RESOLUTION NO. [6742-2026]
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTOPOL RESCINDING RESOLUTION NO. 6693- 2025, TERMINATING THE AGREEMENT WITH THE SEBASTOPOL AREA CHAMBER OF COMMERCE AS
FISCAL AGENT FOR THE SEBASTOPOL DOWNTOWN ASSOCIATION BUSINESS IMPROVEMENT DISTRICT
FUNDS, AND AUTHORIZING THE CITY TO ASSUME THE FISCAL AGENT ROLE WHEREAS, pursuant to Ordinance No. 666 (as amended), the City of Sebastopol established the Sebastopol Downtown Business Improvement District (BID) and collects special assessments from businesses within the district for the purpose of funding improvements and promotions, including parking facilities, public decorations, events, music, business promotion, and other authorized purposes; and WHEREAS, on September 2, 2025, the City Council adopted Resolution No. 6693-2025, approving an Agreement between the City of Sebastopol and the Sebastopol Area Chamber of Commerce (the "Chamber") for delegation of certain duties, including serving as fiscal agent for the administration and management of BID funds (the "Agreement"), effective September 3, 2025, and continuing until September 3, 2030 unless terminated earlier; and
WHEREAS, the Agreement authorized the Chamber to develop and administer budgets for BID funds, subject to annual City Council review and approval, and to carry out authorized activities in the BID; and WHEREAS, the Sebastopol Area Chamber of Commerce has notified the City of its withdrawal as fiscal agent for the BID funds; and
WHEREAS, to ensure continuity of administration, compliance with BID law, transparency in fund use, and support for downtown businesses and vitality, it is necessary and in the best interest of the City and the BID-assessed businesses for the City to rescind the prior resolution, terminate the Agreement, and assume the fiscal agent role; and
WHEREAS, rescission of Resolution No. 6693-2025 and termination of the Agreement will operate prospectively, preserving any prior lawful expenditures or actions taken under the Agreement, and allowing for orderly transfer of any remaining BID funds and records to the City.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Sebastopol as follows:
1. The City Council hereby rescinds Resolution No. 6693-2025 in its entirety, effective immediately upon adoption of this Resolution.
2. The City Council hereby terminates the Agreement between the City of Sebastopol and the Sebastopol Area Chamber of Commerce for delegation of duties and fiscal agent responsibilities related to the Sebastopol Downtown Association Business Improvement District funds, effective immediately upon adoption.
3. The City of Sebastopol hereby assumes the role of fiscal agent for the BID funds, to hold, administer, budget (with input from downtown business representatives or a Standing Committee as directed), and disburse such funds solely for purposes authorized by Ordinance No. 666, California law, and future City Council direction.
4. The Interim City Manager (or designee) is authorized and directed to:
Docusign Envelope ID: 102FD43D-696A-49DF-98B8-5482A9FA7BD6 o Notify the Sebastopol Area Chamber of Commerce in writing of the termination and request prompt transfer of any remaining BID funds, financial records, budgets, reports, and other relevant documents to the City.
o Coordinate an orderly transition, including any necessary accounting reconciliation. o Implement mechanisms for receiving input on BID expenditures as previously directed by the City Council.
o Take all other actions necessary to effectuate this Resolution.
5. This Resolution shall take effect immediately upon adoption.
6. Any prior resolutions or actions inconsistent herewith are repealed to the extent of such inconsistency.
IN COUNCIL DULY PASSED, APPROVED AND ADOPTED this 17th day of March, 2026.
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: Councilmembers Carter, Hinton, Zollman, Vice Mayor Maurer and Mayor McLewis Noes: None
Absent: None
Abstain: None
APPROVED:
Jill McLewis, Mayor
ATTEST:
Mary Gourley, Interim City Manager/City Clerk, MMC
APPROVED AS TO FORM:
Alex Mog, City Attorney
Docusign Envelope ID: 102FD43D-696A-49DF-98B8-5482A9FA7BD6
EXHIBIT A
Docusign Envelope ID: 99AE9F95-D041-4BA2-94E2-2C8D40F3828B Agenda Item Number: 10 Agenda Item Number: 10
City Council Meeting Packet of: March 17, 2026
Docusign Envelope ID: 102FD43D-696A-49DF-98B8-5482A9FA7BD6