Councilmember Liles, seconded by Councilmember Gold, motioned to adopt Resolution No. 94- 2002, entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG DENYING AN APPEAL OF TWO CONDITIONS OF APPROVAL FOR MINOR USE PERMIT UP02-9 TO LEGALIZE A RESIDENTIAL VISITOR LODGING UNIT AT 602 COLLEGE STREET, APN 002-074-001”. The motion carried on a roll call vote. (Ayes 5, Noes 0, Absent – None)
SUPPORT OF MEASURES G AND H
School Board President McGuire, Acting Superintendent Bugarske, School Superintendent Schultz and Coach Darryl Barbieri gave a presentation on the improvements that are proposed if Measures G and H are approved, including school and community playfield improvement purposes. It was noted that an Oversight Committee will be formed and two audits will be conducted to ensure the voters the bond funds are spent on the projects that are identified.
In response to Councilmember Liles’ inquiry, Mr. McGuire stated there are no provisions to exempt senior citizens or low-income residents.
Mr. McGuire asked Council to support Measures G and H and adopt the proposed resolution.
Councilmember Liles, seconded by Councilmember Schaffner, motioned to adopt Resolution No. 95-2002, entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HEALDSBURG IN SUPPORT OF MEASURES G AND H – THE SCHOOL AND COMMUNITY PLAY FIELD IMPROVEMENT MEASURES”. The motion carried on a roll call vote. (Ayes 5, Noes 0, Absent – None)
NAMING OF PARKLAND FARMS PARK
Community Services Director Goodman reported, in accordance with the adopted Park Naming Policy, the Parks and Recreation Commission solicited input on possible names for the Parkland Farms neighborhood park. Out of the four names submitted, two names are being submitted to the City Council for final selection: Bridle Path Park and Oasis Park.
Councilmember Liles opined the park naming policy was not thought through and suggested naming parks after prominent individuals in the community.
Councilmember Gold stated she had reservations with the name selection, mainly because bridle path implies you can take a horse to the park, which is not the case and Oasis Park does not reflect Healdsburg’s identity.
Council discussion ensued regarding whether or not to refer the matter back to the Parks and Recreation Commission for further review.
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Packet Pg. 456 Attachment: Barbieri Park Naming (3545 : Park Naming Policy) City Council Meeting Minutes
September 3, 2002
Councilmember Liles, seconded by Councilmember Gold, motioned to refer the park naming matter back to the Parks and Recreation Commission for further review and recommendation.
The motion carried on a voice vote. (Ayes 5, Noes 0, Absent – None)
PARKLAND FARMS PARK MASTER PLAN
Community Services Director Goodman outlined the planning process followed to develop the master plan for the Parkland Farms neighborhood park and gave an overview of the park master plan, the lay out and the amenities included. It is proposed that construction of the park be in two phases because funding is only available for Phase I.
Discussion ensued regarding possible funding sources and timing for Phase II and the amenities that were left out because of cost, i.e. drinking fountain, fencing around the tot play area.
Councilmember Schaffner expressed interest in having a fence around the tot play area.
In response to Councilmember Mitchell’s inquiry, Ms. Goodman stated there would be opportunity to revise the park master plan until it is approved by the City Council.
Mayor Gleason asked for public input on the master plan.
Mr. Tom Chambers, 226 Burgundy, spoke in support of the multi-use park and noted the turf area is to accommodate sports in general, not just soccer. Mr. Chambers suggested planning for additional parking for future needs and asked Council to identify funds for phase II and include a full size soccer field. Mr. Chambers reiterated his support for the park and encouraged Council to move forward with the project, find the money for phase II and include land for future parking.
Ms. Karen Tynam, Stirrup Loop, expressed concern about the cost of the construction easement to reach phase II and the uncertainty of what is planned for Area C. Ms. Tynam also expressed concern about having BBQs in an area that is adjacent to a high fire hazard area and the increase in traffic. Ms. Tynam encouraged Council to communicate with the residents and include them in the process. Ms. Tynam added she had additional comments about General Plan consistency; however, she would raise those concerns at the Planning Commission hearing.
Community Services Director Goodman noted a construction easement would no longer be needed because Phase II would be accessed from property on Phase I.
Councilmember Liles opined that the BBQs should be eliminated.
Ms. Ann Freidemann, Tee Court, spoke on behalf of the Healdsburg Youth Soccer League soccer and opined there is a need for multi-use fields. Ms. Freidemann stated the League is aware of the neighbor’s concerns and will make an effort to minimize the impact on the neighborhood.
Ms. Freidemeann encouraged Council to include a full size soccer field on phase II.
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Packet Pg. 457 Attachment: Barbieri Park Naming (3545 : Park Naming Policy)
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Packet Pg. 458 Attachment: Barbieri Park Naming (3545 : Park Naming Policy)
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Packet Pg. 459 Attachment: Barbieri Park Naming (3545 : Park Naming Policy) City Council Meeting Minutes
March 3, 2003
Ms. Cecilia Pietropoali opined the education packet is a good idea and noted members of the Dog Park Committee would be monitoring the off-leash areas for compliance with the regulations and educating the public.
Mr. Barry Evans, March Avenue, spoke in support of the proposed ordinance.
In response to Council’s inquiries, Ms. Goodman stated signs would be installed to notify the public of the regulations and added that options for bag dispensers were being explored.
Assistant City Attorney Gogna recommended Section 3-47 be revised to read as follows:
“Dogs are permitted in City owned parks except for Recreation Park only if such dog is licensed and under owner control on a leash. The leash shall not exceed six feet in length. Dogs are prohibited from playground areas in all City parks and in all areas of Recreation Park”.
Councilmember Liles, seconded by Councilmember Mitchell, motioned to introduce for first reading an Ordinance entitled “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HEALDSBURG AMENDING CHAPTER 3, SECTIONS 3-45 AND 3-47 (DOGS IN CITY PARKS) AND AMENDING CHAPTER 14A, TO ADD SECTION 14A-40 (OFF-LEASH AREA USE REGULATIONS)”, as revised above by the City Attorney, by title only and waiving further reading of the text. The motion carried on a roll call vote with Councilmember Gleason noted as absent. (Ayes 4, Noes 0, Absent – Gleason)
NAMING OF PARKLAND FARMS SUBDIVISION NEIGHBORHOOD PARK
Community Services Director Goodman reviewed the Parks and Recreation Commission recommendation to name the Parkland Farms Subdivision neighborhood park as “Isabel Haigh Park”. The second choice was King Fisher Park.
Council expressed concern about naming a park after a person that is not well known and the desire to name the park after someone that made a great contribution to the City.
Discussion ensued regarding the various park name options, the historical significance of Isabel Haigh, whether or not the residents of Parkland Farms had expressed a name preference and the need to establish criteria to be used when naming a park after an individual.
It was Council’s consensus to defer action on this item to the next meeting and asked the community to provide input as to the name of the park.
GEOTECHNICAL REVIEW FEES
Planning Director Spitler informed Council of the need to increase the geotechnical service review fee and noted it is proposed that the fee be increased from $1,400 to $1,600.
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Packet Pg. 460 Attachment: Barbieri Park Naming (3545 : Park Naming Policy)
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Packet Pg. 461 Attachment: Barbieri Park Naming (3545 : Park Naming Policy) City Council Meeting Minutes
March 17, 2003
Councilmember Gleason, seconded by Councilmember Mitchell, motioned to introduce for first reading an Ordinance, entitled “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HEALDSBURG REVISING THE ZONING MAP AS SET FORTH IN ORDINANCE NO. 950 TO CHANGE THE ZONING DISTRICT FOR 2.36 ACRES COMPRISING THE HAMILTON OFFICE PARK LOCATED AT 550 GROVE STREET, APN 089-130-055 FROM ORM TO PD”, by title only and waiving further reading of the text. (Ayes 5, Noes 0, Absent – None)
Councilmember Schaffner, seconded by Councilmember Liles, motioned to adopt Resolution No. 29-2003, entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG APPROVING A PLANNED DEVELOPMENT PLAN AND POLICY STATEMENT PD02-1 AND A TENTATIVE MAJOR SUBDIVISION TM02-3, TO CREATE
A SIX-LOT SUBDIVISION AND TO CONSTRUCT A RESIDENTIAL DUPLEX AND AN OFFICE PARK ON A 3.09 ACRE VACANT PARCEL AT 550 GROVE STREET (APN 089- 130-055)”. The motion carried on a roll call vote. (Ayes 5, Noes 0, Absent – None)
NAMING OF PARKLAND FARMS SUBDIVISION NEIGHBORHOOD PARK
Mayor Gold stated this item was deferred from the last meeting to allow Council time to consider other names for the Parkland Farms Subdivision neighborhood park.
Councilmember Mitchell recalled at the last meeting he suggested naming the park after either former Councilmember Bob Haviland or Al Barbieri also a former Councilmember and founder of the Boys and Girls Club. Councilmember Mitchell added he was withdrawing Bob Haviland’s name at this time because it conflicted with the park naming policy and suggested the park be named after Al Barbieri.
Following a brief discussion regarding the park naming policy and the various names suggested, Councilmember Mitchell, seconded by Councilmember Schaffner, motioned to name the Parkland Farms Subdivision park as “Al Barbieri” Park. The motion carried on a roll call vote. (Ayes 5, Noes 0, Absent – None)
DISCUSSION – PATRIOT ACT
Mayor Gold, after inquiring how many people wanted to speak on the subject, asked that the comments be limited to three minutes.
Ms. Kathleen Palmer, Sunset Drive, thanked Council for considering the resolution opposing certain provisions of the Patriot Act.
Ms. Beverly Liberman, Sunset Drive, spoke in favor of the USA Patriot Act and added the Act is needed to protect this country against terrorism. Ms. Liberman further opined it is important to stand behind the President and not undermine what the government is doing to protect its citizens.
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Packet Pg. 462 Attachment: Barbieri Park Naming (3545 : Park Naming Policy)
8.C.b
Packet Pg. 463 Attachment: Barbieri Park Naming (3545 : Park Naming Policy) City Council Meeting Minutes
June 2, 2003
The motion to approve the Consent Calendar, as submitted, carried on a roll call vote. (Ayes 5, Noes 0, Absent – None)
WEED ABATEMENT PUBLIC HEARING
Fire Marshal Collins recalled previously Council declared a public nuisance to exist on certain properties in the City due to weed and/or debris.
Mr. Collins informed Council the property owners were given notice to either abate the nuisance or to contest the order at tonight’s public hearing. The City will hire a private contractor to cut weeds and/or remove debris on properties re-inspected and found to still be in violation and owners will be billed for the cost plus an administrative charge.
In response to Councilmember Schaffner’s inquiries, Fire Marshall Collins reported approximately 75% of the people in the initial list comply with the abatement order.
In response to Councilmember Gleason’s inquiries, Fire Marshall Collins reported the City typically abates six properties a year.
Mayor Gold opened the public hearing.
There being no public speakers, Councilmember Gleason, seconded by Councilmember Mitchell, motioned to close the public input portion of the hearing. The motion carried on a voice vote. (Ayes 5, Noes 0, Absent – None)
Councilmember Gleason, seconded by Councilmember Mitchell, motioned to adopt Resolution No. 62-2003, entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG ORDERING THE ABATEMENT OF NOXIOUS WEEDS, RUBBISH, ABANDONED VEHICLES AND REFUSE”. The motion carried on a roll call vote. (Ayes 5, Noes 0, Absent – None)
DISCUSSION – NAME OF PARKLAND FARMS NEIGHBORHOOD PARK
Councilmember Mitchell reported having had spoken to Daryl Barbieri and he had expressed the family’s wishes to name the park “Barbieri Brothers Park”.
Councilmember Liles, seconded by Councilmember Mitchell, motioned to change the name of the A.L. Barbieri Park to “Barbieri Brothers Park”. The motion carried on a roll call vote. (Ayes 5, Noes 0, Absent – None)
LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
Director Goodman presented the staff report and reported that no additional properties were being annexed to the District and only a CPI was applied to the assessments. The amount that will be levied and collected will remain the same.
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Packet Pg. 464 Attachment: Barbieri Park Naming (3545 : Park Naming Policy)
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Attachment: Clarence Ruonavaara Grandstands Naming (3545 : Park Naming Policy)
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Attachment: Clarence Ruonavaara Grandstands Naming (3545 : Park Naming Policy)
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Attachment: Clarence Ruonavaara Grandstands Naming (3545 : Park Naming Policy)
CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: June 21, 2022
SUBJECT: Appointment of Planning Commissioners
PREPARED BY: Raina Allan, City Clerk
STRATEGIC INITIATIVE(S):
Effective & Efficient Government
Provide Effective Governance
RECOMMENDED ACTION(S):
By motion, appoint three applicants to the Planning Commission for a term of four years due to expire June 30, 2026.
COMMUNITY ENGAGEMENT/OUTREACH:
A notice of vacancies for the Planning Commission was published in the Press Democrat on May 24, 2022, May 31, 2022 and June 7, 2022, as well as published on the City Website and Social Media channels.
BACKGROUND:
At its June 6, 2022, meeting, the City Council formed two subcommittees. One of the subcommittees was comprised of Council Member Mitchell and Council Member Hagele and the other subcommittee was comprised of Mayor Jimenez and Vice Mayor Kelley to interview applicants interested in serving on the Planning Commission.
The City Clerk received seven applications for the open position on the Planning Commission.
The applicants are listed below. The Council Subcommittees interviewed six applicants on June 13, 2022, June 16, 2022, June 20, 2022 and June 21, 2022. One applicant withdrew his application before being interviewed.
Phil Luks
Conor McKay
Vesna Breznikar
Glaydon de Freitas Filho
Tyra Harrington
Mia Tiscareno
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Sigrid Fallentine (Waggener)
The applications are available for review in the City Clerk’s office.
DISCUSSION/ANALYSIS:
The two separate Council subcommittees will make their recommendations at the City Council meeting. Council will have the opportunity to discuss the recommendations.
ENVIRONMENTAL STEWARDSHIP:
Not applicable.
ALTERNATIVES:
The Council could opt to not take the Subcommittee’s recommendations. In that case Council could appoint other applicants to the vacancy or direct staff to restart the recruitment process for the vacancy.
FISCAL IMPACT:
There is no fiscal impact related to the proposed 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.
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CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: June 21, 2022
SUBJECT: Cannabis Business Tax Ballot Measure
PREPARED BY: Jeff Kay, City Manager
STRATEGIC INITIATIVE(S):
Establish Proactive Policies/Programs to Continue to Promote Economic Diversity & Sustainable Growth
Provide Effective Governance
RECOMMENDED ACTION(S):
It is recommended the Council adopt a Resolution placing a Cannabis Business Tax Measure on the ballot for the November 8, 2022 election and requesting the Sonoma County Elections Department conduct said election.
COMMUNITY ENGAGEMENT/OUTREACH:
This measure has been discussed at a City Council work session in November 2021 and a regular City Council meeting in May 2022.
BACKGROUND:
The City Council’s adopted goals for 2021 included reviewing policy options for development of a possible ordinance governing commercial cannabis operations in Healdsburg. Toward that end, the City conducted a work session on November 18, 2021 to review policy options and provide direction to staff. One outcome of that meeting was direction to conduct a survey of community opinions on the various policy options. That survey was completed in early 2022.
The City Council meeting on May 2, 2022 included a presentation of the survey results and a more detailed review of policy options, based on the input from the community and City Council direction. Staff intends to bring a draft commercial cannabis ordinance to the City Council for consideration at a meeting in September 2022. At the May 2 meeting, the City Council also directed staff to proceed with preparation of a ballot measure for the November 8, 2022 election to create a cannabis business tax.
The proposed tax would not allow or permit cannabis businesses to operate in Healdsburg. That action would need to be taken by the City Council through the adoption of a cannabis regulation
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ordinance. This action merely creates the taxing mechanism so that the City will derive additional revenues from cannabis businesses if and when the City Council elects to permit and regulate them.
The proposed cannabis tax would impose an excise tax on all cannabis businesses. The deadline for the City Council to complete the procedural steps to place a cannabis business excise tax on the November 8, 2022 general election ballot is in early August.
In 2014, the City Council adopted Ordinance No. 1137 (Chapter 20.20.100, Marijuana cultivation, possession and use) adopting provisions permitting medicinal cannabis use and cultivation. This provision was expanded by Ordinance No. 1165 in 2017, to also permit recreational cannabis use by adults over 21 years of age.
State law permits cities to impose local excise taxes on commercial cannabis businesses. In order to do so, the City Council must authorize the placement of a cannabis tax measure on the November 8, 2022 ballot. This proposed Resolution would authorize such an ordinance.
DISCUSSION/ANALYSIS:
The proposed ordinance establishes a general tax that would require approval by a simple majority of voters. The question to appear on the ballot would be as follows:
Shall the measure establishing a City of Healdsburg cannabis business tax at annual rates up to and not to exceed 8% of gross receipts for cannabis businesses, and estimated to generate approximately $500,000 annually in tax revenue until ended by voters, to be spent for unrestricted general revenue purposes, including police, fire and emergency services, parks, affordable housing, and street maintenance, be adopted?
The measure would allow the City to tax cannabis businesses at a maximum annual tax rate of 8% of gross receipts. This approach would give the City Council the ability to set and adjust the tax rate over time, including establishing different rates by business type, in order to adjust to the rapidly changing regulatory landscape around cannabis businesses.
The proposed cannabis business tax would be in addition to the City’s general business tax.
Cannabis businesses, whether existing, newly established, licensed, or unlicensed, would be required to pay the full tax imposed by the measure. However, the payment of the excise tax would not authorize or permit any commercial cannabis business that is unlicensed. The measure would provide the City the right to audit all books and records of the cannabis businesses, impose penalties and interest for failure to pay the tax, and provide enforcement mechanisms for the City.
ENVIRONMENTAL STEWARDSHIP:
Not applicable, however the environmental impacts of cannabis businesses may be considered as part of a future cannabis ordinance.
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ALTERNATIVES:
Decline to adopt the Resolution, in which case cannabis businesses would not be subject to a local excise tax. Adult use cannabis businesses, however, would still have to pay state and local sales taxes.
FISCAL IMPACT:
If the cannabis business tax is adopted by voters, it is estimated that the tax will generate an estimated $500,000 in revenue annually based on the maximum allowable tax rates. Revenues would be expected to grow based on inflationary factors in future years although no estimates are available at this time.
ENVIRONMENTAL ANALYSIS:
This Resolution is exempt from the California Environmental Quality Act (CEQA), Public Resources Code Section 21000 et seq., because it can be seen with certainty that there is no possibility that the enactment of this Resolution would have a significant effect on the environment (Pub. Resources Code § 21065; CEQA Guidelines §§ 15378(b)(4), 15061(b)(3)) and because the Resolution involves the approval of government revenues to fund existing services (Pub. Resources Code § 21080, subd. (b)(8); CEQA Guidelines § 15273(a)(4)). It does not make any commercial activity lawful nor commit the city to fund any particular activity.
ATTACHMENT(S):
Resolution
Ordinance
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CITY OF HEALDSBURG
RESOLUTION NO. – 2022
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG (1) ORDERING THE SUBMISSION TO THE QUALIFIED
ELECTORS OF THE CITY A MEASURE TO ESTABLISH A TAX ON
COMMERCIAL CANNABIS ACTIVITIES AT THE GENERAL ELECTION
TO BE HELD ON TUESDAY, NOVEMBER 8, 2022; (2) REQUESTING THE
BOARD OF SUPERVISORS OF THE COUNTY OF SONOMA TO
CONSOLIDATE THE ELECTION REGARDING THE ORDINANCE WITH
THE NOVEMBER 8, 2022 GENERAL ELECTION AND TO PERMIT THE
SONOMA COUNTY ELECTIONS DEPARTMENT TO CONDUCT SAID
ELECTION; (3) DIRECTING THE CITY CLERK TO TAKE ALL
NECESSARY ACTIONS AND COORDINATE WITH THE COUNTY OF
SONOMA TO ENSURE PLACEMENT OF THE ORDINANCE ON THE
NOVEMBER 8, 2022 BALLOT; (4) AUTHORIZING THE CITY MANAGER
TO REIMBURSE THE COUNTY OF SONOMA FOR THE COSTS TO
CONDUCT THE ELECTION; (5) AUTHORIZING THE CITY COUNCIL TO
AUTHOR THE ARGUMENT IN FAVOR OF THE MEASURE AND ANY
REBUTTAL ARGUMENT; AND (6) DIRECTING THE CITY ATTORNEY TO
PREPARE AN IMPARTIAL ANALYSIS
WHEREAS, pursuant to section 2.40.010 of the Healdsburg Municipal Code, the general municipal election of the City shall be held on the same day as the statewide general election; and
WHEREAS, pursuant to Section 9222 of the California Elections Code the City Council may submit an ordinance directly to the voters; and WHEREAS, California Government Code sections 37100.5 and 37101 permit cities to adopt taxes for revenue purposes to be levied upon businesses that engage in commercial cannabis activities in the city; and
WHEREAS, there is a strong interest by cannabis businesses to operate in Healdsburg in accordance with state law; and
WHEREAS, the City Council has reviewed policy options for the development of a possible ordinance governing commercial cannabis activities; and WHEREAS, the City Council desires that a tax be imposed on all cannabis businesses should the City Council permit such businesses in the future; and WHEREAS, the City Council desires to submit to the voters at the general municipal election scheduled for Tuesday, November 8, 2022 (the “Election”), a measure establishing a tax on commercial cannabis activities (the “Cannabis Business Tax Measure”); and WHEREAS, the County of Sonoma will be conducting a statewide general election in Healdsburg on November 8, 2022; and
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Packet Pg. 473 Attachment: Resolution (3677 : Ballot Measure on Cannabis) Resolution No. -2022
WHEREAS, it is in the best interest of the City of Healdsburg to consolidate the City election with the County election to be conducted on November 8, 2022; and WHEREAS, pursuant to Elections Code Section 10002, the governing body of any city may by resolution request the Board of Supervisors of the county to permit the county elections official to render specified services to the city or district relating to the conduct of an election, subject to the city reimbursing the county in full for the services performed upon presentation of a bill to the city; and
WHEREAS, pursuant to Elections Code Section 10400, whenever two or more elections, including bond elections, of any legislative or congressional district, public district, city, county, or other political subdivision are called to be held on the same day, in the same territory, or in territory that is in part the same, they may be consolidated upon the order of the governing body or bodies or officer or officers calling the elections; and WHEREAS, pursuant to Elections Code Section 10403, whenever an election called by a city for the submission of any question, proposition, or office to be filled is to be consolidated with a statewide election, and the question, proposition, or office to be filled is to appear upon the same ballot as that provided for that statewide election, the city shall, at least 88 days prior to the date of the election, file with the board of supervisors, and a copy with the elections official, a resolution of its governing board requesting the consolidation, and setting forth the exact form of any question, proposition, or office to be voted upon at the election, as it is to appear on the ballot. Upon such request, the Board of Supervisors may order the consolidation. The resolution requesting the consolidation shall be adopted and filed at the same time as the adoption of the ordinance, resolution, or order calling the election; and WHEREAS, the City Council hereby requests the County Clerk of Sonoma County provide election services that are normally provided to the City of Healdsburg; and WHEREAS, the ordinance attached hereto as Exhibit “A” and incorporated herein by reference (the “Ordinance”) would impose a business license tax on persons engaged in commercial activity involving cannabis and cannabis products in the City.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Healdsburg as follows:
Section 1. That pursuant to Government Code section 36503, and Healdsburg Municipal Code section 2.40.010, there is called and ordered to be held in the City of Healdsburg a general municipal election.
Section 2. The City Council orders submitted to the voters the Cannabis Business Tax Measure, a measure for the approval of the Ordinance establishing a tax on commercial cannabis activities at such general municipal election. The type, rate, and method of collection of the tax are set forth in the Ordinance, the full text of which shall be printed and made available to voters pursuant to Section 9223 of the California Elections Code.
Section 3. The complete text of the Cannabis Business Tax Measure to be
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Packet Pg. 474 Attachment: Resolution (3677 : Ballot Measure on Cannabis) Resolution No. -2022
submitted to the voters for approval is attached to this Resolution as Exhibit "A," and that the City Clerk shall maintain a copy of the measure and shall make the same available for public inspection upon request. The City Council hereby approves the ordinance attached to this Resolution as Exhibit “A,” the form thereof, and its submission to the voters of the City at the November 8, 2022 Election.
Section 4. Pursuant to Elections Code Sections 10400 and 10403, the City Council hereby orders an election be called and consolidated with any and all elections also called to be held on November 8, 2022 within the same territory. Further, pursuant to Elections Code Section 10002, the City Council hereby requests that the Board of Supervisors of the County of Sonoma consolidate the Election for the above-referenced Cannabis Business Tax Measure with the November 8, 2022 general election and to permit the Sonoma County Elections Department to provide any and all services necessary for conducting the Election. The County of Sonoma and its staff are authorized and instructed to procure and furnish any and all official ballots, notices, printed matter and all supplies and equipment and other necessary items in order to properly and lawfully conduct the Election; the County of Sonoma is authorized to canvass the returns of the Election, which shall be held in all respects as if there were only one election, and only one form of ballot shall be used; and the City Council recognizes that additional cost will be incurred by the County of Sonoma by reason of the consolidation of the Election with the Statewide election and agrees to reimburse the County of Sonoma for any costs that are not reimbursed by the State, and the City Council hereby authorizes the City Manager to pay the County of Sonoma for said services in full.
Section 5. The City Council of the City of Healdsburg acknowledges that the consolidated Election will be held and conducted in the manner prescribed in Elections Code section 10418.
Section 6. The Cannabis Business Tax Measure shall be designated by letter by the Sonoma County Elections Department. The question to appear on the ballot for voter consideration shall be as follows:
Cannabis Business Tax Measure:
Shall the measure establishing a City of Healdsburg cannabis business tax at annual rates up to and not to exceed 8% of gross receipts for cannabis businesses, and estimated to generate approximately $500,000 annually in tax revenue until ended by voters, to be spent for unrestricted general revenue purposes, including police, fire and emergency services, parks, affordable housing, and street maintenance, be adopted?
YES
NO
Section 7. Pursuant to Article XIII C of the California Constitution, this measure shall not take effect unless a majority of votes cast on the measure at the Election are in favor of the measure, unless another threshold is otherwise required by law.
Section 8. In accordance with Elections Code Section 9282, the City Council authorizes a subcommittee of two Council Members, appointed by the City Council during an
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Packet Pg. 475 Attachment: Resolution (3677 : Ballot Measure on Cannabis) Resolution No. -2022
open and public meeting, to prepare a written argument, not to exceed 300 words, in favor of the Cannabis Business Tax Measure on behalf of the City Council. The remaining Council Members may review and sign onto the argument in advance of its publication, but may not circulate comments to other Council Members, as limited by the Brown Act. If an argument is filed against the Cannabis Business Tax Measure, the Council authorizes the same subcommittee or a different subcommittee, also appointed by the City Council during an open and public meeting, to prepare a written rebuttal, not to exceed 250 words, which also may be signed by members of the City Council.
Section 9. Ballot arguments and rebuttals shall be filed in accordance with the following:
A. Arguments against the Measure may not exceed 300 words and must be submitted to the City Clerk in compliance with sections 9282 and 9283 of the California Elections Code by 5:00 p.m. on August 19, 2022.
B. Rebuttal arguments are hereby authorized and may not exceed 250 words and must be submitted to the City’s elections official as specified in section 9285 of the California Elections Code, by 5:00 p.m. on August 26, 2022.
Section 10. All previous resolutions providing for the filing of rebuttal arguments for City measures are hereby repealed and the provisions of this resolution providing for the filing of rebuttal arguments regarding the Cannabis Business Tax Measure shall only apply to the election to be held on November 8, 2022, and shall thereafter be repealed.
Section 11. The City Clerk is hereby directed to transmit a copy of the Cannabis Business Tax Measure to the City Attorney, who shall prepare an impartial analysis of the measure showing the effect of the measure on the existing law and the operation of the measure in accordance with Section 9280 of the California Elections Code, and to file that analysis no later than the deadline established by the Sonoma County elections official.
Section 12. The Board of Supervisors of Sonoma County is hereby requested to issue instructions to the County Election Department to take any and all steps necessary for the holding of the election and to consolidate this ballot measure with any other applicable election conducted on the same day in the City. The Board of Supervisors is further requested to order the County Clerk to set forth in the voter information portion of all sample ballots to be mailed to the qualified electors of the City the full text of the measure and to mail with the sample ballots to the electors printed copies of the full text of the Ordinance, together with the arguments and rebuttal arguments (if any) for and against the measure.
Section 13. Notice of the election is hereby given and the City Clerk shall give such further notice of the election as required by law.
Section 14. The City Clerk is hereby directed to file a certified copy of this Resolution with the Sonoma County Board of Supervisors and the Sonoma County Elections Department.
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Section 15. The City Clerk is authorized and directed to take all other steps necessary to conduct the election on the Measure.
Section 16. The City Manager is authorized and directed to appropriate the funds necessary to fund the cost of the election.
Section 17. For purposes of the California Environmental Quality Act (Public Resources Code Section 21000, et seq.), a “project” is defined in State CEQA Guidelines Section 15378 (a) as “the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment,” but excludes “the submittal of proposals to a vote of the people of . . . a particular community that that not involve a public agency sponsored initiative.” (14 CCR 1378(b)(3); Stein v. City of Santa Monica (1980) 110 Cal. App. 3d 458; Friends of Sierra Madre v. City of Sierra Madre (2011) 25 Cal. 4th 165.) The City Council hereby finds that, as a citizen-sponsored initiative, this Initiative is exempt from CEQA under CEQA Guidelines Section 15378(b)(3).
Section 18. In all particulars not recited in this resolution, the election shall be held and conducted as provided by State law for holding municipal elections.
Section 19. This Resolution shall take effect upon its adoption by at least two-thirds of the City Council.
PASSED, APPROVED AND ADOPTED, this 21st day of June 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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Packet Pg. 477 Attachment: Resolution (3677 : Ballot Measure on Cannabis) 1 IRV #4864-8239-9007 v2
CITY OF HEALDSBURG
ORDINANCE NO.
AN ORDINANCE OF THE PEOPLE OF THE CITY OF
HEALDSBURG, STATE OF CALIFORNIA, AMENDING
TITLE 3 OF THE HEALDSBURG MUNICIPAL CODE TO ADD
A NEW CHAPTER 3.32 ENTITLED “CANNABIS BUSINESS
TAX”
The People of the City of Healdsburg, California, DO HEREBY ORDAIN as follows:
SECTION 1. ENACTED. That Title 3 of the Healdsburg Municipal Code is hereby amended to add a new Chapter 3.32, entitled “Cannabis Business Tax”, and it shall read as follows:
Chapter 3.33
CANNABIS BUSINESS TAX
3.32.010 Title.
3.32.020 Authority and purpose.
3.32.030 Intent.
3.32.040 Definitions.
3.32.050 Tax imposed.
3.32.060 Registration, reporting and remittance of tax.
3.32.070 Payments and communications –timely remittance.
3.32.080 Payment – when taxes deemed delinquent.
3.32.090 Notice not required by City.
3.32.100 Penalties and interest.
3.32.110 Refunds, credits, and procedures.
3.32.120 Exemptions from the tax.
3.32.130 Administration of the tax.
3.32.140 Enforcement –action to collect.
3.32.150 Apportionment.
3.32.160 Constitutionality and legality; not a sales tax.
3.32.170 Audit and examination of records and equipment.
3.32.180 Other licenses, permits, taxes, fees, or charges.
3.32.190 Payment of tax does not authorize activity.
3.32.200 Deficiency determinations.
3.32.210 Failure to report.
3.32.220 Tax assessment –notice requirements.
3.32.230 Tax assessment – hearing, application and determination.
3.32.240 Conviction for violation – taxes not waived.
3.32.250 Violation deemed misdemeanor.
3.32.260 Remedies cumulative.
3.32.010 Title.
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Packet Pg. 478 Attachment: Ordinance (3677 : Ballot Measure on Cannabis) 2 IRV #4864-8239-9007 v2
This chapter shall be known as the Cannabis Business Tax Ordinance and shall be applicable in the City of Healdsburg, California, which shall be referred to herein as “city.”
3.32.020 Authority and purpose.
The purpose of this chapter is to adopt a tax, for revenue purposes, pursuant to sections 37100.5 and 37101 of the California Government Code, upon cannabis businesses that engage in business in the city. The cannabis business tax is levied based upon business gross receipts. It is not a sales and use tax, a tax upon income, or a tax upon real property.
The cannabis business tax is a general tax enacted solely for general governmental purposes of the city and not for specific purposes. All of the proceeds from the tax imposed by this chapter shall be placed in the city's general fund and be available for unrestricted general revenue purposes.
3.32.030 Intent.
This ordinance is adopted to achieve the following purposes, among others, and shall be interpreted to accomplish those purposes:
A. To impose a tax on the privilege of transporting, dispensing, manufacturing, producing, processing, preparing, storing, testing, providing, donating, selling, or distributing cannabis or cannabis products by cannabis businesses in the City of Healdsburg, pursuant to the state Medicinal and Adult-Use Cannabis Regulation and Safety Act, California Business and Professions Code section 26000 et seq., Proposition 64, approved by the voters in November 2016 and as amended to date (“MAUCRSA”), which legalized and regulates commercial cannabis activities in California, and other applicable law as it now exists or may hereafter be adopted; and
B. To specify the type of tax and rate of tax to be levied and the method of collection.
This chapter does not authorize the conduct of any business or activity in the city, but provides for the taxation of such businesses or activities as they occur. Nothing in this chapter shall be interpreted to authorize or permit any business activity that would not otherwise be legal or permissible under laws applicable to the activity at the time the activity is undertaken.
3.32.040 Definitions.
The following words and phrases shall have the meanings set forth below when used in this chapter:
“Cannabis” shall have the meaning set forth in section 26001(e) of the Business and Professions Code and as subsequently amended.
“Cannabis business” shall mean any business activity involving cannabis, including but not limited to transporting, distributing, manufacturing, compounding, converting, processing, preparing, storing, packaging, delivering, testing, dispensing, retailing, and wholesaling of cannabis, of cannabis products, or of ancillary products and accessories, whether or not carried on for gain or profit. The term “cannabis business” shall include “commercial cannabis activity” as defined in section 26001(j) of the Business and Professions Code and as subsequently amended.
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Packet Pg. 479 Attachment: Ordinance (3677 : Ballot Measure on Cannabis) 3 IRV #4864-8239-9007 v2
“Cannabis product” shall have the same meaning as in section 11018.1 of the Health and Safety Code and as subsequently amended.
“Commercial cannabis activity” shall have the meaning set forth in section 26001(j) of the Business and Professions Code and as subsequently amended. “Employee” shall mean each person who renders any service, with or without compensation, for the owner, permittee, or agent of either an owner or permittee of a commercial cannabis business. For purposes of this chapter, the term “Employee” shall include part-time, full-time, temporary, or permanent employees.
“Engaged in business as a cannabis business” shall mean the commencing, conducting, operating, managing or carrying on of a cannabis business, whether done as owner, or by means of an officer, agent, manager, employee, or otherwise, whether operating from a fixed location in the city or coming into the city from an outside location to engage in such activities. A person shall be deemed engaged in business within the city if:
1. Such person or person’s employee maintains a fixed place of business within the city for the benefit or partial benefit of such person;
2. Such person or person’s employee owns or leases real property within the city for business purposes;
3. Such person or person’s employee regularly maintains a stock of tangible personal property in the city for sale in the ordinary course of business;
4. Such person or person’s employee regularly conducts solicitation of business within the city; or
5. Such person or person’s employee performs work or renders services in the city.
The foregoing specified activities shall not be a limitation on the meaning of “engaged in business.”
“Evidence of doing business” shall mean evidence such as, without limitation, use of signs, circulars, cards or any other advertising media, including the use of internet or telephone solicitation, or representation to a government agency or to the public that such person is engaged in a cannabis business in the city.
“Fiscal year” shall mean July 1 through June 30 of the following calendar year. “Gross Receipts,” except as otherwise specifically provided, shall mean the total amount actually received or receivable from all sales; the total amount or compensation actually received or receivable for the performance of any act or service, of whatever nature, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise; discounts, rents, royalties, fees, commissions, dividends, and gains realized from trading in stocks or bonds, however designated. “Gross receipts” shall include all receipts, cash, credits and property of any kind or nature, without any deduction therefrom on account of the cost of the property sold, the cost of
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Packet Pg. 480 Attachment: Ordinance (3677 : Ballot Measure on Cannabis) 4 IRV #4864-8239-9007 v2
materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever. However, the following shall be excluded from Gross Receipts:
1. Cash discounts where allowed and taken on sales.
2. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser.
3. Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts.
4. Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery or other equipment used by the taxpayer in the regular course of the taxpayer's business.
5. Cash value of sales, trades or transactions between departments or units of the same business.
6. Whenever there are included within the gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectible in a subsequent year, those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of such amounts excluded as uncollectible are subsequently collected they shall be included in the amount of gross receipts for the period when they are recovered.
7. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one dollar.
8. Amounts collected for others where the business is acting as an agent or trustee and to the extent that such amounts are paid to those for whom collected. These agents or trustees must provide the Tax Administrator with the names and the addresses of the others and the amounts paid to them. This exclusion shall not apply to any fees, percentages, or other payments retained by the agent or trustees.
9. Retail sales of t-shirts, sweaters, hats, stickers, key chains, bags, books, posters or other personal tangible property which the Tax Administrator has excluded in writing shall not be subject to the cannabis business tax under this chapter. However, any retail sales not subject to this chapter as a result of the administrative ruling shall be subject to the appropriate business tax under any other applicable provision of this code as determined by the Tax Administrator.
“Person” shall mean an individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, collective or any other group or combination acting as a unit, whether organized as a nonprofit or for-profit entity, and includes the plural as well as the singular number.
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Packet Pg. 481 Attachment: Ordinance (3677 : Ballot Measure on Cannabis) 5 IRV #4864-8239-9007 v2
“Sale” shall mean any sale, exchange, or barter or other transaction for any consideration. “State license” or “license” shall mean a license issued by the State of California, or one of its departments or divisions, pursuant to California Business & Professions Code section 26000, et seq. and any subsequent State of California legislation regarding the same, to engage in commercial cannabis activity.
“Tax Administrator” shall mean the city finance director.
3.32.050 Tax imposed.
A. There is established and imposed upon each person who is engaged in business as a cannabis business an annual cannabis business tax at the rates set forth in this chapter. The tax imposed by this chapter is upon the privilege of conducting business within the city and is not a sales tax or use tax.
B. The cannabis business tax upon every person who engages in business in the city as a cannabis business shall not exceed the maximum annual rate of eight percent (8%) of the gross receipts.
C. The city council may by resolution, in its discretion, implement tax rates lower than the maximum rates established in subsection (B) of this section for all persons engaged in a cannabis business in the city, including establishing different tax rates for different categories of cannabis businesses, including for medical versus adult recreational use or for products of different potencies. The city council may, by resolution, also decrease or increase any such tax rate from time to time, provided that the tax rate shall not, at any time, exceed the maximum tax rates established in subsection (B) of this section.
3.32.060 Registration, reporting and remittance of tax.
A. All persons engaging in a cannabis business, whether an existing, newlyestablished or acquired business, shall register with the Tax Administrator’s office by the later of:
1. 30 days after commencing operation; or
2. January 1, 2023 and shall annually renew such registration on or before the anniversary of the initial registration for that business.
B. Registrants shall furnish to the Tax Administrator a statement sworn under penalty of perjury, upon a form provided by the Tax Administrator, setting forth:
1. Every name under which the person or business engages in a cannabis business in the city;
2. The names and addresses of every person who is an owner, principal or manager of the cannabis business;
3. The nature or kind of all cannabis business activity to be conducted;
4. The place or places whether or not in the city where such cannabis business is to be conducted; and
5. Any further information which the Tax Administrator may require.
C. The cannabis business tax imposed by this chapter shall be imposed on a fiscal year basis and shall be due and payable in monthly installments as follows:
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Packet Pg. 482 Attachment: Ordinance (3677 : Ballot Measure on Cannabis) 6 IRV #4864-8239-9007 v2
1. Each person owing a cannabis business tax shall, on or before the last day of the month following the close of the prior calendar month or at the close of any reporting period which may be established by the Tax Administrator, prepare and submit a tax return statement on the form prescribed by the Tax Administrator, including the basis of its calculation, and remit to the Tax Administrator the tax due.
2. The taxpayer shall remit the tax owed to the Tax Administrator when the return is due whether or not a return is filed as required.
3. The tax due shall be no less than the monthly installment due.
4. Tax statements and payments for all outstanding taxes owed the city are due to the Tax Administrator within 15 days of cessation of business for any reason or transfer of ownership, operation, or management.
5. The Tax Administrator may, at his or her discretion, establish an alternate reporting and payment period for any taxpayer as the Tax Administrator deems necessary to insure collection of the tax.
3.32.070 Payments and communications – timely remittance.
Whenever any payment, statement, report, request or other communication is due, it must be received by the Tax Administrator on or before the final due date. A postmark will not be accepted as timely remittance. If the due date falls on Saturday, Sunday, holiday, or a day City Hall is closed, the due date shall be the next regular business day on which City Hall is open to the public.
3.32.080 Payment - when taxes deemed delinquent.
Unless otherwise specifically provided under other provisions of this chapter, the taxes required to be paid pursuant to this chapter shall be deemed delinquent if not received by the Tax Administrator on or before the due date as specified in Sections 3.32.060 and 3.32.070.
3.32.090 Notice not required by the City.
The city may as a courtesy send a tax notice to the business. However, the Tax Administrator is not required to send a delinquency or other notice or bill to any person subject to the provisions of this chapter. Failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this chapter.
3.32.100 Penalties and interest.
A. Any person who fails or refuses to pay any cannabis business tax required to be paid pursuant to this chapter on or before the due date shall pay penalties and interest as follows:
1. A penalty equal to ten percent (10%) of the amount of the tax, in addition to the amount of the tax, plus interest on the unpaid tax calculated from the due date of the tax at the rate of one-half of one percent (0.5%) per month, compounded with each delinquency.
2. If the tax remains unpaid for a period exceeding two calendar months beyond the due date, an additional penalty equal to twenty-five percent (25%) of the amount of the tax, plus interest at the rate of one-half of one percent (0.5%) per month on the unpaid tax and on the unpaid penalties.
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Packet Pg. 483 Attachment: Ordinance (3677 : Ballot Measure on Cannabis) 7 IRV #4864-8239-9007 v2
3. Interest shall be applied at the rate of one-half of one percent (0.5%) per month on the first day of the month for the full month, and will continue to accrue monthly on the tax and penalty until the balance is paid in full.
B. Whenever a check or electronic payment is submitted in payment of a cannabis business tax and the payment is subsequently returned unpaid by the bank for any reason, the taxpayer will be liable for the tax amount due plus any fees, penalties and interest as provided for in this chapter, and any other amount allowed under state law.
3.32.110 Refunds, credits, and procedures.
A. No refund shall be made of any tax collected pursuant to this chapter, except as provided in this section.
B. No refund of any tax collected pursuant to this chapter shall be made because of the discontinuation, dissolution, or other termination of a business.
C. Whenever the amount of any cannabis business tax, penalty or interest has been overpaid, paid more than once, or has been erroneously collected or received by the city under this chapter, it may be refunded to the claimant who paid the tax provided that a written claim for refund is filed with the Tax Administrator within three years of the date the tax was originally due and payable.
D. The Tax Administrator, his or her designee or any other city officer charged with the administration of this chapter shall have the right to examine and audit all the books and business records of the claimant to determine the eligibility of the claimant to the claimed refund.
No claim for refund shall be allowed if the claimant refuses to allow such examination of claimant's books and business records after request by the Tax Administrator to do so.
E. If the cannabis business tax was erroneously paid and the error is attributable to the city, the city shall refund the amount of tax erroneously paid up to one year from when the error was identified. If an error is attributable to the claimant, the city may retain an amount established by resolution of the city council from time to time in an amount sufficient to recover the city’s cost to process the claim and refund the balance.
3.32.120 Exemptions from the tax.
The provisions of this chapter shall not apply to personal cannabis cultivation as defined in the MAUCRSA or any subsequent state legislation regarding the same. This chapter shall not apply to personal use of cannabis that is specifically exempted from state licensing requirements, that meets the definition of personal use or equivalent terminology under state law, and for which the individual receives no compensation whatsoever related to that personal use.
3.32.130 Administration of the tax.
A. It shall be the duty of the Tax Administrator to collect the taxes, penalties, fees, and perform the duties required by this chapter.
B. For purposes of administration and enforcement of this chapter generally, the Tax Administrator may from time to time promulgate such administrative rules and procedures consistent with the purpose, intent, and express terms of this chapter as he or she deems necessary to implement or clarify such provisions or aid in enforcement.
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Packet Pg. 484 Attachment: Ordinance (3677 : Ballot Measure on Cannabis) 8 IRV #4864-8239-9007 v2
C. The Tax Administrator may take such administrative actions as needed to administer the tax, including but not limited to:
1. Provide all cannabis business taxpayers forms for the reporting of the tax;
2. Provide information to any taxpayer concerning the provisions of this chapter;
3. Receive and record all taxes remitted to the city as provided in this chapter;
4. Maintain records of taxpayer reports and taxes collected pursuant to this chapter;
5. Assess penalties and interest to taxpayers pursuant to this chapter;
6. Determine amounts owed and enforce collection pursuant to this chapter; and/or
7. Take such other reasonable steps as he or she deems necessary and appropriate to enforce this chapter.
3.32.140 Enforcement - action to collect.
A. Any taxes, penalties and/or fees required to be paid under the provisions of this chapter shall be deemed a debt owed to the city. Any person owing money to the city under the provisions of this chapter shall be liable in an action brought in the name of the city for the recovery of such debt. The provisions of this chapter shall not be deemed a limitation upon the right of the city to bring any other action including criminal, civil and equitable actions, based upon the failure to pay the tax, penalties and/or fees imposed by this chapter or the failure to comply with any of the provisions of this chapter.
B. In addition to any other remedies available under federal, state, or local law, if any amount required to be paid to the city under this chapter is not paid when due, the Tax Administrator may, within three years after the amount is due record a certificate of lien specifying the amount of taxes, fees and penalties due, and the name and address of the individual or business as it appears on the records of Tax Administrator. The lien shall also specify that the Tax Administrator has complied with all provisions of this chapter in the determination of the amount required to be paid. From the time of the filing for record, the amount required to be paid, together with penalties thereon, constitutes a lien upon all real property in the city owned by the individual or business, or subsequently acquired by the individual or business before the lien expires. The lien has the force, effect, and priority of a judgment lien and shall continue for ten years from filing of the certificate unless sooner released or otherwise discharged.
C. At any time within three years after any individual or business is delinquent in the payment of any amount herein required to be paid or within three years after the last recording of a certificate of lien under subsection B of this section, the Tax Administrator may issue a warrant for the enforcement of any liens and for the collection of any amount required to be paid to the city under this chapter. The warrant shall be directed to the sheriff and shall have the same effect as a writ of execution. The warrant shall be levied and sale made pursuant to it in the same manner and with the same effect as a levy of and a sale pursuant to a writ of execution. The Tax Administrator may pay or advance to the sheriff, the same fees, commissions and expenses for service provided by law for similar services pursuant to a writ of execution. The Tax Administrator shall approve the fees for publication in the newspaper.
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Packet Pg. 485 Attachment: Ordinance (3677 : Ballot Measure on Cannabis) 9 IRV #4864-8239-9007 v2
D. At any time within three years after recording a lien against any individual or business, if the lien is not discharged and released in full, the Tax Administrator may forthwith seize any asset or property, real or personal (including bank account), of the operator and sell at public auction the asset or property, or a sufficient part of it to pay the amount due together with any penalties and interest imposed for the delinquency and any cost incurred on account of the seizure and sale. Assets or property of the business subject to seizure and sale subject to this chapter shall not include any assets or property which is exempt from execution under the provisions of Code of Civil Procedure.
3.32.150 Apportionment.
If a business subject to the tax is operating both within and outside the city, it is the intent of the city to apply the cannabis business tax so that the measure of the tax fairly reflects the proportion of the taxed activity actually carried on in the city. To the extent federal or state law requires that any tax due from any taxpayer be apportioned, the taxpayer may indicate said apportionment on the form prescribed by the City for submitting cannabis business taxes . The Tax Administrator may promulgate administrative procedures for apportionment as he or she finds useful or necessary.
3.32.160 Constitutionality and legality; not a sales tax.
A. This tax is intended to be applied in a manner consistent with the United States Constitution and state law. None of the tax provided for by this chapter shall be applied in a manner that causes an undue burden upon interstate commerce, a violation of the equal protection and due process clauses of the Constitution of the United States or the State of California or a violation of any other provision of applicable law.
B. The taxes imposed under this chapter are excises on the privilege of engaging in a commercial business in the city. It is not a sales or use tax and shall not be calculated or assessed as such. Nevertheless, at the option of a commercial cannabis business, the tax may be separately identified on invoices, receipts and other evidences of transactions.
3.32.170 Audit and examination of records and equipment.
A. The Tax Administrator shall have the power to audit and examine all books and records of persons engaged in cannabis businesses, including both state and federal income tax returns, sales tax returns, or other evidence documenting the gross receipts of persons engaged in cannabis businesses, and, where necessary, all equipment, of any person engaged in cannabis businesses in the city, for the purpose of ascertaining the amount of commercial cannabis tax, if any, required to be paid by the provisions hereof, and for the purpose of verifying any statements or any item thereof when filed by any person pursuant to this chapter.
B. It shall be the duty of every person liable for the collection and payment to the city of any tax imposed by this chapter to keep and preserve, for a period of at least four years, all records as may be necessary to determine the amount of such tax as he or she may have been liable for the collection of and payment to the city, which records the Tax Administrator or his/her designee shall have the right to inspect at all reasonable times.
3.32.180 Other licenses, permits, taxes, fees, or charges.
A cannabis business subject to the provisions of this chapter shall also be subject to the business license tax requirements defined in Title 5 of the Healdsburg Municipal Code. Nothing
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Packet Pg. 486 Attachment: Ordinance (3677 : Ballot Measure on Cannabis) 10 IRV #4864-8239-9007 v2
contained in this chapter shall be deemed to repeal, amend, be in lieu of, replace or in any way affect any requirements for any permit or license required by, under or by virtue of any other provision of this code or any other ordinance or resolution of the city, nor be deemed to repeal, amend, be in lieu of, replace or in any way affect any tax, fee or other charge imposed, assessed or required by, under or by virtue of any other chapter of this code or any other ordinance or resolution of the city. Any references made or contained in any other chapter of this code to any licenses, license taxes, fees, or charges, or to any schedule of license fees, shall be deemed to refer to the licenses, license taxes, fees or charges, or schedule of license fees, provided for in other chapters of this code.
3.32.190 Payment of tax does not authorize activity.
The payment of a tax imposed under this chapter shall not be construed to authorize the conduct or continuance of any illegal business or of a legal business in an illegal manner. Nothing in this chapter authorizes or implies the lawfulness of any activity connected with the distribution or possession of cannabis unless otherwise authorized and allowed in strict and full conformance with this code. Nothing in this chapter shall be applied or construed as authorizing the sale of cannabis.
3.32.200 Deficiency determinations.
If the Tax Administrator is not satisfied that any statement filed as required under the provisions of this chapter is correct, or that the amount of tax is correctly computed, he or she may compute and determine the amount to be paid and make a deficiency determination upon the basis of the facts contained in the statement or upon the basis of any information in his or her possession or that may come into his or her possession within three years of the date the tax was originally due and payable. One or more deficiency determinations of the amount of tax due for a period or periods may be made. When a person discontinues engaging in a business, a deficiency determination may be made at any time within three years thereafter as to any liability arising from engaging in such business whether or not a deficiency determination is issued prior to the date the tax would otherwise be due. Whenever a deficiency determination is made, a notice shall be given to the person concerned in the same manner as notices of assessment are given under section 3.32.220.
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3.32.210 Failure to report.
A. Under any of the following circumstances, the Tax Administrator may make and give notice of an assessment of the amount of tax owed by a person under this chapter at any time:
1. If the person has not filed a complete statement required under the provisions of this chapter;
2. If the person has not paid the tax due under the provisions of this chapter; or
3. If the person has not, after demand by the Tax Administrator, filed a corrected statement, or furnished to the Tax Administrator adequate substantiation of the information contained in a statement already filed, or paid any additional amount of tax due under the provisions of this chapter.
B. The notice of assessment shall separately set forth the amount of any tax known by the Tax Administrator to be due or estimated by the Tax Administrator, after consideration of all information within the Tax Administrator's knowledge concerning the business and activities of the person assessed, to be due under each applicable chapter of this Title, and shall include the amount of any penalties or interest accrued on each amount to the date of the notice of assessment.
3.32.220 Tax assessment - notice requirements.
The notice of assessment shall be served upon the person either by personal delivery, or by a deposit of the notice in the United States mail, postage prepaid thereon, addressed to the person at the address of the location of the business or to such other address as he or she shall register with the Tax Administrator for the purpose of receiving notices provided under this chapter; or, should the person have no address registered with the Tax Administrator for such purpose, then to such person's last known address. For the purposes of this chapter, a service by mail is complete at the time of deposit in the United States mail.
3.32.230 Tax assessment - hearing, application, and determination.
A. Within 15 days after the date of service the person may apply in writing to the Tax Administrator for a hearing on the assessment. If application for a hearing before the city is not made within the time herein prescribed, the tax assessed by the Tax Administrator shall become final and conclusive.
B. Within 30 days of the receipt of any such application for hearing, the Tax Administrator shall cause the matter to be set for hearing before him or her no later than 30 days after the receipt of the application, unless a later date is agreed to by the Tax Administrator and the person requesting the hearing. Notice of such hearing shall be given by the Tax Administrator to the person requesting such hearing not later than ten days prior to such hearing.
At such hearing said applicant may appear and offer evidence why the assessment as made by the Tax Administrator should not be confirmed and fixed as the tax due. After such hearing, the Tax Administrator shall determine and reassess the proper tax to be charged and shall give written notice to the person in the manner prescribed in section 3.32.220 for giving notice of assessment.
C. The decision of the Tax Administrator under this section may be appealed to the city manager as set forth in section 2.36.090 of the Healdsburg Municipal Code.
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3.32.240 Conviction for violation - taxes not waived.
The conviction and punishment of any person for failure to pay the required tax shall not excuse or exempt such person from any civil action for the tax debt unpaid at the time of such conviction. No civil action shall prevent a criminal prosecution for any violation of the provisions of this chapter or of any state law requiring the payment of all taxes.
3.32.250 Violation deemed misdemeanor.
Any person violating any of the mandatory provisions of this chapter shall be deemed guilty of a misdemeanor and is punishable therefore as provided in section 1.12.070 of this code.
3.32.260 Remedies cumulative.
The penalties set forth in this chapter are cumulative and in addition to all other remedies, violations, and penalties set forth in the City Municipal Code, or in any other ordinance, laws, rules or regulations of the city, county, or the State of California.
SECTION 2. TAX STATEMENT OF FACTS. This Ordinance creates a business tax on cannabis businesses within the city at a maximum rate of eight percent of gross receipts. The revenue generated from the collection of such tax may be spent for unrestricted general revenue purposes.
SECTION 3. SEVERABILITY. If any provision, section, paragraph, sentence, phrase or word of this Ordinance is rendered or declared invalid, illegal or unconstitutional by any final action in a court of competent jurisdiction or by reason or any preemptive legislation, such unconstitutionality, illegality, or invalidity shall only affect such provision, section, paragraph, sentence, phrase or word and shall not affect or impair any remaining provisions, sections, paragraphs, sentences, phrases or words, or the application of this Ordinance to any other person or circumstance, and to that end, the provisions hereof are severable. It is hereby declared to be the intention of the city that that Ordinance would have been adopted had such unconstitutional, illegal, or invalid provision, section, paragraph, sentence, phrase, or word not been included herein.
SECTION 4. AMENDMENT OR REPEAL. This Ordinance may be repealed or amended by the city council without a vote of the people to the extent allowed by law. However, as required by Title XIII C of the California Constitution, voter approval is required for any amendment that would increase the rate of any tax levied pursuant to this chapter. The people of the City of Healdsburg affirm that the following actions shall not constitute an increase of the rate of a tax:
A. The restoration of the rate of the tax to a rate that is no higher than that set by this chapter, if the city council has acted to reduce the rate of the tax; B. An action that interprets or clarifies the methodology of the tax, or any definition applicable to the tax, so long as interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the language of this chapter; or C. The collection of the tax imposed by this chapter, even if the city had, for some period of time, failed to collect the tax.
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Packet Pg. 489 Attachment: Ordinance (3677 : Ballot Measure on Cannabis) 13 IRV #4864-8239-9007 v2
SECTION 5. CALIFORNIA ENVIRONMENTAL QUALITY ACT. This Ordinance is exempt from the California Environmental Quality Act (CEQA), Public Resources Code Section 21000 et seq., because it can be seen with certainty that there is no possibility that the enactment of this Ordinance would have a significant effect on the environment (Pub. Resources Code § 21065; CEQA Guidelines §§ 15378(b)(4), 15061(b)(3)) and because the Ordinance involves the approval of government revenues to fund existing services (Pub. Resources Code § 21080, subd. (b)(8); CEQA Guidelines § 15273(a)(4)). It does not make any commercial activity lawful nor commit the city to fund any particular activity.
SECTION 6 . EFFECTIVE DATE. This ordinance shall become effective on January 1, 2023 if approved by a majority of the voters casting votes on the tax in the election.
SECTION 7. CERTIFICATION AND PUBLICATION. Upon approval by the voters, the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause it to be published according to law.
I hereby certify that the foregoing Ordinance was PASSED, APPROVED and ADOPTED by the People of the City of Healdsburg voting on the 8 th day of November, 2022.
AYES: Councilmembers: ( )
NOES: Councilmembers: ( )
ABSENT: Councilmembers: ( )
ABSTAINING: Councilmembers: ( )
SO ORDERED: ATTEST:
_________________________________ ____________________________________ Osvaldo Jimenez, Mayor Raina Allan, City Clerk
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Packet Pg. 490 Attachment: Ordinance (3677 : Ballot Measure on Cannabis)
CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: June 21, 2022
SUBJECT: Ballot Measure to Amend Transient Occupancy Tax Ordinance PREPARED BY: Andrew Sturmfels, Administrative Services Director STRATEGIC INITIATIVE(S):
Establish Proactive Policies/Programs to Continue to Promote Economic Diversity & Sustainable Growth
Provide Effective Governance
Provide Resident-Driven Community Services
RECOMMENDED ACTION(S):
Adopt a Resolution placing an Ordinance on the ballot for the November 8, 2022 election and requesting that the Sonoma County Elections Department conduct said election. The ordinance would not change the rate or allocation of the current TOT, but would amend the permitted uses of funds to allow the construction of capital improvements and the payment of principle and interest on debt. A two-thirds vote of the City Council is required to adopt this Resolution.
COMMUNITY ENGAGEMENT/OUTREACH:
The funding plan for parks, as well as the specific need for this action, has been presented and discussed at public meetings of the City Council in both 2021 and 2022. The approach was also presented to the Parks and Recreation Commission at a public meeting. Should the City Council approve the resolution, staff is prepared to embark upon a voter education effort to provide factual information on the measure to residents.
BACKGROUND:
The City first adopted a 4% Transient Occupancy Tax (TOT) in 1965. Council subsequently adopted ordinances in 1973, 1975, 1983, and 1992, all increasing the rate of TOT, reaching a level of 10% in 1992. In 2002, the voters of Healdsburg approved a ballot initiative, known as Ordinance No. 997, that affirmed the City’s 10% TOT and restricted all of the proceeds of the TOT for the provision of community services only.
In 2004, voters of the City of Healdsburg passed a ballot measure known as Ordinance No. 1010, adopting Chapter 3.12 of the Healdsburg Municipal Code, authorizing the City Council to
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increase the TOT by an additional 2% to a maximum rate of 12%, provided that the City Council, through the City’s budget review process, determines that additional General Fund revenues are needed to maintain City Services at existing Fiscal year 2004-2005 service levels.
In 2016, voters of the City of Healdsburg passed a ballot measure known as Ordinance No. 1160, increasing the TOT rate by 2% to a maximum 14%, and restricting the additional 2% increment for the provision of affordable housing programs and services.
The current TOT Ordinance in effect imposes a tax on visitors staying in all lodging in the City, including hotels, motels, resorts, inns, suites, and B&Bs. The current TOT Ordinance rate is 14%.
Pursuant to Chapter 3.12 of the Healdsburg Municipal Code (“HMC”), the first 10% of the 14% TOT Ordinance revenue must be used to provide “community services,” the next 2% of the 14% TOT Ordinance revenue shall be used for the provision of “affordable housing services and programs,” and any transient occupancy tax in excess of 12% shall be paid into the City’s general fund for general fund purposes.1“Community services” and “affordable housing services and programs” are defined in the HMC as follows:
A. “Affordable housing services and programs” means the provision of financing and other services and programs provided by the City of Healdsburg to prospective and current tenants, owners and/or developers to assist in increasing, improving and preserving the City’s supply of housing available to households identified by income category in HMC
20.28.310, as the same may be amended from time to time. 2 D. “Community services” means the services provided by the City of Healdsburg community services department, including the management and operation of fields for soccer, baseball, and other sports, parks, open space, and recreational facilities, including but not limited to Recreation, Plaza, Badger, Giorgi, “the Parkland Farms,” Carson Warner Memorial Skate Park, and the Villa Chanticleer; support for senior services; transit services and the operation and management of the Healdsburg Airport; civic promotion; special event coordination; distribution of information about community services; planning, designing, and engineering capital improvement projects; support for community enrichment classes and recreational programs; scheduling and coordination of outdoor area usage at local schools, parks, and community facilities; provision of transit services for individuals with special needs; and administering contracts for maintenance and operation of community services and facilities. 3
DISCUSSION/ANALYSIS:
With the growth of the tourism sector and new hotels opening, TOT Ordinance revenue has increased since the measure was updated in 2016. As such, the City wishes to utilize those increased revenues to finance larger projects such as the creation of new public parks and community services facilities and development of more affordable housing. 1 HMC § 3.12.160.
2 HMC § 3.12.020(A).
3 HMC § 3.12.020(D).
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Specifically, in 2021 the City Council approved a Parks Master Plan for the redevelopment of Badger Park and the development of a new park at Saggio Hills. At that time, the total estimated cost of the Saggio Hills Park Development Project was $32,259,762, and the Badger Park redevelopment project was estimated at $13,408,812. In March of 2022, the City Council established strategic goals for the upcoming 2022-23 fiscal year, which included a goal to create a long-term funding plan for parks projects. Council directed staff to incorporate the funding plan in the two-year budget development process.
During the Spring of 2022, as part of the budget development process, staff presented Council with a proposal to issue bonds backed by TOT revenue for the purposes of constructing Saggio Hills park and redeveloping Badger Park. Bonds would be issued at the time construction was ready to commence, which is expected to be in late Spring of 2024. The amount of the bonds and the specific projects to be financed will be determined by the City Council at that time. The rationale behind this approach is that the City has seen sufficient revenue growth to absorb principal and interest payments without needing to make any reductions to current service levels (in fact, service levels are proposed to expand in the next fiscal year). However, if the City were to wait on these park projects until adequate funding accrued over time, it would likely be several years or more before construction could commence. Further, the costs of construction have been increases at a pace that far exceeds current interest rates. There is a risk, therefore, that project costs could exceed revenue growth, keeping the projects perpetually out of reach without a more aggressive approach.
In order to have a successful bond issuance, staff identified three tasks that were necessary to complete. The firsts item is eliminating existing debt in the Community Services Fund, which includes debt from the purchase of the community center and pension obligation bonds. The second is to create a bond reserve to help reassure the market the City has the ability to meet the financial obligations of the program. The third item is to request the voters adopt the proposed changes outlined in this staff report to clarify the City’s ability to complete the proposed debt issuance. Council took action to effectuate the first two items as part of the fiscal year 2022-23 and 2023-24 budget adoption on June 6th, 2022, and requested staff return with a proposed ballot measure for consideration.
Staff are proposing the voters consider the language proposed herein, which would give the City clear authority to issue bonds secured by the 10% community services and/or 2% affordable housing TOT revenue streams to finance these additional public projects. No bond issuances are for affordable housing are contemplated at this time, but staff recommends that the ordinance amendment apply to that funding as well in order to provide maximum flexibility to deliver projects in the future. If the voters adopt the language proposed herein, the mechanics and rate of the TOT ordinance will remain the same.
The current HMC language defining “community services” does not refer to incurring financing costs or paying interest, which would be required of any bond financing. Moreover, the HMC seems to contemplate only the provision of “services,” not the acquisition or construction of “capital improvements” or “facilities” for possible uses of 10% of the TOT Ordinance revenue.
Similarly, the current HMC language defining “affordable housing services and programs” does not clearly authorize the City to incur financing costs or pay interest as a part of bond financing.
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To clarify the language and to ensure proper use of TOT Ordinance funds, the City has prepared the attached ordinance amending the TOT Ordinance for presentation to the voters. The amendments are targeted specifically at clarifying the City’s authority with regard to use of TOT Ordinance revenue for payment of debt service, principal, and interest and any other related cost of issuance of bonds secured by the 10% or 2% TOT Ordinance revenue streams. The proposed ordinance does not alter the tax rate, the percentage of tax revenues allocated for the percentage of community services, affordable housing and the general fund, the persons subject to or exempt from the tax; the mechanics of the collection of the tax; or any other provisions of the existing TOT Ordinance.
The TOT Ordinances approved by the voters in 2002, 2004, and 2016 were adopted as a special tax. Special taxes are levied for a specific use so funds derived from such taxes may only be utilized for the uses authorized by the statute.4 California Constitution Article XIII A, § 4 and Article XIII C, § 2(d) require “special tax” to be adopted by 2/3 of the voters. Consistent with these Constitutional provisions, courts interpreting tax measures approved by the voters strive to ensure that revenues raised by voter-approved special taxes are used solely for their authorized purposes. Indeed, it is the intent of the voters that governs how special tax revenues are used.5 The proposed Resolution would place the measure amending the HMC’s provisions regarding the TOT Ordinance on the November ballot and request that the County consolidate the election on the measure with all other elections taking place in the City on November 8, 2022. Like all other resolutions placing measures on the ballot, by adopting this resolution, the City Council also authorizes the City Manager to reimburse the County for the costs of conducting the election. The Resolution also authorizes the City Council to form a subcommittee of two Council Members to draft an argument in favor of the measure and an argument in rebuttal to any opposition, on behalf of the City Council. Consistent with the Brown Act, the remaining Council Members may then review the argument in the Clerk’s Office to sign on to the argument but may not circulate comments to other Council Members.
Should the ballot measure be successful, staff will begin preparations for a bond issuance in Fiscal Year 2023-24 for the purposes of constructing the new Saggio Hills Park and the redevelopment of Badger Park.
ENVIRONMENTAL STEWARDSHIP:
Ensuring the fiscal health of our utility funds is a critical component to ensuring funds are available to complete future projects that will have a direct and positive impact on the environment.
ALTERNATIVES:
Staff does not propose any alternative actions.
FISCAL IMPACT:
Costs to administer the election were included in the approved fiscal year 2022-23 budget. If the 4 Cal. Const. Art. XIII C, § 1(c).
5 See e.g., People v. Rayon (2021) 11 Cal. 5th 1056. 1065.
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ballot measure were successful, the City would be authorized to issue bonds to conduct large scale public infrastructure projects for community services and affordable housing that it currently cannot finance. Additionally, any future debt issuance would be subject to Council approval.
ENVIRONMENTAL ANALYSIS:
The adoption of this Resolution 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
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CITY OF HEALDSBURG
RESOLUTION -2022
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG (1) ORDERING THE SUBMISSION TO THE QUALIFIED
ELECTORS OF THE CITY A MEASURE AMENDING THE TRANSIENT
OCCUPANCY TAX ORDINANCE OF THE CITY TO PERMIT THE USE OF
TRANSIENT OCCUPANCY TAX REVENUES TO ACQUIRE AND
CONSTRUCT CAPITAL IMPROVEMENTS FOR PARKS, COMMUNITY
SERVICES FACILITIES AND AFFORDABLE HOUSING, INCLUDING
PAYMENT OF PRINCIPAL, INTEREST, AND COSTS OF INDEBTEDNESS TO BE HELD ON NOVEMBER 8, 2022; (2) REQUESTING THE BOARD OF
SUPERVISORS OF THE COUNTY OF SONOMA TO CONSOLIDATE THE
ELECTION REGARDING THE MEASURE WITH THE NOVEMBER 8, 2022
STATEWIDE GENERAL ELECTION AND TO PERMIT THE SONOMA
COUNTY ELECTIONS DEPARTMENT TO CONDUCT SAID ELECTION; (3)
DIRECTING THE CITY CLERK TO TAKE ALL NECESSARY ACTIONS
AND COORDINATE WITH THE COUNTY OF SONOMA TO ENSURE
PLACEMENT OF THE MEASURE ON THE NOVEMBER 8, 2022 BALLOT; (4) AUTHORIZING THE CITY MANAGER TO REIMBURSE THE COUNTY OF SONOMA FOR THE COSTS TO CONDUCT THE ELECTION; (5)
AUTHORIZING THE CITY COUNCIL TO AUTHOR THE ARGUMENT IN
FAVOR OF THE MEASURE AND ANY REBUTTAL ARGUMENT; AND (6)
DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL
ANALYSIS
WHEREAS, pursuant to section 2.40.010 of the Healdsburg Municipal Code, the general municipal election of the City shall be held on the same day as the statewide general election; and
WHEREAS, pursuant to Section 9222 of the California Elections Code the City Council may submit the Ordinance directly to the voters; and WHEREAS, in 2004 the voters of the City of Healdsburg adopted a measure imposing a Transient Occupancy Tax (“TOT Ordinance”) on all visitors for the privilege of occupancy in any hotel, motel, resort, inn, suite, or B&B in the City of Healdsburg; and WHEREAS, the TOT Ordinance imposes a special tax, as defined by California Constitution Articles XIII C, § 1(c), and was adopted by 2/3 of the qualified voters in 2014; and
WHEREAS, the City Council desires to submit to the voters at the general municipal election scheduled for Tuesday, November 8, 2022 (the “Election”), a measure amending the TOT Ordinance to permit the use of Transient Occupancy Tax revenues to acquire and construct capital improvements for parks, community services facilities and affordable housing, including payment of principal, interest, and costs of indebtedness; and WHEREAS, such an amendment must be presented to and adopted by 2/3 of the qualified voters of the City, pursuant to California Constitution Article XIII C, § 2(d) and
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Packet Pg. 496 Attachment: Resolution (3678 : TOT Bond Measure) Resolution No. -2022
Article XIII A, § 4; and
WHEREAS, the County of Sonoma will be conducting a statewide general election in Healdsburg on November 8, 2022; and
WHEREAS, it is in the best interest of the City of Healdsburg to consolidate the City election with the County election to be conducted on November 8, 2022; and WHEREAS, pursuant to Elections Code Section 10002, the governing body of any city may by resolution request the Board of Supervisors of the county to permit the county elections official to render specified services to the city or district relating to the conduct of an election, subject to the city reimbursing the county in full for the services performed upon presentation of a bill to the city; and
WHEREAS, pursuant to Elections Code Section 10400, whenever two or more elections are called to be held on the same day, in the same territory, or in territory that is in part the same, they may be consolidated upon the order of the governing body calling the elections; and
WHEREAS, pursuant to Elections Code Section 10403, whenever an election called by a city for the submission of any question, proposition, or office to be filled is to be consolidated with a statewide election, and the question, proposition, or office to be filled is to appear upon the same ballot as that provided for that statewide election, the city shall, at least 88 days prior to the date of the election, file with the board of supervisors, and a copy with the elections official, a resolution of its governing board requesting the consolidation, and setting forth the exact form of any question, proposition, or office to be voted upon at the election, as it is to appear on the ballot. Upon such request, the Board of Supervisors may order the consolidation. The resolution requesting the consolidation shall be adopted and filed at the same time as the adoption of the ordinance, resolution, or order calling the election; and WHEREAS, the City Council hereby requests the County Clerk of Sonoma County provide election services that are normally provided to the City of Healdsburg; and WHEREAS, the ordinance attached hereto as Exhibit “A” and incorporated herein by reference (the “Ordinance”) would amend the current TOT measure to clearly authorize the City to finance acquisition and construction of capital improvements for parks, community services facilities, and affordable housing, including payment of principal, interest, and costs of indebtedness.
NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg does resolve, declare, determine and order as follows:
Section 1. That pursuant to Government Code section 36503, and Healdsburg Municipal Code section 2.40.010, there is called and ordered to be held in the City of Healdsburg a general municipal election.
Section 2. The City Council orders submitted to the voters a measure for the
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Packet Pg. 497 Attachment: Resolution (3678 : TOT Bond Measure) Resolution No. -2022
approval of the Ordinance amending the Transient Occupancy Tax Ordinance of the City to Permit the Use of Transient Occupancy Tax Revenues to Acquire and Construct Capital Improvements for Parks, Community Services Facilities and Affordable Housing, including Payment of Principal, Interest, and Costs of Indebtedness at such general municipal election.
The full text of the proposed Ordinance, attached hereto as Exhibit A, shall be printed and made available to voters pursuant to Section 9223 of the California Elections Code.
Section 3. The complete text of the Transient Occupancy Tax Measure to be submitted to the voters for approval is attached to this Resolution as Exhibit "A," and the City Clerk shall maintain a copy of the measure and shall make the same available for public inspection upon request. The City Council hereby approves the ordinance attached to this Resolution as Exhibit “A,” the form thereof, and its submission to the voters of the City at the November 8, 2022 election.
Section 4. Pursuant to Elections Code Sections 10400 and 10403, the City Council hereby orders an election be called and consolidated with any and all elections also called to be held on November 8, 2022 within the same territory. Further, pursuant to Elections Code Section 10002, the City Council hereby requests the Board of Supervisors of the County of Sonoma to consolidate the election for the above referenced Transient Occupancy Tax Measure with the November 8, 2022 general election and to permit the Sonoma County Elections Department to provide any and all services necessary for conducting the election. The County of Sonoma and its staff are authorized and instructed to procure and furnish any and all official ballots, notices, printed matter and all supplies and equipment and other necessary items in order to properly and lawfully conduct the election; the County of Sonoma is authorized to canvass the returns of the election, which shall be held in all respects as if there were only one election, and only one form of ballot shall be used; and the City Council recognizes that additional cost will be incurred by the County of Sonoma by reason of the consolidation of the election with the Statewide election and agrees to reimburse the County of Sonoma for any costs that are not reimbursed by the State. The City Council hereby authorizes the City Manager to pay the County of Sonoma for said services in full.
Section 5. The City Council acknowledges that the consolidated election will be held and conducted in the manner prescribed in Elections Code section 10418.
Section 6. The measure shall be designated by letter by the Sonoma County Elections Department. The question to appear on the ballot for voter consideration shall be as follows:
Transient Occupancy Tax Measure
Shall the City of Healdsburg adopt an ordinance amending the City’s Transient Occupancy Tax to facilitate acquisition and construction of capital improvements for parks, community services facilities, and affordable housing, including payment of principal, interest, and cost of indebtedness, without altering any other mechanics or rates of the Transient Occupancy Tax? YES
NO
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Packet Pg. 498 Attachment: Resolution (3678 : TOT Bond Measure) Resolution No. -2022
Section 7. Pursuant to Article XIII C of the California Constitution, this measure shall not take effect unless 2/3 of votes cast on the measure at the Election are in favor of the measure, unless another threshold is otherwise required by law.
Section 8. In accordance with Elections Code Section 9282, the City Council authorizes a subcommittee of two Council Members, appointed by the City Council during an open and public meeting, to prepare a written argument, not to exceed 300 words, in favor of the Cannabis Business Tax Measure on behalf of the City Council. The remaining Council Members may review and sign onto the argument in advance of its publication, but may not circulate comments to other Council Members, as limited by the Brown Act. If an argument is filed against the Cannabis Business Tax Measure, the Council authorizes the same subcommittee or a different subcommittee, also appointed by the City Council during an open and public meeting, to prepare a written rebuttal, not to exceed 250 words, which also may be signed by members of the City Council.
Section 9. Ballot arguments and rebuttals shall be filed in accordance with the following:
A. Arguments against the Measure may not exceed 300 words and must be submitted to the City Clerk in compliance with sections 9282 and 9283 of the California Elections Code by 5:00 p.m. on August 19, 2022.
B. Rebuttal arguments are hereby authorized and may not exceed 250 words and must be submitted to the City’s elections official as specified in section 9285 of the California Elections Code, by 5:00 p.m. on August 26, 2022.
Section 10. All previous resolutions providing for the filing of ballot arguments and rebuttal arguments for City measures are hereby repealed and the provisions of this resolution providing for the filing of ballot arguments and rebuttal arguments regarding the Transient Occupancy Tax Measure shall only apply to the election to be held on November 8, 2022, and shall thereafter be repealed.
Section 11. The City Clerk is hereby directed to transmit a copy of the measure to the City Attorney, who shall prepare an impartial analysis of the measure showing the effect of the measure on the existing law and the operation of the measure in accordance with Section 9280 of the California Elections Code, and to file that analysis no later than the deadline established by the Sonoma County elections official.
Section 12. The Board of Supervisors of Sonoma County is hereby requested to issue instructions to the County Election Department to take any and all steps necessary for the holding of the election and to consolidate this ballot measure with any other applicable election conducted on the same day in the City. The Board of Supervisors is further requested to order the County Clerk to set forth in the voter information portion of all sample ballots to be mailed to the qualified electors of the City the full text of the measure and to mail with the sample ballots to the electors printed copies of the full text of the Ordinance, together with the arguments and rebuttal arguments (if any) for and against the measure.
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Packet Pg. 499 Attachment: Resolution (3678 : TOT Bond Measure) Resolution No. -2022
Section 13. Notice of the Election is hereby given and the City Clerk shall give such further notice of the election as required by law.
Section 14. The City Clerk is hereby directed to file a certified copy of this Resolution with the Sonoma County Board of Supervisors and the Sonoma County Elections Department.
Section 15. The City Clerk is authorized and directed to take all other steps necessary to conduct the election on the Measure.
Section 16. The City Manager is authorized and directed to appropriate the funds necessary to fund the cost of the Election.
Section 17. For purposes of the California Environmental Quality Act (Public Resources Code Section 21000, et seq.), a “project” is defined in State CEQA Guidelines Section 15378 (a) as “the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment,” but excludes “the submittal of proposals to a vote of the people of . . . a particular community that that not involve a public agency sponsored initiative.” (14 CCR 1378(b)(3); Stein v. City of Santa Monica (1980) 110 Cal. App. 3d 458; Friends of Sierra Madre v. City of Sierra Madre (2011) 25 Cal. 4th 165.) The City Council hereby finds that, as a citizen-sponsored initiative, this Initiative is exempt from CEQA under CEQA Guidelines Section 15378(b)(3).
Section 18. In all particulars not recited in this resolution, the election shall be held and conducted as provided by State law for holding municipal elections.
Section 19. This Resolution shall take effect upon its adoption by a majority of the City Council.
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Packet Pg. 500 Attachment: Resolution (3678 : TOT Bond Measure) Resolution No. -2022
PASSED, APPROVED AND ADOPTED, this 21st day of June 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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Packet Pg. 501 Attachment: Resolution (3678 : TOT Bond Measure) Resolution No. -2022
EXHIBIT A
CITY OF HEALDSBURG
ORDINANCE NO. _______
AN ORDINANCE OF THE CITY OF HEALDSBURG
AMENDING THE TRANSIENT OCCUPANCY TAX
ORDINANCE OF THE CITY OF HEALDSBURG TO
PERMIT THE USE OF TRANSIENT OCCUPANCY TAX
REVENUES TO ACQUIRE AND CONSTRUCT CAPITAL
IMPROVEMENTS FOR PARKS, COMMUNITY SERVICES
FACILITIES AND AFFORDABLE HOUSING, INCLUDING
PAYMENT OF PRINCIPAL, INTEREST AND COSTS OF
INDEBTEDNESS FOR THE SAME
WHEREAS, in 2004, the City of Healdsburg voters approved and enacted the Transient Occupancy Tax Ordinance Of The City Of Healdsburg (“TOT Ordinance”), set forth in Chapter 3.12 of the Healdsburg Municipal Code, for the privilege of occupancy in any hotel within the City; and
WHEREAS, pursuant to Healdsburg Municipal Code Section 3.12.030, each transient is subject to a tax of not less than 12 percent nor more than 14 percent of the rent charged by the hotel operator, with the actual rate of the tax established by resolution of the City Council.
The current tax rate is 14%; and
WHEREAS, pursuant to Healdsburg Municipal Code Section 3.12.160, the first 10 percent of the 14 percent transient occupancy tax shall be used for the provision of community services only, the next 2 percent of the 14 percent transient occupancy tax shall be used for the provision of affordable housing services and programs, and any transient occupancy tax in excess of 12 percent shall be paid into the City’s general fund for general fund purposes; and WHEREAS, the City Council wishes to have the ability to use a portion of the TOT Ordinance revenues for the acquisition and improvement of new parks, community services facilities, and affordable housing, as well as to use TOT Ordinance revenues to secure bond financing to generate funds to build new parks, community service facilities and increase affordable housing in the City; and
WHEREAS, the City Council wishes to amend the definitions of “community services” and “affordable housing services and programs” in Healdsburg Municipal Code Section 3.12.020, to specifically permit TOT Ordinance revenues to be used for acquisition and construction of new parks, and capital improvements for community services and affordable housing facilities, including payment of principal, interest and costs of indebtedness for the same; and WHEREAS, except as outlined above, this measure will not alter the tax rate; the percentage of tax revenues allocated for the percentage of community services, affordable housing, and the general fund; the persons subject to or exempt from the tax; the mechanics of the
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Packet Pg. 502 Attachment: Resolution (3678 : TOT Bond Measure) Resolution No. -2022
collection of the tax; or any other provisions of the TOT Ordinance; and WHEREAS, this measure to amend the TOT Ordinance requires an affirmative vote of 2/3 of the electorate voting on the measure to pass, and if the measure does not garner 2/3 of the vote, the provisions of the current TOT Ordinance will remain intact.
NOW, THEREFORE, THE PEOPLE OF THE CITY OF HEALDSBURG DO ORDAIN AS FOLLOWS:
Section 1. Findings
The City Council of the City of Healdsburg does hereby find that the above referenced recitals are true and correct and material to the adoption of this Ordinance.
Section 2. Amendment of Code
Healdsburg Municipal Code Chapter 3.12, Transient Occupancy Tax, Sections 3.12.020, Definitions, and 3.12.160, Use of tax proceeds, are hereby amended as follows:
3.12.020 Definitions
Except where the context otherwise requires, the definitions given in this section govern the construction of this chapter.
A. “Affordable housing services and programs” means the provision of financing of capital improvements, and other services, and programs and assistance provided by the City of Healdsburg to prospective and current tenants, owners and/or developers to assist in acquiring, rehabilitating, increasing, improving and preserving the City’s supply of housing available to households identified by income category in HMC 20.28.310, as the same may be amended from time to time.
B. “Agreement in writing” means a document, signed by the operator and occupant, stating that the occupant intends to occupy the hotel for more than 30 consecutive days.
C. “Chapter” means Chapter 3.12 HMC entitled “Transient Occupancy Tax.” D. “Community services” means the facilities and services provided by the City of Healdsburg community services department, including but not limited to the construction, acquisition, improvement, rehabilitation, management and operation of fields for soccer, baseball, and other sports, parks, open space, and recreational facilities, including but not limited to Recreation, Plaza, Badger, Giorgi, “the Parkland Farms,” Carson Warner Memorial Skate Park, and the Villa Chanticleer; support for senior services; transit services and the operation and management of the Healdsburg Airport; civic promotion; special event coordination; distribution of information about community services; constructing, acquiring, rehabilitating, funding, planning, designing, and engineering capital improvement projects; support for community enrichment classes and recreational programs; scheduling and coordination of outdoor area usage at local schools, parks, and community facilities; provision
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Packet Pg. 503 Attachment: Resolution (3678 : TOT Bond Measure) Resolution No. -2022
of transit services for individuals with special needs; and administering contracts for maintenance and operation of community services and facilities.
E. He – Him – His. Pronouns of the masculine gender are utilized for the sake of brevity and are intended to refer to persons of either gender or of the neuter gender, as applicable.
F. Hearing Officer. The hearing officer shall be the City Manager or his or her designee.
G. “Hotel” means any structure or any portion of any structure that is occupied or intended or designed for occupancy by transients for sleeping purposes, including any inn, home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof that is used for occupancy by transients, even if such use is on a part-time basis.
H. “Occupancy” means the use or possession or the right to the use or possession of any room or rooms or portion thereof in any hotel for sleeping purposes in exchange for rent (as defined in this section).
I. “Operator” means the person who is the proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee or any other capacity. Where the operator performs his functions through a managing agent or booking agency of any type or character other than an employee, the managing agent or booking agency shall also be deemed an “operator” for the purposes of this chapter and shall have the same duties and liabilities as its principal. Compliance with the provisions of this chapter by either the principal, the managing agent or booking agency shall, however, be considered to be compliance by all, and a violation of this chapter by either the principal or any agent acting on behalf of the principal shall be considered a violation by all.
J. “Person” means any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or other group or combination acting as a unit.
K. “Rent” means the actual consideration charged, whether or not received, for the occupancy of space in a hotel valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credit and property and services of any kind or nature without any deduction therefrom whatsoever.
L. “Tax administrator” means the finance officer or his authorized agent.
M. “Transient” means any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license, or other agreement for a period of 30 consecutive calendar days or less, counting portions of calendar days as full days. Any such person shall be deemed to be a transient until the period of 30 days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of this chapter may be considered.
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Packet Pg. 504 Attachment: Resolution (3678 : TOT Bond Measure) Resolution No. -2022
3.12.160 Use of tax proceeds.
The first 10 percent of all proceeds of the tax levied and imposed by this chapter shall be accounted for and paid into a special fund or account designated for use for the provision of community services only. The next two percent of such proceeds shall be accounted for and paid into a special fund or account designated for use for the provision of affordable housing services and programs. Any proceeds of the tax that are in excess of 12 percent of the room rate shall be paid into the City’s general fund for general fund purposes. Any proceeds of the tax may be used, in addition to funding the services and programs described herein, to acquire and construct capital improvements or facilities, including payment of principal, interest and costs of indebtedness for the same. No other entity, public or private, shall have access to the proceeds of the transient occupancy tax, and no part thereof shall be expended on services provided outside the City.
As to all proceeds of the tax levied and imposed by this chapter for the provision of community services and affordable housing services and programs, and collected by the City, the finance director shall file an annual report with the City Council that contains the amount of such proceeds, how such proceeds were expended and the status of any project required or authorized to be funded with revenue raised by such proceeds, all in accordance with California Government Code Section 50075.3.
Section 3. Severability
If any section, subsection, sentence, clause or phrase or word of this Ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance.
Section 4. Effective Date
This Ordinance shall take effect ten (10) days after the certification by the City Council of the election returns indicating passage of the Ordinance by two thirds of voters casting votes in the election.
Section 5. Termination Date
The amendment to this ordinance provided herein shall extend until the tax is terminated by the voters.
Section 6. Publication
The City Clerk is directed to publish this Ordinance as required by State law.
APPROVED (or DENIED) by the following vote of the People of the City of Healdsburg on November ___, 2022:
_______ YES ______NO ______ TOTAL VOTES
RESULTS DECLARED by the City Council of the City of Healdsburg on ______________,
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Packet Pg. 505 Attachment: Resolution (3678 : TOT Bond Measure) Resolution No. -2022
2022.
SO ORDERED ATTEST
_______________________________ ________________________________ Osvaldo Jimenez, Mayor Raina Allan, City Clerk
Dated:___________________________
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Packet Pg. 506 Attachment: Resolution (3678 : TOT Bond Measure)
CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: June 21, 2022
SUBJECT: Written Communication from Community Development Director Scott Duiven regarding Planning Commission actions taken on May 24, 2022 PREPARED BY: Shawn Sumpter, Administrative Specialist
STRATEGIC INITIATIVE(S):
Provide Effective Governance
RECOMMENDED ACTION(S):
No action required.
COMMUNITY ENGAGEMENT/OUTREACH:
Public hearing notices were sent to all property owners within 300’ of the subject properties.
The Agenda was posted on the public notice board at City Hall and the packet was posted on the website. Notice of the packet availability was provided to website subscribers in the form of emails and/or text messages.
The meeting was available for viewing live on our website and continues to be available as a video recording.
During the meeting opportunity for public input was provided.
BACKGROUND:
Since the formation of the Planning Commission, a report on actions taken at the immediately prior Commission meeting has been provided to the City Council as a way of keeping the Council informed of the matters/issues before the Commission.
This report is not required by the Healdsburg Municipal Code, City Council resolution or state law and requires no action from the City Council.
DISCUSSION/ANALYSIS:
Attached, for your information and receipt, is the report on the actions taken by the Planning Commission at its May 24, 2022 meeting.
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Packet Pg. 507
ENVIRONMENTAL STEWARDSHIP:
Not applicable.
ALTERNATIVES:
None
FISCAL IMPACT:
There is no fiscal impact as a direct result from the proposed action.
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):
PC Summary 20220524
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Packet Pg. 508
REPORT TO COUNCIL
SUBJECT: Actions Taken by The Planning Commission on May 24, 2022 The Planning Commission meeting began as a workshop immediately followed by the regular meeting.
Planning Commission Workshop
The Planning Commission conducted a workshop regarding Healdsburg Avenue Apartments, a proposal for Design Review and Heritage Tree Permit to remove five existing dwellings and construct a two-story, 30-unit apartment project on a 1.2-acre site.
The purpose of the workshop was to introduce the project to the Planning Commission and community and to obtain input. No official action was taken at this workshop. ----------------
Planning Commission Regular Meeting
(Immediately following the workshop)
1. ROLL CALL
Commissioners present: Eddinger, Gerlach, Hunt, Luks, McKay Commissioners absent: Breznikar, Brunner
City Staff present: Community Development Director Scott Duiven, Senior Planner Ellen McDowell, Senior Planner Joel Galbraith, Administrative Technician Griselda Villarreal
2. ADMINISTRATIVE ACTIONS
A. The Commission voted 5-0-2 (Breznikar and Brunner absent) to approve the May 24, 2022 agenda.
B. The Commission voted 5-0-2 (Breznikar and Brunner absent) to approve the April 26, 2022 minutes.
C. Acceptance of Communications and Correspondence: Correspondence from Martha Hunt.
D. Declarations of Conflicts of Interest: None
E. Disclosures of Ex Parte Communications: None
3. PUBLIC COMMENTS: None
4. The Commission voted 5-0-2 (Brunner and Breznikar absent) confirming General Plan consistency for the 2022-2027 Capital Improvement Program.
5. NEW BUSINESS: None
6. COMMISSIONER AND SUBCOMMITTEE REPORTS: Commissioner McKay reported participation in a Land Paths volunteer day for removal of invasive plants in the Fitch Mountain Open Space and encouraged others to take advantage of such opportunities particularly those related to fire safety.
7. DIRECTOR’S REPORT: Director Duiven reported on the following, Denial of Verizon appeal
June 14th meeting cancellation
June 28 tentative items include Design Review for the Mill District amenities building and Tentative Map extension for 359 Hudson Street.
Planning Commission term expirations and appointment procedures.
The meeting adjourned at approximately 7:09 PM.
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Packet Pg. 509 Attachment: PC Summary 20220524 (3663 : PC Summary 5-24-2022)