6.0 million, mainly due to the utilization of American Rescue Plan Act funds received in the prior year for major projects. This was partially offset by continued growth in the City’s major revenue sources and significantly reduced personnel costs resulting from position vacancies.

The fund balance of the General Fund as of June 30, 2023, was $27.8 million (a decrease of $6.0 million from the prior year’s balance): $78 thousand is non-spendable, $9.8 million is committed, $17.3 million is assigned, and $0.7 million is unassigned. The committed portion of $9.8 million is for emergency and cash flow needs, which meets the minimum target reserve levels at 10% of general fund operating expenditures.

Memorandum on Internal Control
As a component of the annual financial audit, the auditors are required to communicate matters related to internal controls that may impact the accuracy of the City’s financial statements to the City Council. The auditor’s Memorandum on Internal Control (Attachment 2) identifies findings deemed to be either material weaknesses, significant deficiencies, or “other matters.” The Memorandum on Internal Control issued with the audit of the financial statements for the fiscal year ended June 30, 2023, does not identify any material weaknesses or significant deficiencies. However, the memorandum notes that two “Other Matters” that were identified in the prior year’s audit were not addressed by management as of June 30, 2023, and are summarized as follows:
• Finding 2022-01 – Inaccurate Building Permit Fees. Over the course of the two prior fiscal years, the auditors noted that the rates charged within the City’s permit billing system Adopted Budget Revised Budget Actual
Revenues $96,768 $98,268 $98,099
Transfers in 1,770 1,131 1,131
Total resources 98,538 99,399 99,230
Expenditures 92,971 $94,447 88,450
Operating transfers out 3,307 13,486 13,486
Capital transfers out - 3,307 3,307
Total uses 96,278 111,240 105,243
Net Results $2,260 ($11,841) ($6,013)
Summary of General Fund Budget and Actual
For the fiscal year ended June 30, 2023 (in thousands)
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
did not match the rates published in the City’s Master Fee Schedule. Management had noted that the permit fees being charged were correct and that this matter stemmed from the City not having updated its formal Master Fee Schedule. While this issue remained “unresolved” as of June 30, 2023, management notes that the City Council took action to adopt the City’s updated Master Fee schedule at their meeting on July 3, 2023. This matter is thus resolved.
• Finding 2022-2 – Purchasing Policy Compliance and Clarification of Requirements. This finding resulted in a recommendation from the independent auditor that the City review and update its Purchasing Policy to clarify requirements for the use of purchase orders and contracts and review internal controls to ensure practices comply with the City’s policy. In their Memorandum of Internal Controls, the auditor notes that this matter has not yet been fully addressed by management.

Management’s response (included in the Memorandum of Internal Control):

Management concurs with the need to update the City’s Purchasing Policy and procedures to ensure an appropriate level of internal controls, compliance with policy requirements, and alignment with best practices. This effort has been hampered by staff turnover, vacancies in key positions, and competing priorities.

Current management has prioritized the review of purchasing and contract administration protocols, including updating policies, documentation of procedures, staff training, and better utilization of the City’s financial ERP system to monitor approvals, activity, and compliance.

Required Communications
Professional standards require that certain information regarding significant audit findings related to the audit be communicated to those charged with governance. These communications include minor changes to accounting policies, new accounting pronouncements, and a discussion of significant accounting estimates, among other items. No adverse communications were noted.

Please refer to Attachment 3 for more information.

Child Development Program (Childcare) Financial Report
As a recipient of Childcare program grant funds from the California Department of Education, the City is required to engage the independent auditor to review report on the receipt and use of these funds as part of the annual financial audit. The Childcare Program has endured three consecutive years of subdued results following the COVID-19 pandemic, drawing the fund balance from $1.7 million down to $352 thousand on June 30, 2022. In FY 2022-23, results have turned positive with a $259 thousand increase in fund balance stemming from increased program enrollment and grant augmentations. The program ended the year with $3.9 million in total revenues and $3.7 million in total expenditures, resulting in an ending fund balance of $611 thousand. The audit resulted in no adverse findings. Please refer to Attachment 4 for more information.

Gann Appropriations Limit Compliance Report
This report is prepared by the City’s independent auditor to validate the calculation of the annual adjustment to the City’s annual appropriations limit, pursuant to Article XIIIB of the State Constitution. The resultant, so called, Gann Limit, establishes the maximum amount of adjusted appropriations that may be included in the annual budget. The Agreed-Upon Procedures report for the Gann Appropriations Limit (Attachment 5) required three procedures to be performed, including testing the accuracy of the calculations and comparison of information presented.

FISCAL IMPACT:

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5
No fiscal impact occurs by the City Council’s acceptance of these reports. The fiscal year 2022- 23Annual Comprehensive Financial Report and related reports are presented as the actual results of the City and related entities’ financial activities for the year.

RECOMMENDED ACTION:

Accept the Fiscal Year 2022-23 Annual Financial Report, Memorandum on Internal Control, Report of Required Communications, Child Development Program Financial Report, and GANN Appropriations Limit Report.

ATTACHMENTS:

1. FY 2022-23 Draft Annual Comprehensive Financial Report

2. FY 2022-23 Draft Memorandum of Internal Controls

3. FY 2022-23 Draft Required Communications

4. FY 2022-23 Draft Child Development Program Financial Report

5. FY 2022-23 Draft Gann Appropriations Limit Compliance Report

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDING JUNE 30, 2023
UC Marin Master Gardener Greenhouse, San Rafael, California REVIEW DRAFT 10/30/2023

SAN RAFAEL

THE CITY WITH A MISSION
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ANNUAL COMPREHENSIVE

FINANCIAL REPORT
For the Fiscal Year Ended
June 30, 2023
City of San Rafael, California
1400 Fifth Avenue
San Rafael, California 94901
Prepared by the Finance Department of the City of San Rafael REVIEW DRAFT 10/30/2023
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Falkirk Cultural Center, San Rafael

INTRODUCTORY SECTION
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CITY OF SAN RAFAEL, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended June 30, 2023
Table of Contents

INTRODUCTORY SECTION

TABLE OF CONTENTS
Letter of Transmittal .................................................................................................................................... v Mission Statement and Vision Statement .................................................................................................. xii City Council and Staff .............................................................................................................................. xiii Organizational Chart ................................................................................................................................. xiv Location Map ............................................................................................................................................. xv Certificate of Achievement for Excellence in Financial Reporting .......................................................... xvi

FINANCIAL SECTION
Independent Auditor's Report .................................................................................................................. 1 Management’s Discussion and Analysis .................................................................................................. 5 Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position ............................................................................................................. 23 Statement of Activities .................................................................................................................. 24 Fund Financial Statements:

Major Governmental Funds:

Balance Sheet ............................................................................................................................ 28 Balance Sheet – Reconciliation of Governmental Fund Balances to Net Position of Governmental Activities .............................................................................. 29 Statement of Revenues, Expenditures, and Changes in Fund Balances .................................... 30 Reconciliation of the Net Change in Fund Balances – Total Governmental Funds with the Statement of Activities ................................................................................. 31 Proprietary Funds:

Statement of Net Position .......................................................................................................... 34 Statement of Revenues, Expenses, and Changes in Fund Net Position .................................... 35 Statement of Cash Flows ........................................................................................................... 36 REVIEW DRAFT i
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CITY OF SAN RAFAEL, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended June 30, 2023
Table of Contents
FINANCIAL SECTION (Continued)
Fiduciary Funds:

Statement of Fiduciary Net Position ......................................................................................... 38 Statement of Changes in Fiduciary Net Position ....................................................................... 39 Notes to Basic Financial Statements .................................................................................................. 41 Required Supplementary Information:

Schedule of the City’s Proportionate Share of the Net Pension Liability ..................................... 97 Schedule of Contributions – Defined Benefit Pension Plan ......................................................... 98 Schedule of Changes in Net OPEB Liability and Related Ratios ............................................... 107 Schedule of Contributions – OPEB ............................................................................................ 108 Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Budgetary Basis
General Fund ........................................................................................................................... 117 Traffic and Housing Mitigation Special Revenue Fund .......................................................... 118 Gas Tax Special Revenue Fund ............................................................................................... 119 Supplementary Information:

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Budgetary Basis
Essential Facilities Capital Projects Fund ................................................................................ 121 Non-major Governmental Funds:

Combining Balance Sheets ......................................................................................................... 124 Combining Statements of Revenues, Expenditures, and Changes in Fund Balance ................................................................................................................... 128 Budgeted Non-major Governmental Funds:

Combining Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...................................................................... 132 REVIEW DRAFT ii 10/30/2023

CITY OF SAN RAFAEL, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended June 30, 2023
Table of Contents
FINANCIAL SECTION (Continued)
Internal Service Funds:

Combining Statements of Net Position ....................................................................................... 142 Combining Statements of Revenues, Expenses and Changes in Fund Net Position ................... 144 Combining Statements of Cash Flows ........................................................................................ 146

STATISTICAL SECTION
Financial Trends:

Net Position by Component – Last Ten Fiscal Years ....................................................................... 152 Changes in Net Position – Last Ten Fiscal Years ............................................................................. 154 Fund Balances of Governmental Funds – Last Ten Fiscal Years ..................................................... 158 Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years .................................... 160 Revenue Capacity:

Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ...................... 162 Property Tax Rates – All Overlapping Governments – Last Ten Fiscal Years ................................ 163 Property Tax Rates – Direct & Overlapping Governments – Last Ten Fiscal Years (Rate Per $100 of Assessed Value) .......................................................... 164 Principal Property Tax Payers – Current Year and Nine Years Ago ................................................ 165 Property Tax Levies and Collections – Last Ten Fiscal Years ......................................................... 166 Debt Capacity:

Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ........................................................... 167 Computation of Direct and Overlapping Debt .................................................................................. 168 Computation of Legal Bonded Debt Margin .................................................................................... 169 Revenue Bond Coverage Parking Facility – Last Ten Fiscal Years ................................................. 170 REVIEW DRAFT iii 10/30/2023

CITY OF SAN RAFAEL, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended June 30, 2023
Table of Contents
STATISTICAL SECTION (Continued)
Demographic and Economic Information:

Demographic and Economic Statistics – Last Ten Calendar Years .................................................. 171 Principal Employers – Last Ten Calendar Years .............................................................................. 172 Operating Information:

Full-Time Equivalent City Government Employees by Function – Last Ten Fiscal Years ................................................................................................................. 175 Operating Indicators by Function/Program – Last Ten Fiscal Years ................................................ 176 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ............................................ 178 REVIEW DRAFT iv 10/30/2023
Kate Colin, Mayor • Maika Llorens Gulati, Vice Mayor • Maribeth Bushey, Councilmember • Maribeth Bushey, Councilmember • Eli Hill, Councilmember November XX, 2023
Honorable Mayor, Members of the City Council and Residents of San Rafael:

The Annual Comprehensive Financial Report (“Annual Report”) of the City of San Rafael (“City”) for the year ended June 30, 2023, is hereby submitted as required by local ordinances, state statutes and bond covenants. This financial report has been prepared in conformance with Generally Accepted Accounting Principles (GAAP) as promulgated by the Governmental Accounting Standards Board (GASB) and includes the report of the independent certified public accounting firm, Maze and Associates Accountancy Corporation, which has issued an unmodified, or “clean” opinion on the City’s financial statements for the fiscal year ended June 30, 2023.

The independent audit of the financial statements is part of a broader, federally mandated examination known as a “Single Audit”, which is designed to meet the needs of federal grantor agencies. The standards governing Single Audits require the independent auditor to report on the audited agency’s internal controls and compliance with legal requirements, with special emphasis on such controls and requirements involving the administration of federal funding. These reports will be available in the City’s separately issued Single Audit Report.

City Management is responsible for both the data accuracy, and the completeness and fairness of the presentation of this report. To the best of our knowledge and belief, the data presented is accurate in all material respects and is reported in a manner that presents fairly the financial position and results of operations of the various funds and component units of the City. Further, the Annual Report is prepared in accordance with procedures and policies set by the Government Finance Officers Association. The analysis of the financial condition and the result of operations can be found in the financial section of the Management’s Discussion and Analysis document. The Annual Report is organized into three sections:

1. Introductory section, which is unaudited, includes this letter of transmittal, an organizational chart, and a list of the City’s elected and appointed officials.

2. Financial section, includes the basic financial statements, related footnote disclosures, and the combining and individual fund financial statements and schedules, as well as the independent auditors' report.

3. Statistical section, which is unaudited, includes selected financial and demographic information, presented on a multi-year basis. Generally, ten-year data is presented for expenditures, revenues, assessed valuation for local properties and construction activity.

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CITY OF SAN RAFAEL I 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG Kate Colin, Mayor • Maika Llorens Gulati, Vice Mayor • Maribeth Bushey, Councilmember • Maribeth Bushey, Councilmember • Eli Hill, Councilmember REPORTING ENTITY – PROFILE OF THE GOVERNMENT
The City of San Rafael is located 17 miles north of San Francisco in Marin County.

Protected by its Mediterranean like setting along the shores of the San Francisco Bay, the City enjoys a mild climate year-round. As the County seat, San Rafael is considered the commercial, financial, cultural and civic hub of Marin County. Abundant recreational facilities are available in and around the City. The City’s park and recreational resources include 24 city parks, 393 acres of developed parkland, city and county open space, and China Camp State Park. San Rafael is close to other attractions, including the Golden Gate Bridge, Muir Woods, Point Reyes National Seashore, Mount Tamalpais, multiple state parks, San Francisco, Oakland and the Sonoma and Napa wine country.

In 1874, the City became the first incorporated city in the county, later becoming a charter city in 1913 by vote of City residents. The City Council comprises five members; four are elected to four-year terms while the mayor is elected separately to a four-year term. The City’s land area is 22 square miles, including seventeen square miles of land and 5 of water and tidelands. San Rafael's population on January 1, 2023, was 59,681.

Downtown San Rafael is the location of many community events, including Second Friday Art Walks, Mill Valley Film Festival, West End Block Party, Thursday Night Farmer’s Market, Porchfest, and is one of only 14 designated Cultural Arts Districts in the State of California. San Rafael is also the heart of the County’s cultural activities with venues such as the Marin Center, which presents numerous ballets, concerts, speaking engagements as well as the award-winning Marin County Fair; the Falkirk Cultural Center, providing art exhibits and children's programming; the Christopher B. Smith Film Center, and a host of other diverse dining and entertainment venues.

The City provides a full range of municipal services required by statute or charter, namely:
police and fire protection, construction and maintenance of streets, parks, storm drains and other infrastructure, recreation, childcare, permits, planning, code enforcement, and a library system serving three locations. The City performed certain infrastructure construction and economic development activities through a separate Redevelopment Agency until its dissolution on February 1, 2012. The City of San Rafael accepted the role of Successor Agency to the Redevelopment Agency per Council action on January 3, 2012, and now conducts its economic development activities with funding from its General Fund.

The City and California Municipal Finance Authority compose the San Rafael Joint Powers Financing Authority, originally established by the City and former Redevelopment Agency for the purpose of financing redevelopment and other projects. The San Rafael Sanitation District is a discretely presented component unit of the City and is presented independent of City financial information. For a further explanation of these entities, refer to Note 1 – Summary of Significant Accounting Policies in the Financial Section of the Annual Report.

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CITY OF SAN RAFAEL I 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG Kate Colin, Mayor • Maika Llorens Gulati, Vice Mayor • Maribeth Bushey, Councilmember • Maribeth Bushey, Councilmember • Eli Hill, Councilmember The City participates in various organizations through formally organized and separate entities established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, these agencies exercise full powers and authorities within the scope of the related Joint Powers Agreement including the preparation of annual budgets, accountability for all funds, and the power to make and execute contracts.

Obligations and liabilities of the separate entities are not those of the City. For a further explanation of these separate entities, refer to Note 12 – Jointly Governed Organizations in the Annual Report.

Building from over a decade of community efforts to address San Rafael's aging essential public safety facilities, the Essential Facilities project continued during the year with phase II addressing which includes the modernization of Fire Stations 54 and 55.

Significantly, during the 2022-23 fiscal year, the City Council adopted a set of two-year Goals, Objectives, and Strategic Priorities that include:
• Economic Growth
• Sustainability, Climate Change, and Disaster Preparedness • Diversity, Equity, Inclusion, and Belonging
• Housing and Homelessness
The programs, projects, and initiatives supporting these strategic goals will inform ongoing investment of city resources in the near term.

ECONOMIC FACTORS
The City has a diversified economic base, which includes an assortment of high-tech, financial, service-based, entertainment and industrial businesses. Downtown San Rafael provides a mix of restaurants, retail shops and financial institutions. The City’s varied economic base is reflected in its property tax base, which is 71% residential, 19% commercial, 2% industrial, and 8% unsecured and others. The top 25 sales tax producers provide about half of overall sales tax revenues.

The overall economy continues to navigate the impacts of the COVID 19 pandemic and, as of this writing, faces uncertainty of a looming recession. Inflation remains elevated but has eased from the highs of the last two years, and strong employment figures continue to justify further economic tightening. Economists are predicting pandemic fueled savings to begin running out through the latter half of the calendar year and a possible mild recession to follow.

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CITY OF SAN RAFAEL I 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG Kate Colin, Mayor • Maika Llorens Gulati, Vice Mayor • Maribeth Bushey, Councilmember • Maribeth Bushey, Councilmember • Eli Hill, Councilmember Locally, Marin County is showing signs of slowing economic activity, however, remains at an elevated post-pandemic level. Unemployment remains low at 3.4%, below the latest state-wide rate of 4.6%, however the labor force has contracted by about 5% from pre-pandemic levels. In all, Marin County is still poised to weather the current period of economic tightening to return to growth in the medium term. Specifically, the San Rafael office market continues to see increased vacancies given the work-from-home policies by employers and reduced office footprints. This issue is not unique to San Rafael but impacts the entire commercial real estate office market. Depending on larger economic factors this could provide an opportunity for building redevelopment or reuse.

Economic Data
The following is a sample of economic attributes that make San Rafael an exceptional place to live and work.
• Economic development organizations in San Rafael include the San Rafael Chamber of Commerce, Hispanic Chamber of Commerce, Downtown Business Improvement District, and the Marin Economic Forum.
• Marin County’s top employers include Kaiser Permanente, the City of San Rafael, Marin Independent Journal, Marin County Sheriff’s Dept, YMCA San Francisco, Managed Health Network, Wells Fargo, Community Action Marin, and BioMarin. • Major shopping areas, as measured in available retail square footage, include the Downtown corridor (938,000 aggregate), Northgate Mall (725,000), Montecito Center (130,000) and Northgate One (113,900).
• The top three sales tax categories during the fiscal year ended June 30, 2023, for San Rafael were: 1. Autos and Transportation (27%), 2. State and County Pools, which mainly reflects ecommerce activity (24%), and 3. Building and Construction (19%).
• Several hotels and motels support tourism activity, led by a combined 471 rooms in the Embassy Suites and Four Points Sheraton. Citywide, the total number of hotel rooms is 927. The Four Points Sheraton was recently sold for $38 million and is slated for a significant rebranding and upgrade. In addition, a downtown AC Marriot recently opened its doors providing 140-rooms and a roof-top bar/lounge.

Lastly, a 185-room dual branded Hampton Suites/H2 hotel has started grading construction activities.
• Establishing and maintaining affordable residential housing for sale and lease continues to be a challenge both in San Rafael and throughout Marin County. The median rent for an apartment in San Rafael is $3,187. The median home value in San Rafael is $1,341,284.

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CITY OF SAN RAFAEL I 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG Kate Colin, Mayor • Maika Llorens Gulati, Vice Mayor • Maribeth Bushey, Councilmember • Maribeth Bushey, Councilmember • Eli Hill, Councilmember Recent growth and economic vibrancy:
• As mentioned above, the City is enjoying a boost in development of hotel rooms thanks to a new AC Marriott Hotel located in the heart of our Downtown. A dual-brand Hampton Inn/H2 Hotel is also coming soon in the East San Rafael neighborhood to serve a variety of large retailers and businesses as well as workers within the traditionally industrial area. These two hotels combined will add 325 new hotel rooms to the City and generate additional Transit Occupancy Tax (TOT).
• The City has recently entitled a major housing project at 1515 Fourth Street for 162 residential units and 8,900 sq. ft. of retail anchoring the western portion of the downtown. The development represents a catalytic investment into the downtown utilizing the City’s recently adopted Downtown Precise Plan and State of California housing density bonuses.
• The City is processing a large project entitlement for redevelopment of the Northgate Mall. The proposed project would bring 1422 new housing units anchored by an IMAX movie theater, restaurants, and boost existing retail anchors.
• The City has adopted its first ever citywide Economic Development Strategic Plan in early 2023. the plan includes detailed actionable tasks that provide measurable benefits and value driving enhanced economic vitality.
• San Rafael continues to serve our local business and restaurant community by implementing a structured formal outdoor dining program called the Streetary Program, which replaced the temporary emergency outdoor dining program that greatly supported our businesses during the COVID-19 pandemic. In coordination with the Business Improvement District, the City has also reimagined the ‘Dining Under the Lights’ event into a tailored, post-COVID program including block parties and entertainment that draws foot traffic to our downtown and welcomed back the Thursday Night Farmer’s Market which did not operate in 2022
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CITY OF SAN RAFAEL I 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG Kate Colin, Mayor • Maika Llorens Gulati, Vice Mayor • Maribeth Bushey, Councilmember • Maribeth Bushey, Councilmember • Eli Hill, Councilmember

FINANCIAL INFORMATION
The City's management is responsible for establishing and maintaining internal controls to ensure that the City's assets are adequately protected from loss, theft or misuse. In addition, management controls ensure that proper accounting data is collected so as to prepare reports in conformance with generally accepted accounting principles.

Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived. All internal control evaluations occur within the above framework. It is management’s belief that the City's internal accounting controls adequately safeguard assets and provide reasonable assurance that financial transactions are properly recorded.

The City develops a budget based upon City Council priorities and department objectives.

The Finance Department maintains a traditional line-item budget by major function.

Budget control is accomplished at the functional or division level within each fund. This budget creates a comprehensive management and fiscal system aimed at achieving the objectives of each operating level consistent with those that have been set for the community by the City Council. Each department director is responsible for accomplishing goals within his or her functional area and monitoring the use of her or his budget allocations consistent with policies set by the City Council and monitored by the City Manager.

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CITY OF SAN RAFAEL I 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG Kate Colin, Mayor • Maika Llorens Gulati, Vice Mayor • Maribeth Bushey, Councilmember • Maribeth Bushey, Councilmember • Eli Hill, Councilmember

ACKNOWLEDGMENTS
The preparation of this City-wide document would not have been possible without the assistance of each of the City’s departments. In addition, Finance support staff Kate Llamas, Whitney Zimmerman, Rayanne Lulay, Damien Oyobio, Claire Coleman, and Finance Manager Shawn Plate, with oversight by Accounting Manager Van Bach and Finance Director Paul Navazio were key to the timely issuance of this report.

We believe this document meets the Government Finance Officers Association’s (GFOA) Certificate of Achievement for Excellence in Financial Reporting requirements and will be submitting it to the GFOA to determine its eligibility. If accepted, this will mark the twelfth consecutive year for which the City received the award.

Lastly, we appreciate the ongoing leadership and support from the Mayor and City Councilmembers. Their strong commitment to financial accountability and stewardship provide inspiration to the organization and motivate a high level of achievement.

Respectfully submitted,
Cristine Alilovich Paul Navazio
City Manager Finance Director
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CITY OF SAN RAFAEL I 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG

MISSION STATEMENT
The Mission of the City of San Rafael is to enhance the quality of life and to provide for a safe, healthy, prosperous and livable environment in partnership with the community.

VISION STATEMENT
Our vision for San Rafael is to be a vibrant economic and cultural center reflective of our diversity, with unique and distinct neighborhoods in a beautiful natural environment, sustained by active and informed residents and a responsible innovative local government.

January 1996
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SAN RAFAEL

THE CITY WITH A MISSION
City Council and Staff
City Council
Kate Colin, Mayor
Maika Llorens Gulati, Vice Mayor
Maribeth Bushey, Councilmember
Eli Hill, Councilmember
Rachel Kerz, Councilmember
Elected Officials
Rob Epstein, City Attorney
Lindsay Lara, City Clerk
Executive Team
Cristine Alilovich, City Manager
David Spiller, Chief of Police
Darin White, Fire Chief
April Miller, Public Works Director
Alicia Giudice, Community Development Director
Catherine Quffa, Library & Recreation Director
Sean Mooney, Director of Digital Service & Open Government Genevieve Coyle, Assistant City Attorney
Micah Hinkle, Director of Economic Development and Innovation Paul Navazio, Director of Finance
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SAN RAFAEL

THE CITY WITH A MISSION

ORGANIZATIONAL CHART
Electorate
City Attorney City Clerk
Mayor
& City Council
Boards &
Assistant City Commissions
Manager
Volunteer
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Sustainability
Programs
Parking
Services
Police
Department
Fire
Department
Library and
Recreation
Public
Works
Economic
Development
City Manager
Digital Service and
Open Government
Community
Development
Homeless
Initiatives
Administrative
Services
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THE CITY WITH A M ISSION
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Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
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Arbor Park, San Rafael

FINANCIAL SECTION
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the City Council
City of San Rafael, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of San Rafael (City), California, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City as of June 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit 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. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

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Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. 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 generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, 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 amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Change in Accounting Principles
Management adopted the provisions of Governmental Accounting Standards Board Statement No. 96, Subscription-Based Information Technology Arrangements, which became effective during the year ended June 30, 2023 and required restatement of certain governmental activities subscription-related balances as discussed in Note 1T to the financial statements.

The emphasis of these matters does not constitute a modification to our opinions.

REVIEW DRAFT 2 10/30/2023
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and other required supplementary information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying Supplementary Information, as listed in the Table of Contents, is presented for purposes of additional analysis 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 Supplementary Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory Section and Statistical Section listed in the Table of Contents, but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exits, we are required to describe it in our report.

REVIEW DRAFT 3 10/30/2023
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated DATE, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Pleasant Hill, California
DATE
REVIEW DRAFT 4 10/30/2023
-
-

CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
This analysis of the City of San Rafael’s (City) financial performance provides an overview of the City’s financial activities for the fiscal year ended June 30, 2023. Please read it in conjunction with the basic financial statements and the accompanying notes to those basic financial statements.

FINANCIAL HIGHLIGHTS
Government-wide:
• Net Position – The assets and deferred outflows of the City exceeded its liabilities and deferred inflows as of June 30, 2023, by $292.3 million.
• Activities – During the fiscal year the City’s total revenues of $152.8 million were greater than expenses of $104.8 million for governmental and business-type activities. • Changes in Net Position – The City’s total net position increased by $48.0 million in fiscal year 2022-2023 as compared to the net position of the previous year. Net position of governmental activities increased by $47.3 million, while net position of the business-type activities increased by $734 thousand.

Fund Level:
• Governmental Funds – As of the close of fiscal year 2022-2023, the City’s governmental funds reported combined ending fund balances of $78.5 million, an increase of $6.6 million primarily due to receipt of grant funds in advance of capital project spending for projects such as the Third Street Rehabilitation project and the Pickleweed and Carnegie Library Renovation projects. Of this total amount, $261 thousand is nonspendable, $46.4 million is restricted, $13.8 million is committed, $17.3 million is assigned, and $665 thousand is unassigned.
• Governmental fund revenues totaled $147.6 million, an increase of $500 thousand from the those of the previous fiscal year. Although the increase appears nominal, the prior year included the recognition of approximately $16.1 million of one-time American Recovery Plan Act funds. The current year included over $12 million in intergovernmental revenues related to the Third Street Rehabilitation Project against roughly $3.3 million received for the project in the prior year. The remainder can be mainly attributed to a gain of $1.2 million on the pooled investment portfolio during the year when compared with a loss of $1.6 million in the prior year, as well as growth in taxes and assessments and charges for services of about $5.3 million. • Governmental fund expenditures increased by $6.3 million to $138.7 million, from $132.4 million in the prior year. Major factors included increased project expenditures, most notably the Third Street Rehabilitation project, as well as compensation increases, and overall increasing costs for goods and services across all facets of operations.
• Enterprise fund net position increased $734 thousand to $10.8 million as the City’s parking program began to rebound from the lingering effects of the pandemic during the year.

OVERVIEW OF FINANCIAL STATEMENTS
The Annual Comprehensive Financial Report is composed of the following:

1. Introductory section, which includes the Transmittal Letter and general information

2. Management’s Discussion and Analysis (this part)

3. Basic Financial Statements, which include the Government-wide and the Fund financial statements, including Fiduciary Funds, along with the Notes to these financial statements

4. Combining statements for Non-Major Governmental Funds and Internal Service Funds

5. Statistical Information
5 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements, which have three components: 1) Government-wide Financial Statements, 2) Fund Financial Statements, and 3) Notes to the Basic Financial Statements.

The basic financial statements include the City (primary government) and all legally separate entities (component units) for which the government is financially accountable. This report also contains other supplementary information in addition to the basic financial statements for further information and analysis.

Government-wide Financial Statements
The government-wide financial statements present the financial picture of the City and provide readers with a broad view of the City’s finances. These statements present governmental activities and business-type activities separately and include all assets of the City (including infrastructure) as well as all liabilities (including long-term debt).

Additionally, certain interfund receivables, payables, and other interfund activity have been eliminated as prescribed by generally accepted accounting principles.

The Statement of Net Position and the Statement of Activities and Changes in Net Position report information about the City as a whole. These statements include all assets and liabilities of the City using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account, regardless of when cash is received or paid.

The Statement of Net Position presents information on all the City’s assets, deferred outflows/inflows of resources, and liabilities, with the difference reported as net position. Over time, increases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The Statement of Activities and Changes in Net Position presents information showing how the City’s net position changed during the year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of timing of related cash flows.

In the Statement of Net Position and the Statement of Activities and Changes in Net Position, City activities are separated as follows:

Governmental Activities – Most of the City’s basic services are reported in this category, including Public Safety, Public Works and Parks, Community Development, Cultural and Recreation, and Government Administration (finance, human resources, legal, City Clerk and City Manager operations). Property tax, sales and use taxes, user fees, interest income, franchise fees, hotel taxes, business licenses, and property transfer taxes, plus state and federal grants finance these activities.

Business-type Activities – The City charges fees to customers to cover the full costs of certain services it provides.

The City’s Parking Services program is the City’s sole business-type activity.

Discretely Presented Component Units – The government–wide financial statements include not only the City itself (the primary government), but also the San Rafael Sanitation District, a legally separate entity for which the City is financially accountable. Financial information for the San Rafael Sanitation District is reported separately from the financial information presented for the primary government.

The government-wide financial statements can be found on pages 23 through 25 of this report. 6 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
Fund Financial Statements and Major Component Unit Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the funds of the City are divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

The fund financial statements provide detailed information about each of the City’s most significant funds called major funds. Each major fund is presented individually with all non-major funds summarized and presented in a single column. Further detail on the non-major funds is presented on pages 124 through 139 of this report.

Governmental Funds – Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financial capacity.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for government funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. These reconciliations are presented on the page immediately following each governmental fund financial statement.

The City has thirty-two governmental funds, of which four are considered major funds for presentation purposes.

Each major fund is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances. The City’s four major funds are: the General Fund, Traffic and Housing Mitigation, Gas Tax and Essential Facilities Capital Projects. Data from the other twentyfive governmental funds are combined into a single, aggregated presentation. The basic governmental fund financial statements can be found on pages 28 through 31 of this report. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements on pages 124 through 139 of this report.

Proprietary Funds – The City maintains two different types of proprietary funds - enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses an enterprise fund to account for its Parking Services program and reports it as a major fund. Internal service funds are used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its building maintenance; vehicle, equipment and computer replacement; workers’ compensation; general liability; self-insured dental program; other employee and retiree benefits programs. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. Like the government-wide financial statements, proprietary fund financial statements use the accrual basis of accounting. There is no reconciliation needed between the government-wide financial statements for business-type activities and the proprietary fund financial statements.

The proprietary fund financial statements can be found on pages 34 through 36 of this report. 7 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The City acts as an agent on behalf of others, holding amounts collected, and disbursing them as directed or required. The City’s fiduciary activities are reported in the separate Statements of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds include a private purpose trust fund to account for activities of the City of San Rafael Successor Agency and a custodial fund that accounts for resources held by the City in a custodial capacity for the Pt. San Pedro Road Assessment District. Information for the fiduciary funds can be found on pages 38 through 39 of this report.

Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 41 through 96 of this report.

Required Supplementary Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information. One section includes budgetary comparison statements for the General Fund and major funds (general, gas tax, and traffic and housing mitigation). The other section includes schedules of funding progress for the Marin County Employees’ Retirement System and the City’s OPEB plan. All budgeted positions that are filled by either full-time or permanent part-time employees (working seventy-five percent of full-time equivalent) are eligible to participate in the system and the OPEB plan. Required supplementary information can be found on pages 97 through 114 of this report.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
Statement of Net Position
Net position measures the difference between (a) assets and deferred outflows of resources and (b) liabilities and deferred inflows of resources. During this fiscal year, the net position of the City was $281.5 million from Governmental Activities and $10.8 million from Business-type Activities, for a total of $292.3 million. This represents an increase of $48 million from the prior year’s net position.

8 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
The following is the condensed Statement of Net Position for the fiscal years ended June 30, 2023 and 2022:

Current and other governmental assets decreased by $38.1 million, primarily resulting from the inclusion of a Net Pension Asset of $46.6 million in the prior year that reverted to Net Pension Liability in the current year. The remainder is primarily the result of positive operating results as revenue growth outpaced expense growth during the year. The $16.7 million increase in capital assets reflects project-to-date activity for major traffic infrastructure improvements, as well as Fire Station 54 and 55 construction and improvements. The increase of $30.1 million in deferred outflows is primarily a result the impact of pension-related investment losses during the measurement year which caused the unamortized net difference between projected and actual earnings on plan investments to shift to a deferred outflow from deferred inflow in the prior year. In order to decrease the volatility of the measurement of net pension liability gains and losses in excess of those projected are capitalized and amortized over a five-year period.

Current and other liabilities decreased by approximately $569 thousand, primarily due a decrease in accounts payable of $764 thousand. Noncurrent governmental liabilities increased by $103.8 million mainly as a result of the reclassification of the prior year’s net pension asset to a net pension liability mentioned previously. Deferred inflows decreased by $141.2 million mainly as a result of the net difference between projected and actual earning on investments during the measurement period that resulted in a substantial net deferred outflow.

The net position in business-type activities reflects the fiscal activity of the Parking Services program and increased by $734 thousand from the previous year as a result of a recovery in parking program revenues that had been slow to rebound from the impacts of the pandemic. Current and other assets decreased by $1.8 million due the reclassification of the prior year’s $1.6 million net pension asset to a net pension liability in the current year. Correspondingly, noncurrent liabilities increased by $2.8 million mainly due to the addition of the $3.1 million net pension liability.

Increase Increase
2023 2022 (Decrease) 2023 2022 (Decrease)
Current and other assets $135,941 $174,072 ($38,131) $1,745 $3,568 ($1,823) Capital assets 311,664 294,928 16,736 15,162 15,281 (119) Total assets 447,605 469,000 (21,395) 16,907 18,849 (1,942) Deferred outflows (Notes 9 and 11) 73,312 42,534 30,778 1,312 1,864 (552) Current and other liabilities 18,677 19,246 (569) 503 533 (30) Noncurrent liabilities 192,517 88,630 103,887 6,942 4,086 2,856 Total liabilities 211,194 107,876 103,318 7,445 4,619 2,826 Deferred inflows (Notes 4G, 9 and 11) 28,213 169,434 (141,221) 772 5,475 (4,703) Net Position:

Net investment in capital assets 259,204 246,438 12,766 11,454 11,256 198 Restricted 46,773 36,668 10,105 0 0
Unrestricted (24,466) (48,883) 24,417 (653) (1,189) 536 Total net position $281,511 $234,223 $47,288 $10,801 $10,067 $734 Governmental Activities Business-Type Activities
Summary of Net Position
(in thousands)
9 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
Capital assets decreased by $119 thousand due to current year depreciation. The decreases in deferred outflows and related increases in deferred inflows and current and other assets were due to the pension-related adjustments mentioned above. The $30 thousand increase in current liabilities is driven by the decrease in accounts payable to end the year.

At June 30, 2023, the largest portion of total net position in the amount of $270.7 million consisted of the City’s investment in capital assets net of related debt. This component represents the total amount of funds required to acquire capital assets less any related debt used for such acquisition that is still outstanding. The City uses these assets to provide services to residents. The capital assets of the City are not sources of income for repayment of debt as most assets are not revenue generating and generally are not liquidated to repay debt. Therefore, debt service payments are funded from other sources available to the City.

A portion of the City's total net position, $46.8 million, is subject to external restrictions, and their use is determined by those restrictions whether legal or by covenant. In addition, the unrestricted negative $25.1 million represents the extent to which the net investment in capital assets and restricted net position exceed total net assets.

Invested in Capital Assets (net) $270,658
Restricted 46,773
Unrestricted (25,119)
Total Net Position $292,312
Net Position as of 6/30/2023
(in thousands)
10 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
Statement of Activities - Governmental
The following is the condensed Statement of Activities and Changes in Net Position for the fiscal years ended June 30, 2023 and 2022:

Increase
2023 2022 (Decrease)

REVENUES
Program revenues:

Charges for services $20,735 $18,938 $1,797
Operating grants and contributions 6,764 22,521 (15,757) Capital grants and contributions 18,438 9,868 8,570
Total program revenues 45,937 51,327 (5,390)
General revenues:

Property taxes 33,023 32,324 699
Sales taxes 45,633 44,110 1,523
Paramedic tax 5,224 5,110 114
Transient occupancy tax 3,396 2,976 420
Franchise tax 4,425 4,210 215
Business license tax 2,584 2,646 (62)
Other taxes 2,975 3,109 (134)
Investment earnings 1,709 (1,424) 3,133
Gain from sale of capital assets 990 (990)
Miscellaneous 3,233 2,966 267
Total general revenues 102,202 97,017 5,185
TOTAL REVENUES 148,139 148,344 (205)

EXPENSES
General government 11,163 10,459 704
Public safety 49,904 34,379 15,525
Public works and parks 23,354 14,031 9,323
Community/economic development 4,437 2,835 1,602
Culture and recreation 10,723 7,431 3,292
Interest on long-term debt 1,793 2,005 (212)
TOTAL EXPENSES 101,374 71,140 30,234

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENSES 46,765 77,204 (30,439)
Transfers in 521 521 -
Total Other Financing Sources (Uses) 521 521 -
Net Change in Net Position 47,286 77,725 (30,439)
Beginning Net Position 215,851 138,126 77,725
Ending Net Position, June 30 $263,137 $215,851 $47,286
Governmental Activities
Summary of Changes in Net Position
(in thousands)
11 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
The City’s governmental activities net position increased by $47.3 million during fiscal year 2022-2023. Year-overyear revenues were largely similar to the prior year, however, there are significant fluctuations within program and general revenues to arrive at the total. Within program revenues, charges for services increased about $1.8 million as the result of recovery in Recreation and Childcare programs from lingering effects of the pandemic, as well as growth in ambulance third-party billings. Operating grants and contributions decreased by $15.8 million as the prior year amount included the recognition of $16.1 million in one-time ARPA funds and Capital grants and contributions increased by roughly $8.6 million mainly as the result of contributions to the Third Street Rehabilitation project.

Within the general revenues category, investment earnings increased by $3.1 million following the recording of a $1.7 million gain during the year juxtaposed against the $1.4 million loss of the prior year. The loss of the prior year was attributable to the rapid rise in interest rates during the period, causing a correspondingly sharp decrease in the value of bonds. Also of note, property and sales taxes continued to show strong growth, accounting for an increase of $2.2 million in revenue for the year.

Overall operating expenses reflect significant increases for the fiscal year as a direct result of pension and OPEB adjustments made during the year. The prior year’s amounts were anomalously low as a result of extraordinary market returns during the measurement period ending June 30, 2021, that was reported June 30, 2022. The adjustments for these expenses offset personnel costs in each functional area on the Statement of Activities for fiscal 2021-22. Market losses during the June 30, 2022, fiscal year have had the opposite effect on balances for the current fiscal year, thus presenting a large variance that is not consistent with the City’s incremental functional program cost as presented on the fund financial statements.

The following graph shows governmental revenues by source:
12 Revenues by Source
Governmental Acfv"ties
Taxes, 65.65%
Capital gr.ants and
contributioM, 12.45%
Operating grants and
• - ,oontrihotioBS, 4.57%
Miscell\aneous, 3.34%
Charges fo.- services,.

14.00%

CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
Total expenses for governmental activities were $99.6 million (excluding interest on long-term debt of $1.8 million).

Program revenues offset total expenses as follows:
• Those who directly benefited from programs contributed $20.7 million in charges for services. • A total of $25.2 million in operating and capital projects were funded by outside agencies through operating grants, capital grants, and contributions.

As a result, total expenses that were funded by tax revenues, investment income, other general revenues and fund balance were $53.6 million.

Functional expenses for the year ended June 30, 2023, were as follows:

Function Amount Percent of Total
General government $11,163 11.0%
Public safety 49,904 49.2%
Public works and parks 23,354 23.0%
Community development 4,436 4.4%
Culture and recreation 10,723 10.6%
Interest on debt 1,793 1.8%
Total expenses $101,373 100%
Expenses by Function
(in thousands)
13 $60,000
$50,000
$40,000
$30,000
$20,000
$10,000
sPublic Safety
Expenses and Program1 Revenues
Governmental Activities
(in thousands)
Public Worlcs and
?arks
Culture and
Recreation
General Govemrnent Community
Development
■ Program Revenues ■ Expenses

CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
Statement of Activities – Business-Type
The net position for business-type activities increased from the prior year by $733 thousand primarily as a result of increased program revenues following a sluggish post-pandemic recovery. In the prior two fiscal years the Parking services program was acutely affected by the lasting impacts of the coronavirus pandemic as reduced brick-andmortar business activity and increased remote work arrangements reduced demand for street and garage parking.

Parking services is the City’s only business-type activity with income derived from program revenues of $4.7 million.

Program revenues include parking meter coin income of $1.4 million and parking garage hourly and monthly parking income of $0.9 million. Revenues also include parking and non-vehicle code fines totaling $2.4 million. Total expenses for parking services were $3.4 million and transfers out to general fund and non-major governmental fund for support totaled $521 thousand during the fiscal year 2022-2023.

Increase
2023 2022 (Decrease)
Revenues
Program revenues:

Charges for services $4,682 $3,837 $845
Total program revenues 4,682 3,837 845
General revenues:

Investment Income 8 9 (1)
Total general revenues 8 9 (1)
TOTAL REVENUES 4,690 3,846 844
Expenses
General government 3,436 2,227 1,209
TOTAL EXPENSES 3,436 2,227 1,209

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENSES 1,619 1,254 (365)

OTHER FINANCING SOURCES (USES)
Transfers out (521) (521) -
Total Other Financing sources (uses) (521) (521) -
Net Change in Net Position 733 1,098 (365)
Net Position, Beginning 10,067 8,969 1,098
Net Position, Ending $10,800 $10,067 $733
Summary of Changes in Net Position
For the periods ended June 30, 2023 and 2022 (in thousands) Business-Type Activities
14 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023

FINANCIAL ANALYSIS OF INDIVIDUAL FUNDS
Governmental Funds
Fund Balance Classifications
Fund balances are classified in five categories: nonspendable, restricted, committed, assigned, and unassigned based on a hierarchy of constraint. Further details on fund balance classifications can be found in Note 8B.

The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financial capacity. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

As of June 30, 2023, the City reported a combined ending fund balance of $78.5 million of all its governmental funds (an increase of $6.6 million from the prior year): $261 thousand is non-spendable, $46.4 million is restricted, $13.8 million is committed, $17.4 million is assigned, and $665 thousand is unassigned.

General Fund – The General Fund is the primary operating fund of the City.

General Fund – The fund balance of the General Fund as of June 30, 2023, was $27.8 million (a decrease of $6 million from the prior year balance): $78 thousand is non-spendable, $9.8 million is committed, $17.3 million is assigned and $665 thousand is unassigned. The committed portion of the balance includes $9.8 million for emergency and cash flow needs.

General Fund Budgetary Highlights:

The original adopted General Fund budget projected total revenue of $96.8 million and transfers-in of $1.8 million for total resources of $98.6 million. This budget appropriated expenditures of $93 million and transfers-out of $3.3 million for total appropriations of $96.3 million. Revenues were later increased to $98.3 million as a result of increased sales and use tax projections at mid-year. Transfers-in were reduced $639 thousand mainly as a result of foregoing the annual transfer of administrative costs from the Gas Tax fund to maintain capacity within the fund for project needs. Transfers-out were increased by $13.5 million mainly for project support of the San Quentin Pump Station project ($7.25 million), Liability fund projects ($2.4 million), and other capital projects ($3.3 million).

Actual revenues, at $98.1 million, exceeded original budgeted revenues by $1.3 million. The increase is largely attributed to increased sales and use taxes, property taxes, and hotel taxes received during the year. These revenue increases were offset by lower than anticipated intergovernmental transfers and charges for services eclipsing favorable fair value adjustments to the City’s fixed income portfolio of approximately $637 thousand. Expenditures of $88.5 million were $4.5 million less than original budgeted expenditures of $93 million as the City experienced significant personnel savings on vacant positions during the fiscal year. The City Council took action to apply a portion of these savings to the Capital Projects and Liability funds for project support via transfers out.

Fiscal year 2022-2023 General Fund expenditures and transfers out of $105.2 million exceeded revenues and transfers in of $99.2 million by $6.0 million. The variance is primarily the result of the utilization of ARPA proceeds received in the prior year.

15 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
Traffic and Housing Mitigation Fund – The City uses this fund to collect developer contributions to be used for major street improvement and housing infrastructure projects. During the year, the fund balance increased from $4.9 million to $5.7 million. Revenues totaled $1.0 million, while $223 thousand was charged against this fund to support the maintenance of the City-wide traffic model and the Grand Avenue Cycle Track project, which would add bicycle facility on the east side of grand Avenue between Fourth Street and Second Street. The balance in the fund is being held in anticipation of major street projects identified in the General Plan 2040 and other qualifying expenditures.

Gas Tax Fund – The City uses this fund to manage its allocation of State gasoline taxes and local funding for street maintenance projects. Gas tax revenues exceeded expenditures and net transfers by $4.9 million in fiscal year 2022- 2023 resulting in an increase in fund balance from $6.9 million to $11.8 million. The activities for the year were all planned and approved project work.

Expenditures during fiscal year 2022-2023 totaled $16.9 million. In addition to routine street-related maintenance of $1.3 million, major expenditures included $10.1 million for the third street rehabilitation project, $1.8 million for slurry seal projects, $1.4 million for third street safety improvements, $946 thousand for parking modifications and other enhancements at Spinnaker Point, and $495 thousand for resurfacing and improvements to Bungalow Avenue.

The largest sources of revenues were $1.1 million in development impact fees, $1.3 million in federal grants, $1.6 million from State gasoline taxes, $1.4 million in State RMRA (Road Maintenance and Rehabilitation Account) funding, $7.8 million in local Measure A and AA funding, and $4.2 million in reimbursements from local agencies.

Essential Facilities Capital Projects Fund – The City uses this fund to account for major capital improvements to public safety facilities. During the year, construction was substantially completed on Fire Stations 54 and 55.

Expenditures during fiscal year 2022-2023 totaled $6.2 million and transfers from the General Fund representing an allocation of Measure E Transaction and Use Tax totaled $587 thousand.

Non-major Governmental Funds – The City’s non-major funds are presented in the basic financial statements in the aggregate. At June 30, 2023, non-major funds had a total fund balance of $29.5 million, a $12.5 million increase over that of the previous year. The largest fund balance decrease, $306 thousand, was recorded in the Measure A Open Space Fund as result of prior year fund balance being drawn down. The largest fund balance increase, $5.4 million, was recorded in the Stormwater Fund as $7.25 million in one-time funds were transferred from the general fund to support the San Quentin pump station repair project during the year.

Adopted Budget Revised Budget Actual
Revenues $96,768 $98,268 $98,099
Transfers in 1,770 1,131 1,131
Total resources 98,538 99,399 99,230
Expenditures 92,971 $94,447 88,450
Operating transfers out 3,307 13,486 13,486
Capital transfers out - 3,307 3,307
Total uses 96,278 111,240 105,243
Net Results $2,260 ($11,841) ($6,013)
Summary of General Fund Budget and Actual
For the fiscal year ended June 30, 2023 (in thousands)
16 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
Of the ending total non-major fund balances of $29.5 million: $25.2 million (86%) is legally restricted for specific purposes by external funding source providers, $4.0 million (14%) is committed for special purposes by the City Council, $119 thousand (less than 1%) is assigned, and $183 thousand (less than 1%) is nonspendable. Additional information about these aggregated non-major funds is presented in the combining statements which immediately follow the required supplementary information.

Proprietary Funds
The City’s proprietary funds are presented in the basic financial statements in a manner similar to that found in the government-wide financial statements, but in more detail. As noted in the Summary of Changes in Net Position – Business-type Activities on page 35, the City’s enterprise fund net position increased by $733 thousand during the fiscal year. The Parking Services Fund is the City’s sole business-type (Enterprise) activity.

The parking services fund’s operating revenue increased by $845 thousand in fiscal year 2022-2023 to $4.7 million.

The enterprise fund operating expenses were $3.3 million in fiscal year 2022-2023, an increase of $1.2 million over the prior fiscal year. The increase in operating revenues was the result of continued recovery from the pandemic driving higher demand for parking. The substantial increase in expenses is a direct result of pension adjustments related to the measurement year ending June 30, 2022, when extraordinary gains were achieved and offset pension expenses for the period. Pension adjustments related to allocated losses incurred during the measurement year ending June 30, 2023, resulted in a reverse of the prior year adjustment, and thereby operating expenditures, resulting in totals more in line with historic norms.

The City’s Internal Service Funds are also reported in this Proprietary Fund classification. In fiscal year 2022-2023, the Internal Service Funds comprised of: Building Maintenance, Vehicle Replacement, Equipment Replacement, Employee Benefits, Liability Insurance, Workers’ Compensation, Dental Insurance, Employee Retirement, OPEB/Retiree Medical, Radio Replacement, Telephone Replacement and Sewer Maintenance. The net position of the Internal Service Funds increased by $4.3 million. Net investment in capital assets increased by $206 thousand, while unrestricted fund balance increased by $4.1 million. The increase in capital assets resulted primarily from vehicle purchases, offset by depreciation of existing capital assets. The increase in unrestricted fund balance reflects increased allocations to the Liability Fund to fund projects resulting from claims as well as increased allocations to the Vehicle Replacement Fund to fund repair and replacement of aging capital assets. The other Internal Service Funds reported small-to-moderate changes to their respective net positions.

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City’s investment in capital assets for its governmental activities as of June 30, 2023, amounts to $311.6 million, net of accumulated depreciation of $211.4 million. This investment in capital assets includes land, buildings, improvements, machinery and equipment, infrastructure, right-to-use lease assets, and construction in progress.

Infrastructure assets are items that are normally immovable and of value only to the City such as roads, bridges, streets and sidewalks, drainage systems, lighting systems, and similar items. The addition to the City’s investment in capital assets for the current fiscal year was $25.3 million, offset by accumulated depreciation of $10.1 million.

Additions to capital assets during fiscal year 2022-2023 included:
• Machinery and Equipment: Vehicles totaling $1.5 million • Infrastructure: $3.7 million
• Bungalow Avenue Rehabilitation - $1.5 million
17 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
• San Rafael Canal Improvements - $1.1 million
• Schoen parking lot conversion - $1.1 million
A comparison of the City’s Capital Assets for the fiscal years ending June 30, 2023 and 2022 is presented below:

Additional information on the City’s capital assets can be found in Note 5 on pages 63 through 64 of this report. * The 2022 balances have been restated to reflect the effects of the implementation of GASB Statement No. 96. See Note 1S for additional information.

Debt Administration
The City’s debt obligations were stable year-over-year and reflect payments of principal made during the year. The debt of the former Redevelopment Agency is reported under the Successor Agency, which is presented as a PrivatePurpose Trust Fund on the Statement of Fiduciary Net Position. (See Note 6 of the financial statements for additional information on the debt obligations of the City and Note 16 for additional information on the Successor Agency.) The City’s long-term obligations for the fiscal years ending June 30, 2023 and 2022 were as follows:
2023
2022
(as restated)*
Governmental Activities
Land $84,026 $84,026
Construction in progress 42,582 22,485
Land improvements 10,852 9,763
Buildings and structures 119,165 119,165
Machinery and equipment 22,016 20,497
Infrastructure 237,123 234,559
Intangible right-to-use leased building 5,476 5,476
Intangible right-to-use leased equipment 258 258
Intangible right-to-use subscription 1,559 1,559
Less accumulated depreciation (211,394) (201,301)
Subtotal Governmental Activities 311,663 296,487
Business-type Activities
Land 8,621 8,621
Buildings and structures 10,714 10,714
Machinery and equipment 1,047 940
Less accumulated depreciation (5,219) (4,994)
Subtotal Business-type Activities 15,163 15,281
Total Capital Assets $326,826 $311,768
Summary of Capital Assets
(in thousands)
18 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
2023 2022
Governmental Activity Debt:
2018 Authority Lease Revenue Bond $44,852 $47,600
2010 Taxable Pension Obligation Bonds 1,805 2,340
PG & E City Hall HVAC Retrofit Note Payable 13 46
PG & E Efficiency Note Payable 531 680
PG & E City Hall Efficiency Note Payable 143 165
Subtotal Governmental Activity Debt 47,344 50,831
Business-Type Activity Debt:

PG & E Parking Lot Lighting Retrofit Note Payable 1 7
2012 Authority Lease Revenue Refunding Bonds 3,708 4,018 Subtotal Business-Type Activity Debt 3,709 4,025
Total Long-Term Obligations $51,053 $54,856
Summary of Long-Term Debt
(in thousands)
19 CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
ECONOMIC CLIMATE AND NEXT YEAR’S BUDGET
The global economy continues to slow as high inflation persists under tighter monetary policy. The International Monetary Fund currently projects global growth to slow from 3.5% in 2022 to 3.0% in 2023, then reduced further to

2.9% in 2024. Policy interest rates are at or close to a peak in most economies and with core inflation remaining stubborn, economies are likely to face mounting fiscal pressure as the cost of debt becomes more burdensome.

Nationally, the economic climate is focused on inflation and corresponding monetary policy surrounding interest rates. The US is likely close to a peak in interest rates as the Federal Reserve has recently signaled at least a pause in its tightening in the short-term as it continues to gather economic data supporting the general slowing of the economy to combat inflation. The country is likely to experience slow growth in the year ahead as the economy continues to grapple with persistent inflation.

In California, the long-forecasted recession appears to be postponed further as consumer spending remains strong and unemployment remains low at 4.6%. However, the housing market remains particularly constrained as high mortgage rates and low affordability put pressure on the sector, currently buoyed by a reduction in supply. Should current economic projections hold, the state may, in fact, weather this period of aggressive monetary policy without falling into an official recession.

Locally, Marin County remains somewhat insulated from more pronounced impacts of the macro environment with an unemployment rate among the lowest in the state at 3.7% and per capita income among the highest. However, the County has been experiencing a labor shortage since the onset of the pandemic that could put pressure on local businesses to perform and lead to inflationary pressures.

In San Rafael, sales and use tax forecasts show the city slowing from post-pandemic boom with a contraction of just over 1 percent for the coming fiscal year. Overall, the city’s revenue sources are budgeted to grow at a rate of less than one percent in fiscal 2023-24, as the economy begins to cool, however remaining at its elevated post-pandemic level. The City’s largest expenditure relates to personnel costs that are tied to labor agreements with each bargaining group. The City’s labor units are all operating under three-year contracts that expire in 2024.

The City heads into the new fiscal year with a strong balance sheet and large capital projects in the pipeline bolstered by use of ARPA funds. Expectations are for large drawdowns on accumulated fund balances as capital projects get underway. However, costs are continuing to rise and certain projects may need to be prioritized to ensure the City does not become overextended.

REQUEST FOR INFORMATION
This financial report is designed to provide our residents, businesses, customers, and investors and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability for providing high quality services within the limits of our fiscal resources. If you have questions about this report or need additional financial information, contact the City of San Rafael – Finance Department at 1400 Fifth Avenue, Room 204, San Rafael, California 94901.
20 CITY OF SAN RAFAEL

STATEMENT OF NET POSITION AND

STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the entire City’s financial activities and financial position. They are also referred to as Government-wide financial statements.

The Statement of Net Position reports the difference between the City’s total assets and deferred outflows of resources and the City’s total liabilities and deferred inflows of resources, including all the City’s capital assets and all its long-term debt. The Statement of Net Position focuses the reader on the composition of the City’s net position, by subtracting total liabilities and deferred inflows of resources from total assets and deferred outflows of resources.

The Statement of Net Position summarizes the financial position of all of the City’s Governmental Activities in a single column, and the financial position of all the City’s Business-type Activities in a single column; these columns are followed by a total column which presents the financial position of the entire City.

The City’s Governmental Activities include the activities of its General Fund, along with all its Special Revenue and Capital Projects Funds. Since the City’s Internal Service Funds service these Funds, their activities are consolidated with Governmental Activities, after eliminating inter-fund transactions and balances. The City’s Business-type Activities include all its Enterprise Fund activities.

The Statement of Activities reports increases and decreases in the City’s net position. It is also prepared on the full accrual basis, which means it includes all the City’s revenues and all its expenses, regardless of when cash changes hands. This differs from the “modified accrual” basis used in the Fund financial statements, which reflect only current assets, current liabilities, deferred outflows/inflows of resources, available revenues, and measurable expenditures.

The Statement of Activities presents the City’s expenses first, listed by program, and follows these with the expenses of its business-type activities. Program revenues - that is, revenues which are generated directly by these programs - are then deducted from program expenses to arrive at the net expense of each governmental and Business-type program. The City’s general revenues are then listed in the Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position.

Both these Statements include the financial activities of the City and the San Rafael Joint Powers Financing Authority which are legally separate but are considered to be component units of the City because they are controlled by the City, which is financially accountable for their activities. The balances and the activities of the San Rafael Sanitation District, a discretely presented component unit, are included in these statements in a separate column.

REVIEW DRAFT 21 10/30/2023
REVIEW DRAFT 10/30/2023

CITY OF SAN RAFAEL

STATEMENT OF NET POSITION
JUNE 30, 2023
Component
Primary Government Unit
San Rafael
Governmental Business-type Sanitation
Activities Activities Total District
ASSETS
Cash and investments available for operations (Note 2) $108,416,439 $580,051 $108,996,490 $47,632,637 Restricted cash and investments (Note 2) 707,371 707,371 Receivables:

Accounts, net 4,164,410 1,164,507 5,328,917 1,884,396
Intergovernmental 9,941,501 9,941,501
Grants 5,740,300 5,740,300
Interest 460,766 460,766
Loans (Note 4A) 3,722,291 3,722,291
Long-term receivable from San Rafael Sanitation District (Note 4G) 2,002,944 2,002,944 Leases receivable (Note 4H) 495,548 495,548
Prepaid expenses and others 290,193 290,193 77,441
Capital assets (Note 5):

Nondepreciable 126,607,764 8,620,853 135,228,617 7,769,106 Depreciable, net 185,055,855 6,541,564 191,597,419 52,320,884 Total Assets 447,605,382 16,906,975 464,512,357 109,684,464

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension (Note 9) 66,395,277 2,005,869 68,401,146 Deferred outflows related to OPEB (Note 11) 6,916,720 105,280 7,022,000 Total Deferred Outflows of Resources 73,311,997 2,111,149 75,423,146

LIABILITIES
Accounts payable 10,472,693 112,966 10,585,659 1,313,903 Developer and other deposits payable 846,711 846,711
Interest payable 31,322 31,322
Unearned revenue 468,456 21,402 489,858
Claims payable (Note 13):

Due in one year 2,886,630 2,886,630
Due in more than one year 12,900,068 12,900,068
Compensated absences (Note 1L):

Due in one year 528,768 16,444 545,212
Due in more than one year 3,701,377 115,104 3,816,481
Long-term debt (Note 6):

Due in one year 3,184,469 320,489 3,504,958
Due in more than one year 44,160,068 3,387,928 47,547,996 Lease liabilities (Note 14):

Due in one year 62,395 62,395
Due in more than one year 5,515,740 5,515,740
Subscription liabilities (Note 14):

Due in one year 226,781 226,781
Due in more than one year 1,115,064 1,115,064
2,002,944
Net OPEB liability, due in more than one year (Note 11) 22,740,857 346,143 23,087,000 Net Pension liability, due in more than one year (Note 9) 102,383,546 3,093,111 105,476,657 Total Liabilities 211,193,623 7,444,909 218,638,532 3,316,847

DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pension (Note 9) 23,357,716 705,660 24,063,376 Deferred inflows related to OPEB (Note 11) 4,385,251 66,749 4,452,000 Deferred inflows related to leases receivable (Note 4H) 469,623 469,623 Total Deferred Inflows of Resources 28,212,590 772,409 28,984,999 NET POSITION (Note 8):

Net investment in capital assets 259,204,102 11,454,000 270,658,102 59,178,014 Restricted for:

Special revenue projects:

Housing and street improvements 19,400,818 19,400,818
Stormwater 6,629,459 6,629,459
Emergency medical services 2,464,501 2,464,501
Other 13,978,369 13,978,369
Capital projects 4,300,186 4,300,186
Total Restricted Net Position 46,773,333 46,773,333
Unrestricted (24,466,269) (653,194) (25,119,463) 47,189,603 Total Net Position $281,511,166 $10,800,806 $292,311,972 $106,367,617 See accompanying notes to financial statements
Long-term payable to the City of San Rafael, due in more than one year (Note 4G) REVIEW DRAFT 23 10/30/2023

CITY OF SAN RAFAEL

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2023
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary Government
Governmental Activities:

General government $11,162,650 $383,890 $985,789
Public safety 49,903,663 7,063,009 2,617,235
Public works and parks 23,353,510 3,146,404 2,980,423 $16,429,375 Community development 4,436,659 4,982,748
Culture and recreation 10,723,168 5,158,806 180,368 2,008,856 Interest on long-term debt and fiscal charges 1,793,203 Total Governmental Activities 101,372,853 20,734,857 6,763,815 18,438,231 Business-type Activities:

Parking services 3,435,551 4,682,140
Total Business-type Activities 3,435,551 4,682,140
Total Primary Government $104,808,404 $25,416,997 $6,763,815 $18,438,231 Component Unit
San Rafael Sanitation District $13,541,927 $16,638,611 $5,531 $175,481 General revenues:

Taxes:

Property
Sales:

Sales and Use
Measure R quarter-cent sales
Measure E half-cent sales
Measure E quarter-cent sales
Paramedic
Transient occupancy
Franchise
Business license
Other
Investment earnings
Gain from sale of capital assets
Miscellaneous
Transfers (Note 3A)
Total general revenues and transfers
Change in Net Position
Net Position, beginning of year
Net Position, end of year
See accompanying notes to financial statements
REVIEW DRAFT 24 10/30/2023
Component
Primary Government Unit
San Rafael
Governmental Business-type Sanitation
Activities Activities Total District
($9,792,971) ($9,792,971)
(40,223,419) (40,223,419)
(797,308) (797,308)
546,089 546,089
(3,375,138) (3,375,138)
(1,793,203) (1,793,203)
(55,435,950) (55,435,950)
$1,246,589 1,246,589
1,246,589 1,246,589
(55,435,950) 1,246,589 (54,189,361)
$3,277,696
33,023,030 33,023,030 2,129,197
26,124,164 26,124,164
4,802,175 4,802,175
9,804,352 9,804,352
4,902,176 4,902,176
5,224,387 5,224,387
3,396,479 3,396,479
4,424,917 4,424,917
2,583,546 2,583,546
2,975,282 2,975,282
1,708,860 8,320 1,717,180 1,328,202
3,233,349 3,233,349 11,759
521,322 (521,322)
102,724,039 (513,002) 102,211,037 3,469,158
47,288,089 733,587 48,021,676 6,746,854
234,223,077 10,067,219 244,290,296 99,620,763
$281,511,166 $10,800,806 $292,311,972 $106,367,617
Net (Expenses) Revenues and Changes in Net Position
REVIEW DRAFT 25 10/30/2023
REVIEW DRAFT 10/30/2023

FUND FINANCIAL STATEMENTS
Major funds are defined generally as having significant activities or balances in the current year. Only individual major funds are presented in the Fund Financial Statements, while non-major funds are combined in a single column. Individual non-major funds may be found in the Supplemental Section.

The funds described below were determined to be major funds by the City in fiscal year 2022-2023:

GENERAL FUND
Established to account for all financial resources necessary to carry out basic governmental activities of the City which are not accounted for in another fund. The General Fund supports essential City services such as police and fire protection, building and street maintenance, libraries, recreation, parks, and open space maintenance.

TRAFFIC AND HOUSING MITIGATION SPECIAL REVENUE FUND
Established to maintain long-term developer contributions for major housing and street improvement projects.

GAS TAX SPECIAL REVENUE FUND
Established to receive and expend the City’s allocation of the State gasoline taxes.

ESSENTIAL FACILITIES CAPITAL PROJECTS FUND
Established to account for major capital improvements to public safety facilities.

REVIEW DRAFT 27 10/30/2023

CITY OF SAN RAFAEL

GOVERNMENTAL FUNDS

BALANCE SHEET
JUNE 30, 2023
Traffic and Essential Other Total
General Housing Facilities Capital Governmental Governmental Fund Mitigation Gas Tax Projects Fund Funds Funds
ASSETS
Cash and investments available for operations (Note 2) $22,962,334 $3,796,390 $8,177,990 $4,117,352 $26,574,041 $65,628,107 Restricted cash and investments (Note 2) 621,650 3,352 82,369 707,371 Receivables:

Accounts 1,771,001 2,393,409 4,164,410
Intergovernmental 9,170,687 392,561 378,253 9,941,501
Grants 45,538 5,004,338 690,424 5,740,300
Interest 454,608 6,158 460,766
Loans (Note 4A) 1,059 1,922,012 1,799,220 3,722,291
Leases (Note 4H) 42,363 453,185 495,548
Prepaids 78,057 182,890 260,947
Total Assets $35,147,297 $5,718,402 $13,574,889 $4,120,704 $32,559,949 $91,121,241

LIABILITIES
Accounts payable $5,537,855 $25,340 $1,739,177 $402,689 $1,955,259 $9,660,320 Deposits payable 278,204 189,388 467,592
Developer deposits payable 375,484 3,635 379,119
Unearned revenue 468,456 468,456
Total Liabilities 6,191,543 25,340 1,739,177 402,689 2,616,738 10,975,487

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 1,147,817 1,147,817
Related to leases (Note 4H) 39,939 429,684 469,623
Total Deferred Inflows of Resources 1,187,756 429,684 1,617,440 Fund Balances (Note 8):

Nonspendable 78,057 182,890 260,947
Restricted 5,693,062 11,835,712 3,718,015 25,202,545 46,449,334 Committed 9,753,000 4,008,844 13,761,844
Assigned 17,272,274 119,248 17,391,522
Unassigned 664,667 664,667
Total Fund Balances 27,767,998 5,693,062 11,835,712 3,718,015 29,513,527 78,528,314 Total Liabilities, Deferred Inflows of Resources
and Fund Balances $35,147,297 $5,718,402 $13,574,889 $4,120,704 $32,559,949 $91,121,241 Special Revenue Funds
See accompanying notes to basic financial statements
28 CITY OF SAN RAFAEL

GOVERNMENTAL FUNDS

BALANCE SHEET - RECONCILIATION OF GOVERNMENTAL

FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES JUNE 30, 2023
Total fund balances reported on the governmental funds balance sheet $78,528,314 Amounts reported for Governmental Activities in the Statement of Net Position are different from those reported in the Governmental Funds because of the following:

Capital assets used in Governmental Activities are not financial resources and, therefore, are not reported in the Governmental Funds. 298,799,407 Internal service funds are used by management to charge the cost of management of 37,966,327
Long-term liabilities, including bonds payable, lease liabilities and subscription liabilities, are not due and payable in the current period and, therefore, are not reported in the Governmental Funds. (53,148,125)
Compensated absences (4,230,145)
Unavailable revenue 1,147,817
Long-term receivable from San Rafael Sanitation District 2,002,944 Deferred outflows related to pension 66,395,277
Net pension liability (102,383,546)
Deferred inflows related to pension (23,357,716)
Deferred outflows related to OPEB 6,916,720
Deferred inflows related to OPEB (4,385,251)
Net OPEB liability (22,740,857)
Net position of governmental activities $281,511,166
building, workers' compensation, employee benefits, insurance, and post-retirement healthcare benefits to individual funds. The assets and liabilities are included in Governmental Activities in the Statement of Net Position.

See accompanying notes to financial statements
REVIEW DRAFT 29 10/30/2023

CITY OF SAN RAFAEL

GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2023
Traffic and Essential Other Total
Housing Facilities Capital Governmental Governmental
General Mitigation Gas Tax Projects Fund Funds Funds

REVENUES
Taxes and special assessments $86,808,092 $9,565,303 $96,373,395 Licenses and permits 3,002,122 3,002,122
Fines and forfeitures 228,966 228,966
Use of money and properties 684,150 $112,664 $79,353 $27,274 319,587 1,223,028 Intergovernmental 3,521,419 225,000 19,123,868 5,720,599 28,590,886 Charges for services 2,843,882 697,658 2,419,840 9,868,715 15,830,095 Other revenue 1,010,712 137,258 1,174,889 2,322,859
Total Revenues 98,099,343 1,035,322 21,760,319 27,274 26,649,093 147,571,351

EXPENDITURES
Current:

General government 13,114,356 744,268 13,858,624
Public safety 47,070,997 11,602,881 58,673,878
Public works and parks 14,602,766 142,969 3,695,723 1,094,130 19,535,588 Community development 5,174,237 16,009 5,190,246
Culture and recreation 3,201,698 9,462,584 12,664,282
Capital outlay 64,050 13,170,654 6,213,497 4,088,639 23,536,840 Debt service:

Principal 3,044,551 3,044,551
Interest and fiscal charges 2,241,875 2,241,875
Total Expenditures 88,450,480 223,028 16,866,377 6,213,497 26,992,502 138,745,884

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 9,648,863 812,294 4,893,942 (6,186,223) (343,409) 8,825,467

OTHER FINANCING SOURCES (USES)
Transfers in (Note 3A) 1,131,142 8,897 32,400 586,926 12,817,453 14,576,818 Transfers out (Note 3A) (16,793,126) (8,897) (18,457) (16,820,480) Total Other Financing Sources (Uses) (15,661,984) 8,897 23,503 586,926 12,798,996 (2,243,662) Net Change in Fund Balances (6,013,121) 821,191 4,917,445 (5,599,297) 12,455,587 6,581,805 FUND BALANCES, BEGINNING OF YEAR 33,781,119 4,871,871 6,918,267 9,317,312 17,057,940 71,946,509 FUND BALANCES, END OF YEAR $27,767,998 $5,693,062 $11,835,712 $3,718,015 $29,513,527 $78,528,314 See accompanying notes to financial statements
Special Revenue Funds
REVIEW DRAFT 30 10/30/2023

CITY OF SAN RAFAEL
Reconciliation of the

NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
with the

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2023
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $6,581,805 Amounts reported for Governmental Activities in the Statement of Activities are different because of the following:

Capital Assets Transactions
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation and amortization expense.

Capital outlay and improvement expenditures are added back to fund balance 23,857,867 Depreciation and amortization expense is deducted from fund balance (8,654,471) (Depreciation and amortization expense is net of internal service fund depreciation and amortization of $1,490,782, which has already been allocated to serviced funds).

Long-Term Debt and Lease Liability Proceeds and Payments Governmental funds record proceeds and payments as other financing sources and expenditures.

However, in the Statement of Net Position, those costs are reversed as increases and decreases in long-term liabilities.

Repayments of long-term debt principal 2,956,642
Amortized bond premium expense is added back to fund balance 507,943 Repayments of lease principal 82,561
Repayments of subscription principal 5,348
Accrual of Non-Current Items
The amount below included in the Statement of Activities does not require the use of current financial Compensated absences 57,666
Unavailable revenue 67,417
Long-term receivable from San Rafael Sanitation District (1,321,117) Net Pension (Asset) Liability Transactions
Governmental funds record pension expense as it is paid. However, in the Statement of Activities those costs are reversed as deferred outflows/(inflows) and an increase/(decrease) in net pension (asset) liability. 16,574,632 Net OPEB Liability Transactions
Governmental funds record OPEB expense as it is paid. However, in the Statement of Activities those costs are reversed as deferred outflows/(inflows) and an increase/(decrease) in net OPEB liability. 2,259,607 Allocation of Internal Service Fund Activities
Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue of the internal service fund is reported with governmental activities. 4,312,189 Change in Net Position of Governmental Activities $47,288,089 resources and therefore is not reported as revenue or expenditures in governmental funds (net change):

See accompanying notes to financial statements
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PROPRIETARY FUND FINANCIAL STATEMENTS
Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges, whether external or internal.

The City reports its only enterprise fund as a major fund.

PARKING SERVICES FUND
Established to maintain parking garages, lots, and spaces in the Downtown Parking District, and to pay for parking enforcement and meter collection.

INTERNAL SERVICE FUNDS
Established to account for department services and financing performed for other departments within the same governmental jurisdiction. Funding comes from charges assessed to the departments benefiting from the service.

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CITY OF SAN RAFAEL

PROPRIETARY FUNDS

STATEMENT OF NET POSITION
JUNE 30, 2023
Business-type
Activities - Governmental
Enterprise Fund Activities
Parking Internal
Services Service Funds
ASSETS
Current Assets:

Cash and investments available for operations (Note 2) $580,051 $42,788,332 Receivable:

Accounts, net 1,164,507
Prepaid expense 29,246
Total Current Assets 1,744,558 42,817,578
Noncurrent Assets:

Capital assets (Note 5):

Nondepreciable 8,620,853 910,869
Depreciable, net 6,541,564 11,953,343
Total Noncurrent Assets 15,162,417 12,864,212
Total Assets 16,906,975 55,681,790

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension (Note 9) 2,005,869 Deferred outflows related to OPEB (Note 11) 105,280
Total Deferred Outflows of Resources 2,111,149

LIABILITIES
Current Liabilities:

Accounts payable 112,966 812,373
Interest payable 31,322
Unearned revenue 21,402
Compensated absences, due in one year (Note 1L) 16,444
Claims payable, due in one year (Note 13) 2,886,630
Long-term debt, due in one year (Note 6) 320,489 21,755 Subscription liabilities, due in one year (Note 14) 221,166 Total Current Liabilities 502,623 3,941,924
Noncurrent Liabilities:

Compensated absences (Note 1L) 115,104
Claims payable (Note 13) 12,900,068
Long-term debt (Note 6) 3,387,928 121,463
Net OPEB liability (Note 11) 346,143
Net pension liability (Note 9) 3,093,111
Subscription liabilities (Note 14) 752,008
Total Noncurrent Liabilities 6,942,286 13,773,539
Total Liabilities 7,444,909 17,715,463

DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pension (Note 9) 705,660
Deferred inflows related to OPEB (Note 11) 66,749
Total Deferred Inflows of Resources 772,409
NET POSITION (Note 8):

Net investment in capital assets 11,454,000 11,747,820
Unrestricted (653,194) 26,218,507
Total Net Position $10,800,806 $37,966,327
See accompanying notes to financial statements
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CITY OF SAN RAFAEL

PROPRIETARY FUNDS

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2023
Business-type
Activities - Governmental
Enterprise Fund Activities
Parking Internal
Services Service Funds

OPERATING REVENUES
Charges for current services $2,284,581 $18,360,583
Other operating revenues 2,397,559 1,133,874
Total Operating Revenues 4,682,140 19,494,457

OPERATING EXPENSES
Personnel 1,631,692 3,917,989
Insurance premiums and claims 9,012,844
Maintenance and repairs 178,555 164,010
Depreciation expense (Note 5) 225,055 1,490,782
General and administrative 1,261,236 3,832,184
Total Operating Expenses 3,296,538 18,417,809
Operating Income 1,385,602 1,076,648

NONOPERATING REVENUES (EXPENSES)
Investment income 8,320 501,564
Miscellaneous revenue 28,976
Interest expense (139,013) (59,271)
(Loss) from disposal of capital assets (712)
Total Nonoperating Revenues (Expenses) (130,693) 470,557 Income Before Contributions and Transfers 1,254,909 1,547,205

TRANSFERS
Transfers in (Note 3A) 3,485,000
Transfers out (Note 3A) (521,322) (720,016)
Net transfers (521,322) 2,764,984
Change in Net Position 733,587 4,312,189
NET POSITION, BEGINNING OF YEAR 10,067,219 33,654,138
NET POSITION, END OF YEAR $10,800,806 $37,966,327
See accompanying notes to financial statements
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CITY OF SAN RAFAEL

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2023
Business-type
Activities - Governmental
Enterprise Fund Activities
Parking Internal
Services Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds $2,284,581 $18,378,748 Cash payments to suppliers for goods and services (1,467,756) (15,071,899) Cash payments to employees for salaries and benefits (2,392,760) (1,367,804) Other revenues 2,105,962 1,133,874
Cash Flows from Operating Activities 530,027 3,072,919

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Miscellaneous revenues 28,976
Interfund revenues 3,485,000
Interfund payments (521,322) (720,016)
Cash Flows from Noncapital
Financing Activities (521,322) 2,793,960

CASH FLOWS FROM CAPITAL

AND RELATED FINANCING ACTIVITIES
Principal payments on revenue bonds and note payable (316,816) (21,754) Principal payments on subscription liability (212,258)
Interest expenses and fiscal charges (142,863) (59,271) Acquisition of capital assets (106,742) (1,463,889)
Cash Flows from Capital and
Related Financing Activities (566,421) (1,757,172)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 8,320 501,564
Cash Flows from Investing Activities 8,320 501,564
NET CHANGE IN CASH AND CASH EQUIVALENTS (549,396) 4,611,271 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 1,129,447 38,177,061 CASH AND CASH EQUIVALENTS, END OF YEAR $580,051 $42,788,332 Reconciliation of operating income to net cash
provided by operating activities:

Operating income $1,385,602 $1,076,648
Adjustments to reconcile operating income
to cash flows from operating activities:

Depreciation 225,055 1,490,782
Net change in assets and liabilities:

Accounts receivable (287,201) 18,165
Prepaids (24,786)
OPEB-related items (34,393)
Accounts payable (27,965) 327,134
Unearned revenue (4,396)
Compensated absence obligations 23,401
Pension-related items (750,076)
Claims payable 184,976
Net Cash Provided by Operating Activities $530,027 $3,072,919 NON-CASH TRANSACTIONS:

Retirement of capital assets ($712)
Amortization of bond discount $725
See accompanying notes to basic financial statements
REVIEW DRAFT 36 10/30/2023

FIDUCIARY FUND FINANCIAL STATEMENTS
Fiduciary funds are used to account for assets held by the City as an agent or custodian for other entities.

The financial activities of such funds are excluded from the Government-wide financial statements and present fund statements that consist of a Statement of Net Position and a Statement of Changes in Net Position.

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY – PRIVATE PURPOSE

TRUST FUND
Established to account for the activities of the Successor Agency to the San Rafael Redevelopment Agency.

PT. SAN PEDRO ROAD ASSESSMENT DISTRICT CUSTODIAL FUND
Established to accumulate funds for payment of principal and interest for Pt. San Pedro Road Median Landscaping Assessment District bonds.

REVIEW DRAFT 37 10/30/2023
Successor Agency
to the Pt. San Pedro
Redevelopment Road Assessment
Agency District
Private-Purpose Custodial
Trust Fund Fund
ASSETS
Cash available for operations (Note 2) $135,693 $241,301 Receivables:

Taxes 65,000 752
Total Assets 200,693 242,053

LIABILITIES
Interest payable 18,816
Total Liabilities 18,816

NET POSITION
Restricted for:

Bondholders 200,693 223,237
Total Net Position $200,693 $223,237
See accompanying notes to financial statements

CITY OF SAN RAFAEL

FIDUCIARY FUNDS

STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2023
REVIEW DRAFT 38 10/30/2023
Successor Agency
to the Pt. San Pedro
Redevelopment Road Assessment
Agency District
Private-Purpose Custodial
Trust Fund Fund

ADDITIONS
Property taxes $630,000 $172,083
Total Additions 630,000 172,083

DEDUCTIONS
General government 114,870 9,758
Payments to bondholders 84,100
Interest expense 13,046 57,184
Total Deductions 127,916 151,042
Change in Net Position 502,084 21,041

NET POSITION
Beginning of year (301,391) 202,196
End of year $200,693 $223,237

CITY OF SAN RAFAEL

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2023
See accompanying notes to financial statements
REVIEW DRAFT 39 10/30/2023
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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Description of the Financial Reporting Entity
As required by generally accepted accounting principles, the financial statements present the City of San Rafael (the City) as the Primary Government, with its component units for which the City is considered financially accountable. The component units discussed below are included in the City's reporting entity because of the significance of their operational and financial relationships with the City.

B. Description of Blended Component Unit
The accompanying basic financial statements include all funds and boards and commissions that are controlled by the City Council. The basic financial statements include the City’s blended component units, entities for which the City is considered to be financially accountable. A blended component unit, although a legally separate entity, is in substance, part of the City’s operations and so data from this entity is combined with the City. The City’s blended component unit is described below.

San Rafael Joint Powers Financing Authority – The San Rafael Joint Powers Financing Authority (Authority) was formed by the City of San Rafael and the former San Rafael Redevelopment Agency (Agency) pursuant to Articles 1 and 2 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California for the purpose of assisting in the financing and refinancing of certain assessment district and redevelopment-related activities in the City. On March 18, 2013, the Agency was replaced by the California Municipal Finance Authority (CMFA) in order to allow the life of the Authority to extend beyond that of the Agency. The Authority is administered by a governing board whose members are the City Council of the City.

Activities of the Authority related to the 2012 Authority Lease Revenue Refunding Bonds are reported in the Parking Services Enterprise Fund. Activities of the Authority related to the 2018 Authority Lease Revenue Bonds are reported in the City’s General Fund. Separate financial statements are not prepared for the Authority.

C. Description of Discretely Presented Component Unit
San Rafael Sanitation District – The San Rafael Sanitation District (District) was formed in 1947 under Section 4700 of the California Health and Safety Code to provide wastewater transmission over the southern two-thirds of the City and adjacent unincorporated areas.

The District is governed by a three-member Board of Directors who are appointed to four-year terms. The City Council of the City appoints two out of the three board members and has the ability to remove the two board members at will.

The City contracts with the District to maintain the collection systems in the City and surrounding unincorporated areas. These employees are paid through the City’s payroll department and participate in the City’s cost-sharing multiple-employer defined benefit pension plan administered by the Marin County Employees’ Retirement Association. The employees also participate in the City’s healthcare benefits plan which includes a provision for postemployment benefits. These costs are the obligation of the District and not the City. As discussed in Note 4G, a receivable from the District has been established.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The District’s activities are reported as a discretely presented component unit in a separate column in the basic financial statements which includes the District’s assets, liabilities, revenues, expenses, and results of operations. The District’s fiscal year ends on June 30 and its separately issued component unit financial statements can be obtained at the San Rafael Sanitation District, 111 Morphew Street, San Rafael, California 94901.

D. Basis of Presentation
Government-wide Statements – The Statement of Net Position and the Statement of Activities display information about the primary government (the City) and its component units. These statements include the financial activities of the overall City government, except for fiduciary activities. Interfund transfers and amounts owed between funds within the primary government have been eliminated from the statements. Amounts representing interfund services and uses remain in the statements. These statements distinguish between the governmental and businesstype activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties.

The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

Fund Financial Statements – The fund financial statements provide information about the City’s funds, including fiduciary funds and blended component units. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as non-major funds.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities.

E. Major Funds and Other Reported Funds
Major funds are defined as funds that have either assets and deferred outflows of resources, liabilities and deferred inflows of resources, revenues, or expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand total. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The City reported the following major governmental funds in the accompanying financial statements:

General Fund – Established to account for all financial resources necessary to carry out basic governmental activities of the City which are not accounted for in another fund.

Traffic and Housing Mitigation Special Revenue Fund – Established to maintain long-term developer contributions for major housing and street improvement projects.

Gas Tax Special Revenue Fund – Established to receive and expend the City’s allocation of State gasoline taxes.

Essential Facilities Capital Projects Fund – Established to account for major capital improvements to public safety facilities.

The City reported its only enterprise fund as a major fund in the accompanying financial statements. The enterprise fund is:

Parking Services Fund – Established to maintain parking garages, lots, and spaces in the Downtown Parking District, and to pay for parking enforcement, meter collection, and downtown enforcement services.

The City also reports the following fund types:

Internal Service Funds – These funds account for: building maintenance; vehicle, equipment, radio, and telephone replacement; employee benefits; liability insurance; workers’ compensation; dental insurance; employee retirement; retiree medical (OPEB); and sewer maintenance.

Fiduciary Funds – These funds include: Successor Agency to the Redevelopment Agency PrivatePurpose Trust Fund – which accounts for the accumulation of resources held by the Successor Agency to the Redevelopment Agency to be used for payments at appropriate amounts and times in the future; and Pt. San Pedro Road Assessment District Custodial Fund – which accumulates funds for the payment of principal and interest for Pt. San Pedro Road Median Landscaping District bonds. The financial activities of these funds are excluded from the government-wide financial statements, but are presented in the separate Fiduciary Fund financial statements.

F. Basis of Accounting
The government-wide, proprietary, fiduciary and discretely presented component unit financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year-end with the exception of sales and use tax revenues which are reported as available if collected within ninety days of yearend. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on long-term debt, including lease and subscription liabilities, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions, including entering into contracts giving the City the right-to-use leased assets, are reported as expenditures in governmental funds. Proceeds from long-term debt and financing through leases are reported as other financing sources.

Those revenues susceptible to accrual are property and sales taxes, certain intergovernmental revenues, interest revenue, charges for services, fines, and forfeitures. Other receipts and taxes are recognized as revenue when the cash is received.

Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange include taxes, grants, entitlements, and donations. On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Under the terms of grant agreements, the City may fund certain programs with a combination of cost-reimbursement grants, categorical block grants, and general revenue. Thus, both restricted and unrestricted net position may be made available to finance program expenditures. The City’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.

The City considers restricted shared state revenues such as gasoline taxes and public safety sales taxes, restricted locally imposed transportation sales taxes, fines, forfeitures, licenses, permits, charges for services, and program grants as program revenues.

Certain indirect costs are included in program expenses reported for individual functions and activities.

G. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) In addition to liabilities, the statement of financial position or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

Unavailable revenue, a type of deferred inflow of resources, is reported in the governmental funds balance sheet. The governmental funds report unavailable revenues from intergovernmental receivables and deferred amounts related to leases. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

H. Budgets, Budgetary Accounting, and Encumbrances
The City adopts an annual budget which is effective July 1 for the ensuing fiscal year. The budget reflects estimated revenues and expenditures, except for the capital projects funds. Appropriations and spending authorizations for projects in the capital projects funds and some special revenue funds are approved by the City Council on a multi-year basis. From the effective date of the budget, which is adopted at the department level, the amounts stated therein as proposed expenditures become appropriations to the various City departments. The City Council may amend the budget by resolution during the fiscal year in order to respond to emerging needs, changes in resources, or shifting priorities. Expenditures may not exceed appropriations at the fund level, which is the legal level of control. The City Manager is authorized to transfer budgeted amounts between accounts, departments, or funds; the Council must approve any increase in the City’s operating expenditures, appropriations for capital projects, and transfers between major funds and reportable fund groups.

Budgets are adopted on a basis consistent with Generally Accepted Accounting Principles for the General Fund and Special Revenue Funds.

Encumbrance accounting, under which purchase orders for expenditures are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of the budgetary process. All unencumbered appropriations lapse at year end.

I. Cash Equivalents
For purposes of the statement of cash flows, the City considers all highly liquid investments (including all restricted assets) with maturities of three months or less when purchased to be cash equivalents. The City maintains a cash and investment pool that is available for use by all funds.

As the proprietary funds' share of this pool is readily available when needed, such share is also considered to be cash equivalent.

J. Prepaids
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) K. Capital Assets
City
Contributed capital assets are valued at their estimated acquisition value on the date contributed.

Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are recorded at acquisition value. All other capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available, except for intangible right-to-use lease assets and intangible right-to-use subscription assets, the measurement of which is discussed in Note 1R and Note 1S, respectively, below. Major outlays for capital assets and improvements are capitalized as projects are constructed.

City policy has set the capitalization thresholds for reporting capital assets at the following:

General capital assets ranging from $5,000 to $50,000
Infrastructure capital assets ranging from $25,000 to $250,000 Depreciation is provided using the straight-line method which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each year represents that year’s pro rata share of the cost of capital assets.

The City has assigned the useful lives listed below to capital assets:

Buildings, improvements, and structures 20 – 50 years
Machinery and equipment 4 – 20 years
Infrastructure 15 – 50 years
Right to use leased building 35 years
Right to use leased equipment 1.5 – 5 years
Right to use subscription asset 5 – 10 years
District
Collection systems and facilities purchased or constructed are stated at cost. Assets contributed are recorded at the estimated acquisition value at the date received. Interest is capitalized for assets constructed when applicable. The costs of normal repairs and maintenance that do not add to the value of an asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related capital assets, as applicable.

Applicable capital assets must be capitalized for amounts $1,000 or above and may be capitalized for amounts from $500 to $1,000 if determined to be sensitive. Depreciation is provided by the straight-line method over the estimated useful lives of capital assets as follows:

Subsurface lines 50 – 80 years
Sewage collection facilities 5 – 50 years
General plant and administrative facilities 3 – 15 years REVIEW DRAFT 46 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) L. Compensated Absences
Compensated absences are accrued as earned. Upon termination, employees are paid for all unused vacation at their current hourly rates. Unused sick leave may be compensable up to 600 hours, depending upon the provisions of the MOUs, which vary by bargaining unit.

The long-term portion of the liability for compensated absences for governmental fund type operations is recorded as compensated absences in the government-wide financial statements.

Compensated absences are liquidated by the fund that has recorded the liability. Proprietary fund liabilities are recorded within their respective funds. The long-term portion of governmental activities compensated absences is liquidated primarily by the General Fund.

The changes in compensated absences as of June 30, 2023 were as follows:

Governmental Business-Type
Activities Activities Total
Beginning Balance $4,287,811 $108,147 $4,395,958
Additions 3,003,055 90,749 3,093,804
Payments (3,060,721) (67,348) (3,128,069)
Ending Balance $4,230,145 $131,548 $4,361,693
Current Portion $528,768 $16,444 $545,212
M. Property Tax Levy, Collection and Maximum Rates – City State of California Constitution Article XIII A provides that the combined maximum property tax rate on any given property may not exceed 1% of its assessed value unless an additional amount for general obligation debt has been approved by voters. Assessed value is calculated at 100% of market value as defined by Article XIII A and may be adjusted by no more than 2% per year unless the property is sold, transferred, or substantially improved. The State Legislature has determined the method of distribution of receipts from a 1% tax levy among the counties, cities, school districts and other districts. Marin County assesses properties, bills for, and collects property taxes on the schedule that follows:

Secured Unsecured
Valuation/lien dates January 1 January 1
Levy dates July 1 July 1
Due dates (delinquent as of) 50% on November 1 (December 10) July 1 (August 31) 50% on February 1 (April 10)
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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) For assessment and collection purposes, property is classified as either “secured” or “unsecured” and is listed accordingly on separate parts of the assessment roll. The “secured roll” is that part of the assessment roll containing State-assessed property and real property having a tax lien that is sufficient, in the opinion of the County Assessor, to secure payment of the taxes. Unsecured property comprises all taxable property not attached to land, such as personal property or business property.

Every tax levied by a county that becomes a lien on secured property has priority over all present and future private liens arising pursuant to State law on the secured property, regardless of the time of the creation of the other liens. A tax levied on unsecured property does not become a lien against the taxed unsecured property, but may become a lien on other property owned by the taxpayer.

Property taxes are levied and recorded as revenue when received in the fiscal year of levy because of the adoption of the “alternate method of property tax distribution,” known as the Teeter Plan, by the City and the County of Marin. The Teeter Plan authorized the auditor-controller of the County of Marin to allocate 100% of the secured property taxes billed, but not yet paid. The County of Marin remits tax monies to the City in three installments, as follows:
55% remitted on December 15
40% remitted on April 15
5% remitted on June 15
N. Sewer Charges – District
Sewer charges are billed and collected on behalf of the District by the County of Marin as a special assessment on annual property tax billings. Property taxes are levied on January 1 and are due in two equal installments on November 1 and February 1 and become delinquent December 10 and April 10, for the first and second installments, respectively. In accordance with the Teeter Plan, the County remits to the District all charges which are assessed and the county retains responsibility for collecting past due amounts.

The Teeter Plan provides that the County advance the District its share of the annual gross levy of secured property taxes and special assessments. In consideration, the District gives the County of Marin its rights to penalties and interest on delinquent secured property tax receivables and actual proceeds collected.

O. Connection Fees – District
Connection fees represent a one-time contribution of resources to the District imposed on contractors and developers for the purpose of financing capital improvements. Connection fees are recognized after non-operating revenues (expenses) in the statement of revenues, expenses, and changes in net position. The District utilizes connection fees received on a first-in-first-out basis to finance current year capital projects. Accordingly, if there is a balance of connection fees available at year-end, it is classified as restricted net position.

REVIEW DRAFT 48 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) P. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market.

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 inputs are inputs – other than quoted prices included within level 1 – that are observable for an asset or liability, either directly or indirectly.

Level 3 inputs are unobservable inputs for an asset or liability.

If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement.

Q. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent asset and liabilities at the dates of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting periods.

Actual results could differ from those estimates.

R. Leases
A lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment.

Lessee – The City is a lessee for noncancelable leases of equipment and land. The City recognizes a lease liability and an intangible right‐to‐use lease asset (lease asset) in the government‐wide financial statements. The City recognizes lease liabilities in accordance with the capitalization policy for the underlying asset as discussed in Note 1K.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight‐line basis over the lesser of its useful life or the life of the lease agreement.

REVIEW DRAFT 49 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments as follows:
• The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases. • The lease term includes the noncancelable period of the lease. • Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise, if applicable.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease assets are reported with other capital assets and lease liabilities are reported with long-term lease liabilities on the statement of net position.

Lessor – The City is a lessor for noncancellable leases of certain buildings and land. The City recognizes a lease receivable and a deferred inflow of resources in the government‐wide and governmental fund financial statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts as follows:
• The City uses its estimated incremental borrowing rate as the discount rate for leases. • The lease term includes the noncancelable period of the lease. • Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

REVIEW DRAFT 50 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) S. Subscription-Based Information Technology Arrangements (SBITAs) A Subscription-Based Information Technology Arrangement (SBITA) is a contract that conveys control of the right to use another party’s (a SBITA vendor’s) IT software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction.

At the commencement of a SBITA, the City initially measures the subscription liability at the present value of payments expected to be made during the contract term. Subsequently, the subscription liability is reduced by the principal portion of payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for payments made at or before the SBITA commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straight‐line basis over shorter of the subscription term or the useful life of the underlying IT assets.

Key estimates and judgments related to SBITAs include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments as follows:
• The City uses the interest rate charged by the IT vendor as the discount rate. When the interest rate charged by the IT vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for subscription liabilities. • The subscription term includes the noncancellable period of the subscription. • Subscription payments included in the measurement of the subscription liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its subscription and will remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.

Subscription assets are reported with other capital assets and subscription liabilities are reported with long-term debt on the statement of net position.

T. New Accounting Pronouncements
GASB Statement No. 96 – In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements. The primary objective of this Statement is to improve financial reporting by establishing a definition for subscription-based information technology arrangements (SBITAs) and providing uniform guidance for accounting and financial reporting for transactions that meet that definition. The provisions of this Statement were implemented during fiscal year 2023. As part of the implementation of this Statement, the City has accounted for certain subscription transactions, which require the restatement of beginning net position of the governmental activities capital assets and subscription liabilities in the amount of $1,559,451, and the net effect on beginning net position and fund balance is zero. See the subscription disclosure in Note 14.

REVIEW DRAFT 51 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 2 – CASH AND INVESTMENTS
A. Policies
The City maintains an investment policy that emphasizes safety, liquidity, and reasonable market yield. This policy is reviewed and approved by the City Council annually.

The City invests in individual investments and in investment pools. Individual investments are evidenced by specific identifiable securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system. In order to increase security, the City employs the trust department of a bank as the custodian of certain City managed investments, regardless of their form.

California Law requires banks and savings and loan institutions to pledge government securities with a market value of 110% of the City’s cash on deposit, or first trust deed mortgage notes with a market value of 150% of the deposit, as collateral for these deposits. Under California Law this collateral is held in a separate investment pool by another institution in the City’s name and places the City ahead of general creditors of the institution.

The City’s investments are carried at fair value, as required by generally accepted accounting principles. The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.

B. Classification
Cash and investments as of June 30, 2023, are classified in the financial statements as shown below, based on whether or not their use is restricted under the terms of City debt instruments or agency agreements.

Statement of Net Position:

City of San Rafael:

Cash and investments available for operations $108,996,490 Restricted cash and investments 707,371
Total Primary Government Cash and Investments 109,703,861 San Rafael Sanitation District (Component Unit):

Cash and investments available for operations 47,632,637 Total San Rafael Sanitation District Cash and Investments 47,632,637 Statement of Fiduciary Net Position (separate statement):

Successor Agency to the Redevelopment Agency Private Purpose Trust Fund:

Cash available for operations 135,693
Pt. San Pedro Road Assessment District Custodial Fund:

Cash available for operations 241,301
Total Fiduciary Fund Cash and Investments 376,994
Total Cash and Investments $157,713,492
REVIEW DRAFT 52 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 2 – CASH AND INVESTMENTS (Continued)
The City does not normally allocate investments by fund. Each proprietary fund’s portion of Cash and Investments Available for Operations is in substance a demand deposit available to finance operations and is considered a cash equivalent in preparing the statement of cash flows.

C. Investments Authorized by the California Government Code and the City’s Investment Policy The City’s investment policy and the California Government Code allow the City to invest in the following securities provided the credit ratings of the issuers are acceptable to the City and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code, or the City’s Investment Policy where it is more restrictive:

Minimum Maximum Maximum
Maximum Credit Percentage of Investment in
Authorized Investment Type Maturity Quality (a) Portfolio (a) One Issuer U.S. Government Obligations 5 years N/A No limit No limit Federal Agency Securities and Instruments 5 years N/A No limit No limit Repurchase Agreements 1 year N/A No limit No limit
Prime Commercial Paper 270 days A-1 25% 10% of total outstanding commercial paper and
5% of portfolio
Banker's Acceptances 180 days A-1 40% $2,000,000
Medium-Term Corporate Notes 5 years A 30% 5% of portfolio Negotiable Certificates of Deposit 5 years A-1 30% 5% of portfolio Non-negotiable Certificates of Deposit 5 years N/A 30% 5% of portfolio Local Agency Investment Fund N/A N/A N/A $75m per Account Money Market Funds N/A AAA 10% N/A
Mortgage and Asset-Backed Obligations 5 years AA 20% N/A Supranational Securities 5 years AA 15% N/A
Limited Obligation Improvement Bonds Related to
Special Assessment Districts and Special Tax
Districts issued by the City of San Rafael 30 years N/A N/A N/A (a) At time of purchase
The San Rafael Sanitation District maintains all of its cash in the County of Marin pooled investment fund for the purpose of increasing interest earnings through pooled investment activities.

The County Pool includes both voluntary and involuntary participation from external entities.

The District is a voluntary participant. The State of California statutes require certain special districts and other governmental entities to maintain their cash surplus with the County Treasurer.

The District has approved by resolution, the investment policy of the County of Marin which complies with the California Government Code.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 2 – CASH AND INVESTMENTS (Continued)
D. Investments Authorized by Debt Agreements
The City must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged as reserves to be used if there are insufficient resources to meet debt repayment obligations. The California Government Code requires these funds to be invested in accordance with City ordinance bond indentures or State statute. The table below identifies the investment types that are authorized for investments held by fiscal agents. The table also identifies certain provisions of these debt agreements:

Maximum
Maturity
U.S. Treasury Obligations 5 years to no
maximum
N/A No Limit
U.S. Agency Securities 3 - 5 years N/A No Limit
U.S. Agency Instruments 5 years N/A No Limit
Repurchase Agreements 1 year A-1 No Limit
Bankers’ Acceptances 360 days Highest Category Rating No Limit Money Market Mutual Funds N/A Highest Category Rating No Limit Prime Commercial Paper 270 days Highest Category Rating No Limit N/A Highest Category Rating No Limit
Medium-Term Corporate Notes 5 Years A No Limit
Non-Negotiable Certificates of Deposit 180 Days N/A No Limit Negotiable Certificates of Deposit 5 Years N/A No Limit Local Agency Investment Fund N/A N/A No Limit
California Asset Management Program N/A N/A No Limit
Deposit Accounts N/A A No Limit
State or Local Bonds N/A A No Limit
Defeasance Securities N/A N/A No Limit
(a) At time of purchase.
(b) Guaranteed Investment Contracts must be fully collaterized with U.S. Treasury Obligations or U.S. Agency Obligations.

Source: PYFS; In FY 2021, eliminated Muni, State and Local Bonds because those should not be listed here.

Maximum Percentage
of Portfolio
Guaranteed Investment Contracts (fully collateralized)
(b)
Authorized Investment Type Minimum Credit Quality (a)
REVIEW DRAFT 54 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 2 – CASH AND INVESTMENTS (Continued)
E. Fair Value Hierarchy
The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2023:
(a) (b) (c)
Level 1 Level 2 Level 3 Total
City:

Money Market Funds $1,470,184 $1,470,184
U.S. Government Obligations $15,306,615 15,306,615
Federal Agency Securities and Instruments 8,669,294 8,669,294 Medium-Term Corporate Notes 19,536,092 19,536,092
Investment in Pt. San Pedro Bonds $949,493 (d) 949,493
$15,306,615 $29,675,570 $949,493 45,931,679
Investments Exempt from Fair Value Hierarchy:

Local Agency Investment Fund 50,235,434
Marin County Investment Pool 82,372
Total Investments 96,249,484
Cash in banks and on hand 13,454,377
Total City Cash and Investments 109,703,861
Fiduciary:

Cash in banks 376,994
Total Fiduciary Cash 376,994
Total City and Fiduciary Cash and Investments 110,080,855 San Rafael Sanitation District:

Marin County Investment Pool 47,632,637
47,632,637
Total Cash and Investments $157,713,492
Source: The above GASB 72 Classifications in the different input levels are provided by US Bank. (a)
(b)
(c)
(d) This pertains to the City-owned bonds of its investments in Pt. San Pedro Special Assessment District that has no trading market and is thus listed under Level 3. This bond is valued using discounted cash flow techniques.

District's Total Cash and Investments
Level 1 inputs are quoted prices in active market for identical assets. These are quoted prices in active markets for identical assets at the measurement date. An active market for the asset is a market in which transactions for the asset occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 inputs are significant other observable inputs. These inputs include: a) Quoted prices for similar assets in active markets; b) Quoted prices for identical or similar assets in markets that are not active; and c) Inputs other than quoted prices that are observable for an asset.

Level 3 inputs are significant unobservable inputs. These inputs shall be used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset at the measurement date.

REVIEW DRAFT 55 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 2 – CASH AND INVESTMENTS (Continued)
F. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City also manages its interest rate risk by holding most investments to maturity, thus reversing unrealized market gains and losses.

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity or earliest call date:
12 Months More than
Type of Investment or Less 12 Months Total
City:

Money Market Funds $1,470,184 $1,470,184
Local Agency Investment Fund 50,235,434 50,235,434
Marin County Investment Pool 82,372 82,372
U.S. Government Obligations 5,955,576 $9,351,039 15,306,615 Federal Agency Securities and Instruments 3,656,808 5,012,486 8,669,294 Medium-Term Corporate Notes 6,842,781 12,693,312 19,536,092 Investment in Pt. San Pedro Bonds 949,493 949,493
Total Investments $68,243,154 $28,006,330 96,249,484
Cash in banks and on hand 13,454,377
Total City Cash and Investments 109,703,861
Fiduciary:

Cash in banks 376,994
Total Fiduciary Cash 376,994
Total City and Fiduciary Cash and Investments 110,080,855 San Rafael Sanitation District:

Marin County Investment Pool 47,632,637
Total District's Cash and Investments 47,632,637
Total Cash and Investments $157,713,492
REVIEW DRAFT 56 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 2 – CASH AND INVESTMENTS (Continued)
The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The balance is available for withdrawal on demand, and is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Each regular LAIF account is permitted to have up to 15 transactions per month, with a minimum transaction amount of $5,000, a maximum transaction amount of $75 million and at least 24 hours advance notice for withdrawals of $10 million or more.

Included in LAIF’s investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, government-sponsored enterprises, United States Treasury Notes and Bills, and corporations. At June 30, 2023, these investments matured in an average of 260 days.

Money Market Mutual Funds are available for withdrawal on demand. The investment portfolio of the Money Market Mutual Fund had an average maturity of 12 days per August fact sheet.

The County’s investment pool is not registered with the Securities and Exchange Commission as an investment company. The pool has a credit rating of “AAA/V1.” Investments made by the Treasurer are regulated by the California Government Code and by the County’s investment policy. The objectives of the policy are in order of priority, safety, liquidity, yield, and public trust. The County has established a treasury oversight committee to monitor and review the management of public funds maintained in the investment pool in accordance with Article 6 Section 27131 of the California Government Code. The oversight committee and the Board of Supervisors review and approve the investment policy annually. The County Treasurer prepares and submits a comprehensive investment report to the members of the oversight committee and the investment pool participants every month.

The report covers the types of investments in the pool, maturity dates, par value, actual costs, and fair value.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 2 – CASH AND INVESTMENTS (Continued)
G. Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the actual rating as of June 30, 2023, for each of the City’s or District’s investment types as provided by Standard and Poor’s or Moody’s investment rating systems, except as noted:

Percentage
Amount of
Investments Invested Investments NRSRO Rating
City:

Money Market Funds $1,470,184 2% AAAm
Marin County Investment Pool 82,372 < 1% AAA/V1
U.S. Government Obligations 15,306,615 16% AAA
Federal Agency Securities and Instruments 8,669,294 9% AAA Medium-Term Corporate Notes 19,536,092
20%
AAA, AA2, AA3, A1, A2,
A3
Local Agency Investment Fund 50,235,434 52% Not Rated
Investment in Pt. San Pedro Bonds 949,493 1% Not Rated
Total City Investments 96,249,484
San Rafael Sanitation District:

Marin County Investment Pool 47,632,637 AAA/V1
Total Investments $143,882,121
H. Concentration Risk
Investments in the securities of any individual issuers, other than U.S. Treasury securities, mutual funds, and external investment pools, that represent 5% or more of the total entity–wide investments are as follows at June 30, 2023:

Percentage
of
Reporting Unit Issuer Investment Type Amount Investments Entity-wide Federal Home Loan Bank Federal Agency Securities and Instruments $6,122,080 6% REVIEW DRAFT 58 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 3 – INTER-FUND TRANSACTIONS
A. Transfers
Resources may be transferred from one City fund to another. Transfers routinely fund capital projects or capital outlays, lease or debt service payments, and operating expenses.

Transfers between funds during the fiscal year ended June 30, 2023, were as follows:

From Fund To Fund Amount
General Fund Essential Facilities Capital Projects Fund $586,926 (A) Non-Major Governmental Funds 12,721,200 (A) (B)
Internal Service Funds (A) 3,485,000
Gas Tax Special Revenue Fund Traffic and Housing Mitigation Special Revenue Fund 8,897 (B) Parking Services Enterprise Fund General Fund 436,322 (C) Non-Major Governmental Funds 85,000 (A)
Internal Service Funds General Fund 683,750 (C)
Gas Tax Special Revenue Fund 25,013 (A)
Non-Major Governmental Funds 11,253 (A)
Non-Major Governmental Funds General Fund 11,070 (B)
Gas Tax Special Revenue Fund 7,387 (B)
$18,061,818
(A) Transfers for administrative costs, grant matching, recreation, and other program support. (C) Transfers for debt service.
(B) Transfers for project support.

NOTE 4 – LOANS AND LEASES RECEIVABLE
A. Summary of Loans Receivable
The City has identified the portion of fund balance represented by these loans as nonspendable or restricted as discussed in Note 8. As of June 30, 2023, these loans consisted of the following:

Employee Loans $1,059
Centertown Associates 936,446
3301 Kerner 862,774
One "H" Street Associates 28,574
Vivalon 1,893,438
Total $3,722,291
REVIEW DRAFT 59 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 4 – LOANS AND LEASES RECEIVABLE (Continued)
B. Employee Loans
The City administers a computer loan program that supports the use of technology by employees.

Employees are permitted to borrow up to $1,500 for the purchase of computer hardware and software. The loans are interest-free, have maximum terms of one year, and are repaid through automatic payroll deductions. As of June 30, 2023, the balance of the employee loans receivable was $1,059.

C. Centertown Associates Loan
On August 20, 1990, the former Redevelopment Agency loaned Centertown Associates, Ltd, $303,000 at 3% interest due semiannually for the construction of a 60-unit affordable apartment complex and was fully secured by a deed of trust. With the dissolution of the Redevelopment Agency effective February 1, 2012, the assets of the Agency’s Low and Moderate Income Housing Fund, including the Centertown Associates loan, were assumed by the City’s Low and Moderate Income Housing Special Revenue Fund. On October 22, 2021, City Council approved the Amended and Restated Promissory Note for the loan. The amendment extended the due date to October 22, 2078, for the original loan balance of $266,781 consisting of $219,982 in remaining principal and $46,799 in accrued interest as of the date of the amended loan agreement.

In addition, the amendment included an additional loan in the amount of $643,095 for a ground lease for certain land located at 855 C Street, currently improved with approximately sixty units of affordable housing. Interest is compounded at 1.74% annually and is repayable from residual receipts as defined under the agreement. Repayment is due on October 22, 2078. The amended note is secured by a Leasehold Deed of Trust with Assignment of Rents and Security Agreement on the Property. As of June 30, 2023, the balance of the loan including principal and accrued interest was $936,446.

D. 3301 Kerner Loan
On March 21, 2023, the City entered into a loan agreement in the amount of $857,500 to fund the construction of a 41-unit multifamily rental housing development affordable to homeless or formerly homeless households with mental illness at rents affordable to extremely low- and very low- income households. The term is the later of (a) the fifty-seventh anniversary of the date the Deed of Trust is recorded in the Recorder’s Office of Marin County or (b) the fifty-fifth anniversary of the date on which construction financing is converted into permanent financing.

Annual payments equal to the City’s proportionate share of residual receipts attributable to the prior calendar year are due beginning June 1st after the end of the calendar year of the date that the construction loan for the property converts to a permanent loan. The note is secured by a Deed of Trust. As of June 30, 2023, the balance of the loan and accrued interest was $862,774.

E. One “H” Street Associates Loan
On January 18, 1994, the City loaned One “H” Street Associates $100,000 at zero percent interest with annual payments of $2,857 and the final payment is due January 18, 2034. As of June 30, 2023, the balance of this loan was $28,574.

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CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 4 – LOANS AND LEASES RECEIVABLE (Continued)
F. Vivalon Loan
On April 1, 2022, the City entered into a loan agreement in the amount of $1,825,000 to fund construction of the Vivalon Healthy Aging Center located at 999 3rd Street. The site will include 66 one-bedroom and studio units for older adults and approximately 20% of the units will be supportive housing. The term is the later of (a) the fifty-seventh anniversary of the date the Deed of Trust is recorded in the Recorder’s Office of Marin County or (b) the fifty-fifth anniversary of the date on which construction financing is converted into permanent financing. Annual payments equal to the City’s proportionate share of residual receipts attributable to the prior calendar year are due beginning June 1st after the end of the calendar year that the construction loan for the property converts to a permanent loan. The note is secured by a Deed of Trust. As of June 30, 2023, the balance of the loan and accrued interest was $1,893,438.

G. Other Receivables – Long-Term Receivable from San Rafael Sanitation District The City provides staffing to San Rafael Sanitation District (District) under a contractual arrangement originated in 1987 that requires the District to pay all related employee costs incurred by the City on its behalf. Accordingly, the cost of providing pension and postemployment health benefits incurred by the City for the District staff but not yet funded are reflected by the District as an obligation, and by the City as a noncurrent receivable. The obligation as of June 30, 2023, is $2,002,944, and is composed of the following:

Defined benefit pension liability allocation $1,403,972 Other post-employment benefit liability allocation 598,972 Total long-term receivable from San Rafael Sanitation District $2,002,944 REVIEW DRAFT 61 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 4 – LOANS AND LEASES RECEIVABLE (Continued)
H. Leases Receivable
The City from to time to time engages in lease arrangements allowing the right for others to use various owned land and buildings for the public benefit. As of June 30, 2023, these leases and related deferred inflows of resources consisted of the following:

Deferred
Leases Inflows of
Receivable Resources
Marin History Museum $42,363 $39,939
Yacht Club 177,143 169,488
Trans Bay Cable 276,042 260,196
Total $495,548 $469,623
On August 1, 2021, the City began leasing a building to the Marin History Museum with monthly payments of $1,200 - $1,260 through July 1, 2026. The City recognized $12,953 in lease revenue and $2,444 in interest revenue during the current fiscal year related to this lease. Also, the City has a deferred inflow of resources associated with this lease that will be recognized as revenue over the lease term.

On April 1, 2014, the City began leasing property to the San Rafael Yacht Club. The lease was extended during fiscal year 2022 and lease payments are due annually with an initial amount of $28,699 commencing March 31, 2022. Lease payments are to be increased by 5% every two years thereafter, until the end of the lease on March 31, 2029. The City recognized $28,248 in lease revenue and $4,036 in interest revenue during the current fiscal year related to this lease.

Also, the City has a deferred inflow of resources associated with this lease that will be recognized as revenue over the lease term.

On January 1, 2007, the City began leasing land to a third party for a cable operation. Lease payments are due annually with an initial amount of $33,500 commencing March 31, 2022. Lease payments are to be increased by 3% every year thereafter, until the end of the lease on January 1, 2031. The City recognized $32,525 in lease revenue and $9,045 in interest revenue during the current fiscal year related to this lease. Also, the City has a deferred inflow of resources associated with this lease that will be recognized as revenue over the lease term.

REVIEW DRAFT 62 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 5 – CAPITAL ASSETS
Changes in capital assets during the fiscal year consisted of:

Balance
June 30, 2022 Balance
(as restated) Additions Retirements Transfers June 30, 2023 Governmental Activities
Capital assets not being depreciated:

Land $84,025,659 $84,025,659
Construction in progress 22,485,220 $23,773,676 ($3,676,791) 42,582,105 Total capital assets not being depreciated 106,510,879 23,773,676 (3,676,791) 126,607,764 Capital assets being depreciated:

Land improvements 9,762,567 1,089,012 10,851,579
Buildings and structures 119,165,142 119,165,142
Machinery and equipment 20,497,081 1,548,080 ($51,909) 23,238 22,016,490 Infrastructure 234,558,558 2,564,541 237,123,099
Intangible right-to-use leased building 5,476,219 5,476,219 Intangible right-to-use leased equipment 258,365 258,365 Intangible right-to-use subscription asset 1,559,451 1,559,451 Total capital assets being depreciated 391,277,383 1,548,080 (51,909) 3,676,791 396,450,345 Less accumulated depreciation and amortization for:

Land improvements (7,351,565) (68,114) (7,419,679)
Buildings and structures (27,057,991) (2,862,973) (29,920,964) Machinery and equipment (15,107,704) (1,036,353) 51,197 (16,092,860) Infrastructure (151,545,971) (5,654,685) (157,200,656)
Intangible right-to-use leased building (156,463) (156,464) (312,927) Intangible right-to-use leased equipment (80,740) (80,740) (161,480) Intangible right-to-use subscription asset (285,924) (285,924) Total accumulated depreciation and amortization (201,300,434) (10,145,253) 51,197 (211,394,490) Total net capital assets being depreciated and amortized 189,976,949 (8,597,173) (712) 3,676,791 185,055,855 Total governmental activity capital assets $296,487,828 $15,176,503 ($712) $311,663,619 During fiscal year 2023, the City implemented the provisions of GASB Statement No. 96, Subscription-Based Information Technology Arrangements, which required the restatement of capital assets, specifically to incorporate an intangible right-to-use subscription asset. As a result, an initial right-to-use subscription asset was recorded in the amount of $1,559,451 as of July 1, 2022.

The subscription asset is offset with a subscription liability as discussed in Note 14.

REVIEW DRAFT 63 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 5 – CAPITAL ASSETS (Continued)
Balance Balance
June 30, 2022 Additions June 30, 2023
Business-type Activities
Capital assets not being depreciated:

Land $8,620,853 $8,620,853
Total capital assets not being depreciated 8,620,853 8,620,853 Capital assets being depreciated:

Buildings and structures 10,713,814 10,713,814
Machinery and equipment 940,164 $106,742 1,046,906
Total capital assets being depreciated 11,653,978 106,742 11,760,720 Less accumulated depreciation for:

Buildings and structures (4,126,773) (205,362) (4,332,135) Machinery and equipment (867,328) (19,693) (887,021)
Total accumulated depreciation (4,994,101) (225,055) (5,219,156) Total net capital assets being depreciated 6,659,877 (118,313) 6,541,564 Total business-type activity capital assets $15,280,730 ($118,313) $15,162,417 Balance Balance
June 30, 2022 Additions June 30, 2023
San Rafael Sanitation District
Capital assets not being depreciated:

Land and easements $115,329 $115,329
Construction in progress 822,409 $6,831,368 7,653,777
Total capital assets not being depreciated 937,738 6,831,368 7,769,106 Capital assets being depreciated:

Subsurface lines 45,494,507 67,028 45,561,535
Sewage collection facilities 47,915,613 67,417 47,983,030 General plant and administration 2,366,681 2,366,681
Total capital assets being depreciated 95,776,801 134,445 95,911,246 Less accumulated depreciation for:

Subsurface lines (14,149,281) (594,559) (14,743,840)
Sewage collection facilities (25,298,589) (1,721,972) (27,020,561) General plant and administration (1,699,220) (126,741) (1,825,961) Total accumulated depreciation (41,147,090) (2,443,272) (43,590,362) Total net capital assets being depreciated 54,629,711 (2,308,827) 52,320,884 Total District's capital assets $55,567,449 $4,522,541 $60,089,990 Capital Asset Contributions – Some capital assets may have been acquired using Federal and State grant funds, or were contributed by developers or other governments. These contributions are accounted for as revenues at the time the capital assets are contributed.

REVIEW DRAFT 64 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 5 – CAPITAL ASSETS (Continued)
Depreciation Allocation – Depreciation expense is charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or program are as follows:

Governmental Activities
General government $92,586
Public safety 899,801
Public works and parks 6,919,199
Community development 51,080
Culture and recreation 691,805
Internal service funds 1,490,782
Total Governmental Activities $10,145,253
Business-type Activities
Parking services $225,055
Total Business-type Activities $225,055
NOTE 6 – LONG TERM DEBT
The City generally incurs long-term debt to finance projects or purchase assets which will have useful lives equal to or greater than the related debt. A summary of governmental and business-type activities transactions for the fiscal year ended June 30, 2023, are as follows:

Authorized Balance Balance Current
and Issued June 30, 2022 Retirements June 30, 2023 Portion Governmental Activities Bonds:
2018 Authority Lease Revenue Bonds

4.00%-5.00%, due 6/1/2034 $45,485,000 $41,505,000 $2,240,000 $39,265,000 $2,435,000 Add: unamortized bond premium 6,095,322 507,943 5,587,379 2010 Taxable Pension Obligation Bonds

6.00%-6.25%, due 7/1/2025 4,490,000 2,340,000 535,000 1,805,000 565,000 Total Governmental Activities Bonds 49,940,322 3,282,943 46,657,379 3,000,000 Governmental Activities - Direct Borrowings:

PG & E City Hall HVAC Retrofit Note Payable

0.00%, due 11/30/2023 334,585 46,158 33,280 12,878 12,878 PG & E CEC Efficiency Note Payable

1.00%, due 12/22/2026 1,104,799 679,424 148,362 531,062 149,836 PG & E Energy Efficient Lighting Project Note Payable

0.00% due 1/20/30 174,036 164,972 21,754 143,218 21,755 Total Governmental Activities - Direct Borrowings 890,554 203,396 687,158 184,469 Total Governmental Activities Debt $50,830,876 $3,486,339 $47,344,537 $3,184,469 Business-type Activities:

Direct Borrowing:

PG & E Parking Lot Lighting Retrofit Note Payable

0.00%, due 11/30/2023 66,380 $7,305 $6,816 $489 $489
2012 Authority Lease Revenue Refunding Bonds

2.00-4.00%, due 4/1/2033 6,750,000 4,025,000 310,000 3,715,000 320,000 Less: unamortized bond discount (7,797) (725) (7,072)
Total Business-type Activities Bonds 4,017,203 309,275 3,707,928 320,000 Total Business-type Activities $4,024,508 $316,091 $3,708,417 $320,489 REVIEW DRAFT 65 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 6 – LONG-TERM DEBT (Continued)
A. 2018 Authority Lease Revenue Bonds
On March 5, 2018, the Authority issued 2018 Authority Lease Revenue Bonds in the amount of $45,485,000 bearing interest at rates from 4.00% to 5.00%. The proceeds of the bonds were provided for replacement of two fire stations and construction of a public safety center. The Authority has pledged revenue pursuant to a site and facility lease between the City and the Authority for the public safety center. The lease rental payments are due semi-annually and are in an amount sufficient to make payments on the Bonds. Principal payments are due annually on June 1 and interest is payable semiannually on June 1 and December 1. The Bonds maturing on or prior to June 1, 2028, are not subject to optional redemption prior to their maturity. The Bonds maturing on or after June 1, 2029, are subject to optional redemption as a whole or in part on any date after June 1, 2028, at the option of the Authority, at a redemption price equal to the principal amount of the Bonds subject to redemption, plus accrued interest to the date fixed for redemption, without premium.

The Bonds are payable from any source of available funds of the City. The bond covenants contain events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City.

B. 2010 Taxable Pension Obligation Bonds
On July 1, 2010, the City issued 2010 Taxable Pension Obligation Bonds in the amount of $4,490,000 bearing interest at rates from 6.00% to 6.25%. Principal payments are due annually on July 1 and interest is payable semiannually on January 1 and July 1. The Bonds were issued to prefund a portion of the obligations of the City to the Marin County Employees’ Retirement Association. Payment of the principal and interest on the Bonds is not limited to any special source of funds and is payable from any legally available moneys of the City. The City is not empowered or obligated to levy or pledge taxes to make payments on the Bonds. The bond covenants contain events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur:
default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City.

C. Pacific Gas and Electric Notes Payable
PG&E HVAC and Lighting Retrofit
On September 30, 2013, the City executed a note payable agreement with Pacific Gas and Electric (PG&E) in the amount of $634,861, which does not bear interest. The debt was assumed as a means to finance energy-efficient retrofit projects which include updating the existing heating, ventilation, and air conditioning (HVAC) unit in City Hall and converting the street and parking lot lights to light emitting diode (LED). $334,585 of the loan is for the HVAC projects and $300,276 of the loan is for the LED projects. Repayment of the loan commenced in December 2013, and is due monthly until paid in full in 2023.

REVIEW DRAFT 66 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 6 – LONG-TERM DEBT (Continued)
PG&E CEC Efficiency
On September 5, 2017, City Council approved the execution of a note payable agreement with PG&E in an amount up to $1,178,813, bearing interest at 1%. The debt was assumed as a means to finance the execution of various energy efficiency system upgrades to City facilities and street lights. The upgrades included interior and exterior lighting upgrades and energy management control systems. The City made the final draw on the loan and the final loan obligation was $1,104,799. Payments commenced in December 2019, and are due semi-annually until paid in full in December 2026.

PG&E Energy Efficient Lighting Project
On September 20, 2021, the City executed a note payable agreement with PG&E in the amount of $174,036, which does not bear interest. The debt was assumed as a means of financing energy efficient lighting for the Al Boro recreation center and the department of Public Works building.

Repayment of the loan commenced in February 2022 and payments are due monthly until paid in full in January 2030.

D. 2012 Authority Lease Revenue Refunding Bonds
On August 7, 2012, the Authority issued 2012 Authority Lease Revenue Refunding Bonds in the amount of $6,750,000 bearing interest at rates from 2.00% to 4.00%. The proceeds of the Series 2012 Bonds were used to repay the Authority’s 2003 Authority Lease Revenue Bonds that financed the construction of the 3rd and C Street parking structure and achieved lower interest rates and lower annual debt service payments. The refunding resulted in a net present value savings to the City in debt service of $670,496. In addition, the requisition price exceeded the net carrying amount of the old debt by $295,278. The Series 2012 Bonds are payable from lease payments made by the City to the Authority for leasing the City facilities. The rights to these lease payments have been irrevocably transferred by the Authority to the Trustee. Activities related to the Series 2012 Bonds are reported in the Parking Services Enterprise Fund. Principal payments are due annually on April 1 and interest is payable semiannually on October 1 and April 1. The Bonds maturing on or prior to April 1, 2022, are not subject to optional redemption prior to their maturity. The Bonds maturing on or after April 1, 2023, are subject to optional redemption as a whole or in part on any date after April 1, 2022, at the option of the Authority, at a redemption price equal to the principal amount of the Bonds subject to redemption, plus accrued interest to the date fixed for redemption, without premium.

The Bonds are payable from any source of available funds of the City. The bond covenants contain events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City.

REVIEW DRAFT 67 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 6 – LONG-TERM DEBT (Continued)
E. Future Debt Service
Future debt service requirements, including interest, at June 30, 2023, are as follows:

Governmental Activities
For the Year Bonds Direct Borrowings
Ended June 30 Principal Interest Principal Interest
2024 $3,000,000 $2,058,406 $184,469 $4,951
2025 3,245,000 1,900,250 173,106 3,436
2026 3,510,000 1,729,256 174,623 1,919
2027 3,105,000 1,565,750 98,762 386
2028 3,355,000 1,410,500 21,755
2029 - 2033 21,025,000 4,262,500 34,443
2034 - 2035 3,830,000 191,500
Totals 41,070,000 $13,118,162 687,158 $10,692
Reconciliation of Long-term debt:

Add: unamortized premium 5,587,379
$46,657,379 $687,158
Business-type Activities
For the Year Bonds Direct Borrowing
Ended June 30 Principal Interest Principal
2024 $320,000 $134,288 $489
2025 330,000 124,288
2026 335,000 113,562
2027 350,000 102,256
2028 360,000 90,006
2029 - 2033 2,020,000 241,806
Totals 3,715,000 $806,206 489
Reconciliation of Long-term debt:

Less: unamortized discount (7,072)
$3,707,928 $489
REVIEW DRAFT 68 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 7 – DEBT WITHOUT CITY COMMITMENT
A. Special Assessment Debt Without City Commitment
Special assessment districts have been established in various parts of the City to provide improvements to properties located in those districts. Properties in these districts are assessed for the cost of improvements; these assessments are payable solely by property owners over the term of the debt issued to finance these improvements. The City is not legally or morally obligated to pay these debts or be the purchaser of last resort of any foreclosed properties in these special assessment districts, nor is it obligated to advance City funds to repay these debts in the event of default by any of these districts. The City does act as an agent for the property owners and bondholders and at June 30, 2023, the balances of these Districts’ outstanding debt were as follows:

Project Original Outstanding
Description Amount June 30, 2023
Pt. San Pedro Road Median Landscaping Pt. San Pedro Road Assessment District Limited Obligation Bonds-2012 Median Landscaping $1,750,000 $1,075,200 B. Conduit Debt
The City has assisted private-sector entities by sponsoring their issuance of debt for purposes the City deems to be in the public interest. These debt issues are secured solely by the property financed by the debt. The City is not legally or morally obligated to pay these debts or be the purchaser of last resort of any foreclosed properties secured by these debts, nor is it obligated to advance City funds to repay these debts in the event of default by any of these issuers. At June 30, 2023, the balance of this issuers’ outstanding debt was as follows:

Project Original Outstanding
Description Amount June 30, 2023
San Rafael Redevelopment Agency 162-175 Belvedere
Multifamily Housing Revenue Bonds-2000A Apartments $3,590,529 $789,269 California Statewide Communities
Development Authority Revenue Bonds-2001 St. Marks School 5,605,000 2,005,000 San Rafael Redevelopment Agency San Rafael Commons
Multifamily Housing Revenue Bonds-2002 Apartments 6,100,000 4,025,000 San Rafael Redevelopment Agency
Multifamily Housing Revenue Bonds-2007 Series A Martinelli House Project 6,000,000 1,613,168 Multifamily Housing Revenue Bonds-2007 Series B Martinelli House 1,000,000 103,077 Total $22,295,529 $8,535,514
REVIEW DRAFT 69 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 8 – NET POSITION AND FUND BALANCE
A. Net Position
Net Position is the excess of all the City’s assets and deferred outflows of resources over all its liabilities and deferred inflows of resources, regardless of fund. Net Position is divided into three captions. These captions apply only to Net Position, which is determined only at the Governmentwide level and business type activity and are described below:

Net Investment in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.

Restricted describes the portion of Net Position which is restricted to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter.

Unrestricted describes the portion of Net Position which is not restricted to use.

B. Fund Balance
In the fund financial statements, fund balances represent the net current assets of each fund. Net current assets generally represent a fund’s cash and receivables, less its liabilities. The City’s fund balances are classified in accordance with generally accepted accounting principles, which require the City to classify its fund balances based on spending constraints imposed on the use of resources. For programs with multiple funding sources, the City prioritizes and expends funds in the following order: Restricted, Committed, Assigned, and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint:

Nonspendable represents balances set aside that do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, loans receivable, and land held for redevelopment are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed or assigned, then Nonspendable amounts are required to be presented as a component of the applicable category.

Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose. Nonspendable amounts subject to restrictions are included along with spendable resources.

Committed fund balances have constraints imposed by resolution of the City Council which may be altered only by resolution of the City Council. Nonspendable amounts subject to Council commitments are included along with spendable resources.

Assigned fund balances are amounts constrained by the City’s intent that they be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Manager, as designated by the City Council, and may be changed at the discretion of the City Council or City Manager. This authorization is given through Resolution No. 13173 which adopted the City’s Fund Balance Policy.

REVIEW DRAFT 70 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 8 – NET POSITION AND FUND BALANCE (Continued)
This category includes nonspendables, when it is the City’s intent to use proceeds or collections for a specific purpose; and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed.

Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual General Fund balance and residual fund deficits, if any, of other governmental funds.

Detailed classifications of the City’s fund balances, as of June 30, 2023, are below:

Capital Project Funds
General Fund
Traffic and
Housing
Mitigation Gas Tax
Essential Facilities
Capital Projects Fund
Other
Governmental
Funds Total
Fund balances:

Nonspendable:

Prepaids $78,057 $182,890 $260,947
Total Nonspendable 78,057 182,890 260,947
Restricted for:

Assessment District capital projects 298,723 298,723
Baypoint Lagoons Assessment District 224,737 224,737
Bedroom tax capital projects 142,339 142,339
Childcare 610,965 610,965
Development services 400,028 400,028
Emergency medical services 2,281,841 2,281,841
Streets improvements and maintenance (gas tax) $11,835,712 11,835,712 Grant funded programs 1,050,383 1,050,383
Household hazmat facility 572,457 572,457
Library 4,444,464 4,444,464
Library assessment 934,285 934,285
Loch Lomond Assessment District 809,862 809,862
Loch Lomond Assessment District #2 896,955 896,955
Low and Moderate Income Housing 1,872,044 1,872,044
Measure A - Open Space 475,053 475,053
Measure C - Wildfire Prevention 1,386,411 1,386,411
Measure E - Public Safety Facility $3,718,015 3,718,015 Measure G - Cannabis 1,150,736 1,150,736
Parkland dedication 359,989 359,989
Public safety 124,363 124,363
Pt. San Pedro - Maintenance Portion 174,968 174,968
Recreation revolving 362,483 362,483
Stormwater 6,629,459 6,629,459
Traffic and housing mitigation $5,693,062 5,693,062
Total Restricted 5,693,062 11,835,712 3,718,015 25,202,545 46,449,334 Committed to:

Capital improvement capital projects 3,986,983 3,986,983 Emergency and cash flow 9,753,000 9,753,000
Park capital projects 21,861 21,861
Total Committed 9,753,000 4,008,844 13,761,844
Assigned to:

Contractual commitments 2,410,106 2,410,106
One-time funds allocated to projects 8,767,279 8,767,279 Capital Project grant matching 4,240,000 4,240,000
Infrastructure Reserve 600,000 600,000
General plan / long range planning 1,254,889 1,254,889
Open space capital projects 119,248 119,248
Total Assigned 17,272,274 119,248 17,391,522
Unassigned 664,667 664,667
Total Fund Balances $27,767,998 $5,693,062 $11,835,712 $3,718,015 $29,513,527 $78,528,314 Special Revenue Funds
71 CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 8 – NET POSITION AND FUND BALANCE (Continued)
C. Minimum Fund Balance Policy
The City Council adopted a General Fund Reserve Policy in November 2014 to establish target reserve levels and the methodology for calculating reserve levels. The Policy also establishes criteria for the use of reserves and a process to replenish reserves.

The Policy requires the City to strive to maintain the following fund balances:
1) Emergency and Cash Flow Reserve (10% minimum)
An emergency and cash flow reserve will be maintained for the purposes of (1) sustaining General Fund operations in the case of a public emergency, such as a natural disaster or other unforeseen catastrophic event; and (2) to cover sudden operating shortfalls caused by (a) a severe drop in revenues that cannot be sufficiently offset by a corresponding reduction in expenditures and/or other available resources, or (b) an unforeseen, unavoidable expenditure that must be paid from the General Fund.

This reserve level is measured as a percentage of annual operating expenditures. Budgeted operating expenditures are to be used for the purposes of budget allocations and projections, and actual operating expenditures are to be used for the purpose of measuring this reserve at fiscal year-end. This reserve may be expended only when the City Council determines by resolution that such action is consistent with the purpose and intent of this policy.

In the event the balance in the Emergency and Cashflow Reserve falls below the minimum level, the City Manager, shall recommend a plan to replenish the fund within a timeframe not to exceed three years. This recommendation shall be approved by the City Council no later than the time at which the next annual budget is adopted. Any variance from the stipulations established within this policy shall require approval by the City Council along with a statement of findings supporting the temporary or ongoing modification to this policy.

The required reserve was $9,753,000 at June 30, 2023, and the balance of the reserve, included in the General Fund’s committed fund balance was $9,753,000 at that date. 2) Other Facilities and Infrastructure
The purpose of the assigned infrastructure reserve is to accumulate funds to be used for the purpose of non-public safety facility construction and major improvements (e.g., library, administrative and non-safety buildings, streets, and the stormwater system). This was $600,000 at June 30, 2023.

The General Plan/Long Range Planning reserve included in the General Fund’s assigned fund balance was $1,254,889 at June 30, 2023, which is specifically assigned to the City’s General Plan, a state required plan that must address eight topic areas – Neighborhoods, Community Design, Economic Vitality, Infrastructure, Governance, Culture and Arts, Parks and Recreation and Air and Water Quality.

REVIEW DRAFT 72 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 9 – PENSION PLAN
A. Plan Description
The City’s defined benefit retirement plan is administered by the Marin County Employees’ Retirement Association (MCERA), a retirement system established in July 1950 and governed by the California Constitution; the County Employees Retirement Law of 1937 (CERL or 1937 Act, California government Code Section 31450 et seq.); the Public Employees’ Pension Reform Act of 2013 (PEPRA, Government Code Section 7522); the provisions of California Government Code Section 7500 et seq; and the bylaws, procedures, and policies adopted by MCERA’s Board of Retirement. The Marin County Board of Supervisors may also adopt resolutions, as permitted by the CERL and PEPRA, which may affect the benefits of MCERA members.

MCERA operates as a cost-sharing multiple employer defined benefit plan for the City and eight other participating employers: County of Marin, Local Agency Formation Commission (LAFCO), Marin City Community Services District, Marin County Superior Court, Marin/Sonoma Mosquito and Vector Control District, Novato Fire Protection District, Southern Marin Fire Protection District and Tamalpais Community Services District. Separate actuarial valuations are performed for these other agencies and districts, and the responsibility for funding their plans rest with those entities. Post-retirement benefits are administered by MCERA to qualified retirees.

Copies of MCERA’s annual financial reports, which include required supplementary information (RSI) for the plan may be obtained from their office at One McInnis Parkway, Suite 100, San Rafael, CA 94903 or online at www.mcera.org.

B. Benefit Provisions
Service Retirement: MCERA’s service retirement benefits are based on the years of credited service, final average compensation, and age at retirement, according to the applicable statutory formula. Members who qualify for service retirement are entitled to receive monthly retirement benefits for life.

General members hired prior to January 1, 2013, are eligible to retire once they attain the age of 50 (except Misc. Tier 2, whereby the minimum age is 55) and have acquired 10 or more years of retirement service credit. A member with 30 years of service is eligible to retire regardless of age.

General members who are first hired on or after January 1, 2013, are eligible to retire once they have attained the age of 52, and have acquired 5 years of retirement service credit, or age 70, regardless of service.

Safety members hired prior to January 1, 2013, are eligible to retire once they attain the age of 50 and have acquired 10 or more years of retirement service credit. A member with 20 years of service is eligible to retire regardless of age. Safety members who are first hired on or after January 1, 2013, are eligible to retire once they have attained the age of 50, and have acquired 5 years of retirement service credit, or age 70, regardless of service.

REVIEW DRAFT 73 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 9 – PENSION PLAN (Continued)
Disability Retirement: A member with five years of service, regardless of age, who becomes permanently incapacitated for the performance of duty is eligible to apply for a non-service connected disability retirement. Any member who becomes permanently incapacitated for the performance of duty as a result of injury or disease arising out of and in the course of employment is eligible to apply for a service-connected disability retirement, regardless of service length or age.

Death Benefits: MCERA provides specified death benefits to beneficiaries and members’ survivors. The death benefits provided depend on whether the member is active or retired. The basic active member death benefit consists of a members’ retirement contributions plus interest plus one month’s pay for each full year of service (up to a maximum of six month’s pay).

Retiring members may choose from five retirement benefit payment options. Most retirees elect to receive the unmodified allowance which provides the maximum benefit to the retiree and continuance of 60% of the retiree’s allowance to the surviving spouse or registered domestic partner after the retiree’s death. Other death benefits may be available based on the years of service, marital status, and whether the member has minor children.

Cost of Living Adjustment: Retirement allowances are indexed for inflation. Most retirees receive automatic basic cost of living adjustments (COLA’s) based upon the Urban Consumer Price Index (UCPI) for the San Francisco Bay Area. These adjustments go into effect on April 1 of each year. Annual COLA increases are statutorily capped at 2%, 3%, or 4% depending upon the member’s retirement tier. When the UCPI exceeds the maximum statutory COLA for the member’s tier, the difference is accumulated for use in future years when the UCPI is less than the maximum statutory COLA. The accumulated percentage carryover is known as the COLA Bank.

C. Funding Policy
The funding policy of MCERA provides for actuarially determined periodic contributions by the City at rates such that sufficient assets will be available to pay plan benefits when due. The employer rates for normal cost are determined using the Entry Age Normal Actuarial Cost Method, which takes into account those benefits that are expected to be earned in the future as well as those already accrued.

The City contribution rates for the year ended June 30, 2023 were as follows:

Employer Employee
Contribution Rate Contribution Rate Benefit Basis
City of San Rafael Misc Tier 1 52.37% 0.00% - 17.14% 2.7% @ 55 Highest year City of San Rafael Misc Tier 2 53.15% 8.11% - 12.31% 2.0% @ 55 Average three highest years City of San Rafael Fire Tier 1 71.55% 0% - 20.38% 3.0% @ 55 Highest year City of San Rafael Fire Tier 2 70.51% 12.59% - 18.53% 3.0% @ 55 Average three highest years City of San Rafael Safety Police Tier 1 71.14% 0% - 20.38% 3.0% @ 55 Highest year City of San Rafael Safety Police Tier 2 72.39% 12.59% - 18.53% 3.0% @ 55 Average three highest years PEPRA Misc 46.09% 9.74% 2.0% @ 62 Average three highest years PEPRA Safety 62.31% 15.26% 2.7% @ 57 Average three highest years REVIEW DRAFT 74 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 9 – PENSION PLAN (Continued)
These rates were determined by MCERA, based on the actuarial valuation dated June 30, 2021.

The actual rate of return on investments during that year was 32.0% on a market value basis net of investment expenses, as compared to the prior year’s 6.75% assumption.

The City uses the actuarially determined percentages of payroll to calculate and pay contributions to MCERA. Contributions to the plan from the City were $21,446,774 for the year ended June 30, 2023, based on a total payroll of $48,676,936, of which $35,543,480 represented the basis for the plan contributions. Of the total payroll subject to plan contributions, $1,337,210 is attributable to the San Rafael Sanitation District (SRSD), a component unit of the City.

Effective with the June 30, 2013, valuation, the Unfunded Actuarial Liability (UAL) as of June 30, 2013, is being amortized over a closed 17-year period (9 years remaining as of June 30, 2021), except for the additional UAL attributable to the outstanding unfunded actuarial loss from 2009, which is being amortized over a separate closed period (currently 17 years).

Effective with the June 30, 2014 valuation, any new sources of UAL due to actuarial gains and losses or method changes are amortized over a closed 24-year period, with a 5-year ramp up period at the beginning of the period, a 4-year ramp down at the end of the period, and 15 years of level payments as a percentage of payroll between the ramping periods. This amortization method for gains and losses is similar to a 20-year amortization period with level payments as a percentage of payroll, in conjunction with a traditional 5-year asset smoothing.

Assumption changes are amortized over a closed 22-year period, with a 3-year ramp up period, 2- year ramp down period, and 17 years of level payments as a percentage of payroll.

D. Pension Liability and Pension Expense
The City’s net pension liability (NPL) has been determined for the financial reporting period ended June 30, 2023, based on the following methodology: The City’s NPL as of June 30, 2021, was updated to the measurement date of June 30, 2022 using the actual City’s plan assets as of June 30, 2022, and estimating the change in the City’s liabilities between July 1, 2021, and June 30, 2022. This estimate is based on a projection of the City’s long-term contributions to the pension plan relative to the projected contributions of all participating employers.

The resulting NPL for the City under this calculation is $105,476,657 or 33.73% of the total MCERA NPL of $312,688,342 (reference MCERA’s GASB 67/68 report as of June 30, 2022).

This compares to the previous year’s net pension liability of $48,176,309 or 29.665% of the total MCERA net pension liability of $162,401,177 (reference MCERA’s GASB 67/68 report as of June 30, 2021).

In addition to the reporting of the NPL as of June 30, 2023, the City reported deferred inflows of $24,063,376 and deferred outflows of $68,401,146 as of the measurement date June 30, 2022.

The City reported post-measurement date outflows of $21,446,774 from actual fiscal year 2022- 2023 pension contributions. Deferred outflows include deferred investment gains and adjustments to assumptions based on actual positive results. Deferred outflows have a positive impact on net assets (offsetting the net pension liability) and will be recognized in future reporting periods.

Deferred inflows include deferred investment losses, adjustments to assumptions based on actual negative results, and contributions made after the measurement date.

REVIEW DRAFT 75 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 9 – PENSION PLAN (Continued)
Deferred inflows have a negative impact on net assets (similar to the NPL) and will be recognized in future reporting periods. The net impact of these pension liability related entries on the City’s Statement of Net Position before allocations to the San Rafael Sanitation District was $61,138,857. After allocations to the San Rafael Sanitation District, the net impact on the City’s Statement of Net Position was $59,734,885.

Under generally accepted accounting principles, the City’s pension expense is based on the Plan’s pension expense, adjusted for the City’s actual contributions and net pension liability (asset).

Three components are used to calculate pension expense: (1) changes in the net pension liability; (2) changes in benefit terms (if any): and (3) changes in actuarial assumptions and experience.

Pension expense is calculated using a different methodology than that used to derive the actuarially determined annual contribution to the Plan. Actual pension contributions during the reporting year were $21. Because pension expense is affected by annual changes in the net pension liability, volatility is to be expected. For the current measurement period, investment returns above the assumed rate were responsible for the decrease in net pension liability to a net pension asset and had a corresponding impact on pension expense.

The table below provides a summary of the key results during the reporting period:

Measurement Date Measurement Date
Description 6/30/2022 6/30/2021
Net Pension Liability (Asset) $105,476,657 ($48,176,309) Deferred Inflows 24,063,376 164,252,572
Deferred Outflows (46,954,402) (15,753,361)
Impact on Net Position before Deferred Outflows from Contributions 82,585,631 100,322,902 Additional Deferred Outflows - Contributions Subsequent to Measurement Date (21,446,744) (21,859,307) Impact on Statement of Net Position before Allocations 61,138,887 78,463,595 Allocation of Net Pension Liability (Asset) to SRSD 3,563,252 (1,635,722) Allocation of Deferred Inflows (measurement date) to SRSD 812,918 5,576,838 Allocation of Deferred Outflows (measurement date) to SRSD (2,310,754) (534,871) Impact on Net Position before Allocation of Deferred Outflows from Contributions to SRSD 2,065,416 3,406,245
Allocation of Additional Deferred Outflows (Contributions) to SRSD (661,444) (747,284) Long-Term Receivable from SRSD, due to pension obligations (see Note 4F) 1,403,972 2,658,961 Impact on Statement of Net Position, net of receivable from SRSD $59,734,915 $75,804,634 Pension Expense (Revenue) $4,048,455 ($20,127,615)
Summary of Results
REVIEW DRAFT 76 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 9 – PENSION PLAN (Continued)
Projection of Total Pension Liability and Net Pension Liability Total Pension Liability (TPL) is the actuarial present value of projected benefit payments attributed to past periods of employee service. MCERA and the City have adopted a measurement date of June 30, 2022. The beginning of year measurement of TPL is based on the actuarial valuation as of June 30, 2021. The TPL at the end of the measurement year, June 30, 2022, is also measured as of the valuation date of June 30, 2021 and projected to June 30, 2022.

The Plan Fiduciary Net Position (FNP) is the fair or market value of assets. The FNP at the beginning of the year is based on the actuarial valuation as of June 30, 2021. The FNP at the end of the measurement year, June 30, 2022, is also measured as of the valuation date of June 30, 2021, and projected to June 30, 2022.

The Net Pension Liability (NPL) is the City’s liability (asset) for benefits provided through its defined benefit plan administered by MCERA. It is calculated by reducing the TPL by the FNP.

The long-term portion of the governmental activities’ NPL is liquidated primarily by the General Fund.

Actuarial assumptions:

The total pension liability as of June 30, 2022 (measurement date) was determined by an actuarial valuation as of June 30, 2021, using the following actuarial assumptions applied to all prior periods included in the measurement.

Expected Return on Assets 6.75% per year, net of investment expenses Discount Rate 6.75% per year
Price Inflation 2.50% per year
Salary Increases 3.00% per year plus merit component based on employee classification and years of service.

Administrative Expenses Administrative expenses in the actuarial valuation are assumed to be $5,137,500 for FY 2021-22, to be split between employees and employers based on their share of the overall contributions.

Administrative expenses shown in this report are based on the actual FY 2020-21 amounts.

Post-Retirement COLA Post-retirement COLAs are assumed at a rate of 2.5% for members with a 4% COLA cap, 2.4% for members with a 3% COLA cap, and

1.9% for members with a 2% COLA cap.

REVIEW DRAFT 77 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 9 – PENSION PLAN (Continued)
Asset Allocation Policy and Expected Long-Term Rate of Return by Asset Class The Board of Retirement has adopted an Investment Policy Statement (IPS), which provides the framework for the management of MCERA’s investments. The IPS establishes MCERA’s investment objectives and defines the principal duties of the Retirement Board, the custodian bank, and the investment managers. The asset allocation plan is an integral part of the IPS and is designed to provide an optimum and diversified mix of asset classes with return expectations to satisfy expected liabilities while minimizing risk exposure. MCERA currently employs external investment managers to manage its assets subject to the provisions of the policy. Plan assets are managed on a total return basis with a long term objective of achieving and maintaining a fully funded status for the benefits provided through the Plan.

The following was the Retirement Board’s adopted asset allocation policy as of June 30, 2022:

Long-Term
Expected Rate
Target Long-Term Expected of Return
Asset Class Allocation Real Rate of Return (with the effect of inflation) Domestic Equities 32% 4.60% 7.10%
International Equities 22% 4.85% 7.35%
Fixed Income 23% 1.40% 3.90%
Public Real Assets 7% 3.20% 5.70%
Real Estate 8% 3.65% 6.15%
Private Equity 8% 6.00% 8.50%
Total 100%
Mortality Rates for Mortality rates for Miscellaneous active members are based on the Healthy Members sex distinct Public General 2010 Employee Mortality Table, with and Inactives generational mortality improvements projected from 2010 using Projection Scale MP-2020, with no adjustments.

Mortality rates for Safety active members are based on the sex distinct Public Safety 2010 Above-Median Income Employee Mortality Table, with generational mortality improvements Projected from 2010 using Projection Scale MP-2020, with no adjustments. 10% of Safety member active deaths are assumed to occur in the line of duty.

Mortality Rates for Rates of mortality for Miscellaneous disabled members are based Retired Disabled on the sex distinct Public General 2010 Disabled Retiree Mortality Members Table, with generational mortality improvements projected from 2010 using Projection Scale MP-2020, with no adjustments, Rates of mortality for Safety disabled members are based on the sex distinct Public Safety 2010 Disabled Retiree Mortality Table, with generational mortality improvements projected from 2010 using Projection Scale MP-2020, adjusted by 95% for males with no adjustment for females.

REVIEW DRAFT 78 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 9 – PENSION PLAN (Continued)
The Long-Term returns are calculated using a 10-year geometric return derived from arithmetic returns and the associated risk (standard deviation).

Determination of Discount Rate
The discount rate used to measure the Total Pension Liability was 6.75%. Related to the discount rate is the funding assumption that employees will continue to contribute to the plan at the required rates and employers will continue the historical and legally required practice of contributing to the plan based on an actuarially determined contribution, reflecting a payment equal to annual normal cost, a portion of the expected administrative expenses, an amortization payment for the extraordinary losses from 2009 amortized over a closed period (17 years remaining as of the June 30, 2021 actuarial valuation), and an amount necessary to amortize the remaining Unfunded Actuarial Liability as a level percentage of payroll over a closed period (9 years remaining as of the June 30, 2021 actuarial valuation).

A change in the discount rate would affect the measurement of the TPL. A lower discount rate results in a higher TPL and higher discount rates results in a lower TPL. Because the discount rate does not affect the measurement of assets, the percentage change in the NPL can be significant for a relatively small change in the discount rate.

The table below shows the sensitivity of the Net Pension Liability (Asset) to a one percent decrease and a one percent increase in the discount rate:
1% Discount 1%
Decrease Rate Increase
Description 5.75% 6.75% 7.75%
Total Pension Liability $1,265,780,847 $1,120,775,111 $1,001,365,195 Fiduciary Net Position 1,015,298,454 1,015,298,454 1,015,298,458 Net Pension Liability (Asset) $250,482,393 $105,476,657 ($13,933,263)

80.2% 90.6% 101.4%
Fiduciary Net Position as a
Percentage of the Total Pension
Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Pension Resources
The impact of experience gains or losses and assumption changes on the Total Pension Liability (TPL) are recognized in the proportionate share of the pension expense over the average expected remaining service life of all active and inactive members of the plan. As of the measurement date, this recognition period was 4 years.

REVIEW DRAFT 79 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 9 – PENSION PLAN (Continued)
The following tables show the current balance and sources of deferred outflows and inflows related to the City’s defined benefit retirement plan, and the scheduled recognition of these deferred amounts:

Deferred Deferred
Outflows of Inflows of
Description Resources Resources
Differences between expected and actual experience $2,762,782 $4,367,486 Changes in assumptions 5,679,576
Change in proportion 7,957,716 10,883,765
Difference between City contributions and proportionate share of contributions 8,812,125
Actual FY 22-23 contributions (post measurement date) 21,446,774 Net difference between projected and actual earnings
on pension plan investments 30,554,298
Deferred Inflows and Outflows Before Allocations $68,401,146 $24,063,376 Allocation of Deferred Inflows and Outflows to SRSD
As of measurement date $2,310,754 $812,918
Post-measurement date 661,444
Net Deferred Inflows and Outflows $65,428,948 $23,250,458 The $21,446,774 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Amortization
Year ended June 30 Amount
2024 ($3,267,510)
2025 (3,324,244)
2026 (7,611,284)
2027 37,094,034
Total $22,890,996
REVIEW DRAFT 80 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 10 – PUBLIC AGENCY RETIREMENT SYSTEM (DEFINED CONTRIBUTION

RETIREMENT PLAN)
The City contributes to the Public Agency Retirement System (PARS), which administers a defined contribution retirement plan. A defined contribution retirement plan provides retirement benefits in return for services rendered, provides an individual account for each participant, and specifies how contributions to the individual’s accounts are determined instead of specifying the amount of benefits the individual is to receive. The benefits a participant will receive depend on the amount contributed to the participant’s account, and the returns earned on investments on those contributions. The Plan’s trust administrator is Phase II, P.O. Box 12919, Newport Beach, California 92658.

As established by the plan, all eligible part-time and temporary employees of the City become participants in the plan from the date that they are hired. An eligible employee is any employee who, at any time during which the employer maintains this plan, is not accruing a benefit under the Marin County Employees’ Retirement Fund.

As determined by the plan, each employee must contribute 3.75% of gross earnings to the plan. The City contributes an additional 3.75% of the employee’s gross earnings. Contributions made by an employee and the employer vest immediately.

During the year, the City and employees each contributed $140,479 The total covered payroll of employees participating in the plan for the year ended June 30, 2023, was $3,746,098.

NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS
Plan Description
The City provides certain health care benefits for retired employees and their spouses under an Agent Multiple-Employer Defined Benefit Plan. The benefit provisions were established under the authority of the 1937 Act, Section 31450, et. seq. of the Government Code. Employees who meet the vesting criteria become eligible for these benefits if they receive a retirement benefit from the Marin County Employees’ Retirement Association within 120 days of retirement from City employment.

The provisions and benefits of the City’s Other Post Employment Benefit Plan, in effect at June 30, 2023, are summarized as follows:

Elected Officials, Mid-Management, & Unrepresented
Management All other Bargaining Units
Eligibility
- Age 50 (age 55 if hired > 7/1/11) with 10 years services (Including reciprocity) OR -
- Age 70
- Disability Retirement
Benefit Hired < 1/1/09 Full premium/cap Hired < 1/1/10 Up to cap Hired ≥ 1/1/09 PEMHCA Min Hired ≥ 1/1/10 PEMHCA Min
Surviving Spouse
Benefit Continuation to surviving spouse
Medicare Part B Hired < 4/1/07 Full reimbursement None
Hired ≥ 4/1/07 None
Other No Dental, Vision, or Life Benefits
Retire directly from the City:
30 years service (Miscellaneous), 20 years service (Safety) OR REVIEW DRAFT 81 10/30/2023
I
I
I

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued) Membership in the plan consisted of the following at June 30, 2022, the measurement date:

Active plan members 348
Inactive employees or beneficiaries currently
receiving benefit payments 378
Inactive employees entitled to but not yet
receiving benefit payments 80
Total 806
Funding Policy and Actuarial Assumptions
The City’s net OPEB liability was measured using a Total OPEB Liability and Fiduciary Net Position measured as of June 30, 2022, using an actuarial valuation as of June 30, 2021. The following actuarial assumptions were used in the valuation: (a) 6.25% investment rate of return and (b) 2.50% of general inflation increase, and (c) a healthcare trend of declining annual increases ranging from 6.50% in 2023 to 3.75% for the years starting 2076. In addition, the fixed dollar benefit amounts are assumed to be held flat in the future and the premium related benefits are assumed to increase with the healthcare trend rate.

The actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period July 1, 2020 through June 30, 2021.

The long-term expected rate of return on OPEB plan investments was determined using a buildingblock method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.

The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Long-Term
Expected
Long-Term Rate of Return
Target Expected (with the effect
Asset Class Allocation Real Rate of Return of inflation) Global Equity 59% 4.56% 7.06%
Fixed Income 25% 0.78% 3.28%
TIPS 5% -0.08% 2.42%
Commodities 3% 1.22% 3.72%
REITs 8% 4.06% 6.56%
Total 100%
Assumed Long-Term Rate of Inflation 2.50%
Assumed Long-Term Investment Expenses n/a
Expected Long-Term Net Rate of Return 6.25%
Discount Rate 6.25%
REVIEW DRAFT 82 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued) The Expected Long-Term Rate of Return is provided by CalPERS’ Strategic Asset Allocation Overview in October 2018 – Strategy 1.

Discount Rate
The discount rate used to measure the total OPEB liability was 6.25%. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be sufficient to make projected benefit payments and the plan assets are expected to be invested using the strategy to achieve the expected return.

Total OPEB Plan Fiduciary Net Net OPEB
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2022 (6/30/21 measurement date) $48,228,000 $29,296,000 $18,932,000 Changes Recognized for the Measurement Period:

Service Cost 566,000 566,000
Interest on the total OPEB liability 2,946,000 2,946,000 Contributions from the employer 3,294,000 (3,294,000)
Net investment income (3,922,000) 3,922,000
Administrative expenses (15,000) 15,000
Benefit payments and refunds (3,286,000) (3,286,000)
Net Changes during July 1, 2022 to June 30, 2023 226,000 (3,929,000) 4,155,000 Balance at June 30, 2023 (6/30/22 measurement date) $48,454,000 $25,367,000 $23,087,000 Increase (Decrease)
The benefit payments and refunds include implied subsidy benefit payments in the amount of $725,000.

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.25 percent) or 1-percentage-point higher (7.25 percent) than the current discount rate:

Discount Rate -1% Current Discount Discount Rate +1%
(5.75%) Rate (6.75%) (7.75%)
$28,379,000 $23,087,000 $18,613,000
Plan's Net OPEB Liability/(Asset)
REVIEW DRAFT 83 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued) Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using healthcare trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current rates.

Healthcare Cost
Trend Rate -1% Trend Rates Trend Rate +1%
$19,681,000 $23,087,000 $27,134,000
Plan's Net OPEB Liability/(Asset)
Detailed information about the OPEB plan’s fiduciary net position is available in the separately issued plan financial report. That report may be obtained from the California Public Employees’ Retirement System, CERBT, P.O. Box 942703, Sacramento, CA, 94229.

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources related to OPEB
Components of OPEB Expense for fiscal year 2022-2023 were as follows:

Service Cost $566,000
Interest on Total OPEB Liability 2,946,000
Projected earning on investments (1,831,000)
Administrative expense 15,000
Recognition of deferred outflows/inflows:

Experience (1,792,000)
Assumptions 668,000
Asset Returns 317,000
OPEB Expense $889,000
REVIEW DRAFT 84 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued) Components of deferred outflows of resources and deferred inflows of resources related to OPEB at June 30, 2023 were as follows:

Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:

Changes of assumptions $1,770,961 $29,039 $1,800,000
Net difference between projected and
actual earnings on plan investments 2,009,231 29,769 2,039,000 Employer contributions made subsequent
to the measurement date 3,136,528 46,472 3,183,000
Total deferred outflows of resources $6,916,720 $105,280 $7,022,000 Deferred inflows of resources:

Differences between expected and actual
experience $3,552,367 $52,633 $3,605,000
Changes of assumptions 832,884 14,116 847,000
Total deferred inflows of resources $4,385,251 $66,749 $4,452,000 The difference between projected OPEB plan investment earnings and actual earnings is amortized over a five-year period. The remaining gains and losses are amortized over the expected average remaining service life.
$3,183,000 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as future OPEB expense as follows:

Measurement Period Amortized
Ended June 30 Amount
2024 ($864,000)
2025 (687,000)
2026 (31,000)
2027 969,000
($613,000)
REVIEW DRAFT 85 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued) The table below provides a summary of the key results during this reporting period.

Measurement Date Measurement Date
Description June 30, 2022 June 30, 2021
Net OPEB Liability $23,087,000 $18,932,000
Deferred Inflows 10,113,000 4,452,000
Deferred Outflows (3,839,000) (2,940,000)
Impact on Net Position before deferred contributions 23,700,000 26,105,000 Additional Deferred Outflows - Contributions subsequent to measurement date (3,183,000) (3,294,000) Impact on Statement of Net Position before Allocations 20,517,000 22,811,000 Allocation of NOL to SRSD 674,000 552,000
Allocation of Deferred Inflows (measurement date) to SRSD 129,971 294,865 Allocation of Deferred Outflows (measurement date) to SRSD (112,075) (85,722) Impact on Net Position before deferred contributions to SRSD 691,896 761,143 Allocation of Additional Deferred Outflows (contributions) to SRSD (92,924) (96,043) Long-Term Receivable from SRSD, due to OPEB obligations (see Note 4G) 598,972 665,100 Impact on Statement of Net Positions, net of receivable from SRSD $19,918,028 $22,145,900 OPEB Expense $889,000 $345,000
Covered Employee Payroll $42,604,000 $39,310,000
Summary of Results
NOTE 12 – JOINTLY GOVERNED ORGANIZATIONS
The City participates in the jointly governed organizations discussed below through formally organized and separate entities established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, these entities exercise full powers and authorities within the scope of the related Joint Powers Agreements including the preparation of annual budgets, accountability for all funds, the power to make and execute contracts and the right to sue and be sued. Each joint organization is governed by a board consisting of representatives from member municipalities. Each board controls the operations of the respective joint organization, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on that board. Obligations and liabilities of this joint organization are not the City’s responsibility and the City does not have an equity interest in the assets of each joint organization except upon dissolution of the joint organization.

REVIEW DRAFT 86 10/30/2023

CITY OF SAN RAFAEL

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 12 – JOINTLY GOVERNED ORGANIZATIONS (Continued)
A. The Marin County Integrated On-Line Library System (System) The MARINet Library Consortium was formed to provide for the procurement, ownership, operation, maintenance, and governance of shared library services among the libraries, public and academic, in Marin County. Current services shared and paid for on a consortia level through annual membership dues include an integrated library system including patron database, cataloging system, and online catalog of materials; delivery of items between libraries in Marin, a statewide library delivery service called Link+, numerous online resources, and more. The Governing Board of the System consists of the library director or designated alternate of each participant in the System. In accordance with the cost sharing formula developed by the library directors of the participants, the City’s share of annual operating costs was $321,517 for the year ended June 30, 2023. Financial statements of the System can be obtained from the County Librarian, Marin County Free Library at 1401 Los Gamos Drive, Suite 200, San Rafael, California 94903.

B. The Marin General Services Authority (MGSA)
The MGSA was formed by the County of Marin and twelve local agencies to acquire street light facilities, operate the facilities during an eminent domain action against PG&E, and coordinate the subsequent transfer of the facilities to the individual local agencies. Each of the local agency’s share of contributions was based on the number of street lights to be acquired in the local agency’s individual jurisdiction in relation to the total number of street lights to be acquired by the Marin Streetlight Acquisition Joint Powers Authority. MGSA services now include street light maintenance, abandoned vehicle abatement, taxicab regulation, administrative responsibility for MarinMap and the CATV program formerly administered by the Marin Telecommunications Authority established to regulate the rates for cable television service and equipment. The City’s contribution to MGSA was $766,726 for the year ended June 30, 2023. Financial statements of the MGSA can be obtained at 900 Fifth Avenue, Suite 100, San Rafael, California 94901.

C. The Marin Emergency Radio Authority (MERA)
MERA was formed on February 28, 1998, by the County of Marin and 25 local agencies within the County to plan, finance, implement, manage, own, and operate a County-wide public safety and emergency radio system. The Governing Board consists of one representative from each member. The members entered into a Project Operating Agreement on February 1, 1999.

On February 1, 1999, the members entered into an Operating Agreement whereby members are obligated to contribute service payments to cover the Authority’s operations and debt service. The City’s portion of the obligation is 16.913%. The City contributed $401,659 of the Authority’s operations and debt service for the fiscal year ended June 30, 2023. The City has established a reserve in its internal service funds to pay future service payments. Financial statements of the MERA can be obtained at 95 Rowland Way, Novato, California 94945.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 12 – JOINTLY GOVERNED ORGANIZATIONS (Continued)
D. The Marin County Hazardous and Solid Waste Joint Powers Authority The Authority was established by the County, local cities, and waste franchising districts to finance, prepare, and implement source reduction and recycling elements on a county-wide integrated waste management plan as required by State Assembly Bill 939. The City’s contribution to the Authority was $18,741 for the year ended June 30, 2023. Financial statements of the Authority can be obtained at 3501 Civic Center Drive, San Rafael, California 94903.

E. Central Marin Sanitation Agency (CMSA)
In October 1979, the District entered into a joint powers agreement with three neighboring sanitation agencies in central Marin County forming the Central Marin Sanitation Agency (CMSA). CMSA serves as a regional wastewater treatment plant for its four member agencies and San Quentin Prison (SQ) and is governed by a five-member Board of Commissioners, two appointed by the Board of Directors of the District, two appointed by the governing board of the Ross Valley Sanitary District, and one appointed by the governing board of Sanitary District No. 2 (SD 2).

Total project costs for the joint venture were funded from federal (75%) and state (12.5%) clean water grants and from local shares (12.5% total) allocated among the member agencies and SQ based upon the weighted average of the strength and volume of sewage flows per member at inception of the project. CMSA derives its annual funding for its operations and capital programs almost exclusively from service charges to member agencies. The joint powers agreement does not provide an explicit measurable right as required to establish an equity interest for any of the joint venture participants, and in addition to, stipulates that all excess capital funds, if any, and all excess administration, operations, and maintenance funds from whatever source, if any, are the property of CMSA.

The financial statements of the CMSA are available at the CMSA office at 1301 Anderson Drive, San Rafael, California 94901 and online at www.cmsa.us.

NOTE 13 – RISK MANAGEMENT
A. City
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City established the Risk Management Internal Service Fund to account for and finance its uninsured risks of loss.

The City manages risk by participating in a public entity risk pool (described below), purchasing insurance and by retaining certain risks.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 13 – RISK MANAGEMENT (Continued)
Risk Coverage
Liability Coverage
The City is a member of the California Joint Powers Risk Management Authority (CJPRMA) which covers general liability claims up to $40,000,000. The purpose of CJPRMA is to spread the adverse effects of general liability losses among the member agencies. The City also purchases commercial insurance for property damage claims with an insured amount of $173,070,291. The City is self-insured up to $750,000 for each general liability claim and $25,000 for each property damage claim. Once the self-insured retention is met, CJPRMA becomes responsible for payment of all liability claims up to the limit. The City contributed a total of $1,154,942 in liability coverage premiums during the fiscal year ended June 30, 2023. Five years after settlement of all general liability claims for a program year, CJPRMA will retroactively adjust premium deposits for any excess or deficiency in deposits related to paid claims and reserves. Financial statements for the risk pool may be obtained from CJPRMA at 3201 Doolan Road, Suite 285, Livermore, California 94551.

Workers’ Compensation Coverage
The City purchases insurance for workers’ compensation through Safety National Casualty Corporation Excess Workers’ Compensation and Employers Liability Insurance with coverage up to statutory limits. The City is self-insured up to $1,000,000 for each worker’s compensation claim.

Insurance Internal Service Funds and Financial Reporting The City records estimated liabilities for claims filed up to the amounts for which it retains risk in the General Liability and Workers Compensation Internal Service Funds. Charges to the General Fund and other funds are based on relative general liability and workers compensation risk associated with the activities of each fund. Charges are recorded in the funds as expenditures or expenses and as revenues in the respective internal service funds.

Generally accepted accounting principles require municipalities to record the liability for uninsured claims and to reflect the current portion of this liability as an expenditure in the financial statements. As discussed above, the City has coverage for such claims, but it has retained the risk for the deductible or uninsured portion of these claims.

The City’s liability for uninsured general liability claims and workers’ compensation claims, including claims incurred but not reported, are reported in the Statements of Net Position. The City’s present value liability for uninsured claims below include a provision for claims incurred but not reported using a discount rate of 2%.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 13 – RISK MANAGEMENT (Continued)
General Workers' Totals, as of June 30
Liability * Compensation * 2023 2022
Balance, beginning of year $4,696,504 $10,905,218 $15,601,722 $12,268,903 Current year claims and changes
in estimates 1,404,334 2,452,582 3,856,916 5,221,270
Claims paid (1,437,462) (2,234,478) (3,671,940) (1,888,451) Balance, end of year $4,663,376 $11,123,322 $15,786,698 $15,601,722 Due in one year $1,110,010 $1,776,620 $2,886,630 $2,802,022 Due in more than one year 3,553,366 9,346,702 12,900,068 12,799,700 Total claim liabilities $4,663,376 $11,123,322 $15,786,698 $15,601,722 * Liability based on an actuarial valuation as of December 31, 2021, extrapolated to June 30, 2023.

The claims settlements have not exceeded insurance coverage for the past three years.

B. District
The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees and natural disaster. The District participates in a joint powers agreement with other entities forming the California Sanitation Risk Management Authority (CSRMA), a public entity risk pool operating as a common risk management and insurance program for 60 member entities. CSRMA is governed by a Board of Directors composed of one representative from each member agency and meets three times per year in conjunction with conferences of the California Association of Sanitation Agencies. The Board controls the Note 1 operations of CSRMA, including selection of management and approval of operating budgets, independent of any influence by member entities.

The District pays annual premiums to CSRMA for its primary insurance and property insurance programs. Primary and property insurance programs are fully insured wherein CSRMA purchases insurance as a group thereby reducing its costs. CSRMA provides both fully insured and pooled insurance programs for its participating member entities. Because all employees of the District are contracted employees from the City of San Rafael, workers’ compensation insurance is not carried by the District but is provided through the City.

CSRMA’s primary and property insurance programs transfer risk to commercial insurance policies for claims above deductibles, while the District retains risk for claims to the extent of deductibles. Settled claims for the District have not exceeded coverage provided by CSRMA in any of the past three fiscal years.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 13 – RISK MANAGEMENT (Continued)
The following summarizes active insurance policies as of June 30, 2023 together with coverage limits for each insured event:

Insurance Program Limits Coverage Description
CSRMA - Allied World Assur. $3,000,000 Gen/Mgt liability - aggregate CSRMA - Allied World Assur. $1,000,000 Gen/Mgt liability - occurrence CSRMA - Allied World Assur. $1,000,000 Auto liability - accident CSRMA - Allied World Assur. $4,000,000 Excess liability CSRMA - Public Entity Property
Insurance Program (P.E.P.I.P.) $24,978,734 Special form property CSRMA - Illinois Union Ins. $25,000,000 Pollution liability - tier 1 CSRMA - Illinois Union Ins. $2,000,000 Pollution liability - tier 2 CSRMA - Lloyds of London $2,000,000 Cyber liability - third party CSRMA - Lloyds of London $2,000,000 Cyber liability - first party CSRMA - Travelers Ins. $25,000 Identity theft
CSRMA - Lloyds of London $2,500,000 Deadly weapons - aggregate The financial statements of CSRMA are available at their office: 100 Pine Street, 11th Floor, San Francisco, California 94111.

NOTE 14 – LEASE AND SUBSCRIPTION LIABILITIES
A. Lease Liabilities
A summary of governmental activities lease transactions for the fiscal year ended June 30, 2023, are as follows:

Balance Balance Current
June 30, 2022 Retirements June 30, 2023 Portion
Governmental Activities
Lease Liabilities
Fire Station 57 Land Lease $5,480,451 ($508) $5,479,943 $5,540 Copier Equipment Leases 180,245 (82,053) 98,192 56,855
Total $5,660,696 ($82,561) $5,578,135 $62,395
On June 21, 2016, the City entered into a lease agreement as lessee with the County of Marin to lease property for constructing Fire Station # 57 for a 40 year term, ending on June 30, 2056. The City is required to make monthly principal and interest lease payments in the amount of $13,343 commencing July 1, 2021. The monthly lease payments are increased annually in the amount of 3% every July 1. As of June 30, 2023, the balance of the lease liability was $5,479,943 and the net value of the right-to-use asset was $5,163,292, including accumulated amortization of $312,927.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 14 – LEASE AND SUBSCRIPTION LIABILITIES (Continued) The City has entered into four separate equipment lease agreements as a lessee for copiers with various vendors. The lease terms vary from 3-5 years and interest is implicit in the lease agreements in the amount of 5%. The City is required to make monthly or yearly principal and interest lease payments in varying amounts ranging from $1,003 to $50,278, depending on the lease. As of June 30, 2023, the balance of the lease liability was $98,192 and the net value of the right-to-use asset was $96,885, including accumulated amortization of $161,480. The future principal and interest lease payments as of June 30, 2023 are as follows:

For the Year
Ended June 30 Principal Interest Total
2024 $62,395 $168,654 $231,049
2025 39,584 165,616 205,200
2026 29,156 164,311 193,467
2027 22,511 163,102 185,613
2028 28,841 162,340 191,181
2029-2033 252,404 793,055 1,045,459
2034-2038 472,289 739,684 1,211,973
2039-2043 756,237 648,772 1,405,009
2044-2048 1,119,143 509,648 1,628,791
2049-2053 1,579,033 309,179 1,888,212
2054-2058 1,216,542 57,837 1,274,379
Totals $5,578,135 $3,882,198 $9,460,333
B. Subscription-Based Information Technology Liabilities A summary of subscription-based information technology arrangements (SBITA) transactions for the fiscal year ended June 30, 2023, are as follows:

Balance
June 30, 2022 Balance Current
(as restated) Retirements June 30, 2023 Portion
Governmental Activities
Subscription liabilities
Axon $374,019 ($5,348) $368,671 $5,615
Microsoft 1,080,670 (162,496) 918,174 166,166
SeeClickFix 104,762 (49,762) 55,000 55,000
Total $1,559,451 ($217,606) $1,341,845 $226,781
On March 7, 2019, the City entered into a subscription agreement with Axon Enterprise, Inc. for a subscription with a 5 year term. The City is required to make yearly subscription payments ranging from $24,049 to $83,857 throughout the life of the subscription, which ends on December 31, 2029. Interest is implicit in the subscription agreement in the amount of 5%. As of June 30, 2023, the balance of the subscription liability was $368,671 and the net value of the right-to-use asset was $320,588, including accumulated amortization of $53,431.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 14 – LEASE AND SUBSCRIPTION LIABILITIES (Continued) On August 9, 2022, the City entered into a subscription agreement with Microsoft for a subscription with a 6 year term. The City is required to make yearly subscription payments of $212,075 throughout the life of the subscription, which ends on August 31, 2028. Interest is implicit in the subscription agreement in the amount of 5%. As of June 30, 2023, the balance of the subscription liability was $918,174 and the net value of the right-to-use asset was $900,558, including accumulated amortization of $180,112.

On February 23, 2022, the City entered into a subscription agreement with the SeeClickFix, Inc. for a subscription with a 2 year term. The City is required to make yearly subscription payments ranging from $55,000 to $57,750 throughout the life of the subscription, which ends on August 24, 2024. As of June 30, 2023, the balance of the subscription liability was $55,000 and the net value of the right-to-use asset was $52,381, including accumulated amortization of $52,381.

The future subscription and interest subscription payments as of June 30, 2023 follows:

For the Year
Ended June 30 Principal Interest Total
2024 $226,781 $67,092 $293,873
2025 240,178 55,753 295,931
2026 252,188 43,744 295,932
2027 264,797 31,135 295,932
2028 278,037 17,895 295,932
2029 79,864 3,993 83,857
Totals $1,341,845 $219,612 $1,561,457
NOTE 15 – COMMITMENTS AND CONTINGENCIES
A. City Litigation
The City is a defendant in several lawsuits arising from its normal operations. City management is of the opinion that the potential claims against the City not covered by insurance resulting from such litigation would not materially affect the basic financial statements of the City.

B. District
As of June 30, 2023, SRSD had several contracts for sewer improvement projects with remaining obligations of approximately $7,800,000.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 16 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE

TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES
A. Redevelopment Dissolution
In an effort to mitigate its budget deficit, the State of California adopted ABx1 26 on June 28, 2011, amended by AB1484 on June 27, 2012, which suspended all new redevelopment activities except for limited specified activities as of that date and dissolved redevelopment agencies on January 31, 2012.

The suspension provisions prohibited all redevelopment agencies from a wide range of activities, including incurring new indebtedness or obligations, entering into, or modifying agreements or contracts, acquiring, or disposing of real property, taking actions to adopt or amend redevelopment plans and other similar actions, except actions required by law or to carry out existing enforceable obligations, as defined in ABx1 26.

In addition, ABx1 26 and AB1484 directed the State Controller to review the activities of all redevelopment agencies and successor agencies to determine whether an asset transfer between an agency and any public agency occurred on or after January 1, 2011. If an asset transfer did occur and the public agency that received the asset is not contractually committed to a third party for the expenditure or encumbrance of the asset, the legislation requires the State Controller to order the asset returned to the redevelopment agency. This review was performed in May 2013, and a report issued on July 29, 2013 (see section B of this footnote).

The City elected to become the Successor Agency to the Redevelopment Agency, and on February 1, 2012, the Redevelopment Agency’s remaining net assets were distributed to the Successor Agency. ABx1 26 requires the establishment of an Oversight Board to oversee the activities of the Successor Agency and one was established on April 2, 2012. On July 1, 2018, the County of Marin formed a county-wide Oversight Board to oversee the activities of all Successor Agencies within the County, including San Rafael. The activities of the Successor Agency are subject to review and approval of the Oversight Board, which is comprised of seven members.

The activities of the Successor Agency are reported in the Successor Agency to the Redevelopment Agency Private-Purpose Trust Fund as the activities are under the control of the Oversight Board. The City provides administrative services to the Successor Agency to wind down the affairs of the former Redevelopment Agency.

Pursuant to the dissolution of the City of San Rafael Redevelopment Agency, certain assets of the Redevelopment Agency were distributed to the Housing Successor and all remaining Redevelopment Agency assets and liabilities were distributed to the Successor Agency.

The City elected to become the Housing Successor and on February 1, 2012. Assets and Liabilities relating to the Housing Successor are reported in the City’s Low and Moderate Income Housing Special Revenue Fund.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 16 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
B. Redevelopment Property Tax Trust Fund (RPTTF)
The Successor Agency’s primary source of revenue comes from the RPTTF allocation distributed by the County. Property tax revenues for each Project Area are deposited into the RPTTF, which redistributes each Project Area’s tax increment under specified formulas. The County Auditor administers the RPTTF and disburses twice annually from this fund pass-through payments to affected taxing entities, an amount equal to the total of obligation payments that are required to be paid from tax increment as denoted on the Recognized Obligation Payment Schedule (“ROPS”).

The disbursements are established in the treasury of the Successor Agencies, and various allowed administrative fees and allowances. Any remaining balance is then distributed by the County Auditor back to affected taxing entities under a prescribed method that accounts for pass-through payments. The County Auditor is also responsible for the distributing other monies received from the Successor Agency (from sale of assets, etc.) to the affected taxing entities. Successor agencies in turn will use the amounts deposited into their respective funds to make payments for principal and interest on loans and monies advanced to or indebtedness incurred by the dissolved redevelopment agencies.

C. Long-Term Debt
1999 Tax Allocation Bonds and Capital Appreciation Bonds On June 16, 1999, the former Agency issued Tax Allocation Bonds in the amount of $23,504,004.

The bonds were issued as Current Interest Bonds in the aggregate principal amount of $21,115,000 and as Capital Appreciation Bonds in the original amount of $2,389,004. The proceeds of the bonds were used to finance certain redevelopment activities of benefit to the former Agency’s Central San Rafael Redevelopment Project Area.

In December 2009 of the former Agency exercised the redemption option of the Current Interest Bonds. The outstanding balance of the Bonds was refunded, on a current basis, through the issuance of the 2009 Tax Allocation Refunding Bonds as discussed below.

The Capital Appreciation Bonds matured annually after December 1 from 2018 to 2022, in amounts ranging from $1,440,000 to $2,070,000 and bore interest at rates from 5.58% to 5.60%.

Interest on the Capital Appreciation Bonds compounded on each interest premium date and were paid in full at maturity. The bonds were secured, on parity with the 1992 and 1995 bonds (refunded in 2002), by a pledge and a lien on tax revenues and amounts on deposit in certain funds and accounts held by the fiscal agent. The 1999 Tax Allocation Capital Appreciation Bonds were paid off as of June 30, 2023.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 16 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
2009 Tax Allocation Refunding Bonds
On December 14, 2009, the former Agency issued 2009 Tax Allocation Refunding Bonds in the amount of $14,660,000 bearing interest at rates from 3.00% to 5.00%. The proceeds of the Series 2009 Bonds were used to refund the former Agency’s 1999 Tax Allocation Current Interest Bonds and to advance funds to the City to finance street and parking improvements for the benefit of the Agency’s Central San Rafael Redevelopment Project. Principal payments were due annually on December 30 and interest payable semiannually on June 30 and December 30. The 2009 Tax Allocation Refunding Bonds were paid off as of June 30, 2023.

Use of Tax Increment
The former Agency pledged all future tax increment revenues for the repayment of the 1999 Capital Appreciation Bonds, and 2009 Tax Allocation Refunding Bonds. The pledge of all future tax increment revenues ended upon repayment of $3.6 million in remaining debt service on the Bonds, which occurred December 1, 2022. For fiscal year June 30, 2023, tax increment revenue amounted to $630 thousand which, combined with fund balance, was used to make the debt service payment of $5 million.

The following table summarizes the activity for the fiscal year ended June 30, 2023:

Authorized Balance Balance Current
and Issued June 30, 2022 Additions Retirements June 30, 2023 Portion San Rafael Successor Agency
1999 Tax Allocation Bonds
Capital Appreciation Bonds

5.58%-5.6%, due 12/1/2022 $2,389,004 $2,013,587 $56,413 $2,070,000 2009 Tax Allocation Refunding Bonds

3.00%-5.00%, due 12/1/2022 14,660,000 1,460,000 1,460,000 Add: deferred bond premium costs 79,867 79,867
Total Successor Agency Long-term Debt $3,553,454 $56,413 $3,609,867 D. Commitment and Contingencies
State Approval of Enforceable Obligation
The Successor Agency prepares a Recognized Obligation Payment Schedule (ROPS) semi-annually that contains all proposed expenditures for the subsequent six-month period. The ROPS is subject to the review and approval of the Oversight Board as well as the State Department of Finance. As of June 30, 2023, the Successor Agency had prepared sixteen ROPS, all of which have been approved by the Oversight Board and the California Department of Finance. The Department of Finance has stated that all items on a future ROPS are subject to a subsequent review. The amount, if any, of current obligations that may be denied by the Department of Finance cannot be determined at this time. The City expects such amounts, if any, to be immaterial.

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REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
Measurement date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 City's proportionate share 30.0453% 36.7394% 34.9538% 32.7180% 33.4752% Proportionate share of total pension liability $677,753,565 $907,195,058 $900,629,287 $878,483,703 $947,923,920 Proportionate share of fiduciary net position 603,499,779 764,871,931 733,574,437 757,834,016 837,356,062 Proportionate share of the net pension liability $74,253,786 $142,323,127 $167,054,850 $120,649,687 $110,567,858 Plan fiduciary net position as a percentage of the total pension lia 89.04% 84.31% 84.31% 86.27% 88.34% Covered payroll (report date) $28,563,328 $31,073,560 $32,126,272 $32,885,135 $36,349,651 Net pension liability as a percentage of covered payroll 259.96% 458.02% 519.99% 366.88% 304.18% Measurement date 6/30/2019 6/30/2020 6/30/2021 6/30/2022 City's proportionate share 36.6081% 34.3574% 29.6650% 33.7322% Proportionate share of total pension liability $1,082,900,638 $1,059,269,505 $959,104,784 $1,120,775,111 Proportionate share of fiduciary net position 949,023,107 901,989,929 1,007,281,093 1,015,298,454 Proportionate share of the net pension liability (asset) $133,877,531 $157,279,576 ($48,176,309) $105,476,657 Plan fiduciary net position as a percentage of the total pension lia 87.64% 85.15% 105.02% 90.59% Covered payroll (report date) $33,106,430 $32,887,922 $31,697,590 $34,418,052 Net pension liability (asset) as a percentage of covered payroll 404.39% 478.23% -151.99% 306.46% * - The fiscal year ended June 30, 2015 was the first year of implementation, therefore only nine years are shown.

Cost-Sharing Multiple Employer Plan
Schedule of the City's Proportionate Share of the Net Pension Liability Last 10 years*
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REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015) Fiscal year ended, June 30 2015
Contractually required contribution $17,802,358
Contributions in Relation to the
Contractually required contribution 17,802,358
Contribution Deficiency/ (Excess) $0
Covered payroll $31,073,560
Contributions as a percentage of
covered payroll 57.29%
Notes to Schedule
Valuation Date / Timing 6/30/2013 (for contributions made in FY2014-2015) Key Methods and Assumptions Used to Determine Contribution Rates (for FY2014-15):

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Actuarial Loss from 2009 Remaining Amortization period Unfunded liability - 17 years / Extraordinary Actuarial Loss - 25 years Asset valuation method 5-year smoothed market, 80% /120% corridor around market Inflation 3.25%
Salary increases 3.25% plus merit component based on employee classification and years of service Investment Rate of Return 7.50%
Retirement Age
Healthy Mortality Sex distinct RP-2000 Combined Mortality projected to 2010 using Scale AA with ages set back one year for male members / two years for female members Disabled Mortality Sex distinct RP-2000 Combined Mortality projected to 2010 using Scale AA with ages set forward three years for all members
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62 REVIEW DRAFT 98 10/30/2023

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REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
Fiscal year ended, June 30 2016
Contractually required contribution $19,339,577
Contributions in Relation to the
Contractually required contribution 19,339,577
Contribution Deficiency/ (Excess) $0
Covered payroll $32,126,272
Contributions as a percentage of
covered payroll 60.20%
Notes to Schedule
Valuation Date / Timing 6/30/2014 (for contributions made in FY2015-2016) Key Methods and Assumptions Used to Determine Contribution Rates (for FY2015-16):

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Actuarial Loss from 2009 Remaining Amortization period Unfunded liability - 16 years / Extraordinary Actuarial Loss - 24 years Asset valuation method 5-year smoothed market, 80% /120% corridor around market Inflation 3.25%
Salary increases 3.25% plus merit component based on employee classification and years of service Investment Rate of Return 7.25%
Retirement Age
Healthy Mortality CalPERS 2014 Pre-Retirement Non-Industrial Death rates (plus Duty-Related Death rates for Safety Members), with the 20-year static projection used by CalPERS replaced by generational improvements from a base year of 2009 using Scale MP-2014 Disabled Mortality CalPERS 2014 Disability Mortality rates (Non-Industrial rates for Miscellaneous members and Industrial Disability rates for Safety members), adjusted by 90% for Males and Females (Miscellaneous and Safety) with the 20-year static projection used by CalPERS replaced by generational improvements from a base year of 2009 using Scale MP-2014 Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62 Defined Benefit Pension Plan
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015) (Continued)
Cost-Sharing Multiple Employer
Schedule of Contributions
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REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
Fiscal year ended, June 30 2017
Contractually required contribution $20,003,001
Contributions in Relation to the
Contractually required contribution 20,003,001
Contribution Deficiency/ (Excess) $0
Covered payroll $32,885,135
Contributions as a percentage of
covered payroll 60.83%
Notes to Schedule
Valuation Date / Timing 6/30/2015 (for contributions made in FY2016-2017) Key Methods and Assumptions Used to Determine Contribution Rates (for FY2016-17):

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses (24 years remaining as of 6/30/14), the remaining UAL as of June 30, 2013 (16 years as of 6/30/14), and additional layers for unexpected changes in UAL after 6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for assumption changes with a 3-year phase-in/out).

Remaining Amortization period 19 years remaining as of June 30, 2016 Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service Investment Rate of Return 7.25%
Retirement Age
Healthy Mortality Sex distinct RP-2000 combined mortality projected to 2010 using Scale AA with ages set back one year for male members/two years for female members Disabled Mortality Sex distinct RP-2000 combined mortality projected to 2010 using Scale AA with ages set forward three years for all members
Defined Benefit Pension Plan
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015) Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62 (Continued)
Cost-Sharing Multiple Employer
Schedule of Contributions
REVIEW DRAFT 100 10/30/2023

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
Fiscal year ended, June 30 2018
Contractually required contribution $20,167,435
Contributions in Relation to the
Contractually required contribution 20,167,435
Contribution Deficiency/ (Excess) $0
Covered payroll $36,349,651
Contributions as a percentage of
covered payroll 55.48%
Notes to Schedule
Valuation Date / Timing 6/30/2016 (for contributions made in FY2017-2018) Key Methods and Assumptions Used to Determine Contribution Rates (for FY2017-18):

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses (22 years remaining as of 6/30/16), the remaining UAL as of June 30, 2013 (14 years as of 6/30/16), and additional layers for unexpected changes in UAL after 6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for assumption changes with a 3-year phase-in/out).

Remaining Amortization period 18 years remaining as of June 30, 2017 Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service Investment Rate of Return 7.25%
Retirement Age
Healthy Mortality Sex distinct CalPERS 2014 Pre-Retirement Non-Industrial Death rates (plus Duty-Related death rates for Safety members)
Disabled Mortality Sex distinct RP-2000 combined mortality projected to 2010 using Scale AA with ages set forward three years for all members
Disabled Mortality Rates of mortality among disabled members are given by CalPERS 2017 Disability Mortality rates (Non-Industrial rates for Miscellaneous members and Industrial Disability rates for Safety members), adjusted by 90% for Males (Miscellaneous and Safety) and 90% for Miscellaneous Females, with the 15-year static projection used by CalPERS replaced by generational improvements from a base year of 2014 using Scale MP-2017.

Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015) Schedule of Contributions
(Continued)
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62 REVIEW DRAFT 101 10/30/2023

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
Fiscal year ended, June 30 2019
Contractually required contribution $20,352,203
Contributions in Relation to the
Contractually required contribution 20,352,203
Contribution Deficiency/ (Excess) $0
Covered payroll $33,106,430
Contributions as a percentage of
covered payroll 61.48%
Notes to Schedule
Valuation Date / Timing 6/30/2017 (for contributions made in FY2018-2019) Key Methods and Assumptions Used to Determine Contribution Rates (for FY2018-19):

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses (21 years remaining as of 6/30/17), the remaining UAL as of June 30, 2013 (13 years as of 6/30/17), and additional layers for unexpected changes in UAL after 6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for assumption changes with a 3-year phase-in/out).

Remaining Amortization period 17 years remaining as of June 30, 2018 Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service Investment Rate of Return 7.00%
Retirement Age
Healthy Mortality Rates of mortality for active members are specified by CalPERS 2017 Pre-Retirement Non-Industrial Death Rates (plus Duty-Related Death rates for Safety members), with the 20-year static projection used by CalPERS replaced by generational improvements from a base year of 2014 using Scale MP-2017.

Disabled Mortality Rates of mortality among disabled members are given by CalPERS 2017 Disability Mortality rates (Non-Industrial rates for Miscellaneous members and Industrial Disability rates for Safety members), adjusted by 90% for Males (Miscellaneous and Safety) and 90% for Miscellaneous Females, with the 20-year static projection used by CalPERS replaced by generational improvements from a base year of 2014 using Scale MP-2017.

Cost-Sharing Multiple Employer
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62 Schedule of Contributions
Defined Benefit Pension Plan
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015) (Continued)
REVIEW DRAFT 102 10/30/2023

CITY OF SAN RAFAEL

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
Fiscal year ended, June 30 2020
Contractually required contribution $20,031,614
Contributions in Relation to the
Contractually required contribution 20,031,614
Contribution Deficiency/ (Excess) $0
Covered payroll $32,887,922
Contributions as a percentage of
covered payroll 60.91%
Notes to Schedule
Valuation Date / Timing 6/30/2018 (for contributions made in FY2019-2020) Key Methods and Assumptions Used to Determine Contribution Rates (for FY2019-20):