Sonoma City Council
August 21, 2024

City Council:

John Gurney, Mayor
Patricia Farrar-Rivas, Vice
Mayor
Jack Ding
Sandra Lowe
Ron Wellander

REGULAR MEETING AGENDA

OF THE SONOMA CITY COUNCIL
City Council Chambers, 177 First Street West
Wednesday, August 21, 2024
https://us06web.zoom.us/j/84876986131
6:00 PM Regular Meeting

ACCESSING PUBLIC MEETINGS
As a public service to the community, City Council meetings are held in-person, and viewable through a live webcast on the City’s CivicWeb Portal at https://sonomacity.civicweb.net/Portal/Video.aspx, City of Sonoma YouTube channel at https://www.youtube.com/channel/UChZjUrg2rNLYxTgQHhFy-Tg, and televised on Comcast Cable Channel 27. Members of the public can also view the meeting via ZOOM, at https://us06web.zoom.us/j/84876986131.

If a technical issue arises with Zoom video or the listening phone dial-in option, the City Council meeting will continue unless a Council Member is participating remotely pursuant to the provisions of Assembly Bill 2449.

To prevent public meeting interruptions by individuals making comments not pertaining to items under the City of Sonoma’s jurisdiction, public participation via Zoom will be suspended for all City Council meetings, as well as meetings of other City commissions and committees. The City will reassess the need for reinstating public participation via Zoom in the next 90 days.

Members of the public who wish to address the Council by providing public comments during the meeting may do so in-person in the Council Chambers at 177 First Street West, where the meeting is being publicly held. As an alternative, members of the public may also provide written public comment submitted via the City’s online Public Comment form at https://sonomacity.civicweb.net/Portal/CitizenEngagement.aspx or by email to:
[email protected]
In the event a Council Member participates remotely for just cause or an emergency circumstance under Assembly Bill 2449, the City will allow for public comment through the Zoom link.

In accordance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk (707) 933-2216. Notification 48 hours before the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

Be Courteous - TURN OFF your cell phones and watches while the meeting is in session.

The City Council may discuss and/or take action on any or all of the items listed on the agenda irrespective of how the items are described.

No new items will begin after 9:00pm unless a majority of the members present vote to allow the items to be heard.

Page

6:00 P.M. – REGULAR MEETING

CONVENE, CALL TO ORDER & PLEDGE OF ALLEGIANCE
ROLL CALL ( Ding, Lowe, Farrar-Rivas, Wellander, Gurney)

REPORT ON CLOSED SESSION

APPROVAL OF AGENDA

1. PRESENTATIONS

1.1: Proclamation proclaiming August 26, 2024 as "Women's Equality Day" in the City of Sonoma

1.2: Presentation by Christine M. Sosko, Director of Sonoma County Environmental Health Regarding Microenterprise Home Kitchens (MEHKO)
Microenterprise Home Kitchen Operations Presentation - FIRST

DISTRIBUTED AT MEETING WHEN ITEM WAS ANNOUNCED
6 - 18

2. COMMENTS FROM THE PUBLIC
At this this time members of the public may address the Council on matters not listed on this agenda, but which are within the subject matter jurisdiction of the Council. This public comment period will be limited to ten speakers. Each speaker will be allowed up to two minutes.

Speakers who do not have an opportunity to speak during this time will be allowed to make public comment under Agenda Item 10 - SECOND PUBLIC COMMENT. Please form a line to speak.

Under State Law, unless otherwise permitted under the Ralph M. Brown Act, the merits of the matters presented under this item cannot be discussed or acted upon by the City Council at this time. For items appearing on the agenda, the public will be invited to make comments at the time the item comes up for Council consideration. Please begin by stating your name.

3. MEETING DEDICATIONS

4. COUNCILMEMBERS’ REPORTS AND COMMENTS
Committee Reports - Council Members are appointed to various boards and committees - local, county-wide and regional. Any updates from a council member will be shared at this time.

A list of all appointments is available on our City Website for easy reference.

Council Members may also make appointments to city commissions at this time.

5. CITY MANAGER COMMENTS AND ANNOUNCEMENTS

6. CITY ATTORNEY COMMENTS

7. CONSENT CALENDAR – CITY COUNCIL
All items listed on the Consent Calendar are considered to be routine and will be acted upon by a single motion. There will be no separate discussion of these items unless members of the Council or staff request specific items to be removed for separate action.

7.1: Waive further reading and Authorize Introduction and/or Adoption of Ordinances by Title Only. (Standard procedural action - no backup information provided)

7.2: Accept Minutes from the Regular Meetings of July 17, 2024, August 7, 2024, and the Special Joint Meeting of June 25, 2024 (Rebekah Barr, MMC, City Clerk)
RECOMMENDATION: Accept the minutes.

06.25.2024 Special Meeting Minutes

07.17.2024 Regular Meeting Minutes
19 - 25

08.07.2024 Regular Meeting Minutes

7.3: Accept the Expenditure Report for the Month of June 2024 (Prapti Aryal, Finance Director)
RECOMMENDATION: Accept the report.

Agenda Report - Expenditures - June 2024 - Pdf
26 - 27

7.4: Accept the Expenditure Report for the Month of July 2024 (Prapti Aryal, Finance Director)
RECOMMENDATION: Accept the report.

Agenda Report - Expenditures - July 2024 - Pdf
28 - 29

7.5: Adopt a Resolution Approving a Cooperative Funding Agreement with Sonoma County Transportation Authority (SCTA) for Go Sonoma Measure M Funds for CIP Project No. T-6, Citywide Safety Bicycle and Pedestrian Improvements (Mike Berger, Public Works Director)
RECOMMENDATION: Adopt the resolution.

Agenda Report - SCTA Cooperative Funding Agreement - Pdf 30 - 39

7.6: Adopt a Resolution Authorizing the City Manager to Execute a Professional Services Agreement with Matrix Consulting Group, Ltd. in an Amount Not to Exceed $50,000 to Develop a Comprehensive Fee Study, Cost Allocation Analysis, and Nexus Study for Impact Fees (Prapti Aryal, Finance Director & Jennifer Gates, AICP, Community Development Director)
RECOMMENDATION: Adopt the resolution.

Agenda Report - Fee Study Contract - Pdf
40 - 83

7.7: Adopt a Resolution of Intention to Renew the Sonoma Tourism Improvement District (STID) (David Guhin, City Manager & Rebekah Barr, MMC, City Clerk) RECOMMENDATION: Adopt the resolution.

Agenda Report - TID ROI - Pdf
84 - 125

7.8: Adopt a Resolution Authorizing the City Manager to Enter into a Cooperative Purchasing Agreement (Interlocal Contract) with the Houston-Galveston Area Council of Governments (H-GAC) (Rebekah Barr, MMC, City Clerk) RECOMMENDATION: Adopt the resolution.

Agenda Report - HGACBuy Agreement - Pdf
126 - 131

7.9: Adopt a Resolution Amending the City of Sonoma Conflict of Interest Code (Rebekah Barr, MMC, City Clerk)
RECOMMENDATION: Adopt the resolution.

Agenda Report - Conflict of Interest Code - Pdf
132 - 137

7.10: Adopt a Resolution Authorizing the City Manager to Execute a Task Order with Land Culture LLP, Previously Doing Business as Ann Baker Landscape Architect, for Olsen Park Renovations, Capital Improvement Project P-8 (Mike Berger, Public Works Director)
RECOMMENDATION: Adopt the resolution.

Agenda Report - Task Order - LandCulture LLP - Pdf
138 - 147

8. PUBLIC HEARING

9. REGULAR CALENDAR – CITY COUNCIL
(Matters requiring discussion and/or action by the City Council)

9.1: Adopt a Resolution Approving the Updated 2024 City of Sonoma Emergency Operations Plan (EOP) (Sarah Tracy, Senior Management Analyst/PIO) 148 - 188

RECOMMENDATION: Adopt the resolution approving the updated Emergency Operations Plan.

Agenda Report - Emergency Operations Plan (EOP) Update - Pdf Sonoma City Council EOP Update Presentation - FIRST DISTRIBUTED AT

MEETING WHEN ITEM WAS ANNOUNCED

9.2: Discussion, Consideration, and Possible Adoption of a City Council Resolution to Adopt a Policy to Allow for Alternative Sidewalk Materials and Designate the Public Works Director the Authority to Issue Permits for Sidewalks and Driveways (Jennifer Gates, AICP, Community Development Director & Mike Berger, Public Works Director)
RECOMMENDATION: Adopt the resolution to establish a citywide policy for alternative sidewalk materials where special site circumstances exist and designating the public works director the authority to issue sidewalk and driveway permits.

Agenda Report - Sidewalk Material Policy - Pdf
189 - 192

9.3: Appointments to the Sonoma Valley Groundwater Sustainability Advisory Committee and Sonoma Community Housing Corporation (Rebekah Barr, MMC, City Clerk)
RECOMMENDATION: Make appointments to the Sonoma Valley Groundwater Sustainability Advisory Committee and Sonoma Community Housing Corporation by majority vote of the City Council.

Agenda Report - Commission Appointments - Pdf
Commissions & Committee Group B Presentation - FIRST DISTRIBUTED AT

MEETING WHEN ITEM WAS ANNOUNCED
193 - 212

10. SECOND PUBLIC COMMENT
At this this time members of the public who did not have the opportunity to speak during the early comment period may address the Council on matters not listed on this agenda, but which are within the subject matter jurisdiction of the Council. Each speaker will be allowed up to two minutes. Please form a line to speak.

Under State Law, unless otherwise permitted under the Ralph M. Brown Act, the merits of the matters presented under this item cannot be discussed or acted upon by the City Council at this time. For items appearing on the agenda, the public will be invited to make comments at the time the item comes up for Council consideration. Please begin by stating your name.

11. ADJOURNMENT
I do hereby certify that a copy of the foregoing agenda was posted as legally required. Monique Saviez Burns, Deputy City Clerk
*********************************************************************************************************************************** Copies of all staff reports and documents subject to disclosure that relate to any item of business referred to on the agenda are usually available for public inspection the Wednesday before each regularly scheduled meeting at City Hall, located at No. 1 The Plaza, Sonoma CA. Any documents subject to disclosure that are provided to all, or a majority of all, of the members of the City Council regarding any item on this agenda after the agenda has been distributed will be made available for inspection at the City Clerk’s office, No. 1 The Plaza, Sonoma CA during regular business hours. If you challenge the action of the City Council in court, you may be limited to raising only those issues you or someone else raised at the public hearing described on the agenda or in written correspondence delivered to the City Clerk at or prior to the public hearing.

In accordance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk (707) 933-2216. Notification 48 hours before the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

CITY OF SONOMA COMMISSIONS & COMMITTEE ROSTER - JUNE 2024 Appointments to Commission/Committees: The Council may establish and make appointments to a Council committee (made up of two Council Members) with respect to any item appearing on this agenda.

Closed Session: If action is taken during a Closed Session meeting that is required to be reported out at this meeting, the Council will return to Open Session and report out immediately. However, if the Council is unable to do so due to time constraints, it will report out at the immediately following Regular Council Meeting under "REPORT ON CLOSED SESSION".

Motion for Consideration: A Council Member voting with the majority on any item appearing on this agenda may move for reconsideration of that vote provided the motion is in conformance with the rules adopted by the Council governing such motions.

Update for October 8, 2024 Board Item
Microenterprise Home Kitchen Operations
MEHKO
Agenda Item #1.2:

Microenterprise Home Kitchen Operation
AB 626, AB 377, AB 1325
• A Microenterprise Home Kitchen Operation (MEHKO) is a small-scale restaurant (dine-in or take-out) operated by a resident in a private home.
• Assembly Bills 626 (2018), 377 (2019) and 1325 (2023) establish the regulations for MEHKOs through California Health and Safety Code (CalCode).
• The County may “opt in” by ordinance or resolution, which allows permitting of MEHKOs within both the unincorporated County and in the cities.
2 Agenda Item #1.2:

• MEHKOs provide home-based business
opportunities for those with limited access to
capital and lower the barriers for entry to
disadvantaged persons wishing to start a food
related business.
• MEHKOs increase community access to healthy
food, offering cultural and regional foods that
may not be available locally.
• The Legislature also found that many of these
small-scale businesses already exist, and less
restrictive regulation will provide better food
safety oversight.
3 Agenda Item #1.2:

MEHKO Requirements
• Operator must be a resident of the private home operating as a MEHKO and hold a food safety manager certification.
• The MEHKO must be the primary residence. Second homes, vacation homes and motor homes do not qualify.
• If the residence is leased or rented, the property owner will be required to approve the use. • No more than one employee may work in the facility in addition to family and household members. • Any individual working in the MEHKO must obtain a food handler card. 4 Agenda Item #1.2:

MEHKO Requirements (cont.)
• Food must be prepared, cooked and served the same day. • Food preparation must occur in the kitchen of the residence with no auxiliary kitchens added. • No outdoor signage is allowed.
• Sales limited to no more than 30 meals per day or 90 meals per week with gross annual sales limited to $100,000 annually.
• Meals can be consumed on site, picked up or delivered through an employee or intermediary registered with CDPH. Third party delivery services, catering, resale and sales from food trucks or carts are prohibited.
5 Agenda Item #1.2:

Health and Safety Code Limitations
• Environmental Health can conduct no more than one routine inspection per year, with additional inspections being allowed only to investigate a complaint or suspected health hazard.
• MEHKOs are exempted from several health and safety requirements that apply to other restaurants:
– A dedicated handwashing sink is not required in the kitchen area – Separate dishwashing/preparation sinks are not required – Ventilation and hoods are not required to meet restaurant fire and safety standards – Animals are not excluded in cooking areas
– ADA requirements are not applicable
6 Agenda Item #1.2:

Zoning, Land Use and Permitting
• The decision to opt in will also apply automatically within the city limits. (Health & Safety Code § 114367) If the county opts in, the cities may not opt out. • MEHKOs are automatically by right uses in residential occupancies for the purposes of zoning and cannot be further regulated by local zoning or building regulations. • All that is required is a Health permit.
• The law allows for the enforcement of noise and nuisance ordinances. 7 Agenda Item #1.2:

Regulatory Authority
8 Environmental Health:
• One routine inspection in a 12-month period. Must be scheduled with the operators at a time convenient to them. Additional scheduled inspections in response to a complaint or an emergency • Exempt from placarding/grading system
• Permit to be renewed annually
Partner Agencies (Code Enforcement, City, Police and Fire, etc.):
• Signage, Noise, Nuisances (excessive crowding, traffic, parking issues, garbage overflow, etc.)
Agenda Item #1.2:

AB 178 MEHKO Assistance Grant
• Sonoma County received $138,015.04 in Grant Funds for FY 2023/2024 and 2024/2025 to assist with costs associated with development of a MEHKO program, including program development, public outreach, offsetting permit fees, and enforcement. This grant funding does not require the implementation of a program.
• According to the grant letters of intent the following jurisdictional information is available:
– 15 jurisdictions have opted into the MEHKO program (Riverside, Santa Barbara, San Diego, Solano, San Mateo, San Benito, Santa Clara, Alameda, Amador, Imperial, Sierra, Monterey, Lake, Contra Costa and the City of Berkeley).
– 16 jurisdictions are currently considering a MEHKO program (City of Vernon, Mariposa, Inyo, Trinity, Tehama, Mendocino, Nevada, Marin, Santa Cruz, City of Long Beach, Contra Costa, Sonoma, Fresno, Los Angeles, Mono, Humboldt and El Dorado). 9 Agenda Item #1.2:

Previous City Outreach and Comments - 2021
• County received written comments from the following jurisdictions: Town of Windsor, City of Rohnert Park, City of Cotati, City of Sebastopol, City of Santa Rosa, City of Petaluma. • Cities were generally supportive of the program’s goals, but positions on whether the County should opt in were mixed.
10 Agenda Item #1.2:

Policy Options/Considerations
• Sonoma County Health Services was directed by the Board to return in September of 2024 with a draft MEHKO ordinance.
• Health Services will bring a proposal to opt into the MEHKO statute via ordinance. MEKHOs would be permitted in any residence but would not be permitted in areas of the applicable city or county where they are prohibited by General Plan.
11 Agenda Item #1.2:

Next Steps

1. Let the County know if your city supports or opposes the proposal

2. Reach out to Department with Health Services with any questions or concerns 12 Agenda Item #1.2:

13 Sonoma County
Department of Health Services
Tina Rivera, (707) 565-7901
Director, Department of Health Services
[email protected]
Christine Sosko, (707) 565-6521
Director of Environmental Health
[email protected]
Agenda Item #1.2:

City Council:

John Gurney, Mayor
Patricia Farrar-Rivas, Vice Mayor
Jack Ding
Ron Wellander
Sandra Lowe

SPECIAL JOINT MEETING MINUTES OF THE SONOMA

CITY COUNCIL AND PLANNING COMMISSION
City Council Chambers
177 First Street West
Wednesday, June 25, 2024

6:00 PM Special Joint Meeting
Special Meeting Minutes, June 25, 2024
6:00 P.M. – SPECIAL JOINT MEETING

CONVENE, CALL TO ORDER, & PLEDGE OF ALLEGIANCE
Mayor Gurney called the meeting to order at 6:00 p.m.

ROLL CALL
PRESENT: Mayor Gurney, Vice Mayor Farrar-Rivas, Council Member Wellander, Council Member Lowe, Chair Barnett, Vice Chair Barbose, Commissioner Dambach, Commissioner O’Neill, Commissioner Willers, and Commissioner Nugent.

ABSENT: Council Member Ding, Commissioner Wirick, and Commissioner O’GormanJenkins

1. CALL TO ORDER

2. ITEMS FOR DISCUSSION
Item 2.1: Continuation of the City Council and Planning Commission discussion on the General Plan Update from June 5, 2024, Special Meeting. (Jennifer Gates, AICP, Community Development Director)
Action: Discussion was had, and direction was given to Staff.

Council Member Ding arrived at 6:29 p.m.

Public Comment: Connie Schlelein, Iris Lombard, Ann Colichidas, Sedra Shapiro-Nathan, and Kaitlyn Cornwell.

Vice Mayor Farrar-Rivas disclosed that she sits on the Board of the Sonoma Ecology Center.

3. ADJOURNMENT
Mayor Gurney adjourned the meeting at 7:57 p.m.

I HEREBY CERTIFY that the foregoing minutes were duly and regularly received at a regular meeting of the Sonoma City Council on the 21st of August 2024.
___________________________________
Rebekah Barr, MMC, City Clerk
Agenda Item #7.2:

City Council:

John Gurney, Mayor
Patricia Farrar-Rivas, Vice Mayor
Jack Ding
Ron Wellander
Sandra Lowe

REGULAR MEETING MINUTES

OF THE SONOMA CITY COUNCIL
City Council Chambers
177 First Street West
Wednesday, July 17, 2024

6:00 PM Regular Meeting
Regular Meeting Minutes, July 17, 2024
6:00 P.M. – REGULAR MEETING

CONVENE, CALL TO ORDER, & PLEDGE OF ALLEGIANCE
Mayor Gurney called the meeting to order at 6:00 p.m.

ROLL CALL
PRESENT: Mayor Gurney, Vice Mayor Farrar-Rivas, Council Member Wellander, and Council Member Ding
ABSENT: Council Member Lowe (arrived at 6:12PM)

REPORT ON CLOSED SESSION
There was no Closed Session held.

APPROVAL OF AGENDA
Motion by Council Member Wellander, seconded by Vice Mayor Farrar-Rivas, to approve the agenda with item 8.1 moved in front of item 1. Motion carried 4-0-1, with Council Member Ding, Council Member Wellander, Vice Mayor Farrar-Rivas and Mayor Gurney voting YES, and Council Member Lowe absent.

8. PUBLIC HEARING
Item 8.1: Public Hearing to Consider an Appeal of the Planning Commission's Decision to Deny a Use Permit Amendment (UA-23-40) and Wine Tasting Use Permit (WTUP-24-1) That Would Have Authorized a Vacation Rental and Wine Tasting Facility at 301 First Street West Under the Adaptive Reuse Provisions of the City’s Development Code. The Appellant Requests the City Council Approve the Use Permit Amendment and Wine Tasting Use Permit and Give Direction to Staff on Policy Issues Concerning the Adaptive Reuse Ordinance. (Jennifer Gates, AICP, Community Development Director) Action: Item was continued to the September 4, 2024, regularly scheduled meeting.

Motion by Vice Mayor Farrar-Rivas, seconded by Council Member Ding, to continue this item to the September 4, 2024, regularly scheduled meeting. Motion carried 4-0-1, with Council Member Ding, Council Member Wellander, Vice Mayor Farrar-Rivas, and Mayor Gurney voting YES, and Council Member Lowe absent.

1. PRESENTATIONS
Item 1.1: Proclamation in Honor of the 20th Anniversary of the Napa to Sonoma Wine Country Half Marathon
Item 1.2: Presentation Regarding the Early July Heat Event (Sarah Tracy, Senior Management Analyst)
Council Member Lowe arrived at 6:12 p.m.

2. COMMENTS FROM THE PUBLIC
Josette Brose-Eichar, David Eichar, and Fred Allebach provided public comments.

3. MEETING DEDICATIONS
None.

4. COUNCILMEMBERS’ REPORTS AND COMMENTS
Vice Mayor Farrar-Rivas attended the “Small is Beautiful” Sonoma Development Center (SDC) film at the Sebastiani Theater on July 14, 2024. She attended the Sonoma Clean Power Board meeting on July 11, 2024.

Council Member Wellander attended a North Bay Watershed Association meeting in which they toured the Napa Sanitary District.

Council Member Lowe attended the Sonoma County Transportation Authority Regional Climate Protection Agency meeting on July 8, 2024.

Agenda Item #7.2:

Regular Meeting Minutes, July 17, 2024
Mayor Gurney attended a walking tour at Jack London State Park on July 12, 2024. He also attended a Sonoma Valley Tourism Improvement District meeting on July 14, 2024, and a meeting at the Sonoma Community Center to assist in establishing a conference room in honor of Sam Morphy.

5. CITY MANAGER COMMENTS AND ANNOUNCEMENTS
City Manager Guhin thanked City staff for keeping operations going smoothly while he was out of town. The annual City party will be held on August 1, 2024, starting at 6 p.m. Mr. Guhin informed the Council and the public that the nomination period for City Council election was open and closes at 5 p.m. on August 9, 2024. Lastly, City Manager Guhin introduced and acknowledged four new employees who have been hired recently: Ian Anderson, Environmental Compliance Analyst; Ashley Cotter, Public Works Administrative and Project Manager; Joey Tignor, Chief Building Officia, and Carolyn Fulton, Cemetery Manager.

6. CITY ATTORNEY COMMENTS
City Attorney Ruderman provided an update regarding the Cal-Cities Business Roundtable Measure.

7. CONSENT CALENDAR – CITY COUNCIL
Motion by Council Member Lowe, seconded by Vice Mayor Farrar-Rivas, to approve the Consent Calendar as presented. Motion carried unanimously.

Item 7.1: Waive further reading and Authorize Introduction and/or Adoption of Ordinances by Title Only. (Standard procedural action - no backup information provided) Item 7.2: Accept Minutes from the Regular Meetings of May 15, 2024, June 5, 2024, June 19, 2024, and the Special Meetings of May 30, 2024, and June 6, 2024 (Rebekah Barr, MMC, City Clerk)
Action: Minutes were accepted.

Item 7.3: Adopt Resolutions 1) Calling for the Holding of a General Municipal Election to be Held on Tuesday, November 5, 2024, for the Election of Certain Officers as Required by the Provisions of the Laws of the State of California Relating to General Law Cities; and 2) Requesting the Board of Supervisors of the County of Sonoma to Consolidate a General Municipal Election to be Held on Tuesday, November 5, 2024 with the Statewide General Election to be Held on Tuesday, November 5, 2024 (Rebekah Barr, MMC, City Clerk/Elections Official)
Action: Adopted as Resolution 47-2024 and Resolution 48-2024.

Item 7.4: Adopt a Resolution Authorizing the City Manager to Execute a Professional Services Agreement with Olaunu, LLC to provide As-Needed Engineering and Project Management Consulting Assistance in an Amount Not-To-Exceed $25,000.00 (Mike Berger, Public Works Director)
Action: Adopted as Resolution 49-2024.

Item 7.5: Adopt a Resolution to: 1) Authorize the City Manager to Execute a Professional Services Agreement with Horticultural Associates in an Amount Not to Exceed $50,000 Annually to Provide As-Needed Certified Arborist Services; 2) Reject All Proposals Received for On-Call Tree Maintenance Services; and 3) Direct Public Works Staff to Re-Issue a Request for Proposals for On-Call tree Maintenance Services (Mike Berger, Public Works Director)
Action: Adopted as Resolution 50-2024.

Item 7.6: Adopt a Resolution Adopting the Plans and Specifications for the 2024 Citywide Slurry Seal Project No. 2401 (Project); Accepting Bids and Awarding a Contract to Pavement Coatings, Co.; Authorizing the City Manager to Execute a Construction Contract in the Amount of $294,950.00, and Authorizing the City Manager to Approve $29,495.00 (10%) in Contingency (Mike Berger, Public Works Director) Action: Adopted as Resolution 51-2024.

Item 7.7: Adopt a Resolution of the City Council of the City of Sonoma Re-Establishing the Appropriations Limit for the Fiscal Year 2023-24 and Establishing the Appropriations Limit for the Fiscal Year 2024-25 (Prapti Aryal, Finance Director) Action: Adopted as Resolution 52-2024.

9. REGULAR CALENDAR – CITY COUNCIL
Item 9.1: Discussion, Consideration and Possible Actions Regarding Placing a City Sales Tax Measure on the November 5th, 2024, Ballot, Including:

1. A Resolution Calling for the Holding of a General Municipal Election to be Held on Tuesday, November 5, 2024, for the Submission to the Voters a Question Relating to a Transactions and Use Tax and Requesting the Board of Supervisors of the County of Agenda Item #7.2:

Regular Meeting Minutes, July 17, 2024
Sonoma to Consolidate ta General Municipal Election to be Held on November 5, 2024, with the Statewide General Election to be Held on the Date Pursuant to Section 10403 of the Election Code and Directing City Staff to Carry Out Related Actions; and

2. An Ordinance Amending Sonoma Municipal Code Chapter 3.12 Governing the City’s Transactions and Use Tax, Subject to Approval by the Voters, of a One-Half Cent General Transactions and Use Tax (David Guhin, City Manager) Action: Adopted as Resolution 53-2024 and Ordinance 07-2024. Vice Mayor Farrar-Rivas and Mayor Gurney were designated to author the argument in favor of the measure.

Public Comment: Fred Allebach and Steve Page
Motion by Council Member Ding, seconded by Council Member Lowe, to Adopt a Resolution Calling for the Holding of a General Municipal Election to be Held on Tuesday, November 5, 2024, for the Submission to the Voters a Question Relating to a Transactions and Use Tax and Requesting the Board of Supervisors of the County of Sonoma to Consolidate a General Municipal Election to be Held on Tuesday, November 5, 2024, with the Statewide General Election to be Held on the Date Pursuant to Section 10403 of the Election Code and Direct Staff to Carry Out Related Action. Motion carried unanimously.

Motion by Council Member Lowe, seconded by Council Member Wellander to designate Vice Mayor Farrar-Rivas and Mayor Gurney to Author the Argument in Favor of the Measure and Authorize them to File a Rebuttal to any Timely Argument Filed Against the Measure. Motion carried unanimously.

Motion by Vice Mayor Farrar-Rivas, seconded by Council Member Lowe, to introduce an Ordinance Amending Sonoma Municipal Code Chapter 3.12 Governing the City’s Transactions and Use Tax, Subject to Approval by the Voters, of a One-Half Cent General Transactions and Use Tax. Motion carried unanimously.

10. SECOND COMMENTS FROM THE PUBLIC
None.

10. ADJOURNMENT
Mayor Gurney adjourned the meeting at 8:16 p.m.

I HEREBY CERTIFY that the foregoing minutes were duly and regularly received at a regular meeting of the Sonoma City Council on the 21st of August 2024.
___________________________________
Rebekah Barr, MMC, City Clerk
Agenda Item #7.2:

City Council:

John Gurney, Mayor
Patricia Farrar-Rivas, Vice Mayor
Jack Ding
Ron Wellander
Sandra Lowe

REGULAR MEETING MINUTES

OF THE SONOMA CITY COUNCIL
City Council Chambers
177 First Street West
Wednesday, August 7, 2024

6:00 PM Regular Meeting
Regular Meeting Minutes, August 7, 2024
6:00 P.M. – REGULAR MEETING

CONVENE, CALL TO ORDER, & PLEDGE OF ALLEGIANCE
Mayor Gurney called the meeting to order at 6:00 p.m.

ROLL CALL
PRESENT: Mayor Gurney, Council Member Wellander, Council Member Lowe, and Council Member Ding
ABENST: Vice Mayor Farrar-Rivas

REPORT ON CLOSED SESSION
There was no Closed Session held.

APPROVAL OF AGENDA
Motion by Council Member Lowe, seconded by Council Member Ding, to approve the agenda as presented. Motion carried 4-0-1 with Council Member Wellander, Council Member Ding, Council Member Lowe, and Mayor Gurney Voting YES, and Vice Mayor Farrar-Rivas absent.

1. PRESENTATIONS
Item 1.1: Presentation on a Sonoma Valley Enhanced Infrastructure Funding District by Susan Gorin, First District Supervisor, Sonoma County
Public Comment: Tom Conlon

2. COMMENTS FROM THE PUBLIC
An anonymous speaker, Marty Bennett, an anonymous speaker, an anonymous speaker, George Thompson, Beth Hadley, and Celine provided public comments.

3. MEETING DEDICATIONS
None.

4. COUNCILMEMBERS’ REPORTS AND COMMENTS
Council Member Lowe attended a Local Agency Formation Commission (LAFCO) meeting on August 7, 2024.

Council Member Wellander attended a Water Advisory Committee meeting on August 5, 2024, and a Sonoma County Homeless Coalition meeting on July 24, 2024.

5. CITY MANAGER COMMENTS AND ANNOUNCEMENTS
City Manager Guhin provided a brief update on the City’s annual slurry seal project, which is now underway—more information is available online on the City’s website. He announced that the annual Zucchini Races are scheduled for August 20, 2024, and reminded the Council and public that the nomination period for City Council election will not be extended; it ends at 5:00 p.m. on August 9, 2024.

6. CITY ATTORNEY COMMENTS
None.

7. CONSENT CALENDAR – CITY COUNCIL
Motion by Council Member Lowe, seconded by Council Member Ding, to approve the Consent Calendar with item 7.5 being pulled to be brought back to a subsequent meeting. Motion carried 4-0-1 with Council Member Wellander, Council Member Ding, Council Member Lowe, and Mayor Gurney Voting YES, and Vice Mayor Farrar-Rivas absent.

Agenda Item #7.2:

Regular Meeting Minutes, August 7, 2024
Item 7.1: Waive further reading and Authorize Introduction and/or Adoption of Ordinances by Title Only. (Standard procedural action - no backup information provided) Item 7.2: Adopt a Resolution Approving the Opioid Settlement with The Kroger Co., Authorizing the City Manager to Execute the Related Participation Agreements, and Granting Authority to City Manager to Execute and Enter into Future Agreements Related to the Nationwide Opioid Settlements (David Guhin, City Manager) Action: Adopted as Resolution 54-2024.

Item 7.3: Adopt a Resolution Cancelling the Regular Meeting Scheduled for October 16, 2024 (Rebekah Barr, MMC, City Clerk)
Action: Adopted as Resolution 55-2024.

Item 7.4: Adopt a Resolution Authorizing the City Manager to Execute Professional Services Agreements with Miller Pacific Engineering Group, RGH Consultants, and DAC Associate, Inc. Each Not to Exceed $50,000 for a Total of $150,000 in Contracts for On-Call Geotechnical Engineering and Materials Testing Services (Ashley Cotter, PW Admin & Project Manager)
Action: Adopted as Resolution 56-2024.

Item 7.5: Adopt a Resolution Authorizing the City Manager to Execute a Task Order with Land Culture, LLP, Previously Doing Business as Ann Baker Landscape Architect, for Olsen Park Renovations, Capital Improvement Project P-8 (Ashley Cotter, PW Admin & Project Manager)
Action: Item was pulled to be brought to a subsequent meeting.

8. PUBLIC HEARING
Item 8.1: Public Hearing to Adopt An Ordinance Amending Sonoma Municipal Code Chapter

3.12 Governing the City’s Transactions and Use Tax, Subject to Approval by the Voters, of a One-Half Cent General Transactions and Use Tax (David Guhin, City Manager and Rebekah Barr, MMC, City Clerk)
Action: Adopted as Ordinance 07-2024.

Open Public Hearing: 7:04 p.m.

Public Comment: Tom Conlon
Close Public Hearing: 7:06 p.m.

Motion by Council Member Ding, seconded by Council Member Lowe, to Adopt an Ordinance Amending Sonoma Municipal Code Chapter 3.12 Governing the City’s Transactions and Use Tax, Subject to Approval by the Voters, of a One-Half Cent General Transactions and Use Tax. Motion carried 4-0-1 with Council Member Wellander, Council Member Ding, Council Member Lowe, and Mayor Gurney Voting YES, and Vice Mayor Farrar-Rivas absent.

9. REGULAR CALENDAR – CITY COUNCIL
Item 9.1: Clarification of Appointee Residency Requirements and Appointments to Various Group B Regional/Valley Committees & Commissions (Rebekah Barr, MMC, City Clerk) Action: City Council confirmed Group B Regional/Valley Committees and Commissions, unless set by the agency bylaws, have the residency requirement that the appointee is a resident within the City or the boundaries set by the regional/Valley agency. Isaac Jenkins was appointed to the Sonoma Valley Community Advisory Commission.

Motion by Council Member Lowe, seconded by Council Member Ding, to appoint Isaac Jenkins to the Sonoma Valley Community Advisory Commission. Motion carried 4-0-1 with Council Member Wellander, Council Member Ding, Council Member Lowe, and Mayor Gurney Voting YES, and Vice Mayor Farrar-Rivas absent.

Motion by Council Member Ding, seconded by Council Member Lowe, to Confirm Group B Regional/Valley Committees and Commissions, Unless Set by the Agency Bylaws, have the Residency Requirement that the Appointee is a Resident Within the City or the Boundaries Set by the Regional/Valley Agency. Motion carried 4-0-1 with Council Member Wellander, Council Member Ding, Council Member Lowe, and Mayor Gurney Voting YES, and Vice Mayor Farrar-Rivas absent.

10. SECOND COMMENTS FROM THE PUBLIC
Tom Conlon provided public comment.

10. ADJOURNMENT
Mayor Gurney adjourned the meeting at 7:22 p.m.

I HEREBY CERTIFY that the foregoing minutes were duly and regularly received at a regular meeting of the Sonoma City Council on the 21st of August 2024.

Agenda Item #7.2:

Regular Meeting Minutes, August 7, 2024
___________________________________
Rebekah Barr, MMC, City Clerk
Agenda Item #7.2:

City of Sonoma
Agenda Item Summary
Meeting: City Council - 21 Aug 2024
Department
Finance
Staff Contact
Prapti Aryal, Finance Director
Agenda Item Title
Accept the Expenditure Report for the Month of June 2024 Summary
The attached report shows disbursements for the month of June 2024.

Fund 100, Department 43199 (Successor Agency) has expended only 38% of its budget due to the fact that part of the Finance Director’s wages and benefits are allocated to this department and the City did not have a full-time permanent finance director until May 2024. In addition, $97,000 was budgeted for legal and accounting expenses which were not utilized during the fiscal year.

Fund 301 (Streets/Transportation) currently has a negative fund balance, but this should be eliminated once reimbursement funding is provided by federal/state grants for the Chase Street Bridge project.

Fund 391 (Successor Agency) shows a negative fund balance of more than $20 million which is due to the debt service liability for 2015 and 2021 tax allocation bonds.

A detailed list of disbursements is available at the web site indicated at the bottom of the report.

Recommended Council Action
Accept report.

Alternative Actions
Council discretion.

Financial Impact
Monthly Payables Report, June 2024
Environmental Review Status
Environmental Impact Report
Negative Declaration
Exempt
Not Applicable
Approved/Certified
No Action Required
Action Requested
Attachments
Expenditures - June 2024
Agenda Item #7.3:

DISBURSEMENT REPORT JUNE 2024
Year to Date Monthly Year to Date Adjusted Percent of Fund Fund Revenue Expenditure Expenditure Budget Budget Balance General Fund 30000 23,947,216 24,256,842 99% 14,573,732 City Council 41001 14,961 162,931 174,793 93%
City Clerk 41002 19,332 247,295 269,813 92%
City Manager 41003 116,547 1,333,795 1,336,538 100%
Finance 41004 109,611 672,201 750,144 90%
City Attorney 41005 55,129 370,242 377,164 98%
Police 42101 1,287,691 6,457,950 6,499,239 99%
Fire 42201 1,202,077 7,713,390 7,783,458 99%
Public Works - Admin 43020 74,710 609,123 609,312 100%
Public Works - Streets 43022 104,758 1,133,371 1,138,978 100% Public Works - Parks 43023 122,143 1,242,856 1,331,140 93% Planning 43030 199,098 1,330,028 1,799,327 74%
Building 43040 75,930 792,143 914,790 87%
Community Activities 43101 64,078 799,171 930,926 86%
Successor Agency 43199 6,185 77,168 205,251 38%
Non-Departmental 43200 76,534 869,626 959,890 91%
Emergency Response 43201 360 6,128 6,500 94%
Transfers - 712,049 833,749 85%
Total Gen Fund Exp 3,529,143 24,529,467 25,921,011 95%
Other Funds
Public Education & Gov 202 52,742 25,902 47,528 59,061 80% (3,885) Strong Motion 203 249 - - - 0% 6,503
Asset Forfeiture 211 636 - - - 0% 16,833
SLESF C.O.P.S Grant 217 141,850 - 100,000 102,100 98% 408,553 Bond Property 220 - - - - 0% (19,144)
Maysonnave Property 221 - - - - 0% (15,196)
Schell Drainage 234 7,189 - - - 0% 62,555
Abandoned Vehicle 240 7,136 1,553 16,160 - 0% (26,699)
Streets/Transport/Drain 301 1,574,197 150,062 3,107,262 3,648,006 85% (1,609,886) Gas Tax 302 323,665 19,856 439,079 766,755 57% 636,903
SB-1Road Maint 303 263,092 352 352 350,000 0% 659,294
Parks & Facilities 304 79,141 21,442 282,086 393,258 72% 99,194 Transportation Measure M 313 122,841 - 179 230,000 0% 365,502 Parks-In-Lieu/Quimby Act 314 11,059 - - 50,000 0% 329,315 Parks Measure M 315 133,662 - - 277,000 0% 498,528
Prop 68 Parks 316 - (12,991) 181,541 185,015 98% (185,190) Successor Agency 391 1,174,046 28,013 1,434,671 2,630,651 55% (20,826,547) CREBS 495 41,749 - (41,749) 41,749 -100% (41,749)
2012 POB 498 48 - - - 0% (5,271)
Cemetery Pre-need 500 - - - - 0% 12,454
Cemeteries 501 277,702 71,827 335,637 509,532 66% (2,058,893) Cemetery Replacement 502 - - - - 0% 288,613
Cemetery Endowment 504 30,251 - 50,000 50,000 100% 766,621 Water Utility 510 6,126,368 1,000,339 5,352,674 10,074,716 53% 8,540,953 Water CIP 512 534,775 1,300,134 1,499,527 4,635,223 32% 743,681 Water Equip Replacement 513 24,709 - - - 0% 703,848
EMS Equip Replacement 521 4,015 - - - 0% 1,564
Mgmt Information Srvcs 601 492,281 122,863 434,055 542,393 80% 282,071 Vehicle Replacement 603 358,674 (82,500) 323,396 536,000 60% 1,276,087 Insurance 604 1,859 - - - 0% 49,095
Building Maintenance 610 353,404 48,608 56,934 284,025 20% 3,135,026 Computer Loan 614 2,164 - - - 0% 63,038
Hardscape Maint 615 886 - - - 0% 25,607
Admin Hearings 620 283 - - - 0% 533
Grants Restricted 630 1,253,761 - 1,253,719 - 0% 1,157
Culture Fine Art 701 351 - - - 0% 1,092
Tree Trust 702 552 - - - 0% 1,719
Public Art 703 673 - - - 0% 1,172
Pool Scholarship 715 10,211 - 25,000 25,000 100% (31,183) Senior Housing 731 9,032 - - - 0% 249,343
Housing Trust 732 443,926 - - - 0% 1,910,359
IGT 796 1,077,884 - 723,901 897,218 81% 2,049,426
SVFRA Operations 798 25,904 392 5,370 - 0% 625,572
TOTAL 38,910,184 6,224,995 40,156,789 52,208,713 77%
Monthly disbursement detail reports can be found at www.sonomacity.org/financial-documents Agenda Item #7.3:

City of Sonoma
Agenda Item Summary
Meeting: City Council - 21 Aug 2024
Department
Finance
Staff Contact
Prapti Aryal, Finance Director
Agenda Item Title
Accept the Expenditure Report for the Month of July 2024 Summary
The attached report shows disbursements for the month of July 2024.

Some departments in Fund 100 (General Fund) have higher percentages of budget vs actual due to the allocation of one-time payments for the annual CalPERS unfunded accrued liability (UAL). As noted during the FY2024-2025 budget process, departments with higher number of members in the Classic plan were allocated a larger UAL expense as the Classic UAL is more expensive than the PEPRA UAL ($731,634 vs $6,703 in FY24-25). Of the $2,992,267 in General Fund expenses for the month, $1,874,317 is for CalPERS UAL.

Paying UAL as a lump sum in July rather than in monthly installments allowed the City to take advantage of a 3.4% discount on interest charges.

Fund 603 (Vehicle Replacement) has a relatively higher budget vs actual as a result of a $82,500 down payment made on an ambulance purchase approved by the City Council with Resolution 19-2024.

A detailed list of disbursements is available at the web site indicated at the bottom of the report.

Recommended Council Action
Accept report.

Alternative Actions
Council discretion.

Financial Impact
Monthly Payables Report, July 2024
Environmental Review Status
Environmental Impact Report
Negative Declaration
Exempt
Not Applicable
Approved/Certified
No Action Required
Action Requested
Attachments
Expenditures - July 2024
Agenda Item #7.4:

DISBURSEMENT REPORT JULY 2024
Year to Date Monthly Year to Date Annual Percent of Fund Fund Revenue Expenditure Expenditure Budget Budget Balance General Fund 30000 86,614 24,262,320 0% 11,828,031
City Council 41001 8,417 8,417 175,144 5%
City Clerk 41002 15,410 15,410 439,186 4%
City Manager 41003 223,783 223,783 1,409,847 16%
Finance 41004 35,963 35,963 686,037 5%
City Attorney 41005 49 49 272,584 0%
Police 42101 554,733 554,733 7,595,839 7%
Fire 42201 1,455,479 1,455,479 7,936,241 18%
Public Works - Admin 43020 59,813 59,813 655,793 9%
Public Works - Streets 43022 164,934 164,934 1,180,173 14% Public Works - Parks 43023 296,506 296,506 1,651,256 18% Planning 43030 31,871 31,871 1,288,154 2%
Building 43040 6,994 6,994 941,768 1%
Community Activities 43101 58,695 58,695 979,429 6%
Successor Agency 43199 6,153 6,153 174,568 4%
Non-Departmental 43200 45,808 45,808 922,875 5%
Emergency Response 43201 - - - 0%
Transfers 27,658 27,658 809,716 3%
Total Gen Fund Exp 2,992,267 2,992,267 27,118,608 11%
Other Funds
Public Education & Gov 202 - - - 59,061 0% (3,885)
Strong Motion 203 1 - - - 0% 6,505
Asset Forfeiture 211 - - - - 0% 16,833
SLESF C.O.P.S Grant 217 - - - 100,000 0% 508,553
Bond Property 220 - - - - 0% (19,144)
Maysonnave Property 221 - - - - 0% (15,196)
Schell Drainage 234 - - - - 0% 62,555
Abandoned Vehicle 240 - - - - 0% (26,699)
Streets/Transport/Drain 301 - - - 310,000 0% (1,609,886) Gas Tax 302 - 40,641 40,641 1,080,940 4% 596,261
SB-1Road Maint 303 2 - - 992,000 0% 659,295
Parks & Facilities 304 - - - 393,258 0% 112,186
Fire Measure H 312 - - - 548,700 0% -
Transportation Measure M 313 - - - 287,000 0% 365,502
Parks-In-Lieu/Quimby Act 314 3 - - 142,921 0% 329,315
Parks Measure M 315 1 - - 427,000 0% 498,529
Prop 68 Parks 316 - - - - 0% (198,181)
Successor Agency 391 - 60,869 60,869 2,591,338 2% (20,864,253) CREBS 495 - - - - 0% (41,749)
2012 POB 498 - - - - 0% (5,271)
Cemetery Pre-need 500 - - - - 0% 12,454
Cemeteries 501 38,408 44,060 44,060 637,126 7% (2,040,008) Cemetery Replacement 502 - - - - 0% 288,613
Cemetery Endowment 504 780 - - 50,000 0% 767,401
Water Utility 510 711,321 162,492 162,492 6,789,397 2% 9,090,434 Water CIP 512 - - - 950,000 0% 743,681
Water Equip Replacement 513 - - - - 0% 703,848
EMS Equip Replacement 521 - - - - 0% 1,564
Mgmt Information Srvcs 601 42,189 49,593 49,593 608,159 8% 274,668 Vehicle Replacement 603 30,746 82,500 82,500 649,339 13% 1,224,333 Insurance 604 - - - - 0% 49,095
Bulding Maintenance 610 26,180 - - 35,000 0% 3,161,206
Computer Loan 614 - - - - 0% 63,038
Hardscape Maint 615 - - - - 0% 25,607
Admin Hearings 620 - - - - 0% 533
Grants Restricted 630 - - - 360,000 0% 1,157
Culture Fine Art 701 - - - - 0% 1,092
Tree Trust 702 - - - - 0% 1,719
Public Art 703 - - - - 0% 1,172
Pool Scholarship 715 - - - 25,000 0% (31,183)
Senior Housing 731 - - - - 0% 249,343
Housing Trust 732 - - - - 0% 1,910,359
IGT 796 - - - 519,613 0% 2,049,426
SVFRA Operations 798 2,867 434 434 - 0% 628,004
TOTAL 939,112 3,432,855 3,432,855 44,674,459 8%
Monthly disbursement detail reports can be found at www.sonomacity.org/financial-documents Agenda Item #7.4:

City of Sonoma
Agenda Item Summary
Meeting: City Council - 21 Aug 2024
Department
Public Works
Staff Contact
Michael Berger, Public Works Director
Agenda Item Title
Adopt a Resolution Approving a Cooperative Funding Agreement with Sonoma County Transportation Authority (SCTA) for Go Sonoma Measure M Funds for CIP Project No. T-6, Citywide Safety Bicycle and Pedestrian Improvements
Summary
In 2004, Sonoma County approved the Sonoma County Traffic Relief Act ("Measure M"), a 1/4 cent sales tax for transportation. In 2020, voters approved extending the Measure M tax with no increase in the existing tax rates via the Go Sonoma Act. The Go Sonoma Expenditure plan includes four programs in two different categories:

Category 1: Fix roads, fill potholes, improve safety and usability for all, which includes smooth and maintained roads (38% of funding), and move traffic and improve safety (27% of funding).

Category 2: Improve alternatives to cars, fight climate change, which includes increase bus service, affordability, and first/last mile connections (23% of funding), and build bikeways and pathways (12% of funding). All projects require a match of at least 15%.

The 2023 Go Sonoma Strategic Implementation Plan includes projects across Sonoma County, which includes the City of Sonoma's Citywide Safety Bicycle and Pedestrian Improvements Project. The City of Sonoma has $1,610,000 of Go Sonoma Build Bikeways and Pathways (BBP) funding programmed for FY 2026 Funding Cycle 1. The BBP Program receives 1% of overall Go Sonoma Revenues annually for projects that make it easier to bike and walk, which includes building new infrastructure for bicycles and pedestrians that will increase overall safety, close critical gaps in existing routes, and promote the use of active transportation. The City's project, identified as CIP Project No. T-6 will construct improvements to create a high-quality bike and pedestrian network, provide safe and wellmaintained transportation infrastructure for pedestrians and bicyclists, focus on strategies that support a walkable community. Project components consist of the construction of a new bicycle path to Sassarini Elementary, safety upgrades to the pedestrian crossing at Fifth Street West, and safety improvements at the crossing locations between the City of Sonoma's main bicycle path and City streets.

The attached Cooperative Funding Agreement (Agreement) with SCTA will allow the City to access Go Sonoma funds for the citywide safety bicycle and pedestrian improvement project.

SCTA is the administering body of the Go Sonoma funds, and the Agreement with SCTA ensures that the City conforms to the relevant laws and reporting requirements for Go Sonoma funds.

The project is estimated at $2,187,000. The City will provide a match of $577,000 which includes $65,000 of capital improvement fund and $512,000 in City Gas Tax funds. Without the cooperative agreement, the City will not be able to access the $1,610,000 programmed in Agenda Item #7.5:

the Go Sonoma Strategic Implementation Plan.

Recommended Council Action
Adopt a resolution to approving the cooperative funding agreement with Sonoma County Transportation Authority.

Alternative Actions
Council discretion.

Financial Impact
This project will not be able to proceed without this cooperative funding agreement, which allows the City to access its share of the Go Sonoma revenue tax. Without this cooperative agreement, the City will not be able to access the programmed Go Sonoma funds, and the project will suffer a funding gap of $1,610,000. This project was included in the adopted 24-25 capital improvement program, and budget for this project was approved under account 301- 50000-703-70703,
Adopting a resolution to execute a cooperative funding agreement will enable the City to request an appropriation request to SCTA for $1,610,000. Appropriations are made by development phase (Environmental, Design, Right-of-Way, or Construction) and by fiscal year. The City will be able to submit an appropriation for construction in FY 2026 pending approval of this cooperative funding agreement.

Environmental Review Status
Environmental Impact Report
Negative Declaration
Exempt
Not Applicable
Approved/Certified
No Action Required
Action Requested
Attachments
Resolution - SCTA CoOp Agreement
Sonoma City Go Sonoma Coop Agreement
Alignment with Council Goals:

Not Applicable
Agenda Item #7.5:

City of Sonoma
RESOLUTION # _______- 2024

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SONOMA APPROVING THE

COOPERATIVE FUNDING AGREEMENT WITH SONOMA COUNTY TRANSPORTATION AUTHORITY (SCTA) FOR GO SONOMA FUNDS FOR CIP PROJECT NO. T-6 CITYWIDE

SAFETY BICYCLE AND PEDESTRIAN IMPROVEMENTS
WHEREAS, Sonoma County approved the Sonoma County Traffic Relief Act in 2004 (Measure M), as a ¼ sales tax for transportation; and
WHEREAS, in 2020 voters approved extending Measure M via the Go Sonoma Act without an increase in the existing tax rates; and
WHEREAS, the City of Sonoma currently has $1,610,000 programmed in the Go Sonoma Strategic Implementation Plan for the construction phase of the City’s Citywide Safety Bicycle and Pedestrian Improvements Project (CIP Project No. T-6); and WHEREAS, this project has a current projected budget of $2,187,000 – this includes $577,000 in City Matching funds, which includes $65,000 in general fund and $512,000 of gas tax funds; and
WHEREAS, SCTA is the administering body of the Go Sonoma Funds; and WHEREAS, The City will not be able to access the revenue funds without this cooperative funding agreement; and
WHEREAS, adopting this cooperative funding agreement will enable the City to submit an appropriation request to SCTA for $1,610,000 during the construction phase of project T-6.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Sonoma hereby approves the cooperative funding agreement with SCTA for Go Sonoma Funds.

PASSED, RESOLVED, AND ADOPTED, at a Regular meeting of the City Council of the City of Sonoma on this 21st day of August 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________
John Gurney, Mayor
ATTEST:
_______________________________
Rebekah Barr, MMC, City Clerk
Agenda Item #7.5:

COOPERATIVE FUNDING AGREEMENT NO. G20800E1

BETWEEN

THE SONOMA COUNTY TRANSPORTATION AUTHORITY
AND

CITY OF SONOMA
This Agreement is made and entered into as of April 1, 2025 (“Effective Date”) by and between the City of SONOMA, hereinafter referred to as “CITY” and the SONOMA COUNTY TRANSPORTATION AUTHORITY, hereinafter referred to as “AUTHORITY.”

RECITALS

1. AUTHORITY adopted that certain 2023 Strategic Implementation Plan that sets forth AUTHORITY’S program and project implementation policies with regard to the use of funds provided under the 2020 Go Sonoma Act Expenditure Plan and Ordinance approved by the voters of Sonoma County on November 3, 2020 (hereinafter referred to as “Go Sonoma”). The 2023 Strategic Implementation Plan as such plan may be amended from time to time is hereinafter referred to as the “Strategic Implementation Plan.”

2. Pursuant to the Strategic Implementation Plan and Go Sonoma, AUTHORITY and CITY desire to enter into a Cooperative Funding Agreement to define a framework to enable the two parties to work cooperatively in allocating funding for local road maintenance and related eligible work as described in the Strategic Implementation Plan (hereinafter “Go Sonoma Roads”).

3. Each party to the Agreement is a public agency duly authorized and existing under the laws of the State of California.

4. CITY desires to undertake Go Sonoma Roads projects to maintain existing roads on an as needed basis, and to utilize Go Sonoma funding to help defray costs of those Go Sonoma Roads projects, to the extent such funds have been set aside by the AUTHORITY in the Strategic Implementation Plan for the benefit of the CITY.

5. CITY is authorized in accordance with Section 9 of Article XI of the California Constitution to establish, purchase and operate public works in order to furnish residents with light, water, power, heat, transportation, or means of communication.

6. Pursuant to the Strategic Implementation Plan and Go Sonoma, AUTHORITY is committed to make available quarterly payments to CITYfor such Go Sonoma Roads Projects based on the formula set forth in Go Sonoma.

7. AUTHORITYis authorized in accordance with §180152 and 180205 of the Local Transportation Authority and Improvement Act (California Public Utilities Code §180000 et seq, hereinafter referred to as the Local Transportation Act”)to make contracts and enter into stipulations of any nature whatsoever and to do all acts necessary and convenient for the full exercise of the powers imposed under the Local Transportation Act for the construction, maintenance improvement and operation of local streets, roads, and highways, and for the construction improvement, and operation of public transit systems.

Agenda Item #7.5:

NOW, THEREFORE, in consideration of the foregoing, AUTHORITY and CITY do hereby agree as follows:

SECTION I

CITY AGREES

1. Compliance with Laws. With regard to the Go Sonoma Roads projects, CITY shall at all times comply with all applicable laws of the United States, the State of California, the County, and with all applicable regulations promulgated by federal, state, regional, or local administrative and regulatory agencies now in force and as they may be enacted, issued, or amended during the term of the Agreement.

2. Records. To allow AUTHORITYto audit all expenditures relating to Go Sonoma Roads projects funded through this Agreement. For the duration of the Go Sonoma Roads Projects funded under this Agreement, and for five (5) years following the termination of this Agreement, CITY shall make available to AUTHORITY all records relating to expenses incurred in performance of this Agreement.

3. Reporting Requirements. To provide annual updates on the Go Sonoma Roads Projects to AUTHORITY in the form attached hereto as Exhibit A.

SECTION II
AUTHORITY AGREES:

1. Allocation of Funding. Consistent with its Strategic Implementation Plan, to make available Go Sonoma funds to CITY for such Go Sonoma Roads Projects (also referred to as “GSR”)based on the formula set forth in Go Sonoma. AUTHORITY shall distribute such funds to CITY on a quarterly basis.

2. Notice of Audit. To provide timely notice to CITY if an audit is to be conducted.

SECTION III
IT IS MUTUALLY AGREED:

1. Term. This Agreementwill remain in effect until discharged as provided in Paragraph 2 or 12 of this Section III.

2. Termination. This Agreement shall be subject to termination as follows:
a. a. This Agreement may be canceled by a non-breaching party for breach of any obligation, covenant or condition hereof by the other party, upon notice to the breaching party. With respect to any breach which is reasonably capable of being cured, the breaching party shall have thirty (30) days from the date of the notice to initiate steps to cure. If the breaching party diligently pursues cure, such party shall be allowed a reasonable time to cure, not to exceed sixty (60) days from the date of the initial notice, unless a further extension is granted by the non-breaching party. On Agenda Item #7.5:

cancellation, the non-breaching party retains the same rights as a party exercising its right to terminate under the provisions of paragraph 2(b), except that the canceling party also retains any remedy for breach of the whole contract or any unperformed balance. If the Agreement is cancelled by AUTHORITYbecause CITYhas failed to meet the reporting or basic operational requirements under Go Sonoma or the Strategic Implementation Plan, AUTHORITY may, at its option, demand repayment of all unexpended funds and funds determined by audit not to have been expended as provided for in this Agreement, with interest accrued thereon as would have accrued had such funds been invested in the Sonoma County Treasury Pool; and, further, to offset such balances due AUTHORITY from any other Go Sonoma funds due CITY. b. By mutual consent of both parties, this Agreement may be terminated at any time.

Upon termination by mutual consent, CITYshall repay to AUTHORITY any unexpended ·funds originally provided to CITY under this Agreement, and any interest that has accrued thereon.

3. Indemnity.

Each party shall indemnify, defend, protect, hold harmless, and release the other, its officers, agents, and employees, from and against any and all claims, loss, proceedings, damages, causes of action, liability, costs, or expense (including attorneys’ fees and witness costs) arising from or in connection with, or caused by any act, omission, or negligence of such indemnifying party or its agents, employees, contractors, subcontractors, or invitees. This indemnification obligation shall not be limited in any way by any limitation on the amount or type of damages or compensation payable to or for the indemnifying party under workers’ compensation acts, disability benefit acts, or other employee benefit acts.

4. Notices. Any notice which may be required under this Agreement shall be in writing, shall be effective when received, and shall be given by personal service, or by certified or registered mail, return receipt requested, to the addresses set forth below, or to such addresses which may be specified in writing to the parties hereto.

To CITY Mike Berger, Director of Public Works
City of SONOMA
No. 1 the Plaza
Sonoma, CA 95476
707-938-3332
Email: [email protected]
To AUTHORITY James R. Cameron, Executive Director
411 King Street
Sant Rosa, CA 95405
(707) 565-5373
Email [email protected]
Agenda Item #7.5:

5. Additional Acts and Documents. Each party agrees to do all such things and take all such actions, and to make, execute and deliver such other documents and instruments, as shall be reasonably requested to carry out the provisions, intent and purpose of the Agreement.

6. Integration. This Agreement represents the entire agreement of the parties with respect to the subject matter hereof. No representations, warranties, inducements or oral agreements have been made by any of the parties except as expressly set forth herein, or in other contemporaneous written agreements.

7. Amendment This Agreement may not be changed, modified or rescinded except in writing, signed by all parties hereto, and any attempt at oral modification of this Agreement shall be void and of no effect.

8. Independent Agency. CITY renders its services under this Agreement as an independent agency. None of the CITY's agents or employees shall be agents or employees of the AUTHORITY.

9. Assignment. The Agreement may not be assigned, transferred, hypothecated, or pledged by any party without the express written consent of the other party.

10. Successors. This Agreement shall be binding upon the successor(s), assignee(s) or transferee(s) of the AUTHORITY or CITY as the case may be. This provision shall not be construed as an authorization to assign, transfer, hypothecate or pledge this Agreement other than as provided above. ·

11. Severability. Should any part of this Agreement be determined to be unenforceable, invalid, or beyond the authorityof either party to enter into or carry out, such determination shall not affect the validity of the remainder of this Agreement which shall continue in full force and effect; provided that, the remainder of this Agreement can, absent the excised portion, be reasonably interpreted to give effect to the intentions of the parties.

12. Limitation. All obligations of AUTHORITY under the terms of this Agreement are expressly subject to AUTHORITY' s continued authorization to collect and expend the sales tax proceeds provided by Go Sonoma. If for any reason AUTHORITY' s right to collect or expend such sales tax proceeds is terminated or suspended in whole or part, AUTHORITY shall promptly notify CITY, and the parties shall consult on a course of action. If, after twenty five (25) working days, a course of action is not agreed upon by the parties, this Agreement shall be deemed terminated by mutual consent; provided, that any future obligation to fund from the date of the notice shall be expressly limited by and subject to (i) the lawful ability of AUTHORITY to expend sales tax proceeds for the purposes of the Agreement; and (ii) the availability, taking into considerationall the obligations of AUTHORITY under all outstanding contracts, agreements to other obligations of AUTHORITY, of funds for such purposes.

Agenda Item #7.5:

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.

CITY OF SONOMA SONOMA COUNTY TRANSPORTATION

AUTHORITY
By: By:

John Gurney, Mayor Lynda Hopkins, Chair of the Board
ATTEST: APPROVED AS TO SUBSTANCE:

By: By:

Rebekah Barr, City Clerk James R. Cameron, Executive Director APPROVED AS TO LEGAL FORM FOR CITY:

By: By:

David Ruderman, City Attorney Adam Brand, County Counsel Agenda Item #7.5:

COOPERATIVE FUNDING AGREEMENT NO: G20800E1
Between the SONOMA COUNTY TRANSPORTATION AUTHORITY
And CITY OF SONOMA

EXHIBIT A

FORM OF REPORTING LETTER

PROJECT SPONSOR LETTERHEAD
Please refer to the Reporting Instructions and Submittal Requirements before sending your completed Annual Reporting Letter to the SCTA. The Annual Reporting Letter is due to the SCTA by September 15.

Date
Sonoma County Transportation Authority
411 King Street
Santa Rosa, CA 95404
Go Sonoma Roads Program (GSR) - Annual Reporting Letter – FY _______ Dear SCTA Chair:

The City of / Town of/ County of ___________ is pleased to present information related to Go Sonoma funding for the above referenced program for FY __________ Reported:

Go Sonoma Roads allocation expenses in this fiscal year included the following:

A. FY Reported Allocations $ -
B. Unspent Prior Allocations $ -
C. Interest earned on Unspent Prior Allocations $ -
D. Total Funding Available in FY Reported $ -
E. Total Funding Spent in FY Reported $ -
F. Total Go Sonoma Rollover to Next FY $ -
G. Overlay Program $ -
H. Maintenance Program $ -
I. ITS $ -
J. Traffic Calming $ -
K. Other $ -
L. Total Funding Spent in FY Reported $ -
Description of Go Sonoma Expenditures on Local Streets Maintenance Agenda Item #7.5:

M. Describe work done with Go Sonoma Roads Funding on such work as overlays, general maintenance, pothole repair, ITS, and traffic calming. (insert text below table) Street/Road/Location Treated Total Length PCI Before/After Please enter any further description of project or work completed here:

N. Describe how multimodal needs were considered?
Report on Public Information Requirements
O. Did you display the Go Sonoma logo on signs at the construction site or on vehicles? Please enclose picture.

P. Did you provide digital pictures of projects before, during and after construction? Q. Did you identify Go Sonoma on your web site? Please provide link.

R. Did you include SCTA and Go Sonoma in any public outreach/engagement? S. Please Identify Go Sonoma funding benefits and discuss how Go Sonoma funds assisted in delivering your program.

T. Has there been a change in your total road miles in the Pavement Management Program? Please explain.

To meet our reporting requirements, we are submitting an original signed copy on our letterhead. We have emailed an electronic copy to the SCTA.

We have sent electronic format photographs in jpeg file format.

If you have any questions regarding this program information, please contact:

Name:

Phone:

Email:

Sincerely,

SIGNATURE REQUIRED
Name
Title (City Manager, Public Works Director, District Director) Agenda Item #7.5:

City of Sonoma
Agenda Item Summary
Meeting: City Council - 21 Aug 2024
Department
Finance
Staff Contact
Jennifer Gates, AICP, Community Development
Director, Prapti Aryal, Finance Director
Agenda Item Title
Adopt a Resolution Authorizing the City Manager to Execute a Professional Services Agreement with Matrix Consulting Group, Ltd. in an Amount Not to Exceed $50,000 to Develop a Comprehensive Fee Study, Cost Allocation Analysis, and Nexus Study for Impact Fees.

Summary
The City of Sonoma’s Master Fee Schedule details the fees charged for city services. To ensure these fees reflect the true cost of providing services, the City aims to engage a professional firm with expertise in cost recovery. The selected firm will update the Master Fee Schedule and conduct an Overhead Cost Allocation Analysis to determine the fully burdened costs. Additionally, the City plans to evaluate impact fees for new development to offset the fiscal impact on public facilities and services, in accordance with the California Mitigation Fee Act.

To solicit qualified consultants, staff issued a Request for Proposals for the fee study from June 10, 2024, to July 10, 2024, and received two responses. After reviewing the proposals, Matrix Consulting Group was identified as the preferred provider (see attached agreement with the proposal). The consultants anticipate completing the project by next Spring, in time for incorporation into the FY 25-26 Budget Cycle.

Recommended Council Action
Adopt the Resolution authorizing the City Manager to execute the Professional Services Agreement with Matrix Consulting Group, Ltd. in an amount not to exceed $50,000.

Alternative Actions
Council discretion.

Financial Impact
The contract will be funded by the $75,000 allocated in FY 23-24 for a Comprehensive Fee Study (Account 100-41004-347-50347), which has been approved for carryforward into the FY 24-25 Budget.

Environmental Review Status
Environmental Impact Report
Negative Declaration
Exempt
Not Applicable
Approved/Certified
No Action Required
Action Requested
Agenda Item #7.6:

Attachments
CC Resolution PSA Fee Study
PSA Fee Study
Alignment with Council Goals:

ECONOMIC DEVELOPMENT/REVENUE STEWARDSHIP
Agenda Item #7.6:

City of Sonoma
RESOLUTION # _______ - 2024

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SONOMA AUTHORIZING

THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT

WITH MATRIX CONSULTING GROUP TO DEVELOP COMPREHENSIVE FEE

STUDY, COST ALLOCATION ANALYSIS, AND NEXUS STUDY FOR IMPACT FEES WHEREAS, the City of Sonoma (“the City”) desires to update the Master Fee Schedule for all departments and prepare a full cost allocation plan to minimize the burden on taxpayers and the general fund for the provision of City services; and WHEREAS, the City desires to assess impact fees on new development to mitigate the fiscal impact on public facilities and services and cost associated with implementing the City’s General Plan and art and beautification efforts; and WHEREAS, the City circulated a Request for Proposals (“RFP”) for a comprehensive fee study from June 10, 2004 to July 10, 2024 and received two responses; and WHEREAS, based on a review of the proposals received, Matrix Consulting Group was the preferred provider.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Sonoma hereby authorizes the City Manager to execute a Professional Services Agreement with Matrix Consulting Group, Ltd. to provide the fee study, cost allocation, and nexus study services describe in the RFP in the amount not to exceed $50,000 through June 30, 2025.

PASSED, RESOLVED, AND ADOPTED, at a Regular meeting of the City Council of the City of Sonoma on this 21st day of August 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________________
John Gurney, Mayor
ATTEST:
__________________________________
Rebekah Barr, MMC, City Clerk
Agenda Item #7.6:

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PROFESSIONAL SERVICES AGREEMENT

FOR CONSULTANT SERVICES
(City of Sonoma / Matrix Consulting Group, Ltd)

1. IDENTIFICATION
This PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is entered into as of the last date indicated below by and between the City of Sonoma, a California municipal corporation (“City”), and Matrix Consulting Group, Ltd (“Consultant”) (collectively, “parties”).

2. RECITALS

2.1 City has determined that it requires the following professional services from a consultant: Update to the Master Fee Schedule, Cost Allocation Analysis, and Nexus Study for Impact Fees.

2.2 Consultant represents that it is fully qualified to perform such professional services by virtue of its experience and the training, education and expertise of its principals and employees. Consultant further represents that it is willing to accept responsibility for performing such services in accordance with the terms and conditions set forth in this Agreement.

2.3 City has relied upon the professional ability and training of Consultant as a material inducement to enter into this Agreement. Consultant shall perform in accordance with generally accepted professional practices and standards as well as the requirements of applicable federal, state and local laws, it being understood that acceptance of Consultant’s work by City shall not operate as a waiver or release. Consultant represents and warrants to City that (a) it has all licenses, permits, qualifications, insurance and approvals of whatever nature which are legally required for Consultant to practice its profession, and (b) it shall, at its sole cost, keep in effect or obtain at all times during the term of this Agreement any licenses, permits, insurance and approvals which are legally required for Consultant to practice its profession. Consultant shall indemnify and hold harmless the City from and against any and all claims or expenses caused or occasioned directly or indirectly by Consultant’s failure to so perform.

Agenda Item #7.6:

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NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, City and Consultant agree as follows:

3. DEFINITIONS

3.1 “Agreement Administrator” for this project means Prapti Aryal, Finance Director. The Agreement Administrator shall be the principal point of contact at the City for this project. All services under this Agreement shall be performed at the request of the Agreement Administrator. The Agreement Administrator will establish the timetable for completion of services and any interim milestones. City reserves the right to change this designation upon written notice to Contractor.

3.2 “Approved Fee Schedule” means such compensation rates as are set forth in Consultant’s July 10, 2024 fee schedule to City attached hereto as “Exhibit B” and fully incorporated herein by this reference. This fee schedule shall remain in effect for the duration of this Agreement unless modified in writing by mutual agreement of the parties.

3.3 “Commencement Date” means ________________.

3.4 “Consultant Project Administrator” means Khushboo Ingle. The Consultant Project Administrator will be the principal point of contact for the Consultant.

3.5 “Maximum Amount” means the highest total compensation and costs payable to Consultant by City under this Agreement. The Maximum Amount under this Agreement is Fifty Thousand Dollars ($50,000).

3.6 “Scope of Services” means such professional services as are set forth in Consultant’s July 10, 2024 proposal to City attached hereto as “Exhibit A” and fully incorporated herein by this reference.

3.7 “Termination Date” means June 30, 2025.

4. TERM
The term of this Agreement shall commence at 12:00 a.m. on the Commencement Date and shall terminate at 11:59 p.m. on the Termination Date unless extended in writing by mutual agreement of the parties or terminated earlier in accordance with Section 18 (“Termination”) below. Consultant may request extensions of time to perform the services required hereunder. Such extensions shall be effective if Agenda Item #7.6:

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authorized in advance by City in writing and incorporated in written amendments to this Agreement.

5. CONSULTANT’S SERVICES

5.1 Time is of the essence in Consultant’s performance of services under this Agreement.

5.2 Consultant shall perform the services identified in the Scope of Services.

City shall have the right to request, in writing, changes in the Scope of Services. Any such changes mutually agreed upon by the parties, and any corresponding increase or decrease in compensation, shall be incorporated by written amendment to this Agreement. In performing services under this Agreement, Consultant shall coordinate all contact with City through its Agreement Administrator. All changes and/or extra work shall be performed and paid for in accordance with the following:

5.2.1 Only the City Finance Director or City Council may authorize extra and/or changed work. Consultant expressly recognizes that other City personnel are without authorization to either order extra and/or changed work or waive contract requirements. Failure of Consultant to secure the Council’s or City Finance Director’s authorization for such extra and/or changed work shall constitute a waiver of any and all right to adjustment in the Maximum Amount due to such unauthorized work and Consultant thereafter shall be entitled to no compensation whatsoever for performance of such work.

5.2.2 If the Consultant is of the opinion that any work s/he has been directed to perform is beyond the scope of this Agreement and constitutes extra work, s/he shall promptly notify the Agreement Administrator of this opinion. The City shall make a determination as to whether or not such work is, in fact, beyond the scope of this Agreement and constitutes extra work. In the event that the City determines that such work does constitute extra work, it shall provide extra compensation to the Consultant on a fair and equitable basis. A Supplemental Agreement providing for such compensation for extra work shall be negotiated between the City and the Consultant. Such Supplemental Agreement shall be Agenda Item #7.6:

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executed by the Consultant and be approved by the City in accordance with its purchasing policy.

5.2.3 In the event City determines that such work does not constitute extra work, Consultant shall not be paid extra compensation above that provided herein and if such determination is made by City staff, this determination may be appealed to the City Council as long as a written appeal is submitted to the City Manager within five (5) days after the staff’s determination is received by the Consultant. Any written appeal shall include a description of each and every ground upon which Consultant challenges the staff’s determination. The City Council’s decision shall be final.

5.3 In no event shall the total compensation and costs payable to Consultant under this Agreement exceed the Maximum Amount unless specifically approved in advance and in writing by City. Consultant shall notify the Agreement Administrator, in writing, when fees and expenses incurred under this Agreement have reached eighty percent (80%) of the Maximum Amount payable above. Consultant shall concurrently inform the Agreement Administrator, in writing, of Consultant’s estimate of total expenditures required to complete its current assignments before proceeding, when the remaining work on such assignments would exceed the Maximum Amount payable above.

5.4 Consultant shall perform all work to the highest standards of Consultant’s profession and in a manner reasonably satisfactory to City. Consultant shall comply with all applicable federal, state and local laws and regulations, including the conflict-of-interest provisions of Government Code Section 1090 and the Political Reform Act (Government Code Section 81000 et seq.).

5.5 Consultant shall obtain and maintain in force a City business license for the term of this Agreement.

5.6 Consultant represents that it has no known relationships with third parties, City Council Members, or employees of City which would (i) present a conflict of interest with the rendering of services under this Agreement under Government Code Section 1090, the Political Reform Act (Government Code Section 81000 et seq.), or other applicable law, (ii) prevent Consultant from performing the terms of this Agreement, or Agenda Item #7.6:

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(iii) present a significant opportunity for the disclosure of confidential information.

5.7 During the term of this Agreement, Consultant shall not perform any work for another person or entity for whom Consultant was not working at the Commencement Date if both (i) such work would require Consultant to abstain from a decision under this Agreement pursuant to a conflict of interest statute and (ii) City has not consented in writing to Consultant’s performance of such work.

5.8 This Agreement is subject to Government Code Section 84308, as amended by SB 1439. That statute requires Consultant to disclose any campaign contribution by the Consultant or the Consultant’s agent to City Councilmembers or other City officials of more than two-hundred and fifty dollars ($250) in the aggregate within the preceding twelve (12) months. Consultant shall provide a signed copy of the attached Campaign Contribution Disclosure Form, Exhibit C, with Consultant’s execution of this Agreement.

5.9 Consultant’s duties and services under this Agreement shall not include preparing or assisting the City with any portion of the City’s preparation of a request for proposals, request for qualifications, or any other solicitation regarding a subsequent or additional contract with the City.

The City entering this Agreement shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project. Consultant’s participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications. Consultant shall cooperate with the City to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by contractor pursuant to this Agreement.

5.10 Consultant represents that it has, or will secure at its own expense, all personnel required to perform the services identified in the Scope of Services. All such services shall be performed by Consultant or under its supervision, and all personnel engaged in the work shall be qualified to perform such services. The Consultant Project Administrator shall have direct responsibility for management of Consultant’s performance under Agenda Item #7.6:

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this Agreement. No other person shall serve as Consultant Project Administrator without City’s prior written consent.

5.11 This Agreement covers professional services of a specific and unique nature. Except as otherwise provided herein, Consultant shall not assign or transfer its interest in this Agreement or subcontract any services to be performed without amending this Agreement.

5.12 Consultant shall be responsible to City for all services to be performed under this Agreement. All subconsultants shall be approved by the Agreement Administrator and their billing rates identified in the Approved Fee Schedule, Exhibit B. City shall pay Consultant for work performed by its subconsultants (including labor) only at Consultant’s actual cost plus an approved mark-up as set forth in the Approved Fee Schedule, Exhibit B. Consultant shall be liable and accountable for any and all payments, compensation, and federal and state taxes to all subconsultants performing services under this Agreement. City shall not be liable for any payment, compensation, or federal and state taxes for any subconsultants.

5.13 Consultant shall notify the Agreement Administrator, in writing, of any change in name, ownership or control of Consultant’s firm or of any subconsultant. Change of ownership or control of Consultant’s firm may require an amendment to the Agreement.

5.14 Prevailing Wage Notice.

5.14.1 This Agreement is subject to prevailing wage law, for all work performed under the Agreement for which the payment of
prevailing wages is required under the California Labor Code. In particular, Consultant acknowledges that prevailing wage determinations are available for the performance of inspection and survey work.

5.14.2 In the event Consultant will perform inspection services, City or authorized representatives of the City shall have the right to inspect the work of such services whenever such representatives may deem such inspection to be desirable or necessary. Inspections by the City do not in any way relieve or minimize the responsibility of Consultant to conduct the inspections Consultant has expressly agreed to perform pursuant to this Agreement. Consultant shall be Agenda Item #7.6:

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solely liable for said inspections performed by Consultant.

Consultant shall certify in writing to the City as to the completeness and acceptability of each inspection of improvement or
construction which Consultant agrees to inspect hereunder.

6. COMPENSATION

6.1 City agrees to compensate Consultant for the services provided under this Agreement and Consultant agrees to accept payment in accordance with the Approved Fee Schedule in full satisfaction for such services.

6.2 Consultant shall submit to City an invoice, on a monthly basis or less frequently, for services performed pursuant to this Agreement. Each invoice shall identify the Maximum Amount, the services rendered during the billing period, the amount due for the invoice, and the total amount previously invoiced. All labor charges shall be itemized by employee name and classification/position with the firm, the corresponding hourly rate, the hours worked, a description of each labor charge, and the total amount due for labor charges. Consultant shall include a copy of each subconsultant invoice for which reimbursement is sought in the invoice.

6.3 City shall not withhold applicable taxes or other payroll deductions from payments made to Consultant except as otherwise required by law.

Consultant shall be solely responsible for calculating, withholding, and paying all taxes.

6.4 The parties agree to meet and confer at mutually agreeable times to resolve any disputed amounts contained in an invoice submitted by Consultant.

7. OWNERSHIP OF WRITTEN PRODUCTS
All reports, documents or other written material, and all electronic files, including computer-aided design files, developed by Consultant in the performance of this Agreement (such written material and electronic files are collectively known as “written products”) shall be and remain the property of City without restriction or limitation upon its use or dissemination by City except as provided by law. Consultant may take and retain copies of such written products as desired, but no such written products shall be the subject of a copyright application by Consultant.

8. RELATIONSHIP OF PARTIES
Agenda Item #7.6:

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8.1 Consultant is, and shall at all times remain as to City, a wholly independent contractor. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise to act on behalf of City as an agent. Consultant, its officers, employees and agents shall not have any power to bind or commit the City to any decision or course of action, and Consultant, its officers, employees and agents shall not represent to any person or party that it or they are acting as agents of the City or that it or they have the power to bind or commit the City. Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as set forth in this Agreement. Consultant shall not represent that it is, or that any of its agents or employees are, in any manner employees of City.

8.2 Under no circumstances shall Consultant look to the City as its employer.

Consultant shall not be entitled to any benefits. City makes no representation as to the effect of this independent contractor relationship on Consultant’s previously earned California Public Employees Retirement System (“CalPERS”) retirement benefits, if any, and Consultant specifically assumes the responsibility for making such a determination. Consultant shall be responsible for all reports and obligations including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, workers’ compensation, and other applicable federal and state taxes.

9. CONSULTANT PROJECT ADMINISTRATOR
In performing services under this Agreement, Consultant shall coordinate all contact with City through its Agreement Administrator. City reserves the right to change this designation upon written notice to Consultant. All services under this Agreement shall be performed at the request of the Agreement Administrator, who will establish the timetable for completion of services and any interim milestones.

10. INDEMNIFICATION

10.1 The parties agree that City, its officers, agents, employees, and volunteers should, to the fullest extent permitted by law, be protected from any and all loss, injury, damage, claim, lawsuit, cost, expense, attorneys’ fees, litigation costs, taxes, or any other cost arising out of or in any way related to the performance of this Agreement. Accordingly, the parties intend the provisions of this indemnity provision to be interpreted and construed to Agenda Item #7.6:

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provide the City with the fullest protection possible under the law.

Consultant acknowledges that City would not enter into this Agreement in the absence of Consultant’s commitment to indemnify and protect City as set forth herein.

10.2 To the fullest extent permitted by law, Consultant shall indemnify, hold harmless, and when the City requests with respect to a claim provide a deposit for the defense of, and defend (with counsel satisfactory to City) City, its officers, agents, employees and volunteers from and against any and all claims, losses, costs and expenses for any damage due to death or injury to any person, whether physical, emotional, consequential or otherwise, and injury to any property arising out of or in connection with Consultant’s alleged negligence, recklessness or willful misconduct or other wrongful acts, errors or omissions of Consultant or any of its officers, employees, servants, agents, or subconsultants, or anyone directly or indirectly employed by either Consultant or its subconsultants, in the performance of this Agreement or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole active negligence or willful misconduct of the City. Such costs and expenses shall include reasonable attorneys’ fees due to counsel of City’s choice, expert fees and all other expenses of litigation.

Consultant shall not be entitled to any refund of attorneys’ fees, defense costs or expenses in the event that it is adjudicated to have been nonnegligent.

10.3 City shall have the right to offset against any compensation due Consultant under this Agreement any amount due City from Consultant as a result of Consultant’s failure to pay City promptly any indemnification arising under this Section 10 of this Agreement and any amount due City from Consultant arising from Consultant’s failure either to (i) pay taxes on amounts received pursuant to this Agreement or (ii) comply with applicable workers’ compensation laws.

10.4 The obligations of Consultant under this Section 10 of this Agreement are not limited by the provisions of any workers’ compensation or similar statute. Consultant expressly waives its statutory immunity under such statutes as to City, its officers, agents, employees and volunteers.

10.5 Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth here in Section 10 of this Agreement Agenda Item #7.6:

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from each and every subconsultant or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. If Consultant fails to obtain such indemnity obligations from others, Consultant agrees to indemnify, hold harmless and defend City, its officers, agents, employees and volunteers from and against any and all claims, losses, costs and expenses for any damage due to death or injury to any person and injury to any property resulting from any alleged intentional, reckless, negligent, or otherwise wrongful acts, errors or omissions of Consultant’s subconsultants or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. Such costs and expenses shall include reasonable attorneys’ fees incurred by counsel of City’s choice.

10.6 City does not, and shall not, waive any rights that it may possess against Consultant because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement.

This hold harmless and indemnification provision shall apply whether or not any insurance policies apply to a claim, demand, damage, liability, loss, cost or expense.

10.7 In the event that Consultant or any employee, agent, or subconsultant of Consultant providing services under this Agreement claims or is determined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of Consultant or its employees, agents, or subconsultants, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

10.8 Notwithstanding any federal, state, or local policy, rule, regulation, law or ordinance to the contrary, Consultant and any of its employees, agents, and subconsultants providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in CalPERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for CalPERS benefits.

Agenda Item #7.6:

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11. INSURANCE

11.1 During the term of this Agreement, Consultant shall carry, maintain, and keep in full force and effect insurance against claims for death or injuries to persons or damages to property that may arise from or in connection with Consultant’s performance of this Agreement.

11.2 Any available insurance proceeds broader than or in excess of the specified minimum Insurance coverage requirements or limits shall be available to City as an Additional Insured as provided below.

Furthermore, the requirements for coverage and limits shall be the greater of (1) the minimum coverage and limits specified in this Agreement, or (2) the broader coverage and maximum limits of coverage of any Insurance policy or proceeds available to the named Insured.

11.3 Insurance required under this Agreement shall be of the types set forth below, with minimum coverage as described:

11.3.1 Comprehensive General Liability Insurance written on a per occurrence basis with coverage limits of not less than Two Million Dollars ($2,000,000) per occurrence and Four Million Dollars ($4,000,000) general aggregate, including products and operations hazard, contractual insurance, broad form property damage, independent consultants, personal injury, underground hazard, and explosion and collapse hazard where applicable.

11.3.2 Automobile Liability Insurance for vehicles used in connection with the performance of this Agreement with minimum limits of Two Million Dollars ($2,000,000) per claimant and Two Million dollars ($2,000,000) per incident. Automobile liability insurance shall be evidenced by ISO Form Number CA 0001 covering Code 1 (any auto) or, if Consultant has no owned autos, Code 8 (hired) and 9 (non-owned).

11.3.3 Worker’s Compensation insurance if and as required by the laws of the State of California.

11.3.4 Professional Errors and Omissions Insurance with coverage limits of not less than One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) aggregate. In the event Consultant’s policy is a “claims made” policy only covering those Agenda Item #7.6:

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claims made during the policy period, then Consultant agrees to maintain the professional liability insurance required hereunder and with respect to this project in effect for at least three (3) years after acceptance of the work. The retroactive date of the policy must be shown and must be before the Commencement Date of this Agreement. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a retroactive date before the Commencement Date of this Agreement, the Consultant must purchase “extended reporting” coverage for a minimum of three (3) years after completion of work.

11.4 Consultant shall require each of its subconsultants to maintain insurance coverage that meets all of the requirements of this Agreement provided however, that the Agreement Administrator may waive the provision of Errors and Omissions Insurance by subconsultants in his or her sole discretion.

11.5 The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a rating of at least A:VII in the latest edition of Best’s Insurance Guide.

11.6 Consultant agrees that if it does not keep the insurance coverages required by this Agreement in full force and effect, City may either (i) immediately terminate this Agreement; or (ii) take out the necessary insurance and pay the premium(s) thereon at Consultant’s expense.

11.7 At all times during the term of this Agreement, Consultant shall maintain on file with City’s Risk Manager a certificate or certificates of insurance showing that the required coverages are in effect and naming City and its officers, employees, agents and volunteers as Additional Insureds. Prior to commencement of work under this Agreement, Consultant shall file with City’s Risk Manager such certificate(s) and Forms CG 20 10 07 04 and CG 20 37 07 04 or the substantial equivalent showing City as an Additional Insured.

11.8 Consultant shall provide proof that policies of insurance required by this Agreement expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Such proof will be furnished at least two weeks prior to the expiration of the coverages.

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11.9 The general liability and automobile policies of insurance required by this Agreement shall contain an endorsement naming City and its officers, employees, agents and volunteers as Additional Insureds. All of the policies required under this Agreement shall contain an endorsement providing that the policies cannot be canceled or reduced except on thirty days’ prior written notice to City. Consultant agrees to require its insurer to modify the certificates of insurance to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word “endeavor” with regard to any notice provisions.

11.10 The insurance provided by Consultant shall be primary to any other coverage available to City. Any insurance or self-insurance maintained by City and/or its officers, employees, agents or volunteers shall be in excess of Consultant’s insurance and shall not contribute with it.

11.11 All insurance coverage provided pursuant to this Agreement shall not prohibit Consultant, and Consultant’s employees, agents or subconsultants, from waiving the right of subrogation prior to a loss.

Consultant hereby waives all rights of subrogation against the City.

Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer. However, the Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by the Consultant, its employees, agents and subconsultants.

11.12 Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of City, Consultant shall either reduce or eliminate the deductibles or self-insured retentions with respect to City, or Consultant shall procure a bond in the amount of the deductible or selfinsured retention to guarantee payment of losses and expenses.

11.13 Procurement of insurance by Consultant shall not be construed as a limitation of Consultant’s liability or as full performance of Consultant’s duties to indemnify, hold harmless and defend under Section 10 of this Agreement.

11.14 Consultant may be self-insured under the terms of this Agreement only with express written approval from the City.

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11.14.1All self-insured retentions (SIR) must be disclosed to the City for approval and shall not reduce the limits of liability.

11.14.2Policies containing any SIR provision shall provide or be endorsed to provide that the SIR may be satisfied by either the named Insured or the City.

11.15 City reserves the right to obtain a full certified copy of any Insurance policy and endorsements. Failure to exercise this right shall not constitute a waiver of the right to exercise later.

12. MUTUAL COOPERATION

12.1 City shall provide Consultant with all pertinent data, documents and other requested information as is reasonably available for the proper performance of Consultant’s services under this Agreement.

12.2 If any claim, action, or proceeding is brought against City relating to Consultant’s performance in connection with this Agreement, Consultant shall render any reasonable assistance that City may require in the defense of that claim, action, or proceeding.

13. CONFIDENTIALITY
All data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without prior written consent by City. City shall grant such consent if disclosure is legally required. Upon request, all City data shall be returned to City upon the termination or expiration of this Agreement.

14. RECORDS AND INSPECTIONS
Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services or expenditures and disbursements charged to City under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such documents shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of City. City shall further have the right to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.

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In addition, pursuant to Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds ten thousand dollars, all such documents and this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under the Agreement.

15. PERMITS AND APPROVALS
Consultant shall obtain, at its sole cost and expense, all permits and regulatory approvals necessary for Consultant’s performance of this Agreement. This includes, but shall not be limited to, professional licenses, encroachment permits and building and safety permits and inspections.

16. NOTICES
Any notices, bills, invoices, or reports required by this Agreement shall be deemed received on: (i) the day of delivery if delivered by hand, facsimile or overnight courier service during Consultant’s and City’s regular business hours; (ii) the third business day following deposit in the United States mail if delivered by mail, postage prepaid, to the addresses listed below (or to such other addresses as the parties may, from time to time, designate in writing); or (iii) the day of delivery if emailed to the email address listed below and simultaneously deposited in the U.S. mail, postage prepaid, to the address(es) listed below (or to such other addresses as the parties may, from time to time, designate in writing).

If to City:

Prapti Aryal, Finance Director
City of Sonoma
Finance Director
No. 1 The Plaza
Sonoma, CA 95476
Telephone: (707) 938-3681
Email: [email protected]
If to Consultant:

Richard Brady, President
Matrix Consulting Group, Ltd.
1650 S Amphlett Blvd., Suite 213
San Mateo, CA 94402
Telephone: (650) 858-0507
Email: [email protected]
With courtesy copy to:

David J. Ruderman, Sonoma City Attorney
Colantuono, Highsmith & Whatley, PC
670 W. Napa Street, Suite F
Agenda Item #7.6:

Professional Services Agreement
(City of Sonoma / Matrix Consulting Group, Ltd)
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Approved for use 12/28/2023
Sonoma, CA 95476
Telephone: (707) 986-8091
Facsimile: (707) 509-7295
Email: [email protected]

17. SURVIVING COVENANTS
The parties agree that the covenants contained in Paragraph 8.2, Section 10, Paragraph 12.2, Section 13, and Section 14 of this Agreement shall survive the expiration or termination of this Agreement.

18. TERMINATION

18.1 The City may, in its sole and unfettered discretion and without cause, terminate this Agreement at any time prior to completion by Consultant of the services required. Notice of Termination of this Agreement shall be given in writing to Consultant and shall be sufficient and complete when same is emailed to Consultant and simultaneously deposited in the United States mail postage prepaid and certified, addressed as set forth in Section 16 of this Agreement. The Agreement shall be terminated upon receipt of the Notice of Termination by Consultant. If City should terminate this Agreement, the Consultant shall be compensated for all work satisfactorily performed prior to time of receipt of termination notice, and shall be compensated for materials ordered by the Consultant or his/her employees, or services of others ordered by the Consultant or his/her employees prior to receipt of Notice of Termination whether or not such materials or final instruments of services of others have actually been delivered, provided that the Consultant or its employees are not able to cancel such orders for materials or services of others. Compensation for the Consultant in the event of termination by the City shall be determined by the City Finance Director in accordance with the percentage of project completed. In the event that this Agreement is terminated pursuant to this Paragraph 18.1, Consultant shall not be entitled to any additional compensation over that provided herein; nor shall Consultant be entitled to payment for any alleged damages or injuries (including lost opportunity damages) purportedly caused by the termination of this Agreement by the City pursuant hereto.

18.2 Consultant may terminate this Agreement upon thirty (30) days written notice to the City only for good cause. Consultant’s written notice of Agenda Item #7.6:

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termination shall contain a full explanation of the facts and circumstances constituting good cause. In the event of termination, all notes, sketches, computations, drawings and specifications, or other data, whether complete or not, produced through the time of the City’s last payment shall be relinquished to the City. The City may, at its own expense, make copies or extract information from any such notes, sketches, computations, drawings, and specifications, or other data whether complete or not.

18.3 Should the Consultant fail to perform any of its obligations hereunder, within the time and in the manner provided or otherwise violate any of the terms of this Agreement, the City may terminate this Agreement by giving written notice of such termination, stating the reasons for such termination in such event. Consultant shall be compensated as above, provided, however, there shall be deducted from such amount the amount of damage if any, sustained by City by virtue of the Consultant’s breach of this Agreement.

18.4 In no event shall Consultant be entitled to receive more than the Maximum Amount that would be paid to Consultant for the full performance of the services required by this Agreement as provided in Paragraph 3.5 above and as otherwise provided in this Agreement.

19. GENERAL PROVISIONS

19.1 Consultant shall not delegate, transfer, subcontract or assign its duties or rights hereunder, either in whole or in part, without City’s prior written consent, and any attempt to do so shall be void and of no effect. City shall not be obligated or liable under this Agreement to any party other than Consultant.

19.2 In the performance of this Agreement, Consultant shall not discriminate against any employee, subconsultant, or applicant for employment because of race, color, sex (including pregnancy, childbirth, or related medical condition), creed, national origin, color, disability as defined by law, disabled veteran status, Vietnam veteran status, religion, age (40 and above), medical condition (cancer-related), marital status, ancestry, sexual orientation, or any other unlawful basis. Consultant shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to race, sex (including pregnancy, childbirth, or related medical condition), creed, national Agenda Item #7.6:

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origin, color, disability as defined by law, disabled veteran status, Vietnam veteran status, religion, age (40 and above), medical condition (cancer-related), marital status, ancestry, sexual orientation, or any other unlawful basis. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; or in terms, conditions or privileges of employment, and selection for training, Consultant agrees to post in conspicuous places, available to employees and applicants for employment, the provisions of this nondiscrimination clause.

19.3 Each party had an opportunity to consult with an attorney in reviewing and drafting this Agreement. Any uncertainty or ambiguity shall not be construed for or against any party based on attribution of drafting.

19.4 The captions appearing at the commencement of the Sections hereof, and in any paragraph thereof, are for convenience in reference to this Agreement. Should there be any conflict between such heading, and the Section or Paragraph thereof at the head of which it appears, the Section or Paragraph shall govern construction of this Agreement. Masculine or feminine pronouns shall be substituted for the neuter form and vice versa, and the plural shall be substituted for the singular and vice versa, in any place or places herein in which the context requires such substitution(s).

19.5 The waiver by City or Consultant of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of any other term, covenant or condition or of any subsequent breach of the same or any other term, covenant or condition herein contained. No term, covenant or condition of this Agreement shall be deemed to have been waived by City or Consultant unless in writing signed by one authorized to bind the party to be charged with the waiver.

19.6 Consultant shall not be liable for any failure to perform if Consultant presents acceptable evidence, in City’s sole judgment, that such failure was due to causes beyond the control and without the fault or negligence of Consultant.

19.7 Each right, power and remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise shall be cumulative and shall be in addition to every other right, power, or remedy provided for Agenda Item #7.6:

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herein or now or hereafter existing at law, in equity, by statute, or otherwise. The exercise, the commencement of the exercise, or the forbearance from the exercise by any party of any one or more of such rights, powers or remedies shall not preclude the simultaneous or later exercise by such party of any or all of such other rights, powers or remedies. If legal action shall be necessary to enforce any term, covenant or condition contained in this Agreement, the party prevailing in such action, whether or not reduced to judgment, shall be entitled to its reasonable court costs, including any accountants’ and attorneys’ fees expended in the action. The venue for any litigation shall be Sonoma County, California and Consultant hereby consents to jurisdiction in Sonoma County for purposes of resolving any dispute or enforcing any obligation arising under this Agreement.

19.8 If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, then such term or provision shall be amended to, and solely to the extent necessary to, cure such invalidity or unenforceability, and in its amended form shall be enforceable. In such event, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law.

19.9 This Agreement shall be governed and construed in accordance with the laws of the State of California.

19.10 All documents referenced as exhibits in this Agreement are hereby incorporated into this Agreement. In the event of any material discrepancy between the provisions of this Agreement and those of any document incorporated herein by reference, the provisions of this Agreement shall prevail. This instrument contains the entire Agreement between City and Consultant with respect to the transactions contemplated herein. No other prior oral or written agreements are binding upon the parties. Amendments hereto or deviations herefrom shall be effective and binding only if made in writing and executed on behalf of the City and Consultant.

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19.11 Nonprofit service contractors which receive contracts from the City of $75,000 or more in a 12-month period, and for-profit service contractors who receive contracts from the City of $10,000 or more in a 12-month period, provided they have more than six employees, may be subject to the City’s Living Wage Ordinance. Sub-contractors with $50,000 or more in annual gross receipts may also be subject to the Living Wage Ordinance. Unless otherwise exempt in accordance with the provisions of the Ordinance (Sonoma Municipal Code Chapter 2.70), this Agreement is subject to applicable provisions of the Living Wage Ordinance of the City as amended from time to time and available on the City’s website.

19.12 This Agreement may be signed in one or more counterparts, each of which shall be deemed an original, but all of which together shall be deemed one and the same instrument. The parties acknowledge and agree that this Agreement may be executed by electronic signature, which shall be considered as an original signature for all purposes and shall have the same force and effect as an original signature. Without limitation, “electronic signature” shall include faxed or emailed versions of an original signature, electronically scanned and transmitted versions (e.g., via pdf) of an original signature, or a digital signature.

19.13 This Agreement shall be binding on successors and assigns of the parties.

19.14 Except as expressly stated herein, there is no intended third-party beneficiary of any right or obligation assumed by the parties.

19.15 The recitals are incorporated by this reference.
[Signatures on following page]
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TO EFFECTUATE THIS AGREEMENT, the parties have caused their duly authorized representatives to execute this Agreement as of the last date indicated below:
“City”
City of Sonoma
By:________________________________
Signature
Printed:_____________________________
Title:_______________________________
Date:______________________
“Consultant”
Matrix Consulting Group, Ltd.

By:________________________________
Signature
Printed:_____________________________
Title:_______________________________
Date:______________________
Attest:

By:__________________________________
Rebekah Barr, MMC, City Clerk
Date:________________________
By:________________________________
Signature
Printed:_____________________________
Title:_______________________________
Date:______________________
Approved as to form:

By:__________________________________
David J. Ruderman, City Attorney
Date:________________________
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“EXHIBIT A”
Scope of Work
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Proposal for a Comprehensive Fee Study, Cost Allocation, and Nexus Study for Impact Fees Sonoma, CA Matrix Consulting Group 4
2 Approach
This section of our proposal demonstrates our project understanding and provides an overview of our approach and proposed work plan.

Project Understanding
The City of Sonoma is requesting a Comprehensive User Fee Study, Overhead Cost Allocation Analysis, and a Nexus Study for Impact Fees. The purpose of the Overhead Cost Allocation Analysis is to determine the indirect costs associated with city programs and services. It also feeds into the user fee and impact fee analysis. The purpose of the user fee study is to document the direct and indirect costs associated with fee-based city services and the impact fee study establishes the proportional impact of future development. The following chart outlines the basic process steps for conducting a cost allocation, comprehensive user fee, and development impact fee studies.

The results of the overhead analysis provide the City with documentation regarding the indirect costs associated with programs. The results of the citywide user fee study will provide the City with documentation outlining the full cost of providing fee-based services. The results of the development impact fee study will provide the City information on the impact of future development upon existing infrastructure.

Methodology and Approach
The Matrix Consulting Group works with clients of all sizes in over 45 states across the U.S. and Canada. Every project is unique but is managed according to the following essential project approach:

Review existing service providers, fees and services and infrastructure
Establish metrics, time estimates, and service level
assumptions
Calculate fully burdened hourly rates and growth impacts Conduct jurisdictional comparison for fees and impact fees Develop fee recommendations and master fee schedule
in compliance with legal regulations
Agenda Item #7.6:

Proposal for a Comprehensive Fee Study, Cost Allocation, and Nexus Study for Impact Fees Sonoma, CA Matrix Consulting Group 5
These approaches allow us to provide services to our clients that not only meet their needs and adhere to state and local guidelines but also educate staff about fees' uses and applications and provide guidance for future updates or increases.

Work Plan
The following outlines our detailed task plan to conduct the study. These scopes of work can be conducted concurrently.

Project-wide Tasks
There are three key tasks that would span all three scopes and then the tasks would vary based on each scope of work. The following tasks would be conducted for all scopes.

Task 1 Data Collection
Prior to any initial meetings, we will provide the City with a list of data requirements. This will allow our project team to review this information thoroughly in preparation for initial discussions with staff. A common list of data collection items include:
• Budgeted Expenditures per Fund and Department.
• Staffing per Fund and Department.
• List of current fees to be included in the scope.
• List of all current city owned infrastructure and equipment • Copy of City’s most recent General Plan, Land Use and Housing Elements. • Copy of any previous studies / analyses.
• List of comparable jurisdictions for the comparative analysis.

Understanding City-specific financial data.

Working collaboratively wtih City staff through meetings and workshops.

Applying industry standards, best management practices, and technical expertise for cost allocation, user fee and impact fee application.

Calculating defensible results with buy-in from internal and external stakeholders.

Providing recommendations and transferring knowledge and work products to City staff for successful implementation.

Agenda Item #7.6:

Proposal for a Comprehensive Fee Study, Cost Allocation, and Nexus Study for Impact Fees Sonoma, CA Matrix Consulting Group 6
These items will allow our project team to familiarize themselves with the City’s structure.

Task 2 Study Objectives and Project Schedule
Once the data has been collected, the project team will then meet with City staff to discuss any issues identified by the project team, as well as to clarify any existing issues or concerns held by the City regarding the current user fee study and impact fee study methodology. Discussions will include:
• Review of the City’s specific needs and critical issues surrounding development and implementation of the overhead allocation, user fee, and impact fee study. • Opportunities for improvement and restructuring of previous fee analyses. • Discussion of cost recovery goals, as well as infrastructure needs for the City.

At the culmination of the meeting, the project team and the designated City staff will leave with a greater understanding of the overall approach and methodology that will be taken by the project team to conduct the comprehensive fee and impact fee study for the City.

Task 3 Excel-Based Model and Training
The City wishes to have the ability to update the final version of the cost allocation and fee studies, including the ability to add, revise or remove costs or service types, as well as update assumptions regarding any fee changes. Our technical models would provide the ability for the City to adapt and continuously update each study annually.

While the models are structured in Excel, the technical models are proprietary and for internal use by City staff only. By having our model based in Excel, the requirements for software training, new software, updates, licensing, or other support, are minimized.

After the final draft of the cost allocation plan and user fee study is approved, the project team would meet with, and train designated City employees on use of requested models.

Staff will be provided with training that includes: a User’s Manual which explains key concepts, defines basic terms, includes a customized updated checklist of data that needs to be entered, and discusses different scenario options (e.g., adding new central services, removing receivers, etc.), as well as instruction tabs for the Fee Models.

Cost Allocation Plan Tasks
The City of Sonoma is requesting the development of a Cost Allocation Plan to capture the indirect costs associated with direct programs and services. The results of this plan will provide the City with the direct and indirect costs associated with operations, as well as fully burdened hourly rates. The tasks to be conducted are described below.

Agenda Item #7.6:

Proposal for a Comprehensive Fee Study, Cost Allocation, and Nexus Study for Impact Fees Sonoma, CA Matrix Consulting Group 7
Task 1 Interview Staff and Gather Allocation Metrics
The project team would review the City’s budget and financial structure to identify City departments and services to be allocated. To structure a custom cost allocation model, our project team would perform the following:
• Review and discuss the accounting (fund and organizational levels) structure of the City based on budgeted expenditures to identify any anomalies. • Identify and meet specific central services departments to develop allocation bases and ensure that the plan reflects the following aspects:
- All current services provided by the Department are identified and documented within the Cost Allocation Plan.
- Allocation bases discussed to be utilized are reflective of the current level of effort and most relatable to the service being performed. • Discuss alternative allocations, including outcomes and potential impacts.

The points above provide examples of the types of detailed and in-depth discussions that the project team will have with City departments involved in the cost allocation process.

At this point in the process, the project team would reach out to each department and ask for specific allocation metrics such as purchase orders, invoices, sq. ft. per facility, etc.

Task 2 Review of Draft Cost Allocation Metrics
Based on the units of service identified in Task 1 and the allocation metrics collected, the project team would put together allocation workbooks for review with central service departments. The purpose of these workbooks is to review the initial results of the allocation metrics. The following graphic shows an example of the allocation workbook:

Fund Dept Desc
# of AR Transactions
per Fund/Dept Allocation %
1 10 City Manager 3 0.87%
1 16 Human Resources 30 8.75%
1 20 City Attorney 30 8.75%
1 30 Police 68 19.83%
1 35 Fire 1 0.29%
1 40 Development Services 7 2.04%
1 50 Public Works Streets 5 1.46%
1 50 Public Works Facilities 1 0.29%
1 50 Public Works Community Services 185 53.94%
10 Water 1 0.29%
14 Sewer 8 2.33%
29 Self-Insured Liability Fund 4 1.17%
TOTAL 343 100.00%
Agenda Item #7.6:

Proposal for a Comprehensive Fee Study, Cost Allocation, and Nexus Study for Impact Fees Sonoma, CA Matrix Consulting Group 8
In the sample graphic provided, based on the number of AR Transactions per fund/department, the primary support is for Public Works Community Services (54%) for all the Parks and Recreation transactions, followed by Police (20%). Based upon the results of this sample, the project team would verify with Finance that the statistics were allocated to the appropriate fund/department and that the resulting percentage is reflective of the support being provided by the Accounts Receivable staff and function.

This type of detailed review is critical for the development of a defensible cost allocation plan. It also ensures that departmental staff and City staff are comfortable with the use of the allocation metrics and the support that those metrics represent.

Task 3 Structure and Prepare Draft Full Cost Allocation Plan Once the central service departments and administrative functional areas have agreed upon, the appropriate allocation metrics for services, allowable administrative or other indirect costs are allocated to each benefiting department, operating unit, or fund. At this point the project team would begin customizing the Cost Plan to ensure methodologies and assumptions comply with Federal regulations and general accounting principles.

During the development of the cost allocation plan, the project team will ensure that any expenses included in the plan are vetted and reviewed with Finance staff, as well as incorporate any direct reimbursements. The results of the draft cost allocation plan will be provided to staff in numerical format in Excel prior to the development of a draft report.

Task 4 Finalize the Cost Allocation Plan
Upon review and approval of the draft cost plan by central service departments and the Finance Department, the project team will finalize the Cost Allocation Plan and report.

The final deliverables associated with the Cost Allocation Plan will be:
• Cost allocation plan report: including all detailed allocation schedules, cost schedules, summary schedules, and narrative information regarding the central services included.
• Excel summary schedule: the results of the full cost allocation plan in Excel format for ease of calculations, incorporation into City documents, and review by staff.

This type of final work product ensures that information is available in a variety of formats for City staff to use. The detailed report serves as backup documentation; whereas the excel results can be input into budget documents.

Comprehensive User Fee Study Tasks
The City of Sonoma would like to review all of its fees for service (excluding Fire, which is set by a separate entity). The purpose of these studies is to ensure that all direct and Agenda Item #7.6:

Proposal for a Comprehensive Fee Study, Cost Allocation, and Nexus Study for Impact Fees Sonoma, CA Matrix Consulting Group 9
indirect costs are captured and any changes in services and service levels are documented through the master fee schedule. The following tasks provide an overview of the level of detail utilized to conduct the comprehensive fee study.

Task 1 Develop a Schedule of Current and Potential Fees for Service The project team will work with staff to review their current fee schedules in line-item detail. This meeting is critical in ensuring staff can incorporate any updates or changes to the fee study based on code, regulation, staffing, process, or technological changes.

The focus of this meeting will be the following:
• Renaming fees: Rewording or renaming fees to identify services more clearly. • Eliminating fees: Removing any outdated services or fees. • Adding new fees: Capturing any new services or breaking out existing fee categories to identify all the services being provided by City staff more clearly and identify potential fees for services that the City would like to provide. • Recategorization of fees: Collapsing or expanding multiple fee ranges to better capture the services provided. For example, eliminate lot ranges or acreages if those do not impact the review amount, but add categories based upon the approval level (i.e., Commission vs. Director level).

It is important to note that this meeting occurs first to ensure that any significant proposed structural changes are captured prior to collecting time estimate information or developing draft fee results. However, there is the ability to make future adjustments.

Task 2 Conduct Time Data Gathering Workshops
The project team will conduct workshops to gather time estimates for each service included in the study, interview key personnel from each department, and analyze the various activities being performed. Below is an example of the steps involved in permit processing and the time associated with each step.

Basic process steps in application/permit processing will be documented and provided in detail for each department/division represented in the study. Our team will minimize the impact on staff by incorporating any baseline assumptions from prior city studies.

The project team will conduct multiple time estimate workshop(s) for each department / division included in the study, and the workshop results will be Excel-based workbook(s) Intake
Permit Tech:
15 mins
Routing
Permit Tech:
10 mins
Initial Review
Plan Checker:
1 hour
Final Review
Plan Checker:
30 mins
Issue Permit
Permit Tech:
15 mins
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Proposal for a Comprehensive Fee Study, Cost Allocation, and Nexus Study for Impact Fees Sonoma, CA Matrix Consulting Group 10
that staff can review. Staff will be provided time for any edits or comments on time estimate information.

Task 3 Develop Fully Burdened Hourly Rates
Based on the City’s staffing and budget information, the project team will calculate fully burdened hourly rates, including direct and indirect costs. The following points highlight the cost components and factors included in fully burdened rates:
• Direct costs: This component accounts for salary and benefits associated with each employee or position and reflects City staffing and salary reports. • Indirect costs - Departmental: This component accounts for administrative and management support provided to line-level staff, as well as operational services and supplies that are used in the execution of job duties. This cost component is developed through interviews with staff and an analysis of budgets. • Indirect costs - Citywide: This component accounts for citywide support such as Finance, HR, and Attorney support provided by other departments. This would be calculated based on the overhead analysis.

Once the cost components have been documented and developed, the project team will review MOUs and talk with departmental staff to determine appropriate productive hour calculations. These reduced available hours will ensure fully burdened hourly rates account for leave accruals (holiday, vacation, and sick) and any meetings or training.

Task 4 Perform Total Cost Analysis
The Matrix Consulting Group’s costing model is built based on the City’s operations, budget details, and intended uses for the results. This method is a customized approach specific to each jurisdiction for cost analysis of user fee services. It is a “bottom-up” approach, the most defensible methodology for calculating user fees. The methodology incorporates the time estimate information and fully burdened hourly rate information.

The following graphic shows the cost calculation:

This costing method uses time and annual activity level data to establish the cost of providing services on both a unit and an annual level. Once the time spent for a fee activity Time
Estimate
Fully
Burdened
Rate
Full Cost
Fee
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Proposal for a Comprehensive Fee Study, Cost Allocation, and Nexus Study for Impact Fees Sonoma, CA Matrix Consulting Group 11
is determined for each individual or position, the team uses its fee and rate software to apply the fully burdened hourly rates calculated in the previous task.

Resulting costs are presented on a unit and annual level and are compared to the existing fee schedule and revenue reports. The City will obtain detailed information regarding cost recovery surpluses and deficits on both a detailed (per unit) and global (annualized) level, as well as an understanding of cost components for each service.

Task 5 Conduct a Market Rate Survey
We will work with the City to identify jurisdictions in Sonoma County or the region more generally to conduct a comparative survey of fees. This comparative survey will include:
• Developing fee scenarios for each department included in the study to be compared to other jurisdictions.
• Graphing the results of the fee analysis for easy visual comparison purposes. • Collecting contextual information such as population size, budget, staffing, last time fee study was done, and last fee schedule update.

As market surveys do not provide adequate or objective information about the relationship between a jurisdiction’s costs and fees, these steps ensure we provide the City with the most information possible.

Task 6 Review / Revise Fee Study Results
Because the analysis of service fees is based on estimates and information provided by City staff, all participants must be comfortable with our methodology and the data they have provided. Once the department agrees that the analysis reflects the reasonable costs of providing services, City management can review the results. At this point, the project team will provide City staff with Recommended Fee Workbooks. The Recommended Fee Workbooks will provide departments / divisions with the fee study results in MS Excel. The following shows an example of the workbook:

Current - Per Unit Results
Fee Title Current Fee Total Cost
Surplus/(Deficit)
Per Unit
Cost Recovery
%
Lot Line Adjustment $900 $1,557 ($657) 58%
Temporary Use Permit $40 $325 ($285) 12%
Recommended Fee
Fee Title
Recommended
Fee
$ Change to
Recommended
Fee
% Change to
Recommended Fee
Recommended
Fee Cost
Recovery %
Lot Line Adjustment $1,200 $300 33% 77%
Temporary Use Permit $100 $60 150% 31%
Agenda Item #7.6:

Proposal for a Comprehensive Fee Study, Cost Allocation, and Nexus Study for Impact Fees Sonoma, CA Matrix Consulting Group 12
Recommended Fee Annual
Fee Title Workload
Revenue at
Current Fee
Revenue at
Recommended Fee
Potential
Change in
Revenue
Lot Line Adjustment 4 $3,600 $4,800 $1,200
Temporary Use Permit 60 $2,400 $6,000 $3,600
TOTAL $6,000 $10,800 $4,800
As the graphic indicates, the recommended fee workbook allows the City to input information into the Recommended Fee column and see its impacts, such as the dollar increase, percentage increase, and what percentage of their current costs they will recover. Additionally, the workbook allows the City to calculate potential increases or declines in revenue because of the recommended fees.

Task 7 Prepare a Draft User Fee Study Report
Upon conclusion of the fee study, we will prepare a detailed report summarizing the results of each of the previous work tasks described above. This report will include:
• A concise executive summary discussing the study, methodology, results, and narrative describing the services included in the study. • A section on proposed modifications to the current fee schedule, including removal or addition of new fees for service.
• A section on per unit and annual results for each fee is included in the analysis, as well as where workload data is available.
• A comparative survey section outlining key fees, their comparison to other local jurisdictions, and contextual information regarding budget and staffing.

The draft report will be provided to City staff for comments.

Task 8 Finalize Fee Study Report
Any edits or revisions to the draft user fee study report will be incorporated into the finalized fee study report. This finalized fee study report will include all elements of the draft fee study report and any additional cost recovery considerations and policy considerations for the City Council’s review.

Task 9 Master Fee Schedule
Once the final user fee study report is approved, the project team will help the City update its master fee schedule. This attachment is extremely helpful as part of the staff report provided to the Council upon adoption.

Agenda Item #7.6:

Proposal for a Comprehensive Fee Study, Cost Allocation, and Nexus Study for Impact Fees Sonoma, CA Matrix Consulting Group 13
Task 10 Present the Final Report to Key Stakeholders
The presentation of results to City officials and/or stakeholders is critical to the success of the overall engagement. Because the product from the study is often controversial, the objective of this final step is to present a succinct summary that provides decision makers with key information. The Matrix Consulting Group will attend and present the study at up to three (3) Committee or Council meetings, including any fee adoption hearings. We believe that these number of meetings is typically sufficient to ensure that there is buy-in from the stakeholders.

Development Impact Fee Study Tasks
Any Development Impact Fees established by the City will need to follow AB1600, Government Section Code 66000 of the Mitigation Fee Act, and the newly implemented AB602. Conducting a Development Impact Fee Study will help the City calculate the appropriate nexus and maximum allowable impact fees for the City. To better assist the City in accomplishing this study, effectively and cost efficiently, the project team is proposing a two-phased approach to conducting this study.

Phase 1 would evaluate if there is a nexus that exists between projected development and the need for additional infrastructure to meet existing service levels. Impact fees cannot be used to burden the share of augmented service levels on new development. If Phase 1 results in there being a nexus, then the project team will transition to Phase 2, which will be the calculation and implementation of the impact fees.

The following tasks provide our workplan for both phases of the study.

Phase 1 – Nexus Consideration
Task 1 Review of Impact Fees
The purpose of this task is to develop an initial understanding of the City’s proposed impact fee structure, projected growth levels, and any future developments that will impact that population growth. During this phase, the project team will document the following:
• Name of Proposed Impact Fee
• Municipal Ordinance / Resolution authorizing the fee
• Capital or Master Plan to support the fee
• Purpose of the fee
Agenda Item #7.6:

Proposal for a Comprehensive Fee Study, Cost Allocation, and Nexus Study for Impact Fees Sonoma, CA Matrix Consulting Group 14
This documentation will be critical to ensuring that any updates to the Impact fee program comply with AB1600 and AB602. This documentation will serve as the basis for the project team’s discussion with city staff on next steps for evaluating impact fees.

Task 2 Projected Population Growth and Facility Needs
The key component of any impact fee analysis is determining the proportionality and nexus that exists based upon projected development. During this task, the project team will conduct research based upon regional forecasted growth as well as internal City staff (Planning) expected growth to determine future population projection.

Based upon that future population projection, the project team would review the City’s current infrastructure inventory and determine if there is any need for additional equipment or new facilities. The project team will also meet with staff to identify any master plans in existence at the time of the creation / development of impact fees. This will require meeting with relevant City department staff to review all equipment and identifying the quantity and cost estimates for these items.

Impact fees cannot be used to enhance existing service levels, only maintain current service levels. During this task, the project team will ensure that for defensibility purposes any new facilities or equipment identified are directly correlated to population increases.

If Phase 1 results in a nexus finding, the project team will move to Phase 2. If there are no nexus findings, the project team will provide the City with documentation outlining the reasons why Development Impact Fees cannot be established and any future scenarios that could occur that would allow the City to implement Impact Fees.

Phase 2 – Impact Fee Analysis
Task 3 Draft Impact Fee Analysis
The largest proportion of the impact fee analysis is the growth and facilities projection.

Once that task is completed and a nexus can be established that is based upon City adopted master plans the project team will work on calculating the draft impact fees.

There are two components to the calculation of impact fees: the total cost of facilities and their cost basis. The following points describe these components:
• Total Cost of the Facilities/Infrastructure: There are three different subcomponents that comprise the maximum cost of the facilities that can be used for the calculation of impact fees: cost of facilities/infrastructure, administrative cost, and offsetting credits/revenues.
• Cost Basis: There are several different cost bases that can be used for the calculation of impact fees, such as population, housing units, workload, etc.

Agenda Item #7.6:

Proposal for a Comprehensive Fee Study, Cost Allocation, and Nexus Study for Impact Fees Sonoma, CA Matrix Consulting Group 15
Based on data provided by the City, as well as appropriate and preferred cost bases, and State law, the project team will calculate the draft Impact Fees. The project team will meet with City staff to review these draft impact fees based upon land use type.

Task 4 Comparative Impact Fee Survey
The project team will conduct a comparison of the full cost of Impact Fees and the recommended Impact Fee to other jurisdictions in Sonoma County or the region more generally. This comparison will be conducted based upon construction project types, (i.e., new single-family home, new hotel, new multi-family, etc.). The use of construction scenarios provides staff with a comparison of the impact of the fee upon future development.

Task 5 Draft Impact Fee Report
The draft impact fee results and comparative survey will be incorporated into a draft impact fee report. The draft impact fee report will have the following components:
• Executive Summary: Providing a brief overview of the background of the scope, the overall methodology, the results of the analysis, and the implementation guidelines (including future fee increases).
• Legal Framework: This will outline the current legal requirements for impact fees, and how the proposed impact fee will meet these requirements. • Growth Projections: This section of the report outlines the growth projections. • Impact Fee Analysis: This section demonstrates the calculation used to derive the full cost of the impact fees, as well as the recommended fees by the City. • Comparative Survey: This section outlines how the City’s calculated and recommended fees compare to other jurisdictions.

These components will result in a consolidated draft report that will be distributed City staff for review. It will be required to be reviewed by all the different departments to ensure that assumptions are presented accurately.

Task 6 Final Report
Based upon City staff comments, the project team will revise the Final Report to ensure all comments and concerns are captured. This final report will serve as the basis for presentations to internal and external stakeholders.

Agenda Item #7.6:

Proposal for a Comprehensive Fee Study, Cost Allocation, and Nexus Study for Impact Fees Sonoma, CA Matrix Consulting Group 16
Task 7 Delivery of Impact Fee Backup Documentation
Unlike other cost of services analyses, the components of an impact fee should not be updated annually, as it is primarily based upon population projections and timeframes associated with replacement of existing facility and equipment inventory and / or acquiring new facilities or inventory.

When discussing the draft impact fee results with City staff, the project team will share the initial Excel workbook showing calculations, and at the conclusion of the study, the project team will provide the City with the backup workbook showing all calculations.

In this workbook, the project team would also set up a template allowing the City to update its impact fees based upon a cost factor. The industry standard for updating impact fees is based upon the construction cost index (CCI). This standard is used as the costs for impact fees are based upon infrastructure rather than labor or material costs.

Task 8 Present the Final Report to Key Stakeholders
The presentation of results to City officials and/or stakeholders is critical to the success of the overall engagement. Because the product from the study is often controversial, the objective of this final step is to present a succinct summary that provides decision makers with key information. The Matrix Consulting Group will attend and present the study at up to three (3) Committee or Council meetings, including any fee adoption hearings. We believe that these number of meetings is typically sufficient to ensure that there is buy-in from the stakeholders.

Project Schedule
The following table shows a proposed 6-month project schedule on a task-by-task basis.

Tasks 1 2 3 4 5 6 6+
Project Wide Tasks
Data Collection
Study Objectives/Project Schedule
Excel-Based Models/Training
Cost Allocation Plan Tasks
Interview Staff/Gather Metrics
Review Draft Metrics
Draft Report
Prepare Final Report
User Fee Study Tasks
Current & Potential Fees
Data Workshops
Agenda Item #7.6:

Proposal for a Comprehensive Fee Study, Cost Allocation, and Nexus Study for Impact Fees Sonoma, CA Matrix Consulting Group 17
Tasks 1 2 3 4 5 6 6+
Fully Burdened Hourly Rates
Total Cost Analysis
Comparative Survey
Review/Revise Results
Draft Fee Study Report
Prepare Final Report
Update Master Fee Schedule
Presentation
Development Impact Fee Study
Phase 1 Review of Impact Fees
Projected Growth & Needs
Phase 2 Draft Fees Analysis
Comparative Survey
Draft Report
Final report
Backup Documentation
Presentation
The above timeline is for completing the analysis, development of implementation options. Presentations, Excel-based models and training, as well as backup documentation would be available after project completion.

Agenda Item #7.6:

336531.1
“EXHIBIT B”
Approved Fee Schedule
See “Exhibit A”
Agenda Item #7.6:

Proposal for a Comprehensive Fee Study, Cost Allocation, and Nexus Study for Impact Fees Sonoma, CA Matrix Consulting Group 24
4 Fee Schedule
Principalin-ChargeProject
Mgr.

Analysts
(3)
Total
Cost
Project-wide Tasks
Data Collection 0 2 2 $800
Study Objectives/Project Schedule 2 2 0 $1,100
Excel-Models/Training 0 2 4 $1,100
Subtotal Project-Wide Tasks 2 6 6 $3,000
Cost Allocation Plan Tasks
Interview Staff/Gather Metrics 0 2 4 $1,100
Review Draft Metrics 0 4 4 $1,600
Draft Report 0 2 6 $1,400
Prepare Final Report 2 2 2 $1,400
Subtotal CAP Tasks 2 10 16 $5,500
Comprehensive User Fee Tasks
Current & Potential Fees 0 2 4 $1,100
Data Workshops 0 4 6 $1,900
Fully Burdened Hourly Rates 0 4 6 $1,900
Total Cost Analysis 2 4 12 $3,400
Comparative Survey 0 4 8 $2,200
Review/Revise Results 0 4 12 $2,800
Draft Fee Study Report 0 4 8 $2,200
Prepare Final Report 2 2 4 $1,700
Develop Master Fee Schedule 0 0 4 $600
Presentation 4 2 0 $1,700
Subtotal Comprehensive Fee Study Tasks 8 30 64 $19,500
Development Impact Fee Study Tasks
Review of Impact Fees 0 4 0 $1,000
Projected Growth and Needs 0 4 0 $1,000
Phase I Subtotal 0 8 0 $2,000
Draft Fee Analysis 2 10 20 $6,100
Comparative Survey 0 2 8 $1,700
Draft Report 4 10 16 $6,100
Final report 2 4 8 $2,800
Backup Documentation 0 2 4 $1,100
Presentation 4 4 0 $2,200
Phase II Subtotal 12 32 56 $20,000
Subtotal Development Impact Fee Study Tasks 12 40 56 $22,000 Total Hours 24 86 142
Hourly Rate $300 $250 $150
Total Professional Fees $7,200 $21,500 $21,300 $50,000
Total Project Cost $50,000
Agenda Item #7.6:

Proposal for a Comprehensive Fee Study, Cost Allocation, and Nexus Study for Impact Fees Sonoma, CA Matrix Consulting Group 25
This price is a fixed not-to-exceed price contract, inclusive of all travel and any other expense costs. Our typical practice is to bill for hours worked monthly. If any additional services are required, they would be billed at the hourly rates noted.

If the City does not meet the nexus requirements to trigger Phase II analysis, the total fixed price contract for the City would be $30,000.

The Matrix Consulting Group is committed to helping our clients develop accurate and defensible cost-of-service methodologies and ensure that they can implement the results of these studies appropriately. Our project team will work with City staff to facilitate an understanding of the results and how to incorporate those results into budget and policy documents, informational handouts, and other City materials.

Our client support continues after a final report has been issued. We understand that questions can arise well after project completion and are committed to working with our clients to answer any questions about methodologies and applications of results. This support is provided to our clients at no extra cost.

Agenda Item #7.6:

336531.1
“EXHIBIT C”
Campaign Contribution Disclosure Form
Agenda Item #7.6:

336531.1

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 and
returnedtothe Citywithyourapplication.

1. No City Councilmember or other City official shall accept, solicit, or direct a campaign contribution of more than $250 from any party1 or agent2 for 12 months after the
City approves a contract. This prohibition commences
when an application is filed, or a proceeding is otherwise initiated.

2. A party to a City proceeding shall disclose on the record of the proceeding any campaign contribution of more than $250 by a party or agent to any City Councilmember or other City official during the preceding 12 months. No party to a City proceeding, or agent, shall make a campaign contribution to a City Councilmember or other City official during a proceeding and for 12 months after the City approves a
contract.

3. A City Councilmember or other City official who received a campaign contribution of more than $250 within the
preceding 12 months from any party, or agent, to a
proceeding shall disclose that fact on the record of the proceeding, and shall abstain from participating in the proceeding. However, if he or she returns the portion of a campaign contribution in excess of $250 within 30 days of knowing about the contribution and the relevant
proceeding, he or she may 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 in connection with a proceeding. If an individual acting as an agent also is acting as an employee or member of
a law, architectural, engineering, or consulting firm, or a similar entity or corporation, both the individual and the entity or corporation are agents. When a closed
corporation is a party to a proceeding, the majority
shareholder is subject to these provisions.

To determine whether you or your agent made a campaign
contribution of more than $250 to a City Councilmember or other City official within the preceding 12 months, you must aggregate all such contributions.

Names of current City Councilmembers and other City officials 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 City Councilmember or other City official within the preceding 12 months:

1. ____________________________________

2. ____________________________________

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

Date Amount $
Date Amount $
(c) Name of City Councilmember or other City official to whom contribution was made:

1. ____________________________________

2. ____________________________________

3. ____________________________________
(d) □ Check here If no contributions have been made to any Councilmember or other City official in the preceding 12 months.
(e) I certify that the above information is provided to the best of my knowledge.

Printed Name
Signature
Date Phone
Agenda Item #7.6:

City of Sonoma
Agenda Item Summary
Meeting: City Council - 21 Aug 2024
Department
Administration
Staff Contact
David Guhin, City Manager, Rebekah Barr,
MMC, City Clerk
Agenda Item Title
Adopt a Resolution of Intention to Renew the Sonoma Tourism Improvement District (STID) Summary
The Sonoma Tourism Improvement District (STID) is a benefit assessment district proposed to continue a revenue source to help fund marketing and sales promotion efforts for the City of Sonoma (City) lodging businesses. This approach has been used successfully in other destination areas throughout the state to improve tourism and drive additional room nights to assessed lodging businesses. The renewed STID includes all lodging businesses, existing and in the future, available for public occupancy located within the boundaries of the City of Sonoma.

Lodging business owners decided to pursue renewal of the STID in order to continue a revenue source devoted to marketing Sonoma as a tourist, meeting and event destination. If renewed, the STID would generate approximately $1,000,000 on an annual basis for promotion of travel and tourism specific to the City.

TOURISM IMPROVEMENT DISTRICTS
Tourism Improvement Districts (TIDs) utilize the efficiencies of private sector operation in the market-based promotion of tourism. These special assessment districts allow lodging business owners to organize their efforts to increase tourism. Lodging business owners within the TID fund the TID, and those funds are used to provide services that are desired by and benefit the lodging businesses within the TID.

TID benefits:
 Funds cannot be diverted for other government programs;  They are customized to fit the needs of each destination;  They allow for a wide range of services; including: destination marketing, tourism promotion, and sales lead generation;
 They are designed, created and governed by those who will pay the assessment; and  They provide a stable funding source for tourism promotion.

In California, TIDs are primarily formed pursuant to the Property and Business Improvement District Law of 1994 (94 Law). This law allows for the creation of special benefit assessment districts to raise funds within a specific geographic area. The key difference between TIDs and other special benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the TID.

MANAGEMENT DISTRICT PLAN
Agenda Item #7.7:

The Management District Plan (Attachment 1) includes the proposed boundary of the STID, a service plan and budget and a proposed means of governance. The STID will include all lodging businesses, existing and in the future, available for public occupancy within the boundaries of the City of Sonoma.

The annual assessment rate is two percent (2%) of gross short-term sleeping room rental revenue. Assessments will not be collected on: stays of more than thirty (30) consecutive days, stays by federal or state employees on official business, nor on stays by any officer or employee of a foreign government on official business.

The renewed STID will have a ten (10) year term, beginning July 1, 2025, or as soon as possible thereafter, and ending ten (10) years from its start date. The assessment will be implemented beginning July 1, 2025. Once per year beginning on the anniversary of STID renewal there is a thirty (30) day period in which business owners paying fifty percent (50%) or more of the assessment may protest and begin proceedings to terminate the STID.

The City of Sonoma (City) will be responsible for collecting the assessment on a monthly basis from each lodging business located in the STID boundaries. The City shall forward the assessments to the Sonoma Tourism Improvement District Corporation, which will have the responsibility of managing STID programs as provided in this Management District Plan. The City shall be paid a fee equal to one percent (1%) of the amount of assessment collected to cover its costs of collection and administration.

STID RENEWAL PROCESS
August 21, 2024RESOLUTION OF INTENTION HEARING
Upon the submission of a written petition, signed by the business owners in the renewed district who will pay more than fifty percent (50%) of the assessments proposed to be levied, the City Council may initiate proceedings to renew a district by the adoption of a resolution expressing its intention to renew a district.

Petition Status: Petitions in favor of STID renewal were submitted by lodging businesses, which represent over 50% of the total STID assessment. This majority petition allows the Council to initiate proceedings for STID renewal at the August 21, 2024 meeting.

August 30, 2024NOTICE
The 94 Law requires the City to mail written notice to the owners of all businesses proposed to be within the STID. Mailing the notice begins a mandatory forty-five (45) day period in which owners may protest STID renewal.

September 18, 2024PUBLIC MEETING
Allow public testimony on the renewal of the STID and levy of assessments. No City Council action required.

November 6, 2024FINAL PUBLIC HEARING
If written protests are received from the owners of businesses in the renewed STID which will pay fifty percent (50%) or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than fifty percent (50%), no further proceedings to levy the proposed assessment against such businesses shall be taken for a period of one (1) year from the date of the finding of a majority protest by the City Council.

Agenda Item #7.7:

If the City Council, following the public hearing, decides to establish the renewed STID, the City Council shall adopt a resolution of formation.

Recommended Council Action
Adopt the resolution.

Alternative Actions
Council discretion.

Financial Impact
None immediately. The City will receive a fee of one percent (1%) of the amount collected to cover its costs of administration. Because the STID programs are intended to increase visitation to the City, there may be an increase in transient occupancy tax and sales tax collections.

Environmental Review Status
Environmental Impact Report
Negative Declaration
Exempt
Not Applicable
Approved/Certified
No Action Required
Action Requested
Attachments
Resolution - TID
STID Management District Plan
Signed Petitions
Sonoma TID Notice
Alignment with Council Goals:

Not Applicable
Agenda Item #7.7:

City of Sonoma
RESOLUTION # _______ - 2024

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SONOMA DECLARING ITS

INTENTION TO RENEW THE SONOMA TOURISM IMPROVEMENT DISTRICT (STID) AND

FIXING THE TIME AND PLACE OF A PUBLIC MEETING AND A PUBLIC HEARING

THEREON AND GIVING NOTICE THEREOF
WHEREAS, the City of Sonoma (City) created the STID on June 18, 2012 for a three (3) year term by Resolution #24-2012; and
WHEREAS, the STID was subsequently renewed in October 2014 for a ten (10) year term which ends on June 30, 2025 by Resolution #50-2014; and WHEREAS, the Property and Business Improvement Law of 1994, Streets and Highways Code § 36600 et seq., authorizes the City to renew business improvement districts for the purposes of promoting tourism; and
WHEREAS, the Sonoma Tourism Improvement District Corporation (STIDC), lodging business owners, and representatives from the City have met to consider the renewal of the STID; and
WHEREAS, the STIDC has drafted a Management District Plan (Plan) which sets forth the proposed boundary of the STID, a service plan and budget, and a proposed means of governance; and
WHEREAS, the renewed STID includes all lodging businesses, existing and in the future, available for public occupancy located within the boundaries of the City of Sonoma; and WHEREAS, lodging business who will pay more than fifty percent (50%) of the assessment under the STID have petitioned the City Council to renew the STID.

NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL THAT:

1. The recitals set forth herein are true and correct.

2. The City Council finds that lodging businesses that will pay more than fifty percent (50%) of the assessment proposed in the Plan have signed and submitted petitions in support of the renewal of the STID. The City Council accepts the petitions and adopts this Resolution of Intention to renew the STID and to levy an assessment on all lodging businesses existing and, in the future, available for public occupancy located within the STID boundaries in accordance with the Property and Business Improvement District Law of 1994.

3. The City Council finds that the Plan satisfies all requirements of Streets and Highways Code §36622.

4. The City Council declares its intention to renew the STID and to levy and collect assessments on all lodging businesses, existing and in the future, available for public occupancy within the STID boundaries pursuant to the Property and Business Improvement District Law of 1994.

5. The STID shall include all lodging businesses, existing and in the future, available for public occupancy located within the boundaries of the City of Sonoma, as shown in the Agenda Item #7.7:

map attached as Exhibit A.

6. The name of the district shall be the Sonoma Tourism Improvement District (STID).

7. The annual assessment rate is two percent (2%) of gross short-term sleeping room rental revenue. Assessments will not be collected on stays of more than thirty (30) consecutive days, stays by federal or state employees on official business, nor on stays by any officer or employee of a foreign government on official business.

8. The assessments levied for the STID shall be applied toward sales and marketing programs to market assessed lodging businesses in the City as tourist, meeting, and event destinations, as described in the Plan. Funds remaining at the end of any year may be used in subsequent years in which STID assessments are levied as long as they are used consistent with the requirements of this resolution and the Plan.

9. The renewed STID will have a ten (10) year term, beginning July 1, 2025, or as soon as possible thereafter, and ending ten (10) years from its start date, unless renewed pursuant to Streets and Highways Code § 36660.

10. Bonds shall not be issued.

11. The time and place for the public meeting to hear testimony on establishing the STID and levying assessments are set for September 18, 2024, at 6:00 PM, or as soon thereafter as the matter may be heard, at the Council Chambers located at 177 First Street West, Sonoma, CA 95476.

12. The time and place for the public hearing to establish the STID and the levy of assessments are set for November 6, 2024, at 6:00 PM, or as soon thereafter as the matter may be heard, at the Council Chambers located at 177 First Street West, Sonoma, CA 95476. The City Clerk is directed to provide written notice to the lodging businesses subject to assessment of the date and time of the meeting and hearing, and to provide that notice as required by Streets and Highways Code § 36623, no later than August 30, 2024.

13. At the public meeting and hearing the testimony of all interested persons for or against the renewal of the STID may be received. If at the conclusion of the public hearing, there are of record written protests by the owners of the lodging businesses within the renewed STID that will pay fifty percent (50%) or more of the estimated total assessment of the entire STID, no further proceedings to renew the STID shall occur for a period of one (1) year.

14. The complete Plan is on file with the City Clerk and may be reviewed upon request.

15. This resolution shall take effect immediately upon its adoption by the City Council.

PASSED, RESOLVED, AND ADOPTED, at a Regular meeting of the City Council of the City of Sonoma on this 21st day of August 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________
John Gurney, Mayor
ATTEST:
_______________________________
Rebekah Barr, MMC, City Clerk
Agenda Item #7.7:

EXHIBIT A
District Boundaries
Agenda Item #7.7:

Agenda Item #7.7:

2025-2035

SONOMA TOURISM IMPROVEMENT

DISTRICT

MANAGEMENT DISTRICT PLAN
Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq. July 12, 2024 Agenda Item #7.7:

Contents
I. OVERVIEW ........................................................................................................................................3 II. BACKGROUND ................................................................................................................................4 III. ACCOMPLISHMENTS.....................................................................................................................5 IV. BOUNDARY.......................................................................................................................................6 V. ASSESSMENT BUDGET AND SERVICES................................................................................6 A. Annual Service Plan ........................................................................................................7 B. Annual Budget.................................................................................................................8 C. California Constitutional Compliance ..............................................................................9 D. Assessment....................................................................................................................10 E. Interest and Overdue Charges........................................................................................11 F. Time and Manner for Collecting Assessments ...............................................................11 VI. GOVERNANCE...............................................................................................................................12 A. Owners’ Association......................................................................................................12 B. Brown Act and California Public Records Act Compliance ...........................................12 C. Annual Report ...............................................................................................................12 APPENDIX 1 – LAW....................................................................................................................................13 APPENDIX 2 – ASSESSED BUSINESSES .............................................................................................25 Prepared by
Civitas
(800)999-7781
www.civitasadvisors.com
Agenda Item #7.7:

STID Management District Plan 3
July 12, 2024
I. OVERVIEW
Developed by Sonoma lodging businesses and the Sonoma Tourism Improvement District Corporation (STIDC), the Sonoma Tourism Improvement District (STID) is an assessment district proposed to continue to provide specific benefits to payors, by funding sales and marketing promotion efforts for assessed businesses. This approach has been used successfully in other destination areas throughout the country to provide the benefit of additional room night sales directly to payors. The STID was initially created in 2012 for a three (3) year term, and was subsequently renewed in 2015 for a ten (10) year term. STIDC and Sonoma lodging businesses now wish to renew the STID for an additional ten (10) year term.

Location: The STID includes all lodging businesses, existing and in the future, available for public occupancy located within the boundaries of the City of Sonoma, as shown on the map in Section IV.

Services: The STID is designed to provide specific benefits directly to payors by increasing awareness and demand for room night sales. Sales and marketing promotion efforts will increase demand for overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing demand for room night sales.

Budget: The total STID annual assessment budget for the initial year of the ten (10) year renewal period is anticipated to be approximately $1,000,000. A similar assessment budget is expected to apply to subsequent years, but the assessment budget is expected to fluctuate as room sales do, and as lodging businesses open and close.

Cost: The annual assessment rate is two percent (2%) of gross short-term sleeping room rental revenue. Assessments will not be collected on: stays of more than thirty (30) consecutive days, stays by federal or state employees on official business, nor on stays by any officer or employee of a foreign government on official business.

Collection: The City of Sonoma (City) will be responsible for collecting the assessment on a monthly basis (including any delinquencies, interest, and overdue charges) from each lodging business located in the boundaries of the STID. The City shall take all reasonable efforts to collect the assessments from each lodging business. The City shall forward the assessments collected to the Owners’ Association.

Duration: The STID will have a ten (10) year life, beginning July 1, 2025 or as soon as possible thereafter, and ending ten (10) years from its start date. After ten (10) years, the STID may be renewed pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq. (94 Law) if lodging business owners support continuing the STID programs.

Management: The STIDC shall continue to serve as the STID’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with this Plan, and must provide annual reports to the City Council.

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II. BACKGROUND
TIDs are an evolution of the traditional Business Improvement District. The first TID was formed in West Hollywood, California in 1989. Since then, over 100 California destinations have followed suit. In recent years, other states have begun adopting the California model –Illinois, Minnesota, Massachusetts, Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TID laws. Several other states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law to form a TID . Additionally, some cities, like Portland, Oregon and Memphis, Tennessee have utilized their home rule powers to create TIDs without a state law.

California’s TIDs collectively raise
over $300 million annually for
local destination marketing. With
competitors raising their budgets,
and increasing rivalry for visitor
dollars, it is important
that Sonoma lodging businesses
continue to invest in stable,
commerce-specific marketing
programs.

TIDs utilize the efficiencies of
private sector operation in the
market-based promotion of tourism districts. TIDs allow tourism business owners to organize their efforts to increase commerce. Lodging business owners within the TID pay an assessment and those funds are used to provide services that increase commerce.

In California, most TIDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between TIDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district.

There are many benefits to TIDs:
• Funds must be spent on services and improvements that provide a specific benefit only to those who pay;
• Funds cannot be diverted to general government programs; • They are customized to fit the needs of payors in each destination; • They allow for a wide range of services;
• They are designed, created and governed by those who will pay the assessment; and • They provide a stable, long-term funding source for tourism promotion.

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III. ACCOMPLISHMENTS
The STID was created in 2012 to provide additional, stable funding for marketing and public relations efforts. Over the STID’s initial term, programs have been implemented with great success and the STID has seen growth in rooms nights, occupancy and TOT revenue. During the fiscal year prior to the implementation of the STID (2011-2012), TOT revenues grew less than 4% from $2.38 million to $2.47 million. During the first full fiscal year of the TID (2012-2013), TOT revenues grew in excess of 15% from $2.47 million to $2.86 million. In 2013-2014 TOT in the City was projected to be in excess of $3 million for the first time. Since the last renewal, TOT collections have more than doubled from $3.18 million in (2013-2014) to $6.40 million in (2022-2023).

A robust marketing program implemented by the Sonoma Valley Visitors Bureau, by direction of the STIDC, targeting potential travelers likely to yield overnight visitors to Sonoma, was primarily designed to increase occupancy during Sonoma's off-season months and midweek periods, and react quickly to seasonal downturns to promote visitation. The STID was also able to assist with grant funding to several local non-profit organizations and events including Grupo Folklórico Quetzalén, Sonoma International Film Festival, Valley of the Moon Vintage Festival, Lighting of the Sonoma Plaza, Dia de los Muertos, , Sonoma Arts Live, and the Sonoma Valley Museum of Art with the goal of increasing overnight visitors to Sonoma for these events.

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IV. BOUNDARY
The STID will continue to include all lodging businesses, existing and in the future, available for public occupancy within the boundaries of the City of Sonoma, as shown in the map below.

Lodging business means: any structure, or any portion of any structure, which is occupied or intended, or designed for occupancy by transients for dwelling, lodging or sleeping purposes and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, roominghouse, apartment house, dormitory, public or private club, mobilehome or house trailer at a fixed location, or other similar structure or portion thereof.

A complete listing of assessed lodging businesses within the STID can be found in Appendix 2.

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V. ASSESSMENT BUDGET AND SERVICES
A. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the STID funds are sales and marketing programs available only to assessed businesses.

A service plan assessment budget has been developed to deliver services that benefit the assessed businesses. A detailed annual assessment budget will be developed and approved by STIDC. The chart below illustrates the initial annual assessment budget allocations. These activities and allocations will also apply in subsequent years. The total initial assessment budget is estimated to be $1,000,000.

Although actual revenues will fluctuate due to market conditions, the proportional allocations of the budget shall remain the same. However, the City and the STIDC board shall have the authority to adjust budget allocations between the categories by no more than fifteen percent (15%) of the total budget per year. A description of the proposed improvements and activities for the initial year of operation is below. The same activities are proposed for subsequent years. In the event of a legal challenge against the STID, any and all assessment funds may be used for the costs of defending the STID.

Each budget category includes all costs related to providing that service. For example, the sales and marketing budget includes the cost of staff time dedicated to overseeing and implementing the sales and marketing program. Staff time dedicated purely to administrative tasks is allocated to the administration portion of the budget. The costs of an individual staff member may be allocated to multiple budget categories. The staffing levels necessary to provide the services below will be determined by the STIDC on an as-needed basis.

Sales and Marketing
A sales and marketing program will promote assessed businesses as tourist, meeting, and event destinations. The sales and marketing program will have a central theme of promoting Sonoma as a Sales and
Marketing,
$850,000 , 85%
Administration,
$40,000 , 4%
City Collection Costs,
$10,000 , 1%
Reserve/Contingency
/Renewal,
$100,000 , 10%
Projected Annual Assessment Budget
FY25-26 - $1,000,000
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desirable place to stay. The program will have the goal of increasing overnight visitation and room night sales at assessed businesses, and may include the following activities:
• Internet marketing efforts to increase awareness and optimize internet presence to drive overnight visitation and room sales to assessed lodging businesses; • Print ads in magazines and newspapers targeted at potential visitors to drive overnight visitation and room sales to assessed lodging businesses; • Television ads targeted at potential visitors to drive overnight visitation and room sales to assessed lodging businesses;
• Radio ads targeted at potential visitors to drive overnight visitation and room sales to assessed lodging businesses;
• Any other marketing, promotions or advertising programs that may be beneficial to yielding overnight visits to Sonoma
• Attendance at professional trade showsto drive overnight visitation and room sales to assessed lodging businesses;
• Sales blitzes to drive overnight visitation and room sales to assessed lodging businesses; • Familiarization tours;
• Promotional activities and events to drive overnight visitation and room sales to assessed lodging businesses;
• Preparation,production and distribution of collateral promotional materials such as brochures, flyers and maps;
• Attendance of professional industry conferences and affiliation events; • Lead generation activities designed to attract tourists and group events to assessed lodging businesses;
• Director of Sales and General Manager meetings to plan and coordinate tourism promotion efforts for assessed lodging businesses;
• Education of hospitality staff on service and safety (related to alcohol and food) designed to create a visitor experience that will bring repeat visits to assessed lodging businesses; and • Education of lodging business management and STIDC on marketing strategies best suited to meet Sonoma’s needs to drive overnight visitation to assessed lodging businesses.

Administration
The administration portion of the budget shall be utilized for administrative costs, office costs, advocacy, and other general costs such as insurance, legal, and accounting fees.

City Administration Fee
The City shall be paid a fee equal to one percent (1%) of the amount of assessments collected to cover its costs of collection and administration.

Reserve/Contingency/Renewal
A prudent portion of the budget will be set aside in a contingency fund, to be used for unforeseeable costs in carrying out the sales and marketing programs. If near the expiration of the STID there are contingency funds remaining, and assessed lodging business owners wish to renew the STID, the remaining contingency funds may be used for renewal costs.

B. Annual Budget
The initial renewal year assessment budget is projected to be approximately $1,000,000. A similar budget is expected to apply to subsequent years, but this budget is expected to fluctuate as sleeping room sales do, and as lodging businesses open and close.

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C. California Constitutional Compliance
The STID assessment is not a property-based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term ‘assessments’ to levies on real property.1 Rather, the STID assessment is a business-based assessment, and is subject to Proposition 26.

Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions. Two of these exceptions apply to the STID, a “specific benefit” and a “specific government service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services.

1. Specific Benefit
Proposition 26 requires that assessment funds be expended on, “a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.”2 The services in this Plan are designed to provide targeted benefits directly to assessed businesses, and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public, businesses in general, or parcels of land, but rather to serve the specific businesses within the STID. The activities described in this Plan are specifically targeted to increase demand for room night sales for assessed lodging businesses within the boundaries of the STID, and are narrowly tailored. STID funds will be used exclusively to provide the specific benefit of increased demand for room night sales directly to the assessees. Assessment funds shall not be used to feature non-assessed lodging businesses in STID programs, or to directly generate sales for non-assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses. Nothing in this Plan limits the ability of the Owners’ Association to enter into private contracts with non-assessed lodging businesses for the provision of services to those businesses.

The assessment imposed by this STID is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in demand for room night sales. The specific benefit of an increase in demand for room night sales for assessed lodging businesses will be provided only to lodging businesses paying the district assessment, with marketing and sales programs promoting lodging businesses paying the STID assessment. The marketing and sales programs will be designed to increase room night sales at each assessed lodging businesses. Because they are necessary to provide the marketing and sales programs that specifically benefit the assessed lodging businesses, the administration and contingency services also provide the specific benefit of increased demand for room night sales to the assessed lodging businesses.

Although the STID, in providing specific benefits to payors, may produce incidental benefits to nonpaying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that, “A specific benefit is not excluded from classification as a ‘specific benefit’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.”3

2. Specific Government Service
1 Jarvis v. the City of San Diego 72 Cal App. 4th 230 2 Cal. Const. art XIII C § 1(e)(1) 3 Government Code § 53758(a)
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The assessment may also be utilized to provide, “a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.”4 The legislature has recognized that sales and marketing promotions services like those to be provided by the STID are government services within the meaning of Proposition 265. Further, the legislature has determined that “a specific government service is not excluded from classification as a ‘specific government service’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor.”6

3. Reasonable Cost
STID services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by the STIDC, and reports submitted on an annual basis to the City. Only assessed lodging businesses will be featured in marketing materials, receive sales leads generated from STIDfunded activities, be featured in advertising campaigns, and benefit from other STID-funded services.

Non-assessed lodging businesses will not receive these, nor any other, STID-funded services and benefits.

The STID-funded programs are targeted directly to benefit assessed businesses. STID funds shall only be spent to benefit the assessed businesses, and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed businesses.

D. Assessment
The annual assessment rate is two percent (2%) of gross short-term sleeping room rental revenue.

Based on the benefit received, assessments will not be collected on: stays of more than stays of more than thirty (30) consecutive days, stays by federal or state employees on official business, nor on stays by any officer or employee of a foreign government on official business.

The assessment was calculated based on the total cost of the activities to be provided for the benefit of the businesses within the STID, with costs allocated based on the proportional benefit conferred to each business. Activities funded by the STID are specifically targeted to increase room nights at assessed businesses. All room night sales do not represent the same benefit to the payors. For example, a higher priced room night is of greater benefit than a lower priced room night because the assessed derives greater revenue. To account for this benefit differential and to make sure the benefits are proportional, an assessment formula based on a percentage of revenue has been selected. The proposed formula accurately reflects greater benefit to assessed businesses with higher priced room nights.

The term “gross short-term sleeping room rental revenue” as used herein means: the consideration charged, whether or not received, for the occupancy of space in a hotel valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever.

Gross sleeping room rental revenue shall not include, and therefore the assessment shall not be charged upon, any federal, state or local taxes collected, including but not limited to transient occupancy taxes.
4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)
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The assessment is levied upon and a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. If the STID assessment is identified separately it shall be disclosed as the “STID Assessment.” As an alternative, the disclosure may include the amount of the STID assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act, Government Code §13995 et seq. and shall be disclosed as the “Tourism Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for calculation of transient occupancy taxes.

Bonds shall not be issued.

E. Interest and Overdue Charges

1. The City shall be responsible for collection of delinquent assessments, overdue charges and interest from assessed lodging businesses. The City shall be fully reimbursed for its costs (including, but not limited to, attorneys’ fees and litigation expenses) of collecting delinquent assessments, overdue charges and interests. Notwithstanding the above, at the City’s option the City may at any time direct the STIDC to undertake at the STIDC’s sole cost and expense all delinquent collections through a third party provider of collection services to the STIDC.

Thereafter, the City will be discharged of delinquent collection responsibilities.

2. Any lodging business which fails to remit any assessment within the time required shall pay an overdue charge of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment.

3. Any lodging business which fails to remit any delinquent remittance on or before a period of 30 days following the date on which the remittance first became delinquent shall pay a second overdue charge of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment and the ten percent (10%) overdue charge first imposed.

4. If the collections agency determines that the nonpayment of any remittance is due to fraud, an overdue charge of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the overdue charges stated in subsections 2 and 3 of this section.

5. In addition to the overdue charges imposed, any lodging business which fails to remit any assessment imposed shall pay interest at the rate of one-half of one percent (0.5%) per month or fraction thereof on the amount of the assessment, exclusive of overdue charges, from the date on which the remittance first became delinquent until paid.

6. Every overdue charge imposed and such interest as accrues under the provisions of this section shall become part of the assessment required to be paid.

F. Time and Manner for Collecting Assessments
The STID assessment will be implemented beginning July 1, 2025 or as soon as possible thereafter, and ending ten (10) years from its start date. The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, interest and overdue charges) from each lodging business.

The City shall take all reasonable efforts to collect the assessments from each lodging business. The City shall forward the assessments collected to the Owners’ Association.

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VI. GOVERNANCE
A. Owners’ Association
The City Council, through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the STID as defined in Streets and Highways Code §36612.

The City Council has determined that STIDC shall continue to serve as the Owners’ Association for the STID.

B. Brown Act and California Public Records Act Compliance An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the Board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. Accordingly, the Owners’ Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action. The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act.

C. Annual Report
The STIDC shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include:
• Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district.
• The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
• The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
• The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.

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APPENDIX 1 – LAW
*** THIS DOCUMENT IS CURRENT THROUGH THE 2023 EXTRA SESSION CH 1, 2023 REGULAR SESSION CH. 890***
(ALL 2023 LEGISLATION)

STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1. General Provisions
ARTICLE 1. Declarations
36600. Citation of part
This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.” 36601. Legislative findings and declarations; Legislative guidance The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed. Therefore, for special benefits to exist as a separate and distinct category from general Agenda Item #7.7:

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benefits, the incidental or collateral effects of those special benefits are inherently part of those special benefits. The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits. (3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits. Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined.
36602. Purpose of part
The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act.

This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. 36603. Preemption of authority or charter city to adopt ordinances levying assessments Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)).
36603.5 Part prevails over conflicting provisions
Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.
36604. Severability
This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.

ARTICLE 2. Definitions
36606. “Activities”
“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district. 36606.5. “Assessment”
“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.
36607. “Business”
“Business” means all types of businesses and includes financial institutions and professions.

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36608. “City”
“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California. 36609. “City council”
“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4. “Clerk”
“Clerk” means the clerk of the legislative body.
36609.5. “General benefit”
“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.
36610. “Improvement”
“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.
36611. “Management district plan”; “Plan”
“Management district plan” or “plan” means a proposal as defined in Section 36622. 36612. “Owners’ association”
“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), for all records relating to activities of the district. 36614. “Property”
“Property” means real property situated within a district. 36614.5. “Property and business improvement district”; “District” Agenda Item #7.7:

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“Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part.
36614.6. “Property-based assessment”
“Property-based assessment” means any assessment made pursuant to this part upon real property. 36614.7. “Property-based district”
“Property-based district” means any district in which a city levies a property-based assessment. 36615. “Property owner”; “Business owner”; “Owner”
“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient. 36615.5. “Special benefit” [Effective January 1, 2023]
(a) “Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of propertybased districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value.
(b) “Special benefit” also includes, for purposes of a property-based district, a particular and distinct benefit provided directly to each assessed parcel within the district. Merely because parcels throughout an assessment district share the same special benefits does not make the benefits general. 36616. “Tenant”
“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.

ARTICLE 3 Prior Law
36617. Alternate method of financing certain improvements and activities; Effect on other provisions This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.

CHAPTER 2. Establishment
36620. Establishment of property and business improvement district A property and business improvement district may be established as provided in this chapter. 36620.5. Requirement of consent of city council
A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the Agenda Item #7.7:

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board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city. 36621. Initiation of proceedings; Petition of property or business owners in proposed district (a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623.
36622. Contents of management district plan
The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries.
(b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the estimated cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities and a statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision.

Agenda Item #7.7:

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(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against their property or business. The plan also shall state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years.

Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k)
(1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property-based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a propertybased district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel.
(3) In a property-based district, properties throughout the district may share the same special benefits. In a district with boundaries that define which parcels are to receive improvements, maintenance, or activities over and above those services provided by the city, the improvements, maintenance, or activities themselves may constitute a special benefit. The city may impose assessments that are less than the proportional special benefit conferred, but shall not impose assessments that exceed the reasonable costs of the proportional special benefit conferred. Because one or more parcels pay less than the special benefit conferred does not necessarily mean that other parcels are assessed more than the reasonable cost of their special benefit. (l) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan.
(m) Any other item or matter required to be incorporated therein by the city council. 36623. Procedure to levy assessment
(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for Agenda Item #7.7:

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the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest.

If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners. 36624. Changes to proposed assessments
At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625. Resolution of formation
(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district.
(4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district.

Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district.

Agenda Item #7.7:

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(7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property-based district, that property within the district will receive a special benefit.
(8) In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.
36627. Notice and assessment diagram
Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part. 36628. Establishment of separate benefit zones within district; Categories of businesses The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone. 36628.5. Assessments on businesses or property owners
The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any propertybased assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622. 36629. Provisions and procedures applicable to benefit zones and business categories All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district. 36630. Expiration of district; Creation of new district If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.

CHAPTER 3: Assessments
36631. Time and manner of collection of assessments; Delinquent payments The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.
36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property
Agenda Item #7.7:

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(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part. 36633. Time for contesting validity of assessment
The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36625. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.
36634. Service contracts authorized to establish levels of city services The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635. Request to modify management district plan
The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636. Modification of plan by resolution after public hearing; Adoption of the resolution of intention (a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.
36637. Reflection of modification in notices recorded and maps Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627. 36638. Assessment as government improvised fee on Civ C § 1770 transaction [Operative July 1, 2024] (a) A business assessment pursuant to this part is a fee imposed by a government on the transaction for purposes of paragraph (29) of subdivision (a) of Section 1770 of the Civil Code. (b) This section shall become operative on July 1, 2024.

Agenda Item #7.7:

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CHAPTER 3.5 Financing
36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments (a) The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks–Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part. (b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt.

CHAPTER 4. Governance
36650. Report by owners’ association; Approval or modification by city council (a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.

The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district.
36651. Designation of owners’ association to provide improvements, maintenance, and activities Agenda Item #7.7:

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The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.

CHAPTER 5. Renewal
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit (a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.

CHAPTER 6. Disestablishment
36670. Circumstances permitting disestablishment of district; Procedure (a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment.
(2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment.
(b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention.
36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district (a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in Agenda Item #7.7:

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which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.

Agenda Item #7.7:

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APPENDIX 2 – ASSESSED BUSINESSES
Business name Business address City State ZIP
835 Broadway 835 Broadway Sonoma CA 95476
Alexandra's Plaza Suite 440 Second St E Sonoma CA 95476 An Inn 2 Remember 171 W Spain St Sonoma CA 95476
Andrea's Hidden Cottage 138 E Spain St Sonoma CA 95476
Auberge Sonoma 151 E Napa St Sonoma CA 95476
Bancroft Inn 786 Broadway Sonoma CA 95476
Beautiful Places - Casa Sebastiani 247 Fourth St E Sonoma CA 95476 Beautiful Places - Lux on First 531 First St E Sonoma CA 95476 Billie's on Broadway 20079 Broadway Sonoma CA 95476
Broadway Bungalow 853 Broadway Sonoma CA 95476
Bungalow Sonoma 157 W Spain St Sonoma CA 95476
Bungalows 313 313 First St E Sonoma CA 95476
Casa Chiquita 196 West Spain St Sonoma CA 95476
Casa La Paloma 180 E Napa St Sonoma CA 95476
Cedar Mansion 531 2nd St E Sonoma CA 95476
Chambre d'Hote 688 Broadway Sonoma CA 95476
Cinnamon Bear Creekside Inn 19455 Sonoma Hwy Sonoma CA 95476 Cottage Sonoma 424 Second St W Sonoma CA 95476
Creekside Cottage 780 Broadway Sonoma CA 95476
Cuneo Cottage 391 E Spain St Sonoma CA 95476
El Dorado Hotel 405 First St W Sonoma CA 95476
El Pueblo Inn 896 W Napa St Sonoma CA 95476
Gitti Properties 270 W Napa St Unit 2R Sonoma CA 95476
Inn at Sonoma 650 Broadway Sonoma CA 95476
J & M Family LLC 284-294 W Napa St Sonoma CA 95476
Jane's Sonoma Cottage 211 Patten St Sonoma CA 95476
Kate Murphy's Cottage 41 France St Sonoma CA 95476
Ledson Hotel 480 First St E Sonoma CA 95476
MacArthur Place 29 E MacArthur St Sonoma CA 95476
Magliulo's Rose Garden Inn 681 Broadway Sonoma CA 95476 Mary Jean's Place 20073 Broadway Sonoma CA 95476
Newcomb Cottage 171 Newcomb St Sonoma CA 95476
Pineapple Bear (fka Ramekins) 450 W Spain St Sonoma CA 95476 Red Downtown Farmhouse 454 Third St W Sonoma CA 95476
Sonoma Bungalows 158 W. Napa St. Sonoma CA 95476
Sonoma Court Shops 533 1st St E Sonoma CA 95476
Sonoma Hotel 110 W Spain St Sonoma CA 95476
Sonoma Valley Inn 550 Second St W Sonoma CA 95476
Sonoma Vintage Cottage 464 Third St W Sonoma CA 95476
Spain Street Properties 162-164 W Spain St Sonoma CA 95476 Agenda Item #7.7:

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Steve Clark 1 LLC 758 Broadway Sonoma CA 95476
Susan's Guest House 458 Second St W Sonoma CA 95476
Swiss Hotel 18 W Spain St Sonoma CA 95476
The Cottage Inn and Spa 310 First St E Sonoma CA 95476
The Feed Store 515 1st St W Sonoma CA 95476
The Lodge 1325 Broadway Sonoma CA 95476
Tulsi Cottage 304 First St E Sonoma CA 95476
Yellow Farmhouse 446 Third St W Sonoma CA 95476
Agenda Item #7.7:

PETITIONTO THECITYOF SONOMA

TO RENEWTHE SONOMA TOURISM IMPROVEMENT DISTRICT
We petition you to initiate proceedings to renew the Sonoma Tourism improvement District (STlD) in accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq., for the purpose of providing services as described in the summary of the Management District Plan attached hereto as Exhibit A.

Business Establishment & Address Business Owner
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The undersigned is the business owner or the authorized representative of the business owner and is the person legally authorized and entitled to sign this petition. “59M(A415 T i<rQiM (/0
Owner /OwnerRepresentative Name (printed) VTitle
wner Owner epresentative Signature
07 {22/17—
Date
A complete co ofthe Management District Plan will be furnished upon request. Requests for a complete copy ofthe Management District Plan should be made to:

Dan Parks
Sonoma Tourism Improvement District Corporation
620 Broadway
Sonoma, CA 95476
(707) 235—5872
Agenda Item #7.7:

Business Establishment & Address
F1sk {HM Ohomm 0“ jr10
S’W/Pw/m'LOAN gem/Wt Mmagexf /Owner p
?ll
r wn epresentatlve

PETITIONTO THECITYOF SONOMA

TO RENEWTHESONOMA TOURISMIMPROVEMENTDISTRICT
We petition you to initiate proceedings to renew the Sonoma Tourism Improvement District (STlD)in accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq., for the purpose of providing services as described in the summary of the Management District Plan attached hereto as ExhibitA.

Business Owner
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The undersigned is the business owner or the authorized representative of the business owner and is the person legally authorized and entitled to sign this petition. 6 Owner Re resentative Name (printed) Title
7,7/
Owne er Signature Date
Acomplete copy ofthe Management District Plan willbe furnished upon request. Requests for a complete copy of the Management District Plan should be made to:

Dan Parks
Sonoma Tourism Improvement District Corporation
620 Broadway
Sonoma, CA95476
(707) 235-5872
Agenda Item #7.7:

PETITION TO THE CITYOF SONOMA

TO RENEW THE SONOMA TOURISM IMPROVEMENT DISTRICT
We petition you to initiate proceedings to renew the Sonoma Tourism Improvement District (STID) in accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq., for the purpose of providing services as described in the summary of the Management District Plan attached hereto as Exhibit A.

Buginess Establishment & Address Business Owner
The undersigned is the business owner or the authorized representative of the business owner and is the person legally authorized and entitled to sign this petition.

JMJW Qwem Mmegp Owner /OwnerRepresentati Name (printed) Title ner/OwnerRepresent ignature
A cdmplete copy ofthe Management District Plan will be furnished upon request. Requests for a complete copyof the Management District Plan should be made to:

Dan Parks
Sonoma Tourism Improvement District Corporation
620 Broadway
Sonoma, CA 95476
(707) 235-5872
Agenda Item #7.7:

PETITIONTO THECITYOF SONOMA

TO RENEWTHE SONOMA TOURISM IMPROVEMENT DISTRICT
We petition you to initiate proceedings to renew the Sonoma Tourism Improvement District (STID)in accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq., for the purpose of providing services as described in the summary of the Management District Plan attached hereto as Exhibit A.

Business Establishment & Address Business Owner
Jim W swam AME, Pm
The undersigned is the business owner or the authorized representative of the business owner and is the person legally authorized and entitled to sign this petition.

OQ/AZELWrLI/VS QUAJEL
Owner /OwnerRepresentative Name (printed) Title
Owner/Owner resentativ Date
A complete copy ofthe Management District Plan willbe furnished upon request. Requests for a complete copy of the Management District Plan should be made to:

Dan Parks
Sonoma Tourism Improvement District Corporation
620 Broadway
Sonoma, CA 95476
(707) 235-5872
Agenda Item #7.7:

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PETITIONTO THECITYOF SONOMA

TO RENEWTHESONOMA TOURISM IMPROVEMENTDISTRICT
We petition you to initiate proceedings to renew the Sonoma Tourism Improvement District (STID)in accordance with the Property and Business Improvement District Law of 1994, Streets and HighwaysCode section 36600 et seq., for the purpose of providing services as describedin the summary of the Management District Plan attached hereto as ExhibitA.

Business Establishment 8: Address Business Owner
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The undersigned is the business owner or the authorized representative of the business owner and is the person legallv authorized and entitled to sign this petition. {EELDADQC
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Acomplete copy ofthe Management District Plan willbe furnished upon request. Requests for a complete copy of the Management District Plan should be made to:

Dan Parks
Sonoma Tourism Improvement District Corporation
620 Broadway
Sonoma, CA95476
(707) 235-5872
Owner/OwnerRepresentative Signature
Agenda Item #7.7:

PETITIONTO THECITYOF SONOMA

TO RENEWTHE SONOMA TOURISM IMPROVEMENT DISTRICT
We petition you to initiate proceedings to renew the Sonoma Tourism Improvement District (STID)in accordance with the Property and Business Improvement District Law of 1994, Streets and HighwaysCode section 36600 et seq., for the purpose of providing services as described in the summary of the Management District Plan attached hereto as ExhibitA.

Business Establishment & Address Business Owner
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The undersigned is the business owner or the authorized representative of the business owner and is the person Iegall/_y_authorized and entitled to sign this petition. -—iL/,( 77/: 4M[0,, @4/&/
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Owner /OwnerRepresentative Name((printed) Title
7/22-20/
Date Own ner Representative Signature
Acomplete copy ofthe Management District Plan willbe furnished upon request. Requests for a complete copy of the Management District Plan should be made to:

Sonoma Tourism Improvement District Corporation 620 Broadway Sonoma, CA95476 (707) 235—5872 Agenda Item #7.7:

PETITION TO THECITYOF SONOMA

TO RENEWTHESONOMA TOURISM IMPROVEMENT DISTRICT
We petition you to initiate proceedings to renew the Sonoma Tourism Improvement District (STID)in accordance with the Property and Business Improvement District Law of 1994, Streets and HighwaysCode section 36600 et seq., for the purpose of providing services as described in the summary of the Management District Plan attached hereto as Exhibit A.

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The undersigned is the business owner or the authorized representative of the business owner and is the person legally authorized and entitled to sign this petition. (7’II; , ,_ I» \.
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Owner /OwnerRepresentative Name (printed) Title I
A complete copy ofthe Management District Plan will be furnished upon request. Requests for a complete copy of the Management District Plan should be made to:

Dell] Parks
Sonoma Tourism Improvement District Corporation
620 Broadway
Sonoma, CA95476
(707) 235—5872
Agenda Item #7.7:

NOTICE OF PUBLIC MEETING AND PUBLIC HEARING CONCERNING THE RENEWAL

OF THE SONOMA TOURISM IMPROVEMENT DISTRICT (STID) AND LEVY OF AN

ASSESSMENT ON LODGING BUSINESSES WITHIN THE STID
NOTICE IS HEREBY GIVEN that on August 21, 2024, the City Council (Council) of the City of Sonoma (City) adopted a Resolution of Intention to renew the Sonoma Tourism Improvement District (STID) and to levy an assessment on all lodging businesses, existing and in the future, available for public occupancy within the STID as set forth in the Resolution of Intention.

NOTICE IS HEREBY FURTHER GIVEN that at 6:00 PM on September 18, 2024, at the City Council Chambers, 177 First Street West, Sonoma, CA 95476, a public meeting shall be held pursuant to Government Code section 54954.6 to allow public testimony regarding the renewal of the STID and the levy of assessments therein as set forth in the Resolution of Intention and pursuant to Government Code section 54954.6.

NOTICE IS HEREBY FURTHER GIVEN that at 6:00 PM on November 6, 2024, at the City Council Chambers, 177 First Street West, Sonoma, CA 95476, has been set as the time and place for a public hearing at which time the Council proposes to renew the STID and to levy the proposed assessment as set forth in the Resolution of Intention.

Location: The STID includes all lodging businesses, existing and in the future, available for public occupancy located within the boundaries of the City of Sonoma.

Services: The STID is designed to provide specific benefits directly to payors by increasing awareness and demand for room night sales. Sales and marketing promotion efforts will increase demand for overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing demand for room night sales.

Budget: The total STID annual assessment budget for the initial year of the ten (10) year renewal period is anticipated to be approximately $1,000,000. A similar assessment budget is expected to apply to subsequent years, but the assessment budget is expected to fluctuate as room sales do, and as lodging businesses open and close.

Cost: The annual assessment rate is two percent (2%) of gross short-term sleeping room rental revenue. Assessments will not be collected on: stays of more than thirty (30) consecutive days, stays by federal or state employees on official business, nor on stays by any officer or employee of a foreign government on official business.

Collection: The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, interest, and overdue charges) from each lodging business located in the boundaries of the STID. The City shall take all reasonable efforts to collect the assessments from each lodging business. The City shall forward the assessments collected to the Owners’ Association.

Agenda Item #7.7:

Duration: The STID will have a ten (10) year life, beginning July 1, 2025 or as soon as possible thereafter, and ending ten (10) years from its start date. After ten (10) years, the STID may be renewed pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq. (94 Law) if lodging business owners support continuing the STID programs.

Management: The Sonoma Tourism Improvement District Corporation shall continue to serve as the STID’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with the Management District Plan and must provide annual reports to the Council.

Protest: Any owner of a lodging business within the proposed STID that will be subject to the assessment may protest the renewal of the STID. If written protests are received from the owners of lodging businesses in the proposed STID who represent fifty percent (50%) or more of the estimated annual assessments to be levied, the STID shall not be renewed and the assessment shall not be imposed.

You may mail a written protest to:

Office of the City Clerk
City of Sonoma
No. 1 The Plaza
Sonoma, CA 95476
You may also appear at the public meeting or hearing and submit a written protest at that time.

Information: Should you desire additional information about this proposed STID or assessment contact:

Dan Parks
Sonoma Tourism Improvement District Corporation
620 Broadway
Sonoma, CA 95476
(707) 235-5872
Dated: ________________________________
__________________________________________
City Clerk
Agenda Item #7.7:

City of Sonoma
Agenda Item Summary
Meeting: City Council - 21 Aug 2024
Department
Administration
Staff Contact
Rebekah Barr, MMC, City Clerk
Agenda Item Title
Adopt a Resolution Authorizing the City Manager to Enter into a Cooperative Purchasing Agreement (Interlocal Contract) with the Houston-Galveston Area Council of Governments (H-GAC)
Summary
Houston-Galveston Area Council Program (H-GAC) Intergovernmental Cooperative Purchase, is a government-to-government procurement service available nationwide.

Governmental entities have been procuring products and services through their HGACBuy service for over 30 years. HGACBuy indicates they strive to make the governmental procurement process more efficient by establishing competitively price contracts for goods and services and providing the customer service necessary to help its members achieve their purchasing goals. All contracts available to members of HGAC have been awarded by virtue of a public competitive procurement process.

All local government providing governmental services are eligible to join H-GAC. The Houston-Galveston Area Council (H-GAC) is a regional council of governments operating under the laws of the State of Texas and governed by a board comprised of 36 elected officials from the 13 county region. The H-GAC Board awards all contracts, which can then be made available to local governments nationwide thru HGACBuy.

Government entities join by executing an Interlocal Contract to participate in HGACBuy. This document sets out the conditions, requirements and processes through which an entity’s purchase orders are received, confirmed to contract and processed. California Government Codes section 6500 and 6502 indicate that if authorized by their legislative or other governing bodies, two or more public agencies by agreement may
jointly exercise any power common to the contracting parties, even though one or more of the contracting agencies may be located outside this state.

The City of Sonoma contracts with the Sonoma Valley Fire District (SVFD) for the provision of emergency services including fire and emergency medical. Per the agreement, both agencies purchase vehicles and equipment for SVFD's response to emergencies. In order to facilitate a more cost efficient vehicle program, Staff requests that the City Council authorize the City Manager to execute an Interlocal Contract with H-GAC to allow participation in the HGACBuy program, joining with over 200 other California counties, cities, special districts, and public safety agencies.

Recommended Council Action
Adopt the resolution.

Alternative Actions
Agenda Item #7.8:

Council discretion.

Financial Impact
There is no financial impact to the City at this time. However, a cost reduction will be realized when future vehicle and/or equipment purchases are made under the HGACBuy program.

Environmental Review Status
Environmental Impact Report
Negative Declaration
Exempt
Not Applicable
Approved/Certified
No Action Required
Action Requested
Attachments
Resolution - HGACBuy
Sample HGACBuy Interlocal Contract for Coop Purchasing
Alignment with Council Goals:

Agenda Item #7.8:

City of Sonoma
RESOLUTION #_______ - 2024

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SONOMA AUTHORIZING THE

CITY MANAGER TO ENTER INTO A COOPERATIVE PURCHASING AGREEMENT (INTERLOCAL CONTRACT) WITH THE HOUSTON-GALVESTON AREA COUNCIL OF

GOVERNMENTS (H-GAC)
WHEREAS, the City of Sonoma and its contract agencies, including Sonoma Valley Fire District, makes various purchases as a part of routine business; and WHEREAS, utilizing a competitive bidding process ensures that the City receives goods and services at a competitive price; and
WHEREAS, the Houston-Galveston Area Council (H-GAC) is a regional council of governments and governed by a board comprised of 35 elected officials from the 13 county region. The H-GAC Board awards all contracts, which are made available to local governments nationwide through HGACBuy; and
WHEREAS, staff has verified that many California Cities have utilized the current H-GAC bidding process and prices for the purchasing; and
WHEREAS, entering into an interlocal contract for cooperative purchasing will allow the City of Sonoma to take advantage of the competitively bid contract pricing available through HGACBuy; and
WHEREAS, entering into an interlocal contact with H-GAC will be at no cost to the City.

NOW, THEREFORE, BE IT RESOLVED, that the Council of the City of Sonoma hereby authorizes the City Manager to execute the interlocal contract with H-GAC on behalf of the City.

PASSED, RESOLVED, AND ADOPTED, at a Regular meeting of the City Council of the City of Sonoma on this 21st day of August 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________
John Gurney, Mayor
ATTEST:
_______________________________
Rebekah Barr, MMC, City Clerk
Agenda Item #7.8:

INTERLOCAL CONTRACT ILC
FOR COOPERATIVE PURCHASING No.:______________
Permanent Number assigned by H-GAC
THIS INTERLOCAL CONTRACT (“Contract”), made and entered into pursuant to the Texas Interlocal Cooperation Act, Chapter 791, Texas Government Code (the “Act”), by and between the Houston-Galveston Area Council, hereinafter referred to as “H-GAC,” having its principal place of business at 3555 Timmons Lane, Suite 120, Houston, Texas 77027, and * ___ ________________________________________________________________________, a local government, a state agency, or a non-profit corporation created and operated to provide one or more governmental functions and services, hereinafter referred to as “End User,” having its principal place of business at * ________________________________________________________________

W I T N E S S E T H
WHEREAS, H-GAC is a regional planning commission and political subdivision of the State of Texas operating under Chapter 391, Texas Local Government Code; and
WHEREAS, pursuant to the Act, H-GAC is authorized to contract with eligible entities to perform governmental functions and services, including the purchase of goods and services; and

WHEREAS, in reliance on such authority, H-GAC has instituted a cooperative purchasing program under which it contracts with eligible entities under the Act; and
WHEREAS, End User has represented that it is an eligible entity under the Act, that its governing body has authorized this Contract on *____________________ _______, and that it desires to contract with H-GAC on the terms set forth below; NOW, THEREFORE, H-GAC and the End User do hereby agree as follows:

ARTICLE 1: LEGAL AUTHORITY
The End User represents and warrants to H-GAC that (1) it is eligible to contract with H-GAC under the Act because it is one of the following: a local government, as defined in the Act (a county, a municipality, a special district, or other political subdivision of the State of Texas or any other state), or a combination of two or more of those entities, a state agency (an agency of the State of Texas as defined in Section 771.002 of the Texas Government Code, or a similar agency of another state), or a non-profit corporation created and operated to provide one or more governmental functions and services, and (2) it possesses adequate legal authority to enter into this Contract.

ARTICLE 2: APPLICABLE LAWS
H-GAC and the End User agree to conduct all activities under this Contract in accordance with all applicable rules, regulations, and ordinances and laws in effect or promulgated during the term of this Contract.

ARTICLE 3: WHOLE AGREEMENT
This Contract and any attachments, as provided herein, constitute the complete contract between the parties hereto, and supersede any and all oral and written agreements between the parties relating to matters herein.

ARTICLE 4: PERFORMANCE PERIOD
The period of this Contract shall be for the balance of the fiscal year of the End User, which began *_______________________ and ends * _______________________. This Contract shall thereafter automatically be renewed annually for each succeeding fiscal year, provided that such renewal shall not have the effect of extending the period in which the End User may make any payment due an HGAC contractor beyond the fiscal year in which such obligation was incurred under this Contract.

ARTICLE 5: SCOPE OF SERVICES
The End User appoints H-GAC its true and lawful purchasing agent for the purchase of certain products and services through the HGAC Cooperative Purchasing Program. End User will access the Program through HGACBuy.com and by submission of any duly executed purchase order, in the form prescribed by H-GAC to a contractor having a valid contract with H-GAC. All purchases hereunder shall be in accordance with specifications and contract terms and pricing established by H-GAC. Ownership (title) to products purchased through H-GAC shall transfer directly from the contractor to the End User. (over)
Agenda Item #7.8:

ARTICLE 6: PAYMENTS
H-GAC will confirm each order and issue notice to contractor to proceed. Upon delivery of goods or services purchased, and presentation of a properly documented invoice, the End User shall promptly, and in any case within thirty (30) days, pay H-GAC’s contractor the full amount of the invoice. All payments for goods or services will be made from current revenues available to the paying party. In no event shall H-GAC have any financial liability to the End User for any goods or services End User procures from an HGAC contractor.

ARTICLE 7: CHANGES AND AMENDMENTS
This Contract may be amended only by a written amendment executed by both parties, except that any alterations, additions, or deletions to the terms of this Contract which are required by changes in Federal and State law or regulations are automatically incorporated into this Contract without written amendment hereto and shall become effective on the date designated by such law or regulation.

H-GAC reserves the right to make changes in the scope of products and services offered through the H-GAC Cooperative Purchasing Program to be performed hereunder.

ARTICLE 8: TERMINATION PROCEDURES
H-GAC or the End User may cancel this Contract at any time upon thirty (30) days written notice by certified mail to the other party to this Contract. The obligations of the End User, including its obligation to pay H-GAC’s contractor for all costs incurred under this Contract prior to such notice shall survive such cancellation, as well as any other obligation incurred under this Contract, until performed or discharged by the End User.

ARTICLE 9: SEVERABILITY
All parties agree that should any provision of this Contract be determined to be invalid or unenforceable, such determination shall not affect any other term of this Contract, which shall continue in full force and effect.

ARTICLE 10: FORCE MAJEURE
To the extent that either party to this Contract shall be wholly or partially prevented from the performance within the term specified of any obligation or duty placed on such party by reason of or through strikes, stoppage of labor, riot, fire, flood, acts of war, insurrection, accident, order of any court, act of God, or specific cause reasonably beyond the party's control and not attributable to its neglect or nonfeasance, in such event, the time for the performance of such obligation or duty shall be suspended until such disability to perform is removed; provided, however, force majeure shall not excuse an obligation solely to pay funds. Determination of force majeure shall rest solely with H-GAC.

ARTICLE 11: VENUE
Disputes between procuring party and Vendor are to be resolved in accord with the law and venue rules of the State of purchase.

THIS INSTRUMENT HAS BEEN EXECUTED BY THE PARTIES HERETO AS FOLLOWS:
*
Name of End User (local government, agency, or non-profit corporation) *
Mailing Address
*
City State ZIP Code
*By:

Signature of chief elected or appointed official
*
Typed Name & Title of Signatory
Houston-Galveston Area Council
3555 Timmons Lane, Suite 120, Houston, TX 77027
By:________________________________________________________ Executive Director
Date: ______________________________________________________ *______________________________________________
Date
*Denotes required fields
rev. 4/18
Agenda Item #7.8:

END USER DATA
Please sign and return the Interlocal Contract, along with this completed form, to H-GAC by emailing it to [email protected] or by faxing it to 713-993-2424. The contract may also be mailed to:

H-GAC Cooperative Purchasing Program
P.O. Box 22777, Houston, TX 77227-2777
Name of End User Agency: _____________________________________________________ County Name: ____________________ (Municipality/County/District/etc.)
Mailing Address: ______________________________________________________________________________________________ (Street Address/P.O. Box) (City) (State) (ZIP Code)
Main Telephone Number: ______________________________ FAX Number: ____________________________________________ Physical Address: ______________________________________________________________________________________________ (Street Address, if different from mailing address) (City) (State) (ZIP Code) Web Site Address: ____________________________________________________________________________ Official Contact: ___________________________________________ Title: __________________________________ (Point of Contact for HGACBuy Interlocal Contract) Ph No__________________________________ Mailing Address: ___________________________________________ Fx No. : ________________________________ (Street Address/P.O. Box) E-Mail Address: __________________________ _________________________________________________________ (City) (State) (ZIP Code)
Authorized Official: __________________________________________ Title: ___________________________________ (Mayor/City Manager/Executive Director/etc.) Ph No.: _________________________________ Mailing Address: _____________________________________________ Fx No. __________________________________ (Street Address/P.O. Box) E-Mail Address: __________________________ ____________________________________________________________ (City) (State) (ZIP Code)
Official Contact: _______________________________________________ Title: ____________________________________ (Purchasing Agent/Auditor etc. ) Ph No.: __________________________________ Mailing Address: ______________________________________________ Fx No. : __________________________________ (Street Address/P.O. Box) E-Mail Address: ___________________________ _____________________________________________________________ (City) (State) (ZIP Code)
Official Contact: ________________________________________________ Title: ____________________________________ (Public Works Director/Police Chief etc.) Ph No.: __________________________________ Mailing Address: _______________________________________________ Fx No. : _________________________________ (Street Address/P.O. Box) E-Mail Address: ___________________________ _______________________________________________________________ (City) (State) (ZIP Code)
Official Contact: ________________________________________________ Title: ____________________________________ (EMS Director/Fire Chief etc. ) Ph No.: __________________________________ Mailing Address: ________________________________________________ Fx No. : _________________________________ (Street Address/P.O. Box) E-Mail Address: ___________________________ _______________________________________________________________ (City) (State) (ZIP Code)
* denotes required fields
Agenda Item #7.8:

City of Sonoma
Agenda Item Summary
Meeting: City Council - 21 Aug 2024
Department
Administration
Staff Contact
Rebekah Barr, MMC, City Clerk
Agenda Item Title
Adopt a Resolution Amending the City of Sonoma Conflict of Interest Code Summary
The Political Reform Act of 1974 requires local government agencies to review its Conflict of Interest Code biennially. A local agency’s conflict of interest code must reflect the current structure of the organization and properly identify officials and employees who should be filing Statements of Economic Interests (Form 700s). A code tells public officials, governmental employees, and consultants what financial interests they must disclose on their Form 700s. It helps provide transparency in local government as required under the Political Reform Act.

Any newly created positions, whose duties would require them to disclose their economic interests under the Political Reform Act, must be identified and disclosed on an Agency Report of New Position Form 804, and then included in the Conflict of Interest Code during the biennial review.

There are two new positions that were added and disclosed per the FPPC regulations - Cemeteries Manager and Chief Building Official. The Conflict of Interest Code has been updated to add them (Exhibit “A”). By adopting the resolution, the City Council will be completing the required update to the City's Conflict of Interest Code.

Recommended Council Action
Adopt the resolution.

Alternative Actions
Council discretion.

Financial Impact
None
Environmental Review Status
Environmental Impact Report
Negative Declaration
Exempt
Not Applicable
Approved/Certified
No Action Required
Action Requested
Attachments
Agenda Item #7.9:

Resolution - Conflict of Interest Code 2024
Alignment with Council Goals:

Not Applicable
Agenda Item #7.9:

City of Sonoma
RESOLUTION # _______ - 2024

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

A CONFLICT OF INTEREST CODE AND RESCINDING PREVIOUS RESOLUTIONS WHEREAS, the Political Reform Act of 1974 (Government Code Section 81000, et. seq.) requires state and local government agencies to adopt and promulgate conflict of interest codes; and
WHEREAS, the Fair Political Practices Commission has adopted a regulation (2 California Code of Regulations Section 18730) which contains the terms of a standard conflict of interest code, and which may be amended by the Fair Political Practices Commission after public notice and hearings to conform to amendments to the Political Reform Act; and WHEREAS, designated officials and employees shall file their statements of economic interests with the City Clerk of the City of Sonoma and such statements shall be open for public inspection and reproduction pursuant to Government Code section 81008. Statements for all designated officials and employees will be retained by the City of Sonoma.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Sonoma as follows:

SECTION 1. Incorporation of State Regulations by Reference With the additions noted below, the terms of Title 2 California Code of Regulations Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission is hereby incorporated by reference and together with the List of Designated Positions and Disclosure Categories, as adopted by the City Council, shall constitute the Conflict of Interest Code of the City of Sonoma.

SECTION 2. Designated Positions with Reporting Requirements Members of boards and commissions appointed by the City Council, consultants, and city employees holding designated positions as shown on Exhibit A shall be considered designated positions subject to reporting requirements under the Conflict of Interest Code and shall disclose financial interests as set forth on Exhibit B which lists the individual disclosure categories. Said Exhibit A and Exhibit B are attached hereto and made a part hereof.

SECTION 3. Filing of Statements
Persons holding designated positions shall file Statements of Economic Interests with the City of Sonoma on Fair Political Practices Forms, in conformance with the individual disclosure categories and State guidelines.

SECTION 4. Late Filings and Failure to File Statements
Any violation of any provision of this Code is subject to the administrative, criminal and civil sanctions provided in the Political Reform Act, Government Code Sections 81000 et seq. ******
Agenda Item #7.9:

BE IT FURTHER RESOLVED, all previous resolutions adopting and/or amending the City of Sonoma Conflict of Interest Code are hereby rescinded in their entirety.

PASSED, RESOLVED, AND ADOPTED, at a Regular meeting of the City Council of the City of Sonoma on this 21st day of August 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________
John Gurney, Mayor
ATTEST:
_______________________________
Rebekah Barr, MMC, City Clerk
Agenda Item #7.9:

EXHIBIT “A”

LIST OF DESIGNATED POSITIONS

AND DISCLOSURE CATEGORIES
***see note below

POSITION DISCLOSURE CATEGORY
Accountant A
Accounting Manager A
Administrative & Project Manager (Public Works) A
Assistant City Manager/Admin Services Director A
Assistant to City Manager A
Associate Planner C
Cemeteries Manager A
Chief Building Official A
Chief of Police A
City Clerk A
City Prosecutor A
Contractual Consultants** A
Assistant City Attorney A
Deputy City Manager A
Deputy Finance Director A
Development Services Director/Building Official A
Finance Director A
Fire Chief A
Planning & Community Services Director A
Public Works Director/City Engineer A
Public Works Operations Manager A
Senior Management Analyst A
Senior Planner C
Successor Agency Attorney A
Sustainability Coordinator A

COMMITTEES/COMMISSIONS DISCLOSURE CATEGORY
Climate Action Commission C
Sonoma Community Housing Corp. Board of
Directors
C
Design Review Commission C
Parks, Recreation, and Open Space Commission C
** Contractual Consultant means an individual who, pursuant to a contract with the City, makes or participates in making governmental decisions. The City Manager may determine in writing that a particular consultant is hired to perform a range of duties that are limited in scope and thus is not required to fully comply with the disclosure requirements described in this section. Such written determination shall include a description of the consultant’s duties and based upon that description, a statement of the extent of disclosure requirements. The City Manager’s determination is a public record and shall be retained for public inspection in the same manner and location as this conflict of interest code. *** City Council Members, Planning Commissioners, City Manager, City Attorney, and the City Treasurer are required to file statements of economic interests pursuant to Government Code Section 87200, and are therefore, not included in the list of Designated Positions required to file pursuant to the City’s conflict of interest code.

Agenda Item #7.9:

EXHIBIT “B”

DISCLOSURE CATEGORIES

CATEGORY REPORTABLE INTERESTS
A Investments, business positions, income (including gifts, loans and travel payments) from sources located in or doing
business in the City, interests in real property located in the City, including property located within a two-mile radius of any property owned or used by the City.

B Investments, business positions, and sources of income (including gifts, loans and travel payments) from or in any business entity that engages in the type of services, supplies, materials, machinery, or equipment that is purchased or acquired by the employee’s department. If the employee is involved in purchasing decisions that affect more than one department, then the employee shall disclose all income (including gifts, loans and travel payments) and investment interests and business positions in any business that engages in the type of services, supplies, materials, machinery or equipment that the City might reasonably be expected to purchase or acquire.

C Investments in real property or interests in business positions in any business entity which owns property within the City or within a two-mile radius of any property owned or used by the City.

Agenda Item #7.9:

City of Sonoma
Agenda Item Summary
Meeting: City Council - 21 Aug 2024
Department
Public Works
Staff Contact
Ashley Cotter, PW Admin & Project Manager
Agenda Item Title
Adopt a Resolution Authorizing the City Manager to Execute a Task Order with Land Culture LLP, Previously Doing Business as Ann Baker Landscape Architect, for Olsen Park Renovations, Capital Improvement Project P-8
Summary
The City of Sonoma adopted a 5 year Capital Improvement budget at the June 19, 2024 City Council Meeting. This included CIP P-8, which is Olsen Park renovations. This work includes landscape design, which the City will procure through LandCulture LLP, previously doing business as Ann Baker Landscape Architect (ABLA) Services. The City has an open on-call contract with LandCulture LLP, which was awarded on January 23, 2023 after a competitive bidding process. Public Works, requested proposals for on-call landscape architect services to support the design and construction of these initial upcoming park projects, which includes improvements to Olsen Park. Public Works selected ABLA (now LandCulture LLP) from the response to proposals because they demonstrated the most expertise and experience in the areas of parks, municipal projects, neighborhood park design, landscape renovations, playground equipment, water conservation modifications, habitat restoration, and master planning.

This Task Order is to provide landscape architecture services at Olsen Park. Olsen Park renovations were identified in the 2022 Parks Needs Assessment. To date, LandCultureLLP has completed Phase 1 of this project, which included site analysis, community participating in design, and concept plan development. This also included a preliminary cost estimate, which is approximately $100,000 more than the City's available budget for this project. As such, this Task Order includes modification of the current concept plans to align the design concept with City budget. Additionally, Phase 2 is included in this task order, which includes developing construction documents for the approved design for City Council approval. This task order will allow the project to complete the design phase and move forward into the construction phase.

Recommended Council Action
Adopt the resolution authorizing the City Manager to execute a Task Order with LandCulture LLP
Alternative Actions
Council Discretion
Financial Impact
This task order is not to exceed $51,845.00. This will be funded out of P-8, the capital improvement project for the Olsen Park renovations. The 24-25 Capital Improvement Budget for this project is $250,166. This is funded by a combination of capital improvement fund, Agenda Item #7.10: