CITY OF HEALDSBURG
CITY COUNCIL/REDEVELOPMENT SUCCESSOR AGENCY
REGULAR MEETING AGENDA
City Hall Council Chamber Meeting Date: February 22, 2022 401 Grove Street Time: 6:00 PM
Healdsburg, CA 95448 Date Posted: February 16, 2022
(707) 431-3317
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CORONAVIRUS (COVID-19) ADVISORY NOTICE
Consistent with Government Code section 54953(e), and in light of the declared state of emergency, the Regular Meeting will not be physically open to the public and all City Council Members will be teleconferencing into the meeting via Zoom. To maximize public safety while still maintaining transparency and public access, members of the public can listen to the meeting by using the hyperlink below and may provide public comment by Zoom during the public comment period.
How to Observe the Meetings
To maximize public safety while maintaining transparency and public access, the Healdsburg City Council will be using Zoom Webinar service to allow remote participation. Members of the public who only wish to watch the meeting live or recorded can do so by using the link http://healdsburgca.iqm2.com/Citizens/default.aspx or watching it on the City’s Facebook Page www.facebook.com/cityofhealdsburg.
To Watch the Meeting and Submit Public Comment as Part of the Zoom Webinar:
To join by computer, tablet, or mobile device:
1. Go to https://zoom.us/join and type in the Webinar ID: 897 7715 4394 or follow this link:
https://cityofhealdsburg-org.zoom.us/j/89777154394 (Pre-registration for the meeting is not required.)
2. Fill in your full name, verify you are not a robot (if required), and click “Join”.
3. If the meeting host has started the Webinar, you should join automatically. If the meeting host has not started the Webinar, remain in the Webinar and it will start shortly.
To join by phone:
1. Dial 669-900-9128 or 253-215-8782 or 346-248-7799.
2. Enter the meeting ID: 897 7715 4394 and press # #.
3. If the meeting host has started the meeting, you should join automatically. If the meeting host has not started the meeting, remain in the meeting and it will start shortly.
City Council/RSA Regular Meeting Agenda
February 22, 2022
To Submit Public Comment
By computer, tablet, or mobile device:
1. In the bottom center of the screen is a hand icon, click on “Raise Hand”. The hand icon will place you in line to speak.
2. When it is your turn to comment, the meeting moderator will call upon you to comment.
State your first name, last name, address, and comment. Each speaker will be given no more than three (3) minutes to make your comment.
3. When you are done commenting, please remember to lower hand.
By phone:
1. Press *9 to raise your hand.
2. When it is your turn to comment, the meeting moderator will call the last four digits of your phone number. Press *6 to speak at that time. State your first name, last name, address, and comment. Each speaker will be given no more than three (3) minutes to make your comment.
3. At the conclusion of your comments or when three minutes has passed, the meeting host will remove your ability to talk.
Americans with Disabilities Act Accommodations
Any member of the public who needs accommodations should email the City Clerk at [email protected] or by calling 707-431-3317. The City Clerk will use their best efforts to provide reasonable accommodations to provide as much accessibility as possible while also maintaining public safety in accordance with the city procedure for resolving reasonable accommodation requests. All reasonable accommodations offered will be listed on the city website at https://www.ci.healdsburg.ca.us/406/ada---public-accessibility.
City Council/RSA Regular Meeting Agenda
February 22, 2022
1. CALL TO ORDER/ROLL CALL
A. Pledge of Allegiance
B. Approval of Agenda
2. REPORT ON CLOSED SESSION(S)
3. ANNOUNCEMENTS/PRESENTATIONS
A. Proclamation declaring February 2022 as Black History Month in the City of Healdsburg
B. Innovation, Automation, and Sustainability of Internal Services Receive a presentation on recently completed projects that have resulted in improved efficiency and effectiveness of City operations. Staff will also provide a look ahead at projects currently underway.
C. Annual Police Department Update
Receive a presentation on police department activity during the past year. Staff will also provide a look ahead at projects and goals for the current year.
4. CITY MANAGER REPORTS
A. COVID-19 Update, Water Supply Update and Update on State Funding for Utility Accounts
5. PUBLIC COMMENTS ON ITEMS ON THE CONSENT CALENDAR AND NON
AGENDA ITEMS
This time is set aside to receive comments from the public regarding matters of general interest not on the agenda, but related to City Council/RSA business. Pursuant to the Brown Act, however, the City Council cannot consider any issues or take action on any requests during this comment period. Public comment on non-agenda items is limited to thirty (30) minutes total for all speakers, with each speaker given no more than three (3) minutes. If there are more than ten (10) audience/public comment speakers, the Mayor may reduce each speaker’s time from three (3) minutes so that all speakers have an equal time to speak. At the Mayor’s discretion, the public comment period may be extended past 30 minutes. Members from the public wishing to speak on a Consent Agenda item should notify the Mayor during Public Comments.
6. CONSENT CALENDAR
The following items listed on the Consent Calendar are considered routine in nature or have been previously reviewed by the Council and require little or no further discussion by the Council, City Council/RSA Regular Meeting Agenda
February 22, 2022
public, or applicant and action will be taken by the City Council by a single motion. A Councilmember may request that an item be removed from the Consent Calendar and action taken separately. Consent by a majority of the Councilmembers present will be required in order to remove the item. In the event an item is removed, the matter will be considered immediately following the adoption of the Consent Calendar.
A. Community Services Request for Road Closures on March 17, 2022 for the St.
Patrick's Day Parade
By motion, approve the Community Services Department's request for (1) a road closure on Healdsburg Avenue and (2) rolling road closures on Healdsburg Avenue, Matheson Street, Center Street, and Plaza Street for the St. Patrick’s Day Parade on March 17, 2022.
B. Amendment to Patrick Clark Consulting - Negotiation Services Agreement Adopt a Resolution amending the existing negotiation services agreement with Patrick Clark Consulting to increase the not-to-exceed amount by $25,000 to $150,000 and authorizing the City Manager to execute the agreement amendment.
C. Repealing Chapter 8.08 (Garbage and Refuse) of the Healdsburg Municipal Code and Enacting Chapter 8.08 (Solid Waste)
Pass an Ordinance Repealing Chapter 8.08 (Garbage and Refuse) of the Healdsburg Municipal Code and Enacting Chapter 8.08 (Solid Waste).
D. Resolution in support of Burbank Housing's application for FY 2022-2023 CDBG and HOME grant funding for the 155 Dry Creek affordable housing project Adopt a Resolution in support of Burbank Housing Development Corporation's application for FY 2022-2023 Community Development Block Grant funding and HOME Investment Partnership funding in the amounts of $900,000 and $400,000 for the 155 Dry Creek affordable housing project.
E. Adoption of Resolution Authorizing Remote Meetings
Adopt a Resolution authorizing remote meetings of the City Council and other legislative bodies.
7. PUBLIC HEARINGS
None.
8. OLD BUSINESS
A. Villa Chanticleer Operational Transition
City Council/RSA Regular Meeting Agenda
February 22, 2022
Discuss and provide feedback on the upcoming operational transition process and considerations for the Villa Chanticleer.
B. 2021-22 Mid-Year Budget Report
Adopt a Resolution rescinding Resolution No. 95-2021 and amending the fiscal year 2021-22 budget.
9. NEW BUSINESS
A. Review and Update the Pension Liability Funding Policy Adopt a Resolution rescinding Resolution No. 51-2019 and approving the updated Pension Liability Funding Policy.
10. COUNCIL REPORTS ON MATTERS OF INTEREST OCCURRING SINCE
PREVIOUS REGULAR MEETING/EXPENSE REIMBURSEMENT REPORTS
11. WRITTEN COMMUNICATIONS
12. ADJOURN CITY COUNCIL / RSA MEETING
13. FUTURE AGENDA ITEMS
A. Future Agenda Items
Some of the items planned for the March 7, 2022 Council Meeting include, but are not limited to:
• City Council Goal Setting Session
Some of the items planned for the March 21, 2022 Council Meeting include, but are not limited to:
• Development Agreement Amendment with Comstock
• GMO Annual Report
• Housing Element Annual Progress Report
• General Plan Annual Report
Some of the items planned for the April 4, 2022 Council Meeting include, but are not limited to:
• Reserve Policy Review and Update
• Housing Land Trust Update
City Council/RSA Regular Meeting Agenda
February 22, 2022
• Bid award for the L&M Motel Rehab Project
• Council budget development check-in
These agenda items may be delayed or removed before the meeting. Please review the agenda for that meeting when it is published to ensure that you can voice your opinion about issues you are concerned about.
CITY OF HEALDSBURG
PROCLAMATION
A PROCLAMATION OF THE CITY COUNCIL OF THE CITY
OF HEALDSBURG DECLARING FEBRUARY 2022 AS BLACK
HISTORY MONTH IN THE CITY OF HEALDSBURG
WHEREAS, the month of February is officially celebrated as a national event honoring Black History and recognizing the heritage and achievements of African Americans; and WHEREAS, African Americans have played a central role in our nation’s history and the contributions African Americans have made and continue to make are an integral part of our society; and
WHEREAS, the migration of African Americans to all parts of the United States and throughout the world have led to countless indelible contributions in the fields of science, medicine, law, social justice, athletics, the arts, government, and more; and WHEREAS, the City of Healdsburg recognizes and values diversity, equity, and inclusion within our community; and
WHEREAS, the presence of African Americans in our community continues to enhance the quality of life in the City of Healdsburg; and
WHEREAS, the City of Healdsburg understands that African Americans have endured egregious discrimination and bigotry throughout the course of our Nation’s history, conflicting with the core values of the City of Healdsburg; and
WHEREAS, Black History Month calls on our collective need to recognize and combat racism, and to continue to build a community that embraces all ages, races, religions, and genders; and
WHEREAS, Black History is American History; and
WHEREAS, Black History Month is a time where all citizens are encouraged to reflect on past successes and challenges of Black communities, and to look to the future to ensure freedom, equity, and inclusiveness.
NOW, THEREFORE, BE IT PROCLAIMED, the City Council of the City of Healdsburg hereby declares February 2022 as Black History Month is the City of Healdsburg.
DATED: February 22, 2022
SO ORDERED:
________________________________
Osvaldo Jimenez, Mayor
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Attachment: Black History Month Proclamation (3504 : Black History Month Proclamation)
CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: February 22, 2022
SUBJECT: Community Services Request for Road Closures on March 17, 2022 for the St. Patrick's Day Parade
PREPARED BY: Matt Milde, Recreation Supervisor
STRATEGIC INITIATIVE(S):
Maintain and Enhance Public Health and Safety
Provide Resident-Driven Community Services
RECOMMENDED ACTION(S):
By motion, approve the Community Services Department's request for (1) a road closure on Healdsburg Avenue and (2) rolling road closures on Healdsburg Avenue, Matheson Street, Center Street, and Plaza Street for the St. Patrick’s Day Parade on March 17, 2022.
COMMUNITY ENGAGEMENT/OUTREACH:
All merchants along the parade route will be notified in writing prior to the February 22 City Council meeting of the proposed road closures and provided with event details and contact information. The Community Services Department will promote the event through special event marketing tactics used for all public event outreach.
BACKGROUND:
The St. Patrick’s Day Parade is an annual Healdsburg tradition where members of the community gather the morning of March 17 to walk the streets of Healdsburg Ave and around Plaza Park in celebration of the St. Patrick’s Day holiday. The former B&B Lounge was historically the event’s lead organizer during the first 24 years of the parade. In 2019, representatives from the B&B lounge were no longer able to commit to planning the event and coordination of the event transitioned to the City.
The Community Services Department took the lead role in coordinating the parade with assistance from staff in the Public Works, Police, and Fire Departments. The event successfully took place in 2019, but was cancelled in 2020 and 2021 due to the impacts of COVID-19. If approved, Community Services would again coordinate the event in 2022 with continued collaboration from the community and other City departments. This year’s event is proposed to take place on Thursday, March 17, 2022.
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The proposed parade route, event framework, and road closures would be the same as in previous years. City staff in the Police, Fire, and Public Works Departments have reviewed and conditionally approved the event logistics and application. The proposed road closures require City Council approval to proceed with the event.
DISCUSSION/ANALYSIS:
The Community Services Department is requesting the following road closures and rolling road closures on March 17, 2022:
1. Road closures: Healdsburg Avenue between Matheson and Piper Streets from 6:00am – 9:00am.
2. Rolling road closures from approximately 7:15am – 7:45am:
a. Matheson Street between Healdsburg Ave. and Center Street; and b. Center Street between Matheson Street and Plaza Street; and c. Plaza Street between Center Street and Healdsburg Ave The following precautionary measures will ensure a safe and enjoyable event for race participants:
• Community Services, Police, and Public Works staff will be on duty to work the event. • Event organizers will follow all health and safety guidelines issued by the California Department of Public Health and Sonoma County Health Department at the time the event takes place. It is anticipated at this time that there will be no restrictions for outdoor events for the proposed event date.
• Barricades with signage will be placed along the parade route to delineate to the road closure perimeter.
• City staff will supply, set up, and remove the traffic control items (signs, barricades, traffic cones, vehicle blockades) for the closure.
• City staff and police officers will be utilized along the parade route to insure safe passage through intersections and areas where any potential interface with vehicular traffic. • City staff will be in communication with Sonoma County Transit to ensure there are minimal impacts to the bus schedule.
• Event organizers will abide by all required conditions within the event permit as stipulated by the Healdsburg Police, Fire, and Public Works Departments.
ENVIRONMENTAL STEWARDSHIP:
The event is located in the downtown corridor, accessible by transit, bicycle, and walking. Bike parking will be made available at the parade start for participants wishing to walk in the parade.
Recology will provide portable toilet units to accommodate the increased foot traffic downtown.
No consumable products will be sold or distributed at the event.
ALTERNATIVES:
Deny road closures. The event would not be able to safely take place on the public right of way.
City staff would be required to identify an alternative parade route or cancel the event.
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FISCAL IMPACT:
Staffing and associated event costs will be funded from approved department budgets for Community Services, Police, and Public Works.
ENVIRONMENTAL ANALYSIS:
The project is categorically exempt pursuant to California Environmental Quality Act (“CEQA”) Guidelines Sections 15304 Class 4(e) Minor Alterations to Land, and 15061(b), based on findings contained in the CEQA Guidelines that the project is “A minor temporary use of land having negligible or permanent effects on the environment including carnivals, sales of Christmas trees, etc.”
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CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: February 22, 2022
SUBJECT: Amendment to Patrick Clark Consulting - Negotiation Services Agreement
PREPARED BY: Renee Senander, Human Resources Manager
STRATEGIC INITIATIVE(S):
Provide Effective Governance
RECOMMENDED ACTION(S):
Adopt a Resolution amending the existing negotiation services agreement with Patrick Clark Consulting to increase the not-to-exceed amount by $25,000 to $150,000 and authorizing the City Manager to execute the agreement amendment.
COMMUNITY ENGAGEMENT/OUTREACH:
Not applicable.
BACKGROUND:
The City uses both outside negotiators and City management staff to represent the City Council during labor negotiations with employee groups. An outside negotiator has specific experience in negotiations and can bring a broad array of talents and insight to the process.
On February 1, 2017, the City executed an agreement with Patrick Clark Consulting for negotiation services in the amount not to exceed $50,000. In 2017 the City utilized Patrick Clark Consulting to negotiate new contracts with the City’s four employee groups. At the conclusion of those negotiations, there was $14,157 remaining on the contract.
On March 19, 2019, the City Council approved amending the agreement with Patrick Clark Consulting for negotiation services to increase the not-to-exceed amount by $25,000 to $75,000 as the City was in negotiations with the four groups over the impacts of the draft Classification and Compensation Study.
On August 3, 2020, the City Council approved amending the agreement with Patrick Clark Consulting for negotiation services to increase the not-to-exceed amount by $25,000 to $100,000 as the City prepared to begin negotiations with the four groups negotiating new contracts.
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On May 3, 2021, the City Council approved amending the agreement with Patrick Clark Consulting for negotiation services to increase the not-to-exceed amount by $25,000 to $125,000 as the City prepared to begin negotiations with the four groups negotiating new contracts.
DISCUSSION/ANALYSIS:
In Fall of 2021, the City successfully executed multi-year agreement extensions with 2 of the 4 labor groups. The two remaining groups have contracts that will expire on June 30, 2022. The City will begin bargaining new contracts with both groups in March 2022, with the goals of having executed agreements in place before existing contracts expire and in time to incorporate outcomes into the 2-year budget planning process.
As of time of this writing, approximately $7,843 is left on the current contract with Patrick Clark Consulting. The proposed action is requesting an increase of $25,000 to the not to exceed amount of the current agreement. Staff anticipate the proposed increase will be adequate to complete negotiations and leave additional contracted funds available for labor relations support as needed.
ENVIRONMENTAL STEWARDSHIP:
Not applicable.
ALTERNATIVES:
The City Council may reject the proposed action, in which case staff asks that the Council provide additional direction.
FISCAL IMPACT:
The negotiation services costs were anticipated, and the fiscal year 2021-22 budget has sufficient appropriations to cover this agreement.
ENVIRONMENTAL ANALYSIS:
The Project is exempt from the provisions of the California Environmental Quality Act (“CEQA”) pursuant to Title 14, the California Code of Regulations, Section 15378(b)(5).
ATTACHMENT(S):
Resolution
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CITY OF HEALDSBURG
RESOLUTION NO. xx-2022
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG AMENDING THE EXISTING NEGOTIATION
SERVICES AGREEMENT WITH PATRICK CLARK
CONSULTING TO INCREASE THE NOT-TO-EXCEED
AMOUNT BY $25,000 TO $150,000 AND AUTHORIZING THE
CITY MANAGER TO EXECUTE THE AGREEMENT
AMENDMENT
WHEREAS, on February 1, 2017 the City executed an agreement with Patrick Clark Consulting for negotiation services in the amount not to $50,000; and WHEREAS, in 2017 the City utilized Patrick Clark Consulting to negotiate new contracts with the City’s four employee groups and at the conclusion of those negotiations, there was $14,157 remaining on the contract; and
WHEREAS, On March 19, 2019 the City Council approved amending the agreement with Patrick Clark Consulting for negotiation services to increase the not-to-exceed amount by $25,000 to $75,000 as the City was in negotiations with the four groups over the impacts of the draft Classification and Compensation Study; and
WHEREAS, On August 3, 2020 the City Council approved amending the agreement with Patrick Clark Consulting for negotiation services to increase the not-to-exceed amount by $25,000 to $100,000 as the City prepared to enter contract negotiations; and WHEREAS, On May 3, 2021 the City Council approved amending the agreement with Patrick Clark Consulting for negotiation services to increase the not-to-exceed amount by $25,000 to $125,000 as the City was in negotiations with the four employee groups; and WHEREAS, staff is requesting an increase of $25,000 to the not to exceed amount of the current agreement to complete the current negotiations; and WHEREAS, the City’s action to increase the not-to-exceed amount in a contract for a labor consultant is not a “project” pursuant to the California Environmental Quality Act (“CEQA”).
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg hereby:
1. Amends the existing negotiation services agreement with Patrick Clark Consulting.
2. Approves an increase to the not-to-exceed amount by $25,000 to $150,000.
3. Authorizes the City Manager to execute the agreement amendment.
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Attachment: Resolution (3503 : Patrick Clark Consulting Agreement) Resolution No. xx-2022
4. Finds the Project is not subject to the California Environmental Quality Act because the Council’s action is not a “project” for purposes of CEQA.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Healdsburg this 22nd day of February 2022 by the following vote:
AYES: Councilmembers: ( )
NOES: Councilmembers: ( )
ABSENT: Councilmembers: ( )
ABSTAINING: Councilmembers: ( )
SO ORDERED: ATTEST:
__________________________________ ____________________________________ Osvaldo Jimenez, Mayor Raina Allan, City Clerk
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Attachment: Resolution (3503 : Patrick Clark Consulting Agreement)
CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: February 22, 2022
SUBJECT: Repealing Chapter 8.08 (Garbage and Refuse) of the Healdsburg Municipal Code and Enacting Chapter 8.08 (Solid Waste)
PREPARED BY: Raina Allan, City Clerk
STRATEGIC INITIATIVE(S):
Provide Effective Governance
RECOMMENDED ACTION(S):
Pass an Ordinance Repealing Chapter 8.08 (Garbage and Refuse) of the Healdsburg Municipal Code and Enacting Chapter 8.08 (Solid Waste).
COMMUNITY ENGAGEMENT/OUTREACH:
Not applicable.
BACKGROUND:
At its November 15, 2021, meeting the City Council introduced for first reading by title only, waiving further reading of the text, “An Ordinance Repealing Chapter 8.08 (Garbage and Refuse) of the Healdsburg Municipal Code and Enacting Chapter 8.08 (Solid Waste).” At it December 7, 2021, meeting the City Council adopted Ordinance No. 1211 upon second reading.
DISCUSSION/ANALYSIS:
This ordinance has been agendized for second reading again in order to address publication issues.
ENVIRONMENTAL STEWARDSHIP:
Not applicable.
ALTERNATIVES:
None.
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FISCAL IMPACT:
Not applicable.
ENVIRONMENTAL ANALYSIS:
Enactment of this Ordinance is exempt from the provisions of the California Environmental Quality Act ("CEQA"), pursuant to CEQA Guidelines Section 15308 (Actions by Regulatory Agencies for Protection of the Environment), in that the ordinance will strength requirements for handling of solid waste and shall result in reduction of short-term climate pollutants. The City Council also considers the project exempt from review under the California Environmental Quality Act under the “common sense” exemption, CEQA Guidelines section 15061(b)(3)), since “it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.”
ATTACHMENT(S):
SB1383 Cover Ordinance
SB1383 Ordinance Revisions - Clean
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CITY OF HEALDSBURG
ORDINANCE NO. ____
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG REPEALING CHAPTER 8.08 (GARBAGE AND
REFUSE) OF THE HEALDSBURG MUNICIPAL CODE AND
ENACTING CHAPTER 8.08 (SOLID WASTE)
WHEREAS, state recycling law, Assembly Bill 939, the California Integrated Waste Management Act of 1989 (California Public Resources Code Section 40000, et seq., as subsequently amended from time to time), requires cities and counties to reduce, reuse, and recycle (including composting) solid waste generated in their City to the maximum extent feasible before any incineration or landfill disposal of waste, to conserve water, energy, and other natural resources, and to protect the environment; and
WHEREAS, state recycling law, Assembly Bill 341 of 2011 places requirements on commercial and multi-family property owners to arrange for recycling services and on local governments to implement a commercial and multi-family solid waste recycling program; and WHEREAS, state organics recycling law, Assembly Bill 1826 of 2014, requires commercial businesses and multi-family property owners or managers that generate a specified threshold amount of organic waste per week to arrange for recycling services for that organic waste; requires cities to implement a recycling program to divert organic waste from commercial businesses and multi-family premises subject to the law; and requires cities to report to CalRecycle on their progress in implementing an organic waste recycling program; and WHEREAS, SB 1383, the Short-lived Climate Pollutant Reduction Act of 2016, requires CalRecycle to develop regulations to reduce organics in landfills as a source of methane. The regulations adopted by CalRecycle place requirements on multiple entities including cities, counties, special districts, residential households, commercial businesses and business owners, multi-family property owners or managers, commercial edible food generators, haulers, selfhaulers, food recovery organizations, and food recovery services to support achievement of statewide organic waste disposal reduction targets; and WHEREAS, SB 1383, the Short-lived Climate Pollutant Reduction Act of 2016, requires cities, counties, and special districts that provide solid waste collection services jurisdictions to adopt and enforce an ordinance or other enforceable mechanisms to implement relevant provisions of SB 1383 regulations, including source separation requirements; Now therefore, the City Council of the City of Healdsburg does herby ordain as follows:
SECTION 1. Repeal and Replacement of Chapter 8.08 of the Healdsburg Municipal Code.
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Attachment: SB1383 Cover Ordinance (3505 : SB 1383 Ordinance) Ordinance No. -2021
Chapter 8.08 (Garbage and Refuse) of the Healdsburg Municipal Code is hereby repealed and replaced with Chapter 8.08 (Solid Waste) as fully set forth in Exhibit A.
SECTION 2. Compliance with the California Environmental Quality Act.
The City Council finds and determines that enactment of this Ordinance is exempt from the provisions of the California Environmental Quality Act ("CEQA"), pursuant to CEQA Guidelines Section 15308 (Actions by Regulatory Agencies for Protection of the Environment), in that the ordinance will strength requirements for handling of solid waste and shall result in reduction of short-term climate pollutants. The City Council also considers the project exempt from review under the California Environmental Quality Act under the “common sense” exemption, CEQA Guidelines section 15061(b)(3)), since “it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” SECTION 3. Severability.
The City Council hereby declares every section, paragraph, sentence, clause and phrase of this ordinance to be severable. If any section, paragraph, sentence, clause or phrase of this ordinance is for any reason found to be invalid or unconstitutional, such invalidity, or unconstitutionality shall not affect the validity or constitutionality of the remaining sections, paragraphs, sentences, clauses or phrases.
SECTION 4. Inclusion in the Healdsburg Municipal Code.
It is the intention of the Healdsburg City Council that the text as amended in Section 1 of this ordinance be made a part of the Healdsburg Municipal Code and that the text may be renumbered or re-lettered and the word “Ordinance” be changed to “Section,” “Chapter,” or any other appropriate word or phrase consistent with this intention.
SECTION 5. Effective Date and Duration.
This Ordinance of the City of Healdsburg shall take effect and be in force 30 days after the date of its passage.
SECTION 6. Publication.
Within fifteen (15) days of its passage, this ordinance shall be published at least once in a newspaper of general circulation published and circulated in the City of Healdsburg, along with the names of the members of the City Council voting for and against its passage.
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Attachment: SB1383 Cover Ordinance (3505 : SB 1383 Ordinance) Ordinance No. -2021
This Ordinance was introduced at a regular meeting of the Healdsburg City Council on the 15th day of November 2021, and was adopted at a regular meeting of the Healdsburg City Council on the 6th day of December, 2021, by the following vote:
AYES: Councilmembers: ( )
NOES: Councilmembers: ( )
ABSENT: Councilmembers: ( )
ABSTAIN: Councilmembers: ( )
SO ORDERED ATTEST
________________________________ _________________________________ Evelyn L. Mitchell, Mayor Raina Allan, City Clerk
Dated: ___________________________
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Attachment: SB1383 Cover Ordinance (3505 : SB 1383 Ordinance) Chapter 8.08 SOLID WASTE
Article I. In General
8.08.010 Definitions.
For the purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section:
“Authorized collector” means such persons, firms or corporations collecting and delivering for disposal, recycling or processing solid waste (other than solid waste generated by a permitted building project) originating in the City and doing so under a contract or franchise agreement with the City.
“Back-haul” means generating and transporting organic materials to a destination owned and operated by the generator using the generator’s own employees and equipment, as defined in 14 CCR section 189881(a)(66)(A).
“CCR” means the California Code of Regulations.
“City Manager” means the City Manager of the City of Healdsburg, or their designee. “Collection” means to take physical possession of solid waste at, and remove from, the place of generation for transport to a solid waste facility or other recovery activity. “Commercial business” or “commercial” means a firm, partnership, proprietorship, joint-stock company, corporation, or association, whether for-profit or nonprofit, strip mall, industrial facility, or a multi-family dwelling that consists of five or more units, as further defined in 14 CCR section 18982(a)(6).
“Commercial edible food generator” means a tier one or tier two commercial edible food generator as defined in 14 CCR Section 18982(a)(73) and (a)(74). Food recovery organizations and food recovery services are not commercial edible food generators. “Community composting” means any activity that composts green material, agricultural material, food material, and vegetative food material, alone or in combination, and the total amount of feedstock and compost on-site at any one time does not exceed 100 cubic yards and 750 square feet, as specified in 14 CCR Section 17855(a)(4).
“Composting” means the process of controlled biological decomposition of organic waste. "Construction and demolition debris" or "C&D" means used or discarded materials resulting from construction, renovation, remodeling, repair, demolition, excavation or construction clean-up operations on any pavement or structure.
"Container" or "collection container" means, for the purpose of this chapter, any bin, box or cart used for the purpose of holding solid waste for collection. “Debris box” means any ten (10) to forty (40) cubic yard container, or any compactor provided by a solid waste generator, placed in the public right-of-way, on City property, private property, or elsewhere in the service area, which is procured by a solid waste generator for their use in the
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Attachment: SB1383 Ordinance Revisions - Clean (3505 : SB 1383 Ordinance) collection of their solid waste. Debris boxes are serviced by means of lifting the entire container, including all contents, onto a designated collection vehicle. “Disposal” means the final disposition of solid waste at a solid waste facility permitted for disposal. “Diversion” means activities reducing or eliminating the amount of solid waste from solid waste disposal, and which return these materials to use in the form of raw materials for new, reused, or reconstituted products, which meet the quality standards necessary for commercial use, or for other purposes of reuse.
“Dwelling unit” means one (1) or more rooms with internal access between all rooms, which provide complete independent living facilities for at least one (1) family, including provisions for living, sleeping, eating, cooking, bathing, and sanitary facilities. “Edible food” means food intended for human consumption, as further defined in 14 CCR section 18982(a)(18). For the purposes of this ordinance, edible food is not solid waste if it is recovered and not discarded. Nothing in this chapter requires or authorizes the recovery of edible food that does not meet the food safety requirements of the California Retail Food Code. “Exempt waste” means biohazardous or biomedical waste, hazardous waste, medical waste, regulated radioactive waste, waste that is volatile, corrosive, or infectious, waste treatment or processing sludge, contaminated soil and dirt, contaminated concrete, contaminated asphalt, automobiles, automobile parts, boats, boat parts, boat trailers, internal combustion engines, leadacid batteries, any matter or materials which are not acceptable for disposal at a solid waste landfill as defined in AB 939 and subsequent legislation, and those wastes under the control of the Nuclear Regulatory Commission.
“Food recovery organization” means an entity that engages in the collection or receipt of edible food from commercial edible food generators and distributes that edible food as part of food recovery either directly or through other entities as further defined in 14 CCR section 18982(a)(25), including, but not limited to:
A. A food bank as defined in Section 113783 of the Health and Safety Code; B. A nonprofit charitable organization as defined in Section 113841 of the Health and Safety code; and,
C. A nonprofit charitable temporary food facility as defined in Section 113842 of the Health and Safety Code.
“Food recovery service” means a person or entity that collects and transports edible food from a commercial edible food generator to a food recovery organization or other entities for food recovery, as further defined in 14 CCR section 18982(a)(26). A food recovery service is not a commercial edible food generator for the purposes of this chapter. “Food scraps” means food scraps and trimmings and other putrescible waste that result from food production, preparation, cooking, storage, consumption or handling. Food scraps includes but is not limited to meat, fish and dairy waste, fruit and vegetable waste and grain waste. Food scraps does not include exempt waste.
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Attachment: SB1383 Ordinance Revisions - Clean (3505 : SB 1383 Ordinance) “Garbage” means all non-recyclable packaging and other waste attributed to normal activities of a service unit. Garbage must be generated by and at the service unit wherein the garbage is collected.
Garbage does not include recyclable materials, organic materials, debris from construction and demolition, large items, e-waste, universal waste, hazardous waste, household hazardous waste or exempt waste.
“Generators,” for the purpose of this chapter, means a person or entity, including commercial generators and residential generators, that is responsible for the initial creation of solid waste or organic materials at any premises, and includes “organic waste generator” as defined in 14 CCR Section 18982(a)(48).
“Organic material” or "organic waste" means solid waste containing material originated from living organisms and their metabolic waste products, including but not limited to food scraps, green material, landscape and pruning waste, organic textiles and carpets, lumber, wood, paper products, printing and writing paper, manure, biosolids, digestate, and sludges or as otherwise defined in 14 CCR section 18982(a)(46).
“Person” means any person, firm or corporation, acting as principal, agent or officer, servant or employee, for himself, or for any other person, firm or corporation. “Place of business” shall mean any hotel, motel, trailer park, restaurant, market, hospital, or any business, commercial or industrial establishment where there is any accumulation of solid waste. "Premises" means any tract or parcel of land with or without habitable buildings or appurtenant structures. For purposes of this chapter the word premises includes residential and commercial uses of the land, whether owned, leased, rented or subrented, including every dwelling house, dwelling unit, apartment house or multiple-dwelling building, trailer or mobile home park, store, restaurant, rooming house, hotel, motel, office building, department store, manufacturing, processing or assembling shop or plant, warehouse and every other place or premises where any person resides, or any business is carried on or conducted within the City. “Prohibited container contaminants” means (1) discarded materials placed in the designated Recyclables container that are not identified as acceptable source separated recyclables for the authorized collector’s designated recyclables collection container; (2) discarded materials placed in the designated organic materials collection container that are not identified as acceptable source separated organic materials for the authorized collector’s designated organic materials collection container; and (3) discarded materials placed in the garbage container that are acceptable source separated recyclables and/or source separated organic materials to be placed in authorized collector’s designated organic materials collection container and/or designated recyclables collection container, and (4) exempt waste placed in any container. “Receptacle” means any heavy plastic or cart, bin, or similar type container approved by the City Manager for the accumulation of solid waste.
"Recyclable materials" means any material designated to be separated from the waste stream for purposes of recycling by the authorized collector in accordance with applicable law. "Recycling" means the process of collecting, sorting, cleansing, treating and reconstituting materials that would otherwise become garbage and returning them for use or reuse in the form of
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Attachment: SB1383 Ordinance Revisions - Clean (3505 : SB 1383 Ordinance) raw materials for new, used or reconstituted products which meet the quality standard necessary to be used in the marketplace. Recycling does not include transformation as defined in Public Resources Code § 40201.
“Residential” means, for the purposes of this chapter, any premises consisting of between one (1) and four (4) dwelling units, and onsite domestic uses accessory to these dwelling units. A multifamily dwelling that consists of fewer than (5) dwelling units is residential, for the purposes of this chapter.
“Self-haul” means a person who hauls solid waste, organic waste or recovered material they have generated to another person. Self-hauler also includes a person who back-hauls waste, as defined in 14 CCR section 18982(a)(66).
"Solid waste" has the same meaning as defined in Public Resources Code Section 40191, which defines solid waste as all putrescible and nonputrescible solid and semisolid wastes, including garbage, recyclable materials, organic materials, demolition and construction wastes, bulky waste, discarded home and industrial appliances, manure, vegetable or animal solid or semisolid wastes, and other discarded solid and semisolid wastes with the exception that Solid Waste does not include any of the following wastes: (1) Hazardous waste, as defined in the Public Resources Code Section 40141, (2) Radioactive waste regulated pursuant to the State Radiation Control Law (Chapter 8 (commencing with Section 114960) of Part 9 of Division 104 of the Health and Safety Code) and (3) Medical waste regulated pursuant to the State Medical Waste Management Act (Part 14 (commencing with Section 117600) of Division 104 of the Health and Safety Code). Untreated medical waste shall not be disposed of in a solid waste landfill, as defined in Public Resources Code Section 40195.1. Medical waste that has been treated and deemed to be Solid Waste shall be regulated pursuant to Division 30 of the Public Resources Code. Recyclable materials and organic materials are a part of solid waste.
“Solid waste collection service” means collection of solid waste originating in the City, by a persons, firms or corporations, and doing so under a contract or franchise agreement with the City. “Solid waste facility” or “facility” means a solid waste transfer or processing station including a material recovery Facilities, a recycling facility, a composting facility, a gasification facility, a transformation facility, an engineered municipal solid waste conversion facility, and a disposal facility. Solid waste facility additionally includes a solid waste operation that may be carried out pursuant to an enforcement agency notification, as provided in regulations adopted by CalRecycle. “Source separate” means the process of removing recyclable materials and organic materials from solid waste at the place of generation, prior to collection, and placing such materials into separate containers designated for recyclable materials and organic materials, as defined in 14 CCR section 17402.5(b)(4).
“Tier one commercial edible food generator” means a commercial edible food generator that is one of the following as defined in 14 CCR section 18982(a):
A. Supermarkets with gross annual sales of $2,000,000 or more B. Grocery store with a total facility size equal to or greater than 10,000 square feet.
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Attachment: SB1383 Ordinance Revisions - Clean (3505 : SB 1383 Ordinance) C. Food service provider, which means an entity primarily engaged in providing food services to institutional, governmental, commercial, or industrial locations of others based on contractual arrangements with these types of organizations.
D. Wholesale food vendor, which means a business or establishment engaged in the merchant wholesale distribution of food, where food (including fruits and vegetables) is received, shipped, stored, prepared for distribution to a retailer, warehouse, distributor, or other destination.
E. Food distributor, which means a company that distributes food to entities including, but not limited to, supermarkets and grocery stores.
“Tier two commercial edible food generator” means a commercial edible food generator that is one of the following as defined in 14 CCR section 18982(a):
A. Restaurant with 250 or more seats, or a total facility size equal to or greater than 5,000 square feet.
B. Hotel with an on-site food facility and 200 or more rooms.
C. Health facility with an on-site food facility and 100 or more beds.
D. Large venue, which means a permanent venue facility that annually seats or serves an average of more than 2,000 individuals within the grounds of the facility per day of operation of the venue facility. For purposes of this ordinance, a venue facility includes, but is not limited to, a public, nonprofit, or privately owned or operated stadium, amphitheater, arena, hall, amusement park, conference or civic center, zoo, aquarium, airport, racetrack, horse track, performing arts center, fairground, museum, theater, or other public attraction facility. For purposes of this ordinance and implementation of 14 CCR, Division 7, Chapter 12, a site under common ownership or control that includes more than one large venue that is contiguous with other large venues in the site, is a single large venue.
E. Large event, which means an event, including, but not limited to, a sporting event or a flea market, that charges an admission price, or is operated by a local agency, and serves an average of more than 2,000 individuals per day of operation of the event, at a location that includes, but is not limited to, a public, nonprofit, or privately owned park, parking lot, golf course, street system, or other open space when being used for an event..
F. A state agency with a cafeteria with 250 or more seats or total cafeteria facility size equal to or greater than 5,000 square feet.
G. A local education agency facility with an on-site food facility. “Local Education Agency” means a school district, charter school, or county office of education that is not subject to the control of City or county regulations related to Solid Waste, as defined in 14 CCR Section 18982(a)(40).
8.08.020 Application of Chapter.
The provisions of this chapter shall not be applicable to hauling and disposition by the City of Healdsburg, or any employee, agent, or authorized representative of the City of Healdsburg, of any solid waste that have been lawfully removed from City property or from or near a public rightof-way.
8.08.030 Violations and Penalties.
Any violation of this chapter shall be an infraction and a public nuisance and may be punished or enforced in accordance with the provisions of Chapter 1.12 HMC. Three or more subsequent
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Attachment: SB1383 Ordinance Revisions - Clean (3505 : SB 1383 Ordinance) violations of this chapter by the same person or persons within a 12-month period may be charged and prosecuted as a misdemeanor. Any enforcement officer as defined in HMC 1.12.050 shall have the duty and authority to enforce the provisions of this chapter. Any violation shall be subject to administrative penalties under HMC 1.12.140 in the following amounts:
1. A fine not exceeding one hundred dollars for a first violation;
2. A fine not exceeding two hundred dollars for a second violation of the same provision of this code within any twelve consecutive month period;
3. A fine not exceeding five hundred dollars for each additional violation of the same provision of this code within any twelve consecutive-month period.
8.08.040 Right of entry to inspect.
Any enforcement officer as defined HMC 1.12.050 and any person designated by the Sonoma County Waste Management Agency to conduct inspections are authorized to conduct any inspections or other investigations as reasonably necessary to further the goals of this chapter, subject to applicable laws.
8.08.050 Special Collection to Abate Nuisance
Whenever a City enforcement officer determines that there exists an accumulation of solid waste or construction and demolition debris upon any premises in the City in a manner that is subject to abatement under HMC 1.12.110 or HMC 1.12.150, the City enforcement officer may require upon the completion of enforcement proceedings under HMC Chapter 1.12 that the authorized collector to immediately call at such premises and remove such solid waste or construction and demolition debris. The owner of such premises shall pay the authorized collector for the removal.
Article II. Collection
8.08.060 Regular disposal of solid waste required.
Every person occupying or having charge or control of any premises where there is any accumulation of solid waste shall cause the same to be so removed or disposed of at least once each calendar week. No person shall cause or permit combustible solid waste to accumulate at any place or on any premises under his charge or control for a period in excess of one calendar week.
8.08.070 Storage of refuse in receptacles.
It shall be unlawful and a public nuisance for any person to keep, accumulate or permit to be accumulated any solid waste upon any lot or parcel of land, or on any public or private lane, place, street, alley, or drive, unless kept in a receptacle designed for enclosing and storing the same in a sanitary manner. All receptacles containing refuse shall be kept closed except when necessarily opened to permit refuse to be taken therefrom or deposited therein.
8.08.080 Tampering with receptacles.
It shall be unlawful and a public nuisance for any person, other than the owner or lawful possessor or an authorized agent of the owner or lawful possessor, to tamper or meddle with any receptacle,
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Attachment: SB1383 Ordinance Revisions - Clean (3505 : SB 1383 Ordinance) or to remove the contents thereof from the location where the same shall have been placed by such owner, lawful possessor, or authorized agent of either of them.
8.08.090 Placement of hazardous materials in receptacles prohibited.
It shall be unlawful and a public nuisance for any person to place, store or accumulate any hazardous material(s) in a receptacle. A violation of this section shall be a misdemeanor and a public nuisance and may be punished or enforced in accordance with Chapter 1.12 HMC. The term “hazardous material,” as used in this section, shall mean any material or waste as defined in Chapter 6.5 of Division 20 of the California Health and Safety Code. To the extent that disposal, placement, storage or accumulation of hazardous waste is otherwise subject to regulation and enforcement by federal or state law, this section shall be inapplicable.
8.08.100 Exclusive right of City.
The public necessity, health, safety and general welfare of the City require that the exclusive right to collect and remove, or cause to be collected and removed, solid waste including construction and demolition debris within the City shall vest in the City, and it shall be unlawful for any person, except as otherwise provided in this article, to collect or remove solid waste including construction and demolition debris within the City.
8.08.110 Authority of City to contract for collection.
For the collection and disposal of solid waste including construction and demolition debris, a contract may be entered into by the City on terms and conditions as determined by the City to be in the public interest, subject to the terms and conditions of this chapter. As a condition of approval of the contract, any authorized collector providing residential, commercial, or industrial organic materials collection services to generators within the City’s boundaries shall agree to:
1. Provide written notice to the City annually on or before April 1 identify the facilities to which they will transport solid waste including facilities for source separated recyclable materials and source separated organic materials.
2. Transport source separated recyclable materials and source separated organic materials to a facility, operation, activity, or property that recovers organic materials as defined in 14 CCR, Division 7, Chapter 12, Article 2.
3. Obtain approval from the City to haul organic materials, unless it is transporting source separated organic materials to a community composting site or lawfully transporting construction and demolition debris in a manner that complies with 14 CCR Section 18989.1.
4. Comply with other requirements and/ or designations contained within its franchise agreement.
8.08.120 Exclusive right of authorized collector.
At such time as there is in force a contract entered into by the City with any person for the collection of solid waste in the City, it shall be unlawful for any person, other than the authorized collector or the persons in the employ of the authorized collector, to collect, remove, or transport any solid waste within the boundaries of the City, except as otherwise provided in this chapter.
However, the provisions of this section shall not apply to any person conveying solid waste collected outside the City nor to prohibit a person from exercising rights to self-haul solid waste
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Attachment: SB1383 Ordinance Revisions - Clean (3505 : SB 1383 Ordinance) to solid waste or other appropriate disposal facilities, and nor the right to divert recyclable material or organic materials so long as the diversion otherwise complies with this chapter.
8.08.130 Self-hauling Requirements.
Any generator of solid waste may personally haul the same in a vehicle owned by, or in the lawful possession of, the generator of such solid waste, to a lawful disposal facility outside of the City limits, subject to the following requirements:
A. Self-haulers, including back-haulers, must source separate and transport organic materials to a solid waste facility, operation, activity, or property that processes or recovers source separated organic materials.
B. Self-haulers, including back-haulers, must source separate and transport recyclable materials to a solid waste facility, operation, activity, or property that processes or recovers those materials.
C. Self-haulers that are commercial businesses shall keep a record of the amount of organic materials delivered to each solid waste facility, operation, activity, or property that processes or recovers organic materials; this record shall be subject to inspection by the City. The records shall include the following information:
1. Delivery receipts and weight tickets from the entity accepting the waste. If the material is transported to an entity that does not have scales on-site or employs scales incapable of weighing the self-hauler’s vehicle in a manner that allows it to determine the weight of materials received, the self-hauler is not required to record the weight of material but shall keep a record of the entities that received the organic materials.
2. The amount of material in cubic yards or tons transported by the generator to each entity.
D. Self haulers must complete and retain on-site a self-hauling form certifying that all selfhauling activities will be completed in accordance with this chapter or any other applicable law or regulation. A copy of such form shall be completed and remitted annually to the City Manager.
This section is permissive and does not relieve any owner or occupants of property of the requirements of compliance with regular and routine disposal of all solid waste generated on the premises at least once per week as set forth in HMC 8.08.060. Nothing in this chapter shall prohibit any generator from regularly disposing of garbage, recyclable material, or organic materials at a solid waste facility, by self-hauling in a manner conforming to this section.
8.08.140 Right to divert recyclable material and organic materials.
A. Nothing in this chapter limits the right of any person to donate, sell, or otherwise remove their recyclable materials so long as the removal otherwise complies with this chapter.
B. Organic materials may be fed to animals on the premises where such organic materials is produced, provided that the premises are always kept in a sanitary condition to the satisfaction of the City Manager; and provided further that the keeping and feeding of such animals shall at all times conform to the applicable regulations of those entities governing the same now in force or which thereafter may be enacted or promulgated.
C. Organic materials may be used in on-site composting or community composting, pursuant to 14 CCR Section 18984.9(c), provided that such operation conforms to the applicable
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Attachment: SB1383 Ordinance Revisions - Clean (3505 : SB 1383 Ordinance) regulations of those entities governing the same now in force or which thereafter may be enacted or promulgated.
8.08.150 Obligation of solid waste collection service.
A. Except for premises where the owners or occupants regularly self-haul all waste generated on the premises in accordance with HMC 8.08.130, all occupied premises shall subscribe for solid waste collection service with the authorized collector as set forth herein.
B. Each person occupying any premises shall arrange for a size, quantity and collection frequency of collection containers to adequately store all solid waste generated in connection with the premises between the times designated for collection service.
Generators shall adjust service levels for their collection services as requested by the City in order to meet the requirements to dispose of all solid waste generated on the premises at least weekly.
C. Each occupant of each premises shall place source separated organic materials, including food scraps, in the organic materials collection container; place source separated recyclable materials, as established by the City and authorized collector, in the recyclable material collection container; and place garbage in the approved garbage collection container.
D. No person shall place prohibited container contaminants into any collection container serviced by the authorized collector.
E. The authorized collector shall give written notice to the City Manager of the address of any occupied premises within the City which is not subscribing to the solid waste collection service provided by the authorized collector.
F. Nothing in this section prohibits generators from preventing or source reducing waste generation, or otherwise diverting recyclable material and organic material as described in HMC 8.08.140.
8.08.160 Commercial business requirements.
A. Each owner, operator, or manager of a commercial business shall ensure the proper separation of solid waste generated on such premises, as required by the authorized collector, by placing each type of material in designated collection containers, and ensure that employees, contractors, volunteers, customers, visitors, and other persons on-site follow source separation requirements related to solid waste as required by the authorized collector. Each owner, operator, or manager of a commercial business, except for multifamily dwellings, shall prohibit employees from placing materials in a container not designated for those materials, and shall periodically inspect containers for organic waste and inform employees of requirements to ensure such containers are only used for organic waste.
B. Each owner, operator, or manager of a commercial business shall supply an adequate number, size, and location of collection containers with sufficient labels or colors designating the appropriate material for deposit in accordance with source separation requirements of the authorized collector for the employees, contractors, tenants, and customers of the commercial premises.
C. Each owner, operator, or manager of a commercial business shall annually provide information to employees, contractors, tenants, and customers about organic materials recovery requirements and about proper sorting of solid waste.
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Attachment: SB1383 Ordinance Revisions - Clean (3505 : SB 1383 Ordinance) D. Each owner, operator, or manager of a commercial business shall provide educational information within fourteen (14) days of occupation of the premises to new tenants that describes requirements to keep source separated organic materials and source separated recyclable materials separate from garbage and the location of collection containers and the rules governing their use at each property.
E. Each owner, operator, or manager of a commercial business shall cooperate with the authorized collector’s monitoring program for inspection of the contents of containers for prohibited container contaminants, to evaluate compliance.
Each owner, operator, or manager of a commercial business, except for multifamily dwellings, shall provide containers meeting the requirements of 14 CCR section 18984.9 for the collection of source separated organic materials and source separated recyclable materials in all indoor and outdoor areas where garbage disposal containers are provided for customers, for materials generated onsite. Such containers do not need to be provided in restrooms. If a commercial generator does not generate any of the materials that would be collected in one type of collection container, then it is not required to provide that type of container in all areas where disposal collection containers are provided for customers.
F. If a commercial generator self-hauls, the commercial generator shall meet the self-haul requirements in HMC 8.08.130.
8.08.170 Waivers for Businesses.
A. The City Manager or a person authorized by the Sonoma County Waste Management Agency may grant waivers to commercial business for physical space limitations and/or de minimis volumes. Commercial businesses seeking a waiver shall submit their request in a form specified by the City Manager. After reviewing the waiver request, and after an onsite review, if applicable, the City Manager may either approve or deny the following waiver requests. Anyone granted a waiver shall provide written verification of eligibility for a waiver at least every five years, and shall notify the City if circumstances change such that they are no longer eligible for such waiver, in which case waiver will be rescinded.
B. De Minimis Waivers: The City Manager or a person authorized by the Sonoma County Waste Management Agency may waive obligations of a commercial business to comply with the collection service and source separation requirements of HMC 8.08.160 if the commercial business meets the following requirements:
1. Submits an application specifying the type of waiver requested and provide documentation as described below.
2. Provide documentation that either:
i. The commercial business receives two or more cubic yards of weekly solid waste collection service and disposed organic materials subject to collection comprises less than 20 gallons per week of the business’ total weekly solid waste collection service volume; or
ii. The commercial business receives less than two cubic yards of weekly solid waste collection service and disposed organic materials subject to collection comprises less than 10 gallons per week of the business’ total weekly solid waste collection service volume.
3. For the purposes of subsections (i) and (ii) above, total weekly solid waste collection service shall be the sum of weekly garbage collection container volume,
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Attachment: SB1383 Ordinance Revisions - Clean (3505 : SB 1383 Ordinance) recyclable material collection container volume and organic materials collection container volume, measured in cubic yards.
C. Physical Space Waivers: The City Manager or a person authorized by the Sonoma County Waste Management Agency may waive a property owner’s obligations to comply with the collection service and source separation requirements of HMC 8.08.160 if the City has evidence from its own staff, authorized collector, licensed architect, or licensed engineer demonstrating that the premises lacks adequate space for the collection containers required for compliance with collection service requirements. A property owner may request a physical space waiver through the following process:
1. Submit an application form specifying the type(s) of collection services for which they are requesting a waiver from mandatory collection service.
2. Provide documentation that the premises lacks adequate space for the recyclable materials collection containers and/or organic materials collection containers including documentation from its authorized collector, licensed architect, or licensed engineer.
8.08.180 Commercial edible food generator requirements.
A. Tier one commercial edible food generators must comply with the requirements of this section January 1, 2022, and tier two commercial edible food generators must comply commencing January 1, 2024.
B. Large venue or large event operators not providing food services, but allowing for food to be provided by others, shall require Food Facilities operating at the large venue or large event to comply with the requirements of this section, commencing January 1, 2024.
C. Commercial edible food generators shall comply with the following requirements:
1. Arrange to recover the maximum amount of edible food that would otherwise be disposed.
2. Contract with or enter into a written agreement with food recovery organizations or food recovery services for: (a) the collection of edible food for food recovery; or (b) acceptance of the edible food that the commercial edible food generators selfhauls to the food recovery organization for food recovery.
3. Shall not intentionally spoil edible food that is capable of being recovered by a food recovery organization or a food recovery service.
4. Allow the City’s enforcement officer and such persons designated by the Sonoma County Waste Management Agency to conduct inspections to access the premises and review records pursuant to 14 CCR Section 18991.4.
5. Keep records that include the following information as specified in 14 CCR Section 18991.4:
a. A list of each food recovery service or organization that collects or receives its edible food pursuant to a contract or written agreement established under 14 CCR Section 18991.3(b).
b. A copy of all contracts or written agreements established under 14 CCR Section 18991.3(b).
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Attachment: SB1383 Ordinance Revisions - Clean (3505 : SB 1383 Ordinance) c. A record of the following information for each of those food recovery services or food recovery organizations:
i. The name, address and contact information of the food recovery service or food recovery organization.
ii. The types of food that will be collected by or self-hauled to the food recovery service or food recovery organization.
iii. The established frequency that food will be collected or self-hauled. iv. The quantity of food, measured in pounds recovered per month, collected or self-hauled to a food recovery service or food recovery organization for food recovery.
D. Nothing in this Chapter shall be construed to limit or conflict with the protections provided by the California Good Samaritan Food Donation Act of 2017, the Federal Good Samaritan Act, or share table and school food donation guidance pursuant to Senate Bill 557 of 2017 (approved by the Governor of the State of California on September 25, 2017, which added Article 13 [commencing with Section 49580] to Chapter 9 of Part 27 of Division 4 of Title 2 of the Education Code, and to amend Section 114079 of the Health and Safety Code, relating to food safety, as amended, supplemented, superseded and replaced from time to time).
8.08.190 Food Recovery Organization and Food Recovery Services requirements.
A. Food recovery services collecting or receiving edible food directly from commercial edible food generators, via a contract or written agreement established under 14 CCR Section 18991.3(b), shall maintain the following records, as specified by 14 CCR Section 18991.5(a)(1):
1. The name, address, and contact information for each commercial edible food generator from which the service collects edible food.
2. The quantity in pounds of edible food collected from each commercial edible food generator per month.
3. The quantity in pounds of edible food transported to each food recovery organization per month.
4. The name, address, and contact information for each food recovery organization that the food recovery service transports edible food to for food recovery.
B. Food recovery organizations collecting or receiving edible food directly from commercial edible food generators, via a contract or written agreement established under 14 CCR Section 18991.3(b), shall maintain the following records, or as otherwise specified by 14 CCR Section 18991.5(a)(2):
1. The name, address, and contact information for each commercial edible food generator from which the organization receives edible food.
2. The quantity in pounds of edible food received from each commercial edible food generator per month.
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Attachment: SB1383 Ordinance Revisions - Clean (3505 : SB 1383 Ordinance)
3. The name, address, and contact information for each food recovery service that the organization receives edible food from for food recovery.
C. Food recovery organizations and food recovery services that have their primary address physically located in the City and contract with or have written agreements with one or more commercial edible food generators pursuant to 14 CCR Section 18991.3(b) shall annually report to the City it is located in the total pounds of edible food recovered in the previous calendar year from the tier one and tier two commercial edible food generators they have established a contract or written agreement with pursuant to 14 CCR Section 18991.3(b) no later than April 1.
D. In order to support edible food recovery capacity planning assessments or other studies, food recovery services and food recovery organizations operating in the City shall provide information and consultation to the City and the Sonoma County Waste Management Agency, upon request, regarding existing, or proposed new or expanded, food recovery capacity that could be accessed by the City and its commercial edible food generators. A food recovery service or food recovery organization contacted by the City or Sonoma County Waste Management Agency shall respond to such request for information within 60 days unless a shorter timeframe is otherwise specified by the City.
8.08.200 Placing receptacles for collection.
All receptacles shall be kept in a place easily accessible to the collector but where they will not be a public nuisance or in any degree offensive, nor shall any receptacle be regularly stored upon any public street, alley, sidewalk, footpath or any public place whatever.
The authorized collector is responsible for removal of only that solid waste which is placed in a receptacle.
8.08.210 City Manager to adopt rules and regulations.
The City Manager shall make such rules and regulations as are not inconsistent with the provisions of this article, and as may be necessary, reasonable and proper to effect the proper, expedient, economical and efficient collection and removal of solid waste under the provisions of this article.
8.08.220 Depositing, etc., garbage, etc., in public places.
No person shall throw, deposit or conduct any dead animal or part thereof, garbage, offal, fish, vegetables or any filthy liquid or substance upon any lot, ground or place within the City.
8.08.230 Open places used for waste disposal – Deemed nuisance.
Open settling beds, filtering beds, holes, sumps, tanks, ponds, excavations, earth- or wooden-diked pools or similar open places used for the disposal of or containing vegetable waste, fruit waste or liquid waste, including industrial waste containing peelings or particles of fruit, peelings or particles of vegetables and water or liquids coming from the washing, cooking or preparation of fruit or vegetable or waste materials of a similar nature, within the City are hereby declared to be a public nuisance.
8.08.240 Open places used for waste disposal – Constructing, maintaining, etc., prohibited.
No person shall construct, build, operate or maintain any open settling bed, filtering bed, hole, sump, tank, pond, excavation, earth- or wooden-diked pool or similar open place used for or intended to be used for the depositing, disposal, settling, dissolving or elimination of vegetable
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Attachment: SB1383 Ordinance Revisions - Clean (3505 : SB 1383 Ordinance) waste, fruit waste, vegetable peelings or washings, fruit peelings or washings and liquids emanating from the washing of vegetables or fruits, or any other fruit or vegetable matters, refuse or waste materials and liquids resulting from the preparation, processing, canning, drying, dehydrating or otherwise treating any fruits or vegetables, within the City.
8.08.250 Open places used for waste disposal – Enforcement.
Every person who maintains, permits or allows such public nuisance as described in HMC
8.08.230 and 8.08.240 to exist upon his property or premises, and every person occupying or leasing the property or premises of another who maintains, permits or allows such public nuisance to exist thereon, after reasonable notice in writing from a City enforcement officer or county health officer or the district attorney or the City attorney to remove, discontinue or abate the same has been served upon such person is guilty of a violation of this chapter.
It is hereby made the duty of the City attorney to prosecute all persons guilty of violating this article by continuous prosecutions until the nuisance is abated and removed.
8.08.260 Sidewalks to be kept clean.
Every person shall keep the sidewalk in front of his or her house, place of business or premises in a clean and wholesome condition, and no person shall dust, sweep or beat any carpet, rug or other light material on the street or sidewalk.
8.08.270 Vermin harborage Prohibited.
No person shall maintain any building, lot, premises, vehicle or other place in such an unsanitary condition as to permit the breeding or harboring therein of flies, rats, bedbugs, cockroaches, lice, fleas or any vermin.
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Attachment: SB1383 Ordinance Revisions - Clean (3505 : SB 1383 Ordinance)
CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: February 22, 2022
SUBJECT: Resolution in support of Burbank Housing's application for FY 2022-2023 CDBG and HOME grant funding for the 155 Dry Creek affordable housing project
PREPARED BY: Stephen Sotomayor, Housing Administrator
STRATEGIC INITIATIVE(S):
Expand Affordable Housing Opportunities
Provide Effective Governance
RECOMMENDED ACTION(S):
Adopt a Resolution in support of Burbank Housing Development Corporation's application for FY 2022-2023 Community Development Block Grant funding and HOME Investment Partnership funding in the amounts of $900,000 and $400,000 for the 155 Dry Creek affordable housing project.
COMMUNITY ENGAGEMENT/OUTREACH:
The City Council approved an Exclusive Negotiation Agreement (ENA) with Burbank Housing Development Corporation on April 19, 2021, for the development of an affordable housing project at 155 Dry Creek, in which public comment was heard. In addition, the City and Burbank Housing have held two community meetings on the proposed 155 Dry Creek project on January 11, 2022, in English and Spanish and on February 8, 2022 in Spanish.
This is an early step in the process of developing an affordable housing project for the 155 Dry Creek affordable housing site and additional community engagement will take place as the project continues through planning approvals.
BACKGROUND:
On January 15, 2021, the City of Healdsburg issued a Request for Qualifications (“RFQ”) for the development of a City-owned property at 155 Dry Creek. This site was purchased by the City’s former Redevelopment Agency in 2003 with tax increment funding for the development of low to moderate income housing. The site consists of a 3.53-acre vacant undeveloped parcel bounded by Dry Creek Road to the south, the railroad tracks and commercial retail uses to the east, vacant undeveloped land to the north and Foss Creek to the west.
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On February 15, 2021, the City received five statements of qualifications in response to the issued RFQ. After an extensive review process, the evaluation team recommended that the City Council enter an ENA with Burbank Housing for a 58-unit affordable housing project located at 155 Dry Creek.
On April 19, 2021, the City Council approved an ENA with Burbank Housing with the intent of entering into a Disposition and Development Agreement with Burbank Housing. Since entering into the ENA, Burbank Housing has submitted its project for major Design Review and is finalizing the finance plan for the project.
In order to maximize the use of outside funding sources, on January 19, 2022, Burbank Housing applied to the Sonoma County Community Development Commission (CDC) for a Notice of Funding Availability (NOFA) for HOME Investment Partnership and Community Development Block Grant (CDBG) grant funding to provide additional funding for the 155 Dry Creek Project.
DISCUSSION/ANALYSIS:
Staff is recommending that the City Council adopt a Resolution in support of Burbank Housing’s application to the Sonoma County CDC in response to the FY 2022-2023 CDBG and HOME NOFA for Affordable Housing and Capital Projects for the 155 Dry Creek affordable housing project.
The Sonoma County CDC issued a NOFA for FY 2022-2023 CDBG and HOME funds for Affordable Housing and Capital Projects. The timing of this NOFA aligns with the funding needs of the 155 Dry Creek Project.
In order to maximize outside funding to offset the costs of the 155 Dry Creek project, Burbank Housing submitted an application for $1.3M to the Sonoma County CDC for $900,000 in predevelopment costs (CDBG) and $400,000 for construction (HOME). These funds, if awarded, will directly reduce the costs of the project.
As part of the NOFA process, the Sonoma County CDC requires the jurisdiction the project is located in to submit a resolution in support of the project. The attached Resolution presented for consideration will satisfy that threshold requirement.
While the financial plan for the 155 Dry Creek project has not been finalized, initial due diligence has indicated the need for additional capital into the project beyond the City’s land contribution and traditional Low-Income Housing Tax Credit financing. Staff and Burbank Housing will return to the City Council with a final financial plan as a part of the future Disposition and Development Agreement.
The City would have no financial obligation associated with Burbank Housing’s application for HOME and CDBG funding through the Sonoma County CDC.
ENVIRONMENTAL STEWARDSHIP:
During exclusive negotiating period, the City and Developer will memorialize the level of
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environmental review needed to develop the affordable housing site in the DDA. Prior to construction all environmental reviews will be completed.
ALTERNATIVES:
The City Council could choose not to approve the resolution. If this is the case, staff would seek additional direction from the Council.
FISCAL IMPACT:
There is no fiscal impact to the City as a part of this action. The final financial plan for the 155 Dry Creek affordable housing project will be included in the proposed Disposition and Development Agreement for future Council consideration.
ENVIRONMENTAL ANALYSIS:
This item does not have a direct impact on the environment, but environmental analysis will be required as the project progresses further.
ATTACHMENT(S):
Resolution
FY2022-23-Funding-Application-Affordable-Housing-and-Capital-Projects
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CITY OF HEALDSBURG
RESOLUTION NO. ____-2022
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG SUPPORTING BURBANK HOUSING
DEVELOPMENT CORPORATION’S APPLICATION FOR FY
2022-2023 COMMUNITY DEVELOPMENT BLOCK GRANT
FUNDING AND FY 2022-2023 HOME INVESTMENT
PARTNERSHIP FUNDING IN THE AMOUNTS OF $900,000
AND $400,000 FOR THE 155 DRY CREEK AFFORDABLE
HOUSING PROJECT
WHEREAS, each year the City of Healdsburg participates in the Community Development Block Grant (“CDBG”) program and HOME Investment Partnership Program (“HOME”) through a Joint Powers Agreement with the County of Sonoma and the County’s non-entitlement cities; and
WHEREAS, the City entered into an Exclusive Negotiating Rights Agreement (“ENA”) with Burbank Housing Development Corporation (“Burbank”), a California non-profit public benefit corporation, for the development of a 58-unit affordable housing multi-family project located at 155 Dry Creek, APN 089-071-002; and
WHEREAS, CDBG funds must be utilized for projects that benefit low- and moderateincome persons, the disabled, and/or seniors and HOME Investment Partnership Funding may be used for the creation of affordable housing for low-income households; and WHEREAS, the Sonoma County Community Development Commission issued a Notice of Funding Availability for FY 2022-2023 CDBG and FY 2021-2022 HOME program funding; and
WHEREAS, Burbank has submitted a joint application for FY 2022-2023 CDBG and FY 2022-2023 HOME program funding for the provision of affordable housing at 155 Dry Creek.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Healdsburg hereby supports Burbank’s submittal of an application for Fiscal Year 2022-2023 Community Development Block Grant funds in an amount of $900,000 and FY 2022-2023 HOME Investment Partnership funds in the amount of $400,000 for the 155 Dry Creek Affordable Housing project.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Healdsburg this 22nd day of February 2022, by the following vote:
AYES: Councilmembers: ( )
NOES: Councilmembers: ( )
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Attachment: Resolution (3512 : 155 Dry Creek HOME CDBG Application) ABSENT: Councilmembers: ( )
ABSTAINING: Councilmembers: ( )
SO ORDERED: ATTEST:
________________________________ ___________________________________ Osvaldo Jimenez, Mayor Raina Allan, City Clerk
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Attachment: Resolution (3512 : 155 Dry Creek HOME CDBG Application) This space reserved for CDC date and time stamp
SONOMA COUNTY COMMUNITY
DEVELOPMENT COMMISSION
FUNDING APPLICATION: AFFORDABLE
HOUSING AND CAPITAL PROJECTS
Please review the Notice of Funding Availability (NOFA), Application Guidelines, and the FY 2022–2023 CDBG and HOME Funding Policies before submitting your application. All applications must meet the eligibility criteria found in the Funding Policies and the requirements set forth in the NOFA.
Part 1: Applicant Information
Legal name of organization:
Organization’s DUNS number:
Contact Information
Authorized Representative Name, title:
(City/Town Manager, Executive
Director, or other):
Phone:
Email:
Primary point of contact: Name, title:
Phone:
Email:
Organization is a: ☐Non-profit organization ☐For-profit organization ☐Local government ☐Community Housing Development Organization (CHDO)
☐Community Based Development Organization (CBDO)
Organization mailing address:
Organization website:
Organizational Capacity and Experience
Describe applicant’s record of administrative and programmatic capacity using federal, state, local, and/or private grant funds, explaining any past issues or challenges administering grant funds.
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Attachment: FY2022-23-Funding-Application-Affordable-Housing-and-Capital-Projects (3512 : 155 Dry Creek HOME CDBG Application) Sonoma County Community Development Commission
CDBG/HOME Affordable Housing and Capital Projects Funding Application
Part 2: Project Description
Brief Description of Project or Program
The description provided here will be incorporated into the staff reports provided to the Community Development Committee, Cities and Towns Advisory Committee, and/or the Board of Supervisors. Descriptions MUST BE 125 words or less. It will not be edited and will be truncated at 125 words. For housing related applications, please include information on the number of affordable units in the project, accessible units (types, number of units, and accessibility type). A longer project description may be attached (see Part 6, Attachments). If you are requesting CDBG-CV funds, please include how the proposed activity will prevent, prepare for or respond to Coronavirus (activities must demonstrate they respond to one or more).
Part 3: Project Information
Project Name
Project Type
Using Appendix A of the FY 2022-2023 CDBG and HOME Funding Policies, fill in the field below.
CDBG or HOME eligible activity:
Funding Request
Estimated project budget: $
Amount of funding request: $
Funding source: ☐CDBG ☐HOME ☐HOME-CHDO ☐CDBG-CV
Property Information (as applicable)
Project location (physical address or cross streets):
Assessor’s Parcel Number(s):
Census tract(s):
Total acreage:
Current use of site:
Is project located in a 100-year flood plain? ☐Yes
FEMA FIRM panel number:
Is the project, or any
of any city/town?
part of it, located within the limits ☐Yes ☐No
If yes, which city/town? ____________________________
Which jurisdiction(s) must approve the project?
What local approvals and entitlements will be required
to develop the proposed project?
Date entitlements and permits expected to be
approved:
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Attachment: FY2022-23-Funding-Application-Affordable-Housing-and-Capital-Projects (3512 : 155 Dry Creek HOME CDBG Application) Sonoma County Community Development Commission
CDBG/HOME Affordable Housing and Capital Projects Funding Application
Status of Site Control
Identify the form of site control: ☐Ownership (attach copy of grant deed or deed of trust) ☐Lease (attach copy of lease)
☐Option agreement (attach copy of agreement)
☐Purchase agreement (attach copy of agreement)
☐Other; explain: ___________________________________
Note: If funding application is for acquisition, also attach copy of current appraisal if available.
Status of Environmental or Other Approvals
Applicant must obtain certification of project’s consistency with the applicable general plan, signed by an authorized representative of the jurisdiction in which the project is located (housing rehabilitation projects excluded).
Status of environmental review:
Status of land use, building permits, or other
approvals:
Explain any land use (zoning, lot split, set back, or
environmental) constraints that must be resolved prior
to proceeding with the project:
Status of Relocation Activities
In order to receive funding, projects must comply with the Sonoma County Residential Anti-Displacement and Relocation Assistance Plan.
Will the project involve demolition of any structure or relocation of any persons or businesses?
☐Yes ☐No
Explain the status of any demolition or relocation
activities:
Existing Improvements
EXISTING COMMERCIAL IMPROVEMENTS
Number of structures
Year built
Number of vacant structures
Number of occupied structures
Number of structures to be demolished
Estimated cost of relocation
EXISTING RESIDENTIAL IMPROVEMENTS
SRO Studio 1-BR 2-BR 3-BR 4-BR
Number of existing units
Number of occupied units
Number of vacant units
Number of substandard units
Number of units to be demolished
Estimated cost of relocation
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Attachment: FY2022-23-Funding-Application-Affordable-Housing-and-Capital-Projects (3512 : 155 Dry Creek HOME CDBG Application) Sonoma County Community Development Commission
CDBG/HOME Affordable Housing and Capital Projects Funding Application
Phasing
Can project proceed if phased or if given partial funding? Explain the effect of phasing or partial funding on the project’s ability to move forward.
Demonstration of Need
Describe the need for the project or program and include evidence of need (e.g., cite waiting lists for services, census data, documentation of deteriorated conditions, or other evidence).
Outcomes
Describe the outcomes expected to result from the project or program.
Part 4: Timeline
Target Dates
List anticipated target date for each of the major milestones below. (Housing projects use timeline in supplemental application instead.)
Major Milestone Target Completion Date Funds Expended
Environmental Review
Site Control
Design Completion
Bid Period Closes
Construction Begins
Construction Complete
Notice of Completion
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Attachment: FY2022-23-Funding-Application-Affordable-Housing-and-Capital-Projects (3512 : 155 Dry Creek HOME CDBG Application) Sonoma County Community Development Commission
CDBG/HOME Affordable Housing and Capital Projects Funding Application
Part 5: Sources and Uses
Housing projects use budget in supplemental application instead.
Sources
Source of Funds Donations Loans Grants In Kind Total
Total
Uses
Projected Uses Donations Loans Grants In Kind Total
Land Acquisition
Environmental Review
Architect
Engineering
Project Fees
Site Improvements
Other:
Other:
Total
6.D.b
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Attachment: FY2022-23-Funding-Application-Affordable-Housing-and-Capital-Projects (3512 : 155 Dry Creek HOME CDBG Application) Sonoma County Community Development Commission
CDBG/HOME Affordable Housing and Capital Projects Funding Application
Part 6: Attachments Required
Project sponsors must submit the following documents, as applicable, with their funding application:
Project Description: Provide a description of the project that includes specific location information and geographic boundaries. It should identify the maximum anticipated scope of the entire project, and delineate the specific activities for which the applicant is requesting funding at this time. Applications for housing-related projects should instead include a Housing Project Description, described in Supplemental Application below. Project Location Map: Attach an 8 1/2”x 11” map showing the project location, clearly showing the project area in relation to surrounding communities.
Authorizing Resolution: For non-profit organizations, attach a resolution from the Board of Directors authorizing the submittal of the application.
City/Town Authorizing Resolution: Attach a city/town council resolution endorsing the project for those located within the seven incorporated jurisdictions or for those sponsored by one of the seven incorporated jurisdictions. General Plan Consistency: Attach a certification of consistency with the applicable jurisdiction’s General Plan. IRS Letter of Determination: Non-profit organizations only must submit an IRS Letter of Determination. Non-profit organizations are not eligible for consideration unless non-profit status has been verified. Community Housing Development Organization (CHDO) verification: For CHDO’s applying for HOME CHDO funds, submit a Sonoma County CHDO letter or plan to become an independent, fully functioning CHDO entity. Letters of Commitment: Submit letters of commitment from all other funding sources. Financial Documentation:
Non-profit organizations must attach the following:
Current operating budget
Most recent completed final audit report
IRS Form 990 for the most current tax year
If organization is not audited, attach a copy of the most recent internal financial statement that has been approved by Board of Directors.
*Additional financial information may be requested by CDC staff as deemed appropriate. Sonoma County departments or agencies, the cities of Cotati, Cloverdale, Healdsburg, Rohnert Park, Sebastopol, Sonoma, and the Town of Windsor are exempt from this requirement. Organizations are required to have written policies and procedures. The applicant must submit certification that they have the following policies and procedures. (Please complete the forms found in Part 7 – Certifications) Accounting
Conflict of Interest
Procurement
Record Retention
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Attachment: FY2022-23-Funding-Application-Affordable-Housing-and-Capital-Projects (3512 : 155 Dry Creek HOME CDBG Application) Sonoma County Community Development Commission
CDBG/HOME Affordable Housing and Capital Projects Funding Application
Supplemental Application:
Public Facilities or Other Infrastructure Projects
Define project service area List all census block groups in service area:
For sidewalk / curb cut projects
Location of sidewalks (cross streets):
Define the service area; list all Census
block groups in service area:
Number of curb cuts (anticipated):
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Attachment: FY2022-23-Funding-Application-Affordable-Housing-and-Capital-Projects (3512 : 155 Dry Creek HOME CDBG Application) Sonoma County Community Development Commission
CDBG/HOME Affordable Housing and Capital Projects Funding Application
Supplemental Application:
Housing-Related Projects
Fill out this supplemental application if the project will result in the construction of new housing units, preservation of existing housing units, or the acquisition of land for new housing units.
Project Information
Project type: ☐New construction ☐Rehabilitation ☐Acquisition Total number of units to be
or rehabilitated:
constructed
Total number of affordable units (new
construction or acquisition):
For HOME funding requests, total
number of HOME-assisted units:
Total development costs: $
Contact Information of All Parties
APPLICANT INFORMATION Name:
Address:
City, State, Zip:
Contact person:
Telephone:
Email:
Organization is a: ☐Non-profit organization ☐For-profit organization ☐Local government
☐Community Housing Development Organization (CHDO)
☐Community Based Development Organization (CBDO)
PARTNER OR RELATED ENTITIES Name:
Address:
City, State, Zip:
Contact person:
Telephone:
Email:
Organization is a: ☐Non-profit organization ☐For-profit organization ☐Local government
☐Community Housing Development Organization (CHDO)
☐Community Based Development Organization (CBDO)
ARCHITECT Name:
Address:
City, State, Zip:
Contact person:
Telephone:
Email:
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Attachment: FY2022-23-Funding-Application-Affordable-Housing-and-Capital-Projects (3512 : 155 Dry Creek HOME CDBG Application) Sonoma County Community Development Commission
CDBG/HOME Affordable Housing and Capital Projects Funding Application
GENERAL CONTRACTOR Name:
Address:
City, State, Zip:
Contact person:
Telephone:
Email:
License no.:
PROPERTY MANAGER Name:
Address:
City, State, Zip:
Contact person:
Telephone:
Email:
Status of Entitlements and/or Services
If site is located in an unincorporated
area of the County, have you or will you
submit an application to Sonoma
County Planning & Resource
Management Department for:
☐State Density Bonus Program
☐County of Sonoma Supplemental Density Bonus Program
☐Housing Element Type A Rental Housing Opportunity Program ☐Housing Element Type C Ownership Housing Opportunity Program Date of application: ___________________________
If answering yes to any of the above, contact Commission staff to discuss schedule for preparation and Board approval of Affordable Housing Agreement.
Status of planned water and sewer
service:
If not yet provided, explain how water
and sewer service will be provided.
Does the project have Article 34
authority from the jurisdiction in which it
is located?
☐ Yes. If yes, attach a copy of the allocation letter.
☐ No. If no, attach written legal opinion describing why authority is not required.
Article 34 referendum
Proposed Tenancy
Household types: SRO Studio 1 BR 2 BR 3 BR 4BR
Number of each type of unit
Average square feet per unit
Total number of units:
How many of the total units will be
reserved for the following:
Homeless persons
Elderly persons
Disabled persons (see note)
Special needs populations
Resident manager
Supportive Housing - Reach for Home:
Unrestricted
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Attachment: FY2022-23-Funding-Application-Affordable-Housing-and-Capital-Projects (3512 : 155 Dry Creek HOME CDBG Application) Sonoma County Community Development Commission
CDBG/HOME Affordable Housing and Capital Projects Funding Application
Note: In new construction and substantial rehabilitation rental projects assisted with HOME or CDBG funds, at least five percent of units (not less than one unit) must be accessible to persons with mobility impairments, and an additional two percent of units (not less than 1 unit) must be accessible to persons with sensory impairments. Projects assisted with other funds must satisfy applicable federal, state, and local regulations regarding the provision of accessible housing. Ownership housing projects assisted with funds from these programs must comply with applicable federal, state, and local laws regarding the provision of accessible units.
Estimated Monthly Rent Levels (before deduction of utility allowances) Household types: SRO Studio 1 BR 2 BR 3 BR 4BR
Units Rent Units Rent Units Rent Units Rent Units Rent Units Rent Extremely Low-Income (30% of AMI)
Very Low-Income (50% of AMI)
60% of AMI
40% AMI
Market Rate (>80% of AMI)
Resident Manager’s Unit
Estimated Utility Allowance*
*Please provide list of tenant-paid utilities, the utility profile for all appliances, and the Utility Allowance for each unit type.
Estimated Affordable Sales Prices (ASP)
Household types: SRO Studio 1 BR 2 BR 3 BR 4BR
Units ASP Units ASP Units ASP Units ASP Units ASP Units ASP Extremely Low-Income (30% of AMI)
Very Low-Income (50% of AMI)
60% of AMI
Low-Income (80% of AMI)
100% of AMI
120% of AMI
LENGTH OF AFFORDABILITY PERIOD
What is the proposed length of
affordability for the affordable units?
See Funding Policies
Project Schedule
Include all major milestones such as land acquisition, general plan amendment and rezoning, density bonus / housing element housing opportunity area approval, design review approval, schematic design, design development, construction documents, construction phase, initial occupancy, and, if applicable, assignment of the project to a limited partnership or other entity. Specify tentative dates for closing the proposed loan and first request for funds, as well as when construction financing and permanent financing will close. Please provide realistic dates for completion of activities and expenditure of funds. These dates will be included in the applicable funding agreement.
Major Milestone Target Completion Date Funds Expended
6.D.b
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Attachment: FY2022-23-Funding-Application-Affordable-Housing-and-Capital-Projects (3512 : 155 Dry Creek HOME CDBG Application) Sonoma County Community Development Commission
CDBG/HOME Affordable Housing and Capital Projects Funding Application
Development Budget
ESTIMATED PREDEVELOPMENT AND CONSTRUCTION FINANCING
Lender Amount Interest Rate /
Term
Use(s) Commitment
Status
HOME match
qualifying?
Total
ESTIMATED PERMANENT FINANCING
Lender Amount Interest Rate /
Term
Use(s) Commitment
Status
HOME match
qualifying?
Total
Summary of First-Year Operating Budget
Rental projects only
Total Per unit
Gross potential rental income
Plus other income (e.g., laundry)
Less 5% vacancy / rent loss
Effective Gross Income
Less total operating expenses*
Less payment to replacement
reserves
Less payment to other reserves
Net operating income
Less debt service payments
Net cash flow
Debt service coverage ratio
*Include $75 per unit, per year monitoring fee in the operating budget
6.D.b
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Attachment: FY2022-23-Funding-Application-Affordable-Housing-and-Capital-Projects (3512 : 155 Dry Creek HOME CDBG Application) Sonoma County Community Development Commission
CDBG/HOME Affordable Housing and Capital Projects Funding Application
Affirmatively Furthering Fair Housing
In planning for the use of CDBG and HOME, the County of Sonoma must adhere to the mandate in the Fair Housing Act to Affirmatively Further Fair Housing. This means that not only must all HUD funded programs and activities combat discrimination, but they must also overcome patterns of segregation and the denial of access to opportunity that are part of national and local history. The ways in which a project or program can do this meaningfully are listed below, and to be considered for funding, all applicant projects must overcome patterns of segregation in one or more of the ways listed.
In which of the following ways does the proposed project overcome patterns of segregation and the denial of access to opportunity (check all that apply)? Please provide an explanation of how the project accomplishes the item (s) checked.
☐ It makes an investment in a segregated and high poverty neighborhood to improve conditions and eliminate disparities in access to opportunity between residents of this neighborhood and the rest of the jurisdiction and region.
Explain:
☐ It maintains and preserves existing affordable rental housing stock to reduce disproportionate housing needs.
Explain:
☐ It provides affordable housing in an area(s) of opportunity to combat segregation and promote integration.
Explain:
☐ It provides mixed income housing designed to integrate racially and ethnically concentrated areas of poverty.
Explain:
☐ It increases access for individuals with protected characteristics to existing affordable housing inhigher opportunity areas.
Explain:
6.D.b
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Attachment: FY2022-23-Funding-Application-Affordable-Housing-and-Capital-Projects (3512 : 155 Dry Creek HOME CDBG Application) Sonoma County Community Development Commission
CDBG/HOME Affordable Housing and Capital Projects Funding Application
Homelessness-Related Questions
If project is a permanent supportive
housing project, identify service
provider:
Describe approach to lowering barriers to potential tenants to entering permanent housing (i.e., accepting referrals from Coordinated Intake:
6.D.b
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Attachment: FY2022-23-Funding-Application-Affordable-Housing-and-Capital-Projects (3512 : 155 Dry Creek HOME CDBG Application) Sonoma County Community Development Commission
CDBG/HOME Affordable Housing and Capital Projects Funding Application
Additional Attachments Required
In addition to the attachments required in Part 6 of the funding application, housing-related project sponsors must submit the following as attachments to their applications:
Housing project description: Provide a written narrative to describe your project. At a minimum, the narrative should include the following:
• Description of the type of housing proposed
• Target population(s)
• Planned services for residents
• Proposed use(s) of the requested funding and anticipated environmental issues (i.e., vernal pools, heritage trees, riparian corridor, contamination, flood plain, endangered species, historical and archeological impacts)
• Authorized entity that will execute the funding agreement and loan documents if applicable for the funds requested in this application
• If the project will use a tax credit limited partnership to finance the project, please describe the organizational structure of the partnership and the roles of various partners or other related organizations Current preliminary title report
Evidence of site control
Current appraisal, if available. Appraised value of property must fully secure the Commission’s loan(s). In addition, the total purchase price may not exceed the “reasonable cost” for the property Environmental clearances/reports
Site plan and elevations or schematic drawing
Project Location Map: Attach an 8 1/2”x 11” map showing the project location, clearly showing the project area in relation to surrounding communities
Contractor’s cost breakdown
Using the Sonoma County Community Development Commission Utility Allowance Schedule, http://sonomacounty.ca.gov/CDC/Housing-Authority/Property-Owners/Utility-Allowances/, list the tenant-paid utilities and utility allowance for your project
Itemized development budget, including a sources and uses table, identifying distributions to the owner, developer, partners or other entities during the development phase Narrative description of the development’s financial plan, indicating expected dates for obtaining approvals for any uncommitted financing
Rental projects: A 30-year operating budget and cash flow projection that shows estimated project income, operating expenses, reserves, debt service, and distributions. Please include a “totals” column after year 30 Article 34 Authority: Attach allocation letter or legal opinion that allocation is not required.
6.D.b
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Attachment: FY2022-23-Funding-Application-Affordable-Housing-and-Capital-Projects (3512 : 155 Dry Creek HOME CDBG Application) Sonoma County Community Development Commission
CDBG/HOME Affordable Housing and Capital Projects Funding Application
Part 7: Certifications
☐ Grant Certification Form – 1 (Application Completeness & Accuracy & Signatory Authority) ☐ Grant Certification Form – 2 (Federal Regulations)
☐ Grant Certification Form – 3 (Conflict of Interest)
☐ Grant Certification Form – 4 (Policies and Procedures)
6.D.b
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Attachment: FY2022-23-Funding-Application-Affordable-Housing-and-Capital-Projects (3512 : 155 Dry Creek HOME CDBG Application) Sonoma County Community Development Commission
CDBG/HOME Affordable Housing and Capital Projects Funding Application
Grant Certification Form – 1
Application Completeness & Accuracy & Signatory Authority I hereby certify that (insert name of organization requesting funds) has complied with all applicable laws and regulations pertaining to the application and is an eligible applicant for the requested funding.
The organization proposes to provide the program services or complete the project identified in this application. If this application is approved and this organization receives the requested funding this organization agrees to adhere to all relevant Federal, State, and local regulations and other assurances as required by the Commission.
In addition, the content of the application shall be incorporated as part of the written agreement and, as such, will be used to monitor performance. Activities, commitments, and representations described in the written agreement that are not subsequently made a part of the program/project as funded shall be considered a material contract failure and may result in a repayment of all awarded funds and/or suspension from participation in future funding rounds.
I hereby certify that the organization is fully capable of fulfilling its obligation under this application, as stated herein.
I further certify that the information provided in this Funding Application is correct, accurate, and complete.
Signature/Authorized Representative of Organization
Printed Name:
Title:
Date:
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Attachment: FY2022-23-Funding-Application-Affordable-Housing-and-Capital-Projects (3512 : 155 Dry Creek HOME CDBG Application) Sonoma County Community Development Commission
CDBG/HOME Affordable Housing and Capital Projects Funding Application
Grant Certification Form – 2
Federal Regulations – CDBG
Requirements Federal Regulations Other References
Federal Labor Standards
- Davis-Bacon
- Copeland Act (Anti-kickback)
- Contract Work Hours and Safety
Standards
24 CFR
29 CFR
92.354
Parts 1, 3, and 5
40 U.S.C. 3141; 40 U.S.C. 3701
Section 3 24 CFR 135 Section 3 of the HUD Act of
1968, as amended (12 U.S.C.
1701u); 2 CFR 200.321
Minority and Women Business
Enterprise Participation
(MBE/WBE)
Small Business Act,
Section 3(a)
15 U.S.C. 632
12 U.S.C. 1701
Civil Rights and Non- Title VI of Civil Rights Act Section 504 of Rehabilitation Discrimination of 1964
Title VIII of the Civil Rights
Act of 1968
Section 104(b) and 109 of
Title I of the Housing and
Community Development
of 1974
Act
Act of 1973
Americans w/Disabilities Act of
1990
Age Discrimination Act of
1975
Executive Orders 11063,
11246, 11375, 11478, 12107,
12086, and 13279
Equal Employment Opportunity
24 CFR
570.607
41 CFR
570.601-602;
60 Executive Orders 11246;
12086
12 USC 1701u
Fair Housing Fair Housing Act (42
U.S.C. 3601-3620)
Title VI of the Civil Rights
Act of 1964, as amended
(42 U.S.C. 2000d)
Equal Opportunity in
Housing
Section 504 of the
Rehabilitation Act of 1973
Americans w/Disabilities Act
of 1990
24 CFR Parts 8, 107, and 146
42 U.S.C. 200(d)
Executive Orders 11063, as
amended by Executive Order
12259
Age Discrimination Act of 1975,
as amended (42 U.S.C.
6101)
Debarred or Ineligible
Contractors
24 CFR
24 570.609; 24 CFR Executive Orders 12549 and
12689
Reasonable Accommodation 24 CFR Part 8;
24 CFR
602
570.601-
Section 504 of Rehabilitation
Act of 1973
Americans w/Disabilities Act of
1990
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Attachment: FY2022-23-Funding-Application-Affordable-Housing-and-Capital-Projects (3512 : 155 Dry Creek HOME CDBG Application) Sonoma County Community Development Commission
CDBG/HOME Affordable Housing and Capital Projects Funding Application
Fire Safety Codes Local ordinances
Building, Housing, and Zoning
Codes
Housing Quality Standards
24 CFR 570.208(b)(1)(iv);
208(b)(2)
Local ordinances
Lead-Based Paint 24 CFR 570.608; 24 CFR
Part 35
42 U.S.C 4821 et seq.
Anti-Lobbying Appendix II to Part 200 J;
31 U.S.C. 1352
Environmental, Historic
Preservation, National
Environmental Policy Act, Flood
Insurance Requirements
- Sitting near airports and
coastal barrier
- Fish and wildlife protection
- Flood plain/flood insurance
- National Historic Preservation
- Noise abatement and control
- Wetlands/Coastal zones
- Air quality
- Endangered species
- Thermal/Explosive hazards
24 CFR 570.503(b)(5)(i);
570.604; 570.605;
570.202;
24 CFR 58
References at:
24 CFR 58.6;
58.5570.605
Section 104(g), HCDA
42 U.S.C 4001 et seq.
Relocation, Real Property 24 CFR 570.201(i); Sections 104(d); 105(a)(11), Acquisitions, and One-for-One 570.606(b), (c), (d) HCDA Housing Replacement 49 CFR 24 www.hud.gov/relocation
- Uniform Relocation Act
- Residential anti-displacement
and relocation assistance
42 USC 4601 et seq
Competitive Procurement 2 CFR 200.319
Insurance and Bonding 2 CFR 200.310 and
200.325
Administrative and Accounting
Standards
2 CFR Part 200
Cost Considerations 2 CFR 200.402, 403, 404,
405, 406 and 407
Documentation and
Recordkeeping
24 CFR 570.506
24 CFR 570.502
Conflict of Interest 2 CFR 200.112 and
24 CFR 570.611
Section 108 Loan Guarantees 24 CFR 570.700-570.709 Section 108, HCDA
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Attachment: FY2022-23-Funding-Application-Affordable-Housing-and-Capital-Projects (3512 : 155 Dry Creek HOME CDBG Application) Sonoma County Community Development Commission
CDBG/HOME Affordable Housing and Capital Projects Funding Application
To the best of my knowledge and belief, I certify that all data contained in this application and all supportive documentation is true, correct and will incorporate the above requirements. This submission has been duly authorized by the governing body of .
Signature/Authorized Representative of Organization
Printed Name:
Title:
Date:
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Attachment: FY2022-23-Funding-Application-Affordable-Housing-and-Capital-Projects (3512 : 155 Dry Creek HOME CDBG Application) Sonoma County Community Development Commission
CDBG/HOME Affordable Housing and Capital Projects Funding Application
☒
Grant Certification Form – 3
Conflict of Interest – CDBG
The standards in 2 CFR 200.318 provide that no employee, officer, or agent shall participate in the selection, award, or administration of a contract supported by Federal funds if a real or apparent conflict of interest would be involved.
Such a conflict would arise when an 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 the firm selected for an award.
The CDBG regulations at 24 CFR 570.611 provide that no person who is an employee, agent, consultant, officer, or elected official or appointed official of the recipient or subrecipient that are receiving CDBG funds and (1) who exercises or has exercised any functions or responsibilities with respect to activities assisted with CDBG funds; or (2) who is in a position to participate in a decision-making process or gain inside information with regard to these activities, may obtain a financial interest from a CDBG-assisted activity, or have any interest in any contract, subcontract, or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one (1) year thereafter.
A. Are any employees, agents, consultants, officers, family members, or elected officials of the organization requesting funds in a position to participate in the decision making process for approval of this application?
☐Yes ☐No
B. Are any employees, agents, consultants, officers, family members, or elected officials of the organization requesting funds in a position to gain inside information with regard to approval of this application?
☐Yes ☐No
C. Will any employees, agents, consultants, officers, family members, or elected officials of the organization requesting funds obtain a financial interest or substantial benefit fromthis activity?☐ Yes ☐No
D. Will any employees, agents, consultants, officers, family members, or elected officials of the organization requesting funds have an interest in any contract, subcontract or agreement with respect to funding this application, either for themselves or those with whom they have family or business ties during the program year and one year thereafter? ☐Yes ☐No If you answered YES to any of the above questions, a letter must be submitted with the application that includes the following information:
1) A disclosure of the nature and extent of the conflict 2) A description of how public disclosure will be made
3) A qualified attorney's opinion that the conflict of interest does not violate federal, state, or local law Note: If you are approved for funding, the Commission must issue a public notice of the disclosure with a 15-day public comment period, and then submit to HUD for approval prior to execution of a grant agreement or release of funds.
Signature/Authorized Representative of Organization
Printed Name:
Title: Date:
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Attachment: FY2022-23-Funding-Application-Affordable-Housing-and-Capital-Projects (3512 : 155 Dry Creek HOME CDBG Application) Sonoma County Community Development Commission
CDBG/HOME Affordable Housing and Capital Projects Funding Application
Grant Certification Form – 4
Policies & Procedures
The undersigned does hereby certify that the applicant organization has the following policies and/or procedures and can produce them if requested by the Commission:
1. Accounting policy/procedure
2. Procurement policy/procedure
3. Conflict of Interest policy/procedure
4. Record Retention policy/procedure
5. Language Access Plan & Limited English Proficiency Policy Signature/Authorized Representative of Organization
Printed Name:
Title:
Date:
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Attachment: FY2022-23-Funding-Application-Affordable-Housing-and-Capital-Projects (3512 : 155 Dry Creek HOME CDBG Application)
CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: February 22, 2022
SUBJECT: Adoption of Resolution Authorizing Remote Meetings PREPARED BY: Raina Allan, City Clerk
STRATEGIC INITIATIVE(S):
Provide Effective Governance
Maintain and Enhance Public Health and Safety
RECOMMENDED ACTION(S):
Adopt a Resolution authorizing remote meetings of the City Council and other legislative bodies.
COMMUNITY ENGAGEMENT/OUTREACH:
The City has made and continues to engage in extensive outreach to the community regarding the City’s response to COVID-19, including updates at public meetings.
BACKGROUND:
On or about March 4, 2020, as part of the State of California’s response to address the global COVID-19 outbreak, Governor Gavin Newsom declared a State of Emergency to make additional resources available, formalize emergency actions already underway across multiple state agencies and departments, and help the state prepare for broader spread of COVID-19 following one official COVID-19 death.
When the COVID-19 pandemic started, local agency boards struggled to conduct their meetings in compliance with the Brown Act’s public accessibility requirements while still abiding by stayat-home orders. As a result, Governor Newsom signed Orders N-25-20, N-29-20, and N-35-20 to grant local agencies the flexibility to meet remotely during the COVID-19 pandemic. These orders expired on September 30, 2021.
DISCUSSION/ANALYSIS:
On September 16, 2021, Governor Newsom signed into law AB 361 – Brown Act: Remote Meetings During Emergencies. AB 361, codified at Government Code Section 54953(e)(1)(B), amended the Brown Act to allow public agencies to allow local legislative bodies to continue meeting by teleconference during a gubernatorial proclaimed state of emergency if the local
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legislative body determines, by majority vote, that as a result of the emergency, meeting entirely in person without restrictions would present imminent risks to the health or safety of attendees.
By adopting the proposed resolution, the Council would, on behalf of the City Council and all other legislative bodies formed by the Council, make the findings required by AB 361 to meet remotely. Because the Council is required to make these findings every thirty days, staff will place a version of this resolution on the consent calendar at all subsequent meetings, until the Council decides that meeting fully in person will no longer pose an imminent risk to the health or safety of attendees.
ENVIRONMENTAL STEWARDSHIP:
This section is not applicable.
ALTERNATIVES:
Because the Governor’s Order authorizing online meetings has expired, if the Council does not adopt the proposed resolution, the Council should immediately return to in-person meetings.
FISCAL IMPACT:
There is not a fiscal impact as a direct result of this action.
ENVIRONMENTAL ANALYSIS:
Pursuant to Title 14, the California Code of Regulations, Section 15378(b)(5) of the California Environmental Quality Act (“CEQA”) guidelines, the proposed action is an administrative activity of the City that will not result in direct or indirect physical changes to the environment.
ATTACHMENT(S):
Resolution
Public Meeting COVID-19 Protocols for the City of Healdsburg
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CITY OF HEALDSBURG
RESOLUTION NO. _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG AND ON BEHALF OF COMMISSIONS AND
COMMITTEES CREATED BY THE CITY COUNCIL
PURSUANT TO CALIFORNIA GOVERNMENT CODE
SECTION 54952(b) AUTHORIZING TELECONFERENCE
MEETINGS IN COMPLIANCE WITH AB 361 (GOVERNMENT
CODE SECTION 54953(e)) TO CONTINUE TO ALLOW
MEMBERS OF THE PUBLIC TO SAFELY PARTICIPATE IN
LOCAL GOVERNMENT MEETINGS
WHEREAS, the City Council is committed to ensuring public access to observe and participate in local government meetings; and
WHEREAS, all meetings of the City Council and other legislative bodies created pursuant to Government Code Section 54952(b) are open and public, as required by the Ralph M. Brown Act, so that any member of the public may participate in local government meetings; and
WHEREAS, the recently adopted AB 361, codified at Government Code section 54953(e), makes provisions for remote teleconferencing participation in local government meetings, without compliance with the requirements 54953(b)(3), subject to the existence of certain conditions; and
WHEREAS, on March 4, 2020, Governor Newsom proclaimed a State of Emergency due to the outbreak of respiratory illness due to a novel coronavirus (now known as COVID 19) and that State of Emergency is still in effect in the State of California; and WHEREAS, the Sonoma County Public Health Officer continues to recommend teleconferencing or social distancing during public meetings of all legislative bodies to protect the community’s health against the spread of COVID-19; and WHEREAS, the City Council, acting as a legislative body pursuant to Government Code section 54952(a) and for the benefit of the commissions, committees and other bodies that were created by the City Council pursuant to Government Code section 54952(b) (collectively referred to as “Legislative Bodies”), finds that the current conditions meet the circumstances set forth in Government Code section 54953(e)(3) to allow Legislative Bodies to continue to use teleconferencing to hold open and public meetings if the Legislative Bodies comply with the requirements set forth in Government Code section 54953(e)(2) to ensure the public can safely participate in and observe local government meetings.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Healdsburg that the City Council does hereby:
1. Find that Current Conditions Authorize Teleconference Public Meetings of
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Attachment: Resolution (3514 : Resolution authorizing remote meetings) Resolution No. -2022
Legislative Bodies. Based on the California Governor’s continued declaration of a State of Emergency and the Sonoma County Public Health Officer’s recommendation to continue teleconferencing or social distancing during public meetings, the City Council finds that the conditions continue to exist pursuant to Government Code section 54953(e)(3) to allow Legislative Bodies to use teleconferencing to hold public meetings in accordance with Government Code section 54953(e)(2) to ensure members of the public have continued access to safely observe and participate in local government meetings.
2. Authorize Legislative Bodies to Conduct Teleconference Meetings. The Legislative Bodies are hereby authorized to take all actions necessary to carry out the intent and purpose of this Resolution, including conducting open and public meetings in accordance with Government Code section 54953(e)(2) and other applicable provisions of the Brown Act.
3. Authorize Legislative Bodies to Conduct Hybrid Meetings. The Legislative Bodies are hereby authorized to conduct meetings in a “hybrid” format, whereby members of the Body and members of the public may elect to be present in person, utilizing appropriate safety procedures, or participate by teleconferencing technology. Such meetings of the Legislative Bodies that occur using teleconferencing technology will provide an opportunity for any and all members of the public who wish to address Legislative Bodies to do so, and will otherwise occur in a manner that protects the statutory and constitutional rights of members of the public attending the meeting via teleconferencing. In-person meetings will be held consistent with the protocols described in Exhibit A to this Resolution.
PASSED and ADOPTED by the City Council of the City of Healdsburg, County of Sonoma, State of California, this 22nd day of February 2022, by the following vote:
AYES: Councilmembers: ( )
NOES: Councilmembers: ( )
ABSENT: Councilmembers: ( )
ABSTAINING: Councilmembers: ( )
SO ORDERED: ATTEST:
________________________________ ___________________________________ Osvaldo Jimenez, Mayor Raina Allan, City Clerk
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Attachment: Resolution (3514 : Resolution authorizing remote meetings)
PUBLIC MEETING COVID-19 PROTOCOLS
FOR THE CITY OF HEALDSBURG
SCOPE: These protocols shall apply to all public meetings held in the Council Chamber located at Healdsburg City Hall, 401 Grove Street, Healdsburg, California, by the City Council and by any and all boards, committees and commissions created and/or appointed by the City Council.
APPLICABILITY: These protocols shall apply to all participants, including members of the public, elected officials, appointed members of all boards, committees and commissions, city staff, consultants, applicants, contractors, and any other person or individual attending or participating in a public meeting in the Council Chamber.
In addition to these protocols, the City of Healdsburg will follow all laws, regulations, policies, and orders from all relevant public agencies, including the Center for Disease Control, California Department of Public Health, CalOSHA, and the Sonoma County Public Health Officer.
PURPOSE: The City intends to implement a hybrid public meeting format to allow all participants of a public meeting in the Council Chamber to participate either in-person or remotely via teleconference in a manner consistent with provisions of the Ralph M. Brown Act. Due to the fact that all participants of a public meeting that choose to participate in-person in the Council Chamber will therefore be in a confined indoor space and, the period of confinement will more likely than not be longer than 15 minutes, the City is adopting these protocols to protect the public health, safety and general welfare and thereby limit the potential risks associated with COVID-19.
COMMITMENT TO PUBLIC PARTICIPATION: None of the protocols established herein are intended to limit public participation by participants of a public meeting in the Council Chamber in any way; indeed, the intent is to protect the statutory and constitutional rights of participants appearing before the legislative bodies of the City of Healdsburg, while protecting the public health, safety and general welfare. Any participant of a public meeting that desires to participate in-person in the Council Chamber that is unable or unwilling to comply with the inperson attendance protocol outlined below, or otherwise chooses not to participate in-person in a public meeting in the Council Chamber, will have the right and ability to participate in a public meeting in the Council Chamber remotely via teleconference in a manner consistent with provisions of the Ralph M. Brown Act.
IN-PERSON ATTENDANCE PROTOCOL:
1. Vaccination: Until otherwise determined, all participants of a public meeting in the Council Chamber that choose to participate in-person shall be required to provide proof of COVID-19 vaccination to an appropriate City official before they are allowed entry into the Council Chamber. Participants of a public meeting in the Council Chamber that wish to participate in-person, but do not provide the appropriate proof of vaccination, shall not be permitted entry into the Council Chamber, shall not enter the Council Chamber, shall not remain in the Council Chamber should they otherwise gain entry, and shall leave the Council Chamber upon instruction from an appropriate City official. Any participant of a public meeting in the Council Chamber who is not permitted entry into the Council Chamber will be provided instructions on how to participate in the public meeting in the Council Chamber remotely via teleconference. Participants of a public meeting in the
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Attachment: Public Meeting COVID-19 Protocols for the City of Healdsburg (3514 : Resolution authorizing remote meetings)
Council Chamber who wish to participate in-person shall provide one of the following proofs of vaccination to an appropriate City official in order to be permitted entry into the Council Chamber:
a. A completed COVID-19 vaccination record card.
b. A digital copy of their COVID-19 Vaccine Record, which can be obtained at:
www.myvaccinerecord.cdph.ca.gov
2. Face Covering: Consistent with the most current policy from the Sonoma County Public Health Officer, all participants of a public meeting in the Council Chamber that wish to participate in-person shall wear a compliant face covering over their nose and mouth at all times. The City of Healdsburg will provide appropriate face coverings at all public meetings conducted in the Council Chamber which shall be available to any participant who requests one. Any participant of a public meeting permitted entry into the Council Chamber, who thereafter fails or refuses to appropriately affix a face covering over their nose and mouth following one or more warning(s) from an appropriate City official, shall leave the Council Chamber upon instruction from an appropriate City official.
3. Social Distancing and Occupancy Limits: The occupancy limit in the Council Chamber will be reduced by at least 50%.
a. Due to limited capacity, participants who indicate they are only interested in a specific item may be asked to wait outside the Council Chamber until their item is called on the agenda.
b. City staff will monitor occupancy within the Council Chamber to ensure proper social distancing is maintained. All participants of a public meeting permitted entry into the Council Chamber shall obey all directions from City staff provided to ensure proper social distancing is maintained. Any participant of a public meeting permitted entry into the Council Chamber who fails or refuses to obey the directions from City staff provided to ensure social distancing, following one or more warning(s) from an appropriate City official, shall leave the Council Chamber upon instruction from an appropriate City official.
c. City staff and outside consultants to the City will, as appropriate or directed by the City Manager, participate in the public meeting remotely via teleconference.
4. Enforcement: In the event a participant of a public meeting in the Council Chamber refuses or fails to obey a decision, direction or instruction of an appropriate City official issued pursuant to these In-Person Attendance Protocols, the Chief of Police, or his or her designee, may in his or her discretion, or at the direction of the City Manager or the Presiding Officer of the public meeting, take appropriate and reasonable steps to enforce the decision, direction or instruction of the appropriate City official and/or remove the offending participant from the Council Chamber. Additionally, the Presiding Officer of the public meeting may, in his or her discretion, suspend and adjourn the public meeting and/or clear the Council Chamber of all participants in the event of a disturbance and/or disruption to the public meeting, and thereafter reconvene the public meeting once the matter is resolved.
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Attachment: Public Meeting COVID-19 Protocols for the City of Healdsburg (3514 : Resolution authorizing remote meetings)
CLEANING PROTOCOL: The Council Chamber shall be professionally cleaned after each public meeting. City staff will additionally use an electrostatic cleaner to disinfect the Council Chamber after each use.
AIR FILTRATION: Air control settings in the Council Chamber will be adjusted to allow for maximum fresh air flow during public meetings. When conditions allow, doors may be left open to facilitate additional fresh air circulation.
DISTRIBUTION OF PROTOCOLS TO PARTICIPANTS: A copy of these protocols shall be published and posted on the City’s website and shall be made available at the entry to the Council Chamber for distribution to all participants of a public meeting seeking to gain entry to the Council Chamber.
CHANGES TO PROTOCOL: The City Council may, from time to time, amend, modify, suspend and/or terminate and repeal all or any portion of these protocols as it may determine to be appropriate and necessary in consideration of changes in conditions or the need to protect the statutory and constitutional rights of participants appearing before the legislative bodies of the City of Healdsburg, while protecting the public health, safety and general welfare.
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Attachment: Public Meeting COVID-19 Protocols for the City of Healdsburg (3514 : Resolution authorizing remote meetings)
CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: February 22, 2022
SUBJECT: Villa Chanticleer Operational Transition
PREPARED BY: Mark Themig, Community Services Director
STRATEGIC INITIATIVE(S):
Maintain and Improve Infrastructure and Facilities
Provide Resident-Driven Community Services
RECOMMENDED ACTION(S):
Discuss and provide feedback on the upcoming operational transition process and considerations for the Villa Chanticleer.
COMMUNITY ENGAGEMENT/OUTREACH:
• Staff distributed information about the upcoming transition of the Villa Chanticleer’s operation as part of the the Request for Interest process through the City’s website and social media platforms, along with a direct email to potential operators. • The Healdsburg Tribune wrote an article on the upcoming transition that was published in their February 3 online portal and February 10 print edition. • The Parks and Recreation Commission discussed the upcoming transition at their December 8, 2021 and February 9, 2022 meetings. These discussions included public comment.
BACKGROUND:
On August 4, 2014, City Council approved a Master Services Agreement (lease) with Tayman Golf Group Inc. (Tayman) for the purposes of operating the Villa Chanticleer as an event center.
This agreement came about after extensive analysis of Villa Chanticleer’s operational efficiencies, revenue opportunities, and marketing strategies. The analysis led to the City issuing a Request for Proposals (RFP) to contract with a service provider to operate the Villa on behalf of the City. Following the review of proposals, the City determined that Tayman’s proposal was the best fit.
The City transitioned the operation of Villa Chanticleer to Tayman in September 2014. In addition to assuming the Villa event operations, the City also assigned responsibility for coordinating use of the Villa Annex by the American Legion Sotoyome Post No. 111 that is
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operated under a separate lease agreement. Under the terms of the lease, the City assigned Tayman responsibility for the full facility operation of the Villa and coordinating use of the Villa Annex with the American Legion.
Since 2014 Tayman has worked to develop their business and enhance the recognition of the Villa as a viable event center in the area for weddings, special events, parties, and other uses that are market-rate based. In addition, the terms of the lease require that the Villa be made available to local organizations at either free or discounted rates. Prior to the impacts of the COVID-19 pandemic, the operation transitioned from operating at a loss of approximately $32,000 for the 2014-2015 operating year to a net positive $74,000 for the 2018-2019 operating year.
As allowed under the lease agreement and subsequent amendments, Tayman Group will be terminating their operating lease on June 30, 2022.
Staff has started the transition process. The first phase of this process included the release of a “Request for Interest” (RFI). We have received ten responses to the RFI:
• Milestone Events Group, Santa Rosa
• So Eventful, Healdsburg
• SSS Ranch Napa, Calistoga / Spring Ranch, Mendocino
• Black Pig Meat Co., Forestville / Farm to Pantry, Healdsburg • Leilani Martin, Healdsburg
• DL Catering, Healdsburg
• Corazón Healdsburg, Healdsburg
• Healdsburg Entertainment Group, LLC, Healdsburg
• Avalow, Inc., Healdsburg
• Mark R. DeSaulnier, Healdsburg
The RFI is intended to be informational and non-committal to gauge potential interest in the Villa. Staff will take feedback and direction from the Parks and Recreation Commission and City Council this month to develop a formal Request for Proposal process for future review and consideration of a new operator.
DISCUSSION/ANALYSIS:
As the City proceeds with the transition of the operation there are four primary considerations that staff has identified for discussion:
Capability
The Villa Chanticleer is a full-service event facility that hosts approximately 300 events per year. Skills that a future operator must possess include, but are not limited to:
• Special event management
• Marketing and promotion
• Staffing
• Maintenance and Upkeep
• Fiscal Management
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Market Rate and Community Events
Tayman’s operation of the Villa Chanticleer has required a balance of market-rate bookings along with community events. Some of the organizations that have benefitted from the community events requirement include Healdsburg Unified School District, Rotary Club, Kiwanis Club, and the City. These uses have included community fundraisers, dances, organization meetings, and the annual Senior Appreciation Dinner. To demonstrate this, the Tayman Group has provided their booking list for 2018-2022, summarized below:
2018 2019 2020 2021 2022
Definite/Tentativ
e
Total Events 314 299 144 278 135/18
Weddings 35 25 8 33 31/3
Discounted/Fre
e Events 202 203 86 141 92/6
Fundraisers 7 10 0 1 0
Other 70 61 50 103
12/9
Weddings
Discounted/Fre
e
Fundraiser
s Other
2018 35 202 7 70
2019 25 203 10 61
2020 8 86 0 50
2021 33 141 1 103
This combination of market-rate and community use makes the Villa a unique enterprise where the operator leverages market-rate events to offset costs general operating costs and sometimes lost revenue associated the numerous community uses that are typically at a discount or free.
Maintenance
The lease agreement with Tayman Group identified shared maintenance responsibilities between the City and Tayman, generally as follows:
• Tayman: Most of the day-to-day cleaning and upkeep of the Villa; maintenance of the Villa grounds surrounding the facility including the Wedding Garden; and the Villa equipment. • City: Most of the structural components of the Villa and Annex; the Annex equipment; the remainder of the grounds at the Villa.
The maintenance language in the lease is not always clear leaving both the City and Tayman to decipher the terms and come to agreement on specific tasks.
In addition, the current lease agreement set financial goals to create long-term capital funding.
However, the operational income was insufficient to meet these goals. As a result, there is no
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long-term capital funding in place. The City recently completed assessments of the Villa that identified just over $4 million in potential improvements that range from ADA corrections to mechanical system upgrades. This assessment is intended to be a guide to plan for future improvements. As a future operator is sought, ongoing and long-term maintenance will need to be part of the considerations.
Finally, the physical footprint of the Villa is large. In addition to ongoing and special maintenance related to events held indoors, the grounds require constant attention from the wooded canopy that surrounds the Villa. In addition, the Villa sits in a wildfire zone. Recent work by Healdsburg Fire Department has greatly reduced the fire fuels around the site. This work should continue.
Neighborhood Context
While the Villa Chanticleer has been in existence in some form for more than 100 years, individuals have since built homes surrounding three sides of the Villa. The physical location of the Villa is in a “bowl”, and sound travels freely to and from these residences.
The Tayman Group has worked closely with the Villa neighbors to walk a tenuous line of operating events while also respecting neighbors. Some operational changes that Tayman has implemented to address neighbor concerns include:
• No loud amplified music outdoors at events (instrumental for weddings in the wedding garden is allowed)
• Reducing event hours to 11:00 p.m.
• Moving from gas powered equipment to battery powered equipment, and limiting times of activities like leaf blowing.
• Responding to operational complaints.
The future operator of the Villa will need to take the neighborhood context into account and develop positive relationships with the Villa’s neighbors.
Parks and Recreation Commission Feedback
The Parks and Recreation Commission discussed the upcoming operational transition at their February 9 meeting and provided the following feedback:
• The Commission asked that the RFP be developed in such a way that it allows flexibility and creativity to consider all options for a potential operator. • The Commission stressed that community benefit needs to remain a primary consideration, and that enterprise and profit making not become the primary goal. • The Commission asked why the City is not considering itself as a potential operator. This option could be pursued further if a suitable operator is not identified, but the City’s role in the operation would be different than Tayman. For example, due to liability concerns the City could not hold the liquor license for the bar and would not want to be in the position of event planner.
• The Commission hopes that the process can be visionary, but also understands the realities of the timeline.
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Timeline
• January: Request for Interest Submittal
• February: Research, Analysis, Preparation
o Role of the Villa
o Terms and conditions of the current lease
o Deferred maintenance and long-term stewardship of the Villa o Parks & Recreation Facility Accessibility Evaluation
o Parks & Recreation Facilities Assessment
o Develop Request for Proposal
• March: Request for Proposal process
• April: Review proposals, select vendor, negotiate lease • May: City Council award contract
• June: New operator begins transition
Other Considerations
Staff is looking for additional feedback from City Council on other considerations that should be integrated into the upcoming Request for Proposal.
ENVIRONMENTAL STEWARDSHIP:
Not applicable.
ALTERNATIVES:
No alternatives are proposed. This agenda item is intended to be discussion only.
FISCAL IMPACT:
There is no fiscal impact associated the requested action of discussing considerations associated with the operational transition process of the Villa Chanticleer. Fiscal impacts associated with the implementation of a new operator will be brought forward at a later date.
ENVIRONMENTAL ANALYSIS:
Pursuant to Title 14, the California Code of Regulations, Section 15378(b)(4)(5) of the California Environmental Quality Act (“CEQA”) guidelines, the proposed action is an administrative activity of the City that will not result in direct or indirect physical changes to the environment; and therefore, is not a project for purposes of CEQA.
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CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: February 22, 2022
SUBJECT: 2021-22 Mid-Year Budget Report
PREPARED BY: Andrew Sturmfels, Administrative Services Director STRATEGIC INITIATIVE(S):
Provide Effective Governance
RECOMMENDED ACTION(S):
Adopt a Resolution rescinding Resolution No. 95-2021 and amending the fiscal year 2021-22 budget.
COMMUNITY ENGAGEMENT/OUTREACH:
Not applicable for this item.
BACKGROUND:
On June 29, 2020, the City Council adopted a biennial budget covering the two-year period ending June 30, 2022, amid a pandemic brought on by COVID-19 and uncertain economic impacts. The City employed multiple budget reduction strategies, including the elimination of vacant positions, expenditure reductions, pausing contributions to the pension stabilization fund, reallocation of Measure V funds and other funds, and the use of reserves to maintain services.
On December 6th, 2021, City staff provided council with an update on the first quarter financial results for the 2021-22 fiscal year. On January 22nd, Council approved the audited financial statements for the 2020-21 fiscal year. The purpose of this report is to provide an update on the City’s financial results for the first half of the fiscal year, ending December 31, 2021.
DISCUSSION/ANALYSIS:
The scope of this report will be limited to the General Fund, Community Services Fund, Measure T Fund, and Water, Sewer, and Electric Operating Funds.
General Fund. A General Fund Summary for fiscal year 2021-22 as of December 31, 2021, is attached as Attachment A. Through the first half of the fiscal year, the General Fund revenues are at 56% of estimates and expenditures are at 46% of budget.
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Revenue Highlights.
• Sales Tax. The City received $2,321,117 to a revised budget of $4,977,584, representing 47% of the total budget. Received revenue does not include December true-up, which was not yet available from the County at the time of this report. Staff met with the City’s sales tax consultants last month and believe the City will end the year meeting or exceeding the revenue estimate.
• Property Tax. The first major apportionment for fiscal year 2020-21 property taxes was received in late December, totaling $1,616,195 to a budget of $2,743,510, representing 58.9% of the total budget. The City will receive an additional apportionment in April and will receive a final apportionment in June plus residual receipts. Staff anticipates year-end revenue will meet or exceed budget expectations.
• Property Transfer Tax. The City receives this revenue when title to property is transferred from one entity to another. Revenue through December 31, 2021, totals $107,502 to an annual budget of $125,000. Staff are recommending a budget amendment to adjust the revenue projection for the year.
• Property Tax In-Lieu of Vehicle License Fee. In 2004, the then Governor Schwarzenegger proposed a swap of city and county vehicle license fee revenues for an additional property tax share as part of a state-local budget agreement. Growth is tied to the assessed valuation of real property. The first payment for fiscal year 2020-21 was received in late December and was $818,049 to a budget of $1,534,602, representing 53% of the total budget. The City will receive the exact same amount in June for a total of $1,636,098. Staff are recommending a budget amendment to adjust the revenue projection for the year. • Development Related Permits. As of December 31st, the City received $814,145 to a total annual budget of $1,187,333, representing 69% of the total budget. The increase in revenues is largely driven by larger projects including Eden Housing, Oaks at Foss Creek, Saggio Hills, North Village and Mill District. Staff are recommending a budget amendment to adjust the revenue projection for the year.
• Transient Occupancy Tax (TOT). The City received $840,944 to a to a revised budget of $971,274, representing 87% of the total budget. Revenue continues to outpace revised expectations, despite pandemic conditions. A budget amendment is proposed to increase projected revenue based on mid-year actuals for both the General Fund and Measure S Fund. • Franchise Fees. The City receives franchise fees from Recology, Comcast, and PG&E. The City received $211,924 to a budget of $705,627, representing 30% of the total budget. While part of the lag in revenue is due to the timing of payment of fees, the City is also receiving lower than anticipated franchise revenue from Recology after the most recent agreement.
Staff are proposing lowering the projected revenue target for the fiscal year. • Charges for Services. The City received $202,273 in revenue compared to a budget of $870,029, or 23% of the budget. This category of revenue includes several items that will not
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be received until after December 31st, including Strike Team Reimbursement (anticipating $150,000), CUPA annual license fees (anticipating $200,000), and Fire Service Area Agreement Reimbursement (anticipating $170,000). Staff do not recommend any changes given the expectations of other revenue materializing.
Expenditure Highlights.
As of December 31, 2021, the City expended $7,984,082 to a revised budget of $17,542,910, representing 46% of the total General Fund appropriated budget.
Expense
Activity Through
Dec. 31, 2021 Total Budget
Amount
Remaining
City Council $ 80,240 $ 178,202 $ 97,962
Legal Services $ 277,100 $ 275,000 $ (2,100)
City Manager's Office $ 812,854 $ 2,559,700 $ 1,746,846 Finance $ 1,068,749 $ 2,085,594 $ 1,016,845
Planning $ 776,368 $ 2,217,419 $ 1,441,051
Police $ 3,139,109 $ 6,819,525 $ 3,680,416
Fire $ 2,313,790 $ 4,193,115 $ 1,879,325
Non Departmental $ (484,129) $ (785,645) $ (301,516)
TOTAL $ 7,984,082 $ 17,542,910 $ 9,558,828
City Department heads have worked incredibly hard to work within their constrained budgets and still deliver high quality services. Staff is not recommending any changes to the General Fund expenditure budget at this time.
Community Services Fund. The Community Services Fund Summary for fiscal year 2020-21 as of December 31, 2021 is attached as Attachment B.
Revenue Highlights.
• Transient Occupancy Tax (TOT). The City received $4,202,882 to a revised total budget of $4,856,371, or 87% of the full-year projection. A budget amendment is proposed to increase anticipated revenue based on mid-year actuals. • Other Revenue Sources: Other sources of revenue are largely on track. Revenue types that are lagging are dependent on the timing of funding being received by the City. City staff are not recommending any further changes to revenue projections.
Expenditures and Fund Balance. As of December 31, 2021, the City expended $2,847,792 of the Community Services total budget of $5,472,359, representing 52% of the Community Services Fund budget. Staff is not recommending any changes to the Community Services Fund expenditure budget at this time.
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Along with the increase in TOT revenue, staff are recommending the following changes to the Community Services Budget:
1. A one-time transfer of $1,000,000 to the Community Services Capital Projects Fund to support future capital projects.
2. Expedited repayment of a $625,000 loan made during the prior fiscal year. Council approved a repayment plan that spread out payments over five years on August 2, 2021.
Staff are requesting Council rescind the prior action and approve a budget amendment that would repay the entire loan during the current fiscal year.
More detailed discussions of capital funding for Community Services projects will be incorporated into the upcoming budget development process. The recommended actions at this time are intended to put the Community Services fund in a stronger position for implementing identified capital needs without unduly constraining the fund while staff continues to monitor revenues. Although the increase in revenue constitutes a positive trend, the ongoing uncertainty of the pandemic and the lack of “typical year” data from the City's largest TOT generator provide a basis for ongoing caution.
Measure T Fund Revenue and Expense.
• Measure T Sales Tax Revenue totaled $1,071,304 to a total revised budget of $2,200,570, representing 48% of the total budget. This amount does not include the December true up.
Staff are confident that year end revenue will be in line with projections. • Measure T Expenses to date total $828,410 to a total budget of $2,039,554. Staff still anticipate the full budget to be expected by year end.
Water Fund.
The ongoing drought has impacted water fund revenue significantly during the first half of the year. Total revenue received was $2,918,076 to a total budget of $6,878,022, only 42% of projected revenue. This amount includes a $475,000 transfer from Measure T to cover Recycled Water and Utility Conservation Incentives.
On the expense side, total expenses through December 31, 2021 totaled $3,816,634 to a total budget of $6,301,665, representing 61% of the total budget. The first half of the year included significant additional expense for recycled water hauling and water conservation incentives that drove up expenditures.
At this point, staff are recommending a decrease in projected revenue of $1 million as a result of the drought. Staff are not recommending any additional changes to the budget at this time. Staff will continue to monitor expenses and recommend any further changes to the budget during the Q3 update scheduled in May.
Sewer Fund
The sewer fund received $3,734,826 in total revenue, 49.9% of the total budget of $7,484,644.
Sewer Fund expenses trended a little higher, with $4,226,684 expended to a total budget of $7,936,993, or 53.3%. Staff are not proposing any budget changes to the sewer fund at this time and will continue to monitor expenses.
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Electric Fund
The electric fund received $6,887,109 in total revenue, 52% of the total budget of $13,250,723.
Electric Fund expenses were $7,228,532, also 52% of the total budget of $13,885,746. Staff are not proposing any budget changes to the electric fund at this time and will continue to monitor expenses.
ENVIRONMENTAL STEWARDSHIP:
Not Applicable.
ALTERNATIVES:
The Council may choose to not approve the proposed budget amendment.
FISCAL IMPACT:
Staff are recommending approval of several budget amendments to revise revenue projections based on current year actuals and historical data. Staff are also requesting an additional budget augmentation of $2,200 from the Tree Mitigation Fund to complete additional tree pruning work.
Proposed budget amendments are included with the resolution as Exhibit A.
The changes to Fund Balances based on the proposed amendments would be as follows:
FY 20-21 FY 21-22 Revised
Actuals Budget Budget
Beginning Fund Balance $ 8,173,958 $ 9,970,836 $ 9,970,836 Revenue $ 16,193,787 $ 16,520,522 $ 17,323,419
Expenditure $ 14,396,909 $ 17,542,910 $ 17,542,910
Estimated Ending Fund Balance $ 9,970,836 $ 8,948,448 $ 9,751,345 Change in Ending Fund Balance $ 1,796,878 $ (1,022,388) $ (219,491) Components of Fund Balance
Reserve Policy (30%) $ 4,319,073 $ 5,262,873 $ 5,262,873 Pension Stabilization $ 4,410,857 $ 4,410,857 $ 4,410,858 Surplus (Deficit) $ 1,240,906 $ (725,282) $ 77,614
Reserve/Surplus (% of annual expenditures) 38.6% 25.9% 30.4% General Fund - Fund Balance
The General fund is now projected to end the year meeting the 30% reserve requirement and is projected to have an additional $77,614 above the reserve target.
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FY 20-21 FY 21-22 Revised
Actuals Budget Budget
Beginning Fund Balance $ 566,333 $ 1,103,302 $ 1,103,302 Revenue $ 5,321,317 $ 6,003,786 $ 8,586,517
Expenditure $ 4,784,347 $ 5,472,359 $ 7,097,359
Estimated Ending Fund Balance $ 1,103,302 $ 1,634,729 $ 2,592,460 Change in Ending Fund Balance $ 536,970 $ 531,427 $ 1,489,158 Components of Fund Balance
Reserve Policy (30%) $ 1,435,304 $ 1,641,708 $ 2,129,208 Pension Stabilization $ 440,715 $ 432,850 $ 432,850
Surplus (Deficit) $ (772,717) $ (439,829) $ 30,402
Reserve/Surplus (% of annual expenditures) 13.8% 22.0% 30.4% Community Services Fund Balance
The Community Services Fund is now projected to end the year meeting the 30% reserve requirement and is projected to have an additional $30,402. Proposed actions would also eliminate $625,000 in fund debt to the Measure T.
FY 21-22 FY 21-22
Budget Revised
Beginning Working Capital $ 3,176,228 $ 3,176,228
Revenue 6,878,022 5,878,022
Expenditure 6,301,665 6,301,665
Estimated Ending Working Capital $ 3,752,585 $ 2,752,585 Change in Working Capital $ 576,357 $ (423,643)
Components of Fund Balance
Reserve Policy (25%) $ 1,575,416 $ 1,575,416
Remaining Working Capital 2,177,169 1,177,169
Total $ 3,752,585 $ 2,752,585
Water Fund Balance
With the reduction in anticipated revenue, staff anticipate the water fund will continue to meet its reserve goal but have limited remaining working capital for completing future capital infrastructure projects. Staff are concerned that any continuation of drought conditions will further reduce remaining working capital. Staff will continue to monitor the fund closely over the next quarter.
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ENVIRONMENTAL ANALYSIS:
The adoption of these Resolutions is exempt from environmental review under the California Environmental Quality Act as this action is not considered a “project” as defined in Title 14, California Code of Regulations, Section 15378(a), as it has no reasonably foreseeable direct or indirect physical change on the environment, and is further specifically excluded under Section 15378(b)(4), as a government funding mechanism or fiscal activity that does not involve a commitment to any specific project.
ATTACHMENT(S):
Resolution
Exhibit A: Budget Amendments
Attachment A: General Fund Revenue and Expenses
Attachment B: Community Services Fund Revenue and Expenses
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CITY OF HEALDSBURG
RESOLUTION NO. ___-2022
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG RESCINDING RESOLUTION NO. 95-2021
AND AMENDING THE FISCAL YEAR 2021-22 BUDGET
WHEREAS, on June 29, 2020, the City Council adopted the 2020-22 biennial budget; and
WHEREAS, the economic conditions have changed since the biennial budget was adopted, as a result of the COVID-19 pandemic, pandemic related economic recovery, and historic drought; and
WHEREAS, on October 19, 2020, the City Council approved a budget amendment that included a loan from Measure T to the Community Services Fund in the amount of $250,000; and
WHEREAS, on February 16, 2021, the City Council approved a budget amendment increasing the loan amount from Measure T Fund to the Community Services Fund in the amount of $375,000, making the total loan amount $625,000; and WHEREAS, on August 2, 2021 the City Council adopted resolution 95-2021, authorizing loan repayment terms once the Community Services Fund met its reserve target; and WHEREAS, the Community Services Fund has now met and exceeded its reserve goal and has a revenue surplus; and
WHEREAS, City Staff are proposing a series of budget amendments to account for the grants received, other revenue received, and return of revenue.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg does hereby:
1. Rescind Resolution No. 95-2021.
2. Approve amending the fiscal year 2021-22 budget as depicted on the attached Exhibit A, including the full repayment of the $625,000 in loaned funds to the Community Services Fund from the Measure T Fund.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Healdsburg this 22nd day of February 2022, by the following vote:
AYES: Councilmembers:
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Attachment: Resolution (3502 : 2021-22 Mid-Year Budget Review) Resolution No. _____-2022
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAINING: Councilmembers:
SO ORDERED: ATTEST:
_________________________________ ___________________________________ Osvaldo Jimenez, Mayor Raina Allan, City Clerk
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Attachment: Resolution (3502 : 2021-22 Mid-Year Budget Review) Account Number Increase Amount Decrease Amount Description 585-3001-32107-00000 $ 2,582,731 Increase in Community Services TOT Revenue Projection 101-1000-32107-00000 $ 516,400 Increase in General Fund TOT Revenue Projection 106-1000-32107-00000 $ 516,400 Increase in Measure S Fund TOT Revenue Projection 101-1000-31105-00000 $ 100,000 Increase in General Fund Property Transfer Tax Revenue Projection 101-1000-31120-00000 $ 101,497 Increase in General Fund VLF Revenue Projection 101-1000-32105-00000 $ 175,000 Decrease in General Fund Franchise Fee Revenue Projection 101-1000-33321-00000 $ 300,000 Increase in General Fund Development Fee Revenue Projection 101-1000-38104-00000 $ 40,000 Decrease in General Fund Parking Citation Revenue Projection 520-1000-35242-00000 $ 1,000,000 Decreasre in Water Fund Utility Service Charges Revenue Projection 103-6101-43205-00000 $ 2,500 Increase in Budget Authority in Tree Mitigation Fund for Tree Pruning 585-8080-42301-00000 $ 1,625,000 Incrase Transfer out from Community Services Fund 582-1000-39001-00000 $ 1,000,000 Transfer in from Community Services Fund to Community Services Capital Projects Fund 105-1000-39001-00000 $ 625,000 Transfer in from Community Services Fund to Meaure T Fund for Loan Repayment Exhibit A: Midyear Budget Adjustment
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Attachment: Exhibit A: Budget Amendments (3502 : 2021-22 Mid-Year Budget Review) Attachment A: General Fund Revenue and Expenses
As of December 31, 2021
Revenue Activity Through
Dec. 31, 2021 Total Budget Amount Remaining
Property Tax $ 1,616,196 $ 2,743,510 $ 1,127,314
Property Transfer Tax $ 107,502 $ 125,000 $ 17,498
Vehicle License Fee Swap $ 818,050 $ 1,534,602 $ 716,552 Sales Tax $ 2,321,117 $ 4,977,584 $ 2,656,467
Business License Tax $ 203,130 $ 200,000 $ (3,130)
Franchise Fees $ 211,924 $ 705,627 $ 493,703
TOT $ 840,494 $ 971,274 $ 130,780
Sales Tax - PSAF $ 98,892 $ 169,182 $ 70,290
Development Fees and Permits $ 814,145 $ 1,187,333 $ 373,188 Intergovernmental Revenue $ 1,569,221 $ 2,140,788 $ 571,567 Charges for Services $ 202,273 $ 870,029 $ 667,756
Unrestricted Interest $ 9,093 $ 80,684 $ 71,591
Restricted Interest $ 80,145 $ (80,145)
Rent Received $ 3,603 $ 26,450 $ 22,847
Misc Fees and Charges $ 4,664 $ 85,000 $ 80,336
Fines and Collections $ 18,633 $ 121,000 $ 102,367
Transfers In $ 267,459 $ 582,459 $ 315,000
TOTAL $ 9,186,541 $ 16,520,522 $ 7,333,981
Expense Activity Through
Dec. 31, 2021 Total Budget Amount Remaining
City Council $ 80,240 $ 178,202 $ 97,962
Legal Services $ 277,100 $ 275,000 $ (2,100)
City Manager's Office $ 812,854 $ 2,559,700 $ 1,746,846 Finance $ 1,068,749 $ 2,085,594 $ 1,016,845
Planning $ 776,368 $ 2,217,419 $ 1,441,051
Police $ 3,139,109 $ 6,819,525 $ 3,680,416
Fire $ 2,313,790 $ 4,193,115 $ 1,879,325
Non Departmental $ (484,129) $ (785,645) $ (301,516)
TOTAL $ 7,984,082 $ 17,542,910 $ 9,558,828
Summary Activity Through
Dec. 31, 2021 Total Budget Amount Remaining
Total Revenue $ 9,186,541 $ 16,520,522 $ 7,333,981
Total Expenses $ 7,984,082 $ 17,542,910 $ 9,558,828
Difference $ 1,202,459 $ (1,022,388) $ (2,224,847)
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Attachment: Attachment A: General Fund Revenue and Expenses (3502 : 2021-22 Mid-Year Budget Review) As of December 31, 2021
Revenue Source Activity Through
Dec 31, 2021 Total Budget Amount Remaining
Transient Occupancy Tax $ 4,202,882.31 $ 4,856,371.00 $ 653,488.69 Local Grants $ - $ 130,000.00 $ 130,000.00
Fed Grant - St Pass Thru $ 3,500.00 $ - $ (3,500.00)
St Grants $ - $ 170,000.00 $ 170,000.00
Fees & Charges $ 10,451.84 $ 1,500.00 $ (8,951.84)
Admission and Passes $ 10,957.00 $ 30,500.00 $ 19,543.00 Program Revenue $ 71,674.65 $ 293,750.00 $ 222,075.35
Contracted Program Revenue $ 36,112.90 $ 75,000.00 $ 38,887.10 Special Events $ 480.00 $ 10,000.00 $ 9,520.00
Event Permits $ 4,363.06 $ 3,000.00 $ (1,363.06)
Advertising $ 160.00 $ 500.00 $ 340.00
Program Sponsorships $ 43,188.00 $ 40,000.00 $ (3,188.00) Reimbursement for Services $ 10,047.40 $ 64,000.00 $ 53,952.60 Field Rental $ 1,108.72 $ 15,000.00 $ 13,891.28
Facility Rental $ 9,737.32 $ 146,665.00 $ 136,927.68
Facility Long term Lease $ 14,748.00 $ 37,500.00 $ 22,752.00 Interest Income $ 11,481.00 $ - $ (11,481.00)
Contributions & Donations $ 6,141.12 $ 5,000.00 $ (1,141.12) Transfers In $ - $ 125,000.00 $ 125,000.00
TOTAL $ 4,437,033.32 $ 6,003,786.00 $ 1,566,752.68
Expense Activity Through
Dec. 31, 2021 Total Budget Amount Remaining
General Administration $ 420,740.75 $ 957,723.00 $ 536,982.25 Recreation Programs $ 348,327.05 $ 689,427.00 $ 341,099.95 ASES After School Program $ 219,053.82 $ 347,172.00 $ 128,118.18 Community Center $ 214,203.40 $ 411,235.00 $ 197,031.60 Senior Services $ 184,159.84 $ 487,077.00 $ 302,917.16
Parks and Trails $ 626,407.10 $ 1,307,882.00 $ 681,474.90 Open Space $ 79,138.22 $ 216,652.00 $ 137,513.78
School Facility Maintenance $ 46,518.45 $ 137,683.00 $ 91,164.55 Swim Center $ 84,441.07 $ 181,680.00 $ 97,238.93
Arts and Culture $ 198,958.53 $ 253,819.00 $ 54,860.47
Contracted Facility Operations $ 4,341.97 $ - $ (4,341.97) Special Events $ 36,004.47 $ 90,386.00 $ 54,381.53
Non Departmental $ 385,498.17 $ 391,623.00 $ 6,124.83
TOTAL $ 2,847,792.84 $ 5,472,359.00 $ 2,624,566.16
Summary Activity Through
Dec. 31, 2021 Total Budget Amount Remaining
Total Revenue $ 4,437,033.32 $ 6,003,786.00 $ 1,566,752.68 Total Expenses $ 2,847,792.84 $ 5,472,359.00 $ 2,624,566.16 Difference $ 1,589,240.48 $ 531,427.00 $ (1,057,813.48)
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Attachment: Attachment B: Community Services Fund Revenue and Expenses (3502 : 2021-22 Mid-Year Budget Review)
CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: February 22, 2022
SUBJECT: Review and Update the Pension Liability Funding Policy PREPARED BY: Andrew Sturmfels, Administrative Services Director STRATEGIC INITIATIVE(S):
Provide Effective Governance
RECOMMENDED ACTION(S):
Adopt a Resolution rescinding Resolution No. 51-2019 and approving the updated Pension Liability Funding Policy.
COMMUNITY ENGAGEMENT/OUTREACH:
Not applicable.
BACKGROUND:
The City participates in the California Public Employee Retirement System (PERS). A pension is a retirement account that an employer maintains to give employees a fixed payout when they retire. PERS is a defined benefit plan. The payout typically depends on how long the employee works for the employer, whether the employee works in public safety, and the employee’s salary.
Investment income, employee contributions and employer contributions fund the total pension cost, including benefits and expenses. Employer contributions are set by actuaries using an investment rate assumption (also known as the “discount rate”), and other assumptions related to salary, payroll, cost of living, mortality rate, disabilities, terminations and retirements. CalPERS has been lowering the discount rate over the last several years, from 7.5% to 7% in 2018, and lowered again from 7% to 6.8% as of June 30, 2021. The maximum employee contribution rates are set by law. When subsequent changes are made to assumptions and actual investment earnings are available the actuaries will calculate the difference to their original annual valuation.
The total of these annual differences comprises the unfunded accrued liability (UAL).
Current California law establishes that public employee retirement benefits are a form of deferred compensation and part of the employment contract. The Courts have established that the vested rights of public employees prevent not only a reduction in the benefits that have already been earned, but also a reduction in the benefits that a member is eligible to earn during future
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service. As such, changes to the employees’ retirement benefits are considered a negotiable item and must go through the meet and confer process.
Over the years, the City has taken several steps to control pension costs – refunding the side fund, establishing second tiers for new classic members (employees transferring from other PERS agencies), implementing the Public Employees’ Pension Retirement Act (“PEPRA”), and establishing and funding a Pension Stabilization Fund.
On April 19, 2019, the City Council adopted the Pension Liability Funding Policy that is in place today. The existing policy does the following:
- States that the Pension Stabilization Fund would be used as needed to achieve a level contribution by the City Budget (moderate the impacts of changes in annual UAL payments).
- Establishes a plan to make additional discretionary contributions totaling $8.3 million starting in fiscal year 2020-21 and continuing through 2038-39 to further paydown the Cities unfunded pension liabilities with a goal of further reducing future volatility and limiting additional UAL interest accumulation.
o These payments were scheduled to start as the City’s Pension Obligation Bonds were retired. The Public Safety bonds were paid off in 2020. The Miscellaneous group bonds will be paid off in 2022.
o Due to the pandemic, the 2020-2021 and 2021-2022 budgets did not include the planned additional Public Safety contributions.
CalPERS returns have varied significantly over the last two decades. The Chart below shows Investment returns over the last 30 years along with the return trend line, averaging 8.86% return over the last 30 years.
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DISCUSSION/ANALYSIS:
A decade ago, pension reform was a significant focus within municipal finance. Cities who acted quickly to adopt necessary reforms (like Healdsburg) are in a much stronger position today than those that did not. While UAL payments are expected to continue for several years, there is now a light at the end of the tunnel that wasn’t visible even a few years ago.
In November 2021, the City completed a long-range forecast, which included a detailed look at current and future pension obligations. The forecast determined the projected unfunded pension liability for the City was approximately $32.5 million as of June 30, 2021. That total is down over $10 million from 2020 ($42.7 million), driven largely by the 21.3% investment return CalPERS achieved last year. Under the current formulas, discount rate, and actuarial assumptions, the City anticipates the UAL balance to continue to decline in future years. The chart below shows forecasts future UAL debt and overall pension funding. This forecast is based on only paying the required annual UAL payments (no additional payments to CalPERS as conceived by the current Pension Liability Funding Policy).
The chart below is from the long-range forecast and shows historical and projected outstanding unfunded pension liabilities and overall percentage funded over time.
The City’s 2021-22 UAL payment was just over $3 million. The City forecasts a moderate increase in UAL payments in the next 2-3 years, peaking between $3.3-$3.5 million per year.
This contribution level would remain flat for 7-8 years, and then begin to decline quickly in the mid-2030’s as our total UAL approaches $0. These annual payments could increase, or decrease, based on future CalPERS performance and changes to actuarial assumptions and discount rates.
Meanwhile, the City Pension Stabilization Fund has performed well since inception, achieving a
6.66% return since inception in November 2015. As of December 31, 2021, the balance in the fund was approximately $8.25 million. The current investment policy ensures both moderate
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growth and substantial protection from market volatility.
One of the features of the current Pension Liability Funding Policy is that it mandated additional CalPERS UAL payments upon retirement of Pension Obligation Bond Debt and set specific funding levels, obligating future budgets until 2039. While this approach was appropriate at the time, the pension crisis that once existed is now better classified as a fiscal challenge that requires careful monitoring and flexibility. The existing UAL payment process will keep the City on track to reduce its debt over time, and the Pension Stabilization Fund is adequately funded to help the City absorb any changes in UAL and serve as a useful backstop during the next economic downturn. Having a policy that mandates discretionary payments to CalPERS limits Council’s ability to set budget priorities.
There is value in making additional UAL contributions to CalPERS if funds are available to do so. However, staff believe that Council should first fund their priorities in the budget process, and then determine any additional UAL contributions based upon any annual surplus available at the end of the fiscal year.
City staff is recommending updating the Pension Liability Funding Policy to do the following:
- Delete the required additional UAL contributions based on set amounts determined in 2019 and replace with an annual review of the City’s ability to make additional UAL payments.
- Include language that requires planned use of the Pension Stabilization Fund to be included as part of the 2-year budget planning process. - Sets as a policy goal the City’s desire to limit Pension Stabilization Trust Fund withdrawls to maximize both interest earnings and the long-term benefits of the Trust. - Update’s language throughout for consistency and improved clarity.
Staff have included both a red-line version (Attachment A) of the current policy along with a proposed updated policy (Exhibit A with Resolution) to this report.
ENVIRONMENTAL STEWARDSHIP:
Not Applicable.
ALTERNATIVES:
Council could choose to keep the current Pension Liability funding policy in place. If this direction is provided, staff will incorporate the currently required $1.15 million in additional UAL payments into the budget process for 2022-23 and moving forward.
Council could also make specific changes to the proposed policy. Should that be the case, staff would request time to update the policy and bring it back at a future meeting.
FISCAL IMPACT:
For the upcoming budget, the proposed action would free up approximately $1.15 million in City funds in the budget year, and similar but declining amounts in future fiscal years. The City would allocate these funds to other City priorities within the budgeting process.
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The City will, however, take longer to pay off its UAL balance than is contemplated in the current policy, and may be subject to future UAL volatility. The City will lose the benefit of future interest savings associated with the additional payments contemplated in the current policy.
ENVIRONMENTAL ANALYSIS:
Pursuant to Title 14, the California Code of Regulations, Section 15302(c) of the California Environmental Quality Act (“CEQA”) guidelines, the proposed action is an administrative activity of the City that will not result in direct or indirect physical changes to the environment.
ATTACHMENT(S):
Resolution
Exhibit A: 2022 Pension Liability Policy Final
Attachment A: 2019 Policy Redline Update for 2022
Resolution No. 51-2019
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CITY OF HEALDSBURG
RESOLUTION NO XX-2022
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG RESCINDING RESOLUTION NO. 51-2019
AND APPROVING AN UPDATED PENSION LIABILITY
FUNDING POLICY
WHEREAS, the City contributes to the California Public Employees Retirement System to provide pensions for City employees; and
WHEREAS, pension costs have dramatically increased and been the subject of significant volatility over the last decade; and
WHEREAS, the City has taken several steps over the last decade to reduce long-term pension obligations and pension payment volatility, including issuing pension obligation bonds with the proceeds used to pay off the CalPERS side funds, establishing second tiers for classic members, and adopting the California Public Employees Pension Reform Act (PEPRA); and WHEREAS, in 2015 the City adopted the PARS Public Agency Post-Employment Benefits Trust to help address future pension liabilities; and
WHEREAS, on April 15, 2019 the City Council adopted Resolution No. 51-2019, a Pension Liability Funding Policy to guide the cities management of pension liabilities and use of the Trust Fund; and
WHEREAS, the City Council has reviewed the policy and desires to update the policy to better align with the City’s current fiscal position and budget priorities.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg does hereby:
1. Rescind Resolution No. 51-2019
2. Approve the updated Pension Liability Funding Policy attached as Exhibit A.
PASSED, APPROVED AND ADOPTED this 22nd day of February 2022, by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAINING: Councilmembers:
SO ORDERED: ATTEST:
___________________________________ ____________________________________ Osvaldo Jimenez, Mayor Raina Allan, City Clerk
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Attachment: Resolution (3478 : Pension Liability Funding Policy Review and Update) City of Healdsburg
Pension Liability Funding Policy
1. PURPOSE
The purpose of this policy is to memorialize the methodology and process for funding current and future costs associated with the City’s contractual obligations to provide pension benefits as set forth in the City’s labor agreements. The policy also:
• Demonstrates prudent financial management practices;
• Promotes long-term and strategic thinking;
• Provides guidance in making annual budget decisions;
• Reassures bond rating agencies; and
• Demonstrates to employees and the public how the unfunded pension liability will be funded to ensure adequate funding for negotiated benefits.
2. BACKGROUND
A pension is a retirement account that an employer maintains to give employees a fixed payout when they retire. The City’s plan is a defined benefit plan. The payout typically depends on how long the employee works for the employer and the employee’s salary.
Investment income, employee contributions and employer contributions fund the total pension cost, including benefits and expenses. Employer contributions are set by actuaries using an investment rate assumption (also known as the “discount rate”), lowered from 7.0% to 6.8% as of July 1, 2021, and other assumptions related to salary, payroll, cost of living, mortality rate, disabilities, terminations, and retirements. The maximum employee contribution rates are set by law.
Current California law establishes that public employee retirement benefits are a form of deferred compensation and part of the employment contract. The Courts have established that the vested rights of public employees prevent not only a reduction in the benefits that have already been earned, but also a reduction in the benefits that a member is eligible to earn during future service.
As such, changes to the employees’ retirement benefits are considered a negotiable item and must go through the meet and confer process.
Over the years, the City has taken steps to control pension costs. In 2012 the City issued Pension Obligation Bonds to pay off CalPERS side funds at a lower interest rate and established second tiers for classic members. In 2013, the City adopted the Public Employee’s Pension Retirement Act (“PEPRA”). In 2015, the City established the Pension Stabilization Fund and began making contributions to the fund. In 2019, the City adopted the initial version of this policy.
3. POLICY
3.1 Establishment of Pension Stabilization Fund
Effective July 21, 2015 the Council adopted the PARS Public Agencies Post-Employment Benefits IRS Section 115 approved trust, also known as the Pension Stabilization Fund. The premise behind the Trust is to set-aside monies in the fund with a City determined investment policy and pull out the funds as needed to achieve a level contribution by the City’s budget. The Pension Stabilization
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Attachment: Exhibit A: 2022 Pension Liability Policy Final (3478 : Pension Liability Funding Policy Review and Update) Fund is an important tool the City can use to limit the impact of future decisions made by CalPERS on the City’s finances and ensure the delivery of public services.
3.2 Governance and administration of the established Trust:
The City Council established the Trust and defined the initial goals and policies for the administration of the Trust funds. The City Manager and staff have overall responsibility for the Trust and will manage the Trust in accordance with the City Council’s adopted policies.
Trust Administrator, PARS, keeps plan documents current to ensure that they reflect the substantive plan and provides ongoing consulting, reporting and plan accounting records.
Trustee, currently US Bank, will be the plan’s trust and custodian and will safeguard the assets in the Trust, hold the investment securities for safekeeping and make disbursement on request.
Investment Manager, currently Highmark Capital Management, will recommend investment portfolio allocations based upon the Pension Trust Funds. High Mark has adopted Investment Guidelines based on initial City Council input, revised to comply with existing law in November 2021 (Attachment 1), and manages City assets in accordance with the guidelines.
The Asset Allocation Investment Strategy chosen by a Council committee is rated as Moderately Conservative in regard to risk tolerance. Attachment 1 provides more detail on the asset allocation and breakdown.:
This policy recognizes that there will be future market volatility and that actual economic and demographic experience will differ from assumed experience. Accordingly, this policy is intended to provide flexibility to smooth such volatility and experience in a reasonable, systematic and financially sound manner.
3.3 Liability Funding Plan: Use of Pension Stabilization Fund The City is required to make annual UAL payments to CalPERS to cover outstanding liabilities based on the amortization schedules for those liabilities. The amount of payment is forecasted annually by CalPERS and is impacted by annual return rates, changes to the discount rate, and changes in actuarial analysis inputs and outputs.
City staff will include in the two-year budget details on projected UAL costs and anticipated use of the Trust. Given the Trust’s ability to generate interest, the City will endeavor to limit trust fund withdraws, maximizing potential for Trust Fund growth over time.
3.4 Additional Contribution paid directly to CalPERS
The City will annually review its ability to make additional contributions to CalPERS to further reduce unfunded liabilities and propose budget action to Council as appropriate. When making additional contributions, the City will seek maximum interest savings. Additional contributions paid to CalPERS will be applied to pay down the following amortization bases (in order):
• Miscellaneous: Pre-2013 Share of UAL Pool (maturity 2036), 2014 Assumption Change (maturity 2036), and 2016 Assumption Change (maturity 2038)
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Attachment: Exhibit A: 2022 Pension Liability Policy Final (3478 : Pension Liability Funding Policy Review and Update) • Safety: 2014 Assumption Change (maturity 2036), Pre-2013 Share of UAL Pool (maturity 2037), 2016 Assumption Change (maturity 2038), and 2017 Assumption Change (maturity 2039)
3.5 Transparency and Reporting
Funding of the City’s pension benefit should be transparent to all parties including City employees, retirees, recognized employee organizations, the City Council and City residents. To achieve this level of transparency, the following information shall be available:
a. Copies of the actuarial valuations for the City’s pension plans shall be published on the City’s website.
b. The City’s Annual Financial Statements shall be published on the City’s website. The financial statements include information on the City’s pension plans, contributions to the Trust, and the funded status of the plans.
c. The City’s annual operating budget shall include appropriations for contributions to the Trust, to CalPERS and the annual pension costs.
3.6 Review of Funding Policy
Funding pension liability requires a long-term plan. The City will review this policy at a minimum biennially, coincident with preparation of the actuarial valuations, to determine if changes to this policy are necessary to ensure adequate resources are being accumulated to fund pension benefits.
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Attachment: Exhibit A: 2022 Pension Liability Policy Final (3478 : Pension Liability Funding Policy Review and Update) City of Healdsburg
Pension Liability Funding Policy
1. PURPOSE
The purpose of this policy is to establish memorialize the methodology and a process for funding current and future costs associated with the City’s contractual obligations to provide pension benefits as set forth in the City’s labor agreements. The policy also:
• Demonstrates prudent financial management practices;
• Promotes long-term and strategic thinking;
• Provides guidance in making annual budget decisions;
• Reassures bond rating agencies; and
• Demonstrates to employees and the public how the unfunded pension liability will be funded to ensure adequate funding for negotiated benefits.
2. BACKGROUND
A pension is a retirement account that an employer maintains to give employees a fixed payout when they retire. The City’s plan is a defined benefit plan. The payout typically depends on how long the employee works for the employer and the employee’s salary.
Investment income, employee contributions and employer contributions fund the total pension cost, including benefits and expenses. Employer contributions are set by actuaries using an investment rate assumption (also known as the “discount rate”), lowered from 7.50% to 76.8% as of June 30July 1, 20182021, and other assumptions related to salary, payroll, cost of living, mortality rate, disabilities, terminationsterminations, and retirements. The maximum employee contribution rates are set by law.
Current California law establishes that public employee retirement benefits are a form of deferred compensation and part of the employment contract. The Courts have established that the vested rights of public employees prevent not only a reduction in the benefits that have already been earned, but also a reduction in the benefits that a member is eligible to earn during future service.
As such, changes to the employees’ retirement benefits are considered a negotiable item and must go through the meet and confer process.
Over the years, the City has taken steps to control pension costs – . In 2012 the City issued Pension Obligation Bonds to pay off CalPERS side funds at a lower interest rate and established second tiers for classic members. In 2013, the City adopted the Public Employee’s Pension Retirement Act (“PEPRA”). In 2015, the City established the Pension Stabilization Fund and began making contributions to the fund. In 2019, the City adopted the initial version of this policy.refunding the side fund, establishing second tiers for new classic members, implementing the Public Employees’ Pension Retirement Act (“PEPRA”), and establishing and funding a Pension Stabilization Fund.
3. POLICY
3.1 Establishment of Pension Stabilization Fund
Effective July 21, 2015 the Council adopted the PARS Public Agencies Post-Employment Benefits IRS Section 115 approved trust, better also known as the Pension Stabilization Fund. The premise
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Attachment: Attachment A: 2019 Policy Redline Update for 2022 [Revision 1] (3478 : Pension Liability Funding Policy Review and Update) behind the trust Trust is to set-aside monies in the fund with a City determined investment policy and pull out the funds as needed to achieve a level contribution by the City’s budget. In other words, Tthe Pension Stabilization Fund is an important tool the City can use mechanism by which to limit the impact of the future decisions made by CalPERS on the City’s finances and therefore ensure the delivery of the public services.
3.2 The following outlines the gGovernance and administration of the established Trust:
The City Council establisheds the Trust and defines defined the initial goals and policies for the administration of the Trust funds.
The City Manager and staff have overall responsibility for the Trust funds and will develop and manage procedures the Trust in accordance with the City Council’s adopted policies.
Trust Administrator, PARS, keeps plan documents current to ensure that they reflect the substantive plan and provides ongoing consulting, reporting and plan accounting records.
Trustee, currently US Bank, will be the plan’s trust and custodian and will safeguard the assets in the Trust, hold the investment securities for safekeeping and make disbursement on request.
Investment Manager, currently Highmark Capital Management, will recommend investment portfolio allocations based upon the Pension Trust Funds;. High Mark has adopted Investment Guidelines based on initial City Council input, revised to comply with existing law in November 2021 (Attachment 1), and adopted investment policies and manages thoseCity assets accordinglyin accordance with the guidelines.
The Asset Allocation Investment Strategy chosen by a Council committee is the Highmarkrated as Moderately Conservative in regard to risk tolerance. Attachment 1 provides more detail on the asset allocation and breakdown. with the following Asset Allocation:
• Allocation: 30.5% stocks (20-40% range), 69% bonds (50-80% range), 0.5% cash (0-20% range)
• Breakdown: Large cap 15.25%, mid-cap 2.25%, small cap 4.5%, international 7.25%, REITs
1.25%
This Policy recognizes that there will be investment market place volatility and that actual economic and demographic experience will differ from assumed experience. Accordingly, this Policy is intended to provide flexibility to smooth such volatility and experience in a reasonable, systematic and financially sound manner.
3.2 3 Liability Funding Plan: Use of Pension Stabilization Fund The City is required to make annual UAL payments to CalPERS to cover outstanding liabilities based on the amortization schedules for those liabilities. The amount of payment is forecasted annually by CalPERS and is impacted by annual return rates, changes to the discount rate, and changes in actuarial analysis inputs and outputs.
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Attachment: Attachment A: 2019 Policy Redline Update for 2022 [Revision 1] (3478 : Pension Liability Funding Policy Review and Update) City staff will include in the two-year budget details on projected UAL costs and anticipated use of the Trust. Given the Trust’s ability to generate interest, the City will endeavor to limit trust fund withdraws, maximizing potential for Trust Fund growth over time.
Miscellaneous Safety
Additional
contributions
directly to
CalPERS (000's)
$950 from 23/24 to 25/26
$600 from 26/27 to 28/29
$400 from 29/30 to 31/32
$200 from 32/33 to 34/35
(total $6,450)
$200 from 20/21 to 22/23
$150 from 23/24 to 25/26
$100 from 26/27 to 28/29
$50 from 29/30 to 38/39
(total $1,850)
Trust Target
- Target Rate 27.0% 53.0%
- 1st Year 2024-25 2023-24
- Last Year 2035-36 2036-37
3.34 Additional Contribution paid directly to CalPERS
The City will annually review its ability to make additional contributions to CalPERS to further reduce unfunded liabilities and propose budget action to Council as appropriate. When making additional contributions, the City will Sseeking maximum interest savings. , the aAdditional contributions paid to CalPERS will be applied to pay down the following amortization bases (in order):
• Miscellaneous: Pre-2013 Share of UAL Pool (17 years amortizationmaturity 2036), 2014 Assumption Change (maturity 2036 17 years amortization), and 2016 Assumption Change (19 years amortizationmaturity 2038)
• Safety: 2014 Assumption Change (17 years amortization)maturity 2036), Pre-2013 Share of UAL Pool (18 years amortizationmaturity 2037), 2016 Assumption Change (19 years amortizationmaturity 2038), and 2017 Assumption Change (20 years amortizationmaturity 2039)
3.54 Transparency and Reporting
Funding of the City’s pension benefit should be transparent to all parties including City employees, retirees, recognized employee organizations, the City Council and City residents. In order to achieve this transparency, the following information shall be available:
a. Copies of the actuarial valuations for the City’s pension plans shall be published on the City’s website.
b. The City’s Annual Financial Statements shall be published on the City’s website. The financial statements include information on the City’s pension plans, contributions to the Trust, and the funded status of the plans.
c. The City’s annual operating budget shall include appropriations for contributions to the Trust, to CalPERS and the annual pension costs.
3.65 Review of Funding Policy
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Packet Pg. 95
Attachment: Attachment A: 2019 Policy Redline Update for 2022 [Revision 1] (3478 : Pension Liability Funding Policy Review and Update) Funding pension liability requires a long-term plan. The City will review this policy at a minimum biennially, coincident with preparation of the actuarial valuations, to determine if changes to this policy are necessary to ensure adequate resources are being accumulated to fund pension benefits.
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Attachment: Attachment A: 2019 Policy Redline Update for 2022 [Revision 1] (3478 : Pension Liability Funding Policy Review and Update)
9.A.d
Packet Pg. 97
Attachment: Resolution No. 51-2019 (3478 : Pension Liability Funding Policy Review and Update)
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Attachment: Resolution No. 51-2019 (3478 : Pension Liability Funding Policy Review and Update) City of Healdsburg
Pension Liability Funding Policy
1. PURPOSE
The purpose of this policy is to establish methodology and a process for funding current and future costs associated with the City’s contractual obligations to provide pension benefits as set forth in the City’s labor agreements. The policy also:
• Demonstrates prudent financial management practices;
• Promotes long-term and strategic thinking;
• Provides guidance in making annual budget decisions;
• Reassures bond rating agencies; and
• Demonstrates to employees and the public how the unfunded pension liability will be funded to ensure adequate funding for negotiated benefits.
2. BACKGROUND
A pension is a retirement account that an employer maintains to give employees a fixed payout when they retire. The City’s plan is a defined benefit plan. The payout typically depends on how long the employee works for the employer and the employee’s salary.
Investment income, employee contributions and employer contributions fund the total pension cost, including benefits and expenses. Employer contributions are set by actuaries using an investment rate assumption (also known as the “discount rate”), lowered from 7.5% to 7% as of June 30, 2018, and other assumptions related to salary, payroll, cost of living, mortality rate, disabilities, terminations and retirements. The maximum employee contribution rates are set by law.
Current California law establishes that public employee retirement benefits are a form of deferred compensation and part of the employment contract. The Courts have established that the vested rights of public employees prevent not only a reduction in the benefits that have already been earned, but also a reduction in the benefits that a member is eligible to earn during future service.
As such, changes to the employees’ retirement benefits are considered a negotiable item and must go through the meet and confer process.
Over the years, the City has taken steps to control pension costs – refunding the side fund, establishing second tiers for new classic members, implementing the Public Employees’ Pension Retirement Act (“PEPRA”), and establishing and funding a Pension Stabilization Fund.
3. POLICY
3.1 Establishment of Pension Stabilization Fund
Effective July 21, 2015 the Council adopted the PARS Public Agencies Post-Employment Benefits IRS Section 115 approved trust, better known as the Pension Stabilization Fund. The premise behind the trust is to set-aside monies in the fund with a City determined investment policy and pull out the funds as needed to achieve a level contribution by the City’s budget. In other words, the Pension Stabilization Fund is a mechanism by which to limit the impact of the decisions made by CalPERS on the City’s finance and therefore the delivery of the public services.
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Packet Pg. 99
Attachment: Resolution No. 51-2019 (3478 : Pension Liability Funding Policy Review and Update) The following outlines the governance and administration of the established Trust:
City Council establishes the Trust and defines policies for the administration of the Trust funds.
City Manager and staff have overall responsibility for the Trust funds and will develop and manage procedures in accordance with the City Council’s adopted policies.
Trust Administrator, PARS, keeps plan documents current to ensure that they reflect the substantive plan and provides ongoing consulting, report and plan account records.
Trustee, currently US Bank, will be the plan’s trust and custodian and will safeguard the assets in the Trust, hold the investment securities for safekeeping and make disbursement on request.
Investment Manager, currently Highmark Capital Management, will recommend investment portfolio allocations based upon the Pension Trust Funds; adopted investment policies and manage those assets accordingly.
The Asset Allocation Investment Strategy chosen by a Council committee is the Highmark Moderately Conservative with the following Asset Allocation:
• Allocation: 30.5% stocks (20-40% range), 69% bonds (50-80% range), 0.5% cash (0-20% range)
• Breakdown: Large cap 15.25%, mid-cap 2.25%, small cap 4.5%, international 7.25%, REITs
1.25%
This Policy recognizes that there will be investment market place volatility and that actual economic and demographic experience will differ from assumed experience. Accordingly, this Policy is intended to provide flexibility to smooth such volatility and experience in a reasonable, systematic and financially sound manner.
3.2 Liability Funding Plan
Miscellaneous Safety
Additional
contributions
directly to
CalPERS (000's)
$950 from 23/24 to 25/26
$600 from 26/27 to 28/29
$400 from 29/30 to 31/32
$200 from 32/33 to 34/35
(total $6,450)
$200 from 20/21 to 22/23
$150 from 23/24 to 25/26
$100 from 26/27 to 28/29
$50 from 29/30 to 38/39
(total $1,850)
Trust Target
- Target Rate 27.0% 53.0%
- 1st Year 2024-25 2023-24
- Last Year 2035-36 2036-37
3.3 Additional Contribution paid directly to CalPERS
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Packet Pg. 100 Attachment: Resolution No. 51-2019 (3478 : Pension Liability Funding Policy Review and Update) Seeking maximum interest savings, the additional contributions paid to CalPERS will be applied to pay down the following amortization bases (in order):
• Miscellaneous: Pre-2013 Share of UAL Pool (17 years amortization), 2014 Assumption Change (17 years amortization), and 2016 Assumption Change (19 years amortization) • Safety: 2014 Assumption Change (17 years amortization), Pre-2013 Share of UAL Pool (18 years amortization), 2016 Assumption Change (19 years amortization), and 2017 Assumption Change (20 years amortization)
3.4 Transparency and Reporting
Funding of the City’s pension benefit should be transparent to all parties including City employees, retirees, recognized employee organizations, the City Council and City residents. In order to achieve this transparency, the following information shall be available:
a. Copies of the actuarial valuations for the City’s pension plans shall be published on the City’s website.
b. The City’s Annual Financial Statements shall be published on the City’s website. The financial statements include information on the City’s pension plans, contributions to the Trust, and the funded status of the plans.
c. The City’s annual operating budget shall include appropriations for contributions to the Trust, to CalPERS and the annual pension costs.
3.5 Review of Funding Policy
Funding pension liability requires a long-term plan. The City will review this policy at a minimum biennially, coincident with preparation of the actuarial valuations, to determine if changes to this policy are necessary to ensure adequate resources are being accumulated to fund pension benefits.
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Packet Pg. 101 Attachment: Resolution No. 51-2019 (3478 : Pension Liability Funding Policy Review and Update)