Agenda-Item-Number-8-City-Budget-FY-23-24-Public-Hearing — Sebastopol City Council, June 20, 2023 (part 3 of 3)

Category:

Project Parquet Street
Water Projects
Project No: 0819-21.01
Location:

Parquet Street Water Line Replacement (combined City project #1000-21.01) 2023-24 2024-25 2025-26 2027-28

PROJECT
TOTAL

EXPENDITURES
(Thousands of Dollars)
2026-27
FY22-23
Estimated
9001 - Construction/Inspection 50,000 550,000 550,000
9002 - Project Management 1,000 1,000 1,000
9003 - Professional Services 0
9004 - Property Purchases 0
9005 - Predesign/Design 0
EXPENDITURE TOTALS 51,000 551,000 551,000
FUNDING SOURCES
501-Water Capital Fund 51,000 551,000 551,000
FUNDING TOTALS 51,000 551,000 551,000
DESCRIPTION: Replace approximately 800 lineal feet of 6-inch water line on Parquet Street. This work includes slurry seal of Parquet Street that is affected by the water line replacement work. The work is being completed with the Parquet Street Sewer Line Replacement project #0615-21.01).

JUSTIFICATION: Replace leaking water lines and lead services.

GENERAL PLAN Goals and Policies: Community Services and Facilities CSF 1-5: Require development, infrastructure, and long-term planning projects to be consistent with all applicable City infrastructure plans, including the Water Master Plan, the Sanitary Sewer System Utility Master Plan, Stormwater Management Plan, and the Capital Improvement Program.
56 DRAFT Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 278 of 375 ends

Category:

Project Pleasant Hill Rd.

Water Projects
Project No: 0820-23.03
Location:

NEW: Pleasant Hill Rd. Water Line: Mitchell Ct. to Lynch Rd. 2023-24 2024-25 2025-26 2027-28

PROJECT
TOTAL

EXPENDITURES
(Thousands of Dollars)
2026-27
FY22-23
Estimated
9001 - Construction/Inspection 1,520,000 1,520,000
9002 - Project Management 27,000 2,000 29,000
9003 - Professional Services 0
9004 - Property Purchases 0
9005 - Predesign/Design 200,000 200,000
EXPENDITURE TOTALS 227,000 1,522,000 1,749,000
FUNDING SOURCES
001-Grant - Unsecured 1,522,000 1,522,000
501-Water Capital Fund 227,000 227,000
FUNDING TOTALS 227,000 1,522,000 1,749,000
DESCRIPTION: This project will create a looped water main intertie between the 16” main in Pleasant Hill Road at Mitchell Court and the 16” main in Lynch Road. This area of the City’s Zone 2 pressure zone is at risk of water service loss if the existing mains are interrupted by maintenance, failure or if water pressure is lost to Zone 2. A secondary loop connecting Pleasant Hill Road with Lynch Road would add the redundancy that is needed for maintenance operations or emergency repairs. Approximately 3,200 feet of new pipe is required to create the looped system. Most of the new water main would be located outside City limits and within County right-of-way. The County trench paving standard requires overlay of an entire lane in addition to the trench.

JUSTIFICATION: This project is also identified in the City's Local Hazard Mitigation Plan. Staff will be pursuing FEMA and other emergency grants for the construction of the project.

GENERAL PLAN Goals and Policies: Community Services and Facilities CSF 1-5: Require development, infrastructure, and illw-term planning projects to be consistent with all applicable City infrastructure plans, including the Water Master Plan, the Sanitary Sewer System Utility Master Plan, Stormwater Management Plan, and the Capital Improvement Program.
57 DRAFT Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 279 of 375 ends

Category:

Project Citywide
Water Projects
Project No: 0821-23.09
Location:

NEW: Water System Master Plan Update
2023-24 2024-25 2025-26 2027-28

PROJECT
TOTAL

EXPENDITURES
(Thousands of Dollars)
2026-27
FY22-23
Estimated
9001 - Construction/Inspection 0
9002 - Project Management 0
9003 - Professional Services 0
9004 - Property Purchases 0
9005 - Predesign/Design 120,000 120,000
EXPENDITURE TOTALS 120,000 120,000
FUNDING SOURCES
501-Water Capital Fund 120,000 120,000
FUNDING TOTALS 120,000 120,000
DESCRIPTION: This project will update the 2005 Water System Master Plan. The plan will include a hydraulic modeling and system capacity analysis for the entire city and identify a Capital Improvement Program to upgrade system deficiencies.

JUSTIFICATION: Master plans should be updated every 5 years and the water master plan was last conducted in 2005.

GENERAL PLAN Goals and Policies: Community Services and Facilities CSF 1-5: Require development, infrastructure, and long-term planning projects to be consistent with all applicable City infrastructure plans, including the Water Master Plan, the Sanitary Sewer System Utility Master Plan, Stormwater Management Plan and the Capital Improvement Program.
58 DRAFT Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 280 of 375 ends

PROJECT TITLE
0901- Ned Kahn: "Sebastopol Spire" 6,500 45,000 45,000
0903- City Sponsorship of New Art
Project
5,500 5,500
6,500 50,500 50,500
PROJECT FUNDING SOURCES
203 Art-In-Lieu Fund 6,500 50,500 50,500
6,500 50,500 50,500
City of Sebastopol FY 2023-24 to 2027-28
Category Summary Report
9 - Arts Projects
2023-24 2024-25 2025-26 2026-27 2027-28 TOTALS
FY22-23
Estimated
59 DRAFT Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 281 of 375 ends

Category:

Project Laguna Preserve
Arts Projects
Project No: 0901-
Location:

Ned Kahn: "Sebastopol Spire"
2023-24 2024-25 2025-26 2027-28

PROJECT
TOTAL

EXPENDITURES
(Thousands of Dollars)
2026-27
FY22-23
Estimated
9001 - Construction/Inspection 45,000 45,000
9002 - Project Management 0
9003 - Professional Services 6,500 0
9004 - Property Purchases 0
9005 - Predesign/Design 0
EXPENDITURE TOTALS 6,500 45,000 45,000
FUNDING SOURCES
203-Art-In-Lieu Fund 6,500 45,000 45,000
FUNDING TOTALS 6,500 45,000 45,000
DESCRIPTION: The Ned Kahn artwork "Sebastopol Spire" will be located along the Americorp Trail extension north of Sebastopol Avenue at the eastern entry to the City. In the prior year, Council authorized a budget of $52,000 for this artwork to include $45,000 for the Ned Kahn "Sebastopol Spire" art piece.

JUSTIFICATION: The funding for this project comes from the City's dedicated Art In-Lieu Fund, his public art piece will be paid for through dedicated Art In-Lieu Fund, and implements the City's Art in the community program.

GENERAL PLAN Goals and Policies: Community Design CD 4-6: Increase the presence of art in public spaces throughout the city.
60 DRAFT Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 282 of 375 ends

Category:

Project To be determined
Arts Projects
Project No: 0903-
Location:

City Sponsorship of New Art Project
2023-24 2024-25 2025-26 2027-28

PROJECT
TOTAL

EXPENDITURES
(Thousands of Dollars)
2026-27
FY22-23
Estimated
9001 - Construction/Inspection 0
9002 - Project Management 0
9003 - Professional Services 5,500 5,500
9004 - Property Purchases 0
9005 - Predesign/Design 0
EXPENDITURE TOTALS 5,500 5,500
FUNDING SOURCES
203-Art-In-Lieu Fund 5,500 5,500
FUNDING TOTALS 5,500 5,500
DESCRIPTION:

This project's Year 1 funding would provide funds to support the Public Art Committee's development of a new "call for artists" for a new public art piece, inclu023ding advertising/outreach, and honorariums for the finalists in the selection process. It is anticipated that the art project would be commissioned in Year 2. The cost is not yet known and therefore "TBD" is shown in FY 2023-24.

JUSTIFICATION: The funding for this project comes from the City's dedicated Art In-Lieu Fund and this public art piece will be paid for through dedicated Art In-Lieu Fund, and implements the City's Art in the community program.

GENERAL PLAN Goals and Policies: Community Design CD 4-6: Increase the presence of art in public spaces throughout the city.
61 DRAFT Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 283 of 375 ends

DRAFT

FINANCIAL FORECAST GRAPH
(2,000,000)
(1,500,000)
(1,000,000)
(500,000)
-
500,000
1,000,000
1,500,000
FY18-19
Actual
FY19-20
Actual
FY20-21
Actual
FY 22-23
Estimated
FY 23-24
Proposed
FY 24-25
Forecast
FY 25-26
Forecast
FY 26-27
Forecast
FY 27-28
Forecast
FY 28-29
Forecast
Annual Surplus/Deficit
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
FY18-19
Actual
FY19-20
Actual
FY 20-21
Actual
FY 22-23
Estimated
FY 23-24
Proposed
Budget
FY 24-25
Forecast
FY 25-26
Forecast
FY 26-27
Forecast
FY 27-28
Forecast
FY 28-29
Forecast
Annual Sources/(Uses)
Sources Uses
188 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 284 of 375 ends

DRAFT
Actual
FY 12-13
Actual
FY 13-14
Actual
FY 14-15
Actual
FY 15-16
Actual
FY 16-17
Actual
FY 17-18
Actual
FY 18-19
Actual
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Estimated
Actual
FY 22-23
Proposed
FY23-24
Forecast
FY 24-25
Forecast
FY 25-26
Forecast
FY 26-27
Forecast
FY 27-28
Forecast
FY 28-29
Revenues:

Property Taxes 2,530,270 $ 2,476,889 $ 2,467,376 $ 2,426,295 $ 2,570,590 $ 2,472,789 $ 2,714,491 $ 2,820,051 $ 2,850,529 $ 3,202,352 $ 3,223,200 $ 3,291,600 $ 3,357,432 $ 3,424,581 $ 3,493,073 $ 3,562,934 $ 3,634,193 $ Sales & Use Tax 1,349,116 1,264,929 1,327,560 1,532,637 1,795,019 1,986,765 2,134,322 1,913,952 2,231,942 2,401,757 2,478,900 $ 2,425,500 $ 2,474,010 $ 2,523,490 $ 2,573,960 $ 2,625,439 $ 2,677,948 $ Measure T - 1/4 cent 610,069 556,276 608,379 607,886 625,623 689,711 663,346 622,348 740,161 803,468 811,000 $ 789,060 $ 804,841 $ 820,938 $ 837,357 $ 854,104 $ 871,186 $ Measure Y - 1/2 cent 536,987 884,869 1,233,105 1,199,872 1,280,240 1,271,143 1,336,445 1,255,421 1,488,249 1,619,793 1,626,000 $ 1,586,000 $ 1,617,720 $ 1,650,074 $ 1,683,075 $ 1,716,737 $ 1,751,072 $ User Tax 334,739 354,011 459,202 616,276 695,633 687,331 702,595 669,647 697,572 733,928 800,500 $ 902,000 $ 915,530 $ 929,263 $ 943,202 $ 957,350 $ 971,710 $ Transient Occupancy Tax 329,577 359,892 482,164 483,738 514,225 529,810 631,742 518,175 402,255 504,292 450,000 $ 500,000 $ 505,000 $ 1,315,100 $ 1,341,402 $ 1,368,230 $ 1,395,595 $ Franchise Fees 308,977 315,587 320,082 371,567 359,466 323,496 358,299 336,738 363,167 405,507 399,500 $ 410,000 $ 416,150 $ 422,392 $ 428,728 $ 435,159 $ 441,686 $ Licenses & Permits 362,644 286,627 310,833 485,499 406,529 306,920 317,955 449,875 498,476 445,597 650,100 $ 442,500 $ 449,138 $ 455,875 $ 462,713 $ 469,654 $ 476,699 $ Fines & Forfeitures 124,942 117,357 158,380 122,234 88,747 71,005 55,502 48,171 30,439 27,452 34,500 $ 38,000 $ 38,380 $ 38,764 $ 39,152 $ 39,544 $ 39,939 $ Interest & Rents 89,775 44,675 62,104 69,259 84,984 89,643 228,552 237,347 8,174 (41,450) 975,150 $ 21,200 $ 21,412 $ 21,626 $ 21,842 $ 22,060 $ 22,281 $ Intergovernmental 30,770 22,296 69,805 33,140 30,809 150,177 42,272 1,729,540 503,343 312,477 110,500 $ 89,800 $ 90,698 $ 91,605 $ 92,521 $ 93,446 $ 94,380 $ Charges for Current Services 275,655 287,948 329,325 228,307 286,513 206,963 229,659 179,203 176,848 182,382 138,250 $ 131,100 $ 133,722 $ 136,396 $ 139,124 $ 141,906 $ 144,744 $ Community Center Fees 37,466 54,572 39,837 37,479 51,053 63,930 47,159 49,022 57,901 79,652 93,000 $ 105,500 $ 107,610 $ 109,762 $ 111,957 $ 114,196 $ 116,480 $ Miscellaneous/Other Income 520,289 270,265 305,454 380,863 294,213 291,540 482,414 506,251 263,103 645,358 698,225 $ 25,000 $ - - $ - $ - $ - $ Total Revenues 7,441,276 $ 7,296,193 $ 8,173,606 $ 8,595,052 $ 9,083,644 $ 9,141,223 $ 9,944,753 $ 11,335,741 $ 10,312,159 $ 11,322,565 $ 12,488,825 $ 10,757,260 $ 10,931,643 $ 11,939,866 $ 12,168,106 $ 12,400,759 $ 12,637,913 $ Transfers In And Other Sources
Proceeds From Debt
Transfers In: 32,591 26,186 16,127 8,695 670 16,182 74 4,493 107,373 116,000 102,500 102,000 100,000 100,000 100,000 100,000 100,000 Total Transfers In 32,591 $ 26,186 $ 16,127 $ 8,695 $ 670 $ 16,182 $ 74 $ 4,493 $ 107,373 $ 116,000 $ 102,500 $ 102,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ Total Resources Available:
(Revenues & Transfers In) 7,473,867 $ 7,322,379 $ 8,189,733 $ 8,603,747 $ 9,084,314 $ 9,157,405 $ 9,944,827 $ 11,340,234 $ 10,419,532 $ 11,438,565 $ 12,591,325 $ 10,859,260 $ 11,031,643 $ 12,039,866 $ 12,268,106 $ 12,500,759 $ 12,737,913 $ Growth %: 31.87% -2.03% 11.85% 5.06% 5.59% 0.80% 8.60% 14.03% -8.12% 9.78% 10.08% -13.76% -12.39% 9.14% 1.90% 1.90% 1.90% City of Sebastopol, CA
General Fund/Transaction & Use Tax Fund History and Forecast FY 2016-17 Through 2028-29
189 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 285 of 375 ends

City Council 107,319 224,582 183,488 177,174 206,294 206,493 214,054 226,256 213,157 323,554 466,134 164,710 410,579 430,442 451,298 473,196 496,190 City Manager 69,748 117,405 101,568 151,145 231,646 183,577 165,118 258,083 331,630 236,806 230,277 357,770 344,881 358,030 371,862 386,248 402,771 City Attorney 229,079 370,426 142,329 124,574 129,453 125,149 100,678 153,523 152,925 354,651 432,759 593,621 600,609 601,266 601,948 602,567 603,903 City Clerk 146,499 163,131 188,523 216,138 238,969 230,894 251,910 285,483 285,487 311,506 381,643 369,323 365,817 345,884 386,294 366,734 410,104 Administrative Services (Finance) 120,675 125,182 107,830 116,057 174,737 192,381 220,223 180,045 219,679 309,430 317,218 397,952 364,695 381,100 398,500 416,790 437,712 Planning 269,322 274,104 535,423 538,787 454,346 489,476 409,837 467,783 494,465 518,687 566,848 592,371 606,931 629,937 654,129 679,240 708,487 Building 154,581 158,756 169,503 170,766 184,699 175,196 194,445 239,296 206,486 188,060 182,793 185,494 190,681 198,412 206,490 214,790 224,583 Engineering / Storm Water - - - 101,783 149,917 167,924 240,628 193,153 255,086 324,245 329,016 288,104 230,955 242,060 253,769 266,121 279,154 Fire 574,657 545,700 690,609 673,687 772,636 981,004 883,463 965,223 1,102,503 1,077,526 1,222,818 1,592,302 1,253,066 1,295,199 1,308,865 1,353,553 1,404,948 Police 2,947,930 3,025,970 3,222,751 3,380,118 3,558,289 3,749,027 3,942,139 4,831,685 5,308,821 4,968,998 5,227,005 5,267,703 5,085,972 5,270,673 5,432,766 5,602,423 5,802,891 Public Works 432,326 993,406 890,204 745,669 1,061,902 957,534 987,874 1,336,565 1,159,490 1,179,759 1,285,552 1,286,209 1,413,434 1,432,826 1,454,394 1,471,770 1,497,905 Community Center 108,734 130,438 265,747 302,461 316,046 298,530 471,207 568,624 399,882 539,833 750,921 667,777 697,937 731,908 767,664 805,309 844,956 Non Departmental 55,843 32,199 116,726 215,225 221,260 197,867 335,170 241,064 247,537 207,170 254,159 236,980 266,867 280,210 294,221 308,932 324,379 Debt Service 298,544 298,544 285,247 267,047 197,626 204,672 204,671 204,670 464,313 142,646 261,802 265,903 265,500 230,500 230,500 133,000 133,000 Other Sources - Insurance 819,039
Total Department Expenditures 5,515,257 6,459,843 6,899,948 7,180,631 7,897,820 8,159,724 8,621,417 10,151,453 11,660,500 10,682,871 11,908,944 12,266,219 12,097,924 12,428,447 12,812,700 13,080,673 13,570,983 Transfers Out:

Others - Overage of AD & GT 51,531 49,215 67,394 4,205 - 4,305 - - - - - - - - Others - Streets Pavement Reserve 150,000 150,000 150,000 150,000 150,000 125,000 150,000 - - - - - - - - Others - Pension & Infrastructure - 550,000 - 1,466,000 100,000 100,000 150,000 150,000 - - - Others - Staffing Reserve 300,000
Others - SLESF - - - - 17,048 - 30,718 - - - - - - - -
Others - Capital Projects 49,325 - 688,774 98,247 386,427 112,000 152,000 83,500 - - - 83,500 Others -Gas Tax 33,772 32,000 - - - - - - - -
Others -PD Grant Funds 21,607 - - - - - - - - -
Total Transfers Out 201,531 199,215 217,394 154,205 167,048 784,009 212,718 2,154,774 98,247 386,427 212,000 552,000 233,500 150,000 - - 83,500 Total Resources Used:
(Departmental, Other Expenditures &
Transfers Out) 5,716,788 $ 6,659,058 $ 7,117,342 $ 7,334,836 $ 8,064,868 $ 8,943,733 $ 8,834,135 $ 12,306,227 $ 11,758,747 $ 11,069,298 $ 12,120,944 $ 12,818,219 $ 12,331,424 $ 12,578,447 $ 12,812,700 $ 13,080,673 $ 13,654,483 $ Net Results of Operations:
(Total Resources Available less Total
Resources Used) 1,757,079 $ 663,321 $ 1,072,391 $ 1,268,911 $ 1,019,446 $ 213,672 $ 1,110,692 $ (965,993) $ (1,339,215) $ 369,267 $ 470,381 $ (1,958,959) $ (1,299,781) $ (538,581) $ (544,594) $ (579,914) $ (916,570) $ Contribution/(Uses) of Reserves: 1,757,079 $ 663,321 $ 1,072,391 $ 1,268,911 $ 1,019,446 $ 213,672 $ 1,110,692 $ (965,993) $ (1,339,215) $ 369,267 $ 470,381 $ (1,958,959) $ (1,299,781) $ (538,581) $ (544,594) $ (579,914) $ (916,570) $ Total Annual Surplus/(Deficit):
(Net Results of Operations &
Contribution to Reserves) 1,757,079 $ 663,321 $ 1,072,391 $ 1,268,911 $ 1,019,446 $ 213,672 $ 1,110,692 $ (965,993) $ (1,339,215) $ 369,267 $ 470,381 $ (1,958,959) $ (1,299,781) $ (538,581) $ (544,594) $ (579,914) $ (916,570) $ Policy Reserve Level (15% to 20%) 1,083,649 $ 1,272,103 $ 1,423,468 $ 1,466,967 $ 1,612,974 $ 1,788,747 $ 1,766,827 $ 2,461,245 $ 1,763,812 $ 1,660,395 $ 1,818,142 $ 1,922,733 $ 1,849,714 $ 1,886,767 $ 1,921,905 $ 1,962,101 $ 2,048,172 $ Unassigned Reserves Balance 1,517,762 $ 2,133,031 $ 2,907,524 $ 4,095,624 $ 3,557,451 $ 3,882,742 $ 4,993,434 $ 4,027,441 $ 2,688,223 $ 3,057,488 $ 3,527,869 $ 1,568,910 $ 269,129 $ (269,452) $ (814,046) $ (1,393,960) $ (2,310,530) $ Actual Reserve Level 26.5% 32.0% 40.9% 55.8% 44.1% 43.4% 56.5% 32.7% 22.9% 27.6% 29.1% 12.2% 2.2% -2.1% -6.4% -10.7% -16.9% 190 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 286 of 375 ends

DRAFT
State of My Assets?
Control
Department
Year
Installed
Original
Cost
Effective
Life
Original
Planned
Replacement
Year
Milage / Hours
Backup
Reduction
(Redundancy)
Probability of
Failure Consequence of Failure BRE Rating
Renewal /
Replacement
Strategy
Cost of Renewal
/ Replacement
Option
Recommended
Renewal /
Replacement Year
Future Value of
Renewal /
Replacement
Cost
$ Years % Rel. to col. J Best=1 And Worst=10 =(1-K)*L*M Current Value Inflation Rate 1 2 3 4 5 Calculated Calculated Calculated Estimate 0.00% 0010 - 2017 Ford C-Max Hybrid Public Works 2017 $35,000 15 2032 43,665 50% -43,659 7 -152,807 Status Quo $47,606 2032 $47,606 0011 - 2019Ford F250 W/Scwlzi Utility Body Public Works 2019 $36,000 15 2034 14,518 50% -14,512 7 -50,792 Status Quo $40,322 2034 $40,322 0012 - 2016 Ford 350 4x4 Pickup Public Works 2016 $36,203 15 2031 42,250 50% -42,244 7 -147,854 Status Quo $53,591 2031 $53,591 0014 - 2014 Ford F-350 w/ lift Public Works 2014 $74,114 15 2029 21,118 50% -21,112 7 -73,892 Status Quo $109,731 2029 $109,731 0015 - 2014 Ford 250 w/Scelzi Utility Body Public Works 2014 $32,700 15 2029 36,297 50% -36,291 7 -127,019 Status Quo $42,500 2029 $42,500 0016 - 2022 Ford F150 Pickup Public Works 2022 $36,048 15 2037 1,270 50% -1,264 7 -4,424 Status Quo $24,000 2037 $24,000 0017 - 2014 Ford 250 w/Scelzi Utility Body Public Works 2014 $32,692 15 2029 42,211 50% -42,205 7 -147,718 Status Quo $44,400 2029 $44,400 0018 - 2017 Ford F250 w/Scelzi Utility Body Public Works 2017 $34,000 15 2032 19,065 50% -19,059 7 -66,707 Status Quo $39,400 2032 $39,400 0019 - 2014 Ford F350 w/Dump Body Public Works 2014 $37,499 15 2029 32,713 50% -32,707 7 -114,475 Status Quo $50,000 2029 $50,000 0020 - 2019 Ford F650 5 Yard Dump Public Works 2019 $77,000 20 2039 1,816 50% -1,810 7 -6,335 Status Quo $81,650 2039 $81,650 0021 - 2006 Chevrolet Pickup Public Works 2006 $14,000 15 2021 68,182 50% -68,176 7 -238,616 Status Quo $38,500 2021 $38,500 0022 - 2010 Ford F650 5 Yard Dump Public Works 2010 $74,184 20 2030 13,483 50% -13,477 7 -47,170 Status Quo $119,000 2030 $119,000 0023 - 2019 Ford F250 W/Scelzi Utility Body Public Works 2020 $36,000 15 2035 20,411 50% -20,405 7 -71,418 Status Quo $40,322 2035 $40,322 0024 - 2022 Chevrolet Colorado Pickup Public Works 2022 $28,363 15 2037 3,121 50% -3,115 7 -10,903 Status Quo $24,500 2037 $24,500 0025 - 2017 Ford F250 w/Scelzi Utility Body Public Works 2017 $34,000 15 2032 31,136 50% -31,130 7 -108,955 Status Quo $39,400 2032 $39,400 0027 - 2021 Ford F150 Pickup Public Works 2002 $31,169 15 2036 3,206 50% -3,200 7 -11,200 Status Quo $24,500 2036 $24,500 0028 - 2021 Ford F150 Pickup Public Works 2021 $29,694 15 2036 3,242 50% -3,236 7 -11,326 Status Quo $38,500 2036 $38,500 0030 - 2019 Ford Explorer Police 2019 $49,000 20 2025 9,600 -50% -9,594 6 -86,346 Status Quo 2025 0033 - 2005 Harley Davidson Motorcycle Police 2005 $20,000 20 2025 40,211 50% -40,205 7 -140,718 Status Quo $36,000 2025 $36,000 0034 - 2005 Harley Davidson Motorcycle Police 2005 $20,000 20 2025 45,766 50% -45,760 7 -160,160 Status Quo $36,000 2025 $36,000 0035 - 2019 Ford Escape Police 2019 $27,000 10 2027 8,511 -50% -8,505 6 -76,545 Status Quo 0037 - 2017 Ford Fusion Police 2017 $40,000 10 2027 21,173 50% -21,167 7 -74,085 Status Quo $55,000 2027 $55,000 0038 - 2018 Ford Fusion Police 2018 $40,000 10 2028 18,803 50% -18,797 7 -65,790 Status Quo $55,000 2028 $55,000 0041 - 2017 Ford Explorer Police 2017 $47,000 10 2027 51,803 50% -51,797 7 -181,290 Status Quo $53,400 2027 $53,400 0042 - 2015 Ford Explorer Interceptor Police 2015 $46,750 10 2025 51,342 50% -51,336 7 -179,676 Status Quo $50,400 2025 $50,400 0043 - 2017 Ford Explorer Police 2017 $47,000 10 2027 26,307 50% -26,301 7 -92,054 Status Quo $53,400 2027 $53,400 0044 - 2016 Ford Explorer Police 2016 $46,750 10 2026 63,918 50% -63,912 7 -223,692 Status Quo $51,500 2026 $51,500 0048 - 1998 Mighty Mover DUI Trailer Police 1998 $15,000 40 2038 N/A 50% N/A 7 N/A Status Quo $30,000 2038 $30,000 0049 - 2014 Ford Explorer Police 2014 $28,100 10 2024 69,345 50% -69,339 7 -242,687 Status Quo $50,500 2024 $50,500 0050 - 2014 Ford Explorer Police 2014 $28,100 10 2024 89,924 50% -89,918 7 -314,713 Status Quo $50,500 2024 $50,500 0052 - 2005 Ford Escape/Hybrid Police 2005 $27,100 14 2019 77,758 50% -77,752 7 -272,132 Status Quo $42,500 2019 $42,500 0060 - 1999 Honda ATV Public Works 1999 $5,000 20 2019 N/A 50% N/A 7 N/A Status Quo $7,500 2019 $7,500 0070 - 2001 Featherlite Trailer Public Works 2001 $2,500 20 2021 N/A 50% N/A 7 N/A Status Quo $4,500 2021 $4,500 0071 - 2009 Featherlite Trailer Public Works 2009 $3,343 20 2029 N/A 50% N/A 7 N/A Status Quo $4,500 2029 $4,500 0072 - 2016 IP Manufacturning Roll Off Trailer Public Works 2016 $2,500 20 2036 N/A 50% N/A 7 N/A Status Quo $3,000 2036 $3,000 0073 - 2009 Cart Away Water Trailer Public Works 2009 $5,000 20 2029 N/A 50% N/A 7 N/A Status Quo $6,500 2029 $6,500 0080 CAT XQ60BM Standby Generator Public Works 2020 $60,000 20 2040 18 hrs 50% N/A 7 N/A Status Quo $0 0083 - 1996 Airman Air Compressor Trailer Public Works 1996 $9,500 20 2016 815.9 Hrs. 50% N/A 7 N/A Status Quo $16,500 2016 $16,500 0087 - 2002 John Deere 310E Backhoe Public Works 2002 $39,900 20 2022 5368.3 Hrs. 50% N/A 7 N/A Status Quo $85,000 2022 $85,000 0088 - 2002 Case 570 XLT Loader/Grader Public Works 2002 $36,980 20 2022 861.9 Hrs. 50% N/A 7 N/A Status Quo $0 2022 $0 0089 - 2015 John Deere 310L Backhoe Public Works 2015 $93,477 20 2035 1469.7 Hrs. 50% N/A 7 N/A Status Quo $160,000 2035 $160,000 0095 - 2009 International Vactor Truck Model 2103 Public Works 2009 $167,761 15 2024 24,260 50% -24,254 7 -84,889 Status Quo $347,000 2024 $347,000 0097 - 2017 International Vactor Truck Model 2013 Public Works 2017 $287,000 15 2032 9,496 50% -9,490 7 -33,215 Status Quo $347,000 2032 $347,000 8300 - 2018 Ford Explorer Fire 2018 $30,000 15 2033 6,844 -6,838 $50,000 0B83 - 2015 Chevrolet Tahoe Fire 2015 $40,000 10 2025 18,384 50% -18,378 7 -64,323 Status Quo $69,605 2025 $69,605 8330 - 1994 International Emergency Response Fire 1994 $100,000 23 2017 26,863 50% -26,857 7 -94,000 Status Quo $350,000 2017 $350,000 8340 - 2008 Dodge Ram 2500 Pickup Fire 2008 $33,500 20 2028 53,340 50% -53,334 7 -186,669 Status Quo $60,000 2028 $60,000 8343 - 2014 Klamath 13` Rescue Boat Fire 2014 $3,800 10 2024 N/A 50% N/A 7 N/A Status Quo $10,000 2024 $10,000 8350 - 2003 Pierce Dash Fire Ladder Truck Fire 2003 $596,000 20 2023 17,890 50% -17,884 7 -62,594 Status Quo $1,500,000 2023 $1,500,000 8361 - 1996 International Fire Engine Type 3 Fire 1996 $12,000 25 2021 126,625 50% -126,619 7 -443,167 Status Quo $450,000 2021 $450,000 8380 - 2011 Pierce Velocity Fire Engine Fire 2011 $695,500 20 2031 27,951 50% -27,945 7 -97,808 Status Quo $950,000 2031 $950,000 8381 - 1990 Pierce Lance Fire Engine Fire 1990 $200,000 30 2020 41,304 50% -41,298 7 -144,543 Status Quo $950,000 2020 $950,000 Grand Total: $3,584,227 $6,793,227 $6,743,227
Extended Time
Surplus
Renewal / Replacement Strategy
Asset Register and Hierarchy
Levels

CITY VEHICLES LIST
Asset Inventory Which Are Most "Critical"?
191 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 287 of 375 ends

DRAFT

CITY OF SEBASTOPOL

FULL-TIME / PART-TIME EQUIVALENT BY FUNCTION

LAST FIVE FISCAL YEARS
Function 2020 2021 2022 2023 2024
General Government
City Council 6.00 6.00 6.00 6.00 6.00
Administrative 2.00 2.00 1.75 2.00 2.00
Administrative Services (Finance) 4.00 4.00 4.00 4.00 4.00 Public Safety
Police Protection 23.75 20.75 21.00 22.00 20.00
Police Protection - Reserves 11.00 3.00 3.00 3.00 2.00
Fire Protection 2.50 2.50 2.50 2.50 2.50
Fire Protection - Volunteers 33.00 32.00 32.00 32.00 31.00 Community Development / Services
Planning 3.00 3.00 3.00 3.00 3.00
Building Inspection 1.50 1.50 1.50 1.50 1.50
Engineering 1.75 1.75 2.00 2.00 2.25
Public Works 13.75 12.75 13.00 14.00 13.75
Total 102.25 89.25 89.75 92.00 88.00
As of June 30,
General Government,

12.00 , 14%
Public Safety - Police,

22.00 , 25%
Public Safety - Fire,

33.50 , 38%
Community
Development / Services,

20.50 , 23%

FULL TIME / PART TIME EQUIVALENT BY FUNCTION
FY 2023-24
192 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 288 of 375 ends

DRAFT
Allocated Staffing
FY 2022-23
Adjusted Add Delete Adjustment
FY 2023-24
Proposed
City Council
Council Members 5 5
Video Recorder 1 1
Total 6 0 0 0 6
City Manager|Assistant City Manager|City Clerk
City Manager 0.75 0.25 1
Assistant City Manager |City Clerk 1 1
Total 1.75 0 0 0.25 2
City Attorney
City Attorney 0.25 -0.25 0
Administrative Services (Finance)
Administrative Services Director 1 1
Accountant/Analyst (Conf) 1 1
Administrative Technician 1 1
Accountant 0 0
Junior Accountant 1 1
Total 4 0 0 0 4
Building Inspection
Building Official 1 1
Senior Administrative Assistant 1 0.5 0.5
Total 1.5 0 0 0 1.5
Planning
Planning Director 1 1
Associate Planner 1 1
Planning Technician 1 1
Total 3 0 0 0 3
Fire Services
Fire Chief 1 1
Fire Engineer 1 1
Senior Administrative Assistant 1 0.5 0.5
Volunteers 32 -2 31
Total 34.5 0 0 -2 33.5

FULL TIME (FTE) STAFFING SUMMARY
193 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 289 of 375 ends

DRAFT
Allocated Staffing
FY 2022-23
Adjusted Add Delete Adjustment
FY 2023-24
Proposed

FULL TIME (FTE) STAFFING SUMMARY
Police Services
Police Chief 1 1
Lieutenant 1 1
Captain 0 0
Sergeants 4 -1 3
Officers 9 -1 8
Records Dispatcher Supervisor 1 1
Dispatchers 5 5
Technician 1 1
Reseves 3 2
Total 25 0 0 -2 22
Public Works
Superintendent 1 1
Assistant Superintendent 1 1
Management Analyst 1 0.5 -0.25 0.25
Permit Technician 1 0.5 0.5
Water System Treatment Operator 1 1
Sanitary Sewer System Operator 1 1
Senior Maintenance Worker 1 1
Senior Parks & Facilities/Maintenance Worker III 1 1
Maintenance Worker II 2 2
Maintenance Worker I 2 2
Laborer 3 3
Total 14 0 0 -0.25 13.75
Engineering
Engineering Manager 1 1
Management Analyst 1 0.5 0.25 0.75
Permit Technician 1 0.5 0.5
Total 2 0 0 0.25 2.25
Grand Total 92 0 0 -4 88
1 Designates employee sharing between department
194 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 290 of 375 ends

DRAFT
********** Percentage of Overhead Allocated by Fund ********** General T&U Water Sewer
Department Fund Fund Fund Fund Total
City Council 74.0% 12.0% 14.0% 100.0%
City Manager 60.0% 20.0% 20.0% 100.0%
City Attorney 92.0% 5.0% 3.0% 100.0%
Assistant City Manager/City Clerk 85.0% 8.0% 7.0% 100.0% Finance 25.0% 38.0% 37.0% 100.0%
Building 74.0% 13.0% 13.0% 100.0%
Planning 92.0% 5.0% 3.0% 100.0%
Engineering 38.0% 34.0% 28.0% 100.0%
Fire Services 93.0% 7.0% 100.0%
Police Services 89.6% 10.4% 100.0%
Public Works
Corporation Yard 17.0% 48.0% 35.0% 100.0%
Government Building 50.0% 25.0% 25.0% 100.0%
Streets 100.0% 100.0%
Parking Lots 100.0% 100.0%
Parks & Landscaping 58.5% 41.5% 100.0%
Storm Water 100.0% 100.0%
Non Departmental 82.0% 9.0% 9.0% 100.0%

OVERHEAD ALLOCATION
195 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 291 of 375 ends

DRAFT
Sources: PERS Actuarial Report
-

20.00 40.00

60.00 80.00
100.00
120.00
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Actual
FY 22-23
Actual
FY 23-24
Proposed
5 YEARS - PERS RATE HISTORY

PERS - POLICE PERS - FIRE PERS - POLICE/FIRE PEPRA

3.5 12 12
0 10

1.5 5.75

8.26 -1
6 -2
0 2
4 6
8 10
12 14
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Actual
FY 22-23
Actual
FY 23-24
Proposed
5 Year - Medical Rate History

BLUE CROSS KAISER
196 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 292 of 375 ends

DRAFT
City of Sebastopol
Membership Listing
Agency Description
Controlling
Department
FY 17-18
Dues
Amount
FY 18-19
Dues
Amount
FY 19-20
Dues
Amount
FY 20-21
Dues
Amount
FY 21-22
Dues
Amount
FY 22-23
Dues
Amount
1 Local Agency Formation Commission (LAFCO) Council 5,468 5,690 6,927 6,291 5,995 6,448 2 Sister Cities International Council 150 155 155 155 155 310 3 League of California Cities Council 4,841 4,962 5,111 5,111 5,614 5,049 4 Association of Bay Area Government (ABAG) Council 2,301 2,397 2,529 2,586 2,577 2,729 5 Sonoma County Go Local Cooperative Council 150 150 200 200 200 200 6 Cittaslow International Council 893 893 1,380 1,815 1,718 - 7 SoCo Transportation Authority Technical Advisory Committee (SCTA) Council 4,659 4,659 4,879 4,931 5,162 5,402 8 Regional Climate Protection Authority (RCPA) Council 7,587 7,589 7,669 7,717 13,047 13,463 9 Sebastopol Chamber of Commerce Council - - 220 242 242 242 10 International Institute fo Municipal Clerks ACM/City Clerk 185 185 195 195 215 200 11 City Clerks Association of California ACM/City Clerk 115 115 - 90 125 - 12 City Clerks Association of California ACM/City Clerk 100 189 209 219 - 200 13 ICMA ACM/City Clerk - 220 - 200 200 200
14 California Public Employers Labor Relations Association (CALPELRA) ACM/City Clerk 700 350 370 370 370 370 15 National Association Government Archives & Records Admin (NAGARA) ACM/City Clerk 225 - - 16 CA City Management Foundation (CCMF) ACM/City Clerk 400 400 400 17 California Society of Municipal Finance Officers Finance 155 155 220 110 220 250 18 Government Finance Officers Association Finance 170 170 170 170 170 170 19 Municipal Management Association of Northern California (MMANC) Finance 95 95 75 150 75 75 20 California Public Employers Labor Relations Association (CALPELRA) Finance - 189 - - - - 21 California Muncipal Treasurers Assocation Finance 110 110 95 - - - 22 California Architects Board Planning - - 300 - 300 - 23 American Planning Association Planning 515 700 727 727 - 788 24 International Association of Plumbing & Mechanical Officials Building 150 150 200 - - - 25 Sacramento Valley Association of Building Officials Building 65 65 - - - - 26 Yosemite Chapter of ICC Building 135 135 - - - -
27 California Building Officials Building 75 155 165 - - - 28 County Building Officials Association of California Building 85 85 - - - - 29 International Association of Electrical Inspectors Building 120 120 - - - - 30 International Code Council Building 145 145 145
31 Rusian River Watershed Association Technical Work Group Engineering 29,305 31,664 32,000 34,000 34,286 26,365 32 State Water Control Board Engineering 5,700 5,700 - 5,994 7,067 7,067 33 MS4 Storm Water Permit Collaborative Effort Engineering 12,650 12,650 - - - - 34 Groundwater Management - GSA Engineering - - 52,977 39,177 - - 35 Clears, Inc Police - 50 - - - -
36 California Police Chief Association Police 290 290 - 348 348 190 37 National Emergency Number Association Police 137 137 142 142 142 147 38 Sonoma County Law Enforcement Chief Association Police 200 200 200 200 200 200 39 Sonoma County Fire Chief Association Fire 400 400 400 400 400 5,400 40 California State Firefighter Association Fire 2,325 2,600 2,681 2,763 2,550 2,338 41 Emergency Services Marketing Corp Fire 650 650 660 660 660 660 42 REDCOM (9-1-1 Dispatcher Services) Fire 39,000 39,000 42,317 44,339 52,223 58,838 43 SoCo Operational Area Emergency Services (County EOC) Fire 2,000 2,000 2,399 2,000 2,000 2,000 44 Bay Area Air Quality Management District Fire 1,800 1,800 - - - - 45 International Association of Fire Chiefs Fire 285 285 285 46 California Fire Chiefs Association (CFCA) Fire 412 412 285 Total 123,281 126,824 165,572 162,072 136,806 139,846
197 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 293 of 375 ends

DRAFT
Percentage
Change over Prior
-0.53%

1.0444

0.9965

1.0407
$ 3,291,600
4,794,560
1,408,000
$ 9,494,160
$ 9,494,160
19,526,168
$ (10,032,008)
-51%
Population Converted to Ratio -.35 + 100
100

APPROPRIATIONS LIMIT
What is it?
Proposition 4, approved by the voters in November 1979, added California Constitution, Article XIIIB. Article XIIIB limits the level of most appropriations from tax sources that the state and most local government entities are permitted to make in any given year. The limit for each year is equal to the limit for the prior year, adjusted for changes in the cost
‐
of
‐
living and population plus other various adjustments as required. The first year in which appropriations limits applied to state and local governments in California was fiscal year (FY) 1980 ‐

81. Calculation for City of Sebastopol
Per Capita Personal Income Population Change
County of Sonoma
Fiscal Year Percentage
Change over Prior Fiscal Year
2023-24 4.44% 2023-24
Per Capita Cost of Living Converted to Ratio:

4.44 + 100
100
Calculation Factor for FY 2023-24 1.0444 x 0.9965
Fiscal Year 2022-23 Appropriations Limit $ 18,761,729
Fiscal Year 2023-24 Factor 1.0407
Fiscal Year 2023-24 Appropriations Limit $ 19,526,168
It should be noted that Appropriations Limit applies only to proceeds of taxes, as defined by the law and statewide reporting guidelines.

Tax Appropriations Subject to the Tax Appropriations Limit Tax Appropriations Total Budget for 2023-24
Over/(Under) Appropriations Limit
Percentage Over/(Under) Limit
State Law requires the annual calculation of the City's Appropriations (Gann) Limit, and the City's practice is to include the annual calculation and adoption as part of the annual reviews and approves of the Operating Budget. The City's appropriations subject to the Gann Limit totals $9,494,160 which is well below the authorized spending limit of $19,526,168 Department of Finance Budgeting Resource Price and Population Factors Used For Appropriations Limit at:
https://dof.ca.gov/wp-content/uploads/sites/352/2023/05/PriceandPopulation2023.pdf Property Tax
Sales Tax
Other Tax
Total Appropriations Subject to Limit
Appropriations Subject to Limit
Fiscal Year 2023-24 Appropriations Limit
198 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 294 of 375 ends

DRAFT

OVERVIEW
This document establishes policies of overall financial management, budget development, and fiscal administration for the City of Sebastopol. Included herein are statements and principles designed to guide the City in maintaining its financial stability and delivering high-quality services to the public.

Formally adopted financial policies assist elected officials and city staff in the development of fiscal management practices, save time and provide structure for financial decisions, promote public confidence, enhance transparency and provide continuity over time. These policies will be updated periodically, but are designed with a long-term perspective and provide the basic framework and road map for addressing a wide variety of financial and economic conditions that the City will encounter. A fiscal policy supports long-term planning and enhances the City’s effectiveness in implementing long-term strategies to deliver efficient services to the public.

This document provides a structured, central repository for a variety of fiscal policies which are organized into the following categories
 General Financial Principles
 Annual Operating Budget Policy
 Capital Improvement Program
 Revenues
 Expenditures
 Cash Management
 Debt Management
 Fund Balances
 Financial Reporting
 Review and Update

GENERAL FINANCIAL PRINCIPAL
It is the overall policy of the City of Sebastopol to build upon a sound conceptual framework to:
 Manage its financial resources in a responsible and prudent manner.  Provide financial information in a relevant, thorough and timely manner, and in a format that effectively communicates financial status to the Council, citizens and City employees.  Establish and maintain prudent fund balance levels.
 Maintain financial reporting in compliance with current governmental accounting standards.  Promote and implement a relevant and strong system of internal financial controls to manage significant risks and monitor the reliability and integrity of financial and operating reporting.  Promote constructive and proactive financial decision making that includes, and is responsive to, citizens input and guidance.
 Integrate long-term operating and capital resources planning into the annual budget process.  Allow for uncertainties and maintain a posture of financial flexibility.  Develop programs in a manner that supports the City’s long-term ability to cover costs and provide the level and quality of service required by its citizens.
 Manage debt responsibly.
 Establish and implement investment policies in accordance with the City code and State law.

ANNUAL OPERATING BUDGET POLICY
 An annual operating budget will be adopted by the City Council no later than June 30th of each fiscal year. The budget will include appropriations that provide expenditure authority to public officials 199 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 295 of 375 ends

DRAFT
responsible for operating their respective departments to fulfill obligations to provide public services as delegated by the City Council.
 Funds may not be expended for a new fiscal year until the budget for that fiscal year has been adopted by the City Council.
 The City Council appointed Budget Subcommittee will develop and present a draft operating budget for consideration by the full City Council and Public. The operating budget will be presented to the City Council for review and adoption.
 Total projected expenditures shall not exceed total estimated revenues. Should this occur, City Council may approve a planned use of accumulated fund balances in prior years for inclusion in the budget.  The City should maintain a multi-year financial forecast that is updated as part of the annual budget development process.
 One-time revenue sources are not to be relied upon to fund on-going operations.

Controlling and Adjusting the Annual Budget:
 The City structures and controls its budget by use of the following funds:
o The general fund is the primary operating fund of the City. It accounts for the receipt of property tax, general sales tax, and other general revenues available to finance city operations. The general fund accounts for revenues and expenditures that do not fit the criteria to be accounted for in other funds with external restrictions imposed by their respective financing sources. o Special funds account for resources externally restricted for use by their respective funding sources, such as grant programs financed by the State and Federal governments. o Enterprise funds account for water and wastewater systems, may be used for fee-based programs if the intention is to recoup almost all City costs through fees or other user charges. o Internal Service funds account for centralized service costs (such as technology and vehicle services made available to all operating departments). Charges from the internal service funds appear as an expenditures in the user department, and as revenue in the central service department.  The City’s budget is controlled at the fund level by the City Council. o The City Council, as representatives of the public, is the sole authority for creating or increasing expenditure appropriations within a fund. The City Council is also the exclusive authority for approving changes in revenue estimates with funds.
 Department Heads will be held directly responsible and accountable for their budgets as originally adopted by the City Council or as thereafter revised in accordance with this policy. The level of expenditure control for departments is the department level.
 Departments that operate programs among different funds are limited to the appropriation levels within any one fund. This policy also describes the level of authority needed to amend the adopted budget.

Transfers and revisions to the adopted budget:

The City Council approves:

1. All increases in appropriations within a department or fund.

2. All transfers of appropriations between funds.

3. All decreases in appropriations, with the exception that the City Manager may direct Department Heads to suspend expenditures pending Council consideration of decreases in appropriations needed to respond to fiscal emergency.

The City Manager approves:

1. Transfers of appropriations between expenditure line items within departments, projects and program budgets, up to $100,000.

2. Transfers between operating divisions and program budgets within departments.

3. The City Manager may make budget transfers between departments or programs as long as those changes do not increase overall appropriations within any one given fund. Transfers between funds, overall increases in fund appropriations, and overall increases in project 200 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 296 of 375 ends

DRAFT
budgets can only be made through City Council action. Transfers between departments should be reported to the City Council as part of the budget amendment process, either at mid-year or at the proposal of a new budget term.

Finance Department:

1. The Finance Department is responsible for providing forms and instructions for requesting appropriation adjustments, and for analyzing and recommending adjustments to the City Manager. The Finance Department will record approved budgets and adjustments into the City’s budget system.

2. The Finance Department will ensure that the City’s Comprehensive Annual Financial Report (CAFR) includes a comparison of actual expenditures against the final budget, as amended and adjusted under the authorities of this policy.
 Operating expenditure appropriations not spent during the fiscal year lapse at year-end, except for:
o Encumbrances or commitments, as in the form of finalized purchase orders made during the fiscal year that have not been completed at year-end.
o Appropriations for capital improvement projects and ongoing grants with a life-cycle beyond one year.
 Governmental funds use the modified accrual basis of accounting while proprietary and fiduciary fund types are budgeted on a full accrual basis of accounting. The Comprehensive Annual Financial Report (CAFR) presents City’s finances on a Generally Accepted Accounting Principles (GAAP) basis and the City’s budget is prepared in conformance with these standards.  City budget must comply with the annual determination of the City’s appropriations limit calculated in accordance with Article XIIB of the Constitution of the State of California and adopt an annual resolution to this effect.

CAPITAL IMPROVEMENT PROGRAM
 The City will develop and maintain a five-year capital improvement program (CIP) to be updated annually in conjunction with the operating budget. The CIP should reflect the current and changing needs of the community as well as enhance of the community’s quality of life.  All projects within the CIP are to be tracked systematically and reported on a quarterly basis. CIP tracking reports should clearly display budget-to-actual performance by project, fund category and project status.  Capital improvements that specifically benefit a select group of users and/or are fee-for-service based are to be financed through user fees, service charges, special assessments and taxes, or development impact fees.
 Capital improvements that specifically benefit a fee-for-service enterprise operation (such as Water/Sewer) are to be financed through the service fees generated within that operation and fund. Such fees should be supported by periodic updates to the related utility master plan.  Transfers of resources into the CIP fund will be evaluated on an annual basis dependent upon the existence of available surplus dollars.
 The City should strive to maximize the use of capital grants and State assistance in funding capital improvements before tapping general revenue sources.

REVENUES
 The City will strive to maintain a diversified and stable revenue base to minimize the impact of economic fluctuation.
 The City will seek out, apply for, and effectively administer Federal, State, and other grants that address the City’s current operating and capital priorities.
 The City will pursue revenue collection and auditing to assure that funds due to the City are accurately received in a timely manner.
201 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 297 of 375 ends

DRAFT
 The City will seek reimbursements for State mandated costs whenever possible.  The City will adopt user fees with appropriate levels of cost recovery.  User fee studies should be performed and updated annually to ensure the proper balance of costs and service charges. The City should strive to cover the full cost of providing non-tax and discretionary fee-based service operations except to the extent that City Council approves defined subsidy levels by program area.  Operating departments are to review public services to identify and determine those appropriate for fee collection. Recommendations for new fees are to be presented to the City Council as fees are annually updated to ensure they reflect all direct and reasonable indirect costs of providing such services.  Enterprise operations will be self-supporting and shall reimburse the General Fund for any and all materials and services provided on their behalf.

EXPENDITURES
 Expenditures are to be budgeted and controlled so as to not exceed estimated revenues plus the approved and planned use of fund balances accumulated in prior years.  The City will conduct a mid-year financial status review to determine if projected revenues and expenditures meet target levels. If an operating deficit is projected at year-end, the City should evaluate the need for immediate corrective and/or mitigating actions, including operating or capital expenditure reductions and/or activate the use of established contingency balances. The deferral of essential and scheduled operational expenditures into the following fiscal year or the use of short-term loans and transfers to balance the budget should be avoided.
 The City implements a formal purchasing system, principles, and guidelines to ensure that expenditure levels are kept in check in the course of any fiscal year.

CASH MANAGEMENT
 The Budget Subcommittee will review the City’s investment policy periodically and make recommendations to the City Council when appropriate.
 The responsibility of investing City funds rests with the Finance Director who is to exercise due diligence to adhere to the investment policy. The Finance Director will present to the City Council quarterly investment reports presenting a summary of the portfolio status and compliance with the conditions set forth in the investment policy.

DEBT MANAGEMENT
 The City should plan the use of debt in a manner that sustains financing payments at manageable levels.  The City will seek to maintain a high credit rating through sound financial practices as a basis for minimizing borrowing costs.
 The City will make every effort to use pay-as-you-go financing for capital improvement projects. Debt financing for a project can be used if the overall project cost exceeds anticipated available resources and/or if the cost of financing is favorable as compared to the use of City investment holdings over the financing term.
 The City will monitor all forms of debt annually in conjunction with the budget preparation process and report concerns and remedies, if necessary, to City Council. The City will diligently monitor its compliance with bond covenants.
 The City will not issue long-term debt to finance current operations. Debt financing should only be used for long-term capital improvement projects with a useful life exceeding the term of the financing and for which the project revenues or specific identified revenue sources are sufficient to service the long-term debt.  The City will use a lease-purchase method of financing for equipment if the lease rates are more favorable than the City’s expected overall investment rate of return. 202 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 298 of 375 ends

DRAFT
 The City will not incur general obligation indebtedness for public improvements which exceed in aggregate 15% of the assessed value of all real and personal property of the City as specified in the California Government Code Section 43605.

FUND BALANCES
Governmental Fund Type Definitions
Governmental fund types include the general fund, special revenue funds, capital projects funds, debt service funds and permanent funds. GASB has clarified the definitions of these funds as follows:

General Fund
The General Fund should be used to account for and report all financial resources not accounted for and reported in another fund.

Special Revenue Funds
Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. The restricted or committed proceeds of specific revenue sources should be expected to continue to comprise a substantial portion of the inflows reported in the fund. Other resources (investment earnings and transfers from other funds, for example) also may be reported in the fund if those resources are restricted, committed, or assigned to the specified purpose of the fund. Governments should discontinue reporting a special revenue fund, and instead report the fund's remaining resources in the general fund, if the government no longer expects that a substantial portion of the inflows will derive from restricted or committed revenue sources.

Capital Projects Funds
Capital projects funds are used to account for and report financial resources that are restricted, committed or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. Capital projects funds exclude those types of capital-related outflows financed by proprietary funds or for assets that will be held in trust for individuals, private organizations or other governments.

Debt Service Funds
Debt service funds are used to account for and report financial resources that are restricted, committed or assigned to expenditure for principal and interest, even if it is being accumulated for future years' payments. Debt service funds should be used to report resources if legally mandated.

Permanent Funds
Permanent funds should be used to account for and report resources that are restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting government's programs. Permanent funds do not include private-purpose trust funds, which should be used to report situations in which the government is required to use the principal or earnings for the benefit of individuals, private organizations, or other governments.

Fund Balance Classifications
Fund balance is defined as the difference between assets and liabilities. Governmental Accounting Standards Board Statement (GASB) No. 54 classified fund balances into the following categories:

Non-spendable: This is a portion of fund balance not available for appropriations by its nature or external restriction. Examples are inventories and donations that require intact principal values.

Spendable: Restricted: The restricted portion of fund balance is subject to externally enforceable legal restrictions.

Examples are Gas Tax revenues and grant proceeds.
203 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 299 of 375 ends

DRAFT
Committed: The committed portion of fund balance is constrained by the limitations imposed through formal City Council action. Only formal City Council action can remove or modify a previously committed amount.

Assigned: The Assigned portion of fund balance is established for intended use by either the City Council or its designee, such as the City Manager. No formal City Council action is needed to remove the intended use. GAAP required reserves, such as the Other Post-Employment Benefits (OPEB) reserve, belong to this category. The Fiscal Policy and State Revenue Stabilization policy balances belong to this category.

Unassigned: The Unassigned portion of fund balance is that remaining after the non-spendable, the restricted, the committed, and the assigned fund balances are identified and recorded.

The City of Sebastopol will use GASB's definitions of fund balance for the annual financial reports (audits) and for all other financial reporting. For all financial planning purposes, the term Budgetary Fund Balance will be used and will include any portion of the fund balance that is available for appropriation. Portions of the fund balance not available for appropriation will be identified as follows.

The City shall strive to use the most restricted fund balances prior to utilizing those that are less restricted. The following order of use reflects this guideline:
a. Non-spendable (if funds become spendable)
b. Restricted
c. Committed
d. Assigned
e. Unassigned
Fund Balance Policy Levels
Purpose
The City of Sebastopol (City) has enacted the Fund Balance policies in an effort to ensure financial security through the maintenance of a healthy fund contingency balance that guides the creation, maintenance, and use of resources for financial stabilization purposes. The City’s primary objective is to maintain a prudent level of financial resources to protect against reducing service levels or raising taxes and fees due to temporary revenue shortfalls or unpredicted one-time expenditures. The City also seeks to maintain the highest possible credit ratings which are dependent, in part, on the City’s maintenance of a healthy fund balance.

General Fund
The City’s fiscal goal is to maintain annual expenditure increases at a sustainable growth rate, and to limit expenditures to anticipated revenue in order to maintain a balanced budget. The Council’s directed target is to maintain an unassigned fund balance within the range of not less than 15% of annual operating expenditures for the fiscal year with a multi-year goal of achieving a 20% unassigned fund balance level for the reasons noted below. This level of coverage includes General Fund balance amounts specifically assigned for a specific purpose as discussed and defined further below:
 To provide funding to cover approximately two (2) months of operating expenses with the goal of achieving three months coverage in the long term.
 To provide the liquidity to respond to contingent liabilities.  To adhere to Government Finance Officers Association (GFOA) recommendation that a minimum General Fund unassigned fund balance to be maintained of no less than either two (2) months of regular operating revenues or expenditures.

Buildings, Facilities & Infrastructure Reserve
Building, facilities and infrastructure replacement reserve should be established and maintained to provide for the timely replacement of City’s owned fixed assets. The balance is hereby defined as assigned by the City Council to 204 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 300 of 375 ends

DRAFT
allow the City to maintain an infrastructure reserve with a target balance equivalent to the projected annual cost of the first year Capital Improvement Plan funding expenditures.

Equipment, Technology and Vehicle Replacement Reserve
The balance is hereby defined as assigned by the City Council to allow the City to set aside an appropriate amount of money to properly fund equipment, technology and vehicle replacement. The City shall set aside funding annually in this reserve based on the vehicle and equipment replacement schedule.

CalPERS Retirement & Other Post-Employment Benefits Reserve The City conducted an actuarial study to comply with GASB Statement No. 45, Accounting and Financial Reporting by Employers for Post-Employment Benefits and to determine the City’s obligation for the other postemployment benefits (OPEB). The study concluded that the City should set aside annual funding for this obligation and the City should maintain internal funding of OPEB obligations for this purpose. Additionally, the City will conduct an actuarial update every two to three years to maintain the current status of this valuation.

Unassigned Operating Reserve
These balances are hereby defined as unassigned by the City Council to allow the City to weather unpredicted cyclical and rapid downturns in the economy. These funds would be available for use in such conditions to mitigate negative economic fiscal impacts or State takeaways and can be activated within any one budget cycle through Council action. An economic downturn would entail a projected and/or sudden drop in core revenues (major tax and service revenue loss) of equal to or greater than 10% (including the impact of inflation) and/or a change in economic parameters (such as interest rates, debt service rates, pension and health rates) that cause a material change in expenditures of 10% or more, or the occurrence of a local natural disaster or unexpected financial claim requiring the immediate use of cash balances.

Water and Sewer Fund Balances
The City should maintain the balances in the Water Sewer Fund at a level sufficient to accommodate operating and capital needs. This reserve is recommended at 25% of annual expenditures, including estimated capital improvements. Multi-year fee studies for this fund should be updated periodically as a basis for defining the revenue sources necessary to maintain system infrastructure and required services levels. As a result of the periodic fee or master plan studies, adjustments to user charges may be necessary to maintain recommended fund balance levels.

Workers’ Compensation and Liability Insurance Funding
Periodic actuarial studies of self-insured workers’ compensation and general liabilities will be conducted to ensure that proper levels of liabilities are accrued for claims and that rates charged to operating departments are appropriate.

FINANCIAL REPORTING
 The City’s accounting and financial reports are to be maintained in conformance with GAAP.  An annual financial audit will be performed by an independent public accounting firm familiar with municipal government activities. The independent auditor will issue an audit opinion to be included in the City’s Comprehensive Annual Financial Report (CAFR). Additionally, the auditor will present the CAFR and discuss audit findings to the City Council. The City encourages the rotation of audit service providers every 5 year cycle.
 The City is encouraged to submit the Annual CAFR to State and/or National Government Finance Professional organizations (Government Finance Officers’ Association’s Certification of Achievement for Excellence in Financial Reporting - California Society of Municipal Finance Officers CAFR Award) for independent review and evaluation.
 Internal financial status reports are to be issued on a periodic and timely basis – no less than quarterly and be made readily available on the City website.
205 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 301 of 375 ends

DRAFT
 The City is to record the depreciation of equipment, buildings and facilities, and infrastructure as follows and in line with internally established capitalization guidelines:

Capitalization Thresholds
Land purchases at any value
Equipment - $5,000
Buildings and facility improvements - $25,000
Infrastructure - $100,000
Depreciation
Depreciation will be recorded on a straight-line basis over the following estimated useful lives:

Equipment 3 - 10 years
Site Improvements other than buildings 30 - 50 years
Buildings 50 years
Infrastructure 30 - 100 years

REVIEW AND UPDATE
This financial policy will be reviewed periodically and updated, if necessary, to reflect any changing requirements. 206 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 302 of 375 ends

DRAFT

PURCHASING POLICY
Effective September 5, 2017
Revised: March 15, 2022
Council Policy # _89______
I. OVERVIEW
This policy is written to document the policies and procedures that shall be followed when purchasing goods or services. All purchases of materials, supplies, equipment, vehicle and services required by the City shall be made in accordance with the following, and pursuant to applicable provisions of the Government Code. This policy will be reviewed with new members of the City Council and new Department Heads/Managers as soon as possible after they assume office/responsibility. This policy shall also be reviewed as part of the annual budgeting process.

II. ETHICS AND RESPONSIBILITY
The City Manager (or designee) serves as the Purchasing Agent, and is charged with the responsibility and authority for coordinating and controlling the City’s purchasing function in accordance with Purchasing Policies.

The Purchasing Agent and all departments shall adhere to the Purchasing Policy when procuring materials, supplies, equipment, vehicles and services. All purchases shall be limited to the approved budget or as otherwise authorized by the City Manager. Purchasing dollar limits specified in the Purchasing Policy is “per order” unless otherwise indicated.

Applicable competitive bidding categories, authorization limits or contract award procedures will be based on unit cost, total purchase cost for consolidated bid items, or fiscal year aggregates in the case of standing purchase orders or similar ongoing purchasing arrangements. Staging of purchases to avoid competitive bidding procedures or authorization limits is prohibited.

All personnel engaged in the purchasing function shall exercise good judgment in the use and stewardship of City resources, and all purchasing functions shall be conducted with absolute integrity and objectivity. Purchases are subject to public scrutiny; employees shall follow a strict rule of personal conduct that will not compromise the City in the conduct of its business.

Any employee intentionally and/or repeatedly making purchases in a manner that circumvents, ignores or fails to comply with Purchasing Policies will be subject to disciplinary action, in accordance with City Personnel procedures.

Code Of Conduct – Employees are responsible for providing access to City procurement opportunities in a fair and impartial manner to all responsible suppliers, vendors, and contractors.

In addition, all employees shall behave in a manner that avoids improprieties or the appearance of improprieties to maintain the public’s confidence in the integrity of the City’s purchasing system.

Conflict Of Interest - If a city officer or employee has a real or apparent conflict of interest, said individual may not participate in the selection, award, or administration of any contract, including those supported by a federal award or funding, that implicates that conflict of interest. If a city 207 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 303 of 375 ends

DRAFT
officer or employee participates in making a contract where said individual has a real or apparent conflict of interest, such conflict may nullify or void a contract. As nullification or voiding of a contract is a serious matter with potentially significant consequences for the City, every officer or employee is responsible for recognizing and reporting a potential conflict of interest in timely manner.

A conflict of interest may arise when the city officer or employee has a direct financial interest in, or would receive a direct or material benefit arising from a contract. City officers and employees shall not be financially interested in any contract made by them in their official capacity, as such terms are defined in California Government Code Sections 1090 et seq. and 87100 et seq., and relevant case law. Prohibited interests include interests of immediate family members, domestic partners, and their respective employers or prospective employers.

City officers and employees shall report any potential or actual conflict of interest to their respective Department Head or to the City Attorney as soon as a conflict is suspected or discovered. If city officers or employees are uncertain about whether they have a conflict of interest regarding a particular contract, the individual shall consult the City Attorney’s Office as soon as practicable.

It is important to note that consultants of a public entity are considered public officials under Government Code section 1090 and are subject to the requirements therein. City officers and employees should consult the City Attorney on potential conflict of interest issues with respect to the City’s third-party consultants and contractors.

III. PURCHASING AGENT RESPONSIBILITIES
The City Manager or his/her designee shall act as the City’s Purchasing Agent. The Purchasing Agent is responsible for procurement of materials, supplies, equipment, vehicles and services; administration of purchasing policies and procedures; and management of surplus City property. To perform these functions efficiently and assist departments, the Purchasing Agent shall:
a. Coordinate and manage procurement of the City’s materials, supplies, equipment, vehicles and services from the lowest responsive and responsible bidder when required by the Purchasing Policies.
b. Ensure full and open competition on all purchases as required by the Purchasing Policies, and make purchase award recommendations to the appropriate authority. c. Identify, evaluate and utilize purchasing methods that best meet the needs of the City (cooperative purchases, standing purchase orders, contractual agreements, etc.) d. Recommend revisions to purchasing policies and procedures when necessary, and keep informed of current developments in the field of Public Purchasing. e. Act as the City’s agent in the transfer and disposal of surplus equipment, vehicle and materials.
208 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 304 of 375 ends

DRAFT
IV. DEPARTMENT RESPONSIBILITIES
Each Department is responsible for facilitating prudent, efficient and cost-effective purchases.

To meet these responsibilities, Departments shall:
a. Ensure staff is trained on the terminology and requirements set forth in the Purchasing Policies.
b. Minimize urgent and sole source purchases, and provide written findings and documentation when such purchases may be necessary.
c. Refrain from “splitting” orders or projects for the purpose of avoiding procurement requirements or authorization limits.
d. Anticipate requirements sufficiently in advance to allow adequate time to obtain goods in accordance with best purchasing practices.
e. Maximize coordination of purchases into a lesser number of large transactions to take advantage of cost savings for bulk purchases of commonly used goods and services.

V. PURCHASING AUTHORITY
The City Council adopts an annual budget, which includes detail of all capital items, professional fees for services and all other expenditures. Items referred to hereafter as "budgeted" refer to expenditures that have been appropriated in the adopted budget or approved for expenditure by the Council after the budget is adopted for the current fiscal year.

Authority to approve expenditures shall be determined as shown in the diagrams below.

Expenditures shall not be broken down or divided into sub-groups for purposes of avoiding the guidelines.

Budgeted
Expenditures
Greater than
$50,001
City Council+
(see "Other+")
Up to $50,000** City Manager
Up to $5,000
Department
Directors/Managers*
(see 'Delegates*")
** Subject to competitive process herein.
209 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 305 of 375 ends

DRAFT
CONTRACT or CHECK SIGNING AUTHORITY
The City Manager and Administrative Services may designate their signature authority in their absence.

In the course of conducting City business, the City is required to make a variety of different types of purchases. The type of purchase dictates the policies and procedures for procuring and formalizing the purchase. Before employees make a purchase, they should identify the type of purchase and the proper method for completing that purchase. This category of purchases includes the purchase of tangible durable and non-durable goods by the City. Examples of these types of purchases include fuel, tools, office supplies, chemicals, machinery, food, and furniture. These types of purchases are distinct from the purchase of nontangible services.

Competitive Process – This policy is designed to promote full and open competition among potential vendors. Through full and open competition, the City is able to realize better pricing and more favorable terms. In interpreting this policy, staff should rely on interpretations that favor greater and more robust competition among vendors.

Exceptions
Delegates*
City Managers, Assistant City Manager, and
Department Heads, with sign off prior to payment,
can delegate authority to anyone within their
department up to $5,000
Others+
Charges over $100,000 do not need to go to the
Council if they are related to payroll, debt service
payments, regulatory fee to Santa Rosa
Subregional, insurance, utilities, retirement
payments
Non Budgeted
Expenditures
Greater than $10,000 City Council
Exceptions: Payroll Related Items
Up to $10,000
City Manager (or designee)
Exception: No increase to overall
approved budget appropriations
$0-$50,000.01 & up
City Manager
(Electronic Signature)
Administrative Director or Designee
(Live Signature)
210 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 306 of 375 ends

DRAFT
Best Overall Value – This policy is designed to ensure that the City is getting the best value for its money when making purchaes. When not required by law to select the lowest bidder, the principle permits the City to consider factors other than just price in determining what constitues the best overall value to the City.

Fairness And Transparency – This policy is designed to promote fairness and transparency in the City’s purchasing system. Complying with this policy fosters equal opportunities for vendors wishing to do business with the City and ensures that public expenditures are made in an open and consistent manner.

Compliance With Law And Best Practices – This policy is informed by and incorporates applicable laws, regulations, and best practices applicable to public procurements. Compliance with this policy ensures that purchases are conducted in accordance with the City’s legal and ethical obligations and responsibilities.

Conduct With Vendors All employee interactions with vendors shall be conducted in a fair, open, and transparent manner. Employees shall:
i. Refrain from showing favoritism to vendors or being unduly influenced by external factors outside the criteria outlined in this policy.
ii. Select all vendors on the basis of meeting appropriate and fair criteria in accordance with the requirements of this policy.

No Gratuities - No City employee shall solicit, demand, accept, or agree to accept, and shall avoid the appearance of accepting, a gift of goods or services, payment, loan, advance, deposit of money, or employment offer presented, promised in return for, or in anticipation of favorable consideration in a City procurement.

VI. METHODS OF PROCUREMENT
The type of purchase and the amount of a purchase dictates the method of procurement. Smaller and less complex purchases involve less stringent competitive requirements. Conversely, more valuable and more complex purchases require stricter, more formalized competitive processes.

Informal Procurement
Micro purchases need not be awarded competitively, but the price must be determined to be fair and reasonable and should be distributed equitably among qualified suppliers. Micro Purchases do not require advertising or solicitation of quotes/bids. However, seeking multiple quotes/bids, even when not required, is a best practice and helps to ensure that the City receives better pricing for its purchases. Micro purchasing is defined as for purchases valued under $5,000.

Informal Solicitation
Informal solicitation involves seeking three (3) written quotes from potential vendors. These written quotes may be informally documented, such as through emails between City employees and potential vendors. Informal solicitation may be used for purchases of goods, non-public works construction projects, and consultant/professional services valued at $50,000 or less. 211 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 307 of 375 ends

DRAFT
Formal Competitive Proposals (RFP)
In a formal competitive proposal process, the City must: (i) prepare a request for proposal document identifying the project requirements, vendor qualifications, and evaluation factors; (ii) send the RFP to an adequate number of qualified sources as determined by the relevant department head or the City Manager; (iii) post the RFP on the City’s website at least ten (10) days prior to the deadline for receipt of proposals; and (iv) establish and implement procedures for evaluation of proposals. Formal competitive proposals shall be used for purchases valued at more than $50,000.

Cooperative Procurement
Cooperative purchasing allows the City to buy goods or services based on a competitively bid contract prepared by another public agency, when that other agency and the vendor(s) agreed in advance to a cooperative process. Use of purchasing cooperatives is encouraged as a way to obtain goods and services by aggregating volume, securing value pricing, and reducing administrative overhead. Measured use of purchasing cooperatives can significantly reduce the time and resources needed to competitively purchase goods and services.

Sole Source Procurement
Regardless of the estimated cost of a purchase, the City is not required to engage in a competitive procurement process, either formal or informal when a competitive procurement is infeasible for the reasons articulated in this section. In all cases, the City must verify and document that a particular procurement meets the criteria for a sole source identified below, and the use of sole source must be approved by the City Manager. Sole source procurement is authorized if one of the following conditions are met:
a. Unique or Innovative Concept - The vendor demonstrates a unique or innovative concept or capability not available from another source. “Unique or Innovative Concept” means a new, novel, or changed concept, approach, or method that is the product of original thinking, the details of which are kept confidential or are patented or copyrighted, and is available to the City only from one source and has not in the past been available to the City from another source;
b. Patents or Restricted Data Rights – Patent or data rights restrictions preclude competition; c. Substantial Duplication Costs – In the case of a subsequent contract for the continued development or production of highly specialized equipment or products and/or major components thereof, when it is likely that award to another contractor would result in substantial duplication of costs that are not expected to be recovered through competition; d. Unacceptable Delay – In the case of a subsequent contract for the continued development or production of highly specialized equipment or products and/or major components thereof, when it is likely that award to another contractor would result in unacceptable delays in fulfilling the City’s needs.

Emergency Procurement
Emergency procurements are those purchases necessary to avoid or mitigate a clear and imminent threat or danger where delay could result in loss of life or danger to health, welfare, or property or threaten the continued operation of the City or the provision of essential City services. (See Section XI Urgent and Emergency Purchases for more details)
212 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 308 of 375 ends

DRAFT
Exempt Procurement
This Section outlines types of procurements that are exempt from the standard competitive requirements outlined in this policy and also includes special considerations related to those exempt procurements. Despite the fact that a procurement may be exempt, the City may still conduct negotiations as to price, delivery and terms in connection with the award of a contract that does not require a competitive process. Nothing in this section shall preclude the solicitation of competitive bids or proposals when possible. The following is a list of procurements that are exempt from the competitive requirements outlined in this Policy.

1. Emergency procurements as defined above;

2. Specified materials or equipment that can be obtained from only one source and there is no adequate substitute in accordance with the criteria outlined in sole source section above;

3. Legal or professional services that are highly specialized;

4. Procurements funded by grants, donations or gifts when any special conditions require the purchase of particular materials and/or services;

5. Purchase of surplus property owned by another public entity, or payment to other public entities or utilities;

6. Membership dues, conventions, training, travel arrangements, or advertisements in magazines, newspapers, or other media;

7. Works of art, entertainment or performance; and

8. Where competitive bids or proposals have been solicited and no bid or proposal has been received. In such situations the City Manager may proceed to have the goods procured or services performed without further competitive bidding.

VII. LOCAL VENDOR PREFERENCE:

Whenever possible, the City wishes to support, promote the use of local businesses, suppliers an services providers to help create a sustainable economy, preserve local businesses, and make a commitment to circulate tax dollars within city limits.

VIII. ENVIRONMENTALLY PREFERABLE PURCHASING (EPP) POLICY

1. STATEMENT OF POLICY
The Environmentally Preferable Purchasing Policy will commit the City to:

1.1. Protect and conserve natural resources, water, and energy

1.2. Minimize the contribution to climate change, pollution, and solid waste disposal;

1.3. Institute practices that reduce waste by increasing product efficiency and effectiveness;

1.4. Purchase products that minimize environmental impacts, toxics, pollution, and hazards to worker and community safety;

1.5. Purchase products that include recycled content, are durable and long-lasting, conserve energy and water, use agricultural fibers and residues, use unbleached or 213 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 309 of 375 ends

DRAFT
chlorine free manufacturing processes, are lead-free and mercury-free, and use wood from sustainably harvested forests; and

1.6. Comply with State requirements as contained in the SB 1383 procurement regulations to procure a specified amount of Recovered Organic Waste Products to support Organic Waste disposal reduction targets and markets for products made from recycled and recovered Organic Waste materials.*

2. PURPOSE
The purpose of the policy is to incorporate considerations that include the following:

2.1. Conserve natural resources;

2.2. Minimize environmental impacts such as pollution and use of water and energy;

2.3. Eliminate or reduce toxics that create hazards to workers and our community;

2.4. Support a strong recycling market and circular economy;

2.5. Incorporate environmental considerations including recycled-content and recovered Organic Waste product use into purchasing practices and procurement;

2.6. Reduce materials that are landfilled;

2.7. Increase the use and availability of environmentally preferable products that protect the environment;

2.8. Identify environmentally preferable products and distribution systems;

2.9. Reward manufacturers and vendors that reduce environmental impacts in their production and distribution systems or services;

2.10. Align with the Zero Waste Sonoma's goal of Zero Waste by 2030 as adopted in the Zero Waste Resolution; and

2.11. Create a model for successfully purchasing environmentally preferable products that encourages the use of agricultural fibers, chlorine-free manufacturing processes, wood from sustainably harvested forests, and other environmentally friendly practices, and that encourages other purchasers in our community to adopt similar goals.

3. DEFINITIONS

3.1. “Annual Recovered Organic Waste Product Procurement Target” means the amount of Organic Waste in the form of a Recovered Organic Waste Product that the Jurisdiction is required to procure annually under 14 CCR Section 18993.1.

This target shall be calculated by multiplying the per capita procurement target, which shall be 0.08 tons of Organic Waste per California resident per year, times 214 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 310 of 375 ends

DRAFT
the Jurisdiction’s residential population using the most recent annual data reported by the California Department of Finance. Annually, CalRecycle will provide notice to each Jurisdiction of its Annual Recovered Organic Waste Product Procurement Target by posting such information on CalRecycle’s website and providing written notice directly to the Jurisdiction

3.2. “American Society for Testing and Materials” means ASTM International, an open forum for the development of high quality, market relevant international standards use around the globe.

3.3. “Bay Area Green Business Program” is a partnership of governments and businesses that certifies the environmental performance of government agencies and businesses.

3.4. “Bio-Based Products” means commercial or industrial products (other than food or feed) that utilize agricultural crops or residues but does not include products made from forestry materials

3.5. “Biodegradable Products Institute” (BPI) is a multi-stakeholder association of key individuals and groups from government, industry and academia, which promotes the use, and recycling of biodegradable polymeric materials (via composting). BPI does not create standards but certifies products that demonstrate they meet the requirements in ASTM D6400 or 06868, based on testing in an approved laboratory.

3.6. “Buyer’’ means anyone authorized to purchase or contract for purchases on behalf of this jurisdiction or its subdivisions

3.7. “The Carpet and Rug Institute” (CRI) is the national trade association representing the carpet and rug industry. CRI has developed and administered the “Green Label” indoor air quality testing and labeling program for carpet, adhesives, cushion materials and vacuum cleaners. The “Green Label Plus” testing program incorporates additional requirements to meet California’s Collaborative for High Performance Schools low-emitting materials criteria

3.8. “Compost” means the product resulting from the controlled biological decomposition of organic solid wastes that are source separated from the municipal solid waste stream or which are separated at a centralized facility or as otherwise defined in 14 CCR Section 17896.2(a)(4 ).

3.9. Compost eligible for meeting the Annual Recovered Organic Waste Product Procurement Target must be produced at a compostable material handling operation or facility permitted or authorized under 14 CCR Chapter 3.1 of Division 7 or produced at a large volume in-vessel digestion facility that composts on-site as defined and permitted under 14 CCR Chapter 3.2 of Division 7.

Compost shall meet the State’s composting operations regulatory requirements.

3.10. "Compostable plastic" means a polymer that is made from plants such as corn or 215 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 311 of 375 ends

DRAFT
soybeans, and breaks downduring composting to yield carbon dioxide, water and inorganic compounds and biomass, at a rate consistent with other known compostable materials and leaves no visually distinguishable or toxic residues

3.11. "Contractor" means any person, group of persons, business, consultant, designing architect, association, partnership, corporation, supplier, vendor or other entity that has a contract or serves in a subcontracting capacity with an entity having a contract for the provision of goods or services.

3.12. Direct Service Provider" means a person, company, agency, district, or other entity that provides a service or services to Jurisdiction pursuant to a contract or other written agreement or as otherwise defined in 14 CCR Section 18982(a)(17).

3.13. "Ecologo" is a third-party, multi-attribute eco-labeling program founded by the Canadian government in 1988 and part of UL Environment since 2010. The Program compares products / services with others in the same category, develops rigorous and scientifically relevant criteria, and awards the Ecologo to those that are environmentally preferable throughout their entire lifecycle.

3.14. "Electronic Product Environmental Assessment Tool" (EPEAT) is a procurement tool to help institutional purchasers in the public and private sectors evaluate, compare and select personal computers, displays, imaging equipment and televisions based on their environmental attributes.

3.15. "Electricity Procured from Biomass Conversion" means electricity generated from biomass facilities that convert recovered Organic Waste, such as wood and prunings from the municipal stream, into electricity. Electricity procured from a biomass conversion facility may only count toward the Jurisdiction's Annual Recovered Organic Waste Product Procurement Target if the facility receives feedstock directly from certain permitted or authorized compostable material handling operations or facilities, transfer/processing operations or facilities, or landfills, as described in 14 CCR Section 18993.1(i).

3.16. "Energy Star" means the U.S. EPA's energy efficiency product labeling program.

3.17. "Energy-Efficient Product" means a product that is in the upper 25% of energy efficiency for all similar products, or that is at least 10% more efficient than the minimum level that meets Federal standards.

3.18. "Environmentally Preferable Purchasing" means EPP is the procurement of goods and services that have a reduced impact on human health and the environment compared to competing products serving the same purpose. It is an essential part of our search for high quality products and services at competitive prices.

3.19. "Federal Energy Management Program" is a program of the Department of Energy that issues a series of Product Energy Efficiency Recommendations that identify recommended efficiency levels for energy-using products.

3.20. "Forest Stewardship Council" is a global organization that certifies responsible, 216 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 312 of 375 ends

DRAFT
on-the ground forest management according to rigorous standards developed by a broad variety of stakeholder groups.

3.21. "Green Seal" is an independent, non-profit environmental labeling organization.

Green Seal standards for products and services meet the U.S. EPA's criteria for third-party certifiers. The Green Seal is a registered certification mark that may appear only on certified products.

3.22. "Integrated Pest Management" is an ecosystem-based strategy that focuses on long-term prevention of pests or their damage through a combination of techniques such as biological control, habitat manipulation, modification of cultural practices, and use of resistant varieties. Pesticides are used only after monitoring indicates they are needed according to established guidelines, and treatments are made with the goal of removing only the target organism. Pest control materials are selected and applied in a manner that minimizes risks to human health, beneficial and nontarget organisms, and the environment.

3.23. "Jurisdiction" means a city, county, a combined city and county, or a regional agency with the responsibility for meeting Integrated Waste Management Act requirements. Jurisdictions may utilize a Joint Powers Authority (JPA) to comply with the requirements of SB 1383, however, the jurisdiction shall remain ultimately responsible for compliance. For this EPP Policy, Jurisdiction is the City of Sebastopol.

3.24. "LEED Rating System" means the most recent version of the Leadership in Energy and Environmental Design (LEED) Rating System, approved by the U.S.

Green Building Council, and designed for rating new and existing commercial, institutional, and residential buildings.

3.25. "NSF/ANSI" means NSF International follows the American National Standards Institute (ANSI) standards development process. Standards are developed by joint committees (balanced stakeholder groups of public health, industry and user representatives).

3.26. "Organic Pest Management" prohibits the use and application of toxic chemical pesticides and strives to prevent pest problems through the application of natural, organic horticultural and maintenance practices. All pest control products shall be in keeping with, but not limited to, those products on the approved list of California Certified Organic Farmers (CCOF).

3.27. "Organic Waste" means solid wastes containing material originated from living organisms and their metabolic waste products including, but not limited to, food, yard trimmings, organic textiles and carpets, lumber, wood, Paper Products, Printing And Writing Paper, manure, biosolids, digestate, and sludges, or as otherwise defined in 14 CCR Section 18982(a)(46). Biosolids and digestate are as defined in 14 CCR Section 18982(a)(4) and 14 CCR Section 18982(a)(16.5), respectively.
217 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 313 of 375 ends

DRAFT

3.28. "Paper Products" include, but are not limited to, paper janitorial supplies, cartons, wrapping, packaging, file folders, hanging files, corrugated boxes, tissue, and toweling;

3.29. "Post-consumer Material" means a finished material which would normally be disposed of as a solid waste, having reached its intended end-use and completed its life cycle as a consumer item, and does not include manufacturing or converting wastes.

3.30. "Pre-consumer Material" means material or by-products generated after manufacture of a product is completed but before the product reaches the end-use consumer. Pre consumer material does not include mill and manufacturing trim, scrap, or broke which is generated at a manufacturing site and commonly reused on-site in the same or another manufacturing process.

3.31. "Printing and Writing Papers" include, but are not limited to, copy, xerographic, watermark, cotton fiber, offset, forms, computer printout paper, white wove envelopes, manila envelopes, book paper, note pads, writing tablets, newsprint, and other uncoated writing papers, posters, index cards, calendars, brochures, reports, magazines, and publications;

3.32. "Postconsumer Content" means any product which has served its intended use by a business or a consumer, which has been disposed and subsequently separated from solid waste for use as a constituent in a new product.

3.33. "Procurement of Recovered Organic Waste Products" shall mean purchase or acquisition (e.g., free delivery or free distribution from a hauler or other entity via a written agreement or contract), and end use by the Jurisdiction or others. The Jurisdiction's Annual Recovered Organic Waste Product Procurement Target can be fulfilled directly by the Jurisdiction or by Direct Service Providers through written contracts or agreements for Procurement of Recovered Organic Waste Products at the Jurisdiction's behest.

3.34. "Post-manufacture Content" means, waste that is created by a manufacturing process, and that is subsequently only used as a constituent in another manufacturing process.

3.35. "Recovered Material" means fragments of products or finished products of a manufacturing process, which has converted a resource into a commodity of real economic value, and includes pre-consumer and post-consumer material but does not include excess resources of the manufacturing process.

3.36. "Recovered Organic Waste Products" means products made from California, landfill diverted recovered Organic Waste processed at a permitted or otherwise authorized operation or facility, or as otherwise defined in 14 CCR Section 18982(a)(60). Products that can be used to meet the Annual Recovered Organic Waste Product Procurement Target shall include Compost, SB 1383 Eligible Mulch, Renewable Gas from an in-vessel digestion facility, and Electricity 218 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 314 of 375 ends

DRAFT
Procured from Biomass Conversion as described herein and provided that such products meet requirements of 14 CCR, Division 7, Chapter 12, Article 12.

3.37. "Recordkeeping Designee" means the public employee appointed by the Jurisdiction Manager or their designee to track procurement and maintain records of Recovered Organic Waste Product procurement efforts both by the Jurisdiction and others, if applicable, as required by 14 CCR, Division 7, Chapter 12, Articles 12 and 13. In Sonoma County, Zero Waste Sonoma will be considered the Recordkeeping Designee.

3.38. "Recyclability" means that the Paper Products and Printing and Writing Paper offered or sold to the Jurisdiction are eligible to be labeled with an unqualified recyclable label as defined in 16 Code of Federal Regulations Section 260.12 (2013).

3.39. "Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper" means such products that consist of at least thirty percent (30%), by fiber weight, postconsumer fiber, consistent with the requirements of Sections 22150 to 22154 and Sections 12200 and 12209 of the Public Contract Code, and as amended.

3.40. Recycled Content Standard" means the minimum level of recovered material and/or post consumer material necessary for products to qualify as "recycled products."

3.41. "Recycling" means using waste as material to manufacture a new product.

Recycling involves altering the physical form of an object or material and making a new object from the altered material.

3.42. "Renewable Gas" means gas derived from Organic Waste that has been diverted from a landfill and processed at an in-vessel digestion facility that is permitted or otherwise authorized by 14 CCR to recover Organic Waste.

3.43. "Reuse" means using an object or material again, either for its original purpose or for a similar purpose, without significantly altering the physical or chemical form of the object or material.

3.44. "Remanufactured Product" means any product diverted from the supply of discarded materials by refurbishing and marketing said product without substantial change to its original form.

3.45. "Reused Product" means any product designed to be used many times for the same or other purposes without additional processing except for specific requirements such as cleaning, painting or minor repairs.

3.46. "Russian River Friendly Landscaping" means working with the natural ecosystems of the Russian River region to foster soil health, to reduce runoff and pollution, prevent and reuse plant waste, and conserve water and other natural resources. The Russian River Friendly Landscape Guidelines are a revision of the 219 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 315 of 375 ends

DRAFT
Bay-Friendly Landscape Guidelines by the Russian River Watershed Association (RRWA), originally published by StopWaste.Org.

3.47. "Source Reduction" Section 40196 of the California Public Resources Code defines source reduction as any action which causes a net reduction in the generation of solid waste. "Source Reduction" includes, but is not limited to, reducing the use of nonrecyclable materials, replacing disposable materials and products with reusable materials and products, reducing packaging, reducing the amount of yard wastes generated, establishing garbage rate structures with incentives to reduce the amount of wastes that generators produce, and increasing the efficiency of the use of paper, cardboard, glass, metal, plastic, and other materials.

3.48. "SB 1383" means Senate Bill 1383 of 2016 approved by the Governor on September 19, 2016, which added Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety Code, and added Chapter 13.1 (commencing with Section 42652) to Part 3 of Division 30 of the Public Resources Code, establishing methane emissions reduction targets in a statewide effort to reduce emissions of short-lived climate pollutants, as amended, supplemented, superseded, and replaced from time to time.

3.49. "SB 1383 Regulations" or "SB 1383 Regulatory" means or refers to, for the purposes of this policy, the Short-Lived Climate Pollutants (SLCP): Organic Waste Reductions regulations developed by CalRecycle and adopted in 2020 that created Chapter 12 of 14 CCR, Division 7 and amended portions of regulations of 14 CCR and 27 CCR.

3.50. "State" means the State of California.

3.51. "Water-Saving Products" are those that are in the upper 25% of water conservation for all similar products, or at least 10% more water-conserving than the minimum level that meets the Federal standards.

3.52. "WaterSense" means a partnership program by the U.S. Environmental Protection Agency. Independent, third-party licensed certifying bodies certify that products meet EPA criteria for water efficiency and performance by following testing and certification protocols specific to each product category. Products that are certified to meet EPA specifications are allowed to bear the WaterSense label.

4. STRATEGIES FOR IMPLEMENTATION

4.1. Source Reduction

4.1.1. Institute practices that reduce waste, encourage reuse, and result in the purchase of fewer products.

4.1.2. Purchase remanufactured products such as toner cartridges, tires, furniture, equipment and automotive parts.
220 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 316 of 375 ends

DRAFT

4.1.3. Consider short-term and long-term costs in comparing product alternatives. This includes evaluation of total costs expected during the time a product is owned, including, but not limited to, acquisition, extended warranties, operation, supplies, maintenance and replacement parts, disposal costs and expected lifetime compared to other alternatives.

4.1.4. Purchase products that are durable, long lasting, reusable or refillable and avoid purchasing one-time use or disposable products.

4.1.5. Request vendors eliminate packaging or use the minimum amount necessary for product protection. Vendors shall be encouraged to take back packaging for reuse. A vendor's willingness to take back packaging will be used as part of the consideration in the procurement process.

4.1.6. Specify a preference for packaging that is reusable, recyclable, or compostable, when suitable uses and programs exist.

4.1.7. Encourage vendors to take back and reuse pallets and other shipping materials.

4.1.8. Encourage suppliers of electronic equipment, including but not limited to computers, monitors, printers, and copiers, to take back equipment for reuse or environmentally sound recycling when discarding or replacing such equipment, whenever possible. Suppliers will be required to state their take-back, reuse or recycling programs during the procurement process.

4.1.9. Consider provisions in contracts with suppliers of non-electronic equipment that require suppliers to take back equipment for reuse or environmentally sound recycling when discarding or displacing such equipment, whenever possible.

4.1.10. Suppliers will be required to state their take back, reuse or recycling programs during the procurement process.

4.1.11. Promote electronic distribution of documents rather than printing or copying.

4.1.12. When producing paper documents, print and copy all documents on both sides to reduce the use and purchase of paper. Printers and copiers shall be set to default to duplex.

4.1.13. Ensure all imaging equipment is installed with energy and resourceefficient settings set as default.

4.1.14. Reduce the number and type of equipment needed to perform office functions to save energy and reduce purchasing and maintenance costs.

Eliminate desktop printers, redundant network printers and reduce the number of fax machines leased or owned. Consider lease or purchase of 221 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 317 of 375 ends

DRAFT
multi-function devices.

4.2. Recycled Content Products (SB 1383 Model Language for City Compliance)

4.2.1. Requirements for City Departments

4.2.1.1. Option 1: Comparable or more favorable pricing: If fitness and quality of Recycled-Content Paper Products and RecycledContent Printing and Writing Paper are equal to that of nonrecycled items, all departments and divisions of Jurisdiction shall purchase Recycled-Content Paper Products and RecycledContent Printing and Writing Paper that consists of at least thirty percent (30%), by fiber weight, postconsumer fiber, whenever available at the same or a lesser total cost than nonrecycled items.

4.2.1.2. Option 2: Price preference: If fitness and quality of RecycledContent Paper Products and Recycled-Content Printing and Writing Paper are equal to that of non-recycled items, all departments and divisions of Jurisdiction shall purchase Recycled-Content Paper Products and Recycled-Content
Printing and Writing Paper that consists of at least thirty percent (30%), by fiber weight, postconsumer fiber, whenever the total cost is the same or a lesser total cost than non-recycled items.

4.2.1.3. Option 3: No price preference: If fitness and quality of Recycled-Content Paper Products and Recycled-Content
Printing and Writing Paper are equal to that of non-recycled items, all departments and divisions of Jurisdiction shall purchase Recycled-Content Paper Products and RecycledContent Printing and Writing Paper (rather than non-recycled items) that consists of at least thirty percent (30%), by fiber weight, postconsumer fiber, consistent with the requirements of the Public Contract Code, Sections 22150 through 22154 and Sections 12200 and 12209, as amended.

4.2.1.4. All Paper Products and Printing and Writing Paper shall be eligible to be labeled with an unqualified recyclable label as defined.

4.2.1.5. Provide records to Zero Waste Sonoma of all Paper Products and Printing and Writing Paper purchases within thirty (30) days of the purchase (both recycled content and non-recycled content, if any is purchased) made by a division or department or employee of the Jurisdiction. Records shall include a copy of the invoice or other documentation of purchase, written certifications, vendor name, purchaser name, quantity
purchased, date purchased, and recycled content (including 222 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 318 of 375 ends

DRAFT
products that contain none), and if non-Recycled-Content Paper Products and/or non-Recycled-Content Printing and Writing Paper are provided, include a description of why RecycledContent Paper Products and/or Recycled-Content Printing and Writing Paper were not provided.

4.3. Requirements for Vendors

4.3.1. All vendors that provide Paper Products (including janitorial Paper Products) and Printing and Writing Paper to Jurisdiction shall:

4.3.1.1. Provide Recycled-Content Paper Products and RecycledContent Printing and Writing Paper that consists of at least thirty percent (30%), by fiber weight, postconsumer fiber, if fitness and quality are equal to that of non-recycled item.

4.3.1.2. Only provide Paper Products and Printing and Writing Papers that meet Federal Trade Commission Recyclability standard as defined in Title 16 Code of Federal Regulations Section 260.12 (2013).

4.3.1.3. Certify in writing, under penalty of perjury, the minimum percentage of postconsumer material in the Paper Products and Printing and Writing Paper offered or sold to the Jurisdiction.

This certification requirement may be waived if the percentage of postconsumer material in the Paper Products, Printing and Writing Paper, or both can be verified by a product label, catalog, invoice, or a manufacturer or vendor internet website.

4.3.1.4. Certify in writing, under penalty of perjury, that the Paper Products and Printing and Writing Paper offered or sold to the Jurisdiction is eligible to be labeled with an unqualified recyclable label as defined

4.3.1.5. Provide records to Zero Waste Sonoma of all Paper Products and Printing and Writing Paper purchased from the vendor within thirty (30) days of the purchase (both recycled-content and non-recycled content, if any is purchased) made by a division or department or employee of the Jurisdiction. Records shall include a copy of the invoice or other documentation of purchase, written certifications as required in Section 4.2.A.3-4 for recycled-content purchases, purchaser name, quantity purchased, date purchased, and recycled content (including products that contain none), and if non-Recycled-Content Paper Products and/or non Recycled-Content Printing and Writing Paper are provided, include a description of why RecycledContent Paper Products and/or Recycled-Content Printing and Writing Paper were not provided.
223 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 319 of 375 ends

DRAFT

4.3.2. All vendors providing printing services to the Jurisdiction via a printing contract or written agreement, shall use Printing and Writing Paper that consists of at least thirty percent (30%), by fiber weight, postconsumer fiber.

4.4. Recovered Organic Waste Product Procurement (SB 1383 Model Language for Jurisdiction Compliance)

4.4.1. Procurement Target

4.4.1.1. Jurisdiction will annually procure for use or giveaway a quantity of Recovered Organic Waste Products that meets or exceeds its Annual Recovered Organic Waste Product
Procurement Target.

4.4.1.2. To be eligible to meet the Annual Recovered Organic Waste Product Procurement Target, products that may be procured include the following SB 1383 eligible Compost, SB 1383 eligible Mulch, Renewable Gas (in the form of transportation fuel, electricity, or heat), and Electricity Procured from Biomass Conversion.

4.4.2. Requirements for City Departments

4.4.2.1. Compost and SB 1383 Eligible Mulch procurement. Divisions and departments responsible for landscaping maintenance, renovation, or construction shall:

4.4.2.1.1. Use Compost and SB 1383 Eligible Mulch
produced from recovered Organic Waste, as
defined in Section 2.8 and 2.R of this Policy, for
landscaping maintenance, renovation, or
construction, as practicable, whenever available,
and capable of meeting quality standards and
criteria specified. SB 1383 Eligible Mulch used for
land application must meet or exceed the physical
contamination, maximum metal concentration and
pathogen density standards specified in 14 CCR
Section 17852(a)(24.5)(A)(1) through (3).

4.4.2.1.2. When the City uses Compost and SB 1383 Eligible Mulch and the applications are subject to the City's
Water Efficient Landscaping

4.4.2.1.3. Ordinance (WELO), pursuant to Sebastopol
Municipal Code Section 15.36.010, the City will
comply with one of the following, whichever is
more stringent, (i) the City’s WELO, Code Section
224 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 320 of 375 ends

DRAFT

15.36.010, if more stringent than the State's Model
Water Efficient Landscape Ordinance (MWELO),
or (ii) Sections 492.6 (a)(3)(B), (C), (D), and (G)
of the State's Model Water Efficient Landscape
Ordinance, Title 23, Division 2, Chapter 2.7 of the
CCR, as amended September 15, 2015, which
requires the submittal of a landscape design plan
with a "Soil Preparation, Mulch, and Amendments
Section."

4.4.2.1.4. For landscape installations, Compost at a rate of a minimum of 4 cubic yards per 1,000 square feet of
permeable area shall be incorporated to a depth of
six (6) inches into the soil. Soils with greater than
six percent (6%) organic matter in the top six (6)
inches of soil are exempt from adding Compost
and tilling.

4.4.2.1.5. Apply a minimum three- (3-) inch layer of mulch on all exposed soil surfaces of planting areas
except in turf areas, creeping or rooting
groundcovers, or direct seeding applications where
mulch is contraindicated. To provide habitat for
beneficial insects and other wildlife, leave up to
five percent (5%) of the landscape area without
mulch. Designated insect habitat must be included
in the landscape design plan as such.

4.4.2.1.6. Procure mulch materials made from recycled or post-consumer materials rather than inorganic
materials or virgin forest products unless the
recycled post-consumer organic products are not
locally available. Organic mulches are not required
where prohibited by local Fuel Modification Plan
Guidelines or other applicable local ordinances.

4.4.2.1.7. For all mulch that is land applied, procure SB 1383 Eligible Mulch that meets or exceeds the physical
contamination, maximum metal concentration, and
pathogen density standards for land applications.

The mulch must also be produced at a permitted
composting facility, transfer station, or landfill.

The procured mulch cannot be from a chipping and
grinding operation, as specified in 12 CCR Section
18993.1 (f)(4).

4.4.2.1.8. Keep records, including invoices or proof of Recovered Organic Waste Product procurement
225 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 321 of 375 ends

DRAFT
(either through purchase or acquisition), and
submit records to Zero Waste Sonoma, upon
completion of project. Records shall include
general procurement records, including:

4.4.2.1.9. General description of how and where the product was used and applied, if applicable;

4.4.2.1.10. Source of product, including name, physical location, and contact information for each entity,
operation, or facility from whom the Recovered
Organic Waste Products were procured;

4.4.2.1.11. Type of product;

4.4.2.1.12. Quantity of each product; and,

4.4.2.1.13. Invoice or other record demonstrating purchase or procurement.

4.4.2.2. For Compost and SB 1383 Eligible Mulch provided to residents through giveaway events or other types of distribution methods, keep records of the Compost and SB 1383 Eligible Mulch
provided to residents. Records shall be maintained and
submitted to Zero Waste Sonoma in accordance with the
requirements specified in Section 3.2.A.3.

4.4.2.3. For procurement of SB 1383 Eligible Mulch, maintain an updated copy of the ordinance or enforceable mechanism(s) requiring that the mulch procured by the City or Direct Service Provider meets the land application standards specified, as it may be amended from time to time, as currently reflected in Municipal Code Section

4.4.2.4. When Procurement of Recovered Organic Waste Products occurs through a Direct Service Provider, enter into a written contract or agreement or execute a purchase order with
enforceable provisions that includes: (i) definitions and specifications for SB 1383 Eligible Mulch, Compost,
Renewable Gas, and/or Electricity Procured from Biomass Conversion; and, (ii) an enforcement mechanism (e.g.,
termination, liquidated damages) in the event the Direct Service Provider is not compliant with the requirements.

4.4.2.5. Renewable Gas procurement (used for fuel for transportation, electricity, or heating applications). For Renewable Gas procurement, Jurisdiction shall:

4.4.2.5.1. Procure Renewable Gas made from recovered
226 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 322 of 375 ends

DRAFT
Organic Waste for transportation fuel, electricity,
and heating applications to the degree that it is
appropriate and available for the Jurisdiction and
to help meet the Annual Recovered Organic Waste
Product Procurement Target.

4.4.2.5.2. Keep records in the same manner for the amount of Renewable Gas procured and used by the
Jurisdiction, including the general procurement
record information specified in Section 3.2.A.3.a,
and submit records to Zero Waste Sonoma on a
quarterly schedule. The quarterly schedule shall be
as follows: Renewable Gas records are to be
provided to Zero Waste Sonoma by April 15 for
January 1 through March 31, July 15 for April 1
through June 30, October 15 for July 1 through
September 30, and January 15 for October 1
through December 31. Jurisdiction shall
additionally obtain the documentation and submit
records specified.

4.4.3. Requirements for Direct Service Providers

4.4.3.1. Direct Service Providers of landscaping maintenance, renovation, and construction shall:

4.4.3.1.1. Use Compost and SB 1383 Eligible Mulch, as
practicable, produced from recovered Organic
Waste, as defined in Section 2.8 and 2.R of this
Policy, for all landscaping renovations,
construction, or maintenance performed for the
Jurisdiction, whenever available, and capable of
meeting quality standards and criteria specified.

SB 1383 Eligible Mulch used for land application
shall comply with 14 CCR, Division 7, Chapter 12,
Article 12 and must meet or exceed the physical
contamination, maximum metal concentration and
pathogen density standards specified in 14 CCR
Section 17852(a)(24.5)(A)(1) through (3).If Direct
Service Provider is subject to the City's WELO

4.4.3.1.2. pursuant to Jurisdiction Code Section 15.36.010 and Sections 492.6 (a)(3)(B), (C), (D), and (G) of
the State's MWELO, Title 23, Division 2, Chapter

2.7 of the CCR, as amended September 15, 2015,
which requires the submittal of a landscape design
plan with a "Soil Preparation, Mulch, and
Amendments Section.”
227 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 323 of 375 ends

DRAFT

4.4.3.1.3. For landscape installations, Compost at a rate of a minimum of 4 cubic yards per 1,000 square feet of
permeable area shall be incorporated to a depth of
six (6) inches into the soil. Soils with greater than
six percent (6%) organic matter in the top six (6)
inches of soil are exempt from adding Compost
and tilling.

4.4.3.1.4. Apply a minimum three- (3-) inch layer of mulch on all exposed soil surfaces of planting areas
except in turf areas, creeping or rooting
groundcovers, or direct seeding applications where
mulch is contraindicated. To provide habitat for
beneficial insects and other wildlife, leave up to
five percent (5%) of the landscape area without
mulch. Designated insect habitat must be included
in the landscape design plan as such.

4.4.3.1.5. Procure organic mulch materials made from
recycled or post consumer materials rather than
inorganic materials or virgin forest products unless
the recycled post-consumer organic products are
not locally available. Organic mulches are not
required where prohibited by local Fuel
Modification Plan Guidelines or other applicable
local ordinances.

4.4.3.1.6. For all mulch that is land applied, procure SB 1383 Eligible Mulch that meets or exceeds the physical
contamination, maximum metal concentration, and
pathogen density standards for land applications
specified.

4.4.3.1.7. Keep and provide records of Procurement of
Recovered Organic Waste Products (either through
purchase or acquisition) to Recordkeeping
Designee, upon completion of projects.

Information to be provided shall include general
description of how and where the product was used
and if applicable, applied; source of product,
including name, physical location, and contact
information for each entity, operation, or facility
from whom the Recovered Organic Waste
Products wereprocured, type of product, quantity
of each product; and invoice or other record
demonstrating purchase or procurement.

4.4.3.2. Direct Service Provider of Organic Waste collection services 228 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 324 of 375 ends

DRAFT
shall:

4.4.3.2.1. Provide a specified quantity of Compost or SB 1383 Eligible Mulch to Jurisdiction and its
customers via periodic "giveaways" as specified in
a franchise agreement or other agreement.

4.4.3.2.2. Keep and provide records to the City including the following dates provided, source of product
including name, physical location and contact
information for each entity, operation or facility
from whom the Recovered Organic Waste
Products were procured, type of product, quantity
provided; and invoice or other record or
documentation demonstrating purchase,
procurement, or transfer of material to giveaway
location.

4.5. Energy Efficient and Water Saving Products

4.5.1. Purchase energy-efficient equipment with the most up-to-date energy efficiency functions. This includes, but is not limited to, high efficiency space heating systems and high efficiency space cooling equipment.

4.5.2. Replace inefficient interior lighting with energy-efficient equipment.

Replace inefficient exterior lighting, street lighting and traffic signal lights with energy-efficient equipment. Minimize exterior lighting where possible to avoid unnecessary lighting of architectural and landscape features while providing adequate illumination for safety and accessibility.

4.5.3. Purchase U.S. EPA Energy Star certified products when available. When Energy Star labels are not available, choose energy-efficient products that are in the upper 25% of energy efficiency as designated by the Federal Energy Management Program.

4.5.4. Purchase U.S. EPA WaterSense labeled water-saving products when available and practicable. This includes, but is not limited to, highperformance fixtures like toilets, low-flow faucets and aerators, and upgraded irrigation systems.

4.6. Green Building Products and Practices

4.6.1. The City will comply with the adopted Green Building Code guidelines and green points system for the construction of all permanent municipal building and renovation projects which exceed 2,000 square feet in area.

4.6.2. In accordance with California Public Contract Code, Sec. 10409, purchase re refined lubricating and industrial oil for use in its vehicles 229 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 325 of 375 ends

DRAFT
and other equipment, as long as it is certified by the American Petroleum Institute (API) as appropriate for use in such equipment. This section does not preclude the purchase of virgin-oil products for exclusive use in vehicles whose warranties expressly prohibit the use of products containing recycled oil.

4.6.3. When specifying asphalt, concrete, aggregate base or portland cement concrete for construction projects, use recycled, reusable or reground materials.

4.6.4. Specify and purchase recycled content traffic control products, including signs, cones, parking stops, delineators, channelizers and barricades.

4.7. Landscaping Products and Practices

4.7.1. Employ Russian River Friendly Landscaping or sustainable landscape management techniques for all landscape renovations, construction and maintenance, including workers and contractors providing landscaping services, including, but not limited to, integrated pest management, grasscycling, drip irrigation, computerized central irrigation linked with the local weather station, composting, and procurement and use of mulch and compost that give preference to those produced from regionally generated plant debris and/or food scrap programs.

4.7.2. Choose a Russian River-Friendly Qualified Landscape Professional for landscape design and maintenance services. Training and qualifications shall include landscaping locally, landscaping for less to the landfill, nurturing the soil, conserving water, conserving energy, protecting water and air quality, and creating wildlife habitat.

4.7.3. Select plants to minimize waste by choosing species for purchase that are appropriate to the microclimate, species that can grow to their natural size in the space allotted them, and perennials rather than annuals for color.

Native and drought-tolerant plants that require no or minimal watering once established are preferred.

4.7.4. Hardscapes and landscape structures constructed of recycled content materials are encouraged. Limit the amount of impervious surfaces in the landscape. Permeable substitutes, such as permeable asphalt or pavers, are encouraged for walkways, patios and driveways.

4.8. Household Hazardous Waste and Pollution Prevention Products and Practices

4.8.1. Manage pest problems through prevention and physical, mechanical and biological controls when contractors maintain buildings and landscapes.

Either adopt and implement an Organic Pest Management (OPM) policy and practices or adopt andimplement an Integrated Pest Management (1PM) policy and practices using the least toxic pest control as a last 230 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 326 of 375 ends

DRAFT
resort. Anticoagulant rodenticides shall never be used.

4.8.2. Use products with the lowest amount of volatile organic compounds (VOCs), highest recycled or reused content, low or no formaldehyde and no halogenated organic flame retardants when purchasing building maintenance materials such as paint,. carpeting, adhesives, furniture and casework.

4.8.3. Purchase or require janitorial contractors to supply industrial and institutional cleaning products that meet Green Seal, EPA Safer Choice, or UL/Ecologo certification standards for environmental preferability and performance.

4.8.4. Purchase, or require janitorial contractors to supply, vacuum cleaners that meet the requirements of the Carpet and Rug Institute Green Label/Seal of Approval Program for soil removal, dust containment and carpet fiber retention for indoor air quality protection and performance cleaning standards. Other janitorial cleaning equipment should be capable of capturing fine particulates, removing sufficient moisture so as to dry within 24 hours, operate with a sound level less than 70dBA, and use high efficiency, low-emissions engines.

4.8.5. Purchase paper, paper products, and janitorial paper products that are unbleached or are processed without chlorine or chlorine derivatives.

4.8.6. Prohibit the purchase of products that use polyvinyl chloride (PVC) such as, but not limited to, furniture and flooring.

4.8.7. Prohibit the purchase of food service ware containing per- and polyfluoroalkyl substances (PFAS).

4.8.8. Purchase products and equipment with no lead or mercury whenever possible. For products that contain lead or mercury, preference should be given to those products with lower quantities of these metals and to vendors with established lead and mercury recovery programs. In addition, whenever lead- or mercury-containing products require disposal, products will be disposed in the most environmentally safe manner possible. All fluorescent lamps and batteries will be recycled.

4.8.9. Purchase or specify personal computers, displays, imaging equipment and televisions that meet, at a minimum, all Electronic Product Environmental Assessment Tool (EPEAT) environmental criteria designated as "required" as contained in the IEEE 1680 family of Environmental Assessment Standards.

4.8.10. Purchase or specify office furniture that meets the California Bureau of Household Goods and Services (BHGS) standard Technical Bulletin 117- 2013 for testing upholstered furniture flammability without the use of 231 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 327 of 375 ends

DRAFT
flame retardant chemicals.

4.8.11. Purchase or specify commercial carpeting that meets NSF/ANSI 140 Standard for Sustainable Carpet Assessment and require old carpet that is removed be recycled.

4.8.12. Purchase or specify non-carpet floor coverings that meet NSF/ANSI 332 Standard for Resilient Flooring including vinyl, linoleum and rubber flooring.In conjunction with California State agency requirements, at least 50 percent of the quantity of paint used for architectural projects should contain reused or recycled paint with a recycled content consisting of at least 50 percent post-consumer paint. Reused paint can be acquired from the Sonoma HHW Facility by either visiting the reuse lockers or by prearranging remixed paint in 5-gallon containers in off-white, tan, light grey, or light green.

4.8.13. When replacing vehicles, consider less-polluting alternatives to diesel such as compressed natural gas, bio-based fuels, hybrids, electric batteries, and fuel cells, as available.

4.9. Fiber-only Products

4.9.1. Use paper, paper products and construction products made from nonwood, plant based contents such as agricultural crops and residues.

4.9.2. Priority should be given to reusable food service ware, however, if singleuse food service ware is purchased, it is to be fiber only and BPI certified

4.9.3. Ask vendors to provide proof of compliance with ASTM standards for compostable, biodegradable and degradable plastic products upon request. One acceptable proof of compliance for compostable plastic products will be certification by the Biodegradable Products Institute (BPI).

4.10. Forest Conservation Products

4.10.1. To the greatest extent practicable, do not procure wood products such as lumber and paper that originate from forests harvested in an environmentally unsustainable manner. When possible, give preference to wood products that are certified to be sustainably harvested by a comprehensive, performance-based certification system. The certification system shall include independent third-party audits, with standards equivalent to, or stricter than, those of the Forest Stewardship Council certification.

4.10.2. Encourage the purchase or use of previously used or salvaged wood and wood products whenever practicable
232 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 328 of 375 ends

DRAFT

5. RECORDKEEPING RESPONSIBILITIES

5.1. The department will be the responsible department and will select an employee to act as the Recordkeeping Designee that will be responsible for organizing records pertaining to Procurement of Recovered Organic Waste Products and RecycledContent Paper Products and Recycled-Content Printing and Writing Paper. The Recordkeeping Designee shall communicate frequently with Zero Waste Sonoma to transfer all the required documentation for reporting to CalRecycle.

5.2. The Recordkeeping Designee will do the following to track Procurement of Recovered Organic Waste Products, Recycled-Content Paper Products, and Recycled-Content Printing and Writing Paper:

5.2.1. Collect and collate copies of invoices or receipts (paper or electronic) or other proof of purchase that describe the procurement of Printing and Writing Paper and Paper Products, including the volume and type of all paper purchases; and, copies of certifications and other required verifications from all departments and/or divisions procuring Paper Products and Printing and Writing Paper (whether or not they contain recycled content) and/or from the vendors providing Printing and Writing Paper and Paper Products. These records must be kept as part of Jurisdiction's documentation.

5.2.2. Collect and collate copies of invoices or receipts or documentation evidencing procurement from all departments and divisions procuring Recovered Organic Waste Products and invoices or similar records from vendors/contractors/others procuring Recovered Organic Waste Products on behalf of the Jurisdiction to develop evidence of Jurisdiction meeting its Annual Recovered Organic Waste Product Procurement Target. These records must be kept as part of the Jurisdiction's documentation.

5.2.3. Collect, collate, and maintain documentation submitted by the Jurisdiction, Direct Service Providers, and/or vendors, including the information reported to the Recordkeeping Designee.

5.2.4. Compile an annual report on the Jurisdiction's direct procurement, and vendor/other procurement on behalf of the Jurisdiction, of Recovered Organic Waste Products, Recycled-Content Paper Products, and Recycled-Content Printing and Writing Paper, consistent with the recordkeeping requirements contained in 14 CCR Section 18993.2 for the Annual Recovered Organic Waste Product Procurement Target and 14 CCR Section 18993.4 for Recycled-Content Paper Products and Recycled Content Printing and Writing Paper procurement. This report shall be made available to the Jurisdiction's responsible entity for compiling the annual report to be submitted to CalRecycle (which will include a description of compliance on many other SB 1383 regulatory requirements). The procurement report shall also be shared with Council, JPA or other regulating body annually as evidence of implementing this 233 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 329 of 375 ends

DRAFT
Policy.

6. RESPONSIBILITIES

6.1. The health and safety of workers and citizens is of utmost importance and takes precedence over all other practices. Nevertheless, the duty to act in a fiscally responsible as well as a timely manner is recognized.

6.2. Nothing contained in this policy shall be construed as requiring a department, purchaser or contractor to procure products that do not perform adequately for their intended use, exclude adequate competition, risk the health or safety of workers and citizens, or are not available at a reasonable price in a reasonable period of time

6.3. Nothing contained in this policy shall be construed as requiring the jurisdiction, department, purchaser, or contractor to take any action that conflicts with local, state or federal requirements.

6.4. The jurisdiction has made significant investments in developing a successful recycling system and recognizes that recycled content products are essential to the continuingviability of that recycling system and for the foundation of an environmentally sound production system. Therefore, to the greatest extent practicable, recycled content shall be included in products that also meet other specifications, such as chlorine free or bio based.

7. IMPLEMENTATION

7.1. The City Manager shall implement this policy in coordination with other appropriate personnel.

7.2. Require successful vendors to certify in writing that the environmental attributes claimed in competitive proposals are accurate. In compliance with State law, vendors shall be required to specify the minimum or actual percentage of recovered and post-consumer material in their products, even when such percentages are zero.

7.3. Upon request, buyers making the selection from competitive procurement process shall be able to provide justification for product choices that do not meet the environmentally preferable purchasing criteria in this policy.

7.4. Include businesses certified by the Bay Area Green Business Program in purchasing requests for products and services.

7.5. Encourage vendors, contractors and grantees to comply with applicable sections of this policy for products and services provided.

8. PROGRAM EVALUATION
234 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 330 of 375 ends

DRAFT

8.1. The City Manager shall periodically evaluate the success of this policy's implementation

9. EXCEPTIONS
Every effort will be made to adhere to the Environmentally Preferable Purchasing Policy to the extent possible, recognizing that certain procurement decisions such as for cleaning products, janitorial equipment, and electronics may be outside of the City's authority.

IX. PUBLIC PROJECTS
Accounting procedures were established by the California Uniform Public Construction Cost Accounting Commission, and are detailed in the Commission's Accounting Policies and Procedures Manual. Public Contract Code (PCC) §22000-22050 describe both the informal and formal bidding procedures, project dollar thresholds, bidding and noticing requirements, rejection of bids, the definition and procedure for emergency Public Projects, and other mandates related to California Uniform Public Construction Cost Accounting Act (CUPCCAA).

Rather than the City's Purchasing Policy, Public Projects are subject to definitions, terms and conditions specified in the CUPCCAA, PCC Section 2200, et seq., as may be amended from time to time. When PCC requirements contradict City requirements, the PCC will apply. PCC § 22002(c), as may be amended, defines a "Public Project" as:
(c) "Public project" means any of the following:
1) Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility.
2) Painting or repainting of any publicly owned, leased, or operated facility. 3) In the case of a publicly owned utility system, "public project" shall include only the construction, erection, improvement, or repair of dams, reservoirs, power-plants, and electrical transmission lines of 230,000 volts and higher. (d) "Public project" does not include maintenance work. For purposes of this section, "maintenance work" includes all of the following:
1) Routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes. 2) Minor repainting.
3) Resurfacing of streets and highways at less than one inch. 4) Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems. 235 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 331 of 375 ends

DRAFT
5) Work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems, including, but not limited to, dams, reservoirs, power-plants, and electrical transmission lines of 230,000 volts and higher. (e) For purposes of this chapter, "facility" means any plant, building, structure, ground facility, utility system, subject to the limitation found in paragraph (3) of subdivision (c), real property, streets and highways, or other public work improvement. (f) Every November of each year, Department of Public Works will send out a written notice to all constructions trade journals designated for the City under PCC §22036(c), inviting all licensed contractors to register on the City’s Bidders List for Notification of Informal Bids for the following calendar year. A qualified bidders’ list can be obtained at the Public Works Department.
(g) City Council adopted Resolution No. 5763 electing that the City be subject to the CUPPCCAA.
(g) Projects valued at less than $200,000, or as may be revised from time to time by the State of California, may be let by informal bidding, in accordance with the informal bidding procedures of the Uniform Public Construction Cost Accounting Act. Projects valued at less than $60,000, or as may be revised from time to time by the State of California, may be performed by City forces or be let by informal quotes and negotiated price.

The following diagram illustrates the steps to follow for construction contracts:

Construction Contracts for Public Projects
“No-Bid”
Less than $60,000*
“Informal”
Between $60,000 and
$200,000*
“Formal”
More than $200,000*
Staff may select
contractor and should
request quotes from
more than one
contractor. Staff are
encouraged to use
local business when
possible
Advertise and select
lowest responsible
bidder by “Informal”
process
City must adopt plans
and specifications,
and authorize
advertisement to bid.

Advertise and select
lowest responsible
bidder by “Formal”
process
236 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 332 of 375 ends

DRAFT
* Dollar limits as may be revised, from time to time by the State of California, shall apply.

EXCEPTIONS TO COMPETITIVE BIDDING
Competitive bidding may be waived in the case of an emergency as defined above or when:

The items or services to be furnished are in such short supply that there is no competition.

Where the specifications or other restrictions limit the number of prospective suppliers.

Where the skill or knowledge of a particular individual is sought. “Piggy-backing” or consolidating its procurement with that of another agency or entity constituted for governmental purposes; provided that the commodities or contractual services to be procured have been subjected to competitive bidding by said other agency or entity and documentation of such competitive bidding exists.

CHANGE ORDERS, TASK ORDERS, AND CONTRACT AMENDMENTS
A substantial change to a Purchase Order or Contract (i.e., pricing, terms and conditions, specifications and/or scope of work) shall be documented as a Change Order, Task Order, or Contract Amendment.
a. Department Heads or their designees may sign Change Orders, Task Orders, and Contract Amendments for purchases and contracts up to $5,000.
b. When the initial purchase or contract exceeds $5,000, the signature authority for that purchase shall be the City Manager or his/her designee. c. Change Orders, Task Orders, and Contract Amendments generally should not exceed 10% of the original contract amount, unless authorized by the City Manager or his/her designee. A new scope of work and/or a new contract may be required when the change City Manager has the
authority to sign
contract on behalf of
the City. The City
Manager reports the
contract to the
Council
City Manager has the
authority to award
contract to lowest
responsible bidder.

The City Manager
reports the contract to
the Council
Council awards the
project to the lowest
responsible bidder
Contractor submits
invoice and payment
is processed
Contractor submits
invoice and payment
is processed
Contractor submits
invoice and payment
is processed in
accordance with
Contact terms
237 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 333 of 375 ends

DRAFT
exceeds 10% of the original amount. The signature authority for this purchase shall be the City Manager or his/her designee
d. A Change Order, Task Order or Contract Amendment is not required when taxes, shipping and/or handling cause a purchase to exceed the authorized (Purchase Order) amount; the signatory limit may also be exceeded in that circumstance.

This section replaces and rescinds Council Policy #27 (Change Orders), Administrative Policy # 2 (Work Order Procedures), #3 (Small Purchase Order Procedures) and #17 (Processing Invoices) X. URGENT AND EMERGENCY PURCHASES
Sound judgment shall be used in keeping urgent and emergency purchases to an absolute minimum. Specific procedures for managing these purchases shall apply, as determined by the Purchasing Agent.
a. Urgent Purchases – Immediate purchases of material, supplies, equipment, vehicle and services may be made when an urgent circumstance (as defined in the Purchasing Policies) exists, and procurement should not be delayed by use of normal competitive and financial procedures. Urgent purchases of up to $5,000 shall be authorized by the Department Head or designee; the City Manager may authorize urgent purchases up to $50,000. Urgent purchases shall be followed, as soon as practical, with submission of a written justification for the purchase having been made outside normal procedures. b. Emergency Purchases – In an emergency (as defined in the Purchasing Policy), the City Manager or designee may authorize the immediate purchase of material, supplies, equipment, and services, including those in excess of his/her City Council-approved signature threshold. Such purchases shall be followed, as soon as practical, with submission of a written justification for the purchase having been made outside normal procedures. City Council shall be notified, at its next regular meeting, of any emergency purchases in excess of $50,000.
a. Poor and/or lack of planning does not constitute justification for an urgent and emergency condition. An urgent and/or emergency condition is defined as “a situation that creates a threat to public health, welfare, safety, or public property such as floods, epidemics, riots, fire, unexpected equipment failures, or such other reasons as may be determined by the City Manager or his/her designee.” An urgent and emergency purchase may be made when the existence of an urgent and/or emergency condition creates an immediate and serious need for goods or services that cannot be met through normal procurement methods.
c. In the case of a disaster or for civil defense, nothing contained in this document shall limit the authority of the City Manager to make purchases and take such other emergency steps as are, or may be, authorized by the City Council, including opening a line or lines of credit to accommodate necessary purchases.
238 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 334 of 375 ends

DRAFT
d. Emergency purchases related to Public Projects are authorized under jurisdiction of the Public Contract Code/UCCAP, and are subject to definitions, regulations and processes that vary from City policy. Emergency purchases to repair or replace public facilities may proceed prior to adoption of the working details, drawing, plans and specifications, only when in accordance with the UCAAP definition and requirements. Staff responsible for Public Projects shall be held accountable for compliance with these requirements. e. Should any urgent or emergency purchase cause any budget line item to exceed the approved budget, the Department shall request City Manager approval to exceed and amend the budget, subject to subsequent City Council approval of an additional budget appropriation or budget amendment to cover the purchase. This section runs concurrent with the Amended City Council Policy #69 (Financial Policies).

XI. DISPOSAL OF SURPLUS PROPERTY
The City Manager or designee is authorized to exchange, trade-in, sell and dispose of surplus property having salvage value in the open market, by public auction, by competitive sealed bids or by exchange or trade in for new goods. The sale or lease of surplus property to a governmental, public or quasi-public agency may be without advertisement for or receipt of bids. Employees are not eligible to receive or purchase surplus property, however, employees may receive personalized items, and receive or purchase at market value items considered to be memorial or commemorative in nature, subject to City Manager approval. This section replaces and rescinds Council Policy #3 (Disposal of Surplus City Property to Qualified Charitable Organizations) XII. PROPERTY WITH NO SALVAGE VALUE
Surplus property with no salvage value, as determined by the Department and recommended by the Administrative Services Director to the City Manager or designee, shall be disposed of in a manner that salvages recyclable components, if practical.

XIII. UNCLAIMED, SEIZED OR ABANDONED PROPERTY
The Department is hereby authorized to make recommendation to the City Manager to sell or dispose of all goods in the possession or custody of the Police Department which are unclaimed, seized and/or abandoned and may be legally disposed of by the City.

XIV. DONATIONS OF SURPLUS PROPERTY
Upon approval in advance in writing by the Administrative Services Director with the City Manager approval, surplus property may be donated to governmental, public or quasi-public agencies, charitable or non-profit organizations on a first-come first-served basis to be utilized for non-profit purposes.

XV. REPORTING
The Department shall provide regular reports to the City Manager indicating surplus property disposed of, the method of disposal, and the amounts received from disposal, and shall maintain 239 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 335 of 375 ends

DRAFT
records for public inspection relative to the disposal of surplus property for a period of time in compliance with State law and the City’s records retention schedule. Annual reports shall be provided to City Council accordingly.

XVI. CAPITAL EQUIPMENT
Purchase of equipment or furniture at a unit cost of $10,000 or greater with a useful life greater than 5 years shall be capitalized. At the time of receipt, an asset number shall be issued and affixed to the asset.

XVII. INFORMATION TECHNOLOGY-RELATED PURCHASES
To keep costs under control and assure implemented technologies work together harmoniously and meet staff needs, the City shall work with our I.T consultant to standardize and control all purchases of equipment, including but not limited to desktops, laptops, and other electronic devices.
a. With limited exceptions, the department shall include in its annual budget funding to support technology purchases. While the Information Technology consultant may provide support for specific departmental technology needs, those needs shall be funded through department budgets.
b. The list of those authorized by the City Manager to request technology purchases shall be maintained by the Administrative Services (Finance) Department.

XVIII. CREDIT CARDS
The City Manager or designee may acquire credit cards in the name of the City for use by designated City Department Heads. The City shall maintain a written log of credit cards.

Department Heads assigned credit cards will sign an acknowledgement form (Exhibit A) agreeing to the limitations of the card use as described below.

May be used to charge necessary supplies and equipment, authorized travel, food and lodging for the person in possession of the credit card and any other City employee.

May be used for the purchase of gas, oil, supplies, and repairs for City vehicles.

May be used to purchase conference/seminar registration, airline, hotel, meals, car rental costs for the City Council, City Manager, or other City employee.

May be acquired for vendors (i.e. Office Depot, Sebastopol Hardware, etc.) May not be used for personal benefit or personal use.

May not be issued to members of the City Council. They will be reimbursed according to the City’s established Reimbursement Policy.
240 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 336 of 375 ends

DRAFT
Must be returned to the City upon termination or resignation prior to receiving their last paycheck.

Misuse of the credit card privilege can result in disciplinary action, including termination.

Receipts for all credit card expenditures must be promptly turned into the Administrative Services (Finance) Department along with appropriate documentation stating the purpose of the expenditure.

Credit card limits are as follows:

City Manager $10,000
Assistant City Manager/City Clerk $10,000
Administrative Services Director $10,000
Planning Director $5,000
Building Official $5,000
Engineering Manager $5,000
Police Chief $5,000
Fire Chief $5,000
Public Works Superintendent $5,000
This section replaces and rescinds Council Policy #71 (Credit Card Use Policy) XIX. PURCHASE ORDERS
A signed purchase order will be made for all expenditures in excess of $5,000 and a copy will be given to the Administrative Services (Finance) Department. Purchase orders should be approved (signed by the City Manager or his/her designee) prior to making the actual purchase or commitment of funds. It is the responsibility of each department directors/managers to verify that the funding amount of the requested purchase is available before authorizing the purchase order.

XX. PETTY CASH FUND
A Petty Cash fund of $200 will be established for each City department. Expenditures up to $20 may be made for postage, freight, permit fees, licenses and similar charges, and employee expenses. In each instance a written receipt for payment is required. The Administrative Services Director or designee will be responsible for the Petty Cash Fund.

XXI. PREVAILING WAGES
State Law requires that contractors pay their workers "prevailing wages" when a project is a "public work". The meaning of "public works" is defined in the California Labor Code Section 1720-1743. Therefore, the City will affirmatively state in all "public works" contracts over $1,000 that contractors are required to pay their workers "prevailing wages". 241 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 337 of 375 ends

DRAFT
XXII. GRANT COMPLIANCE
Grant-required language will be incorporated in bid documents, professional services agreements, equipment supply contracts and construction contracts as needed. City contracts will provide language required to be in all subcontracts and disclosure of an audit requirement. 242 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 338 of 375 ends

DRAFT

EXHIBIT A

CITY OF SEBASTOPOL CREDIT CARD HOLDER AGREEMENT
Employee: _________________________ Department: ______________________ (Cardholder)
The Cardholder has been issued a City credit card and hereby agrees to comply with all terms and conditions set forth in the City’s Purchasing policy, including but not limited to:

1. Official Use Only. Charging personal expenses on City cards is a misuse of public funds even if the intent is to reimburse the City at a later time and may result in disciplinary action, including termination, at the City Manager’s discretion.

2. Timely, Accurate and Supported Payments. Credit card payments will be processed on a timely basis, and adequate supporting documentation (such as vendor order forms, receipts, invoices and credit card receipts) will be retained for all charges and submitted to the Administrative Services (Finance) Department.

3. Disputed Charges. It is the responsibility of the cardholder to immediately notify the vendor and issuing bank of any disputed charges.

4. Lost or Stolen Cards. The issuing bank and the Administrative Services (Finance) Department will be notified immediately of a lost or stolen card. Failure to do so could make the Cardholder responsible for any fraudulent use of the card.

5. Surrender Upon Request or Separation. The credit card will be immediately surrendered upon separation from the City or upon request of the City Manager or designee. Use of the credit card for any purpose after its surrender is prohibited. The bottom section of this form will be signed upon return of the credit card.

6. Credit Card Limit. The credit limit of this card is $___________. ____________________________________________
Cardholder Signature Date

RETURN OF CREDIT CARD UPON SEPARATION FROM CITY EMPLOYMENT I HEREBY SURRENDER the credit card issued to me by the City of Sebastopol to the Administrative Services Director. I declare that all outstanding charges on the credit card are for official City business and will be paid through established procedures. _____________________________ ______________________________ Cardholder Signature Date Administrative Services Director Date
243 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 339 of 375 ends

DRAFT

INVESTMENT POLICY
Effective September 1, 2017

OVERVIEW
This policy describes the parameters for investing government funds and identifies the investment objectives, preferences or tolerance for risk, constraints on the investment portfolio, and how the investment program will be managed and monitored. The document serves as a communication tool for staff, elected officials, the public, rating agencies, bondholders, and any other stakeholders on investment guidelines and priorities. An investment policy enhances the quality of decision making and demonstrates a commitment to the fiduciary care of public funds, making it the most important element in a public funds investment program.

I. Governing Authority
The investment program shall be operated in conformance with governing legislation and other legal requirements.

II. Scope
This policy applies to the investment of all funds, excluding the investment of employees' retirement funds if applicable.
a. Pooling of Funds - Except for cash in certain restricted and special funds, the City will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration.

Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles.

III. General Objectives
The primary objectives of investment activities shall be safety, liquidity, and return:
 SAFETY - Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk.
a. Credit Risk - The City will minimize credit risk, which is the risk of loss of all or part of the investment due to the failure of the security issuer or backer, by:
• Limiting investments to the types of securities listed in Section VII of this Investment Policy.
• Pre-qualifying and conducting ongoing due diligence of the financial institutions, broker/dealers, intermediaries, and advisers with which the City will do business in accordance with Section V.
• Diversifying the investment portfolio so that the impact of potential losses from any one type of security or from any one individual issuer will be minimized. 244 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 340 of 375 ends

DRAFT
b. Interest Rate Risk - The City will minimize interest rate risk, which is the risk that the market value of securities in the portfolio will fall due to changes in market interest rates, by:
• Structuring the investment portfolio so that security maturities match cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity.
• Investing operating funds primarily in shorter-term securities, money market mutual funds, or similar investment pools and limiting individual security maturity as well as the average maturity of the portfolio in accordance with this policy (see section VIII).
 LIQUIDITY - The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity). Alternatively, a portion of the portfolio may be placed in money market mutual funds or local government investment pools which offer sameday liquidity for short-term funds.  RETURN - The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. The core investments are limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall generally be held until maturity with the following exceptions:
• A security with declining credit may be sold early to minimize loss of principal; • Selling a security and reinvesting the proceeds that would improve the quality, yield, or target duration in the portfolio may be undertaken;
• Unanticipated liquidity needs of the portfolio require that the security be sold.

IV. Standards of Care

1. Prudence
The standard of prudence to be used by investment officials shall be the "uniform prudent investor act" standard and shall be applied in the context of managing an overall portfolio.

Investment officers acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and the liquidity and the sale of securities are carried out in accordance with the terms of this policy.

2. Ethics and Conflicts of Interest
Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees 245 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 341 of 375 ends

DRAFT
and investment officials shall disclose any material interests in financial institutions with which they conduct business, in accordance with applicable laws. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the City.

3. Delegation of Authority
Authority to manage the investment program is granted to the Finance Director.

Responsibility for the operation of the investment program is hereby delegated to the Finance Director, who shall act in accordance with established written procedures and internal controls for the operation of the investment program consistent with this investment policy. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Finance Director. The Finance Director shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials.

V. Authorized Financial Institutions, Depositories, and Broker/Dealers

1. Authorized Financial Institutions, Depositories, and Broker/Dealers A list will be maintained of financial institutions and depositories authorized to provide investment services. In addition, a list will be maintained of approved security broker/dealers selected by creditworthiness and/or other factors, such as FINRA broker check.

All financial institutions and broker/dealers who desire to become qualified for investment transactions must supply the following as appropriate:
• Audited financial statements demonstrating compliance with state and federal capital adequacy guidelines
• Proof of Financial Industry Regulatory Authority (FINRA) certification (not applicable to Certificate of Deposit counterparties)
• Proof of state registration
• Completed broker/dealer questionnaire (not applicable to Certificate of Deposit counterparties)
• Certification of having read and understood and agreeing to comply with the City’s investment policy.
• Evidence of adequate insurance coverage.

An annual review of the financial condition and registration of all qualified financial institutions and broker/dealers will be conducted by the Finance Director.

VI. Safekeeping and Custody

1. Delivery vs. Payment
All trades of marketable securities will be executed by delivery vs. payment (DVP) to ensure that securities are deposited in an eligible custody account prior to the release of funds.

2. Safekeeping
246 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 342 of 375 ends

DRAFT
Securities will be held by an independent third-party custodian selected by the entity as with all securities held in the City’s name. The safekeeping institution shall annually provide a copy of their most recent report on internal controls (Statement of Auditing Standards No. 70, or SAS 70).

3. Internal Controls
The Finance Director shall establish a system of internal controls, which shall be documented in writing. The internal controls shall be reviewed annually by the Budget Subcommittee, where present, and with the independent auditor. The controls shall be designed to prevent the loss of public funds arising from fraud, employee error, mis-representation by third parties, unanticipated changes in financial markets, or imprudent actions by employees and officers of the City.

VII. Suitable and Authorized Investments

1. Investment Types – The following investments will be permitted by this policy:
• U.S. Treasury obligations which carry the full faith and credit guarantee of the United States government;
• U.S. government agency and instrumentality obligations that have a liquid market with a readily determinable market value;
• Certificates of deposit and other evidences of deposit at financial institutions, • Bankers' acceptances;
• Commercial paper, rated in the highest tier (e.g., A-1, P-1, F-1, or D-1 or higher) by a nationally recognized rating agency;
• Corporate Bonds;
• Obligations of state, provincial and local governments and public authorities rated A or better;
• Repurchase agreements whose underlying purchased securities consist of the aforementioned instruments;
• Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolios consist only of dollar-denominated securities; and • Local government investment pools either state-administered or developed through joint powers statutes and other intergovernmental agreement legislation; • Other investment types or asset classes as approved by the City Council.

Investment in derivatives of the above instruments shall require authorization by the City Council.

VIII. Investment Diversification & Constraints

1. Diversification
It is the policy of the City to diversify its investment portfolios. To eliminate risk of loss resulting from the overconcentration of assets in a specific maturity, issuer, or class of securities, all cash and cash equivalent assets in all City’s funds shall be diversified by maturity, issuer, and security type. Diversification strategies shall be determined and revised periodically by the Finance Director for all funds except for the employee retirement fund.
247 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 343 of 375 ends

DRAFT
In establishing specific diversification strategies, the following general policies and constraints shall apply: Portfolio maturities shall be staggered to avoid undue concentration of assets in a specific maturity sector. Maturities selected shall provide for stability of income and reasonable liquidity.
• Liquidity shall be assured through practices ensuring that the next disbursement date and payroll date are covered through maturing investments or marketable U.S. Treasury bills.
• Positions in securities having potential default risk (e.g., commercial paper) shall be limited in size so that in case of default, the portfolio’s annual investment income will exceed a loss on a single issuer’s securities.
• Risks of market price volatility shall be controlled through maturity diversification and duration management.
• The investment committee/investment officer shall establish strategies and guidelines for the percentage of the total portfolio that may be invested in securities other than repurchase agreements, Treasury bills or collateralized certificates of deposit. The committee shall conduct a quarterly review of these guidelines and evaluate the probability of market and default risk in various investment sectors as part of its considerations.

The following diversification limitations shall be imposed on the portfolio:
• Maturity: No more than xx percent of the portfolio may be invested beyond xx months, and the weighted average maturity of the portfolio shall never exceed xx years.
• Default risk: No more than xx percent of the overall portfolio may be invested in the securities of a single issuer, except for securities of the U.S.

Treasury. No more than xx percent of the portfolio may be invested in each of the following categories of securities:
a) Commercial paper,
b) Negotiable certificates of deposit,
c) Bankers’ acceptances,
d) Any other obligation that does not bear the full faith and credit of the United States government or which is not fully collateralized or insured and
• Liquidity risk: Based on liquidity needs, at least xx percent of the overall portfolio shall be invested in overnight instruments or in marketable securities which can be converted to cash within one day.

2. Maximum Maturities
To the extent possible, the [entity] shall attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the [entity] will not directly invest in securities maturing more than five (5) years from the date of purchase or in accordance with governing legislation. The [entity] shall adopt weighted average maturity limitations consistent with the investment objectives.

Reserve funds and other funds with longer-term investment horizons may be segregated into a long-term “core” investment portfolio and invested in securities exceeding five (5) years if the maturities of such investments are made to coincide as nearly as practicable with the expected use of funds. The intent to invest in securities with longer maturities 248 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 344 of 375 ends

DRAFT
shall be disclosed in writing to the legislative body. (See the GFOA Recommended Practice on "Maturities of Investments in a Portfolio" in Appendix.)

3. Competitive Bids
The investment officer shall obtain competitive bids from at least three brokers or financial institutions on all purchases and sales of investment instruments transacted on the secondary market.

IX. Reporting

1. Methods
The investment officer shall prepare an investment report at least quarterly [or monthly], including a management summary that provides an analysis of the status of the current investment portfolio and the individual transactions executed over the last quarter [or month]. This management summary will be prepared in a manner which will allow the [entity] to ascertain whether investment activities during the reporting period have conformed to the investment policy. The report should be provided to the entity's chief administrative officer, the legislative body, the investment committee and any pool participants. The report will include the following:
• Listing of individual securities held at the end of the reporting period including type, acquisition cost, book cost, and market value.
• Realized and unrealized gains or losses resulting from appreciation or depreciation by listing the cost and market value of securities over one-year duration that are not intended to be held until maturity (in accordance with Governmental Accounting Standards Board (GASB) requirements).
• Average weighted return on investments as compared to applicable benchmarks. • Percentage of the total portfolio which each type of investment represents. • A statement that the investment portfolio is in compliance with the investment policy and is meeting the investment policy objectives

2. Performance Standards
The investment portfolio will be managed in accordance with the parameters specified within this policy. The portfolio should obtain a market average rate of return during a market/economic environment of stable interest rates. A series of appropriate benchmarks shall be established against which portfolio performance shall be compared on a regular basis. The benchmarks shall be reflective of the actual securities being purchased and risks undertaken, and the benchmarks shall have a similar weighted average maturity as the portfolio.

3. Marking to Market
The market value of the portfolio shall be calculated at least quarterly [or monthly] and a statement of the market value of the portfolio shall be issued at least quarterly [or monthly]. This will ensure that review of the investment portfolio, in terms of value and price volatility, has been performed consistent with the GFOA Recommended Practice on "Mark-to-Market Practices for State and Local Government Investment Portfolios and Investment Pools." (See GFOA Recommended Practices in Appendix.) In defining market value, considerations should be given to the GASB Statement 31 pronouncement. 249 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 345 of 375 ends

DRAFT
X. Policy Considerations

1. Amendments
This policy shall be reviewed on an annual basis. Any changes must be submitted by the investment officer and approved by the investment oversight committee or authoritative body acting in such capacity.

XI. Approval of Investment Policy
The investment policy shall be formally approved and adopted by the governing body of the [entity] and reviewed annually.

XII. List of Attachments
The following documents, as applicable, are attached to this policy:
• Listing of authorized personnel;
• Relevant investment statutes and ordinances;
• Listing of authorized broker/dealers and financial institutions; • Detailed listing of authorized investment classes, sectors, and types; • Internal Controls;
• Glossary
XIII. Other Documentation
• Master Repurchase Agreement, other repurchase agreements and tri-party agreements, • Broker/Dealer Questionnaire,
• Credit studies for securities purchased and financial institutions used, • Safekeeping agreements,
• Wire transfer agreements,
• Sample investment reports,
• Methodology for calculating rate of return,
250 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 346 of 375 ends

DRAFT

CITY OF SEBASTOPOL
Capitalization and Depreciation Policy #91
The City of Sebastopol has a Capital (Fixed) Asset Accounting System to safeguard a sizeable investment, fix responsibility for the custody of equipment, assist in the formulation of acquisition and retirement policies through accumulation of data regarding prices, sources of supply and useful life, to provide data for financial reporting, to provide record support and to account for reimbursement of depreciation under grants and proprietary service programs, and to provide information for insurance purposes.

Fixed assets are capitalized because they are used in the production of the goods or services provided and sold. Depreciation must be recorded to determine total expenses, user charges, net income, and changes in fund equity. Capital assets also may serve as a basis for debt issued to establish, acquire, or improve a public enterprise.

Capital assets are reported in the applicable proprietary funds or in the general fixed assets account group.

Definitions:

Capital assets are assets of a relatively permanent nature and of significant value, and are broadly classified as property, plant, equipment, and infrastructure (e.g. roads, bridges, sidewalks, and similar items) assets.

Land includes the investment in real estate other than:
a. Structures, pipeline, pump stations, reservoirs and other improvements, and b. Land acquired for pipeline and road purposes.

All land, as above defined, shall be capitalized without regard for significance of cost.

Buildings and improvements are physical property of a permanent nature, examples of which are buildings, structural attachments, storage tanks, reservoirs, pump stations, wells, and parking areas.

Sidewalks, trees and drives in connection with other structures should also be capitalized. Fixtures are permanent attachments to structures which are not intended to be removed and which function as part of the structure, such as boilers, pumps, lighting fixtures or plumbing.

Pipelines include mains, services, valves, hydrants, manholes, and other appurtenances. Paving of ditch lines is also included in plant values.

Equipment includes moveable personal property of a relatively permanent nature and of significant value, such as machines, tools, and vehicles, computer equipment and software.

Relatively permanent is defined as a useful life in excess of one year.

Significant value is defined as a minimum initial cost of more than $10,000 ($25,000 for infrastructure type assets.
251 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 347 of 375 ends

DRAFT
Treatment of Costs Subsequent to Acquisition
Expenditures on fixed assets which are incurred after their original acquisition are defined and recorded as follows:

Maintenance is defined as expenditures, which neither materially add to the value of property nor appreciably prolong its life, but merely keep it in an ordinary efficient operating condition.

Maintenance costs shall not be capitalized.

Capitalized Expenditures are defined as expenditures, which materially add to the value of property or appreciably extend its life. The cost of capitalized expenditures should be added to the book value of the asset where the original cost of a component being improved can be specifically identified. This amount should be written off and the new cost capitalized. Capitalized expenditures are on occasion referred to as betterments. The decision as to whether an expenditure should be capitalized shall be made by an evaluation of engineering, physical, or other relevant factors apart from cost.

Additions are new and separate units, or extensions of existing units, and are considered to be fixed assets. As with betterments the test of significance should be applied.

Alterations are changes in the physical structure or arrangement of fixed assets, the cost of which does not qualify as an increase in fixed assets under the foregoing definitions of betterments and additions. Alterations shall not be capitalized.

Valuation
Reasons for Assigning Value
A dollar-value should be assigned to each fixed asset item for the following reasons:
a. Dollar amounts serve as a control device; they are an important aspect of identification of a particular item or group of items.
b. Dollar amounts make it possible to present to the public the City’s investment in fixed assets. c. Dollar amounts provide a check on the adequacy of the City’s insurance coverage. d. Dollar amounts on individual items provide information for cost accounting.

Valuation Basis
Fixed assets should be accounted for at historical cost, or estimated historical cost if purchased or constructed. Donated fixed assets should be recorded at their estimated fair market value at the date of donation. Surplus property purchases at nominal prices far below actual value are in part donations and should be so valued.

Land Cost
The cost of land includes all expenditures in connection with its acquisition, such as: purchase price; appraisal and negotiation fees; title search fees; surveying fees; cost of consents; relocation costs; condemnation costs; clearing land for use; demolishing or removing structures; and filing costs.

Receipts from the sales of salvage should be credited against the land cost. 252 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 348 of 375 ends

DRAFT
Buildings and Improvements Cost
The cost of structures and improvements includes all expenditures in connection with their acquisitions, such as: purchase price or construction cost; fixtures attached to the structure; architects’ fees; accident or injury costs; payment of damages; insurance during construction; cost of permits and licenses; and net interest cost during construction.

Major outlays for capital assets and improvements are capitalized as projects are constructed.

Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed.

The cost should be reduced for: sale of salvage from materials charged against the construction; discounts, allowance and rebates secured; and amounts recovered through surrender of liability and casualty insurance. Rentals of property during the construction period should be credited to revenue unless otherwise restricted.

Equipment Cost
The cost of equipment includes: purchase price or construction cost less discounts; freight or other carriage charges; sale, use, or transportation taxes; and installation costs.

Construction by Force Account
Fixed assets constructed by the City are recorded in the same manner as those acquired by purchase or construction contract. Costs are initially charged to the accounts of the cost center performing the construction and are then transferred to the project. These costs include direct labor, materials, equipment usage and overhead. Overhead is limited to those items, such as worker’ s compensation and employee group insurance premiums, retirement, sick leave and vacation allowances, which can be distributed on the basis of direct labor. Administrative overhead outside the cost center may be capitalized when clearly related to the construction.

Assets Acquired Under Lease Purchase Agreements
Lease contracts convey property to another for a specific period of time for a specified rent. Lease contracts are accounted for either by the operating method under which periodic payments are charged as expenditures, or by the financing method under which the payments are treated as debt service.

Sources of Information
Information regarding fixed asset additions is best taken from purchase invoices and contracts, even though there is sometimes an undue lag between physical possession of the property and the receipt of these documents. The individual department head controls the purchase, movement, and disposition of assets.

Disposition of Fixed Assets
With City Manager approval, capital assets may be sold, abandoned or traded in on new assets.

Regardless of the manner of disposition or the amount of the proceeds, the asset must be removed from the fixed asset account at its recorded value along with the asset’s accumulated depreciation.

The resulting gain or loss is recorded in the revenue and expense accounts. 253 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 349 of 375 ends

DRAFT
Recordkeeping
Individual Records
An individual record of each unit of accountability should be maintained. Information recorded should include:
a. Date acquired.
b. Classification, such as: Buildings, Vehicles, Machinery & Equipment, etc. c. The vehicle unit number assigned.
d. An abbreviated word description.
e. Cost or other basis.
f. Method by which acquired, such as: lease, grant, donation, purchase. g. Grant from which purchased, if applicable.
h. Vendors name, if purchased.
i. Date and method of retirement.
j. Posting reference.

Optional data might include value for insurance purposes, estimated life, and equipment class code.

Subsidiary Records
For control purposes it is convenient to group detailed records by classification, department, or by location. Such records constitute a subsidiary ledger to the fixed asset control accounts.

Depreciation
Depreciation, depletion, or amortization of capital assets must be recorded to determine the total expenses, net income, and changes in fund equity. In addition, as an option, depreciation on fixed assets acquired by contributed capital can be closed to the contributed capital account. This method should be considered when there is no obligation and the policy is not to replace the fixed assets with future contributed capital. In such circumstances, the contributed capital rather than the retained earnings account is decreased by the related depreciation expense.

Depreciation is computed using the straight-line method over the estimated years of useful life at the time the asset is placed in service. Useful life shall be determined by the Public Works Superintendent, Finance Director or City Manager or his/her designee, as appropriate, using the following guidelines:

Assets Years
Buildings 30
Building improvements 15-20
Public Domain Infrastructure 50
System Infrastructure 50-100
Vehicles 7
Office Equipment 3-7
Computer Equipment 3-5
Once established, the useful life may be modified as necessary to account for betterments or impairments of an asset.
254 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 350 of 375 ends

DRAFT

CITY OF SEBASTOPOL
Vehicle, Travel & Reimbursement Policy # 92
Overview
To establish the policy, procedures and guidelines for the use of City and personal vehicles for the efficient and effective delivery of City services, while minimizing City expenditures and maximizing current resources, and to establish policy for City travel and reimbursements. This procedure applies to all City employees and officials, and supersedes all other administrative directives previously issued pertaining to the use of City owned or personal vehicle use while conducting City business, or City travel and reimbursement procedures. This policy is written to document the policies and procedures that shall be followed when traveling on City business, attending City related meeting expense for reimbursement, use and care of City vehicles and property by all employees and officials. Transportation required for employees to conduct official City business will be available by the use of a City provided vehicle or the use of an authorized personal vehicle at the City’s sole discretion. Everyone who travels for City related business and/or attends meetings for City business purposes (or supervises someone who does) is responsible for reading and understanding guidelines.

Vehicle Policy
The City Council is responsible for adopting the City's vehicle and meeting guidelines, and for approving any significant policy revisions to them. The City Manager or his/her designee has the responsibility for administration of the provisions of this policy, and is responsible for making decisions regarding certain specific vehicle uses as described in this policy. The Finance Director is responsible for developing administrative procedures as needed to implement the guidelines. In this role, the Finance Director is authorized to make minor administrative changes in the guidelines as long as they are intended to carry out the purpose of these guidelines and will not have any significant policy impacts.

This policy assumes a mutual trust between the City of Sebastopol and its employees and City Officials.

The City expects to reimburse its employees and officials for all reasonable costs incurred on behalf of the City. Employees and officials are expected to use good judgment in the expenditure of public funds.

These guidelines are not intended to address every issue, exception, or contingency that may arise in the course of City travel; however, the basic standard that should always prevail is to exercise good judgment in the use and stewardship of the City’s resources. Many of these guidelines simply reaffirm values in judgments that are already practiced.

This policy is to assure that City employees and officials adhere to procedures when arranging for travel, lodging, meals and other expenses and that they are paid for reasonable expenses incurred for travel, conferences, meetings, and meals as a result of conducting authorized City business. The policy assures that payments made by the City are for actual and necessary expenses incurred for City business as well as ensuring that City employees and officials will received advances/reimbursements in a timely manner.

VEHICLE POLICY:

City provided vehicles shall be used only for official City business.

I. Transportation Types:

The following transportation options listed below are potentially available for conducting City business.

A. City Vehicles
255 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 351 of 375 ends

DRAFT
Use of City-Owned Vehicles - REMIF’s liability coverage extends to include use of all city-owned vehicles when an employee or volunteer is driving the vehicle on city business. The employee or volunteer must not use city vehicles for unauthorized purposes. The coverage agreement states that coverage extends to “any person while using a city-owned automobile – provided the actual use of the automobile is by or with the permission of the named “covered party.” Although “permission” is usually broadly interpreted by courts, if city employees or volunteers are made aware of this limitation, it should provide them with additional incentive to obey regulations concerning use of vehicles. In any case, the city always has the full protection of the coverage agreement.

1. Special Purpose Vehicles: Vehicles whose primary use requires special equipment designed to perform job functions, or whose primary use is in a restricted area where non-City vehicles are prohibited.

2. Police and Fire Vehicles: Vehicles whose primary use involves official business conducted by the Police or Fire Departments.

3. Take-Home Vehicles: Take-home vehicles are to enable after-hours emergency response by authorized City employees who are on standby duty assignments that require Special Purpose vehicles. Authorization for a take-home vehicle is granted to a classification meeting the requirements as described below, and in no event does authority for a take-home vehicle belong to any specific City employee who is not in a classification that meets the requirements. This means that an individual employee previously granted authorization for a take-home vehicle whose assignments are updated and no longer require Special Purpose vehicles is no longer authorized for a take-home vehicle. Non-City employees shall not be permitted to take City vehicles home under any circumstances. a. The employee is required to be on standby duty and must respond to after hour emergencies; and
b. The standby duty job function requires a Special Purpose vehicle; and c. The employee responding to the call-back will be able to respond to the first call-back instance and be onsite within a maximum of 30 minutes of the call; and
d. The one-way commute miles of the employee assigned to call-back duty do not exceed 30 miles; and
e. The Department Director has received authorization from the City Manager’s Office for take-home use of the vehicle.

B. Employee-Owned Vehicles
Use of privately-owned vehicles on City business. If employees or volunteers receive a mileage allowance for use of personally-owned vehicles on city business, such persons should be advised that:

1. The mileage allowance is intended to cover the city’s share of the employee or volunteer’s personal auto insurance premium.

2. Each employee or volunteer is expected to maintain an automobile insurance policy whether or not they receive a mileage allowance.

3. Each such policy should be maintained with liability limits of no less than:
256 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 352 of 375 ends

DRAFT
a) $100,000 per person Bodily Injury; $300,000 per accident Bodily Injury; $100,000 per accident Property Damage; or
b) $300,000 Combined (Bodily Injury and Property damage) single limit.

4. Each such policy is primary coverage in the event of a loss or claim, with REMIF coverage applying in excess.

The form Authorization to Use Privately-Owned Automobiles on city business should be completed and filed with the appropriate office designated by the City Manager or his/her designee. A diary system should be maintained to assure that policies are in force (Exhibit A)
In order to protect the city’s interests no employee or volunteer should be allowed to drive a vehicle on city business until the city has verified that the employee or volunteer has a valid driver’s license. Verification is the responsibility of the employee’s supervisor.

Once authorized by the Department Director (or designee) to use an employee-owned vehicle, employees will be eligible for mileage reimbursement subject to the provisions of the Mileage Reimbursement as follows:
a. Authorized employees will be compensated for the use of their automobiles on City business at the prevailing mileage reimbursement rate for employee business use of private automobiles as established and used the Internal Revenue Service (IRS) standard mileage rate. For miles driven on or after January 14, 2018, the City’s mileage reimbursement rate shall be $.545 per mile and will be re-evaluated when the IRS issues a new rate. Any changes to this rate will be updated on the Mileage Reimbursement Form.
b. Mileage from the employee’s home to the first point of duty, and from the last point of duty to home will not be considered as City business, unless the employee’s first or last point of duty is outside of City of Sebastopol limits.

Immediate supervisors are responsible for ensuring that employees provide appropriate documentation for all trips for which reimbursement is requested. c. Employees requesting mileage reimbursement shall complete the Mileage Reimbursement Claim Form. Claims must be submitted to the employee’s supervisor and timekeeper for approval within thirty (30) calendar days of when the travel occurred. Claims outside the 30 days shall be paid only by approval of the City Manager or his/her designee.
d. Report only travel on authorized City business. If the continuity of a day’s travel is interrupted by a personal trip, deduct this trip from the mileage claim. e. Odometer readings or a printed copy of an online map for each business trip must be specified on the form and are subject to audit verifications at any time. f. Report only beginning and ending mileage during working hours, related to official City business.
257 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 353 of 375 ends

DRAFT
g. In instances when an employee’s first and/or last point of duty is outside City of Sebastopol limits, an employee shall be reimbursed for the number of miles driven between the employee’s home and the first and/or last point of duty, minus the number of miles the employee normally commutes from home to and/or from the employee’s regular work location.
h. Adequate explanation of locations covered must be shown. Where applicable or required by the supervisor, indicate assigned area and number of trips. i. Employees shall sign all mileage reimbursement claim forms and submit the claim to the supervisor or department director or designee for approval. Employees who submit false claims for mileage reimbursement are subject to disciplinary action, up to and including termination.
j. The employee’s supervisor or designee is responsible for conducting periodic odometer checks or other checks as deemed necessary to assure propriety of trips and to certify that only necessary mileage has been included for reimbursement and that the amount claimed is correct and proper.

II. Qualifications for Employees Operating Vehicles
a. The City recognizes the benefit of the assignment of City-owned vehicle to specific employees, officials, or volunteers for City related business. City vehicle, property, materials, supplies, tools, and equipment are intended for the maintenance and operations of the City and shall be readily available for use of authorized City staff.

Authorization for use of such vehicles must be controlled and limited to business use only. Personal items or information shall not be stored in City vehicles. Any loss, damage or misuse of personal items stored in City vehicles shall not be the responsibility of the City. No personal or political use of any City property, materials, supplies, tools, equipment is permitted, except for de minimums vehicle use by authorized staff for benefit of the City.
b. City employees who drive a vehicle in the course of conducting City business must possess a valid California State Driver License appropriate to the type of vehicle being driven. Employees authorized to use special purpose vehicles will maintain and comply with vehicle specific training and licensing requirements as defined by any relevant rules and regulations, and/or the California Department of Motor Vehicles, and/or the employee’s job classification minimum qualifications.
c. Employees authorized to drive a vehicle on City business shall notify their supervisor in writing of the suspension, revocation, cancellation, expiration, lost privilege, disqualification, or other action affecting the status of their driver license or their authority to drive a vehicle. Notification must be made as soon as practicable, but in no case more than five (5) calendar days following the day the employee received notice of the suspension, revocation, cancellation, expiration, lost privilege, disqualification, or other action affecting the status of their driver license or their authority to drive a vehicle.
d. If an employee is notified that an action MAY be taken which could affect the employee’s license, including the possible suspension, revocation, cancellation, expiration, lost privilege, disqualification, or other action affecting the status of their 258 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 354 of 375 ends

DRAFT
driver license or their authority to drive a vehicle, the employee shall notify their supervisor as soon as practicable, but in no case more than five (5) calendar days following the day the employee received notice of the potential action. The employee shall continue to keep their supervisor informed of any further changes or updates regarding their driving status.
e. Employees cannot drive their vehicles on City business unless all of these requirements are met. Employees are specifically required to immediately contact their supervisor if, at any time, there is a change to these requirements or they do not meet all of the requirements.
f. Employees who are unable to comply with these requirements shall not be permitted to drive any vehicle (City or personal) to conduct City business and may not drive onto any City property or City facility.

III. Conditions of Vehicle Use
City and employee owned vehicles used for City business shall be operated in a manner consistent with all safety and legal requirements. Vehicles authorized for use based on this Policy shall only be used to conduct official City business.

A. Transportation of Passengers and Goods
Vehicles driven to conduct official City business should not be used to transport any passengers other than authorized City employees on official City business or persons directly related to the official City business being conducted. Nothing herein shall be construed to prohibit the carrying of any person or persons in case of accident or emergency.

City owned vehicles should not be used to transport any items or goods that are not the property of the City, unless such transportation is directly related to official business being conducted by the City.

B. Vehicle Idling
In order to reduce emissions that are a result of idling diesel and gasoline engines, no City-owned diesel or gasoline powered vehicles/equipment or stationary engines may idle for more than five (5) consecutive minutes, with the following exceptions:
• Idling when queuing;
• Idling to verify that the vehicle is in safe operating condition; • Idling for testing, servicing, repairing or diagnostic purposes; • Idling when it is necessary to accomplish work for which the vehicle was designed (such as operating a crane or when emergency vehicles used by Police and Fire are at the scene of an incident);
• Idling to bring the machine system to operating temperature; and • Idling to ensure safe operation of the vehicle.

For the purpose of this section, queuing shall mean the intermittent starting and stopping of a vehicle while the driver, in the normal course of doing business, is waiting to perform work or a service, and when shutting the vehicle engine off would impede the progress of the queue and is impracticable. Queuing does not include the time a driver may wait 259 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 355 of 375 ends

DRAFT
motionless in line in anticipation of the start of a workday or a location where work or a service will be performed.

C. Cellular Telephone Safety While Driving

1. Wireless Telephones
Employees shall not use their wireless telephone (either City issued phones or personal phones) while driving on City business or while conducting City business unless the telephone is designed and configured to allow hands free listening and talking, and is used in that manner while driving. Even when using a hands-free wireless telephone, conducting City business on a cellular telephone while driving should be kept to a minimum and only done when necessary. This section does not apply to an employee or non-City employee using a wireless telephone for emergency purposes (such as calling 911) while driving on City business.

2. Electronic Wireless Communication Devices
Employees shall not use an electronic wireless communication device to write, send, or read a text-based communication while driving on City business. “Write, send, or read a text-based communication” means using an electronic wireless communications device to manually communicate with any person using a textbased communication, including, but not limited to, communications referred to as a text message, instant message, or electronic mail.

3. Sworn Police and Fire Personnel
Sworn police and fire personnel using wireless telephones and electronic wireless communication devices in the course and scope of their duties shall do so in accordance with their respective Duty Manuals and applicable policies and procedures relating to the use of wireless telephones and electronic wireless communication devices.

IV. Collision/Accident Reporting
A. Non-sworn Employees - Reporting of vehicle collisions or accidents by City employees driving a City-owned vehicle or their authorized personal vehicle on City business is required. Reporting must be prompt, accurate and complete. These reports shall be made within no less than 24 hours (or 48 hours if the accident occurs on a weekend) to the employee’s immediate supervisor. In all cases, accident reports involving city-owned equipment shall be provided to the City Manager’s Office.

Incidental damage to a vehicle or equipment, defined as damage while the vehicle is unattended or damage such as a broken windshield from a flying rock must also be reported to the employee’s immediate supervisor. In all cases, incidental damage to cityowned equipment shall be reported to the City Manager’s Office.

The reporting procedure to be followed by City employees and non-City employees who are involved in a vehicle accident while driving a City-owned or authorized personal vehicle on City business shall be as follows:
a) Stop immediately and render aid if such is necessary. b) Call the police. Tell the police this is an accident involving a City owned vehicle or authorized private vehicle on City business.
260 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 356 of 375 ends

DRAFT
c) Do not make or sign statements for anyone except the police. d) Obtain the Accident Report and give it to the supervisor, who is responsible for the services being provided by the City or non-City employee. The Department Director will route one copy of the accident report to the City Manager’s Office.

B. Sworn Police and Fire Personnel - Reporting of vehicle collisions or accidents by sworn Police and Fire personnel driving a City-owned vehicle or their authorized personal vehicle while in the course and scope of their duties shall do so in accordance with their respective Duty Manuals and applicable policies and procedures relating to vehicle collisions or accidents. In all cases, accident reports involving city-owned equipment shall be provided to the City Manager’s Office.

V. Traffic and Parking Citations
Traffic and/or parking citations issued to a City employee while using a City or authorized personal vehicle on City business are the sole responsibility of the employee receiving the citation.

Travel & Reimbursement Policy
The purpose of The Employee Travel Policy is to provide guidelines for authorization of travel; and reimbursement and payment of travel expenses. This policy is not intended to cover short trips during work hours made by employees in the course of their regularly assigned work duties. In all areas, not just in economy pricing, officials and employees are responsible for exercising good judgement in requesting, arranging, and making a trip. Trips should be planned in advance if possible. Personal business should not be mixed with official business if it will cost the City anything in dollars or lost time, or if it will harm the City’s interest in any way.

I. Traveler Accountability - The Travel Policy is in place to provide accountability to employees traveling for the purpose of benefiting the City. Travelers are responsible for ensuring compliance with this Policy, as may be amended from time to time.

How will you travel?
To drive a privately-owned vehicle on City business you must:
 Possess a valid California driver’s license.
 Carry liability insurance limits required by the City’s Redwood Empire Municipal Insurance Fund.
 Realize that any damage to your car, needed service or repair occurring on the trip will be your responsibility, as these costs are included in the City’s per mile cost reimbursement.

If a car rental is required, you may use a City credit card or request reimbursement when you return. Car rentals must have prior approval from the City Manager or his/her designee.

When will you travel?
You should schedule your trip so that you depart at the latest reasonable hour and still arrive at your destination on time. You should also return promptly when your business is finished, thereby minimizing the time away from work and ensuring full reimbursement of all related expenses.
261 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 357 of 375 ends

DRAFT
Where will I stay?
The city will pay for a single room (including taxes and parking) for as many nights as necessary.

The accommodations used should be economical but practical. For example, it is preferable to stay at the hotel where a conference is held, even if that hotel may be slightly more expensive than others in the area. Location is also important; a hotel close to where you will be conducting business may be slightly more expensive than outlying hotels, but it may be easier to achieve the City’s travel goal by staying at closer location. In general, you should stay at the most reasonably priced accommodations available consistent with the purpose and goals of your travel. If you have a question about using a particular hotel, obtain concurrence or direction from your Department Head before making a reservation.

Should you make reservation?
Whenever possible, you should make reservations. They are often required for large conferences. You can use a City credit card to confirm reservations. Be sure to cancel any reservations you will not use. If the City is charged for an unused reservation, you will be billed for that charge unless circumstances requiring cancellation were reasonably beyond your control.

II. Travel Authorizations
Travel authorizations (TA’s) are required approval of Department Heads, and out of state travel requires the further approval of City Manager or his/her designee. Department Heads approving travel authorizations are responsible for determining that the cost is reasonable and justified by the trip’s purpose. They should be certain that:
a. The purpose cannot be accomplished by mail or telephone. b. The seminar, meeting or conference is necessary to accomplish key City goals and objectives and is unavailable locally if overnight accommodations are required. c. The minimum number of City staff members are going.
d. The itinerary ensures accomplishment of the purpose at the lowest reasonable cost. e. The traveler understands and follows these guidelines. f. There is adequate funding in the appropriate travel budget to cover the costs.

Ultimately, the responsibility for following these guidelines and exercising good judgment in the use and stewardship of the City’s resources rest with each City employee traveling on City business.

Requests for Payments to Vendors
The City will pay all legitimate expenses of your trip. These include transportation, lodging, registration fees, meals and any other related expenses if they are for official business and fit within these guidelines.

In advance booking payment for transportation, e.g. airfare, City authorized credit card shall be utilized for the transaction. Each department director has been issued a credit card. Credit cards are issued pursuant to the City Purchasing Policy#89. 262 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 358 of 375 ends

DRAFT
Direct vendor payments are made by the City to an organization to pay for specific costs related to a trip (usually registration fees) through Accounts Payable.

To obtain either direct vendor payments you must complete the appropriate sections of the TA (Exhibit B) and attach payment requests for all payments.

III. Making The Trip
There are two key “golden rules” to remember about making an official trip:
a. Keep it official.
b. Keep records for all expenses.

Keeping It Official
If you take time away from official business for personal matters, or if you delay your return after completing your business, you will not be reimbursed for expenses incurred during that time.

When combining business and personal travel in this manner, Department Head approval is required. If this extended period occurs during your regular scheduled work hours, the time will be counted as vacation, comp time (if available) or leave without pay.

Keeping Records for All Expenses
As discussed below under Accounting for Expenses, you must maintain a detailed record of all expenses incurred during your travel: meals, transportation, lodging, baggage handling, parking fees, registration fees, telephone and any other reasonable and necessary expenses. It is important to save receipts to be able to claim for reimbursement. Unless otherwise approved by the City Manager or his/her designee, payments will not be issued for reimbursement requests without receipts.

Meal Allowances:

The allowable maximum amount, unless otherwise approved by the City Manager or his/her designee, is $60.00* per day (including beverages, taxes and gratuities) for meals, which reimbursement is available on presentation of supporting receipts and conference agenda to document amounts spent while travelling and completion of an expense report upon returning from your travel.
*The following break-down applies to partial day of meal allowance.  If your conference is between 7:00 a.m. to 11:00 a.m. – breakfast only allowance $10.00  If your conference is between 11:00 a.m. to 4:00 p.m. – lunch only allowance $20.00  If your conference is beyond 4:00 p.m. – dinner only allowance $30.00 Breakfast $10.00
Lunch $20.00
Dinner $30.00
Total Per Diem $60.00
263 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 359 of 375 ends

DRAFT
 If the event is scheduled to take place all day from 7:00 a.m. to 5:00 p.m., you are entitled to the full $60.00 meal allowance.

Alcoholic Beverages
City funds should not be used to purchase alcohol or reimburse employees for alcohol related costs. The Council or City Manager or his/her designee may approve exceptions to this policy on a case-by-case basis for special receptions or other unique circumstances. This discretion applies primarily to non-travel related expenditures such as special receptions, and not to routine travel or meetings by City employees.

Spouses and Guests
Spouses and guests may accompany you on City travel and at conferences, seminars and meetings. However, any additional costs associated with the participation of your spouse or guests are your responsibility.

IV. Accounting for Expenses
When you return from your trip or official function, a final accounting of all expenses must be approved by your Department Head and submitted to Finance within ten working days. An expense report is always required.

The final accounting is made by completing the Expense Report (Exhibit B). After completing the expense report, you should attach required receipts, sign the report attesting to its accuracy and submit it to your Department Head for review and approval.

Department Heads approving expense reports are responsible for ensuring that:
 All expenses are reasonable, necessary and consistent with these guidelines.  Any required receipts are attached.
 The final disposition is correct.
 Final accounting of all expenses is submitted to Finance.

Upon approval by the Department Head, the expense report should be forwarded to Finance along with a claim for payment to you; the reimbursement will be processed in accordance with the Accounts Payable calendar.
264 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 360 of 375 ends

DRAFT

COUNCIL POLICY

SUBJECT

FUNDING OF COMMUNITY BENEFIT GRANTS

POLICY NO
88 EFFECTIVE DATE
October 18, 2016
PAGE
1 of 4

BACKGROUND
The Community Benefit Grant Program provides an excellent opportunity for the City of Sebastopol to support critical neighborhood projects and helps fulfill the community’s vision. It has been the practice of the City Council to consider the contribution funding of community-based programs conducted by non-profit 501 (3) (c) organizations that actively enhance the quality of life for Sebastopol residents.

The Community Grants program is developed with a philosophy of partnership whereby Council recognizes the vital role that individuals, community groups and organizations play in contributing to the creation of a vibrant and sustainable City. In return, Council provides a range of grants to encourage and support individuals and groups in the community to engage in activities that advance the quality of life in the City of Sebastopol.

PURPOSE
The purpose of this policy is to provide a basis for Council to allocate funds in an equitable and effective manner.

Council acknowledges that the provision of grants is an important role for local government, and is an essential way in which Council can directly support the local community.

Council will apply appropriate management practices to ensure that there is a balance between responsibility for administering public funds, and supporting the community in a practical and effective manner.

The Community Benefit Grant Fund is intended to provide funding to local non-profit organizations for specified community benefits programs and/or projects that will:

1. Address an unmet/under-met and ongoing community need;

2. Demonstrate long-term impact and quality outcome;

3. Benefit a large cross section of community residents and/or businesses;

4. Leverage additional funding to support the program;
The Community Grants policy is strongly related to Council’s Goals and Objectives as well as its vision and mission statements. The goal is to operate the Community Benefit Grant Program following related Council policies, plans and activities such as:

1. Social Plans including Youth Plan, Cultural Arts, and Positive Aging/Elders;

2. Community Participation;

3. Festivals and Public Events;

4. Economic Development; and

5. Marketing Strategy, Tourism, Community Outreach
City of Sebastopol
265 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 361 of 375 ends

DRAFT

COUNCIL POLICY

SUBJECT

FUNDING OF COMMUNITY BENEFIT GRANTS

POLICY NO
88 EFFECTIVE DATE
October 18, 2016
PAGE
2 of 4
POLICY

1. Non-profit organizations must file an application for the Community Benefit Grants Program. Applications must be submitted by March 31 of each year for funding the following fiscal year. Applications must be submitted to the Finance Department prior to each deadline. Application forms may be obtained from the Finance Department, 7:00 A.M to 5:30 P.M., Monday through Thursday, or off the City website page (www.cityofsebastopol.org).

2. Public funds shall be made available only when the funds are to be expended for a community program that will contribute to the quality of life for Sebastopol residents.

3. The City Council shall strive to appropriate one percent of General Fund revenues.

4. No organization may apply for funding if it failed to meet any of the post application requirements from the prior year (see paragraph 11, 12 & 13).

5. Funds will not be allocated to:
a. Political action committees, political candidates, or political campaigns; b. Any organization conducing a religious activity;
c. Organizations conducting a fund-raising event or activity; d. For the rental of the City owned facilities.

6. Funding requested from membership based adult organizations will not be considered if the funds requested are to be used to directly benefit its members and not the community at large.

7. Funding requested from youth sports group will be considered only if the request is to support the youth sports group in a regional, state or national competition, but not for travel out of the country, and provided that the requesting group is predominately composed of Sebastopol residents and greater Sebastopol community.

8. Requests for funding will be considered by the City Council only during the periods determined in this Council Policy and submitted on the appropriate application form.

9. Funding of a program will not constitute a precedent for contributions in subsequent years.

10. All applications will be submitted to the Finance Department for analysis and recommendation to the Budget Subcommittee and ultimately to the City Council. In its evaluation, the Budget Subcommittee shall consider and evaluate the following criteria:
a. The non-profit status of the organization.
b. The number of citizens within the community that will benefit directly by the expenditure as well as the ratio of Sebastopol residents served to the total number of individuals served. c. Adherence to the stated policies of the City of Sebastopol. d. Whether or not a public need will go unmet without the contribution e. The degree to which the goodwill of the City of Sebastopol will be promoted. f. The degree to which the cause has been recognized as a contribution to the community City of Sebastopol
266 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 362 of 375 ends

DRAFT

COUNCIL POLICY

SUBJECT

FUNDING OF COMMUNITY BENEFIT GRANTS

POLICY NO
88 EFFECTIVE DATE
October 18, 2016
PAGE
3 of 4
g. Whether or not the contribution could expose the City to civil liability h. The amount of the request.
i. Whether the ratio of administrative costs to program costs exceeds 25% of the program budget. j. The degree to which the members of the organization have engaged in fund-raising activities. k. Whether or not the organization has applied for funding from other Sonoma County cities. l. Whether or not the organization has received CDBG (Community Development Block Grant Funding).

11. After review, the Budget Subcommittee shall make a recommendation to approve, deny, or modify the funding request and approve as modified.

12. Post Application Requirements:
a. Not discriminate in employment or in clients served because of race, religion, national origin, or sex or sexual orientation.
b. Be accountable for revenue and expenditures through standard bookkeeping procedures. An annual audit or review at the applicant’s expense may be required, with the results available to the City of Sebastopol upon request.
c. Provide access to periodic reviews by City staff and City Council for purposes of monitoring the program.
d. Provide the City with an interim end of the year full financial accounting and narrative report by the close of May 31.
e. The year-end report shall be submitted in writing, and may be brief but should include a financial summary indicating how funds have been expended during the period and a narrative commenting on development of the program. The end of the year shall be within 30 days after May 31. This report must include a complete financial statement detailing all expenditures of the City monies for the program(s) covered under the grant and a narrative report on the project and its significance.

The financial and narrative report should compare actual expenditures and accomplishments with the budget and objectives cited in the original proposal.

13. Funded applicants must return to the City any unexpended funds at the end of the one-year funding period, or whenever, the City determines that the applicant has not performed in accordance with the approved program proposal.

14. Any funds returned in accordance with the policy shall be returned to the City General Fund, to be allocated in accordance with the policy.

15. City moneys shall be used only for the purpose and program(s) duly authorized and in accordance with the approved budget. Any deviation from the approved program proposal may be made only with the City’s prior written approval. If not, funds must be returned immediately to the City.

City of Sebastopol
267 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 363 of 375 ends

DRAFT

COUNCIL POLICY

SUBJECT

FUNDING OF COMMUNITY BENEFIT GRANTS

POLICY NO
88 EFFECTIVE DATE
October 18, 2016
PAGE
4 of 4

16. The organization shall provide a report to the City of its use of the funds provided no later than 30 days after the close of the third quarter (March 31) of the fiscal year.

17. Each year, and in accordance with the established time line, the City Council will develop its funding allocations within the following categories for Community Benefit Grands Funding:
a. Parks and Recreation, including but not limited to:
i. Outdoor Recreation
ii. Youth services and athletics, such as dance classes, life skilled programs iii. Hospitality Program
b. Arts and Cultural, including but not limited to:
i. Event and Tourism Resources
ii. History and Culture Education
iii. Music, Theater & Art Events
c. Environmental Quality and Sustainability, including but not limited to:
i. Clean air quality / pollution control
ii. Climate action initiative
iii. Sustainability education
d. Health & Community/Human Services, including but not limited to:
i. Health and Safety, Food / Nutrition, Youth and mental health services ii. Crisis Intervention Facilities
iii. Senior & Low Income Resources
e. Economic Vitality, including but not limited to:
i. Workforce training such as internship
ii. Business development, incubation or acceleration
iii. Business attraction, retention / expansion program City of Sebastopol
268 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 364 of 375 ends

DRAFT

COUNCIL POLICY

SUBJECT

COMMUNITY SPONSORSHIP

RESO NO
N/A

POLICY NO
84 EFF DATE
9/7/2021
PAGE
1 of 5
I. OVERVIEW
The City of Sebastopol recognizes that sponsorships play an important role in supporting our community and providing support for community events that are held for the following purposes:
• Support of nonprofit organizations, service clubs, groups or organizations serving the Sebastopol community;
• Cultural, recreational and educational activities;
• Promotion of the City of Sebastopol
In order to expand access to a wide range of cultural experiences and diversified community connections for all its residents, the City of Sebastopol provides limited assistance to local organizations in support of community events that are consistent with the goals and priorities of the City and that serve a public purpose.

City sponsorship reflects support of specific events by an organization. Therefore, requests for funding/fee reductions must be for events operated by an organization, as opposed to a contribution to an organization’s general operating expenses. The intent is that the general public will receive some intrinsic cultural, economic, educational, or recreational entertainment value from the event, while raising revenues to support and potentially enhance the delivery of services that support the vision of the City of Sebastopol with the aim of enhancing the connectivity between businesses and the greater community. Community sponsorships can be an effective means of generating new revenue and building community partnerships.

II. PURPOSE
The purpose of this policy is to promote significant and special community events primarily benefitting the Sebastopol community. This is not a grant program. This policy sets parameters for the approval of City sponsorships for community events conducted by local organizations. City sponsorship may consist of monetary funding and/or in-kind support. Community sponsorships can be an effective means to identify the event with the City and building community partnerships while raising revenue.

III. DEFINITIONS
Community Sponsorship Account – Account established to offset the costs of providing City support for community events. The City Council determines how much to allocate to this account through the annual budget process.

Organization – Includes nonprofit institutions and service organizations registered to do business in the State of California; groups or organizations, educational institutions, and for purposes of this policy, are those entities which have their principal location in Sonoma County, and which exist primarily to provide City of Sebastopol
269 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 365 of 375 ends

DRAFT
services or engage in activities for the public benefit of the Sebastopol community.

Event – A local celebration, fundraiser, cultural, recreational or educational activity that demonstrates a public benefit and/or community programs held for the primary purpose of raising funds for a City of Sebastopol or Sonoma County-based nonprofit (or not-for-profit) organization and for which other intrinsic cultural, recreational, entertainment or educational value is provided for the benefit of the public.

Sponsorship – A sponsorship is any monetary or in-kind support from the City (City logo, City staff time, public safety services, and the use of City facilities or property, event permit fees, etc.) to the organizing agency that helps offset the costs of the event operations.

IV. GENERAL POLICY
The budget for the community sponsorship program, including determination of the source of funding to offset thissponsorship program, shall be established by the City Council each year during the annual budget process. The fiscal year shall begin July 1 of each year and end on June 30 the following year. Applications will be processed on a first-come, first serve basis.

Sponsorships will only be provided for events and organizations meeting the eligibility criteria stated in this policy (see Section VIII). City staff will review sponsorship applications and make a recommendation to the City Council for final approval. The Administrative Services Department shall be responsible for accounting for the Community Sponsorship account; and shall keep a listing of all organizations and programs receiving sponsorships through this program; and shall maintain a balance of funds available.

Special Event requirements, conditions of use for facilities and equipment, insurance and other requirements must be followed according to City policies, codes and ordinances. Failure to comply with the City permitting requirements within the time constraints will result in the organization being ineligible for future sponsorships.

V. FUNDING LIMITS
The City Council shall determine the Community Sponsorship account balance during the budget process each year. Community sponsorships may be provided to eligible organizations (see Section VIII).

In the case of partial funding for a program, costs owed to the City, other than those covered by a sponsorship per this policy, shall be paid by the sponsoring community organization and are due 30 days before the event.

VI. APPLICATION REQUIREMENTS AND PROCESS
1) A community sponsorship application must be submitted on the attached form indicating:
a. name and contact information for the event organizer(s) b. the local office/headquarters of the organization
c. the organization’s purpose/mission
d. the event dates, and times which include set-up and tear down times needed, a parking plan, and proposed location
270 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 366 of 375 ends

DRAFT
e. expected number of participants
f. statement that the event will be available to the general public g. the purpose of the event
h. how the organization and proposed event benefits the Sebastopol community and meets the criteria within this policy
i. an indication of what type of sponsorship is needed for the program j. an outline of the event marketing plan
2) A financial outline showing the proposed profit or loss for the event. The financial outline must include income from all sources; and all program expenditures listed by category including but not limited to booth rentals, sound and production, facility rental, food and beverage, concessions, staff, advertising, etc. In-kind contributions and volunteer services shall be listed. The budget will be used to determine the extent to which an organization has obtained diversified funding, in-kind contributions and volunteer resources. Financial outlines that show a deficit must clearly explain how the deficit will be handled.
3) Current proof of 501(c) or others, California contribution registration number and/or other non-profit status must be provided (if applicable, as determined by the City Manager or designee). Proof that the organization’s principal location is in the Sonoma County and exists primarily to provide services or engage in activities for the public benefit of the Sebastopol community. 4) A copy of the program’s sponsorship criteria/guidelines that outlines the sponsorship categories and benefits of sponsorships at various sponsorship levels. 5) The City may require additional information as necessary.

VII. APPLICATION REVIEW/APPROVAL
Sponsorship applications will be accepted and reviewed on an on-going basis by the City department in charge of the event, program or facility/amenity. The City Council allocates and adopts a limited budget for this program. Approval of sponsorship is determined on a case by case basis related to the eligibility requirements, purpose and goals of each independent event. Sponsorships applications shall be presented to the Administrative Services Department. If all criteria of this policy are met, the Administrative Services Department shall prepare a consent calendar agenda item for City Council consideration.

Approval for sponsorship in one year does not imply or guarantee approval in subsequent years for an organization or an event.

Factors that will be considered include (in addition to the eligibility requirements in the policy):

1. Resources available (e.g. budget, staff, workload capacity, availability of City facilities).

2. Compatibility of the program with the goals and priorities of the City of Sebastopol.

3. Impact of the event on City facilities.

4. Risk to the City.

5. Where applicable, ability of the organization to obtain and satisfy the City’s insurance requirements including naming the City as additional insured.
271 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 367 of 375 ends

DRAFT

6. Benefit to the community; level of cultural enrichment.

7. Enhances community unity and City values.

8. Ability to meet City of Sebastopol zero waste requirement.

VIII. ELIGIBILITY CRITERIA
Eligible
Event types
• Events providing a benefit to Sebastopol residents; non-profit organizations holding fundraiser programs primarily serving the Sebastopol community
• Events that contribute positively to the recognition and image of the City of Sebastopol • Events that are available to the general public
• Events and organizations that demonstrate that they can meet the necessary requirements of the agreement
Organization types
• Organizations and programs in good standing with the City of Sebastopol in relation to organization’s past performance
• Organizations that agree to do the following (failure to do so will result in future ineligibility):
a. Obtain all required permits, clearances, insurances and program authorizations within time restraints in compliance with the Code of the City of Sebastopol, policies and Special Events Policy requirements and State and Federal Laws. b. If sponsorship includes rental of a City of Sebastopol facility, applicants must fill out application form and is subject to facility availability and adherence to City facility use policies.
c. Acknowledge the support of the City of Sebastopol where appropriate, and to include on all printed information and advertising related to the event for which sponsorship was provided the following statement: “This event is sponsored in part by the City of Sebastopol” or other statement approved by the City of Sebastopol. d. Allow the City of Sebastopol to have a space at the event if the City so desires (at events where a sponsorship space is appropriate) for the purposes of distributing information regarding City services and community programs. This space shall be provided at no cost to the City.
e. Provide the City with whatever benefits are afforded other sponsors of similar sponsorship levels (i.e. logo display, sponsor table, advertising benefits etc.) f. Ensure appropriate ADA accessibility at event, and when portable toilets are required for events, must ensure that at least one ADA accessible portable is provided. g. City must review all materials with City logo prior to release.

Not eligible

1. The City will not award sponsorships to any religious church, creed or sectarian organization to promote religious purposes. Religious organizations are not excluded from sponsorships; however, the 272 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 368 of 375 ends

DRAFT
purpose of the program must be as described in the definitions section of this policy and shall not serve to promote a religious message.

2. Political organizations and/or individual campaigns are not eligible for sponsorships for programs they conduct.

3. Organizations that discriminate on the basis of age, race, sex, sexual orientation, marital status, disability or national origin are not eligible for sponsorships for programs they conduct.

4. Individuals, or groups providing a restricted guest list, are not eligible for sponsorships.

5. For-profit organizations are not eligible for sponsorships for promotional programs for which the organization/corporation or its employees or officers will gain personal benefit (i.e. a sales promotion).

ATTACHMENT: (See website)
https://ci.sebastopol.ca.us/Local-Business/Special-Programs/Community-Benefit-Grant Request for Sponsorship Application
Insurance Requirements
Zero Waste Event Goal Resolution
273 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 369 of 375 ends

DRAFT

FINANCIAL AND BUDGET TERMS
Adopted Budget - appropriations adopted by the City Council.

Adoption - formal action by the City Council, which sets the spending path for the fiscal year.

Appropriation - legal authorization given by the City Council to make expenditures and incur obligations using City funds.

Assessed Value - the valuation of real property established by the Property Appraiser as a basis for levying taxes.

Bond - a special type of “loan” that provides funding for capital projects. Local governments are prohibited from borrowing funds to cover standard operating expenses.

Debt Service Budget - the debt service budget is money used to repay bond issues.

Enterprise Fund – the funding source for city agencies that are self-supporting, such as resource recovery facilities and water and wastewater facilities.

Fiscal Year - the 12-month financial period in which funds are appropriated and accounted for by the City, which begins July 1 and ends June 30 of the following year. A fiscal year is identified by the year in which it ends.

Fund - monies set aside and accounted for separately in order to ensure that the monies are spent for a specific purpose.

Fund Balance - the balance remaining after accounting for all liabilities and revenue incurred during that year, plus the previous year’s fund balance. It is calculated at the end of each fiscal year.

Mandated Service - required by State, Federal, County law, health and safety code of California, contractual obligations, legal and tort liabilities.

MOU - Memorandum of Understanding. A labor contract pursuant to state, law, the Meyers, Millias and Brown Act, between the City and a labor union or organized group of employees under which all conditions of employment are negotiated.

Operating Budget - a plan of financial operations that provides a basis for the planning, controlling, and evaluating the operational portion of governmental activities. The operating budget supports ongoing services and programs.

Property Tax base – total value of land and property upon which a taxing authority can levy taxes.

The tax base is often different from the total property value in any area because some types of property, like schools and government facilities, are exempted from property taxes. 274 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 370 of 375 ends

DRAFT
Fund Structure Chart
Transaction
Use Tax Fund
General Fund
(Major Fund)
Governmental
Funds
Internal Service
Fund
Wastewater
Fund
City of Sebastopol
Budgetary Fund
Proprietary
Funds
Insurance
Fund
Water
Fund
Gas Tax
Fund
Police Grants
Fund
Assessment
District
Special
Revenue Funds
All Others
Funds
Capital Project
Fund
Debt Service
Fund
275 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 371 of 375 ends

DRAFT
Fund
Type
Fund # Restricted? Fund Fund Description
100
124
Unrestricted General
The General Fund is the primary operating fund of the City and is used to account for most day-to-day activities. Revenue sources include (but are not limited to) property tax, current fees for services and business registration 103 Assigned Building, Facilities &
Infrastructure
This fund should be established and maintained similar to an Internal Service fund which account for centralized service costs, charges from this fund appear as an expenditure in the user department and as a revenue in the central service department to provide for the timely replacement of the City's owned fixed assets.
104 Assigned Equipment Technology &
Vehicle
This fund should be established similar to an Internal Service fund which account for centralized service costs, charges from this fund appear as an expenditure in the user department and as a revenue in the central service department as set aside for the proper funding of equpment, technology, and vehicle replacement.
105 Assigned Pension & OPEB
This fund should be established similar to an Internal Service fund which account for centralized service costs, charges from this fund appear as an expenditure in the user department and as a revenue in the central service department for the annual funding of Pension and the City's obligation for other post-employment benefits (OPEB) 120 Restricted Tree Replacement Fund
This fund is used to remove and replace trees along City streets and City-owned properties (excluding Parks). It is primarily funded by tree deposits that have been forfeited.
121 Restricted BSA Fund-SB1473 Fee
Funds collected per SB1473 , which requires cities and counties to collect a fee on building permit applicants, in the amount of $4 per every $100,000 in valuation. The City retains 10% for administrative costs and code enforcment education, while the remainder will be available to the Building Standards Commision.
122 Restricted Building Permit Technology
Fund
Land use type permits including use permits, special events, grading, building and fire permits are collect at the issuance. Fee will be used to maintain the permitting system, property information and homeowner data website and other associated costs 123 Restricted Street Pavement Reserve
An annual transfer of residual balance from the Special Sales Tax Fund 124 to the Street Pavement Reserve Fund 123 for maintenance of a range of services including public safety, street and road maintenance and repairs, flood maintenance, park and open space maintenance, and other general community services
125 Restricted Vehicle Abatement Funds collected per County Resolution 94-1207, the funds are collected by the DMV and distributed to participating cities. The funds are to be used for the removal and dispopsal of abandoned vehicles. 500
510
Restricted Water/Sewer Operating
The Water/Sewer Fund accounts for the provision of water/sewer services to residents and businesses of the City. All activities necessary to provide such services are accounted for in this fund including, but not limited to, administration, operations, maintenance, financing, billing and collections.

Treatment services are provided by Santa Rosa Subregional Partner 501
511
Restricted Water/Sewer Capital The Capital Improvements Fund accounts for City-wide construction and improvements specifically paid for through the proprietary funds
512 Restricted Sewer Impacting Fee
The fee is meant to offset the financial impact a new development places on public infrastructure. 200 Restricted Gas Tax
The Gas Tax Fund accounts for the construction and maintenance of the street system in Sebastopol. Financing is provided by the City’s share of state gasoline taxes allocated to cities from the State in accordance with the Streets and Highways Code
City of Sebastopol Fund Descriptions
General Enterprise
276 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 372 of 375 ends

DRAFT
Fund
Type
Fund # Restricted? Fund Fund Description
City of Sebastopol Fund Descriptions
201 Restricted Measure M - Road
Maintenance
The County Measure M Fund accounts for the half-cent County sales tax revenue restricted for local transportation improvement projects
202 Restricted Measure M - Park
Improvement
The County Measure M Fund accounts for the half-cent County sales tax revenue restricted for local park improvement projects
203 Restricted Art in Lieu
The Art in Lieu fund accounts for developer contributions in lieu of installation of public art on project sites and income received from art programs and events to fund public artwork, cultural programs, maintenance/conservation, and administrative costs relating to the Art in Public Places Program.
204 Restricted Housing Linkage Fund The Housing Linkage Fee Fund is used to mitigate the housing impacts caused by new, changed and expanded nonresidential development in the City and provide a source of revenue for housing affordable to person of very low and low income. 205 Restricted Inclusionary Housing Fund
The Inclusionary Housing Fund accounts for revenue received from fee payment to be used for the exclusive purpose of providing housing affordable to low and moderate income households in the City for construction of five or more new dwelling units, or for the division or subdivision of land into five or more lots for residential use. 206 Restricted Building Permit
Incremental Fee Fund
The Building Permit Incremental Fee Fund accounts for revenue received from construction inspection and plan checks to fund training, certification exams and courses.
207 Restricted Building Improvement
District
Business Improvement District was established via ordinance 666 and shall include all businesses located within the area described in Exhibit A. The revenues derived from taxes imposed upon all the businesses in the area shall be utilized for acquisition, construction or maintenance of parking facilities, decoration of any public place, promotion of public events which are to take place, furnishing of music in any public place and general promotion of retail trade activities for the benefit of the area. 208 Restricted General Plan Update Fee General Plan Update Fee Fund is assessed on Building Permits and is designed to help recover the significant long-term costs of periodically updating the General Plan and Zoning Ordinance. The Fund is typically used for consultant and other costs related to updates. 209 Restricted Supplemental Law
Enforcement Services Fund
The Supplemental Law Enforcement Services Fund receives funds from the State of California to supplement local law enforcement activities
210
211
Restricted Asset Forfeiture Fund The Police Seized Assets Fund accounts for properties seized by the Police Department during the normal course of police operation
212 Restricted Park Improvement Fund
The Park Improvement Fund receives revenue from new residential and hotel development to mitigate the impact of such new development on City park and recreational facilities. The use of revenues from the Fund is restricted to park and recreational capital improvements.
213 Restricted Traffic Impact Fee Fund
The Traffic Impact Fee Fund was established to reduce the traffic impacts caused by new development within the City limits and certain public improvements (transportation system infrastructure) and revenue collected from these fees shall be used solely to pay for the City’s future construction of facilities or services or reimburse the City for facilities constructed by the City with funds advanced by the City from other sources.
214 Restricted Underground Utilities Fee
Fund
The Underground Utilities Fee Fund is an in-lieu fee paid by development projects where the City Engineer has determined physical undergrounding of overhead utilities is not practical. The Fund is used for general City utility undergrounding projects. 215 Restricted Street Lighting Assesment
District
Funds collected per CA act 1972, funds are collected through annual parcel assesments and used for the operation and maintenance of the Citywide street light system.
216 Restricted Community Development
Block Grant
Community Development Block Grant funds communities with resources to address a wide range of unique community development needs such as affordable housing, anti-poverty programs and infrastructure development.

Special Revenue
277 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 373 of 375 ends

DRAFT
Fund
Type
Fund # Restricted? Fund Fund Description
City of Sebastopol Fund Descriptions
217 Restricted Road Maintenance &
Rehabilitation (SB1)
The Road Maintenance & Rehabilitation fund accounts for funds from the State of California under Road Repair and Accountability Act of 2017. The use of funds is similar but, not identical, to Gas Tax use rules and must be used for projects related to road maintenance and rehabilitation, safety projects, and traffic control devices. 218 Restricted Park Land & Development
Fee
Fees collected from development projects. This fund is used for the acquisition of land and development of new park facilities and/or to add additional amenities at the City's existing parks that increase the capacity of the park. 219 Restricted Gen Government Facilities
Fee
Fees collected from development projects. This fund is used to fund government facilites to maintain the existing level of service the City provides. As new development occurs, the City will be required to expand general facilities to maintain the existing standard. 220 Restricted Fire Facilites Fee Fees collected from development projects.Fees collected from development projects. This fund is used to fund new fire facilities that are necessary to maintain the existing level of service the City provides. 221 Restricted Stormwater Facilities Fee Fees collected from development projects. This fund is used to fund new development's fair share of stomrwater facilities that are necessary to mitigate the impacts of new development in the City. 233 Restricted Human Services &
Community Fund
Human Services & Community Fund accounts for revenue obtained by the solicitation of voluntary contributions from residents and property owners through water and sewer bills and other means of collection or fundraising activities to fund programs or activities which

240-246 Restricted Police Grants Funds
The Police Grants Fund accounts for grant activities and services paid and reimbursed by grant funding from Federal, State, County and local government agencies. These funds are designed for specific police services, activities and capital equipment. The current source of revenues is the Citizens Option
for Public Safety or COPS grant used to augment public safety expenditures 247 Restricted Supplemental Planning
Grant
Supplemental Planning Grant funds for local governments to address California’s critical housing needs. The grant awards to accelerate housing production by streamlining the approval of affordable housing and promoting development consistent with the State’s planning priorities, among other related activities.

Internal
Service
601 Unrestricted
Employee Benefits
Workers Compensation
General Liablity
The General Liability Fund covers the cost of the City’s insurance policies and payments liability claims against the City. Revenue for this fund is derived from internal service charges to City departments 400 Restricted Debt Service Fund The General Obligation Debt Service Fund accounts for the accumulation of resources to pay general obligation principal and interest
402 Restricted Debt Service Fund
CREBS Debt Service Fund
Debt Service
278 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 374 of 375 ends

DR
Budget Resolutions Sec�on

NOT YET AVAILABLE
279 Agenda Item Number 8
City Council Meeting Packet of June 20, 2023

Page 375 of 375 ends

Sebastopol City CouncilJune 20, 2023

Sebastopol City Council
June 20, 2023