CITY OF SEBASTOPOL CITY COUNCIL
AGENDA ITEM REPORT FOR MEETING OF: February 18, 2025
=========================================================================================== To: Honorable Mayor and City Councilmembers
From: Emi Thériault, Community Development Director
Subject: Amendment Number one to the Kosmont & Associates Contract for consulting services supportive of the Enhanced Infrastructure Financing District (EIFD); Budget Adjustment of $15,000, and Authorize City Manager to Execute Contract Amendment =========================================================================================== RECOMMENDATIONS:
That the City Council Approve Amendment Number one to the Kosmont & Associates Contract for consulting services supportive of the Enhanced Infrastructure Financing District (EIFD); Budget Adjustment of $15,000 and Authorize City Manager to Execute Contract Amendment. Amendment isrequired for extension of time, expansion of project scope, and budget to perform fiscal analysis on the EIFD initiative.
EXECUTIVE SUMMARY:
On June 8, 2024, the Council authorized the City Manager to execute a $50,000 contract with Kosmont to provide Planning Services supportive of the Enhanced Infrastructure Financing District (EIFD) initiative. This cooperative project with the County of Sonoma, to evaluate the potential benefit of adopting a district supportive of infrastructure projects, has been funded by the County fully through this point. The last step of that contract called for Kosmont to prepare a proposal for Council to adopt a Resolution of Intent supportive of the district.
However, before Council and the Board of Supervisor’s review of the proposal for adoption, a fiscal analysis would be prudent and was directed by the City Council. The original contract will need to be amended with respect to time, scope and budget to provide for that analysis. The County has indicated it expects the City to pay for half of the cost of the fiscal analysis. For that reason, this proposal brings forward a request for a Budget allocation that would cover the cost of 50% of the budget related to the expanded project scope.
This agenda item is a request for Council to approve the Consultant, Kosmont Companies, and authorize the City Manager to execute an Agreement with the firm to provide Planning Consultant Services as well as perform all work required for the project, as described in the proposal from Kosmont Companies (Kosmont Proposal, attached).
BACKGROUND AND DISCUSSION:
The City has been exploring the possibility of forming an EIFD to pay for qualifying infrastructure projects. The City and County share the goal of financing projects of community-wide significance within the EIFD’s boundaries or the surrounding community. The Council has discussed EIFD during Council Meetings on June 18, 2024, September 3, 2024, and November 19, 2024.
The City and County are exploring potential boundaries for 2 EIFDs. The County is contemplating joining both districts (a joint district together with the City and a separate district for the West County). Kosmont’ s initial scope starting date was June 2024 which included identifying potential boundaries and initial screening area, completion of the feasibility study, then adoption of a Resolution of intentions by the Board of Supervisors and the City of Sebastopol City Council in December 2024. Due to the suggested expanded scope of work, the Resolution of Intent has been tabled and an extension for time is necessary.
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Table 1: Contract Scope (original):
2024
Tasks JUN JUL AUG SEP OCT NOV DEC
1 Identify Potential Boundaries
and Initial Screening Criteria
(assumes three weeks for
City/County staff review)
X X X
Completed
2 Tax Increment Analysis
(assumes three weeks for
City/County staff review)
X X
Completed
3 Identify Infrastructure Needs
(assumes three weeks for
City/County staff review)
X X X
Completed
4 Next Steps for Implementation
(assumes three weeks for
City/County staff review)
X
Completed
5 Public Outreach / Presentations
(assumes three weeks for
City/County staff review of
presentation materials)
X X X
Completed
6 Resolutions of Intention
(assumes two weeks for City
Attorney / County Counsel
review)
X
Tabled
pending
Fiscal
Analysis
Amendment No. 1 Expanded Scope:
The full expanded scope is outlined in Exhibit A to the attached Resolution. A Summary of the fiscal analysis is as follows:
Task 1: Fiscal Impact and Economic Benefit Analysis.
To determine the financial impacts participation in a financing district, Kosmont will estimate the primary revenues (e.g., property tax, direct and indirect sales tax, hotel transient occupancy tax), primary expenditures (e.g., public safety service costs, community services), and resulting net fiscal impact to be generated for the City and the County from EIFD implementation.
Consultant will additionally apply an IMPLAN-based analysis to estimate the employment (job creation), labor income (wages), and economic output (value of goods and services produced) benefits to be derived from both construction and ongoing operation within the financing district. Direct, indirect, and indirect (multiplier) impacts will be reflected.
Kosmont will assist staff with integration of analysis findings into the City’s existing long-term fiscal model. Kosmont anticipates virtual participation in two check-in meetings and one public meeting as part of this Task for each body (City Council and Board of Supervisors).
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STAFF ANALYSIS:
Staff has reviewed the extended schedule, scope of work and budget allocation and is recommending the Council support the request and authorize the City Manager to execute an amendment to the agreement with the Consultant. Staff is suggesting an extended term to September 15, 2025 to ensure there is adequate time to process related deliverables (such as the Resolution of Intent from the original scope, related County processes, and demands on staff time for other Council priorities such as Housing Element implementation needs).
COMMUNITY OUTREACH:
This item has been noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to the scheduled meeting date.
FISCAL IMPACT:
The additional cost of the contract for the expanded scope of work is $15,000. The County Board of Supervisors (BOS) has covered the entire $50,000 for work to date. However, County representatives have expressed interest in the City contributing to the expanded scope budget, suggesting a 50% match. The Board of Supervisors met on February 11, 2025 and approved allocation of $7,500 toward the amendment scope of work budget as anticipated.
These funds will fund 50% of the additional costs. The language of the authorizing resolution intentionally suggests the Budget Adjustment be “up to” $15,000 for this reason.
This item requires a budget adjustment of $15,000 from the General Fund account number 100-00-00-3206.
However, given that the County has decided to cover 50% of the cost, the actual impact on the Budget will be reduced by $7,500, which would reduced by $7,500.
RESTATED RECOMMENDATION:
That the City Council Approve Amendment Number one to the Kosmont & Associates Contract for consulting services supportive of the Enhanced Infrastructure Financing District (EIFD); Budget Adjustment of $15,000 and Authorize City Manager to Execute Contract Amendment. Amendment is required for extension of time, expansion of project scope and budget to perform fiscal analysis on the EIFD initiative.
OPTIONS:
1. Deny further work on the EIFD initiative or
2. Provide additional direction to staff
ATTACHMENTS:
Resolution
Kosmont Contract Amendment No. 1 with Exhibit 1-Expanded Scope APPROVALS:
Department Head Approval: Approval Date: 1.22.25
CEQA Determination (Planning): Approval Date: 1.22.25
The proposed action is not a project under the California Environmental Quality Act (CEQA) Agenda Item Number 9 Agenda Item Number: 9
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Administrative Services (Financial) Approval Date: 1.18.25 Costs authorized in City Approved Budget: ☐ Yes ☒ No ☐ N/A Account Code 100-00-00-3206 _____________
City Attorney Approval: Approval Date: 1.22.25
City Manager Approval: Approval Date: 2.04.25
Agenda Item Number 9 Agenda Item Number: 9
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RESOLUTION NUMBER: XXXX-2025
CITY OF SEBASTOPOL
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTOPOL AUTHORIZING A BUDGET AMENDMENT OF $15,000 IN
SUPPORT OF THE ENHANCED INFRASTRUCTURE FINANCING DISTRICT (EIFD) INITIATIVE CONDUCTED IN PARTNERSHIP
WITH THE COUNTY OF SONOMA, APPROVING CONSULTANT CONTRACT AMENDMENT NUMBER ONE WITH KOSMONT
AND ASSOCIATES, AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AMENDMENT TO THE AGREEMENT WHEREAS, On June 8, 2024, the Council authorized the City Manager to execute a contract with Kosmont to provide Planning Services supportive of the Enhanced Infrastructure Financing District (EIFD) initiative; and WHEREAS, this contract supports a cooperative project with the County of Sonoma, to evaluate the potential benefit of adopting a district supportive of infrastructure projects; and WHEREAS, before Council and the Board of Supervisor’s reviewed the proposal for adoption, it was determined that expansion of the Consultant contract scope to include a fiscal analysis would be prudent; and WHEREAS, an expansion to the contract timeline to provide additional time to perform the analysis would be necessary; and
WHEREAS, subject to County of Sonoma Board of Supervisor action on full coverage of the amended budget of $15,000, the proposed budget adjustment for this request is for up to, but not-to-exceed $15,000 to be applied to the General Fund.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Sebastopol does hereby approve a budget amendment of up to $15,000 identified in the account listed in 100-00-00-3206; and NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council of the City of Sebastopol does hereby approve Amendment Number 1 to the Kosmont Consultant Contract supportive of the EIFD initiative and authorizes the City Manager to execute the Contract Amendment and make minor adjustment as needed.
The above and foregoing Resolution was duly passed, approved, and adopted at a meeting by the City Council on the 18th day of February, 2025, by the following vote:
I, the undersigned, hereby certify that the foregoing Resolution was duly adopted by the City of Sebastopol City Council by the following vote:
VOTE:
Ayes:
Noes:
Absent:
Abstain:
APPROVED:
Stephen Zollman, Mayor
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ATTEST:
Mary Gourley, Assistant City Manager/City Clerk, MMC
APPROVED AS TO FORM:
Alex Mog, City Attorney
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Docusign Envelope lD: 4D2E00F5-D762-4EFE-BM1-1MDEAC4FB7B Exhibit A
AMENDMENT NO. 1
FOR CONSUTTING SERVICES
CITY OF SEBASTOPOLAND KOSMONT AND ASSOCIATES, lNC. dba Kosmont Companies This Amendment Number 1- ("Amendment No. 1-") is made by and between the City of Sebastopol ("City") and Kosmont and Associates, lnc., dba Kosmont Companies ("Consultant"), together sometimes referred to as the "Parties," as of this 18th day February, 2025, and amends the Agreement dated July L5, 2024 ("Agreement"), between the Parties with regard to Enhanced lnfrastructure Financing District project.
WHEREAS, the Parties desire to amend the Agreement to expand the scope of work; and WHEREAS, the amount of Amendment No.1 is not to exceed S15, 000 for completion of the expanded scope project budget.
WHEREAS, the expanded scope of work will be completion of a fiscal analysis of the City/County cooperative El FD project.
Now, THEREFORE, it is mutually agreed by and between the undersigned Parties as follows:
Scope of Work
The scope of work to be completed by Consultant is amended to include the expanded scope of work set forth in Exhibit l-, attached hereto and incorporated herein by reference (the "Expanded Scope of Work").
o Deliverablesinclude:
Fiscal lmpact ond Economic Benefit Analysis.
As a means of demonstrating benefits to the primary affected taxing entities (the City and the County)for potential participation in a financing district, Kosmont will estimate the primary fiscal revenues (e.g., property tax, direct and indirect sales tax, hotel transient occupancy tax), primary fiscal expenditures (e.g., public safety service costs, community services), and resulting netfiscal impact (fiscal revenues net of fiscalexpenditures)to be generated for the City and the County from EIFD implementation.
Consultant will additionally apply an IMPLAN-based analysis to estimate the employment (job creation), labor income (wages), and economic output (value of goods and services produced) benefits to be derived from both construction and ongoing operation within the financing district. Direct, indirect, and indirect (multiplier) impacts will be reflected.
Kosmont will assist staff with integration of analysis findings into the City's existing longterm fiscal model. Kosmont anticipates virtual participation in two check-in meetings and one public meeting as part of this Task.
Services to include Dual Process
Project includes two separate ElFDs. Consultant agrees to attend one publicly noticed hearing for each body (City and County) for related Fiscal Analysis review in addition to
1. o
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Docusign Envelope lD: 4D2E00F5-D762-4EFE-BM1-1AADEAC4FB7B any time associated with the original contract scope for presentation of the Resolution of lntent to each respective body.
Schedule
Consultant shall commence the Expanded Scope of Work upon receipt of the fully executed Amendment No. 1, and shall complete the Expanded Scope of Work within five (5) weeks from execution of Contract..
Contract Amount
The City shall pay Consultant Tan amount not-to- exceed S15,000 for competition of the Expanded Scope of Work. Consultant's time will be invoiced at Consultant's billing rates as reflected in Attachment A of Exhibit 1.
4. Term
The term of the Agreement shall be extended to the 15th day of September 2025. This extended term is inclusive of the Expanded Scope task schedule as well as time needed for City and County staff to analyze the report, issue public notices, and prepare staff reports/related materials for consideration of the Fiscal Analysis and the Resolution by the City of Sebastopol and the County of Sonoma Board of Supervisors.
All other terms shall remain in full force and effect.
ln WITNESS WHEREOF, the Parties have caused this Amendment to be executed the day and the year first above written.
CITY OF SEBASTOPOL CONSULTANT
byi
bu'" lrttra
Don Schwartz, City Manager Ken Hira, President
2/7 /202s
Date: Date:
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2/18/2025 SEBASTOPOL CITY COUNCIL
ACTION ITEM:
BUDGET ALLOCATION AND
KOSMONT CONTRACT AMENDMENT NO.1
(EIFD INITIATIVE SUPPORT)
• Supportive of fiscal analysis for a City/County
joint project.
• Amendment to Contract for time, expanded
scope and budget.
Agenda Item Number 9 Agenda Item Number: 9
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STAFF RECOMMENDATION
SEBASTOPOL CITY COUNCIL ACTION ITEM:
Budget Adjustment and Kosmont Contract Amendment No. 1
2/18/2025
• Approve a Budget adjustment for an “up to” not to
exceed amount of $15,000
• Approve Kosmont Contract Amendment No. 1 and
Authorize City Manager to execute contract
Potential EIFD Boundary
Draft Proposed Configuration Only
Agenda Item Number 9 Agenda Item Number: 9
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Background
3 ▪ June 8, 2024-Council authorizes contract supportive of Enhanced Infrastructure Financing District (EIFD) project
▪ Cooperative project with the County of Sonoma
▪ County reimbursed the City the full $50,000 for the original contract scope ▪ November 2024-City and County agree to delay action on EIFD report pending fiscal analysis
SEBASTOPOL CITY COUNCIL ACTION ITEM:
Budget Adjustment and Kosmont Contract Amendment No. 1
2/18/2025
Agenda Item Number 9 Agenda Item Number: 9
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Kosmont Contract Amendment No. 1:
4 SEBASTOPOL CITY COUNCIL ACTION ITEM:
Budget Adjustment and Kosmont Contract Amendment No. 1
2/18/2025
▪ Time Extension through September 15, 2025
▪ Expanded scope - includes fiscal analysis
Analysis will help City Council/County BOS determine project priorities ▪ Cost: County to contribute/reimburse 50% of cost of expanded scope budget ▪ Action Authorizes City Manager to Execute Contract
Agenda Item Number 9 Agenda Item Number: 9
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Council Action Item - Recommendation:
5 1) Discuss Staff’s report, take public comment; and
2) Recommendation:
Approve the proposed Resolution by title/reference
(Approves Budget Adjustment, Contract Amendment, and Authorizes City Manager to execute amended contract)
Budget Adjustment and Kosmont Contract Amendment No. 1
2/18/2025
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THANK YOU
Emi Thériault, AICP
Community Development Director
[email protected]
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