CITY OF SEBASTOPOL RESOLUTION
NUMBER 6792-2026
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTOPOL APPROVING A BUDGET AMENDMENT TO TRANSFER $350,354 FROM THE GENERAL RESERVES FUND TO THE WATER AND
SEWER ENTERPRISE FUNDS FOR REPAYMENT OF CITY ATTORNEY
FEES
WHEREAS, the Sonoma County Civil Grand Jury issued a report concerning the City of Sebastopol’s Water and Sewer Enterprise Funds; and
WHEREAS, the Enterprise Fund Oversight Committee (EFOC), in its memorandum dated July 21, 2026, provided comments on the City’s proposed response to the Grand Jury Report and recommended, among other actions, the repayment of approximately $350,354 in City Attorney budget allocation charged to the Enterprise Funds for FY 24/25 and FY 25/26; and WHEREAS, the EFOC identified that approximately $350,354 in attorney fees were charged to the Enterprise Funds and has requested a preferred immediate reimbursement allocated as $130,867 to the Water Enterprise Fund and $219,487 to the Sewer Enterprise Fund; and
WHEREAS, restoration of these funds will help to improve the financial position of the Water and Sewer Enterprise Funds, enhancing their ability to support critical capital projects including Well #4 Replacement and the Pleasant Hill Loop, and to obtain external financing, particularly in light of future increased system demand associated with approved and pending new development; and
WHEREAS, the City Council finds that a budget amendment transferring $350,354 from General Fund Reserves to the Water and Sewer Enterprise Fundsis necessary and appropriate to implement the recommended repayment; and WHEREAS, the proposed action is not a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378(b)(4) (creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Sebastopol as follows:
The City Council hereby authorizes and directsthe immediate repayment of $350,354 in City Attorney budget allocation to the Enterprise Funds, with $130,867 reimbursed to the Water Enterprise Fund and $219,487 reimbursed to the Sewer Enterprise Fund; and
The City Council directs continued review and consideration of the remaining recommendations submitted by the Enterprise Fund Oversight Committee as part of the City’s ongoing long-term financial planning for the Enterprise Funds.
The above and foregoing Resolution was duly passed, approved, and adopted at a regular meeting of the City Council of the City of Sebastopol held on the 4th day of August, 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
Docusign Envelope ID: 76A72903-5780-830F-814C-C0F54BB36951 APPROVED:
Mayor, Jill McLewis
ATTEST:
Mary Gourley, City Manager
APPROVED AS TO FORM:
Alex Mog, City Attorney
Docusign Envelope ID: 76A72903-5780-830F-814C-C0F54BB36951