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2025/01/28 City Council Resolution 2025-006 RESOLUTION NO. 2025-006 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK APPROVING THE MEASURE H FUNDING AGREEMENT BETWEEN THE COUNTY OF SONOMA AND CITY OF ROHNERT PARK AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE SAME WHEREAS, on March 5, 2024, the voters of the County of Sonoma("County") approved Measure H, the Improved and Enhanced Local Fire Protection, Paramedic Services and Disaster Response Initiative, which added Article VIII to Chapter 12 of the County Code ("County Ordinance"); and WHEREAS,the County Ordinance enacts a retail transactions and use tax in the County at the rate of one half of a cent per dollar($0.005); and WHEREAS,the operative date for the retail transactions and use tax is October 1,2024;and WHEREAS, the County Ordinance allocates five and one half percent(5.5%) of the retail transactions and use tax collected in the County to the City of Rohnert Park("City"); and WHEREAS,tax monies received under the County Ordinance may be used only to improve and enhance fire-related services, which include,but are not limited to, wildfire prevention, preparedness, emergency response, and vegetation management; recruitment and retention of local firefighters; updates to essential equipment and facilities;transfer of funds among designated local agencies or entities; implementation costs; and countywide expenditures; and WHEREAS, tax monies received under the County Ordinance may not be used to supplant the City's historical general fund contribution for providing fire related services; and WHEREAS, the County Ordinance requires, among other things, that the County enter into funding agreements with eligible recipient agencies, including the City, to ensure consistency in distributing funds, reporting, overseeing the use of funds, and administering the County Ordinance. NOW,THEREFORE,BE IT RESOLVED by the City Council of the City that it does hereby authorize and approve the Measure H Funding Agreement with the County, which is attached hereto as Exhibit"A" and incorporated herein by this reference. BE IT FURTHE RESOLVED that the City Manager is hereby authorized and directed to execute the same for and on behalf of the City. DULY AND REGULARLY ADOPTED this 28t •' o anuary, 2025. CIT ' I ' O NERT PARK AM ' tp,74-ice, Mayor ATTEST: Sylvia Lopez u erk 1 OVED AS TO FORM: r ., r APP e archetta Kenyon, City Attorney Attachments: Exhibit A Adams: , `•'7 Elward: Rodriguez Sanborn: Guidice: Ayes: ( Noes: ( Ct,) bsent: ( ) Abs in: ( C�5) Resolution 2025-006 Page 2 of 2 1 MEASURE H FUNDING AGREEMENT BETWEEN THE COUNTY OF SONOMA AND THE CITY OF ROHNERT PARK This Agreement is made and entered into as of _______________________ (“Effective Date”) by and between the County of Sonoma (“County”) and the City of Rohnert Park (“City”) (collectively, “Parties”). RECITALS WHEREAS, on March 5, 2024, the voters of Sonoma County approved Measure H, “The Improved and Enhanced Local Fire Protection, Paramedic Services and Disaster Response Transactions and Use Tax Ordinance”, which added Article VIII to Chapter 12 of the Sonoma County Code (“Ordinance”); and WHEREAS, the Ordinance provides funding to achieve effective and efficient regional fire response services throughout the County; and WHEREAS, the County is charged with a fiduciary duty in administrating the tax proceeds generated by the Ordinance and implementation of the Ordinance is the responsibility of an Oversight Committee which reports directly to the County Board of Supervisors; and WHEREAS, Section 12-61 of the Ordinance states: “The Expenditure Plan set forth in section 12-66 is intended as a specific and legally binding and enforceable limitation on how the proceeds of the transactions and use tax imposed by this Ordinance may be spent”; and WHEREAS, as part of the Ordinance Expenditure Plan, Section 12-66(D) provides allocation percentages for entities receiving funds generated by the Ordinance (“Recipients”); and WHEREAS, as part of independent Oversight Committee and performance audit, Section 12- 67(B) of the Ordinance requires Recipients to prepare and distribute to the Oversight Committee specific information in annual reports not later than December 31st of each year; and WHEREAS, as part of the oversight and administration of the Ordinance, Section 12-68(A) of the Ordinance requires a funding agreement between the County and Recipients before any tax proceeds are distributed; and WHEREAS, Section 12-65 of the Ordinance requires that Ordinance proceeds shall not be used to supplant the City’s historical proportional allocation to fire related services and establishes a baseline maintenance of effort requirement that shall not be violated; and WHEREAS, Section 12-68(A) of the Ordinance further requires that the funding agreement between the County and Recipients shall establish existing revenue used to fund existing personnel in order to establish the baseline for measuring compliance with the requirement that sales tax proceeds generated by the Ordinance shall only be used to pay for additional personnel; and 2 WHEREAS, the County and Recipients desire to have a uniform agreement to ensure consistency in distribution, reporting, oversight, and administration of the funds generated by the Ordinance. NOW, THEREFORE, in consideration of the foregoing, the County and the City do hereby agree as follows: 1. The Parties agree to comply with the purpose, intent, use of fund limitations and specific implementation provisions of the Ordinance, which became operative October 1, 2024. 2. Allocation of Funds. As provided in Section 12-66(D), the allocation percentage of funds generated by the Ordinance to be received by the City is five and one-half percent (5.5%), to be used for the purposes set forth in Sections 12-66(B) and 12-66(C) of the Ordinance. As provided in Section 12-66(E), the successor of any enumerated entity in Section 12-66(D) shall receive the funds set forth in that section. 3. Distribution of Funds. The County shall distribute the sales tax proceeds to the City on a quarterly basis based on the following schedule: July – September proceeds will be distributed by the 10th of December; October – December proceeds will be distributed by the 10th of March; January – March proceeds will be distributed by the 10th of June; and April – June proceeds will be distributed by the 10th of September. The first distribution of tax proceeds from the County to the City per the Ordinance and this Agreement will be the by the 10th of March 2025 for the October – December 2024 collection date. 4. Baseline maintenance of effort. As provided in Section 12-65, Ordinance proceeds shall not be used to supplant the City’s historical general fund contribution for providing fire related services. The proportional allocation to determine maintenance of effort is the City’s baseline operating budget for Fiscal Year 2021-2022, which includes ad valorem property taxes, parcel taxes or any other taxes and/or fees in support of the operating cost for providing fire related services, but excludes limited term funds such as capital projects, grants, grant matches or other one-time revenues, will be reported on the City’s Annual Report in Exhibit A. The Parties intend and agree to execute an Amendment to this Funding Agreement prior to the submission of the Annual Report, which sets forth the City’s proportional allocation. If the proportional allocation to the City in any subsequent fiscal year is materially less than the Fiscal Year 2021-2022 allocation, then the jurisdiction that provides funding shall be deemed to violate the maintenance of effort requirement. 5. Baseline personnel funding. For the purposes of Section 12-68(A) of the Ordinance, as provided in the operating budget for Fiscal Year 2021-2022, the City’s annual existing 3 revenues used to fund existing personnel in order to establish the baseline for measuring compliance with the requirement that sales tax proceeds shall only be used to pay for additional personnel will be reported on the City’s Annual Report in Exhibit A. The Parties intend and agree to execute an Amendment to this Funding Agreement prior to the submission of the Annual Report, which sets forth the City’s baseline personnel funding. 6. 30-year limit on Bonded Indebtedness. As provided in Sections 12-63 and 12-66(C), the City may issue limited tax bonds to finance any program or project in accordance with the Ordinance Expenditure Plan, as allowed by applicable law and as approved by their respective legislative body. The maximum bonded indebtedness shall not exceed the projected 30-year distribution of the City’s annual allocation and any costs associated with the issuance of such bonds shall be accounted for within the program category in which the bond proceeds are used. 7. Reporting Requirements. a. In order to ensure consistency in distribution, reporting, oversight, and administration of the funds generated by the Ordinance as set forth in Section 12- 67(B) of the Ordinance, annual reports to the Oversight Committee shall be made by the City not later than December 31st of each year in the form attached hereto as Exhibit A. b. If the City receives funding as part of the Countywide Expenditures from the Sonoma County Fire Chiefs Association (“SCFCA”) pursuant to Section 12- 66(C)(6) of the Ordinance, the City shall prepare an annual report to be provided to SCFCA no later than September 30th to be included in the SCFCA’s annual report to the Oversight Committee. 8. Appropriations Limit. As provided in Section 12-64 of the Ordinance, revenue generated by the Ordinance shall be attributed to the appropriations limit of the County, and not to the appropriations limit of any Recipients. 9. Records. The Parties shall retain all records regarding expenditures of funds generated by the Ordinance for a period of three (3) years from the date of the expenditure and make available as soon as practicable to each Party. 10. Audit authority of Oversight Committee. Subject to Sections 12-67(C) and 12-67(D) of the Ordinance, the Oversight Committee shall have the authority to audit the receipt and expenditures as set forth in the annual reports submitted by Recipients. 11. Over Allocation. If the County over allocates funds to the City for any reason, then the City agrees to return the amount of such over allocation to COUNTY to be re-allocated per Section 12-66(D). 4 12. County Costs. As provided in Section 12-66(C)(5), the Parties agree the County is authorized to allocate funds collected pursuant to the Ordinance to pay for expenses incurred which relate to the implementation of the tax, including payments necessary for the operation of the Oversight Committee and Ordinance reporting. The Parties further agree that any costs that exceed the County of Sonoma ACTTC Administrative Fee allocation as set forth in Section 12-66(D) shall be removed from the total tax proceeds prior to distribution of funds to all respective agencies. 13. Indemnification. The City shall defend, indemnify and hold harmless the County, its officers, officials, and employees, from and against any and all demands, claims, actions, litigation or other proceedings, liability, damages and costs (including but not limited to attorney fees), that arise out of, pertain to or relate in whole or in part to the County’s obligations under this agreement, excepting only matters that are based upon the County's gross negligence or willful misconduct. 14. Notices. Any notice which may be required under this Agreement shall be in writing, shall be effective when received, and shall be given by personal service, or by certified or register mail, return receipt requested, to the addresses set forth below, or to such addresses which may be specified in writing to the parties hereto. TO CITY: City of Rohnert Park Finance Director 130 Avram Avenue Rohnert Park, CA 94928 TO COUNTY: County of Sonoma Auditor-Controller-Treasurer-Tax Collector 585 Fiscal Drive, #100 Santa Rosa, CA 95403 15. Additional Acts and Documents. Each party agrees to do all such things and take all such actions, and to make, execute and deliver such other documents and instruments, as shall be reasonably requested to carry out the provisions, intent and purpose of this Agreement. 16. Integration. This Agreement represents the entire agreement of the Parties with respect to the subject matter hereof. No representations, warranties, inducements or oral agreements have been made by any of the Parties except as expressly set forth herein, or in other contemporaneous written agreements. 17. Amendment. This Agreement may not be changed, modified or rescinded except in writing, signed by all parties hereto, and any attempt at oral modification of this Agreement shall be void and of no effect. 5 18. Independent Agencies. The Parties renders their services under this Agreement as independent agencies. None of either Party’s agents or employees shall be agents or employees of the other Party. 19. Assignment. The Agreement may not be assigned, transferred, hypothecated or pledged by any party without the express written consent of the other party. 20. Successors. This Agreement shall be binding upon the successor(s), assignee(s) or transferee(s) of the County or the City as the case may be. This provision shall not be construed as an authorization to assign, transfer, hypothecate or pledge this Agreement other than as provided above. Notwithstanding the foregoing, per Section 12-66(E)(2) of the Ordinance, in the event any enumerated entity in Section 12-66(D) consolidates with or is annexed by another entity, the successor agency shall receive the funds allocated to the enumerated entity. 21. Severability. Should any part of this Agreement be determined to be unenforceable, invalid, or beyond the authority of either party to enter into or carry out, such determination shall not affect the validity of the remainder of this Agreement which shall continue in full force and effect; provided that, the remainder of this Agreement can, absent the excised portion, be reasonably interpreted to give effect to the intensions of the Parties. 22. Limitations. a. All obligations of the County under the terms of this Agreement are expressly subject to the County’s continued authorization to collect and allocate the sales tax proceeds generated by the Ordinance. If for any reason the County’s right to collect or expend such sales tax proceeds is terminated, suspended, or modified, in whole or in part, the County shall promptly notify the City, and the parties shall consult on a course of action. If, after twenty-five (25) business days, a course of action is not agreed upon by the parties, this Agreement shall be deemed terminated by mutual or joint consent; provided, that any future obligation to fund from the date of the notice shall be expressly limited by and subject to (i) the lawful ability of the County to expend sales tax proceeds for the purposes of the Agreement; and (ii) the availability, taking into consideration all the obligations of the County under all outstanding contracts, agreements to other obligations of COUNTY, of funds for such purposes. b. All obligations of the City under the terms of this Agreement are expressly subject to the City’s continued authorization to receive and spend the sales tax proceeds generated by the Ordinance. If for any reason the City’s right or ability to collect or expend such sales tax proceeds is terminated, suspended, or modified, in whole or in part, the City shall promptly notify the County, and the 6 parties shall consult on a course of action. If, after twenty-five (25) business days, a course of action is not agreed upon by the parties, this Agreement shall be deemed terminated by mutual or joint consent; provided, that any future obligation to fund from the date of the notice shall be expressly limited by and subject to (i) the lawful ability of the City to expend sales tax proceeds for the purposes of the Agreement; and (ii) the availability, taking into consideration all the obligations of the City under all outstanding contracts, agreements to other obligations of the City, of funds for such purposes. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date. COUNTY OF SONOMA CITY OF ROHNERT PARK By:____________________ By:________________________ Board of Supervisors, Chairperson Marcela Piedra, City Manager ATTEST: By:________________________ By:________________________ Clerk of the Board of Supervisors Sylvia Lopez Cuevas, City Clerk APPROVED AS TO LEGAL FORM FOR COUNTY: FOR CITY: _______________________ ____________________________ County Counsel Michelle Marchetta Kenyon, City Attorney 7 EXHIBIT A ANNUAL REPORT TO MEASURE H OVERSIGHT COMMITTEE Pursuant to the requirements of Sonoma County Code section 12-67(B), this is the annual report of the allocation of funds received by the reporting agency under the Sonoma County voter-approved Measure H, “The Improved and Enhanced Local Fire Protection, Paramedic Services and Disaster Response Transactions and Use Tax Ordinance” (“Ordinance”). Name of Agency receiving Measure H funds:_______________________________________ Reporting period: FY 24-25 (4/26/24 to 6/30/25 (with April-June proceeds received 9/10/25)) 1. Detail of the activities related to the Ordinance this reporting period, based on attached budget to actual report, balance sheet, and fund balance report. 2. Summary of the positions and start up, equipment and facilities that were funded with revenue from the Ordinance. 3. The specific activities that support fire prevention, including vegetation management. 4. Update on the status of facility capital improvement projects that are funded with revenue from the Ordinance. 5. Demonstration of compliance with the requirement that revenue from the Ordinance shall be used for enhancing operations. Proportional budget allocation for fire related services: FY 21-22 $ _________; FY 21-22 ____%; this reporting period: $__________; ____%. Personnel expenditures: FY 21-22 $___________; this reporting period $___________. 6. Any material changes in service needs within the agency’s jurisdiction or countywide. 7. Any remaining funds from allocations provided in previous years, and an explanation for proposed use of such funds. 8 Required Attachments: Annual Budget Budget to Actual Report Balance Sheet Fund Balance Report Most recent annual audit and/or other independent financial review FY 21-22 budget documents showing baseline dollar figure for maintenance of effort and personnel expenditures.