Sonoma City Council
February 7, 2024

We also expanded our Back Lifting Safety Training
Program from distribution centers to major shipping
hubs and larger branches. And we improved our
medical management of injuries – partnering more
closely with medical providers that understand the
specific work we do. These medical professionals
provide a more comprehensive assessment and
evaluation, and properly determine if each associate
is fit to return to work.

To help prevent injuries to new hires, we also
continued our New Hire Health & Safety
30-60-90 Onboarding Training Program in FY2023
– designed to prepare each new associate to work
safely in our distribution centers, branch network
and headquarters locations. The program provides
foundational knowledge about Ferguson’s health
& safety programs, with a mix of web-based
interactive learning and hands-on, location-specific
training preparing all new associates with all
they need to be part of our First in Safety culture.

Training is executed by both people managers and
designated trainers.

During FY2023, Ferguson’s total recordable injury
rate (TRIR) decreased by 14% and lost time rate (LTR)
was down 21% – both marked improvements on the
numbers reported in FY2022. Overall, through our
focus on the fundamentals of safety, the revamping
and expansion of our health & safety training, and our
First in Safety culture, we are reducing the number of
recordable injuries.

Prioritizing Health & Safety (continued)
During FY2023,
Ferguson’s total
recordable injury rate
(TRIR) decreased by
14% and lost time
rate (LTR) was down
21% – both marked
improvements on the
numbers reported in
FY2022.

Figure 1: Company total recordable injury rate
Company 2023 Total recordable injury rate: 1.80 – 14% improvement (2022: 2.09)

1.0 1.5

2.0 2.5

3.0 Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul
2023 2022
Figure 2: Company lost time rate
Company 2023 Lost time rate: 0.48 – 21% improvement (2022: 0.61)

0.4 0.5

0.6 0.7

0.8 Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul
2023 2022
35 Ferguson
ESG Report
We are
Ferguson
Our approach
to sustainability
Our commitment
to the environment
Leading a
responsible business
Data and
frameworks
Building a
better world
56 Agenda Item #9.2:

We work to understand the sustainability goals both
our suppliers and customers have in place and how
we can partner to achieve collective success. We also
pursue opportunities to connect within our industry
to find new ways to collaborate with suppliers to
educate customers and maximize our reach.

To help achieve our own sustainability goals, we
partnered with CDP, a global non-profit organization
specializing in environmental impact reporting. And,
for the second consecutive year, we requested
that our largest suppliers join us in disclosing their
sustainability performance through CDP’s Climate
Change Questionnaire – something Ferguson itself
has been doing since 2013. We provide guidance and
encourage suppliers to reach out to our team to share
best practices and discuss partnership opportunities.

We continue to strengthen our quality control
procedures for sourcing products and quality teams
in our overseas entities continue to visit and assess
our suppliers. Each business also assesses its
suppliers against set criteria to provide protection to both us and our customers in the event of a product
failure or breach of regulation in the supply chain.

In FY2022, the Board approved a new Human Rights
Policy to help ensure compliance with applicable U.K.
and U.S. legal requirements that prohibit forced labor, child labor or human trafficking related activities.

You can read more about the policy on page 44
– and the U.S. Prohibition of Human Trafficking,
Forced Labor and Child Labor.

Working with and engaging
our suppliers
Ferguson works to collaborate with suppliers on the
innovation, design and manufacturing of sustainable
products and solutions – extending from sustainable
products to sustainable packaging. Our ability to
influence through a consultative process uniquely
positions us to positively impact the environment,
promoting products that are in demand by
customers, protect and conserve water, reduce
emissions and create a safer, healthier environment
at home and work.

Our supply chain responsibility
Supplier Code of Conduct
Ferguson is committed to managing a global supply
chain that is socially and environmentally responsible
and thereby mitigates risk and enhances value.

We request that higher-risk suppliers sign our Supplier Code of Conduct (SCOC) – or operate under their
own comparable business conduct principles – and
reserve the right to terminate a business relationship
with any supplier that violates any of our principles.

The SCOC includes requirements for social responsibility, including human rights and labor standards,
standards for meeting environmental regulations and
providing safe working conditions, measures for antibribery and corruption and supply chain transparency.

It also requires suppliers to provide information requested by Ferguson related to the use of conflict minerals
– as defined by Section 1502 of the United States
Dodd-Frank Wall Street Reform and Consumer
Protection Act – in products supplied to Ferguson.

Our Approach to Conflict Minerals
In accordance with the Organization for Economic
Cooperation and Development (OECD) Due Diligence
Guidance for Responsible Supply Chains of minerals from Conflict-Affected and High-Risk Areas, and using the
Responsible Minerals Initiative (RMI)’s Conflict Minerals Reporting Template (CMRT), in FY2022 we conducted a
reasonable country of origin inquiry to determine whether relevant products contain conflict minerals that originated in certain covered countries. Our conflict minerals report filed with the U.S. Securities and Exchange Commission
can be found on the Securities and Exchange
Commission (SEC) filings page of our website.

Maintaining diversity across
our supply chain
The diversity of our suppliers is important to Ferguson – and we believe investing in their success is smart
business. We strive to provide opportunities for small, minority-, women-, veteran- and service-disabledowned businesses to grow through our supplier diversity initiatives – in turn creating inclusive wealth for these companies. We’re now working on expanding
our partnerships to further diversify our supply chain.

The Distributor Alliance Program (DAP), our small
business reseller program, features 280 partners –
and sales through these partners totaled more than
$140 million in FY2023. The DAP enables Ferguson
to expand in new markets while growing our business
opportunities with diverse suppliers, and we’re working with select partners to team up and pursue larger
megaprojects under our DAP Teaming Initiative.

Ferguson also offers aspiring leaders within our
supplier network the opportunity to attend executive
education programs through our corporate
partnership with the Carolinas-Virginia Minority
Supplier Development Council. We recommend
high-performing individuals to help improve the
performance of their respective organizations,
which helps to innovate Ferguson’s supply chain.

As part of our commitment to maintaining
supplier diversity, we also partner with various
supplier diversity inclusion organizations
throughout Virginia and across the U.S.

Building and maintaining a responsible supply chain is the right thing to do – for our business, for the environment and for society.

We operate a global supply chain network, and we want to ensure we’re partnering with companies that are well positioned to mitigate long-term risk and enhance value.
36 Ferguson
ESG Report
We are
Ferguson
Our approach
to sustainability
Our commitment
to the environment
Leading a
responsible business
Data and
frameworks
Building a
better world
57 Agenda Item #9.2:

Ferguson Ventures
Pearl Certification
We’re also focused on making homes more efficient,
comfortable and sustainable, and as such Ferguson
Ventures has invested in Pearl Certification. Pearl is
a third-party certification program that educates
homeowners and contractors on the value of
using sustainable products – and that certifies the
professional installation of high-efficiency equipment.

Ferguson utilizes the Pearl Certification’s Green Door
application as the platform’s exclusive eCommerce
distributor to connect our suppliers with homeowners
seeking sustainable products. Pearl is also helping
Ferguson educate trade professionals on ways to use
the Inflation Reduction Act to grow their businesses
by increasing the installation of high-efficiency HVAC
equipment and water heaters.

Greyter
We are committed to helping our customers design
and build water-resilient communities – and, as part
of this effort, Ferguson Ventures invested in Greyter
in FY2022. Greyter provides water recycling solutions
for residential and commercial buildings that reduce
indoor water consumption.

Greyter HOME is an NSF-350-certified system
that captures water from showers and bathtubs and
treats it to a near-potable quality to meet a home’s
toilet-flushing demands – reducing a community’s
use of drinking water to flush toilets. Greyter Water
Systems can supply all the water for a building’s toilet flushing and irrigation, saving an estimated 30% in
water use.

In FY2023, the first Greyter community project
was realized in Castle Rock, Colorado, where
Greyter HOME was installed in 29 homes in the
Redhawk community.

Ferguson is the exclusive distributor for Greyter
products in North America and is engaging builders
and municipalities on solutions to reduce water
consumption within the home – furthering our
commitment to provide customers with products
that lower their environmental impact.

Ferguson Ventures is the
Corporate Venture Capital (CVC)
and strategic partnering arm
of Ferguson, collaborating with
and investing in startups solving
challenges in the built world.

Our vision is to provide these innovators with the
resources, industry expertise and capital necessary
to launch transformation in the construction and
services industries that will create a better future
– while also providing early visibility to innovation
that Ferguson can use to better support our
customers’ projects.

We focus on technologies that help our customers
build more efficiently through generative design,
model-to-fabrication workflows and offsite
construction. These technologies reduce waste
on construction sites and improve efficiencies
for skilled trades workers.

In addition, we focus on advancements in
environmental and sustainable products relating to
a reduction in water and energy consumption – in
turn helping our customers build more sustainably.

By continuing to grow our partnerships in these areas,
we accelerate our business strategy and capabilities.
37 Ferguson
ESG Report
We are
Ferguson
Our approach
to sustainability
Our commitment
to the environment
Leading a
responsible business
Data and
frameworks
Building a
better world
58 Agenda Item #9.2:

Diverting waste to support
our communities
Through our partnership with Good360 – a nonprofit
that works with socially responsible companies to
close the needs gap – Ferguson donates excess
inventory from our distribution centers.

This diverts waste from landfills while supporting
disaster survivors, the housing insecure, disabled
veterans and others who may otherwise go without
the basic products they need to thrive. In FY2023,
nearly 100 nonprofits benefitted from donations
– representing more than 2.5 million pounds of
excess inventory being put to good use.

Nation and in rural Appalachian communities,
and increase its capacity through training and
job opportunities.

In FY2023, Denise Vaughn – Ferguson’s Vice
President of ESG – was appointed to DigDeep’s
Board of Advisors. Denise’s appointment
demonstrates Ferguson’s commitment to clean water
and sanitation, and ensuring every family in the U.S.
has access to clean water and proper sanitation.

Supporting affordable housing
and neighborhood revitalization
initiatives
In FY2023, we continued our local partnerships
with Habitat for Humanity chapters around the
U.S., including our longstanding partnership
with our hometown affiliate, Habitat for Humanity
Peninsula Greater Williamsburg.

We helped construct two sustainable 3D-printed
houses in Newport News, VA, and donated the
rough and finished products, lighting and appliances
for these homes. Where possible, we donated
sustainable products including Energy Star- and
WaterSense-rated appliances, to further enhance
the sustainability of the homes.

We continued our national partnership with Rebuilding
Together, a leading nonprofit organization for repairing homes of people and families in need. Our combined
support helps revitalize neighborhoods, enabling
families to remain where they love while building
safer homes and communities for all.

In addition, we’re committed to supporting the
development of our hometown of Newport News,
Virginia. Here, we expand our focus to include
the area’s social and economic wellbeing.

Expanding access to clean
water and proper sanitation
As part of our commitment to building water
resilient communities by ensuring the availability
and sustainable management of water resources,
Ferguson was accredited to attend the UN 2023
Water Conference – the first global water conference
since 1977. More than 10,000 participants convened
at the UN’s headquarters in New York City, to advance
the Water Action Agenda.

Alongside our partner, DigDeep, we are helping
to close the water access gap for families in the
U.S. – bringing clean water, innovative solutions
and economic opportunity to communities that lack
access to water. With our support, the organization
was able to expand its community-led WASH work to
bring clean, running water to households in the Texas
colonias, pilot wastewater solutions on the Navajo
Ferguson Cares is how we take care of our
communities, encourage our associates to volunteer
and give back, and ensure our organization continues
to serve as a good corporate citizen. Ferguson Cares
reflects how we work as a team to deliver solutions
to social challenges and create lasting value for our
stakeholders – working with dedicated community
partners to create a future that everyone can be
proud of.

Ferguson Cares is well integrated into the business
today. We’re committed to developing partnerships
with nonprofit organizations based in and serving
the U.S. with a focus on three key areas:

1. Clean water and sanitation: Expand access
to clean water and proper sanitation.

2. Housing: Support affordable housing
and neighborhood revitalization projects
and initiatives.

3. Support of skilled trades: Build a
sustainable skilled trades workforce.

Ferguson Cares
Ferguson’s culture is grounded in our commitment
to prioritizing the care and wellbeing of our associates, customers and communities – and that inspires us to create meaningful impacts through our community engagement
program, Ferguson Cares.
38 Ferguson
ESG Report
We are
Ferguson
Our approach
to sustainability
Our commitment
to the environment
Leading a
responsible business
Data and
frameworks
Building a
better world
59 Agenda Item #9.2:

Accelerating change together
In partnership with other leading corporations
in our hometown, we selected the first recipient
of our transformational Accelerating Change
Together (ACT) grant.

We chose Virginia Beach City Public Schools to
receive funding of $500,000 over three years, which
will be used to provide industry-standard training and
build a workforce pipeline to the renewable energy
sector – specifically in solar, offshore wind and
electric vehicles – through the school system’s
Career and Technical Education program.

Developing the next generation
We support Explore the Trades – a nonprofit
organization with a mission to recruit individuals
to the plumbing, heating, cooling and electrical
trades – with a grant program called ‘Explore the
Trades Skills Labs, Built by Ferguson.’ Our joint
mission is to build and develop the next generation
of plumbers and HVAC technicians.

Now in its second year, the program’s focus has
been expanded to not only include the creation
of new skills labs, but also include middle schools
and those schools in need of updated equipment
– with grants awarded to 11 schools – impacting
approximately 850 students – in FY2023.

In addition, we’ve extended our partnership with ACE
Mentor Program of America through FY2027. ACE is
a free, award-winning afterschool program designed
to attract high school students across 38 states into
pursuing careers in the Architecture, Construction
and Engineering industry.

Ferguson associates also volunteer as mentors with
ACE, working directly with students to guide them
through their education and into the skilled trades.

And Todd Young, Vice President of Ferguson’s
Commercial Customer Group, is an active member
of ACE Mentor’s Board of Directors and serves on
the CMIC-Allen Berg Scholarship Committee – which,
in partnership with ACE, awards scholarships to
high school students enrolling in accredited college
programs in architecture, construction, interior design and engineering.

We also support the mikeroweWORKS Foundation,
which strives to elevate opportunities in the trades
and help close the skills gap by challenging the
stigmas and stereotypes that discourage people
from pursuing trade jobs. Each year, mikeroweWORKS
provides financial assistance to students pursuing
skilled trade programs through its Work Ethic
Scholarship Program—in FY2023,
mikeroweWORKS awarded $1 million in
scholarships to 200 recipients across 41 states.

Building a sustainable
skilled trades workforce
With the entire baby boomer generation set to reach
retirement eligibility by 2030, we see an exciting
opportunity to redefine the skilled trades landscape.

And, while the shortage of skilled professionals is
already being felt, the next five years offer a chance
for transformation.

Alongside our efforts to encourage young talent
to explore trade careers, we’re working to support
the integration of underrepresented groups,
notably women.

According to the U.S. Bureau of Labor Statistics,
women make up just shy of 11% of the U.S.
construction workforce. To help tackle this
imbalance, Ferguson stepped up as a founding
sponsor of Women in Plumbing and Piping
(WiPP), an organization providing a community of
connection and empowerment for women in the
plumbing and piping industries to thrive personally
and professionally.

Our collaboration with WiPP is a commitment
to shaping a more inclusive future for the
skilled trades. WiPP’s four pillars – mentorship,
education, networking and recognition – reflect a
comprehensive strategy for attracting more women
into the industry and equipping them with the tools
needed to excel.

Ferguson Cares (continued)
39 Ferguson
ESG Report
We are
Ferguson
Our approach
to sustainability
Our commitment
to the environment
Leading a
responsible business
Data and
frameworks
Building a
better world
60 Agenda Item #9.2:

Our approach 41
Our ESG Governance 42
Managing an ethical business 44
Leading
a responsible
business
40 Ferguson
ESG Report
We are
Ferguson
Our approach
to sustainability
Our commitment
to the environment
Building a
better world
Data and
frameworks
Leading a
responsible business
61 Agenda Item #9.2:

Our approach
The primary responsibility of Ferguson’s Board of
Directors is to ensure the long-term, sustainable
success of our company – and it has a vested interest
in improving Ferguson’s environmental, social and
governance (ESG) performance.

The Board sets Ferguson’s strategic direction,
ensuring that strategy is aligned with our purpose and
culture, and promotes and protects our interests for
the benefit of all our stakeholders. The Committees
of the Board support the Board in the fulfillment
of its duties and take strategic decisions of a
substantive nature.

Ferguson engages executive search firms to
identify candidates that bring considerable financial,
operational and industry experience to the Board
and its Committees. Our Board members have
impressive track records of value creation and have
served on boards of large or international publicly
listed companies with significant operations across
the globe.

Key elements of the process for each role includes
the appointment of qualified recruitment consultants,
developing a specification for candidates, reflecting
the importance of diversity, selecting a long- and
shortlist of candidates, holding interviews, conducting reference checks and finally recommending preferred
candidates to the Board.

Ferguson engages
executive search firms to
identify candidates that
bring considerable financial,
operational and industry
experience to the Board
and its Committees.

Ferguson has always taken pride in maintaining
effective corporate governance that supports
our core values and underpins our ability to
set our overall strategic direction.

The ESG Steering Committee’s purpose is to
assist the Executive Committee in overseeing the
company’s ESG-related key risks and opportunities
that may have a significant impact on the company
and its ability to sustain trust with associates,
customers, suppliers and the investment community.

Ferguson Cares Committee
The Ferguson Cares Committee, led by the Director
of Social Impact, is a subset of the ESG Steering
Committee and provides oversight for the company’s
social impact initiatives.

Environmental Leadership
Council (ELC)
The ELC comprises a cross-functional group
including, Ferguson Ventures, and our marketing,
communications and ESG teams, along with leaders
across our customer groups, who have responsibility
for influencing the purchase of sustainable products
and solutions – and who are involved in moving
Ferguson up the funnel, closer to the source of funds.

The ELC influences the direction of our Environmental
Product Strategy and investment approach.

And because members are on the front line working
directly with customers and suppliers, it provides
direct access to customer insights and market trends.

Members are nominated by customer group and
functional leaders. They help provide constructive
feedback on our ESG areas of focus and support
Ferguson’s Environmental Product Strategy.

Ferguson’s sustainability
governance
The Board has structured its agenda to receive
regular updates on sustainability progress from
our Vice President of ESG – such as reviewing
project implementation and performance, and
opportunities to integrate sustainability measures
into capital expenditures.

The Nominations & Governance Committee is
responsible for providing oversight of our ESG
disclosure framework and related public disclosures,
including our ESG Report. Our CEO holds ultimate
responsibility in respect to performance on climaterelated issues. Our CFO is actively engaged in assessing risk related to climate change and,
alongside the Finance Committee, approves all
capital expenditures.

Our ESG department is a part of the Finance
organization, ultimately reporting to the Chief
Financial Officer. Our Vice President of ESG is
responsible for the day-to-day management of
our ESG priorities.

ESG Steering Committee
The VP of ESG chairs the ESG Steering Committee
– a cross-functional committee that includes leaders
responsible for the ESG Framework and ESG subject
matter experts from across the business.
41 Ferguson
ESG Report
We are
Ferguson
Our approach
to sustainability
Our commitment
to the environment
Building a
better world
Data and
frameworks
Leading a
responsible business
62 Agenda Item #9.2:

Our ESG governance
Board management and
composition
As of the date of this report, the Board
comprises 11 Directors: the Chairman, the
Chief Executive Officer, the Chief Financial
Officer and eight independent Non-Employee
Directors. 36% of the Directors are female
and all Directors possess strong and diverse
experience that is relevant to the sector in
which Ferguson operates and aligns with
Ferguson’s business strategy.

More details on the specific roles and
responsibilities of the Board and its
Directors, considerations related to
Director independence, as well as the
Board’s composition, succession and
evaluation practices, can be found in our
Corporate Governance Guidelines.

Geoff Drabble
Chairman
Catherine Halligan
Independent
Non-Employee Director
Thomas Schmitt
Independent
Non-Employee Director
Bill Brundage
Chief Financial Officer
Alan Murray
Independent Non-Employee
Director Employee
Engagement Director
Suzanne Wood
Independent
Non-Employee Director
Kelly Baker
Independent
Non-Employee Director
James S. Metcalf
Independent
Non-Employee Director
Executive compensation
Our Executive Compensation Framework is based
on our compensation philosophy, which ensures
alignment of executive and shareholder interests,
by providing market competitive total compensation,
fairly rewarding our executives for the contribution
they make to the business, and delivering a
significant amount of total compensation through
at-risk performance-based incentive compensation.

For our 2023 fiscal year, we incorporated into our
executive compensation program for all members
of our Executive Committee an ESG performance
metric tied to our overall progress against areas
such as safety, diversity, climate and governance.

This measure strives to ensure shared accountability
for, and incentivize progress towards, identified
ESG priorities and is responsive to evolving
shareholder expectations.

Kevin Murphy
Chief Executive Officer
Brian May
Independent
Non-Employee Director
Nadia Shouraboura
Independent
Non-Employee Director
42 Ferguson
ESG Report
We are
Ferguson
Our approach
to sustainability
Our commitment
to the environment
Building a
better world
Data and
frameworks
Leading a
responsible business
63 Agenda Item #9.2:

Our ESG governance (continued)
Ferguson is committed to maintaining an
Enterprise Risk Management (ERM) program
that considers and manages opportunities,
risks and uncertainties that may impact
achievement of its strategic objectives.

How we identify, assess and manage climate-related risks Climate-related risks and opportunities, including
existing and emerging regulatory requirements,
were initially identified by the ESG team based
on industry research, advancements in technology
and other sustainability trends.

Impacts are explored further through interviews and
document review with subject matter experts within
the company – including Fleet, Facilities, Investor
Relations, Legal, Business Continuity and Finance.

Climate-related risks and opportunities are
categorized using the Climate-Related Risks and
Opportunities Taxonomy as defined by the Task
Force on Climate-Related Financial Disclosures
(TCFD). Each identified risk is mapped to a
Ferguson risk area, based on its impact to income
before tax, market cap, reputation, dividend
payment, strategy and operations.

Climate-related risks and opportunities were
qualitatively prioritized based on their identified
time horizon, probability rating, impact rating
and mitigation status. Impacts of the most relevant
climate risks and opportunities are further analyzed
and quantified through scenario analysis.

Climate-related risks are not assessed as material
when applying the same threshold as our other
enterprise risks.

The primary responsibility for identifying,
assessing, and managing risks belongs with
company management. The VP of ESG is
responsible for daily climate-related issue
management, monitoring and integration into
business strategy and operations.

Integrating with our overall risk management
Ferguson is committed to maintaining an Enterprise
Risk Management (ERM) program that considers and
manages opportunities, risks and uncertainties that
may impact achievement of its strategic objectives.

The ERM program focuses on identifying and
mitigating risks that pose the most significant existing or emerging threat (enterprise risks) to the company’s
achievement of its strategic objectives.

The Chief Legal Officer (or designee) provides
centralized oversight of the ERM program and
works with key risk owners across the company.

The Board receives reports from the Audit Committee
on the management of enterprise risks, including the
effectiveness of applicable mitigations and controls.
43 Ferguson
ESG Report
We are
Ferguson
Our approach
to sustainability
Our commitment
to the environment
Building a
better world
Data and
frameworks
Leading a
responsible business
64 Agenda Item #9.2:

Managing an ethical business
U.K. Modern Slavery Act Statement
Ferguson is committed to extending the principles
of the UN Global Compact and Universal Declaration
of Human Rights to our workforce. Since 2016,
Ferguson has responded to the U.K. Government’s
directive under the Modern Slavery Act for concerted
action to tackle the occurrence of forced, involuntary
and child labor in the global supply chain.

Ferguson’s Supplier Code of Conduct, which comprises
requirements for social responsibility – including human rights and labor standards, standards for meeting
environmental regulations and providing safe working
conditions, measures for anti-bribery and corruption and supply chain transparency – codifies our commitment
to source from ethical suppliers to ensure the products we supply are safe, reliable and manufactured by
companies that share Ferguson’s values of integrity
and respect for the human dignity of workers, which
also helps mitigate risk and potential disruptions
from sourcing from suppliers that do not uphold such
standards. Over 1,500 suppliers, including higher risk
suppliers (as determined by our third-party risk matrix) have contractually pledged to abstain from use of
child, forced or involuntary labor in their operations.

Further, most of our suppliers are not in countries with a prevalence of modern slavery according to the Global
Slavery Index.

Please read Ferguson’s U.K. Modern Slavery Act
Statement for a detailed overview of the policies
and procedures we enforce throughout our global
supply chain.
training on Speak Up, discrimination, information
protection, information security, fraud and bribery
prevention, anti-retaliation and antitrust compliance.

We also offered optional training on ethical leadership, inclusion and diversity, and communicating with respect.

We provide periodic compliance training to associates
in certain roles through online educational resources
and face-to-face instruction.

We work to ensure that a strong ‘speak up’ culture
exists at every level of our company, in which our
associates feel comfortable raising concerns and
have a touchpoint for ethical dilemmas.

Ferguson’s Ethics Helpline – a public-facing online
portal – encourages our associates and business
partners to report concerns of misconduct. It also
allows associates to ask questions so they can embed
ethical decision-making into day-to-day operations,
mitigating the risk of serious misconduct.

To encourage reports and inquiries to the platform
without fear of retaliation, submissions can be done
anonymously. Further information on our approach
to ethics and compliance can be found on Ferguson’s
Ethics Helpline webpage.

Ferguson consistently evaluates its training and
awareness materials based on different metrics,
including data from the Ethics Helpline.

In FY2023 the company further matured its conflicts
of interest management process, allowing Ferguson
to more effectively and efficiently manage disclosures
of activities that may create a conflict of interest.

Ethics and business conduct
Ferguson’s governance framework is defined by
standard-setting documents, including the schedule
of matters reserved for the Board, each Board
Committee’s charter, the Ferguson Code of Business
Conduct and Ethics, our Corporate Governance
Guidelines and our other applicable policies and
procedures. These documents formally describe
our approach to decision-making and clearly assign
responsibilities to our leadership team, enabling them
to act with freedom and confidence when performing
their duties. They also establish a common set of
standards around behavior that align with our culture
and support the Board to ensure that Ferguson
continues to comply with its legal obligations.

Ferguson is committed to acting ethically in all its
business activities, while remaining compliant with
applicable laws and regulations. The standards that
we expect of our associates and those who may work
on our behalf are set out in our Code of Business
Conduct and Ethics – a resource dedicated to helping
our associates live by our values and follow all
applicable laws and corporate policies. Our Code of
Business Conduct and Ethics also provides guidance
on ethical situations where there is uncertainty over
how to proceed.

As part of our efforts to embody our values and
company-wide culture of integrity, we require all
new and current associates to complete the Code
of Business Conduct and Ethics training as part of
their onboarding process and annually thereafter.

Topics covered in the scenario-based training vary
year to year, and this year included mandatory
We work to ensure
that a strong ‘speak up’
culture exists at every
level of our company,
in which our associates
feel comfortable raising
concerns and have a
touchpoint for ethical
dilemmas.

Grace C. Wu de Plaza,
Group Head of Ethics
44 Ferguson
ESG Report
We are
Ferguson
Our approach
to sustainability
Our commitment
to the environment
Building a
better world
Data and
frameworks
Leading a
responsible business
65 Agenda Item #9.2:

Managing an ethical business (continued)
Data privacy
Our culture of integrity is demonstrated in
our commitment to customer and shareholder
data privacy. Ferguson takes the privacy and
security of personal information very seriously,
and we strive to uphold the highest standards
of information protection. We aim to ensure
the safekeeping of all digital information
entrusted to us.

Following the adoption of the California
Consumer Privacy Act (CCPA), Ferguson’s
relevant businesses implemented procedures
and controls needed to comply with this
legislation. As additional U.S. states have
passed comprehensive consumer privacy
laws – for example in Virginia, Colorado,
Connecticut and Utah – Ferguson has taken
an enterprise-wide approach to compliance
to ensure consistency throughout
the organization.

We have a Shareholder Privacy Notice in
place for all shareholders, outlining the personal
information we collect, how that information
is used, and what their rights are in relation
to that information.
email, the company intranet and leadership. We also
conduct phishing email campaigns to test associates
on their ability to identify and respond to phishing
attempts, and use software to protect the assets
within our environment and prevent emails that
may be malicious.

The Board, the Audit Committee and the Executive
Committee are regularly briefed on the status of
Ferguson’s IT-related risks, the implementation of
our strategic plan and the execution of operational
IT functions – especially relating to cybersecurity
– throughout the year.

IT General Controls are independently tested by
our Internal Audit team and the findings are reported
to the Audit Committee. In addition, Ferguson
regularly engages with independent third-party
partners to assess and consult on our cybersecurity
capabilities, prioritize areas of risk and assist with
execution of our strategic plans.

IT management consistently invests in processes,
resources and incremental technical defenses
necessary to prepare and bolster our systems
against emerging cybersecurity threats. We have
enterprise-level compliance processes and insurance
coverage in place, including data protection and
cyber liability – as well as policies that include an
Information Security Policy, a Privacy Policy and a
Record Retention Policy, among many others.

During FY2023 we updated our standardsdriven security program to the newly released ISO 27002:2022 standard. Utilizing the ISO
standard allows Ferguson to drive its risk and
capability program based upon maturity, and tie
areas of risk and capability to technology and
process investments.

Ferguson has implemented modernized technology
optimized for its hybrid on-premise and public-cloudfacing ecosystems, along with the associated security capabilities designed for a cloud-right hybrid model,
that supports the mobile-enabled enterprise.

Ferguson continues to maintain a 24/7/365
Security Operations Center (SOC) with enterprise
event visibility, as well as a formal Computer
Incident Response Team (CIRT). The SOC and CIRT
plans are continuously reviewed to identify areas
of enhancement. All these well-defined security
capabilities are housed within towers that are
staffed with specialized technical resources.

Ferguson also invests in training and education
to prevent cyber attacks. Our associates receive
ongoing communication on security awareness via
Mitigating material cyber risks
Ferguson faces global cybersecurity threats
ranging from uncoordinated individual attempts
to sophisticated and targeted measures – known
as advanced persistent threats – directed at
us and our customers, suppliers and vendors.

Cybersecurity incidents and network security
breaches may include, but are not limited to,
attempts to access or unauthorized access
of information, exploitation of vulnerabilities –
including those of third-party software or systems
– computer viruses, ransomware, denial of service
and other electronic security breaches.

It is common for the retail and distribution industry
to face cyber risks directed at payment mediums such
as credit cards and customers’ personal information.

These types of data are sought after by bad actors
as they have value on the dark web.

Ferguson has invested in a dedicated Information
Security team and IT professionals to support training, attack prevention and security response.

Information and cybersecurity
Information and cybersecurity are fundamental to
Ferguson’s relationships with its business partners,
and to our future growth and success as a company.

We have a clearly defined global technology strategy
and roadmap in place to protect the information
entrusted to us – and we believe our leadership team
is well-prepared to manage and mitigate emerging
cyber threats to our business systems.

Ferguson has implemented
modernized technology
optimized for its hybrid
on-premise and publiccloud-facing ecosystems.
45 Ferguson
ESG Report
We are
Ferguson
Our approach
to sustainability
Our commitment
to the environment
Building a
better world
Data and
frameworks
Leading a
responsible business
66 Agenda Item #9.2:

Managing an ethical business (continued)
Compliance with laws
and regulations
Ferguson is affected by various statutes, regulations
and standards in the countries and markets in which
we operate, and we strive to maintain full compliance
with all applicable laws.

While Ferguson is not engaged in a highly regulated
industry, it is subject to the laws governing businesses generally, including those related to competition,
product safety, privacy and data protection of user
data, labor and employment practices, accounting
and tax standards, international trade, fraud, bribery
and corruption, land usage, the environment, health
and safety, transportation and other matters.

Since the registration of the company’s shares in the
United States, we are subject to additional reporting
requirements of the Securities Exchange Act of 1934
(as amended), the Sarbanes-Oxley Act of 2002, the
listing requirements of the NYSE and other applicable
securities rules and regulations.

We monitor the laws and regulations governing
our markets in order to minimize the effects of
changes and maintain full compliance. We also
align enterprise-wide policies and procedures with
our key compliance requirements and monitor
their implementation.

We monitor the
laws and regulations
governing our
markets in order
to minimize the
effects of changes
and maintain full
compliance.
46 Ferguson
ESG Report
We are
Ferguson
Our approach
to sustainability
Our commitment
to the environment
Building a
better world
Data and
frameworks
Leading a
responsible business
67 Agenda Item #9.2:

Data
and frameworks
Ratings and rankings 48
ESG data 49
Ferguson SASB Disclosure Matrix: Multiline and
Specialty Retailers and Distributors 50
TCFD disclosure 54
47 Ferguson
ESG Report
We are
Ferguson
Our approach
to sustainability
Our commitment
to the environment
Building a
better world
Leading a
responsible business
Data and
frameworks
68 Agenda Item #9.2:

Many different ESG ratings firms evaluate Ferguson’s
performance on sustainability and measure our
performance. Below are key ratings from 2023.

The Sustainable Development Goals (SDGs) are a
set of interconnected goals designed in 2015 by the
United Nations General Assembly to help end extreme
poverty, reduce inequality and protect the planet by
2030. Ferguson has aligned its efforts with SDGs 6, 8
and 12, as these reflect our business strategy and are
areas in which we can have the greatest positive impact.

Learn more about the SDGs at sdgs.un.org.

Ratings and rankings
United Nations
Sustainable
Development Goals

DISCLOSURE INSIGHT ACTION
48 Ferguson
ESG Report
We are
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Our approach
to sustainability
Our commitment
to the environment
Building a
better world
Leading a
responsible business
Data and
frameworks
69 Agenda Item #9.2:

ESG data
Metric 2021 2022 2023
Carbon emissions
Scope 1 GHG emissions (MT CO2e) 165,211 172,473 171,279 Scope 2 GHG emissions – location-based (MT CO2e) 76,416 80,340 80,310 Total calculated Scope 3 GHG emissions (MT CO2e)1 192,110 214,604 225,335 Scope 1 and 2 emission intensity (MT CO2e / million USD of revenue) 10.6 8.9 8.5 Total energy consumed from all sources (GJ) 3,309,588 3,462,824 3,453,986 Percentage supplied from grid electricity 25% 24% 24%
Associates
Total associates2 32,000 36,000 35,000
Female associates 24% 25% 25%
Minority associates3 29% 30% 31%
Percentage of management positions held by female associates4 20% 22% 23% Percentage of management positions held by minority associates3,4 15% 16% 17% Associate engagement 56% 58% 55%
Safety
Associate Total Recordable Incident Rate (TRIR) 1.94 2.09 1.80 Associate Lost Time Incident Rate (LTIR) 0.61 0.61 0.48 1 Our reported Scope 3 includes Categories 3: Fuel- and energyrelated activities, Category 4: Upstream transportation and distribution, Category 5: Waste generated in operations, and Category 6: Business Travel. Our Scope 3 reporting may evolve as we continue to develop methodologies to quantify additional categories. 2 Associate accounting methodology based on total count of all management and non-management associates as of July 31, 2023. 3 Race and ethnicity data reflects U.S. workforce only. Minority data is self-reported by associates in accordance with SASB guidelines. 4 Management includes all positions with direct reports and is not restricted by title.
49 Ferguson
ESG Report
We are
Ferguson
Our approach
to sustainability
Our commitment
to the environment
Building a
better world
Leading a
responsible business
Data and
frameworks
70 Agenda Item #9.2:

Table 1. Sustainability disclosure topics and accounting metrics Ferguson SASB Disclosure Matrix: Multiline and Specialty Retailers and Distributors Activity metric Category Unit of measure Code Data response or reference Energy management in retail and distribution
1) Total energy consumed
2) Percentage grid electricity
3) Percentage renewable
Quantitative Gigajoules (GJ),
Percentage (%)
CG-MR130a.1 1) Total energy consumed in FY 2023: 3,453,986 GJ 2) Percentage grid electricity: 24%
3) Percentage renewable: 0.16%
Ferguson is continuing our journey toward increasing our renewable energy procurement. In FY22 we purchased and installed our first rooftop solar array, a

1.1-megawatt system on top of our Perris, CA Distribution Center. In its first year of operation, the solar array offset 1,089 metrics tons of carbon dioxide – equivalent to removing roughly 242 passenger vehicles from the road per year*. Additionally, we purchased a solar array for our Phoenix, Arizona, Distribution Center, and are securing LEED Silver BD+C certification – further demonstrating our commitment to integrating sustainability considerations into new constructions. Our Virtual Power Purchase Agreement is expected to increase our percentage of renewable energy utilization beginning in FY2024.
* conversion from EPA Greenhouse Gas Equivalencies Calculator:
https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator Data security
Description of approach to
identifying and addressing
data security risks
Discussion
and analysis
n/a CG-MR230a.12023 ESG Report – Information and Cybersecurity, page 45. 50 Ferguson
ESG Report
We are
Ferguson
Our approach
to sustainability
Our commitment
to the environment
Building a
better world
Leading a
responsible business
Data and
frameworks
71 Agenda Item #9.2:

Table 1. Sustainability disclosure topics and accounting metrics (continued) Ferguson SASB Disclosure Matrix: Multiline and Specialty Retailers and Distributors (continued) 1 Management includes all positions with
direct reports and is not restricted by title.
2 Reporting a snapshot value from
July 31, 2023.
3 Race and ethnicity data reflects U.S.
workforce only. Minority data is selfreported by associates in accordance with SASB guidelines.

Activity metric Category Unit of measure Code Data response or reference Workforce diversity and inclusion
Percentage of gender
and racial/ethnic group
representation by 1)
management and 2) all
other associates
Quantitative Percentage (%) CG-MR330a.1 Management1
— Female: 23%, Male: 77%
All Other Associates2 — Female: 26%, Male: 74%
Management1
— Racial/Ethnic Minority3: 17%
All Other Associates2 — Racial/Ethnic Minority3
: 34%
Product sourcing, packaging and marketing
Revenue from products
third-party certified to
environmental and/or social
sustainability standards
Quantitative Reporting
currency
CG-MR410a.1 Nearly $3 billion in revenue is attributed to products with third party certified products, including Energy Star, WaterSense, Green Seal, ECOLOGO, EPA Design for the Environment and Forest Stewardship Council.

Discussion of process to
assess and manage risks
and/or hazards associated
with chemicals in products
Discussion
and analysis
n/a CG-MR410a.2 Products: Ferguson is committed to the safety of our vendors, associates, customers and our communities. In line with those values, we offer EPA Safer Choice products, Greenguard products and products that are Green Seal certified. Ferguson provides detailed information regarding the composition and safety of the products we sell, with product specifications available on our website, including component and certification data. We screen products at the point of sourcing and at various stages of the value chain to ensure that they meet state and federal requirements and assess any products that may have harmful impacts on human health or the environment. To ensure that our customers are informed on the products they purchase, Ferguson also provides Safety Data Sheets on all relevant products that we sell.
51 Ferguson
ESG Report
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Ferguson
Our approach
to sustainability
Our commitment
to the environment
Building a
better world
Leading a
responsible business
Data and
frameworks
72 Agenda Item #9.2:

Activity metric Category Unit of measure Code Data response or reference Product sourcing, packaging and marketing (continued)
Discussion of process to
assess and manage risks
and/or hazards associated
with chemicals in products
Discussion
and analysis
n/a CG-MR410a.2 Hazard Communication: The safe storage, handling and disposal of hazardous materials is inherent in our business and our Health & Safety group has a team dedicated to Hazardous Materials Management. For associates who are in roles that require chemical handling, storage or transport, Initial Hazardous Materials Training and annual refresher training is required and provided. For associates who may handle or manage hazardous wastes, specific training is required and provided. Ferguson has robust policies and procedures in place to ensure that these materials are safely stored and disposed of, and that associates know how to respond to the unlikely event of a spill. A Hazardous Materials and Environmental Compliance Steering Committee meets quarterly and includes cross-functional leaders throughout the business to communicate industry trends and educational opportunities for Ferguson associates.

Discussion of strategies to
reduce the environmental
impact of packaging
Discussion
and analysis
n/a CG-MR410a.3 Ferguson works to reduce the environmental impact of packaging, with a specific focus on right-sizing product packaging. Within our distribution network Packsize packaging machines allow us to print the actual dimensions of a package to ensure that parcels are shipped in an efficient way, minimizing waste and void fill, and reducing related carbon emissions from product shipment. Each of our distribution centers have had these machines installed, which has resulted in increased efficiency and savings.

Ferguson employs a dedicated Packaging Design Engineer to advance our sustainability efforts through a holistic approach to packaging. The role focuses on reducing cost, damage and material waste from the packaging of our brand products. We successfully made several changes this year, including redesigning some of our Own Brand toilet lid packs to fit more product in shipping containers – bringing efficiency gains and waste reduction. By changing the unit orientation from vertical to horizontal, we’ve increased the number of units per stack by 35 and have reduced material in the master carton by 0.04 square meters. Ferguson continues to work to identify opportunities to reduce our environmental impact by increasing the use of sustainable and recyclable packaging materials.

Table 1. Sustainability disclosure topics and accounting metrics (continued) Ferguson SASB Disclosure Matrix: Multiline and Specialty Retailers and Distributors (continued) 52 Ferguson
ESG Report
We are
Ferguson
Our approach
to sustainability
Our commitment
to the environment
Building a
better world
Leading a
responsible business
Data and
frameworks
73 Agenda Item #9.2:

Activity metric Category Unit of measure Code Data response or reference Product sourcing, packaging and marketing (continued)
Number of
1) retail locations and
2) distribution centers
Quantitative Number CG-MR000 A 1) 1,762 branch locations 2) 14 DCs
Total area of
1) retail space and
2) distribution centers
Quantitative Number CG-MR000 B 1) 4,500,000 m2
2) 784,000 m2
Table 2. Activity metrics
Ferguson SASB Disclosure Matrix: Multiline and Specialty Retailers and Distributors (continued) 53 Ferguson
ESG Report
We are
Ferguson
Our approach
to sustainability
Our commitment
to the environment
Building a
better world
Leading a
responsible business
Data and
frameworks
74 Agenda Item #9.2:

TCFD
Disclosure
Introduction 55
About this report 55
Governance 55
Strategy 56
Risk management 59
Metrics and targets 60
UK Listing Rule Disclosure –
Board Diversity Statement 61
Cautionary note on forward-looking statements 62
54 Ferguson
ESG Report
We are
Ferguson
Our approach
to sustainability
Our commitment
to the environment
Building a
better world
Leading a
responsible business
Data and
frameworks
75 Agenda Item #9.2:

Task Force on Climate-Related Financial Disclosures Report Governance
a) Describe the board’s oversight of climate-related
risks and opportunities.

Ferguson’s Board of Directors (Board) has a vested
interest in improving Ferguson’s environmental, social, and governance (ESG) performance. The Board and its
committees have structured their annual program to
receive updates on sustainability progress from our Vice President of ESG, with ESG on scheduled Nominations
& Governance Committee agendas.1
Topics such as
reviewing project implementation and performance,
progress against targets, and opportunities to integrate sustainability measures into capital expenditures are
discussed at scheduled Nominations & Governance
Committee meetings.1
Our corporate governance
documents, including Committee charters, can be found
on the Corporate Governance page of the Investor
tab of our website at corporate.ferguson.com under
Governance Documents.

The Nominations & Governance Committee is
responsible for providing oversight of our ESG disclosure framework, which includes climate-related issues and
relevant public disclosures, including our ESG Report.1 Our CEO holds ultimate responsibility with respect to
performance on climate-related issues. Our CFO is
actively engaged in assessing risk related to climate
change and alongside the management team’s
Finance Committee, approves all capital expenditures
above a pre-approved financial threshold.1
ESG is
incorporated into the company’s annual strategic
planning process, which is overseen by the Senior
Vice President of Strategic Development.1
b) Describe management’s role in assessing and
managing climate-related risks and opportunities.

Our ESG department is a part of the Finance
organization, ultimately reporting to the Chief
Financial Officer. Our Vice President of ESG is
responsible for the day-to-day management of our
ESG priorities and reports directly to the Head of
Investor Relations and Communications. The VP of
ESG and the ESG team monitor climate-related issues
and work to ensure integration into our business
strategy and operations.1
In addition to the VP of
ESG, the ESG team is comprised of a Director of
Social Impact, a Senior Manager of Environmental
Sustainability, an ESG Data Analyst and a Social
Impact Specialist.

Ferguson also has a two-person Environmental
Product Strategy team that coordinates on
sustainable product innovation, including
development and expansion of low-emission
goods and services with our supplier partners.

The Environmental Product Strategy team
positions our sales force to assist our customers in
achieving their sustainability goals, which ultimately
aims to help the company seize climate-related
business opportunities.

Ferguson plc (NYSE: FERG; LSE: FERG) is a
leading value-added distributor in North America
providing expertise, solutions and products from
infrastructure, plumbing and appliances to HVAC,
fire, fabrication and more. We exist to make our
customers’ complex projects simple, successful and
sustainable. Ferguson is headquartered in the U.K.,
with its operations and associates solely focused
on North America and managed from Newport
News, Virginia. For more information, please visit
corporate.ferguson.com or follow us on LinkedIn
https://www.linkedin.com/company/fergusonenterprises.

About this report
This report provides decision-useful, climate-related
information across the four thematic areas of the
Task Force on Climate-Related Financial Disclosures
(TCFD): Governance, Strategy, Risk Management,
and Metrics and Targets. The information detailed
in this report is a result of a cross-functional body of work and illustrates the integration of climate-related risks and opportunities into our business strategy
and operations. The process to date has prioritized
promoting organizational awareness around relevant
climate-related risks and opportunities. As we
advance on our sustainability journey, we expect to
continue to evolve our ESG reporting.

Environmental, Social &
Governance Steering Committee
The VP of ESG chairs the Environmental, Social &
Governance Steering Committee (the “ESG Steering
Committee”), a cross-functional committee that
includes leaders responsible for the ESG Framework
and ESG subject matter experts (SMEs) from across
the business. The purpose of the ESG Steering
Committee is to assist the Executive Committee in
overseeing the company’s ESG-related key risks and
opportunities, including climate-related risks and
opportunities, that may have a significant impact
on the company and its ability to sustain trust with
associates, customers, suppliers, and the investment
community.1
It also supports Ferguson’s on-going
commitments to ESG and guides the evolution of the
company’s ESG Framework and priorities.

Environmental Leadership Council (ELC)
The ELC comprises a cross-functional group,
including Ferguson Ventures, and our marketing,
communications and ESG teams, along with leaders
across our customer groups, who possess decades
of combined experience driving sustainable solutions
across the company and the marketplace. This group
brings broad and deep industry knowledge and an
incredible level of passion that will further drive our strategy. The ELC influences the direction of our
Environmental Product Strategy and investment
approach, while providing direct access to customer
insights and market trends.1
1 We received Independent Limited Assurance on select assertions and claims made within this TCFD Disclosure. For more information, please see the “External Assurance Statement” which details the scope, activities, and conclusions of this engagement. This document is available on the Ferguson website, www.corporate.ferguson.com. 55 Ferguson
ESG Report
We are
Ferguson
Our approach
to sustainability
Our commitment
to the environment
Building a
better world
Leading a
responsible business
Data and
frameworks
76 Agenda Item #9.2:

TCFD Risk Ferguson Risk Impact Current and Future Mitigation Strategies Time Horizon Transition Risk: Policy and Legal
Increased pricing
of GHG emissions
The implementation
of a carbon tax in
countries in which
Ferguson operates.

While there is currently no carbon pricing system in the U.S. that impacts Ferguson, there have been discussions at the state level. A carbon tax may negatively impact
Ferguson’s operational expenses, product costs, and
service costs.

In FY2022 Ferguson purchased and installed an on-site 1.1-megawatt solar array at its Perris, California Distribution Center and invested in a solar array for the Phoenix, Arizona Distribution Center, which is expected to be online in FY2024.1 These emissions reduction efforts will help to reduce the volume of emissions which are taxed.

In addition, Ferguson has a Scope 1 and Scope 2 (location-based) emission intensity reduction goal. Efforts towards this goal including building efficiency updates, building electrification, fleet rightsizing, and fleet electrification will also help to reduce the volume of emissions which are taxed.

Medium
(5-10 years)
Physical: Acute
Increased severity
of extreme
weather events
Increased frequency
and severity of floods,
wind storms, cyclones,
wildfires, storm surges,
hail, drought, etc.
impact operations
through damages to
facilities and inventory.

The frequency and severity of extreme weather events
has increased considerably in recent years. This trend
is expected to continue to worsen in the future as
the climate continues to warm and could have a
significant impact on a multitude of factors impacting
Ferguson’s business.

Ferguson’s Corporate Security and Business Continuity Department has plans covering localized disasters causing short-term business disruptions (i.e., natural weather events), nationwide disruptions, and singular incidents which have potential to adversely impact Ferguson’s reputation.1 These plans help Ferguson determine how to react when an event occurs.

Widespread interruptions to Ferguson’s operations are naturally hedged against through the company’s widespread operational footprint and digital tools.

Short
(0-5 years)
Physical: Chronic
Rising mean
temperatures
Rising mean
temperatures
significantly
impact energy
usage in Ferguson
managed buildings.

Even under a low emissions scenario, heat thresholds
relevant to health are projected to be exceeded more
frequently at high global warming levels. This could have multiple implications for Ferguson including increased
energy demand for facility cooling and updating facilities to provide better working conditions for associates.

Additionally, during extreme heat events the electricity grid can also be overwhelmed, potentially leading to
grid brownouts and blackouts, which could result in
significant disruptions to Ferguson’s operations.

Ferguson has developed a consistent framework to support sustainable design, construction, and operations in support of the company’s goals.1 These sustainable design standards are applicable to new Market Distribution Centers and medium-scale “business as usual” locations which are typically between 50,000 and 150,000 square feet and include a large portion of warehouse space and with a smaller office space.1 Some also include a retail counter.

The standards are aligned with the LEED and Fitwel programs which promote healthy, resilient, and efficient green buildings.1 Long
(10+ years)
Task Force on Climate-Related Financial Disclosures Report (continued) Strategy
Disclose the actual and potential impacts of climaterelated risks and opportunities on the organization’s businesses, strategy, and financial planning where
such information is material.
a) Describe the climate-related risks and
opportunities the organization has identified over
the short, medium, and long term.

Through a cross-functional climate-related risk and
opportunity assessment conducted in FY2023 which
included both internal and external subject matter
expertise, we identified climate-related physical and
transition risks and opportunities posed to the company.

Climate-related risks and opportunities were
qualitatively prioritized based on their identified
time horizon, probability rating, impact rating,
and mitigation status.
• Short-term: 0-5 years
• Medium-term: 6-10 years
• Long-term: 10+ years
The most relevant climate-related risks and opportunities that were identified and further evaluated through
scenario analysis are set out in the tables on pages
56 and 57.1
While the climate-related risks we
identified are not material when applying the same
threshold as to our other enterprise risks, we continue to monitor these risks closely. 1
1 We received Independent Limited Assurance on select assertions and claims made within this TCFD Disclosure. For more information, please see the “External Assurance Statement” which details the scope, activities, and conclusions of this engagement. This document is available on the Ferguson website, www.corporate.ferguson.com. 56 Ferguson
ESG Report
We are
Ferguson
Our approach
to sustainability
Our commitment
to the environment
Building a
better world
Leading a
responsible business
Data and
frameworks
77 Agenda Item #9.2:

TCFD Opportunity Ferguson Opportunity Current and Future Mitigation Strategies Time Horizon Products & Services
Development/
expansion of low
emission goods and
services
Ferguson expands its
low emissions goods and
services offerings.

Ferguson’s Environmental Product Strategy team aims to expand Ferguson’s offering of sustainable products by training our associates, educating the customer, and leading the industry.1
Through Ferguson’s large network of suppliers, the company can expand across multiple products including heat pumps to electrify heating, tankless water heaters to reduce energy usage, leak detection technology to reduce water waste, and Wi-Fi monitoring to ensure appliances are turned off when not in use. Expanding Ferguson’s inventory to include these types of products will help Ferguson maintain its competitive edge in the market.

Medium
(5-10 years)
Energy Source
Use of lower
emission
energy sources
Ferguson combines
on-site renewables and
other energy strategies
to drive the use of lower
emission energy sources
across the business.

In FY2022 Ferguson purchased and installed an on-site 1.1-megawatt solar array at its Perris, California Distribution Center and invested in a solar array for the Phoenix, Arizona, Distribution Center, which is expected to be online in FY2024.1
Energy produced by these new solar panels,
combined with a Virtual Power Purchase Agreement, will help Ferguson increase its consumption of low emission energy sources.

Ferguson has also engaged a third-party consultant to evaluate efficiency improvements in current facilities and future new builds.1
Short
(0-5 years)
Markets
Use of public sector
incentives
Ferguson leverages
green policy incentives.

Local and national incentives such as the Inflation Reduction Act and the Infrastructure Investment and Jobs Act offer tax benefits to Ferguson’s customers for home energy efficiency upgrades.1
As a result, Ferguson is likely to see an increased demand for some of its products.

Ferguson can take advantage of this by educating its customers on the various products which qualify for these benefits and how they can be installed in a customer’s home or business.

Ferguson can also take advantage of tax incentives that would reduce the financial burden of transitioning our operations towards more sustainable solutions.

Short
(0-5 years)
b) Describe the impact of climate-related risks
and opportunities on the organization’s businesses,
strategy, and financial planning.

The process to date has prioritized promoting
organizational awareness around relevant climaterelated risks and opportunities. Our approach is still developing, and further management actions
may follow as potential impacts are investigated
and integrated.

Ferguson’s purpose is to provide innovative products
and solutions to help make our customers’ complex
projects simple, successful, and sustainable.

The climate-related risks identified in the table above, while not assessed as material when applying the
same threshold as our other enterprise risks, have
the potential to impact our business in several ways,
including increasing operational expenses, increasing
the cost of the products we sell and disrupting our
supply chain.1
Several business opportunities were also reviewed,
including the transition of the residential sector to
a low-carbon future and the reduction of operating
expenses through investments in energy efficiency
and renewable energy. Both the climate-related risks
and opportunities identified in this report are taken
into consideration during the organization’s strategic
and financial planning processes.1
Task Force on Climate-Related Financial Disclosures Report (continued) 1 We received Independent Limited Assurance on select assertions and claims made within this TCFD Disclosure. For more information, please see the “External Assurance Statement” which details the scope, activities, and conclusions of this engagement. This document is available on the Ferguson website, www.corporate.ferguson.com. 57 Ferguson
ESG Report
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Ferguson
Our approach
to sustainability
Our commitment
to the environment
Building a
better world
Leading a
responsible business
Data and
frameworks
78 Agenda Item #9.2:

Physical Risk, Chronic – Rising mean temperatures
• Modeled the projected change in the company’s
energy consumption as a result of rising
temperatures and the company’s electric transition.

This model’s low emission scenario uses SSP 1-2.6
for physical risks and IEA’s Announced Pledges
Scenario for transition risks, and the high emission
scenario uses SSP 5-8.5 for physical risks and IEA’s
Stated Policies scenario for transition risks.

Opportunity: Products & Services – Development/
expansion of low emission products and solutions
• Evaluated the projected financial impact to
Ferguson of society’s transition to low emission
products and solutions, specifically heat pump
space heaters and heat pump water heaters.

This model utilizes projections from Rewiring
America’s June 2023 Pace of Progress Report
as well as SSP1-2.6 and SSP5-8.5 scenarios.

Opportunity: Energy Source –
Use of lower emission energy sources
• Performed an assessment of current and possible
future facilities to determine each location’s potential for renewable energy generation and exposure to
climate perils utilizing low emission scenario SSP
1-2.6 and high emission scenario SSP 5-8.5.

IPCC SSP 5-8.5
• Estimated warming of 1.9 – 3.0°C by 2060
• Pathway narrative: Fossil-fueled Development –
Taking the Highway (High challenges to mitigation,
low challenges to adaptation)
Transition Risk, Policy – Increased pricing of GHG
emissions
• Projected cost of a carbon tax on Ferguson’s
operations under Net Zero Emissions by 2050
scenario and Announced Pledges Scenario through
2030, 2040, and 2050.
• Projected Ferguson Scope 1 emissions trajectory
across both high and moderate emissions
reduction scenarios.

Physical Risk, Acute – Increased severity
of extreme weather events
• Leveraged financial impacts from historical extreme
weather events that rose to the level of insurance
claim to project potential additional impact in the
future by peril, geographic region, or asset types
utilizing low emission scenario SSP 1-2.6 and high
emission scenario SSP 5-8.5.

Ferguson also evaluated the impact of key climaterelated risks and opportunities using the below scenarios across a range of company-specific inputs
to build resiliency into our strategy across a variety
of internal scenarios. The scenarios were chosen to
represent a broad spectrum of outcomes. See details
below about how scenarios were used in our analysis
across a variety of time horizons.

IEA Announced Pledges Scenario
• Assumes all climate commitments made by
governments around the world, including Nationally
Determined Contributions and longer-term net zero
targets, as well as targets for access to electricity
and clean cooking, will be met in full and on time.

IEA Net Zero Emissions by 2050
• Emissions trajectory consistent with keeping the
temperature rise in 2100 below 1.5°C (with a
50% probability)
IPCC SSP1-2.6
• Estimated warming of 1.3 – 2.2°C by 2060
• Pathway narrative: Sustainability – Taking the
Green Road (Low challenges to mitigation
and adaptation)
Environmental considerations are an element of
the company’s annual strategic planning process.

Strategies to address climate-related risks and realize opportunities are presented by individual functional
and customer groups.1
The company is working
to expand knowledge of and responsibility for
encouraging the adoption of sustainable and energyefficient products and solutions across the entire sales force. The Environmental Leadership Council
(ELC) will influence the direction of Ferguson’s
Environmental Product Strategy and investment
approach by helping to spur innovation within our
supplier base and encouraging our manufacturers
to create more sustainable products and solutions.
c) Describe the resilience of the organization’s
strategy, taking into consideration different climaterelated scenarios, including a 2°C or lower scenario.

Ferguson has assessed climate-related risks and
opportunities using scenario analysis, which has
enhanced our strategic conversations about the
future by considering, in a more structured manner,
what may unfold that is different from business-asusual. Our strategy for managing these risks and realizing the opportunities is consistent across the
range of evaluated scenarios. Our initial focus is
on identifying the most relevant climate-related
risks and opportunities for the business, and we
intend to continue to evaluate our strategies as our
organizational approach matures.

Task Force on Climate-Related Financial Disclosures Report (continued) 1 We received Independent Limited Assurance on select assertions and claims made within this TCFD Disclosure. For more information, please see the “External Assurance Statement” which details the scope, activities, and conclusions of this engagement. This document is available on the Ferguson website, www.corporate.ferguson.com. 58 Ferguson
ESG Report
We are
Ferguson
Our approach
to sustainability
Our commitment
to the environment
Building a
better world
Leading a
responsible business
Data and
frameworks
79 Agenda Item #9.2:

The Board oversees the ERM Program and
receives periodic reports from:
• the Audit Committee on the guidelines and policies
that govern the process by which risk assessment
and management is undertaken by the Executive
Committee, including review of the company’s risk
appetite and criteria;1
• the Executive Committee (or designees) on existing
and emerging enterprise risks, including review of
the effectiveness of the mitigation and controls; and1
• the Chief Legal Officer (or designee) on the
ERM Program, including Operational Assurance
Statement (OAS) process results.1
In addition, as noted above, the Nominations &
Governance Committee is responsible for providing
oversight of our ESG disclosure framework and
related public disclosures, including our ESG Report.1
a) Describe the organization’s processes for
identifying and assessing climate-related risks.
• Climate-related risks and opportunities, including
existing and emerging regulatory requirements,
were initially identified by the ESG team based
on industry research, advancements in technology,
and other sustainability trends.1
• Impacts are explored further through interviews and
document review with subject matter experts within
the company including Fleet, Facilities, Investor
Relations, Legal, Business Continuity and Finance.1
• Climate-related risks and opportunities are
categorized using Tables A1.1 and A1.2 in the
Appendix to TCFD 2021 guidance.1
• Each identified climate-related risk is mapped
to a Ferguson risk area based on impact to:
income before tax, market cap, reputation,
dividend payment, strategy and operations.1
• The climate-related risks and opportunities were
qualitatively prioritized based on their identified
time horizon, probability rating, impact rating
and mitigation status.1
• Impacts of the most relevant climate risks and
opportunities are further analyzed and quantified
through scenario analysis.1
• Climate-related risks are not assessed as material
when applying the same threshold as our other
enterprise risks.1
Risk management
Disclose how the organization identifies,
assesses, and manages climate-related risks.

Task Force on Climate-Related Financial Disclosures Report (continued) b) Describe the organization’s processes
for managing climate-related risks.

The primary responsibility for identifying,
assessing, and managing risks belongs with
company management. In addition to the information
described on page 55 Governance b) and Risk
management c) below, the Vice President of
ESG is responsible for daily climate-related issue
management, monitoring, and integration into
business strategy and operations.
c) Describe how processes for identifying, assessing,
and managing climate-related risks are integrated
into the organization’s overall risk management.

Ferguson is committed to maintaining an Enterprise
Risk Management (ERM) Program that considers
and manages opportunities, risks and uncertainties
that may impact achievement of Ferguson’s
strategic objectives.1
The ERM Program establishes
collaborative risk management processes that are
designed to proactively identify, assess, mitigate
and monitor business risks and that facilitate the
associated reporting about such risks to both internal
and external stakeholders. Our Vice President
& Deputy General Counsel provides centralized
oversight of the ERM program and works with key
risk owners across the company.1
1 We received Independent Limited Assurance on select assertions and claims made within this TCFD Disclosure. For more information, please see the “External Assurance Statement” which details the scope, activities, and conclusions of this engagement. This document is available on the Ferguson website, www.corporate.ferguson.com. 59 Ferguson
ESG Report
We are
Ferguson
Our approach
to sustainability
Our commitment
to the environment
Building a
better world
Leading a
responsible business
Data and
frameworks
80 Agenda Item #9.2:

Metrics and targets
Disclose the metrics and targets used to assess
and manage relevant climate-related risks and
opportunities where such information is material.
a) Disclose the metrics used by the organization to
assess climate-related risks and opportunities in line
with its strategy and risk management process
Our assessment of climate-related risks and
opportunities uses the metrics below and adopts the
same threshold as our other enterprise risks.

Energy Use1
• Energy consumption within
the organization (GJ)
• Percentage grid electricity (%)
• Percentage renewable (%)
• Natural gas consumption
within the organization (GJ)
• Diesel consumption within
the organization (GJ)
• Gasoline consumption within
the organization (GJ)
Revenue from products third-party certified
to environmental and/or social sustainability
standards (USD)
Number of retail locations and distribution centers
Total area of retail space and distribution centers (m2) Please refer to our ESG Report for the following:
(p. 16) for more details on our Scope 3 reporting;
(p. 42) for Executive compensation; and (p. 49-53)
for emissions figures and further details.
b) Disclose Scope 1, Scope 2, and, if appropriate,
Scope 3 greenhouse gas (GHG) emissions, and
the related risks.

We have identified the following risks associated
with greenhouse gas emissions which relate to our
earlier identified climate-related risks:

Scope 1 risks – Carbon tax and efficiency standards
could result in increased operational costs1
Scope 2 risks – Rising mean temperatures could
create more demand for electricity use for comfort
cooling and result in increased electricity costs1
Scope 3 risks – Carbon tax could result in increased
product costs1
Please refer to our ESG Report (p. 49-53) and the
Basis of Reporting (p. 1-4) for emissions figures and
further details.

Task Force on Climate-Related Financial Disclosures Report (continued) c) Describe the targets used by the organization
to manage climate-related risks and opportunities
and performance against targets.

To reduce our Scope 1 and 2 emissions by
35% per million USD of revenue by 2026
(against a 2019/2020 baseline).1
Data is collected and managed on an ongoing basis.

We evaluate progress towards this target two times
a year. We pursue Independent Limited Assurance
on specific ESG indicators in our ESG Report as
described in the Assurance Statement available on
the ESG tab of our corporate website at corporate.
ferguson.com. Please refer to our ESG Report
(p. 17-18) for details on our approach to
achieve targets.

Carbon
emissions
Baseline
2019/2020 2020/2021 2021/2022 2022/2023
Increase/
reduction
from 2021/2022
Total emissions
reduction since
2019/2020
Scope 1 and 2
emissions
intensity 12.7 10.6 8.9 8.5 (4.5%) (33.1%)
Note: Our ESG Report, Basis of Reporting
and Assurance Statement can be found on the
ESG tab of our website at corporate.ferguson.com.
1 We received Independent Limited Assurance on select assertions and claims made within this TCFD Disclosure. For more information, please see the “External Assurance Statement” which details the scope, activities, and conclusions of this engagement. This document is available on the Ferguson website, www.corporate.ferguson.com. 60 Ferguson
ESG Report
We are
Ferguson
Our approach
to sustainability
Our commitment
to the environment
Building a
better world
Leading a
responsible business
Data and
frameworks
81 Agenda Item #9.2:

UK Listing Rule Disclosure – Board Diversity Statement
Number
of Board
members
Percentage
of the
Board
Number of
senior positions
on the Board
(CEO, CFO,
SID and Chair)1
Number in
executive
management2
Percentage
of executive
management
Men 7 64% 3 8 73%
Women 4 36% 0 3 27%
Not specified/prefer not to say 0 0 0 0 0
Number
of Board
members
Percentage
of the
Board
Number of
senior positions
on the Board
(CEO, CFO,
SID and Chair)1
Number in
executive
management2
Percentage
of executive
management
White British or Other White
(including minority white groups)
10 91% 3 11 100%
Mixed multiple ethnic groups 0 0% 0 0 0%
Asian/Asian British 0 0% 0 0 0%
Black /African Caribbean/Black British 1 9% 0 0 0%
Other ethnic group including Arab 0 0% 0 0 0%
Not specified/prefer not to say 0 0% 0 0 0%
1 The Company is only reporting against the CEO, CFO and Chair positions as there is no longer a Senior Independent Director role.

The functions and responsibilities of that role have been taken on by the Chairperson of the Nominations & Governance Committee. 2 Executive management defined, in accordance with the Listing Rules, as the Executive Committee, including the Company Secretary.

In accordance with Listing Rule 14.3.3R(1), Ferguson plc is required to include a Board Diversity Statement in relation to FY2023 setting out whether it has met certain targets on board diversity. The required disclosure is set out as at July 31, 2023 and there have been no changes between this reference date and the date of approval of this document.

Data in relation to the Board has been collected through the annual Directors and Officers questionnaire in which a question asked Directors to provide self-identified specific diversity, skills and experience; and data in relation to executive management has been collected through details held on the Company’s human resource management software.

As of July 31, 2023, Ferguson plc can confirm as follows in relation to each target.

Target Result Progress
At least 40% of the Board
should be female
Not Met 36% of the Board are female as at July 31, 2023.

While the target was met (45%) at the beginning of
the fiscal year, due to Board composition changes that
occurred during the year, the target was no longer met
by the end of the reporting period.

At least one member of the Board
should be from a minority ethnic
background;
Met There is one ethnic minority female Non-Employee
Director on the Board.

At least one of the senior Board
positions (Chairman, Chief Executive
Officer (“CEO”), Senior Independent
Director (“SID”) or Chief Financial
Officer (“CFO”)) should be a woman.

Not Met The senior Board positions of Chairman, CEO and CFO are currently held by men. Until the individuals in those positions retire or otherwise leave, the Company
will not meet the target.

Due to the Company’s move towards U.S. governance,
the SID role has been retired. While the Chairman,
CEO and CFO are all men, the Chairperson of
two of the Committees of the Board (Audit and
Compensation) are women.
61 Ferguson
ESG Report
We are
Ferguson
Our approach
to sustainability
Our commitment
to the environment
Building a
better world
Leading a
responsible business
Data and
frameworks
82 Agenda Item #9.2:

Cautionary note on forward-looking statements
Disclaimer
Certain information included in this report is forward-looking, including within the meaning of the Private Securities Litigation Reform Act of 1995, and involves risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed or implied by forwardlooking statements. Forward-looking statements cover all matters which are not historical facts and include, without limitation, objectives and projections with respect to the company’s ESG program and related sustainability-centric plans and efforts, statements or guidance regarding or relating to our future financial position, results of operations and growth, projected interest in and ownership of our ordinary shares by investors including as a result of inclusion in North American market indices, plans and objectives for the future including our capabilities and priorities, risks associated with changes in global and regional economic, market and political conditions, ability to manage supply chain challenges, ability to manage the impact of product price fluctuations, our financial condition and liquidity, legal or regulatory changes, statements regarding our expectations for U.S. residential and non-residential growth drivers and other statements concerning the success of our business and strategies. Forward-looking statements can be identified by the use of forward-looking terminology, including terms such as “believes,” “estimates,” “anticipates,” “expects,” “forecasts,” “intends,” “continues,” “plans,” “projects,” “goal,” “target,” “aim,” “may,” “will,” “would,” “could” or “should” or, in each case, their negative or other variations or comparable terminology and other similar references to future periods.

Forward-looking statements speak only as of the date on which they are made. They are not assurances of future performance and are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections (including the projected ESG initiatives, results and performance, including whether the company will be able to achieve its emissions reduction goals in the anticipated timeframe or at all), anticipated events and trends, the economy and other future conditions. Therefore, you should not place undue reliance on any of these forward-looking statements. Although we believe that the forward-looking statements contained in this report are based on reasonable assumptions, you should be aware that many factors could cause actual results to differ materially from those in such forward-looking statements, including but not limited to: weakness in the economy, market trends, uncertainty and other conditions in the markets in which we operate, and other factors beyond our control, including disruption in the financial markets and any macroeconomic or other consequences of the current conflict in Ukraine or potential conflict between China and Taiwan; failure to rapidly identify or effectively respond to direct and/or end customers’ wants, expectations or trends, including costs and potential problems associated with new or upgraded information technology systems or our ability to timely deploy new omni-channel capabilities; decreased demand for our products as a result of operating in highly competitive industries and the impact of declines in the residential and non-residential markets as well as the repair, maintenance and improvement (“RMI”) and new construction markets; changes in competition, including as a result of market consolidation or competitors responding more quickly to emerging technologies (such as generative artificial intelligence (“AI”)); failure of a key information technology system or process as well as exposure to fraud or theft resulting from payment-related risks; privacy and protection of sensitive data failures, including failures due to data corruption, cybersecurity incidents or network security breaches; ineffectiveness of or disruption in our domestic or international supply chain or our fulfillment network, including delays in inventory, availability at our distribution facilities and branches, increased delivery costs or lack of availability; failure to effectively manage and protect our facilities and inventory or to prevent personal injury to customers, suppliers or associates, including as a result of workplace violence; unsuccessful execution of our operational strategies; failure to attract, retain and motivate key associates; exposure of associates, contractors, customers, suppliers and other individuals to health and safety risks; inherent risks associated with acquisitions, partnerships, joint ventures and other business combinations, dispositions or strategic transactions; regulatory, product liability and reputational risks and the failure to achieve and maintain a high level of product and service quality; inability to renew leases on favorable terms or at all as well as any remaining obligations under a lease when we close a facility; changes in, interpretations of, or compliance with tax laws in the United States, the United Kingdom, Switzerland or Canada; our indebtedness and changes in our credit ratings and outlook; fluctuations in product prices (e.g., commodity-priced materials, inflation/deflation) and foreign currency; funding risks related to our defined benefit pension plans; legal proceedings as well as failure to comply with domestic and foreign laws, regulations and standards, as those laws, regulations and standards or interpretations and enforcement thereof may change, or the occurrence of unforeseen developments such as litigation; our failure to comply with the obligations associated with being a U.S. domestic issuer and the costs associated therewith; the costs and risk exposure relating to environmental, social and governance (“ESG”) matters, including sustainability issues, regulatory or legal requirements, and disparate stakeholder expectations; adverse impacts caused by a public health crisis; and other risks and uncertainties set forth under the heading “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended July 31, 2023 as filed with the Securities and Exchange Commission (the “SEC”) on September 26, 2023, and in other filings we make with the SEC in the future.

Additionally, forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Other than in accordance with our legal or regulatory obligations, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

The United Nations Sustainable Development Goals (UNSDGs) are aspirational in nature.

The analysis involved in determining whether and how certain initiatives align with the UNSDGs is inherently subjective and dependent on a number of factors. There can be no assurance that reasonable parties will agree on a decision as to whether certain projects or investments align with a particular SDG. Further, statistics and metrics relating to ESG matters are estimates and may be based on assumptions or developing standards (including Ferguson’s internal standards and policies).

Further, there can be no assurance that the Company’s policies, procedures, and positions relating to ESG, including climate change, will continue; such policies, procedures and positions, including initiatives, goals and targets, could change, even materially.

The Company is permitted to determine in its discretion that it is not feasible or practical to implement or complete certain of its policies, procedures, positions, goals or targets relating to ESG issues based on cost, timing, or other considerations. No assurance can be given that the Company will remain a signatory, supporter, or member of any ESG-related initiative or other similar industry frameworks. Except where indicated, this document and the data contained herein has not been verified or otherwise assured by an independent third party.

Additionally, terms such as “ESG,” “impact” and “sustainability” can be subjective in nature, and there is no representation or guarantee that these terms, as used in the report, will reflect the beliefs or values, policies, principles, frameworks or preferred practices of any particular investor or other third party or reflect market trends. The ESG, climate or impact goals, commitments, incentives and initiatives outlined in this report are purely voluntary, are not binding on the Company’s business or investment decisions and/or management and do not constitute a guarantee, promise or commitment regarding actual or potential positive impacts or outcomes. The Company has established, and may in the future establish, certain ESG, climate or impact goals, commitments, incentives and initiatives, including but not limited to those relating to greenhouse gas emissions reductions.

Statistics and metrics relating to ESG matters are estimates and may be based on assumptions or estimates (which may prove to be inaccurate) or developing standards (including the Company’s internal standards and policies).

Certain information contained herein has been obtained from third parties, and in certain cases have not been updated through the date hereof. While these third-party sources are believed to be reliable, the Company makes no representation or warranty, express or implied, with respect to the accuracy, fairness, reasonableness or completeness of any of the information contained herein, and expressly disclaims any responsibility or liability therefor. The inclusion of information in this report should not be construed as a characterization regarding the materiality or financial impact of that information. Further, in this report, we are not using terms such as “material” or “materiality” as they are used under the securities or other laws of the United States or any other jurisdiction, or as they are used in the context of financial statements and financial reporting. Materiality, for the purposes of this document should not, therefore, be read as equating to any use of the word in other reporting by the Company.

External assurance
Ferguson engaged ERM Certification and Verification Services Inc. (ERM CVS) to conduct third-party limited assurance of specific metrics for the period August 1, 2022 – July 31, 2023 which are presented in the FY2022/2023 ESG Report.

ERM CVS assessed whether these metrics are fairly presented in accordance with the reporting criteria. For more information, please see the “External Assurance Report” which details the scope, activities and conclusions of their engagement. Both of these documents are available on the Ferguson website, www.corporate.ferguson.com.
62 Ferguson
ESG Report
We are
Ferguson
Our approach
to sustainability
Our commitment
to the environment
Building a
better world
Leading a
responsible business
Data and
frameworks
83 Agenda Item #9.2:

84 Agenda Item #9.2:

UPDATED COST PROPOSAL

APPENDIX C
6 8525
Agenda Item #9.2:

Advanced Meter Infrastructure, City Project W-10
Ferguson Cost Proposal
Meters
Part Number Description Quantity Unit Price w/ Tax Total Price NEU1D1G1SG106 3/4 SL ULTRASONIC STANDALONE GAL 2960 $ 181.45 $537,092.00 NEU1F1G1SG106 1 ULTRASONIC STANDALONE GAL 1281 $ 232.75 $298,152.75 NEU2A1G1SG106 11/2 X 13 ULTRASONIC STANDALONE FLG GAL 136 $ 551.41 $74,991.76 NEU2E1G1SG106 2 X 17 ULTRASONIC STANDALONE FLG GAL 99 $ 641.18 $63,476.82 NEU3B1G1SG108 3 FLG 17 LEN ULTRA/MACH STANDALONE GAL 9 $ 2,244.11 $20,196.99 NEU3D1G1SG108 4 FLG 20 LEN ULTRA/MACH STANDALONE GAL 14 $ 2,885.30 $40,394.20 NEU3F1G1SG108 6 FLG 24 LEN ULTRA/MACH STANDALONE GAL 0 $ 4,744.70 $0.00 NEU4A1G1SG108 8 FLG 20 LEN ULTRA/MACH STANDALONE GAL 0 $ 6,668.24 $0.00 NEU4B1G1SG108 10 FLG 26 LEN ULTRA/MACH STANDALONE GAL 0 $ 9,617.65 $0.00 N13966330 R900 CELL EP PIT 3FT QL FNET ASY COMP INT ANT 4499 $ 128.24 $576,951.76 Meters Total $1,611,256.28
Difference
Software
Part Number Description Quantity Unit Price Total Price Cell Software and Data Fees
N13099304 NEPTUNE 360 FNET CELL SaaS PF TR 4 2501- 5000 4499 $ 9.96 $ 44,810.04 N14099304 MY360 SUBSCRIPTION TIER 4, 2501- 5000 1 $ 5,333.33 $ 5,333.33 Recurring Fees Total $ 50,143.37
My360 Setup Fees
N14099203 MY360 SET-UP FEE 1 $ 1,675.00 $ 1,675.00
N14099201 My360 Training 1 $ 1,675.00 $ 1,675.00
One Time Fees $ 3,350.00
Year 1 Software Total $ 53,493.37
Lids and Boxes
Part Number Description Quantity Unit Price w/ Tax Total Price DFWB9C-4T DEEP NHK-LID DFW B9 Lid $ 33.88 $0.00
DFWB16C-4T DEEP NHK-LID DFW B16 Lid 4241 $ 51.86 $219,938.26 DFW1730C-4T DEEP NHK-LID DFW B30 Lid 235 $ 102.12 $23,998.20 1000025 Christy B9 Box $ 36.88 $0.00
1000075 Christy B16 Box 200 $ 46.39 $9,278.00
1000115 Christy B30 Box $ 53.00 $0.00
Lids and Boxes Total $253,214.46
Installation
Description Quantity Unit Price w/ Tax Total Price
5/8" Meter Replacement 0 $147.70 $0.00
Agenda Item #9.2:

3/4" Meter Replacement 2960 $147.70 $437,192.00
1" Meter Replacement 1281 $147.70 $189,203.70

1.5" Meter Replacement 136 $382.40 $52,006.40
2" Meter Replacement 99 $382.40 $37,857.60
3" Meter Replacement 9 $1,288.30 $11,594.70
4" Meter Replacement 14 $2,294.20 $32,118.80
6" Meter Replacement 0 $4,411.80 $0.00
8" Meter Replacement 0 $5,294.20 $0.00
10" Meter Replacement 0 $5,882.40 $0.00
Sub-Foot GPS Accuracy 4499 $3.60 $16,196.40
Meter Installation Total $776,169.60
Professional Services 6 $17,647.10 $105,882.60
Mobilization 1 $100,353.00 $100,353.00
WOMS Programming and setup 1 $ 8,823.60 $ 8,823.60
WOMS Integration 1 $8,823.60 $ 8,823.60
WOMS Implementation 4499 $2.00 $ 8,998.00
Subtotal $26,645.20
Optonal Work
Pre-Notification Mailers 4499 $ 2.30 $10,347.70
Post-Notification (3.5"x8" Door Hangers) 4499 $ 0.60 $2,699.40 Meter & Lid Pre-Install Survey for City Meters 4199 $ 23.50 $98,676.50 Meter & Lid Pre-Install Survey for County Meters 300 $ 53.20 $15,960.00 Water Line Material Survey 4499 $ 21.80 $98,078.20
Replace Lids up to 11"x21" 4241 $ 23.00 $97,543.00
Replace Lids up to 17.5"x31" 235 $ 34.80 $8,178.00
Gaskets and bolts 1 $ 8968.63 $8,968.63
Extra 3/4"x1" Adapters 200 $ 31.18 $6,236.00
Adaptor installation for 3/4" Meters 2960 $ 17.70 $52,392.00 Test Port Spool for 2" meters 99 $ 282.25 $27,942.75
Install of Test Port Spools 99 $ 29.50 $2,920.50 Additional cost of installing test port spools on 2" meters Meter Box Replacement B16 and Smaller in soft landscape 150 $ 176.50 $26,475.00 Meter Box Replacement B16 and Smaller in hard landscape 50 $ 529.50 $26,475.00 Rural Adder 300 $ 147.10 $44,130.00
Meter Box Cleanout - Moderate (Dirt above meter bottom and top of register) 2250 $ 11.80 $26,550.00 Meter Box Cleanout - Severe (Dirt above meter register) 2249 $ 23.60 $53,076.40 Staging and Warehousing 6 $ 1,764.80 $10,588.80
Waste & Spoils 0 $ 1,764.80 $0.00
Scrap Disposal 6 $ 1,764.80 $10,588.80
Register/Endpoint Recycling 4499 $ 5.30 $23,844.70
Pallet Jack & Forklift 1 $ 35,294.20 $35,294.20
Optional Total $686,965.58
TOTAL PROJECT $3,613,980.09
Agenda Item #9.2:

UPDATED TIMELINE

APPENDIX D
6 8925
Agenda Item #9.2:

ID Task
Mode
Task Name Duration Start Finish Predecessors
1 Contract 71 days Wed 11/1/23 Wed 2/7/24
2 Award 1 day Wed 11/1/23 Wed 11/1/23
3 Vendor Agreement 69 days Thu 11/2/23 Tue 2/6/24 2
4 Board Approval 1 day Wed 2/7/24 Wed 2/7/24 3
5 Notice to Proceed 1 day Wed 2/7/24 Wed 2/7/24 4FF
6 Project Implementation 42 days Thu 2/8/24 Fri 4/5/24
7 Procure Data Files 1 day Thu 2/8/24 Thu 2/8/24 5
8 Project Kick-Off 5 days Fri 2/9/24 Thu 2/15/24 7
9 Project Planning 20 days Fri 2/16/24 Thu 3/14/24 8
10 AMI Network Propogation Review 1 day Fri 2/16/24 Fri 2/16/24 8 11 AMI Network Site Visit 5 days Fri 2/16/24 Thu 2/22/24 8 12 Audit Large Meters 8 days Fri 2/16/24 Tue 2/27/24 8
13 AMI Network Site Plan, Review, & Approval 10 days Fri 2/23/24 Thu 3/7/24 11 14 Material Order(s) 41 days Fri 2/9/24 Fri 4/5/24
15 Meter and Lid Audit (Proposed) 21 days Fri 3/8/24 Fri 4/5/24 13 16 AMI Network Equipment 1 day Fri 2/9/24 Fri 2/9/24 7
17 Meters, Radios, & Lids 41 days Fri 2/9/24 Fri 4/5/24 7 18 Full Deployment 150 days Mon 4/8/24 Fri 11/1/24
19 Meter, Radio, & Lid Install 150 days Mon 4/8/24 Fri 11/1/24 20 Meter, Radio, & Lid Deliveries (Scheduled
throughout meter installation project)
1 day Mon 4/8/24 Mon 4/8/24 15
21 Full Deployment Installation (4,628) 149 days Tue 4/9/24 Fri 11/1/24 20 22 Route Acceptance 149 days Tue 4/9/24 Fri 11/1/24 21SS 23 Hardware & Software Refresher Training 5 days Tue 4/9/24 Mon 4/15/24 21SS 24 Project Closeout 30 days Mon 11/4/24 Fri 12/13/24 22

O N D J F M A M J J A S O N D
Half 1, 2024 Half 2, 2024
Task
Split
Milestone
Summary
Project Summary
Inactive Task
Inactive Milestone
Inactive Summary
Manual Task
Duration-only
Manual Summary Rollup
Manual Summary
Start-only
Finish-only
External Tasks
External Milestone
Deadline
Progress
Manual Progress

Project: City of Sonoma
Date: Mon 1/15/24
90 Timeline with Original Staffing
Agenda Item #9.2:

ID Task
Mode
Task Name Duration Start Finish Predecessors
1 Contract 71 days Wed 11/1/23 Wed 2/7/24
2 Award 1 day Wed 11/1/23 Wed 11/1/23
3 Vendor Agreement 69 days Thu 11/2/23 Tue 2/6/24 2
4 Board Approval 1 day Wed 2/7/24 Wed 2/7/24 3
5 Notice to Proceed 1 day Wed 2/7/24 Wed 2/7/24 4FF
6 Project Implementation 42 days Thu 2/8/24 Fri 4/5/24
7 Procure Data Files 1 day Thu 2/8/24 Thu 2/8/24 5
8 Project Kick-Off 5 days Fri 2/9/24 Thu 2/15/24 7
9 Project Planning 20 days Fri 2/16/24 Thu 3/14/24 8
10 AMI Network Propogation Review 1 day Fri 2/16/24 Fri 2/16/24 8 11 AMI Network Site Visit 5 days Fri 2/16/24 Thu 2/22/24 8 12 Audit Large Meters 8 days Fri 2/16/24 Tue 2/27/24 8
13 AMI Network Site Plan, Review, & Approval 10 days Fri 2/23/24 Thu 3/7/24 11 14 Material Order(s) 41 days Fri 2/9/24 Fri 4/5/24
15 Meter and Lid Audit (Proposed) 21 days Fri 3/8/24 Fri 4/5/24 13 16 AMI Network Equipment 1 day Fri 2/9/24 Fri 2/9/24 7
17 Meters, Radios, & Lids 41 days Fri 2/9/24 Fri 4/5/24 7 18 Full Deployment 121 days Mon 4/8/24 Mon 9/23/24
19 Meter, Radio, & Lid Install 121 days Mon 4/8/24 Mon 9/23/24 20 Meter, Radio, & Lid Deliveries (Scheduled
throughout meter installation project)
1 day Mon 4/8/24 Mon 4/8/24 15
21 Full Deployment Installation (4,628) 120 days Tue 4/9/24 Mon 9/23/24 20 22 Route Acceptance 120 days Tue 4/9/24 Mon 9/23/24 21SS 23 Hardware & Software Refresher Training 5 days Tue 4/9/24 Mon 4/15/24 21SS 24 Project Closeout 30 days Tue 9/24/24 Mon 11/4/24 22

O N D J F M A M J J A S O N
Half 1, 2024 Half 2, 2024
Task
Split
Milestone
Summary
Project Summary
Inactive Task
Inactive Milestone
Inactive Summary
Manual Task
Duration-only
Manual Summary Rollup
Manual Summary
Start-only
Finish-only
External Tasks
External Milestone
Deadline
Progress
Manual Progress

Project: City of Sonoma
Date: Tue 1/30/24
Timeline with Additional Crew
Agenda Item #9.2:

STANDARD PROCEDURES FROM

CONCORD

APPENDIX E
6 2591
Agenda Item #9.2:

Installation Quality Audit and Quality Control Methods
Concord's commitment to quality control surpasses industry standards by subjecting 100% of captured data and photos from all work orders to rigorous scrutiny. Our dedicated backend Quality Assurance (QA) team focuses on upholding data integrity and workmanship installation quality through comprehensive photo and data comparisons. In the event of any work order failures, a prompt escalation triggers a Field Audit, led by a project manager, project lead, or a qualified technician.

Data Quality Check:

We conduct a meticulous validation process, ensuring that all captured data aligns with the requirements of the Customer Information System (CIS) billing data. Before processing the daily work order file to Secure File Transfer Protocol (SFTP), we perform the following checks:
a. Location Validation: Address and old meter number comparisons. b. Meter Details: Verification of old and new meter numbers, size, and readings.
c. Register and Radio Data: Cross-checking old and new register and radio numbers.
d. Lid and Box Information: Ensuring accurate reporting of lid and box details.
e. GPS Accuracy: Validation of GPS location data.
f. Installer Identification: Verification of the installer's name. g. Installation Comments and Condition Codes: Review of installation comments and condition codes (issues).

Workmanship Installation Quality Check:

Our comprehensive installation quality assessment encompasses the following key aspects:
a. Meter Valve Position: Ensuring that the meter valve is in the appropriate On/Off position, either restoring service or matching the "as-found" condition.
b. Flow Direction: Verifying the direction of meter flow based on the indicator arrow.
c. Meter and Register Details: Comparing the size of the meter and register. d. Serial Number Validation: Matching the serial number to the actual photo. e. Site Conditions: Assessment of general site conditions, including cleanliness, housekeeping, and workmanship.
f. Lid and Box Alignment: Ensuring lids and boxes are flush to avoid any trip hazards.
92 Agenda Item #9.2:

Our commitment to quality control ensures the utmost accuracy, integrity, and compliance with industry standards throughout the installation process. 93 Agenda Item #9.2:

The primary reason for a RTU is the lack of access to a meter box. If for any reason the meter technician cannot obtain access to the meter, CUS would begin the RTU process. These issues include locked gates, obstructions over or near the meter box, customer refusal, or the technician cannot locate the meter box, direct connect, broken stops, or damaged infrastructure.

Another issue that frequently occurs is inaccurate work order data or mismatched serial numbers. If a meter serial number or ID does not match the service address, CUS would begin the RTU process. Less frequent issues that lead to RTUs are pre-existing damage to infrastructure, unsafe conditions, heavy construction or traffic, or loose animals in the vicinity.

The following is the RTU process:
1) The installation team shall make three attempts to complete an installation work order.
a. Attempt 1 – (Initial Visit) – Meter technician makes an initial attempt, and records attempt by entering condition assist code in WOMS. Condition Assist Codes include, but are not limited to, damaged infrastructure, unable to locate, direct connect, found leak, damaged/leaking angle/curb stop, unable to operate angle/curb stop, obstructed service, no access, locked gate, box relocation required to access meter, theft/tampering, etc. b. Attempt 2 – (RTC) – The work order is escalated to project manager or project lead, called Return to Concord (RTC); the PM or PL will make a second attempt to perform the installation, or validate condition assist code preventing completed install. The attempt is recorded in the WOMS. If unsuccessful, the work order will be escalated to the city as a RTU Review, with the matching condition assist code.
c. Attempt 3 – After RTU Review, installer will return to perform install and complete the work order (3rd. Attempt). If unable to complete after third attempt, present the work order to the City as RTU Complete, with appropriate condition assist code.
2) RTU Complete – Returned services will be reviewed during weekly status report meetings, in which a strategy will be developed to resolve the work order, resulting in Attempt 4, or it will be agreed upon with the City that the work order shall be considered unable to complete by the installation contractor, and accepted as an RTU Complete and shall be removed from the installation requirements
94 Agenda Item #9.2:

1 CUS_Water Meter_ SOP

Water Meter Installation Standard Operating Procedures

1. Exit vehicle wearing ALL required PPE (safety glasses, high visibility shirt, protective gloves, steel toe boots)

2. Place cones adjacent to rear bumper approximately 5’ from vehicle and even with driver side mirror.

3. Locate Meter Box and lift lid, checking for hazards, snakes, rodents, sharp protrusions.

4. Validate Location by verifying Old Meter Serial Number and Address matches work order data. a. If Location is CORRECT, proceed to Step 5?
b. If Location is NOT CORRECT and there is mismatched serial numbers, follow appropriate steps for RTC and RTU Review Codes.
• RTC – Return to Concord – Escalate to a manager to resolve issue. • RTU Review – Return to Utility (utility to address an issue prior to performing the installation, e.g., damaged, existing leak, broken stop, cannot locate, etc.)

5. Validate work order Exchange Type: Meter Exchange, Register Retrofit, Radio Only, etc.

6. Exchange Meter or Retrofit Register
IMPORTANT: Do not attempt to install more than one work order at a time, including scenarios where there are more than one meter in a pit, vault, or bank of meters. a. Customer pre-notification: no customer notification required if Register Retrofit, Endpoint Only, or other work that does not require turning water service off. b. If Meter Exchange, notify customer of the work to be performed. If customer is not available, check the meter register for consumption.
• If no consumption at meter, proceed with meter exchange. • If register shows consumption, DO NOT proceed with the installation (Attempt 1). o Attempt 2- Install later thatsame day.
o Attempt 3 - Install the following day
c. Take Pre-Site picture of work area 4 to 6 feet in front of meter box showing surrounding area in ‘As Found’ condition.
d. Take photo of pit condition (Dirt Level and valve position) e. Remove dirt and debris from around the meter and meter connections, place in a spoils bucket.
f. Use water meter key to turn the curb stop/angle stop to the off position. g. Remove Old Meter.
h. Install New Meter and gaskets.
i. Verify direction of flow (embossed arrow points towards the customer side) i. Flush Line –
i. Before restoring water service, open the hose bib where the water main enters house.
ii. Turn water on SLOWLY, at the angle/curb stop valve. Run water through the hose bib, until all air has been evacuated from the service line (approximately 60 seconds). IMPORTANT: If water was OFF when you arrived- DO NOT TURN 95 Agenda Item #9.2:

2 CUS_Water Meter_ SOP
BACK ON, DO NOT FLUSH LINE, there may be an open line or plumbing repair in house.
iii. Once line is flushed, close customer hose bib.
j. If meter is still spinning (registering consumption) and there are no visible leaks, confirm with customer that water is being used. If customer is not available turn service OFF at meter, notify project manager and document in the work order management system, “Water left off”.

7. Install Endpoint:
a. Install endpoint into AMI ready lid, ensuring the endpoint is secure to mounting surface in lid. b. Connect endpoint to meter register.
c. Activate/Program endpoint if required.

8. Collect Work Order Data following the managed workflow on mobile device. a. Input last read.
b. Validate old meter number by entering last 4 digits serial number c. Input new meter serial numbers (bar code scan)
d. Input new register serial numbers (bar code scan)
e. Input new endpoint serial numbers (bar code scan)
f. Validate meter size and type.

9. Photos: IMPORTANT: For QA uniformity, handhelds must always be in the upright (portrait) position when taking photos.
a. Photo 1: Pre-Site picture of work area 4 to 6 feet in front of meter box showing surrounding area ‘As Found’ conditions.
b. Photo 2: Pit condition (Dirt Level and Valve Position) c. Photo 3: Photo of customer line being bled at hose bib. d. Photo 4: New Meter Serial Number
e. Photo 5: New Transmitter Serial number.
f. Photo 6: Photo of Old Register Read
g. Photo 7: Photo of Old Meter Serial Number
h. Photo 8: Completed Installation: Capture Ball Valve and Angle stop in the correct position. i. Photo 9: ‘As Left’ Site condition:

10. Review all collected data in handheld

11. Save Data

12. Clean Site and Meter Pit of all materials, trash, debris, and excess spoils

13. Install pit lid ensuring the lid is installed properly and completely flush (Watch all wire connections when closing the lid.)

14. Move to next Work Order
96 Agenda Item #9.2:

14097
Agenda Item #9.2:

WORKER’S COMPENSATION INSURANCE ACKNOWLEDGEMENT
I am aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract. If any class of employees engaged in work under this contract at the site of the Project is not protected under any Worker’s Compensation law, Contractor shall provide and shall cause each subcontractor to provide adequate insurance for the protection of employees not otherwise protected.

Contractor shall indemnify and hold harmless City for any damage resulting from failure of either Contractor or any subcontractor to take out or maintain such insurance.

Date:________________________ _____________________________________ Signature
_____________________________________
Printed Name
_____________________________________
Title
Agenda Item #9.2:

CAMPAIGNCONTRIBUTIONDISCLOSUREPROVISIONS
Cities are subject to the campaign disclosure
provisions detailed in Government Code Section
84308.

Please carefully read the following information to
determine if the provisions apply to you. If you
determine that the provisions are applicable, the
Campaign Disclosure Form must be completed andreturned
tothe City of Sonoma (City)withyourapplication.

No City councilmember or commissioner shall accept,
solicit, or direct a contribution of more than $250 from any party1 or agent2 for 12 months subsequent to the
date a final decision is rendered by the City. This
prohibition commences when your application has
been filed, or the proceeding is otherwise initiated.

A party to a City proceeding shall disclose on the record of the proceeding any contribution of more than $250
made to any councilmember or commissioner by the
party, or agent, during the preceding 12 months. No
party to a City proceeding, or agent, shall make a
contribution to a councilmember or commissioner during
the proceeding and for 12 months following the date a
final decision is rendered by the City.

Prior to rendering a decision on a City proceeding, any councilmember or commissioner who received
contribution ofmore than $250within the preceding 12
months from any party, or agent, to a proceeding shall
disclose that fact on the record of the proceeding, and shall be disqualified from participating in the
proceeding. However, if any councilmember or
commissioner receives a contribution that otherwise
would require disqualification, and returns the
contribution within 30 days of knowing about the
contribution and the relevant proceeding, that
councilmember or commissioner shall be permitted to
participate in the proceeding.
1 “Party” is defined as any person who files an application for, or is the subject of, a proceeding.
2 “Agent” is defined as a person who represents a party i i i h di If i di id l i

To determine whether a campaign contribution of more than $250 has been made by you or your agent to a councilmember or commissioner within the preceding 12 months, all contributions made by you or your agent during that period must be aggregated.

Names of current City councilmembers and commissioners are available on the City’s website. If you have questions about Government Code Section 84308, FPPC regulations, or the Campaign Disclosure Form, please contact the City Clerk.

CAMPAIGN CONTRIBUTION DISCLOSURE FORM
(a) ___________________________________Document:
□ License
□ Lease
□ Permit
□ Franchise
□ Other Contract
□ Other Entitlement
Name and address of any party, or agent, who has contributed more than $250 to any councilmember or commissioner within the preceding 12 months:

1. ____________________________________

2. ____________________________________

3. ____________________________________
(b) Date and amount of contribution:

Date Amount $
Date Amount $
(c) Name of councilmember or commissioner to whom contribution was made:

1. ____________________________________

2. ____________________________________

3. ____________________________________
(d) I certify that the above information is provided to the best of my knowledge.

Agenda Item #9.2:

City of Sonoma
Agenda Item Summary
Meeting: City Council - 07 Feb 2024
Department
Planning and Community Services
Staff Contact
Kristina Tierney, Associate Planner
Agenda Item Title
A Resolution Updating the 1991 Environmental Review Procedures and Finding the Proposed Modifications are Exempt from the California Environmental Quality Act (CEQA) Pursuant to Section 15061(B)(3) – General Rule – of the CEQA Guidelines Summary
The City of Sonoma last adopted Environmental Review Procedures in 1991. Since that time there have been significant changes in the California Environmental Quality Act (CEQA) and its implementing guidelines as a result of court decisions and legislative actions. Additionally, the City's environmental review practices have also changed in response to changing needs.

The purpose of the update is to align the Environmental Review procedures with State law and the City's standard practices, define Community Development Director role, improve clarity on cost recovery and the financial responsibility of applicants, and eliminate the Environmental Review Committee, which has not been functional in many years. This guide is intended to assist applicants in processing their applications and understand the general steps in the CEQA process. No changes are proposed to the level of community engagement or public noticing as required by the State CEQA process.

On January 18, 2024 the Planning Commission voted unanimously recommending that the City Council adopt the updated Environmental Review Procedures.

Recommended Council Action
Adopt a Resolution of the City Council to adopt revised Environmental Review Procedures and finding the proposed amendments are exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(B)(3) – General Rule – of the CEQA Guidelines.

Alternative Actions
Council discretion
Financial Impact
There is no financial impact from this action.

Environmental Review Status
Environmental Impact Report
Negative Declaration
Exempt
Not Applicable
Approved/Certified
No Action Required
Action Requested
Attachments
Agenda Item #9.3:

Draft Resolution CEQA Policy
Draft City of Sonoma CEQA Update 2024
Resolution 1-1991 - Environmental Procedures
Agenda Item #9.3:

CITY OF SONOMA

CITY COUNCIL
RESOLUTION # _______ - 2024

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SONOMA ADOPTING

REVISED ENVIRONMENTAL REVIEW PROCEDURES AND FINDING THAT THE

ACTION IS NOT A PROJECT SUBJECT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA).

WHEREAS, the City of Sonoma City Council previously adopted Environmental Review Procedures (Procedures) on February 18, 1991; and
WHEREAS, the intent of these Procedures is to implement the basic principles, objectives, and criteria contained Section 21082 of the Public Resources Code and Section 15022 of the CEQA Guidelines; and
WHEREAS, these Procedures are designed to be used in conjunction with CEQA the CEQA Guidelines when the City is the lead agency for a project to streamline the environmental review process consistent with state law; and
WHEREAS, on January 18, 2024, the Planning Commission considered a draft revised Environmental Review Procedures and unanimously recommended to the City Council adoption of the revised Environmental Review Procedures; and
WHEREAS, the proposed revisions are consistent with state law.

NOW, THEREFORE, the City Council of the City of Sonoma resolves as follows:

Section 1. The above recitations are true and correct.

Section 2. The proposed activity is exempt from CEQA review under CEQA Guidelines sections 15061(b)(3) (common sense exemption) and 15308 (actions by regulatory agencies for the protection of the environment). All projects identified that require a discretionary decision by the Planning Commission and/or City Council will require compliance with CEQA.

Section 3. The Environmental Review Procedures, Exhibit A, is hereby accepted and shall take effect immediately.

RESOLVED AND ADOPTED this ___________________, 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_________________________________
John Gurney, Mayor
ATTEST:
_________________________________
Rebekah Barr, MMC, City Clerk
Agenda Item #9.3:

City of Sonoma

CITY OF SONOMA
Environmental Review Procedures

January 2024
Agenda Item #9.3:

City of Sonoma
Page Left Blank
Agenda Item #9.3:

City of Sonoma
Table of Contents
I. Purpose ............................................................................................................................................. 1 II. Definitions......................................................................................................................................... 1 III. General Provisions............................................................................................................................ 1 IV. Activities Not Subject to CEQA.......................................................................................................... 2 V. Determination of Exemption ............................................................................................................ 3 VI. Initial Study ....................................................................................................................................... 5 VII. Negative Declaration Process........................................................................................................... 6 VIII. Environmental Impact Reports. ........................................................................................................ 8 IX. Tribal Consultation..........................................................................................................................10 X. Historical or Unique Archaeological Resources..............................................................................10 XI. Consultant Assistance. ....................................................................................................................13 XII. Fees. ................................................................................................................................................14 XIII. Authority of the Community Development Director......................................................................14 XIV. Mitigation and Monitoring..............................................................................................................15 XV. Agency Contacts..............................................................................................................................16 Agenda Item #9.3:

City of Sonoma 1
I. Purpose
The intent of these procedures is to protect the environment of the City of Sonoma, to comply with the California Environmental Quality Act (CEQA), and to implement the basic principles, objectives, and criteria contained Section 21082 of the Public Resources Code and Section 15022 of the CEQA Guidelines. These procedures are designed to be used in conjunction with CEQA the CEQA Guidelines when the City is the lead agency for a project to streamline the environmental review process consistent with state law.

II. Definitions
The definitions set forth in Article 20 (Definitions) of the CEQA Guidelines shall apply, except as supplemented as follows:

1. Applicant: A person, including, but not limited to, project applicant, property owner, architects, or other professionals working in support of a project, who proposes to carry out a project which needs a lease, permit, license, certificate, or other entitlement of use or financial assistance from one or more public agencies when that person applies for the governmental approval or assistance.

2. California Environmental Quality Act (CEQA): Public Resources Code, Sections 21000 et seq., or any successor statute(s).

3. CEQA Guidelines: "State CEQA Guidelines," prepared by the Secretary for Resources, title 14 of the California Code of Regulations sections 15000 et seq., or any successor guideline(s).

4. City: City of Sonoma.

5. City Council: The City Council of the City of Sonoma.

6. Decision Making Body: The officer or body that has the authority to approve a project or application under the Sonoma Municipal Code, including, but not limited to, the Director, Planning Commission, or City Council.

7. Director: The Community Development Director of the City of Sonoma or designee.

8. Planning Commission: The Planning Commission of the City of Sonoma.

III. General Provisions

1. Adoption of Local CEQA Guidelines and Incorporation of CEQA Guidelines. The City hereby adopts as its own local California Environmental Quality Act Guidelines under Section 21082 of the Public Resources Code all of the CEQA Guidelines, as amended from time to time, and as augmented by these environmental review procedures. These procedures are developed pursuant to CEQA and the CEQA Guidelines and are intended to define the manner in which state-mandated environmental review procedures are administered by the City. Should any Agenda Item #9.3:

City of Sonoma 2
conflict between these procedures and CEQA or the CEQA Guidelines be found or arise due to changes in the statute or the Guidelines, the conflict shall be resolved in favor of the statute and Guidelines.

2. Amendment. These procedures may be amended from time to time. Amendments may be initiated by the Director, Planning Commission, or City Council. Any proposed amendment with substantive changes must be reviewed by the Planning Commission for recommendation to the City Council for final review and decision. Minor text amendments, amendments to comply with state law, or to update the best available information can be approved by the Director.

3. Administration. The Director shall be responsible for administering the procedures set forth herein. The Director shall make the initial determination as to the appropriate level of environmental review required under CEQA for a project. The Director is responsible for determining whether a project is eligible for an exemption from review under CEQA and is also responsible for preparing a negative declaration, mitigated negative declaration, or Environmental Impact Report for projects. The Director’s determination shall be based on substantial evidence.

4. Appeals. Decision of the Director under these procedures may be appealed to the Planning Commission and decisions of the Planning Commission under these procedures may be appealed to the City Council as set forth in Sonoma Municipal Code Chapter 19.84 (Appeals).

5. Time Limits. The time limits set forth in CEQA and the CEQA Guidelines shall be adhered to in the administration of these procedures, with the following exceptions:
a. Projects which are deemed emergencies as defined in Section 15269 of the CEQA Guidelines are exempt from the requirements of CEQA;
b. Projects for which the Director has requested and obtained permission from the Office of Planning and Research for shortened public review periods; and c. Projects mandated under state or federal statute which specifically require expedited review as defined in Section 15111 of the CEQA Guidelines.

6. Minimum Requirements. In interpretation and application, these procedures shall be considered the minimum requirements necessary to accomplish the purpose set forth herein.

7. Fees. Fees shall be charged to recover the full cost of administering, preparing, and processing environmental documents. See Section XII for more information.

8. Communication. Applicants shall have no direct communication with consultants hired by the City to assist with environmental review, unless permission has been obtained in writing from the Director for a specific purpose.

IV. Activities Not Subject to CEQA

1. Generally. Activities that are not "projects" as defined in Section 15378 of the CEQA Guidelines and activities that are "ministerial" as defined in Section 15369 of the CEQA Guidelines are not Agenda Item #9.3:

City of Sonoma 3
subject to CEQA or these procedures. Examples of City activities that are not normally subject to CEQA include but are not limited to:
a. Business licenses
b. Grading permits
c. Building permits
d. Final subdivision maps
e. Certificates of use and occupancy
f. Accessory Dwelling Units

2. Exceptions. There may be instances where unusual circumstances cause one of the above activities to be considered a discretionary action subject to CEQA. Examples include, but are not limited to:
a. Any building permit or grading permit application or other action which is normally considered ministerial but due to special circumstances is determined to have the potential to cause a significant effect on the environment. Examples may include, but are not limited to:
i. Work in an area of unusual erosion potential or ground instability; ii. Work affecting scenic or sensitive historical, archaeological, or biological resources; and
iii. An activity that may generate substantial public health impacts, such as noise, odors, or toxic materials.
b. Any building or grading permit in a sensitive area for which no prior CEQA review has occurred and no discretionary permit (e.g., use permit, design review) is required.

V. Determination of Exemption

1. Administration. CEQA and the CEQA Guidelines provide that certain types of projects (i.e., projects that fall under Subsections 2, 3, and/or 5 of this Section V) are exempt from the requirement to prepare an initial study unless there are special circumstances that could result in significant environmental effects. The Director shall be responsible for conducting a preliminary review of the proposed project to determine whether the project is exempt from the provisions of CEQA.

2. Statutory Exemptions. Activities that qualify for a statutory exemption as provided under Sections 15260 et seq. of the CEQA Guidelines do not require further environmental review to the extent stated in the CEQA Guidelines.

3. Categorical Exemptions. The various classes of categorical exemptions contained in Section 15300 (Categorical Exemptions) of the CEQA Guidelines are exempt from the provisions of CEQA.

4. Exceptions to Categorical Exemptions. The categorial exemptions provided in Section 3 above shall not be used if the conditions in Section 15300.2 (Exceptions) of the CEQA Guidelines apply. a. Location. Classes 3, 4, 5, 6, and 11 are qualified by consideration of where the project is to be located – a project that is ordinarily insignificant in its impact on the environment may in a particularly sensitive environment be significant. Therefore, these classes are Agenda Item #9.3:

City of Sonoma 4
considered to apply all instances, except where the project may impact on an environmental resource of hazardous or critical concern where designated, precisely mapped, and officially adopted pursuant to law by federal, state, or local agencies. b. Cumulative Impact. All exemptions for these classes are inapplicable when the cumulative impact of successive projects of the same type in the same place, over time is significant.
c. Significant Effect. A categorical exemption shall not be used for an activity where there is a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances.
d. Scenic Highways. A categorical exemption shall not be used for a project which may result in damage to scenic resources, including but not limited to, trees, historic buildings, rock outcroppings, or similar resources, within a highway officially designated as a state scenic highway. This does not apply to improvements which are required as mitigation by an adopted negative declaration or certified EIR. e. Hazardous Waste Sites. A categorical exemption shall not be used for a project located on a site which is included on any list compiled pursuant to Section 65962.5 of the Government Code.
f. Historical Resources. A categorical exemption shall not be used for a project which may cause a substantial adverse change in the significance of a historical resource.

5. "Common Sense" Exemption. During the preliminary review of an application, each discretionary project that is not covered under a statutory or categorical exemption shall be evaluated to determine whether it qualifies for the common sense exemption under the general rule contained in Section 15061(b)(3) of the CEQA Guidelines which states in relevant part:

Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

The CEQA Guidelines further encourage agencies to adopt a list of project types that would qualify for the common sense exemption. Project types which qualify for this exemption include, but are not limited to:
a. Minor changes to the Municipal Code which do not authorize physical development. b. Minor changes to public infrastructure such as installing trees, replacing or upgrading streetlights, traffic signals, etc., and other public improvements of a minor nature. c. Administrative City actions such as budget amendments, professional services agreements, etc. which do not involve projects which affect the physical environment.

6. Approval of Exemption. Upon recommendation of the Director, the Decision Making Body charged with approving a project or application shall have the authority to determine the applicability of exemptions for all public and privately-initiated projects.

Agenda Item #9.3:

City of Sonoma 5

7. Notice of Exemption. After approval of a project that was found to be exempt, the Director may prepare and file a Notice of Exemption as provided under Section 15062 (Notice of Exemption) of the CEQA Guidelines. Costs associated with filing shall be the responsibility of the project applicant.

VI. Initial Study

1. General. If the proposed project is not exempt from review under CEQA, the City shall conduct an initial study to determine if the project may have a significant effect on the environment. If the City can determine that an Environmental Impact Report (EIR) will clearly be required for the project, an initial study is not required but may still be desirable. initial studies shall be prepared in accordance with requirements contained in Section 15063 (Initial Study) of the CEQA Guidelines. Where the Director determines that consultant assistance is required to complete the initial study, the procedural requirements contained in Section XI (Consultant Assistance) below shall apply.

2. Purpose. The purposes of an initial study are to:
a. Provide the City with information to use as the basis for deciding whether to prepare an EIR or a negative declaration.
b. Enable an applicant or City to modify a project, mitigating adverse impacts before an EIR is prepared, thereby enabling the project to qualify for a mitigated negative declaration. c. Assist in the preparation of an EIR, if one is required, by:
i. Focusing the EIR on the effects determined to be significant, ii. Identifying the effects determined not to be significant, iii. Explaining the reasons for determining that potentially significant effects would not be significant, and
iv. Identifying whether a program EIR, tiering, or another appropriate process can be used for analysis of the project’s environmental effects. d. Facilitate environmental assessment early in the design of a project; e. Provide documentation of the factual basis for the finding in a negative declaration that a project will not have a significant effect on the environment; f. Eliminate unnecessary EIRs; and
g. Determine whether a previously prepared EIR could be used with the project.

3. Applicant's Responsibilities. The applicant shall submit all information determined by the Director to be necessary for the preparation of the initial study. In addition, when consultant assistance is required, the applicant shall be responsible for all costs as provided under Sections XI (Consultant Assistance) and XII (Fees).

4. Content and Format. The content and format of an initial study shall be in accordance with Section 15063 of the CEQA Guidelines. The initial study shall also determine the significance of Agenda Item #9.3:

City of Sonoma 6
the environmental effects caused by a project under Section 15064 of the CEQA Guidelines. The initial study shall be prepared using Appendices G and H of the CEQA Guidelines.

5. CEQA Determination. Based on the Initial Study, the Director shall determine whether there is substantial evidence that any aspect of the project, either individually or cumulatively, may cause a significant effect on the environment, regardless of whether the overall effect of the project is adverse or beneficial. If the Director so finds, the City shall do one of the following:
a. Prepare an EIR, or
b. Use a previously prepared EIR which the lead agency determines would adequately analyze the project at hand, or
c. Determine, pursuant to a program EIR, tiering, or another appropriate process, which of a project’s effects were adequately examined by an earlier EIR or negative declaration.

Another appropriate process may include, for example, a master EIR, a master environmental assessment, approval of housing and neighborhood commercial facilities in urban areas, approval of residential projects pursuant to a specific plans described in Section 15182 of the CEQA Guidelines, approval of residential projects consistent with a community plan, general plan or zoning as described in Section 15183 of the CEQA Guidelines, or an environmental document prepared under a State certified regulatory program. The City shall then ascertain which effects, if any, should be analyzed in a later EIR or negative declaration.
d. The City shall prepare a negative declaration if there is no substantial evidence that the project or any of its aspects may cause a significant effect on the environment.

VII. Negative Declaration Process

1. General. As provided in Section 15070 of the CEQA Guidelines, the City shall prepare or have prepared a proposed negative declaration or mitigated negative declaration for a project subject to CEQA when:
a. The initial study shows that there is no substantial evidence, in light of the whole record before the agency, that the project may have a significant effect on the environment, or b. The initial study identifies potentially significant effects, but:
i. Revisions in the project plans or proposals made by, or agreed to by the applicant before a proposed mitigated negative declaration and initial study are released for public review would avoid the effects or mitigate the effects to a point where clearly no significant effects would occur, and ii. There is no substantial evidence, in light of the whole record before the agency, that the project as revised may have a significant effect on the environment.

2. Applicant's Responsibilities. The applicant shall submit all information determined by the Director to be necessary for the preparation of the negative declaration or mitigated negative Agenda Item #9.3:

City of Sonoma 7
declaration. In addition, when consultant assistance is required, the applicant shall be responsible for all costs as provided under Sections XI (Consultant Assistance) and XII (Fees).

3. Contents. Negative declaration circulated for public review shall include all items required and outlined by Section 15071 of the CEQA Guidelines, including a brief description of the project, location map, name of the project proponent, and a proposed finding that the project will not have a significant effect on the environment. The negative declaration shall include an attached copy of the initial study documenting reasons to support the finding; and any and all mitigation measures, if any, included in the project to avoid potentially significant effects.

4. Notice of Intent and Posting of a Proposed Negative Declaration. The Director shall provide notice of intent to adopt a negative declaration or mitigated negative declaration as required by Section 15072 of the CEQA Guidelines.

5. Public Review. Public review shall follow Section 15073 of the CEQA Guidelines. a. The City shall ensure a public review period of not less than 20 days. When a proposed negative declaration or mitigated negative declaration and initial study are submitted to the State Clearinghouse for review by state agencies, the public review period shall not be less than 30 days, unless a shorter period is approved by the State Clearinghouse under Section 15105(d) of the CEQA Guidelines.
b. A copy of the proposed negative declaration or mitigated negative declaration and the initial study shall be attached to the notice of intent to adopt the proposed declaration that is sent to every responsible agency and trustee agency concerned with the project and every other public agency with jurisdiction by law over resources affected by the project.
c. Where one or more state agencies will be a responsible agency or a trustee agency or will exercise jurisdiction by law over natural resources affected by the project, or where the project is of statewide, regional, or areawide environmental significance, the City shall send copies of the proposed negative declaration or mitigated negative declaration to the State Clearinghouse for distribution to state agencies. d. The City shall notify in writing any public agency which comments on a proposed negative declaration or mitigated negative declaration of any public hearing to be held for the project for which the document was prepared. A notice provided to a public agency pursuant to Section 15072 of the CEQA Guidelines satisfies this requirement.

6. Consideration and Adoption of a Negative Declaration or Mitigated Negative Declaration. a. Prior to approval of any project for which a negative declaration or mitigated negative declaration was prepared, appropriate findings shall be prepared by the Director for consideration by the Decision Making Body.
b. The Decision Making Body shall approve or modify, or disprove the findings prepared by the Director. The Decision Making Body may also take no action or not adopt the negative declaration or mitigated negative declaration.

Agenda Item #9.3:

City of Sonoma 8

7. Action by the Decision Making Body. Prior to approval of any project for which a negative declaration or mitigated negative declaration was prepared, the Decision Making Body shall adopt the negative declaration or mitigated negative declaration prepared by Director only after it finds, based on the whole record before it, that there is no substantial evidence the project will have a significant effect on the environment and that the negative declaration or mitigated negative declaration reflects the independent judgment of the City.

8. Conditions of Approval/Mitigation Monitoring. When a mitigated negative declaration is adopted for a project which has environmental impacts mitigated to a level of insignificance by proposed mitigation measures, those mitigations shall be included in a mitigation monitoring program as identified in Section XIV below and shall be made a condition of project approval.

9. Notice of Determination. Within five (5) working days following the Decision Making Body's approval of a project for which a negative declaration or mitigated negative declaration was prepared, the Director shall prepare and file a Notice of Determination as provided by Section 15075 of the CEQA Guidelines.

VIII. Environmental Impact Reports.

1. General. If the initial study shows that there is substantial evidence that any aspect of the project, either individually or cumulatively, may cause a significant effect on the environment, regardless of whether the overall effect of the project is adverse or beneficial, the City shall either prepare or cause to be prepared a draft EIR or use a previously certified EIR which adequately analyzes the project.

2. Applicant's Responsibilities. The applicant shall submit all information determined by the Director to be necessary for the preparation of the draft EIR. In addition, when consultant assistance is required, the applicant shall be responsible for all costs as provided under Sections XI (Consultant Assistance) and XII (Fees), below.

3. Notice of Preparation. The Director shall prepare and distribute a Notice of Preparation as provided by Section 15082 of the CEQA Guidelines.

4. Public Scoping Meeting. The Director shall conduct a public meeting to obtain input on the scope of the draft EIR when required under Section 15082(c) of the CEQA Guidelines and may conduct such a public meeting in all other cases. The proposed project and its potential impacts as identified in the initial study shall be presented to the public to obtain comments on the potential project impacts to be addressed in the draft EIR.

5. Preparation of a Draft EIR. The Director shall prepare or cause to be prepared the draft EIR.

During the preparation, the Director may consultant with the applicant, consultant, responsible and trustee agencies, or with other interested agencies or individuals it believes will be concerned with the environmental effects of the project to discuss the project, obtain information regarding its impacts, and devise mitigation measures. Any person, including the applicant, may submit information or comments to the City to assist in the preparation of the draft EIR. The submittal may be presented in any format, including the form of a draft EIR. The information and comments received will be considered and may be included in the EIR in whole or in part.

Agenda Item #9.3:

City of Sonoma 9

6. Notice of Completion of a Draft EIR. The Director shall prepare and distribute a Notice of Completion as provided by Section 15085 of the CEQA Guidelines.

7. Public Notice and Review.
a. Public Notice. At the same time the Director sends the Notice of Completion to the Office of Planning and Research under Section 15085 of the CEQA Guidelines, the Director shall provide public Notice of Availability of the draft EIR and public review period on the City’s website in addition to at least two of the following means:
1) One-time publication in the Sonoma Index-Tribune.
2) Notices posted on and off the site in the vicinity of the project. 3) Direct mailing to property owners contiguous to the project site as shown in the latest equalized assessment roll.

The public notice will also be sent to the office of the County Clerk to be posted in that office for a period of at least 30 days.
b. Documents Available for Public Review. Copies of the draft EIR shall be made available at City Hall and the Sonoma Valley Public Library for public review. Downloadable copy shall be made available on the City’s Website.
c. Time Limits. The public review period for a draft EIR shall not be less than 30 days nor should it be longer than 60 days except in unusual circumstances as determined by the Director. When a draft EIR is submitted to the State Clearinghouse for review by state agencies, the public review period shall not be less than 45 days, unless a shorter period, not less than 30 days, is approved by the State Clearinghouse.

8. Response to Comments. Upon closure of the review period, the Director shall collate all comments received on the draft EIR and shall ensure that all are responded to, in writing, in the final EIR.

9. Final EIR. Following the closure of the review period and the preparation of the responses to comments, the Director shall prepare or cause to be prepared a final EIR as provided by Section 15089 of the CEQA Guidelines.

10. Action by the Decision Making Body. Prior to approval of any project for which an EIR was prepared, the final EIR shall be certified as provided by Section 15090 of the CEQA Guidelines and appropriate findings, as required by Section 15091 of the CEQA Guidelines, shall be prepared by the Director for consideration by the Decision Making Body. The Decision Making Body may modify, certify, or disprove any EIR prepared by the Director. Additionally, prior to approval of any project for which an EIR was prepared, the Decision Making Body shall approve or amend the findings prepared by the Director. The Decision Making Body shall certify the final EIR if it has been prepared in accordance with CEQA and the CEQA Guidelines; the final EIR was presented to the Decision Making Body and was reviewed and considered prior to approving the project; and that the final EIR reflects the Decision-Making Body’s independent judgment and analysis. Any amendment must reflect a reasoned analysis supported by substantial evidence in the administrative record.

Agenda Item #9.3:

City of Sonoma 10

11. Statement of Overriding Consideration. If the project is approved by Decision Making Body with the finding that the mitigation of one or more significant impacts is infeasible due to specific economic, social, legal, technological, or other considerations, then a statement of overriding considerations, pursuant to section 15093 of the CEQA Guidelines, shall be adopted. Such findings shall be based on substantial evidence in the administrative record. The statement of overriding considerations shall be included in the record of project approval and mentioned in the Notice of Determination.

12. Conditions of Approval/Mitigation Monitoring. When an EIR is certified for a project which has environmental impacts mitigated to a level of insignificance by proposed mitigation measures, those mitigations shall be included in a mitigation monitoring program as identified in Section XIV below and shall be made a condition of project approval.

13. Notice of Determination. Within five (5) working days following the Decision Making Body's approval of a project for which an EIR was prepared, the Director shall prepare and file a Notice of Determination as provided by Section 15094 of the CEQA Guidelines.

14. Filing the Final EIR. The final EIR shall be filed with the City Community Development Department. The applicant shall be responsible for providing each Responsible Agency with a copy of the certified, final EIR as provided by Section 15094 of the CEQA Guidelines.

IX. Tribal Consultation
As part of the CEQA process, the City will engage in Tribal consultation pursuant to Assembly Bill (AB) 52 and Senate Bill (SB) 18, and any subsequent requirements. AB 52 requires public agencies to consult with tribes during the CEQA process. Tribal consultation was also added as a requirement for housing projects using SB 35 streamlining. Under SB 18, the City shall consult with California Native American tribes, regardless of whether they are federally recognized, that are within the City, are on the contact list maintained by the Native American Heritage Commission (NAHC), and are affected by the proposed plan adoption or amendment as required when amending the General Plan or Specific Plans. (Gov. Code, § 65352.3.) Costs associated with Tribal Consultation for private development projects shall be the responsibility of the applicant and may include additional technical studies and other costs.

X. Historical or Unique Archaeological Resources
Historical and archeological resources are of particular concern in the City. The City shall follow Section 15064.5 of the CEQA Guidelines and any other relevant guidelines and statutes.

1. Historic Resources: Historical resources are identified in Section 15064.5(a) of the CEQA Guidelines. Historical resources shall be treated as significant unless the preponderance of evidence demonstrates that it is not historically or culturally significant.

The fact that a historical resource is not listed in, or determined to be eligible for listing in the California Register of Historical Resources, not included in a local register of historical resources (pursuant to Section 5020.1(k) of the Public Resources Code), or identified in an historical Agenda Item #9.3:

City of Sonoma 11
resources survey (meeting the criteria in Section 5024.1(g) of the Public Resources Code) does not preclude the City from determining that the resource may be an historical resource as defined in Sections 5020.1(j) or 5024.1 of the Public Resources Code.

As part of the CEQA process, the City shall require any documentation needed to determine the significance of a historical resource. A proposed project with an effect that may cause a substantial adverse change in the significance of an historical resource is a project that may have a significant effect on the environment.

Substantial adverse change in the significance of an historical resource means physical demolition, destruction, relocation, or alteration of the resource or its immediate surroundings such that the significance of an historical resource would be materially impaired.

The significance of an historical resource is materially impaired when a project:
a. Demolishes or materially alters in an adverse manner those physical characteristics of an historical resource that convey its historical significance and that justify its inclusion in, or eligibility for, inclusion in the California Register of Historical Resources; or b. Demolishes or materially alters in an adverse manner those physical characteristics that account for its inclusion in a local register of historical resources pursuant to Section 5020.1(k) of the Public Resources Code or its identification in an historical resources survey meeting the requirements of Section 5024.1(g) of the Public Resources Code, unless the City reviewing the effects of the project establishes by a preponderance of evidence that the resource is not historically or culturally significant; or c. Demolishes or materially alters in an adverse manner those physical characteristics of a historical resource that convey its historical significance and that justify its eligibility for inclusion in the California Register of Historical Resources as determined by the City for purposes of CEQA.

Generally, a project that follows the Secretary of the Interior’s Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, Restoring, and Reconstructing Historic Buildings or the Secretary of the Interior’s Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings (1995), Weeks and Grimmer, shall be considered as mitigated to a level of less than a significant impact on the historical resource (CEQA Section 15064.5(b)(3)).

The City shall identify potentially feasible measures to mitigate significant adverse changes in the significance of an historical resource and shall ensure that any adopted measures to mitigate or avoid significant adverse changes are fully enforceable through permit conditions, agreements, or other measures.

2. Archaeological Resources: The City contains numerous sensitive archeological resources. a. During the CEQA process, the City shall determine if a project will impact an archaeological site and if the site is a historical resource. i. If the City determines that an archaeological site is an historical resource, the City shall refer to the provisions of Section 21084.1 of the Public Resources Code Agenda Item #9.3:

City of Sonoma 12
and Sections 15064.5 and 15126.4 of the CEQA Guidelines, and the limits contained in Section 21083.2 of the Public Resources Code do not apply. ii. If an archaeological site does not meet the criteria for a historical resource but does meet the definition of a unique archeological resource in Section 21083.2 of the Public Resources Code, the site shall be treated in accordance with the provisions of Section 21083.2.
b. When an initial study identifies the existence of, or the probable likelihood, of Native American human remains within the project, the City shall work with the appropriate Native Americans as identified by the NAHC as provided in Section 5097.98 of the Public Resources Code. The applicant may develop an agreement for treating or disposing of, with appropriate dignity, the human remains, and any items associated with Native American burials with the appropriate Native Americans as identified by the NAHC. c. In the event of the accidental discovery or recognition of any human remains in any location other than a dedicated cemetery, the following steps should be taken:
i. There shall be no further excavation or disturbance of the site, or any nearby area reasonably suspected to overlie adjacent human remains until:
a) The coroner of the county in which the remains are discovered must be contacted to determine that no investigation of the cause of death is required, and
b) If the coroner determines the remains to be Native American:

1. The coroner shall contact the NAHC within 24 hours.

2. The NAHC shall identify the person or persons it believes to be the most likely descended from the deceased Native American.

3. The most likely descendent may make recommendations to the landowner or the person responsible for the excavation work, for means of treating or disposing of, with appropriate dignity, the human remains, and any associated grave goods as provided in Section 5097.98 of the Public Resources Code, or
ii. Where the following conditions occur, the landowner or the landowner’s authorized representative shall rebury the Native American human remains and associated grave goods with appropriate dignity on the property in a location not subject to further subsurface disturbance.
a) The NAHC is unable to identify the most likely descendent or the most likely descendent failed to make a recommendation within 24 hours after being notified by the commission.
b) The descendant identified fails to make a recommendation; or Agenda Item #9.3:

City of Sonoma 13
c) The landowner or the landowner’s authorized representative rejects the recommendation of the descendant, and the mediation by the NAHC fails to provide measures acceptable to the landowner.
d. The City shall make provisions for historical or unique archaeological resources accidentally discovered during construction. These provisions shall include an immediate evaluation of the find by a qualified archaeologist. If the find is determined to be an historical or unique archaeological resource, contingency funding and a time allotment sufficient to allow for implementation of avoidance measures or appropriate mitigation should be available. Work could continue on other parts of the building site while historical or unique archaeological resource mitigation takes place.

XI. Consultant Assistance.

When the Director determines that consultant assistance is required for the preparation of an initial study, negative declaration, mitigated negative declaration, or EIR, the following procedures shall be followed:

1. Consultant List. The Director shall maintain a list of consultants having a sufficient variety of expertise to assist in the preparation of initial studies, negative declarations, or EIRs when required.

2. Consultant Selection. When outside assistance is required, a consultant shall be selected by the Director from the City's consultant list based on the nature of the project and the expertise of the consultant. If it is determined by the Director or requested by the applicant that proposals should be solicited from more than one consultant, the Director shall prepare and distribute a Request for Proposals (RFP) from the consultant list. Following receipt of proposals, the Director shall evaluate the submittals and select the best-qualified consultant to assist in the preparation of the applicable CEQA document. The applicant may review the submittals and provide a recommendation regarding the selection of a consultant, but the final decision regarding consultant selection shall be made by the Director.

3. Contract Approval and Administration. The proposed scope of work and budget shall be submitted to the applicant for approval. If the proposal is acceptable, the applicant shall submit a deposit to cover the consultant costs plus a reasonable City administrative fee, along with a cost recovery agreement. The consultant shall not be authorized to commence work until such deposit is received from the applicant. The amount of the deposit will normally be the total project budget; however, for large projects the deposit may be made in two or three payments subject to approval by the Director. Payment in full must be received prior to release of a draft EIR, negative declaration, or mitigated negative declaration.

After receipt of the applicant's deposit, the Director shall prepare and execute a contract for consultant services in a form meeting the approval of the City Attorney and shall administer the contract through project completion. At the conclusion of the project any unused deposit shall be returned to the applicant.

Agenda Item #9.3:

City of Sonoma 14
XII. Fees.

The preparation of an initial study, negative declaration, mitigated negative declaration, or EIR shall be subject to the following fees:

1. For initial studies, negative declarations, and mitigated negative declarations prepared by the Director without consultant assistance, a reasonable fee shall be collected as established by resolution of the City Council as part of the Community Development Department Fee Schedule.

2. For initial studies, negative declarations, mitigated negative declarations, and EIRs prepared with consultant assistance, the applicant shall pay:
a. the actual costs for professional consulting services to assist in environmental review; and
b. an administrative fee as established and required by the City Council. This fee is based on the full cost recovery hourly rate for the staff and legal counsel involved, outside agency fees, public notices, advertisements, and postage.

This financial responsibility of the applicant will be outlined in a cost recovery agreement.

3. Under City Resolution # 86-2018, the City Council authorizes the City Manager to execute all cost recovery contracts for contract staff and/or special studies since these contracts are reimbursable and not subject to any City funding.

4. No future applications shall be accepted from any applicant, and no permits or entitlements shall be approved or issued until all prior indebtedness to the City incurred under this section by such applicants has been paid in full.

5. The amount of the fee shall become an obligation of the applicant to the City whether or not the permit or entitlement is issued, or whether or not the applicant exercises the right to obtain the permit or entitlement. Such fees accrue and become payable when the City gives notice to the applicant of the amount of such fees. This liability shall be enforceable in any court of competent jurisdiction. In the event a suit is filed by the City, in addition to the amount of the fee, the applicant shall pay the City's reasonable attorney's fees.

XIII. Authority of the Community Development Director.

The Director shall have authority to interpret CEQA, the CEQA Guidelines, and these procedures as they may affect any particular activity or project, including private development projects and City public works projects. In addition, the Director, in consultation with the City Attorney, shall have authority for the following actions:

1. Making determinations as to whether activities are subject to CEQA.

2. Making determinations regarding the applicability of Categorical, Statutory, and "Common Sense" Exemptions.

Agenda Item #9.3:

City of Sonoma 15

3. Preparing initial studies for projects that are not exempt from CEQA.

4. Preparing, posting, and distributing notices of preparation, exemption, completion, and determination; negative declarations; mitigated negative declarations; and EIRs for Citysponsored projects and projects for which the City has approval authority as the lead agency.

5. Preparing responses to comments on negative declarations, mitigated negative declarations, and EIRs, and preparing draft findings, resolutions, and mitigation monitoring programs.

6. Determining requirements of CEQA or the adequacy of environmental documents.

7. Developing administrative procedures for implementation of CEQA and these procedures.

8. Reviewing and commenting on negative declarations, mitigated negative declarations, notices of preparation, draft EIRs, or other environmental documents prepared by other agencies.

XIV. Mitigation and Monitoring

1. General. All approved projects for which mitigation measures are required based on the findings of an adopted mitigated negative declaration or EIR shall be subject to a monitoring and reporting program as described below. The purpose of this program is to ensure that the required mitigation measures are successfully accomplished in a timely manner and to report the results of mitigation measures to the City Council, Planning Commission, and general public.

2. Conditions of Approval. As part of all projects subject to CEQA, conditions of approval shall include:
• All mitigation measures identified in the CEQA document identified as necessary to successfully mitigate a potentially significant impact; however, the Director, Planning Commission, or City Council may modify or delete recommended mitigation measures, provided the appropriate findings are made. Each mitigation measure shall specify the City department or external agency responsible for monitoring the particular measure.
• The requirements for this monitoring and reporting program. • Any other conditions, restrictions, modification, or other measures necessary deemed necessary in the project approval.

3. Enforcement. In the event that an applicant fails to complete a required mitigation measure, the applicant shall be subject to enforcement proceedings as further described in project’s contract documents and/or conditions of approval, CEQA, the CEQA Guidelines, these procedures, the Sonoma Municipal Code, and as provided in equity and law. Existing enforcement mechanisms shall be used at the discretion of City staff. No new enforcement measures are created by this section. Enforcement may include, as appropriate, "STOP WORK" orders, fines, revocation of use permit, nuisance abatement, or other legal proceedings, subject to the applicable provisions of the Sonoma Municipal Code.

Agenda Item #9.3:

City of Sonoma 16
XV. Agency Contacts
Below is a list of agency partners that may have additional permit requirements. This list has been provided for convenience and to support expeditious permitting; however, this list is not intended to be comprehensive.

Bay Area Air Quality Management District
https://www.baaqmd.gov/
(415) 749-4900
• Air Toxics
• Asbestos Demolition/Renovation
• Diesel engines
• Permit to Construct/Permit to Operate
• Title V Permits
• Underground Storage Tanks
Caltrans Encroachment Permits – District 4
https://dot.ca.gov/programs/traffic-operations/ep/district-contacts (510) 286-4401
[email protected]
• Work in the public right of way along Highway 12 (including Broadway, West Napa Street, and Sonoma Highway).
• May be required for tree removal, sidewalk repairs, various construction projects.

Sonoma County Department of Health Services -Environmental Health and Safety Health Department https://sonomacounty.ca.gov/health-and-human-services/health-services/divisions/publichealth/environmental-health-and-safety (707) 565-6565
• Cannabis Permits
• Food Safety
• Leaking Underground Storage Tanks
• Medical Waste
• Pools and Spas
• Well Water Quality
Sonoma County PRMD
https://permitsonoma.org/
(707) 565-1900
• Sanitation
• Stormwater
Sonoma Valley Fire District
https://www.sonomavalleyfire.org/fire-prevention
(707) 996-2102
• Fire Code Compliance
• Fire Inspections
• Tent and Special Event Permits
• Vegetation Management
Agenda Item #9.3:

CITY OF SONOMA
RESOLUTION # 1-91

A RESOLUTION OF THE CITY OF SONOMA

DELETING THE ENVIRONMENTAL REVIEW
PROCEDURES ADOPTED THROUGH RESOLUTION 74~82AND ESTABLISHING REVISED

ENVIRONMENTAL REVIEW PROCEDURES

IN THEIR PLACE
WHEREAS, Section 21082 of the California Public Resources Code requires that each city adopt procedures for the review of projects and activities subject to the California Environmental Quality Act; and,
WHEREAS, The City of Sonoma last adopted environmental review procedures in 1982; and,
WHEREAS, Significant changes in the California Environmental Quality Act and its implementing guidelines have occurred since 1982 as a result of court decisions and legislative actions; and,
WHEREAS, The City of Sonoma has developed revised environmental review procedures re?ecting the changes in the law; and,
WHEREAS, These revised procedures have been duly reviewed by both the Planning Commission and the City Council;
NOW, THEREFORE, be it resolved that the City Council of the City of Sonoma hereby repeals the environmental review procedures established under Resolution 74-82and adopts in their stead the environmental review procedures set forth in attachment "A." The foregoing resolution was adopted this 5th day of February, 1991 by the following roll call vote:

AYES: (5) Clm. Cannard, Carter, Cermak, Murphy, Mayor Brown NOES: (0) None
ABSENT: (0) None r\
- ABSTAINING: (0) None
£4/Vi)

CITY CLERK
ATTEST:

I hereby certify that the foregoing resolution was duly and regularly passed by the City Council of th ' f Sonoma at a regular meeting thereon held February 5, 1991.

CITY CLERK
Agenda Item #9.3:

City of Sonoma

ENVIRONMENTAL REVIEW PROCEDURES
February 5, 1991
Resolution 1-91
Agenda Item #9.3:

Articlel

PURPOSE
General: This document, adopted bythe Planning Commission and the CityCouncil, is intended to provide definitions, objectives, criteria, and specific procedures consistent with the California Environrnental Quality Act (CEQA) and the Guidelines for implementation of the California Environmental Quality Act (Guidelines), pursuant to section 20183 and 20187 of the Public Resources Code and section 15022 of the Guidelines. The procedures contained in this document establish and define the environmental review procedures of the City of Sonoma.

They are intended to fully conform with and implement CEQA and the CEQA Guidelines, both of which are incorporated herein by reference, and to establish a sensible, expeditious, and cost effective procedure to prevent or minimize environmental degradation resulting from public or private projects.

Articlell

DEFINITIONS
General: The definitions set forth in Article 20 of the Guidelines shall be used, except as supplemented by this document, as follows:

1. _(_3_ity: The City of Sonoma.

2. City Council: The City Council of the City of Sonoma.

3. Community Development Director: The Community Development Director of the City of Sonoma, or his/herdesignee.

4. Flaming Commission: The Planning Commission of the City of Sonoma.

5. Environmental ReviewCommittee: A committee, established by this policy, composed of the Community Development Director, the Public Works Director, and a representative of the Planning Commission (See Article IV of this title for an explanationof the committee’s responsibilities.) ArticleIII

GENERAL PROVISIONS
Statute and Guidelines Control: These procedures are developed pursuant to CEQA and the CEQA Guidelines, as amended from time to time, and are intended to define the manner in which state-mandated environmental review procedures are administered by the City of Sonoma. Should any conflict between these procedures and the CEQA statute or Guidelines be found, or should any such con?ict arise due to changes in the statute and the Guidelines, the conflictshall be resolved in favor of the statute and the Guidelines.

Agenda Item #9.3:

Amendment: These procedures shall be amended from time to time. Amendments may be initiated by the Community Development Director, the Environmental Review Committee, the Planning Commission, or the City Council. Any proposed '
amendment must be reviewedby the Planning Commission for recommendation to the City Council for final review and decision. These procedures shall be deemed amended on January 1st of each year to reflect any changes in state law or case law made in the previous year and for which no corresponding amendment has been made.

Administration: The Community Development Director shall be responsible for administering the procedures set forth herein. Any decision of the Community Development Director may be appealed to the Planning Commission. Decisions of the Planning Commission are subject to appeal to the City Council as set forth in section 19.62 of the Sonoma Municipal Code.

Time Limits: The time limits set forth in the statute and the Guidelines shall be adhered to in the administration of these procedures, with the following exceptions:
1) projects which are deemed emergencies as defined in section 15269 of the Guidelines; 2) projects for which the Community Development Director has requested and obtained permission from the Office of Planning and Research for ' shortened public review periods; and 3) projects mandated under state or federal statute which specificallyrequire expedited review as defined in section 15111 of the Guidelines.

Expedited Review/ Comment on Referrals:

The CommunityDevelopment Director shall be authorized by the City Council and the Planning Commission to request that the Office of Planning and Research grant shortened public review periods for particular negative declarations and environmental impact reports. The Community Development Director is also authorized by the City Council and the Planning Commission to respond to requests for comments on negative declarations and EIRS referred to the City by other agencies and jurisdictions. Ifpossible within the reviewperiod forany such document, the referralshall be brought to the Planning Commission forits comments; otherwise, the Community Development Director shall report the referralto the Planning Commission on the next available agenda.

Minimum Reguirements: In interpretation and application,the provisionsof these procedures shall be considered the minimum requirements necessary to accomplish the purposes set forth in Article 1.

Fees: Fees shall be charged to recover the costs of administering, preparing, and processing environmental documents. These fees shall be set by the City Council and shall be modified from time to time as necessary. The costs of any studies, plans, testing, or monitoring programs required under this title shall be born by the applicant.

Agenda Item #9.3:

Article IV

ENVIRONMENTAL

REVIEW COMMITTEE
Composition: The Environmental Review Committee shall be composed of the Community Development Director, the Public Works Director, and amernber the Chairman of the Planning Commission. Department heads may appoint representatives from their department to serve in their stead on an alternate basis. The ‘:".:'. :' ':"-2» -: 5' =GG=“‘= :
“ ':-.-.'!_ :"." '. The
Planning Commission Chairman may appoint a representativeto serve in his/herstead on an alternate basis. The committee shall be chaired by the Community Development Director. Staff work for the committee shall be provided by the Community Development Department or any other staff member, individual,agency, or firm chosen by the Community Development Director.

Rules of Order: The committee shall conduct all meetings in accordance with the applicable provisions of the Brown Act. Roberts Rules of Order may be used as necessary for the efficient progress of the meeting. The committee shall meet as needed to fulfill its duties, at any time and at any location deemed convenientby the Chairman, subject to applicable public notice requirements. Public notice for committee meetings shall be provide by the posting of an agenda at least 72 hours in advance.

Responsibilities: The committee shall be responsiblefor: 1) evaluating initial studies and making recommendationsto the Planning Commission as to whether a project shall be subject to a negative declaration or an Environmental Impact Report (EIR); 2) recommending on the scope of EIRs; 3) determining whether or not a project is categorically exempt in cases where a project is not included on the adopted list of categorical exemptions.

Appeal: Decisions of the Environmental Review Committee may be appealed to the Planning Commission, with the time limits and procedures specified for Planning Commission appeals set forth in section 19.62 of the Sonoma Municipal Code.

Article V

DETERMINATION

OF EXEMPTION
Administration: The Community Development Director shall be responsible for conducting a preliminary review of potential projects to determine whether the project is exempt from the provisions of CEQA, as discussed in section 15061 of the Guidelines. The Community Development Director shall be guided by the list of standard ministerially and categorically exempt projects and activities, below. In cases where there is substantial doubt as to whether a particular activity is exempt, 3 i
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Agenda Item #9.3:

the Community DevelopmentDirector shall refer the question to the Environmental Review Committee for a determination.

Notice of Exemption: When a project or activity is determined to be exempt from CEQA, the Community Development Director may elect to file a notice of exemptionwith the County Clerk of Sonoma County. This notice shall include all of the information required under section 15602 (a) of the Guidelines. (A sample form is provided in Appendix B.)
Exempt Projects: The following projects and activities have been determined to be exempt from CEQA under normal circumstances. This list may be modified and added to as necessary, by the Environmental Review Committee. The Community Development Director shall be guided by this list when conducting preliminary reviews. The Community Development Director may find that a particular activity, although on the list of exempt activities,may be subject to CEQA due to particular circumstances. In such cases, the question shall be referred to the Environmental Review Committee for a determination.

1. Not a Project
Actions which are not a "project,"as defined in section 15378 of the Guidelines, are exempt from environmental review. In general, non-project actions may be characterized as: a) ministerial or emergency actions (see subsections C.2 and C.4, below), b) actions which have no potential to result in any change to the physical environment (see subsection C.S, below), or c) actions otherwise specifically exempted by the state legislature from the provisions of CEQA.

2. Ministerial Actions
Ministerial actions are those which involve little or no discretion on the part of city officials. Rather, they involve pre-establishedprocedures to evaluate a limited range of proposed actions or applications.The outcome is determined solelyby comparing the specific circumstancesof the case to the fixed criteria set forth in the procedure.

The following ministerial actions have been identified as generally exempt from environmental review:
a) State- or federally-funded projects that require no local permits (such as the construction of new school facilities and state highways). b) Issuance of building permitsfor single-familyresidential construction, single-familyresidential additions, single-family residential accessory structures, and all other structures or remodeling (residential, commercial, or otherwise) which local provisions exempt from use permit review, variance approval, or architectural review when in conformance with applicable zoning and building code regulations. c) Issuance of business licenses.
4 Agenda Item #9.3:

d)
g)
h)
9)
Approval of a final subdivision map which has been found in substantial conformance with its correspondingparcel or tentative map.

Approval of individual utility service connections or disconnections. . Issuance of other minor publicworks permits (e.g.,street and sidewalk construction and maintenance, excavations, grading, earthwork, driveways, and curb cuts, maintenance of pipes, mains, and conduits, etc.) under the following circumstances:
- When needed to serve or implement the construction of single family residences, duplexes, triplexes, residential additions and accessory buildings and any other new building, addition, or remodeling found to be exempt under subsection C.2.b, above. - When limited to the repair, maintenance, or replacement of existing facilities.

Issuance of a Certi?cate of Compliance.

Maintenance of public property, including landscaping, buildings, vehicles and other miscellaneous equipment or structures.

Public use of community facilities.

General city administrative policy formulation procedures.

Issuance of permits by the Police of Fire Departments.

Submittal of issues or proposalsto local vote.

Granting of permits for short-term encroachments onto public streets or sidewalk areas.

Related actions and approvals required to implement an approved project (if a number of city or other official actions or approvals are required for a proposed project, each separate approval shall not constitute a separate project).

Extension of time limitations or changes in development schedules for approved projects, except in cases where the approval permit has expired.

Feasibility or planning studies for projects which have not yet been approved.

Agenda Item #9.3:

q)
V)
Time extensions approved by the state Office of Planning and Research for the preparation and adoption of required General Plan elements.

The provision of financial assistance to approved low and moderate income housing projects.

Establishment of small residential day care facilities (six charges or less) and small residential care facilities (six charges or less).

Establishment,modification, or approval of user rates, fees, and other charges for the purpose of meeting operational expenses, providing inspections,processing applications, conducting environmental review or mitigation monitoring,purchasingsupplies,equipment, or materials, meeting financial reserve requirements, or obtaining capital funds necessary to maintain service within existing service areas. (Rate increases to fund capital projects for the expansion of services or service areas E be subject to CEQA and environmental review.) Issuance of demolition permits for structures located outside of the Historic Combining District.

Providing funding for the renovation, rehabilitation, repair, or reconstruction of unreinforced masonry buildings.

The preceding list of ministerialexemptionsis not intended to exclude any additional exemptions specified in Articles 18 and 19 of the Guidelines.

3. Discretionary Actions
Discretionary actions are those which require independent judgement on the part of staff, the Planning Commission, or the City Council as to whether or not the proposed action or application is appropriate. Discretionary actions which have been determined to be normally exempt from the City’s environmental review process, include:
a) Projects subject to architectural review for which environmental review has already been completed or which are exempt from environmental review as specified in sections 15301-303of the Guidelines.

Second units.

Minor use permits and variances.

Home occupationpermits.

Park use permits, parade permits, and related approvals.

Agenda Item #9.3:

f) Sign review.
g) Lot line adjustments and lot mergers.
h) Demolition permits for structures within the Historic Combining ' District which the Architectural Review Commission has determined to possess no local, state, or national historic significance.

The preceding list of discretionary exemptions is not intended to exclude any additional exemptionsspecified in Articles 18 and 19 of the Guidelines.

4. Emergency Actions
Emergency actions which are exempt from environmental reviewinclude,but are not limited to, the following:
a) Emergency repairs of public service facilities necessary to maintain service.
b) Actions associated with a state of emergency proclamation issued by the Sonoma City Council or the State Governor,’including projects to maintain, repair, restore, clear, demolish, or replace property damaged or destroyed as a result of the declared emergency, such as ?ood, fire, or earthquake.
c) Specific actions needed to prevent or mitigate an emergency, such as ?ood, fire, earthquake, or toxic materials incident.

5. General Exemption
Projects not specificallysubject to environmental review, where the Environ- mental Review Committee can determine with certainty that there is no possibility that the project in question may have a significant adverse effect on the environment, shall be exempt from CEQA and the City’senvironmental review process.

6. Exceptions
Under the following circumstances,the exemptionslisted above in this section shall not apply and environmental review shall be required:
a) Where a project whose impact on the environment may ordinarily be considered insignificant is considered potentially significant due to its location in a sensitive area.
b) Where the cumulative impact of successive projects of the same type in the same place, over time, is considered to be potentially significant.

Agenda Item #9.3:

c) Where it can be seen with reasonable certainty by the Environmental Review Committee that the impact of the project is potentially significant due to other special circumstances.

ArticleVI

INITIAL STUDIES
Administration: In general and except as specificallycircumscribed,the preparation and processing of initial studies, including the development of any necessary background materials or special studies, the publication of required public notices, and the filing and circulation of documents for review and comment, shall be the responsibility of the Community Development Director.

1. Preparation
When the preliminary review of a project results in a determination that the project is subject to CEQA, the CommunityDevelopment Director shall prepare or cause to be prepared an initial study of the project for review by the Environmental Review Committee.

2. Form and Content
The format to be used shall be as approved by the Environmental Review Committee. Initial studies shall include, at minimum, all of the information required under section 15063 (d) of the Guidelines. (A sample initial study form is provided in Appendix B.)
Review: The Environmental Review Committee shall review initial studies and make recommendations to the Planning Commission as to whether an expanded initial study, a negative declaration or an EIR is appropriate, based on the general procedures and criteria set forth in sections 15063 (b), 15604, and 15065 of the Guidelines.

1. Recommendation for an Expanded Initial Study
For a project in which limited and avoidablepotential environmental impacts have been identified, the Environmental Review Committee, at its discretion, may recommend that an expanded initial study be prepared in order to fully define and mitigate potential environmental impacts. In general, an expanded initial study may be appropriate when a standard initial study does not fully address all potential impacts of a project, but when the time and informational requirements of an EIR may be excessive compared to the issues to be addressed. As part of a recommendation for an expanded initial study, the Committee may recommend the adoption of a negative declaration contingent upon the outcome of the additional analysis. If the project sponsor can modify the project to avoid the specific impacts, the project can qualify for a negative declaration, avoiding the time and cost 8 Agenda Item #9.3:

associated with an EIR. Alternatively, if the additional studies identify unexpected problems for which no mitigation is readily apparent, an EIR may be mandated.

2. Recommendation for Negative Declaration
When a negative declaration isrecommended,the Environmental Review Committee shall also recommend any specificmitigation measures necessary to avoid or reduce project impactsto a level of insignificance.

3. Recommendation for Environmental Impact Report (EIR) If an EIR is recommended, the Environmental Review Committee shall also make recommendationsregarding the scope of the EIR and the topics which should be addressed. The committee shall also conduct a technical and environmental evaluation of the proposed project. Based on this analysis,the committee shall notify the project applicant, in writing, as to the following: 1) recommended changes in the nature or design of the project which might be necessary to avoid or minimize potential environmental impacts or con?icts with City planning and development policies; and, 2) additional information necessary for the preparation of the EIR.

Time Limits: Once an application for planning approval that is subject to environmental review has been deemed complete, the Environmental Review Committee has 30 days in which to make a recommendation to the Planning Commission as to whether a negative declaration or an environmental impact report should be prepared.

Article VII

NEGATIVE

DECLARATIONS
Administration: In general and except as specifically noted, the preparation and processing of negative declarations,including the development of initial studies, the preparation of any needed background material or special analyses, the filing and circulation of documents, provision of public notice, and any other necessary administrative activity, shall be the responsibility of the Community Development Director.

1. Content
At a minimum, a negative declaration shall include all of the information specified in section 15071 of the Guidelines.

2. Public Notice
Public notice of the intent to adopt a negative declaration shall be given at least 21 days prior to the date of decision by at least one two of the following means:
9 Agenda Item #9.3:

a) One-time publication in the Sonoma Index-Tribune.
b) Notices posted on and off the site in the vicinity of the project. c) Direct mailing to the property owners of parcels located within 300 feet of the project site as shown in the latest equalized assessment roll.

The contents of the proposed negative declarationshall be summarized in the notice.

3. Public Review
A minimum period of 21 days shall be provided for public review and comment prior to the decision date, unless the negative declaration is submitted to the State Clearinghouse for distribution, in which case the minimum review period shall be increased to 30 days. If a written application,made by the CommunityDevelopment Director, is approved by the Office of Planning and Research, a shorter review period may be allowed, but not less than 21 days.

4. Responsible and Trustee Agencies
When the project for which a negative declaration is proposed may involve a responsible agency or a trustee agency, the negative declaration shall be submitted to the State Clearinghouse for distribution.

Consideration and Approval:

1. Public Hearing
The decision to adopt a negative declaration shall be made in the course of a public hearing on the matter, subject to the notice procedure specified in section A.2, above. The notice of public hearing may be combined with the notice of intent to adopt and with any other public notice required for consideration of project approval.

2. Prior Consideration
a) When the Planning Commission is acting in either an advisory or a decision-makingcapacity on a project for which a negative declaration is proposed, it shall consider and come to a decision on the proposed negative declaration before making any recommendation or decision with regard to project approval. This consideration shall include all comments received during the public review period.
b) When the City Council is acting on a project for which a negative declaration is proposed, it shall consider and come to a decision on the 10 Agenda Item #9.3:

proposed negative declaration before making any decision with regard to project approval. This consideration shall include all comments received during the public review period.
c) A project may be denied without prior consideration of an adopted negative declaration.

3. Findings
When the Planning Commission or the City Council adopts a negative declaration, the adopting body shall make the following findings:
at)
b)
That the negative declaration, along with all comments received during the public review period, was considered and acted upon prior to any action or recommendation regarding project approval;
That, based on the initial study and taking into account the comments received during the public review period, there is no substantial evidence that the project will have a significant effect on the environment, because:
1) The project is inherently benign; or,
2) Specificmodifications have been made in the project that would allow it to avoid all potentially substantial impact identified in the initial study; or,
3) Specific conditions of approval will be attached to the project that would reduce all potential impacts identified in the initial study to a level of insignificance.

That there is no reasonable likelihood that the project willresult in any of the impacts specified under the mandatory findings of significance, as defined in section B.4, below.

Findings shall be based on substantial evidence in the record, including but not limited to the initial study, any staff reports, any public comments, either written or oral, and the discussionof the Planning Commissioners or City Council members.

4. Mandatory Findings of Signi?cance
A Negative Declaration shall not be approved if it is determined, based on an evaluation of the initial study and any other evidence in the record, including public comment, that a project has a reasonable potential to result in any of the mandatory findings of significance(established and defined by section 21083 of the statute and section 15065 of the Guidelines), as follows:
11 Agenda Item #9.3:

a) That the project has the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species,cause a fish or wildlifepopulation to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of early California history. b) That the project has the potential to achieve short-term, to the disadvantageof long-term, environmentalgoals. (A short—termimpact on the environment is one which occurs in a relatively brief, definitive period of time while long-term impacts will endure well into the future.)
c) That the project may have impacts which are individually limited but cumulatively considerable. (A project may affect two or more separate resources where the impact on each resource is relatively small but where the effect of the total of those impacts on the environment is significant.)
(1) That the project has the potential to result in environmental effects which will cause substantial adverse effects on human beings, either directly or indirectly.

If any of the above ?ndings are made for a proposed project, the preparation of an EIR shall be required.

4. Conditions of Approval/Mitigation Monitoring
When a negative declaration is adopted for a project which has potential environmental impactsmitigated to a level of insignificance by proposed conditions of approval, all of the proposed conditions identified as necessary to mitigate potential impacts shall be made conditions of project approval. In addition to any required mitigation measures, a mitigation monitoring program, as specified in Article IX of this document, shall be made a condition of project approval. When a negative declaration is approved for a project that does not require mitigation, the monitoring requirement shall not apply.

5. Notice of Determination
Once a negative declaration has been adopted, the Community Development Director shall file a notice of determination with the County Clerk. If the notice of determination is for a project which requires a discretionary approval by a state agency, the notice shall also be filed with the state Office of Planning and Research.

Every notice of determination shall include, at minimum,the information required under section 15705 (b) of the Guidelines. The City shall use the latest notice of determination form approved by the Office of Planning and Research. (A sample notice is provided in Appendix B.)
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Agenda Item #9.3:

6. Time Limits
From the date an application for planning approval has been deemed complete, the Community Development Department has 105daysto process a negative declaration.

This period may be extended in order to accommodate the processing of related planning approvals (for example, the approval of a tentative map or use permit), as long as work on the negative declaration itself is substantially complete within the 105 day time period. The time period may be suspended by the Planning Commission, if it finds that the applicant is unreasonably delaying the process (for example, by failing to provide necessary information).

Article VIII

ENVIRONMENTAL

IMPACT REPORTS(EIRS)
General: The provisions of this article are intended to govern the preparation, certification, and disposition of typical environmental impact reports (EIRs). As allowed for in the Guidelines, somewhat different procedures may be followedwith other types of EIRS, such as program EIRS, general plan EIRS, supplemental EIRs, and addenda to an EIR. For these types of EIRs, the City of Sonoma shall adhere to the applicable provisionsof the Guidelines.

Administration: In general and except as specifically noted, the preparation and processing of environmental impact reports, including the development of initial studies, the preparation of any needed background material or special analyses, the hiring of consultants, the filing and circulation of documents, provision of public notice, and any other necessary administrativeactivity,shall be the responsibility of the Community Development Director.

1. Concurrent Review
To the extent feasible and as allowed for by law, the EIR process shall be combined with any other review and approval process necessary for the project.

2. Decision to Prepare
Unless appealed to the CityCouncil, the decision to prepare an EIR on a particular project rests with the Planning Commission. The Commission shall base its decision on the recommendation of the Environmental Review Committee, a review of the initial study for the project, considerationof comments received on the project, and any other relevant evidence available for its review. The decision to prepare an EIR shall be made only after an open public hearing with public notice as described in Article VII, section A.2 of this document.
13 Agenda Item #9.3:

3. Content
At a minimum, each EIR shall include the information and address the topics required in Article 9 of the Guidelines.

5. Determination of EIR Scope
In addition to the minimum content requirements specified in subsection B.3, above, the scope of any EIR shall be defined by the Planning Commission in terms of potentially significant impactswhich need to be addressed. This determination shall be based on the recommendations of the staff and the Environmental Review Committee, the initial study, comments from individual members of the Planning Commission, comments from responsible and trustee agencies, and any other comments received on the project. The criteria set forth in section 15064 of the Guidelines shall be used in determining whether or not a project impact is potentially significant. In the course of preparing the draft EIR, the Community Development Director may widen the scope in light of new information.

4. Public Forum on EIR Scope
After the Planning Commission has determined that an EIR is necessary and has broadly established its scope, a public forum, conducted by the Community Development Director, shall be held to obtain additional input on the scope of the EIR as defined by the Planning Commission. At the forum, the proposed project and its potential impacts as identified in the initial study shall be presented to the public in order to obtain comments on potential project impacts which should be addressed in the EIR. Notice for the forum shall be provided as set forth in section B.9, below. All comments received hi the course of the forum shall be recorded.

The comments, in minute form, shall be provided to the EIR preparer. If new issues or new information brought out in the scopingsessioncould require a change in the general scope of the EIR as defined by the Planning Commission, the Community Development Director shall refer the question to the Planning Commission for a determination.

6. Consultants
The Community Development Director is responsible for administering the preparation of an EIR. Consultant selection shall be the responsibility of the Environmental Review Committee. The EIR may be prepared by City staff or by an independent environmental consultant. If a consultant is to be used, the Environmental Review Committee may take either of the following actions:
a) A Request For Proposals (RFP) may be prepared and mailed to selected consultants. The Environmental Review Committee may, at its discretion, include consultants recommended by the project 14 Agenda Item #9.3:

applicant. The Environmental Review Committee shall review all of the proposals received on the project, and shall select the consultant based on the quality of the proposal, responsiveness to the RFP, and relevant experience.
b) The EnvironmentalReview Committee may chose a consultant without using the RFP process if, in its judgement, the circumstances of the project are such that its impacts could best be evaluated by a particular, consultant, due to special expertise or familiarity with the issues raised by the project.

In either case, the cost of preparing the EIR shall be borne by the applicant. The applicant must deposit with the City the entire cost of the EIR (as estimated in the budget of an approved proposal), plus a processing fee to cover the City’s administrative costs, before work on the EIR may commence.

7. Notice of Preparation
Once the Planning Commission has determined the necessity of an EIR, the Community Development Director shall prepare and circulate a notice of preparation. This notice shall be in the format last approved by the Office of Planning and Research and shall include all of the information required under section 15082 (a) of the Guidelines (a sample notice is provided in Appendix B).

This notice shall be sent, by certified mail, to each of the following:
a) The State Clearinghouse;
b) Any potential responsible or trustee agencies;
c) A standard list of local, state, and federal agencies, approved by the Environmental Review Committee,potentially interested in the project (a copy of the general mailing list is provided in AppendixA); (1) Any person requesting notice.

8. Preparation of Dratt EIR
In the course of the preparation of the draft EIR, the Community Development Director, at his/herdiscretion, may:
a) Consult with the applicant, with the preparer of the EIR, with responsible and trustee agencies, or with any other interested agency or individual to discuss the project, obtain information regarding its impacts, and devise mitigation measures.

A
b) Require the applicant to provide information regarding the proposed project and its potential impacts;
15 Agenda Item #9.3:

c) Expand the scope of the EIR based on new information obtained in the course of the preparation of the draft EIR;
(1) Receive comments on the project from any person, including the applicant, to assist in the preparation of the EIR.
e) Consult with the applicant regarding the desirability of a tiered environmentalanalysiswhereby an environmentalconstraints analysis is prepared by a qualified consultant to define and document potentially significant impactsidentified in the initial study or through the scoping process. The applicant is then permitted to prepare a revised project description and design based on the findings of the constraints analysis. An EIR is then prepared on the revised project, incorporating relevant portions of the enviromnental constraints analysis either verbatim, by reference, or with appropriate revisions.

9. Notice of Completion
As soon as the draft EIR is prepared, the Community Development Director shall file a notice of completion with the Office of Planning and Research. The notice shall include, at minimum,the information required under section 15085 (b) of the Guidelines. The form used shall be the latest approved by the Office of Planning and Research (a sample is provided in Appendix B). In addition to Office of Planning and Research, the notice, along with copies of the draft EIR, shall be sent to the following:
a) The State Clearinghouse;
b) Any potential responsible or trustee agencies;
c) A standard list of local, state, and federal agencies, approved by the Environmental Review Committee,potentially interested in the project; d) Any person requesting notice.

10. Changes in Project Circumstance
If important new information regarding the project’s circumstances becomes available during the preparation of an EIR which could substantially change its environmental impacts, the CommunityDevelopment Director may direct that the scope of the EIR be revised accordingly. A change in scope may require that additional time and money be budgeted toward the preparation of the EIR. If such a change in information occurs after the issuance of the notice of completion of the draft EIR, one of the followingmeasures shall be initiated by the Director pursuant to sections 15162,15163,and 15164 of the CEQA Guidelines:
16 Agenda Item #9.3:

11. b)
An Addendum to the EIR may be prepared if the new information is of a minor or technical nature and does not substantially affect the analysis or the conclusions of the EIR. The addendum may be included with or attached to the final EIR. It need not be circulated for public review and comment but must be reviewed by the decisionmaking body prior to project approval.

A Supplemental EIR may be prepared in situations whereithenew information could result in substantial changes in the analysis or conclusions of limited areas of the original EIR. The supplemental EIR may contain only the additional information necessary to ensure the adequacy of the initial EIR. A supplemental EIR shall be subject to same public notice and review requirements as a regular EIR.

A Subsequent EIR may be prepared when the new information calls into question major portions of the analysis and conclusions of the original EIR. Any portions of the original EIR still relevant in light of the new information may be referenced in the subsequent EIR. A subsequent EIR shall be subject to the same public notice and review procedures as a regular EIR.

Public Notice and Review
3)
19)
Public Notice
As soon as the draft EIR has been completed, the Community Develop ment Director shall also provide public notice of the completion of the draft EIR by at least one two of the following means:
1) One-time publication in the Sonoma Index-Tribune.
2) Notices posted on and off the site in the vicinity of the project. .3) Direct mailing to property owners contiguous to the project site as shown in the latest equalized assessment roll.

Documents Available for Public Review
Copies of the draft EIR shall be furnished to the Sonoma Valley Library and the Sonoma Valley Chamber of Commerce for public review. Extra copies shall be made available at City Hall for review and distribution to interested persons.

Public Hearing
The Planning Commission shall hold at least one public hearing on the draft EIR for the purpose of obtaining comments from the public. 17 Agenda Item #9.3:

(1)
Notice of the hearing shall be provided as in subsection (a), preceding and may be combined with that notice.

Review Period
The period for receivingcomments on a draft EIR shall be no less than 30 days, following the filing of the Notice of Completion. In cases where a state agency is a responsible or trustee agency, the period of review shall be no lessthan 45 days,unless a shorter review period (but not less than 30 days) is approved by the State Clearinghouse. The review period may not exceed 90 days,unless the Planning Commission votes to extend it due to exceptional circumstances.

12. Response to Comments
Upon closure of the review period, the Community Development Director shall collate all comments received on the draft EIR and shall ensure that all are adequately responded to, in writing, in the final EIR.
3)
b)
Required Response
Responses shall indicate the disposition of any significant environmental issuesraised in the comments. Should the conclusion of the response differ with the suggestions or objections raised in the comments, a detailed analysisshall be provided, explainingwhy specific comments and suggestionswere not accepted. A good faith, reasoned response to all comments is required.

Form of Response
When the response to comments results in changes in or additions to the information contained in the draft EIR, the change shall be specifically identified in the response. Changes in the text may take the form of:
1) Revisions in the text of the draft EIR, accomplished by amending and reprinting the affected portions;
2) Revisions to the text of the draft EIR, accomplished by setting forth the change in an addendum to the DEIR and incorporating it by reference.
. 3) Marginal notes explaining the revision to the text. 18 Agenda Item #9.3:

13. Preparation of Final EIR
Following the closure of the review period and the preparation of responses to comments, the Community Development Director shall prepare or cause to be prepared a final EIR. At a minimum, the final EIR shall include the content specified in section 15132 of the Guidelines.

Certi?cation and Decision:

1. Public Hearing
The certification of a final EIR shall only be rriadefollowinga public hearing on the matter, at which time comments on the adequacy of responses contained in the final EIR may be heard and considered. Notice for this hearing shall be provided in accordance with section B.9.a, preceding.

2. Amendment
Before certifying an EIR, the Planning Commission or the City Council may, by a majority vote, amend the EIR. Any amendment must re?ect a reasoned analysis supported by substantial evidence in the administrative record.

2. Prior Consideration
a) When the Planning Commission is acting in either an advisory or a decision-makingcapacity on a project for which an EIR was required, it shall consider and certify the final EIR prior to making any recommendation or decisionwith regard to project approval. However, the Commission may, at its discretion, deny a project or recommend denial without a certified EIR.
b) When the City Council is acting in a decision-making capacity on a project for which an EIR was required, it shall consider and certify the ‘ final EIR before making any decision with regard to project approval.

The City Council may, at its discretion, deny a project without a certified EIR.

3. Certi?cation
When the Planning Commission or the City Council certifies a ?nal l3IR,the adopting body shall make the followingfindings:
a) That the final EIR has been completed in compliance with CEQA; and, 19 Agenda Item #9.3:

b) That the ?nal EIR, along with all comments received during the public review process, was consideredand acted upon prior to any action or recommendation regarding project approval.

4. Findings for Approval
The Planning Commission or the City Council, when approving a project for which an EIR was completed which identifies one or more significant impacts caused by the project, shall adopt written findings,supported by substantial evidence in the record, for each of the identified impacts. Findings must include the following components:
1) The finding itself;
2) A brief reference to the evidence in the record which supports the finding; and,
3) A summary analysis linking the evidence to the finding.

Three types of findings are possible, as specified in section 15091 (a) of the Guidelines. When a potential impact is found in the analysis of the final EIR not to be significant, this conclusion shall be noted in the findings. No findings are required for the denial of a project.

5. Approval
Neither the Planning Commission (as an advisory or an approving agency) nor the CityCouncil shall approve or carry out a project for which an EIR has been required unless either:
a) The project, as documented in the findingsfor approval, as approved will not have a significant effect on the environment; or, b) First, that to the extent feasible, each significant impact has been eliminated or reduced to a level of insignificance through the requirement of specified mitigation measures, as documented in the findings required under section 4, above; and second, that any ' remaining significantimpactshave been found to be unavoidableunder section 15091 of the Guidelines and have been deemed acceptable due to overriding concerns as described below.

With regard to a project which includes housing units, the proposed number of units shall not be reduced as a mitigation measure unless:
a) The proposed density results in a specific significant impact; and, 20 i
5 ',l
3 i
Agenda Item #9.3:

b) There is no other feasible mitigation available that will reduce the impact to a level of insignificance.

6. Findings of Overriding Consideration
If the project is approved by the Planning Commission or the City Council with the finding that the mitigation of one or more significant impacts is infeasible due to specific economic, social, or other considerations, then findings of overriding considerations,pursuant to section 15093of the Guidelines, shall be adopted. Such findings shall be based on substantial evidence in the record.

7. Conditions of Approval/Mitigation Monitoring
When an EIR is certified for a project which has potential environmental impacts mitigated to a level of insignificanceby proposed conditions of approval, all of the proposed conditions identified as necessary to mitigate potential impacts shall be made conditions of project approval, unless findings of overriding consideration are made, pursuant to section 6, above. In addition to any required mitigation measures, a mitigation monitoring plan, as specified in Article IX of this document, shall be made a condition of project approval. When an EIR is certified for a project for which mitigation is not required, the monitoring requirement shall not apply.

8. Notice of Determination
As soon as project for which an EIR has been required is approved, the Community Development Director shall file a notice of determination with the County Clerk of Sonoma County. If the project requires a discretionary approval from a state agency, the notice shall also be filed with the Office of Planning and Research. The notice shall include all of the information required under section 15904 of the Guidelines.

The Community Development Director shall use the notice of determination form most recently approved by the Office of Planning and Research (a sample notice is provided in Appendix B).

9. Disposition
Following the certification of a final EIR, the Community Development Director shall take the following measures:
a) For city-sponsored projects, include the final EIR in the project reporting and budgeting process;
b) Retain at least one copy of the final EIR as part of the City records for at least seven years;
In addition, the Community Development Director may distribute copies to any responsible or trustee agency having an asserted interest in the project as deemed appropriate.
21 ;
Agenda Item #9.3:

10. Time Limits
From the date an application for planning approval has been deemed complete, the Community Development Department has one year to prepare and certify an environmentalimpact report. The Planning Commission,with the consent of the applicant, may extend this period by no more than 90 days. The time period may be suspended by the Planning Commission, if it finds that the applicant is unreasonably delaying the process (for example, by failing to provide necessary information).

Article IX

MITIGATION

MONITORING
General: All approved projects for which mitigation measures are required based on the findings of an adopted negative declaration or environmental impact report shall be subject to a monitoring and reporting program as described below. The purpose of this program is to ensure that required mitigation measures are successfully accomplished in a timely manner and to report on the results of mitigation measures to the City Council, the Planning Commission, and the general public. This program was developed to implement section 21081.6 of the Public Resources Code.

Administration: The Community Development Director shall be responsible for making any needed interpretations of this program as it appliesto individual projects.

Any decision by the Community Development Director may be appealed by the applicant or any other interested party to the Planning Commission.

1. Project Approval
For this program, "project approval" is defined as the final discretionary approval (excludingapprovals needed because of an appeal) necessary to commence a project. a) In the case of a subdivision,project approval is defined as the approval of a tentative map.
b) In the case of a conditional use, project approval is defined as approval of the conditional use permit.
c) In the case of a variance, project approval is defined as the approval of the variance.
d) In the case of a rezoning, project approval is defined as approval of the Zoning Ordinance amendment.
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e) In the case of a General Plan amendment, project approval is defined as the approval of the General Plan amendment.
f) In cases where no other approval is necessary, project approval is defined as approval of the negative declaration.

2. Conditions of Approval
As part of the approval of all projects subject to this program, conditions of approval shall be attached containing:
a) All mitigation measures identified in the environmental document identified as necessary to successfullymitigate a potentially significant impact;however, the Planning Commission or CityCouncil may modify or delete recommended mitigation measures, so long as the appropriate findings are made.
b) The requirement for this monitoring and reporting program. c) Anyother conditions,restrictions,modifications, or mitigation measures deemed necessary in the project approval.

Each mitigation measure shall specifyat least one of the following: the staff person, the City Department, or the agency responsible for monitoring the particular measure.

3. Additional Requirements for Projects Involving a Responsible or Trustee Agency
Where a project is subject to the approval of a Responsible or Trustee Agency (as defined in CEQA) and that agency has recommended mitigation measures which have been attached to the project as conditions of approval, the Responsible or Trustee Agency shall be requested to provide a monitoring program addressing those measures. This program shall be required prior to project approval. When such a program is adopted as part of a project, the CommunityDevelopment Director shall be responsible for coordinating with the responsibleagency on reporting the results of the program as part of the City’sreporting process.

4. Monitoring Mitigation Measures
a) Master List: For each project subject to this program, the Community Development Director shall maintain a master list of all required rnitigations. As measures are completed, their completion shall be noted on the list. This list shall become part of the planning file on the project.
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b) Monitoring: For each mitigation measure, the responsible staff person, department, or agency identified in the measure shall monitor the applicant’s progress in successfully accomplishing the measure in a timely manner. The responsible staff person, department, or agency must certify the successful completion of any mitigation measure tied to an administrative approval (e.g.BuildingPermit, Occupancy Permit, etc.) prior to the granting of that approval.

5. Reporting
At least every six months, in January and in July, the Community Development Director shall prepare a summary written report to address all projects currently undergoing monitoring. This report shall be distributedto the Planning Commission and City Council and shall be made available to the general public. Once all mitigation measures for a project have been certified as complete, the project shall be listed as complete in the next regular report and no further reporting on that project shall be necessary.

Enforcement: In the event that an applicant fails to complete a required mitigation measure, the applicant shall be subject to enforcement proceedings. Existing enforcement mechanisms shall be used at the discretion of staff, the Planning Commission,or the City Council. No new enforcement measures are created by this program. Enforcement may include, as appropriate, "STOP WORK" orders, fines, revocation of use permit, nuisance abatement, or other legal proceedings, subject to the applicable provisions of the Sonoma MunicipalCode.
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