Healdsburg City Council
June 21, 2022

CITY OF HEALDSBURG

CITY COUNCIL/REDEVELOPMENT SUCCESSOR AGENCY

REGULAR MEETING AGENDA
City Hall Council Chamber Meeting Date: June 21, 2022
401 Grove Street Time: 6:00 PM
Healdsburg, CA 95448 Date Posted: June 16, 2022
(707) 431-3317
.

CORONAVIRUS (COVID-19) ADVISORY NOTICE
Consistent with Government Code section 54953(e), City Council Members will be participating in this meeting either via Zoom Webinar or in person, socially distanced, in the Council Chamber at 401 Grove Street.

How to Observe the Meetings
To maximize public safety while maintaining transparency and public access, the Healdsburg City Council will be using Zoom Webinar service to allow remote participation. Members of the public who only wish to watch the meeting live or recorded can do so by using the link http://healdsburgca.iqm2.com/Citizens/default.aspx or watching it on the City’s Facebook Page www.facebook.com/cityofhealdsburg.

To Watch the Meeting and Submit Public Comment as Part of the Zoom Webinar:

To join by computer, tablet, or mobile device:

1. Go to https://zoom.us/join and type in the Webinar ID: 814 8346 5676 or follow this link:
https://cityofhealdsburg-org.zoom.us/j/81483465676 (Pre-registration for the meeting is not required.)

2. Fill in your full name, verify you are not a robot (if required), and click “Join”.

3. If the meeting host has started the Webinar, you should join automatically. If the meeting host has not started the Webinar, remain in the Webinar and it will start shortly.

To join by phone:

1. Dial 669-900-9128 or 253-215-8782 or 346-248-7799.

2. Enter the meeting ID: 814 8346 5676 and press # #.

3. If the meeting host has started the meeting, you should join automatically. If the meeting host has not started the meeting, remain in the meeting and it will start shortly.

To Submit Public Comment
By computer, tablet, or mobile device:

1. In the bottom center of the screen is a hand icon, click on “Raise Hand”. The hand icon will place you in line to speak.

City Council/RSA Regular Meeting Agenda
June 21, 2022

2. When it is your turn to comment, the meeting moderator will call upon you to comment.

State your first name, last name, address, and comment. Each speaker will be given no more than three (3) minutes to make your comment.

3. When you are done commenting, please remember to lower hand.

By phone:

1. Press *9 to raise your hand.

2. When it is your turn to comment, the meeting moderator will call the last four digits of your phone number. Press *6 to speak at that time. State your first name, last name, address, and comment. Each speaker will be given no more than three (3) minutes to make your comment.

3. At the conclusion of your comments or when three minutes has passed, the meeting host will remove your ability to talk.

Americans with Disabilities Act Accommodations
Any member of the public who needs accommodations should email the City Clerk at [email protected] or by calling 707-431-3317. The City Clerk will use their best efforts to provide reasonable accommodations to provide as much accessibility as possible while also maintaining public safety in accordance with the city procedure for resolving reasonable accommodation requests. All reasonable accommodations offered will be listed on the city website at https://www.ci.healdsburg.ca.us/406/ada---public-accessibility.

City Council/RSA Regular Meeting Agenda
June 21, 2022

1. CALL TO ORDER/ROLL CALL
A. Pledge of Allegiance
B. Approval of Agenda

2. REPORT ON CLOSED SESSION(S)

3. ANNOUNCEMENTS/PRESENTATIONS
A. Proclamation recognizing July 24 through July 30, 2022 as Zero Waste Week

4. CITY MANAGER REPORTS
A. Introduction of Assistant City Manager Andrew Sturmfels

5. PUBLIC COMMENTS ON ITEMS ON THE CONSENT CALENDAR AND NON

AGENDA ITEMS
This time is set aside to receive comments from the public regarding matters of general interest not on the agenda, but related to City Council/RSA business. Pursuant to the Brown Act, however, the City Council cannot consider any issues or take action on any requests during this comment period. Public comment on non-agenda items is limited to thirty (30) minutes total for all speakers, with each speaker given no more than three (3) minutes. If there are more than ten (10) audience/public comment speakers, the Mayor may reduce each speaker’s time from three (3) minutes so that all speakers have an equal time to speak. At the Mayor’s discretion, the public comment period may be extended past 30 minutes. Members from the public wishing to speak on a Consent Agenda item should notify the Mayor during Public Comments.

6. CONSENT CALENDAR
The following items listed on the Consent Calendar are considered routine in nature or have been previously reviewed by the Council and require little or no further discussion by the Council, public, or applicant and action will be taken by the City Council by a single motion. A Councilmember may request that an item be removed from the Consent Calendar and action taken separately. Consent by a majority of the Councilmembers present will be required in order to remove the item. In the event an item is removed, the matter will be considered immediately following the adoption of the Consent Calendar.

A. Investment Policy for Fiscal Year 2022-23
Adopt a Resolution approving the City's Investment Policy for Fiscal Year 2022-23.

B. Approval of Change Order Number 1 for the Water Reclamation Facility Equalization Pond Solids Removal and Disposal Project (Project PWS942) City Council/RSA Regular Meeting Agenda
June 21, 2022

Adopt a Resolution increasing the Solids Removal project budget by $156,600 for a total project budget of $382,862, transferring $78,300 from the Wastewater Development Impact Fee Fund to the Sewer Operations Fund to cover fair share maintenance and restored capacity costs and authorizing the City Manager to approve change orders up to the project's approved amount.

C. Extension of a Professional Services Agreement with MMO Partners of Washington DC for Federal Advocacy Services, with Costs Shared by Healdsburg and Five Other Cities
Adopt a Resolution authorizing the City Manager to approve a 12-month extension to a Professional Services Agreement for federal advocacy services with MMO Partners, increasing the not-to-exceed amount by $85,490 of $283,480, offset by an additional $78,432 in reimbursement revenue from five (5) other participating Sonoma County cities.

D. Accept as complete the Badger Substation 12kV and 60kV Bus Reconstruction Project (EL1008)
Adopt a Resolution accepting as complete the Badger Substation 12kV and 60kV Bus Reconstruction Project (EL1008) and authorizing staff to file a Notice of Completion.

E. Professional Services Agreement with SOS Community Counseling for Juvenile Diversion Services
Adopt a Resolution approving an amendment to a Professional Services Agreement with SOS Community Counseling to provide for youth diversion services through its Healdsburg Family Youth Services program for an amount not to exceed $33,542 and authorizing the City Manager to execute the amendment and increasing the not-to-exceed amount by $33,542 to $83,531.

F. Administration of Energy Programs Evaluation, Commercial Energy Efficiency Programs, and Low-Income Application Portal
Adopt a Resolution approving an amendment to the Professional Services Agreement with Efficiency Services Group, LLC to provide energy efficiency administrative services and manage a low-income online application portal and extend the agreement's term to June 30, 2024, increase the not to exceed amount to $141,000, and authorizing the City Manager to execute the agreement on the City’s behalf.

G. Resolution Consolidating the General Municipal Election with the Statewide General Election
City Council/RSA Regular Meeting Agenda
June 21, 2022

Adopt a Resolution (1) calling and giving notice of a general municipal election to be held on November 8, 2022 for the election of three City Council Members; (2) requesting the Board of Supervisors of the County of Sonoma to consolidate a general municipal election to be held on November 8, 2022, with the Statewide General Election pursuant to Section 10403 of the Elections Code; (3) authorizing the City Manager to reimburse the County of Sonoma for the costs to conduct the election; and (4) approving guidelines for conducting said election.

H. Airport Management Services 2022
Adopt a Resolution conditionally awarding a Professional Services Agreement (PSA) for Airport Management Services to Healdsburg Aviation subject to final negotiations, authorizing the City Manager to negotiate the final agreement terms and execute a PSA with a term length up to 5 years on behalf of the City, and authorizing a PSA not-toexceed amount up to $340,000 with Healdsburg Aviation.

I. Janitorial Services Contract Amendment
Adopt a Resolution approving an amendment to the janitorial maintenance contract with ABM of Petaluma and authorizing the City Manager to execute the amendment, extending the contract term to December 31, 2022, and increasing the not to exceed amount by $107,073 to $483,731.

J. Memorandum of Understanding (“MOU”) between City of Healdsburg and Healdsburg Police Officers Association (“HPOA”)
Adopt a Resolution rescinding Resolution No. 27-2021 and approving the MOU between the City of Healdsburg and Healdsburg Police Officers Association for the two-year period ending June 30, 2024.

K. Vacate the Public Trail Easement as shown on the First Final Map for the Saggio Hills Project and Authorizing the City Manager to execute the Amended Northwest Trail Easements and the Certificates of Acceptance for the Saggio Hills Project By motion:

1. Adopt a Resolution summarily vacating the public trail easement as shown on the first final map for the Saggio Hills Project pursuant to Chapter 4 of part 3 of Division 9 of the California Streets and Highways Code, which public trail easement will be superseded by relocation; and
City Council/RSA Regular Meeting Agenda
June 21, 2022

2. Adopt a Resolution approving and authorizing the City Manager to execute the amended northwest trail easement and the certificate of acceptance by and between the City of Healdsburg and Oaks and Olives, LLC as well as the amended northwest trail easement and the certificate of acceptance by and between the City of Healdsburg and Sonoma Luxury Resort, LLC for the Saggio Hills Project.

L. Amendment to Annual Asphalt Maintenance Contract
Adopt a Resolution approving an amendment to the Annual Asphalt Maintenance Contract with Engelke Construction, authorizing the City Manager to execute the amendment increasing the annual not-to-exceed amount by $15,996 to $165,996 for FY 21-22, authorizing the City Manager to execute annual extensions to the Annual Asphalt Maintenance Contract in an amount not to exceed $180,000 in FY 22-23 and FY 23-24, and approving an increase to the Annual Asphalt Maintenance Contract maximum fiveyear not-to-exceed amount by $75,996 to $825,996.

M. Adoption of Resolution Authorizing Remote Meetings
Adopt a Resolution authorizing remote meetings of the City Council and other legislative bodies.

N. Amendment to Professional Services Agreement with Frontier Resource Management
Adopt a Resolution approving a Professional Services Agreement Amendment with Frontier Resource Management, extending the term to December 31, 2023, increasing the not-to-exceed amount by $70,000 to $120,000, and authorizing the City Manager to execute the Amendment on behalf of the City.

O. Professional Services Agreement with Burbank Housing Development Corporation, L&M Village
Adopt a Resolution approving a Professional Services Agreement (PSA) with Burbank Housing for Construction Management services for the design and construction of the L&M Village.

P. Villa Chanticleer Operating Agreement
Adopt a Resolution authorizing the City Manager to enter into an agreement with Milestone Events Group for management and operation of the Villa Chanticleer.

Q. Partnership With the Healdsburg Unified School District (PEG) Adopt a Resolution approving a Professional Services Agreement with the Healdsburg Unified School District for the operation of public access Channel 26 in the amount of $61,425, authorizing the City Manager to execute the agreement on behalf of the City.

City Council/RSA Regular Meeting Agenda
June 21, 2022

7. PUBLIC HEARINGS
A. Consider the adoption of Water and Wastewater rates

1. Conduct a public hearing in accordance with Proposition 218 for the proposed changes to the water and wastewater rates; and

2. Adopt a Resolution determining that there was no majority protest of the proposed water and wastewater services rates, approving updated water and wastewater services rates, and superseding the existing rates established by Resolution No. 34- 2016.

B. Consider adoption of increases to the Passalacqua Pump-Station Pumping Surcharge and meter maintenance charge associated with the Montage Resort area

1. Conduct a public hearing in accordance with Proposition 218 for the proposed changes to the Passalacqua Pump-Station Surcharge; and

2. Adopt a Resolution determining that there was no majority protest for the proposed water surcharge of the Passalacqua Pump-Station surcharge, approving updated water surcharges, and superseding the existing surcharge established by Resolution No. 7- 2019.

C. Resolution Ordering the Abatement of Weeds

1. Hold the public hearing; and

2. Adopt a resolution ordering the abatement of weeds.

D. Hold a Public Hearing and Set Assessments for the Landscaping and Lighting Assessment District

1. Hold public hearing and receive public comments or protests on the Annual Engineer’s Report, the proposed budget for the Healdsburg Landscape and Lighting Assessment District (Assessment District) and annual assessments; and

2. Adopt by Resolution the Annual Engineer’s Report, confirming the assessment diagram and annual assessment amounts and the levying and collection of assessments for FY 2022-23 for the Assessment District.

8. OLD BUSINESS
A. An Ordinance Amending the Development Agreement by and between the City of Healdsburg and Kendal at Sonoma, a Zen Inspired Community, for the Enso Village Project
City Council/RSA Regular Meeting Agenda
June 21, 2022

Pass an ordinance amending the Development Agreement by and between the City of Healdsburg and Kendal at Sonoma, a Zen Inspired Community, for the Enso Village Project.

B. Universal Basic Income
Adopt a Resolution approving a Professional Services Agreement with Corazón Healdsburg in the amount of $250,000 for the purpose of managing a Universal Basic Income program for 24 months.

C. Discuss Park Naming Policy
Review and discuss park naming policy options and provide direction to staff.

D. Appointment of Planning Commissioners
By motion, appoint three applicants to the Planning Commission for a term of four years due to expire June 30, 2026.

9. NEW BUSINESS
A. Cannabis Business Tax Ballot Measure
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.

B. Ballot Measure to Amend Transient Occupancy Tax Ordinance 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.

10. COUNCIL REPORTS ON MATTERS OF INTEREST OCCURRING SINCE

PREVIOUS REGULAR MEETING/EXPENSE REIMBURSEMENT REPORTS

11. WRITTEN COMMUNICATIONS
A. Written Communication from Community Development Director Scott Duiven regarding Planning Commission actions taken on May 24, 2022 No action required.

City Council/RSA Regular Meeting Agenda
June 21, 2022

12. ADJOURN CITY COUNCIL / RSA MEETING

13. FUTURE AGENDA ITEMS
A. Future Agenda Items
Some of the items planned for the August 1, 2022 Council Meeting include, but are not limited to:
• Special Event Policy and Municipal Code Update
• Reach Code Ordinance Update
• Award Bid for L&M Motel Rehab Project
Some of the items planned for the August 15, 2022 Council Meeting include, but are not limited to:
• Automated License Plate Reader Agreement
• Healdsburg Wine and Food Experience Follow Up
• Healdsburg Tourism Improvement District Initial Meeting • Discussion of Arts and Culture Master Plan Implementation These agenda items may be delayed or removed before the meeting. Please review the agenda for that meeting when it is published to ensure that you can voice your opinion about issues you are concerned about.

SB 343 - DOCUMENTS RELATED TO OPEN SESSION AGENDAS: Any writings or documents provided to a majority of the City Council/Redevelopment Successor Agency Board regarding any item on this agenda after the posting of this agenda and not otherwise exempt from disclosure, will be made available for public review in the City Clerk's Office located at City Hall, 401 Grove Street, Healdsburg, during normal business hours. If supplemental materials are made available to the members of the City Council/Redevelopment Successor Agency Board at the meeting, a copy will be available for public review at the City Hall Council Chambers, 401 Grove Street, Healdsburg, CA 95448.

These writings will be made available in appropriate alternative formats upon request by a person with a disability, as required by the Americans with Disabilities Act.

DISABLED ACCOMMODATIONS: The City of Healdsburg will make reasonable accommodations for persons having special needs due to disabilities. Please contact Raina Allan, City Clerk, at Healdsburg City Hall, 401 Grove Street, Healdsburg, California, 431-3317, at least 72 hours prior to the meeting, to ensure the necessary accommodations are made.

CITY OF HEALDSBURG

PROCLAMATION

A PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG RECOGNIZING JULY 24-30, 2022, AS ZERO

WASTE WEEK IN THE CITY OF HEALDSBURG
WHEREAS, the City of Healdsburg is a member of Zero Waste Sonoma (ZWS) which is a joint powers authority. The mission of ZWS is waste diversion required by State law AB939. ZWS’s programs include household hazardous waste, composting, zero waste planning, policy, and education; and WHEREAS, the US EPA has estimated 50% of all Green House Gas (GHG) emissions are caused by the extraction, production, transportation, and use of goods, including food, products and packaging, and that Zero Waste minimizes GHG production and therefore supports Sonoma County’s Climate Initiative; and
WHEREAS, in 2020, Sonoma County residents and businesses sent 423,648.58 tons to the landfill, generating approximately 105,000 tons of carbon dioxide equivalent from decomposing organic matter; and
WHEREAS, the Short-Lived Climate Pollutants Reduction Act of 2016 (SB 1383) requires a 20% reduction of edible food waste by 2025 and a 40% reduction in methane levels by 2030; and WHEREAS, the jurisdictions in Sonoma County have collectively adopted regional goals for waste reduction, reuse, and recycling; and
WHEREAS, the Sonoma County Central Landfill, a very valuable resource worth preserving, has a remaining capacity of 23 years; and
WHEREAS, Zero Waste principles, in accordance with CalRecycle’s (California Department of Resources, Recycling, and Recovery) Zero Waste Hierarchy, promote the highest and best use of materials, emphasize a closed loop system of production and consumption, and move in logical increments toward the goal of reducing waste generation and landfill disposal by more than 90%; and WHEREAS, the City of Healdsburg has assumed a leadership role by setting Zero Waste as a goal and adopting a Zero Waste Resolution and sets a goal of Zero Waste by 2030.

NOW, THEREFORE BE IT PROCLAIMED, the City Council of the City of Healdsburg hereby encourages the pursuit of Zero Waste as a long-term goal in order to eliminate waste and pollution in the manufacture, use, storage, and recycling of materials and recognizes July 24-30, 2022, as Zero Waste Week in the City of Healdsburg.

DATED: June 21, 2022
SO ORDERED:
_____________________________
Osvaldo Jimenez, Mayor

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Attachment: Zero Waste Week Proclamation (3668 : Zero Waste Week Proclamation)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: June 21, 2022
SUBJECT: Investment Policy for Fiscal Year 2022-23
PREPARED BY: Katie Edgar, Finance Manager
STRATEGIC INITIATIVE(S):

Establish Proactive Policies/Programs to Continue to Promote Economic Diversity & Sustainable Growth
RECOMMENDED ACTION(S):

Adopt a Resolution approving the City's Investment Policy for Fiscal Year 2022-23.

COMMUNITY ENGAGEMENT/OUTREACH:

Not Applicable.

BACKGROUND:

The California Government Code Section 53646(a)(2) requires the City Treasurer to submit a “Statement of Investment Policy” to the legislative body each fiscal year. This policy has been designed and developed according to the specific needs of the City of Healdsburg and complies with the California Government Code, guidelines recommended by the California Municipal Treasurer’s Association, and guidelines recommended by the Association of Public Treasurers of the United States and Canada.

The City’s Municipal Code designates the City’s Finance Director as the City Treasurer. Under the City’s current organizational structure, the City’s Administrative Services Director assumes the duties and responsibility of Finance Director. The core statutory duty of the Treasurer as set forth in California Code Section 41001 is “The City Treasurer shall receive and safely keep all money the treasurer receives”. Considering the statutory responsibilities, the California Municipal Treasurer’s Association has established the following guidelines to prudent investment strategy for local treasurers to follow:
• Legal Investment Authority: Temporary idle monies are to be invested in accordance with state and local statutes and in compliance with California Government Code Section 53600 et seq.

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• Safety: It is the primary duty and responsibility of the Treasurer to protect, preserve, and maintain intact cash and investments placed in trust with the Treasurer on behalf of the citizens of the City of Healdsburg.
• Liquidity: An adequate percentage of the portfolio should be maintained in liquid shortterm securities, which can be converted to cash if necessary, to meet disbursement requirements.
• Yield: The Treasurer shall obtain the highest possible yield within the parameters of the City’s authorized investments, provided the criteria for safety and liquidity have been met.

DISCUSSION/ANALYSIS:

For the City Council’s consideration, the attached proposed investment policy for fiscal year 2022-23 is presented in accordance with California Government Code Section 53600 et seq, which governs investment practices of local government agencies.

Section III of the City’s policy clearly specifies the three primary objectives of the City’s investment activities in order of priority are safety, liquidity, and yield.

The following item was removed from the investment policy to align with the less restrictive state code:

A. Securities Not Sold Prior to Maturity
Securities shall not be sold prior to maturity with the following exceptions:
• A security with declining credit sold early to minimize loss of principal • A security swap that would improve the quality, yield, or target duration in the portfolio
• Unforeseen liquidity needs of the portfolio that require the security be sold ENVIRONMENTAL STEWARDSHIP:

Not Applicable.

ALTERNATIVES:

The California Government Code Section 53646(a)(2) requires the City Treasurer to submit a “Statement of Investment Policy” to the legislative body each fiscal year. If Council chooses to not adopt the resolution, additional direction from Council will be required.

FISCAL IMPACT:

There is no financial impact resulting from the proposed action.

ENVIRONMENTAL ANALYSIS:

Pursuant to Title 14, the California Code of Regulations, Section 15378(b)(4)(5) of the California Environmental Quality Act (“CEQA”) guidelines, approval of this resolution is an administrative activity of the City that will not result in direct or indirect physical changes to the environment.

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ATTACHMENT(S):

Resolution
Healdsburg Investment Policy 2022-23

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CITY OF HEALDSBURG
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG ADOPTING AN INVESTMENT POLICY FOR
FISCAL YEAR 2022-23
WHEREAS, it is the policy of the City Council of the City of Healdsburg (“City Council”) to invest public funds in a manner that will provide maximum security, adequate liquidity and sufficient yield, while meeting the daily cash flow demands of the City and conforming to all statutes and regulations governing the investment of public funds; and WHEREAS, Section 53600.5 of the California Government Code Section states when investing and managing public funds, the primary objective of a trustee shall be to safeguard the principal of the funds under its control; and
WHEREAS, the secondary objective of Section 53600.5 is the requirement to meet the liquidity needs of the depositor; and
WHEREAS, the third objective of Section 53600.5 is to achieve a return on the funds under its control; and
WHEREAS, Section III of the City’s policy clearly specifies the three primary objectives of the City’s investment activities in order of priority as safety, liquidity and yield; and WHEREAS, in accordance with California Government Code Section 53646, the City Treasurer shall annually review and render to the City Council an investment policy.

NOW, THEREFORE, BE IT RESOLVED, the City Council finds that the City’s investment policy complies with California Government Code Sections 53600 et seq., which governs investment practices of local governments; and
BE IT FURTHER RESOLVED, the City Council of the City of Healdsburg adopts the attached City of Healdsburg Investment Policy for Fiscal Year 2022-23.

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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Attachment: Resolution (3636 : Investment Policy)
City of Healdsburg Investment Policy 1 Year 2022/23
Investment Policy
Fiscal Year 2022-2023

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Attachment: Healdsburg Investment Policy 2022-23 (3636 : Investment Policy) City of Healdsburg Investment Policy 2 Year 2022/23

TABLE OF CONTENTS
I. MISSION STATEMENT..................................................................................................3 II. SCOPE
A. Pooling of Funds.........................................................................................................3 B. Funds Included in this Policy......................................................................................3 C. Funds Excluded from this Policy................................................................................3 III. GENERAL OBJECTIVES
A. Safety ..........................................................................................................................3 B. Liquidity..................................................................................................................... 4 C. Yield (Return on Investment) .....................................................................................4 IV. STANDARDS OF CARE
A. Prudence......................................................................................................................4 B. Ethics and Conflicts of Interest...................................................................................4 C. Delegation of Authority ..............................................................................................5 D. Investment Management Committee ..........................................................................5 E. Internal Controls .........................................................................................................5 V. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS ...............................5 VI. SAFEKEEPING AND CUSTODY...................................................................................5 VII. SUITABLE AND AUTHORIZED INVESTMENTS
A. Investment Types........................................................................................................6 B. Investment Summary Table ......................................................................................10 C. Collateralization........................................................................................................11 D. Investments Not Approved .......................................................................................11 E. Investment Pools/Money Market Funds ..................................................................11 VIII. INVESTING PARAMETERS
A. Diversification...........................................................................................................12 B. Maximum Maturities ................................................................................................12 IX. REPORTING
A. Quarterly Reporting to City Council.........................................................................13 B. Reporting to California Debt and Investment Advisory Commission (CDIAC)......13 X. PERFORMANCE STANDARDS...................................................................................13 A. Market Yield (Benchmark).......................................................................................13 B. Marking to Market ....................................................................................................13 C. Review of Investment Portfolio................................................................................14 XI. INVESTMENT POLICY COMPLIANCE AND ADOPTION
A. Policy Compliance and Changes ..............................................................................14 B. Annual Statement of Investment Policy ...................................................................14 C. Exceptions.................................................................................................................14 APPENDIX: GLOSSARY OF INVESTMENT TERMS.............................................................15

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Attachment: Healdsburg Investment Policy 2022-23 (3636 : Investment Policy) City of Healdsburg Investment Policy 3 Year 2022/23
I. MISSION STATEMENT
It is the policy of the City of Healdsburg (“City”) to invest public funds in a manner that will provide maximum security, adequate liquidity and sufficient yield, while meeting the daily cash flow demands of the City and conforming to all statutes and regulations governing the investment of public funds.

II. SCOPE
This investment policy applies to all the financial assets of City of Healdsburg. These funds are accounted for in the City’s audited Annual Financial Report. If the City invests funds on behalf of another agency and, if that agency does not have its own policy, the City's investment policy shall govern the agency's investments.

A. Pooling of Funds
Except for cash in certain restricted and special funds, the City shall consolidate cash balances from all funds to maximize investment earnings. Investment income shall be allocated to various funds in accordance with generally accepted accounting principles.

B. Funds Included in this Policy
General Fund
Special Revenue Funds
Capital Project Funds
Enterprise Funds
Fiduciary Funds
Utility Funds
Any new fund created by City Council unless specifically exempted C. Funds Excluded from this Policy
This investment policy does not apply to bond proceeds, deferred compensation funds, retirement or other post-employment benefits trust funds as these are governed under separate California Government Code sections or other documentation.

III.GENERAL OBJECTIVES
The primary objectives, in priority order, of the City’s investment activities are safety, liquidity and yield.

A. Safety
Preservation of principal is the foremost objective of the investment program.

Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective shall be to mitigate credit risk and interest rate risk. To attain this objective, the City shall diversify its investments by investing funds among several financial institutions and a variety of securities offering independent returns.

1. Credit Risk
The City shall minimize credit risk, the risk of loss due to the failure of the security issuer or backer, by:
▪ Limiting investments to the safest types of securities ▪ Pre-qualifying the financial institutions, broker/dealers, intermediaries, and advisers with which the City will do business
▪ Diversifying the investment portfolio so as to minimize the impact any one industry/investment class can have on the portfolio

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Attachment: Healdsburg Investment Policy 2022-23 (3636 : Investment Policy) City of Healdsburg Investment Policy 4 Year 2022/23

2. Interest Rate Risk
To minimize the negative impact of material changes in the market value of securities in the portfolio, the City shall:
▪ Structure the investment portfolio so that securities mature concurrent with cash needs to meet anticipated demands, thereby avoiding the need to sell securities on the open market prior to maturity
▪ Invest operating funds primarily in shorter-term securities, money market mutual funds, and the State of California’s Local Agency Investment Fund (“LAIF”)
B. Liquidity
The City’s investment portfolio shall remain sufficiently liquid to enable the City to meet all operating requirements that might be reasonably anticipated without requiring a sale of securities. Since all possible cash demands cannot be anticipated, the portfolio shall consist largely of securities with active secondary or resale markets. A portion of the portfolio also may be placed in money market mutual funds or LAIF which offer same-day liquidity for short-term funds.

C. Yield (Return on Investment)
The City’s investment portfolio shall be designed with the objective of attaining a benchmark rate of return throughout budgetary and economic cycles, commensurate with the City’s investment risk constraints and the liquidity characteristics of the portfolio. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. The core of investments is limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed.

IV.STANDARDS OF CARE
A. Prudence
The standard of prudence to be used by City investment officials shall be the “prudent investor standard” in that a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of an enterprise of a like character and with like aims. This standard shall be applied in the context of managing the overall portfolio. City investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.

B. Ethics and Conflicts of Interest
Officers and employees involved in the City investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or that could impair their ability to make impartial investment decisions.

City employees and investment officials shall disclose any material financial interests in financial institutions that conduct business within their jurisdiction, and they shall further disclose any personal financial/investment positions that could be related to the performance of the City immediately to the City of Healdsburg City Manager and annually to the Fair Political Practices Commission. City employees and officers

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Attachment: Healdsburg Investment Policy 2022-23 (3636 : Investment Policy) City of Healdsburg Investment Policy 5 Year 2022/23
shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the City.

C. Delegation of Authority
In accordance with the City of Healdsburg's Municipal Code, herewith established, the Administrative Services Director, who serves as City Treasurer is authorized to invest the City's funds in accordance with California Government Code 53600 et seq.

In the absence of the City Administrative Services Director, the investment of funds will be delegated to the Finance Manager. Investments made by the Finance Manager will be restricted to LAIF, or securities maturing within six months.

D. Investment Management Committee
An investment committee may be appointed by the City Manager for the purpose of determining investment strategies and to monitor performance. This committee would include the City Manager, the Assistant City Manager, the Administrative Services Director and the Electric Utility Director. The committee may make recommendations regarding portfolio diversification, economic outlook and overall risk management.

E. Internal Controls
The City Administrative Services Director is responsible for establishing and maintaining a system of written internal controls. The internal controls shall be designed to prevent losses of public funds arising from fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent action by City employees and officers. The internal structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived, and (2) the valuation of costs and benefits requires estimates and judgments by management.

The internal controls shall address the following points:

1. Control of collusion

2. Separation of transaction authority from accounting and recordkeeping

3. Custodial safekeeping

4. Delivery versus payment (DVP)

5. Clear delegation of authority to subordinate staff members

6. Written confirmation of transactions for investments and wire transfers

7. Wire transfer agreements
V. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The City Administrative Services Director shall establish selection criteria for pre-approval of financial institutions and security broker/dealers to do business with the City. The City Administrative Services Director shall maintain a list of City approved financial institutions, registered investment advisors and security broker/dealers who are authorized to provide investment services to the City. These may include primary dealers, or regional dealers that qualify under Securities & Exchange Commission Rule 15C3-1 (uniform net capital rule). To qualify for consideration, a financial institution or a security broker/dealer must also have an office in California, and that office must perform the transactions with the City.

VI. SAFEKEEPING AND CUSTODY
All security transactions, including collateral for repurchase agreements, entered into by the City shall be conducted on a delivery-versus-payment (DVP) basis which will ensure that securities

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are deposited in an eligible financial institution prior to the release of funds. Securities shall be held by a third-party custodian designated by the City Administrative Services Director and evidenced by safekeeping receipts with a written custodial agreement. The only exception to the foregoing shall be depository accounts and securities purchases made with: LAIF, time certificates of deposit and money market mutual funds, since the purchased securities are not deliverable. Settlement instructions sent to the safekeeping agent shall require authorization. The City Administrative Services Director shall be bonded to protect the public against possible embezzlement and malfeasance. Safekeeping procedures shall be reviewed annually by an independent external auditor and any irregularities noted shall be reported promptly to the City Council.

VII. SUITABLE AND AUTHORIZED INVESTMENTS
The City shall be governed by the California Government Code, Sections 53600 et seq. If the Code is amended to allow additional investments or is changed regarding the limits on certain categories of investments, the City is authorized to conform to the changes in the revised Code, provided that the changes are not specifically prohibited by the City's policy. The City shall be required to present those changes in the annual review of the policy and to incorporate the new legislation within the policy. Surplus funds are defined as funds not required for the immediate necessities of the City and include investments in individually managed portfolio(s), money market fund(s) and/or State LAIF, and all portfolio limitations and restrictions shall apply to this aggregate amount. For purposes of compliance with the California Government Code and the City’s Investment Policy, the credit rating requirement for medium-term notes, deposit notes, bank notes and commercial paper shall be based on the quality ratings at the time of purchase.

If the quality rating of the issuer is downgraded, subsequent to purchase, by any of the Nationally Recognized Statistical-Rating Organizations below "A", or its equivalent, it shall be reported to the City Council with a recommendation, and ongoing information shall be provided if the bond is not sold. Percentage limitations of surplus funds invested are noted for the various investment instruments. Where there is a specified percentage limitation for a particular category of investments, that percentage is applicable only at the date of purchase. A later increase or decrease in a percentage resulting from a change in values or assets shall not constitute a violation of that restriction.

The City is empowered by statute to invest in the following types of securities and are those that the City Administrative Services Director is trained and competent to handle.

A. Investment Types

1. Bonds issued by the City, including bonds payable solely out of the revenues from a revenue producing property owned, controlled, or operated by the City or by a department, board, agency, or authority of the local agency.

2. United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the full faith and credit of the United States are pledged for the payment of principal and interest.

3. Federal Agency or United States government-sponsored enterprise obligations (GSE), participations, or other instruments.

4. State of California and Local Agency Obligations. Registered state warrants or treasury notes or bonds of this state, including bonds payable solely out of the revenues from revenue-producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state; and bonds, notes, warrants, or other evidence of indebtedness of any local agency within this state including bonds payable solely out of the revenues from revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. Notes eligible for investment shall

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be rated in a category of "A" or its equivalent or better by two Nationally Recognized Statistical-Rating Organizations.

5. Medium-Term Notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five (5) years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Purchases of medium-term notes may not exceed thirty (30) percent of the City's surplus funds. Investments in medium-term notes for any one nongovernment issuer shall be limited to no more than five (5) percent of surplus funds. Notes eligible for investment shall be rated in a category of "A" or its equivalent or better by two Nationally Recognized Statistical-Rating Organizations.

6. Commercial Paper of “prime” quality of the highest ranking or the highest letter and number rating as provided for by a Nationally Recognized Statistical-Rating Organization. The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (a) or paragraph (b):
a. The entity is organized and operating in the United States as a general corporation and has total assets in excess of five hundred million dollars ($500,000,000). In addition, its debt other than commercial paper, if any, must be rated “A” or higher by a Nationally Recognized Statistical-Rating Organization.
b. The entity is organized within the United States as a special purpose corporation, trust, or limited liability company and has a program-wide credit enhancement including, but not limited to, over-collateralization, letters of credit, or a surety bond. In addition, the entity has commercial paper that is rated “A-1” or higher, or the equivalent, by a Nationally Recognized Statistical-Rating Organization.

Eligible commercial paper shall have a maximum maturity of two hundred and seventy (270) days or less. The City may not invest more than twenty five (25) percent of its surplus funds in no more than ten (10) percent of the outstanding eligible commercial paper of any single issuer.

7. Negotiable Certificates of Deposit issued by a nationally or state-chartered bank, savings association, federal association, a state or federal credit union or by a state-licensed branch of a foreign bank. Purchases of negotiable certificates of deposit shall not exceed thirty (30) percent of the City's surplus money invested and shall be limited to no more than three (3) percent of any one issuer. Deposit notes and bank notes purchased through a broker or dealer shall be included with negotiable certificates of deposit in calculating allowable maximum percentages.

Negotiable certificates of deposit, deposit notes and bank notes shall be rated in a category of "A" or its equivalent or better by two Nationally Recognized Statistical-Rating Organizations. No rating is required if the purchase amount is within the FDIC insurance coverage amount, currently $250,000 maximum per FDIC member.

8. Time Deposits. The City may invest in non-negotiable Certificates of Deposit at commercial banks and savings and loan associations that are collateralized in accordance with the California Government Code. To be eligible to receive City funds, the depository institution shall have received an overall rating of not less than “satisfactory” in its most recent evaluation of its record of meeting the credit needs of California’s communities, including low and moderate-income neighborhoods. In selecting depositories, the credit worthiness of institutions shall be considered. Banks and savings and loan associations seeking to establish

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an investment relationship with the City shall submit an audited financial report that shall be reviewed for compliance with the City's investment standards. Any institution not providing an audited annual financial report shall be removed from the approved list and all funds maturing will be withdrawn. A list of eligible institutions shall be maintained. Qualification shall be determined by the following criteria:
a. Tangible capital must equal or exceed one and a half (1½) percent; core capital must equal or exceed three (3) percent; and, risk-based capital must equal eight (8) percent of assets adjusted for assigned risk-weightings. b. Return on assets of a minimum of a half of one (½) percent; a return on equity of a minimum of eight (8) percent; an equity to assets ratio of a minimum of five (5) percent; and, City investments shall be no greater than a half of one (½) percent of the total assets of the depository. c. Independent auditor's statement must have a clean opinion.

9. Savings accounts. Savings accounts when used in conjunction with the City's checking accounts at a qualified bank where funds are collateralized in accordance with the California Government Code.

10. U. S. Government money market funds registered with the Securities and Exchange Commission and which comply with rule 2a7 of the Investment Company Act of 1940. The dollar weighted average maturity of the portfolio shall be less than ninety (90) days and the portfolio is managed to maintain a one dollar ($1.00) share price. Also, the fund shall meet either of the following criteria: (a) Attained the highest ranking or the highest letter and numerical rating provided by not less than two Nationally Recognized Statistical-Rating Organizations; (b) retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000).

11. Repurchase Agreements. Investments in repurchase agreements or reverse repurchase agreements or securities lending agreements of any securities authorized by the Code, so long as the proceeds of the repurchase agreement are invested solely to supplement the income normally received from these securities. The City shall adopt as a standard the Bond Market Association Master Repurchase Agreement and shall maintain a list of approved counterparts and limit counter parties to primary dealers rated "A" or better by two Nationally Recognized Statistical-Rating Organizations. Reverse repurchase agreements and securities lending agreements shall require City Council authorization separate from City Council approval of this policy.

Securities lending agreements shall include the following safeguard measures:
terms of lending agreements, indemnification provisions, reinvestment guidelines, liquidity provisions, credit risks and monitoring requirements.

Additionally any securities lending agreement shall be reviewed by the City Attorney to ensure the City’s interests are properly protected. a. Investments in repurchase agreements may be made, on any authorized investment, when the term of the agreement does not exceed one year. b. Reverse repurchase agreements or securities lending agreements may be utilized when the security to be sold on the reverse repurchase agreement or securities lending agreement has been owned and fully paid for by the City for a minimum of thirty (30) days prior to sale; the total of all reverse repurchase agreements on investments owned by the City does not exceed twenty (20) percent of the base value of the portfolio; and the agreement

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does not exceed a term of ninety two (92) days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between sale of a security using a reverse repurchase agreement and the final maturity date of the same security.

12. Local Agency Investment Fund (LAIF). The City may invest in LAIF, established by the California State Treasurer, up to the seventy-five million dollars ($75,000,000) maximum permitted by State law, effective January 1, 2020; per account. The City's investment in LAIF is based on, among other criteria, the following information provided by LAIF: A written statement of portfolio management goals, objectives and polices, including a description of eligible investment securities; a disclosure of LAIF's safekeeping practices; eligible LAIF participants, the monthly transaction limit, and minimum and maximum deposit and withdrawal amounts permitted; calculation of quarterly earnings and apportionment, including gains and losses; disclosure of administrative costs and the assessment process; monthly statements of the City's transaction activity and balances; monthly summaries of LAIF investment data, including market valuation and accrued interest; and a description of the audit process.

The California Government Code states that moneys placed for deposit in LAIF are in trust in the custody of the State Treasurer and cannot be borrowed or be withheld from the City. Further, the right of the City to withdraw its deposited money from the LAIF upon demand may not be altered, impaired, or denied in any way by any state official or agency based upon the State’s failure to adopt a budget by July1 of each new fiscal year.

13. Supranational Obligations – Supranational obligations are defined as United States dollar denominated senior unsecured, unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), or InterAmerican Development Bank (IADB), with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States.

Investments under this subdivision shall be rated “AA” or better by at least two Nationally Recognized Statistical Rating Organizations. There is a 15% limit on the percentage of the portfolio that can be invested in this category.

14. Sonoma County Pooled Fund – The City may invest in the Sonoma County Pooled Fund managed by the Sonoma County Treasurer up to the maximum permitted by State Law. However, at no time shall deposits in the County Pool exceed 10% of the total portfolio.

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B. Summary Table of Suitable and Authorized Investments Investment Type Maximum
Percentage
of Portfolio
Maximum
par value
per name
Credit/Minimum Quality
Requirements
US Treasury Bills, Bonds
and Notes
100% None Full faith and credit of the United
States Government and have a
Aaa/AA+ rating by Moody’s and S&P.

Federal Agency Securities 100% None Implied guarantee of the US Government. Federal Agency
Securities have a Aaa/AA+ rating by
Moody’s and S&P.

Local Agency Bonds 0-30% $2,000,000 Shall be rated in a rating category of “A” or its equivalent or better by a
nationally recognized rating service
such as Moody’s or S&P.

State of California
Obligations
0-30% $5,000,000 Shall be rated in a rating category of “A” or its equivalent or better by a
nationally recognized rating service
such as Moody’s or S&P.

CA Local Agency
Obligations
0-30% $5,000,000 Shall be rated in a rating category of “A” or its equivalent or better by a
nationally recognized rating service
such as Moody’s or S&P.

Money Market Funds 0-20% 10% per
single issuer
Multiple requirements including
highest ranking by two nationally
recognized rating agencies, must have
fund advisor registered with the SEC,
have more than $500 million under
management, etc.

Commercial Paper 0-25% 10% per
single issuer
Multiple requirements including
highest ranking A-1, P-1, by two
nationally recognized rating agencies,
and must have total assets exceeding
$500 million.

Certificates of Deposit 0-30% 3% per
single issuer
to $250k
FDIC insurance coverage amount,
currently $250,000 maximum per
FDIC member.

Repurchase Agreements 0-20% $2,000,000 Signed Security Loan Agreement in file. Reverse Repurchase Agreements
are specifically not authorized under
this investment policy.

Local Agency Investment
Fund
0-100% $75,000,000 Investment of funds in the California LAIF which allows the State Treasurer
to invest through the Pooled Money
Investment Account
Medium-term Corporate
Bonds
0-30% 5% per
single issuer
Shall be rated in a rating category of
“A” or its equivalent or better by a
nationally recognized rating service
such as Moody’s or S&P.

Supranationals 0-15% 10% per
single issuer
Shall be rated in a rating category of
“AA” or its equivalent or better by a
nationally recognized rating service
such as Moody’s or S&P.

Sonoma County Pooled Fund 0-10% 10% of total
portfolio
Pooled money investment fund
obligation of Sonoma County

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C. Collateralization
Collateralization shall be required on two types of investments: Certificates of deposit and repurchase (and reverse repurchase) agreements. A collateral agreement must be current and on file before any funds can be transferred for collateralized certificates of deposit. Collateral shall be held by an independent third party with whom the City has a current written custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained. The right of collateral substitution is granted in accordance with the following requirements:

1. Certificates of Deposit
a. Government securities used as collateral require one hundred and two (102) percent of market value to the face amount of the deposit b. Promissory notes secured by first trust deeds used as collateral require one hundred and fifty (150) percent of market value to the face amount of the deposit
c. Irrevocable letters of Credit issued by the Federal Home Loan Bank of San Francisco require one hundred and five (105) percent of market value to the face amount of the deposit
d. No collateral is required for Certificates of Deposit covered by FDIC insurance

2. Repurchase and Reverse Repurchase Agreements
a. Only U.S. Treasury securities or federal agency securities are acceptable collateral. All securities underlying repurchase agreements must be delivered to the City’s custodian bank versus payment or be handled under a properly executed tri-party repurchase agreement.

The total market value of all collateral for each repurchase agreement must equal or exceed one hundred and two (102) percent of the total dollar value of the money invested by the City for the term of the investment. For any repurchase agreement with a term of more than one (1) day, the value of the underlying securities must be reviewed on an ongoing basis according to market conditions. Market value must be calculated each time there is a substitution of collateral. b. The City or its trustee shall have a perfected first security interest under the Uniform Commercial Code in all securities subject to a repurchase agreement.

D. Investments Not Approved
Any security type or structure not specifically approved by this policy is hereby prohibited. Security types, which are hereby prohibited include, but are not limited to: Collateralized mortgage obligations (CMO's), mortgage pass-through securities, reverse repurchase agreements used as a leveraging vehicle, "exotic" derivatives structures such as range notes, dual index notes, inverse floating-rate notes, leveraged or de-leveraged floating-rate notes, interest-only strips that are derived from a pool of mortgages and any security that could result in zero interest accrual if held to maturity, or any other complex variable or structured note with an unusually high degree of volatility or risk.

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E. Investment Pools/Money Market Funds
A review of the pool/fund is required prior to investing, and on a continual basis. The investigation will, at a minimum, obtain the following:
▪ A description of eligible investment securities, and a written statement of investment policy and objectives.
▪ A description of interest calculations and how it is distributed, and how gains and losses are treated.
▪ A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited. ▪ A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.
▪ A schedule for receiving statements and portfolio listings ▪ A description of how the pool/fund maintain reserves, retained earnings, etc. or is all income after expenses distributed to participants ▪ A fee schedule that discloses when and how fees are assessed. ▪ The eligibility of the pool/fund to invest in bond proceeds and a description of its practices.

Money market funds must be registered with the Securities and Exchange Commission and which comply with rule 2a7 of the Investment Company Act of 1940. The dollar weighted average maturity of the portfolio shall be less than ninety (90) days and the portfolio is managed to maintain a one dollar ($1.00) share price.

Also, the fund shall meet either of the following criteria: (a) Attained the highest ranking or the highest letter and numerical rating provided by not less than two Nationally Recognized Statistical-Rating Organizations; (b) retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000).

VIII. INVESTING PARAMETERS
A. Diversification
The City shall diversify its investments by security type, issuer, maturity, and financial institutions. No percentage limitations are established for United States government, United States government agencies and United States government sponsored enterprises; however percentage limitations are established for other permitted investments, as noted in Section VII of this policy. The investments shall be diversified by limiting investments to avoid over-concentration in securities from a specific issuer or business sector (excluding U.S. Treasury and Federal Agency securities), limiting investment in securities that have higher credit risks, and investing in securities with varying maturities.

B. Maximum Maturities
To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Where there is no specified maturity limitation on an investment, no investment shall be made in any security, which, at the time of the investment, has a term remaining to maturity in excess of five (5) years, unless the City Council has granted express authority to make that investment no less than three months prior to the investment.

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In addition to the five (5) year limitation on investments specified in this policy, the average maturity of the City's combined portfolio shall not exceed two and a half (2½) years without prior approval of the City Council.

IX. REPORTING
The Administrative Services Director shall submit investment reports to the City Council that provide a clear picture of the status of the current investment portfolio and shall contain sufficient information to permit an independent organization to evaluate the performance of the investment program.

A. Reporting to City Council
In accordance with California Government Code Section 53646, the City Administrative Services Director shall submit to City Council, within thirty (30) days following the end of the quarter, an investment report that summarizes all securities in the portfolio. The report shall include:

1. Investment type

2. Issuer

3. Maturity date

4. Book value

5. Market value

6. Source of valuation

7. Statement of compliance with the investment policy

8. Statement of the ability to meet expenditures for the next six months In addition, a narrative shall accompany the portfolio addressing noteworthy items or the current investment climate. Annually, the City Administrative Services Director shall provide a review of the City's Investment Policy.

B. Reporting to California Debt and Investment Advisory Commission (CDIAC) The City shall forward copies of investment portfolio reports and copies of the annual City of Healdsburg’s Statement of Investment Policy to CDIAC on an as-required basis.

X. PERFORMANCE STANDARDS
The investment portfolio shall be managed in accordance with the parameters specified within this policy and always within consistently safe and prudent treasury management procedures.

A. Market Yield (Benchmark)
The City’s overall investment strategy is passive: Investments are generally held to maturity. If an investment advisory firm is retained by the City, the City portfolio shall be compared to a customized benchmark in order to determine whether market yields are being achieved. In addition, the quarter-to-date LAIF apportionment rate, the three-month U.S. Treasury Bill and the two-year U.S. Treasury Note shall also be considered useful benchmarks of the City’s portfolio performance.

B. Marking to Market
The market value of the portfolio shall be calculated at least quarterly. This will ensure that review of the investment portfolio, in terms of value and price volatility,

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has been performed. In defining market value, consideration shall been given to pronouncements from the Government Accounting Standards Board (GASB) that address the reporting of investment assets and investment income for all investment portfolios held by governmental entities. The fair value of all securities reported in the City’s portfolio is based on currently quoted market prices.

C. Review of Investment Portfolio
The securities held by the City must be in compliance with Authorized and Suitable Investments at the time of purchase. The City Administrative Services Director shall establish procedures to report to the City Council, major and critical incidences of noncompliance identified through the review of the portfolio.

XI. INVESTMENT POLICY COMPLIANCE AND ADOPTION
A. Policy Compliance and Changes
Any deviation from the policy shall be reported to City Council at the next scheduled meeting. The City Administrative Services Director shall promptly notify the City Council of any material change in the policy, and any modifications to the policy must be approved by the City Council.

B. Annual Statement of Investment Policy
The City Administrative Services Director shall render a written Investment Policy that shall be reviewed at least annually by the City Council to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends. The City Council shall consider the annual Investment Policy and any changes therein at a public meeting.

The Investment Policy shall be adopted by resolution of the City Council.

C. Exceptions
An exception to the policy may exist with respect to the Cultural Trust Fund, Senior Center Trust Fund and other similar trust funds where the Administrative Services Director is the Trustee and only the income from such funds may be used. The investment policy authorizes the deviation of extending beyond the five-year maturity limitation outlined. Additionally, these funds may be invested with a responsible institution or nonprofit agency to maximize return on investment and/or manage community giving.

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APPENDIX

GLOSSARY OF INVESTMENT TERMS
ASKED: The price at which securities are offered for sale; also known as offering price.

BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments.

BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.)
BOND PROCEEDS: The money paid to the issuer by the purchaser or underwriter of a new issue of municipal securities. These moneys are used to finance the project or purpose for which the securities were issued and to pay certain costs of issuance as may be provided in the bond contract.

BOOK VALUE: The value at which a debt security is shown on the holder's balance sheet.

Book value is often acquisition cost plus/minus amortization and accretion, which may differ significantly from the security’s current value in the market.

BROKER: Someone who brings buyers and sellers together and is compensated for his/her service.

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large denomination CDs are typically negotiable.

COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

CREDIT QUALITY: The measurement of the financial strength of a bond issuer. This measurement helps an investor to understand an issuer's ability to make timely interest payments and repay the loan principal upon maturity. Generally, the higher the credit quality of a bond issuer, the lower the interest rate paid by the issuer because the risk of default is lower. Credit quality ratings are provided by a Nationally Recognized Statistical-Rating Organization.

CREDIT RISK: The risk to an investor that an issuer will default in the payment of interest and/or principal on a security.

CUSTODIAN: A bank or other financial institution that keeps custody of stock certificates and other assets.

CURRENT YIELD (CURRENT RETURN): A yield calculation determined by dividing the annual interest received on a security by the current market price of that security.

DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, by buying and selling for his/her own account.

DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.

DERIVATIVES: (1) financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities).

DIVERSIFICATION: Dividing investment funds among a variety of security types by sector, maturity and quality ratings offering independent returns.

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DURATION: A measure of the timing of the cash flows, such as the interest payments and the principal repayment, to be received from a given fixed-income security. This calculation is based on three variables: term to maturity, coupon rate, and yield to maturity. The duration of a security is a useful indicator of its price volatility for given changes in interest rates.

FAIR VALUE: The amount at which an investment could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

FEDERAL CREDIT AGENCIES: Agencies of the Federal Government set up to supply credit to various classes of institutions and individuals, e.g., S&L’s, small-business firms, students, farmers, farm co-operatives, and exporters.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits currently up to $250,000 per deposit.

FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12 regional banks) that lend funds and provide correspondent banks services to member commercial banks, thrift institutions, credit unions and insurance companies.

FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States.

Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages.

FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.

FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., twelve Regional Banks and about 5,700 commercial banks that are members of the system.

FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA): A self-regulatory organization (SRO) of brokers and dealers in the over-the-counter securities business. Its regulatory mandate includes authority over firms that distribute mutual fund shares as well as other securities.

GOVERNMENT ACCOUNTING STANDARDS BOARD (GASB): A standard-setting body, associated with the Financial Accounting Foundation, which prescribes standard accounting practices for governmental units.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):

Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA, or FMHA mortgages. The term “pass-throughs” is often used to describe Ginnie Maes.

GOVERNMENT SECURITIES: An obligation of the U.S. government, backed by the full faith and credit of the government. These securities are regarded as the highest quality of investment securities available in the U.S. securities market. See "Treasury Bills, Notes, and Bonds."
INTEREST RATE RISK: The risk associated with declines or rises in interest rates which cause an investment in a fixed-income security to increase or decrease in value.

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Attachment: Healdsburg Investment Policy 2022-23 (3636 : Investment Policy) City of Healdsburg Investment Policy 17 Year 2022/23
INTERNAL CONTROLS: An internal control structure designed to ensure that the assets of the entity are protected from loss, theft, or misuse. The internal control structure is designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that 1) the cost of a control should not exceed the benefits likely to be derived and 2) the valuation of costs and benefits requires estimates and judgments by management. Internal controls should address the following points:
▪ Control of collusion - Collusion is a situation where two or more employees are working in conjunction to defraud their employer.
▪ Separation of transaction authority from accounting and record keeping - By separating the person who authorizes or performs the transaction from the people who record or otherwise account for the transaction, a separation of duties is achieved. ▪ Custodial safekeeping - Securities purchased from any bank or dealer including appropriate collateral (as defined by state law) shall be placed with an independent third party for custodial safekeeping.
▪ Avoidance of physical delivery securities - Book-entry securities are much easier to transfer and account for since actual delivery of a document never takes place. Delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physically delivered securities. ▪ Clear delegation of authority to subordinate staff members - Subordinate staff members must have a clear understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure that is contingent on the various staff positions and their respective responsibilities.
▪ Written confirmation of transactions for investments and wire transfers - Due to the potential for error and improprieties arising from telephone and electronic transactions, all transactions should be supported by written communications and approved by the appropriate person. Written communications may be via fax if on letterhead and if the safekeeping institution has a list of authorized signatures. ▪ Development of a wire transfer agreement with the lead bank and third-party custodian - The designated official should ensure that an agreement will be entered into and will address the following points: controls, security provisions, and responsibilities of each party making and receiving wire transfers.

LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.

LOCAL AGENCY INVESTMENT FUND (LAIF): Chapter 730, Statutes of 1976 of the State of California, established the Local Agency Investment Fund. This fund enables local governmental agencies to remit money not required for immediate needs to the State Finance Director for the purpose of investment. In order to derive the maximum rate of return possible, the State Finance Director has elected to invest these monies with State monies as a part of the Pooled Money Investment Account. Each local governmental unit has the exclusive determination of the length of time its money will be on deposit with the State Finance Director.

At the end of each calendar quarter, all earnings derived from investments are distributed by the State Controller to the participating government agencies in proportion to each agency's respective amounts deposited in the Fund and the length of time such amounts remained therein.

Prior to the distribution, the State's costs of administering the program are deducted from the earnings.

MARK-TO-MARKET: The process whereby the book value or collateral value of a security is adjusted to reflect its current market value.

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Attachment: Healdsburg Investment Policy 2022-23 (3636 : Investment Policy) City of Healdsburg Investment Policy 18 Year 2022/23
MARKET RISK: The risk that the value of a security will raise or decline as a result of changes in market conditions.

MARKET VALUE: The current price at which a security is trading and could presumably be purchased or sold at that particular point in time.

MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase-reverse repurchase agreements that establish each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the sellerborrower.

MATURITY: The date upon which the principal or stated value of a financial obligation is due and payable.

MONEY MARKET MUTUAL FUND: Mutual funds that invest solely in money market instruments (short-term debt instruments, such as Treasury bills, commercial paper, bankers' acceptances, repos and federal funds).

MUTUAL FUND: An investment company that pools money and can invest in a variety of securities, including fixed-income securities and money market instruments. Mutual funds are regulated by the Investment Company Act of 1940 and must abide by Securities and Exchange Commission (SEC) disclosure guidelines.

NATIONALLY RECOGNIZED STATISTICAL-RATING ORGANIZATION (NRSRO):

Standard and Poor’s, Moody’s, and Fitch Financial Services are examples of such organizations.

OFFER: An indicated price at which market participants are willing to sell a security or commodity. Also referred to as the "Ask price."
PAR VALUE: The amount of principal that must be paid at maturity. Also referred to as the face amount of a bond, normally quoted in $1,000 increments per bond.

PRINCIPAL: The face value or par value of a debt instrument, or the amount of capital invested in a given security.

RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

REINVESTMENT RISK: The risk that a fixed-income investor will be unable to reinvest income proceeds from a security holding at the same rate of return currently generated by that holding.

REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate the buyer for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank reserves.

REVERSE REPURCHASE AGREEMENT: An agreement of one party (for example, a financial institution) to purchase securities at a specified price from a second party (such as a public agency) and a simultaneous agreement by the first party to resell the securities at a specified price to the second party on demand or at a specific date.

RISK: Degree of uncertainty of return on an asset.

RULE 2A-7 OF THE INVESTMENT COMPANY ACT: Applies to all money market mutual funds and mandates such funds to maintain certain standards, including a 13-month maturity limit and a 90-day average maturity on investments, to help maintain a constant net asset value of one dollar ($1.00).

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Attachment: Healdsburg Investment Policy 2022-23 (3636 : Investment Policy) City of Healdsburg Investment Policy 19 Year 2022/23
SAFEKEEPING SERVICE: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vault for protection and security.

SECONDARY MARKET: A market is made for the purchase and sale of outstanding issues following the initial distribution.

SECURITIES LENDING: An agreement under which a local agency agrees to transfer securities to a borrower who, in turn, agrees to provide collateral to the local agency. During the term of the agreement, both the securities and the collateral are held by a third party. At the conclusion of the agreement, the securities are transferred back to the local agency in return for the collateral.

STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises, (FLAB, FNMA, SLMA, etc.), and Corporations that have imbedded options, (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns), into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve.

SWAP: Trading one asset for another.

TOTAL RETURN: The sum of all investment income plus changes in the capital value of the portfolio.

TREASURY BILLS: Short-term U.S. government non-interest bearing discounted debt securities with maturities of no longer than one year and issued in minimum denominations of $10,000. Auctions of three- and six-month bills are weekly, while auctions of one-year bills are monthly. The yields on these bills are monitored closely in the money markets for signs of interest rate trends.

TREASURY BOND: A long-term coupon-bearing U.S. Treasury security issued as a direct obligation of the U.S. Government and having an initial maturity of more than 10 years and issued in minimum denominations of $1,000.

TREASURY NOTE: A medium-term coupon-bearing U.S. Treasury security issued as a direct obligation of the U.S. Government and having an initial maturity of from one to ten years and issued in denominations ranging from $1,000 to $1 million or more.

UNIFORM NET CAPITAL RULE: Securities and Exchange Commission (SEC) Rule 15C3- 1 outlining requirements that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.

VOLATILITY: A degree of fluctuation in the price and valuation of securities.

YIELD: The current rate of return on an investment security generally expressed as a percentage of the security’s current price. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.

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Attachment: Healdsburg Investment Policy 2022-23 (3636 : Investment Policy)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: June 21, 2022
SUBJECT: Approval of Change Order Number 1 for the Water Reclamation Facility Equalization Pond Solids Removal and Disposal Project (Project PWS942)
PREPARED BY: Patrick Fuss, Water/Wastewater Engineer
STRATEGIC INITIATIVE(S):

Maintain and Improve Infrastructure and Facilities
Maintain and Enhance Public Health and Safety
RECOMMENDED ACTION(S):

Adopt a Resolution increasing the Solids Removal project budget by $156,600 for a total project budget of $382,862, transferring $78,300 from the Wastewater Development Impact Fee Fund to the Sewer Operations Fund to cover fair share maintenance and restored capacity costs and authorizing the City Manager to approve change orders up to the project's approved amount.

COMMUNITY ENGAGEMENT/OUTREACH:

Not applicable.

BACKGROUND:

The Water Reclamation Facility (WRF) receives and treats all of the City’s sanitary wastewater conveyed through the City’s sewage collection system. During heavy rains and periods of high inflow and infiltration, the sewage collection system can deliver more flow to the WRF than the WRF can treat. The portion of peak flow in excess of treatment capacity is routed to an equalization pond where the flow can be stored, and then later brought into the treatment plant for processing. Additionally, the equalization pond is used to return flows within the treatment process that have not been sufficiently treated for any reason. These returned treatment streams can send flow to the equalization pond from any point in the treatment process to be re-treated.

Wastewater and process streams are ladened with solids. When the flows are stored in the equalization pond, the solids tend to settle out. Over the years, approximately 2 feet of solids have accumulated in the equalization pond. Portions of the accumulated solids tend to flow back to the treatment process with liquid being removed from the equalization pond.

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The accumulated solids are largely inert and interfere with the biomass that actively treats the wastewater at the WRF. The solids should be removed to restore full function of the equalization pond.

Staff prepared a project for bidding to remove and dispose of the solids accumulated in the equalization pond. The project, which anticipated approximately 65 dry-tons of material to be removed, was awarded by City council on January 18, 2022, to Clean Harbors Environmental Services, Inc. for $205,692.

DISCUSSION/ANALYSIS:

In the process of removal of the material from the equalization pond, the contractor found substantially more material present than indicated in the bid documents. The bid documents indicated the quantity of solids to be removed to be 65 dry-tons. The actual solids removed has been 65 dry-tons based on estimated volume of material removed and percent solids concentration sampling of the removed material plus another 55 dry tons still remaining in the pond. The revised estimate of total solids to be removed is roughly 120 dry-tons, approximately 55 dry-tons over the bid’s estimated quantities.

When awarding the project, the City Council authorized a contingency of $20,570 which is equivalent to approximately seven dry-tons at the as-bid unit price of $2,848 per dry ton. The anticipated cost to remove, dewater and dispose of the additional 55 dry-tons is $156,600. This amount exceeds the present authorized project budget and contingency. Authorization from City Council is required to increase appropriations and fund completion of this work.

Staff recommends that City Council authorize an additional $156,600 to complete the removal of solids from the equalization pond. This authorization would provide sufficient budget to complete the project and retain the contingency to address unforeseen conditions. The actual cost will be based on the measured weight of material removed and measured percent solids of the material removed.

ENVIRONMENTAL STEWARDSHIP:

The Water Reclamation Facility is essential in treating wastewater generated by the City. The equalization pond is a key component in the Water Reclamation Facility, allowing for storage of excess flow and process upset streams within the Water Reclamation Facility. Restoration of the equalization pond to full capacity will aid the Water Reclamation Facility to operated effectively and efficiently to safeguard the environment.

ALTERNATIVES:

The Contractor has offered to decrease the unit price of solids removed by $547 per dry ton if the City were to handle and dispose of the material removed from the pond separately from the contract. This approach would reduce the unit price of solids removed from $2,848 to $2,301, but still requires an additional contract and budget of $91,000 to transport the material. Staff does not recommend this approach because additional costs will still need to be incurred to handle and dispose of the material from the Water Reclamation Facility site. Further, having the material on site in a containment area is susceptible to overflow if rain should occur before the material gets removed.

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City Council could increase the budget by the amount recommended by staff less the previously authorized contingency. This would reduce the budget augmentation from $156,600 to $136,030.

Staff does not recommend this alternative in that the removal of solids will be based on actual weight of material removed versus the volume-based estimates. As the project is not complete, a contingency is recommended to remain should actual weights exceed estimates.

FISCAL IMPACT:

The budget authorized by City Council on January 18, 2022, for the Equalization Solids Removal and Disposal Project is $205,692.00, plus a contingency of $20,570.00 for a total budget of $226,262. Staff recommends increasing the budget by $156,600 for a revised project budget of $382,862, including the initial contingency of $20,570.

To fund the increase in costs, staff propose a combination of funds from both the wastewater operations fund balance and wastewater impact fees. The proposed Resolution includes a budget amendment that would increase the project budget by $156,600 and transfers $78,300 from the Sewer Impact Fee Fund to the Sewer Operations Fund to cover the fair share of new developments costs to maintain and restore capacity.

ENVIRONMENTAL ANALYSIS:

The work to be conducted under this project is maintenance of a publicly-owned wastewater treatment facility and falls under a Class 1 Categorical Exemption under California Code of Regulations, Title 14, Division 6, Chapter 3, Section 15301 ATTACHMENT(S):

Resolution
Exhibit A

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CITY OF HEALDSBURG
RESOLUTION NO. _________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG INCREASING THE SOLIDS REMOVAL
PROJECT BUDGET BY $156,600 FOR A TOTAL PROJECT
BUDGET OF $382,862 AND AUTHORIZING THE CITY

MANAGER TO APPROVE CHANGE ORDERS UP TO THE
PROJECT’S APPROVED AMOUNT
WHEREAS, the City’s wastewater is treated at the Water Reclamation Facility; and WHEREAS, the Water Reclamation Facility is equipped with an equalization pond to accommodate peak flows in excess of the Facility’s capacity and to store process upsets for return to treatment; and
WHEREAS, the equalization pond has accumulated solids that are displacing the equalization pond usable volume and impair the usability of the equalization pond; and WHEREAS, City Staff has neither the equipment or expertise to remove the accumulated solids in the equalization pond; and
WHEREAS, City Staff solicited for and received formal bids for the Water Reclamation Facility Equalization Pond Solids Removal and Disposal Project, Project PWS942; and WHEREAS, on January 18, 2022, City Council awarded the project to Clean Harbors Environmental Services, Inc., provided the lowest responsive bid for the work, with a bid amount of $205,692 based on 65 dry-tons of material estimated to be in the pond; and WHEREAS, in doing the work, Clean Harbors Environmental Services, Inc., has found that the amount of material in the pond exceeds the initially estimated quantity by approximately 55 dry-tons for a total of approximately 120 dry-tons; and WHEREAS, the unit price per dry ton offered by Clean Harbors Environmental Services, Inc. is $2,848 per dry-ton, the additional material adds an estimated $156,600 to the project cost; and
WHEREAS, the project is categorically exempt under California Environmental Quality Act (CEQA), Title 14, Article 19, Section 15301, Class 1 for maintenance of an existing wastewater facility with no expansion of the existing use.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg hereby:

1. Find that the Project is exempt from CEQA and no further environmental review is needed.

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Attachment: Resolution (3644 : Change order for EQ Pond solids Project) Resolution No. – 2022

2. Approve increasing the Wastewater Operations Budget by $156,600 and transferring $78,300 from the Wastewater Development Impact Fee Fund to the Wastewater Operations Fund to cover the fair share of new development costs of restored capacity, as depicted in Exhibit A.

3. Authorize the City Manager to approve change orders up to the Project’s revised authorized budget.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Healdsburg, 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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Attachment: Resolution (3644 : Change order for EQ Pond solids Project) Resolution No.

Exhibit A
Account Number Increase Amount Decrease Amount Description 530-6369-43215-00000 $ 156,600.00 Equialization Solids Removal Project PWS942 930-8080-42301-00000 $ 78,300.00 Transfer Out from Wastewater Impact Fee Fund 530-1000-39001-00000 $ 78,300.00 Transfer in to Wastewater Operating Fund Exhibit A

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Attachment: Exhibit A (3644 : Change order for EQ Pond solids Project)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: June 21, 2022
SUBJECT: Extension of a Professional Services Agreement with MMO Partners of Washington DC for Federal Advocacy Services, with Costs Shared by Healdsburg and Five Other Cities
PREPARED BY: Andrew Sturmfels, Administrative Services Director STRATEGIC INITIATIVE(S):

Provide Effective Governance
RECOMMENDED ACTION(S):

Adopt a Resolution authorizing the City Manager to approve a 12-month extension to a Professional Services Agreement for federal advocacy services with MMO Partners, increasing the not-to-exceed amount by $85,490 of $283,480, offset by an additional $78,432 in reimbursement revenue from five (5) other participating Sonoma County cities.

COMMUNITY ENGAGEMENT/OUTREACH:

Not Applicable.

BACKGROUND:

In May of 2020, the City of Healdsburg, along with the cities of Petaluma, Cotati, Rohnert Park, Sebastopol, Sonoma and Cloverdale (Partnering Cities), retained Murray, Montgomery, and O’Donnell (MMO Partners) to ensure that: cities in Sonoma County with a population below 100,000 were provided direct, flexible federal funding to offset COVID related revenue losses, monitor federal agency program guidance, provide timely Covid grant related funding announcements and analyze House and Senate COVID related legislation to determine potential impact to partnering cities.

MMO supported the City of Healdsburg and other participating cities in advocating for the American Rescue Plan Act (ARPA), which was signed into law on March 11, 2021, as well as it’s ensuing regulatory implementation process. Additionally, MMO has supported partnering Cities in advocating for their priorities in the Infrastructure Investment and Jobs Act (IIJA), which was signed into law on November 15, 2021. MMO has also provided technical assistance to partnering cities on the Federal Appropriations Process and helped support the City of Healdsburg’s recent projects included in the Water Resources Development Act.

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DISCUSSION/ANALYSIS:

Given the success of the partnership with MMO in advocating partnering cities needs at the federal level, all 6 participating cities have expressed interest in continuing the partnership with MMO for another year. MMO has proposed to continue providing federal advocacy services for partnering cities, including:
• Serving as an intergovernmental liaison with federal agencies, Congress, and partnering cities.
• Supporting partnering cities in identifying policy and project priorities, including support in preparing future year federal appropriation requests • Monitoring ARPA and IIJA implementation guidance and funding opportunities • Monitoring and providing federal grant opportunities
• Tracking federal legislation and providing technical assistance • Monitoring and identifying opportunities in the FY 23 and 24 federal budgets. • Support connectivity between partnering cities, federal agency officials, and Capitol Hill staff
MMO has proposed to keep the cost of these services flat, with a total rate of $7,124 per month, or $85,490 for the full year. The City of Healdsburg acts as the contract administrator for the partnering cities and receives reimbursement from the partnering cities to offset their proportional cost share. The cost is split based on population and remains the same as the prior year.

City Population Cost/City
Healdsburg 11,610 $ 7,057.28
Petaluma 59,760 $ 36,325.82
Cloverdale 8,760 $ 5,324.87
Sonoma 10,950 $ 6,656.09
Sebastopol 7,630 $ 4,637.99
Rohnert Park 41,930 $ 25,487.64
TOTAL 140,640 $ 85,489.68
Partnering cities have expressed that MMO Partners continues to have the experience, skills, and knowledge of our local area (as well as detailed knowledge of the congressional appropriations and FEMA reimbursement process) necessary to accomplish this task. The $7,124/month rate is reasonable for the work being performed, and with all six (6) cities sharing in the cost allocated by population, the net cost to the City is expected to be $7,057 for the twelve-month Agreement, which would expire at the end of June 2023.

ENVIRONMENTAL STEWARDSHIP:

Not applicable.

ALTERNATIVES:

The Council may choose not to approve the resolution and direct staff to find an alternate means to support federal advocacy efforts.

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FISCAL IMPACT:

Appropriations for this Personal Services Agreement are included in the adopted fiscal year 2022-23 budget. Reimbursements of $78,432 are expected for the $85,490 total additional contract cost amount, leaving a net City expense of $7,057.

ENVIRONMENTAL ANALYSIS:

The Professional Services Agreement (“Agreement”) is not a “project” pursuant to California Environmental Quality Act (“CEQA”) Guidelines 15378(b)(5) because the Agreement for advocacy services is an organizational and administrative activity; therefore, no environmental review is required.

ATTACHMENT(S):

Resolution

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CITY OF HEALDSBURG
RESOLUTION NO. __-2022

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG AUTHORIZING THE CITY MANAGER TO

EXTEND A PROFESSIONAL SERVICES AGREEMENT FOR

FEDERAL ADVOCACY SERVICES WITH MMO PARTNERS

FOR ONE YEAR, INCREASING THE NOT-TO-EXCEED
AMOUNT BY $85,490 TO $283,480
WHEREAS, the COVID-19 crisis and the related Shelter-in-Place (SIP) Order(s) have significantly impacted the community, its businesses, and city government; and WHEREAS, the City has worked with five other similarly-situated cities in Sonoma County (Cloverdale, Petaluma, Rohnert Park, Sebastopol and Sonoma) to align our interests in retaining Federal advocacy services to secure better COVID-related Federal assistance to offset lost revenue due to COVID-19 and the SIP Order(s); and
WHEREAS, in April 2020 the cities entered into a cost-shared contract with MMO (Murray Montgomery O’Donnell) Partners, a Washington DC-based advocacy firm with knowledge of our region, the importance of tourism to our revenues, and our collective interests; and
WHEREAS, that agreement was extended, with City Council approval in December 2020 and again in June of 2021, based on the shared desire of all participating Cities to continue to receive the services being provided by MMO Partners; and WHEREAS, MMO Partners has successful provided federal advocacy services to partnering cities during the term of the current agreement; and WHEREAS, MMO Partners has represented that that it can perform these advocacy services in accordance with the terms and conditions set forth in the City’s Professional Services Agreement; and
WHEREAS, the expenses relating to these services during the initial period and the extension period are anticipated to be offset significantly by per capita-based payments from the six partnering cities, including Healdsburg; and
WHEREAS, the Professional Services Agreement is not a “project” pursuant to California Environmental Quality Act (“CEQA”) Guidelines 15378(b)(5) because the Professional Services Agreement for federal advocacy services is an organizational and administrative activity that will not result in direct or indirect physical changes in the environment. Therefore, no further environmental review is required.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg hereby:

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Attachment: Resolution (3657 : Professional Services Agreement Extension with MMO Partners of Washington DC) Resolution No. xx-2022

1. Approves an extension of an existing professional services agreement for federal advocacy services relating to the COVID-19 crisis and the Shelter-in-Place Order(s) with MMO Partners.

2. Authorizes the City Manager to execute a one-year extension to the existing agreement with a not-to-exceed amount of $283,480 ($60,000 from the initial agreement, $52,500 for the first extension, $85,490. for second extension, and $85,490 for this extension).

3. Directs the City Manager to continue the existing administrative billing method to provide for a per capita-based reimbursement of the Agreement’s cost by any participating city,

4. Finds that federal advocacy services are exempt under CEQA section 15378(b)(5).

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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Attachment: Resolution (3657 : Professional Services Agreement Extension with MMO Partners of Washington DC)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: June 21, 2022
SUBJECT: Accept as complete the Badger Substation 12kV and 60kV Bus Reconstruction Project (EL1008)
PREPARED BY: Terry Crowley, Utilities Director
STRATEGIC INITIATIVE(S):

Maintain and Improve Infrastructure and Facilities
RECOMMENDED ACTION(S):

Adopt a Resolution accepting as complete the Badger Substation 12kV and 60kV Bus Reconstruction Project (EL1008) and authorizing staff to file a Notice of Completion.

COMMUNITY ENGAGEMENT/OUTREACH:

No public engagement was sought for this item.

BACKGROUND:

In 2021 the City Council awarded a construction contract to Preferred Power Solutions Inc. to complete the Badger Substation 12,000 (12kV) and 60,000 (60kV) Bus Reconductor Project.

This project removed obsolete and failing equipment from the Badger substation by reconstructing the 12kV bus and completing a looped feed for the 60kV bus. Additionally, the work included seismic strengthening by installing of micro-piles to support both the 12kV bus and new portions of the 60kV bus. Other miscellaneous work was completed as well.

DISCUSSION/ANALYSIS:

To complete the necessary work, bids were solicitated and a contract was awarded to Preferred Power Solutions Inc. (PPS) for the original amount of $3,093,100. Included in the Council’s authorization was a 15% contingency to account for uncertainties in the installation of the micropiles as well as changes typical of large capital improvement projects. Change orders were necessary and issued as summarized below.

Change Order Summary Change Order Price
Micro-piles, changed condition $ 204,436.45
12kV Feeder Trench $ 55,842.00

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Control House Electric Modifications $ 49,565.00
SCADA Improvements $ 52,019.00
Misc. Material, Fiber, & Steel Work $ 78,805.34
Change Order Total $ 440,667.97
The largest change order was associated with the installation of the micro-piles. Per the construction drawings micro-piles were to be installed with each of the 32 new foundations.

Each foundation received four micro-piles, 128 in total, at depths ranging between 50.5 and 55.5- feet below grade. During the installation the contractor encounter large cobles not clearly presented on the Geotechnical Report available at the time of bid. This resulted in a changed condition and a negotiated cost for incremental cost increases. Other change orders were necessary due to supply change issues and needed improvements to the station’s remote indication and control systems.

The work has been completed in accordance with the contract documents and approved change orders to the satisfaction of the City’s representative.

ENVIRONMENTAL STEWARDSHIP:

This project improves the reliablity of the City source of electrical power. Providing reliably power supports residents and businesses switching from fossil fuels to cleaner low-carbon electric sources.

ALTERNATIVES:

City Council could choose not to accept the Project as complete and provide further direction to staff.

FISCAL IMPACT:

There is no fiscal impact related to the proposed action.

ENVIRONMENTAL ANALYSIS:

Council’s accepting of the Project as complete and directing staff to record the Notice of Completion with Sonoma County is not a “project” pursuant to California Environmental Quality Act (CEQA) Guidelines 15378(b)(2) because administrative activities do not constitute a “project”; therefore, no environmental review is required.

ATTACHMENT(S):

Resolution
Certificate of Completion
Notice of Completion

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CITY OF HEALDSBURG
RESOLUTION NO. -2022

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG ACCEPTING AS COMPLETE THE BADGER
SUBSTATION 12KV AND 60KV BUS RECONSTRUCTION
PROJECT (EL1008) AND AUTHORIZING STAFF TO FILE A

NOTICE OF COMPLETION
WHEREAS, the City of Healdsburg owns and operates a high-voltage electric substation (Badger Substation) that provides power for the Healdsburg community; and WHEREAS, existing equipment within the Badger Substation is beyond its useful life and required replacement; and
WHEREAS, on June 7, 2021, City Council awarded the Badger Substation 12kV and 60kV Bus Reconstruction Project, EL1008 (Project) to Preferred Power Solutions Inc. (Contractor), in the amount of $3,093,100.00, with a contingency of $463,965.00; and WHEREAS, on June 15, 2022, the Contractor finalized the Project in accordance with the contract documents to the satisfaction of the City; and WHEREAS, the City’s Utility Director has reviewed all the completed work and finds the work complete per the prepared plans and agreed upon change orders; and WHEREAS, accepting the Project as complete is an administrative action and therefore not defined as a “project” and is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Title 14, the California Code of Regulations, Section 15378(b)(2).

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Healdsburg hereby:

1. Find that continued administrative activity are exempt from CEQA and no further environmental review is necessary.

2. Accept the project as complete and authorizes staff to file a Notice of Completion with the County Recorder’s Office.

3. Authorize staff to release any retention due and payable to Preferred Power Solutions thirty-five (35) days after the recordation of the Notice of Completion subject to any retention requirements permitted by law.

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Attachment: Resolution (3673 : Accept As Complete Badger Substation) Resolution No. xx-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:
________________________________ ___________________________________ Oswaldo Jimenez, Mayor Raina Allan, City Clerk

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Attachment: Resolution (3673 : Accept As Complete Badger Substation)

CITY OF HEALDSBURG

CERTIFICATION OF COMPLETION
Project Title: EL1008 – Badger Substation 12kV & 60kV Bus Reconstruction Site Address or
Location: 780 Heron Lane, Healdsburg CA 95448
Property Owner: City of Healdsburg
Address:

City of Healdsburg
401 Grove Street
Healdsburg, CA 95448
I, Terry Crowley, P.E., Utility Director, of the City of Healdsburg, California, on June 15 , 2022, have determined and hereby certify that:
o Badger Substation 12kV & 60kV Bus Reconstruction, EL1008, the contract for doing which was hereto awarded to Preferred Power Solutions, Inc. (PPS) has been substantially completed by PPS. in accordance with the project plans and specifications; and
o Said work and improvements were actually completed on June 15, 2022; and o Said work and improvements consisted of the reconstruction of Badger Substation 12kV and 60kV bus and related seismic improvements, as more specifically described in the plans and specifications approved by the City Council of the City of Healdsburg.

I, Terry Crowley, P.E., Utility Director, of the City of Healdsburg do hereby certify, under penalty of perjury, that the foregoing is true and correct.

DATED: June 15, 2022 ATTEST:

Terry Crowley Raina Allan
Utility Director City Clerk

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Attachment: Certificate of Completion (3673 : Accept As Complete Badger Substation) Recording Requested by:

Healdsburg City Clerk
When Recorded Return to:

Healdsburg City Clerk
401 Grove Street
Healdsburg, Ca. 95448

CITY OF HEALDSBURG

NOTICE OF COMPLETION
Project Title: EL1008 – Badger Substation 12kV & 60kV Reconstruction Project Site Address or
Location: 780 Herron Lane, Healdsburg CA 95448.

Property Owner: City of Healdsburg
Address:

City of Healdsburg
401 Grove Street
Healdsburg, CA 95448
Nature of Owner’s
Interest City’s High-Voltage Electrical Substation
NOTICE IS HEREBY GIVEN THAT I, Terry Crowley, P.E., Utility Director, of the City of Healdsburg, California, on June 15, 2022, did file with the City Clerk of the City of Healdsburg, my Certificate of Completion of the following described contracted work, which was heretofore awarded to Preferred Power Solutions Inc. on June 7, 2021, in accordance with the City Clerk and approved by the City Council of said City;
That said work and improvements were actually completed on June 15, 2022; That acceptance of the said work and improvements was ordered by City Council Resolution No.___ on June 21, 2022.

That said work and improvements consisted of reconstruction of Badger Substation 12kV and 60kV bus and related seismic improvements, as more specifically described in the plans and specifications.

I, Terry Crowley, P.E., Utility Director, of the City of Healdsburg do hereby certify, under penalty of perjury, that the foregoing is true and correct.

DATED:____________________ ATTEST:
_____________________________
Terry Crowley, P.E. Raina Allan
Utility Director City Clerk

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Attachment: Notice of Completion (3673 : Accept As Complete Badger Substation)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: June 21, 2022
SUBJECT: Professional Services Agreement with SOS Community Counseling for Juvenile Diversion Services
PREPARED BY: Matt Jenkins, Police Chief
STRATEGIC INITIATIVE(S):

Provide Effective Governance
Maintain and Enhance Public Health and Safety
RECOMMENDED ACTION(S):

Adopt a Resolution approving an amendment to a Professional Services Agreement with SOS Community Counseling to provide for youth diversion services through its Healdsburg Family Youth Services program for an amount not to exceed $33,542 and authorizing the City Manager to execute the amendment and increasing the not-to-exceed amount by $33,542 to $83,531.

BACKGROUND:

The Healdsburg Police Department provides a juvenile diversion program as an alternative to the juvenile justice system for youth offenders, which is considered a best practice as it keeps juveniles out of the juvenile justice system. The program was initially run by the police department by a full-time staff member and was later provided through contracts with local nonprofit organizations. The Police Department has been contracting with SOS Community Counseling to offer these services through its Healdsburg Youth and Family Services (HYFS) program since 2017.

In December of 2020 the City executed a Professional Services Agreement (PSA) for the abovementioned services with SOS Community Counseling for an initial contract amount of $25,019.28 and an initial agreement term set to expire June 30, 2021. In June of 2021 an amendment was executed extending the agreement term for another year to June 30, 2022, increasing the contract not-to-exceed amount by 24,979.26 to $49,998.54.

DISCUSSION/ANALYSIS:

The HYFS program aims at brining youth closer to their decisions and empowering them to make better decisions. The youth offenders are offered therapy wherein the youth acknowledge their behavior, and the program addresses the youth in a manner that is conducive to diverting

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their behavior(s) but also hold them accountable for their actions. The youth is assigned to a counselor for a 10-week program where they partake in one-on-one sessions, complete community service, and provide an act of restitution.

Officers can refer youth offenders into the program for violations such as possession of marijuana on school grounds, being under the influence of a controlled substance, consuming alcohol on or off school grounds, possessing a knife on school grounds, vandalism, and assault and battery. As part of the program, administrators from the Healdsburg Unified School district may make direct referrals to the program. This reduces the amount of police department staff time in responding to lower-level juvenile complaints.

During the previous terms of the contract, HYFS provided the following services:

FY 2018/2019 FY 2019/2020 FY 2020/2021 FY 21/22
projected
Youth Diverted 35 46 30 60
Completed Program 34 44 30 59
Staff has met with SOS Community Counseling to renew the agreement for the upcoming fiscal year. Due to increased personnel costs, the amount of the annual contract has increased by approximately $8,500, bringing the annual total to $33,542. Staff is bringing this year’s Amendment to City Council for approval as the proposed increase to the not-to-exceed amount surpasses staff’s authorized limits.

The proposed Amendment would extend the agreement term for another year to June 30, 2022 and increase the PSA not-to-exceed amount by $33,542 to $83,540.54.

Staff is recommending that Council approve the amendment to the existing PSA with SOS Community Counseling, and authorize the City Manager to execute the Amendment on behalf of the City,
ALTERNATIVES:

The City Council may choose not to approve the amendment which would remove the option for officers to use diversion services for juveniles and instead result in juvenile offenders being cited into the juvenile justice system.

FISCAL IMPACT:

The total cost of the amendment for FY 22/23 is $33,542, which is accounted for in the adopted FY 22/23 budget.

ENVIRONMENTAL ANALYSIS:

Pursuant to Title 14, the California Code of Regulations, Section 15378(b)(4)(5) of the California Environmental Quality Act (“CEQA”) guidelines, the proposed action is an administrative activity of the City that will not result in direct or indirect physical changes to the environment; and therefore, is not a project for purposes of CEQA.

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ATTACHMENT(S):

Resolution
HJDP Scope of Work 2022-23

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CITY OF HEALDSBURG
RESOLUTION NO. __-2022

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG APPROVING AN AMENDMENT TO A

PROFESSIONAL SERVICES AGREEMENT WITH SOS

COMMUNITY COUNSELING TO PROVIDE FOR YOUTH

DIVERSION SERVICES THROUGH ITS HEALDSBURG

FAMILY YOUTH SERVICES PROGRAM, AUTHORIZING

THE CITY MANAGER TO EXECUTE THE AMENDMENT,

AND INCREASING THE NOT-TO-EXCEED AMOUNT BY
$33,542 TO $83,541
WHEREAS, the Healdsburg Police Department has offered juvenile diversion services as a best practice for keeping juveniles out of the juvenile justice system; and WHEREAS, the Healdsburg Police Department has utilized SOS Community Counseling for juvenile diversion services since 2017 through its Healdsburg Youth and Family Services program; and
WHEREAS, the Healdsburg Youth and Family Services program aims at brining youth closer to their decisions and empowering them to make better decisions, and WHEREAS, the current PSA with SOS Community Counseling is set to expire on June 30, 2021, and
WHEREAS, SOS Community Counseling has provided a proposal to continue offering juvenile diversion services for an additional year for $33,542; and WHEREAS, the proposed Amendment would extend the agreement term for another year to June 30, 2022 and increase the PSA not-to-exceed amount by $33,542 to $83,541; and WHEREAS, staff is recommends that Council approve the Amendment to the existing PSA with SOS Community Counseling, and authorize the City Manager to execute the Amendment on behalf of the City; and
WHEREAS, pursuant to Title 14, the California Code of Regulations, Section 15378(b)(4)(5) of the California Environmental Quality Act (“CEQA”) guidelines, the proposed action is an administrative activity of the City that will not result in direct or indirect physical changes to the environment; and therefore, is not a project for purposes of CEQA.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg hereby:

1. Approves the Amendment to the existing PSA with SOS Community Counseling.

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Attachment: Resolution [Revision 1] (3658 : Juvenile Diversion Contract) Resolution No. -2022

2. Authorizes the City Manager to execute the Amendment, extending the agreement term for another year to June 30, 2022 and increasing the PSA not-to-exceed amount by $33,542 to $83,541.

3. Finds pursuant to Title 14, the California Code of Regulations, Section 15378(b)(4)(5) of the California Environmental Quality Act (“CEQA”) guidelines, the proposed action is an administrative activity of the City that will not result in direct or indirect physical changes to the environment; and therefore, is not a project for purposes of CEQA PASSED, APPROVED and ADOPTED this 21st day of June, 2022, by the following vote:

AYES: Council members: ( )
NOES: Council members: ( )
ABSENT: Council members: ( )
ABSTAINING: Council members: ( )
SO ORDERED: ATTEST:
__________________________________ ____________________________________ Osvaldo Jimenez, Mayor Raina Allan, City Clerk

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Attachment: Resolution [Revision 1] (3658 : Juvenile Diversion Contract) Exhibit A
Healdsburg Juvenile Diversion Program Scope of Work
l. Description of Services or Scope of Work.

1.1 Contractor’s Specified Services. Contractor shall perform the following services within the times or by the dates provided below:
a. Contractor shall provide youth services through its Healdsburg Family Youth Services (HFYS) program including low-risk citation diversion, drug and alcohol citation diversion, anger management, bullying prevention, truancy prevention, and general diversion counseling according to the needs of the juvenile. Short-term individual, family, group therapy and Parent Project Classes will also be offered as part of this program component.
b. Referrals to Healdsburg Juvenile Diversion Program (HJDP) will originate from Healdsburg Police Department (HPD) then referred to the HJDP Program Manager.

The local schools within the Healdsburg Unified School District may utilize this program by making a referral through HPD. Contractor shall contact referred families to develop a plan for diversion services based on the nature of the referral. c. Program can also utilize referrals given from Healdsburg Middle School and/or Healdsburg High School Administration; as well any youth members whom the District deems as “High Risk,” in order to mitigate youth members of the City of Healdsburg entering into the juvenile justice system.
d. Contractor shall provide details including initials of participants and staff, dates and locations of service, for each group, session, or class performed through monthly invoices.
e. Contractor shall provide annual reports of juveniles accepted, hours of counseling, program completions and incompletions.

1.2 Cooperation With the City. Contractor shall cooperate with the City and City staff in the performance of all work hereunder.

1.3 Performance Standard. Contractor shall perform all work hereunder in a manner consistent with the level of competency and standard of care normally observed by a person practicing in Contractor's profession. The City has relied upon the professional ability and training of the Contractor as a material inducement to enter into this Agreement. Contractor hereby agrees to provide all services under this Agreement in accordance with generally SOS Community Counseling: a 501(c)(3) non-profit, charitable organization.

Main Office: 319 South E Street, Santa Rosa, CA 95404 (707) 284-3444. http://.soscounseling.org

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Attachment: HJDP Scope of Work 2022-23 (3658 : Juvenile Diversion Contract) accepted professional practices and standards of care, as well as the requirements of applicable federal, state and local laws, it being understood that acceptance of Contractor’s work by City shall not operate as a waiver or release. If City determines that any of Contractor's work is not in accordance with such level of competency and standard of care, City, in its sole discretion, shall have the right to do any or all of the following: (a) require Contractor to meet with City to review the quality of the work and resolve matters of concern; (b) require Contractor to repeat the work at no additional charge until it is satisfactory; (c) terminate this Agreement pursuant to the provisions of Article 4; or (d) pursue any and all other remedies at law or in equity.

1.4 Assigned Personnel.
a. Contractor shall assign only competent personnel to perform work hereunder. In the event that at any time City, in its sole discretion, desires the removal of any person or persons assigned by Contractor to perform work hereunder, Contractor shall remove such person or persons immediately upon receiving written notice from City. b. Any and all persons identified in this Agreement or any exhibit hereto as the project manager, project team, or other professional performing work hereunder are deemed by City to be key personnel whose services were a material inducement to City to enter into this Agreement, and without whose services City would not have entered into this Agreement. Contractor shall not remove, replace, substitute, or otherwise change any key personnel without the prior consent of the City. c. In the event that any of Contractor’s personnel assigned to perform services under this Agreement become unavailable due to resignation, sickness or other factors outside of Contractor’s control, Contractor shall be responsible for timely provision of adequately qualified replacements.
d. All persons who have direct contact with targeted youth must pass a background check performed by the Healdsburg Police Department before performing any services under this Agreement. Such persons shall follow the background check procedure set forth in Exhibit A.1, attached hereto and incorporated herein by this reference.

2. Payment. For all services and incidental costs required hereunder, Contractor shall be paid in accordance with the following terms:

For all services and incidental costs required hereunder, Contractor shall be paid on a time and material/expense basis in accordance with the budget set forth in Exhibit A.2, attached hereto and incorporated herein by this reference, provided, however, that total payments to Contractor shall not exceed thirty three thousand five hundred forty two dollars ($33,542) without the prior written approval of City, between July 1, 2022 to June 30, 2023. Contractor shall submit its bills SOS Community Counseling: a 501(c)(3) non-profit, charitable organization.

Main Office: 319 South E Street, Santa Rosa, CA 95404 (707) 284-3444. http://.soscounseling.org

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Attachment: HJDP Scope of Work 2022-23 (3658 : Juvenile Diversion Contract) in arrears on a monthly basis in a form approved by the City's Finance Department. The bills shall show or include: (i) the task(s) performed; (ii) the time in quarter hours devoted to the task(s); (iii) the hourly rate or rates of the persons performing the task(s); and (iv) copies of receipts for reimbursable materials/expenses, if any. Expenses not expressly authorized by the Agreement shall not be reimbursed.

Unless otherwise noted in this agreement, payments shall be made within the normal course of City business after presentation of an invoice in a form approved by the City for services performed. Payments shall be made only upon the satisfactory completion of the services as determined by the City.

3. Term of Agreement. The term of this Agreement shall be from July 1, 2022 to June 30, 2023 unless terminated earlier in accordance with the provisions of Article 4 below.

4. Status of Contractor. The parties intend that the Contractor, in performing the services specified herein, shall act as an independent contractor and shall control the work and the manner in which it is performed. Contractor is not to be considered an agent or employee of City and is not entitled to participate in any pension plan, worker’s compensation plan, insurance, bonus, or similar benefits City provides its employees

5. Records Maintenance. The Contractor shall keep and maintain full and complete documentation and accounting records concerning all services performed that are compensable under this Agreement and shall make documents directly related to the program available to the City for inspection at any reasonable time. Otherwise, the Contractor shall maintain such records for a period of four (4) years. This does not pertain to client files, which are property of SOS, and are kept and managed according to the Board of Behavioral Sciences regulations.

SOS Community Counseling: a 501(c)(3) non-profit, charitable organization.

Main Office: 319 South E Street, Santa Rosa, CA 95404 (707) 284-3444. http://.soscounseling.org

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Attachment: HJDP Scope of Work 2022-23 (3658 : Juvenile Diversion Contract) Exhibit A.1
Background Procedure
All persons who have direct contact with targeted youth must pass a background investigation performed by the Healdsburg Police Department before performing any services under this Agreement. Such persons shall follow the background procedure below:

1. Call the Police Technician at 707-431-3103 or 707-431-3377 to make an appointment to schedule your Live Scan.

2. During the scheduled appointment, be prepared to provide personal data for the Live Scan including: Name, AKAs, Address, Place of Birth, Sex, Date of Birth, Social Security #, Height, Weight, Eye Color, Hair Color.

3. During the scheduled appointment, be prepared to be photographed by the Police Department.

SOS Community Counseling: a 501(c)(3) non-profit, charitable organization.

Main Office: 319 South E Street, Santa Rosa, CA 95404 (707) 284-3444. http://.soscounseling.org

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Attachment: HJDP Scope of Work 2022-23 (3658 : Juvenile Diversion Contract) Exhibit A.2
Proposed Budget
SOS FY 2022/23 HJDP
Personnel/Expenses Per Week
Total Hours
Annually (52
weeks)
Hourly
Rate ANNUAL COSTS
Clinical Supervisor/Director
Fees 2 104 $50 $5,200.00
Program Manager
(Associate Therapist) 3 156 $28 $4,368.00
Clinician (Associate
Therapist) 11 572 $25 $14,300.00
*payroll taxes & WC 16% $3,818.88
Total Personnel $27,686.88
Operational Per Week
Total Hours
Annually (52
weeks)
Hourly
Rate ANNUAL COSTS
Program Materials/Printing $275.00
Office Supplies $150.00
Insurance $7.80 $405.60
Travel $500.00
Training $150.00
Total Operational $1,480.60
Indirect Agency 15% $4,375.12
TOTAL BUDGETED $33,542.60
SOS Community Counseling: a 501(c)(3) non-profit, charitable organization.

Main Office: 319 South E Street, Santa Rosa, CA 95404 (707) 284-3444. http://.soscounseling.org

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Attachment: HJDP Scope of Work 2022-23 (3658 : Juvenile Diversion Contract) IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date.

SUPPORT OUR STUDENTS
By: ___________________________
Becky Ennis, Executive Director
Date: __________________________

CITY OF HEALDSBURG
By: __________________________
Authorized Representative
Date: _________________________
SOS Community Counseling: a 501(c)(3) non-profit, charitable organization.

Main Office: 319 South E Street, Santa Rosa, CA 95404 (707) 284-3444. http://.soscounseling.org

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Attachment: HJDP Scope of Work 2022-23 (3658 : Juvenile Diversion Contract)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: June 21, 2022
SUBJECT: Administration of Energy Programs Evaluation, Commercial Energy Efficiency Programs, and Low-Income Application Portal
PREPARED BY: Terra Sampson, Utility Conservation Analyst STRATEGIC INITIATIVE(S):

Pursue Initiatives that Promote Environmental Stewardship RECOMMENDED ACTION(S):

Adopt a Resolution approving an amendment to the Professional Services Agreement with Efficiency Services Group, LLC to provide energy efficiency administrative services and manage a low-income online application portal and extend the agreement's term to June 30, 2024, increase the not to exceed amount to $141,000, and authorizing the City Manager to execute the agreement on the City’s behalf.

COMMUNITY ENGAGEMENT/OUTREACH:

Not applicable.

BACKGROUND:

In 1996, California Assembly Bill 1890 established the Public Benefits Fund to support energy efficiency programs, increase renewable energy generation, and low-income discounts. In accordance with State Law, the City assess a 2.85% surcharge on each electric utility bill and uses these funds to support residential and commercial electric rebate programs and the City’s electric low-income discount program.

The City’s Electric Utility has developed long-term goals to provide cost effective energy efficiency and conservation programs to its customers. In 2021, Healdsburg Electric used public benefits funds and funds received through the State’s Cap & Trade program to incentivize projects that saved 65 MWh. Commercial customers accounted for 47 MWh of saving, while residential programs saved 18 MWh. The low-income direct install program accounted for 10 MWh of the residential savings. The department’s goal in calendar years 2022 and 2023 is 360 MWh incremental savings each year.

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Healdsburg Electric currently works with Efficiency Services Group (ESG) to administer the City’s commercial energy efficiency programs, low-income direct install programs, and a lowincome online application portal. The current professional services agreement was authorized on June 1, 2020 by Resolution No. 61-2020, and ends on June 30, 2022. ESG is familiar with the City and its customer base as well as regional energy efficiency programs.

DISCUSSION/ANALYSIS:

The Electric Utility’s energy efficiency programs are designed to reduce energy use by incentivizing more efficient equipment (lighting, appliances, and equipment), and to provide products that reduce heat gain and loss (insulation and shading). The most popular programs and rebates are commercial lighting retrofits, residential ENERGY STAR appliances, and residential weatherization measures (insulation and windows).

In order to meet the City’s annual energy efficiency goals and support low-income customers, staff recommends approval of an amendment to extend a professional services agreement with Efficiency Services Group (ESG) and update the scope to include these three key services:
• Energy Programs Evaluation
• Commercial Energy Efficiency Administration, Field Services, and Technical Support • Low-Income Online Application Portal
Energy Programs Evaluation
The City currently offers multiple energy efficiency and electrification programs and rebates. To ensure the programs remain impactful and effective, ESG will conduct an evaluation of the current programs, as well as potential program offerings, to establish program specifications and requirements. Newly identified programs will be shared with Council in late 2022. The cost to support this one-time program evaluation and development is $6,000. The energy programs evaluation will help the City meet energy efficiency and carbon emissions reduction goals, and provide continued valuable service to our customers.

Commercial Energy Efficiency Administration, Field Services, and Technical Support Since 2016, ESG has provided energy efficiency administration, field services, and technical support for our commercial projects. Tasks included project verification, savings calculations, and rebate coordination. This technical support also enhances Healdsburg Electric’s customer service. ESG’s energy efficiency program support costs range based on the number of commercial projects. The cost to complete this work is $26,000 per year.

Low-Income Online Application Portal
To support the low-income residents of Healdsburg, the Electric Public Benefits Fund funds a 25% electric utility low-income discount, known as the CARE program. The discount is administered by the City’s Utility Department and participants must qualify for the program by providing verification that their annual income for all persons in their household does not exceed the maximum income guidelines.

To expediate low-income application processing, staff is recommending to continue utilizing ESG’s online application portal. The portal has a simple user-friendly interface in both English

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and Spanish. Once the application is submitted, ESG collects and sends submitted applications to City staff in a timely fashion. While the actual costs for the service depends upon the number of applications submitted, staff estimates the implementation and application processing costs at approximately $6,000 per year.

ENVIRONMENTAL STEWARDSHIP:

In 2021, Healdsburg Electric’s carbon content was 0.18 metric tons of CO2 per megawatt hour.

If the City meets its energy efficiency goal of 360 MWh, this will reduce approximately 64 metric tons of CO2 per year over the life of the energy efficiency measures.

ALTERNATIVES:

As an alternative the City Council could choose not to adopt the recommended resolution and provide further direction to staff.

FISCAL IMPACT:

Staff is recommending the City Council approve an amendment to extend the professional services agreement adding an additional $70,000 and extending the agreement’s term to June 30, 2024. Services provided under the contract will be funded by the Electric Public Benefit Fund and proceeds from the sale of freely allocated Cap & Trade allowances. There is sufficient authority in the upcoming fiscal year 2022-23 and 2023-24 budget to cover the proposed agreement. Included in the additional funding is: $6,000 in one-time costs for the energy programs evaluation, $52,000 for administrative, field services and technical support over two years, and $12,000 over two years to provide an online portal to receive low-income discount applications over the two-year period.

ENVIRONMENTAL ANALYSIS:

This project would not result in a direct or reasonably foreseeable indirect change in the physical environment and is therefore not a “project” for the purposes of Section 21065 California Environmental Quality Act (CEQA). Therefore, no environmental review is required.

ATTACHMENT(S):

Resolution

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CITY OF HEALDSBURG
RESOLUTION NO. – 2022

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HEALDSBURG

APPROVING AN AMENDMENT TO THE PROFESSIONAL SERVICES

AGREEMENT WITH EFFICIENCY SERVICES GROUP, LLC TO PROVIDE

ENERGY EFFICIENCY ADMINISTRATIVE SERVICES AND MANAGE A

LOW-INCOME ONLINE APPLICATION PORTAL AND EXTENDING THE
AGREEMENT’S TERM TO JUNE 30, 2024, INCREASING THE NOT TO EXCEED AMOUNT TO $141,000, AND AUTHORIZING THE CITY
MANAGER TO EXECUTE THE AGREEMENT ON THE CITY’S BEHALF
WHEREAS, in 1996, the State of California established the Public Benefits Fund through AB 1890 to support energy efficiency programs, support renewable energy generation, and lowincome discounts; and WHEREAS, Healdsburg Electric Utility has long-term goals to provide cost effective energy efficiency and conservation programs to its commercial and residential customers; and WHEREAS, Healdsburg Electric Department has an energy efficiency goal to conserve 360 mega-watt hours in calendar year 2022 and 2023; and
WHEREAS, Efficiency Services Group (ESG) currently provides administration, field services, and technical support for the City’s commercial energy efficiency programs, and provides quality customer service; and
WHEREAS, an evaluation of the current energy programs and potential program offerings will help the City meet its annual energy efficiency goals; and WHEREAS, ESG developed and implements a bilingual online low-income discount application portal to expedite processing; and
WHEREAS, the current professional services agreement was authorized on June 1, 2020 by Resolution No. 61-2020, and ends on June 30, 2022.

WHEREAS, the approval of this agreement would not result in a direct or reasonably foreseeable indirect change in the physical environment and is therefore not a “project” for purposes of Section 21065 of the California Environmental Quality Act.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Healdsburg does hereby;

1. Find that the proposed work will not result in a direct or reasonably foreseeable indirect change in the physical environment and therefore does not require further environmental review.

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Attachment: Resolution (3659 : Energy Efficiency Program Services) Resolution No. -2022

2. Approve an amendment to the agreement between the City of Healdsburg and Efficiency Services Group, LLC to provide energy efficiency administration services and manage an online low-income application portal, extend the agreement’s term to June 30, 2024, and increase the not to exceed amount to $141,000.

3. Authorize the City Manager to execute the agreement on the City’s behalf for a term ending on June 30, 2024.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Healdsburg this 21 st
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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Attachment: Resolution (3659 : Energy Efficiency Program Services)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: June 21, 2022
SUBJECT: Resolution Consolidating the General Municipal Election with the Statewide General Election
PREPARED BY: Raina Allan, City Clerk
STRATEGIC INITIATIVE(S):

Effective & Efficient Government
Provide Effective Governance
RECOMMENDED ACTION(S):

Adopt a Resolution (1) calling and giving notice of a general municipal election to be held on November 8, 2022 for the election of three City Council Members; (2) requesting the Board of Supervisors of the County of Sonoma to consolidate a general municipal election to be held on November 8, 2022, with the Statewide General Election pursuant to Section 10403 of the Elections Code; (3) authorizing the City Manager to reimburse the County of Sonoma for the costs to conduct the election; and (4) approving guidelines for conducting said election.

COMMUNITY ENGAGEMENT/OUTREACH:

Not applicable.

BACKGROUND:

Pursuant to City Council Ordinance No. 797, the City of Healdsburg must hold its General Municipal Election the same day as the Statewide General Election. The City of Healdsburg has entered into a professional services agreement with the County of Sonoma for the County Registrar of Voters Office to assist the City in conducting its municipal elections. The cost to the City is its pro-rata share of the expenses incurred by the County on a per voter basis plus direct costs for such items as publication of legal notices, typesetting and mailing of the sample ballot.

DISCUSSION/ANALYSIS:

Attached, for the City Council’s review and action, is a draft resolution: (1) calling for a General Municipal Election to be held November 8, 2022 for the purpose of electing three Council Members; (2) requesting the Board of Supervisors of the County of Sonoma to consolidate the Municipal Election with the Statewide General Election pursuant to Section 10403 of the

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Elections Code; (3) authorizing the City Manager to reimburse the County of Sonoma for the costs to conduct the election; and (4) approving guidelines for conducting said election. The guidelines include the following provisions:

1. No fee for the filing of nomination papers.

2. A limit of 200 words for the Candidate Statement of Qualifications and inclusion of a statement is optional. The cost will be the responsibility of the candidate. The estimated cost is $861. The candidate will be charged for the actual costs incurred in the typesetting and printing of the optional Statement of Qualifications in the Voter Information Pamphlet.

3. No other election campaign material other than the statement of qualifications shall be permitted to be sent in the mailing of sample ballots.

4. Campaign contributions will be limited as set forth in Ordinance Nos. 1009 and 1163.

ENVIRONMENTAL STEWARDSHIP:

Not applicable.

ALTERNATIVES:

Council could opt to direct staff to hold a stand-alone election. Under this option the City would have to perform all the tasks that have been outsourced to the Sonoma County Registrar of Voters, including preparing and printing all the election materials, hiring poll workers, and counting the ballots on election night. The cost of a stand-alone election would be higher than consolidating with the County of Sonoma and staff does not have the expertise to conduct the election.

FISCAL IMPACT:

Funding has been included as part of the proposed fiscal year 2022-23 General Fund budget, and the total cost is estimated at $75,000.

ENVIRONMENTAL ANALYSIS:

Pursuant to Section 15378(b)(5) of the California Environmental Quality Act (“CEQA”) Guidelines, approval of this resolution is an administrative activity of the City and will not result in direct or indirect physical changes in the environment and is therefore not a project for purposes of CEQA.

ATTACHMENT(S):

Resolution

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CITY OF HEALDSBURG
RESOLUTION NO. XX-2022

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HEALDSBURG, CALIFORNIA (1) CALLING AND GIVING NOTICE OF A GENERAL
MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 8, 2022 FOR THE ELECTION OF THREE CITY COUNCIL MEMBERS; (2) REQUESTING THE

BOARD OF SUPERVISORS OF THE COUNTY OF SONOMA TO

CONSOLIDATE THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 8, 2022 WITH THE STATEWIDE GENERAL ELECTION
PURSUANT TO SECTION 10403 OF THE ELECTIONS CODE AND TO

PERMIT THE SONOMA COUNTY DEPARTMENT OF ELECTIONS TO
CONDUCT SAID ELECTION; (3) AUTHORIZING THE CITY MANAGER TO

REIMBURSE THE COUNTY OF SONOMA FOR THE COSTS TO CONDUCT THE ELECTION; AND (4) APPROVING GUIDELINES FOR CONDUCTING

SAID ELECTION
WHEREAS, pursuant to Healdsburg Municipal Code section 2.40.010, the general municipal election of the City shall be held on the same day as the statewide general election; WHEREAS, the City of Healdsburg will hold a General Municipal election on Tuesday, November 8, 2022 for three out of five City of Healdsburg City Council seats for the following terms:

Election of one (1) City Council member for a full term of four years, to expire in 2026; and
Election of one (1) City Council member for a full term of four years, to expire in 2026; and
Election of one (1) City Council member for a half term of two years, to expire in 2024; 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,

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Attachment: Resolution (3676 : City Council Municipal Election) Resolution No. -2022

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 office to be filled is to be consolidated with a statewide election, and the 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 office to be voted upon at the election, as it is to appear on the ballot; and
WHEREAS, the City Council of the City of Healdsburg hereby requests the County Clerk of Sonoma County provide election services that are normally provided to the City of Healdsburg.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg does resolve, declare, determine and order as follows:

Section 1. The City Council hereby calls for and orders an election to be held in the City of Healdsburg, California on Tuesday, November 8, 2022, a General Municipal Election for the purpose of electing the following:
(1) Electing one Councilmember for a full term of four years, to expire in 2026; (2) Electing one Councilmember for a full term of four years, to expire in 2026; (3) Electing one Councilmember for a half term of two years, to expire in 2024.

Section 2. That the ballots to be used at the election shall be in the form and content as required by law.

Section 3. 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 three City Council members 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.

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Attachment: Resolution (3676 : City Council Municipal Election) Resolution No. -2022

Section 4. The City Council hereby directs the City Clerk to (i) publish a notice of elections, including all information required by Elections Code Section 12101; (ii) take necessary actions to ensure the placement of each of the abovementioned vacant City Council seats on the November 8, 2022 ballot; and (iii) coordinate with the County of Sonoma and take all necessary actions to oversee and certify the November 8, 2022 election process as required by the Elections Code.

Section 5. The attached Exhibit A, “Guidelines for Conducting the November 8, 2022 Election,” including polling hours is hereby approved and incorporated herein as set forth in full.

Section 6. The notice of the time and place of holding the election is given and the City Clerk is authorized, instructed, and directed to give further or additional notice of the election, in time, form and manner as required by law.

Section 7. The City Council acknowledges that the consolidated election will be held and conducted in the manner prescribed in Elections Code section 10418.

Section 8. 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 9. That the City Clerk is hereby directed to file a certified copy of this resolution with the General Municipal Election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used.

Section 10. 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 11. This Resolution shall take effect upon its adoption.

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Attachment: Resolution (3676 : City Council Municipal Election) Resolution No. -2022

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF HEALDSBURG 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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Attachment: Resolution (3676 : City Council Municipal Election) Resolution No. -2022

EXHIBIT A

CITY OF HEALDSBURG
POLICY FOR CONDUCTING THE NOVEMBER 8, 2022 ELECTION

1. NOMINATION PAPERS - No fee will be charged for the filing of nomination papers.

2. CANDIDATE'S STATEMENT OF QUALIFICATIONS - The number of words contained in a Candidate's Statement of Qualifications will be limited to 200 words. The candidate will be charged for the costs incurred in the printing of the optional Statement of Qualifications in the Voter Information Pamphlet. The candidate will be required to pay the estimated cost of $861 at the time that the Nomination Papers are filed, which includes the cost of translation of all Candidate’s Statements into Spanish. Sonoma County was designated by the U.S. Department of Justice as a “bilingual county” in late 2021.

After the election, the City will reimburse any excess money collected and/or will bill the candidate for any amount due.

3. ADDITIONAL MATERIAL - No other election campaign material other than the statement of qualifications shall be permitted to be sent in the mailing of sample ballots.

4. CAMPAIGN CONTRIBUTIONS - Campaign contributions will be limited as set forth in Ordinance Nos. 1009 and 1163 and as regulated by the Fair Political Practices Commission.

5. POLLING PLACE - The election polls shall remain open between the hours of 7:00 A.M. and 8:00 P.M.

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Attachment: Resolution (3676 : City Council Municipal Election)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: June 21, 2022
SUBJECT: Airport Management Services 2022
PREPARED BY: Tyler Kettmann, Utility Technician
STRATEGIC INITIATIVE(S):

Infrastructure & Facilities
Maintain and Improve Infrastructure and Facilities
RECOMMENDED ACTION(S):

Adopt a Resolution conditionally awarding a Professional Services Agreement (PSA) for Airport Management Services to Healdsburg Aviation subject to final negotiations, authorizing the City Manager to negotiate the final agreement terms and execute a PSA with a term length up to 5 years on behalf of the City, and authorizing a PSA not-to-exceed amount up to $340,000 with Healdsburg Aviation.

COMMUNITY ENGAGEMENT/OUTREACH:

The awarded contractor would provide general airport maintenance activities, daily interaction, and customer services to those using the Healdsburg Municipal Airport.

BACKGROUND:

On August 6, 2012, the City entered into a Professional Services Agreement for a contractor to provide general airport maintenance activities and customer services as related to airport operations. Since that time, Healdsburg Aviation has been providing these contracted services to the City in conjunction with the operation of an onsite airplane repair business. In 2015 City Council adopted a resolution authorizing the City Manager to execute a third amendment to the 2012 agreement, extending the term for up to five additional years. The 2012 professional services agreement expired on June 30, 2020.

In July of 2020 a new Professional Services Agreement (PSA) was executed for general airport maintenance activities and services related to airport operations, with a term length of one year.

The most recent PSA was amended once in June of 2021 and is set to expire on June 30, 2022.

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DISCUSSION/ANALYSIS:

General airport maintenance and oversight of daily airport activities is necessary for the successful ongoing operation of the airport. On May 24, 2022, the City posted a Request for Proposals (RFP) on the City website soliciting proposals from experience firms for the Airport Management 2022 Routine Maintenance Contract. On June 14, 2022, one proposal was received from Healdsburg Aviation.

Healdsburg Aviation proposed an annual fee of $59,980 to provide the requested services.

Additionally, they proposed a $0.15 per gallon flowage fee on aviation fuel sales at the Healdsburg Airport, and an annual fee of 25% of the long-term automobile parking revenue over the term of the contract.

The aviation fuel sales at the Healdsburg Municipal Airport are estimated between 35,000 and 45,000 gallons. The flowage fee has a potential to add an additional cost of $6,750 per year.

Over the last four years the long-term parking sales have averaged $1,500 per year. A 25% share of the revenue would be an additional cost of $375 per year.

While the fees proposed by Healdsburg Aviation are reasonable, the administrative burden of administering them is substantial. In an effort to streamline the proposed agreement and minimize unnecessary administrative burden, staff would like the ability to further negotiate the terms and conditions of the proposed PSA with Healdsburg Aviation. These negotiations would serve to clean up administrative difficulties with managing the various proposed fees and clarify the contractor’s expected scope of work. Based on the outcome of these further negotiations staff recommends up to a 5-year term for the PSA.

Staff recommends conditionally awarding a PSA to provide airport management services to Healdsburg Aviation subject to final negotiations, authorizing the City Manager to negotiate the final agreement terms and execute a PSA with a term length up to 5 years on behalf of the City, and authorizing a PSA not-to-exceed amount up to $340,000.

ENVIRONMENTAL STEWARDSHIP:

Not Applicable.

ALTERNATIVES:

The City Council may choose not to award the contract to Healdsburg Aviation, whereby under this alternative the Council would need to reject all proposals and provide further direction to staff.

An alternative to using contracted services would be to hire staff to provide similar services.

However, City staff believe it is more efficient and less expensive to use Healdsburg Aviation to perform these activities.

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FISCAL IMPACT:

The proposed annual cost is included in the 2022-23 and 2023-24 Adopted Fiscal Year Budgets within the Airport Fund. Subsequent annual costs shall be budgeted for in forthcoming fiscal years.

ENVIRONMENTAL ANALYSIS:

The Professional Services Agreement with Healdsburg Aviation is not a “project” pursuant to California Environmental Quality Act (CEQA) Guidelines 15378(b)(4)(5) because the Professional Services Agreement does not involve commitment to any specific project that may impact the environment; therefore, no environmental review is required.

ATTACHMENT(S):

Resolution

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CITY OF HEALDSBURG
RESOLUTION NO. _____-2022

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG CONDITIONALLY AWARDING A

PROFESSIONAL SERVICES AGREEMENT FOR AIRPORT

MANAGEMENT SERVICES TO HEALDSBURG AVIATION

SUBJECT TO FINAL NEGOTIATIONS, AUTHORIZING THE

CITY MANAGER TO NEGOTIATE THE FINAL AGREEMENT

TERMS AND EXECUTE A PROFESSIONAL SERVICES
AGREEMENT WITH A TERM LENGTH UP TO 5 YEARS ON
BEHALF OF THE CITY, AND AUTHORIZING A NOT-TOEXCEED AMOUNT UP TO $340,000 WITH HEALDSBURG

AVIATION
WHEREAS, airport management services for the Healdsburg Municipal Airport are provided through contracted services; and
WHEREAS, the awarded contractor shall provide general airport maintenance activities, daily interaction, and customer services to those using the Healdsburg Municipal Airport; and WHEREAS, the current contract for airport management services expires on June 30, 2022; and
WHEREAS, staff posted the Request for Proposals on the City website on May 24, 2022; and
WHEREAS, one proposal was received from Healdsburg Aviation; and WHEREAS, Healdsburg Aviation proposed an annual fee of $59,980 to provide the requested services; and
WHEREAS, Healdsburg Aviation additionally proposed a $0.15 per gallon flowage fee on aviation fuel sales at the Healdsburg Airport, and an annual fee of 25% of the long-term automobile parking revenue over the term of the contract; and
WHEREAS, the estimated annual contract costs for Healdsburg Aviation to provide the services are $67,105; and
WHEREAS, in an effort to streamline the expected scope of services and associated costs of the proposed agreement, staff would like the ability to further negotiate the terms and conditions of the proposed PSA with Healdsburg Aviation; and
WHEREAS, based on the outcome of these proposed further negotiations staff recommends up to a 5-year term for the PSA with Healdsburg Aviation; and

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Attachment: Resolution (3661 : Airport Manager)
Resolution No. ____-2022

WHEREAS, staff recommends conditionally awarding a PSA to provide airport management services to Healdsburg Aviation subject to final negotiations, authorizing the City Manager to negotiate the final agreement terms and execute a PSA with a term length up to 5 years on behalf of the City, and authorizing a PSA not-to-exceed amount up to $340,000 with Healdsburg Aviation; and
WHEREAS, the Professional Services Agreement with Healdsburg Aviation is not a “project” pursuant to California Environmental Quality Act (CEQA) Guidelines 15378(b)(4)(5) because the Professional Services Agreement does not involve commitment to any specific project that may impact the environment; therefore, no environmental review is required.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg hereby:

1. Conditionally awards a Professional Services Agreement to provide airport management services to Healdsburg Aviation subject to final negotiations.

2. Authorizes the City Manager to negotiate the final agreement terms and execute a Professional Services Agreement with a term length up to 5 years on behalf of the City.

3. Authorizes a Professional Services Agreement not-to-exceed amount up to $340,000 with Healdsburg Aviation.

4. Finds that the Professional Services Agreement with Healdsburg Aviation is not a “project” pursuant to California Environmental Quality Act (CEQA) Guidelines 15378(b)(4)(5) because the Professional Services Agreement does not involve commitment to any specific project that may impact the environment; therefore, no environmental review is required.

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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Attachment: Resolution (3661 : Airport Manager)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: June 21, 2022
SUBJECT: Janitorial Services Contract Amendment
PREPARED BY: Tyler Kettmann, Utility Technician
STRATEGIC INITIATIVE(S):

Infrastructure & Facilities
Maintain and Improve Infrastructure and Facilities
RECOMMENDED ACTION(S):

Adopt a Resolution approving an amendment to the janitorial maintenance contract with ABM of Petaluma and authorizing the City Manager to execute the amendment, extending the contract term to December 31, 2022, and increasing the not to exceed amount by $107,073 to $483,731.

BACKGROUND:

The routine janitorial maintenance of City facilities is provided through contracted services. The current agreement for janitorial services was awarded to ABM of Petaluma by City Council in 2018 and became effective on July 1, 2018. The initial agreement required the contractor to provide personnel, materials, and equipment for the provision of regular janitorial services. The frequency of service is dependent upon the level of use of each contracted facility and ranges from twice to three times a week.

Since the agreement was executed, it has been amended three times per the terms and conditions.

As awarded, this agreement can be extended by the City Manager for four one-year terms, if the City and ABM mutually agree to such extension(s), through a duly executed amendment to the agreement. Under no circumstances will the contract be extended beyond June 30, 2024. Council also gave authority for a 20% contingency for the agreement, due to the unknowns related to City Hall construction, the annual CPI increase and any extra cleaning services (carpet cleaning, floor sealing, etc.) that may be requested for the facilities.

DISCUSSION/ANALYSIS:

The original agreement scope of work included City Hall, Corporation Yard, Police Station, Public Works O&M Building, and Wastewater Reclamation Facility. Over the course of the contract additional facilities have been added to the scope at various times including the Senior Center, Healdsburg Municipal Airport, and the Healdsburg Community Pool. Additionally, as a

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result of COVID-19, the vendor has been asked to conduct additional deep cleaning after a COVID exposure occurred in a City facility. Cost for goods and services increases and changes in scope have increased the annual expected cost at existing facilities as well. Below and attached is a summary of the expected annual cost at each facility in 2018 and the expected annual expenses as of June 30, 2022.

Location
Annual Costs Expected 2018
(FY 18-19)
Annual Costs Estimate to close
6/30/2022
City Hall $ 25,407.12 $ 28,463.68
Corp Yard $ 12,934.44 $ 13,924.24
Police Station $ 26,202.60 $ 36,000.52
Public Works O&M $ 12,481.32 $ 14,116.05
Wastewater Reclamation Facility $ 9,168.72 $ 10,966.44
Healdsburg Airport $ 2,400.00
Senior Center $ 13,768.20
Healdsburg Swim Center $ 4,908.98
TOTAL $ 86,194.20 $ 124,548.11
Due to unforeseen needs related to the Covid-19 pandemic and the expanding scope of janitorial services at City facilities, the 20% contingency has been exceeded over the course of the current contract term.

The previously executed amendments to date bring the approved not-to-exceed amount of the contract to $376,658. The total costs incurred by the City to ABM over the course of this contract term amount to $406,966 to date, with an additional $13,231 in costs expected by fiscal year end on June 30, 2022. The costs expected under this contract, should it be extended for another fiscal year into 2022-2023, are expected to average $10,589 per month.

Current costs of services are far exceeding the initial award amount. As a result, instead of extending the contract for a final additional year, staff is proposing extending the current contract for only an additional six months to ensure continuous services while staff rebids the contract with a revised scope of work that meets the current needs of the City. It is estimated that six months of the expected scope of services will cost $63,534. A summary of the incurred and expected costs under the proposed amendment is provided below and attached.

Total costs incurred during contract term $ 406,966
Additional estimated costs to close on 6/30/22 $ 13,231 Additional estimated costs to extend services to 12/31/22 $ 63,534 Current contract not-to-exceed amount $ 376,658
Proposed not-to-exceed amount increase $ 107,073

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Staff is requesting Council authorize the City Manager to execute a fourth amendment to the contract, increasing the not to exceed amount by $107,073 to $483,731, and extending the contract term expiration date to December 31, 2022 to allow time for staff to rebid the contract with the expanded scope of work.

ALTERNATIVES:

The City Council may choose not to approve the amendment as proposed, whereby under this alternative the Council would need to provide further direction to staff.

FISCAL IMPACT:

The budget appropriations to close fiscal year 2021-2022 included the estimated costs associated with this amendment as of June 30, 2022. The costs estimated for fiscal year 2022-2023 under this amendment are accounted for in the Building Maintenance Fund 2022-2023 adopted budget.

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; and therefore, is not a project for purposes of CEQA.

ATTACHMENT(S):

Resolution
Bid Summary 2018

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CITY OF HEALDSBURG
RESOLUTION NO. _____-2022

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG APPROVING AN AMENDMENT TO THE

JANITORIAL MAINTENANCE CONTRACT WITH ABM OF

PETALUMA AND AUTHORIZING THE CITY MANAGER TO

EXECUTE THE AMENDMENT, EXTENDING THE
CONTRACT TERM TO DECEMBER 31, 2022, AND
INCREASING THE NOT TO EXCEED AMOUNT BY $107,073
TO $483,731
WHEREAS, the routine janitorial maintenance of City facilities is provided through contracted services; and
WHEREAS, the contractor provides for all personnel, equipment and materials to provide regular janitorial services to five (5) sites that are owned and maintained by the City of Healdsburg; and
WHEREAS, the current contract for janitorial maintenance services expires on June 30, 2022; and
WHEREAS, the current agreement for janitorial services was awarded to ABM of Petaluma by City Council in 2018 and became effective on July 1, 2018; and WHEREAS, since the agreement was executed, it has been amended three times per the terms and conditions; and
WHEREAS, As awarded, this agreement can be extended by the City Manager for four one-year terms, if the City and ABM mutually agree to such extension(s), through a duly executed amendment to the agreement; and
WHEREAS, as awarded, this agreement allows for up to four (4) one- year extensions, with a not to exceed amount of $530,955 including the 20% contingency and allowable CPI increases; and
WHEREAS, the previously executed amendments to date bring the approved not-toexceed amount of the contract to $376,658; and WHEREAS, the total costs incurred by the City to ABM over the course of this contract term amount to $406,966 to date, with an additional $13,231 in costs expected by fiscal year end on June 30, 2022; and
WHEREAS, it is estimated that six months of the current expected scope of services under the janitorial maintenance contract will cost $63,534; and

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Attachment: Resolution (3662 : Janitorial Maintenance Amendment 2022) Resolution No. ____-2022

WHEREAS, staff is requesting Council approve and authorize the City Manager to execute a fourth amendment to the janitorial maintenance contract with ABM of Petaluma, increasing the not to exceed amount by $107,073 to $483,731, and extending the contract term expiration date to December 31, 2022, to allow time for staff to rebid the contract with the expanded scope of work; and
WHEREAS, the proposed action is an administrative activity of the City that will not result in direct or indirect physical changes to the environment.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg hereby:

1. Approves and authorizes the City Manager to execute a fourth amendment to the janitorial maintenance contract with ABM of Petaluma, increasing the not to exceed amount by $107,073 to $483,731, and extending the contract term expiration date to December 31, 2022; and

2. Finds 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; and is therefore, not a project for purposes of CEQA.

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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Attachment: Resolution (3662 : Janitorial Maintenance Amendment 2022) BASE BID ITEMS:

Total
Monthly Cost
Total Yearly
Cost
Total Monthly
Cost
Total Yearly
Cost
1 City Hall & Council Chambers, 401 Grove Street $1,899.76 $22,797.12 $1,856.25 $22,275.00 2 Corporation Yard & City Garage, 550 Westside Road $990.87 $11,890.44 $1,181.25 $14,175.00 3 Police Station, 238 Center Street $2,053.05 $24,636.60 $2,890.50 $34,686.00 4 Public Works O&M, 550 Westside Rd $974.86 $11,698.32 $987.50 $11,850.00 5 Water Reclamation Facility & Control Bldg, 340 Foreman Lane $711.86 $8,542.32 $887.20 $10,646.40
Total Annual Cost for Items 1-5 $6,630.40 $79,564.80 $7,802.70 $93,632.40 Per hour Per hour
"On-Call" hourly rate to cover "On-Call" performance $29.50 $25.00 ALTERNATES to provide janitorial supplies:

Total
Monthly Cost
Total Yearly
Cost
Total Monthly
Cost
Total Yearly
Cost
1 City Hall & Council Chambers, 401 Grove Street $217.50 $2,610.00 $2,456.00 $29,472.00 2 Corporation Yard & City Garage, 550 Westside Road $87.00 $1,044.00 $1,781.00 $21,372.00 3 Police Station, 238 Center Street $130.50 $1,566.00 $3,490.00 $41,880.00 4 Public Works O&M, 550 Westside Rd $65.25 $783.00 $1,237.80 $14,853.60 5 Water Reclamation Facility & Control Bldg., 340 Foreman Lane $52.20 $626.40 $1,137.20 $13,646.40
Proposal cost for items 1-5 $552.45 $6,629.40 $10,102.00 $121,224.00 $86,194.20
This is the total of the base bid and the Alternate bid UPON REQUEST:

Window Washing (price per square foot) $0.90 $0.80
Carpet Cleaning (price per square foot) $0.22 $0.70
Any additional cleaning (hourly rate per employee) $25.00 $25.00 Stripping and waxing (price per square foot) $0.25 $0.90 FY 2018/2019 Janitorial Maintenance
Request for Proposals
ABM
1353 Redwood Way,
Suite C Petaluma, CA
94952
ML Cleaning Company
940 Lakeville Circle
Petaluma, CA 94954

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Attachment: Bid Summary 2018 (3662 : Janitorial Maintenance Amendment 2022)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: June 21, 2022
SUBJECT: Memorandum of Understanding (“MOU”) between City of Healdsburg and Healdsburg Police Officers Association (“HPOA”)
PREPARED BY: Andrew Sturmfels, Administrative Services Director STRATEGIC INITIATIVE(S):

Provide Effective Governance
Maintain and Enhance Public Health and Safety
RECOMMENDED ACTION(S):

Adopt a Resolution rescinding Resolution No. 27-2021 and approving the MOU between the City of Healdsburg and Healdsburg Police Officers Association for the two-year period ending June 30, 2024.

COMMUNITY ENGAGEMENT/OUTREACH:

Not applicable.

BACKGROUND:

The existing MOU between the City and the Healdsburg Police Officers Association (HPOA) expires on June 30, 2022. The City and HPOA began contract negotiations in March 2022 and reached a tentative agreement on a two-year successor MOU on June 8, 2022. On June 17, 2022, HPOA members are scheduled to vote to ratify the new MOU. Consideration of this item is contingent upon ratification by HPOA.

DISCUSSION/ANALYSIS:

During the negotiating process the City Council provided direction to the City’s negotiator regarding conditions of employment, such as wages, sick leave, health care, retirement benefits and special compensation. Key points for this MOU are as follows:

Term 2 years
Cost of Living Adjustment Year 1 (effective July 1, 2022) 4% Year 2 (effective July 1, 2023) CPI (1% - 4%)

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Holidays Addition of Juneteenth Holiday
Bilingual Incentive Increased monthly bilingual incentive and added new incentive for American Sign Language certification
Compensatory Time Off Added language to allow for compensatory time off in lieu of overtime, consistent with other bargaining units
Shift Differential Increased the shift differential from 3% to 5% for staff working overnight shifts
Vacation Increased the vacation accrual rate of two HPOA employees who accrued vacation at a lower rate than all other members.

In addition to the above, the City negotiated the following additional provisions:
• Within 3 months of MOU adoption, the City will meet and confer with HPOA on the adoption of a policy for shift trades.
• The City will, upon meet and confer with HPOA, reclassify two existing positions (dispatcher and records technician) to supervisory level. o Formal action will be brought to the City Council after the meet and confer with HPOA is completed.
• Make the Kaiser healthcare plan the benchmark medical plan on which the City’s contribution to medical premiums is based.
• Updates to parental leave, bereavement leave, and a variety of technical cleanup provisions to better align with current City policies and state law.

ENVIRONMENTAL STEWARDSHIP:

Not Applicable.

ALTERNATIVES:

The City’s labor negotiator bargained in good faith with HPOA based on Council direction.

Council may choose to not adopt the proposed resolution, however that action is not recommend.

FISCAL IMPACT:

Except for the reclassification of a records technician and a dispatcher to supervisory positions, cost associated with all other changes in this MOU were included in the proposed 2022-23 and 2023-24 budget approved by City Council on June 6th, 2022. While the salary steps for the reclassified positions are still being determined, staff estimate the cost to reclassify the two positions is approximately $15,000-$25,000 per year.

ENVIRONMENTAL ANALYSIS:

Pursuant to Title 14, the California Code of Regulations, Section 15302(c) of the California Environmental Quality Act (“CEQA”) guidelines, the proposed action is an administrative activity of the City that will not result in direct or indirect physical changes to the environment.

ATTACHMENT(S):

Resolution
HPOA MOU 2022 - 2024

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CITY OF HEALDSBURG
RESOLUTION NO. __-2022

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG RESCINDING RESOLUTION NO. 27-2021

AND APPROVING THE MEMORANDUM OF

UNDERSTANINDG BETWEEN THE CITY OF HEALDSBURG

AND THE HEALDSBURG POLICE OFFICERS ASSOCIATION
FOR THE PERIOD ENDING JUNE 30, 2024
WHEREAS, representative of the City of Healdsburg have met and conferred with representatives of the Healdsburg Police Officers Association (“HPOA”); and WHEREAS, the City Council, considered revision as proposed by the City of Healdsburg and HPOA to the Memorandum of Understanding (“MOU”) between the City of Healdsburg and HPOA; and
WHEREAS, agreement regarding the revision of certain working conditions including conditions of employment, such as wages, sick leave, health care, retirement benefits and special compensation has been reached as reflected in the MOU dated July 1, 2022, as shown in Exhibit “A”, incorporated herein by reference and titled “Memorandum of Understanding between the City of Healdsburg and the Healdsburg Police Officers Association 2022-2024”, and on file in the Personnel Office.

WHEREAS, pursuant to Title 14, the California Code of Regulations, Section 15378(b)(4)(5) of the California Environmental Quality Act (“CEQA”) guidelines, the proposed action is an administrative activity of the City that will not result in direct or indirect physical changes to the environment; and therefore, is not a project for purposes of CEQA.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg hereby:
(1) Rescinds Resolution No. 27-2021;
(2) Adopts the above-cited MOU as working conditions and benefits for members of the Healdsburg Police Officers Association for the period July 1, 2022 through June 30, 2024 and may not be amended other than by mutual consent or as otherwise stipulated; and
(3) Finds that this authorization is exempt under CEQA section 15378(b)(5).

PASSED and ADOPTED by the City Council of the City of Healdsburg, this 5th day of October 2020, by the following vote:

AYES: Councilmembers: ( )
NOES: Councilmembers: ( )

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Attachment: Resolution (3671 : MOU Approval - HPOA)
Resolution No. xx-2022

ABSENT: Councilmembers: ( )
ABSTAINING: Councilmembers: ( )
SO ORDERED: ATTEST:
________________________________ ___________________________________ Osvaldo Jimenez, Mayor Raina Allan, City Clerk

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Attachment: Resolution (3671 : MOU Approval - HPOA)
HPOA MOU 2022-2024
Memorandum of Understanding
Between the

CITY OF HEALDSBURG
and the
HEALDSBURG POLICE OFFICERS’ ASSOCIATION
2022-2024

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ii

TABLE OF CONTENTS
I. PREAMBLE............................................................................................................................................................ 1 II. ASSOCIATION SECURITY................................................................................................................................. 1 III. CLASSIFICATIONS AND RATE OF PAY....................................................................................................... 3 IV. SENIORITY .......................................................................................................................................................... 4 V. MANAGEMENT RIGHTS.................................................................................................................................... 5 VI. HOURS OF WORK AND OVERTIME ............................................................................................................. 5 VIII. HOLIDAYS ........................................................................................................................................................ 8 IX. VACATIONS......................................................................................................................................................... 9 X. SICK LEAVE.......................................................................................................................................................11 XI. HEALTH AND WELFARE...............................................................................................................................13 XII. PUBLIC EMPLOYEES RETIREMENT SYSTEM.......................................................................................14 XIII. LONGEVITY PLAN .......................................................................................................................................15 XV. UNIFORM ALLOWANCE ..............................................................................................................................16 XVI. BILINGUAL INCENTIVE..............................................................................................................................16 XVII. OUT OF CLASSIFICATION DIFFERENTIAL PAY................................................................................17 XVIII. LEAVE OF ABSENCE................................................................................................................................. 17 XIX. PARENTAL LEAVE, FMLA, CFRA AND PDL LEAVES .........................................................................18 XX. BEREAVEMENT LEAVE ...............................................................................................................................18 XXI. JURY DUTY.....................................................................................................................................................19 XXII. LAYOFF..........................................................................................................................................................19 XXIII. PROMOTIONS .............................................................................................................................................20 XXIV. STAFF LEVELS............................................................................................................................................20 XXV. CALL BACK...................................................................................................................................................20 XXVI. EMPLOYEE BOOKLET .............................................................................................................................21 XXVII. ASSOCIATION REPRESENTATIVE COMPENSATION ....................................................................21 XXVIII. OTHER RULES, REGULATIONS, ORDINANCES AND PRACTICES............................................21 XXIX. GRIEVANCE PROCEDURES ....................................................................................................................21 XXX. NO STRIKE AND NO LOCKOUT...............................................................................................................25 XXXI. OTHER AGREEMENTS .............................................................................................................................25 XXXII. OUTSIDE EMPLOYMENT.......................................................................................................................26 XXXIII. PUBLIC SAFETY OFFICES PROCEDURAL BILL OF RIGHTS .....................................................26 XXXIV. FULL UNDERSTANDING, ACKNOWLEDGMENT, MODIFICATION ..........................................26

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iii
XXXV. RULES, REGULATIONS AND PROCEDURE MANUAL ....................................................................27 XXXVI. SEVERABILITY........................................................................................................................................27 XXXVII. TERM OF AGREEMENT.......................................................................................................................27 XXXVIII. RATIFICATION .....................................................................................................................................28 APPENDIX “A”.........................................................................................................................................................29

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I. PREAMBLE
Pursuant to the Meyers Milias Brown Act, this Memorandum of Understanding (MOU) has been entered into by the City of Healdsburg (CITY) and the Healdsburg Police Officer’s Association (ASSOCIATION). The purpose of this MOU is the promotion of harmonious relations between the City and the Association, the establishment of equitable procedures for the peaceful resolution of differences, and the establishment of rates of compensation, hours of work, and other matters relating to employment conditions to be observed by the parties.

Recognition: The City hereby recognizes the Association as the sole and exclusive representative for the bargaining unit consisting of the following classifications:

Sworn:

Police Sergeant
Police Officer
Non-Sworn:

Dispatcher I/II
Police Technician
Police Records Officer
Police Officer Recruit
(Amended 6/22)
II. ASSOCIATION SECURITY
The City recognizes, and shall not interfere with, the right of each regular Police Department employee, to become and remain a member of the Association according to the free choice of such employee. It is expressly understood and agreed that employees covered by this MOU shall be equally free to become or not become members of the Association, and there shall be no discrimination on that account or interference, restraint, or coercion by either party signatory hereto or their officers, agents or representatives respecting any employee because of membership or non-membership in the Association.

The Association rights include:

A. The right to represent its members according to law, with regard to wages, hours and working conditions or other matters within the scope of representation.

B. The right to be given reasonable written notice of any change in or adoption of any ordinance, rule, resolution, or regulation directly relating to matters within the scope of representation.

C. The right to a reasonable amount of time during regular working hours to represent its members when meeting and conferring on matters within the scope of representation.

D. The right to have payroll deductions made for payments of organization dues and for approved programs.

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DUES

1. The City shall honor an employee’s check-off authorization for dues and other Association-sponsored programs, which are certified in writing by the Association to the City.

2. Deductions for dues or other Association-sponsored program shall start the first full pay period after the City receives written certification of the authorization. The City shall rely on the Association’s explanations in the certification provided by the Association, submitted by a representative of the Association who has authority to bind the Association must be received by the City from the Association at least thirty (30) calendar days prior to the change becoming effective. The change will be implemented by the City the first full pay period following the notice period.

3. The Association shall not provide the City a copy of the employee’s authorization unless a dispute arises about the existence or terms of the authorization.

4. The Association shall indemnify the City for any claims made regarding such deductions.

Data Pertaining to Certified Deductions
The City shall provide the Association every pay period, on a regular ongoing basis, an electronic file containing the following information for each Bargaining Unit Member:

1. Full Name (first, middle, last, suffix)

2. Employee Number

3. Job Classification

4. Job Type (full-time, part-time, extra help, as needed)

5. Bargaining Unit

6. Scale/Step

7. Base Rate

8. Department

9. Division (subcode of the department)
New Employee Orientation

1. The City shall notify new employees represented by the Association that the Association is the recognized employee organization for the employee’s classification. Within 3 days of hire into the bargaining unit, the Association shall have the opportunity to make a 30- minute presentation to each new employee.

2. The City shall notify the Association of a new employee hire at least ten (10) calendar days in advance, except that a shorter notice may be provided in specific instance where there is an urgent need critical to the City’s operations that was not reasonably foreseeable.

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3. Each new employee shall receive a copy of the Association’s standard introductory packet, copies of which shall be provided by the Association.

4. One Association designee shall be granted 30 minutes City release time plus reasonable release time for necessary travel to present on the Association’s behalf to any new employee.

E. The right to the use of a designated bulletin board by recognized employee organizations in each building or facility where employees represented by the Association are assigned.

F. The use of City facilities for Association activities provided that appropriate advance arrangements are made. The granting of such use may be conditioned on appropriate charges to offset the cost of such use.

G. The City Council or its designated representative making copies of their agenda available.

H. Reasonable access to employee work locations for officers of the Association and their officially designated representatives, for the purpose of processing grievances or contacting members of the organization concerning business within the scope of representation. Access shall be restricted so as not to interfere with the normal operations of the Department or with established safety or security requirements.

I. There shall be no discrimination because of race, creed, color, national origin, sex, or legitimate Association activities against any employee or applicant for employment by the City or by applicable state and federal law; there shall be no discrimination against any handicapped person solely because of such handicap.

J. Except as otherwise expressly provided, it is acknowledged that nothing contained in this MOU is a waiver by the Association of its right to meet and confer on any proposed changes by the City on any matter(s) relating to employment conditions and employeremployee relations including but not limited to, wages, hours, and other terms and conditions of employment relations, during the term of this MOU.

III. CLASSIFICATIONS AND RATE OF PAY
A. The job classifications and rates of pay shall be as set forth in Appendix “A” which is hereby made a part of this MOU.

1. The salary ranges for classifications within this bargaining unit will be a six (6) step salary range.

2. Salary Adjustments:
a) Effective the first full pay period following July 1, 2022, or City Council approval, whichever is later, all classifications covered by this agreement shall receive a 4% cost of living adjustment.

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b) Effective July 1, 2023, all classifications covered by this agreement shall receive a cost of living adjustment equivalent to the percent change in the consumer price index for the period of February of the prior year to February of the current year, as published by the Bureau of Labor Statistics (All item in San Francisco-Oakland-San Jose, CA, all urban consumers, not seasonally adjusted), not to be less than 1% or more than 4 %.

B. It is understood that merit pay increases are based on demonstrated achievement and satisfactory work performance. Merit increases are not automatically granted on anniversary dates, and the employee’s performance evaluation report will be used when considering merit increases. (Amended 6/4/84)
C. FTO Assignment and Training Compensation:

Any Employee assigned and who performs as a training officer within an approved training program including a training manual and/or where Daily Observation Reports are required shall be entitled to receive 5% out-of-classification pay for all hours assigned to train other employees. The term “employee” shall include paid employees, reserve employees, and unpaid volunteer personnel. (Amended 7/1/98)
D. Special Assignment Pay

1. An employee assigned to work as Detective or Corporal shall be paid 5% above his/her base hourly rate of pay.

2. A Police Officer assigned to work with the Police Social Services Team Member on the Community Oriented and Equity (CORE) Policing Team shall be paid 7% above his/her base hourly rate of pay. (Added 6/22)

3. City and HPOA agree that the estimated amount of off duty compensable time attributed to all ordinary aspects of canine care, including but not limited to: handling caring for, feeding grooming and kennel cleaning is fifteen (15) hours per month.

Compensation for this time shall be time and one-half of the employee’s base hourly rate of pay. (Amended 7/1/17)

4. The Traffic (Motorcycle) Officer and K-9 Officer, when a K-9 is obtained, shall be paid 5% above his/her base hourly rate of pay. (Added 7/1/17) IV. SENIORITY
A. Employees covered by this MOU shall attain seniority upon satisfactory completion of a probationary period of eighteen (18) months of continuous, full-time employment by sworn officers and by non-sworn personnel and thereafter shall be deemed regular employees with seniority dating from the effective date of their employment; unless, the probationary period is extended for up to an additional six months by the Chief; or the probationary period is broken by a leave of two weeks or greater, excluding vacation time. Should the

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probationary period be broken in such a manner, it will remain frozen until such time as the employee returns to full-time active service. (Amended 7/1/17) Part-time non-sworn personnel shall attain seniority upon satisfactory completion of a probation period of 18 months of continuous part-time employment. This section does not apply to employees funded by federal, state or other government agencies unless employees are retained, and then past service will count towards seniority. (Amended 7/1/81)
B. Seniority by classification shall prevail. (Amended 7/1/98) C. Seniority shall be considered broken upon: (Amended 7/1/98)

1. Resignation or discharge;

2. On Lay-off or non-work status for more than twelve (12) months; except that an employee on “4850 time”* shall not be considered on non-work status for the purpose of this section. (Amended 7/1/98)

3. Failure to communicate with the City within forty-eight (48) hours upon receipt of notice at the address employee registers with City for receipt of notice to return to work following lay-off.

4. Failure to report for work within 15 days after receipt of notice to return to work from the City.
* Time taken pursuant to California Labor Code Section 4850, Fireman and Law Enforcement Officers “Leave of Absence in Lieu of Temporary Disability Payments”. (Amended 7/1/89) V. MANAGEMENT RIGHTS
The Management of the City and its business and the direction of its working forces are vested exclusively in City, and this includes, but is not limited to, the following: to direct and supervise the work of its employees, to hire, promote, demote, transfer, suspend, and discipline or discharge for just cause; to plan, direct and control operations; to lay off employees because of lack of work or for other legitimate reasons; to introduce new or improved methods or facilities; to maintain discipline and efficiency of employees; to establish and change production standards, determine the qualification of employees; and to regulate quality and quantity of production, provided, however, that all of the foregoing shall be subject to the provisions of this MOU.

VI. HOURS OF WORK AND OVERTIME
A. The City shall pay an amount equal to one and one-half (1-1/2) times the employee’s hourly rate of pay for an employee required to work in excess of a scheduled 8/10/12 hour work shift and /or more than forty (40) hours per work week.

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All overtime must be authorized by the employee’s Supervisor or the Chief of Police in advance or, if the overtime is necessitated by an emergency, as soon thereafter is practicable.

A work week for safety members covered under this agreement, except Detective and Sergeant, shall consist of four (4) consecutive ten (10) hour shifts followed by three (3) consecutive days off. For the classification of Sergeant, the work week will consist of three (3) consecutive twelve (12) hour shifts with an eight (8) hour shift consecutive to the twelve (12) hour shifts every other week or four (4) consecutive ten (10) hour shifts followed by three (3) consecutive days off.

A work week for classification of dispatcher shall consist of either a 4-10 or a 3-12 work schedule. The 4-10 schedule will consist of four (4) consecutive ten (10) hour shifts followed by three (3) consecutive days off. The 3-12 hour schedule will consist of three (3) consecutive twelve (12) hour shifts with an eight (8) hour shift consecutive to the twelve (12) hour shifts every other week.

A work week for the classifications of Police Records Officer and Police Technician shall consist of a 5-8, a 4-10 or a 9-80 work schedule. The 5-8 schedule will consist of five (5) consecutive eight (8) hour shifts followed by two (2) consecutive days off. The 4-10 schedule will consist of four (4) consecutive shifts followed by three (3) consecutive days off. The 9-80 schedule will consist of four (4) consecutive nine (9) hour shifts, with a single eight (8) hour shift every other week, followed by two (2) or three (3) consecutive days off for each respective work week. (Amended 6/22).

For the Special Assignment of Detective, a fourteen day work period shall consist of five (5) consecutive nine (9) hour shifts followed by two (2) consecutive days off then three (3) consecutive nine (9) hours shifts and one (1) eight (8) hour shift, with four of the eight (8) hours worked in each designated seven day work week, followed by three consecutive days off. For the purpose of computing time worked in this section, all paid leave taken during a work week shall be computed as time worked. (Amended 7/1/00) The classifications of Patrol Officer and Sergeant, not to include the assigned duties of Detective shift rotation shall consist of a bid by seniority. Each employee will bid for their shift one year at a time by selecting two (2) six (6) month periods. Officers and Sergeants may bid the same shift twice and then must make another choice of shift for a six (6) month period. Dispatchers shift rotation shall consist of a bid by seniority. Each Dispatcher will bid for their shift one year at a time by selecting three (3) four (4) month periods.

Dispatchers may bid the same shift twice and then must make another choice of shift for a four (4) month period. (Amended 7/1/10)
A shift is defined by the hours worked regardless of days of the week worked. (i.e.: DDDD is a different shift than DDDC by definition due to the difference in hours worked.) This work week shall become subject to change to accommodate shift rotations, vacation schedules and educational relief assistance in that days off may be apportioned within a 28 day period from the date earned without overtime earned.

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B. Scheduling: Every effort will be made to post planned shift vacancies on an overtime signup sheet when doing the work schedule for the next work period and when those vacancies are known at least two weeks prior to the start of that work schedule.

Both the City and HPOA recognize that every effort should be made to fill overtime vacancies on a volunteer basis, however, also recognizing that the work schedule needs to be filled in a manner that has its main concern to be the smooth operation of the Police Department. (Added 7/87)
C. Police Technician Overtime: Authorized work by a Police Technician in excess of: (1) 40 hours per week; or (2) time worked on a holiday. (Amended 7/09) D. Compensatory Time Off: Employees may, at their option, receive pay for such overtime hours or may accumulate compensating time at the rate of time and one-half (1 ½), subject to the following:

1. Employees may accrue unlimited compensation time within the calendar year; however, the amount of compensation time-off shall be limited to 80 hours per calendar year.

2. Comp time shall not be accrued from one year to the next. Employees will be paid for any accumulated but unused comp time balance on the first pay period in January.

3. The use of comp time, actual time off work, must receive prior approval of a supervisor/Chief of Police.

4. Employees working to cover the shift of an employee taking comp time would be required to take pay only. (Added 6/22)
E. Shift Differential: An employee who works a shift in which the employee works one (1) or more hours between 7:00 p.m. and 7:00 a.m. shall receive a shift differential of five percent (5%) of the employee’s base pay for each hour worked between 7:00 p.m. and 7:00 a.m.(Amended 6/22)
F. Shift Trades: It is agreed that a working committee will be formed within the Police Department to develop a Shift Trade Policy with the City within three (3) months from the effective date of this MOU. The Policy shall be subject to the meet and confer process. (Added 6/22)
VII. TRAVEL TIME / LODGING
A. Employees will be paid for travel time to and from approved seminars, training sessions, classes, out of City assignments, and out of county court appearances per provisions of the Fair Standard Labor Act. Regular meal period time is not counted as compensable time. (Amended 7/1/98)

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B. Reimbursement for the full cost of lodging will be made to the participant when the course he/she is attending requires residency at the hotel in which the training or seminar is being held. (Added 7/95)
C. Employees attending a multi-day training (of 40 hours or more) in which the instruction/training is scheduled for 8 hours each day will be placed on a 5-8 schedule, consisting of five (5) consecutive eight (8) hour shifts followed by two (2) consecutive days off. Employees scheduled for training consisting of less than a 40 hour block shall continue their 4-10 or 3-12 schedule and will be required to report to work to complete their full shift if the training/travel time is less than their normal shift. (Added 6/22) VIII. HOLIDAYS
A. Recognized Holidays: It is agreed that all full-time regular employees represented by the Association, except Police Technician and Police Records Officer shall be paid for thirteen (13) holidays per year, in lieu of days off. Police Records Officer and Police Technician shall be entitled to take holidays off with pay. (Amended 5/22) B. Recognized holidays are:

New Year’s Day - January 1st
Martin Luther King Jr. Day - 3rd Monday in January
President’s Day - 3rd Monday in February
Memorial Day - Last Monday in May
Juneteenth - June 19th
Independence Day - July 4th
Labor Day - First Monday in September
Veteran’s Day - November 11th
Thanksgiving Day - Last Thursday in November
Christmas Day - December 25th
Work Holidays - Day after Thanksgiving,
- Christmas Eve Day,
- New Year’s Eve Day;
And any other day proclaimed by the President and/or Governor and recognized by the City of Healdsburg as a public holiday, day of mourning or day of Thanksgiving. Except that when the City elects to give City employees additional holiday days, said additional holidays shall become recognized holidays for the Association on an as granted basis by the city. (Amended 6/22)
C. Rate of Pay: Full-time employees shall be paid for thirteen (13) holidays per year in lieu of days off. Personnel assigned to the following positions which must be staffed each day of the week, are not granted official City Holidays as days off with pay: Police Officer, Police Sergeant, Dispatcher I/II.

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In lieu thereof, they shall receive one day of holiday credit for each official City holiday.

These additional hours shall be paid over twenty-six pay periods in the year and shall be in addition to other regular compensation.

These payments are intended to be reportable to CalPERS as special compensation under 2CCR§ 571(5). Holiday pay will be factored into the regular rate for the purposes of calculating overtime. (Amended 6/22)
Holidays shall be paid based on the number of hours in the employee’s regular shift at the employee’s compounded hourly rate and shall be reported to PERS as part of payroll on behalf of the employees. The compounded hourly rate shall be defined as regular hourly rate plus incentive and specialty pay upon adoption of this agreement. Full time probationary employees shall be paid for holidays on a prorated basis based upon their date of hire and number of holidays earned therefrom.

Commencing with ratification of this agreement, Police Technicians and Police Records Officer will receive compensation when a holiday falls on their regularly scheduled workday. Such compensation will be paid at their straight time rate for the number of hours regularly worked. Police Technicians and Police Records Officers who are scheduled to work on any holiday listed in Section VIII, Holidays, shall receive time and one-half their regular rate of pay for that day, in lieu of holiday pay. (Amended 7/87) IX. VACATIONS
A. All regular, full-time HPOA employees shall become eligible for vacation as it is earned and shall accrue vacation leave at full pay as follows (Amended 6/22).

Length of
continuous service
Hours accrued per
Bi-weekly pay period
Annual
Accrual
0 to 2 years 3.85 100
2+ to 5 years 4.62 120
5+ to 10 years 5.77 150
10+ to 15 years 6.92 180
15+ to 20 years 7.69 200
20+ to 25 years 8.85 230
25+ years 9.62 250
An employee may defer some or all of his/her vacation to the following year. However, in no event shall an employee accumulate vacation days greater than three times his/her annual accrual rate. Employees who have accumulated vacation days equal to three times their annual accrual rate will cease to accrue vacation until the accumulated amount is reduced below the level of three times their annual accrual rate.

If an employee has accumulated more than two times the annual accrual rate, and at least two weeks of vacation has been taken by the employee during the previous twelve months, the employee may request the buy-out of up to two-weeks to reduce the accrued vacation.

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Employees on “4850”* will be paid for vacation accrued over his/her annual accrual rate. (Amended 7/1/17)
*Time taken pursuant to California Labor Code Section 4850, Fireman and Law Enforcement Officers “Leave of Absence in Lieu of Temporary Disability Payments”. (Amended 7/1/98)
B. In no event shall an employee be entitled to a vacation with pay until earned. An employee who suffers lay-off, termination, resignation, or disability leave with accrued or earned vacation time not used shall be entitled to accrued vacation time.

C. For the purpose of this section and all other sections referring to “full pay”, “full pay” shall be defined as the employees’ monthly base salary and shall not refer to overtime or any other additions to the base salary.

D. Vacations will be scheduled throughout the fiscal year. Employees with greater seniority will be given preference over those with less seniority in the selection of a vacation period, provided that requests are written on the sign-up sheet that is posted annually during the month of December. The City may reserve the right to deny a vacation request based on a justified manpower shortage for major events requiring four personnel or more, and the vacation request is for less than forty (40) hours. (Amended 7/1/10) E. On Thanksgiving, Christmas Eve day, Christmas Day, New Year’s Eve day, and New Year’s day, no vacation leave will be granted, unless:

1. The employee wishing to take vacation on the above holidays shall obtain, in writing, an agreement with another employee to work the shift(s) either by shift trade or overtime.

2. The use of the vacation does not impact shift coverage, subject to the approval of the affected shift’s watch commander.

This subjection does not apply to the positions of SRO, Downtown Foot Patrol, Detective, or Administrative Sergeant.

F. COVID-19 FIRST RESPONDERS LEAVE
In recognition of the requirement for Public Safety First Responders to continue providing service to the Community during the Covid-19 Pandemic which places them at a higher level of risk for contracting said illness, effective on ratification of this agreement and retroactive to January 1, 2021, for each full week (Monday through Sunday) the County of Sonoma Health Officer mandates a County wide “shelter in place” order up to June 30, 2021, each member of the bargaining unit shall receive two and one half (2.5) hours of paid time off. Such paid time off shall accrue to said employees, up to a cap of 60 hours, in a “Covid-19” time bank separate from all other paid leave and shall have no cash value.

Employees shall only be able to take such “Covid-19” paid time off when doing so does not incur back-filling their position with overtime. All accrued “Covid-19” paid time off not used by June 30, 2023, shall expire. This provision sunsets June 30, 2023.

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X. SICK LEAVE
A. All regular employees of the City shall accrue one day of sick leave for each month, or major fraction thereof employed. Accumulation of unused sick leave shall be unlimited.

B. Unless otherwise required by law, an employee who is returning to work following an absence from work due to illness may be required to undergo a medical examination by a City designated physician, at the expense of the City, prior to the employee returning to work.

C. Unless otherwise required by law, any employee who calls in and reports his inability to work because of illness or physical disability may be asked to have a health practitioner verify his condition to the City within 24 hours.

D. Medical statements may be required to verify an employee’s absence due to illness or injury and require, at a minimum, the following: (1) dates attended; prognosis; (2) duration of illness or injury; and (5) name, address, phone number and signature of treating physician or medical practitioner. (Amended 2/17)
E. Sick leave shall be allowed for the diagnosis, care, or treatment of an existing health condition of, or preventative care for, an employee or an employee’s family member. For purposes of this Policy, “family member” includes a biological, adopted, or foster child, stepchild, legal ward, a child to whom the employee stands in loco parentis, or a child of a registered domestic partner, regardless of the child’s age or dependency status; a biological, adoptive, or foster sibling, parent, stepparent, or legal guardian of an employee or the employee’s spouse or registered domestic partner, or a person who stood in loco parentis when the Employee was a minor child; a spouse; a State of California registered domestic partner; a grandparent; or a grandchild.

F. Sick leave shall be allowed for employees who are victims of domestic violence, sexual assault, or stalking, taking time off to obtain or attempt to obtain any relief, including, but not limited to, a temporary restraining order, restraining order, or other injunctive relief, to help ensure the health, safety, or welfare of the victim or his or her child G. Sick leave shall be allowed for employees who are victims of domestic violence, sexual assault, or stalking, taking time off to seek medical attention for injuries caused by the domestic violence, sexual assault, or stalking; to obtain services from a domestic violence shelter, program, or rape crisis center as a result of domestic violence, sexual assault, or stalking; to obtain psychological counseling related to an experience of domestic violence, sexual assault, or stalking; and to participate in safety planning and take other actions to increase safety from future domestic violence, sexual assault, or stalking, including temporary or permanent relocation.

H. When an employee uses sick leave for the care of family members, employee shall do so in order to seek medical treatment and attempt to make arrangements for on-going care of the family member or to attend funeral or memorial services. An employee who uses more

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than three (3) days to take care of a family member may be required to present a doctor’s verification of the illness or injury. (Amended 2/17)
I. Election Prior to Retirement with Respect to Unused Sick Leave Credit:

An employee who retires with accumulated and unused sick leave shall have 50% of such unused sick leave credit automatically converted by the employer into a dollar value based on the employee’s salary (Unused Sick Leave Credit Value). The remaining 50% shall be converted to service credit for all Employees.

1. Employee Elections:

The Unused Sick Leave Credit Value will be contributed by the employer to the employee’s Post-Employment Health Reimbursement Arrangement (PHRA), Retirement Account, and/or CalPERS Service Credit based on the most recent written election of the employee that was provided to the employer for this purpose in a calendar year prior to the calendar year of retirement. Such written election (Election) must be made on a form provided by the employer and will have no effect unless made and delivered to the employer in a calendar year prior to the employee’s retirement. All employee elections will be subject to the then applicable Internal Revenue Code or other applicable limits that apply to employer-initiated contributions to such plans. The employee’s Election, once made, will become irrevocable for the succeeding calendar year, but may be changed on a timely basis with respect to future calendar years.

2. Plan Default
If at the time of an employee’s retirement there is no employee election on file, 100% of the Unused Sick Leave Credit will be contributed by the City to CalPERS as an automatic sick leave conversion to service credit pursuant to pension contract with the City.

3. The employee’s Unused Sick Leave Credit Value may not be paid to the employee in cash or in the form of some other taxable benefit.

J. Each employee who uses one day or less sick leave within a 12-month period beginning July 1st of each year, shall receive compensation equal to one shift at the straight time rate. (Amended 6/4/84)
K. An employee who uses sick leave for purposes other than those purposes enumerated by this MOU or engages in private or other public work while on sick leave, without express written approval of the City, may be subject to disciplinary action. (Amended 2/17) L. An employee who is sick and has used all his/her sick leave time shall use his/her vacation leave for the duration of time that the employee is away from work. If an employee uses all his/her sick leave and vacation leave and is still sick, he/she may be granted a leave of absence without pay per Section XI.B. (Added 6/27/85)

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M. Anytime an employee is placed on disability or administrative leave, the employee will automatically be assigned as follows: (Added 7/89, Amended 7/1/98)

1. If employee’s regular shift consists of four (4) ten (10) hour shifts: Monday through Thursday, 0700 to 1700 hours.

2. If employee’s regular shift consists of five (5) eight (8) hour shifts: five (5) consecutive weekday day shifts, 0800 to 1600 hours.

N. Retiree Health Savings Plan. The first full pay period of July of each successive calendar year accumulated sick leave hours in excess of eight hundred (800) hours shall be automatically converted into a cash value at the employee’s hourly rate and shall be contributed to each employee’s PHRA plan (Amended 6/22).

XI. HEALTH AND WELFARE
A. Permanent full-time employees shall be eligible to participate in the City’s group medical plans. The City agrees to offer to meet and confer regarding any change in currently offered medical plans/benefits during the term of this agreement.

The City’s contribution toward health insurance shall be a dollar amount up to 100% of the Kaiser Permanente medical plan by premium category. For those employees that select a more expensive medical plan, the difference between the City’s contribution and the actual premium of the plan selected, shall be paid by the employee on a pre-tax basis. (Amended 6/22)
Payments for medical insurance premiums shall be made on a pre-tax basis. HPOA employees opting out of the City paid medical plan shall receive a monthly stipend of $477 per month. (Amended 7/12)
B. The City will pay the premium for a $100,000 life insurance policy per employee. In addition, the City will pay any increased life insurance premium costs which may be incurred during the term of this MOU in conformance with those rates as set by the City’s insurance carrier. (Amended 7/1/09)
C. All regular, full-time employees and dependents are eligible to participate in the group dental plan where under the City shall pay 100% of the actual premium. The City will pay any increased dental insurance premium costs which may be incurred during the term of this MOU. (Amended 7/1/98)
D. All regular, full-time employees and dependents are eligible to participate in a group vision care plan where under the City shall pay 100% of the monthly premium. Employees enrolled in Kaiser will not be covered by the REMIF vision care plan and an amount equal to the monthly vision care premium will be applied to the base amount for health insurance as stated above in (a). The City will pay any increased vision care premium costs which may be incurred during the term of this MOU. (Amended 7/87)

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E. Long-term Disability Insurance: As soon as administratively feasible following City Council Approval, for employees covered by this agreement, the City will pay the monthly premium for a long-term disability insurance plan. Terms of the insurance shall include, but not be limited to the following: (1) Amount of Insurance: 66-2/3% of monthly salary for a maximum of $10,000.00 per month ; (2) Elimination period: benefits will commence on the 91st day of continuous disability; and (3) Integration of Benefits: Full Family. (Amended 3/21)
F. Any part-time employee who works an average of 35 hours per week per month or greater for 6 consecutive months, shall be entitled to receive full-time benefits for a like period of time. Upon termination of employment, all benefits will cease. (Added 7/87) G. No change in carrier or benefit levels in the vision, health, or dental programs shall be made during the term of the contract without the express approval of the Healdsburg Police Officers’ Association except as specified in Section A hereinabove. (Added 7/1/98) XII. PUBLIC EMPLOYEES RETIREMENT SYSTEM
A. Safety Employees: On behalf of its safety employees, the City has contracted with the Public Employees’ Retirement System (PERS) for retirement benefits. For safety employees in classifications represented by HPOA and hired prior to the effective date of the CalPERS amendment establishing a second tier pension plan, the retirement formula will be 3% at 50. The City shall maintain additional CalPERS benefits as follows: 1) “1959 Survivor Benefits, Level IV” for which employees pay $.93 per bi-weekly pay period; 2) Post Retirement Survivor Allowance; and 3) One Year Final Compensation.

Sworn Classic employees in classifications represented by the HPOA shall contribute a total of 12% to PERS. The employee contribution is made by a pre-tax payroll deduction.

For safety employees hired on or after the effective date of the CalPERS amendment establishing a second tier pension plan, the retirement formula will be 2% at 50. Retirement benefits will be calculated using the average income of the highest three (3) consecutive years.

B. Non-safety Employees: On behalf of its non-sworn employees, the City has contracted with the Public Employees’ Retirement System (PERS) for retirement benefits. Such employees are designated “Local Miscellaneous” members of PERS. For non-safety employees in classifications represented by HPOA and hired prior to the effective date of the CalPERS amendment establishing a second tier pension plan, the retirement formula will be 2.5% at 55. The City shall maintain additional CalPERS benefits as follows: 1) “1959 Survivor Benefits, Level IV” for which employees pay $.93 per bi-weekly pay period; 2) Post Retirement Survivor Allowance; and 3) One Year Final Compensation.

Non-sworn employees in classifications represented by the HPOA pay the 8% employee contribution to PERS. The employee contribution is made by a pre-tax payroll deduction of 8%. (Amended 7/1/12)

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For non-sworn HPOA employees hired on or after the effective date of the CalPERS amendment establishing a second tier pension plan for Local Miscellaneous Members, the retirement formula will be 2% at 60. Retirement benefits will be calculated using the average income of the highest three (3) consecutive years. Employees will pay the 7% employee contribution to CalPERS. The employee contribution is made by a pre-tax payroll deduction of 7%. (Added 7/1/12)
C. PEPRA. The Public Employees’ Pension Reform Act of 2013 (PEPRA) and related Public Employees’ Retirement law amendments in Assembly Bill 340 became law on September 12, 2012 and the provisions were effective January 1, 2013. The City and POA agree to implement all PEPRA provisions, and all applicable amendments thereto. Effective January 1, 2013 all employees defined by PEPRA as “New members” in PERS ‘Safety’ classifications shall pay 50% of the total normal cost for the new Safety PERS pension formula of 2.7%@57, actual employee contribution determined by PERS (on a pre-tax payroll deduction) with final compensation determined by the highest average annual pensionable compensation earned by an employee during a period of at least 36 consecutive months Effective January 1, 2013 all employees defined by PEPRA as “New members” in PERS ‘Miscellaneous’ classifications shall pay 50% of the total normal cost for the new Miscellaneous PERS pension formula of 2% @ 62, actual employee contribution determined by PERS (on a pre-tax payroll deduction), with final compensation determined by the highest average annual pensionable compensation earned by an employee during a period of at least 36 consecutive months. (Amended 7/1/17) XIII. LONGEVITY PLAN
Employees shall be eligible to receive longevity pay as set forth herein upon the satisfactory completion of a minimum of five (5) continual years of service.

The effective date of a longevity pay increase shall be the beginning of the pay period that includes the date of eligibility (Amended 6/22).

Any employee shall receive such pay in addition to his/her basic rate of pay in accordance with the following schedule:

Years of Service Pay Rate
5 years 2%
10 years 3%
15 years 4%
20 years 6%
25 years 8%
XIV. EDUCATION INCENTIVE PAY
City agrees to provide a financial incentive as an extrinsic motivator for employees to augment their formal education on a continuing basis. Such incentive pay will be paid on an hourly rate for

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purposes of payroll and will be provided to all permanent employees who attain the following benchmarks:

A. Employees who have obtained a two-year degree or Intermediate P.O.S.T. Certificate will be compensated $150.00 per month.

B. Employees who have obtained a four-year degree or Advanced P.O.S.T. Certificate will be compensated $450.00 per month. (Amended 7/1/17)
XV. UNIFORM ALLOWANCE
The uniform allowance is paid in the first pay period of July of each year for the purpose of maintenance and replacement of uniforms for the ensuing fiscal year. The uniform allowance shall be paid in the amount of $975 for sworn personnel and $800 for non-sworn personnel except for the positions of Police Records Officer which are not eligible for the allowance. The first uniform allowance will be a prorated amount for that period of time from the employee’s date of employment to the following July 1st. For CalPERS Classic members, uniform allowance is considered special compensation and will be reported to CalPERS each pay period on a pro-rated basis. (Amended 3/21)
A. Any uniform damaged during the course of employment that is deemed by the Chief of Police or his designated subordinate to be repairable will be repaired by the employee, using his/her uniform allowance. If the damaged uniform is deemed irreparable, it will be replaced by the City at no cost to the employee.

B. Equipment issued to members of the unit shall be new or in like-new condition. No items will be issued that are in need of repair. (Added 7/87) XVI. BILINGUAL INCENTIVE
A. An employee who is certified Tier 1, bilingual, in Spanish and/or American Sign Language (ASL) shall receive additional compensation at the rate of $250.00 per calendar month.

Any employee who is certified Tier 2, fluent, shall receive additional compensation at the rate of $300.00 per calendar month. For purposes of payroll, bilingual incentive will be paid at an hourly rate.

Tier 1, Spanish bilingual is defined as being able to understand and speak the Spanish language. Tier 2, Spanish fluent is defined as being able to understand, speak, read, and write in the Spanish language. Tier 1 ASL bilingual is defined as being able to understand and sign with proficiency. Tier 2 ASL fluent is defined as being able to understand, sign and fully converse. Qualification for this extra compensation must be proved by certification. The City may waive this certification requirement if it is otherwise satisfied as to the bilingual qualifications. (Amended 6/22)
B. Employees receiving bilingual incentive pay may be tested for re-certification on an annual basis provided, however, that no employee shall be eligible for re-certification while on

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disability leave, sick leave or limited duty status and payment of such bilingual incentive compensation will not be resumed until the employee returns to full-time duty. (Amended 7/1/81)
C. Employees receiving the bilingual pay incentive are required to assist the city with translation services as requested. If an employee is called during off-duty time with a request to translate, the employee shall be entitled to a minimum of two (2) hours of overtime compensation. (Added 6/22)
XVII. OUT OF CLASSIFICATION DIFFERENTIAL PAY
A. Upon specific written assignment by the chief of Police or a designee, an employee may be assigned to perform the duties in a job classification where the rate of pay is greater than the employee’s regular rate of pay (e.g., supervisor, Detective, etc.). An employee so assigned for more than a total combined time of four (4) shifts shall receive an additional five percent (5%) of salary at that employee’s basic hourly rate for all hours worked in such assignment. (Amended 712)
B. Any temporary assignment as provided for in this section shall not cause a loss of benefits to such employee.

XVIII. LEAVE OF ABSENCE
A. The City may grant an employee a leave of absence without pay for compelling personal reasons, as determined by the City Manager, for a period of six (6) months in duration or for urgent and substantial reasons, as also determined by the City Manager, up to a maximum of one year, providing that satisfactory arrangements can be made to perform the employee’s duties without undue interference with the normal work routine. A leave of absence without pay must be requested by employee and approved by the City Manager, and shall be in writing specifying the date of return. Any employee failing to return to work upon expiration of an approved leave of absence, shall be deemed to have resigned his/her employment with the City. A leave of absence without pay is not an employment right and the City may deny such request if such leave interferes with the normal working schedule of the department. Said employee will not accrue sick leave or vacation benefits while on leave status and City will cease paying medical, dental, and visual insurance premiums unless required by law. (Amended 7/1/2017)
B. An employee may be placed on leave of absence without pay at the City’s discretion when an employee is absent from work due to illness or other reason and has exhausted sick leave and vacation benefits. Said employee will not accrue sick leave or vacation benefits while on leave status; will continue to pay insurance premiums if required by law. If the reason for the employee’s absence would qualify the employee for FMLA leave, and the employee has FMLA leave available, the employee’s FMLA leave shall run concurrently with any leave of absence. Unpaid leave will only be provided if the requesting employee has exhausted all of his or her paid leave. (Amended 7/1/17)

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C. Special leave may be granted by the Chief of Police to personnel of the Healdsburg Police Department in the event that such personnel have been involved in a homicide, serious act, or other action that would require such personnel to be absent from duty pending an investigation by the Police Department or an outside agency. This special leave shall not cause any loss of compensation or any other benefits.

D. Employees unable to work due to disaster or emergency conditions may be granted special leave without pay by the Chief of Police. It is anticipated that this special leave will be unique and infrequent but necessary to cover the special conditions that do occur from time to time.

E. The probationary period of an employee who is granted a leave of absence, maternity or any other disability leave, shall be extended by the duration of the leave in excess of thirty (30) calendar days. (Added 7/91, Amended 7/1/17)
XIX. PARENTAL LEAVE, FMLA, CFRA and PDL LEAVES
Leaves covered by the Family Medical Leave Act (FMLA), the California Family Rights Act (CFRA), and Pregnancy Disability Leaves (PDL), will be granted in accordance with federal and state laws unless otherwise specified herein. Such leaves may be covered by a City policy intended to provide the benefits required by the applicable laws and acts, but in no case shall employees covered under this agreement suffer a loss of such benefits should such a policy become invalidated by the City.

The employee shall be entitled to utilize sick leave benefits on the same basis as other employees who are temporarily disabled due to a non-industrial illness or injury. When the employee is on a paid leave status, service credits shall continue to accrue, and the City shall continue payments toward group insurance and retirement coverage.

Upon expiration of the approved leave, the employee shall be reinstated to their former position, or to a comparable one if the former position is abolished during the period of leave and the employee would otherwise not have been laid off. Prior to the employee’s being reinstated, the department head may require a statement from the attending physician that the employee is physically capable of resuming the regular duties of their position.

An employee may, at the conclusion of their leave, request a leave of absence as provided in this Memorandum of Understanding.

Child Care Leave. A regular employee who has exhausted their leave as set forth above or who has adopted a child, may apply for a leave of absence. In such case, it will be presumed that the employee has presented an urgent and substantial personal reason for such leave to be granted. (Amended 6/22)
XX. BEREAVEMENT LEAVE

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A. In the event of a death occurring to a member of an employee’s immediate family, the Chief of Police may grant a leave of absence with pay to the employee to make necessary arrangements and/or attend the funeral for a period up to three (3) work days. Two additional days of funeral leave may be granted, upon approval of the Chief. Every effort will be made to schedule sick leave off for step-family and relative bereavement. (Amended 7/1/17)
B. Immediate family is defined as father, stepfather, father-in-law, mother, stepmother, mother-in-law, brother, stepbrother, brother-in-law, sister, stepsister, sister-in-law, spouse, registered domestic partner, child, stepchild, daughter-in-law, son-in-law, grandparents, great-grandparents or grandchild. (Amended 3/21, 6/22)
C. The City may require substantiating evidence supporting an employee’s request for such leave with pay.

XXI. JURY DUTY
A regular or probationary employee ordered to jury duty during the employee’s regularly scheduled working hours shall be entitled to leave with pay during the actual jury service; provided, however, that the employee reimburse the City any amount paid to him/her by the Court with the exception of travel and meal expenses. Employees shall inform the Chief’s office in writing of impending jury duty within 48 hours of receiving said notification. (Amended 7/87) XXII. LAYOFF
A. When it becomes necessary for the City to lay off regular employees, the City will give employees involved as much notice as possible, but in no event will such employees be given less than two (2) week notice of lay off. When probationary employees are to be laid off, no notice of lay off is required. Lay off in all cases, due to lack of work, will be determined by an employee’s seniority. An employee whose job is being eliminated may elect to displace an employee in a lower classification, if as determined by the Chief of Police, he/she is qualified to perform the duties of the lower classification, has served in that position at this or another agency, possesses all of the required certifications and training for that position and his/her seniority is greater than that of the employee in the lower classification. (Amended 7/1/17)
B. Temporary and provisional employees in the job classifications involved in a lay off shall be separated prior to probationary or permanent employees.

C. An employee laid off has the right to reinstatement preference in reverse order of the layoff, according to job classification, for a period of eighteen (18) months after the layoff date, provided he or she is physically and otherwise qualified as determined by the Chief of Police, and keeps the City informed of his current mailing address at all times. The City may require said individual to achieve a passing grade on the following pre-employment tests: psychological, medical, and polygraph tests which may be in use at the time. An

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employee so reinstated shall retain seniority and all sick leave rights accrued to the lay-off date. (Amended 7/1/17)
XXIII. PROMOTIONS
A. The City and the Association agree that it is in the best interest of the City and the employees within the Department to provide a career ladder within the Department. It is also a policy of the City that when promotional opportunities arise, full consideration will be given to eligible employees from within the Department.

XXIV. STAFF LEVELS
A. It is agreed that the staffing level of the police department is based on the quantity and quality of service to be delivered to the Healdsburg community, as determined by the City Council. In making such determination, employee safety and workload will be considered.

B. The City and the Association agree that it is in their mutual best interest that:

1. At least two uniformed officers be on duty at all times, excluding the Chief of Police; and

2. Whenever possible, at least two non-supervisory officers will be dispatched to all reports of felonies in progress, fights, disorderly or drunk persons, suspicious persons and robbery and burglary alarms. Supervisory is defined as anyone acting in the capacity of a watch commander. The City agrees to exert at all times a good faith effort to provide this staffing level in addition to non-sworn support personnel and supervisors necessary to provide full service to the community. (Amended 6/27/85) XXV. CALL BACK
A. Employees who are subpoenaed to give testimony in court about events arising out of their employment, shall be compensated at the rate of time and one-half the employee’s regular rate of pay with the minimum compensation of three (3) hours, except that there shall be no minimum compensation guarantee in the event that such testimony is scheduled contiguous to the employee’s regular duty shift. Shift assignments shall not be exercised in such a manner as to avoid payment provided in this section, unless mutually agreed upon by the employee and department. (Amended 6/4/84)
Employees will be compensated at the rate of time and one-half of the employee’s regular rate of pay, as above, with a two (2) hour minimum for court appearances during off-duty hours which are canceled after 5:00 p.m. on the previous court date. (Added 7/1/98) B. Employees who are called to work overtime on their day off or other off-duty hours shall be compensated for a minimum of two (2) hours except as otherwise provided in this agreement. Overtime shall commence at the time an employee reaches the place where

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he/she is directed to report and shall continue until he/she is released or the work is complete, whichever is earlier. (Amended 6/4/84)
XXVI. EMPLOYEE BOOKLET
The City agrees to provide each member of this bargaining unit a copy of this MOU between the Healdsburg Police Department and the Healdsburg Police Officers Association, and rules and regulations, and/or policies of the Police Department. Employees are required to be familiar with the content of said documents. (Amended 7/1/17)
XXVII. ASSOCIATION REPRESENTATIVE COMPENSATION
The City agrees that employee representatives of the Association are entitled to reasonable time off without loss of compensation or other benefits when meeting and conferring with management representatives on matters of employer/employee relations, or when engaged in activities that the parties mutually agree are in the shared interest of a harmonious relations on matters within the scope of representation.

XXVIII. OTHER RULES, REGULATIONS, ORDINANCES AND PRACTICES It is agreed between the parties to this MOU that any changes in Personnel Rules or Regulations governing the administration and personnel management of employees of the Police Department or any Healdsburg Police Department Rules and Regulations insofar asthe subject matter is subject to the meet and confer process under law, will be the subject of a meet and confer process between the City and the Association.

XXIX. GRIEVANCE PROCEDURES
The purpose of this Article is to:

1. Promote improved employer-employee relations by establishing grievance procedures.

2. Afford employees individually or through qualified employee organizations a systematic means of resolving grievances.

3. Provide that every effort shall be made to resolve grievances as near as possible to the point of origin.

4. Provide the opportunity for grievances to be settled in an informal manner.

Definition - A grievance is any dispute concerning the interpretation or application of this agreement or of rules or regulations governing personnel practices or working conditions, or of the practical consequences of a City rights decision on wages, hours, and other terms and conditions of employment.

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This grievance procedure shall not apply to appeals of disciplinary decisions, or any other decisions for which an appeal procedure is provided in another City document.

A. STEPS AND PROCEDURES:

Step 1: An employee may present a grievance personally or through his/her Association representative to the immediate supervisor and the parties shall endeavor to settle the grievance at this level.

Step 2: If the grievance is not settled at Step 1, the grievance may be presented to the Chief of Police within seven (7) days from the date the incident giving rise to the grievance is alleged to have first occurred. If requested, a written response from the Chief of Police will be provided within seven (7) days.

Step 3: If the grievance is not settled at Step 2, the grievance may be reduced to writing, setting forth the grievance and the correction asked for, and sent to the City Manager within five (5) working days after the Chief of Police has rendered his decision. The City Manager shall answer the grievance in writing within ten (10) work days after the receipt of such grievance.

Step 4: If the grievance is not settled at Step 3, it shall be submitted to arbitration. The decision of the arbitration(s) panel shall not be binding on either party; each party recognizes the right of the other to seek redress through the Courts.
(a) The expenses incident to arbitration shall be borne one-half by the City and one-half by the employee, or if employee is represented by Association, one-half by the Association, except either party that rejects the decision shall be responsible for the total cost of the arbitrator. Expense shall be shared equally if both parties reject the decision of the Arbitrator.
(b) The parties agree that matters properly to be referred to arbitration shall first be reduced to writing, citing the specific provision of this MOU or alleged violation of other City, State or Federal Ordinances, Resolutions, Rules, Regulations or Laws. To be timely and insure prompt settlement of disputes, the Association shall serve written demand for arbitration upon the City within but no exceeding thirty (30) calendar days of the decision of the City Manager.
(c) It is agreed that any grievance not submitted in accordance with the provision of this Article be deemed untimely and shall be dismissed. The term limits herein provided may be extended only upon mutual agreement in writing.

B. ARBITRATION PROCEDURE
It is the purpose of this section to provide a fair and orderly process by which matters not resolved in section A, Steps 1-3 of this article are to be decided.

1. Composition of Arbitration Panel

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The Panel shall consist of three (3) members and shall be created in the following manner:
one (1) member selected by the employer (City), one (1) member selected by the employee or his/her employee organization, and the third member, who shall serve as Chairperson, selected by the other two members. In the event agreement cannot be reached on the selection of the third member (Chairperson), the other two members shall, within five (5) working days, formally and jointly request a list of five (5) neutrals from the State Conciliation Service.

Within five (5) days after receiving the list of neutrals, the parties shall select a name from the list and shall notify the State Conciliation Service of the name of the selected Chairperson. If the parties are unable to agree on a name, the Chairperson shall be selected by alternately striking a name from the list with the first option to strike determined by lot.

2. Powers and Duties of the Panel
Unless extended by mutual agreement of the parties, or by direction of the Chairperson, the Panel shall commence its hearing within twenty (20) work days after the selection of the Chairperson. The Panel shall be fully authorized and empowered to grant or refuse extensions of time, to set such proceeding for hearing, and to perform any and all other acts in connection with such proceedings that may be authorized by law or this procedure.

The Panel may compel by subpoena witnesses to appear at the hearings as provided in Section 25170 of the Government Code.

The matters which the Panel shall consider, weigh and be guided by shall include, but not limited by, the following:
i. The State and Federal laws applicable to the parties. ii. The stipulations of the parties.
iii. Such other facts and information normally or traditionally taken into consideration in making findings and decisions.

3. Evidence Submitted in Hearing
Oral evidence shall be taken only on oath or affirmation. Each party shall have the right to call and examine witnesses; to introduce exhibits; to cross-examine opposing witnesses on any matter relevant to the issue, even though the matter was not covered in the direct examination; to impeach any witnesses; and to rebut evidence. The hearing need not be conducted according to technical rules of evidence. Any relevant evidence may be admitted if it is the sort of evidence upon which reasonable persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rule which might make improper the admission of such evidence over objections in civil actions. Irrelevant and unduly repetitious evidence may be excluded.

4. Right of Representation

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Either party may be represented by counsel or other representation at the hearing.

5. Reporting and Records
The proceedings may be recorded. Recordings and records shall be maintained for a period of two (2) years after the final decision is rendered by the Panel. Either party may request a stenographic reporter to record the proceedings.

6. Hearings
All hearings shall be closed to the public.

7. Findings, Decisions and Orders
Following the hearing, the Panel shall consider the evidence presented and make written findings of fact within twenty (20) days after the hearing which may also include a decision stating the appropriate action to be taken, if any. A copy of the decision shall be sent to each party.

The Panel’s decision shall be reviewed by the City Manager and/or City Council as well as the employee/Association, acknowledged in writing, with reasons stated for its acceptance or rejection in whole or in part, by both parties, within ten (10) days after receiving the decision.

Any court action brought by either party must be brought within (90) days of the final decision of the City Counsel.

C. EMPLOYEE ORGANIZATION REPRESENTATION

1. All employees shall have the right to employee organization representation at each step of the grievance procedure and shall not be required to be present at any stage of the process.

2. Any individual employee or group of employees shall have the right at any time to present grievances to their employer and to have such grievances adjusted, without the intervention of the employee organization as long as the adjustment is not inconsistent with the terms of any then effective MOU of Understanding, and the employee organization has been given the opportunity to be present and make statements at such adjustment. Copies of employer decisions given at any step of the grievance procedure whatsoever shall be promptly delivered to the employee organization.

D. NO REPRISALS
No reprisals whatsoever shall be invoked against any employee for processing a grievance for participating in any way in the grievance procedure.

E. RELEASE TIME

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A reasonable amount of time shall be provided for the investigation and processing of grievances, including the grievant/employee organization representatives.

F. TRANSMITTAL PROCESS
All reference in this procedure to transmittal of a written grievance or response thereto, by either party shall be transmitted by personal delivery of by U.S. Mail service. If the U.S. Mail is used, time limits referred to shall no include time of mail processing by the Postal Department. The postmark stamp shall be considered the time of reply by either party using the process.

XXX. NO STRIKE AND NO LOCKOUT
A. During the period of this MOU, there shall be no strikes, work stoppages, slow down, picketing or similar disruptions in the operations of the City by either the Association or employees. Picketing as used above shall not include informational picketing.

B. No officer or representative of the Association shall authorize, investigate, aid or condone any strikes against the City and no employee shall participate in any such strikes against the City while this MOU remains in effect.

C. There shall be no lockouts during the term of this MOU by the City.

D. The City shall be under no obligation to bargain with the Association concerning employees who go on strike or concerning the subject of any strike so long as the strike continues during the term of this MOU.

E. The City may discipline or discharge any employee who engages in strike activities against the City during the term of this MOU, and such action shall not be subject to review upon any ground other than whether or not the employee participated in such strike activities.

F. The foregoing provision shall not constitute a basis upon which either party signatory hereto may demand arbitration of any subject or matter not covered by the expressed terms of this MOU.

G. The Association understands that it may be liable for damages, including reasonable attorney’s fees and court costs, in the event of any unauthorized strike, work stoppage, slow-down, picketing or similar interference with the operations of the City which have been authorized by the Association and which occur during the life of this MOU.

H. Employees shall not be entitled to any benefits or wages whatsoever while they are engaged in a strike, work stoppage or other interruption of work.

XXXI. OTHER AGREEMENTS
A. The parties signatory hereto acknowledge that during the meet and confer sessions which resulted in this MOU each had the right and opportunity to make demands and proposals

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with respect to any subject or matter not removed by law from the area of meeting and conferring, and the understandings and agreements arrived at by the parties, after the exercise of said rights and opportunities, are set forth in this MOU.

B. This MOU does not by implication repeal or modify existing rules, regulations, resolutions and ordinances.

C. The City will include the HPOA bargaining unit in any future classification and compensation studies. Two (2) representatives of the bargaining unit shall be on the committee guiding any future study (Amended 6/22).

XXXII. OUTSIDE EMPLOYMENT
No employee shall follow any other calling or occupation or engage in any business that will tend to impair the efficiency of such employee or be incompatible with his/her position with the City or that would affect the relationship between the City, its residents, and the business community.

Before any employee engages in any outside occupation or business, he/she shall obtain the approval of the Chief of Police. If the Chief of Police finds that any particular employment violates this policy, he/she shall withhold his approval of such outside employment and advise the employee in writing enumerating the reasons. The decision of the Chief of Police is subject to review by the City Manager at the request of the employee. In the event that the City Manager concurs, he/she shall also advise the employee in writing enumerating the reasons. (Amended 6/22) XXXIII. PUBLIC SAFETY OFFICES PROCEDURAL BILL OF RIGHTS The Healdsburg Police Officers Association has called to the attention of the City of Healdsburg the passage of Chapter 465 of the Statutes of 1976, an act of the California State Legislature known as the Public Safety Officers Procedural Bill of Rights Act. The City is aware that such act has been passed.

XXXIV. FULL UNDERSTANDING, ACKNOWLEDGMENT, MODIFICATION A. This agreement sets forth the full and entire understanding of the parties regarding the matters set forth herein. All other prior or existing understanding or agreements by the parties, whether formal or informal, regarding any such matters are hereby superseded or terminated in their entirety.

B. It is agreed and understood that the parties have met and conferred in accordance with the obligations under state law and the City’s employee relations policy in reaching this agreement and they acknowledge that neither party shall be obligated to negotiate over any provision of this agreement during its term.

C. It is further agreed and understood that the City shall not implement any changes to any matter within the scope of representation as defined by the Meyers-Milias-Brown Act, as amended, that are not covered by this agreement, without first having provided the

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Association with written notice of the proposed policy or course of action and offer to meet and confer over the proposal in accordance with State law and City policy. (Added 7/91) XXXV. RULES, REGULATIONS AND PROCEDURE MANUAL
A. The Healdsburg Police Officers Association hereby recognizes the existence of an understands the provisions contained in the Healdsburg Police Department Rules and Regulations Manual and maintains that it is the members’ of the Healdsburg Police Officers Association responsibility to thoroughly read and obey all orders and policies contained therein. It is also the understanding of the members of the Healdsburg Police Officers Association that any member violating any rule, regulation, procedure, special and/or general order can be disciplined in accordance with the provisions of the Healdsburg Police Department’s Rules and Regulations Manual as stated in Chapter 6 of said manual.

B. Furthermore, it is acknowledged that the referred to Police Department Rules and Regulations were not a subject of the meet and confer process that produced this agreement, but are a product of the office of the Chief of Police. Any proposed changes shall be shared in writing with the HPOA prior to implementation and are subject to meet and confer upon request of the HPOA. (Amended 6/22)
C. It is agreed that every employee represented by the Association will be issued a copy of the manual referred to in this section and that a copy will be provided for the Association.

D. It is acknowledged that members of the Association shall comply with the City of Healdsburg Personnel Rules and Regulations. It is further acknowledged that this MOU shall serve as the guiding document in the event there are inconsistencies between the documents.

XXXVI. SEVERABILITY
If any article or section of this MOU should be found invalid, unlawful or unenforceable by reason of any existing or subsequent enacted legislation or by judicial authority, all other articles and sections of this MOU shall remain in full force and effect for the duration of this MOU. In the event of invalidation of any article or section, the City and the Association agree to meet within 30 days for the purpose of conferring on the said article or section.

XXXVII. TERM OF AGREEMENT
A. This agreement, when signed by both parties, shall become effective July 1, 2022 except where specifically provided otherwise therein, and shall terminate at twelve (12) Midnight on June 30, 2024.

B. It is the intent of the parties to commence negotiations no later than 120 calendar days prior to the expiration date of the current MOU. Once either party has made a request to commence negotiations the parties agree to meet within 20 calendar days of such request.

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XXXVIII. RATIFICATION
The designated representatives of the City of Healdsburg and the designated representatives of the Healdsburg Police Officers Association, having met and conferred in good faith regarding wages, hours, and other terms and conditions of employment submit the following Amendments to the MOU to the City Council of the City of Healdsburg for its determination with the recommendation that it be approved.

Signed this____ day of__________________, 2022.

The Designated Representative
of the City of Healdsburg
The Designated Representative of the
Healdsburg Police Officers Association
___________________________________
Jeff Kay, City Manager
___________________________________
John Noble, Labor Relations Representative
___________________________________
Frank Patane, Police Sergeant
____________________________________
Nick Castaneda, Police Sergeant
_____________________________________
Teresa Gruner, Police Dispatcher II
Approved by City Council Resolution No. ____

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APPENDIX “A”

SCHEDULE OF SALARY RANGES

EFFECTIVE UPON RATIFICATION OF THIS MOU
A step B step C step D step E step F step
Police Dispatcher I $5,228.40 $5,495.69 $5,776.06 $6,069.50 $6,379.58 $6,698.55 Police Dispatcher II $5,495.69 $5,776.06 $6,069.49 $6,379.57 $6,699.14 $7,034.10 Police Officer $7,152.33 $7,509.93 $7,885.45 $8,279.71 $8,693.70 $9,128.38 Police Officer Recruit $6,794.71 $7,134.44 $7,491.17 $7,865.72 $8,259.02 $8,671.96 Police Records Technician $5,196.72 $5,462.00 $5,739.50 $6,032.89 $6,340.94 $6,658.00 Police Sergeant $8,952.01 $9,399.59 $9,869.59 $10,363.06 $10,881.21 $11,425.27 Police Technician $4,567.15 $4,798.20 $5,043.91 $5,300.63 $5,570.80 $5,849.32

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CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: June 21, 2022
SUBJECT: Vacate the Public Trail Easement as shown on the First Final Map for the Saggio Hills Project and Authorizing the City Manager to execute the Amended Northwest Trail Easements and the Certificates of Acceptance for the Saggio Hills Project
PREPARED BY: Curt Bates, Principal Engineer
STRATEGIC INITIATIVE(S):

Maintain and Improve Infrastructure and Facilities
RECOMMENDED ACTION(S):

By motion:

1. Adopt a Resolution summarily vacating the public trail easement as shown on the first final map for the Saggio Hills Project pursuant to Chapter 4 of part 3 of Division 9 of the California Streets and Highways Code, which public trail easement will be superseded by relocation; and

2. Adopt a Resolution approving and authorizing the City Manager to execute the amended northwest trail easement and the certificate of acceptance by and between the City of Healdsburg and Oaks and Olives, LLC as well as the amended northwest trail easement and the certificate of acceptance by and between the City of Healdsburg and Sonoma Luxury Resort, LLC for the Saggio Hills Project.

COMMUNITY ENGAGEMENT/OUTREACH:

On September 30, 2020, the City Council received a report regarding potential amendments to the Development Agreement (“Saggio DA”) with Sonoma Luxury Resort LLC ("Developer") for the Saggio Hills Project (now known as "Montage Healdsburg").

On December 15, 2020, the Planning Commission conducted a public hearing on the proposed Third Amendment to the Development Agreement ("Third Amendment") and adopted Resolution No. 2020-17 recommending that the Healdsburg City Council approve the proposed Third Amendment.

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On January 19, 2021, the City Council conducted a public hearing on the Third Amendment and introduced an ordinance amending the Development Agreement by and between Sonoma Luxury Resort LLC and the City of Healdsburg for the Saggio Hills Project. The ordinance was adopted on February 1, 2021. The Third Amendment, in part, addresses the relocation of the Northwest Trail Easement.

BACKGROUND:

The Saggio DA requires the Developer to construct a public trail for pedestrian use (Northwest Trail) through the vineyards and oak woodland on the north side of Passalacqua Drive to scenic viewpoints at the top of the ridge. The trail is to be conveyed to the City and maintained by the City for public use.

Through the trail design process, the Developer determined that the trail easement that was dedicated on the First Final Map does not allow for a trail alignment that adequately addresses accessibility and drainage constraints posed by the site topography.

The Third Amendment authorized a revised trail alignment and established a process for modifying the trail easement. The new alignment generally follows the easement defined in the First Final Map but is modified to include switchbacks and realigned sections to enhance accessibility, address the need for appropriate drainage, and minimize ongoing maintenance requirements.

DISCUSSION/ANALYSIS:

For the City to implement the modification of the trail easement alignment, the City Council must adopt the two (2) resolutions enclosed with this staff report.

The first resolution will vacate the Northwest Trail Easement that was offered for dedication by the Developer on the First Final Map, and accepted by the City, subject to improvement, pursuant to the provisions set forth in Section 8333 (c) of the California Streets and Highways Code. (“Resolution to Vacate”) (See Attachment 1). Once approved, the City Clerk will be required to record a certified copy of the Resolution to Vacate in the Official Records of Sonoma County pursuant to California Streets and Highways Code Section 8336.

The second resolution will approve and authorize the City Manager to execute the Amended Northwest Trail Easement and the Certificate of Acceptance by and between the City of Healdsburg and Oaks and Olives, LLC as well as Amended Northwest Trail Easement, and the Certificate of Acceptance appended thereto, by and between the City of Healdsburg and Sonoma Luxury Resort, LLC. Both Amended Northwest Trail Easements and the Amended Northwest Trail Legal Descriptions appended to the easements have been reviewed and approved by the City Surveyor.

Note that Streets and Highways Code Section 8333 (c) authorizes the summary vacation of a public service easement when it has been superseded by relocation, as is the case in this instance by virtue of the Amended Northwest Trail Easements. Accordingly, the recording of the Resolution to Vacate is conditioned on the concurrent recording of the Amended Northwest Trail Easements to ensure the replacement easement reflected in the Amended Northwest Trail

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Easements is in place when the Resolution to Vacate becomes effective.

ENVIRONMENTAL STEWARDSHIP:

The Developer is bound by, and required to perform, all mitigation measures for the Project contained in and required by the Final Environmental Impact Report for the Saggio Hills Project, including all mitigation monitoring and reporting.

ALTERNATIVES:

It is recommended that the City Council adopt the two attached Resolutions to (i) vacate the original Northwest Trail Easement and (ii) approve and authorize the City Manager to execute the Amended Northwest Trail Easements and the Certificates of Acceptance appended thereto and authorize it to be recorded. Alternatively, the City Council could consider the following actions:
1) Approve the Resolutions with minor revisions,
2) Direct that significant changes be made to the Resolutions in which case the item will be brought back for Council action on a future agenda.

FISCAL IMPACT:

The Montage Healdsburg project is a privately funded development that will generate property tax, transient occupancy tax, impact fees, and sales tax revenues which will help to offset the City's costs of providing services to the project. Through the Developer Agreement, the Developer is required to make several land dedications, public and private improvements, and cash contributions to the City. The project is likely to provide other long-term benefits to the community.

ENVIRONMENTAL ANALYSIS:

The adoption of the two Resolutions described above are not a project subject to the requirements of the California Environmental Quality Act (“CEQA”) because the public trail improvements have already been constructed upon the modified trail alignment reflected in the Amended Northwest Trail Easements in accordance with the terms of the Public Improvement Agreement. Therefore, the adoption of these Resolutions will not result in a direct physical change in the environment nor a reasonably foreseeable indirect physical change in the environment. Further, even assuming the adoption of these Resolutions are a project as defined in CEQA, the adoption of these Resolutions are exempt from environmental review pursuant to section 15061(b)(3) of the State CEQA Guidelines because each is covered by the common sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment and where, as in the case of the adoption of these Resolutions, it can be seen with certainty that there is no possibility that the adoption of these Resolutions may have a significant effect on the environment, the adoption of these Resolutions are not subject to CEQA.

ATTACHMENT(S):

Resolution - Vacation of NW Trail Easement
Exhibit A to Summary Vacation Resolution
Resolution - Amended NW Trail Easement Acceptance
Amended_Northwest_Trail_Easement_(Parcel 1 - Saggio Hills)

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Exhibits A anb B
Amended_Northwest_Trail_Easement_(Parcel 2 - Saggio Hills) Exhibits A, B and B-1

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CITY OF HEALDSBURG
RESOLUTION NO. XX-2022

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG SUMMARILY VACATING THE PUBLIC

TRAIL EASEMENT AS SHOWN ON THE FIRST FINAL MAP

FOR THE SAGGIO HILLS PROJECT PURSUANT TO
CHAPTER 4 OF PART 3 OF DIVISION 9 OF THE CALIFORNIA

STREETS AND HIGHWAYS CODE, WHICH PUBLIC TRAIL

EASEMENT WILL BE SUPERSEDED BY RELOCATION
WHEREAS, on April 11, 2011, under the authority of Ordinance No. 1107, the City of Healdsburg ("City") and Sonoma Luxury Resort LLC ("Developer") entered into a Development Agreement; a Memorandum of Development Agreement was recorded in the Official Records of Sonoma County on April 27, 2011, Instrument No. 2011-037227 (“Development Agreement”); and WHEREAS, the Development Agreement governs the development of approximately 258 acres of real property, with a 130-room luxury resort (the “Resort”), 70 single family residences (the “Residences”), dedication of land to the City for development of up to 150 affordable housing units (the “Affordable Housing”), dedication of land to the City for development of a public park (the “Public Park”), and construction and dedication of land and improvements to the City of Passalacqua Drive and Parkland Farms Blvd. (the “Public Roads and Related Utilities”), hiking and pedestrian-bicycle trails (the “Public Trails”), a fire substation (the “Fire Substation”), and a pump station (the “Pump Station”)(collectively, the “Project”); and WHEREAS, in addition to the Development Agreement, the City has approved of the following entitlements governing the development of the Project on the Property:

1. On January 31, 2011, pursuant to Resolution No. 18-2011, the City conditionally approved the Saggio Hills Tentative Subdivision Map (TM06-04)(“Tentative Map”); and

2. On April 4, 2016, pursuant to Resolution No. 19-2016, the first final map which was filed for record in the Official Records of Sonoma County on May 23, 2018, in Book 795 of Maps at Pages 31-40, Document No. 2018-037508 (“FM-1”); and

3. On April 5, 2016, an Insubstantial Amendment To The Development Agreement Between The City Of Healdsburg And Sonoma Luxury Resort, LLC, dated April 11, 2011 (“First Insubstantial Amendment”); and

4. On June 18, 2018, pursuant to Resolution No. 61-2018, the second final map which was filed for record in the Official Records of Sonoma County on September 14, 2018, in Book 798 of Maps at Pages 29-35, Document No. 2018-065059 (“FM-2”); and

5. On June 18, 2018, pursuant to Resolution 61-2018, the third final map which was filed for record in the Official Records of Sonoma County on September 14, 2018, in Book 798 of Maps at Pages 36-43, Document No. 2018-065061 (“FM-3”); and

6. On May 30, 2019, a Second Insubstantial Amendment To The Development Agreement

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Between The City of Healdsburg and Sonoma Luxury Resort, LLC, dated April 11, 2011 ("Second Insubstantial Amendment") was executed by the Parties; and

7. On January 19, 2021, City and Developer entered into that certain Third Amendment to Development Agreement; a Memorandum of Third Amendment to Development Agreement was filed for record in the Official Records of Sonoma County on March 4, 202, Document No. 2021-025567 (“Third Amendment”); and
WHEREAS, in connection with the Public Trails, Section 6(b) of Exhibit B to the Development Agreement provided that City agrees to accept an offer of dedication of the Public Trails “at such time as (i) the City approves the First Final Map (if such Public Trails are then completed), or (ii) such Public Trails are completed in accordance with the Subdivision Improvement Agreement for the First Final Map (if such Public Trails are not completed when such final map is approved)”; and
WHEREAS, the Public Trails were not completed at the time the City approved FM-1, however, a portion of the Public Trails, constituting hiking trails across Parcel 1 (Resort Parcel) and Parcel 2 (Residential Parcel) (the “Northwest Trail”), were offered for dedication to the City pursuant to FM-1 (the “Northwest Trail Easement”), as shown on Exhibit A attached hereto, which Northwest Trail Easement was accepted by the City subject to improvement; and WHEREAS, subsequent to the dedication and conditional acceptance of the Northwest Trail Easement the City and Developer continued to discuss refinements to the timing and scope of their respective obligations, specifically including the actual alignment of the Northwest Trail as reflected in the Northwest Trail Easement; and
WHEREAS, pursuant to the Third Amendment, the City and Developer agreed, in part, to enter into a Public Improvement Agreement For Northwest Trail ("Public Improvement Agreement") which shall govern the process of relocating the alignment of the Northwest Trail Easement through (i) summary vacation of the Northwest Trail Easement dedicated on FM-1 in accordance with California Streets and Highways Code Section 8333 (c), (ii) grant of an amended Northwest Trail Easement (“Amended Northwest Trail Easement”) from Developer to City over the actual, as-built alignment of the Northwest Trail (“Amended Northwest Trail Legal Description”), and (iii) the design, construction, bonding and acceptance of the Northwest Trail (“Northwest Trail Improvements”), in the location of the Amended Northwest Trail Legal Description; and
WHEREAS, the City and Developer entered into the Public Improvement Agreement on January 19, 2021, which was filed for record in the Official Records of Sonoma County on March 4, 2021, Document No. 2021-025568; and
WHEREAS, Developer has completed the design and construction of the Northwest Trail Improvements and has caused the preparation of the Amended Northwest Trail Legal Description,

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which describes the actual, as-built alignment of the Northwest Trail, which has been reviewed and approved by the City Surveyor; and
WHEREAS, Developer has executed, acknowledged and delivered to the City Clerk the Amended Northwest Trail Easement, and the Amended Northwest Trail Legal Description has been appended to the Amended Northwest Trail Easement.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Healdsburg as follows:

1. The recitals set forth above are adopted as findings in support of this Resolution.

2. The adoption of this Resolution to vacate the Northwest Trail Easement is not a project subject to the requirements of the California Environmental Quality Act (“CEQA”) because the vacation of the Northwest Trail Easement, which has already been superseded by its relocation upon the alignment reflected in the Amended Northwest Trail Easement in accordance with the terms of the Public Improvement Agreement, will not result in a direct physical change in the environment nor a reasonably foreseeable indirect physical change in the environment. Further, even assuming the adoption of this Resolution is a project as defined in CEQA, the adoption of this Resolution is exempt from environmental review pursuant to section 15061(b)(3) of the State CEQA Guidelines because it is covered by the common sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment and where, as in the case of the adoption of this Resolution, it can be seen with certainty that there is no possibility that the adoption of this Resolution may have a significant effect on the environment, the adoption of this Resolution is not subject to CEQA.

3. In accordance with California Streets and Highways Code Section 8333 (c), the City Council of the City of Healdsburg hereby vacates the Northwest Trail Easement, offered for dedication by Developer and accepted by City as shown on the first final subdivision map recorded in connection with the Project in the Official Records of Sonoma County on May 23, 2018, in Book 795 of Maps at Pages 31-40, Document No. 2018-037508 (“FM-1”), as more particularly depicted and described on Page 34 of FM-1 and in Exhibit A attached hereto, on the condition that the Amended Northwest Trail Easement be recorded in the Official Records of Sonoma County concurrently with this Resolution.

4. From and after the date of recordation of this Resolution, the Northwest Trail Easement, more particularly depicted and described on Page 34 of FM-1 and in Exhibit A attached hereto, will no longer constitute a public service easement.

5. Pursuant to California Streets and Highway Code Section 8336, the City Clerk is directed to cause a certified copy of this Resolution, attested by the City Clerk under seal, to be

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recorded in the Official Records of Sonoma County concurrently with the Amended Northwest Trail Easement.

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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EXHIBIT A

LEGAL DESCRIPTION OF NORTHWEST TRAIL EASEMENT

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Attachment: Exhibit A to Summary Vacation Resolution (3584 : Vacation of Northwest Trail Easement and Acceptance of Amended Easements

CITY OF HEALDSBURG
RESOLUTION NO. XX-2022

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG APPROVING AND AUTHORIZING THE CITY

MANAGER TO EXECUTE THE AMENDED NORTHWEST

TRAIL EASEMENT AND THE CERTIFICATE OF

ACCEPTANCE BY AND BETWEEN THE CITY OF

HEALDSBURG AND OAKS AND OLIVES, LLC AS WELL AS

THE AMENDED NORTHWEST TRAIL EASEMENT AND THE

CERTIFICATE OF ACCEPTANCE BY AND BETWEEN THE

CITY OF HEALDSBURG AND SONOMA LUXURY RESORT

LLC, FOR THE SAGGIO HILLS PROJECT
WHEREAS, on April 11, 2011, under the authority of Ordinance No. 1107, the City of Healdsburg ("City") and Sonoma Luxury Resort LLC ("Developer") entered into a Development Agreement; a Memorandum of Development Agreement was recorded in the Official Records of Sonoma County on April 27, 2011, Instrument No. 2011-037227 (“Development Agreement”); AND
WHEREAS, the Development Agreement governs the development of approximately 258 acres of real property, with a 130-room luxury resort (the “Resort”), 70 single family residences (the “Residences”), dedication of land to the City for development of up to 150 affordable housing units (the “Affordable Housing”), dedication of land to the City for development of a public park (the “Public Park”), and construction and dedication of land and improvements to the City of Passalacqua Drive and Parkland Farms Blvd. (the “Public Roads and Related Utilities”), hiking and pedestrian-bicycle trails (the “Public Trails”), a fire substation (the “Fire Substation”), and a pump station (the “Pump Station”)(collectively, the “Project”); and WHEREAS, in addition to the Development Agreement, the City has approved of the following entitlements governing the development of the Project on the Property:

1. On January 31, 2011, pursuant to Resolution No. 18-2011, the City conditionally approved the Saggio Hills Tentative Subdivision Map (TM06-04)(“Tentative Map”); and

2. On April 4, 2016, pursuant to Resolution No. 19-2016, the first final map which was filed for record in the Official Records of Sonoma County on May 23, 2018, in Book 795 of Maps at Pages 31-40, Document No. 2018-037508 (“FM-1”); and

3. On April 5, 2016, an Insubstantial Amendment To The Development Agreement Between The City Of Healdsburg And Sonoma Luxury Resort, LLC, dated April 11, 2011 (“First Insubstantial Amendment”); and

4. On June 18, 2018, pursuant to Resolution No. 61-2018, the second final map which was filed for record in the Official Records of Sonoma County on September 14, 2018, in Book 798 of Maps at Pages 29-35, Document No. 2018-065059 (“FM-2”); and

5. On June 18, 2018, pursuant to Resolution 61-2018, the third final map which was filed for record in the Official Records of Sonoma County on September 14, 2018, in Book 798

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Packet Pg. 131 Attachment: Resolution - Amended NW Trail Easement Acceptance (3584 : Vacation of Northwest Trail Easement and Acceptance of Amended Resolution No. XX-2022

of Maps at Pages 36-43, Document No. 2018-065061 (“FM-3”); and

6. On May 30, 2019, a Second Insubstantial Amendment To The Development Agreement Between The City of Healdsburg and Sonoma Luxury Resort, LLC, dated April 11, 2011 ("Second Insubstantial Amendment") was executed by the Parties; and

7. On January 19, 2021, City and Developer entered into that certain Third Amendment to Development Agreement; a Memorandum of Third Amendment to Development Agreement was filed for record in the Official Records of Sonoma County on March 4, 2021, Document No. 2021-025567 (“Third Amendment”); and WHEREAS, in connection with the Public Trails, Section 6(b) of Exhibit B to the Development Agreement provided that City agrees to accept an offer of dedication of the Public Trails “at such time as (i) the City approves the First Final Map (if such Public Trails are then completed), or (ii) such Public Trails are completed in accordance with the Subdivision Improvement Agreement for the First Final Map (if such Public Trails are not completed when such final map is approved)”; and
WHEREAS, the Public Trails were not completed at the time the City approved FM-1; however, a portion of the Public Trails, constituting hiking trails across Parcel 1 (Resort Parcel) and Parcel 2 (Residential Parcel) (the “Northwest Trail”), were offered for dedication to the City pursuant to FM-1 (the “Northwest Trail Easement”), as shown on Exhibit A attached hereto, which Northwest Trail Easement was accepted by the City subject to improvement; and WHEREAS, subsequent to the dedication and conditional acceptance of the Northwest Trail Easement the City and Developer continued to discuss refinements to the timing and scope of their respective obligations, specifically including the actual alignment of the Northwest Trail as reflected in the Northwest Trail Easement; and
WHEREAS, pursuant to the Third Amendment, the City and Developer agreed, in part, to enter into a Public Improvement Agreement For Northwest Trail ("Public Improvement Agreement") which shall govern the process of relocating the alignment of the Northwest Trail Easement through (i) summary vacation of the Northwest Trail Easement dedicated on FM-1 in accordance with California Streets and Highways Code Section 8333 (c), (ii) grant of amended Northwest Trail Easements (“Amended Northwest Trail Easement SLR”) from Developer to City over the actual, as-built alignment of the Northwest Trail (“Amended Northwest Trail Legal Descriptions”), and from Oaks and Olives LLC to City over the actual, as-built alignment of the Northwest Trail (“Amended Northwest Trail Legal Descriptions”), as well as (iii) the design, construction, bonding and acceptance of the Northwest Trail (“Northwest Trail Improvements”), in the location of the Amended Northwest Trail Legal Description; and WHEREAS, the City and Developer entered into the Public Improvement Agreement on January 19, 2021, which was filed for record in the Official Records of Sonoma County on March 4, 2021, Document No. 2021-025568; and

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Packet Pg. 132 Attachment: Resolution - Amended NW Trail Easement Acceptance (3584 : Vacation of Northwest Trail Easement and Acceptance of Amended Resolution No. XX-2022

WHEREAS, Developer has completed the design and construction of the Northwest Trail Improvements and has caused the preparation of the Amended Northwest Trail Legal Descriptions, which describes the actual, as-built alignment of the Northwest Trail, which has been reviewed and approved by the City Surveyor; and
WHEREAS, Developer has executed, acknowledged and delivered to the City Clerk the Amended Northwest Trail Easements, and the Amended Northwest Trail Legal Descriptions have been appended to the Amended Northwest Trail Easements; and WHEREAS, in accordance with the Public Improvement Agreement, contemporaneously with its consideration of this resolution, the City Council of the City of Healdsburg is considering the adoption of a resolution to vacate the Northwest Trail Easement in accordance with California Streets and Highways Code Section 8333 (c) (the “Resolution to Vacate”).

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Healdsburg as follows:

1. The recitals set forth above are adopted as findings in support of this Resolution.

2. The adoption of this Resolution approving and authorizing the City Manager to execute the Amended Northwest Trail Easement and Certificate of Acceptance appended thereto, by and between the City of Healdsburg and Oaks and Olives LLC, as well as the Amended Northwest Trail Easement and the Certificate Of Acceptance appended thereto, by and between the City of Healdsburg and Sonoma Luxury Resort, LLC are not projects subject to the requirements of the California Environmental Quality Act (“CEQA”) because the Northwest Trail improvements have already been constructed and completed in accordance with the terms of the Public Improvement Agreement and therefore will not result in a direct physical change in the environment nor a reasonably foreseeable indirect physical change in the environment. Further, even assuming the adoption of this Resolution is a project as defined in CEQA, the adoption of this Resolution is exempt from environmental review pursuant to section 15061(b)(3) of the State CEQA Guidelines because it is covered by the common sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment and where, as in the case of the adoption of this Resolution, it can be seen with certainty that there is no possibility that the adoption of this Resolution may have a significant effect on the environment, the adoption of this Resolution is not subject to CEQA.

3. The City Council hereby approves both Amended Northwest Trail Easements, attached hereto as Exhibit’s A, and further authorizes the City Manager to execute the Amended Northwest Trail Easements and the Certificates of Acceptance appended thereto, and to cause the Amended Northwest Trail Easements to be recorded in the Official Records of Sonoma County concurrently with the Resolution to Vacate.

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Packet Pg. 133 Attachment: Resolution - Amended NW Trail Easement Acceptance (3584 : Vacation of Northwest Trail Easement and Acceptance of Amended Resolution No. XX-2022