waive the application of the domestic content procurement preference in any case in which it is determined that one of the below circumstances applies:
1. Non-availability Waiver: the types of iron, steel, manufactured products, or construction materials are not produced in the United States in sufficient and reasonably available quantities or of a satisfactory quality;
2. Unreasonable Cost Waiver: the inclusion of iron, steel, manufactured products, or construction materials produced in the United States will increase the cost of the overall project by more than 25 percent; or
3. Public Interest Waiver: applying the domestic content procurement preference would be inconsistent with the public interest.
There may be instances where an award qualifies, in whole or in part, for an existing DOI general applicability waiver as described at:
www.doi.gov/grants/BuyAmerica/GeneralApplicabilityWaivers. If the specific financial assistance agreement, infrastructure project, or non-domestic materials meets the criteria of an existing general applicability waiver within the limitations defined within the waiver, the recipient is not required to request a separate waiver for non-domestic materials.
If a general applicability waiver does not already apply, and a recipient believes that one of the above circumstances applies to an award, a request to waive the application of the domestic content procurement preference may be submitted to the financial assistance awarding officer in writing. Waiver requests shall include the below information. The waiver shall not include any Privacy Act information, sensitive data, or proprietary information within their waiver request.
Waiver requests will be posted to www.doi.gov/grants/buyamerica and are subject to public comment periods of no less than 15 days. Waiver requests will also be reviewed by the Made in America Office.
1. Type of waiver requested (non-availability, unreasonable cost, or public interest).
2. Requesting entity and Unique Entity Identifier (UEI) submitting the request.
3. Department of Interior Bureau or Office who issued the award.
4. Federal financial assistance listing name and number (reference block 2 on DOI Notice of Award)
5. Financial assistance title of project (reference block 8 on DOI Notice of Award).
6. Federal Award Identification Number (FAIN).
7. Federal funding amount (reference block 11.m. on DO Notice of Award).
8. Total cost of Infrastructure expenditures (includes federal and non-federal funds to the extent known).
9. Infrastructure project description(s) and location(s) (to the extent known).
10. List of iron or steel item(s), manufactured goods, and construction material(s) the recipient seeks to waive from Buy America requirements. Include the name, cost, countries of origin (if known), and relevant PSC or NAICS code for each.
11. A certification that the recipient made a good faith effort to solicit bids for domestic products supported by terms included in requests for proposals, contracts, and nonproprietary communications with the prime contractor.
12. A statement of waiver justification, including a description of efforts made (e.g., market research, industry outreach) by the recipient, in an attempt to avoid the need Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-5 Agenda Item #7.8:
for a waiver. Such a justification may cite, if applicable, the absence of any Buy America-compliant bids received in response to a solicitation.
13. Anticipated impact if no waiver is issued.
Approved waivers will be posted at www.doi.gov/grants/BuyAmerica/ApprovedWaivers; recipients requesting a waiver will be notified of their waiver request determination by an awarding officer.
Questions pertaining to waivers should be directed to the financial assistance awarding officer.
Definitions
“Construction materials” includes an article, material, or supply that is or consists primarily of:
• non-ferrous metals;
• plastic and polymer-based products (including polyvinylchloride, composite building materials, and polymers used in fiber optic cables); • glass (including optic glass);
• lumber; or
• drywall.
“Construction Materials” does not include cement and cementitious materials, aggregates such as stone, sand, or gravel, or aggregate binding agents or additives. “Domestic content procurement preference’’ means all iron and steel used in the project are produced in the United States; the manufactured products used in the project are produced in the United States; or the construction materials used in the project are produced in the United States.
“Infrastructure” includes, at a minimum, the structures, facilities, and equipment for, in the United States, roads, highways, and bridges; public transportation; dams, ports, harbors, and other maritime facilities; intercity passenger and freight railroads; freight and intermodal facilities; airports; water systems, including drinking water and wastewater systems; electrical transmission facilities and systems; utilities; broadband infrastructure; and buildings and real property. Infrastructure includes facilities that generate, transport, and distribute energy. “Project” means the construction, alteration, maintenance, or repair of infrastructure in the United States
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2. PROCUREMENT STANDARDS (2 CFR 200.317 through 200.327) §200.317 Procurements by States
When procuring property and services under a Federal award, a State must follow the same policies and procedures it uses for procurements from its non-Federal funds. The State will comply with §§200.321, 200.322, and 200.323 and ensure that every purchase order or other contract includes any clauses required by §200.327. All other non-Federal entities, including subrecipients of a State, must follow the procurement standards in §§200.318 through 200.327.
D.3 RECLAMATION STANDARD TERMS AND CONDITIONS
1. REGULATIONS
The regulations at 2 CFR Subtitle A, Chapter II, Part 200 “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards”, are hereby incorporated by reference as though set forth in full text. Failure of a Recipient to comply with any applicable regulation or circular may be the basis for withholding payments for proper charges made by the Recipient and/or for termination of support.
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§200.318 General procurement standards
(a) The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in §§200.317 through 200.327. (b) Non-Federal entities must maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders.
(c)
(1) The non-Federal entity must maintain written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. No employee, officer, or agent may participate in the selection, award, or administration of a contract supported by a Federal award if he or she has a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. The officers, employees, and agents of the non-Federal entity may neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts. However, non-Federal entities may set standards for situations in which the financial interest is not substantial or the gift is an unsolicited item of nominal value. The standards of conduct must provide for disciplinary actions to be applied for violations of such standards by officers, employees, or agents of the non-Federal entity. (2) If the non-Federal entity has a parent, affiliate, or subsidiary organization that is not a state, local government, or Indian tribe, the non-Federal entity must also maintain written standards of conduct covering organizational conflicts of interest.
Organizational conflicts of interest means that because of relationships with a parent company, affiliate, or subsidiary organization, the non-Federal entity is unable or appears to be unable to be impartial in conducting a procurement action involving a related organization.
(d) The non-Federal entity's procedures must avoid acquisition of unnecessary or duplicative items. Consideration should be given to consolidating or breaking out procurements to obtain a more economical purchase. Where appropriate, an analysis will be made of lease versus purchase alternatives, and any other appropriate analysis to determine the most economical approach.
(e) To foster greater economy and efficiency, and in accordance with efforts to promote costeffective use of shared services across the Federal Government, the non-Federal entity is encouraged to enter into state and local intergovernmental agreements or inter-entity Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-8 Agenda Item #7.8:
agreements where appropriate for procurement or use of common or shared goods and services.
(f) The non-Federal entity is encouraged to use Federal excess and surplus property in lieu of purchasing new equipment and property whenever such use is feasible and reduces project costs.
(g) The non-Federal entity is encouraged to use value engineering clauses in contracts for construction projects of sufficient size to offer reasonable opportunities for cost reductions. Value engineering is a systematic and creative analysis of each contract item or task to ensure that its essential function is provided at the overall lower cost. (h) The non-Federal entity must award contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. See also §200.214.
(i) The non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to the following:
rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price.
(j) (1) The non-Federal entity may use a time and materials type contract only after a determination that no other contract is suitable and if the contract includes a ceiling price that the contractor exceeds at its own risk. Time and materials type contract means a contract whose cost to a non-Federal entity is the sum of:
(i) The actual cost of materials; and
(ii) Direct labor hours charged at fixed hourly rates that reflect wages, general and administrative expenses, and profit.
(2) Since this formula generates an open-ended contract price, a time-and-materials contract provides no positive profit incentive to the contractor for cost control or labor efficiency. Therefore, each contract must set a ceiling price that the contractor exceeds at its own risk. Further, the non-Federal entity awarding such a contract must assert a high degree of oversight in order to obtain reasonable assurance that the contractor is using efficient methods and effective cost controls. (k) The non-Federal entity alone must be responsible, in accordance with good administrative practice and sound business judgment, for the settlement of all contractual and administrative issues arising out of procurements. These issues include, but are not limited to, source evaluation, protests, disputes, and claims. These standards do not relieve the non-Federal entity of any contractual responsibilities under its contracts. The Federal awarding agency will not substitute its judgment for that of the non-Federal entity unless the matter is primarily a Federal concern. Violations of law will be referred to the local, state, or Federal authority having proper jurisdiction.
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§200.319 Competition
(a) All procurement transactions for the acquisition of property or services required under a Federal award must be conducted in a manner providing full and open competition consistent with the standards of this section and §200.320. (b) In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals must be excluded from competing for such procurements. Some of the situations considered to be restrictive of competition include but are not limited to:
(1) Placing unreasonable requirements on firms in order for them to qualify to do business;
(2) Requiring unnecessary experience and excessive bonding; (3) Noncompetitive pricing practices between firms or between affiliated companies; (4) Noncompetitive contracts to consultants that are on retainer contracts; (5) Organizational conflicts of interest;
(6) Specifying only a “brand name” product instead of allowing “an equal” product to be offered and describing the performance or other relevant requirements of the procurement; and
(7) Any arbitrary action in the procurement process.
(c) The non-Federal entity must conduct procurements in a manner that prohibits the use of statutorily or administratively imposed state, local, or tribal geographical preferences in the evaluation of bids or proposals, except in those cases where applicable Federal statutes expressly mandate or encourage geographic preference. Nothing in this section preempts state licensing laws. When contracting for architectural and engineering (A/E) services, geographic location may be a selection criterion provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract.
(d) The non-Federal entity must have written procedures for procurement transactions. These procedures must ensure that all solicitations:
(1) Incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured. Such description must not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured and, when necessary, must set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. Detailed product specifications should be avoided if at all possible.
When it is impractical or uneconomical to make a clear and accurate description of Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-10 Agenda Item #7.8:
the technical requirements, a “brand name or equivalent” description may be used as a means to define the performance or other salient requirements of procurement. The specific features of the named brand which must be met by offers must be clearly stated; and
(2) Identify all requirements which the offerors must fulfill and all other factors to be used in evaluating bids or proposals.
(e) The non-Federal entity must ensure that all prequalified lists of persons, firms, or products which are used in acquiring goods and services are current and include enough qualified sources to ensure maximum open and free competition. Also, the non-Federal entity must not preclude potential bidders from qualifying during the solicitation period. (f) Noncompetitive procurements can only be awarded in accordance with §200.320(c). §200.320 Methods of procurement to be followed
The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and §§200.317, 200.318, and 200.319 for any of the following methods of procurement used for the acquisition of property or services required under a Federal award or sub-award.
(a) Informal procurement methods. When the value of the procurement for property or services under a Federal award does not exceed the simplified acquisition threshold (SAT), as defined in §200.1, or a lower threshold established by a non-Federal entity, formal procurement methods are not required. The non-Federal entity may use informal procurement methods to expedite the completion of its transactions and minimize the associated administrative burden and cost. The informal methods used for procurement of property or services at or below the SAT include:
(1) Micro-purchases—(i) Distribution. The acquisition of supplies or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold (See the definition of micro-purchase in §200.1). To the maximum extent practicable, the non-Federal entity should distribute micro-purchases equitably among qualified suppliers.
(ii) Micro-purchase awards. Micro-purchases may be awarded without soliciting competitive price or rate quotations if the non-Federal entity considers the price to be reasonable based on research, experience, purchase history or other information and documents it files accordingly. Purchase cards can be used for micro-purchases if procedures are documented and approved by the non-Federal entity. (iii) Micro-purchase thresholds. The non-Federal entity is responsible for determining and documenting an appropriate micro-purchase threshold based on internal controls, an evaluation of risk, and its documented procurement procedures. The micro-purchase threshold used by the non-Federal entity must be authorized or not prohibited under State, local, or tribal laws or regulations. Non-Federal entities may Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-11 Agenda Item #7.8:
establish a threshold higher than the Federal threshold established in the Federal Acquisition Regulations (FAR) in accordance with paragraphs (a)(1)(iv) and (v) of this section.
(iv) Non-Federal entity increase to the micro-purchase threshold up to $50,000. NonFederal entities may establish a threshold higher than the micro-purchase threshold identified in the FAR in accordance with the requirements of this section. The nonFederal entity may self-certify a threshold up to $50,000 on an annual basis and must maintain documentation to be made available to the Federal awarding agency and auditors in accordance with §200.334. The self-certification must include a justification, clear identification of the threshold, and supporting documentation of any of the following:
(A) A qualification as a low-risk auditee, in accordance with the criteria in §200.520 for the most recent audit;
(B) An annual internal institutional risk assessment to identify, mitigate, and manage financial risks; or,
(C) For public institutions, a higher threshold consistent with State law. (v) Non-Federal entity increase to the micro-purchase threshold over $50,000. Micropurchase thresholds higher than $50,000 must be approved by the cognizant agency for indirect costs. The non-federal entity must submit a request with the requirements included in paragraph (a)(1)(iv) of this section. The increased threshold is valid until there is a change in status in which the justification was approved.
(2) Small purchases—(i) Small purchase procedures. The acquisition of property or services, the aggregate dollar amount of which is higher than the micro-purchase threshold but does not exceed the simplified acquisition threshold. If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity. (ii) Simplified acquisition thresholds. The non-Federal entity is responsible for determining an appropriate simplified acquisition threshold based on internal controls, an evaluation of risk and its documented procurement procedures which must not exceed the threshold established in the FAR. When applicable, a lower simplified acquisition threshold used by the non-Federal entity must be authorized or not prohibited under State, local, or tribal laws or regulations. (b) Formal procurement methods. When the value of the procurement for property or services under a Federal financial assistance award exceeds the SAT, or a lower threshold established by a non-Federal entity, formal procurement methods are required. Formal procurement methods require following documented procedures. Formal procurement methods also require public advertising unless a non-competitive procurement can be used in accordance with §200.319 or paragraph (c) of this section. The following formal methods of procurement are used for procurement of property or services above the Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-12 Agenda Item #7.8:
simplified acquisition threshold or a value below the simplified acquisition threshold the non-Federal entity determines to be appropriate:
(1) Sealed bids. A procurement method in which bids are publicly solicited and a firm fixed-price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming with all the material terms and conditions of the invitation for bids, is the lowest in price. The sealed bids method is the preferred method for procuring construction, if the conditions.
(i) In order for sealed bidding to be feasible, the following conditions should be present:
(A) A complete, adequate, and realistic specification or purchase description is available;
(B) Two or more responsible bidders are willing and able to compete effectively for the business; and
(C) The procurement lends itself to a firm fixed price contract and the selection of the successful bidder can be made principally on the basis of price. (ii) If sealed bids are used, the following requirements apply:
(A) Bids must be solicited from an adequate number of qualified sources, providing them sufficient response time prior to the date set for opening the bids, for local, and tribal governments, the invitation for bids must be publicly advertised;
(B) The invitation for bids, which will include any specifications and pertinent attachments, must define the items or services in order for the bidder to properly respond;
(C) All bids will be opened at the time and place prescribed in the invitation for bids, and for local and tribal governments, the bids must be opened publicly; (D) A firm fixed price contract award will be made in writing to the lowest responsive and responsible bidder. Where specified in bidding documents, factors such as discounts, transportation cost, and life cycle costs must be considered in determining which bid is lowest. Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of; and
(E) Any or all bids may be rejected if there is a sound documented reason.
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(2) Proposals. A procurement method in which either a fixed price or cost-reimbursement type contract is awarded. Proposals are generally used when conditions are not appropriate for the use of sealed bids. They are awarded in accordance with the following requirements:
(i) Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Proposals must be solicited from an adequate number of qualified offerors. Any response to publicized requests for proposals must be considered to the maximum extent practical;
(ii) The non-Federal entity must have a written method for conducting technical evaluations of the proposals received and making selections; (iii) Contracts must be awarded to the responsible offeror whose proposal is most advantageous to the non-Federal entity, with price and other factors considered; and
(iv) The non-Federal entity may use competitive proposal procedures for qualifications-based procurement of architectural/engineering (A/E) professional services whereby offeror's qualifications are evaluated and the most qualified offeror is selected, subject to negotiation of fair and reasonable compensation.
The method, where price is not used as a selection factor, can only be used in procurement of A/E professional services. It cannot be used to purchase other types of services though A/E firms that are a potential source to perform the proposed effort.
(c) Noncompetitive procurement. There are specific circumstances in which noncompetitive procurement can be used. Noncompetitive procurement can only be awarded if one or more of the following circumstances apply:
(1) The acquisition of property or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold (see paragraph (a)(1) of this section); (2) The item is available only from a single source;
(3) The public exigency or emergency for the requirement will not permit a delay resulting from publicizing a competitive solicitation;
(4) The Federal awarding agency or pass-through entity expressly authorizes a noncompetitive procurement in response to a written request from the non-Federal entity; or
(5) After solicitation of a number of sources, competition is determined inadequate.
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§200.321 Contracting with small and minority businesses, women's business enterprises, and labor surplus area firms
(a) The non-Federal entity must take all necessary affirmative steps to assure that minority businesses, women's business enterprises, and labor surplus area firms are used when possible.
(b) Affirmative steps must include:
(1) Placing qualified small and minority businesses and women's business enterprises on solicitation lists;
(2) Assuring that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources;
(3) Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women's business enterprises;
(4) Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women's business enterprises; (5) Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and
(6) Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs (1) through (5) of this section. §200.322 Domestic preferences for procurements
(a) As appropriate and to the extent consistent with law, the non-Federal entity should, to the greatest extent practicable under a Federal award, provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States (including but not limited to iron, aluminum, steel, cement, and other manufactured products). The requirements of this section must be included in all subawards including all contracts and purchase orders for work or products under this award.
(b) For purposes of this section:
(1) “Produced in the United States” means, for iron and steel products, that all manufacturing processes, from the initial melting stage through the application of coatings, occurred in the United States.
(2) “Manufactured products” means items and construction materials composed in whole or in part of non-ferrous metals such as aluminum; plastics and polymerAgreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-15 Agenda Item #7.8:
based products such as polyvinyl chloride pipe; aggregates such as concrete; glass, including optical fiber; and lumber.
§200.323 Procurement of recovered materials
A non-Federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines. §200.324 Contract cost and price
(a) The non-Federal entity must perform a cost or price analysis in connection with every procurement action in excess of the Simplified Acquisition Threshold including contract amendments. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation, but as a starting point, the non-Federal entity must make independent estimates before receiving bids or proposals. (b) The non-Federal entity must negotiate profit as a separate element of the price for each contract in which there is no price competition and in all cases where cost analysis is performed. To establish a fair and reasonable profit, consideration must be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor's investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work. (c) Costs or prices based on estimated costs for contracts under the Federal award are allowable only to the extent that costs incurred or cost estimates included in negotiated prices would be allowable for the non-Federal entity under subpart E of this part. The non-Federal entity may reference its own cost principles that comply with the Federal cost principles.
(d) The cost plus a percentage of cost and percentage of construction cost methods of contracting must not be used.
§200.325 Federal awarding agency or pass-through entity review (a) The non-Federal entity must make available, upon request of the Federal awarding agency or pass-through entity, technical specifications on proposed procurements where the Federal awarding agency or pass-through entity believes such review is needed to ensure that the item or service specified is the one being proposed for acquisition. This review generally will take place prior to the time the specification is incorporated into a Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-16 Agenda Item #7.8:
solicitation document. However, if the non-Federal entity desires to have the review accomplished after a solicitation has been developed, the Federal awarding agency or pass-through entity may still review the specifications, with such review usually limited to the technical aspects of the proposed purchase.
(b) The non-Federal entity must make available upon request, for the Federal awarding agency or pass-through entity pre-procurement review, procurement documents, such as requests for proposals or invitations for bids, or independent cost estimates, when:
(1) The non-Federal entity's procurement procedures or operation fails to comply with the procurement standards in this part;
(2) The procurement is expected to exceed the Simplified Acquisition Threshold and is to be awarded without competition or only one bid or offer is received in response to a solicitation;
(3) The procurement, which is expected to exceed the Simplified Acquisition Threshold, specifies a “brand name” product;
(4) The proposed contract is more than the Simplified Acquisition Threshold and is to be awarded to other than the apparent low bidder under a sealed bid procurement; or (5) A proposed contract amendment changes the scope of a contract or increases the contract amount by more than the Simplified Acquisition Threshold. (c) The non-Federal entity is exempt from the pre-procurement review in paragraph (b) of this section if the Federal awarding agency or pass-through entity determines that its procurement systems comply with the standards of this part. (1) The non-Federal entity may request that its procurement system be reviewed by the Federal awarding agency or pass-through entity to determine whether its system meets these standards in order for its system to be certified. Generally, these reviews must occur where there is continuous high-dollar funding, and third-party contracts are awarded on a regular basis;
(2) The non-Federal entity may self-certify its procurement system. Such selfcertification must not limit the Federal awarding agency's right to survey the system.
Under a self-certification procedure, the Federal awarding agency may rely on written assurances from the non-Federal entity that it is complying with these standards. The non-Federal entity must cite specific policies, procedures, regulations, or standards as being in compliance with these requirements and have its system available for review. §200.326 Bonding requirements
For construction or facility improvement contracts or subcontracts exceeding the Simplified Acquisition Threshold, the Federal awarding agency or pass-through entity may accept the bonding policy and requirements of the non-Federal entity provided that the Federal awarding agency or pass-through entity has made a determination that the Federal interest is adequately Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-17 Agenda Item #7.8:
protected. If such a determination has not been made, the minimum requirements must be as follows:
(a) A bid guarantee from each bidder equivalent to five percent of the bid price. The “bid guarantee” must consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of the bid, execute such contractual documents as may be required within the time specified.
(b) A performance bond on the part of the contractor for 100 percent of the contract price. A “performance bond” is one executed in connection with a contract to secure fulfillment of all the contractor's requirements under such contract.
(c) A payment bond on the part of the contractor for 100 percent of the contract price. A “payment bond” is one executed in connection with a contract to assure payment as required by law of all persons supplying labor and material in the execution of the work provided for in the contract.
§200.327 Contract provisions
The non-Federal entity's contracts must contain the applicable provisions described in Appendix II to this part.
4. EQUIPMENT (2 CFR 200.313)
See also §200.439.
(a) Title. Subject to the obligations and conditions set forth in this section, title to equipment acquired under a Federal award will vest upon acquisition in the non-Federal entity.
Unless a statute specifically authorizes the Federal agency to vest title in the non-Federal entity without further obligation to the Federal Government, and the Federal agency elects to do so, the title must be a conditional title. Title must vest in the non-Federal entity subject to the following conditions:
(1) Use the equipment for the authorized purposes of the project during the period of performance, or until the property is no longer needed for the purposes of the project.
(2) Not encumber the property without approval of the Federal awarding agency or passthrough entity. (3) Use and dispose of the property in accordance with paragraphs (b), (c) and (e) of this section.
(b) General. A state must use, manage and dispose of equipment acquired under a Federal award by the state in accordance with state laws and procedures. Other non-Federal entities must follow paragraphs (c) through (e) of this section.
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(c) Use.
(1) Equipment must be used by the non-Federal entity in the program or project for which it was acquired as long as needed, whether or not the project or program continues to be supported by the Federal award, and the non-Federal entity must not encumber the property without prior approval of the Federal awarding agency. When no longer needed for the original program or project, the equipment may be used in other activities supported by the Federal awarding agency, in the following order of priority:
(i) Activities under a Federal award from the Federal awarding agency which funded the original program or project, then
(ii) Activities under Federal awards from other Federal awarding agencies. This includes consolidated equipment for information technology systems. (2) During the time that equipment is used on the project or program for which it was acquired, the non-Federal entity must also make equipment available for use on other projects or programs currently or previously supported by the Federal Government, provided that such use will not interfere with the work on the projects or program for which it was originally acquired. First preference for other use must be given to other programs or projects supported by Federal awarding agency that financed the equipment and second preference must be given to programs or projects under Federal awards from other Federal awarding agencies. Use for non-federally funded programs or projects is also permissible. User fees should be considered if appropriate.
(3) Notwithstanding the encouragement in §200.307 Program income to earn program income, the non-Federal entity must not use equipment acquired with the Federal award to provide services for a fee that is less than private companies charge for equivalent services unless specifically authorized by Federal statute for as long as the Federal Government retains an interest in the equipment. (4) When acquiring replacement equipment, the non-Federal entity may use the equipment to be replaced as a trade-in or sell the property and use the proceeds to offset the cost of the replacement property.
(d) Management requirements. Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements:
(1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property.
(2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years.
Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-19 Agenda Item #7.8:
(3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition.
(5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. (e) Disposition. When original or replacement equipment acquired under a Federal award is no longer needed for the original project or program or for other activities currently or previously supported by a Federal awarding agency, except as otherwise provided in Federal statutes, regulations, or Federal awarding agency disposition instructions, the non-Federal entity must request disposition instructions from the Federal awarding agency if required by the terms and conditions of the Federal award. Disposition of the equipment will be made as follows, in accordance with Federal awarding agency disposition instructions:
(1) Items of equipment with a current per unit fair market value of $5,000 or less may be retained, sold or otherwise disposed of with no further obligation to the Federal awarding agency.
(2) Except as provided in §200.312(b), or if the Federal awarding agency fails to provide requested disposition instructions within 120 days, items of equipment with a current per-unit fair-market value in excess of $5,000 may be retained by the nonFederal entity or sold. The Federal awarding agency is entitled to an amount calculated by multiplying the current market value or proceeds from sale by the Federal awarding agency's percentage of participation in the cost of the original purchase. If the equipment is sold, the Federal awarding agency may permit the nonFederal entity to deduct and retain from the Federal share $500 or ten percent of the proceeds, whichever is less, for its selling and handling expenses. (3) The non-Federal entity may transfer title to the property to the Federal Government or to an eligible third party provided that, in such cases, the non-Federal entity must be entitled to compensation for its attributable percentage of the current fair market value of the property.
(4) In cases where a non-Federal entity fails to take appropriate disposition actions, the Federal awarding agency may direct the non-Federal entity to take disposition actions.
[78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75884, Dec. 19, 2014]
5. SUPPLIES (2 CFR 200.314)
See also §200.453.
(a) Title to supplies will vest in the non-Federal entity upon acquisition. If there is a residual inventory of unused supplies exceeding $5,000 in total aggregate value upon termination or completion of the project or program and the supplies are not needed for any other Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-20 Agenda Item #7.8:
Federal award, the non-Federal entity must retain the supplies for use on other activities or sell them, but must, in either case, compensate the Federal Government for its share.
The amount of compensation must be computed in the same manner as for equipment.
See §200.313(e)(2) for the calculation methodology.
(b) As long as the Federal Government retains an interest in the supplies, the non-Federal entity must not use supplies acquired under a Federal award to provide services to other organizations for a fee that is less than private companies charge for equivalent services, unless specifically authorized by Federal statute.
6. INSPECTION
Reclamation has the right to inspect and evaluate the work performed or being performed under this Agreement, and the premises where the work is being performed, at all reasonable times and in a manner that will not unduly delay the work. If Reclamation performs inspection or evaluation on the premises of the Recipient or a sub-Recipient, the Recipient shall furnish and shall require sub-recipients to furnish all reasonable facilities and assistance for the safe and convenient performance of these duties
7. AUDIT REQUIREMENTS (2 CFR 200.501)
(a) Audit required. A non-Federal entity that expends $750,000 or more during the nonFederal entity's fiscal year in Federal awards must have a single or program-specific audit conducted for that year in accordance with the provisions of this part. (b) Single audit. A non-Federal entity that expends $750,000 or more during the nonFederal entity's fiscal year in Federal awards must have a single audit conducted in accordance with §200.514 except when it elects to have a program-specific audit conducted in accordance with paragraph (c) of this section. (c) Program-specific audit election. When an auditee expends Federal awards under only one Federal program (excluding R&D) and the Federal program's statutes, regulations, or the terms and conditions of the Federal award do not require a financial statement audit of the auditee, the auditee may elect to have a program-specific audit conducted in accordance with §200.507. A program-specific audit may not be elected for R&D unless all of the Federal awards expended were received from the same Federal agency, or the same Federal agency and the same pass-through entity, and that Federal agency, or passthrough entity in the case of a subrecipient, approves in advance a program-specific audit.
(d) Exemption when Federal awards expended are less than $750,000. A non-Federal entity that expends less than $750,000 during the non-Federal entity's fiscal year in Federal awards is exempt from Federal audit requirements for that year, except as noted in §200.503, but records must be available for review or audit by appropriate officials of the Federal agency, pass-through entity, and Government Accountability Office (GAO).
Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-21 Agenda Item #7.8:
(e) Federally Funded Research and Development Centers (FFRDC). Management of an auditee that owns or operates a FFRDC may elect to treat the FFRDC as a separate entity for purposes of this part.
(f) Subrecipients and Contractors. An auditee may simultaneously be a recipient, a subrecipient, and a contractor. Federal awards expended as a recipient or a subrecipient are subject to audit under this part. The payments received for goods or services provided as a contractor are not Federal awards. Section §200.330 sets forth the considerations in determining whether payments constitute a Federal award or a payment for goods or services provided as a contractor. (g) Compliance responsibility for contractors. In most cases, the auditee's compliance responsibility for contractors is only to ensure that the procurement, receipt, and payment for goods and services comply with Federal statutes, regulations, and the terms and conditions of Federal awards. Federal award compliance requirements normally do not pass through to contractors. However, the auditee is responsible for ensuring compliance for procurement transactions which are structured such that the contractor is responsible for program compliance or the contractor's records must be reviewed to determine program compliance. Also, when these procurement transactions relate to a major program, the scope of the audit must include determining whether these transactions are in compliance with Federal statutes, regulations, and the terms and conditions of Federal awards.
(h) For-profit subrecipient. Since this part does not apply to for-profit subrecipients, the pass-through entity is responsible for establishing requirements, as necessary, to ensure compliance by for-profit subrecipients. The agreement with the for-profit subrecipient must describe applicable compliance requirements and the for-profit subrecipient's compliance responsibility. Methods to ensure compliance for Federal awards made to for-profit subrecipients may include pre-award audits, monitoring during the agreement, and post-award audits. See also §200.332.
[78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014; 85 FR 49571, Aug 13, 2020]
8. REMEDIES FOR NONCOMPLIANCE (2 CFR 200.339)
§200.339 Remedies for noncompliance
If a non-Federal entity fails to comply with Federal statutes, regulations or the terms and conditions of a Federal award, the Federal awarding agency or pass-through entity may impose additional conditions, as described in §200.208. If the Federal awarding agency or pass-through entity determines that noncompliance cannot be remedied by imposing additional conditions, the Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-22 Agenda Item #7.8:
Federal awarding agency or pass-through entity may take one or more of the following actions, as appropriate in the circumstances.
(a) Temporarily withhold cash payments pending correction of the deficiency by the nonFederal entity or more severe enforcement action by the Federal awarding agency or pass-through entity.
(b) Disallow (that is, deny both use of funds and any applicable matching credit for) all or part of the cost of the activity or action not in compliance. (c) Wholly or partly suspend or terminate the Federal award. (d) Initiate suspension or debarment proceedings as authorized under 2 CFR part 180 and Federal awarding agency regulations (or in the case of a pass-through entity, recommend such a proceeding be initiated by a Federal awarding agency). (e) Withhold further Federal awards for the project or program. (f) Take other remedies that may be legally available.
9. TERMINATION (2 CFR 200.340)
§200.340 Termination.
(a) The Federal award may be terminated in whole or in part as follows:
(1) By the Federal awarding agency or pass-through entity, if a non-Federal entity fails to comply with the terms and conditions of a Federal award; (2) By the Federal awarding agency or pass-through entity, to the greatest extent authorized by law, if an award no longer effectuates the program goals or agency priorities;
(3) By the Federal awarding agency or pass-through entity with the consent of the nonFederal entity, in which case the two parties must agree upon the termination conditions, including the effective date and, in the case of partial termination, the portion to be terminated;
(4) By the non-Federal entity upon sending to the Federal awarding agency or passthrough entity written notification setting forth the reasons for such termination, the effective date, and, in the case of partial termination, the portion to be terminated.
However, if the Federal awarding agency or pass-through entity determines in the case of partial termination that the reduced or modified portion of the Federal award or subaward will not accomplish the purposes for which the Federal award was made, the Federal awarding agency or pass-through entity may terminate the Federal award in its entirety; or
(5) By the Federal awarding agency or pass-through entity pursuant to termination provisions included in the Federal award.
(b) A Federal awarding agency should clearly and unambiguously specify termination provisions applicable to each Federal award, in applicable regulations or in the award, consistent with this section.
Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-23 Agenda Item #7.8:
(c) When a Federal awarding agency terminates a Federal award prior to the end of the period of performance due to the non-Federal entity's material failure to comply with the Federal award terms and conditions, the Federal awarding agency must report the termination to the OMB-designated integrity and performance system accessible through SAM (currently FAPIIS).
(1) The information required under paragraph (c) of this section is not to be reported to designated integrity and performance system until the non-Federal entity either— (i) Has exhausted its opportunities to object or challenge the decision, see §200.342; or
(ii) Has not, within 30 calendar days after being notified of the termination, informed the Federal awarding agency that it intends to appeal the Federal awarding agency's decision to terminate.
(2) If a Federal awarding agency, after entering information into the designated integrity and performance system about a termination, subsequently:
(i) Learns that any of that information is erroneous, the Federal awarding agency must correct the information in the system within three business days; (ii) Obtains an update to that information that could be helpful to other Federal awarding agencies, the Federal awarding agency is strongly encouraged to amend the information in the system to incorporate the update in a timely way. (3) Federal awarding agencies, must not post any information that will be made publicly available in the non-public segment of designated integrity and performance system that is covered by a disclosure exemption under the Freedom of Information Act. If the non-Federal entity asserts within seven calendar days to the Federal awarding agency who posted the information, that some of the information made publicly available is covered by a disclosure exemption under the Freedom of Information Act, the Federal awarding agency who posted the information must remove the posting within seven calendar days of receiving the assertion. Prior to reposting the releasable information, the Federal agency must resolve the issue in accordance with the agency's Freedom of Information Act procedures.
(d) When a Federal award is terminated or partially terminated, both the Federal awarding agency or pass-through entity and the non-Federal entity remain responsible for compliance with the requirements in §§200.344 and 200.345.
10. DEBARMENT AND SUSPENSION (2 CFR 1400)
The Department of the Interior regulations at 2 CFR 1400—Governmentwide Debarment and Suspension (Nonprocurement), which adopt the common rule for the governmentwide system of debarment and suspension for nonprocurement activities, are hereby incorporated by reference and made a part of this Agreement. By entering into this grant or cooperative Agreement with Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-24 Agenda Item #7.8:
the Bureau of Reclamation, the Recipient agrees to comply with 2 CFR 1400, Subpart C, and agrees to include a similar term or condition in all lower-tier covered transactions. These regulations are available at http://www.ecfr.gov/.
11. DRUG-FREE WORKPLACE (2 CFR 182 and 1401)
The Department of the Interior regulations at 2 CFR 1401—Governmentwide Requirements for Drug-Free Workplace (Financial Assistance), which adopt the portion of the Drug-Free Workplace Act of 1988 (41 U.S.C. 701 et seq, as amended) applicable to grants and cooperative agreements, are hereby incorporated by reference and made a part of this agreement. By entering into this grant or cooperative agreement with the Bureau of Reclamation, the Recipient agrees to comply with 2 CFR 182.
12. ASSURANCES AND CERTIFICATIONS INCORPORATED BY REFERENCE The provisions of the Assurances, SF-424B or SF-424D as applicable, executed by the Recipient in connection with this Agreement shall apply with full force and effect to this Agreement. All anti-discrimination and equal opportunity statutes, regulations, and Executive Orders that apply to the expenditure of funds under Federal contracts, grants, and cooperative Agreements, loans, and other forms of Federal assistance. The Recipient shall comply with Title VI or the Civil Rights Act of 1964, Title IX of the Education Amendments of 1972, Section 504 of the Rehabilitation Act of 1973, the Age Discrimination Act of 1975, and any program-specific statutes with anti-discrimination requirements. The Recipient shall comply with civil rights laws including, but not limited to, the Fair Housing Act, the Fair Credit Reporting Act, the Americans with Disabilities Act, Title VII of the Civil Rights Act of 1964, the Equal Educational Opportunities Act, the Age Discrimination in Employment Act, and the Uniform Relocation Act.
Such Assurances also include, but are not limited to, the promise to comply with all applicable Federal statutes and orders relating to nondiscrimination in employment, assistance, and housing; the Hatch Act; Federal wage and hour laws and regulations and work place safety standards; Federal environmental laws and regulations and the Endangered Species Act; and Federal protection of rivers and waterways and historic and archeological preservation.
13. COVENANT AGAINST CONTINGENT FEES
The Recipient warrants that no person or agency has been employed or retained to solicit or secure this Agreement upon an Agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide offices established and maintained by the Recipient for the purpose of securing Agreements or business. For breach or violation of this warranty, the Government shall have the right to annul this Agreement without liability or, in its discretion, to deduct from the Agreement amount, or otherwise recover, the full amount of such commission, percentage, brokerage, or contingent fee.
Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-25 Agenda Item #7.8:
14. TRAFFICKING VICTIMS PROTECTION ACT OF 2000 (2 CFR 175.15) Trafficking in persons.
(a) Provisions applicable to a recipient that is a private entity. (1) You as the recipient, your employees, subrecipients under this award, and subrecipients' employees may not
(i) Engage in severe forms of trafficking in persons during the period of time that the award is in effect;
(ii) Procure a commercial sex act during the period of time that the award is in effect; or
(iii) Use forced labor in the performance of the award or subawards under the award.
(2) We as the Federal awarding agency may unilaterally terminate this award, without penalty, if you or a subrecipient that is a private entity — (i) Is determined to have violated a prohibition in paragraph a.1 of this award term; or
(ii) Has an employee who is determined by the agency official authorized to terminate the award to have violated a prohibition in paragraph a.1 of this award term through conduct that is either:
(A) Associated with performance under this award; or
(B) Imputed to you or the subrecipient using the standards and due process for imputing the conduct of an individual to an organization that are provided in 2 CFR part 180, “OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement),” as implemented by our agency at 2 CFR part 1400.
(b) Provision applicable to a recipient other than a private entity. We as the Federal awarding agency may unilaterally terminate this award, without penalty, if a subrecipient that is a private entity—
(1) Is determined to have violated an applicable prohibition in paragraph a.1 of this award term; or
Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-26 Agenda Item #7.8:
(2) Has an employee who is determined by the agency official authorized to terminate the award to have violated an applicable prohibition in paragraph a.1 of this award term through conduct that is either:
(i) Associated with performance under this award; or
(ii) Imputed to the subrecipient using the standards and due process for imputing the conduct of an individual to an organization that are provided in 2 CFR part 180, “OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement),” as implemented by our agency at 2 CFR part 1400.
(c) Provisions applicable to any recipient.
(1) You must inform us immediately of any information you receive from any source alleging a violation of a prohibition in paragraph a.1 of this award term. (2) Our right to terminate unilaterally that is described in paragraph a.2 or b of this section:
(i) Implements section 106(g) of the Trafficking Victims Protection Act of 2000 (TVPA), as amended (22 U.S.C. 7104(g)), and
(ii) Is in addition to all other remedies for noncompliance that are available to us under this award.
(3) You must include the requirements of paragraph a.1 of this award term in any subaward you make to a private entity.
(d) Definitions. For purposes of this award term:
(1) “Employee” means either:
(i) An individual employed by you or a subrecipient who is engaged in the performance of the project or program under this award; or (ii) Another person engaged in the performance of the project or program under this award and not compensated by you including, but not limited to, a volunteer or individual whose services are contributed by a third party as an in-kind contribution toward cost sharing or matching requirements. (2) “Forced labor” means labor obtained by any of the following methods: the recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery.
Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-27 Agenda Item #7.8:
(3) “Private entity”:
(i) Means any entity other than a state, local government, Indian tribe, or foreign public entity, as those terms are defined in 2 CFR 175.25. (ii) Includes:
(A) A nonprofit organization, including any nonprofit institution of higher education, hospital, or tribal organization other than one included in the definition of Indian tribe at 2 CFR 175.25(b).
(B) A for-profit organization.
(4) “Severe forms of trafficking in persons,” “commercial sex act,” and “coercion” have the meanings given at section 103 of the TVPA, as amended (22 U.S.C. 7102).
15. NEW RESTRICTIONS ON LOBBYING (43 CFR 18)
The Recipient agrees to comply with 43 CFR 18, New Restrictions on Lobbying, including the following certification:
(a) No Federal appropriated funds have been paid or will be paid, by or on behalf of the Recipient, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, and officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
(b) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying” in accordance with its instructions. (c) The Recipient shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.
Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-28 Agenda Item #7.8:
16. UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY
ACQUISITION POLICIES ACT OF 1970 (URA) (42 USC 4601 et seq.) (a) The Uniform Relocation Assistance Act (URA), 42 U.S.C. 4601 et seq., as amended, requires certain assurances for Reclamation funded land acquisition projects conducted by a Recipient that cause the displacement of persons, businesses, or farm operations.
Because Reclamation funds only support acquisition of property or interests in property from willing sellers, it is not anticipated that Reclamation funds will result in any “displaced persons,” as defined under the URA.
(b) However, if Reclamation funds are used for the acquisition of real property that results in displacement, the URA requires Recipients to ensure that reasonable relocation payments and other remedies will be provided to any displaced person. Further, when acquiring real property, Recipients must be guided, to the greatest extent practicable, by the land acquisition policies in 42 U.S.C. 4651.
(c) Exemptions to the URA and 49 CFR Part 24
(1) The URA provides for an exemption to the appraisal, review and certification rules for those land acquisitions classified as “voluntary transactions.” Such “voluntary transactions” are classified as those that do not involve an exercise of eminent domain authority on behalf of a Recipient, and must meet the conditions specified at 49 CFR 24.101(b)(1)(i)-(iv).
(2) For any land acquisition undertaken by a Recipient that receives Reclamation funds, but does not have authority to acquire the real property by eminent domain, to be exempt from the requirements of 49 CFR Part 24 the Recipient must:
(i) provide written notification to the owner that it will not acquire the property in the event negotiations fail to result in an amicable agreement, and; (ii) inform the owner in writing of what it believes to be the market value of the property.
(d) Review of Land Acquisition Appraisals. Reclamation reserves the right to review any land appraisal whether or not such review is required under the URA or 49 CFR 24.104.
Such reviews may be conducted by the Department of the Interior’s Appraisal Services Directorate or a Reclamation authorized designee. When Reclamation determines that a review of the original appraisal is necessary, Reclamation will notify the Recipient and provide an estimated completion date of the initial appraisal review.
Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-29 Agenda Item #7.8:
17. SYSTEM FOR AWARD MANAGEMENT AND UNIVERSAL
IDENTIFIER REQUIREMENTS (2 CFR 25, APPENDIX A)
A. Requirement for System for Award Management
Unless you are exempted from this requirement under 2 CFR 25.110, you as the recipient must maintain the currency of your information in the SAM until you submit the final financial report required under this award or receive the final payment, whichever is later.
This requires that you review and update the information at least annually after the initial registration, and more frequently if required by changes in your information or another award term.
B. Requirement for unique entity identifier
If you are authorized to make subawards under this award, you:
1. Must notify potential subrecipients that no entity (see definition in paragraph C of this award term) may receive a subaward from you unless the entity has provided its unique entity identifier to you.
2. May not make a subaward to an entity unless the entity has provided its unique entity identifier to you.
C. Definitions
For purposes of this award term:
1. System for Award Management (SAM) means the Federal repository into which an entity must provide information required for the conduct of business as a recipient.
Additional information about registration procedures may be found at the SAM Internet site (currently at http://www.sam.gov).
2. Unique entity identifier means the identifier required for SAM registration to uniquely identify business entities.
3. Entity, as it is used in this award term, means all of the following, as defined at 2 CFR part 25, subpart C:
a. A Governmental organization, which is a State, local government, or Indian Tribe;
b. A foreign public entity;
c. A domestic or foreign nonprofit organization;
d. A domestic or foreign for-profit organization; and
Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-30 Agenda Item #7.8:
e. A Federal agency, but only as a subrecipient under an award or subaward to a non-Federal entity.
4. Subaward:
a. This term means a legal instrument to provide support for the performance of any portion of the substantive project or program for which you received this award and that you as the recipient award to an eligible subrecipient. b. The term does not include your procurement of property and services needed to carry out the project or program (for further explanation, see 2 CFR 200.330). c. A subaward may be provided through any legal agreement, including an agreement that you consider a contract.
5. Subrecipient means an entity that:
a. Receives a subaward from you under this award; and
b. Is accountable to you for the use of the Federal funds provided by the subaward.
18. PROHIBITION ON TEXT MESSAGING AND USING ELECTRONIC
EQUIPMENT SUPPLIED BY THE GOVERNMENT WHILE DRIVING
Executive Order 13513, Federal Leadership On Reducing Text Messaging While Driving, was signed by President Barack Obama on October 1, 2009 (ref:
http://edocket.access.gpo.gov/2009/pdf/E9-24203.pdf). This Executive Order introduces a Federal Government-wide prohibition on the use of text messaging while driving on official business or while using Government-supplied equipment. Additional guidance enforcing the ban will be issued at a later date. In the meantime, please adopt and enforce policies that immediately ban text messaging while driving company-owned or rented vehicles, governmentowned or leased vehicles, or while driving privately owned vehicles when on official government business or when performing any work for or on behalf of the government.
19. REPORTING SUBAWARDS AND EXECUTIVE COMPENSATION
(2 CFR 170 APPENDIX A)
I. Reporting Subawards and Executive Compensation.
a. Reporting of first-tier subawards.
1. Applicability. Unless you are exempt as provided in paragraph d. of this award term, you must report each action that obligates $25,000 or more in Federal funds that does not include Recovery funds (as defined in section 1512(a)(2) of the American Recovery and Reinvestment Act of 2009, Pub. L. 111-5) for a subaward to an entity (see definitions in paragraph e. of this award term).
Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-31 Agenda Item #7.8:
2. Where and when to report.
i. You must report each obligating action described in paragraph a.1. of this award term to http://www.fsrs.gov.
ii. For subaward information, report no later than the end of the month following the month in which the obligation was made. (For example, if the obligation was made on November 7, 2010, the obligation must be reported by no later than December 31, 2010.)
3. What to report. You must report the information about each obligating action that the submission instructions posted at http://www.fsrs.gov specify. b. Reporting Total Compensation of Recipient Executives.
1. Applicability and what to report. You must report total compensation for each of your five most highly compensated executives for the preceding completed fiscal year, if—
i. the total Federal funding authorized to date under this award is $25,000 or more;
ii. in the preceding fiscal year, you received—
(A) 80 percent or more of your annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR 170.320 (and subawards); and
(B) $25,000,000 or more in annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR 170.320 (and subawards); and
iii. The public does not have access to information about the compensation of the executives through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To determine if the public has access to the compensation information, see the U.S. Security and Exchange Commission total compensation filings
at http://www.sec.gov/answers/execomp.htm.)
2. Where and when to report. You must report executive total compensation described in paragraph b.1. of this award term:
i. As part of your registration profile at http://www.ccr.gov.
Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-32 Agenda Item #7.8:
ii. By the end of the month following the month in which this award is made, and annually thereafter.
c. Reporting of Total Compensation of Subrecipient Executives.
1. Applicability and what to report. Unless you are exempt as provided in paragraph d. of this award term, for each first-tier subrecipient under this award, you shall report the names and total compensation of each of the subrecipient's five most highly compensated executives for the subrecipient's preceding completed fiscal year, if—
i. in the subrecipient's preceding fiscal year, the subrecipient received— (A) 80 percent or more of its annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR 170.320 (and subawards); and
(B) $25,000,000 or more in annual gross revenues from Federal procurement contracts (and subcontracts), and Federal financial assistance subject to the Transparency Act (and subawards); and
ii. The public does not have access to information about the compensation of the executives through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To determine if the public has access to the compensation information, see the U.S. Security and Exchange Commission total compensation filings
at http://www.sec.gov/answers/execomp.htm.)
2. Where and when to report. You must report subrecipient executive total compensation described in paragraph c.1. of this award term:
i. To the recipient.
ii. By the end of the month following the month during which you make the subaward. For example, if a subaward is obligated on any date during the month of October of a given year (i.e., between October 1 and 31), you must report any required compensation information of the subrecipient by November 30 of that year.
Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-33 Agenda Item #7.8:
d. Exemptions
If, in the previous tax year, you had gross income, from all sources, under $300,000, you are exempt from the requirements to report:
i. Subawards, and
ii. The total compensation of the five most highly compensated executives of any subrecipient.
e. Definitions. For purposes of this award term:
1. Entity means all of the following, as defined in 2 CFR part 25:
i. A Governmental organization, which is a State, local government, or Indian tribe;
ii. A foreign public entity;
iii. A domestic or foreign nonprofit organization;
iv. A domestic or foreign for-profit organization;
v. A Federal agency, but only as a subrecipient under an award or subaward to a non-Federal entity.
2. Executive means officers, managing partners, or any other employees in management positions.
3. Subaward:
i. This term means a legal instrument to provide support for the performance of any portion of the substantive project or program for which you received this award and that you as the recipient award to an eligible subrecipient. ii. The term does not include your procurement of property and services needed to carry out the project or program (for further explanation, see Sec. __.210 of the attachment to OMB Circular A-133, “Audits of States, Local Governments, and Non-Profit Organizations”).
iii. A subaward may be provided through any legal agreement, including an agreement that you or a subrecipient considers a contract.
Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-34 Agenda Item #7.8:
4. Subrecipient means an entity that:
i. Receives a subaward from you (the recipient) under this award; and ii. Is accountable to you for the use of the Federal funds provided by the subaward.
5. Total compensation means the cash and noncash dollar value earned by the executive during the recipient's or subrecipient's preceding fiscal year and includes the following (for more information see 17 CFR 229.402(c)(2)):
i. Salary and bonus.
ii. Awards of stock, stock options, and stock appreciation rights. Use the dollar amount recognized for financial statement reporting purposes with respect to the fiscal year in accordance with the Statement of Financial Accounting Standards No. 123 (Revised 2004) (FAS 123R), Shared Based Payments. iii. Earnings for services under non-equity incentive plans. This does not include group life, health, hospitalization or medical reimbursement plans that do not discriminate in favor of executives, and are available generally to all salaried employees.
iv. Change in pension value. This is the change in present value of defined benefit and actuarial pension plans.
v. Above-market earnings on deferred compensation which is not tax-qualified. vi. Other compensation, if the aggregate value of all such other compensation (e.g. severance, termination payments, value of life insurance paid on behalf of the employee, perquisites or property) for the executive exceeds $10,000.
20. RECIPIENT EMPLOYEE WHISTLEBLOWER RIGHTS AND REQUIREMENT TO INFORM EMPLOYEES OF WHISTLEBLOWER RIGHTS (SEP 2013)
(a) This award and employees working on this financial assistance agreement will be subject to the whistleblower rights and remedies in the pilot program on Award Recipient employee whistleblower protections established at 41 U.S.C. 4712 by section 828 of the National Defense Authorization Act for Fiscal Year 2013 (Pub. L. 112-239).
(b) The Award Recipient shall inform its employees in writing, in the predominant language of the workforce, of employee whistleblower rights and protections under 41 U.S.C 4712.
Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-35 Agenda Item #7.8:
(c) The Award Recipient shall insert the substance of this clause, including this paragraph (c), in all subawards or subcontracts over the simplified acquisition threshold. 48 CFR 52.203-17 (as referenced in 48 CFR 3.908-9).
21. REPORTING OF MATTERS RELATED TO RECIPIENT INTEGRITY AND PERFORMANCE (APPENDIX XII TO 2 CFR PART 200)
1. General Reporting Requirement
If the total value of your currently active grants, cooperative agreements, and procurement contracts from all Federal awarding agencies exceeds $10,000,000 for any period of time during the period of performance of this Federal award, then you as the recipient during that period of time must maintain the currency of information reported to the System for Award Management (SAM) that is made available in the designated integrity and performance system (currently the Federal Awardee Performance and Integrity Information System (FAPIIS)) about civil, criminal, or administrative proceedings described in paragraph 2 of this award term and condition. This is a statutory requirement under section 872 of Public Law 110-417, as amended (41 U.S.C. 2313).
As required by section 3010 of Public Law 111-212, all information posted in the designated integrity and performance system on or after April 15, 2011, except past performance reviews required for Federal procurement contracts, will be publicly available.
2. Proceedings About Which You Must Report
Submit the information required about each proceeding that:
a. Is in connection with the award or performance of a grant, cooperative agreement, or procurement contract from the Federal Government;
b. Reached its final disposition during the most recent five-year period; and c. Is one of the following:
(1) A criminal proceeding that resulted in a conviction, as defined in paragraph 5 of this award term and condition;
(2) A civil proceeding that resulted in a finding of fault and liability and payment of a monetary fine, penalty, reimbursement, restitution, or damages of $5,000 or more; (3) An administrative proceeding, as defined in paragraph 5. of this award term and condition, that resulted in a finding of fault and liability and your payment of either a monetary fine or penalty of $5,000 or more or reimbursement, restitution, or damages in excess of $100,000; or
(4) Any other criminal, civil, or administrative proceeding if:
(i) It could have led to an outcome described in paragraph 2.c.(1), (2), or (3) of this award term and condition;
(ii) It had a different disposition arrived at by consent or compromise with an acknowledgment of fault on your part; and
Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-36 Agenda Item #7.8:
(iii) The requirement in this award term and condition to disclose information about the proceeding does not conflict with applicable laws and regulations.
3. Reporting Procedures
Enter in the SAM Entity Management area the information that SAM requires about each proceeding described in paragraph 2 of this award term and condition. You do not need to submit the information a second time under assistance awards that you received if you already provided the information through SAM because you were required to do so under Federal procurement contracts that you were awarded.
4. Reporting Frequency
During any period of time when you are subject to the requirement in paragraph 1 of this award term and condition, you must report proceedings information through SAM for the most recent five year period, either to report new information about any proceeding(s) that you have not reported previously or affirm that there is no new information to report. Recipients that have Federal contract, grant, and cooperative agreement awards with a cumulative total value greater than $10,000,000 must disclose semiannually any information about the criminal, civil, and administrative proceedings.
5. Definitions
For purposes of this award term and condition:
a. Administrative proceeding means a non-judicial process that is adjudicatory in nature in order to make a determination of fault or liability (e.g., Securities and Exchange Commission Administrative proceedings, Civilian Board of Contract Appeals proceedings, and Armed Services Board of Contract Appeals proceedings). This includes proceedings at the Federal and State level but only in connection with performance of a Federal contract or grant. It does not include audits, site visits, corrective plans, or inspection of deliverables.
b. Conviction, for purposes of this award term and condition, means a judgment or conviction of a criminal offense by any court of competent jurisdiction, whether entered upon a verdict or a plea, and includes a conviction entered upon a plea of nolo contendere.
c. Total value of currently active grants, cooperative agreements, and procurement contracts includes—
(1) Only the Federal share of the funding under any Federal award with a recipient cost share or match; and
(2) The value of all expected funding increments under a Federal award and options, even if not yet exercised.
[80 FR 43310, July 22, 2015, as amended at 85 FR 49582, Aug. 13, 2020] Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-37 Agenda Item #7.8:
22. CONFLICTS OF INTEREST
(a) Applicability.
(1) This section intends to ensure that non-Federal entities and their employees take appropriate steps to avoid conflicts of interest in their responsibilities under or with respect to Federal financial assistance agreements.
(2) In the procurement of supplies, equipment, construction, and services by recipients and by subrecipients, the conflict of interest provisions in 2 CFR 200.318 apply. (b) Requirements.
(1) Non-Federal entities must avoid prohibited conflicts of interest, including any significant financial interests that could cause a reasonable person to question the recipient's ability to provide impartial, technically sound, and objective performance under or with respect to a Federal financial assistance agreement. (2) In addition to any other prohibitions that may apply with respect to conflicts of interest, no key official of an actual or proposed recipient or subrecipient, who is substantially involved in the proposal or project, may have been a former Federal employee who, within the last one (1) year, participated personally and substantially in the evaluation, award, or administration of an award with respect to that recipient or subrecipient or in development of the requirement leading to the funding announcement.
(3) No actual or prospective recipient or subrecipient may solicit, obtain, or use nonpublic information regarding the evaluation, award, or administration of an award to that recipient or subrecipient or the development of a Federal financial assistance opportunity that may be of competitive interest to that recipient or subrecipient. (c) Notification.
(1) Non-Federal entities, including applicants for financial assistance awards, must disclose in writing any conflict of interest to the DOI awarding agency or passthrough entity in accordance with 2 CFR 200.112, Conflict of Interest. (2) Recipients must establish internal controls that include, at a minimum, procedures to identify, disclose, and mitigate or eliminate identified conflicts of interest. The recipient is responsible for notifying the Financial Assistance Officer in writing of any conflicts of interest that may arise during the life of the award, including those that have been reported by subrecipients.
(d) Restrictions on Lobbying. Non-Federal entities are strictly prohibited from using funds under this grant or cooperative agreement for lobbying activities and must provide the required certifications and disclosures pursuant to 43 CFR Part 18 and 31 USC 1352.
Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-38 Agenda Item #7.8:
(e) Review Procedures. The Financial Assistance Officer will examine each conflict of interest disclosure on the basis of its particular facts and the nature of the proposed grant or cooperative agreement, and will determine whether a significant potential conflict exists and, if it does, develop an appropriate means for resolving it. (f) Enforcement. Failure to resolve conflicts of interest in a manner that satisfies the Government may be cause for termination of the award. Failure to make required disclosures may result in any of the remedies described in 2 CFR 200.339, Remedies for Noncompliance, including suspension or debarment (see also 2 CFR Part 180).
23. DATA AVAILABILITY
(a) Applicability. The Department of the Interior is committed to basing its decisions on the best available science and providing the American people with enough information to thoughtfully and substantively evaluate the data, methodology, and analysis used by the Department to inform its decisions.
(b) Use of Data. The regulations at 2 CFR 200.315 apply to data produced under a Federal award, including the provision that the Federal Government has the right to obtain, reproduce, publish, or otherwise use the data produced under a Federal award as well as authorize others to receive, reproduce, publish, or otherwise use such data for Federal purposes.
(c) Availability of Data. The recipient shall make the data produced under this award and any subaward(s) available to the Government for public release, consistent with applicable law, to allow meaningful third-party evaluation and reproduction of the following:
(i) The scientific data relied upon;
(ii) The analysis relied upon; and
(iii) The methodology, including models, used to gather and analyze data.
24. PROHIBITION ON PROVIDING FUNDS TO THE ENEMY
(a) The recipient must—
(1) Exercise due diligence to ensure that none of the funds, including supplies and services, received under this grant or cooperative agreement are provided directly or indirectly (including through subawards or contracts) to a person or entity who is actively opposing the United States or coalition forces involved in a contingency operation in which members of the Armed Forces are actively engaged in hostilities, which must be completed through 2 CFR 180.300 prior to issuing a subaward or contract and;
(2) Terminate or void in whole or in part any subaward or contract with a person or entity listed in SAM as a prohibited or restricted source pursuant to subtitle E of Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-39 Agenda Item #7.8:
Title VIII of the NDAA for FY 2015, unless the Federal awarding agency provides written approval to continue the subaward or contract.
(b) The recipient may include the substance of this clause, including paragraph (a) of this clause, in subawards under this grant or cooperative agreement that have an estimated value over $50,000 and will be performed outside the United States, including its outlying areas.
(c) The Federal awarding agency has the authority to terminate or void this grant or cooperative agreement, in whole or in part, if the Federal awarding agency becomes aware that the recipient failed to exercise due diligence as required by paragraph (a) of this clause or if the Federal awarding agency becomes aware that any funds received under this grant or cooperative agreement have been provided directly or indirectly to a person or entity who is actively opposing coalition forces involved in a contingency operation in which members of the Armed Forces are actively engaged in hostilities.
25. ADDITIONAL ACCESS TO RECIPIENT RECORDS
(a) In addition to any other existing examination-of-records authority, the Federal Government is authorized to examine any records of the recipient and its subawards or contracts to the extent necessary to ensure that funds, including supplies and services, available under this grant or cooperative agreement are not provided, directly or indirectly, to a person or entity that is actively opposing United States or coalition forces involved in a contingency operation in which members of the Armed Forces are actively engaged in hostilities, except for awards awarded by the Department of Defense on or before Dec 19, 2017 that will be performed in the United States Central Command (USCENTCOM) theater of operations.
(b) The substance of this clause, including this paragraph (b), is required to be included in subawards or contracts under this grant or cooperative agreement that have an estimated value over $50,000 and will be performed outside the United States, including its outlying areas.
26. PROHIBITION ON CERTAIN TELECOMMUNICATION AND
VIDEO SURVEILLANCE SERVICES OR EQUIPMENT
Federal award recipients are prohibited from using government funds to enter contracts (or extend or renew contracts) with entities that use covered telecommunications equipment or services as described in section 889 of the 2019 National Defense Authorization Act. This prohibition applies even if the contract is not intended to procure or obtain, any equipment, system, or service that uses covered telecommunications equipment or services.
Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-40 Agenda Item #7.8:
D.4 DEPARTMENT OF THE INTERIOR STANDARD AWARD TERMS
AND CONDITIONS
The Department of the Interior (DOI) Standard Award Terms and Conditions found at https://www.doi.gov/sites/doi.gov/files/uploads/doi-standard-award-terms-and-conditionseffective-december-2-2019-revised-june-19-2020.pdf are hereby incorporated by reference as though set forth in full text. These terms and conditions are in addition to the assurances and certifications made as part of the award and terms, conditions or restrictions reflected on this Agreement. Recipient acceptance of this Agreement carries with it the responsibility to be aware of and comply with all DOI terms and conditions applicable to this Agreement. The Recipient is responsible for ensuring their subrecipients and contractors are aware of and comply with applicable statutes, regulations, and agency requirements.
Recipient and subrecipient failure to comply with the general terms and conditions outlined below and those directly reflected in this Agreement can result in the DOI taking one or more of remedies described in 2 Code of Federal Regulations parts 200.339 and 200.340. The DOI will notify the Recipient whenever terms and conditions are updated to accommodate instances in the passage of a regulation or statute that requires compliance. Also, DOI will inform the Recipient of revised terms and conditions in the action of an Agreement amendment adding additional Federal funds. Reclamation will make such changes by issuing a Notice of Award amendment that describes the change and provides the effective date. Revised terms and conditions do not apply to the Recipient’s expenditures of funds or activities the Recipient carries out before the effective date of the revised DOI terms and conditions.
Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) D-41 Agenda Item #7.8:
Sub-Award Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) E-1 Exhibit E
Performance Report Templates
Agenda Item #7.8:
Sonoma Marin Drought Resiliency Program
Reporting Period Start
Date
Reporting Period End
Date Reporting Type
Partner Doc
Submission Due
Date
4/1/2022 2/15/2024 Pre-Award 4/10/2024
2/16/2024 3/31/2024 Quarterly 4/10/2024
4/1/2024 6/30/2024 Quarterly 7/10/2024
7/1/2024 9/30/2024 Quarterly 10/10/2024
10/1/2024 12/31/2024 Quarterly 1/10/2025
1/1/2025 3/31/2025 Quarterly 4/10/2025
4/1/2025 6/30/2025 Quarterly 7/10/2025
7/1/2025 9/30/2025 Quarterly 10/10/2025
10/1/2025 12/31/2025 Quarterly 1/10/2026
1/1/2026 3/31/2026 Quarterly 4/10/2026
4/1/2026 6/30/2026 Quarterly 7/10/2026
7/1/2026 9/30/2026 Quarterly 10/10/2026
4/1/2022 9/30/2026 Final Report 11/14/2026
Reporting Periods
Sub-Award Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) E-2 Agenda Item #7.8:
Sonoma‐Marin Drought Resiliency Program
Quarterly Reporting Template
1. Subrecipient Organization:
2. Reporting Period Beginning and End Date:
3. Narrative of Activities Performed during Reporting Period:
A) Develop Marketing Materials (SCWA will complete this section)
1. Accomplishments this period:
i. Please include quantified accomplishments and a computation of costs for award and pre‐ award activities (for example, related to units of accomplishment) if that information will be useful.
(Example: Updated marketing materials to include increased rebate amount.) ii. The reasons why established goals were not met, if appropriate. iii. Additional pertinent information including, when appropriate, analysis and explanation of cost overruns or high unit costs.
2. Significant Developments (if any):
i. Problems, delays, or adverse conditions which will materially impair the ability to meet the objective of the agreement. Please include a statement of the action taken, or contemplated, and any assistance needed to resolve the situation.
ii. Favorable developments which enable meeting time schedules and objectives sooner or at less cost than anticipated or producing more or different beneficial results than originally planned.
B) Update Public Outreach Materials Including Rebate Forms and Requirements (SCWA will complete this section)
1. Accomplishments this period:
i. Please include quantified accomplishments and a computation of costs for award and pre‐ award activities (for example, related to units of accomplishment) if that information will be useful.
(Example: Updated website and rebate form with increased dollar amount.) ii. The reasons why established goals were not met, if appropriate.
Sub-Award Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) E-3 Agenda Item #7.8:
Sonoma‐Marin Drought Resiliency Program
Quarterly Reporting Template
iii. Additional pertinent information including, when appropriate, analysis and explanation of cost overruns or high unit costs.
2. Significant Developments (if any):
i. Problems, delays, or adverse conditions which will materially impair the ability to meet the objective of the agreement. Please include a statement of the action taken, or contemplated, and any assistance needed to resolve the situation.
ii. Favorable developments which enable meeting time schedules and objectives sooner or at less cost than anticipated or producing more or different beneficial results than originally planned.
C) Turf Removal
1. Accomplishments this period:
i. Please include quantified accomplishments and a computation of costs for award and pre‐ award activities (for example, related to units of accomplishment) if that information will be useful.
(Look at Reporting Spreadsheet, Partner Summary Tab and type the total amount of rebates issued during period and total dollar amount. i.e. Issued 50 turf rebates for 50,000 sqft. of turf removed, at a $1.00 per sqft. totaling $50,000.) ii. The reasons why established goals were not met, if appropriate. iii. Additional pertinent information including, when appropriate, analysis and explanation of cost overruns or high unit costs.
2. Significant Developments (if any):
i. Problems, delays, or adverse conditions which will materially impair the ability to meet the objective of the agreement. Please include a statement of the action taken, or contemplated, and any assistance needed to resolve the situation.
ii. Favorable developments which enable meeting time schedules and objectives sooner or at less cost than anticipated or producing more or different beneficial results than originally planned.
Sub-Award Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) E-4 Agenda Item #7.8:
Sonoma‐Marin Drought Resiliency Program
Quarterly Reporting Template
D) High Efficiency Washer
1. Accomplishments this Period:
i. Please include quantified accomplishments and a computation of costs for award and pre‐ award activities (for example, related to units of accomplishment) if that information will be useful.
(Look at Reporting Spreadsheet, Partner Summary Tab and type the total amount of rebates issued during period and total dollar amount. i.e: Issued 30 high efficiency clothes washer rebates at $75.00 per rebate for a total of $2,250.)
ii. The reasons why established goals were not met, if appropriate. iii. Additional pertinent information including, when appropriate, analysis and explanation of cost overruns or high unit costs.
2. Significant Developments (if any):
i. Problems, delays, or adverse conditions which will materially impair the ability to meet the objective of the agreement. Please include a statement of the action taken, or contemplated, and any assistance needed to resolve the situation.
ii. Favorable developments which enable meeting time schedules and objectives sooner or at less cost than anticipated or producing more or different beneficial results than originally planned.
E) High Efficiency Toilet (HET)
1. Accomplishments this period:
i. Please include quantified accomplishments and a computation of costs for award and pre‐ award activities (for example, related to units of accomplishment) if that information will be useful.
(Look at Reporting Spreadsheet, Partner Summary Tab and type the total amount of rebates issued during period and total dollar amount. i.e: Issued 10 high efficiency toilet rebates at $100 per unit, for a total of $1000.)
ii. The reasons why established goals were not met, if appropriate. iii. Additional pertinent information including, when appropriate, analysis and explanation of cost overruns or high unit costs.
2. Significant Developments (if any):
Sub-Award Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) E-5 Agenda Item #7.8:
Sonoma‐Marin Drought Resiliency Program
Quarterly Reporting Template
i. Problems, delays, or adverse conditions which will materially impair the ability to meet the objective of the agreement. Please include a statement of the action taken, or contemplated, and any assistance needed to resolve the situation.
ii. Favorable developments which enable meeting time schedules and objectives sooner or at less cost than anticipated or producing more or different beneficial results than originally planned.
F) Smart Irrigation Controller
1. Accomplishments this period:
i. Please include quantified accomplishments and a computation of costs for award and pre‐ award activities (for example, related to units of accomplishment) if that information will be useful.
(Look at Reporting Spreadsheet, Partner Summary Tab and type the total amount of rebates issued during period and total dollar amount. i.e: Issued 10 rebates at $100 per unit, for a total of $1,000.)
ii. The reasons why established goals were not met, if appropriate. iii. Additional pertinent information including, when appropriate, analysis and explanation of cost overruns or high unit costs.
2. Significant Developments (if any):
i. Problems, delays, or adverse conditions which will materially impair the ability to meet the objective of the agreement. Please include a statement of the action taken, or contemplated, and any assistance needed to resolve the situation.
ii. Favorable developments which enable meeting time schedules and objectives sooner or at less cost than anticipated or producing more or different beneficial results than originally planned.
G) Flume Smart Meter
1. Accomplishments this period:
i. Please include quantified accomplishments and a computation of costs for award and pre‐ award activities (for example, related to units of accomplishment) if that information will be useful.
Sub-Award Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) E-6 Agenda Item #7.8:
Sonoma‐Marin Drought Resiliency Program
Quarterly Reporting Template
(Look at Reporting Spreadsheet, Partner Summary Tab and type the total amount of rebates issued during period and total dollar amount. i.e: Issued 10 rebates for $100 per unit, for a total of $1,000.)
ii. The reasons why established goals were not met, if appropriate. iii. Additional pertinent information including, when appropriate, analysis and explanation of cost overruns or high unit costs.
2. Significant Developments (if any):
i. Problems, delays, or adverse conditions which will materially impair the ability to meet the objective of the agreement. Please include a statement of the action taken, or contemplated, and any assistance needed to resolve the situation.
ii. Favorable developments which enable meeting time schedules and objectives sooner or at less cost than anticipated or producing more or different beneficial results than originally planned.
H) Direct Install HET, aerators, and showerheads
1. Accomplishments this period:
i. Please include quantified accomplishments and a computation of costs for award and pre‐ award activities (for example, related to units of accomplishment) if that information will be useful.
(Look at Reporting Spreadsheet, Partner Summary Tab and type the total amount of rebates issued during period and total dollar amount. i.e: Provided 10 households with direct install of high efficiency fixtures, including # of HET, # of aerators, and/or # of showerheads for a total of X dollars.)
ii. The reasons why established goals were not met, if appropriate. iii. Additional pertinent information including, when appropriate, analysis and explanation of cost overruns or high unit costs.
2. Significant Developments (if any):
i. Problems, delays, or adverse conditions which will materially impair the ability to meet the objective of the agreement. Please include a statement of the action taken, or contemplated, and any assistance needed to resolve the situation.
Sub-Award Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) E-7 Agenda Item #7.8:
Sonoma‐Marin Drought Resiliency Program
Quarterly Reporting Template
ii. Favorable developments which enable meeting time schedules and objectives sooner or at less cost than anticipated or producing more or different beneficial results than originally planned.
Sub-Award Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) E-8 Agenda Item #7.8:
Quarterly Financial Reporting Summary
Partner Agency
Date Submitted:
Reporting Period:
Program Name Rebate
amount
Rebates this
period Total Eligible Estimated grant eligible amount
Estimated match
eligible amount
Turf Removal $ - - $ - $ - $ -
High Efficiency Clothes Washer Replacement $ - - $ - $ - $ - High Efficiency Toilet Replacement $ - - $ - $ - $ -
Smart Irrigation Controllers $ - - $ - $ - $ -
Flume Smart Meter $ - - $ - $ - $ -
Direct Install Program $ - - $ - $ - $ -
Total Rebates this period:
Total Estimated grant eligible amount :
Total Estimated match eligible amount :
TOTAL :
$ -
$ -
Rebate Summary
-
$ -
Reports are due within 10 days of quarter end
Please submit all reports and backup documentation to [email protected] Sub-Award Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) E-9 Agenda Item #7.8:
SF-425 Reporting Summary
Partner Agency
Date Submitted:
Reporting Period:
Federal Cash (To report multiple grants, also use FFR attachment):
a. Cash Receipts Enter the cumulative total reimbursment received from SCWA as of the reporting period end date b. Cash Disbursements Enter the cumulative amount of grant eligible expenses incurred as of the reporting period end date. c. Cash on Hand (line a minus b) Total payment request this period: $ - Federal Expenditures and Unobligated Balance:
d. Total Federal funds authorized Total partner grant eligible budget: $ - e. Federal share of expenditures Total partner grant eligible expenses as of reporting period end date:
f. Federal share of unliquidated obligations Value of unpaid service contracts: n/a g. Total Federal share (sum of lines e and f) $ -
h. Unobligated balance of Federal Funds (line d minus g) Federal funds remaining $ - Recipient Share:
i. Total recipient share required Total partner match eligible budget: $ - j. Recipient share of expenditures Total partner match eligible expenses as of reporting period end date:
k. Remaining recipient share to be provided (line i minus j) Match funds remaining: $ - TOTAL REQUESTED THIS PERIOD: $ -
Summary
Sub-Award Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) E-10 Agenda Item #7.8:
Turf Removal Rebate Reporting Spreadsheet
Participating Agency: Partner Agency $ -
Date Submitted: -
Reporting Period: -
Date Type of Site Address Total sqft
converted
Rebate count
(Total Sqft
rebated)
Total Actual
Rebated amt ($)
Actual Cost
per Rebate
Eligible cost
per rebate Total Eligible
Estimated Grant
Eligible Amount
Estimated Match
Eligible Amount
Max Eligible Cost Per Rebate:
-$ -$ $ - $ - $ -
-$ -$ $ - $ - $ -
-$ -$ $ - $ - $ -
-$ -$ $ - $ - $ -
-$ -$ $ - $ - $ -
-$ -$ $ - $ - $ -
-$ -$ $ - $ - $ -
-$ -$ $ - $ - $ -
-$ -$ $ - $ - $ -
-$ $ - $ - $ - $ -
-$ -$ $ - $ - $ -
$ - -$ $ - $ - $ -
-$ -$ $ - $ - $ -
-$ -$ $ - $ - $ -
-$ -$ $ - $ - $ -
-$ -$ $ - $ - $ -
-$ -$ $ - $ - $ -
-$ -$ $ - $ - $ -
-$ -$ $ - $ - $ -
-$ -$ $ - $ - $ -
-$ -$ $ - $ - $ -
-$ -$ $ - $ - $ -
-$ -$ $ - $ - $ -
-$ -$ $ - $ - $ -
-$ -$ $ - $ - $ -
TOTALS: - - $ - - - $ - $ - $ -
Sub-Award Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) E-11 Agenda Item #7.8:
High Efficiency Clothes Washer Replacement Rebate Reporting Spreadsheet Participating Agency: Partner Agency $ -
Date Submitted: -
Dates Covered: -
Date Address Rebate count
Total Actual
Rebated amt ($)
Actual Cost
per Rebate
Eligible cost
per rebate Total Eligible
Estimated Grant
Eligible Amount
Estimated Match
Eligible Amount
Max Eligible Cost Per Rebate:
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
TOTALS: - $ - - - $ - $ - $ -
Sub-Award Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) E-12 Agenda Item #7.8:
High Efficiency Toilet Replacement Rebate Reporting Spreadsheet Participating Agency: Partner Agency $ -
Date Submitted: -
Dates Covered: -
Date Address Rebate count
Total Actual
Rebated amt ($)
Actual Cost
per Rebate
Eligible cost
per rebate Total Eligible
Estimated Grant
Eligible Amount
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Eligible Amount
Max Eligible Cost Per Rebate:
$ - $ - $ - $ - $ -
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TOTALS: - $ - - - $ - $ - $ -
Sub-Award Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) E-13 Agenda Item #7.8:
Smart Irrigation Controller Rebate Reporting Spreadsheet Participating Agency: Partner Agency $ -
Date Submitted: -
Dates Covered: -
Date Type of Site Address Rebate count
Total Actual
Rebated amt ($)
Actual Cost
per Rebate
Eligible cost
per rebate Total Eligible
Estimated Grant
Eligible Amount
Estimated Match
Eligible Amount
Max Eligible Cost Per Rebate:
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TOTALS: - $ - - - $ - $ - $ -
Sub-Award Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) E-14 Agenda Item #7.8:
Flume Smart Meter Rebate Reporting Spreadsheet
Participating Agency: Partner Agency $ -
Date Submitted: -
Dates Covered: -
Date Address Rebate count
Total Actual
Rebated amt ($)
Actual Cost
per Rebate
Eligible cost
per rebate Total Eligible
Estimated Grant
Eligible Amount
Estimated Match
Eligible Amount
Max Eligible Cost Per Rebate:
$ - $ - $ - $ - $ -
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TOTALS: - $ - - - $ - $ - $ -
Sub-Award Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) E-15 Agenda Item #7.8:
Direct Install Program Reporting Spreadsheet
Participating Agency: Partner Agency $ -
Date Submitted: -
Dates Covered: -
Date Address Plumber Invoice No.
#
Toilets
Installed
# Shower
heads
Installed
#
Faucet
Aerator
Installed
# Kitchen
Faucet
Aerator
Installed
Package
Count
Total Actual
Package cost ($)
Actual Cost per
Package
Eligible cost per
Package Total Eligible
Estimated Grant
Eligible Amount
Estimated Match
Eligible Amount
Max Eligible Cost Per Installation Package:
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$ - $ - $ - $ - $ -
TOTALS: - - - - - $ - - - $ - $ - $ -
Sub-Award Agreement for Sonoma-Marin Drought Resiliency Program (City of Sonoma) E-16 Agenda Item #7.8:
City of Sonoma
Agenda Item Summary
Meeting: City Council - 14 Oct 2024
Department
Administration
Staff Contact
Rebekah Barr, MMC, City Clerk
Agenda Item Title
Appointment of Youth Members to the Climate Action Commission, Cultural & Fine Arts Commission, Design Review & Historic Preservation Commission, Parks, Recreation & Open Space Commission, and Traffic Safety Committee
Summary
Each of the City's Group A Commissions has a Youth Member, that serves a two-year term. The most recent term ended on September 30, 2024. This item will address the vacancies on the Climate Action Commission, Cultural & Fine Arts Commission, Design Review & Historic Preservation Commission, Parks, Recreation & Open Space Commission, and Traffic Safety Committee.
These positions are appointed by a majority vote of the Council.
Cultural & Fine Arts Commission - Three applications were received for the CFAC.
Design Review & Historic Preservation Commission - One application was received for the DRHPC.
Parks, Recreation & Open Space Commission - One application was received for PROS; Mr.
Mellinger is the incumbent for this position.
Traffic Safety Committee – One application was received with TSC as a second commission of interest.
Agenda Item #9.1:
Climate Action Commission
Two applications were received with CAC as a second commission of interest.
Recommended Council Action
Appoint one Youth Member to the Climate Action Commission, Cultural & Fine Arts Commission, Design Review & Historic Preservation Commission, Parks, Recreation & Open Space Commission, and Traffic Safety Committee by majority vote of the City Council.
Alternative Actions
Council discretion.
Financial Impact
There is no financial impact resulting from this action.
Environmental Review Status
Environmental Impact Report
Negative Declaration
Exempt
Not Applicable
Approved/Certified
No Action Required
Action Requested
Attachments
Youth Applications Received
Agenda Item #9.1:
THIS DOCUMENT AND ALL ATTACHMENTS ARE AVAILABLE FOR PUBLIC INSPECTION City of Sonoma
COMMISSION APPLICATION
Received Date: September 2, 2024
Application Type: The Cultural and Fine Arts Commission Other Interest: no
CA-24-26
NAME: Margaret (Maggie) Brown
ADDRESS:
PHONE:
EMAIL ADDRESS:
ARE YOU APPLYING FOR A
YOUTH POSITION?
Yes
EDUCATIONAL BACKGROUND: Senior at Sonoma Valley High School COMMUNITY INVOLVEMENT: The Sonoma Community Center
GENERAL QUESTIONS:
Have you ever attended a meeting of the Commission to which you are applying? If so, how many? Yes I have attended one meeting
What is your understanding of the role and responsibility of this Commission? My understanding of the role and responsibility of this commission is to enrich and promote culture and the arts in Sonoma
What would be your goal(s) as a Commissioner?
To promote the arts and culture in Sonoma from a student point of view What do you feel you could contribute to see these goals realized? I can contribute my opinion as a student and an artist
Have you previously served, or do you currently serve, on a Sonoma Commission or Committee? If yes, which one(s) and for what period of time?
no
I certify that all of the information contained in my responses to the questions on this application is true and accurate to the best of my knowledge. I further agree that, by checking the box below and submitting this application, online or otherwise, I am affixing my digital signature to this form as of the date submitted. I also agree that if appointed, I will serve on the Commission/Committee for which I have submitted this application.
☒ I AGREE
Margaret Brown September 2, 2024
Agenda Item #9.1:
THIS DOCUMENT AND ALL ATTACHMENTS ARE AVAILABLE FOR PUBLIC INSPECTION City of Sonoma
COMMISSION APPLICATION
Received Date: September 19, 2024
Application Type: Cultural and Fine Arts Commission
Other Interest: Climate Action Commission
CA-24-29
NAME: Alina Castro
ADDRESS:
PHONE:
EMAIL ADDRESS:
ARE YOU APPLYING FOR A
YOUTH POSITION?
Yes
EDUCATIONAL BACKGROUND: In twelfth grade at Sonoma Valley High School.
OTHER RELEVANT EXPERIENCE: I am a student artist myself and was a finalist in the Student Creative Artist Award competition. I also have experience with public speaking due to my participation in mock trial and have been featured on the Sonoma Index Tribune for winning a second state award. Because of my public speaking skills, I was able to participate in a National Mock Trial competition named Gladiator. Additionally, I am an Enviroleader with the Sonoma Ecology Center who strives to continue my impact on the environment and Sonoma community.
COMMUNITY INVOLVEMENT: I’m a youth promoter for the latino community with the nonprofit organization Latino Service Providers, I am a certified community health worker by the same nonprofit in partnership with University of San Francisco, I have been a volunteer with the Redwood Empire Food Bank for almost four years now, I’m also a part of the Pipeline Pods Program with the Sonoma County Bar Association, and have also been a representative of the Sonoma Valley Mock Trial team whilst presenting to the Sonoma Rotary Club.
GENERAL QUESTIONS:
Have you ever attended a meeting of the Commission to which you are applying? If so, how many? I have never attended a meeting of the Cultural and Fine Arts Commision, however I would like to in the near future.
What is your understanding of the role and responsibility of this Commission? I understand that this commission endeavors to advance the Sonoma County’s art community through discussions, ideas, and cultural art programs. These programs are responsible for many of the artistic aspects of our city and for the staple events held in Sonoma. I commend this commission for their hard work and dedication to upholding the importance of art and education on culture.
What would be your goal(s) as a Commissioner?
Agenda Item #9.1:
THIS DOCUMENT AND ALL ATTACHMENTS ARE AVAILABLE FOR PUBLIC INSPECTION Personally, as a commissioner my first goal would be to represent my peers and other student's voices in Sonoma County concerning culture, the arts, or the environment. I would do this through voicing my ideas on ways to connect the commission to the youth through art events such as fairs, and other educational and environmentally conscious experiences. Another goal of mine would be to contribute to the discussions and plans of the already established committee to provide a new perspective.
What do you feel you could contribute to see these goals realized? Through accomplishing these goals, I would have a significant impact on youth such as myself and unify our Sonoma community further. Additionally, these goals would actualize themselves in the lives of students and other members who hope to learn and better understand the importance of uplifting artistry and reconnecting with culture. These goals would also promote the education of many and make art more accessible to everyone in Sonoma.
Have you previously served, or do you currently serve, on a Sonoma Commission or Committee? If yes, which one(s) and for what period of time?
No
Is there anything else you would like us to consider when reviewing your application? I am extremely motivated to serve my community and peers by representing their ideas on the Cultural and Fine Arts Commission or the Climate Action Commission.
I certify that all of the information contained in my responses to the questions on this application is true and accurate to the best of my knowledge. I further agree that, by checking the box below and submitting this application, online or otherwise, I am affixing my digital signature to this form as of the date submitted. I also agree that if appointed, I will serve on the Commission/Committee for which I have submitted this application.
☒ I AGREE
Alina Marie Castro Gonzalez September 19, 2024
Agenda Item #9.1:
ALINA CASTRO
Sonoma, CA | |
_____________________________________________________________________________________ JOB OBJECTIVE: Enviroleader
EDUCATION:
High School student
Sonoma Valley High School, Sonoma, CA August 2021 – Present Anticipated Date of Graduation - June 2025
GPA – 4.22 Weighted
● President of Art Club (2021-2023)
● Sonoma Valley Regional Mock Trial Champion (2022-2024) ● Constitutional Rights Foundation Award for "Outstanding Prosecution Witness" (2022) ● Student of the Semester (2021)
● AVID Student of the Year (2024)
● Teach Democracy "Outstanding Defense Attorney" (2024) ● Certificate of District Recognition (2024)
● AP Scholar with Honor (2024)
● Youth Promoter with Latino Service Providers (2024-2025) ● Community Health Worker with Latino Service Providers and University of San Francisco (2024) ● Link Crew Leader (2024-2025)
● Sonoma County Student Artist Competition Finalist (2024) ● Competitor in National Mock Trial Competition “Gladiator” (2024) ● Enviroleader (2024)
● Pipeline Pods Program with The Sonoma County Bar Association (2024) ● AP Courses in English, History, and Science
● SRJC Dual Enrollment Student
SKILLS:
● Leadership and Team Building
● Excellent Communication
● Public Speaking
● Interactive Teaching
● Results Oriented
● Attention to Detail
WORK EXPERIENCE:
Elementary Math Tutor
Private Classes, Sonoma, CA June 2021 - July 2023
● Aided the academic development of five elementary students ● Provided interactive material to students that advanced their mathematical skills Spanish Tutor
Private Classes, Sonoma, CA September 2021 - May
2022
● Raised three students’ grades by a significant amount ● Effective teaching and constant meetings led to three students progressing to more advanced Spanish classes
Agenda Item #9.1:
VOLUNTEER EXPERIENCE:
Food Distributor
Redwood Food Bank, Santa Rosa and Sonoma, CA February 2021 - Present ● Distributed food weekly at school sites and churches
● Assisted with the organization of new volunteering sites Agenda Item #9.1:
THIS DOCUMENT AND ALL ATTACHMENTS ARE AVAILABLE FOR PUBLIC INSPECTION City of Sonoma
COMMISSION APPLICATION
Received Date: September 16, 2024
Application Type: Parks, Recreation, and Open Space Commission CA-24-28
NAME: Jared Mellinger
ADDRESS:
PHONE:
ALTERNATIVE PHONE:
EMAIL ADDRESS:
ARE YOU APPLYING FOR A
YOUTH POSITION?
Yes
EDUCATIONAL BACKGROUND: I have attended public schools in Sonoma Valley. I went to Prestwood and Adele Harrison. I am currently a Senior attending Sonoma Valley High and have well above a 4.0 GPA. I also take 2 college level courses through UC Scout that are not offered at SVHS. At SVHS I am a member and play on both the Varsity Water Polo and Varsity Golf team, in addition I am part of Model UN, CSF, Leadership, Founder of the Chess Club and many other clubs.
OTHER RELEVANT EXPERIENCE: I have been on the Sonoma City Council PROS commission for over a year and want to continue to serve on the commission. With the SVHS Model UN Club, I have attended Model United Nations at Northwest University and Berkeley University, learning more about government. I was selected as 1 of 5 attendees from SVHS to attend the highly respected American Legion Boys and Girls State legion program held in Sacramento.
COMMUNITY INVOLVEMENT: I have been involved with different charitable organizations and volunteering. I have volunteered for causes, including FISH; the fires of 2017; COVID Support; the Red and White Ball; the Sonoma Valley Authors Festival; and more. I am the president of the Chess Club at SVHS and part of Link Crew. Additionally, I have tutored other students in Mathematics for over 80 hours.
GENERAL QUESTIONS:
Have you ever attended a meeting of the Commission to which you are applying? If so, how many? Yes, I have attended 8 meetings of this commission, as I was a member.
What is your understanding of the role and responsibility of this Commission? The role and responsibilities of the Commission are to preserve and enhance the parks, recreational facilities, and open space of Sonoma. In the meetings, we regularly look at tree removal requests. This ideally includes visiting the tree location before the meeting. The responsibilities are also more general items, like the renovations at Olsen Park, the new trash cans at the square, and signs at the Overlook trail. Ultimately, as a Agenda Item #9.1:
THIS DOCUMENT AND ALL ATTACHMENTS ARE AVAILABLE FOR PUBLIC INSPECTION part of the Commission, my responsibility is to help improve Sonoma’s outdoor spaces through insight and actions.
What would be your goal(s) as a Commissioner?
My goal as a commissioner is to help improve the parks, recreation, and outdoor spaces in Sonoma. Sonoma is our beautiful city, and I want to ensure that the parks stay clean, are protect for the enjoyment and utilization of all public citizens and continue to maintain the special Sonoma character of our outdoor spaces.
What do you feel you could contribute to see these goals realized? I am a 4.0 student and have succeeded in many AP courses. The critical thinking skills gained from these courses will help me contribute a level-headed approach and perspective on issues and how to make them better. Recently, the Commission gained 3 new members, with the required number rising, so I also hope to provide some insight and aid to them.
Have you previously served, or do you currently serve, on a Sonoma Commission or Committee? If yes, which one(s) and for what period of time?
Yes, I currently serve on the PROS commission. I am reapplying for this position. I have worked on it for over a year.
I certify that all of the information contained in my responses to the questions on this application is true and accurate to the best of my knowledge. I further agree that, by checking the box below and submitting this application, online or otherwise, I am affixing my digital signature to this form as of the date submitted. I also agree that if appointed, I will serve on the Commission/Committee for which I have submitted this application.
☒ I AGREE
Jared Mellinger September 16, 2024
Agenda Item #9.1:
THIS DOCUMENT AND ALL ATTACHMENTS ARE AVAILABLE FOR PUBLIC INSPECTION City of Sonoma
COMMISSION APPLICATION
Received Date: August 27, 2024
Application Type: Cultural and Fine Arts Commission
Other Interest: Traffic Safety Commission
CA-24-25
NAME: Vincenzo Mansfield
ADDRESS:
PHONE:
ALTERNATIVE PHONE:
EMAIL ADDRESS:
ARE YOU APPLYING FOR A
YOUTH POSITION?
Yes
EDUCATIONAL BACKGROUND: Currently enrolled in Highschool at Sonoma Valley High School OTHER RELEVANT EXPERIENCE: I was Secretary for the SVHS Gay Straight Alliance club, making students feel safe around campus my freshmen year, involved in the SVHS Peer Leaders Uniting Students, Student in SVHS Leadership Class, involved in many art programs at SVHS
COMMUNITY INVOLVEMENT: Volunteered with the Teens Center of Sonoma Valley, Volunteer at the Faith Lutheran Church’s Annual Crafts Fair
GENERAL QUESTIONS:
Have you ever attended a meeting of the Commission to which you are applying? If so, how many? None
What is your understanding of the role and responsibility of this Commission? I can commit to scheduled meetings and help bring the community together via Art snd Culture What would be your goal(s) as a Commissioner?
To bring the entire Sonoma Valley Community togther via art and Culture What do you feel you could contribute to see these goals realized? As a student in SVHS’s Leadership class I can attempt to get the highschool involved in some art projects to bring the community together
Have you previously served, or do you currently serve, on a Sonoma Commission or Committee? If yes, which one(s) and for what period of time?
No
Is there anything else you would like us to consider when reviewing your application? Thank you for the time reviewing my application
Agenda Item #9.1:
THIS DOCUMENT AND ALL ATTACHMENTS ARE AVAILABLE FOR PUBLIC INSPECTION I certify that all of the information contained in my responses to the questions on this application is true and accurate to the best of my knowledge. I further agree that, by checking the box below and submitting this application, online or otherwise, I am affixing my digital signature to this form as of the date submitted. I also agree that if appointed, I will serve on the Commission/Committee for which I have submitted this application.
☒ I AGREE
Vincenzo Richard Ramirez Mansfield August 27, 2024
Agenda Item #9.1:
THIS DOCUMENT AND ALL ATTACHMENTS ARE AVAILABLE FOR PUBLIC INSPECTION City of Sonoma
COMMISSION APPLICATION
Received Date: September 17, 2024
Application Type: Design Review and Historic Preservation Commission
Other Interest: Climate change commission
CA-24-27
NAME: Mikey Wangbickler
ADDRESS:
PHONE:
EMAIL ADDRESS:
ARE YOU APPLYING FOR A
YOUTH POSITION?
Yes
EDUCATIONAL BACKGROUND: High School, Junior, still attending OTHER RELEVANT EXPERIENCE: Attended archeological field school in Illinois, run by the American center for archaeology.
COMMUNITY INVOLVEMENT: I have worked with the Sonoma valley garden park GENERAL QUESTIONS:
Have you ever attended a meeting of the Commission to which you are applying? If so, how many? No, but have attended three meetings for the community services and environment commission.
What is your understanding of the role and responsibility of this Commission? Its role is to preserve and better utilize the history and historic locations in the city of Sonoma.
What would be your goal(s) as a Commissioner?
I want to help bring a young a energetic voice to the historic commission, and add new ideas to the conversation.
What do you feel you could contribute to see these goals realized? I will regularly attend meetings, and actively participate during discussions.
Have you previously served, or do you currently serve, on a Sonoma Commission or Committee? If yes, which one(s) and for what period of time?
No
Is there anything else you would like us to consider when reviewing your application? No
I certify that all of the information contained in my responses to the questions on this application is true and accurate to the best of my knowledge. I further agree that, by checking the box below and submitting this application, online or otherwise, I am affixing my digital signature to this form as of Agenda Item #9.1:
THIS DOCUMENT AND ALL ATTACHMENTS ARE AVAILABLE FOR PUBLIC INSPECTION the date submitted. I also agree that if appointed, I will serve on the Commission/Committee for which I have submitted this application.
☒ I AGREE
Mikey Wangbickler September 17, 2024
Agenda Item #9.1:
Michael Wangbickler
Education
Sonoma Valley High School, Sonoma, California
● Sophomore
● 3.8333 GPA
● Enrolled in Honors English, AP World History, and AP Biology.
Experience
● Center for American Archeology, Summer 2023 and 2022
Excavated an archeological dig, conducted lab work, interacted with fellow peers
● Junior Enviroleaders, Summer 2021
Worked in the Garden Park, participated in group cooperation ● Garden helper, Summer 2023
Cleared black berries, deadheaded rose bushes, weeded backyard ● Enviroleader, Fall 2023
Worked as garden laborer doing any odd jobs required
Skills and Abilities
● Teamwork
● Adaptability
● Hard working
● Active listener
● Gardening experience
● Tool cleaning and maintenance
References
● Rebecca Fitch:
● Gavin Koler:
Sonoma, California
95476
Agenda Item #9.1:
City of Sonoma
Agenda Item Summary
Meeting: City Council - 14 Oct 2024
Department
Public Works
Staff Contact
Michael Berger, Public Works Director
Agenda Item Title
Presentation Regarding the City of Sonoma's Approach for Repair of Existing Sidewalks and Construction of New Sidewalks
Summary
The City’s sidewalk network is a vital component of the public infrastructure. Sidewalks serve as highways for pedestrian movement and provide access and connectivity to schools, stores, bus stops, and parks. They are in themselves a recreational facility, used for leisurely walks and exercise runs. Walking reduces congestion and pollution and promotes friendly neighborhoods and healthy lifestyles. Just as the City’s street network supports the movement and circulation of motorists and cyclists, a maintained and connected sidewalk network encourages walking as a mode of travel and by making it more attractive.
The City has two programs to ensure repair of existing sidewalks and to construct new sidewalks to expand the City’s sidewalk network. Together, these programs support 2020 General Plan Policy No. 1.2 to eliminate gaps and obstructions in the City’s sidewalk system.
Public feedback received thus far during the 2045 General Plan Update process confirms that a walkable community is an important priority. Therefore, the City’s existing sidewalk repair and new sidewalk construction programs will remain an important tool to continually improve the condition and safety of existing sidewalks and improve connectivity and walkability by eliminating sidewalk gaps.
Staff will soon mail notices notifying selected property owners of their responsibility to repair identified sidewalk hazards, as further described below. Since property owners are typically surprised to learn that sidewalk repair is their responsibility, this report item is an opportunity to review with the City Council and the public, the City’s approach to eliminating hazards in existing sidewalks as well as approach for eliminating gaps in the sidewalk network.
Sidewalk Repair
The California Streets and Highway Code 5610 et seq. requires that owners of lots, or portions of lots, fronting any portion of a public street shall maintain any sidewalk in such conditions that the sidewalk will not endanger people or property and will not interfere with the public’s use of those areas. Like many other cities throughout the State, the City of Sonoma has codified this property owner’s responsibility to maintain sidewalks in their frontage in the City’s Municipal Code (Chapter 12.12). To help ensure the City’s sidewalks are open and accessible to all people, the City Council also adopted a Sidewalk Trip Hazard Repair Policy in October 2013.
Together, the Municipal Code and Policy provide a framework under which the City and property owners have a shared role in repairing sidewalks.
The City routinely inspects sidewalks to identify defects that could pose a hazard to pedestrians.
The most common defect is a vertical deflection between adjacent sidewalk sections which could present a potential trip and fall hazard. For deflections which are less than 1.75 inches high, the City repairs these via a saw cut method to “shave” the vertical deflection to a gradual Agenda Item #9.2:
slope. Over the years, the City has repaired many hundreds of such trip hazards. For larger deflections, the City provides a written notice to the property owner of record. The letter informs the owner of the trip hazard, requirement to repair by replacing the identified sidewalk segment with a new sidewalk, a copy of the repair process and City policy, and includes an offer to share in the repair cost (50% up to a cap of $1,000). The property owner has 30 days to make the repair, after which the owner may submit for the City’s cost share reimbursement. If the owner does not complete the repair, the City makes the repair and then pursues payment via an assessment lien.
The Sidewalk Trip Hazard Repair Policy is available on the City’s website, but property owners are typically surprised when they are notified of a sidewalk defect and their responsibility to repair it as noted above. Another issue concerns tree roots, which are the most common reason that segments of sidewalk become separated to cause a trip hazard. In these situations, the City Arborist must assess the tree to determine if the affected root(s) can be shaved or removed without adversely impacting the health of the tree. If not, then other options must be considered to allow reconstruction of the affected sidewalk segment (e.g. re-routing the sidewalk, using alternative sidewalk material, or removing the tree).
New Sidewalk Construction
Since 1974 the City has had in place requirements for applicants constructing new buildings or improving existing buildings to construct new sidewalks along the property frontage if there is no existing sidewalk (Municipal Code Chapter 12.14). Also, any defects or substandard conditions in existing sidewalks must be corrected. This requirement applies for projects where the building permit valuation of one or more permits over any 24-month period exceeds $50,000. Certain types of projects (e.g. solar water heating, solar photovoltaic, and others) are exempted. In practice, projects with valuations from $50,000 to $250,000 were required to only repair defects in any existing sidewalks, while projects with permit valuations exceeding $250,000 were required to install new sidewalk if none existed. This was instituted to balance the cost of improvements against the need to reduce sidewalk network gaps. Under the Municipal Code, the Planning Commission may consider approving a variance if requested and the City Manager has the ability, but not obligation, to consider and approve a Deferred Improvement Agreement to defer installation of sidewalk until sometime after completion of the building project. Finally, in 2022 the City Council adopted Resolution No. 58-2022 which provides a mechanism for the City to provide some financial assistance for sidewalk improvements with a disproportionately high-cost relative to the permitted building project.
A typical concern from applicants regarding the new sidewalk construction requirement is that the valuation threshold becomes effectively lower each year as the amount is fixed and not indexed for inflation. Although the City has a mechanism to provide cost sharing assistance, it is infrequently used.
Proposed Changes
Staff proposes the following changes to improve the administration and implementation of the sidewalk repair and new sidewalk construction programs:
1. Develop informational brochures and fact sheets to inform property owners and applicants of the sidewalk requirements and financial assistance opportunities, and coordinate with the City’s Public Information Officer on additional outreach strategies.
Agenda Item #9.2:
2. Increase the required compliance timeframe for sidewalk repair from 30 calendar days to 90 calendar days to allow time for property owners to hire a licensed contractor and obtain required permit for the repair work.
3. Waive the encroachment permit fee and expedite review of encroachment permit applications for sidewalk repairs to help incentivize property owners to complete required repairs.
4. Update the Municipal Code to reflect current practice regarding building permit valuation triggers for sidewalk repair or new construction, and annually update the valuations per changes in the Consumer Price Index.
5. Affirm that “default” approach will be to not pursue Deferred Improvement Agreements for sidewalk improvements and that such agreements shall be used only for unusual circumstances.
Collectively, the proposed changes above will improve the implementation the sidewalk repair and construction programs by requiring repair of existing and construction of new sidewalks while minimizing the burden to property owners and building project applicants. Staff seeks feedback and direction from the City Council and will incorporate input and bring back proposed updates to the Trip Hazard Repair Policy and/or Municipal Code Chapters at a future City Council meeting for consideration.
Recommended Council Action
Provide direction on potential changes to City Policies and/or the Municipal Code concerning sidewalk repair and new construction requirements.
Alternative Actions
Council discretion.
Financial Impact
None at this time.
Environmental Review Status
Environmental Impact Report
Negative Declaration
Exempt
Not Applicable
Approved/Certified
No Action Required
Action Requested
Attachments
Sidewalk Program City Council 14Oct2024
Agenda Item #9.2:
10/10/2024
1 CITY OF SONOMA
SIDEWALK REPAIR AND
CONSTRUCTION
October 14, 2024
City of Sonoma – City Council 10/14/2024
SIDEWALK APPROACH
Repair Existing Sidewalks
• Repair trip hazards and other defects
• Remove obstructions
City of Sonoma – City Council 10/14/2024
Construct New Sidewalks
• Remove gaps
• Improve connectivity
1 2
Agenda Item #9.2:
10/10/2024
2 SIDEWALK REPAIR OVERVIEW
• Legal Basis
• California Streets and Highways Code Sections 5600 – 5630 • Sonoma Municipal Code Chapter 12.12
• Sonoma Trip Hazard Repair Policy City
• Intended to Repair:
• Trip Hazards
• Vertical deflection greater than 1/4 inch
• Horizontal gap greater than 3/4 inch
• Defects
• Holes greater than 1/2 inch deep
• Settlement/displacement resulting in slopes greater than 20% • Property Owner is Responsible
• City Offers Cost Sharing Assistance, 50% of cost up to $1,000 • City Repairs “Minor” Trip Hazards (less than 1.75 inch deflection) City of Sonoma – City Council 10/14/2024
SIDEWALK REPAIR PROCESS
City of Sonoma – City Council 10/14/2024
Trip Hazard
Identified
Under 1.75 Inches
City Repairs
1.75 Inches or Greater
Notice to Property Owner
Property Owner
Completes Repair
Property Owner Does OR Not Complete Repair
• Submits for Cost
Share Reimbursement
• City completes repair
• Places special assessment and
lien on property for payment
3 4
Agenda Item #9.2:
10/10/2024
3 ISSUES / CONSIDERATIONS
• Owners surprised repair is their duty
• Cost sharing program is not used often
• Tree root conflicts
• City Arborist assessment needed
• Shave or remove tree root
• Re-route sidewalk
• Consider alternative sidewalk material
• Remove tree
• Must comply with ADA
• 30-day repair timeframe is unrealistic
City of Sonoma – City Council 10/14/2024
NEW SIDEWALK CONSTRUCTION OVERVIEW
• Legal Basis
• Sonoma Municipal Code Chapter 12.14
• Requires Sidewalk if None Exists
• Building Permit Valuation Exceeds $50k in any 24-Month Period • Some types of projects exempted
• Planning Commission May Grant Variance
• Deferred Improvement Agreement Option
• If Sidewalk Exists
• Must improve to current standard and/or address hazards, if applicable • City Cost-Sharing Policy (Resolution No. 58-2022)
• Discretion to assistance for disproportionately high cost improvements • Long-standing practice:
• Require repair of existing sidewalk for $50k-$250k permit valuation • Require new sidewalk for permits over $250k
City of Sonoma – City Council 10/14/2024
5 6
Agenda Item #9.2:
10/10/2024
4 NEW SIDEWALK CONSTRUCTION PROCESS
City of Sonoma – City Council 10/14/2024
$50k Building
Permit Valuation
Exceeded
Construction Plans Include
New Sidewalk or Applicant
Pursues Deferred
Improvement Agreement (DIA)
Building Permit Issued
• Sidewalk constructed with
project; or
• DIA recorded and runs with
land, sidewalk constructed
within 90 days of notice by City
ISSUES / CONSIDERATIONS
• Building permit valuation trigger
• Not indexed for inflation, effectively becomes lower over time • Deferred Improvement Agreements
• Tracking and administration
• Could be long time before sidewalk constructed
City of Sonoma – City Council 10/14/2024
7 8
Agenda Item #9.2:
10/10/2024
5 City of Sonoma – City Council 10/14/2024 9
SUGGESTED PROGRAM CHANGES
Issue:
Property owners / applicants surprised by sidewalk repair and new construction requirements
Proposed Improvements:
• Develop informational brochure on sidewalk repair requirements, include with required notices.
• Develop Building Permit fact sheet.
• Make information more prominent on City web pages.
• Coordinate additional outreach with City PIO.
City of Sonoma – City Council 10/14/2024 10
SUGGESTED PROGRAM CHANGES
Issue:
30-day period to complete required sidewalk repairs is unrealistic.
Proposed Improvements:
• Allow up to 90 calendar days from date of first notice to complete required repairs.
9 10
Agenda Item #9.2:
10/10/2024
6 City of Sonoma – City Council 10/14/2024 11
SUGGESTED PROGRAM CHANGES
Issue:
Incentivize property owners to complete required repairs.
Proposed Improvements:
• Waive fee for encroachment permit applications for sidewalk repairs. • Expedite review of encroachment permit applications for sidewalk repairs. • If property owner doesn’t complete repair, ensure recovery of all City repair costs in the assessment to property owner
City of Sonoma – City Council 10/14/2024 12
SUGGESTED PROGRAM CHANGES
Issue:
Building permit trigger not indexed for inflation, effectively becomes lower over time
Proposed Improvements:
• Modify trigger:
• Increase trigger amount annually per change in CPI
• Update code to reflect current practice
• $50k to $250k: require repairing any defects or obstructions in existing sidewalk • Over $250k: require new sidewalk construction
11 12
Agenda Item #9.2:
10/10/2024
7 City of Sonoma – City Council 10/14/2024 13
SUGGESTED PROGRAM CHANGES
Issue:
Administration of Deferred Improvement Agreements (DIAs) can be time consuming and result in surprises to property owners.
• Staff resources needed to record and track agreements • Could be long time before improvements triggered
Proposed Improvement:
• City Manager already has discretion, but affirm that “default” approach will be to not pursue DIAs
• Use only for unusual circumstances
City of Sonoma – City Council 10/14/2024 14
NEXT STEPS
• City Council provides direction on proposed program changes • Staff develops proposed City Policy and/or Municipal Code revisions • City Council considers City Policy and/or Municipal Code changes at a future regular meeting
13 14
Agenda Item #9.2:
City of Sonoma
Agenda Item Summary
Meeting: City Council - 14 Oct 2024
Department
Public Works
Staff Contact
David J. Ruderman, City Attorney
Agenda Item Title
Introduce an Ordinance Establishing Administrative Remedies Procedure for Challenges to Fees, Charges, and Assessments
Summary
Assembly Bill 2257 (2024) (adding Government Code sections 53759.1 and 53759.2) provides the City with a new tool to defend against challenges to fees, charges, and assessments adopted under Proposition 218 (Cal. Const., Art. XIII D). If the City follows certain procedures, a ratepayer who fails to submit a written objection before the close of the Prop. 218 protest hearing will be barred from challenging the fee, charge, or assessment later on in court.
The California Constitution grants the City additional authority to enforce any local, police, sanitary, or other ordinance not in conflict with general laws, and to establish and operate public works upon conditions and under regulations that the City may prescribe. (Cal. Const., Art. XI, §§ 7, 9.) Based on this authority, the ordinance also requires objections be timely submitted to challenge fees or charges adopted under Article XIII C of the California Constitution, any assessment on real property, or the methodology used to develop any fee, charge, or assessment.
This ordinance establishes the process the City must follow to limit challenges in this way. The City must:
1. Make the proposed fee, charge, or assembly publicly available at least 45 days before the deadline for submitting written objections;
2. Post a written basis for the proposed fee, charge, or assessment on the City's website and include al ink to that website on public hearing notices regarding the proposed adoption of the proposed fee, charge, or assessment;
3. Mail the written basis for the proposed fee, charge, or assessment to ratepayers or property owners upon request;
4. Provide at least 45 days for ratepayers or property owners to submit written objections to the fee, charge, or assessment;
5. Respond in writing to any timely submitted objections with an explanation for keeping or changing the proposed fee, charge or assessment;
6. Present any timely submitted objections and responses thereto the City Council for its consideration, either before or during the public hearing on the proposed fee, charge or assessment;
7. Include on its public hearing notices a statement in bold-faced type of 12 points or larger:
Agenda Item #9.3:
a. that all written objections must be submitted to the City Clerk by the end of public comment period at the hearing, that a failure to timely object in writing bars any right to challenge that fee, charge, or assessment in court, and that any such action will be limited to issues identified in such objections; and b. All substantive and procedural requirements for submitting an objection to the proposed fee, charge, or assessment.
This Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines sections 21065 and 15061(b)(3) as the establishment of an administrative remedies procedure will not result in a reasonably foreseeable direct or indirect physical change in the environment.
Recommended Council Action
Introduce and waive first reading of ordinance establishing an administrative remedies procedure for challenges to fees, charges, and assessments.
Alternative Actions
1. Introduce a modified version of the Ordinance.
2. Do not introduce the ordinance and provide direction to staff.
3. Council's discretion.
Financial Impact
There are no financial impacts at this time.
Environmental Review Status
Environmental Impact Report
Negative Declaration
Exempt
Not Applicable
Approved/Certified
No Action Required
Action Requested
Attachments
Ordinance
Agenda Item #9.3:
1 City of Sonoma
ORDINANCE # _______
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SONOMA ADOPTING AN
ADMINISTRATIVE REMEDIES PROCEDURE FOR CHALLENGES TO FEES, CHARGES,
AND ASSESSMENTS
Be it ordained by the Council of the City of Sonoma:
Section 1. AUTHORITY. This Ordinance is authorized by the City’s authority under California Constitution, article XI, sections 7 (police power) and 9 (utility power) as well as Government Code section 53759.1.
Section 2. CODE AMENDMENT. Chapter 1.03 of Title 1 of the Sonoma Municipal Code is hereby amended to add a new section 1.03.030 to read as follows:
Section 1.03.030 — Exhaustion of administrative remedies for challenges to fees, charges, and assessments on real property.
A. Scope. The duty to exhaust administrative remedies imposed by this section extends to:
1. any fee or charge subject to articles XIII C or XIII D of the California Constitution,
2. any assessment on real property levied by the city, and
3. the methodology used to develop and levy such a fee, charge, or assessment.
B. “Hearing” as used in this section means the hearing referenced in paragraph 4 of subsection D of this section.
C. Duty to Exhaust Issues. No person may bring a judicial action or proceeding alleging noncompliance with the California Constitution or other applicable law for any new, increased, or extended fee, charge, or assessment levied by the city, unless that person submitted to the city clerk a timely, written objection to that fee, charge, or assessment specifying the grounds for alleging noncompliance. The issues raised in any such action or proceeding shall be limited to those raised in such an objection unless a court finds the issue could not have been raised in such an objection by those exercising reasonable diligence.
D. Procedures. The city shall:
1. Make available to the public any proposed fee, charge, or assessment to which this section is to apply no less than 45 days before the deadline for a ratepayer or assessed property owner to submit an objection pursuant to paragraph 4 of this subsection D.
2. Post on its internet website a written basis for the fee, charge, or assessment, such as a cost of service analysis or an engineer’s report, and include a link to the internet website in the written notice of the Hearing, including, but not limited to, a notice pursuant to subdivision (c) of Section 4 or paragraph (1) of subdivision (a) of Section 6 of Article XIII D of the California Constitution.
Agenda Item #9.3:
376725.2 2
3. Mail the written basis described in paragraph 2 of this subsection D to a ratepayer or property owner on request.
4. Provide at least 45 days for a ratepayer or assessed property owner to review the proposed fee or assessment and to timely submit to the city clerk a written objection to that fee, charge, or assessment that specifies the grounds for alleging noncompliance. Any objection shall be submitted before the end of the public comment portion of a Hearing on the rate, charge or assessment.
5. Include in a written notice of the Hearing, a statement in bold-faced type of 12 points or larger that:
a. All written objections must be submitted to the city clerk by the end of public comment period at the Hearing and that a failure to timely object in writing bars any right to challenge that fee, charge, or assessment in court and that any such action will be limited to issues identified in such objections. b. All substantive and procedural requirements for submitting an objection to the proposed fee, charge, or assessment such as those specified for a propertyrelated fee under California Constitution, article XIII D, section 6(a) or for an assessment on real property under California Constitution, article XIII D, section 4(e).
E. Council Consideration; City Responses. Before or during the Hearing, the city council shall consider and the city shall respond in writing to, any timely written objections. The city council may adjourn the Hearing to another date if necessary to respond to comments received after the agenda is posted for the meeting at which the Hearing occurs. The city’s responses shall explain the substantive basis for retaining or altering the proposed fee, charge, or assessment in response to written objections, including any reasons to reject requested amendments.
F. City Council Determinations. The city council, in exercising its legislative discretion, shall determine whether:
a. The written objections and the city’s response warrant clarifications to the proposed fee, charge, or assessment.
b. To reduce the proposed fee, charge or assessment.
c. To further review the proposed fee, charge, or assessment before determining whether clarification or reduction is needed.
d. To proceed with the Hearing, to continue it, or to abandon the proposal.
SECTION 3. CEQA FINDINGS. The City Council finds that adoption of this Ordinance is exempt from CEQA because: (i) it is not a project within the meaning of Public Resources Code, section 21065 because it has no potential to alter the physical environment; (ii) and pursuant to CEQA Guidelines section 15061(b)(3), the so-called “common sense” exemption, for this same reason.
SECTION 4. SEVERABILITY. If any section, subsection, sentence, clause, phrase or portion of this Ordinance or its application to any person or circumstance is held to be invalid or Agenda Item #9.3:
376725.2 3
unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance or its application to other persons and circumstances. The City Council declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase or portion thereof despite the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional and, to that end, the provisions hereof are hereby declared to be severable.
SECTION 5. EFFECTIVE DATE. This Ordinance shall be in full force and effect 30 days after its adoption pursuant to Government Code section 36937.
SECTION 6. PUBLICATION. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published pursuant to Government Code section 36933.
INTRODUCED and first read at a regular meeting of the City Council on the _____ day of __________ 2024.
FINAL PASSAGE AND ADOPTION by the City Council of the City of Sonoma was at a meeting held on the _____ day of ______ 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINING:
______________________________
John Gurney, Mayor
ATTEST:
______________________________
Rebekah Barr, MMC, City Clerk
State of California )
County of Sonoma )
City of Sonoma )
I HEREBY CERTIFY the foregoing ordinance was introduced in a Regular Meeting of the City Council of the City of Sonoma held on the 14th day of October 2024, and was duly adopted at a Regular Meeting of the City Council of the City of Sonoma held on the _____ day of _____ 2024 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
_________________________________
Rebekah Barr, MMC, City Clerk
Agenda Item #9.3:
City of Sonoma
Agenda Item Summary
Meeting: City Council - 14 Oct 2024
Department
Finance
Staff Contact
Prapti Aryal, Finance Director
Agenda Item Title
Resolution Adopting the City’s 2024 Investment Policy
Summary
California Government Code Section 53646(a)(2) allows local governmental entities to adopt an annual investment policy. While a policy is not required by statute, it is the best practice for the City to discuss the policy with the City Council and have the policy approved and adopted.
A public vote signifies that the City Council shares fiduciary responsibility with the City’s Finance Officer and increases the authority and legitimacy of the investment policy, providing for transparency and disclosure. Staff believe that the annual review and adoption is a financially sound organizational practice that should be maintained even if there is no change to the policy.
This year staff is recommending a comprehensive amendment to the investment policy to better align with the California Municipal Treasurer’s Association guidance.
Below are highlights of the updated policy:
1. The City’s primary objectives, in order of priority, remain:
a. Safety of principal,
b. Liquidity, and
c. Yield
While there is an investment risk associated with any investment activity, there is also opportunity risk related to inactivity. Our goals and objectives will be to actively manage our idle cash to earn a greater yield while keeping safety and liquidity as our priority.
2. Restrictive and conservative – To safeguard investment principal and align with the City’s low risk tolerance, the updated policy is restrictive but more flexible than previous versions. We have modified it to include categories of investments from the Government Code that are on the safest end of the investment spectrum but still allowing for achieving market rates of return – these include debt issued by the U.S. Treasury, U.S.
Government Agencies, and debt that is federally insured or sufficiently collateralized.
3. Conformity – This updated policy follows the format and guidelines recommended by the California Municipal Treasurers Association’s (CMTA) Investment Policy Certification Program. This policy meets the guidelines and industry best practices for California’s public sector agencies.
On September 17, 2024, this Investment Policy was discussed at the Finance Committee Meeting. Based on the recommendation by the Committee, the policy has been updated.
Agenda Item #9.4:
Recommended Council Action
Approve the resolution adopting the City’s 2024 Investment Policy.
Alternative Actions
Council discretion.
Financial Impact
None. By adopting an updated investment policy which meets industry’s best practices while maintaining a conservative list of authorized investments, the City can invest in a broader range of safe investments without naming individual banks as potential investment partners.
Environmental Review Status
Environmental Impact Report
Negative Declaration
Exempt
Not Applicable
Approved/Certified
No Action Required
Action Requested
Attachments
Resolution - Investment Policy
Attachment A- 2024 Investment Policy
Attachment B - 2019 Investment Policy
Agenda Item #9.4:
City of Sonoma
RESOLUTION # _____- 2024
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SONOMA ADOPTING AN
UPDATED ANNUAL INVESTMENT POLICY
WHEREAS, California Government Code Section 53646(a)(2) allows local government entities to adopt an annual investment policy; and
WHEREAS, while not mandated by statute, it is in the best interest of the City to discuss and adopt this policy with the City Council, thus enhancing the transparency and legitimacy of the investment process; and
WHEREAS, the annual review and adoption of the investment policy is considered a financially sound organizational practice, even in the absence of changes; and WHEREAS, City staff recommends a comprehensive amendment to the investment policy to better align with the guidance provided by the California Municipal Treasurers Association (CMTA); and
WHEREAS, the updated policy is designed to be restrictive and conservative to safeguard investment principal, aligning with the City’s low risk tolerance while also allowing for achieving market rates of return through categories of investments authorized under the Government Code; and
WHEREAS, the updated policy conforms to the format and guidelines recommended by the CMTA's Investment Policy Certification Program, meeting industry best practices for California’s public sector agencies.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Sonoma that the attached updated Investment Policy is hereby adopted and shall be effective immediately.
PASSED, RESOLVED, AND ADOPTED, at a Regular meeting of the City Council of the City of Sonoma on this 14th day of October 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Agenda Item #9.4:
____________________________
John Gurney, Mayor
ATTEST:
____________________________
Rebekah Barr, MMC, City Clerk
Agenda Item #9.4:
City of Sonoma– Investment Policy 1
373601.2
CITY OF SONOMA
INVESTMENT POLICY
(Last Revised 9/18/24)
Table of Contents
1. Policy .....................................................................................................................................2
2. Scope.....................................................................................................................................2
3. Prudence ...............................................................................................................................2
4. Objectives..............................................................................................................................2
5. Delegation of Authority.........................................................................................................3
6. Ethics and Conflicts of Interest............................................................................................3
7. Authorized Dealers and Institutions ....................................................................................4
8. Authorized and Suitable Investments..................................................................................4
9. Review of Investment Portfolio............................................................................................6
10. Investment Pools / Money Market Funds ..........................................................................6
11. Collateralization ..................................................................................................................7
12. Safekeeping and Custody ..................................................................................................7
13. Diversification .....................................................................................................................7
14. Maximum Maturities............................................................................................................7
15. Internal Controls .................................................................................................................8
16. Performance Standards......................................................................................................8
17. Reporting.............................................................................................................................8
18. Investment Policy Adoption...............................................................................................9
19. Glossary of Terms in this Policy........................................................................................9
20. Glossary of General Investment Terms...........................................................................11 Agenda Item #9.4:
City of Sonoma– Investment Policy 2
373601.2
1. Policy
The City of Sonoma shall invest public funds in such a manner as to comply with state and local laws; ensure prudent money management; provide for daily cash flow requirements; and meet the objectives of the Policy, in priority order of Safety, Liquidity and Return on investment. In accordance with the Municipal Code of the City of Sonoma and under authority granted by the City Council, the City Manager is responsible for investing the unexpended cash in the City Treasury.
2. Scope
The investment policy applies to all investment activities and financial assets of the City of Sonoma as accounted for in the Annual Comprehensive Financial Report (ACFR). This policy is applicable, but not limited to, all funds listed below:
• General Fund
• Capital Funds
• Other Special Revenue Funds, Debt Service Funds, Internal Service Funds • Any new fund created by the City Council unless specifically exempted.
3. Prudence
The standard of prudence to be used by the designated representative shall be the “prudent investor” standard and shall be applied in the context of managing the overall portfolio. Persons authorized to make investment decisions on behalf of local agencies investing public funds are trustees and therefore fiduciaries subject to the prudent investor standard which states, “When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency”.
The City Manager and other individuals assigned to manage the investment portfolio, acting within the intent and scope of the investment policy and other written procedures and exercising due diligence, shall be relieved of personal responsibility and liability for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely manner and appropriate action is taken to control adverse developments.
4. Objectives
The City’s primary investment objectives, in order of priority, shall be:
1. Safety: Safety of principal is the foremost objective of the investment program.
Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The City shall seek to preserve principal by mitigating the two types of risk: credit risk and market risk.
Agenda Item #9.4:
City of Sonoma– Investment Policy 3
373601.2
a. Credit risk, defined as the risk of loss due to failure of the issuer of a security, shall be mitigated by investing in issuers that carry the direct or implied backing of the U.S. Government (including, but not limited to, the U.S.
Treasury, U.S. Government Agencies, and federally insured banks). The portfolio will be diversified so that the failure of any one issuer does not unduly harm the City’s capital base and cash flow.
b. Market risk, (aka “interest rate risk”) defined as market value fluctuations due to overall changes in the general level of interest rates shall be mitigated by limiting the maximum maturity of any one security to five years, structuring the portfolio based on historic and current cash flow analysis eliminating the need to sell securities prior to maturity and avoiding the purchase of long-term securities for the sole purpose of short-term speculation. Moreover, it is the City’s full intent, at the time of purchase, to hold all investments until maturity to ensure the return of all invested principal dollars. Limited exceptions will be granted for security swaps that would improve the portfolio’s yield and/or credit quality.
2. Liquidity: The City’s investment portfolio will remain sufficiently liquid to enable the City of Sonoma to meet all operating requirements which might be reasonably anticipated.
3. Return on Investments: The City’s investment portfolio shall have the objective of attaining a comparative performance measurement or an acceptable rate of return throughout budgetary and economic cycles. These measurements should be commensurate with the City’s investment risk constraints identified in this Investment Policy and the cash flow characteristics of the portfolio.
5. Delegation of Authority
The Municipal Code of the City of Sonoma and the authority granted by City Council assign the responsibility of investing unexpended cash to the City Manager. Daily management responsibility of the investment program may be delegated to the Finance Director, who shall establish procedures for the operation consistent with this investment policy.
6. Ethics and Conflicts of Interest
Officers and employees involved in the investment process shall refrain from personal business activity that conflicts with proper execution of the investment program or impairs their ability to make impartial investment decisions. Additionally, the City Manager and the Finance Director are required to annually file applicable financial disclosures as required by the Fair Political Practices Commission (FPPC). Furthermore, Investment officials must refrain from undertaking personal investment transactions with the same Agenda Item #9.4:
City of Sonoma– Investment Policy 4
373601.2
individual(s) employed by the financial institution with whom business is conducted on behalf of the City.
7. Authorized Dealers and Institutions
The Finance Director will maintain a list of approved financial institutions authorized to provide investment services to the public agency in the State of California. These may include “primary” dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3-1 (uniform net capital rule). Best practices include the following:
1) A determination that all approved broker/dealer firms, and individuals covering the public agency, are reputable and trustworthy; 2) the broker/dealer firms should have the ability to meet all their financial obligations in dealing with the Public Agency; 3) the firms, and individuals covering the agency, should be knowledgeable and experienced in Public Agency investing and the investment products involved; 4) no public deposit shall be made except in a qualified public depository as established by the established state laws; 4) all financial institutions and broker/dealers who desire to conduct investment transactions with the public agency may supply the City Manager with audited financial statements, proof of FINRA certification, trading resolution, proof of State of California registration, a completed broker/dealer questionnaire, certification of having read the Public Agency’s investment policy and depository contracts.
The City Manager may conduct an annual review of the financial condition and registrations of qualified dealers & institutions.
8. Authorized and Suitable Investments
Investment of City funds is governed by the California Government Code Sections 53600 et seq. Within the context of the limitations, the following investments are authorized, as further limited herein:
1. United States Treasury Bills, Bonds, and Notes or those for which the full faith and credit of the United States are pledged for payment of principal and interest. There is no percentage limitation of the portfolio that can be invested in this category, although a five-year maturity limitation is applicable.
2. Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States governmentsponsored enterprises.
3. Local Agency Investment Fund (LAIF), which is a State of California managed investment pool, and the Sonoma County Investment pool, may be used up to the maximum permitted by California State Law. A review of the pool/fund is required when part of the list of authorized investments, with the knowledge that the pool/fund may include some investments allowed by statute but not explicitly identified in this investment policy.
Agenda Item #9.4:
City of Sonoma– Investment Policy 5
373601.2
Additionally, shares of beneficial interest issued by a joint powers authority organized pursuant to California Government Code Section 6509.7 that invests in the securities and obligations in compliance with California Government Code Section 53601 (subsection (a) to (r), inclusive) are also authorized. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:
• The adviser is registered or exempt from registration with the Securities and Exchange Commission.
• The adviser has not less than five years of experience investing in the securities and obligations authorized in California Government Code Section 53601 (subsection (a) to (r), inclusive).
• The adviser has assets under management in excess of five hundred million dollars ($500,000,000).
4. Negotiable Certificates of Deposit issued by nationally or state-chartered banks (FDIC insured institutions) or state or federal savings institutions. Purchases of negotiable certificates of deposit may not exceed 30% of total portfolio. Principal and accrued interest on these investments must not exceed the $250,000 FDIC insurance limit. A maturity limitation of five years is applicable.
5. Time deposits or placement service deposits, non-negotiable and collateralized in accordance with the California Government Code, may be purchased through banks or savings and loan associations. Since time deposits are not liquid, no more than 50% of the investment portfolio may be invested in this investment type. A maturity limitation of five years is applicable. Effective January 1, 2020, no more than 50 percent of the agency’s money may be invested in deposits, including certificates of deposit, through a placement service as authorized under 53601.8 (excludes negotiable certificates of deposit authorized under Section 53601(i)). On January 1, 2026, the maximum percentage of the portfolio reverts back to 30 percent. Investments made pursuant to 53635.8 remain subject to a maximum of 30 percent of the portfolio.
6. Various daily money market funds administered for or by trustees, paying agents and custodian banks contracted by the City of Sonoma may be purchased as allowed under the State of California Government Code. Only funds holding U.S.
Treasury or Government agency obligations can be used.
Agenda Item #9.4:
City of Sonoma– Investment Policy 6
373601.2
7. Bonds issued by the local agency, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the local agency.
The following summary of maximum percentage limits, by instrument, are established for the City’s investment portfolio:
Authorized Investment
Type
Government
Code
Maximum
Maturity
Minimum
Credit Quality
Maximum in
Portfolio
Maximum
Investment in
One Issuer
Treasury
Obligations (bills,
notes, & bonds)
53601(b) 5 Years N/A 100% N/A
US Government
Agency and Federal
Agency Securities 53601(f) 5 Years N/A 100% N/A
Local Agency
Investment Fund
(LAIF)
16429.1 Upon
Demand N/A
As permitted by
LAIF (currently $65
million per account)
N/A
Sonoma County
Investment Pool 53684
Upon
Demand N/A
As permitted by
County Treasurer
(currently no limit) N/A
Joint Powers Authority
Pool 53601(p) N/A See § 8.3 (above) As permitted by pool N/A Negotiable Certificates
of Deposit 53601(i) 5 Years N/A 30% N/A
Placement Service
Deposits
53601.8
and
53635.8
5 Years N/A 50% N/A
Bonds issued by the local
agency
53601(a) 5 Years N/A 10% N/A
9. Review of Investment Portfolio
The securities held by the City of Sonoma must be in compliance with Section 8.0 “Authorized and Suitable Investments” at the time of purchase. The City Manager should review the portfolio (at least annually) to identify those securities that do not comply.
The City Manager should establish procedures to report any major and critical incidences of noncompliance identified through the review of the portfolio.
10. Investment Pools / Money Market Funds
A thorough investigation of the investment pool/money market fund is required prior to investing, and on a continual basis. Best efforts will be made to acquire the following information:
1. A description of eligible investment securities, and a written statement of investment policy and objectives.
Agenda Item #9.4:
City of Sonoma– Investment Policy 7
373601.2
2. A description of interest calculations and how it is distributed, and how gains and losses are treated.
3. A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.
4. A description of who may invest in the program, how often, and what size deposit and withdrawal are allowed.
5. A schedule for receiving statements and portfolio listings.
6. Are reserves, retained earnings, etc. utilized by the pool/fund?
7. A fee schedule, and when and how is it assessed.
8. Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?
11. Collateralization
Collateralization will be required on two types of investments: non-negotiable certificates of deposit and repurchase (and reverse repurchase) agreements. To anticipate market changes and provide a level of security for all funds, the collateralization level will be 110% of market value for non-negotiable certificate of deposit and 102% for reverse repurchase agreements of principal and accrued interest.
Collateral will always be held by an independent third party with whom the entity has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the entity and retained.
The City may waive the collateralization requirements for any portion of the deposit that is covered by Federal Deposit Insurance.
12. Safekeeping and Custody
All security transactions shall be conducted on a delivery-versus-payment (DVP) basis.
Securities will be held by a third-party custodian designated by the City Manager and evidenced by safekeeping receipts.
13. Diversification
The City shall diversify the investments within the portfolio to avoid incurring unreasonable risks inherent in over-investing in specific instruments, individual financial institutions, or maturities. To promote diversification, no more than 5% of the portfolio may be invested in the securities of any one issuer, regardless of security type, excluding U.S.
Treasuries, federal agencies, and pooled investments such as LAIF, money market funds, or local government investment pools.
Agenda Item #9.4:
City of Sonoma– Investment Policy 8
373601.2
14. Maximum Maturities
To the extent possible, the City of Sonoma will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than 5 years from the date of purchase.
Any investment longer than 5 years must be done with advance permission from City Council.
15. Internal Controls
The City Manager is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City of Sonoma are protected from loss, theft, fraud or misuse.
Separation of functions between the City Manager and Finance Director is designed to provide an ongoing internal review to prevent the potential for converting assets or concealing transactions.
Investment decisions are made by the Finance Director, executed by the Senior Accountant/Accountant and confirmed by the City Manager. All wire transfers initiated by the Finance Director must be reconfirmed by the appropriate financial institution to the Senior Accountant/Accountant. Proper documentation obtained from confirmation and cash disbursement wire transfers is required for each investment transaction. Timely bank reconciliation is conducted to ensure proper handling of all transactions.
The investment portfolio and all related transactions are reviewed and balanced to appropriate general ledger accounts by the Finance Director on a monthly basis. An independent analysis by an external auditor shall be conducted annually to review and perform procedure testing on the City’s cash and investments that have a material impact on the financial statements. The City Manager shall review and assure compliance with investment process and procedures.
16. Performance Standards
The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs.
The City intends to spread its investments relatively evenly between 0 and 5 years and hold those investments to maturity. The City will attempt to limit its authorized investments to the safest end of the investment spectrum—debt issued by the U.S.
Treasury, U.S. Government Agencies, and debt that is federally insured (see section 8.0 Authorized and Suitable Investments, above, for a complete list of authorized investments).
Therefore, an appropriate performance benchmark will be a Constant Treasury Maturity Rate consistent with the weighted average maturity of the portfolio. The City recognizes that benchmarks may change over time based on changes in market conditions or cash flow requirements.
Agenda Item #9.4:
City of Sonoma– Investment Policy 9
373601.2
17. Reporting
The Finance Director shall review and render quarterly reports to the City Council that include the following information:
• Investment type (e.g. U.S. Treasury Note, U.S. Government Agency Bond) • Name of the issuer (e.g. Federal Farm Credit Bank, Federal Home Loan Bank) • Maturity date
• Yield to maturity
• Current market value and source of market value
• Par and dollar amount for each security the City has invested in • Par and dollar amount on any money held by the City (e.g. LAIF balance, Cash Balance).
The report shall also include a description of any of the City’s funds, investments, or programs that are under the management of contracted parties, including lending programs.
The quarterly report shall state compliance of the portfolio to the investment policy, or manner in which the portfolio is not in compliance.
The quarterly report shall include a statement denoting the ability of the City to meet its expenditure requirements for the next six months or provide an explanation as to why sufficient money shall (or may not) be available.
The quarterly reports shall be placed on the City Council meeting agenda for its review and approval no later than 45 days after the quarter ends. If there are no Council meetings within the 45-day period, the quarterly report shall be presented to the Council at the soonest possible meeting thereafter.
18. Investment Policy Adoption
The City of Sonoma investment policy shall be adopted by resolution of the City Council.
The policy shall be reviewed annually by the City Council and any modifications made thereto must be approved by the City Council.
The Finance Director shall establish written investment policy procedures for the operation of the investment program consistent with this policy. The procedures should include reference to: safekeeping, master repurchase agreements, wire transfer agreements, banking service contracts and collateral/depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the City of Sonoma.
19. Glossary of Terms in this Policy
Accrued Interest: Interest earned but not yet received.
Agenda Item #9.4:
City of Sonoma– Investment Policy 10
373601.2
Annual Comprehensive Financial Report (ACFR): The official annual financial report for the City. It includes five combined statements and basic financial statements for each individual fund and account group prepared in conformity with Generally Accepted Accounting Principles (GAAP).
Bond: A financial obligation for which the issuer promises to pay the bondholder a specified stream of future cash flows, including periodic interest payments and a principal repayment.
Bond Swap: Selling one bond issue and buying another at the same time in order to create an advantage for the investor. Some benefits of swapping may include taxdeductible losses, increased yields, and an improved quality portfolio.
Broker: In securities, the intermediary between a buyer and a seller of securities. The broker, who usually charges a commission, must be registered with the exchange in which he or she is trading, accounting for the name registered representative.
Certificate of Deposit: A deposit insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC) at a set rate for a specified period of time.
Collateral: Securities, evidence of deposit or pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposit of public moneys.
Constant Maturity Treasury (CMT): An average yield of a specific Treasury maturity sector for a specific time frame. This is a market index for reference of past direction of interest rates for the given Treasury maturity range.
Custody: A banking service that provides safekeeping for the individual securities in a customer's investment portfolio under a written agreement that also calls for the bank to collect and pay out income, to buy, sell, receive and deliver securities when ordered to do so by the principal.
Delivery vs. Payment (DVP): Delivery of securities with a simultaneous exchange of money for the securities.
Diversification: Dividing investment funds among a variety of securities offering independent returns and risk profiles.
Federal Deposit Insurance Corporation (FDIC): Insurance provided to customers of a subscribing bank that guarantees deposits to a set limit (currently $250,000) per account.
Interest Rate: The annual yield earned on an investment, expressed as a percentage.
Liquidity: Refers to the ability to rapidly convert an investment into cash.
Market Value: The price at which a security is trading and could presumably be purchased or sold.
Agenda Item #9.4:
City of Sonoma– Investment Policy 11
373601.2
Maturity: The date upon which the principal or stated value of an investment becomes due and payable.
Portfolio: Collection of securities held by an investor.
Primary Dealer: A group of government securities dealers that submit daily reports of market activity and security positions held to the Federal Reserve Bank of New York and are subject to its informal oversight.
Purchase Date: The date in which a security is purchased for settlement on that or a later date.
Rate of Return: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.
Risk: Degree of uncertainty of return on an asset. Safekeeping: See Custody.
Settlement Date: The date on which a trade is cleared by delivery of securities against funds.
Time Deposit: A deposit in an interest-paying account that requires the money to remain on account for a specific length of time. While withdrawals can generally be made from a passbook account at any time, other time deposits, such as certificates of deposit, are penalized for early withdrawal.
Treasury Obligations: Debt obligations of the U.S. Government that are sold by the Treasury Department in the forms of bills, notes, and bonds. Bills are short-term obligations that mature in one year or less. Notes are obligations that mature between one year and ten years. Bonds are long-term obligations that generally mature in ten years or more.
U.S. Government Agencies: Instruments issued by various US Government Agencies most of which are secured only by the credit worthiness of the particular agency.
Yield: The rate of annual income return on an investment, expressed as a percentage. It is obtained by dividing the current dollar income by the current market price of the security.
Yield to Maturity: The rate of income return on an investment, minus any premium or plus any discount, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond, expressed as a percentage.
20. Glossary of General Investment Terms
Active Deposits: Funds that are immediately required for disbursement.
Amortization: An accounting practice of gradually decreasing (increasing) an asset's book value by spreading its depreciation (accretion) over a period of time.
Agenda Item #9.4:
City of Sonoma– Investment Policy 12
373601.2
Asked Price: The price a broker dealer offers to sell securities. Basis Point: One basis point is one hundredth of one percent (.01). Bid Price: The price a broker / dealer offers to purchase securities.
Book Entry Securities: Securities, such stocks held in “street name,” that are recorded in a customer’s account, but are not accompanied by a certificate. The trend is toward a certificate-free society to cut down on paperwork and to diminish investors’ concerns about the certificates themselves. All the large New York City banks, including those that handle the bulk of the transactions of the major government securities dealers, now clear most of their transactions with each other and with the Federal Reserve through the use of automated telecommunications and the “book-entry” custody system maintained by the Federal Reserve Bank of New York. These banks have deposited with the Federal Reserve Bank a major portion of their government and agency securities holdings, including securities held for the accounts of their customers or in a fiduciary capacity for the City. Virtually all transfers for the account of the banks, as well as for the government securities dealers who are their clients, are now effected solely by bookkeeping entries.
The system reduces the costs and risks of physical handling and speeds the completion of transactions.
Book Value: The value at which a debt security is shown on the holder's balance sheet.
Book value is acquisition cost less amortization of premium or accretion of discount.
Bullet Bond: See “Non-callable Bond.”
Callable Bond: A debit obligation where the bond issuer (i.e. borrower) has the option to call the bond or pay it off early (before the scheduled maturity date). For instance, a 5- year bond might be “callable quarterly”—meaning that, although the bond has a scheduled end date 5 years from now, it could end in 3 months (and every 3 months after that, until the scheduled maturity date).
Coupon: The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value.
Credit Analysis: A critical review and appraisal of the economic and financial conditions or of the ability to meet debt obligations.
Current Yield: The interest paid on an investment expressed as a percentage of the current price of the security.
Discount: The difference between the cost of a security and its value at maturity when quoted at lower than face value.
Duration: The weighted average maturity of a bond's cash flow stream, where the present value of the cash flows serve as the weights; the future point in time at which on average, an investor has received exactly half of the original investment, in present value terms; a bond's zero-coupon equivalent; the fulcrum of a bond's present value cash flow time line.
Agenda Item #9.4:
City of Sonoma– Investment Policy 13
373601.2
Fannie Mae: Trade name for the Federal National Mortgage Association (FNMA), a U.S. sponsored corporation.
Federal Reserve System: The central bank of the U.S. that consists of a seven member Board of Governors, 12 regional banks and approximately 8,000 commercial banks that are members.
Fed Wire: A wire transmission service established by the Federal Reserve Bank to facilitate the transfer of funds through debits and credits of funds between participants within the Fed system.
Freddie Mac: Trade name for the Federal Home Loan Mortgage Corporation (FHLMC), a U.S. sponsored corporation.
Investment Agreements: An agreement with a financial institution to borrow public funds subject to certain negotiated terms and conditions concerning collateral, liquidity and interest rates.
Nationally Recognized Statistical Rating Organizations (NRSRO): A U.S. Securities & Exchange Commission registered agency that assesses the creditworthiness of an entity or specific security. NRSRO typically refers to Standard and Poor’s Ratings Services, Fitch Ratings, Inc. or Moody’s Investors Services.
New Issue: Term used when a security is originally "brought" to market.
Non-callable Bond: Also known as, “Bullet Bond.” A non-callable bond is a debt obligation where the bond issuer does not have the option to “call the bond” i.e.-end the bond before the scheduled maturity date.
Perfected Delivery: Refers to an investment where the actual security or collateral is held by an independent third party representing the purchasing entity.
Repurchase Agreement (REPO): A transaction where the seller (bank) agrees to buy back from the buyer (City) the securities at an agreed upon price after a stated period of time.
Reverse Repurchase Agreement (REVERSE REPO): A transaction where the seller (City) agrees to buy back from the buyer (bank) the securities at an agreed upon price after a stated period of time.
Secondary Market: A market made for the purchase and sale of outstanding issues following the initial distribution.
Yield Curve: The yield on bonds, notes or bills of the same type and credit risk at a specific date for maturities up to thirty years.
Agenda Item #9.4:
CITY OF SONOMA
INVESTMENT POLICY
POLICY
Under the authority granted by the City Council, the City Treasurer is responsible for investing the unexpended cash in the City Treasury.
The investment of the funds of the City of Sonoma is directed to the goals of safety, liquidity and yield.
The authority governing investments for municipal governments is set forth in the California Government Code, Sections 53601 through 53659.
The primary objective of the investment policy of the City of Sonoma is safety of principal. The secondary objective shall be to meet the liquidity needs of the City. The third objective shall be to achieve a return on the funds under the City’s control. Investments shall be placed in those securities as outlined by type and maturity sector in this document. Effective cash flow management and resulting cash investment practices are recognized as essential to good fiscal management control. The City’s portfolio shall be designed and managed in a manner responsive to the public trust and consistent with state and local law. Portfolio management requires continual analysis and as a result the balance between the various investments and maturities may change in order to give the City of Sonoma the optimum combination of necessary liquidity and optimal yield based on cash flow projections.
SCOPE
The investment policy applies to all financial assets of the City of Sonoma as accounted for in the City’s Financial Report. Policy statements outlined in this document focus on the City of Sonoma’s pooled funds but will also apply to all other funds under the City Treasurer’s control unless specifically exempted by statue or ordinance. This policy is applicable, but not limited to all funds listed below:
General Fund
Special Revenue Funds
Capital Projects Funds
Debt Service Funds
Internal Service Funds
Water Utility Funds
Cemetery Operations Funds
Emergency Medical Services Funds
Trust & Agency Funds
All Other Existing Funds
PRUDENCE
The standard to be used by investment officials shall be that of a “prudent person” and shall be applied in the context of managing all aspects of the overall portfolio. Investments shall be made with judgment Agenda Item #9.4:
and care, under circumstances when prevailing, which persons of prudence, direction and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.
It is the City’s full intent, at the time of purchase, to hold all investments until maturity to ensure the return of all invested principal dollars. However, it is realized that market prices of securities will vary depending on economic and interest rate conditions at any point in time. It is further recognized, that in a well-diversified investment portfolio, occasional measured losses are inevitable due to economic, bond market or individual security credit analysis. These occasional losses must be considered within the context of the overall investment program objectives and the resultant long-term rate of return.
The City Treasurer and other individuals assigned to manage the investment portfolio, acting within the intent and scope of the investment policy and other written procedures and exercising due diligence, shall be relieved of personal responsibility and liability for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely manner and appropriate action is taken to control adverse developments.
OBJECTIVES
Safety of Principal
Safety of principal is the foremost objective of the City of Sonoma. Each investment transaction shall seek to ensure that capital losses are avoided, whether from securities default, broker-dealer default or erosion of market value. The City shall seek to preserve principal by mitigating the two types of risk, credit risk and market risk.
Credit risk
Defined as the risk of loss due to failure of the issuer of a security, shall be mitigated by investing in investment grade securities and by diversifying the investment portfolio so that the failure of any one issuer does not unduly harm the City’s capital base and cash flow.
Market risk
Defined as market value fluctuations due to overall changes in the general level of interest rates, shall be mitigated by limiting the average maturity of the City’s investment portfolio to two years, the maximum maturity of any one security to five years, structuring the portfolio based on historic and current cash flow analysis eliminating the need to sell securities prior to maturity and avoiding the purchase of long-term securities for the sole purpose of short-term speculation.
Liquidity
Because the City operates its own water utility and bills on a bi-monthly cycle, with monthly billings on alternate routes, cash flow is generated on a daily basis. Historical cash flow trends are compared to current cash flow requirements on an ongoing basis in an effort to ensure that the City’s investment portfolio will remain sufficiently liquid to enable the City to meet all reasonably anticipated operating requirements.
Performance Evaluation
Investment performance is continually monitored and evaluated by the City Treasurer. Investment reports are generated on a monthly basis for presentation to the City Manager and on a quarterly basis to the City Council.
Agenda Item #9.4:
The investment portfolio shall be designed to attain a market average rate of return equal to the yield on three-month U.S. Treasury Bills; considered as the benchmark for non-risk investments.
DELEGATION OF AUTHORITY
The Treasurer is designated as Investment Officer of the City and is responsible for investing unexpended cash, under the direction of the City Council. The Treasurer shall develop and maintain written administrative procedures for the operation of the investment program, consistent with these policies. In order to optimize total return through active portfolio management, resources shall be allocated to the cash management program. This commitment of resources shall include financial and staffing considerations.
MONITORING AND ADJUSTING THE PORTFOLIO
The Treasurer will routinely monitor the contents of the portfolio, the available markets and the values of competing instruments and will adjust the portfolio according to the stated objectives. Prior approval by the City Council will be needed for any investment greater than one year in length.
ETHICS AND CONFLICTS OF INTEREST
Officers and employees involved in the investment process shall refrain from personal business activity that conflicts with proper execution of the investment program or impairs their ability to make impartial investment decisions. Additionally, the City Treasurer is required to annually file applicable disclosures as required by the Fair Political Practices Commission (FPPC).
SAFEKEEPING OF SECURITIES
To protect against fraud or embezzlement or losses caused by collapse of an individual securities dealer, all securities owned by the City shall be held in safekeeping by a third-party institution, acting as primary agent for the City under the terms of a custody agreement. The primary agent shall issue a safekeeping receipt to the City listing the specific instrument, rate, maturity and other pertinent information.
Securities held in custody for the City shall be independently audited on an annual basis to verify investment holdings. All exceptions to this safekeeping policy must be approved by the City Treasurer in written form and included in monthly reporting to the City Council.
INTERNAL CONTROLS
The City staff shall establish a system of written internal controls, which shall be reviewed annually by the independent auditor. The controls shall be designed to prevent loss of public funds due to fraud, error, misrepresentation, unanticipated market changes or imprudent actions.
REPORTING
The City Treasurer shall generate daily and monthly reports for management purposes. In addition, the City Council will be provided quarterly reports which shall include the face amount of the cash investment, the classification of the investment, the name of the institution or entity, the rate of interest, the maturity date, the current market value and accrued interest due for all securities. In addition, any security with a one-year maturity will be reported on a monthly basis.
QUALIFIED INSTITUTIONS
The City shall maintain a listing of financial institutions that are approved for investment purposes.
Banks shall provide their most recent Consolidated Report of Condition (“call” report) at the request of the City. At minimum, the City shall conduct an annual evaluation of each bank’s creditworthiness to determine whether it should be on the “Qualified Institution” listing. Securities dealers not affiliated with a bank shall be required to be classified as reporting dealers affiliated with the New York Federal Agenda Item #9.4:
Reserve Bank, as primary dealers.
COLLATERAL REQUIREMENTS
Collateral is required for investments in certificates of deposit, repurchase agreements and reverse repurchase agreements. These securities shall be collateralized through the state collateral pool as required for any amount exceeding FDIC coverage. Other investments shall be collateralized by the actual security held in safekeeping by the primary agent.
SHORT-TERM VERSUS LONG-TERM PORTFOLIO
Limitations on instruments, diversification and maturity scheduling shall depend upon whether the funds being invested are considered short-term or long-term funds. All funds shall be considered shortterm except those reserved for capital projects and special assessment prepayments being held for debt retirement.
AUTHORIZED INVESTMENTS
Investment of City funds is governed by the California Government Code Sections 53600 et seq. Within the context of the limitations, the following investments are authorized, as further limited herein:
Diversification by Investment Maximum % of Portfolio
U.S. Treasury Obligation (Bills, Notes, Bonds) 100%
U.S. Government Agency Securities and Instruments of
Government Sponsored Corporations 100%
Bankers’ Acceptances (BA’s); A-rated Medium-Term Notes 30% Repurchase Agreements (Repos)-consistent with the
provisions of State Law 25%
Certificates of Deposit (CD) Commercial Banks or
State Chartered bank or State or Federal Association 30% LAIF (Local Agency Investment Fund) 100%
Diversification by Financial Institution:
Bankers’ Acceptances (BA’s)-No more than 25% of the total portfolio with any one institution
Repurchase agreements (Repos)-No more than 10% of total portfolio with any one institution
Certificates of Deposit (CD’s)-Commercial Banks-No more than 50% of the total portfolio with any one institution
Certificates of Deposit (CD’s)-Savings and Loan Associations-No more than $100,000 with any one institution
Local Government Investment Pool-State Pool-No more than $20 million Ineligible investments are those that are not described herein, including but not limited to, common stocks and long-term (over 5-years in maturity) notes and bonds are prohibited from use in this portfolio. It is noted that special circumstances arise that necessitate the purchase of securities beyond the five-year limitation. On such occasions, requests must be approved by City Council prior to purchase.
Various daily cash funds administered for or by trustees, paying agents and custodian banks contracted by the City of Sonoma may be purchased as allowed under State of California Government Code. Only funds holding U.S. Treasury or Government agency obligations can be utilized.
Agenda Item #9.4:
MATURITY MATRIX
Investment maturities for operating funds shall be scheduled to coincide with projected cash flow needs, considering large routine expenditures (payroll, bond payments) as well as considering sizable blocks of anticipated revenue (tax revenue). Maturities in this category shall be timed to comply with the following guidelines:
▪ Under 30 days 25% minimum
▪ Under 90 days 50% minimum
▪ Under 270 days 75% minimum
▪ Under 1 year 100% minimum
LEGISLATIVE CHANGES
Any State of California legislative action, that further restricts allowable maturities, investment type or percentage allocations, will be incorporated into the City of Sonoma’s Investment Policy and supersede any and all previous applicable language.
INTEREST EARNINGS
All moneys earned and collected from investments authorized in this policy shall be allocated monthly to various fund accounts based on the cash balance in each fund as a percentage of the entire pooled portfolio.
LIMITING MARKET VALUE EROSION
The longer the maturity of securities, the greater their market price volatility. Therefore, it is the general policy of the City to limit the potential effects from erosion in market values by adhering to the following guidelines:
• All immediate and anticipated liquidity requirements will be addressed prior to purchasing all investments.
• Maturity dates for long-term investments will coincide with significant cash flow requirements where possible, to assist with short-term cash requirements at maturity.
• All long-term securities will be purchased with the intent to hold all investments to maturity under then prevailing economic conditions. However, economic or market conditions may change, making it in the City’s best interest to sell or trade a security prior to maturity.
POLICY REVIEW
The City of Sonoma’s investment policy shall be adopted by resolution of the City Council on an annual basis. This investment policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity and yield, and its relevance to current law and financial and economic trends. Any amendments to the policy shall be approved by the City Council Agenda Item #9.4:
Agenda Item #9.4:
City of Sonoma
Agenda Item Summary
Meeting: City Council - 14 Oct 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 Optimized Investment Partners for Investment Advisory Services Summary
The City of Sonoma has historically invested its surplus cash in the Local Agency Investment Fund (LAIF) and with various banks. This conservative strategy has served the City well over the years, particularly during a time of low market interest rates, as it provided complete liquidity along with some interest earnings. However, in recent years, market interest rates have risen dramatically. In response to these changes and to support the City Council goal of Revenue Stewardship, City staff has reviewed various options for a more active investment strategy, seeking to capitalize on the evolving investment landscape. Over the past four weeks, staff has engaged with registered investment advisors from Optimized Investment Partners to explore these options and understand their implementation. Additionally, staff contacted a neighboring city and other municipal agencies in California that use Optimized Investment Partners and received stellar reviews of their services.
Optimized Investment Partners provides unique service features focusing on small municipalities —such as comprehensive cash-flow modeling, daily investment advice, and unlimited virtual meetings—are not readily available from any other firm. This distinctive capability positions Optimized Investment Partners as the most suitable choice for the City’s investment advisory needs. Following a review of the City’s cash accounting, Optimized Investment Partners estimates that the City could earn an additional $233,000 in annual investment interest using conservative, federally backed, and collateralized investment products, based on current interest rates. While interest rates will fluctuate, having a dedicated investment advisor will enable the City to maximize its earnings while ensuring the safety of its surplus cash and maintaining adequate liquidity for operational needs.
The investment strategies being considered include a multi-year laddering approach, which will take advantage of the higher interest rates available. To ensure the safety of these investments, the City plans to enter into a custodial agreement with an authorized bank to hold the investment cash before and after purchases. This third-party relationship will create an appropriate system of checks and balances. Importantly, Optimized Investment Partners will not have control over the City’s cash; instead, they will provide advisory services to recommend compliant investments based on the City's investment policy. City staff will use an authorized brokerdealer list to ensure timely execution of transactions.
By engaging Optimized Investment Partners to actively manage the City’s cash surplus, the City will not only improve its investment earnings but also ensure consistent monthly value in cash management. This proactive approach will help the City take advantage of market opportunities to enhance future yields while appropriately laddering the investment portfolio for resiliency and sustained revenue. Furthermore, the partnership will ensure compliance with the Agenda Item #9.5:
California Government Code, reinforcing the City’s commitment to responsible fiscal management.
In conclusion, the decision to hire Optimized Investment Partners represents a strategic shift toward a more active and effective investment strategy, ultimately benefiting the City of Sonoma through increased revenues and enhanced financial stability.
Recommended Council Action
Adopt the resolution.
Alternative Actions
Council discretion.
Financial Impact
Engaging Optimized Investment Partners is expected to significantly enhance the City of Sonoma's investment earnings by an estimated $233,000 yearly through a more active management strategy. The annual fee for their services will be about $33,750, resulting in a net financial benefit of about $199,250 each year. This additional revenue can support various city operational needs, promoting greater financial stability while ensuring the safety and liquidity of the City's investments.
Environmental Review Status
Environmental Impact Report
Negative Declaration
Exempt
Not Applicable
Approved/Certified
No Action Required
Action Requested
Attachments
Resolution - Optimized Investment Partners
Professional Services Agreement
Scope and Fees
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 OPTIMIZED INVESTMENT PARTNERS FOR INVESTMENT ADVISORY
SERVICES FOR CITY FUNDS
WHEREAS, the City of Sonoma consistently is seeking opportunities for reducing the cost of City services as well as generating additional City revenue, and contracting for the provision of certain City services can be an effective means for achieving these objectives; and WHEREAS, contracting for the investment of City funds will save the staff time currently used for this purpose and offers an opportunity to achieve a higher level of investment returns; and
WHEREAS, the City has received and evaluated a proposal submitted by Optimized Investment Partners, for the provision of contract investment services for City funds; and, WHEREAS, Optimized Investment Partners is an experienced provider of investment services for California cities and other public agencies, and would manage the City’s funds consistent with the objectives established by City Council in the City’s “Investment Policy.” NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Sonoma authorizes the City Manager to execute a contract with Optimized Investment Partners for investment services for City funds.
PASSED, RESOLVED, AND ADOPTED, at a Regular meeting of the City Council of the City of Sonoma on this 14th day of October 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 / Optimized Investment Partners)
336531.2 Page 1 of 21
Approved for use 12/28/2023
PROFESSIONAL SERVICES AGREEMENT
FOR CONSULTANT SERVICES
(City of Sonoma / Optimized Investment Partners, LLC.)
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 Optimized Investment Partners, LLC., a California, limited liability company (“Consultant”) (collectively, “parties”).
2. RECITALS
2.1 City has determined that it requires the following professional services from a consultant: Investment Advisory Services.
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.
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, City and Consultant agree as follows:
Agenda Item #9.5:
Professional Services Agreement
(City of Sonoma / Optimized Investment Partners)
336531.2 Page 2 of 21
Approved for use 12/28/2023
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 Attachment A 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 14, 2024.
3.4 “Consultant Project Administrator” means Robert Michalik, COO. The Consultant Project Administrator will be the principal point of contact for the Consultant.
3.5 “Maximum Amount” means the highest total compensation and costs payable to Consultant by City under this Agreement. The Maximum Annual Amount under this Agreement is Forty Thousand Five Hundred Dollars ($40,500.00).
3.6 “Scope of Services” means such professional services as are set forth in Consultant’s October 2, 2024, proposal to City attached hereto as “Exhibit A” and fully incorporated herein by this reference.
3.7 “Termination Date” means November 1, 2027.
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 / Optimized Investment Partners)
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authorized in advance by City in writing and incorporated in written amendments to this Agreement.
5. CONSULTANT’S SERVICES
5.1 Time is of the essence in Consultant’s performance of services under this Agreement.
5.2 Consultant shall perform the services identified in the Scope of Services.
City shall have the right to request, in writing, changes in the Scope of Services. Any such changes mutually agreed upon by the parties, and any corresponding increase or decrease in compensation, shall be incorporated by written amendment to this Agreement. In performing services under this Agreement, Consultant shall coordinate all contact with City through its Agreement Administrator. All changes and/or extra work shall be performed and paid for in accordance with the following:
5.2.1 Only the City Finance Director or City Council may authorize extra and/or changed work. Consultant expressly recognizes that other City personnel are without authorization to either order extra and/or changed work or waive contract requirements. Failure of Consultant to secure the Council’s or City Finance Director’s authorization for such extra and/or changed work shall constitute a waiver of any and all right to adjustment in the Maximum Amount due to such unauthorized work and Consultant thereafter shall be entitled to no compensation whatsoever for performance of such work.
5.2.2 If the Consultant is of the opinion that any work s/he has been directed to perform is beyond the scope of this Agreement and constitutes extra work, s/he shall promptly notify the Agreement Administrator of this opinion. The City shall make a determination as to whether or not such work is, in fact, beyond the scope of this Agreement and constitutes extra work. In the event that the City determines that such work does constitute extra work, it shall provide extra compensation to the Consultant on a fair and equitable basis. A Supplemental Agreement providing for such compensation for extra work shall be negotiated between the City and the Consultant. Such Supplemental Agreement shall be Agenda Item #9.5:
Professional Services Agreement
(City of Sonoma / Optimized Investment Partners)
336531.2 Page 4 of 21
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executed by the Consultant and be approved by the City in accordance with its purchasing policy.
5.2.3 In the event City determines that such work does not constitute extra work, Consultant shall not be paid extra compensation above that provided herein and if such determination is made by City staff, this determination may be appealed to the City Council as long as a written appeal is submitted to the City Manager within five (5) days after the staff’s determination is received by the Consultant. Any written appeal shall include a description of each and every ground upon which Consultant challenges the staff’s determination. The City Council’s decision shall be final.
5.3 In no event shall the total compensation and costs payable to Consultant under this Agreement exceed the Maximum Amount unless specifically approved in advance and in writing by City. Consultant shall notify the Agreement Administrator, in writing, when fees and expenses incurred under this Agreement have reached eighty percent (80%) of the Maximum Amount payable above. Consultant shall concurrently inform the Agreement Administrator, in writing, of Consultant’s estimate of total expenditures required to complete its current assignments before proceeding, when the remaining work on such assignments would exceed the Maximum Amount payable above.
5.4 Consultant shall perform all work to the highest standards of Consultant’s profession and in a manner reasonably satisfactory to City. Consultant shall comply with all applicable federal, state and local laws and regulations, including the conflict-of-interest provisions of Government Code Section 1090 and the Political Reform Act (Government Code Section 81000 et seq.).
5.5 Consultant shall obtain and maintain in force a City business license for the term of this Agreement.
5.6 Consultant represents that it has no known relationships with third parties, City Council Members, or employees of City which would (i) present a conflict of interest with the rendering of services under this Agreement under Government Code Section 1090, the Political Reform Act (Government Code Section 81000 et seq.), or other applicable law, (ii) prevent Consultant from performing the terms of this Agreement, or Agenda Item #9.5:
Professional Services Agreement
(City of Sonoma / Optimized Investment Partners)
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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:
Professional Services Agreement
(City of Sonoma / Optimized Investment Partners)
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Approved for use 12/28/2023
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:
Professional Services Agreement
(City of Sonoma / Optimized Investment Partners)
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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:
Professional Services Agreement
(City of Sonoma / Optimized Investment Partners)
336531.2 Page 8 of 21
Approved for use 12/28/2023
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:
Professional Services Agreement
(City of Sonoma / Optimized Investment Partners)
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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:
Professional Services Agreement
(City of Sonoma / Optimized Investment Partners)
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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:
Professional Services Agreement
(City of Sonoma / Optimized Investment Partners)
336531.2 Page 11 of 21
Approved for use 12/28/2023
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 One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) 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:
Professional Services Agreement
(City of Sonoma / Optimized Investment Partners)
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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:
Professional Services Agreement
(City of Sonoma / Optimized Investment Partners)
336531.2 Page 13 of 21
Approved for use 12/28/2023
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:
Professional Services Agreement
(City of Sonoma / Optimized Investment Partners)
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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:
Professional Services Agreement
(City of Sonoma / Optimized Investment Partners)
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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:
David Guhin, City Manager
City of Sonoma
No. 1 The Plaza
Sonoma, CA 95476
Telephone: (707) 933-2218
Email: [email protected]
If to Consultant:
Robert Michalik, COO
Optimized Investment Partners, LLC.
2212 Carol View Drive, Unit C103
Cardiff, CA 92007
Telephone: (619) 324-9531
Email: [email protected]
With courtesy copy to:
David J. Ruderman, Sonoma City Attorney
Colantuono, Highsmith & Whatley, PC
670 W. Napa Street, Suite F
Sonoma, CA 95476
Agenda Item #9.5:
Professional Services Agreement
(City of Sonoma / Optimized Investment Partners)
336531.2 Page 16 of 21
Approved for use 12/28/2023
Telephone: (707) 986-8091
Facsimile: (707) 509-7295
Email: [email protected]
17. SURVIVING COVENANTS
The parties agree that the covenants contained in Paragraph 8.2, Section 10, Paragraph 12.2, Section 13, and Section 14 of this Agreement shall survive the expiration or termination of this Agreement.
18. TERMINATION
18.1 The City may, in its sole and unfettered discretion and without cause, terminate this Agreement at any time prior to completion by Consultant of the services required. Notice of Termination of this Agreement shall be given in writing to Consultant and shall be sufficient and complete when same is emailed to Consultant and simultaneously deposited in the United States mail postage prepaid and certified, addressed as set forth in Section 16 of this Agreement. The Agreement shall be terminated upon receipt of the Notice of Termination by Consultant. If City should terminate this Agreement, the Consultant shall be compensated for all work satisfactorily performed prior to time of receipt of termination notice, and shall be compensated for materials ordered by the Consultant or his/her employees, or services of others ordered by the Consultant or his/her employees prior to receipt of Notice of Termination whether or not such materials or final instruments of services of others have actually been delivered, provided that the Consultant or its employees are not able to cancel such orders for materials or services of others. Compensation for the Consultant in the event of termination by the City shall be determined by the City Finance Director in accordance with the percentage of project completed. In the event that this Agreement is terminated pursuant to this Paragraph 18.1, Consultant shall not be entitled to any additional compensation over that provided herein; nor shall Consultant be entitled to payment for any alleged damages or injuries (including lost opportunity damages) purportedly caused by the termination of this Agreement by the City pursuant hereto.
18.2 Consultant may terminate this Agreement upon thirty (30) days written notice to the City only for good cause. Consultant’s written notice of termination shall contain a full explanation of the facts and circumstances Agenda Item #9.5:
Professional Services Agreement
(City of Sonoma / Optimized Investment Partners)
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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, including without limitation, the City’s Non-Discrimination Policy adopted as Resolution #25-2019.
Consultant shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to race, sex (including pregnancy, childbirth, or related medical Agenda Item #9.5:
Professional Services Agreement
(City of Sonoma / Optimized Investment Partners)
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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.
19.7 Each right, power and remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise shall be cumulative and shall be in addition to every other right, power, or remedy provided for Agenda Item #9.5:
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herein or now or hereafter existing at law, in equity, by statute, or otherwise. The exercise, the commencement of the exercise, or the forbearance from the exercise by any party of any one or more of such rights, powers or remedies shall not preclude the simultaneous or later exercise by such party of any or all of such other rights, powers or remedies. If legal action shall be necessary to enforce any term, covenant or condition contained in this Agreement, the party prevailing in such action, whether or not reduced to judgment, shall be entitled to its reasonable court costs, including any accountants’ and attorneys’ fees expended in the action. The venue for any litigation shall be Sonoma County, California and Consultant hereby consents to jurisdiction in Sonoma County for purposes of resolving any dispute or enforcing any obligation arising under this Agreement.
19.8 If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, then such term or provision shall be amended to, and solely to the extent necessary to, cure such invalidity or unenforceability, and in its amended form shall be enforceable. In such event, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law.
19.9 This Agreement shall be governed and construed in accordance with the laws of the State of California.
19.10 All documents referenced as exhibits in this Agreement are hereby incorporated into this Agreement. In the event of any material discrepancy between the provisions of this Agreement and those of any document incorporated herein by reference, the provisions of this Agreement shall prevail. This instrument contains the entire Agreement between City and Consultant with respect to the transactions contemplated herein. No other prior oral or written agreements are binding upon the parties. Amendments hereto or deviations herefrom shall be effective and binding only if made in writing and executed on behalf of the City and Consultant.
Agenda Item #9.5:
Professional Services Agreement
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19.11 Nonprofit service contractors which receive contracts from the City of $75,000 or more in a 12-month period, and for-profit service contractors who receive contracts from the City of $10,000 or more in a 12-month period, provided they have more than six employees, may be subject to the City’s Living Wage Ordinance. Sub-contractors with $50,000 or more in annual gross receipts may also be subject to the Living Wage Ordinance. Unless otherwise exempt in accordance with the provisions of the Ordinance (Sonoma Municipal Code Chapter 2.70), this Agreement is subject to applicable provisions of the Living Wage Ordinance of the City as amended from time to time and available on the City’s website.
19.12 This Agreement may be signed in one or more counterparts, each of which shall be deemed an original, but all of which together shall be deemed one and the same instrument. The parties acknowledge and agree that this Agreement may be executed by electronic signature, which shall be considered as an original signature for all purposes and shall have the same force and effect as an original signature. Without limitation, “electronic signature” shall include faxed or emailed versions of an original signature, electronically scanned and transmitted versions (e.g., via pdf) of an original signature, or a digital signature.
19.13 This Agreement shall be binding on successors and assigns of the parties.
19.14 Except as expressly stated herein, there is no intended third-party beneficiary of any right or obligation assumed by the parties.
19.15 The recitals are incorporated by this reference.
[Signatures on following page]
Agenda Item #9.5:
Professional Services Agreement
(City of Sonoma / Optimized Investment Partners)
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TO EFFECTUATE THIS AGREEMENT, the parties have caused their duly authorized representatives to execute this Agreement as of the last date indicated below:
“City”
City of Sonoma
By:________________________________
Signature
Printed:_____________________________
Title:_______________________________
Date:______________________
“Consultant”
Optimized Investment Partners, LLC.
By:________________________________
Signature
Printed: David Bilby_________________
Title: President, CEO & CCO___________
Date:______________________
Attest:
By:__________________________________
Rebekah Barr, MMC, City Clerk
Date:________________________
By:________________________________
Signature
Printed: Robert Michalik______________
Title: Executive VP & COO____________
Date:______________________
Approved as to form:
By:__________________________________
David J. Ruderman, City Attorney
Date:________________________
Agenda Item #9.5:
Professional Services Agreement
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“EXHIBIT A”
Scope of Work
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“EXHIBIT B”
Approved Fee Schedule
Agenda Item #9.5:
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“EXHIBIT C”
Campaign Contribution Disclosure Form
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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:
336531.2
is a party to a proceeding, the majority shareholder
is subject to these provisions.
Date Phone
Agenda Item #9.5:
1 Attachment A (Proposal)
October 2nd, 2024
David Guhin
City Manager
No. 1 The Plaza
Sonoma, CA 95476
Re: Proposal (Attachment A) for Investment Advisory Services to the City of Sonoma Dear Mr. Guhin:
Optimized Investment Partners, LLC (“Optimized”), is pleased to present this proposal (Attachment A) to the City of Sonoma (“Client” or “City”) to provide investment advisory services related to the City’s surplus funds portfolio to achieve preservation of capital and maintain appropriate levels of liquidity at market yields.
Optimized Investment Partners was formed for one reason. To serve you. Our president and CEO has been working in local government investments for over 19 years. He identified a huge disparity in the investment advisory industry. The larger agencies were offered more opportunities for services than smaller ones. Smaller agencies have been virtually ignored even though it’s the smaller agencies that don’t have the staffing resources to manage the diverse set of responsibilities required.
I. BACKGROUND AND OBJECTIVE
OPTIMIZED will provide specified professional investment advisory services consistent with California government code section 53600 as detailed in the scope of services section below. As a fiduciary to your City, Optimized will place preservation of capital as our top priority, while ensuring appropriate levels of liquidity for day-to-day operations. We will seek to earn market yields once the first two priorities have been achieved.
II. SCOPE OF SERVICES
OPTIMIZED proposes the following scope of work to assist Client with investment advisory services. Please note that the prospective assignment that OPTIMIZED proposes to provide are advisory in nature. OPTIMIZED will be making specific investment recommendations. None of OPTIMIZED's staff will act in a capacity as an elected official, an appointed official, as staff, or serve in a "designated" position.
1. Provide investment advisory services for all surplus funds identified by Optimized and Client in compliance with Government Code Section 53600 and other applicable government codes, local municipal codes, charters, and policies
2. Build a comprehensive cash-flow model to enhance liquidity management and increase the amount of funds invested in the investment portfolio
3. Investment Policy review and consulting
4. Provide general investment education to City Staff and Officials
5. Prepare reports of monthly/quarterly transactions
6. Monitor the credit of investment securities in the portfolio for compliance with the City’s Investment Policy
7. Perform interest revenue projections as needed for analysis
8. If requested, deliver one virtual public presentation to a commission, special committee, or governing body (e.g. City Council, Board of Directors) of the City
9. As requested, assist with other compliance and audit review requirements as related to OPTIMIZED services, and/or attend publicly noticed City meetings.
III. SCHEDULE AND REQUIRED DATA
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2 Optimized is prepared to commence work upon receipt of an executed Agreement. Client will promptly provide Optimized with project data requested, including three (3) years of cash transaction detail.
Days 1-7
⮚ Kickoff meeting to discuss and confirm schedule
⮚ Custodial account setup
⮚ Broker/Dealer account setup
⮚ Pool(s) account(s) setup
Days 7-14
⮚ Portfolio recommendations
⮚ Trade execution with Client broker/dealer
IV. COMPENSATION/TERM
Consultant shall receive compensation, including authorized reimbursements, for Services rendered under this Agreement at the rates set forth below. Contract will be in force for an initial three (3) year term, with the option to extend twice via one (1) year extension(s).
Investment Advisory Annual Fee Schedule
Contract Year Annual Fee Basis – Assets Under Management Year 1 Fiscal Year Ending
June 30, 2025
9 basis points Ending Monthly Custodial Bank Balance and Collateral Accounts*
Year 2 Fiscal Year Ending
June 30, 2026
9 basis points Ending Monthly Custodial Bank Balance and Collateral Accounts*
Year 3 Fiscal Year Ending
June 30, 2027
9 basis points Ending Monthly Custodial Bank Balance and Collateral Accounts*
Year 4 Fiscal Year Ending
June 30, 2028
9 basis points Ending Monthly Custodial Bank Balance and Collateral Accounts*
*Based on the ending monthly custodial bank balance, assets invested in certificates of deposit, and pooled account assets including cash and investments, as reported by the custodial bank, broker/dealers, other banks, and pooled account administrators.
Optimized will submit an invoice calculated monthly with a statement provided (Example: $37.5 million ending balance would be invoiced at $37.5 million * 0.0009= $33,750/12 = $2,813 monthly).
To the extent alternative assignments are requested, compensation for requested Additional Tasks (defined below) will be based on hours spent at OPTIMIZED’s billing rates as shown on “Exhibit 1.” V. NON-DISCRETIONARY
This contract does not grant discretionary power to Optimized, or its representatives, and the contract will not be assigned by Optimized without the consent of the Client. Optimized must secure client permission prior to effecting securities transactions for the Client in the client’s broker-dealer account(s).
Agenda Item #9.5:
3 Exhibit 1
Optimized Investment Partners, LLC.
2024 City Fee Schedule
Professional Services
President & CEO $350.00/hour
Senior Project Manager $250.00/hour
Project Analyst / Project Research $150.00/hour
Clerical Support $75.00/hour
● Additional Expenses
In addition to professional services (labor fees):
1) Out-of-pocket expenditures, such as travel and mileage, professional printing, and delivery charges for messenger and overnight packages will be charged at cost.
2) If Optimized retains Third Party Vendor(s) for Client (with Client’s advance approval), fees and cost will be billed to Client at
1.1X (times) fees and costs.
3) Consultant’s attendance or participation at any public meeting, in addition to 1 included virtual meeting in scope of services, whether such participation is in person, digital, video and/or telephonic (e.g., City Council, Planning Commission, Public City Board, other) requested by Client and are beyond those specifically identified in the Scope of Work will be billed at the professional services (hourly) fees as shown on this “Exhibit 1.” ● Charges for Court/Deposition/Expert Witness-Related Appearances Court-related (non-preparation) activities, such as court appearances, depositions, mediation, arbitration, dispute resolution and other expert witness activities, will be charged at a court rate of 1.5 times scheduled rates, with a 4-hour minimum.
Rates shall remain in effect until December 31, 2024.
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