Sand City City Council
December 20, 2022

REGULAR MEETING

JOINT SAND CITY COUNCIL AND

SUCCESSOR AGENCY OF THE

REDEVELOPMENT AGENCY
TUESDAY, DECEMBER 20, 2022
5:30 PM
1 AGENDA

JOINT SAND CITY COUNCIL AND SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY
Regular Meeting - Tuesday, December 20, 2022
5:30 PM

THIS MEETING WILL BE HELD VIRTUALLY AND IN PERSON, IS COMPLIANT WITH ASSEMBLY BILL (“AB”) 361, SIGNED INTO LAW ON SEPTEMBER 16, 2021, WHICH AMENDS GOVERNMENT CODE SECTION 54953 TO PROVIDE AUTHORITY FOR PUBLIC

AGENCIES TO HOLD VIRTUAL MEETINGS DURING A PROCLAIMED STATE OF EMERGENCY AND REMAIN IN COMPLIANCE WITH THE BROWN ACT (GOV. CODE §§ 54950 ET SEQ.).

TO PARTICIPATE IN THE ZOOM COUNCIL MEETING LIVE:
https://us02web.zoom.us/j/4614728829
Meeting ID: 461 472 8829
To participate telephonically by calling the number below:
(669) 900-6833
Meeting ID: 461 472 8829#
If prompted to enter a participant ID, press #
TO PARTICIPATE IN PERSON:

City Hall Council Chambers
1 Pendergrass Way
Sand City, CA
How to submit written Public Comments:

If any member of the public would like to provide written comments at the meeting, please do as set forth below.

Written: All comments received before 8:00 am the day of the meeting will be posted on the City’s website as “Correspondence” under the relevant agenda item and provided to the City Council members at the meeting. Please email your comments to: [email protected].

Read Aloud During the Meeting: Email your comments to [email protected]. When the Mayor opens the public comment period for the relevant agenda item; please indicate the agenda item and title in your email subject line. If you want your comment read aloud, prominently write “Read Aloud at Meeting” at the top of the email and your comments will be read into the record (not to exceed three minutes at staff’s cadence).

DURING EACH MEETING, members of the public may participate by calling and speaking live during the designated time(s), subject to time limits that may be imposed pursuant to the Brown Act at the number provided above. Please use the "raise your hand" option on Zoom, and the City Clerk will call on your name.
2 1. ROLL CALL

2. PLEDGE OF ALLEGIANCE

3. INVOCATION

4. ANNOUNCEMENT BY MAYOR, CITY ATTORNEY, AND CITY MANAGER

5. COMMUNICATIONS
Members of the public may address the City Council/Successor Agency on matters not appearing on the City Council/Successor Agency Agenda at this time for up to three minutes. In order that the City Clerk may later identify the speaker in the minutes of the meeting, it is helpful if speakers state their names. Public comments regarding items on the scheduled agenda will be heard at the time the item is being considered by the City Council/Successor Agency.

The City Council Chambers podium is equipped with a portable microphone for anyone unable to come to the podium. If you need assistance, please advise the City Clerk as to which item you would like to comment on and the microphone will be brought to you.

6. SWEARING IN CEREMONY OF ELECTED OFFICIALS
6A. Approval of City RESOLUTION Declaring the Results of the November 8, 2022 General Municipal Election
Resolution.Declaring the Results of the November 8, 2022 General Municipal Election.pdf
6B. Swearing in Ceremony of Elected Officials:
1) Mary Ann Carbone - Mayor
2) Jerry Blackwelder and Elizabeth Sofer - Council Members

7. CONSENT CALENDAR
The Consent Agenda consists of routine items for which City Council approval can be taken with a single motion and vote. A Council member may request that any item be placed on the Regular Agenda for separate consideration.
7A. Approval of the December 6, 2022 Council Meeting Minutes

12.06.22 REGULAR Meeting Minutes.pdf
7B. Acceptance of City/Successor Agency Monthly Financial Report, October 2022 October 2022 City.Successsor Agency Financial Report.pdf 7C. Approval of City RESOLUTION Authorizing the Extension of Remote Teleconference Meetings of the City Council and Boards, Commission, and Committees for the Period of December 21, 2022 through January 20, 2023 Resolution. Authorizing the Extension of Remote Teleconfrence Meetings.pdf 7D. Approval of Addition to 2022 Appointments List
Staff Report. Addition to 2022 Appointments List.pdf
7E. Approval of City Donation/Contribution
1) Jacob's Heart Children Cancer Support Services - $250 3 Memo. City Donation.Contribution.pdf

8. CONSIDERATION OF ITEMS PULLED FROM CONSENT CALENDAR

9. PUBLIC HEARING
9A. Consideration and Approval of City RESOLUTION to Approve Coastal Development Permit 22-02 for Karma Circle U.S.A. Conducting Inventory Storage and Wholesale Distribution at 325 Elder Avenue, Unit 4
Staff Report. Coastal Development Permit for Karma Circle USA Clothing Wholesaler.Distributor.pdf
Resolution. To Approve Coastal Development Permit 22-02 for Karma Circle U.S.A. Conducting Inventory Storage and Wholesale Distribution at 325 Elder Avenue, Unit 4.pdf

10. NEW BUSINESS
10A. Consideration and Approval of City RESOLUTION Approving Special Event Permit 23-01 for a Bicycle Criterium on July 23, 2023 in the West End District Staff Report and Resolution for Special Event Permit Application.pdf 10B. Discussion and Direction regarding the 2023 Mural Festival Staff Report. Discussion and Direction regarding the 2023 Mural Festival.pdf RFP-We-Mural-Festival 2023.pdf
10C. Consideration of City RESOLUTION Authorizing the City Manager to Execute a Professional Service Agreement with California Consulting at a cost not to Exceed $20,000 to Perform Grant Related Services
Staff Report.Professional Services Agreement for Grant Writing Services.pdf Resolution. Authorizing the City Manager to Execute a Professional Service Agreement with California Consulting.pdf
10D. Consideration and Approval of City RESOLUTIONS regarding Implementation of Local Transactions and Use Tax:
1) Adoption of City RESOLUTION Authorizing the City Manager to Execute Agreements with the California Department of Tax and Fee Administration for Implementation of a Local Transactions and Use Tax at a Rate of One and OneHalf Percent 2) Adoption of City RESOLUTION Authorizing the Examination of Sales or Transaction and Use Taxes Records
Staff Report. Authorizing the City Manager to Execute Agreements with the California Department of Tax and Fee Administration for Implementation of a Local Transactions and Use Tax.pdf
Exhibit A. Resolution. Authorizing the City Manager to Execute Agreements with the California Department of Tax and Fee Administration.pdf Exhibit B. Resolution Authorizing the Examination of Sales or Transactions and Use Taxes Records.pdf
4 10E. Consideration of Cancelling Future Council Meeting PURPOSE: It is proposed that the City Council cancel the City Council meeting scheduled for January 3, 2023 to minimize conflict with the Christmas and New Year’s Holiday closure of City Hall, December 23, 2022 – January 2, 2023 10F. Comments by Council Members on Items of Interest to Sand City 10G. Upcoming Meetings/Events

11. ADJOURNMENT
The current agenda is available in PDF format on our website at:
www.sandcity.org
If you have a request for a disability-related modification or accommodation, including auxiliary aids or services, which will allow you to participate in a Sand City public meeting, please call the City Clerk at (831) 394-3054 extension 220, or give your written request to the City Clerk at 1 Pendergrass Way, Sand City, CA 93955 at least 48 hours prior to the scheduled meeting to allow the City Clerk time to arrange for the requested modification or accommodation.
5 AGENDA ITEM
6A.

Approval of City RESOLUTION Declaring
the Results of the November 8, 2022
General Municipal Election
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8 9
10 11
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16 AGENDA ITEM
6B.

Swearing in Ceremony of Elected Officials:
1) Mary Ann Carbone - Mayor 2) Jerry
Blackwelder and Elizabeth Sofer - Council
Members
17 AGENDA ITEM
7A.

Approval of the December 6, 2022 Council
Meeting Minutes
18 ___________________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 12.06.22 Regular Meeting

MINUTES

JOINT SAND CITY COUNCIL AND SUCCESSOR

AGENCY OF THE REDEVELOPMENT AGENCY
Regular Meeting - Tuesday, December 6, 2022
5:30 PM
As allowed per Assembly Bill (AB361), this meeting was conducted in person and by teleconference
Mayor Carbone called the meeting to order at: 5:00 p.m.

AGENDA ITEM 1, ROLL CALL

Present: Mayor Mary Ann Carbone
Council Member Blackwelder
Councilmember Cruz
Councilmember Hawthorne
Councilmember Sofer
Staff: Vibeke Norgaard, City Manager
Adam Lindgren, Interim City Attorney (virtual attendance) Connie Horca, City Clerk
Michael Mount, Police Sergeant

AGENDA ITEM 2, PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Sergeant Mount.

AGENDA ITEM 3, INVOCATION
The invocation was led by Reverend Robert Hellam.

AGENDA ITEM 4, ANNOUNCEMENT BY MAYOR, CITY ATTORNEY, AND CITY MANAGER City Manager Norgaard recognized Mary Carbone, Laura Morales and Connie Horca for a successful Tree Lighting Ceremony. She also provided an update on the South of Tioga project that was moving ahead with the curb and gutter framing, and announced that Sand City was featured on the front page of the Monterey County Herald for 2 consecutive days.

AGENDA ITEM 5, COMMUNICATIONS
5:35 P.M. Floor opened for Public Comment.

There were no comments from the Public in person, via writing or through telecommunications.
5:35 P.M. Floor closed to Public Comment
19 ___________________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 12.06.22 Regular Meeting
AGENDA ITEM 6, CONSENT CALENDAR
6A. There was no discussion of the November 15, 2022 Council Meeting Minutes. 6B. There was no discussion of the City Resolution authorizing the Extension of Remote Teleconference Meetings of the City Council and Boards, Commission, and Committees for the Period of December 7, 2022 through January 6, 2023 pursuant to AB 361 and the Ralph M. Brown Act Provisions. 6C. There was no discussion of the City Donation/Contribution to the Salvation Army Holiday Support for $300.
5:36 P.M. Floor opened for Public Comment.

There were no comments from the Public in person, via writing or through telecommunications.
5:37 P.M. Floor closed to Public Comment.

Motion to approve the Consent Calendar items was made by Council Member Blackwelder, seconded by Council Member Hawthorne. AYES: Council Members Blackwelder, Carbone, Cruz, Hawthorne, Sofer. NOES: None. ABSENT: None. ABSTAIN:

None. Motion carried.

AGENDA ITEM 7, CONSIDERATION OF ITEMS PULLED FROM CONSENT CALENDAR There were no items pulled from the Consent Calendar.

AGENDA ITEM 8, PRESENTATION
8A. Presentation of Certificates to Volunteers/Supporters of the 2022 West End Celebration
Mr. Stephen Vagnini coordinator of the West End Celebration wished the City Council Happy Holidays and presented the Council with a Resolution by the Board of Supervisors recognizing the West End Celebration. He thanked the Council and City Staff for their participation in the West End Celebration and distributed certificates of recognition to members of the public, city staff, council woman Sofer, and also recognized those individuals who remotely joined the meeting via Zoom.

AGENDA ITEM 9, NEW BUSINESS
9A. Consideration and Approval of City RESOLUTION Approving a Service Agreement with SLV Management (Stephen Vagnini) for the 2023 West End Celebration (WEC)
City Manager Norgaard presented the Staff report regarding a service agreement with SLV management for the 2023 West End Celebration (WEC), reported that in 2022, the event raised $30,672 in sponsorships and donations, with a net cost to the 20 ___________________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 12.06.22 Regular Meeting
City of $56,889.84. The 2023 WEC projects a revenue of $40,000 with a projected cost to the City of $45,000, and next year’s budget would need to allocate $75,000 for the event. Ms. Norgaard also reported the overtime costs of the event for public safety and public works staff. The resolution is attached for Council consideration and approval.
5:57 P.M. Floor opened for Public Comment.

There were no comments from the Public in person, via writing or through telecommunications.
5:57 P.M. Floor closed to Public Comment.

Motion to approve the City Resolution approving a Service Agreement with SLV Management (Stephen Vagnini) for the 2023 West End Celebration (WEC) was made by Council Member Hawthorne, seconded by Council Member Blackwelder.

AYES: Council Members Blackwelder, Carbone, Cruz, Hawthorne, Sofer. NOES:

None. ABSENT: None. ABSTAIN: None. Motion carried.
9B. Consideration and Approval of Successor Agency RESOLUTION Approving the Recognized Obligation Payment Schedule (ROPS 23 -24) and Administrative Budget for the Period July 1, 2023 through June 30, 2024 Ms. Suzy Kim Director of RSG, Inc. presented a brief history of the Dissolution Act, dissolution of Redevelopment Agencies, and Sand City’s election to serve as the Successor Agency to the former Redevelopment Agency. She reported that Agency Staff prepared a proposed Recognized Obligations Payment Schedule (ROPS) for fiscal year 2023-2024. The attached ROPS is requesting $2,255,095 that includes $250,000 for administrative costs as well as funding for the City’s right to litigate the denial of the repayment of the City loan. Following Council approval the ROPS 23- 24 will be forwarded to the Monterey County Oversight Board for their January meeting. It is recommended that the Successor Agency Board approve the attached resolution.
6:02 P.M. Floor opened for Public Comment.

There were no comments from the Public in person, via writing or through telecommunications.
6:02 P.M. Floor closed to Public Comment.

Motion to approve the Successor Agency Resolution approving the Recognized Obligation Payment Schedule (ROPS 23-24) and Administrative Budget for the Period July 1, 2023 through June 30, 2024 was made by Agency Member Hawthorne, seconded by Agency Member Sofer. AYES: Successor Agency Members Blackwelder, Carbone, Cruz, Hawthorne, Sofer. NOES: None. ABSENT:

None. ABSTAIN: None. Motion carried.
21 ___________________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 12.06.22 Regular Meeting
9C. Consideration and Approval of City RESOLUTION Authorizing the City Manager to enter into a Professional Services Agreement with Monterey Bay Technologies, Inc., and Rescinding Resolution SC 22-76
City Manager Norgaard presented the staff report regarding a professional services agreement for IT Services with Monterey Bay Technologies. She reported on the history of IT Services with Mr. Jansen, who has announced his retirement, and that the candidate chosen to serve in is place has withdrawn his candidacy. Staff reached out to various municipalities and received two proposals for IT Services with the recommendation of Mr. Yavuz Atila. Ms. Norgaard reported on the monthly and annual costs for IT Services, Mr. Atila’s qualifications, and that the contract would be for a period of 3 years. Staff recommends the Council approve the attached resolution.
6:09 P.M. Floor opened for Public Comment.

Mr. Atila commented that he graduated from the Post Naval Graduate School, is originally from Turkey, and is agreement with the terms of the contract. 6:09 P.M. Floor closed to Public Comment.

Motion to approve the City Resolution authorizing the City Manager to enter into a Professional Services Agreement with Monterey Bay Technologies, Inc., and Rescinding Resolution SC 22-76 was made by Council Member Hawthorne, seconded by Council Member Blackwelder. AYES: Council Members Blackwelder, Carbone, Cruz, Hawthorne, Sofer. NOES: None. ABSENT: None. ABSTAIN: None.

Motion carried.
9D. Comments by Council Members on Items of Interest to Sand City

There were no comments by the Council Members.
9E. Upcoming Events/Meetings
The Mayor announced the upcoming Annual Awards Banquet to be held on Friday, December 9, 2022 at 6:00 p.m.

AGENDA ITEM 10, ADJOURNMENT
There was consensus of the Council to adjourn the meeting at 6:15 p.m. to the next regularly scheduled meeting on Tuesday, December 20, 2022 at 5:30 p.m. _______________________________
Connie Horca, City Clerk
22 AGENDA ITEM
7B.

Acceptance of City/Successor Agency
Monthly Financial Report, October 2022
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AGENDA ITEM
7C.

Approval of City RESOLUTION Authorizing
the Extension of Remote Teleconference
Meetings of the City Council and Boards,
Commission, and Committees for the
Period of December 21, 2022 through
January 20, 2023
69 CITY OF SAND CITY
RESOLUTION SC _____, 2022

RESOLUTION OF THE CITY COUNCIL OF SAND CITY

AUTHORIZING THE EXTENSION OF REMOTE TELECONFERENCE MEETINGS OF

THE CITY COUNCIL AND BOARDS, COMMISSIONS, AND COMMITTEES FOR THE PERIOD OF DECEMBER 21, 2022 THROUGH JANUARY 19, 2023 PURSUANT TO AB 361 AND RALPH M. BROWN ACT PROVISIONS
WHEREAS, the City of Sand City (“the City”) is committed to preserving and nurturing public access and participation in meetings of the City Council and boards, commissions, and committees (collectively, “legislative bodies”); and WHEREAS, all meetings of the City’s legislative bodies are open and public, as required by Government Code sections 54950-54963 (the “Ralph M. Brown Act”) so that any member of the public may attend public meetings, watch the City’s legislative bodies conduct their public business, and participate by directly addressing the legislative bodies; and
WHEREAS, pursuant to Governor Newsom’s signing of Assembly Bill 361 (“AB 361”) on September 16, 2021, Government Code section 54953(e) provides for remote teleconferencing participation in meetings by members of a legislative body, without compliance with the requirements of Government Code section 54953(b)(3), subject to the existence of certain conditions; and
WHEREAS, AB 361 applies to meetings during a proclaimed state of emergency and when state or local officials have imposed or recommended measures to promote social distancing; and
WHEREAS, a state of emergency exists in California as a result of the threat of COVID19 as proclaimed by Governor Newsom on March 4, 2020, and the state of emergency has not been terminated pursuant to Government Code section 8629; and WHEREAS, the California Department of Public Health (“CDPH”) and the federal Centers for Disease Control and Prevention (“CDC”) caution that several variants of COVID-19 in the country, are more transmissible than prior variants of the virus, may cause more severe illness, and that even fully vaccinated individuals can spread the virus to others resulting in rapid and alarming rates of COVID-19 cases and hospitalizations; and
WHEREAS, other variants of COVID-19 exist, and it is unknown at this time whether other variants may result in a new surge in COVID-19 cases; and WHEREAS, the City Council has an important governmental interest in protecting the health, safety and welfare of those who participate in meetings of the City’s legislative bodies subject to the Brown Act; and
70 Sand City Resolution SC 22-, 2022
WHEREAS, the City Council does hereby confirm the circumstances of the state of emergency and finds that meeting in person for meetings of the legislative bodies of the City would present imminent risks to the health or safety of attendees, and therefore that the legislative bodies of the City may conduct their meetings without compliance with paragraph (3) of subdivision (b) of Government Code section 54953, as authorized by subdivision (e) of section 54953, and that such legislative bodies shall comply with the requirements to provide the public with access to the meetings as prescribed in paragraph (2) of subdivision (e) of Section 54953; and
WHEREAS, in order to ensure that the public has full access to observe and participate in the public meetings of its legislative bodies, the City provides free internet-based public meeting attendance options, allowing members of the public to address the City’s legislative bodies directly in real time; and
WHEREAS, the City determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 (CEQA Guidelines), Article 20, Section 15378).

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

SECTION 1. The recitals set forth above are true and correct and are adopted by the City Council as findings in support of this Resolution.

SECTION 2. The City Manager, City Attorney, staff, and legislative bodies of the City are hereby authorized and directed to take all actions necessary to carry out the intent and purpose of this Resolution, including conducting open and public meetings in accordance with Government Code section 54953(e) and other applicable provisions of the Brown Act.

SECTION 3. This Resolution shall take effect immediately upon its adoption and shall be effective until the earlier of (i) January 19, 2023, or (ii) such time as the City Council adopts a subsequent resolution in accordance with Government Code section 54953(e)(3) to extend the time during which the legislative bodies of the City of Sand City may continue to teleconference without compliance with paragraph (3) of subdivision (b) of section 54953.

PASSED AND ADOPTED by the City Council of Sand City on this 20th, day of December, 2022, by the following vote:

AYES: Council Members
NOES: None
ABSENT: None
ABSTAIN: None
71 Sand City Resolution SC 22-, 2022
APPROVED:
___________________________
ATTEST: Mary Ann Carbone, Mayor
__________________________
Connie Horca, City Clerk
72 AGENDA ITEM
7D.

Approval of Addition to 2022
Appointments List
73 City of Sand City

STAFF REPORT
TO: Mayor and City Council
FROM: Connie Horca, City Clerk
SUBJECT: Addition to 2022 Appointments List
DATE: December 14, 2022
FOR: December 20, 2022 Council Meeting
_______________________________________________________________________ Background:

On January 18, 2022, the City Council passed and adopted Resolution SC 22-01 Updating the Appointment to Various Local and State Agencies and Boards. It was determined that an alternate to the Budget/Personnel Committee be added to ensure that the City can continue to hold meetings that will require oversight and review by the Budget/Personnel Committee, such as discussion and review of the Audited Financial Statements for FY 21- 22, and review of fiscal year budgets.

CEQA:

The approval of an appointments list does not constitute a "project" as defined by the California Environmental Quality Act (CEQA) guidelines section 15378.

Fiscal Impact:

There is no financial impact for this decision.

Recommendation:

Staff recommends Council approval to update the current Appointments List to add Council Member Elizabeth "Libby" Sofer as an alternate to the Budget/Personnel Committee (attached as Exhibit A).
74 2022 SAND CITY APPOINTMENTS LIST
MoCo Integrated Waste Management Charles Pooler 755-8909 Monterey Peninsula Chamber of Commerce Board:Kim Cruz 648-5360 Alternate:Libby Sofer
Monterey-Salinas Transit District (MST) 1-888-678-8271
2nd Monday of each month @10:00 a.m.

Monterey Regional Stormwater Mgt. Program Board: Leon Gomez 646-3799 4th Wednesday of every month @10:a.m.

Monterey Regional Waste Management District
(MRWMD) Board: Jerry Blackwelder; Mary Ann Carbone 384-5313/755- 8923
3rd Friday each month @ 9:30 a.m. Tech Comm: City Manager; Charles Pooler Monterey Peninsula Water Management
District (MPWMD)
658-5600
3rd Monday of each month @ 7:00 p.m.

Regional Taxi Authority
Meets once a year
Board: Mayor Mary Ann Carbone
Alternate: Jerry Blackwelder
1-888-678-8271
Monterey County Oversight Board (SA) Representatives: City Manager; Devon Lazzarino 394-3054 Sanctuary Scenic Trail Board: Jerry Blackwelder; Charles Pooler 755-0903 Seaside County Sanitation District Board: Jerry Blackwelder/Alt: Mayor Carbone 899-6200 2nd Tuesday of each month @ 9:30 a.m.

Transportation Agency of Monterey County
(TAMC)
755-0903
4th Wednesday of each month @ 9:00 a.m.

TAC: 1st Thursday of each month
WaterMaster Board
(Seaside Groundwater Basin) Board: Mayor Mary Ann Carbone; City Manager Legal Counsel: Vibeke Norgaard
641-0113
1st Wednesday of each month @ 1:30 p.m. TAC: Mary Ann Carbone/ Leon Gomez; City Manager Budget: City Manager
Sub-Committees
Budget & Personnel Chair: Mary Ann Carbone; Kim Cruz
Alternate: Libby Sofer; Staff: City Manager
Public Facilities Mary Ann Carbone; Jerry Blackwelder
City Specials Events Advisory Committees Mary Ann Carbone; Greg Hawthorne, Staff: Connie Horca
Board: Mayor Mary Ann Carbone
Alternate: Jerry Blackwelder
Policy Advisory: Mary Ann Carbone
Technical Advisory: City Manager
BOARD: Greg Hawthorne/Alt: Jerry Blackwelder
2nd Alt: Kim Cruz
BIKE: Libby Sofer
RAIL: Kim Cruz
TAC: Leon Gomez/City Manager
75 AGENDA ITEM
7E.

Approval of City Donation/Contribution 1)
Jacob's Heart Children Cancer Support
Services - $250
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AGENDA ITEM
9A.

Consideration and Approval of City
RESOLUTION to Approve Coastal
Development Permit 22-02 for Karma
Circle U.S.A. Conducting Inventory Storage
and Wholesale Distribution at 325 Elder
Avenue, Unit 4
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98 AGENDA ITEM
10A.

Consideration and Approval of City
RESOLUTION Approving Special Event
Permit 23-01 for a Bicycle Criterium on
July 23, 2023 in the West End District
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AGENDA ITEM
10B.

Discussion and Direction regarding the
2023 Mural Festival
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City of Sand City

STAFF REPORT
TO: Mayor and City Council
FROM: Vibeke Norgaard, City Manager,
DATE: December 13, 2022 (For December 20, 2022 Council Meeting) SUBJECT: Discussion and Direction regarding the 2023 Mural Festival ______________________________________________________________________ Background:

The City has held three mural festivals since the first one was held in September of 2020.

The first festival included six local artists and seven national artists, and produced seven large-scale murals throughout the City’s West End. The Council decided to continue the festival in 2021 which was held from August 23-28, 2021, with 31 local national and international artists across 13 walls in the City.

In February of 2022, Council directed the City Manager to enter into a contract with Pat Milbery and Hunter Stevens, operating as SoGnar, Inc. to curate and manage a third festival on August 18-August 25, 2022. SoGnar had also been the curators of the prior two festivals, in close collaboration with the Sand City Arts Committee and City staff.

For the 2022 we. Mural festival, SoGnar proposed 14 artists on 6-8 walls. It also proposed a budget of $80,000 – a $15,000 increase from the two prior years. Council approved the increased 2022 budget because of an agreement with SoGnar that it would take on the entire management end execution of the festival from start to finish, with minimal involvement by City staff, in order to free up City staff for their additional responsibilities.

The 2022 we.Mural festival was held in August of 2022. Following the festival, on September 15, 2022, the Sand City Arts Committee met and decided to recommend to the Council that it continue the mural festival in 2023. The Arts Committee is also recommending that the City prepare and issue a request for proposals (RFP) as it desires to explore new opportunities for outside management of the festival. Dawn Peters, Arts Committee member has drafted an RFP attached to this staff report as Exhibit A.

Fiscal Impact:

The entire amount allocated to the mural festival in the 2022-23 budget ($55,000) has been spent. (The additional $25,000 was allocated in the 21-22 budget, but not transferred over to FY22-23). The approval of a mural festival for 2023 would require that the City fund the line item 6394-18 with any additional funds it approves when it amends its FY 22-23 budget.

Recommendation:

Staff recommends that the Council discuss the we. mural festival in 2023, and direct staff regarding the following:
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(1) Whether Council desires to continue the we. mural festival in 2023; (2) If so, whether Council desires to continue the festival with a similar size (6-8 walls) and a similar budget ($80,000) as it approved in 2022, or something less. (An exact budget would come back to it for approval at a future council meeting with a contract); and
(3) If Council desires to continue a mural festival, whether it desires to follow its Arts Committee’s recommendation to have staff prepare an RFP for management and curating services.
(4) If so, does Council direct staff to move forward with an RFP similar to that attached as Exhibit A.
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SAND CITY RFP We. Mural Festival
1 REQUEST FOR PROPOSALS:

Event Management and Production for we. Mural Festival IV, 2023, Sand City, California
Background: The City of Sand City (www.sandcity.org) and the Sand City Arts Committee (Instagram:
@sandcityart) sponsor special events throughout the year for our local community. In 2020, during the Covid-19 pandemic, the City hosted its first we. Mural Festival, an outdoor live art exhibit located throughout the West End of our little hamlet by the Pacific Ocean. The festival highlights collaborative artist murals (i.e., “we”) in partnership with local businesses and building owners. We are seeking proposals for the next festival to be hosted in the Fall of 2023.

Intent: SAND CITY is undergoing this RFP process to assess the quality and experience of event management and production companies, with the goal of selecting a preferred consultant to produce we. Mural Festival IV, 2023. Each responding team or firm is asked to submit a proposal for a one-year contract with an option for renewal. Sand City’s goals for this festival are to bring together national and/or international artists to collaborate with local artists from within the Monterey Peninsula and Monterey and/or Santa Cruz Counties. The targeted audience is our local community of all ages. There’s a desire to incorporate ideas for revenue streams during the festival that could partially defray expenses.
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SAND CITY RFP We. Mural Festival
2 The City has historically contributed up to $80,000 from its general fund towards the festival. The majority (greater than 80%) of potential funds generated during we. Mural Festival IV are put back into designated SAND CITY activities targeted to support local art events whenever possible, including utilizing the Sand City Art Park. Further, the City desire is to maximize publicity for the festival in the media including social media.

Scope of Work: Please review Exhibit A, we. Mural Festival Art Map to understand the layout and scope of previous murals. The City is open to new innovative ideas for the execution of the festival combined with a proven track record of creating and managing an Art Festival.

The City seeks a team/firm/individual to provide the following mural festival curation services:
• Create all promotional materials
• Coordinate and work collaboratively with the Sand City Art Committee, City Staff, City Police Department and the local community as appropriate for planning, media, and festival execution • Prepare a draft budget and schedule for festival to be approved by the City Manager • Participate in Sand City Art Committee meetings to obtain guidance and update the Committee • Locating and assisting the Art Committee select artists based on their skill, execution, capability, style, and diversity, including from local talent
• Locating and selecting sites for murals in Sand City
• Arranging all travel for the artists
• Pairing artists with property owners and facilitating the building owner agreements • Ensuring the artists’ and property owners’ contracts are executed prior to the festival commencing
• Coordinating all budget related matters with City Staff • Organizing the purchasing of and managing all festival supplies and equipment • Managing the actual event and ensure everything runs smoothly • Providing all prototype artist renderings for approval cycles • Providing promotional materials, coordinating marketing and branding • Locating, organizing and coordinating volunteers
• Providing updates as requested by City staff, Art committee, and City Manager • Ensuring that any deadlines are met as determined by the City Manager and/or Art Committee • Ensuring that all walls are prepared and any “paintovers” (removal) of previous murals are completed prior to the start of the festival
• Develop ideas, including other forms of art (e.g. live music, performance, and mixed media) as approved by the City
As the curator, you will be expected to sign the West End (WE) Mural Festival Artist Procurement and Curation Service Agreement which specifically provides the details of the items listed above: Scope of Services, Consultant Fee Schedule, Insurance Requirements, and Agreement for Public Art.

Selection Process and Criteria:

This RFP is for a one-year contract to produce the 2023 Sand City we. Mural Festival IV. If the City finds the business arrangement mutually beneficial, contracts may be renewable annually by approval of the City Council.
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SAND CITY RFP We. Mural Festival
3 Proposals will be evaluated based upon (in no particular order):
• The firm’s/team’s connections with experienced muralists internationally, nationally and locally
• The firm’s/team’s experience producing and curating large art events • The firm’s/team’s understanding of mural art and what is required to create a mural • Innovative ideas to boost the festival, including ideas for other art forms and how best to incorporate local artists
• Innovative ideas for boosting revenue sources for the festival • Experience with obtaining permits to produce festivals and the handling of contracts • An evaluation of references who are familiar with your work in this field – please provide at least three.

In your response, please answer the following:

1. What is your experience attracting, evaluating, and booking artists for art festivals? Any specific experience booking mural artists?

2. What do you think your firm/team can achieve for the 2023 we. Mural Festival IV that compliments and expands upon previous mural festivals?

3. What is your experience attracting sponsorships for established events?

4. What do you feel is the proper mix for mural artists at the Sand City event? Local, US, International?

5. Do you have any existing relationships to mural artists? If so, with whom?

6. Are you a mural artist yourself? If so, please include images of your work.

7. What creative ideas can you lend to the Sand City Mural Festival that will improve the experience for guests and artists?

8. What is your experience producing and executing an art festival?

9. Who are your key staff/on-site managers and how experienced are they at producing public events?
Contact and Proposal Submission Information:

Sand City City Manager
Vibeke Norgaard
[email protected]
Email preferred
1 Pendergrass Way
Sand City, CA 93955
Please respond with your proposal no later than Monday, January 30, 2023 by 5:00pm EXHIBIT A: SAND CITY ART MURAL MAP
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124

AGENDA ITEM
10C.

Consideration of City RESOLUTION
Authorizing the City Manager to Execute a
Professional Service Agreement with
California Consulting at a cost not to
Exceed $20,000 to Perform Grant Related
Services
125
City of Sand City

STAFF REPORT
TO: Mayor and City Council
FROM: Vibeke Norgaard, City Manager,
DATE: December 12, 2022 (For December 20, 2022 Council Meeting) SUBJECT: Professional Services Agreement for Grant Writing Services _______________________________________________________________________ Background:

Sand City’s small staff has lacked the capability over the past many years to research, apply for and administer grants that might assist it to fund City projects. The City Manager has met with California Consulting LLC, a California-based full-service grant writing firm. As part of its services, California Consulting conducts grant research and identification, grant writing, grant administration/reporting and post award compliance as well as program evaluation. California Consulting’s 26 team members provide grant services for approximately 80 public agencies across California, including the cities of Sausalito, Baldwin Park, Albany, Patterson, Fairfield and Seaside. Its grant writers have written over 1300 grant applications that have resulted in funding.

If Council approves the agreement, California Consulting will consult with the City and identify its funding needs, then match potential federal and state grants to those needs. If authorized to do so by the City, it will then apply for relevant grants and will administer the grants on behalf of the City.

Staff proposes an agreement with California Consulting to secure grants on a per grant basis, plus reimbursement of out-of-pocket expenses. For example: if the grant amount request is between $50,001 - $100,000, the cost to the City would be $5,500. For grant request exceeding $250,000, the cost will be determined based on the complexity of grant preparation (see page 2 of proposal).

The term of the proposed agreement is until June 30, 2023 and would authorize a not to exceed amount of $20,000 for the remainder for the 22-23 fiscal year. California Consulting would bill against this amount with its hourly rate of $150.

California Consulting does also have another payment option: a flat rate fee of $3,850 per month. However, staff is recommending that the City initially test the waters with California Consulting with a per grant basis. The City can change to the flat rate fee for the following fiscal year if it desires to continue with California Consulting after the end of the 22-23 fiscal year.

CEQA:

The approval of a service agreement does not constitute a "project" as defined by the California Environmental Quality Act (CEQA) guidelines section 15378. 126
Fiscal Impact:

The Fiscal Year 2022-2023 budget would require an amendment to line item 5020-02 to add $20,000 for Grant Procurement Services.

Recommendation:

Staff recommends approval of the attached Resolution authorizing the City Manager to execute a professional services agreement with California Consulting, Inc. in an amount not to exceed $20,000 annually.
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CITY OF SAND CITY
RESOLUTION SC ____, 2022

RESOLUTION OF THE SAND CITY COUNCIL AUTHORIZING THE CITY MANAGER

TO EXECUTE A PROFESSIONAL SERVICE AGREEMENT WITH
CALIFORNIA CONSULTING AT A COST NOT TO EXCEED $20,000 TO

PERFORM GRANT RELATED SERVICES
WHEREAS, grant funding through state, federal and private sources provides additional revenue enhancement to cities; and
WHEREAS, California Consulting specializes in the identification and preparation of comprehensive grant applications, and further conducts post award administration; and WHEREAS, California Consulting serves over 80 clients statewide, is the largest grant writing firm in California and boasts a team of 30 individuals with proven expertise in expertise in representing public agencies and non-profit organizations.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Sand City hereby:
1) Authorizes the City Manager to enter into the professional service agreement with California Consulting in substantially the same form and as approved by the City Attorney as attached hereto as Attachment 1.
2) California Consulting shall maintain a City business license for the duration of the term of the Agreement.

PASSED AND ADOPTED by the City Council of Sand City this ___ day of December, 2022 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
____________________________
Mary Ann Carbone, Mayor
ATTEST:
__________________________
Connie Horca, City Clerk
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Short Form Professional Services Agreement between 11/30/22 City of Sand City and California Consulting, Inc. Page 1 of 9

SHORT FORM PROFESSIONAL SERVICES AGREEMENT BETWEEN

THE CITY OF SAND CITY AND
(Professional)
THIS AGREEMENT for consulting services is made by and between the City of Sand City, a California municipal corporation (“City”), and California Consulting, Inc., a California Corporation (“Professional”) as of _________________, 202_.

Section 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, Professional shall provide to City the services described in the Scope of Work attached as Exhibit A at the time and place and in the manner specified therein. In the event of a conflict or inconsistency between the terms of this Agreement and Exhibit A, the Agreement shall prevail.

Section 2. TERM. The term of this Agreement shall begin on the date first noted above and shall end on June 30, 2023. Professional shall complete the work described in Exhibit A prior to that date, unless the term of the Agreement is otherwise terminated or extended, as provided for in Section 10. The time provided to Professional to complete the services required by this Agreement shall not affect the City’s right to terminate the Agreement, as provided for in Section 11.

Section 3. STANDARD OF PERFORMANCE.

3.1 Standard of Performance. Professional shall perform all services and prepare all work products required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Professional is engaged in the geographical area in which Professional practices its profession.

3.2 Assignment of Personnel. Professional shall assign only competent personnel to perform services pursuant to this Agreement. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the reassignment of any such persons, Professional shall, immediately upon receiving notice from City of such desire of City, reassign such person or persons.

Section 4. COMPENSATION. City hereby agrees to pay Professional a sum not to exceed twentythousand dollars ($20,000), notwithstanding any contrary indications that may be contained in Professional’s proposal, for services to be performed and reimbursable costs incurred under this Agreement. In the event of a conflict between this Agreement and Professional’s proposal, attached as Exhibit B, regarding the amount of compensation, the Agreement shall prevail.

Professional and City acknowledge and agree that compensation paid by City to Professional under this Agreement is based upon Professional’s costs of providing the services required hereunder, including salaries and benefits of employees and subcontractors of Professional. Consequently, the parties further agree that compensation hereunder is intended to include the costs of contributions to any pensions and/or annuities to which Professional and its employees, agents, and subcontractors may be eligible. City therefore has no responsibility for such contributions beyond compensation required under this Agreement. 129

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4.1 Invoices. Professional shall submit invoices, not more often than once a month during the term of this Agreement, based on the cost for services performed and reimbursable costs incurred prior to the invoice date, which describe the work performed by Professional. City shall make monthly payments, based on invoices received, for services satisfactorily performed, and for authorized reimbursable costs incurred. City shall have thirty (30) days from the receipt of an invoice that complies with all of the requirements above to pay Professional.

4.4 Reimbursable Expenses. Reimbursable expenses, if any, shall not exceed two thousand dollars ($2,000). Expenses beyond this amount are not chargeable to City. Reimbursable expenses are included in the total amount of compensation provided under this Agreement that shall not be exceeded.

4.5 Payment upon Termination. In the event that the City or Professional terminates this Agreement pursuant to Section 10, the City shall compensate the Professional for all outstanding costs and reimbursable expenses incurred for work satisfactorily completed as of the date of written notice of termination. Professional shall maintain adequate logs and timesheets in order to verify costs incurred to that date.

4.6 Authorization to Perform Services. The Professional is not authorized to perform any services or incur any costs whatsoever under the terms of this Agreement until receipt of authorization from the Contract Administrator.

Section 5. FACILITIES AND EQUIPMENT. Except as set forth herein, Professional shall, at its sole cost and expense, provide all facilities and equipment that may be necessary to perform the services required by this Agreement.

Section 6. INSURANCE REQUIREMENTS. Professional shall comply with the insurance requirements contained in Exhibit C and shall procure, at its own cost and expense all insurance coverages listed in Exhibit C before beginning any work under this Agreement.

Section 7. INDEMNIFICATION.

7.1 General Requirement. Professional shall indemnify, defend with counsel selected by the City, and hold harmless the City and its officials, officers, employees, agents, and volunteers from and against any and all losses, liability, claims, suits, actions, damages, and causes of action arising out of any personal injury, bodily injury, loss of life, or damage to property, or any violation of any federal, state, or municipal law or ordinance, to the extent caused, in whole or in part, by the willful misconduct or negligent acts or omissions of Professional or its employees, subcontractors, or agents, by acts for which they could be held strictly liable, or by the quality or character of their work. The foregoing obligation of Professional shall not apply when (1) the injury, loss of life, damage to property, or violation of law arises wholly from the negligence or willful misconduct of the City or its officers, employees, agents, or volunteers and (2) the actions of Professional or its employees, subcontractor, or agents have contributed in no part to the injury, loss of life, damage to property, or violation of law. It is understood that the duty of Professional to 130

Short Form Professional Services Agreement between 11/30/22 City of Sand City and California Consulting, Inc. Page 3 of 9 indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code. Acceptance by City of insurance certificates and endorsements required under this Agreement does not relieve Professional from liability under this indemnification and hold harmless clause. This indemnification and hold harmless clause shall apply to any damages or claims for damages whether or not such insurance policies shall have been determined to apply. By execution of this Agreement, Professional acknowledges and agrees to the provisions of this Section and that it is a material element of consideration.

7.2 PERS Indemnification. In the event that Professional or any employee, agent, or subcontractor of Professional providing services under this Agreement is determined by a court of competent jurisdiction or the California Public Employees Retirement System (“PERS”) to be eligible for enrollment in PERS as an employee of City, Professional shall indemnify, defend, and hold harmless City for the payment of any and all employee and/or employer contributions for PERS benefits on behalf of Professional or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City, and any attorneys’ fees and costs incurred by the City to enforce this Section.

7.3 Design Professional. Notwithstanding Section 8.1 and 8.2, to the extent that the services under this Agreement include design professional services subject to California Civil Code Section 2782.8, as may be amended from time to time, Professional’s duty to indemnify shall only be to the maximum extent permitted by California Civil Code Section 2782.8.

Section 8. STATUS OF PROFESSIONAL.

8.1 Independent Contractor. At all times during the term of this Agreement, Professional shall be an independent contractor as defined in Labor Code Section 3353, and shall not be an employee of the City. Nothing contained in this Agreement shall be construed to be inconsistent with the foregoing relationship or status. City shall have the right to control Professional only insofar as the results of Professional's services rendered pursuant to this Agreement; however, otherwise City shall not have the right to control the means and methods by which Professional accomplishes services rendered pursuant to this Agreement. Professional shall have no power or authority by this Agreement to bind the City in any respect. All employees and agents hired or retained by Professional are employees and agents of Professional and not of the City. The City shall not be obligated in any way to pay any wage claims or other claims made against Professional by any such employees or agents, or any other person resulting from performance of this Agreement.

Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Professional and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any and all claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contributions 131

Short Form Professional Services Agreement between 11/30/22 City of Sand City and California Consulting, Inc. Page 4 of 9 and/or employee contributions for PERS benefits. Professional shall not allow any employee, agent or subcontractor to become eligible for a claim for PERS benefits.

8.2 Professional Not an Agent. Except as City may specify in writing, Professional shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Professional shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever.

Section 9. LEGAL REQUIREMENTS.

9.1 Governing Law. The laws of the State of California shall govern this Agreement.

9.2 Compliance with Applicable Laws. Professional and any subcontractors shall comply with all laws and regulations applicable to the performance of the work hereunder. Professional’s failure to comply with any law(s) or regulation(s) applicable to the performance of the work hereunder shall constitute a breach of contract.

9.3 Other Governmental Regulations. To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, Professional and any subcontractors shall comply with all applicable rules and regulations to which City is bound by the terms of such fiscal assistance program.

9.4 Licenses and Permits. Professional represents and warrants to City that Professional and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective professions. Professional represents and warrants to City that Professional and its employees, agents, any subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions. In addition to the foregoing, Professional and any subcontractors shall obtain and maintain a valid Business License from City during the term of this Agreement.

9.5 Nondiscrimination and Equal Opportunity. Professional shall not discriminate, on the basis of a person’s race, religion, color, national origin, age, physical or mental handicap or disability, medical condition, marital status, sex, or sexual orientation, against any employee, applicant for employment, subcontractor, bidder for a subcontract, or participant in, recipient of, or applicant for any services or programs provided by Professional under this Agreement. Professional shall comply with all applicable federal, state, and local laws, policies, rules, and requirements related to equal opportunity and nondiscrimination in employment, contracting, and the provision of any services that are the subject of this Agreement, including but not limited to the satisfaction of any positive obligations required of Professional thereby. Professional shall include the provisions of this Subsection in any subcontract approved by the Contract Administrator or this Agreement.

Section 10. TERMINATION AND MODIFICATION.
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10.1 Termination. City may cancel this Agreement at any time and without cause upon written notification to Professional. Professional may cancel this Agreement upon thirty (30) days’ written notice to City and shall include in such notice the reasons for cancellation. In the event of termination, Professional shall be entitled to compensation for services performed to the effective date of termination; City, however, may condition payment of such compensation upon Professional delivering to City any or all documents, photographs, computer software, video and audio tapes, and other materials provided to Professional or prepared by or for Professional or the City in connection with this Agreement.

10.2. Extension. City may, in its sole and exclusive discretion, extend the end date of this Agreement beyond that provided for in Section 2. Any such extension shall require a written amendment to this Agreement, as provided for herein. Professional understands and agrees that, if City grants such an extension, City shall have no obligation to provide Professional with compensation beyond the maximum amount provided for in this Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no obligation to reimburse Professional for any otherwise reimbursable expenses incurred during the extension period.

10.3 Amendments. The Parties may amend this Agreement only by a writing signed by all the Parties.

10.4 Assignment and Subcontracting. City and Professional recognize and agree that this Agreement contemplates personal performance by Professional and is based upon a determination of Professional’s unique personal competence, experience, and specialized personal knowledge. Professional may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. Professional shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors noted in the proposal, without prior written approval of the Contract Administrator.

10.5 Survival. All obligations arising prior to the termination of this Agreement and all provisions of this Agreement allocating liability between City and Professional shall survive the termination of this Agreement.

10.6 Options upon Breach by Professional. If Professional materially breaches any of the terms of this Agreement, City’s remedies shall include, but not be limited to, the following:

10.6.1 Immediately terminate the Agreement;

10.6.2 Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Professional pursuant to this Agreement;

10.6.3 Retain a different Professional to complete the work described in Exhibit A not finished by Professional; or
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10.6.4 Charge Professional the difference between the cost to complete the work described in Exhibit A that is unfinished at the time of breach and the amount that City would have paid Professional pursuant to Section 4 if Professional had completed the work.

Section 11. KEEPING AND STATUS OF RECORDS.

11.1 Records Created as Part of Professional’s Performance. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that Professional prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the City. Professional hereby agrees to deliver those documents to the City upon termination of the Agreement. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for the City and are not necessarily suitable for any future or other use. City and Professional agree that, until final approval by City, all data, plans, specifications, reports and other documents are confidential and will not be released to third parties without prior written consent of both parties.

11.2 Professional’s Books and Records. Professional shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services or expenditures and disbursements charged to the City under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of final payment to the Professional pursuant to this Agreement.

11.3 Inspection and Audit of Records. Any records or documents that Section 11.2 of this Agreement requires Professional to maintain shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of the City.

Section 12 MISCELLANEOUS PROVISIONS.

12.1 Attorneys’ Fees. If a party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees in addition to any other relief to which that party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose.

12.2 Venue. In the event that either party brings any action against the other under this Agreement, the Parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of Sacramento or in the United States District Court for the Eastern District of California.
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12.3 Severability. If a court of competent jurisdiction finds or rules that any provision of this Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so adjudged shall remain in full force and effect. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement.

12.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement.

12.5 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the Parties.

12.6 Conflict of Interest. Professional may serve other clients, but none whose activities within the corporate limits of City or whose business, regardless of location, would place Professional in a “conflict of interest,” as that term is defined in the Political Reform Act, codified at California Government Code Section 81000 et seq.

Professional shall not employ any City official in the work performed pursuant to this Agreement. No officer or employee of City shall have any financial interest in this Agreement that would violate California Government Code Sections 1090 et seq.

Professional hereby warrants that it is not now, nor has it been in the previous twelve (12) months, an employee, agent, appointee, or official of the City. If Professional was an employee, agent, appointee, or official of the City in the previous twelve months, Professional warrants that it did not participate in any manner in the forming of this Agreement. Professional understands that, if this Agreement is made in violation of Government Code §1090 et.seq., the entire Agreement is void and Professional will not be entitled to any compensation for services performed pursuant to this Agreement, including reimbursement of expenses, and Professional will be required to reimburse the City for any sums paid to the Professional. Professional understands that, in addition to the foregoing, it may be subject to criminal prosecution for a violation of Government Code §1090 and, if applicable, will be disqualified from holding public office in the State of California.

12.7 Solicitation. Professional agrees not to solicit business at any meeting, focus group, or interview related to this Agreement, either orally or through any written materials.

12.8 Contract Administration. This Agreement shall be administered by the City Manager ("Contract Administrator"). All correspondence shall be directed to or through the Contract Administrator or his or her designee.

12.9 Notices. Any written notice to Professional shall be sent to:

Att. Mr. Samuelian
California Consulting, Inc.
214 Main Street, Suite 102
El Segundo, CA. 90245
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Short Form Professional Services Agreement between 11/30/22 City of Sand City and California Consulting, Inc. Page 8 of 9 Any written notice to City shall be sent to:

Att. City Manager; 1 Pendergrass Way, Sand City, CA 93955

12.10 Professional Seal. Where applicable in the determination of the contract administrator or when required by law, the first page of a technical report, first page of design specifications, and each page of construction drawings shall be stamped/sealed and signed by the licensed professional responsible for the report/design preparation.

12.11 Integration. This Agreement, including the scope of work attached hereto and incorporated herein as Exhibit A and the insurance requirements attached hereto and incorporated herein as Exhibit B represents the entire and integrated agreement between City and Professional and supersedes all prior negotiations, representations, or agreements, either written or oral.

12.12 IRS Form W-9. Professional shall complete and submit Internal Revenue Service Form W-9 to the City before execution of this Agreement. The City’s Finance Director shall have authority to waive this requirement.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first set forth above, which date shall be considered by the Parties to be the effective date of this Agreement.

CITY OF SAND CITY PROFESSIONAL
____________________________ ______________________________ Vibeke Norgaard, City Manager Steve Samuelian, CEO
Date: ____________________ Date: ____________________
Attest:
____________________________
Connie Horca, City Clerk
Date: ____________________
Approved as to Form:
____________________________
Adam Lindgren, City Attorney
Date: ____________________
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Short Form Professional Services Agreement between 11/30/22 City of Sand City and California Consulting, Inc. Page 9 of 9 Last Revised November 30, 2022
137

Short Form Consulting Services Agreement between [11/30/22] City of Sand City and California Consulting, Inc_--Exhibit A Page 1 of 1

EXHIBIT A

SCOPE OF SERVICES
.
138
139
140
141

EXHIBIT B
Insurance Requirements
Before beginning any work under this Agreement, Professional, at its own cost and expense, shall procure "occurrence coverage" insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the Professional and its agents, representatives, employees, and subcontractors. Professional shall provide proof satisfactory to City of such insurance that meets the requirements of this section and under forms of insurance satisfactory in all respects to the City. Professional shall maintain the insurance policies required by this section throughout the term of this Agreement. The cost of such insurance shall be included in the Professional's bid.

Professional shall not allow any subcontractor to commence work on any subcontract until Professional has obtained all insurance required herein for the subcontractor(s) and provided evidence thereof to City.

Verification of the required insurance shall be submitted and made part of this Agreement prior to execution. Professional shall maintain all required insurance listed herein for the duration of this Agreement.

1. Workers’ Compensation. Professional shall, at its sole cost and expense, maintain Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance for any and all persons employed directly or indirectly by Professional. The Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance shall be provided with limits of not less than ONE MILLION DOLLARS ($1,000,000.00) per accident. In the alternative, Professional may rely on a self-insurance program to meet those requirements, but only if the program of self-insurance complies fully with the provisions of the California Labor Code. Determination of whether a self-insurance program meets the standards of the Labor Code shall be solely in the discretion of the Contract Administrator. The insurer, if insurance is provided, or the Professional, if a program of self-insurance is provided, shall waive all rights of subrogation against the City and its officers, officials, employees, and volunteers for loss arising from work performed under this Agreement.

An endorsement shall state that coverage shall not be canceled except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. Professional shall notify City within fourteen (14) days of notification from Professional’s insurer if such coverage is suspended, voided or reduced in coverage or in limits.

The requirement to maintain Statutory Worker’s Compensation and Employer’s Liability Insurance may be waived by the City upon written verification that Professional does not have any employees.

2. Commercial General and Automobile Liability Insurance.

2.1 General requirements. Professional, at its own cost and expense, shall maintain commercial general liability insurance for the term of this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000.00) and automobile liability insurance for the term of this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000.00). The commercial general liability and automobile 142

liability insurance shall be per occurrence, combined single limit coverage for risks associated with the work contemplated by this Agreement. If a commercial general liability insurance or an automobile liability form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from activities contemplated under this Agreement, including the use of owned and nonowned automobiles.

2.2 Minimum scope of coverage. Commercial general liability coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001 (most recent edition) covering comprehensive General Liability on an “occurrence” basis. Automobile coverage shall be at least as broad as Insurance Services Office Automobile Liability form CA 0001 (most recent edition), Code 1 (any auto). No endorsement shall be attached limiting the coverage.

2.3 Additional requirements. Each of the following shall be included in the insurance coverage or added as an endorsement to the policy:
a. City and its officers, employees, agents, and volunteers shall be covered as additional insureds with respect to each of the following: liability arising out of activities performed by or on behalf of Professional, including the insured’s general supervision of Professional; products and completed operations of Professional; premises owned, occupied, or used by Professional; and automobiles owned, leased, or used by the Professional. The coverage shall contain no special limitations on the scope of protection afforded to City or its officers, employees, agents, or volunteers.
b. The insurance shall cover on an occurrence or an accident basis, and not on a claims-made basis.
c. An endorsement must state that coverage is primary insurance with respect to the City and its officers, officials, employees and volunteers, and that no insurance or self-insurance maintained by the City shall be called upon to contribute to a loss under the coverage. d. Any failure of Professional to comply with reporting provisions of the policy shall not affect coverage provided to City and its officers, employees, agents, and volunteers.
e. An endorsement shall state that coverage shall not be canceled except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. Professional shall notify City within 143

fourteen (14) days of notification from Professional’s insurer if such coverage is suspended, voided or reduced in coverage or in limits.

3. Professional Liability Insurance. Professional, at its own cost and expense, shall maintain for the period covered by this Agreement professional liability insurance for licensed professionals performing work pursuant to this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000) covering the licensed professionals’ errors and omissions.

3.1 Any deductible or self-insured retention shall not exceed $150,000 per claim.

3.2 An endorsement shall state that coverage shall not be suspended, voided, canceled by either party, or reduced in coverage or in limits, except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City.

3.3 The following provisions shall apply if the professional liability coverages are written on a claims-made form:
a. The retroactive date of the policy must be shown and must be before the date of the Agreement.
b. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the Agreement or the work, so long as commercially available at reasonable rates. c. If coverage is canceled or not renewed and it is not replaced with another claims-made policy form with a retroactive date that precedes the date of this Agreement, Professional must provide extended reporting coverage for a minimum of five (5) years after completion of the Agreement or the work. The City shall have the right to exercise, at the Professional’s sole cost and expense, any extended reporting provisions of the policy, if the Professional cancels or does not renew the coverage.
d. A copy of the claim reporting requirements must be submitted to the City prior to the commencement of any work under this Agreement.

4. All Policies Requirements.

4.1 Acceptability of insurers. All insurance required by this section is to be placed with insurers with a Bests' rating of no less than A:VII.

4.2 Verification of coverage. Prior to beginning any work under this Agreement, Professional shall furnish City with certificates of insurance and with original endorsements effecting coverage required herein. The certificates and endorsements for each insurance policy are to be signed by a person authorized 144

by that insurer to bind coverage on its behalf. The City reserves the right to require complete, certified copies of all required insurance policies, at any time.

4.3 Subcontractors. Professional shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.

4.4 Deductibles and Self-Insured Retentions. Professional shall disclose to and obtain the approval of City for the self-insured retentions and deductibles before beginning any of the services or work called for by any term of this Agreement.

During the period covered by this Agreement, only upon the prior express written authorization of Contract Administrator, Professional may increase such deductibles or self-insured retentions with respect to City, its officers, employees, agents, and volunteers. The Contract Administrator may condition approval of an increase in deductible or self-insured retention levels with a requirement that Professional procure a bond, guaranteeing payment of losses and related investigations, claim administration, and defense expenses that is satisfactory in all respects to each of them.

4.5 Waiver of Subrogation. Professional hereby agrees to waive subrogation which any insurer or contractor may require from vendor by virtue of the payment of any loss. Consultant agrees to obtain any endorsements that may be necessary to effect this waiver of subrogation. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the entity for all work performed by the Professional, its employees, agents, and subcontractors.

4.6 Notice of Reduction in Coverage. In the event that any coverage required by this section is reduced, limited, or materially affected in any other manner, Professional shall provide written notice to City at Professional’s earliest possible opportunity and in no case later than five (5) days after Professional is notified of the change in coverage.

5. Remedies. In addition to any other remedies City may have if Professional fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Professional’s breach:
 Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under the Agreement;
 Order Professional to stop work under this Agreement or withhold any payment that becomes due to Professional hereunder, or both stop work and withhold any payment, until Professional demonstrates compliance with the requirements hereof; and/or 145

 Terminate this Agreement.
146

AGENDA ITEM
10D.

Consideration and Approval of City
RESOLUTIONS regarding Implementation
of Local Transactions and Use Tax: 1)
Adoption of City RESOLUTION Authorizing
the City Manager to Execute Agreements
with the California Department of Tax and
Fee Administration for Implementation
of a Local Transactions and Use Tax at a
Rate of One and One-Half Percent 2)
Adoption of City RESOLUTION Authorizing
the Examination of Sales or Transaction
and Use Taxes Records
147
City of Sand City

STAFF MEMO
TO: Mayor and City Council
FROM: Vibeke Norgaard, City Manager
DATE: December 9, 2022
FOR: December 20, 2022 Council meeting
SUBJECT: Resolution Authorizing the City Manager to Execute Agreements with the California Department of Tax and Fee Administration for Implementation of a Local Transactions and Use Tax at a Rate of 1.5%
Discussion:

On July 5, 2022, the City Council unanimously adopted Ordinance No. 22-03 to replace the existing general-purpose transactions and use tax (TUT) at a rate of 1% with a rate of 1.5% subject to adoption by the electorate. On November 8, 2022, a majority of the registered voters in Sand City voted to approve the TUT Ordinance at a rate of 1.5%.

The California Department of Tax and Fee Administration (Department) administers and collects the transactions and use taxes for all applicable jurisdictions within the State of California and will be responsible for administering and collecting the TUT for the City. The Department requires that the City enter into a “Preparatory Agreement” and an “Administration Agreement” prior to implementation of the taxes. Furthermore, the Department requires that the City adopt a resolution for the Examination of Sales or TUT taxes records which allows authorized representatives of the City to examine confidential sales or transactions and use tax records of the Department related to TUT collected by the Department. The City had contracted Hinderliter de Lamas and Associates in 2015 to perform this work (Resolution SC 15-42)
CEQA
The approval of the agreements does not constitute a "project" as defined by the California Environmental Quality Act (CEQA) guidelines section 15378.

Fiscal Impact
There is no overall negative fiscal impact associated with the approval of the resolution. The TUT is projected to increase City revenues by approximately $1.4 million annually. The agreement, which is required by the Department, does require that the City pay the Department “preparatory costs” in an amount not to exceed $175,000. However, the amount charged is typically less for smaller cities and counties where few notification mailings are required, and is based on staff time, operating expenses, data processing, time, printing and postage associated with the notification to taxpayers within the jurisdictional region of the new tax. For example, the City of Angels Camp has paid $3,900 and the City of Los Angeles as high as $18,500. In 2015, the City paid $7,264.62 in preparatory fees for the implementation of the new tax for the passage of Measure J.

Recommendation:

Staff recommends that Council approve the attached resolutions reaffirming the Transactions and Use Tax Ordinance, authorizing the City Manager to execute each agreement on behalf 148
of the City, and authorizing the Examination of Sales or Transactions and Use Taxes Records.

Attachments:

Exhibit A: Resolution Authorizing the City Manager to Execute Agreements with the CA.

Department of Tax and Fee Administration
Exhibit B: Resolution Authorizing the Examination of Sales or Transactions and Use Taxes Records
149

CITY OF SAND CITY
RESOLUTION SC ____, 2022

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAND CITY AUTHORIZING THE

CITY MANAGER TO EXECUTE AGREEMENTS WITH THE CALIFORNIA DEPARTMENT OF

TAX AND FEE ADMINISTRATION FOR IMPLEMENTATION OF A LOCAL TRANSACTIONS AND USE TAX AT A RATE OF ONE AND ONE-HALF PERCENT (1.5%) WHEREAS, on July 5, 2022, the City Council unanimously resolved to approve Ordinance No. 22-03 to replace the Existing General-Purpose Transactions and Use Tax at a Rate of One Percent and Impose a General-Purpose Transactions and Use Tax at a Rate of One and OneHalf Percent, to be Administered by the California Department of Tax and Fee Administration, subject to adoption by the Electorate; and
WHEREAS, a majority of the Sand City electors voting at the November 8, 2022 General Municipal Election voted to approve and adopt the Transactions and Use Tax Ordinance at a rate of One and One-Half Percent (1.5 %); and
WHEREAS, the California Department of Tax and Fee Administration (Department) administers and collects the transactions and use taxes for all applicable jurisdictions within the state; and WHEREAS, the Department will be responsible to administer and collect the transactions and use tax for the City; and
WHEREAS, the Department requires that the City enter into a “Preparatory Agreement” and an “Administration Agreement” prior to implementation of said taxes, and WHEREAS, the Department requires that the City Council authorize the agreement.

NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Sand City that:

1. Approval of the Transactions and Use Tax Ordinance is reaffirmed.

2. The “Preparatory Agreement” attached as Exhibit A and the “Administrative Agreement” attached as Exhibit B are hereby approved and the City Manager is hereby authorized to execute each agreement on behalf of the City.

PASSED AND ADOPTED by the City Council of the City of Sand City on this, ___ day of December, 2022, by the following vote:

AYES: Council Members
NOES:

ABSENT:

ABSTAIN:

APPROVED:

ATTEST: _________________________
Mary Ann Carbone, Mayor
_________________________
Connie Horca, City Clerk
EXHIBIT A to Staff Report
150

EXHBIT A
1 AGREEMENT FOR PREPARATION TO ADMINISTER AND OPERATE

CITY'S TRANSACTIONS AND USE TAX ORDINANCE
In order to prepare to administer a transactions and use tax ordinance adopted in accordance with the provision of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, the City of Sand City, hereinafter called City, and the CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION, hereinafter called Department, do agree as follows:

1. The Department agrees to enter into work to prepare to administer and operate a transactions and use tax in conformity with Part 1.6 of Division 2 of the Revenue and Taxation Code which has been approved by a majority of the electors of the City and whose ordinance has been adopted by the City.

2. City agrees to pay to the Department at the times and in the amounts hereinafter specified all of the Department's costs for preparatory work necessary to administer the City's transactions and use tax ordinance. The Department's costs for preparatory work include costs of developing procedures, programming for data processing, developing and adopting appropriate regulations, designing and printing forms, developing instructions for the Department's staff and for taxpayers, and other appropriate and necessary preparatory costs to administer a transactions and use tax ordinance.

These costs shall include both direct and indirect costs as specified in Section 11256 of the Government Code.

3. Preparatory costs may be accounted for in a manner which conforms to the internal accounting and personnel records currently maintained by the Department. The billings for costs may be presented in summary form. Detailed records of preparatory costs will be retained for audit and verification by the City.

4. Any dispute as to the amount of preparatory costs incurred by the Department shall be referred to the State Director of Finance for resolution, and the Director's decision shall be final.

5. Preparatory costs incurred by the Department shall be billed by the Department periodically, with the final billing within a reasonable time after the operative date of the ordinance.

City shall pay to the Department the amount of such costs on or before the last day of the next succeeding month following the month when the billing is received.

6. The amount to be paid by City for the Department's preparatory costs shall not exceed one hundred seventy-five thousand dollars ($175,000) (Revenue and Taxation Code Section 7272.) 151

EXHBIT A
2 7. Communications and notices may be sent by first class United States mail.

Communications and notices to be sent to the Department shall be addressed to:

California Department of Tax and Fee Administration
P.O. Box 942879 MIC: 27
Sacramento, California 94279-0027
Attention: Administrator
Local Revenue Branch
Communications and notices to be sent to City shall be addressed to:

Vibeke Norgaard, City Manager______________________
1 Pendergrass Way________________________________
Sand City, CA. 93955_____________________________

8. The date of this agreement is the date on which it is approved by the Department of General Services. This agreement shall continue in effect until the preparatory work necessary to administer City's transactions and use tax ordinance has been completed and the Department has received all payments due from City under the terms of this agreement.

CITY OF SAND CITY CALIFORNIA DEPARTMENT OF TAX

AND FEE ADMINISTRATION
By By
(Signature) Administrator
Local Revenue Branch
(Typed Name)
(Title)
(Rev. 11/17)
152

EXHIBIT B

AGREEMENT FOR STATE ADMINISTRATION

OF CITY TRANSACTIONS AND USE TAXES
The City Council of the City of Sand City has adopted, and the voters of the City of Sand City (hereafter called “City” or “District”) have approved by the required majority vote, the City of Sand City Transactions and Use Tax Ordinance (hereafter called “Ordinance”), a copy of which is attached hereto. To carry out the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code and the Ordinance, the California State Department of Tax and Fee Administration, (hereinafter called the “Department”) and the City do agree as follows:

ARTICLE I

DEFINITIONS
Unless the context requires otherwise, wherever the following terms appear in the Agreement, they shall be interpreted to mean the following:

1. "District taxes" shall mean the transactions and use taxes, penalties, and interest imposed under an ordinance specifically authorized by Revenue and Taxation code Section 7285.9, and in compliance with Part 1.6, Division 2 of the Revenue and Taxation Code.

2. "City Ordinance" shall mean the City's Transactions and Use Tax Ordinance referred to above and attached hereto, Ordinance No.22-03, as amended from time to time, or as deemed to be amended from time to time pursuant to Revenue and Taxation Code Section 7262.2.

ARTICLE II

ADMINISTRATION AND COLLECTION

OF CITY TAXES
A. Administration. The Department and City agree that the Department shall perform exclusively all functions incident to the administration and operation of the City Ordinance. 153
(Rev. 10/17) 2
B. Other Applicable Laws. City agrees that all provisions of law applicable to the administration and operation of the Department Sales and Use Tax Law which are not inconsistent with Part 1.6 of Division 2 of the Revenue and Taxation Code shall be applicable to the administration and operation of the City Ordinance. City agrees that money collected pursuant to the City Ordinance may be deposited into the State Treasury to the credit of the Retail Sales Tax Fund and may be drawn from that Fund for any authorized purpose, including making refunds, compensating and reimbursing the Department pursuant to Article IV of this Agreement, and transmitting to City the amount to which City is entitled.

C. Transmittal of money.

1. For the period during which the tax is in effect, and except as otherwise provided herein, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City periodically as promptly as feasible, but not less often than twice in each calendar quarter.

2. For periods subsequent to the expiration date of the tax whether by City’s self-imposed limits or by final judgment of any court of the State of California holding that City’s ordinance is invalid or void, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City not less than once in each calendar quarter.

3. Transmittals may be made by mail or electronic funds transfer to an account of the City designated and authorized by the City. A statement shall be furnished at least quarterly indicating the amounts withheld pursuant to Article IV of this Agreement.

D. Rules. The Department shall prescribe and adopt such rules and regulations as in its judgment are necessary or desirable for the administration and operation of the City Ordinance and the distribution of the district taxes collected thereunder.

E. Preference. Unless the payor instructs otherwise, and except as otherwise provided in this Agreement, the Department shall give no preference in applying money received for state sales and use taxes, state-administered local sales and use taxes, and district transactions and use taxes owed by a taxpayer, but shall apply moneys collected to the satisfaction of the claims of the State, cities, counties, cities and counties, redevelopment agencies, other districts, and City as their interests appear. 154
(Rev. 10/17) 3
F. Security. The Department agrees that any security which it hereafter requires to be furnished by taxpayers under the State Sales and Use Tax Law will be upon such terms that it also will be available for the payment of the claims of City for district taxes owing to it as its interest appears.

The Department shall not be required to change the terms of any security now held by it, and City shall not participate in any security now held by the Department.

G. Records of the Department.

When requested by resolution of the legislative body of the City under section 7056 of the Revenue and Taxation Code, the Department agrees to permit authorized personnel of the City to examine the records of the Department, including the name, address, and account number of each seller holding a seller’s permit with a registered business location in the City, pertaining to the ascertainment of transactions and use taxes collected for the City. Information obtained by the City from examination of the Department's records shall be used by the City only for purposes related to the collection of transactions and use taxes by the Department pursuant to this Agreement.

H. Annexation. City agrees that the Department shall not be required to give effect to an annexation, for the purpose of collecting, allocating, and distributing District transactions and use taxes, earlier than the first day of the calendar quarter which commences not less than two months after notice to the Department. The notice shall include the name of the county or counties annexed to the extended City boundary. In the event the City shall annex an area, the boundaries of which are not coterminous with a county or counties, the notice shall include a description of the area annexed and two maps of the City showing the area annexed and the location address of the property nearest to the extended City boundary on each side of every street or road crossing the boundary.

ARTICLE III

ALLOCATION OF TAX
A. Allocation. In the administration of the Department's contracts with all districts that impose transactions and use taxes imposed under ordinances, which comply with Part 1.6 of Division 2 of the Revenue and Taxation Code:

1. Any payment not identified as being in payment of liability owing to a designated district or districts may be apportioned among the districts as their interest appear, or, in the discretion 155
(Rev. 10/17) 4
of the Department, to all districts with which the Department has contracted using ratios reflected by the distribution of district taxes collected from all taxpayers.

2. All district taxes collected as a result of determinations or billings made by the Department, and all amounts refunded or credited may be distributed or charged to the respective districts in the same ratio as the taxpayer's self-declared district taxes for the period for which the determination, billing, refund or credit applies.

B. Vehicles, Vessels, and Aircraft. For the purpose of allocating use tax with respect to vehicles, vessels, or aircraft, the address of the registered owner appearing on the application for registration or on the certificate of ownership may be used by the Department in determining the place of use.

ARTICLE IV

COMPENSATION
The City agrees to pay to the Department as the State's cost of administering the City Ordinance such amount as is provided for by law. Such amounts shall be deducted from the taxes collected by the Department for the City.

ARTICLE V

MISCELLANEOUS PROVISIONS
A. Communications. Communications and notices may be sent by first class United States mail to the addresses listed below, or to such other addresses as the parties may from time to time designate. A notification is complete when deposited in the mail. 156
(Rev. 10/17) 5
Communications and notices to be sent to the Department shall be addressed to:

California State Department of Tax and Fee Administration P.O. Box 942879
Sacramento, California 94279-0027
Attention: Administrator
Local Revenue Branch
Communications and notices to be sent to the City shall be addressed to:

Vibeke Norgaard, City Manager___________________________ 1 Pendergrass Way______________________________________ Sand City, CA. 93955____________________________________ Unless otherwise directed, transmittals of payment of District transactions and use taxes will be sent to the address above.

B. Term. The date of this Agreement is the date on which it is approved by the Department of General Services. The Agreement shall take effect on April 1, 2023. This Agreement shall continue until December 31 next following the expiration date of the City Ordinance, and shall thereafter be renewed automatically from year to year until the Department completes all work necessary to the administration of the City Ordinance and has received and disbursed all payments due under that Ordinance.

C. Notice of Repeal of Ordinance. City shall give the Department written notice of the repeal of the City Ordinance not less than 110 days prior to the operative date of the repeal. 157
(Rev. 10/17) 6

ARTICLE VI

ADMINISTRATION OF TAXES IF THE

ORDINANCE IS CHALLENGED AS BEING INVALID
A. Impoundment of funds.

1. When a legal action is begun challenging the validity of the imposition of the tax, the City shall deposit in an interest-bearing escrow account, any proceeds transmitted to it under Article II. C., until a court of competent jurisdiction renders a final and non-appealable judgment that the tax is valid.

2. If the tax is determined to be unconstitutional or otherwise invalid, the City shall transmit to the Department the moneys retained in escrow, including any accumulated interest, within ten days of the judgment of the trial court in the litigation awarding costs and fees becoming final and non-appealable.

B. Costs of administration. Should a final judgment be entered in any court of the State of California, holding that City's Ordinance is invalid or void, and requiring a rebate or refund to taxpayers of any taxes collected under the terms of this Agreement, the parties mutually agree that:

1. Department may retain all payments made by City to Department to prepare to administer the City Ordinance.

2. City will pay to Department and allow Department to retain Department's cost of administering the City Ordinance in the amounts set forth in Article IV of this Agreement.

3. City will pay to Department or to the State of California the amount of any taxes plus interest and penalties, if any, that Department or the State of California may be required to rebate or refund to taxpayers.

4. City will pay to Department its costs for rebating or refunding such taxes, interest, or penalties. Department's costs shall include its additional cost for developing procedures for processing 158
(Rev. 10/17) 7
the rebates or refunds, its costs of actually making these refunds, designing and printing forms, and developing instructions for Department's staff for use in making these rebates or refunds and any other costs incurred by Department which are reasonably appropriate or necessary to make those rebates or refunds. These costs shall include Department's direct and indirect costs as specified by Section 11256 of the Government Code.

5. Costs may be accounted for in a manner, which conforms to the internal accounting, and personnel records currently maintained by the Department. The billings for such costs may be presented in summary form. Detailed records will be retained for audit and verification by City.

6. Any dispute as to the amount of costs incurred by Department in refunding taxes shall be referred to the State Director of Finance for resolution and the Director's decision shall be final.

7. Costs incurred by Department in connection with such refunds shall be billed by Department on or before the 25th day of the second month following the month in which the judgment of a court of the State of California holding City's Ordinance invalid or void becomes final. Thereafter Department shall bill City on or before the 25th of each month for all costs incurred by Department for the preceding calendar month. City shall pay to Department the amount of such costs on or before the last day of the succeeding month and shall pay to Department the total amount of taxes, interest, and penalties refunded or paid to taxpayers, together with Department costs incurred in making those refunds.

CITY OF SAND CITY CALIFORNIA STATE DEPARTMENT OF

TAX AND FEE ADMINISTRATION
By By
(Signature) Administrator
Local Revenue Branch
Vibeke Norgaard
(Typed Name)
City Manager
(Title)
159
EXHIBIT B to Staff Report

CITY OF SAND CITY
RESOLUTION SC ___, 2022

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAND CITY AUTHORIZING

THE EXAMINATION OF SALES OR TRANSACTIONS AND USE TAXES RECORDS WHEREAS, pursuant to Ordinance Number 22-03, 2022 of the City of Sand City (City), and Revenue and Taxation Code section 7270, the City entered into a contract with the California Department of Tax and Fee Administration (Department) to perform all functions incident to the administration and collection of transactions and use taxes; and
WHEREAS, the City Council of the City of Sand City deems it desirable and necessary for authorized officers, employees and representatives of the City to examine confidential sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected by the Department for the City pursuant to that contract; and
WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of Department records, and Section 7056.5 of the California Revenue and Taxation Code establishes criminal penalties for the unlawful disclosure of information contained in, or derived from, the sales or transactions and use tax records of the Department.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAND CITY HEREBY RESOLVES AS FOLLOWS:

Section 1.

That the City Manager or other officer or employee of the City designated in writing by the City Manager to the California Department of Tax and Fee Administration is hereby appointed to represent the City with authority to examine sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected for the City by the Department pursuant to the contract between the City and the Department.

Section 2.

The information obtained by examination of Department records shall be used only for purposes related to the collection of City transactions and use taxes by the Department pursuant to that contract, and for purposes related to the following governmental functions of the City:
(a) Sales, Transactions and/or Use Tax Collection and or Administration (b) Revenue management, forecasting, and budgeting
(c) Business license tax administration
The information obtained by examination of Department records shall be used only for those governmental functions of the City listed above.

Section 3.

That Hinderliter de Llamas and Associates (HdL) is hereby designated to examine the sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected for the City by the Department. The person or entity designated by this section meets 160

EXHIBIT B
all of the following conditions, which are also included in the contract between the City and Hinderliter de Llamas and Associates:
a) has an existing contract with the City to examine those sales or transactions and use tax records;
b) is required by that contract to disclose information contained in, or derived from, those sales or transactions and use tax records only to the officer or employee authorized under Section 1 of this resolution to examine the information. c) is prohibited by that contract from performing consulting services for a retailer during the term of that contract;
d) is prohibited by that contract from retaining the information contained in, or derived from those sales or transactions and use tax records, after that contract has expired.

Section 4.

That this resolution supercedes all prior resolutions of the City of Sand City adopted pursuant to subdivision (b) of Revenue and Taxation Code section 7056.

BE IT FURTHER RESOLVED that the information obtained by examination of Department records shall be used only for purposes related to the collection of City transactions and use taxes by the Department pursuant to the contract between the City and the Department.

Introduced, approved and adopted this____day of December 2022.

ATTEST: (s) ___________________________
[Authorized Title]
I, _________________________, City Clerk of the City of Sand City, California, DO HEREBY CERTIFY that the foregoing resolution was duly introduced, approved and adopted by the City of Sand City at a regular meeting of the City Council held on the ________ day of December, 2022, by the following roll-call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

ATTEST: ________________________
Mary Ann Carbone, Mayor
_________________________
Connie Horca, City Clerk
161

AGENDA ITEM
10E.

Consideration of Cancelling Future Council
Meeting PURPOSE: It is proposed that the
City Council cancel the City Council
meeting scheduled for January 3, 2023 to
minimize conflict with the Christmas and
New Year’s Holiday closure of City Hall,
December 23, 2022 – January 2, 2023
162

AGENDA ITEM
10F.

Comments by Council Members on Items
of Interest to Sand City
163

AGENDA ITEM
10G.

Upcoming Meetings/Events
164