City Council

City Hall, Council Chamber City of Santa Rosa 100 Santa Rosa Avenue Santa Rosa, CA 95404 City Council Regular Meeting Minutes - Final Tuesday, May 10, 2022 12:00 PM 1. CALL TO ORDER AND ROLL CALL Mayor C. Rogers called the meeting to order at 12:00 p.m. Present: 7 - Mayor Chris Rogers, Vice Mayor Eddie Alvarez, Council Member Victoria Fleming, Council Member Dianna MacDonald, Council Member Natalie Rogers, Council Member John Sawyer, and Council Member Tom Schwedhelm 2. ANNOUNCEMENT OF CLOSED SESSION ITEMS 2.1 CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Government Code Section 54956.8) Property: 4912 and 4914 Sonoma Highway, A portion of APNs 031-240-006 and 031-240-067 Agency Negotiators: Stephanie Valkovic, Associate Real Property Negotiator and Jill Scott, Real Property Negotiator Negotiating Parties: Samantha Zappelli Under Negotiations: Price and terms of payment. This item was heard under Item 18. 3. STUDY SESSION 3.1 REVIEW OF FISCAL YEAR 2022-23 OPERATIONS AND MAINTENANCE BUDGET AND CAPITAL IMPROVEMENT PROGRAM BUDGET In this Study Session, staff will present City Council with an overview of the funding requests for FY 2022-23, as well as perspectives as to overall funding considerations. The Study Session is held in advance of the Budget Hearings in June to provide the opportunity for City Council to ask questions, provide direction, and gain a full understanding of the budget and resulting financial implications for the City ahead of formal budget adoption in June. Information and department budgets will be presented in the following City of Santa Rosa Regular Meeting Minutes Page 2 of 18 City Council Regular Meeting Minutes - Final May 10, 2022 order: May 10, 2022 City-wide overview Administrative Departments: • City Council • City Manager’s Office • City Attorney’s Office • Communications & Intergovernmental Relations • Human Resources • Finance/Non-Departmental May 11, 2022 Departments continued: • Information Technology • Planning & Economic Development • Recreation & Community Engagement • Housing & Community Services • Fire Department • Police Department • Transportation & Public Works • Santa Rosa Water • Capital Improvement Program. Attachments: Staff Report Presentation Late Correspondence (Uploaded 5-10-2022) City Manager Marskeshia Smith made opening comments and provided an overview of the proposed budget. Alan Alton, Chief Financial Officer, provided opening comments and provided an overview of the study session noting post-COVID challenges, general fund assumptions and fiscal strategies. Veronica Conner, Budget and Financial Analyst, presented information on the proposed citywide General Fund budget,the City Council, and City Manager's budget. City Attorney Sue Gallagher presented the City Attorney's Office City of Santa Rosa Regular Meeting Minutes Page 3 of 18 City Council Regular Meeting Minutes - Final May 10, 2022 proposed budget. Alexa Popplewell, Interim Chief Communications Officer, presented the Communications & Intergovernmental Relations proposed budget. Amy Reeve, Human Resources Director, presented the proposed budget for Human Resources. Alan Alton, Chief Financial Officer, presented the proposed budget for Finance/Non-Departmental. Public comment on this item was taken on Wednesday, May 11, 2022. Mayor C. Rogers recessed the study session at 1:48 p.m. and continued it to Wednesday, May 11, 2022, at 9:00 a.m. Mayor C. Rogers reconvened the meeting at 4:00 p.m. for Regular Session. 4. ANNOUNCEMENT OF ROLL CALL (IF NEEDED) Present: 7 - Mayor Chris Rogers, Vice Mayor Eddie Alvarez, Council Member Victoria Fleming, Council Member Dianna MacDonald, Council Member Natalie Rogers, Council Member John Sawyer, and Council Member Tom Schwedhelm 5. REPORT, IF ANY, ON STUDY AND CLOSED SESSIONS 6. PROCLAMATIONS/PRESENTATIONS No public comments were made. 6.1 PROCLAMATION - NATIONAL PUBLIC WORKS WEEK Attachments: Proclamation Proclamation SIGNED (Uploaded 5-10-2022) Council Member N. Rogers read the proclamation and presented it to Public Works staff members Eddie Curiel, Streets Crew Supervisor, Tim Finegan, Parks Crew Supervisor, Fleet Equipment Mechanic Martin Barber, and Utility System Supervisor Jose Valencia. Assistant City Manager Jason Nutt made comments City of Santa Rosa Regular Meeting Minutes Page 4 of 18 City Council Regular Meeting Minutes - Final May 10, 2022 commending the work of staff. This item was presented 6.2 PROCLAMATION - WATER AWARENESS MONTH Attachments: Proclamation Council Member Sawyer read the proclamation and presented it to Claire Nordlie, Sustainability Coordinator, who highlighted water activities for the month of May. This item was presented. 6.3 PRESENTATION - WATER EFFICIENCY AWARDS Attachments: WUE Award - Coddintown Center WUE Award - Lane WUE Award - Park Landscape Maintenance WUE Award - Wylie Council Member MacDonald presented water use efficiency awards to Lisa and Lois Codding for Coddingtown Center, Richard Lane for water use efficiency at his home in Coffey Park, Richie Johnson for Park Landscape Maintenance, and Dan Wylie for water use efficiency at his 20-unit apartment complex. This item was presented. 6.4 PROCLAMATION - CHIEF RAINER NAVARRO Attachments: Proclamation Council Member Schwedhelm read the proclamation and presented it to former Police Chief Rainer Navarro. Mr. Navarro made comments thanking the Council and expressed appreciation for the City Manager for her leadership, and to the men and women in the Police Department. This item was presented. 7. STAFF BRIEFINGS No public comments were made. 7.1 COVID-19 RESPONSE UPDATE This will be a standing item on the agenda. No action will be taken City of Santa Rosa Regular Meeting Minutes Page 5 of 18 City Council Regular Meeting Minutes - Final May 10, 2022 except for possible direction to staff. City Manager Smith reported COVID-19 cases jumped 49% over the last two weeks, vaccination is still the most effective means to protect oneself from getting seriously ill, and the Food and Drug Administration reported a vaccine for children under the age of five could become available in June. Information on the status of COVID-19 in the community, testing locations and vaccine information can be found at socoemergency.org. 7.2 COMMUNITY EMPOWERMENT PLAN UPDATE This will be a standing item on the agenda. No action will be taken except for possible direction to staff. Magali Telles, Deputy Director - Community Engagement, reported the Month of May is Asian American Pacific Islander Heritage Month, the Multi-Cultural Roots Project in June will focus on Pride Month celebrating the LGBTQ community, and the Multi-Cultural Roots Team will be participating in the Junteenth Event. Deputy Director Telles provided an update the Mary Lou Armer Program events in the community, and announced the Wildfire Ready event being held in Courthouse Square. 7.3 STORM-READY Staff will announce that the City of Santa Rosa has been awarded and recognized as Storm-Ready through the National Weather Service. No action will be taken. Attachments: Attachment 1 Fire Marshall Paul Lowenthal, and Brian Garcia from the National Weather Service, reported the City received the highest recognition from the National Weather Service for being Storm Ready. Brian Garcia presented the award to the City of Santa Rosa. 8. CITY MANAGER’S/CITY ATTORNEY’S REPORTS Assistant City Manager Jason Nutt provided information on National Public Works Week Free Family Cityworks festival on May 18, 2022, in Courthouse Square and invited the public to attend. City of Santa Rosa Regular Meeting Minutes Page 6 of 18 City Council Regular Meeting Minutes - Final May 10, 2022 No public comments were made. 8.1 REPORT OF SETTLEMENTS AND ACTIVE LITIGATION The City Attorney will report on settlements over $50,000 through April 2022 as well as provide a summary of pending litigation against the City. Attachments: Litigation Report City Attorney Gallagher reported in the matter of Casey v. Santa Rosa when a settlement was reached in December 2021, the court recently approved a dismissal of the case with a $55,000 payment from the City to the Plaintiff as well as a $55,000 payment from the County to the Plaintiff; the challenge by Roseland Action regarding the approval of the Roseland Creek Master Plan, the case dismissed with a settlement of payment of attorney fees $39,777; in the matter of Grayson v. City of Santa Rosa, the case was settled at mediation with a payment of $5,000. City Attorney Gallagher reported there are 28 litigation cases currently pending that include five in receivership with three of the properties in receivership are now fully restored, seven general litigation matters with two set for trial in the next few months, 10 personal injury cases with three set for trial in coming months; three police cases with one stayed waiting completion of criminal proceeding and in the other two the City is looking for early dismissals; and three Writs of Mandate with two set for trial in the coming months. No public comments were made. 9. STATEMENTS OF ABSTENTION BY COUNCIL MEMBERS Vice Mayor Alvarez announced he would be abstaining on Item 14.1 due to his involvement in the cannabis industry. 10. MAYOR'S/COUNCIL MEMBERS’ REPORTS Council Member MacDonald attended the Board of Public Utilities Liaison meeting, and met with Tobacco Free Sonoma County. Council Member Sawyer thanked staff for the presentation made at the Board of Public Utilities Liaison Subcommittee meeting. City of Santa Rosa Regular Meeting Minutes Page 7 of 18 City Council Regular Meeting Minutes - Final May 10, 2022 Council Member Schwedhelm reported he attended the Police Swearing-in Ceremony, and attended a tour of 3575 Mendocino Ave., the former Journey's End location, now called Almenara Village. Council Member N. Rogers wished all mothers a Happy Mother's Day, reported she attended the Police Swearing in Ceremony, toured the Disability Services & Legal Center, hosted a Town Hall meeting with City Manager Smith, and on the importance of bringing awareness to mental health. Vice Mayor Alvarez reported he attended the North Bay League luncheon in Vallejo. Mayor C. Rogers attended the League of California Cities Mayors' & Councilmembers' Legislative Committee and report the Committee will be supporting SB 852 (Dodd) and opposing AB 2838 (O'Donnell) and opposing AB 2011 (Wicks). Mayor C. Rogers announced the opening night of the Wednesday Night Market in Courthouse Square on Wednesday, May 18. PUBLIC COMMENT Greg Damron, Tobacco Free Coalition Member, spoke providing an example on how easy it is to buy tobacco, in support of a tobacco retail license ordinance. Samuel Damron, Tobacco Free Coalition, spoke in support of a tobacco retail license ordinance. 10.1 MAYOR'S/COUNCIL MEMBERS' SUBCOMMITTEE AND LIAISON REPORTS (AND POSSIBLE COUNCIL DIRECTION TO BOARD REPRESENTATIVE ON PENDING ISSUES, IF NEEDED) 10.1.1 Council Subcommittee Reports Council Member Schwedhelm provided a brief report on the Long Term Financial Policy Audit Subcommittee, and Housing City of Santa Rosa Regular Meeting Minutes Page 8 of 18 City Council Regular Meeting Minutes - Final May 10, 2022 & Homeless Ad Hoc meeting. Council Member N. Rogers provided a brief report on Waterways Advisory Committee/Technical Advisory Committee meeting and announced Water Director Jennifer Burke is now the Chair of Technical Advisory Committee. Mayor Rogers provided a brief report on the Economic Development Subcommittee meeting and announced the Subcommittee will hold a Special Meeting on May 17, 2022, at 9:00 a.m. to discuss short term rentals. 10.1.2 Sonoma County Transportation Authority/Regional Climate Protection Authority (SCTA/RCPA) Mayor C. Rogers provided a brief report. 10.1.3 Sonoma County Water Agency (SCWA) - Water Advisory Committee 10.1.4 Association of Bay Area Governments (ABAG) 10.1.5 Sonoma County Agricultural Preservation and Open Space District Advisory Committee 10.1.6 Sonoma Clean Power Authority (SCPA) Mayor C. Rogers provided a brief report. 10.1.7 Zero Waste Sonoma (formerly known as Sonoma County Waste Management Agency (SCWMA)) 10.1.8 Groundwater Sustainability Agency (GSA) Council Member Schwedhlem provided a brief report. 10.1.9 Sonoma County Continuum of Care (CoC) Council Member Schwedhelm provided a brief report. 10.1.10 Renewal Enterprise District (RED) 10.1.11 Public Safety Subcommittee 10.1.12 Other Mayor C. Rogers provided a brief report on the bimonthly City of Santa Rosa Regular Meeting Minutes Page 9 of 18 City Council Regular Meeting Minutes - Final May 10, 2022 SMART meeting. 11. APPROVAL OF MINUTES - NONE. 12. CONSENT ITEMS No public comments were made. Approval of the Consent Agenda A motion was made by Vice Mayor Alvarez, seconded by Council Member Sawyer, to waive reading of the text and adopt Consent Items 12.1 through 12.6. The motion carried by the following vote: Yes: 7 - Mayor Rogers, Vice Mayor Alvarez, Council Member Fleming, Council Member MacDonald, Council Member Rogers, Council Member Sawyer, and Council Member Schwedhelm 12.1 MOTION - ADOPTION OF FINAL REPORT OF CITY COUNCIL PRIORITIES RECOMMENDATION: It is recommended by the City Manager that the Council, by motion, adopt the final report for the City of Santa Rosa Council Priority Setting workshop, held on February 24, 2022. Attachments: Staff Report Attachment 1 - Workshop Report Attachment 2 - Council Goals Presentation This Consent - Motion was approved. 12.2 RESOLUTION - APPROVAL OF COOPERATIVE PURCHASE OF DIGITAL HEALTH DEPARTMENT (DHD) SOFTWARE FROM TYLER TECHNOLOGIES, INC. TO UPDATE AND MODERNIZE FIRE INSPECTION SOFTWARE RECOMMENDATION: It is recommended by the Fire and Finance departments that the Council, by resolution, utilize the cooperative purchasing program in Section 3-08.160 of the City Code and approve and authorize the City Manager to negotiate and execute a Software as a Service Agreement for Digital Health Department (DHD) software from Tyler Technologies, Inc., Plano, Texas in an amount not to exceed $189,545 over 3 years to update and modernize antiquated software used for Fire Department related inspections and tracking compliance as required by state law. City of Santa Rosa Regular Meeting Minutes Page 10 of 18 City Council Regular Meeting Minutes - Final May 10, 2022 Attachments: Staff Report Resolution Exhibit A- DHD SaaS Contract Presentation This Consent - Resolution was adopted. RESOLUTION NO. RES-2022-087 ENTITLED: RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA ROSA APPROVING A COOPERATIVE PURCHASE AND SOFTWARE AS A SERVICE AGREEMENT FOR DIGITAL HEALTH DEPARTMENT SOFTWARE WITH TYLER TECHNOLOGIES, INC., PLANO, TEXAS IN AN AMOUNT NOT TO EXCEED $189,545 OVER 3 YEARS TO UPDATE AND MODERNIZE ANTIQUATED SOFTWARE USED FOR FIRE DEPARTMENT RELATED INSPECTIONS AND TRACKING COMPLIANCE AS REQUIRED BY STATE LAW 12.3 RESOLUTION - FIFTH AMENDMENT TO GENERAL SERVICE AGREEMENT NUMBER F001647 WITH ADT COMMERCIAL LLC RECOMMENDATION: It is recommended by the Finance Department, that the Council, by resolution, approve the Fifth Amendment to General Services Agreement number F001647 for inspection, maintenance, and repair services to maintain the operational functionality of fire suppression systems and their appurtenances, with ADT Commercial LLC, Fremont, California, to extend the Agreement one-year with a 3% increase in unit cost and increase compensation in the amount of $120,000, not to exceed a total amount of $708,144. Attachments: Staff Report Resolution Exhibit A Presentation This Consent - Resolution was adopted. RESOLUTION NO. RES-2022-088 ENTITLED: RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA ROSA APPROVING THE FIFTH AMENDMENT TO GENERAL SERVICES AGREEMENT NUMBER F001647 WITH ADT COMMERCIAL LLC 12.4 RESOLUTION - BID AWARD - PURCHASE ORDER FOR CURRENT MODEL CLASS 8 CAB AND CHASSIS WITH DUMP BODY TO PETERSON TRUCKS INC RECOMMENDATION: It is recommended by the Transportation and City of Santa Rosa Regular Meeting Minutes Page 11 of 18 City Council Regular Meeting Minutes - Final May 10, 2022 Public Works and Finance Departments that the Council, by resolution, approve issuance of a purchase order for the purchase of one (1) 2024 International Class 8 Cab and Chassis with Dump Body to Peterson Trucks, Inc, Santa Rosa, California, in the total amount not to exceed $225,604.05. Funds for this purchase are funded in Fiscal Year 2021-22 Transportation and Public Works Fleet Vehicle Replacement approved budget and does not have a fiscal impact on the General Fund. Attachments: Staff Report Resolution Presentation This Consent - Resolution was adopted. RESOLUTION NO. RES-2022-089 ENTITLED: RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA ROSA APPROVING A PURCHASE ORDER FOR THE PURCHASE OF ONE 2024 INTERNATIONAL CLASS 8 CAB AND CHASSIS WITH DUMP BODY TO PETERSON TRUCKS, INC., SANTA ROSA, CALIFORNIA IN AN AMOUNT NOT TO EXCEED $225,604.05 12.5 RESOLUTION - APPROVAL OF 2022 UPDATE TO SANTA ROSA CITYBUS TITLE VI PROGRAM RECOMMENDATION: It is recommended by the Transportation and Public Works Department that the Council, by resolution, approve the 2022 update to the Santa Rosa CityBus Title VI Program, addressing the Transit Division’s responsibilities under Title VI of the Civil Rights Act of 1964. Attachments: Staff Report Resolution Exhibit A - Title VI Program May 2022 Presentation This Consent - Resolution was adopted. RESOLUTION NO. RES-2022-090 ENTITLED: RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA ROSA APPROVING THE 2022 UPDATE TO THE SANTA ROSA CITYBUS TITLE VI PROGRAM 12.6 RESOLUTION - RATIFICATION OF MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE CITY OF SANTA ROSA AND SANTA ROSA CITY SCHOOLS, DATED OCTOBER 23, 2019, AUTHORIZING ALTERNATIVES TO CONSTRUCTION OF City of Santa Rosa Regular Meeting Minutes Page 12 of 18 City Council Regular Meeting Minutes - Final May 10, 2022 AFFORDABLE HOUSING OR SCHOOL FACILITIES ON FIR RIDGE DRIVE, LOT “F” (APN 173-620-030) AND EXTENDING PERFORMANCE DATE TO OCTOBER 23, 2022; AUTHORIZE EXECUTION AND RECORDATION OF A QUITCLAIM DEED SUBJECT TO SPECIFIED CONDITIONS; AND AUTHORIZE CITY MANAGER TO TAKE SUCH OTHER ACTIONS AS NEEDED TO RECORD AND ENFORCE THE TERMS OF THE MOU RECOMMENDATION: It is recommended by the City Attorney and the Housing & Community Services Department that the Council, by resolution: 1) ratify the Memorandum of Understanding (MOU) between the City of Santa Rosa and Santa Rosa City Schools, dated October 23, 2019, authorizing alternatives to construction of affordable housing or school facilities on Fir Ridge Drive, Lot “F” (APN 173-620-030) and extending performance date to October 23, 2022; 2) authorize the recordation of the MOU; 3) authorize the execution and recordation of a Quitclaim Deed subject to the terms of the MOU; and 4) authorize the City Manager to take such other actions as needed to record and enforce the terms of the MOU. Attachments: Staff Report Attachment 1 - Fir Ridge MOU Dated October 23, 2019 Attachment 2 - Resolution RES-2019-155 (Adopted 10/14/2019) Attachment 3 - Council Meeting Minutes 10-14-2019 Attachment 4 - Fir Ridge MOU dated June 28, 2016 Attachment 5 - Fir Ridge Location Map Resolution Presentation This Consent - Resolution was adopted. RESOLUTION NO. RES-2022-091 ENTITLED: RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA ROSA RATIFYING THE MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE CITY OF SANTA ROSA AND SANTA ROSA CITY SCHOOLS, DATED OCTOBER 23, 2019, AUTHORIZING ALTERNATIVES TO CONSTRUCTION OF AFFORDABLE HOUSING OR SCHOOL FACILITIES ON FIR RIDGE DRIVE, LOT "F" (APN 173-620-030); AUTHORIZING THE RECORDATION OF THE MOU; AUTHORIZING THE EXECUTION AND RECORDATION OF A QUITCLAIM DEED SUBJECT TO THE TERMS OF THE MOU; AND AUTHORIZING THE CITY MANAGER TO TAKE SUCH OTHER ACTIONS AS NEEDED TO RECORD AND ENFORCE THE TERMS OF THE MOU 13. PUBLIC COMMENT ON NON-AGENDA MATTERS City of Santa Rosa Regular Meeting Minutes Page 13 of 18 City Council Regular Meeting Minutes - Final May 10, 2022 Pamela Granger, Chair of Tobacco Free Sonoma County Community Coalition, spoke in support of a tobacco retail license ordinance. Bob Harder spoke on the number of projects going out to bid in Santa Rosa, and the lack of civil engineers applying due to Santa Rosa's salaries being lower in comparison to other cities in the county. Victoria Yanez spoke expressing anger at the Council for the implementation of a policy having Santa Rosa police officers cite homeless persons staying on private property. 14. REPORT ITEMS 14.1 REPORT - UTILITY CERTIFICATE FOR ECO FARM HOLDINGS, INC, LOCATED AT 369 TODD ROAD, ASSESSOR’S PARCEL NUMBER 134-102-023 (FILE NO. UC21-003) BACKGROUND: On May 28, 2002, the Santa Rosa City Council adopted Resolution No. 25260, which granted a Utility Certificate (File No. UC02-004) to the existing uses operating on nine unincorporated properties with contaminated wells along Todd Road, including the subject property located at 369 Todd Road which was operating as an auto body shop at the time the certificate was granted. On January 28, 2020, the Sonoma County Permit & Resource Management Department granted a limited five-year term Use Permit for an indoor cannabis manufacturing, distribution, and transportation operation located within three existing industrial buildings, located at 369 Todd Road. One of the conditions of the approval requires that the applicant/operator obtain a City of Santa Rosa Utility Certificate prior to building permit issuance. The approved change of use requires the approval of a new Utility Certificate. RECOMMENDATION: It is recommended by the Planning and Economic Development Department that Council, by resolution, approve a Utility Certificate (File No. UC21-003) to extend City water service to provide fire suppression water to Eco Farm Holdings, Inc, located at 369 Todd Road (APN 134-101-023), which is outside the City City of Santa Rosa Regular Meeting Minutes Page 14 of 18 City Council Regular Meeting Minutes - Final May 10, 2022 boundary, but within the Ultimate Urban Boundary. Attachments: Staff Report Attachment 1 - Disclosure Form Attachment 2 - Location Map Attachment 3 - Context Map Attachment 4 - General Plan and Urban Boundary Attachment 5 - Plans Attachment 6 - County Conditions of Approval Attachment 7 – UC02-004 Project File Attachment 8 – City Council Resolution No. 25260 Attachment 9 – Council policy 300-02 Resolution Exhibit A - Utility Certificate Presentation Kristinae Toomians, Senior Planner, presented and answered questions from Council. No public comments were made. A motion was made by Council Member Fleming, seconded by Council Member Sawyer, to waive reading of the text and adopt RESOLUTION NO. RES-2022-092 ENTITLED: RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA ROSA APPROVING A UTILITY CERTIFICATE FOR WATER SERVICE FOR ECO FARM HOLDINGS, INC., AN UNINCORPORATED PROPERTY, LOCATED AT 369 TODD ROAD, ASSESSOR'S PARCEL NUMBER 134-101-023 (FILE NO. UC21-003) The motion carried by the following vote: Yes: 6 - Mayor Rogers, Council Member Fleming, Council Member MacDonald, Council Member Rogers, Council Member Sawyer, and Council Member Schwedhelm Recused: 1 - Vice Mayor Alvarez 14.2 REPORT - APPROVAL OF SECTION 115 TRUST AGREEMENTS AND APPROPRIATION OF INITIAL FUNDING BACKGROUND: In September 2021, the staff presented pension funding strategies to the City Council at a study session. One such strategy is to establish an Internal Revenue Code Section 115 Trust (Trust), which is an actively managed fund, outside the City’s investment portfolio, that may only be used to pay pension obligations. The City would use this Trust initially to reduce the current unfunded City of Santa Rosa Regular Meeting Minutes Page 15 of 18 City Council Regular Meeting Minutes - Final May 10, 2022 accrued liability (UAL) associated with its CalPERS pensions. Staff proposes an initial deposit to the Trust of $10,000,000 from the fiscal stability funds assigned in the General Fund reserves, and $4,400,000 from Santa Rosa Water (SRW) enterprise funds reserves to pre-fund pension obligations. Annual contributions to the Trust from the General Fund and SRW will begin after the City’s existing Pension Obligation Bonds are paid off in 2024. By redirecting budget the debt service payments to Trust contributions, the City will benefit from annual contributions to build up Trust balances without increasing the budget. The City’s strategy relative to the Trust is to use it as a long-term investment vehicle to address the City’s CalPERS UAL. The initial funding goal will be to accumulate a balance in the trust equal to the General Fund’s highest scheduled annual UAL payment; then to use the Trust in combination with CalPERS valuation reports to achieve 100% funded status; and finally to utilize the Trust as a pension stabilization fund by using the accumulated funds to offset future higher-than-usual normal cost or UAL payments. RECOMMENDATION: It is recommended by the Finance Department that the Council, by resolution: 1) approve the execution of the Adoption Agreement for the Post-Employment Benefits Trust (Adoption Agreement) between the City and PFM Asset Management LLC (PFMAM) incorporating and adopting the Trust Agreement as well as approving the Trust Administrative Services Agreement and Investment Policy Statements included as exhibits to the Adoption Agreement; 2) authorize the City Manager, Assistant City Manager and the Chief Financial Officer as officers with authority to execute necessary documents and agreements to carry out the trust services on behalf of the City including, but not limited to the Adoption Agreement and Trust Administrative Services Agreement; and 3) approve an initial deposit of $10,000,000 from the General Fund reserves assigned for fiscal stability, and $4,400,000 from Santa Rosa Water enterprise fund reserves to the Section 115 Trust for the purpose of pre-funding pension obligations. City of Santa Rosa Regular Meeting Minutes Page 16 of 18 City Council Regular Meeting Minutes - Final May 10, 2022 Attachments: Staff Report Attachment 1 - Proposal For Trust Admin Services Resolution Exhibit A - Adoption Agreement Presentation Chief Financial Officer Alan Alton presented and answered questions from Council. Ellen Clark, PFM, was available to answer questions from Council. PUBLIC COMMENT Bob Harder spoke in support of adoption of the resolution. A motion was made by Council Member Sawyer, seconded by Council Member Schwedhelm, to waive reading of the text and adopt RESOLUTION NO. RES-2022-093 ENTITLED: RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA ROSA APPROVING AN ADOPTION AGREEMENT FOR THE POST-EMPLOYMENT BENEFITS TRUST BETWEEN THE CITY AND PFM ASSET MANAGEMENT LLC INCORPORATING AND ADOPTING THE TRUST AGREEMENT, TRUST ADMINISTRATIVE SERVICES AGREEMENT AND INVESTMENT POLICY STATEMENTS FOR THE POST-EMPLOYMENT BENEFITS TRUST, AND APPROVING INITIAL DEPOSITS TO THE TRUST The motion carried by the following vote: Yes: 7 - Mayor Rogers, Vice Mayor Alvarez, Council Member Fleming, Council Member MacDonald, Council Member Rogers, Council Member Sawyer, and Council Member Schwedhelm 15. PUBLIC HEARINGS - NONE. 16. WRITTEN COMMUNICATIONS 16.1 NOTICE OF FINAL MAP - COLGAN VILLAGE PHASE 1 - Provided for information. Attachments: Notice of Submittal Location Map This item was received and filed. 16.2 NOTICE OF FINAL MAP - COLGAN VILLAGE PHASE 2 - Provided for City of Santa Rosa Regular Meeting Minutes Page 17 of 18 City Council Regular Meeting Minutes - Final May 10, 2022 information. Attachments: Notice of Submittal Location Map This item was received and filed. 17. PUBLIC COMMENTS ON NON-AGENDA MATTERS Anonymous spoke on being an environmentalist since 1970, and the amount of emissions being put into the environment. 18. ANNOUNCEMENT OF CONTINUED CLOSED SESSION ITEMS, RECESS TO CLOSED SESSION IN THE MAYOR’S CONFERENCE ROOM, RECONVENE TO OPEN SESSION, AND ANNOUNCEMENTS No public comments were made. Mayor C. Rogers recessed to closed session at 6:01 p.m. to discuss Item 2.1 as listed on the agenda. 2.1 CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Government Code Section 54956.8) Property: 4912 and 4914 Sonoma Highway, A portion of APNs 031-240-006 and 031-240-067 Agency Negotiators: Stephanie Valkovic, Associate Real Property Negotiator and Jill Scott, Real Property Negotiator Negotiating Parties: Samantha Zappelli Under Negotiations: Price and terms of payment. This item was received and filed. Mayor C. Rogers adjourned closed session and reconvened to open session at 6:06 p.m. Present: 7 - Mayor Chris Rogers, Vice Mayor Eddie Alvarez, Council Member Victoria Fleming, Council Member Dianna MacDonald, Council Member Natalie Rogers, Council Member John Sawyer, and Council Member Tom Schwedhelm REPORT ON CLOSED SESSION City Attorney Gallagher reported Council met in closed session on Item 2.1 and gave direction to the Real Property Negotiator and no final action was taken. City of Santa Rosa Regular Meeting Minutes Page 18 of 18 City Council Regular Meeting Minutes - Final May 10, 2022 19. ADJOURNMENT OF MEETING Mayor C. Rogers adjourned the meeting at 6:06 p.m. in memory of community members Warren Hedgpeth and Stan Gow and acknowledged their work in the community and their commitment to Santa Rosa. The next meeting will be held on Wednesday, May 11, 2022, at 9:00 a.m. to resume the Study Session - Review of Fiscal Year 2022-23 Operations and Maintenance Budget and Capital Improvement Program Budget. 20. UPCOMING MEETINGS 20.1 UPCOMING MEETINGS LIST Attachments: Upcoming Meetings List This item was received and filed. Approved on: July 26, 2022 /s/ Stephanie A. Williams, City Clerk