Sonoma City Council
September 18, 2024

Sixty days before the
Annual Conference
and Expo, Cal Cities
members may submit
policy proposals on
issues of importance
to cities. The resolution must
have the concurrence of at least
five additional member cities or
individual members.

How it works: Cal Cities
Resolutions and the General Assembly
General Assembly
General Resolutions Policy Committees
Developing League of California Cities policy is a dynamic process that engages a wide range of members to ensure Cal Cities represents cities with one voice. These policies directly guide Cal Cities’ advocacy to promote local decision-making, and lobby against statewide policies that erode local control.

The resolutions process and General Assembly is one way that city officials can directly participate in the development of Cal Cities policy. If a resolution is approved at the General Assembly, it becomes official Cal Cities policy. Here’s how resolutions and the General Assembly work.

The petitioned
resolution is an
alternate method
to introduce policy
proposals during
the annual conference. The
petition must be signed by
voting delegates from 10% of
member cities, and submitted to
the Cal Cities President at least
24 hours before the beginning
of the General Assembly.

Petitioned Resolutions
The Cal Cities
President assigns
general resolutions
to policy committees
where members
review, debate, and recommend
positions for each policy proposal.

Recommendations are forwarded
to the Resolutions Committee.

Who’s who
The Resolutions Committee
includes representatives
from each Cal Cities
diversity caucus, regional
division, municipal
department, and policy
committee, as well as
individuals appointed by
the Cal Cities president.

Voting delegates
are appointed by each
member city; every city
has one voting delegate.

The General Assembly is a
meeting of the collective
body of all voting
delegates —one from
every member city.

Seven policy committees
meet throughout the year
to review and recommend
positions to take on bills
and regulatory proposals.

Policy committees include
members from each Cal
Cities diversity caucus,
regional division, and
municipal department,
as well as individuals
appointed by the Cal
Cities president.

During the General Assembly, voting delegates
debate and consider general and petitioned
resolutions forwarded by the Resolutions
Committee. Potential Cal Cities bylaws
amendments are also considered at this meeting.

Cal Cities policy
development is a memberinformed process,
grounded in the voices and
experiences of city officials
throughout the state.

For more information visit www.calcities.org/general-assembly Prior to the Annual Conference and Expo
Resolutions Committee
The Resolutions
Committee considers
all resolutions. General
Resolutions approved1 by
either a policy committee
or the Resolutions Committee are next
considered by the General Assembly.

General resolutions not approved, or
referred for further study by both a
policy committee and the Resolutions
Committee do not go to the General
Assembly. All Petitioned Resolutions
are considered by the General
Assembly, unless disqualified.2
During the Annual Conference and Expo
1 The Resolution Committee can amend a general resolution prior to sending it to the General Assembly. 2 Petitioned Resolutions may be disqualified by the Resolutions Committee according to Cal Cities Bylaws Article VI. Sec. 5(f). 2 Agenda Item #9.4:

2024 Resolutions Packet
Policy Committee and Resolutions Committee Actions
The submitted resolution will be heard by the policy committee to which it was assigned, and the Resolutions Committee. The below table shows what recommendations these bodies may make on the resolution.

Policy Committee Actions Resolutions Committee Actions
Approve Approve
Disapprove* Disapprove*
No Action No Action
Amend and approve Amend and approve
Refer to appropriate policy committee
for further study*
Approve as amended
Refer as amended to appropriate
policy committee for further study*
Refer to appropriate policy committee
for further study*
Refer as amended to appropriate
policy committee for further study*
Approve with additional
amendment(s)
Additional amendments and refer to
appropriate policy committee for
further study*
*If a resolution is disapproved or referred for further study by all policy committees to which it is assigned and the Resolutions Committee, it will not proceed to the General Assembly. 3 Agenda Item #9.4:

2024 Resolutions Packet
General Assembly Voting and Discussion Procedures
Discussion Procedures:

Discussion procedures during the General Assembly are guided by two calendars:
the Consent Calendar and the Regular Calendar. As seen below, resolutions are calendared by the recommendations they receive from policy committees and the Resolutions Committee.

For General Resolutions:

Policy Committee
Recommendation
Resolutions Committee
Recommendation Calendar
Approve Approve Consent Calendar
Approve Disapprove or refer Regular Calendar
Disapprove or refer Approve Regular Calendar
Disapprove or refer Disapprove or refer Does not proceed to General Assembly
For Petitioned Resolutions:

Policy Committee
Recommendation Resolutions Committee Action Calendar
N/A
Approve Regular Calendar
Disapprove or Refer Regular Calendar
Disqualified Does not proceed to General
Assembly
Items on the Consent Calendar will be presented as one motion during the General Assembly from the Resolutions Committee chair. Unless an item on the Consent Calendar is set aside by the majority of the General Assembly, a vote will be taken on the whole calendar. It an item is set aside, it will be opened for discussion, followed by a vote.

Items on the Regular Calendar will be presented individually by the Resolutions Committee chair. After a recommendation is presented by the Resolutions Committee chair, the resolution will be opened for discussion by the General Assembly. A vote will take place following discussion.

Voting Procedures:

Per Cal Cities Bylaws Article XII, Sec. 2, all votes will be conducted by voice vote first. If the presiding official cannot determine the outcome a vote will be taken by an alternative method, typically a raise of voting cards by voting delegates. A roll call vote may be called for by delegates of ten percent or more of the General Assembly.
4 Agenda Item #9.4:

2024 Resolutions Packet
2024 Resolution

1. Resolution on Fair and Equal Treatment of All Governmental Officials at All Levels submitted by City of Glendora
• Letters of concurrence submitted by:
i. April A. Verlato, Mayor, City of Arcadia
ii. Robert Gonzales, Mayor, City of Azusa
iii. Tim Hepburn, Mayor, City of La Verne
iv. Bill Uphoff, Mayor, City of Lomita
v. John M. Cruikshank, Mayor, City of Rancho Palos Verdes • Referred to Governance, Transparency, and Labor Relations Policy Committee
• Policy Committee Recommendation:
• Resolutions Committee Recommendation:
5 Agenda Item #9.4:

2024 Resolutions Packet
Resolution No. 1: Fair and Equal
Treatment of All Governmental
Officials at All Levels submitted by
City of Glendora
6 Agenda Item #9.4:

2024 Resolutions Packet

1. A RESOLUTION OF THE GENERAL ASSEMBLY OF THE LEAGUE OF

CALIFORNIA CITIES CALLING FOR THE CALIFORNIA LEGISLATURE TO ENACT LAWS THAT ENSURE THAT “WHAT APPLIES TO ONE, APPLIES TO ALL” IN THE

FAIR AND EQUAL TREATMENT OF ALL GOVERNMENTAL OFFICIALS AT ALL

LEVELS IN THE STATE OF CALIFORNIA
Source: City of Glendora
Concurrence of five or more cities/city officials
City Officials: April A. Verlato, Mayor, City of Arcadia; Robert Gonzales, Mayor, City of Azusa; Tim Hepburn, Mayor, City of La Verne; Bill Uphoff, Mayor, City of Lomita; John M. Cruikshank, Mayor, City of Rancho Palos Verdes
Referred to: Governance, Transparency and Labor Relations Policy Committee
WHEREAS, the General Assembly of the League of California Cities objects to the practice of the California Legislature of imposing rules limiting authority or regulating the conduct of local municipal officials that do not also apply to elected officials of the State of California; and WHEREAS, examples of such rules or regulations that apply to local city elected officials that do not otherwise apply to the elected officials of the State of California include, but are not limited to:

California’s open meeting rules, codified in the Ralph M. Brown Act, Government Code, Chapter 9, §§ 54950 et seq., which purport to “declare[] that the public commissions, boards and councils and the other public agencies in this State exist to aid in the conduct of the people’s business. It is the intent of the law that their actions be taken openly and that their deliberations be conducted openly,” but which limits its application to “local agencies,” but not including elected officials of the State of California; Creating “one-off” exemptions, in the form of Senate Bill No. 174, from the California Environmental Quality Act (“CEQA”) which purportedly requires all government agencies to consider the environmental consequences of their actions before approving plans and policies or committing to a course of action on a project in order to demolish and then rebuild State offices for the Governor and other State officials; 7 Agenda Item #9.4:

2024 Resolutions Packet
Adopting rules, in the form of Senate Bill No. 1439, amending the Political Reform Act (the “Act”), by removing the exception for local elected officers from contribution limits requiring disqualification on development project decisions,” but not including elected officials of the State of California;
Adopting rules, in the form of Assembly Bill No. 571, that apply to city and county candidates for local elected office, but not to candidates for state-wide office, including, but not limited to: prohibiting the making a contribution over the AB 571 limit to another candidate in jurisdictions subject to the AB 571; requiring a candidate that has qualified as a committee to establish a separate controlled committee and campaign bank account for each specific office; prohibiting a candidate from redesignating a committee for one election for another election.

WHEREAS, the General Assembly of the League of California Cities now calls upon the Governor and the California Legislature to adopt a policy, practice, and procedure requiring, in their legislative activities, that “what applies to one applies to all.”
NOW, THEREFORE, BE IT RESOLVED at the League General Assembly, assembled at the League Annual Conference on October 18, 2024 in Long Beach, California, that the League calls upon the Governor of the State of California and the elected members of the California Legislature, including all members of the Senate and Assembly to adopt the following policy:
“The California State Legislature shall not enact, and the Governor shall not sign into law, any law or regulation that applies solely to elected officials of California cities and counties, unless such law or regulation also applies equally to members of the California State Assembly and Senate. This prohibition shall not apply to laws or regulations affecting the inherent powers of the legislative branch under the California Constitution.” 8 Agenda Item #9.4:

2024 Resolutions Packet
Resolution No. 1: Letters of
Concurrence
9 Agenda Item #9.4:

July 10, 2024
The City Council of Glendora
is proposing the following resolution for consideration at the California League of Cities annual conference
on
October 18, 2024
Proposed Resolution: (“To ensure fairness and equal treatment for all government officials in California”)
“The California State Legislature shall not enact, and the Governor shall not approve, any law or regulation that applies solely to elected officials of California cities and counties, unless such law or regulation also applies equally to members of the California State Assembly and Senate. This prohibition shall not apply to laws or regulations affecting the inherent powers of the legislative branch under the California Constitution.”
The following five city council members are in concurrence with their letters of support (attached):
✓ Mayor John Cruikshank, City of Rancho Palos Verdes
✓ Mayor Bill Uphoff, City of Lomita
✓ Mayor Robert Gonzales, City of Azusa
✓ Mayor April Verlato, City of Arcadia
✓ Mayor Tim Hepburn, City of La Verne
Please confirm receipt of this request.

Sincerely,
Michael Allawos
Council Member
City of Glendora
10 Agenda Item #9.4:

11 Agenda Item #9.4:

12 Agenda Item #9.4:

13 Agenda Item #9.4:

14 Agenda Item #9.4:

15 Agenda Item #9.4:

2024 Resolutions Packet
Resolution No. 1: Staff Analysis
16 Agenda Item #9.4:

League of California Cities Staff Analysis on Resolution No. 1 Staff: Johnnie Pina, Legislative Affairs, Lobbyist
Committee: Governance, Transparency, and Labor Relations Summary:

This Resolution states that the League of California Cities shall call upon the Governor of the State of California and the elected members of the California Legislature, including all members of the Senate and Assembly to adopt the following policy:
“The California State Legislature shall not enact, and the Governor shall not sign into law, any law or regulation that applies solely to elected officials of California cities and counties, unless such law or regulation also applies equally to members of the California State Assembly and Senate. This prohibition shall not apply to laws or regulations affecting the inherent powers of the legislative branch under the California Constitution.”
Background:

This resolution states that examples of the California Legislature imposing rules limiting authority or regulating the conduct of local municipal officials that do not also apply to elected officials of the State of California include, but are not limited to:
• California’s open meeting rules, codified in the Ralph M. Brown Act, Government Code, Chapter 9, §§ 54950 et seq.;
• “One-off” exemptions, in the form of Senate Bill No. 174, from the California Environmental Quality Act (“CEQA”);
• Rules, in the form of Senate Bill No. 1439, amending the Political Reform Act (the “Act”); and
• Rules, in the form of Assembly Bill No. 571, that apply to city and county candidates for local elected office, but not to candidates for state-wide office.

Ralph M. Brown Act
The California Attorney General’s (AG) Office defines The Ralph M. Brown Act (Brown Act) as what governs meetings conducted by local legislative bodies, such as boards of supervisors, city councils and school boards. The AG’s office states the Act represents the Legislature’s determination of how the balance should be struck between public access to meetings of multi-member public bodies on the one hand and the need for confidential candor, debate, and information gathering on the other.

The Ralph M. Brown Act governs local agencies, the Bagley-Keene Open Meeting Act covers all state boards and commissions, and Government code 17 Agenda Item #9.4:

9027 governs the state Legislature. The California Constitution also mandates open meetings for state agencies, boards, and commissions. Specifically, the Constitution requires that each local agency comply with the Brown Act (Article I, section 3(b)(7)): and that the proceedings of each house of the Legislature be open and public (with exceptions for employment matters; matters affecting security; confer with legal counsel; and to meet as a caucus (Article IV, section 7).

Although fairly detailed requirements apply to state agencies and other state bodies, they do not apply to the Legislature. The Legislature has Constitutional authority to adopt rules for its proceedings that are consistent with the requirement that the proceedings of each house and the committees be open and public.

Another notable difference between the Legislature and a city council is the ability for Legislators to have a caucus to discuss a bill, express how they will vote, and to count votes. This is not allowed under the Brown Act. One other difference is that the laws governing teleconferencing for members of the state Legislature is far less flexible than it is for local bodies. However, state agencies have more flexibility than locals in that regard.

California Environmental Quality Act (“CEQA”)
The Resolution cites the Legislature's action in exempting from CEQA the reconstruction of the State Capitol Annex building. The State Legislature enacted the California Environmental Quality Act (CEQA) in 1970, establishing it as a public disclosure law for the environmental review of discretionary projects and a process for mitigating or avoiding potential environmental impacts.

SB 174 (Committee on Budget and Fiscal Review) Chaptered by Secretary of State. Chapter 74, Statutes of 2024 was signed into law July 2, 2024. This bill exempts the work performed under the State Capitol Building Annex Act of 2016 from the California Environmental Quality Act (CEQA). In this example the Legislature exempted themselves as not being considered a “public agency,” “state agency,” or “lead agency” under CEQA. A lead agency under CEQA is the public agency that has the principal responsibility for carrying out or approving a project that is subject to CEQA.

Over the years, the Legislature has also created many CEQA exceptions and exemptions for local projects involving local agencies as well.

The Political Reform Act (PRA) - Senate Bill No. 1439
SB 1439 (Glazer) Chaptered by Secretary of State. Chapter 848, Statutes of 2022 amends section 84308 and is aimed at preventing "pay-to-play" practices, in part by prohibiting parties, participants, and their respective agents in a 18 Agenda Item #9.4:

proceeding involving a license, permit, or other entitlement for use from contributing more than $250 to an officer of an agency during a 12 month period. When the Levine Act was first enacted in 1982, Section 84308 applied to appointed members of boards and commissions who were running for elective office. SB 1439 expended this law to now apply to local elected officials. Since it is focused on permits and licenses, it now applies to State agencies and local agencies that approve permits and licenses. Section 84308 does not apply to the Legislature or the Courts. It is important to note that unlike local governments, neither issue permits and licenses.

The Political Reform Act (PRA) - Assembly Bill No. 571
AB 571 (Mullin) Chaptered by Secretary of State. Chapter 556, Statutes of 2019 established default campaign contribution limits for county and city office at the same level as the limit on contributions from individuals to candidates for Senate and Assembly, effective January 1, 2021. This bill permitted a county or city to establish its own contribution limits, which would prevail over these default limits.

The Resolution cites AB 571 as an example of treating cities differently than the State. The Fair Political Practices Commission clarifies in their AB 571 fact sheet that under AB 571 a city may elect to have "no" contribution limit in which case the state contribution limit will not apply as a default for that jurisdiction. A city or county can set contribution limits higher than the default state limit, AB 571 sets a default in line with contributions Assembly Members and Senators if a city or county is silent on contribution limits.

Fiscal Impact:

Unknown.

Existing Cal Cities Policy:

Mission Statement
To expand and protect local control for cities through education and advocacy to enhance the quality of life for all Californians.

We Believe:
• Local self-governance is the cornerstone of democracy. • In the involvement of all stakeholders in establishing goals and in solving problems.
• In conducting the business of government with transparency, openness, respect, and civility. The spirit of honest public service is what builds communities.
• Open decision-making that is of the highest ethical standards honors the public trust.
• The vitality of cities is dependent upon their fiscal stability and local autonomy. The active participation of all city officials increases Cal Cities’ effectiveness.
19 Agenda Item #9.4:

• Partnerships and collaborations are essential elements of focused advocacy and lobbying.
• Ethical and well-informed city officials are essential for responsive, visionary leadership and effective and efficient city operations.

Comments:

Additional Examples
The Legislature has passed and the Governor has signed many laws that apply to local governments and do not apply to the state or the state Legislature. This year AB 2561(McKinnor) was introduced, which requires local governments to present in a public meeting a detailed report about their vacancy rates and detailed information about their hiring practices. This is an attempt to address public sector vacancy rates. This bill does not apply to the state in a time when they are also dealing with high vacancy rates.

Additionally, there were several bills that aim to amend the Levine Act, which now applies to local elected officials, to make changes to SB 1439, referenced previously in the analysis. None of the bills would amend the law to be applicable to Assembly Members or Senators.

AB 817 (Pacheco), co-sponsored by Cal Cities tried to bring parity to the Brown Act by making the teleconference rules for state advisory bodies the same for local advisory bodies but the Legislature struck the bill down.

Applying to elected officials or to the legislative body? Legislature or the State? The resolution also states, “… applies solely to elected officials of California cities and counties, unless such law or regulation also applies equally to members of the California State Assembly and Senate.”
This portion of the resolve clause is specifically speaking to local elected officials and State Assembly Members and Senators. However, many of the “where as” clauses are in reference to laws that apply to cities, the state and the Legislature as government agencies and not specifically to the elected officials on the governing bodies. For example, the Brown Act applies rules to the Legislative body and not the individual council member. Additionally, the city council as a whole is the lead agency under CEQA and not the individual council members.

Inherent Powers of the Legislative Branch
The resolution also states, “This prohibition shall not apply to laws or regulations affecting the inherent powers of the legislative branch under the California Constitution.”
It is unclear what inherent powers of the legislate branch under the California Constitution means in this context. The legislative branch does have the power 20 Agenda Item #9.4:

of preemption over cities and can state that a change in law is a matter of state wide concern. This allows the legislative branch to apply new laws or amend existing laws to apply to general law and charter cities. It seems like the last sentence of the resolve clause could negate the rest of the resolve clause if not clarified.

Support:

The following letters of concurrence were received:

April A. Verlato, Mayor, City of Arcadia
Robert Gonzales, Mayor, City of Azusa
Tim Hepburn, Mayor, City of La Verne
Bill Uphoff, Mayor, City of Lomita
John M. Cruikshank, Mayor, City of Rancho Palos Verdes
21 Agenda Item #9.4:

City of Sonoma
Agenda Item Summary
Meeting: City Council - 18 Sep 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 Hinderliter De Llamas & Associates (HdL Companies) for Business License Administrative Services, Short Term Rental (STR) Administrative Services and Transient Occupancy Tax (TOT) Administrative Services
Summary
Currently, the City operates its business license and TOT process internally. This process requires significant staff time during various periods throughout the year, inclusive of maintaining the administrative record through a business license software program, significant manual entries/forms, and in-person payments that require additional administrative procedures. Currently, the City has over 2,550 business licenses and 69 properties to manage and a limited way to address delinquencies or enforce businesses that may require a business license but have not obtained one or pay TOT. The agreement with HdL company will take advantage of updated technology tools and add the appropriate capacity to efficiently manage these fees and actively identify those that are not paying the required TOT or business license fees, resulting in additional revenue to the City.

The City continues to look for ways to not only improve efficiency but sustainably maintain service delivery and identify loss of revenue. This is a key function that will address customer service, revenue stability and transparency for the City. This contract with HdL Companies will offer full business license, TOT and STR administration service that will allow City staff to transition to address other critical needs in the Finance Department.

Recommended Council Action
Adopt the resolution.

Alternative Actions
Council discretion.

Financial Impact
Approval of this professional services agreement will have a minimum fiscal impact on the General Fund because the existing cost of managing the Business License will be replaced by this agreement. The current software (about $16,000/year), payment service (about $11,100/year) and the staff time and additional revenue will offset the cost of this new contract with HdL.

Per the attached proposal, cost break-down is as follows:

Agenda Item #9.5:

Environmental Review Status
Environmental Impact Report
Negative Declaration
Exempt
Not Applicable
Approved/Certified
No Action Required
Action Requested
Attachments
Resolution
PSA - HdL
HdL BL Admin Proposal
Agenda Item #9.5:

City of Sonoma
RESOLUTION # _______ - 2024

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SONOMA AUTHORIZING

THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICE AGREEMENT

WITH THE HINDERLITER DE LLAMAS & ASSOCIATES (HDL COMPANIES) FOR

BUSINESS LICENSE ADMINISTRATIVE SERVICES, SHORT TERM RENTAL

ADMINSTRATIVE SERVICES AND TRANSIENT OCCUPANCY TAX SERVICES WHEREAS, the City Finance Department desires to enter an agreement with HDL Companies to manage the Business License Administrative Services, Short Term Rental Administrative Services and Transient Occupancy Tax (TOT) Services; and WHEREAS, the proposed professional services will make the City Business License Administration services more efficient and cost effective; and WHEREAS, the proposed professional services will improve process for delinquent accounts and will improve revenue by discovery and audits; and
WHEREAS, the proposed system will increase departmental capabilities and allows staff to work on other projects without interrupting Business License, TOT and Short Term Rental Administrative services, and
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 the HDL Companies for Business License Administrative Services, Short Term Rental Administrative Services and Transient Occupancy Tax Services.

PASSED, RESOLVED, AND ADOPTED, at a Regular meeting of the City Council of the City of Sonoma on this 18th day of September 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________________
John Gurney, Mayor
ATTEST:
__________________________________
Rebekah Barr, MMC, City Clerk
Agenda Item #9.5:

Professional Services Agreement
(City of Sonoma / HdL Companies)
336531.1 Page 1 of 21
Approved for use 12/28/2023

PROFESSIONAL SERVICES AGREEMENT

FOR CONSULTANT SERVICES
(City of Sonoma / Hinderliter De Llamas & Associates)

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 _Hinderliter De Llamas & Associates “Consultant”) (collectively, “parties”).

2. RECITALS

2.1 City has determined that it requires the following professional services from a consultant: Business License, Transient Occupancy Tax and Shortterm rental administration.

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 #9.5:

Professional Services Agreement
(City of Sonoma / HdL Companies)
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Approved for use 12/28/2023
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 September 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 October 2024.

3.4 “Consultant Project Administrator” means Connor Duckworth, HdL Companies. 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.

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

3.7 “Termination Date” means September 2026.

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 #9.5:

Professional Services Agreement
(City of Sonoma / HdL Companies)
336531.1 Page 3 of 21
Approved for use 12/28/2023
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 #9.5:

Professional Services Agreement
(City of Sonoma / HdL Companies)
336531.1 Page 4 of 21
Approved for use 12/28/2023
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 #9.5:

Professional Services Agreement
(City of Sonoma / HdL Companies)
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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 #9.5:

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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 #9.5:

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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 #9.5:

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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 #9.5:

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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 #9.5:

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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 #9.5:

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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 #9.5:

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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.

Agenda Item #9.5:

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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.

Agenda Item #9.5:

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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.

Agenda Item #9.5:

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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
City of Sonoma
Finance Director
No. 1 The Plaza
Sonoma, CA 95476
Telephone: (707) 938-3681
Facsimile: (707) 938-3934
Email: [email protected]
If to Consultant:

TBD
[Company]
[Address]
[Address]
Telephone: [Insert]
Facsimile: [Insert]
Email: [Insert]
With courtesy copy to:

David J. Ruderman, Sonoma City Attorney
Colantuono, Highsmith & Whatley, PC
Agenda Item #9.5:

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670 W. Napa Street, Suite F
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.

Agenda Item #9.5:

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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 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 Agenda Item #9.5:

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treated during employment without regard to race, 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. 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.

Agenda Item #9.5:

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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 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 Agenda Item #9.5:

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shall be effective and binding only if made in writing and executed on behalf of the City and Consultant.

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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(City of Sonoma / HdL Companies)
336531.1 Page 21 of 21
Approved for use 12/28/2023
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”
[Name of Company or Individual]
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:________________________
Agenda Item #9.5:

Professional Services Agreement
(City of Sonoma / HdL Companies)
336531.1 Page 22 of 1
Approved for use 12/28/2023
“EXHIBIT A”
Scope of Work
Agenda Item #9.5:

336531.1
“EXHIBIT B”
Approved Fee Schedule
Agenda Item #9.5:

336531.1
“EXHIBIT C”
Campaign Contribution Disclosure Form
Agenda Item #9.5:

336531.1

CAMPAIGN CONTRIBUTION

DISCLOSURE PROVISIONS
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 returned to the City with your
application.

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
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
Agenda Item #9.5:

336531.1
is a party to a proceeding, the majority shareholder
is subject to these provisions.

Date Phone
Agenda Item #9.5:

City of
Sonoma, CA
Tax & Fee Administration Services
September 9, 2024

SUBMITTED BY
HdL Companies
120 S. State College Blvd., Suite 200
Brea, CA 92821
hdlcompanies.com

CONTACT
Connor Duckworth
T: 714-879-5000
E: [email protected]
Agenda Item #9.5:

Thank you for the opportunity to present this proposal for HdL’s Services:
• HdL Business License Administration/Compliance Services • HdL Transient Occupancy Tax Administration Services
• HdL Short Term Rental Administration Services
Please be advised that we maintain a busy implementation schedule throughout the year. Your position in the implementation schedule will be determined when a signed agreement is received.

This proposal is valid until: November 30, 2024. Should you have any questions, please contact me at 888.861.0220 or by email at [email protected].

Tax and Fee Services
Service Compensation
Business License Tax Administration
(includes discovery/audits)
$18.00/processed account + CPI
Business License Tax Discovery 40% of Revenues Collected Business License Tax Audit 40% of Revenues Collected
Transient Occupancy Tax
Administration
$900.00/property/year + CPI
Short Term Rental Administration $18.00/processed account + CPI Implementation Fee $5,000.00 One-time fee
Payment transactions are subject to typical payment processing and returned payment fees. HdL supports both agency funded (fees paid by City) and convenience fee (fees paid by taxpayer) models.

HDL BUSINESS LICENSE TAX ADMINISTRATION SERVICES
General Scope of Services
Business License Tax Administration (Includes Revenue Discovery and Audits) The Business License Tax Administration Service provides a turnkey approach for local governments that need assistance with administering business license taxes. Our team of experts can manage all or parts of the business tax operations conducted by the City. When combined with the Compliance Management services, the City receives the benefit of increased revenues and superior customer service, while reducing internal costs and gaining efficiencies.

Agenda Item #9.5:

HdL will transfer the City’s existing databases as they relate to business license tax into HdL’s internal administration tools. HdL will maintain the data and provide access to or copies of data or reports at the City’s request. While access to online systems will be available for the City to use at their discretion, the City will not be required to use or maintain any software in house for managing the business license registry.

Renewal Processing – Send active business license accounts a renewal notice within 45 days of the renewal period ending. Accounts will receive all applicable forms necessary to complete the renewal process.

New Account Processing – HdL will process any new business license applications and complete the new account registration process in a timely fashion. HdL will also facilitate intracity departmental approvals such as zoning, code compliance, fire inspection, and other regulatory related functions.

Delinquent Account Processing – HdL will endeavor to collect delinquent accounts through a series of City approved processing methods. This will include at minimum two follow up delinquent notice and up to two telephone calls. Delinquent accounts will be collected with full penalties as allowed by the Municipal code or through current City practices. Accounts that remain delinquent will be processed through the City approved processes established in HdL’s collections component of the Compliance Management Program.

On-Line Filing & Payment Processing – HdL registers a City approved domain name which will serve as the starting point for all web-based activities. This City specific site is designed to look and feel like the City’s own web pages and ensures a level of continuity between the business community, the City, and HdL.

With HdL Flex File, businesses can choose to file their new business registration as well as renew their license and make payments via our on-line filing portal. In addition to filing and paying for taxes, businesses can obtain copies of applications, general support and FAQs, schedule appointments and request copies of their tax registration all with the click of a button. Our on-line services underscore HdL’s commitment to excellence in customer service and education by continually improving the registration and payment experience for the business community.

Payment Posting/Processing – HdL will process all payments received in an expedited manner.

License accounts will be updated daily with payment information and revenues to be disbursed to the City net applicable fees at an interval to be agreed to during the project planning phase.

Disbursements typically occur monthly but can be remitted as often as weekly depending on volumes and City needs. HdL’s payment acceptance process accepts the following payment types:
✓ Check / Money Order /Cashier’s Check
✓ E-Check
✓ Debit Cards
✓ Credit Cards (Visa, Mastercard, Discover, & American Express) ✓ Check by Phone
HdL currently utilizes multiple payment gateway providers for on-line payment acceptance. HdL will work with the City to determine which provider, rate structures, and card types meet the City’s needs. HdL can also utilize the same provider and process used by the City’s current on-line functionality.

Agenda Item #9.5:

Business Support Center – HdL will provide businesses with multiple support options for registering, renewing, making payments and for general inquiries. A toll-free number will be provided to businesses in order to access one of our license specialists Monday-Friday 8:00am to 5:00pm Pacific. Businesses will also have access to support via, e-mail, fax, and via the Business Support Center On-Line. HdL constantly monitors quality control points to ensure courteous customer service, minimal hold times under 2 minutes, and the return of voice messages the same business day.

Business License Tax - Revenue Discovery
Enriched Data Portfolio / Lead Identification – Utilizing data provided by the City, as well as the HdL Enriched Data Portfolio (EDP), HdL’s team builds an enhanced listing of entities subjected to licensure or taxation including, but not limited to, those businesses physically located in the City, itinerant businesses, and entities participating in the sharing economy such as shortterm rentals (STRs), drive sharing services and others. These entities are electronically matched to the existing files of the City using advanced data matching algorithms, allowing HdL staff to identify which entities are compliant and which entities require follow up.

Field Surveys – Experienced field crews, equipped with the most advanced tools available (mobile mapping/GPS systems, tablet computers pre-loaded with various City and state-wide databases, etc.) may canvass commercial areas of the City to develop and enhance the leads identified in the EDP. Field Surveys provide additional inventories of active businesses as well as to provide on-site verifications of data culled from other sources.

Exception Resolution – Records are reviewed by our skilled team members, filtering out records that may lead to erroneous contacts. This extra step allows staff to find additional revenues not otherwise identifiable through electronic means and assists in reducing potential complaints levied at City staff and management from pursuit of false positives.

Compliance Communication and Outreach – Upon exception resolution, HdL staff initiates contact with the identified entities through a series of City approved communication methods. HdL makes every effort to simplify the process for taxpayers and utilizes a variety of mediums for communication including mail, telephone, email and web-site access. Potential non-compliant entities are notified of their options to comply or dispute their non-compliant status. Initial notification packets include everything a business needs to become compliant and multiple methods of resolving their accounts.

Business Support Center – HdL operates a business support and service center where the business community can access expert staff during normal business hours. Businesses calling our toll-free line can expect minimal hold times along with access to a variety of options which include filing support, payment options, resolution of specific tax issues and other services designed to reduce the burden of registering and filing taxes. Our team of experts, including our resident Certified Revenue Officers (CRO), implements a business friendly and education centric approach to supporting the business community in all aspects of the management and compliance process.

Business Support Center ~Online – Businesses are encouraged to take advantage of the range of services available on-line, 24 hours a day, seven days a week. With HdL Flex File, businesses Agenda Item #9.5:

can choose to file their new business registration as well as make payments via our on-line filing portal. In addition to filing and paying for taxes, businesses can obtain copies of applications, general support and FAQs, schedule appointments and request copies of their tax registration all with the click of a button. Our on-line services underscore HdL’s commitment to excellence in customer service and education by continually improving the registration and payment experience for the business community.

Document Submission / Processing – Whether the taxpayer chooses to respond by mail, email or our online filing website, each application submission is reviewed for completion and accuracy prior to processing. Any additional documentation needed to complete the approval of a submission, such as a home occupation permit, can also be requested or forwarded to other City departments either as a pre-requisite or as a courtesy to the business. All submissions are filed and stored electronically and made available to the City via standard reporting processes or upon request.

Invoicing – Once an application is approved, invoices are forwarded to the taxpayer indicating detailed tax calculations and balances owed. Taxpayers are provided the opportunity to pay their balances via mail, online, or over the phone services. Taxpayers will also have continued access to our Business Support Center for any questions or disputes arising from the invoice process.

Registry Update – Upon collection of all requirements which may include the payment, application and/or other documentation, HdL will prepare a Registry Update package to include payment as well as copies of all taxpayer correspondence and other relevant information. Data in the City registry file stored in the HdL Prime Software Suite is updated daily with packages from the Compliance Management Services. Once completed, the business will be processed through the standard processes approved through the HdL Operations Management Component.

Business License Tax – Audits
Analysis & Selection – Audit candidates are selected using a variety of selection methodologies developed by our audit team using decades of business license tax audit experience. Preliminary analysis reports on each business selected are shared with the City prior to moving through the audit phases.

Audit Notification & Scheduling – Businesses selected by HdL and approved by the City are sent a letter notifying them of a scheduled Compliance Analysis Audit. Every effort is made to promote a positive experience for the taxpayer. A detailed description of the requirements and relevant documentation required for the audit is provided to the business 2 weeks in advance of the proposed audit date. If the business is unable meet the audit date selected by the City all efforts to reschedule the audit to a more accommodating date will be made. Businesses are also afforded the opportunity to schedule flexible appointment times by contacting the Business Support Center or visiting our online support center.

Compliance Analysis & Audit – The HdL audit team will audit the financial records of the business to determine compliance with business tax regulations. HdL validates taxing variables such as gross receipts and other relevant information for determining compliance. In addition to identifying underreporting issues, the HdL Audit Program will also focus on other compliance related issues such as assuring correct classifications, multiple location allocation, apportionment issues, and identifying business to business relationships that may create tax liability for 3rd parties.

Agenda Item #9.5:

Audit & Compliance Report – Upon completion of the audit and analysis, and prior to additional actions, a compliance report will be generated and reviewed with the City. The report will indicate specific results of the review and recommended future actions. Documentation that substantiates the findings in the report will be included with the report to assist the City and HdL in determining next step of the process.

Deficiency and Commendation Notification – Upon final review of the audit and analysis report businesses that are found to have deficiencies will be notified of the findings as well as the payment and appeal processes. HdL will also work with businesses found to be deficient to explain the current findings and educate taxpayers on proper future filing procedures so as to prevent future errors and deficiencies. Businesses found to be in compliance, will be sent a commendation letter thanking them for their compliance.

Invoicing & Collections – Business found to be underreporting are invoiced through the standard City approved collections process. Balances are collected and remitted along with supporting documentation to the City through the approved remittance processes.

TRANSIENT OCCUPANCY TAX ADMINISTRATION
General Scope of Services
HdL’s transient occupancy tax administration service goes beyond scheduled cyclical audits, providing compliance monitoring of each return as it is filed while unburdening the City from the day-to-day administration of the TOT revenue program. Continual monitoring of returns is the optimal way to increase compliance while maintaining positive relations with the City’s lodging providers.

The program is education focused, ensuring that lodging providers are clear on reporting requirements and methodology. HdL’s tax administration professionals are available as needed to support both the City’s team and the City’s lodging providers. The City is kept up to date, with 24x7 online access to HdL’s client portal containing real time access to registration and filing data, and management reporting. HdL’s TOT administration service incorporates all of the following:

Tax Registration Database Management – HdL will transfer the City’s existing databases as they relate to TOT into HdL’s internal administration tools. HdL will maintain the data, software, online filing portal for lodging providers, and online client portal for the City.

Return Processing – HdL will process TOT filings within 5 days of submission. Accounts will receive all applicable forms necessary to complete the renewal process.

New Account Processing – HdL will process any new TOT registrations for Lodging Establishments that change hand or newly offered properties.

Agenda Item #9.5:

Payment Posting / Processing – HdL will process all payments made for new and existing lodging providers. Accounts will be updated with payment information and revenues will be remitted to the City net HdL’s fees on no less than a monthly basis.

On-Line Filing & Payment Processing – With input from the City, HdL crafts a customized website and domain for the City’s taxpayers to submit online forms, returns, and payments along with other customer support related items.

Compliance Monitoring & Lodging Provider Audits – HdL will ensure accurate filings of TOT returns by consistently monitoring returns and educating lodging providers on filing requirements.

HdL will also provide cyclical compliance audits as mutually agreed to by the City and HdL, ensuring all providers are audited at least once every three years. The compliance audit process is described above in Option 1.

Reports – HdL’s TOT administration service includes a variety of standard reports demonstrating account activity and filing trends. During service implementation HdL will work with the City to identify reporting requirements and frequency/method of delivery and will supplement our standard service with custom reports as needed to meet the City’s requirements.

Progress Payments – HdL’s TOT administration service is billed monthly based on activity completed during the prior month. If standalone audits are conducted, they are billed only upon completion of the audit.

Customer Support Center – HdL will provide lodging providers with multiple support options for registering, filing returns, making payments and for general inquiries. A toll-free number will be provided to businesses in order to access one of our tax specialists. Lodging providers will also have access to support via e-mail, fax, and the online Business Support Center.

Annual Audit Plan – During implementation, HdL gathers all the historical data available from the City and leverages internal data sources and expertise to provide an analysis of all lodging providers, along with a recommended audit schedule. This allows HdL to work cooperatively with the City to identify the entities that require attention first. HdL works directly with the City to ensure consensus on the audit schedule for the program.

SHORT TERM RENTAL ADMINISTRATION
General Scope of Services
The Short-Term Rental (STR) Program provided by HdL takes a unique approach in ensuring compliance and educating lodging providers, including short term rental hosts (STR Hosts), in transient occupancy tax regulations and filing procedures, regulatory permits and licensing, and other City specific goals and objectives. HdL’s program involves a modular, customer service Agenda Item #9.5:

centric approach, which reduces City administrative costs and provides the City with assurances of future compliance and reporting practices from the City’s short-term rental lodging industry.

HdL’s modular approach starts with a detailed analysis of STR listing on a variety of published methods, including Airbnb, Home Away, VRBO, etc. This process creates a full inventory of shortterm rentals within the City’s proscribed geographic boundary, including the full name of the owner and the physical address of the unit. Each STR is tracked and updated nightly with valuable data that can include items such as number of nights rented, average occupancy rates, room rates, as well as trend and usage reporting.

Following identification, HdL conducts a targeted education and compliance campaign designed to inform STR Hosts of their obligations to file and remit taxes and other requisite licenses and permits as may be needed. Each lodging provider is provided a full overview of the requirements and how to best comply both in the present and the future. During the registration process, HdL offers a variety of support options to the community including online filing, file-by-phone, email, and registration via standard mail. HdL tax and license specialists are available throughout the process to provide support to the STR community and to assist in the registration process.

Once registered, accounts move into a standard administration process. HdL manages the filing of tax returns and other prerequisites on a quarterly or monthly basis, depending on City requirements. This includes mailing of tax returns, processing of payments, customer support, delinquency follow up, and the development and management of an online portal for registration, filing, payments, and other support related needs.

STR Identification & Monitoring
HdL compiles a list of all actively posted short term rentals available from a wide array of sources.

Lists are compiled and aggregated to accommodate duplicate listings from various sites. During the identification and monitoring process, HdL will:
• Scan over 20 different rental sites, including global aggregators like HomeAway/VRBO Airbnb, Turnkey.com, and Booking.com, national aggregators like Vacasa and Turnkey and small, local property management firms.
• Match Listings to specific parcels using GIS and property tax assessor data. • Create comparison reports to determine which properties may already be compliant or registered and paying taxes.
• Provide visual map of all listings within the City.
• Record listing details such as start date, various sites linked to, other information necessary for documenting evidence of STR activity; and • Continually monitor activity to identify and record new listings and closures to ensure accurate real-time identification and monitoring.

Agenda Item #9.5:

City of Sonoma
Agenda Item Summary
Meeting: City Council - 18 Sep 2024
Department
Finance
Staff Contact
Prapti Aryal, Finance Director
Agenda Item Title
A Resolution Authorizing the City Manager to Execute a Professional Service Agreement with OpenGov for Cloud Budgeting & Planning Software and Implementation Summary
For years, City Staff has been developing and managing the annual budget using various Excel, Word, and other manual tools. This process heavily relies on linked Excel spreadsheets and documents, making it difficult for multiple users to work on the budget simultaneously and excluding public participation. The Finance Department manages the budget process, uploading data from the City’s accounting system, Springbrook, into spreadsheets. Department leaders then prepare their budget proposals in these spreadsheets, which Finance staff manually compile and update. This manual process increases the chance of errors, hinders collaboration, and limits insights for adjustments and long-term planning.

Since 2021, OpenGov has been a trusted partner to the City, and currently powers our online permitting solution. Also, part of the same cloud suite, OpenGov offers the only modern, fullfeatured Budgeting & Planning software specifically built to meet the unique needs of public sector planning and analysis. OpenGov serves nearly 2,000 local governments across the United States, including a strong user presence in the state of California. This community includes but is not limited to, Yountville, American Canyon, Cloverdale, Clearlake, Solano County, Los Altos, Benicia, Foster City, Cupertino, Delano, Solvang, Scotts Valley and Corte Madera.

To improve efficiency, adaptability, and public trust, the City can benefit from OpenGov Budgeting & Planning. This solution enhances collaboration, offers real-time feedback, and supports strategic planning. Additionally, OpenGov’s Online Budget Book can help the City apply for the GFOA distinguished budget award and provides an interactive tool for staff and community engagement.

Approval of this agreement will allow staff to deploy and utilize this solution during the upcoming Fiscal Year 2025-25 budget cycle, and implementation will begin immediately.

Recommended Council Action
Adopt the resolution Authorizing the City Manager to Execute a Professional Service Agreement with OpenGov for Cloud Budgeting & Planning Software and Implementation.

Alternative Actions
Council discretion.

Financial Impact
Agenda Item #9.6:

This project will be funded from Finance Operating Budget (100-41004-311-50311) that has been approved during budget adoption. The total cost of the project for FY 2024-25 including the implementation is $75,676.75.

Environmental Review Status
Environmental Impact Report
Negative Declaration
Exempt
Not Applicable
Approved/Certified
No Action Required
Action Requested
Attachments
Resolution - OpenGov - Budgeting Planning
OpenGov Budgeting & Planning Order Form
OpenGov Statement of Work
Alignment with Council Goals:

ECONOMIC DEVELOPMENT/REVENUE STEWARDSHIP
Agenda Item #9.6:

City of Sonoma
RESOLUTION # _______ - 2024

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SONOMA AUTHORIZING

THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICE AGREEMENT

WITH THE OPENGOV FOR CLOUD BUDGETING & PLANNING SOFTWARE AND

IMPLEMENTATION
WHEREAS, the City Finance Department desires to enter an agreement with OpenGov to for cloud Budgeting & Planning Software and Implementation of Professional Services; and WHEREAS, the proposed professional services will make the City budget process more efficient, collaborative, accessible, and strategic; and WHEREAS, the proposed professional services will support City Staff in the configuration and deployment of cloud-based budgeting and planning software which encompasses operating, workforce planning, capital budgeting, online budget book publications; and WHEREAS, the proposed system will connect stakeholders to the process, engage them for real time feedback, internal efficiencies, and more time for strategic planning; and NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Sonoma hereby authorizes the City Manager to execute an agreement with OpenGov for cloud-based Budgeting & Planning software and implementation of professional services.

PASSED, RESOLVED, AND ADOPTED, at a Regular meeting of the City Council of the City of Sonoma on this 18th day of September 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________________
John Gurney, Mayor
ATTEST:
__________________________________
Rebekah Barr, MMC, City Clerk
Agenda Item #9.6:

OpenGov Inc.
660 3rd Street, Suite 100
San Francisco, CA 94107 United States
Q017118
9/12/2024 Kelly Ammons
9/30/2024 [email protected]
10/1/2024 Prorated + 24 Months
6/30/2027
City of Sonoma, CA Prapti Aryal
1 The Plaza [email protected]
Sonoma, CA (707) 933-2235 United States
Annually in Advance Net Thirty (30) Days
Product / Service Start Date End Date Annual Fee
Budgeting & Planning 10/1/2024 6/30/2025 $26,676.75
Budgeting & Planning 7/1/2025 6/30/2026 $40,181.40
Budgeting & Planning 7/1/2026 6/30/2027 $42,190.47
See Service Terms
Product / Service Description
Product configuration, setup, and training described in the attached SOW.

October 1, 2024 $75,676.75
July 1, 2025 $40,181.40
July 1, 2026 $42,190.47
This Order Form incorporates the OpenGov Software Services Agreement ("SSA") between the parties dated December 8, 2021.

The "Agreement" between OpenGov and the entity identified above ("Customer") consists of the Order Form, SSA, and, if Professional Services are purchased, the Statement of Work.

By signing this Agreement, Customer acknowledges that it has reviewed, and agrees to be legally bound by the Agreement. Each party’s acceptance of this Agreement is conditional upon the other’s acceptance of the Agreement to the exclusion of all other terms.

Signature: Signature:

Name: Name:

Title: Title:

Date: Date:

OpenGov Deployment — One Time Fee (Prepaid Hours)
Order Form Number: Created On: Prepared By: Order Form Expiration: Email:

Subscription Start Date: Contract Term:

Subscription End Date:

Customer: Contact Name: Bill To/Ship To: Email:

Phone:

Billing Frequency:

Payment Terms:

SOFTWARE SERVICES:

Annual Subscription Total:

PROFESSIONAL SERVICES:

Professional Services Total: $49,000.00
Service Terms
Service Date: Amount:
*Notwithstanding the terms of the incorporated SSA, all fees for the Software Services and Professional Services shall be due and payable, in advance, 30 days from receipt of the invoice. Fees shall not be subject to milestone or approval based payments.

City of Sonoma, CA OpenGov, Inc.

Customer Information
Order Details
Order Form Legal Terms
(Prorated Software Fee + Professional Services)*
(Annual Software Fee)
Agenda Item #9.6:

Statement of Work
City of Sonoma, CA
Creation Date: 9/5/2024
SoW Expiration Date: 12/5/2024
Document Number: PS-06638.1
Created by: Sidney Barnes
PS-06638.1
1 Agenda Item #9.6:

Table of Contents
OpenGov Statement of Work 4

1. Project Scope 4

2. Adjustments to the Project Scope, Estimated Schedule, Charges and other Terms 4

3. Project Delivery 4

4. Project Understanding 4

5. OpenGov Responsibilities 5

6. Project Tracking and Reporting 5

7. Communication and Escalation Procedure 6

8. Opengov Implementation Methodology 6

8.1. Initiate 7

8.2. Validate 7

8.3. Configure 7

8.5. Launch 7
9 . Customer Responsibilities 7

10. Customer’s Project Manager 8

11. Acceptance Procedure 8

12. Estimated Schedule 9

13. Illustrative Project Timelines 9

14. Change Order Process 10
Exhibit 1: Implementation Activities 11
Budgeting & Planning 11
Initiate 11
Validate 11
Configure 12
Train 16
Launch 17
Exhibit 2: Technical Requirements 19
Budgeting & Planning Technical Requirements 19
PS-06638.1
2 Agenda Item #9.6:

OpenGov Statement of Work
This Statement of Work (“SOW”) identifies services that OpenGov will perform for City of Sonoma, CA (“Customer”) pursuant to the order for OpenGov Professional Services. This SOW may not be modified or amended except in a written agreement signed by a duly authorized representative of each party. The OpenGov Responsibilities section of this document can be found in Exhibit 1: Implementation Activities. Any additional services or support not detailed in Exhibit 1 will be considered out of scope.

1. Project Scope
Under this project, OpenGov will deliver cloud based solutions (detailed list in “Exhibit 1”). OpenGov's estimated charges and schedule are based on performance of the activities listed in the “OpenGov Responsibilities” section below. Deviations that arise during the project will be managed through the procedure described in Section 14.

2. Adjustments to the Project Scope, Estimated Schedule, Charges and other Terms Adjustments to the deliverables in Exhibit 1 may include charges on a time-and-materials or fixed-fee basis using OpenGov’s standard rates.

3. Project Delivery

3.1. OpenGov will perform the work under this SOW remotely unless explicitly identified below.

3.2. OpenGov will use personnel and resources located across the United States, and may also include OpenGov-trained implementation partners to support the delivery of services.

4. Project Understanding

4.1. Deviations that arise during the proposed project will be managed through the Change Order Process (as defined in Section 14) , and may result in adjustments to the Project Scope, Estimated Schedule, Charges, and/or other terms.

4.2. The OpenGov Suites are not customized beyond current capacities based on the latest release of the software. Implementation of any custom modification or integration developed by OpenGov; Customer internal staff; or any third-party is not included in the scope of this project unless specifically listed in Exhibit 1.

4.3. Customer is responsible for providing appropriate time and resources to the project to meet deliverables as outlined in the project plan.

4.4. Data conversion services from other software system(s) or sources are not included in the scope of this project unless specifically listed in Exhibit 1.

PS-06638.1
3 Agenda Item #9.6:

5. OpenGov Responsibilities

5.1. OpenGov will provide project management for the OpenGov responsibilities in this SOW. This provides direction to OpenGov project personnel and a shared framework for project planning, communications, reporting, procedural and contractual activity.

5.2. OpenGov will review the Project Plan with Customer’s Project Manager and key stakeholders to ensure alignment on agreed upon timelines.

5.3. OpenGov will maintain project communications through Customer’s Project Manager.

5.4. OpenGov will establish documentation and procedural standards for deliverable materials.

5.5. OpenGov will assist Customer’s Project Manager to prepare and maintain the Project Plan for the performance of this SOW which will include the activities, tasks, assignments, and project milestones identified in Exhibit 1.

6. Project Tracking and Reporting

6.1. OpenGov will review project tasks, schedules, and resources and make changes or additions, as appropriate. OpenGov will measure and evaluate progress against the Project Plan with Customer's Project Manager.

6.2. OpenGov will work with Customer’s Project Manager to address and resolve deviations from the Project Plan.

6.3. OpenGov will conduct regularly scheduled project status meetings.

6.4. OpenGov will administer the Change Order Process with the Customer's Project Manager.

6.5. Deliverable Materials:

6.5.1. Weekly status reports

6.5.2. Project Plan

6.5.3. Project Charter, defining project plan and Go-live date

6.5.4. Risk, Action, Issues and Decisions Register (RAID)

6.6. Deliverable Sign-Off: OpenGov requests Sign-Offs at various deliverables during the implementation of the project. Once the Customer has signed-off on a deliverable, any additional changes requested by Customer on that deliverable will require a paid change order for additional hours for OpenGov to complete the requested changes.

7. Communication and Escalation Procedure

7.1. Active engagement throughout the implementation process is the foundation of a successful deployment. To help assess progress, address questions, and minimize risk during the course of deployment, both parties agree to the following:

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4 Agenda Item #9.6:

7.1.1. Regular communication aligned to the agreed upon Project Plan and timing.

7.1.2. OpenGov expects our customers to raise questions or concerns as soon as they arise. OpenGov will do the same, in order to be able to address items when known.

7.2. Executive involvement

7.2.1. Executives may be called upon to clarify expectations and/or resolve confusion.

7.2.2. Executives may be needed to steer strategic items to maximize the value through the deployment.

7.3. Escalation Process

7.3.1. Identification of an issue impeding deployment progres or, outcome, that is not acceptable.

7.3.2. Customer or OpenGov Project Manager summarizes the problem statement and impasse.

7.3.3. Customer and OpenGov Project Managers jointly outline solution acceptance and OpenGov Project Manager will schedule an Executive Review Meeting, if necessary.

7.3.4. Resolution will be documented and signed off.

8. Opengov Implementation Methodology
Every OpenGov implementation will contain a structured methodology to properly plan and collaborate. The methodology consists of the following phases:
● Initiate
● Validate
● Configure
● Train
● Launch

8.1. Initiate

8.1.1. OpenGov will provide customer entity configuration.

8.1.2. OpenGov will provide system administrators creation.

8.1.3. This activity is complete when Customer has access to their site.

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5 Agenda Item #9.6:

8.1.4. Customer will sign-off on product access to complete the Initiate Phase of the project.

8.2. Validate

8.2.1. OpenGov will create a Solution Blueprint.

8.2.2. OpenGov will confirm the Data Validation strategy.

8.2.3. This activity is complete when the Solution Blueprint is presented to Customer.

8.2.4. Customer will Sign-off on Initial Draft Solution Blueprint to complete the Validate Phase of the project.

8.3. Configure

8.3.1. OpenGov will configure the deliverables outlined in Exhibit 1.

8.3.2. This activity is complete when all deliverables in Exhibit 1 are configured.

8.3.3. Customer will provide Sign-off that all configuration deliverables have been completed and accepted. OpenGov will provide status and intermediate completion milestones as the project progresses to fully configured.

8.4. Train

8.4.1. Training will be provided in instructor-led virtual sessions unless otherwise specified in Exhibit 1.

8.4.2. OpenGov will provide Administrator training.

8.4.3. OpenGov will provide End User training (if listed in Exhibit 1).

8.4.4. Customer will Sign-off that training has been completed.

8.5. Launch

8.5.1. OpenGov will provide HyperAdopt support post Go-Live to ensure successful adoption.

8.5.2. Customer will Sign-off on the HyperAdopt phase of the project which will transition the project from active deployment to Customer Success. 9 . Customer Responsibilities

9.1. The completion of the proposed scope of work depends on the full commitment and participation of Customer’s management and personnel. The Customer’s Project Manager should have access to the appropriate Customer Subject Matter Expert personnel needed for the successful implementation of the project. The responsibilities listed in this section are in addition to the responsibilities specified in the Agreement and are to be provided at no charge to OpenGov. OpenGov's performance is predicated upon the following responsibilities being managed and fulfilled by Customer. Delays in performance of these responsibilities may result in a change order and/or delay of the completion of the project.

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6 Agenda Item #9.6:

9.2. Provide the required data to OpenGov within five (5) days of the requests being made from the OpenGov Project Manager. The Customer will be responsible for any potential charges from third parties to access and provide the data.

9.3. Maintain the same format and access to data on an ongoing basis. Any changes to the underlying data or data source may require a change order or charge in the future.

10. Customer’s Project Manager

10.1. Create, with OpenGov’s assistance, the Project Charter for the performance of this SOW which will include the activities, tasks, assignments, milestones and estimates.

10.2. Manage Customer personnel and responsibilities for this project (for example:
ensure personnel complete any self-paced training sessions, configuration, validation or user acceptance testing).

10.3. Identify and assign Subject Matter Experts (SME).

10.4. Serve as the communication liaison between OpenGov and Customer representatives participating in the project.

10.5. Participate in project status meetings.

10.6. Obtain and provide information, data, and decisions within ten (10) business days of OpenGov’s request unless Customer and OpenGov agree in writing to a different response time.

10.7. Resolve deviations from the estimated schedule.

10.8. Help resolve project issues and escalate issues within Customer’s organization, as necessary.

10.9. Administer the Change Order Process with the Project Manager, if applicable.

11. Acceptance Procedure

11.1. The completed items in Exhibit 1 will be submitted to the Customer’s Project Manager.

11.2. Customer’s Project Manager will have decision authority to approve/reject all Project Criteria, Phase Acceptance and Engagement Acceptance.

11.3. Within five (5) business days of receipt, the Customer’s Project Manager will either accept the Deliverable Material or provide OpenGov’s Project Manager a written list of requested revisions. If OpenGov receives no response from the Customer’s Project Manager within five (5) business days, then the Deliverable Material will be deemed accepted. The process will repeat for the requested revisions until acceptance.

11.4. All acceptance milestones and associated review periods will be tracked on the Project Plan.

11.5 Both OpenGov and Customer recognize that failure to complete tasks and PS-06638.1
7 Agenda Item #9.6:

respond to open issues may have a negative impact on the Project.

11.6. For any tasks not yet complete, OpenGov and/or Customer will provide sufficient resources to expedite completion of tasks to prevent negatively impacting the Project.

11.7. Excluding delays caused by a force majeure event, if OpenGov in good faith reasonably determines that Customer’s personnel or contractors are not completing Customer’s responsibilities described in the applicable SOW timely or accurately, OpenGov may place the Professional Services on hold after providing a minimum of seven days written notice to Customer. If OpenGov places a Customer on hold, OpenGov will ensure that Customer is made aware of its obligations necessary for OpenGov to continue performing the Professional Services in the on hold notice. Upon placing a customer on hold, OpenGov may, without penalty, suspend Professional Services to the Customer and reallocate resources until the Customer has fulfilled its obligations. OpenGov shall bear no liability or otherwise be responsible for delays in the provision of the Professional Services occasioned by Customer’s failure to complete Customer’s responsibilities.

12. Estimated Schedule

12.1. OpenGov will schedule resources after the signature of the order form is received. Unless specifically noted, the OpenGov assigned Project Manager will work with Customer Project Manager to develop the Project Charter for all requested deliverables under this SOW. OpenGov reserves the right to adjust the schedule based on the availability of OpenGov resources and/or Customer resources, and the timeliness of deliverables provided by the Customer.

12.2. The Services are currently estimated to start within two (2) weeks but no later than four (4) weeks from signatures on Order Forms.

13. Illustrative Project Timelines

13.1. The typical project timelines are for illustrative purposes only and may not reflect Customer’s use cases. The order of delivery of the suite(s) will be determined during the project planning activities in the Initiate Phase.

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8 Agenda Item #9.6:

14. Change Order Process

14.1. This SOW and related efforts are based on the information provided and gathered by OpenGov. Customer acknowledges that changes to the scope may require additional effort or time, resulting in additional cost. Any change to scope must be agreed to in writing, by both Customer and OpenGov, and documented as such via a Change Order.

No verbal agreement will be binding on OpenGov or Customer.

14.2. A Change Order is defined as work that is added to or deleted from the original scope of this SOW. Depending on the magnitude of the change, it may or may not alter the original contract amount or completion date. Changes might include but are not limited to:

14.2.1. Timeline for completion

14.2.2. Sign off process

14.2.3. Cost of change and/or invoice timing

14.2.4. Amending the SOW to correct an error

14.2.5 Extension of work as the complexity identified exceeds what was expected by Customer or OpenGov

14.2.6. Change in type of OpenGov resources to support the SOW

14.3.The approval process for a Change Order is as follows:

14.3.1.Identification and documentation of a need for modification to the scope of the project as defined in the Statement of Work and any subsequent change orders.

14.3.2. A Change Order is created and Customer and OpenGov review. The Customer will then provide Sign-off..

14.3.3. Change Order is incorporated into the Statement of Work and implemented.

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9 Agenda Item #9.6:

Exhibit 1: Implementation Activities
Budgeting & Planning
Use Cases Build for Budget and Planning:
● Operating Budget
● Workforce Planning
● Budget Book Publication
● Capital Budgeting
● B&P Integrations
● Reporting & Transparency
Initiate
Provisioning Budget & Planning
OpenGov will:
● Provision Customer’s OpenGov entity and verify Customer has access to all purchased modules.

Customer will:
● Confirm access to entity and modules.

Completion Criteria
● Customer verifies access to the site.

Validate
Technical Project Review
OpenGov will:
● Provide up to one (1) one-hour working sessions at the beginning of the project to:
o Review deliverables
o Review technical requirements
o Provide documentation on requirements and processes
OpenGov Assumptions:
● Customer will provide relevant data within two (2) weeks immediately following the kick-off meeting.

Customer will:
● Identify relevant participants for attendance.
● Confirm deliverables.
● Gather and provide relevant data for the project.

Completion Criteria
● Customer sign-off on the project plan.

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10 Agenda Item #9.6:

Configure
Chart of Accounts (COA)
OpenGov will:
● Build Customer's COA in OpenGov in accordance with OpenGov technical requirements. ● Review configured COA and uploaded data and provide training to Customer on how to:
o Manage new codes
o Edit COA
o Create Masks
Customer will:
● Provide current COA and transactional data.
● Validate and provide sign off on COA.
● Maintain the COA following configuration.

Completion Criteria
● Customer sign-off that the Chart of Accounts has been configured.

Operating Budget
OpenGov will:
● Configure one (1) Budget instance.
● Configure budget proposal based on a Segment of the Chart of Accounts. ● Train and assist on the modification on the configuration. ● Configure and upload Customer’s base budget files into OpenGov budget instances. ● Configure OpenGov Budget Proposals and Worksheets for up to fifty (50) Departments in the base budget file based on the agreed upon structure. ● Review configured OpenGov Budget and provide training to Customer on how to:
o Create new Proposals and Worksheets
o Manage Budgets
Customer will:
● Provide current budget.
● Validate Budget Proposals and Worksheets.
● Signoff on Budget Proposals and Worksheets.

Completion Criteria
● Customer sign-off that Operating Budget proposals and worksheets have been configured.

Capital Budget
OpenGov will:
● Configure one (1) Budget instance.
● Configure and upload Customer’s base budget files into OpenGov budget instances. ● Configure proposals and worksheets for up to fifty (50) Capital Projects in the base budget file based on the agreed upon structure.
● Review configured OpenGov Budget and provide training to Customer on how to:
o Create new Proposals and Worksheets
o Manage Budgets
Customer will:
● Provide current budget.
● Validate and provide signoff on Budget Proposals.

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11 Agenda Item #9.6:

Completion Criteria
● Customer sign-off that Capital Budget proposals and worksheets have been configured.

Workforce
OpenGov will:
● Provide cost elements based on Customer’s existing personnel forecast to workforce document as per OpenGov’s best practices.
● Review configured OpenGov Workforce Plan and provide training to Customer on how to:
o Create Cost Elements
o Populate and upload the Position Template
Customer will:
● Provide Position calculations and tables.
● Populate the Position Template and upload the completed template into OpenGov. ● Validate and provide signoff on the Workforce Plan calculations. ● Maintain the Workforce Plan and data once configured.

Completion Criteria
● Customer sign-off that the Workforce Plan has been configured.

Reporting
OpenGov will:
● Set up one (1) export and Dataset View to enable OpenGov Budget Reports for the Operating and Capital Budget(s).
● Configure up three (3) standard reports using the customer’s integrated financial data:
o Annual
o Budget to Actuals
o Transactions
● Configure up to four (4) Operating Budget Reports using OpenGov budget data:
o Milestones
o Development
o Details
o Categories*
● Configure up to four (4) Capital Budget Reports using OpenGov budget data:
o Development
o Details
o Categories*
o Capital Plan
● Review configured OpenGov Reports and provide training Customer on how to:
o Export Budget Data for use in OpenGov Reports.
o Create new Reports
o Manage Reports
o Share Reports
*Budget Categories report is only available to customers using a zero-based budget.

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12 Agenda Item #9.6:

Customer will:
● Validate and provide sign-off of Reports.
● Maintain the Reports once configured.
● Map OpenGov Budget export to Customer ERP import format.

Completion Criteria
● Customer sign-off that Reports have been configured.

Dashboards
OpenGov will:
● Configure dashboards based on one (1) segment or roll up in the Chart of Accounts based on the customer provided template.
● Produce the reporting views and dashboard based on the Customer’s configuration. ● Provide Excel Template for the Customer to complete for the configuration of dashboards.

Customer will:
● Provide a completed template for OpenGov to use for the Dashboards.

Completion Criteria
● Customer sign-off that Dashboards have been configured.

Stories
OpenGov will:
● Configure one (1) standard budget Story template for Operating and Capital. ● Review configured OpenGov Story and provide training to Customer on how to:
○ Create new Stories
○ Manage Stories
○ Publish Stories
Customer will:
● Provide logo and branding guidelines.
● Validate and provide signoff on Operating Budget Story template. ● Update standard budget Story with Customer relevant information.

Completion Criteria
● Customer sign-off that Stories have been configured.

Budget Book Publication
OpenGov will:
● Based on best practices, build out the look and feel of six (6) Standard OBB Templates:
○ Home Page
○ Generic (multi-use)
○ Operating
○ Department
○ Capital
○ Capital Project
● Create an Annual Budget Report and FTE Report using OpenGov Budget data and Report Views to use in Department and Project OBB Story Shells. ● Create Department and Project OBB Story Shells from OBB Templates for up to fifty (50) Departments and up to fifty (50) Projects and add OpenGov Report Views to Department and Project Story Shells.

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13 Agenda Item #9.6:

● Provide up to ten (10) one-hour working sessions to answer Customer questions on OBB Configuration.

Customer will:
● Provide logo and branding colors to OpenGov.
● Provide complete OBB content to allow OpenGov to copy and paste into the OBB. ● Sign off on OBB Templates prior to OBB Story Page Configuration. ● Validate and sign off on OBB pages.
● Make any continuing edits to the content after OpenGov has added the content to the appropriate story.

Completion Criteria
● Customer sign-off that the Budget Book Publication templates are configured.

Community Feedback Topic
OpenGov will:
● Configure one (1) standard budget topic in Community Feedback. ● Review configured OpenGov Topic and provide training to Customer on how to:
○ Create new topics
○ Manage topics
○ Set Topics to Public and Closed.

Customer will:
● Provide logo and branding guidelines.
● Validate and provide signoff on the standard budget topic. ● Update the standard budget topic with Customer relevant information.

Completion Criteria
● Customer sign-off that Community Feedback has been configured.

Financial Integration
OpenGov will:
● Installation of Agent and Database View Deployment or Set up a SFTP and Sample File Format.
● Integrate the following functionalities:
o General Ledger Actuals and Budget (Revenue and Expenses) ● Extract, transform (when required) and load the data. ● Build Validation Reports for Budget and Actuals.
● Validate the historical data and current year data based on the Customer provided summary report.
● Schedule the current year data load.
● Monitor the data load.

OpenGov assumptions:
● Integration is unidirectional from the Customer’s Springbrook into OpenGov. ● The data will be linked to the Customer’s COA.

Customer will:
● Provide an IT resource to assist the project team in the initial set-up.

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14 Agenda Item #9.6:

● Provide assistance to understand source system specific customizations and configurations when building the data extract.
● If OpenGov is unable to access the data per requirements, provide .csv data files via OpenGov SFTP Location.
● Any charges for the data from the ERP system will be the customer's responsibility. ● Broker OpenGov’s access to Customer’s source accounting data if hosted by any third vendor.
● Provide a summary export data to validate against.
● Validate and provide sign off on the integrated data and reports. ● Changes to the underlying data after project closure will be the responsibility of the customer to update.
● Maintenance of the integration file on an ongoing basis is the responsibility of the customer.

Completion Criteria
● Customer sign-off that the Integration has been configured.

Train
Budgeting & Planning Working Sessions
OpenGov will:
● Per the agreed upon Project Plan, schedule working sessions with Customer’s system administrators to:
○ Review configurations;
○ Provide training on system functionality;
○ Gain feedback; and
○ Answer questions regarding configured system functionality.

Customer will:
● Per the agreed upon Project Plan, attend working sessions to:
○ Understand configurations;
○ Gain training on system functionality;
○ Give feedback; and
○ Ask questions regarding configured system functionality Completion Criteria
● Budgeting & Planning Working Sessions have been conducted.

Reporting & Transparency Administrator Training
OpenGov will:
● Provide training to Customer system administrators on how to:
○ Maintain the Chart of Accounts
○ Upload and manage data for reporting
○ Create and share Reports, Dashboards, Stories, and Topics.

Customer will:

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15 Agenda Item #9.6:

● Identify relevant participants and attend scheduled trainings.

Completion Criteria
● Reporting & Transparency Administrator Training has been conducted.

Budget and Workforce Administrator Training
OpenGov will:
● Provide training to Customer system administrators on how to:
○ Create and manage Budgets
○ Prepare to set up Next Year’s Budget
○ Create and manage Workforce Plans including Cost Elements and Position Upload Templates
○ Export Budget Data for use in OpenGov Reports.

Customer will:
● Identify relevant participants and attend scheduled trainings.

Completion Criteria
● Budget & Workforce Training has been conducted.

Publication Training
OpenGov will:
● Provide one (1) 60- Minute System Training designed for OBB Administrators on how to:
○ Use and copy OBB Templates
○ Add Reports Views to Stories
○ Add Customer content including: narrative, images, and external data to Stories ○ Publish Stories
○ Update and maintain Stories
Customer will:
● Identify relevant participants and attend scheduled trainings.

Completion Criteria
● Publication Training has been conducted.

End-User Training
OpenGov will:
● Provide two (2), 60-Minute training session(s) to Customer’s Internal Users on how to:
○ Navigate Opengov Budgets and Reports
○ How to enter Budget data
○ How to run and use reports
Customer will:
● Identify relevant participants and attend scheduled trainings.

Completion Criteria
● End User Training has been conducted.

Launch
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16 Agenda Item #9.6:

HyperAdopt
OpenGov will:
● Provide up to four (4) hours of working sessions to answer any questions following solution acceptance.

Customer will:
● Identify issues and attend sessions.

Completion Criteria
● Customer sign-off that the project has been completed.

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17 Agenda Item #9.6:

Exhibit 2: Technical Requirements
Budgeting & Planning Technical Requirements
Chart of Accounts
● Flat file
● .csv, .xls, .xlsx with headers
● Active Accounts and Accounts with activity in the years of data being loaded into OpenGov.

Financial Data Files (Transactional Export)
● Flat file
● .csv, .xls, .xlsx with headers
● 3-5 Years of Data
Financial Data Files (Summary Revenue and Expense Export) ● PDF export
Current Budget
● Flat file
● .csv, .xls, .xlsx with headers
● Operating Budget
Personnel Calculations and Tables
● PDF, Word, csv, .xls, .xlsx with headers
Logo Image
● .jpg or .png format
● Transparent
Branding Guidelines
● Hex codes
PS-06638.1
18 Agenda Item #9.6:

City of Sonoma
Agenda Item Summary
Meeting: City Council - 18 Sep 2024
Department
Finance
Staff Contact
Prapti Aryal, Finance Director
Agenda Item Title
Update on Fiscal Year 2023-24 Year End
Summary
On June 21, 2023, the City Council approved the budget for the City of Sonoma and the Sonoma Successor Agency for Fiscal Year 2023-24. The total approved budget, including both Operating and Capital Improvement Program expenditures, was $42.9 million. This budget aimed to balance responsive service provision to residents, businesses, and visitors with the constraints of available resources.

For the General Fund, the total amended budget for FY 2023-24 was $24.3 million in revenue and $25.9 million in expenses. To achieve budget balance, $1.6 million from the City’s General Fund Reserves was planned for use. However, actual results for the fiscal year showed revenues exceeded the budgeted amount by $1.1 million, totaling $25.4 million, while expenditures were under budget by $1.3 million, totaling $24.6 million. The year ended with a surplus of $0.8 million. This resulted in not utilizing the reserves to address the anticipated shortfall, in addition, increasing the General Fund reserve by $0.8M to a total of $15.8M at the year end June 30, 2024.

The attached document is the City’s Year-End Report for Fiscal Year 2023-24, which provides an overview of the fiscal year. Please note that this report includes unaudited preliminary figures, as the audit for the fiscal year is still pending. The report features a financial section with unaudited data on General Fund and Proprietary Fund revenues and expenditures through June 30, 2024. It compares revenue sources and departmental expenditures to budgeted amounts.

Recommended Council Action
Receive the Fiscal Year 2023-24 year-end update.

Alternative Actions
Council discretion.

Financial Impact
There is no financial impact resulting from this item.

Environmental Review Status
Environmental Impact Report
Negative Declaration
Exempt
Approved/Certified
No Action Required
Action Requested
Agenda Item #9.7:

Not Applicable
Attachments
Year-End Report Fiscal Year 2023-24
Alignment with Council Goals:

Not Applicable
Agenda Item #9.7:

pg. 1
Year-End Financial Report
As of June 30, 2024
Introduction
This Year-End Financial Report provides an analysis of the City’s General Fund and Proprietary Fund revenues and expenditures for the fiscal year 2023-24.

Management’s Overview
The City’s annual budget for fiscal years 2023-24 was adopted by the City Council on June 21, 2023. The purpose of the year-end financial report is to provide regular updates to the Council regarding revenue and expenditure trends to ensure the City Council has a strong understanding of the City’s current financial condition. The numbers in this report are based on the unaudited FY 2023-24 revenues and expenditures. A discussion of the significant budget items is presented below.

FY 2023-24 General Fund Budget
The FY 2023-24 General Fund budget, originally adopted in June 2023, projected revenues of $24.3 million against expenditures of $25.4 million, resulting in a $1.1 million deficit due to a 5% decrease in revenues coupled with a 4% increase in expenditures. The amended General Fund expenditure budget for FY 2023-24 was adjusted to $25.9 million. However, the unaudited actual results for the fiscal year demonstrated that revenues exceeded the budgeted amount by $1.1 million, reaching $25.4 million, while expenditures were under budget by $1.3 million, totaling $24.6 million. This resulted in a surplus of $0.8 million for the year.

Approximately 47% of the City's General Fund operating expenditure budget is allocated to Police and Fire Contracts. Given the ongoing uncertainty about local economic recovery and anticipated revenues, the City faces limited flexibility to reduce expenditures. Moving forward, the City will likely need to continue strategically holding positions vacant and tightly managing supplies and services expenditures.

Additionally, the City is dealing with the consequences of under-investment in facilities and software. Deferred maintenance on many City facilities has resulted in a backlog of projects needed to improve building conditions and longevity. Outdated software, such as the current ERP system, impedes process efficiency and lacks the transparency required for effective community education.

Agenda Item #9.7:

pg. 2
General Fund Summary
Description
FY 23-24 Adopted
Budget
FY 23-24
Amended Budget
FY 23-24
Unaudited
Actuals
Property Taxes $ 5,050,785.00 $ 5,050,785.00 $ 5,527,037.00 Sales & Use Taxes $ 3,833,378.00 $ 3,833,378.00 $ 3,754,325.00 Measure V Local Sales Tax $ 3,016,419.00 $ 3,016,419.00 $ 2,661,440.00 Sales Tax - Public Safety $ 168,985.00 $ 168,985.00 $ 167,924.00 Sales Tax - County Parks - Cit $ - $ - $ 37,657.00
Fees $ 609,602.00 $ 609,602.00 $ 1,083,343.00
Transient Occupancy Tax (TOT) $ 6,518,236.00 $ 6,518,236.00 $ 5,888,801.00 Franchise Tax $ 575,812.00 $ 575,812.00 $ 646,572.00
Business License Tax $ 387,600.00 $ 387,600.00 $ 468,078.00 Real Property Transfer Tax $ 153,000.00 $ 153,000.00 $ 148,537.00 Licenses & Permits $ 206,180.00 $ 206,180.00 $ 344,244.00 Fines & Forfeitures $ 87,000.00 $ 87,000.00 $ 60,741.00 Interest & Rents $ 95,027.00 $ 95,027.00 $ 154,150.00
Grants $ - $ - $ 140,453.00
Federal Grants $ - $ - $ -
Charges For Services $ 372,695.00 $ 372,695.00 $ 165,403.00 EMS $ 2,275,000.00 $ 2,275,000.00 $ 2,852,545.00
Miscellaneous $ - $ - $ 60,271.00
Transfers $ 790,103.00 $ 790,103.00 $ 790,103.00
Other Revenues $ 59,900.00 $ 59,900.00 $ 80,443.00
Interest Revenue $ 57,120.00 $ 57,120.00 $ 393,021.00
Proceeds from Issuance of Debt $ - $ - $ -
Total Revenue $ 24,256,842.00 $ 24,256,842.00 $ 25,425,088.00 Salary & Wages $ 3,787,773.00 $ 3,765,768.00 $ 3,408,905.00 Employee Benefits $ 1,214,821.00 $ 1,214,815.00 $ 883,784.00 PERS UAL $ 1,327,620.00 $ 1,327,615.00 $ 1,286,824.00
Professional Services $ 1,167,957.00 $ 1,781,263.00 $ 1,345,291.00 Sheriff Contract $ 5,344,529.00 $ 5,344,529.00 $ 5,337,084.00 SVFRA Contract $ 6,773,055.00 $ 6,773,055.00 $ 6,773,054.00 Cost Recovery $ 85,000.00 $ 85,000.00 $ 383,977.00
Property Services $ 1,861,479.00 $ 1,835,072.00 $ 1,679,206.00 Operations $ 1,491,501.00 $ 1,464,995.00 $ 1,262,740.00 Supplies $ 286,500.00 $ 281,280.00 $ 365,596.00
Software & Equipment $ 78,983.00 $ 129,358.00 $ 23,193.00 Internal Service & Capital Projects $ 1,114,488.00 $ 1,084,488.00 $ 1,086,150.00 Transfers Out - CIP $ 280,000.00 $ 280,000.00 $ 280,000.00 Transfers $ 553,749.00 $ 553,749.00 $ 480,571.00
Debt Service $ - $ - $ 13,886.00
Total Expense $ 25,367,455.00 $ 25,920,987.00 $ 24,610,261.00 Surplus/(Deficit) $ (1,110,613.00) $ (1,664,145.00) $ 814,827.00 Agenda Item #9.7:

pg. 3
Major Revenues
*Unaudited
Transient Occupancy Tax
For FY 2023-24, Transient Occupancy Tax (TOT) revenue fell short of the budget by $0.6 million, with a total of $5.9 million collected for the year. This shortfall was partly due to two hotels undergoing renovations during the fiscal year, which impacted the TOT revenue.

As of June 30, 2024, the City has 7 hotels, 1 motel, 8 bed and breakfast establishments, and 50 short term vacation rental units generating transient occupancy tax revenue.

Property Tax
For FY 2023-24, Property Tax revenues were budgeted at $5.1 million, but the unaudited actuals exceeded this by $0.5 million, totaling $5.5 million. Despite stagnant home sales due to high mortgage rates, the housing market is expected to improve in the latter half of 2024 as interest rates decline to their lowest levels of the year. According to the HdL report, the average price for a detached single-family residence in the City of Sonoma was $1.6 million as of June 2024.

Sales Tax, Measure V (formerly J and U) and Measure M
Sales tax revenues for FY 2023-24 are currently $40,000 below budget, totaling $4.0 million for the year. Sales tax receipts are received in monthly advances from the California Department of Tax and Fee Administration (CDTFA), based on prior year revenues, and are $-
$1,000,000.00
$2,000,000.00
$3,000,000.00
$4,000,000.00
$5,000,000.00
$6,000,000.00
$7,000,000.00
Transient
Occupancy
Tax (TOT)
Property
Taxes
Sales Tax Measure V
Local Sales
Tax
EMS -
Ambulance
Billing
Fees &
Charges for
Services
Franchise
Tax
Business
License Tax
Other
Revenues
Revenues: Budget to Actual
FY 23-24 Amended Budget FY 23-24 Actuals*
Agenda Item #9.7:

pg. 4
delayed by two months. HdL Companies, our sales tax consultants, project that the City will fall short of the budgeted revenue amount.

From January to March 2024, sales tax revenues were 4.1% lower compared to the same quarter in 2023. Significant declines were observed in hotels (down 19%), wineries (down 17%), and fine dining restaurants (down 8%). The decrease in sales from general retailers, restaurants, and used auto sellers has negatively impacted Measure V, with actual revenue coming in $0.4 million below expectations. For FY 2023-24, Measure V revenue is $2.7 million.

EMS Revenue
The Fire Department provides advanced life support (ALS) medical services through the use of dual-role firefighting employees, who are also trained as paramedics and emergency medical technicians. All staffed engines and ambulances are ALS equipped and staffed with at least one paramedic. Under the terms of the Sonoma Valley Fire and Rescue Authority, the City receives 100% of the Emergency Medical Services Revenue. Growth in ambulance billing revenue had been steady but began to decline in FY 2018-19 with an increase in MediCal and other insurance write-offs. Fortunately, the IGT Program Revenue, which is directly related to the MediCal write-offs, has been steadily increasing, which has helped offset some of this loss. For FY 2023-24, EMS revenue received is $2.9 million.

Other Revenues
Business License Tax revenue exceeded expectations, totaling $0.5 million Fees and Charges for Services revenues also surpassed forecasts, with actual revenues reaching $1.2 million.

Franchise Tax received for FY 2023-24 exceeded the budgeted amount by 12%, totaling $0.6 million.

Other Revenues, which includes Transfers, License and Permit fees, Real Property Transfer Tax, Interest and Rents, and Fines and Forfeitures, exceeded the budget by $0.7 million, totaling $2.2 million for FY 2023-24.

The Interest Revenue for the fiscal year was budgeted based on the projections from FY 2022-

23. Significant portion of the funds remained in the City’s Checking Account, earning minimal interest. Recognizing an opportunity to enhance Interest Revenue, the Interim Finance Director reallocated $15.0 million to the City’s Local Agency Investment Fund (LAIF) account in September 2023, which offered an interest rate of 3.59%. Additionally, $4.0 million was reallocated to the WestAmerica Money Market account during the fiscal year, which provided a 3.25% interest rate.

This strategic shift has resulted in a substantial increase in actual Interest Revenue compared to the budgeted figures. Additionally, similar growth in Interest Revenue is being observed across other funds.

Agenda Item #9.7:

pg. 5
Expenditures
As of June 30, 2024, most departments were operating within their approved budgets. The following table provides the expenditure budget and actual spent for each department as of June 30, 2024:

Expenditure By Department
FY 23-24 Adopted
Budget
FY 23-24 Amended
Budget
FY 23-24 Unaudited
Actuals %
GENERAL FUND:

City Council (41001) $ 153,023 $ 174,793 $ 163,531 94%
City Clerk (41002) $ 393,433 $ 269,813 $ 247,295 92%
City Manager (41003) $ 1,314,856 $ 1,336,538 $ 1,345,853 101% Finance (41004) $ 801,131 $ 750,119 $ 673,601 90%
City Attorney (41005) $ 337,914 $ 377,164 $ 370,242 98% Police (42101) $ 6,499,239 $ 6,499,239 $ 6,457,950 99%
Fire (42201) $ 7,789,458 $ 7,783,458 $ 7,713,390 99%
Public Works Admin (43020) $ 536,512 $ 609,312 $ 609,123 100% Public Works Street (43022) $ 1,081,664 $ 1,138,978 $ 1,138,403 100% Public Works Parks (43023) $ 1,428,277 $ 1,331,140 $ 1,248,146 94% Planning (43030) $ 1,270,847 $ 1,799,327 $ 1,337,733 74% Building (43040) $ 1,019,840 $ 914,790 $ 792,143 87%
Community Activities (43101) $ 930,926 $ 930,926 $ 799,171 86% Successor Agency (43199) $ 205,251 $ 205,251 $ 77,168 38% Non-Departmental (43200) $ 771,335 $ 959,890 $ 869,814 91% Emergency Response (43201) $ - $ 6,500 $ 6,128 94%
Subtotal General Fund $ 24,533,706 $ 25,087,238 $ 23,849,690 Transfers Out (43999) $ 833,749 $ 833,749 $ 760,571 91% Total General Fund $ 25,367,455 $ 25,920,987 $ 24,610,261 The total amended General Fund budget for fiscal year 2023-24 was $26.0 million but the unaudited actuals for the year was $24.6 million due to the various cost savings throughout the departments mainly due to salary savings, employee benefits cost, and professional services cost reductions. The table below shows the expenditure by account type for the fiscal year ending June 30, 2024.

The table below shows the Total Operating Expenditure for General Fund for FY 2023-24.

Description
FY 23-24 Adopted
Budget
FY 23-24 Amended
Budget
FY 23-24 Projected
Actuals* %
Personnel Costs $ 5,002,594 $ 4,980,583 $ 4,292,689 86% PERS UAL $ 1,327,620 $ 1,327,615 $ 1,286,824 97%
Professional Services $ 1,167,957 $ 1,781,263 $ 1,345,291 76% Sheriff Contract $ 5,344,529 $ 5,344,529 $ 5,337,084 100% SVFRA Contract $ 6,773,055 $ 6,773,055 $ 6,773,054 100% Operating Costs $ 4,917,951 $ 4,880,193 $ 4,800,862 98% Transfers $ 833,749 $ 833,749 $ 760,571 91%
Debt Service $ - $ - $ 13,886 0%

TOTAL OPERATING

EXPENDITURES
$ 25,367,455 $ 25,920,987 $ 24,610,261 95%
Agenda Item #9.7:

pg. 6
General Fund Reserves
In accordance with the City’s Fiscal Policy, the City maintains an Operating Reserve of 17% of General Fund Budgeted Expenditure, and an Emergency Reserve of $1.5 million. The table below summarizes the General Fund Reserves for FY 2023-24.

GENERAL FUND RESERVE SUMMARY - (PROJECTED - UNAUDITED)
FY 2023-24
(Unaudited)
Beginning General Fund Reserve $ 14,963,635
Net Income (Loss) $ 814,827
Ending Total General Fund Reserve $ 15,778,462
Committed/Restricted General Fund Reserve Balance
(Formally Imposed by Resolution or Other Actions)
Non-Spendable - Prepaid Item $ 20,086
Committed for Operating Reserve (17% of General Fund Budgeted Expenditures) $ 4,406,568 Committed for Emergency Reserve $ 1,500,000
Assigned General Fund Reserve Balance $ 150,850
Total Committed General Fund Reserve Balance $ 6,077,504 Fiscal Year Ending General Fund Only Reserve Balance $ 9,700,958 Committed for One-time Special Projects: These are included in Budgeted Expense Municipal Code Migration $ 6,950
Polling - Revenue Initiatives $ 30,000
Temporary Office Trailer $ 50,000
Solar APP+ Implementation (Grant Funded) $ 40,000
Total Committed and Budgeted for One-Time Special Projects $ 126,950 Restricted for Special Project $ 49,146
Total Restricted $ 49,146
Assigned General Fund Reserve Balance
(Funds Reserved by Council Direction or City Manager for Designated Purposes) EMS Equipment Replacement $ 225,000
Total Assigned General Fund Reserve Balance $ 225,000
Total Unrestricted/Undesignated General Fund Reserve Balance $ 9,299,862 Agenda Item #9.7:

pg. 7
Proprietary Funds
In addition to the General Fund, the Year-End Financial Report also provides a snapshot of the City’s Proprietary Funds. Proprietary funds are those funds in which the City charges a fee to customers to recover the cost of providing the service. These funds are made up of Enterprise Funds and Internal Service Funds. Both types of funds are presented separately below, along with summary information for each of the individual funds within each category.

Enterprise Funds
Enterprise Funds are those funds that provide goods or services to the public for a fee that makes the entity self-supporting. Sonoma’s Enterprise Funds include Cemetery- Operating, Cemetery- Endowment and Water Utility- Operating. A listing of these funds and summary of the activity from July through December follows below:

Cemetery - Operating Fund
The Cemetery Program is funded by the Cemetery Enterprise Fund. There are three cemeteries: Mountain, Valley, and Veteran’s Memorial, encompassing over 15 usable acres.

Operations and maintenance responsibilities include burial and inurnment preparation and coordination, cemetery improvements, tree hazard assessment and abatement, grounds maintenance, mausoleum maintenance, road maintenance, and vandalism abatement. A summary of the Cemetery Fund activity for FY 2023-24 is provided below:

Description
FY 23-24
Adopted Budget
FY 23-24
Amended Budget
FY 23-24
Unaudited Actuals %
Cemeteries
Licenses & Permits $ 105,000.00 $ 105,000.00 $ 117,394.00 112% Charges For Services $ - $ - $ - 0%
Transfers $ 91,923.00 $ 91,923.00 $ 91,923.00 100%
Other Revenues $ 120,000.00 $ 120,000.00 $ 68,384.00 57% Interest Revenue $ - $ - $ 1.00 0%
Total Revenue $ 316,923.00 $ 316,923.00 $ 277,702.00 88% Salary & Wages $ 181,175.00 $ 181,175.00 $ 92,131.00 51% Employee Benefits $ 100,535.00 $ 100,535.00 $ 56,183.00 56% Professional Services $ 85,000.00 $ 85,000.00 $ 104,537.00 123% Property Services $ 51,822.00 $ 51,822.00 $ 45,187.00 87% Operations $ 27,800.00 $ 27,800.00 $ 16,300.00 59%
Supplies $ 13,500.00 $ 13,500.00 $ 10,599.00 79%
Software & Equipment $ - $ - $ - 0%
Internal Service & Capital Project $ 10,700.00 $ 10,700.00 $ 10,700.00 100% Transfers $ - $ - $ - 0%
Depreciation $ 39,000.00 $ 39,000.00 $ - 0%
Total Expense $ 509,532.00 $ 509,532.00 $ 335,637.00 66% Revenue Total $ 316,923.00 $ 316,923.00 $ 277,702.00
Expense Total $ 509,532.00 $ 509,532.00 $ 335,637.00
Grand Total $ (192,609.00) $ (192,609.00) $ (57,935.00) The actual expenses exceed the revenue by $60K, decreasing the ending fund balance to ($2.0) million.

Agenda Item #9.7:

pg. 8
Cemetery - Endowment Fund
The Cemetery Endowment Fund was created to record the income received from Cemetery sales that is designated as endowment care. The table below summarizes the actual revenue and expenses for FY 2023-24.

Description
FY 23-24
Adopted Budget
FY 23-24
Amended Budget
FY 23-24
Unaudited Actuals %
Cemetery Endowment
Transfer from Reserves $ - $ - $ -
Other Revenues $ 39,000.00 $ 39,000.00 $ 29,255.00 75%
Interest Revenue $ 120.00 $ 120.00 $ 996.00 830%
Total Revenue $ 39,120.00 $ 39,120.00 $ 30,251.00
Transfers $ 50,000.00 $ 50,000.00 $ 50,000.00 100%
Total Expense $ 50,000.00 $ 50,000.00 $ 50,000.00
Revenue Total $ 39,120.00 $ 39,120.00 $ 30,251.23
Expense Total $ 50,000.00 $ 50,000.00 $ 50,000.00
Grand Total $ (10,880.00) $ (10,880.00) $ (19,748.77)
Water Utility – Operating
The Water Fund provides high-quality, reliable water for consumption, irrigation, and fire protection in Sonoma. The City's water sources include the Sonoma County Water Agency Aqueduct and City-owned groundwater wells. The program operates and maintains essential infrastructure, including 3 active tanks with a 5.5-million-gallon capacity, 7 production wells, 2 pump stations, 56 miles of water main, 513 fire hydrants, and approximately 4,500 service connections. Key operational activities include ensuring compliance with EPA drinking water standards, managing water levels and pressures, preventing contamination through backflow prevention, repairing leaks, and promoting conservation.

The table below details the actual revenue and expenses for FY 2023-24. Although the revenue collected fell short of the budgeted projections, the actual expenses were significantly lower, amounting to just 53% of the budgeted amount. As a result of these lower expenditures, the fiscal year concluded with a surplus of $0.7 million. This surplus contributed to an ending fund balance of $8.5 million.

Agenda Item #9.7:

pg. 9
Internal Service Funds
Description
FY 23-24 Adopted
Budget
FY 23-24 Amended
Budget
FY 23-24 Unaudited
Actuals* %
Water Utility
Licenses & Permits $ 1,000.00 $ 1,000.00 $ 6,963.00 696% Charges For Services $ 62,500.00 $ 62,500.00 $ 77,338.00 124% Miscellaneous (Water Sales) $ 6,450,000.00 $ 6,450,000.00 $ 5,752,980.00 89% Interest Revenue $ 60,000.00 $ 60,000.00 $ 289,084.00 482% Total Revenue $ 6,573,500.00 $ 6,573,500.00 $ 6,126,367.00 93% Salary & Wages $ 720,141.00 $ 720,141.00 $ 687,680.00 95% Employee Benefits $ 343,428.00 $ 343,428.00 $ 290,276.00 85% Professional Services $ 421,135.00 $ 421,135.00 $ 190,551.00 45% Property Services $ 204,849.00 $ 204,849.00 $ 188,277.00 92% Operations $ 242,290.00 $ 242,290.00 $ 149,988.00 62%
Supplies $ 2,755,400.00 $ 2,742,427.00 $ 2,487,312.00 91% Software & Equipment $ 15,420.00 $ 28,393.00 $ 17,073.00 60% Internal Service & Capital Project $ 648,457.00 $ 648,457.00 $ 154,010.00 24% Transfers $ 1,087,026.00 $ 4,605,792.00 $ 1,087,026.00 24% Debt Service $ 117,803.00 $ 117,803.00 $ 102,452.00 87% Total Expense $ 6,555,949.00 $ 10,074,715.00 $ 5,354,648.00 53% Revenue Total $ 6,573,500.00 $ 6,573,500.00 $ 6,126,367.66 Expense Total $ 6,555,949.92 $ 10,074,715.86 $ 5,354,648.74 Grand Total $ 17,550.08 $ (3,501,215.86) $ 771,718.92
Agenda Item #9.7:

pg. 10
Internal Service Funds are used to account for the financing of goods and services provided by one department to other departments of the city. Sonoma’s Internal Service Funds include Management Information Services (MIS), Vehicle Replacement Fund and the Long-Term Building Maintenance.

The table below shows the revenue and expenses for the FY 2023-24 along with the ending fund balance for the Internal Service Funds.

Description
FY 23-24
Adopted Budget
FY 23-24
Amended Budget
FY 23-24
Unaudited Actuals %
Mgmt. Information Service (MIS)
Beginning Fund Balance $ 238,420.00
Total Revenue $ 488,630.00 $ 488,630.00 $ 492,281.00 101% Total Expense $ 542,393.00 $ 542,393.00 $ 436,080.00 80% Fund Balance Addition/(Reduction) $ 56,201.00
Unaudited Ending Fund Balance $ 294,621.00
Vehicle Replacement
Beginning Fund Balance $ 1,538,718.00
Total Revenue $ 332,289.00 $ 332,289.00 $ 358,673.00 108% Total Expense $ 536,000.00 $ 536,000.00 $ 340,613.00 64% Fund Balance Addition/(Reduction) $ 18,060.00
Unaudited Ending Fund Balance $ 1,556,778.00
L/T Bldg. Maintenance
Beginning Fund Balance $ 2,838,556.00
Total Revenue $ 312,380.00 $ 312,380.00 $ 353,404.00 113% Total Expense $ 305,000.00 $ 284,025.00 $ 56,934.00 20% Fund Balance Addition/(Reduction) $ 296,470.00
Unaudited Ending Fund Balance $ 3,135,026.00
Agenda Item #9.7: