PASSED and ADOPTED by the City Council of the City of Healdsburg, this 1 st day of August
2022, by the following vote:
AYES: Councilmembers: ( )
NOES: Councilmembers: ( )
ABSENT: Councilmembers: ( )
ABSTAINING: Councilmembers: ( )
SO ORDERED: ATTEST:
________________________________ ___________________________________ Osvaldo Jimenez, Mayor Raina Allan, City Clerk
6.F.a
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Attachment: Resolution (3686 : MOU Approval - IBEW)
Memorandum of Understanding
I.B.E.W. LOCAL 1245
and
CITY OF HEALDSBURG
2022-2025
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Attachment: Exhibit A: IBEW MOU 2022-2025 (3686 : MOU Approval - IBEW) IBEW MOU 2022-2025
ii
TABLE OF CONTENTS PAGE NUMBER
PREAMBLE 2
I. EMPLOYEE REPRESENTATION 2
II. HOURS OF WORK, OVERTIME 3
III. SALARY PLAN 7
IV. LONGEVITY 10
V. HEALTH AND WELFARE BENEFITS 10
VI. PUBLIC EMPLOYEES RETIREMENT SYSTEM 11
VII. MEAL 12
VIII. PAYMENT FOR TRAVEL 12
IX. EDUCATIONAL REIMBURSEMENT 12
X. MILEAGE REIMBURSEMENT 13
XI. TOOL REIMBURSEMENT 13
XII. BILINGUAL PAY INCENTIVE 13
XIII. HOLIDAYS 14
XIV. VACATION LEAVE 14
XV. SICK LEAVE PROVISIONS 16
XVI. LEAVE OF ABSENCE 18
XVII. ABANDONMENT OF POSITION 19
XVIII. PARENTAL LEAVE, FMLA, CFRA AND PDL LEAVES 19
XIX. BEREAVEMENT LEAVE 20
XX. JURY DUTY 20
XXI. COMPENSATION FOR ILLNESS OR INJURY INCURRED IN COURSE OF EMPLOYMENT 20 XXII. SAFETY 20
XXIII. DISCIPLINE 21
XXIV. GRIEVANCE PROCEDURE 22
XXV. SENIORITY 24
XXVI. PROBATION PERIODS 24
XXVII. VACANCIES 25
XXVIII. DEMOTION AND LAYOFF 25
XXIX. TEMPORARY AND PART-TIME EMPLOYEES 26
XXX. OUTSIDE EMPLOYMENT 27
XXXI. NO STRIKE 27
XXXII. MANAGEMENT RIGHTS 27
XXXIII. WAIVER AND FINALITY 28
XXXIV. SEPARABILITY 28
XXXV. DURATION 28
XXXVI. RATIFICATION 29
EXHIBIT A 30
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Attachment: Exhibit A: IBEW MOU 2022-2025 (3686 : MOU Approval - IBEW) IBEW MOU 2022-2025
PREAMBLE
This agreement is between the City of Healdsburg and Local Union 1245 of the International Brotherhood of Electrical Workers (Local 1245, IBEW).
I. EMPLOYEE REPRESENTATION
1.1 The City of Healdsburg recognizes the employees’ rights of self-organization and to be represented by employee organizations of their own choosing as set forth in Chapter 10, Division 4 of the Government Code of the State of California.
To that end, the City of Healdsburg, through its appointed representatives, agrees to meet and confer with representatives of Local Union 1245, International Brotherhood of Electrical Workers, on all matters of employment conditions and employer-employee relations affecting operations and maintenance employees and clerical employees, excluding management and confidential employees as well as professional employees in the police and fire departments.
1.1.1. Commencing with the ratification of this memorandum of understanding, the City proposes to create a Utility Operator career ladder whereby the current positions (5) of Water Operator and Sewer Plant Operator would have an opportunity on a volunteer basis to receive the training and licensing to become a Utility Operator. The Utility Operator position requires a Grade II in water and a Grade II in wastewater and, within one year of promotion, the acquisition of an AWWA Backflow Prevention Testing Certification.
The City will provide free training and licensing. The City is constrained to providing the necessary training of 2080 hours to one employee at a time. Candidates for participation would be determined on the basis of most qualifications completed. Upon classification as a Utility Operator, the employee would receive a commensurate raise in pay. Even though an employee promoted to the Utility Operator position successfully passes the six (6) month probationary period, should he/she not obtain a Certification within the one year specified, a six month extension could be granted after which, failing once again to obtain the Certification, the employee would be returned to his/her former position pursuant to Section 25.3 of this MOU. (Added 7/1/00)
1.2 Local 1245, IBEW, will be permitted to use bulletin boards on City property for the purpose of posting notices of meeting and other official business of Local 1245, IBEW, with the understanding that material derogatory to the City will not be posted.
1.3 Representatives of Local 1245, IBEW, will be permitted access to work locations to confer with City employees on matters of employer-employee relations, but such representatives shall not interfere with work in progress.
1.4 The City shall deduct from their earnings and pay over to the proper officers of Local 1245, IBEW, the membership dues of members of Local 1245, IBEW, who individually and voluntarily authorize such deductions in writing, using the proper form to make such authorization. The authorization form shall be approved by the City and Local 1245, IBEW.
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1.5 The City will advise Local 1245, IBEW, of any contemplated actions affecting employment conditions and employer-employee relations prior to proceeding with action in sufficient time that Local 1245, IBEW, may comment thereon.
1.6 UNION SECURITY
The following provisions shall apply to all employees represented by Local 1245 of the International Brotherhood of Electrical Workers COVERED BY THIS Memorandum of Understanding.
A. Dues: Any employee of the City in a classification represented by Local 1245 who is not on leave of absence may become a member of the Local 1245 and pay Local 1245 membership dues or may voluntarily pay service fees in an amount not to exceed periodic dues and general assessments of Local 1245 . Such amounts shall be determined by Local 1245 and implemented by the City in the first payroll period after receipt of written notification of employee authorization from Local 1245. To the extent required by the Government Code, or otherwise required by state and federal law, the City will rely on the information provided by Local 1245 in processing dues deductions for Local 1245 members. Local 1245 is responsible for providing the City with timely information regarding changes to members’ dues deductions.
B. New Employees & New Employee Orientation: In accordance with applicable state law and Assembly Bill 119 the City shall provide Local 1245 and its designated representatives mandatory access to all new employee orientations of classifications it represents.
1. The City will work with Local 1245 to provide advanced notice, of not less than 10 days, of the new hire orientation so an exclusive representative of Local 1245 will have access to new employee orientations for up to thirty minutes.
2. Local 1245 agrees to provide the City a list of shop stewards/representative(s) that Local 1245 will use for the new hire orientations throughout the year.
3. Once the City notifies Local 1245 of the new employee orientation, Local 1245 will identify which steward/representative will attend the new employee orientation or, alternatively, schedule to meet with the newly hired employee at a time more acceptable to operational needs, but within ten (10) days of hire.
4. Additionally, the City will provide Local 1245 the following information within 30 days of hiring a Local 1245 represented employee: the name, job title, department, work location, work, home, and personal cellular telephone numbers, personal email addresses on file with the employer, and the home address of the new hire.
5. The City will provide Local 1245 with a list of all information for all employees in the bargaining unit every 120 days.
C. Term: The provisions of this Article shall be effective as provided for in the Government Code, or otherwise required by state and federal law.
D. Local 1245, IBEW shall indemnify and hold harmless the City, its officers, agents and employees, individually and collectively, from and against any and all claims, costs, suits,
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Attachment: Exhibit A: IBEW MOU 2022-2025 (3686 : MOU Approval - IBEW)
losses, demands, actions, judgments, damages, fees, liabilities, and proceeding of any nature whatsoever arising of, or related to, its enforcement of this Article. (Amended 2019)
1.7 Local 1245 Leadership and Steward Leave Time: Upon the request of Local 1245, and consistent with state law, the City shall grant employees a leave of absence without loss of compensation or other benefits to serve as stewards, officers or delegates of the Local 1245, or of any statewide or national employee organization with which the Local 1245 is affiliated.
Local 1245 request may be for full-time, part-time, periodic, or on an intermittent basis, and shall be specified in the request. Requests shall be made at least two weeks in advance and directed to the Human Resources Director or their designee unless otherwise agreed to between the City and Local 1245.
A regular employee appointed or elected to office in the Union which requires all the employee’s time shall be granted a Union Leave of Absence, upon request of Local 1245, for a period not more than two (2) weeks, unless otherwise agreed to by the parties and reduced to writing on a case by case basis. The City shall not unreasonably deny such requests for more than two (2) weeks, however operational needs and staff will be respected should a denial be warranted.
During the leave, the City shall fund the retirement contributions required of the City as an employer and as specified in the MOU. The employee shall earn full-service credit during the leave of absence and shall pay their contributions as specified in the memorandum of understanding or collective bargaining agreement.
Local 1245 shall reimburse the City for all compensation paid to the employee on leave unless otherwise specified by the collective bargaining agreement or memorandum of understanding.
Reimbursement by Local 1245 shall be made within 30 days after receipt of the City’s certification of payment of compensation to the employee.
The leave provided under this section shall be in addition to any leave to which public employees may be entitled by other laws or by the memorandum of understanding or collective bargaining agreement and shall not serve to invalidate any provision of this memorandum of understanding or collective bargaining agreement.
At the conclusion or termination of the leave, the City shall reinstate the employee to the same position and work location held prior to the leave, or, if not feasible, a substantially similar position without loss of seniority, rank, or classification.
The City shall not be liable for any acts committed or omitted, or injuries suffered by the employee which occur during the course and scope of the employee’s leave under this section. If held liable, the Union shall indemnify and hold harmless the City for any such acts.
The Union has no obligation to use leave under this section for an employee and may terminate that leave at any time, for any reason. (Added 2022)
II. HOURS OF WORK, OVERTIME
2.1 Workweek is defined as seven (7) consecutive days, Sunday through Saturday, and except as otherwise provided herein, a scheduled workweek for full-time employees covered by the agreement shall consist of five (5) consecutive eight-hour shifts, Monday through Friday except in accordance with Articles 2.3 and 2.5 below. The Department Head or their designated
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Attachment: Exhibit A: IBEW MOU 2022-2025 (3686 : MOU Approval - IBEW)
authority may waive these provisions in emergency situations as determined by the Department Head. (Amended 2022)
2.2 Workday. Employees shall be scheduled to work on regular work shifts, having regular starting and quitting times, which consists of eight (8), nine (9), or ten (10) consecutive hours of work except that the day may be interrupted by a lunch break; and as otherwise provided herein. Each Department and Division within each Department: Current Flex schedules as approved by the department, inclusive work week and start times pursuant Article 2.1 through 2.5 with either a 30 minute or 1 hour lunch period as applicable to each Department and Division’s operational needs. (Amended 2022)
2.3 Flex Time. The work schedule for employees or groups of employees may vary for flexible working hours and days upon approval of Local 1245, IBEW, Department Head and City Manager. Examples of acceptable alternate work schedules include: 5/8, 9/80 and 4/10 models.
Such schedules shall not interfere with the City’s operational needs as determined by the City Manager. The City will not unreasonably withhold approval of such schedules. (Amended 7/1/97, 7/1/10)
2.4 Work Schedules. Work schedules, showing the employee’s shifts, workdays, and hours shall be posted on employee bulletin boards. Except for situations where the City determines an emergency exists, or as provided herein the City may:
a) Change the regularly scheduled workday of an employee; (except for employees working out of the Community Services Department – see (c) below) if the change does not require the employee to work before 6:00 AM or after 6:00 PM; provided 10 days’ notice has been given.
b) Change the regularly scheduled workday of an employee; (except for employees working out of the Community Services Department – see (c) below) if the change requires the employee to work before 6:00 AM or after 6:00 PM; or change the regularly scheduled workweek only after meeting and conferring with Local 1245, IBEW.
c) For Community Services Department Employees, the regularly scheduled workweek may include shifts on Saturday and Sunday, compensated pursuant 2.12, as needed to meet operational demands, provided ten (10) days’ notice has been given or the employee volunteers to start within the ten (10) days’ notice. New employees may be hired into a workweek that includes shifts on Saturday and Sunday, as long as such changes do not require the employee to work before 5:00 AM or after 10:00 PM. Any changes to the work schedule outside these parameters are to be made only after meeting and conferring with Local 1245, IBEW. (Amended 2022)
d) Change the regularly scheduled work day of an employee for special events as approved through the special event permit process; provided ten (10) days’ notice is given. e) Change the regularly scheduled work day of an employee due to seasonal operational needs; provide ten (10) days’ notice is given and the schedule is maintained for a minimum of two (2) months.
f) The exceptions citied above are not intended to replace scheduled overtime as required for special repairs and/or maintenance projects.
6.F.b
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Attachment: Exhibit A: IBEW MOU 2022-2025 (3686 : MOU Approval - IBEW)
2.5 Overtime. Authorized work performed by an employee in excess of their scheduled workday or workweek shall constitute overtime except as otherwise provided. Examples: (1) time worked in excess of 40 hours per workweek; (2) time worked in excess of 8 hours per work day; (3) time worked outside of regularly scheduled hours on a workday; (4) time worked on a holiday; and (5) time worked on a non-work day.
2.6 Overtime Rate. Authorized overtime work shall be compensated at the rate of one and one-half (1 ½) times the employee’s base rate of pay.
a) All worked performed between midnight and the start of the regular work hours, on all days of the week, shall be compensated at the rate of two (2) times the established hourly rate for the employee’s position for each hour worked. (Amended 7/1/90) b) Mutual Assistance Rate of Pay: Effective upon adoption, all hours worked while providing mutual assistance to other entities, including but not limited to cities, agencies, municipalities, districts, or utilities, including private utility providers, during regularly scheduled hours or overtime, shall be compensated at the double time rate of pay. (Added 2022)
2.7 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:
a) Employees may accrue unlimited compensation time; however, the amount of compensation time-off shall be limited to 80 hours per calendar year. (Amended 7/1/91) b) 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. c) The use of comp time, actual time off work, must receive prior approval of the supervisor/department head.
d) Community Services employees who work an event after hours or on a weekend may elect to take time off at the rate of time and one-half (1 ½) within the week that follows in lieu of earned overtime or CTO. (Added 2022)
2.8 Distribution of Overtime. Overtime shall be distributed as equally as possible among those employees in the same classification. No employee shall be required to trade time for the purpose of avoiding payment of overtime.
2.9 Call back. Call back time shall be reimbursed based on a minimum of two (2) hours at the rate of time and one-half (1 ½) times the employee’s base rate of pay. Call-back time shall commence at the time of dispatch and shall conclude when the employee is released from duty. Any employee who is unable to respond within sixty (60) minutes may be eliminated from the call back rotation. (Amended 2022)
a) If an employee is recalled for emergency work more than once in the twenty-four (24) hour period commencing from the end of the normal shift, minimum overtime compensation shall be paid only for the first call; for subsequent calls overtime compensation shall be paid for his/her actual work as herein provided. For the purpose of this section, concurrent calls or successive calls without a break in work time shall be considered as a single call. If by reason of a call an employee works less than two (2) hours into his/her regular work hours, such call
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shall not be considered as a first call for the purpose of the minimum overtime compensation, i.e. not 2 hours. (Amended 7/1/90)
2.10 Phone Calls at Home.
a) Assuming an on-call employee receives an official work-related phone call at home during non-working hours, the City agrees to compensate said employee for a minimum of ½ hour overtime for the first call regardless of how long; actual time for each call that day thereafter.
Applies only to a person on standby in accordance with the provisions of Section 2.12. (Added 7/1/00)
b) Employees who receive an official work-related phone call the requires them to access computers from home for the analysis and/or response for service shall receive a minimum of 1 hour at the overtime rate of pay for the call. If actual work time exceeds one hour, the City shall compensate employees, at their overtime rate of pay, for actual hours worked. (Added 7/1/10)
2.11 Standby
a) Employees assigned to weekly Standby Pay for emergency calls shall receive two (2) hours at straight time rate of pay for each weekday during the standby period, not including Regular Days Off (RDO); and three (3) hours for each Saturday, Sunday, and scheduled RDO; and eight (8) hours Standby Pay at the employee’s straight time rate of pay for each holiday required to standby in addition to any emergency time worked. Any employee who is required to perform weekly standby for emergency calls more than 9 full weeks in a calendar year shall receive one and one-half times the Standby Pay described herein for each additional week of standby and holiday on standby. Additionally, any employee who is required to perform weekly standby for emergency call more than eighteen (18) full weeks or 126 days in a calendar year shall receive two-times the Standby Pay described herein for each additional week of standby and holiday on standby. The Standby period shall commence at conclusion of the scheduled work day and continue until the beginning of the next scheduled work day for weekdays. For Saturday, Sunday and/or scheduled RDOs Standby shall commence at the conclusion of the scheduled work day, or prior Standby period if applicable, and continue for 24 hours or the beginning of the next scheduled work day, whichever is longer. (Amended 2022)
b) Emergency time worked while on standby shall be computed to the nearest one-half (1/2) hour except in no event shall the employee be paid for less than two (2) hours. The two (2) hour minimum overtime compensation for call out while on standby duty shall be paid only for the first call during a twenty-four (24) hour period from end of normal shift; for subsequent calls during the standby duty within the same twenty-four (24) hour period, compensation shall be paid for actual time worked computed to the nearest one-half (1/2) hour. (Amended 7/1/00, 2022)
c) Employees assigned to weekly standby for emergency calls will be furnished an electronic pager or cell phone by the City.
2.12 Weekend Differential. Other than noted exceptions, any employee who is assigned to work a regularly scheduled shift on Saturday or Sunday will receive a weekend differential in an amount equal to 5% of their straight-time rate of pay. (Amended 7/1/97) (NOTE: Added as a separate section 7/1/00)
6.F.b
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Attachment: Exhibit A: IBEW MOU 2022-2025 (3686 : MOU Approval - IBEW)
2.13 Rest Period. If an employee has worked for eight (8) hours or more at the overtime rate during the sixteen (16) hour period immediately preceding the beginning of the employee's regular work hours on a workday, such employee shall be entitled to a rest period of eight consecutive hours on the completion of such overtime work.
(a) There shall be included as part of the eight (8) hours worked at the overtime rate in such sixteen (16) hour period any travel time and mealtime to which the employee is entitled when emergency or prearranged work is performed except that any travel time and mealtime to which the employee is entitled after being dismissed from work shall not be included as hours worked in such period, but it shall be included in the computation of the eight hour rest period.
(b) Hours worked prior to any eight hour rest period in which the employee does not work shall not be included in computing another period of overtime work. (c) If the eight hour rest period in whole or in part overlaps the employee's regular work hours the employee will receive pay at the straight rate for the extent of the overlap, except that the time taken during such overlap for any meal to which the employee is entitled on dismissal shall be paid for at the overtime rate.
(d) If the employee is called back to work during their eight (8) hour rest period a new rest period will commence at the conclusion of such work.
(1) If the rest period overlaps the employee's regular work hours but does not extend into the second half of the employee's workday, the employee shall be excused from reporting for work until the beginning of the second half of the employee's workday, and in such an event the employee shall be paid for the time between the expiration of the rest period and the end of the first half of such workday at their regular rate of pay.
(2) If the rest period extends into the second half of the employee's workday, the employee shall be excused from reporting for work until the following workday, and in such event the employee shall be paid for the time between the expiration of the rest period and the employee's regular quitting time on such day at their regular rate of pay.
(3) In the application of the foregoing, an employee, due to operational needs, may be required to report to work at the end of the employee's rest period. (e) An employee entitled to a rest period hereunder may nevertheless be required to work during regular work hours on a workday without having had a rest period of eight consecutive hours, in which event the employee shall be paid at two times the straight rate of pay for all work performed until the employee has been relieved from duty for at least eight consecutive hours.
III. SALARY PLAN
3.1 Salary Plan Administration. Employees occupying a position in a classification covered by this Memorandum of Understanding shall be paid the base salary range, specified for their classification, as contained in Exhibit "A” entitled "Salary Ranges Effective”, attached hereto and incorporated herein, sets forth the salary ranges which reflect the increases described in Section
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3.2 Salary Plan Administration, Original Appointment. The salary for a new employee entering City employment shall be the minimum or first salary step for the classification to which the employee is appointed, provided however, that the City Manager may, when circumstances so warrant, appoint at other than the first step.
3.3 Salary Plan Administration, Advance within Salary Range. a) Full-time employees appointed at the first step (“A”) shall be eligible for advancement to the second step (“B”) of the specific salary range six (6) months after original appointment, provided that the employee’s performance merits the increase. Advancement to the remaining steps may be made after one (1) year of satisfactory service at each successive salary step, provided that the employee’s performance merits the increase. b) Regular part-time employees are eligible for merit increases from the A to B step after 1040 straight time hours of service and are eligible for increases from B to C to D to E steps after 2080 straight time hours of service at each step.
c) A step increase will be denied in any case where it may be determined, upon reliable evidence that the employee in question has not progressed satisfactorily in acquiring and using the learning skills necessary for the proper performance of the position to which he/she has been assigned, or that the employee has failed to perform work assignments satisfactorily during the period he/she has served at this present level or salary. All adverse reports or recommendations pertaining to the withholding of step increases will be reviewed by the City Manager prior to the affected employee’s anniversary date. d) All evaluation reports shall be prepared by the City on a timely basis. The City’s failure to prepare and present an evaluation report within 30 days of the employee’s salary anniversary date shall be considered a favorable evaluation report for all salary purposes. In no event shall the evaluation report be prepared by an individual who is not familiar with the work performed by the employee being evaluated. (Amended 7/1/97) e) A Lineman with two (2) or more years of experience who has successfully completed a recognized apprenticeship will be hired at the “D” step or higher in the pay range for Lineman. Upon successful completion of the probationary period, such employee shall be raised to the “E” step. A City employee who has successfully completed the City’s apprenticeship will be placed at the “D” step or higher in the pay range for Lineman. (Amended 7/1/91)
f) Changes in an employee’s salary because of promotion or demotion may set a revised salary anniversary date for that employee, for the purpose of step increase. g) Whenever the schedule of compensation for a classification is revised, each incumbent in a position to which the revised schedule applies, shall be paid at the same step in the revised ranges as the step at which the employee was paid in the previous range.
3.4 Salary Plan Administration, Salary Step After Promotion or Demotion. When employees are promoted, they shall be entitled to receive compensation at the beginning step of the class to which the employee has been promoted. In the instance where the pay ranges overlap, promotion shall be effected at the next higher step in the range, with a minimum five percent (5%) increase where possible, of the new class.
6.F.b
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a) When an employee is demoted, whether such demotion is voluntary or otherwise, the employee’s compensation shall be adjusted to the salary prescribed for the classification to which the employee is demoted and unless otherwise provided, the specific rate of pay within the range shall be determined by the City Manager; provided however, that an employee demoted for non-disciplinary reasons shall be placed at the salary step in the lower classification which most closely approximates, but does not exceed, the employee’s salary in the higher classification.
b) If an employee takes a voluntary demotion to a classification previously held within the same series, the employee shall be placed at a step commensurate with length of service in both classifications. If the classifications are not within the same series, the employee shall be placed at the same step in the lower classification which the employee held last, and the service time at such step shall be the same as the service time held previously at such step.
3.5 Temporary Upgrading: Like Work for Like Pay.
Straight Time: An employee assigned to work in a higher classification for one (1) day or more, shall be paid the starting rate of pay of the higher position or 5% above their regular rate of pay, if possible, whichever is greater.
Over-Time: Authorized overtime when assigned to work in a higher classification will be paid at one and one-half the A-step of the assigned class or one and one-half the employee’s rate plus 5%, whichever is greater.
Lead Lineman Pay: If a Lineman is assigned to work with another Lineman (not an Apprentice Lineman) on a crew without a Foreman, the lead Lineman will be paid 5% above their regular rate of pay.
3.6 Pay Periods. Employees shall be paid bi-weekly, every other Thursday, unless mutually agreed by the City and union.
3.7 Salary Plan.
Effective the first full pay period following July 1, 2022 or following IBEW ratification and City Council approval of MOU, whichever is later, all classifications covered by this agreement shall receive a 4% cost of living adjustment.
Year 2, 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 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%.
Year 3, effective July 1, 2024, 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 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 3%.
In the event Transient Occupancy Tax (“TOT”) and/or Sales Tax revenue declines below fiscal year 2019-20 levels, additional cost of living adjustments in fiscal years 2023 and/or
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2024 shall be reduced by 50% until such time as revenue recovers to fiscal year 2019-20 revenue levels.
3.8 Compensation Study. Should the need for a comprehensive classification and/or compensation study arise during the term of this agreement, both parties agree to meet and confer over comparable entities to be included within the scope of the study. (Amended 2022) IV. LONGEVITY
4.1 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 2022)
Any employee shall receive such pay in addition to his/her basic rate of pay in accordance with the following schedule:
Years of Service Merit Pay Rate
5 years Base rate of pay + 2%
10 years 3%
15 years Base rate of pay + 4%
20 years 5%
25 years or more 6%
V. HEALTH AND WELFARE BENEFITS
5.1 Medical. All regular, full-time Local 1245, IBEW employees are 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 traditional HMO medical plan, by premium category, but not to include any high cost deductible plan offered. 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 2022) Local 1245, IBEW employees opting out of the City paid Medical Plan shall receive a monthly stipend in an amount equal to $477 per month. (Amended 2017)
5.2 Life. The City will pay the premium for a $75,000 life insurance policy for employees. The City will pay any increased life insurance premium costs which may be incurred during the term of this Memorandum of Understanding in conformance with those rates as set by the City’s current insurance carrier – American International Group Life Insurance Company. Additionally, employees may purchase, at their expense, supplemental life insurance as provided by AIG Life. (Amended 7/1/04)
5.3 Dental. All regular, full-time employees are eligible to participate in the group dental plan offered by the City’s current dental insurance carrier, Delta Dental of California where under the City shall pay 100% of the premium per employee. Such group dental plan shall cover 80% of the updated 1995 schedule with 100% preventive dental. The City will pay any increased dental
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insurance premium costs which may be incurred during the term of the Memorandum of Understanding in conformance with those rates as set by the City’s insurance carrier, Delta Dental.
5.4 Vision. All regular, full-time employees are eligible to participate in the group visual care plan offered by the City’s current vision care plan insurance carrier VSP, where under the City shall pay 100% of the monthly premium. Employees enrolled in Kaiser will not be covered by the VSP vision care insurance and an amount equal to the monthly VSP vision care premium will be applied to the base amount for health insurance as stated in 5.1. The City will pay for one-half of cost of eye glasses damaged or broken on the job with a limit of one pair of eye glasses per year.
5.5 COBRA. The City will provide group health care coverage to terminating employees, retirees and eligible dependents per provisions of the federally mandated Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). (Amended 5/28/95)
5.6 Long-term Disability Insurance. Effective September 1, 1998, the City will pay the monthly premium for a long-term disability insurance plan. Terms of insurance shall include, but not be limited to the following: (1) Amount of Insurance: 67% of monthly salary for a maximum of $10,000 per month (4/1/21); (2) Elimination period: benefits will commence on the 91st day of continuous disability; and (3) Integration of Benefits: Full family. (Amended 2022) VI. PUBLIC EMPLOYEES RETIREMENT SYSTEM
6.1 On behalf of its Local 1245, IBEW employees, the City has contracted with the Public Employees’ Retirement System (PERS) for retirement benefits. Employees are designated “local miscellaneous” members of PERS; the retirement coverage formula for this group is 2.5% at 55.
The City has contracted for additional benefits including: (1) “1959 Survivor Benefit” – Level 4, for which the employee pays $.93 per pay period; (2) Post Retirement Survivor allowance (3) One Year Final Compensation; and (4) The City will report the value of the Employer Paid Member Contributions (EPMC) to PERS on all reportable compensation. (Amended 7/1/10) a) Effective the first full pay period following ratification of the Local 1245, IBEW MOU 2010- 2013, employees in classifications represented by Local 1245, IBEW shall pay the 8% employee contribution to PERS. The employee contribution is made by a pre-tax payroll deduction of 8%. (Added 7/1/10)
6.2 For Local 1245, IBEW 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 three highest years. The City shall maintain additional CalPERS benefits as follows: 1) “1959 Survivor Benefits” for which employee shall pay $.93 per bi-weekly pay period; 2) Post Retirement Survivor Allowance; and 3) Credit for Unused Sick Leave. 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)
6.3 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 Local 1245, IBEW 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 ‘Miscellaneous’ classifications shall pay 50% of the total normal cost for the new Miscellaneous PERS pension
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formula of 2% at 62, actual employee contribution determined by PERS (on a pre-tax payroll deduction), with a three year final compensation period.
6.4 Deferred Compensation Program. Starting July 1, 2024, the City will offer a $1,500 per year deferred compensation match to all IBEW members who have completed one year of continuous fulltime service. To receive this benefit, eligible employees must elect to participate in the City’s matching contribution program during open enrollment of each year. If an employee makes a contribution to the employee’s 457 account, the City will make a matching dollar for dollar contribution on a per-pay-period basis up to a maximum of one thousand five hundred dollars ($1,500) per year. (Added 2022).
VII. MEAL
7.1 If an employee is required to work two (2) or more hours before regular starting time, the City will provide such employee with a meal. If an employee is required to work more than six (6) hours before regular starting time, the City will provide such employee with two (2) meals. If an employee is called in on an emergency call out more than two (2) hours before regular starting time, the City will further provide such employee with lunch. If the City requires an employee to perform work for one and one-half (1 ½) hours beyond regular quitting time, the City will provide such employee with a meal and shall continue to provide meals at four (4) hour intervals until the employee is dismissed from work. The cost of such meals and the time taken to consume them shall be at the city’s expense, and shall be taken at a restaurant acceptable to the City and employees, within the City limits unless no restaurant is open at the time provided for meals to be taken. Meal expense limits are established by the City’s Administrative Policy regarding City Paid Meals and Per Diem. Employees who elect not to take the overtime meal shall receive one hour’s pay at the current overtime rate, in lieu of the meal. (Amended 7/1/81, Amended 7/1/00, Amended 7/1/04, Amended 9/5/06)
7.2 When an employee in a physical position is required to work on non-work days the City will provide meals at intervals of four (4) hours; the first meal shall be four (4) hours after employee reports to work.
7.3 When an employee in a clerical position is required to work extended hours for special projects, such as during the financial audit, budget preparation, and year-end-close, the City will provide such employees with a meal.
VIII. PAYMENT FOR TRAVEL
Employees who attend authorized meetings, classes, and seminars, will be paid for travel time, after a total of one hour’s travel on any given day at the appropriate overtime rate of pay, provided that the actual time traveled is outside the employee’s regular work hours. (Added 7/1/88) IX. EDUCATIONAL REIMBURSEMENT
9.1 Both the City and Local 1245, IBEW encourage and support educational and training programs that provide full-time employees the opportunity for personal career development in areas directly related to his/her work. The City will provide reimbursement for courses approved by the City Manager or his designee. The employee shall submit a request in writing stating the course outline and how the course will help on the employee’s job and benefit the City. This written
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request shall be submitted and approved in writing prior to the start of the course. The classes will be taken on the employee’s own time.
9.2 Students/employees who receive a “C” grade or better, or , where letter grades are not given, an employee who successfully passes the course, shall be reimbursed for tuition, fees and material costs directly related to the approved course, not to exceed $900.00 per school year. Beginning with fiscal year 2015-16, the annual amount for education reimbursement will increase to $1,500 per school year.
9.3 If the student/employee leaves the employment of the City within one calendar year of having received such benefit, the employee will pay back to the City three-quarters (3/4) of said semester/quarter reimbursement. If the student/employee leaves the employment of the City within two calendar years of having received such benefit, the employee will pay back to the City one-half (1/2) of said semester/quarter reimbursement. Such amount to be deducted from final paycheck.
9.4 At the time of enrollment, the employee shall sign an agreement to abide by the provisions of paragraphs 9.2 and 9.3. (Added 7/1/00)
X. MILEAGE REIMBURSEMENT
Employees shall receive mileage reimbursement for use of their private vehicle for City business at the maximum mileage reimbursement rate allowed by the IRS. (Amended 7/1/86, Amended 7/1/97) XI. TOOL REIMBURSEMENT
Mechanics will receive a tool reimbursement of $400 per year, payable at the beginning of the fiscal year.
Beginning with fiscal year 2015/2016, tool reimbursement will change to a tool allowance of $475 per year, payable at the beginning each fiscal year. (Amended 7/1/14) XII. BILINGUAL PAY INCENTIVE
12.1 Any Employee who is certified bilingual in Spanish shall receive additional compensation at the rate of $150.00 per calendar month. Any employee who is certified fluent in Spanish shall receive additional compensation at the rate of $200.00 per calendar month. For purposes of payroll, bilingual incentive will be paid at an hourly rate.
Bilingual is defined as being able to understand and speak the Spanish language. Fluent is defined as being able to understand, speak, read, and write in the Spanish language. Qualification for this extra compensation must be proved by certification. Such a certification program to determine standards for each of these levels of fluency shall be developed by the City in cooperation with Local 1245, IBEW within six months of ratification but no later than June 1, 2018. Employees receiving the bilingual pay incentive are required to assist the City in translation services as requested. (Amended 2022)
12.2 Qualifications for this extra compensation may be proven by certification; however, the City may waive this certification requirement if it is otherwise satisfied as to the bilingual qualifications.
Employees receiving bilingual incentive may be tested for recertification on an annual basis.
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7.69 XIII. HOLIDAYS
13.1 Holidays with pay for all regular employees shall be as follows:
New Year’s Day - January 1st
Martin Luther King’s Birthday - 2nd Monday in January
Washington’s Birthday - 3rd Monday in February
Memorial Day - Last Monday in May
Juneteenth - June 19th (Added 2022)
Independence Day - July 4th
Labor Day - First Monday in September
Veteran’s Day - November 11th
Thanksgiving Day - Last Thursday in November
Work Holiday - Day after Thanksgiving
Christmas Eve Day - December 24th
Christmas Day - December 25th
New Year’s Eve Day - December 31st
13.2 When any of the above holidays fall on a Sunday, the next work day following shall be observed as the holiday. When any of the above holidays fall on a Saturday, the work day preceding shall be observed as the holiday.
13.3 If a holiday falls on a regular employee’s non-work day, he/she shall be entitled to have one (1) additional work day off with pay. The “work-day” hours shall be consistent with the hours that would have actually been worked by the employee on the day the holiday falls. Such day shall be scheduled in conjunction with the employee’s next scheduled vacation under the provisions of Article XIII except that such day may be taken prior to his/her next scheduled vacation with the approval of the supervisor in charge. (Amended 2017)
13.4 An employee who is required to work on a holiday in accordance with his/her regular schedule, shall in addition to his/her holiday pay be entitled to compensation at the overtime rate of pay for the shift or work period involved.
13.5 If a holiday falls on a regular employee’s work day, for employees who work an alternative work schedule commonly known as “9/80”, the employee shall receive nine (9) hours holiday pay unless the holiday falls on a day in which they would have been scheduled eight (8) hours as part of the 9/80 work schedule.
XIV. VACATION LEAVE
14.1 Accrual. For purposes of this section, when a part-time employee obtains permanent status, continuous employment includes full-time “temporary” time worked. Employees shall accrue vacation leave as follows:
Length of Hours Accrued Annual
Continuous Service Bi-weekly Equivalents
0-2 years 3.08 10
2+-5 years 3.69 12
5+-10 years 4.62 15
10+-15 years 5.54 18
15+-20 years 6.15 20
20+-25 years 7.07 23
25+ years 25 (Amended 7/1/00)
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14.2 Scheduling. To prevent undue interference with the proper and economic rendition of service to the public, the City may designate a reasonable number of employees within a department who may be on vacation at one time. Vacation leave must receive prior approval by the employee’s department head/supervisor. In the event that more employees than the number designated request vacation for any given day, preference will be given to employees in order of their service with the City with respect to requests made prior to April 1st, and in the order vacation requests are received thereafter.
An employee may defer his/her vacation in one year and add it to his/her vacation in the next following year. In no event shall an employee defer his/her vacation longer than one (1) year, or be permitted to take more than the total of two (2) vacation periods in any one vacation year. If an employee defers his/her vacation under the provisions of this section, he/she shall take it at the convenience of the City and at such time not to interfere with the regular vacation schedules of other employees.
14.3 Pay Upon Separation. Employees separating from the City service, shall be paid at their current hourly salary rate for all unused accrued vacation hours. No such payment shall be made for vacation hours accumulated contrary to the provisions of these sections. Such payment not to exceed the maximum permissible accrual amount of two times the annual accrual rate.
14.4 Election to Cash-out Future Vacation Accruals: An employee may request a cash-out of certain amounts of vacation the employee will accrue in the next calendar year if he/she has a vacation bank of at least 120 hours and has used at least 40 hours vacation within the previous 12 months.
Such requests must be approved by the City Manager.
Effective December 2021, and during the month of December of each year thereafter, there will be an irrevocable election period during which each bargaining unit member may make an irrevocable election to cash out certain vacation that will be accrued during the following year (the “cash-out year”) on the form prescribed by Human Resources. The number of hours that the bargaining unit member intends to cash out must be indicated at that time. Failure to timely submit a properly completed irrevocable election form shall be the same as making no election.
Such requests must be approved by the City Manager.
The cash-out of future vacation accruals is subject to the following conditions:
· An employee must have a minimum balance of one hundred twenty (120) hours of accrued vacation at the time of election.
· An employee must have used at least forty (40) hours of vacation for actual time off from work during the twelve (12) month period preceding the election. · Any vacation time actually taken by the employee during the cash-out year will be subtracted first from any carryover hours which existed at the end of the prior year and then from vacation hours accrued in the current year for which no election has been made.
· An irrevocable election form must be received and accepted by payroll no later than December 31st for the following calendar year.
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· The election to cash-out leave hours in each designated year will be irrevocable and will only apply to the upcoming calendar year. This means that employees who elect to cashout leave hours must cash out the number of accrued hours pre-designated on the election form. The amount of accrual hours designated for cash-out cannot be increased or decreased at the time of cash-out.
· In no event will a cash out payment exceed the value of hours the employee has actually accrued for the period of time between January 1 and the distribution date in any given year.
· All distributions shall be made by separate payroll document whether traditional paper check or electronic direct deposit the first full pay period in either June or December following accrual of the hours designated for cash out.
Employees may sell vacation as described herein for the purposes of donating the proceeds to other employee(s) experiencing issues including but not limited to medical emergencies, (including a medical condition of a family member), an employee’s death or to an employee upon the death of his/her spouse, registered domestic partner or child for the purpose of relieving personal financial difficulties. however such sales must take place during the irrevocable election period described herein. (Amended 2021)
14.5 Voluntary Leave: All regular full-time Local 1245, IBEW employees may voluntarily elect to take between four (4) and forty (40) hours of voluntary leave. Voluntary leaves shall be deducted uniformly over the remaining pay period between the first full pay period following the request of voluntary leave of and the end of the fiscal year.
a) Employees shall schedule their voluntary leave hours with dates to be determined jointly by the employee and his/her affected department head or appointed designee. b) Voluntary leave must be exhausted prior to the utilization of any accrued vacation or Compensatory Time Off (CTO) leave.
c) Any voluntary leave balance shall be cashed out during the pay period that includes June 30th of each year. (Added 2017)
XV. SICK LEAVE PROVISIONS
15.1 Accrual: Permanent full-time employees shall accrue sick leave at the rate of 3.69 hours for each bi-weekly pay period of full-time work. Such accrual shall be prorated for such employees who work less than full-time during a pay period, unless otherwise required by law.
15.2 Usage: Sick leave shall be allowed in the following circumstances:
a) Diagnosis, care, or treatment of an existing health condition of, or preventative care for, an employee or an employee’s family member.
1. 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
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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. b) 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.
c) 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. d) The employee’s receipt of required medical or dental care or consultation which cannot be reasonably scheduled during off-duty hours.
c) Use of Sick Leave:
1. The employee must notify his/her supervisor prior to the commencement of the shift for which compensated sick leave is sought, in accordance with departmental policy.
2. Each employee on sick leave (for personal disability) must produce evidence satisfactory to the City describing the nature of the illness. Such evidence may be in the form of a personal affidavit or shall be in the form of a certification by a medical doctor if requested by a supervisor with prior notice to the employee in any of the following situations: (a) excessive sick leave usage; (b) suspected sick leave abuse; (c) absences of more than three working days; and (d) or other just cause. In the event of an extended non-industrial illness or disability, it is the employee’s responsibility, if requested by the supervisor, to provide medical reports on a scheduled basis.
If the employee is ill or disabled for more than 5 consecutive work days, the employee shall present to the City, before returning to work, a certification by a medical doctor describing the nature and extent of the illness or disability and confirming that the employee has recovered sufficiently to assume light duty, if available, or has recovered fully and is able to perform regular work without restrictions. (Amended 7/1/00)
3. Each employee on sick leave for the care or medical consultation/treatment of a family member will follow the required procedures. The City reserves the right to take such reasonable action it deems necessary to confirm or verify this use of sick leave.
4. Notwithstanding the foregoing sections, the City reserves the right to take such actions as it deems necessary to confirm or verify actual illness or disability.
5. Any employee who has worked for the City for at least 12 months is entitled to 12 weeks of unpaid, job-protected leave under the Family Medical Leave Act of 1993 (FMLA) to attend to the “serious health condition” of the employee’s child, spouse or parent. Said employee may use accrued sick leave under the FMLA. Under Labor Code Section 233,
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and employee may use up to one half of the annual sick leave accrual to care for an “ill” child, spouse or parent. (Added 7/1/00)
15.3 Election Upon Retirement with Respect to Unused Sick Leave Credit: An employee who retires with accumulated and unused sick leave credit shall have 50% of such unused sick leave credit, up to a maximum of (800) hours for less than 30 years of service and up to a maximum of one thousand (1,000) hours for 30+ years of service, automatically converted by the employer into a dollar value based on the employee’s then existing salary (Unused Sick Leave Credit Value). The remaining 50% shall be converted to service credit for all Employees. a) 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.
b) 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. c) 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. (Amended 2021)
15.4 Sick Leave Bonus: Once an employee has accumulated sick leave hours of at least three hundred and fifty (350) hours or more, fifty percent (50%) of their unused annual accrual, up to a maximum of 48 hours, shall be automatically converted into a cash value at the employee’s hourly rate and shall be contributed to each employee’s Post-Employment Health Reimbursement Arrangement (PHRA) plan on the first full pay period of July of each successive fiscal year (sick Leave accruals will occur pursuant Article 15.1 during the entire fiscal year). (Amended 2021)
15.5 Concurrent Holiday and Sick Leave: If a holiday, which an employee is entitled to have off with pay, occurs while an employee is absent on sick leave, he/she shall receive pay for the holiday as such, and it shall not be counted as a day of sick leave.
XVI. LEAVE OF ABSENCE
16.1 Leaves of absence may be granted by the City, not to exceed six (6) months.
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16.2 Inability to return to work due to medical necessity, after an employee’s sick leave has been exhausted, will be considered as an urgent and substantial reason and in such cases a leave of absence will be granted. A leave of absence will commence on and include the first work day on which the employee is absent without pay and terminates with and includes the work day preceding the day the employee returns to work. (Amended 7/1/86)
16.3 All applications for leave of absence shall be made in writing and the approval shall be writing.
Such approval, by the City Manager, must be made prior to the leave. The conditions under which an employee will be restored to employment on the termination of leave of absence shall be clearly stated by the City in conjunction with the granting of the leave of absence. An employee’s status as a regular employee will not be impaired by such leave of absence. If an employee fails to return immediately on the termination of his/her leave of absence or if he/she accepts other employment while on leave without consent of the City, he/she will forfeit the leave of absence and terminate his/her employment with the City. (Amended 7/1/86) XVII. ABANDONMENT OF POSITION
Absence from duty by an employee without proper authorization in excess of five (5) continuous working days shall constitute abandonment of the position by the employee. On the fifth (5th) day of the absence, the department head shall provide written notice to the employee of the abandonment of position status.
The employee shall have five (5) days from the date of the notice to respond in writing. Should the employee fail to respond to the notice or adequately justify the reason for the failure to obtain authorization for the leave, the abandonment of position shall be considered an automatic resignation of employment with the City.
XVIII. PARENTAL LEAVE, FMLA, CFRA AND PDL LEAVES
18.1 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 disability, request a leave of absence as provided in this Memorandum of Understanding.
18.2 Child Care Leave. A regular employee who has exhausted her maternity leave as set forth above or who has adopted a child, may apply for a leave of absence as provided in Section XV of this
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Memorandum of Understanding. In such case, it will be presumed that the employee has presented an urgent and substantial personal reason for such leave to be granted.
XIX. BEREAVEMENT LEAVE
A maximum of five (5) days paid bereavement leave, per occurrence, will be granted regular employees upon death or critical illness of a member of their immediate family including, father, step father, fatherin-law, mother, step mother, mother-in-law, brother, step brother, brother-in-law, sister, step sister, sisterin-law, spouse, registered domestic partner, child, step child, daughter-in-law, son-in-law, grandparents, great-grandparent or grandchild. Days need not be used concurrently. An additional day may be taken if the employee is required to travel 500 miles or more. In addition to this bereavement leave, employees will be allowed to use accrued sick leave or vacation leave requested for bereavement. (Amended 2022) XX. JURY DUTY
No deductions shall be made from the salary of any employee while the employee is on jury duty provided the employee shall reimburse the City any compensation received, less any mileage and expense allowance, received as a juror. Employees shall inform the Department Head/Supervisor of impending jury duty within two working days of receiving said order. (Amended 7/1/88) XXI. COMPENSATION FOR ILLNESS OR INJURY INCURRED IN COURSE OF
EMPLOYMENT
When an employee is compelled to be absent from their work duty due to injuries or illness arising out of or in the course of this employment, they shall be eligible for supplemental benefits for a period of ninety (90) days. Such benefits shall commence with the first day of absence immediately following the day of disability. The amount of supplemental payment payable for each day of absence shall be ninety percent (90%) of the employee’s basic weekly wage rate divided by five (5), less the sum of any payment to which they may be entitled under the Worker’s Compensation and Insurance Chapters of the State Labor Code.
If at the end of said ninety (90) days, an employee is still unable to return to work, they may use their accumulated sick leave to supplement any payment to which they may be entitled under the Worker’s Compensation and Insurance Chapters of the State Labor Code.
XXII. SAFETY
22.1 The City desires to maintain a safe place of employment for City employees and to that end, shall make all reasonable provisions necessary for the safety of employees in the performance of their work.
In order to accomplish this, the City shall:
a) Take steps to assure that capable, responsible supervision regularly makes inspections of all operations on the job site.
b) Take adequate steps to control job hazards; both unsafe physical conditions, including methods and processes, and unsafe actions of people.
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c) Assure that “toolbox” or “tailgate” safety meetings are held on all jobs in order to brief the employees on hazards connected with the work to be performed, to plan the work and to emphasize safety in the performance of the work.
e) Hold regular monthly safety meetings for the purpose of reviewing accidents and preventing their recurrence, eliminating hazardous conditions, familiarizing employees with safe work procedures and applicable State Safety Orders and providing training in first aid. Monthly safety meetings shall be a minimum of one (1) hour long. f) City management shall cooperate with the Safety Chairman in preparing an agenda for the monthly meetings.
22.2 Relative to the Electric Department, the following provisions apply:
a) As determined by the Electric Utility Director, employees will not be required to work with energized circuits during rainy weather except in extreme emergencies where there exists a threat to life or property. In the event that a disagreement arises between the employees and the City over what constitutes rainy weather, the Electric Utility Director will personally visit the work site before directing employees to work with energized circuits. During rainy weather, employees will be required to perform other miscellaneous duties in support of other City functions or may receive first aid, safety, or other training and instructions as directed by the Director. (Added 7/1/81)
b) Only qualified employees shall take clearance on electrical equipment. (Added 7/1/86)
22.3 The City at its expense shall furnish all employees who so require in order to perform their work in a safe manner safety glasses, either regular or prescription, and/or safety goggles. The City at its expense shall replace damaged safety glasses if turned into supervisor/department head. Lost glasses will be replaced once per year. (Amended 7/1/86)
22.4 The City shall provide all affected employees with protective footwear in accordance with Cal OSHA Standard §3385 and Fed OSHA standard §1910.136. (Amended 2017)
22.5 The City shall pay for employees to receive Hepatitis A and B shots. Immunizations shall be voluntary for office personnel and mandatory for field personnel, unless otherwise directed by a physician. (Amended 7/1/10)
22.6 The City, at its expense, shall furnish employees in the following classifications: Wastewater Operators, Utility Operator, Utility Operator In-Training, Park Maintenance and Utility Workers, pants and tee-shirts to wear at all times when on duty. The City shall be responsible for the normal maintenance of City supplied work clothes on a weekly basis. (Added 7/1/00; Amended 7/1/04)
XXIII. DISCIPLINE
23.1 Action by City. The City may discharge, suspend, demote or reduce in salary, any permanent employee for reasons including but not limited to dishonesty, insubordination, incompetence, willful negligence, failure to perform work as required or failure to comply with or violation of the City’s rules regarding safety, conduct and operations, chronic absenteeism, misstatement of fact on an application or other personal document, falsification of records, unfitness for duty, failure to comply with the requirements of a failed drug test under the City’s Department of
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Packet Pg. 114 Attachment: Exhibit A: IBEW MOU 2022-2025 (3686 : MOU Approval - IBEW)
Transportation drug and alcohol testing program and absence without authorized leave. Any discharged, suspended or demoted employee, or an employee whose salary has been reduced for disciplinary reasons, shall be furnished the reasons for such action in writing. In the event an employee feels that the discharge, suspension, demotion or salary reduction is unjust she/he shall have the right to appeal the case through the grievance procedure within five (5) working days from the date of the actual disciplinary action. (Amended 7/1/00)
23.2 Notice of Disciplinary Action. The City shall provide the affected employee with written notice prior to taking disciplinary action, except where circumstances dictate the City taking immediate action to remove the employee from the work place. In such cases, written notice, as set forth below, shall be provided the employee within two (2) working days of the action.
In all cases, written notice of disciplinary action shall be served on the employee personally or by registered mail, return receipt, with a copy of the notice to be placed in the employee’s personnel file. The written notice shall contain the following information:
a) The type of disciplinary action.
b) The effective date of the action.
c) The reason or cause for the action.
d) That the employee shall be furnished copies of all material upon which the action is based. e) That the employee has the right to respond, either orally or in writing, to the authority initially imposing the discipline.
Except in instances where disciplinary action must be imposed immediately, the notice shall be provided the employee no later than five (5) working days before the disciplinary action is to be effective. Where immediate disciplinary action has been imposed, such action will not become final until the aforementioned notice has been provided no less than five (5) working days from the receipt of the notice to respond to the authority initially imposing the discipline.
Once the proposed disciplinary action has been imposed, the affected employee shall have the right to appeal. Such appeals shall be filed directly at the third step of the grievance procedure set forth in this Memorandum.
Probationary employees may be discharged for any reason which, in the sole opinion of the City, is just and sufficient.
XXIV. GRIEVANCE PROCEDURE
24.1 Definition of Grievance. A grievance shall be defined as any dispute which involves the interpretation or application of any provision of this Memorandum of Understanding during its term.
24.2 Steps in Grievance Procedure.
Step 1 – An employee who has a grievance may individually or through the shop steward bring it to the attention of his/her immediate supervisor/division head within thirty (30) calendar days of the occurrence of the act which is the basis of the dispute or the date the grievant reasonably
6.F.b
Packet Pg. 115 Attachment: Exhibit A: IBEW MOU 2022-2025 (3686 : MOU Approval - IBEW)
became aware, or should have reasonably become aware, whichever date is later. If the employee and the immediate supervisor/division head are unable to resolve the grievance at this step within five (5) working days of the date of the grievance is raised with the immediate supervisor, the employee shall have the right to submit a formal grievance as set forth in Step 2.
Step 2 – An employee dissatisfied with the decision of the immediate supervisor in Step 1, may submit the grievance in the manner provided below to his/her department head within seven (7) days from the date of the immediate supervisor’s decision. If the supervising officer is the department head, the written grievance shall be submitted to the Assistant City Manager. The department head shall respond to the grievance, in writing, within seven (7) working days from the date of its receipt.
a) The name of the grievant;
b) The grievant’s department and specific work site;
c) The name of the grievant’s immediate supervisor;
d) A statement of the nature of the grievance including date and place of occurrence; e) The specific provision, policy or procedure alleged to have been violated; f) The remedies sought by the grievant;
g) The name of the individual organization, if any, designated by the grievant to represent him/her in the processing of the grievance. However, in no event shall an employee organization other than the one which formally represents the position occupied by the grievant be designated as the grievant’s representative.
Step 3 – If the employee is dissatisfied with the decision of the department head in Step 2, she/he may submit the grievance to the Assistant City Manager or other designated City official within ten (10) working days from receipt of the department head’s response. The Assistant City Manager, or other designated City official, shall respond to the grievance in writing within ten (10) working days of its receipt. Within this period, the Assistant City Manager, at this discretion, may conduct an informal hearing involving the parties to the dispute.
Step 4 – If the grievance is not settled at Step 3, it shall be submitted to the State Conciliation Service for advisory arbitration. The representative of the Conciliation Service shall be selected by the parties from a panel of three (3) submitted by the State Conciliation Service and each party shall have the right to challenge one (1) name from the panel, first challenge to be determined by lot, and the remaining name shall be the advisory arbitrator. The decision of the arbitrator shall not be binding on either party but shall be advisory to the City Manager whose decision is considered final and binding.
24.3 Duty of the Arbitrator. Except when an agreed statement of facts is submitted by the parties, it shall be the duty of the arbitrator to hear and consider evidence submitted by the parties. The decision of the arbitrator shall be based solely on the interpretation of the appropriate provisions of the Memorandum of Understanding applicable to the grievance and the arbitrator shall not add to, subtract from, modify or disregard any of the terms or provisions of the agreement.
The provisions for arbitration are not intended and shall not be construed to empower an arbitrator to change any condition of employment, specifically covered by the Memorandum of Understanding or to revise, modify or alter, in any respect, any provision contained in the Memorandum.
24.4 Payment of Costs. Each party to a hearing before an arbitrator shall bear his/her own expenses in connection therewith. Either party shall have the right to a reporter’s transcript of the hearing provided that this cost is borne by the party requesting. If the other party elects to utilize a copy of
6.F.b
Packet Pg. 116 Attachment: Exhibit A: IBEW MOU 2022-2025 (3686 : MOU Approval - IBEW)
the transcript, the entire costs shall be divided equally. All fees and expenses of the arbitrator shall be borne one-half by the City and one-half by the grievant.
24.5 Effective of Failure of Timely Action. It is the desire of the parties that grievances should be resolved on their merits and not for failure to meet specified time periods. However, timely resolution of grievances is also desirous, therefore:
a) Should an employee fail to file an appeal within the required time period, at Step 2, 3 or 4, the City will so notify the employee. If the employee fails to file an appeal within an additional five working days, the grievance will be considered abandoned. b) Should the City fail to respond to a grievance within the required time period, at any level, the union will so notify the appropriate supervisor/manager with a copy to the City Manager.
If the City fails to respond to the grievance within an additional five working days, the grievance shall be considered resolved in favor of the employee, but will not have any precedent setting value. The time limits may be extended by mutual agreement between the representative of the employee organization and the representative of the City. (Amended 7/1/86)
XXV. SENIORITY
Seniority is defined as total length of continuous service with City. In determining an employee’s seniority, the continuity of his/her service will be deemed to be broken by termination of employment by reason of: (1) resignation; (2) discharge for cause; (3) lay-off for more than one (1) year; (4) failure to return immediately on the expiration of a leave of absence or acceptance of other employment while on leave of absence, or (5) absence without pay, without notifying the City within five (5) work days, unless a leave of absence has been obtained. Continuity of service will not be broken and seniority will accrue when an employee: (1) is inducted, enlists or is called to active service in the Armed Forces of the United States, or service in the Merchant Marines, under any Act of Congress which provides that the employee is entitled to pre-employment rights; (2) is on duty with the National Guard, (3) is absent due to industrial injury, (4) is on leave of absence, (5) is on maternity leave and (6) is absent due to layoff for a period of less than a year. (Amended 7/1/00)
XXVI. PROBATION PERIODS
26.1 Duration. All original and promotional appointments shall be tentative and subject to a probationary period of not less than six (6) months of actual service from the date of probationary appointment or promotion and may be extended by the City Manager or Department Head for a period of not to exceed an additional six months. The City shall prepare and give copies of an evaluation report to each probationary employee after the 3rd and 5th months of each probationary period.
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 from the position for which probation is being served.
26.2 Rejection. The City Manager may terminate a probationary employee at any time during the probationary period without right of appeal in any manner and without recourse to the procedures provided in Section XXII-Grievance hereof, unless the employee alleges that the termination was due to discrimination prohibited by City, State or Federal Statutes or Regulations. If such discrimination is alleged, the appeal or grievance shall be decided solely on the basis of whether or not the termination was due to discrimination; and unless it is determined that there was
6.F.b
Packet Pg. 117 Attachment: Exhibit A: IBEW MOU 2022-2025 (3686 : MOU Approval - IBEW)
discrimination, the person or persons hearing the appeal or grievance shall not substitute their judgment for that of the appointing authority.
26.3 Promotional Probation. An employee who previously completed the requisite probationary period and who is rejected because of subsequent probationary period for a promotional appointment, shall be reinstated to the former position from which the employee was promoted, provided that this Subsection shall not be construed so as to prohibit the City from discharging any employee during a subsequent promotional probationary period for those reasons and causes set forth in Section XXI-Discipline, of the Memorandum of Understanding.
26.4 Promotional Transfers. Employees who transfer to new position shall be required to undergo a new probationary period in the position into which transferred.
XXVII. VACANCIES
27.1 The City will post all job announcements for vacant positions subject to this MOU in-house for five (5) working days, and accept applications from any City employees. (Amended 2022) a) If one or more applicants are determined to possess the minimum qualifications for the vacant position; the following procedure may be utilized:
Option 1 the qualified employee with the greatest amount of seniority may be appointed to the position; or
Option 2 a closed examination may be conducted. Applicants will be considered in order of their total score, provided however, if two candidates are determined to be relatively equally qualified, the employee with the greatest seniority will be given preference. b) If the department head determines that it is not in the best interest of the City to utilize either Option 1 or 2 above, they may request in writing that the City Manager begin an open competitive recruitment. Such written request will be sent to those employees who applied, the employees’ Local 1245, IBEW representative and Local 1245, IBEW. Either Local 1245, IBEW representative or individual applicants may submit to the City Manager, within five working days, a written response to the department head’s memo. The City Manager will evaluate all data and, at their sole discretion, will make the determination to open or close the recruitment.
c) If a determination is made to hold a closed recruitment, then provisions of Option 2 as stated above will apply.
d) If a determination is made to hold an open, competitive recruitment, the City will appoint from the top five candidates. City services will be considered along with tests results.
XXVIII. DEMOTION AND LAYOFF
28.1 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) weeks’ notice of layoff. When probationary employees are to be laid off, no notice of layoff is required. Layoff 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 he/she is qualified to perform the duties of the lower classification, and if his/her seniority is greater than that of the employee in the lower classification.
6.F.b
Packet Pg. 118 Attachment: Exhibit A: IBEW MOU 2022-2025 (3686 : MOU Approval - IBEW)
28.2 Regular employees who are laid off will be given preference in filling future vacancies if they keep the City advised of their current address.
28.3 The City guarantees no layoffs for Local 1245, IBEW Members during the 2012-2013 fiscal year. (Added 7/1/12)
28.4 Side letter dated 7/6/2011 regarding Engineering Aide has been incorporated into this MOU with the understanding that # 7 of the side letter is no longer in force or effect.
28.5 Should, during the term of this extension, July 1, 2020 – June 30, 2022, it become necessary for the City to lay off regular employees for financial reasons, the City shall meet and confer upon the request of the Union to consider any proposal(s) advanced as an alternative to layoff and/or the impact of such layoff, including, but not limited to a proposal to reopen the MOU to negotiate Article XXX. UNPAID FURLOUGHS (Added 2021).
XXIX. TEMPORARY AND PART-TIME EMPLOYEES
29.1 All provisions of this Memorandum of Understanding shall apply to all full-time permanent employees within the bargaining unit unless otherwise specified herein. Any employee who works an average of thirty-five hours a week or greater for six months shall be considered a fulltime employee. (Amended 2022)
29.2 Temporary, part-time and seasonal employees are not to exceed 1,000 hours worked in a year.
29.3 Regular part-time employees who work an average of 30 hours per week or greater (but less than 35 hours per week) for greater than six months shall be entitled to the following benefits:
a) Accrual of vacation and sick leave: employees who work between 30 and 35 hours will earn vacation at 63% of the full-time accrual rate and sick leave shall be earned at the rate of one (1) hour of sick leave for every thirty (30) hours worked and be allowed use of at least twenty-four (24) hours or three (3) days consistent with the “Healthy Workplace Healthy Family Act of 2014 (AB 1522)”; employees who work between 35 and 39 hours per week will earn vacation and sick leave at 87% of the full-time accrual rate. (Amended 2022) Sick leave accrual begins on the first day of employment and an employee may use accrued paid sick days beginning on the 90th day of employment. (Amended 2017) b) Holidays: when a holiday falls on a regular part-time employee’s regularly scheduled work day, they will receive compensation at the straight-time rate for the number of hours regularly worked.
c) Health and Welfare: employees may enroll in health, dental, vision, and life insurance plans offered to full-time employees. Regular part-time employees shall pay 50% of the premium costs and the City will pay 50%.
29.4 All temporary, part-time and seasonal employees hired to full-time status will be given credit for prior service with the City of Healdsburg for the purpose of incorporating them into the Longevity/Merit Pay Plan. Prior service credit for longevity will be applied as follows:
a) Temporary, part-time and seasonal employees hired to full-time status before 7/1/2011 will be given longevity credit to their initial hire date.
6.F.b
Packet Pg. 119 Attachment: Exhibit A: IBEW MOU 2022-2025 (3686 : MOU Approval - IBEW)
b) Temporary, part-time and seasonal employees hired to full-time status on or after 7/1/2011 will be given longevity credit based on total hours worked divided by 2080 hours to determine amount of longevity service credit the employee is eligible for. Prior service credit will be used to establish the employee’s longevity date.
XXX. OUTSIDE EMPLOYMENT
No full-time employees of the City of Healdsburg 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 accepting any other position or engaging in any other business the employee will obtain the approval of this department head. If the department head finds that any particular employment violates this policy, he/she shall withhold his/her approval of such outside employment. The decision of the department head is subject to review by the City Manager at the request of the employee. The decision of the City Manager shall be final.
XXXI. NO STRIKE
31.1 Continuous and uninterrupted service by the City and its employees to the citizens and orderly collective bargaining relations between the City and its employees being essential considerations of this Agreement, Local 1245, IBEW agrees on behalf of itself and its members, individually and collectively, that there shall not be any strikes, picketing, boycotting, work stoppages, sit downs, or slowdowns or a concerted refusal to render services at any time during the term of this Agreement.
31.2 Employees shall not be entitled to any benefits or wages whatsoever while they are engaged in a strike or work stoppage.
XXXII. MANAGEMENT RIGHTS
32.1 The Management of the City and its business and the direction of its working forces are vested exclusively in the 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 qualifications of employees; to regulate quality and quantity of production; and to determine the content of job descriptions, provided, however, that all of the foregoing shall be subject to the provisions of this Memorandum of Understanding. (Added 7/1/77)
32.2 In the interest of economy, job security, timeliness and quality control, all City departments will make every reasonable effort to use City employees for all work. The parties explicitly recognize the benefits of a productive, motivated City work force. The City may contract out work covered under this Agreement provided: (a) such contracting out of work will not cause a lay-off of employees covered under this Agreement, or (b) all of the following conditions are met:
1. The function or functions subject to being contracted out have been part of a gain sharing program agreed upon by the City and Local 1245, IBEW for at least twelve (12) months prior to the RFP; and
6.F.b
Packet Pg. 120 Attachment: Exhibit A: IBEW MOU 2022-2025 (3686 : MOU Approval - IBEW)
2. Notification has been given to Local 1245, IBEW and the City’s intent to submit a RFP at least thirty (30) days prior to submission of the RFP; and
3. The RFP is based upon prevailing wage rates for Sonoma County in the area of discipline for which the contract is to be let; and
4. If there are qualified bids that are at least 10% lower than the projected cost to the City of performing the functions in question with City employees, the affected employee or employees and Local 1245, IBEW will be given six (6) months in which to reduce the projected cost to the City of performing the function in question with City employees to 110% of the qualified bid, while meeting all requirements of bid; and
5. If work is contracted out under this subsection, any employee who does not affect a displacement pursuant to Section 27.1 of this Agreement and is laid off will be paid a Severance Allowance in an amount equal to two weeks’ pay for five to nine years of service; four weeks’ pay for ten to fourteen years of service; six weeks’ pay for fifteen years or more of service. (Added 7/1/95)
XXXIII. WAIVER AND FINALITY
The provisions set forth above are final, and no change or modification shall be offered, urged or otherwise presented by Local 1245, IBEW, prior to June 2013, provided, however, that nothing herein shall prevent the Local 1245, IBEW and the City Manager from meeting and conferring and making modifications here by mutual consent. (Added 12/4/78, Amended 7/1/79 and 7/1/80) XXXIV. SEPARABILITY
In the event that any provision of this Memorandum of Understanding is declared by a Court of competent jurisdiction to be illegal or unenforceable that provision of this Memorandum of Understanding shall be null and void, but such nullification shall not affect any other provisions of this Memorandum of Understanding, all of which other provisions shall remain in full force and effect. (Added 12/4/78)
XXXV. DURATION
35.1 The foregoing “Rules Governing Employment Conditions, Salaries Benefits for Employees of the City of Healdsburg Represented by Local 1245, IBEW”, shall take effect upon their adoption by the City Council of the City of Healdsburg and shall remain in effect unless changed by the City Council in accordance with the meet and confer provisions of the Government Code of the State of California.
35.2 The City shall not, during the life of this agreement, abrogate or change any condition of employment within the scope of the meet and confer process unless provided for within agreement or without first meeting and conferring in good faith.
35.3 It is the intent of the parties to commence negotiations no later than 90 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 no later than 60 calendar days prior to the expiration date of the current MOU.
35.4 Because of time restraints in compiling, reviewing and adopting the annual budget, every effort will be made to conclude meet and confer sessions prior to the last Monday in May of each year.
6.F.b
Packet Pg. 121 Attachment: Exhibit A: IBEW MOU 2022-2025 (3686 : MOU Approval - IBEW)
35.5 This Memorandum of Understanding shall be effective July 1, 2022, and shall remain in full force and effect up to and including June 30, 2025. By written agreement, the parties may at any time during the life of this Memorandum of Understanding open negotiations on any issue and may substitute new agreements for any provision of the Memorandum. (Amended 2022) XXXVI. RATIFICATION
The designated representatives of the City of Healdsburg and Local Union 1245, International Brotherhood of Electrical Workers having met and conferred in good faith regarding wages, hours, and other terms and conditions of employment, submit the following amendments to the “Rules Governing Employment Conditions, Salaries and Benefits for Employees of the City of Healdsburg represented by Local 1245 IBEW” to the City Council of the City of Healdsburg for its determination with the recommendation that they be adopted.
Signed this _____________, 2022 by the following persons:
City of Healdsburg Designated Representatives - Local Union 1245, IBEW ____________________________________ ____________________________________________ Jeff Kay, City Manager Robert Dean, Business Manager
___________________________________________
Kim Camatti, I.B.E.W. Business Representative
____________________________________________
Jason Hageman, Shop Steward
____________________________________________
Scott Mann, Shop Steward
____________________________________________
Ethan Cottrell, Shop Steward
____________________________________________
John Sanneman, Shop Steward
Approved by City Council Resolution No. __-2022.
6.F.b
Packet Pg. 122 Attachment: Exhibit A: IBEW MOU 2022-2025 (3686 : MOU Approval - IBEW)
EXHIBIT A
Effective 7/1/2022
INT'L BROTHERHOOD OF ELECTRICAL WORKERS
(IBEW)
A step B step C step D step E step
Accounting Assistant I $4,517.05 $4,742.91 $4,980.06 $5,229.07 $5,490.51 Accounting Assistant II $4,950.40 $5,210.10 $5,468.37 $5,747.56 $6,039.80 Accounting Technician $5,747.56 $6,039.80 $6,348.68 $6,671.81 $7,012.78 Administrative Technician $6,348.68 $6,671.82 $7,012.77 $7,370.36 $7,745.77 Assistant Planner $6,246.68 $6,559.01 $6,886.97 $7,231.32 $7,592.88 Building Inspector I $7,082.87 $7,444.02 $7,824.18 $8,223.34 $8,642.71 Building Inspector II $7,518.86 $7,902.59 $8,305.33 $8,728.24 $9,173.75 Building Maintenance Technician I $5,040.91 $5,292.96 $5,557.61 $5,835.48 $6,127.25 Building Maintenance Technician II $5,523.02 $5,804.57 $6,100.39 $6,411.64 $6,739.53 Development Services Technician I $5,796.40 $6,086.22 $6,390.53 $6,710.06 $7,045.56 Development Services Technician II $6,348.68 $6,671.82 $7,012.77 $7,370.36 $7,745.77 Electric Engineering Technician I $7,480.84 $7,855.07 $8,248.29 $8,660.54 $9,094.16 Electric Engineering Technician II $7,863.38 $8,256.61 $8,670.03 $9,103.66 $9,558.66 Electric Coordinator/Inspector $8,055.99 $8,458.79 $8,881.72 $9,325.82 $9,792.10 Electric Line Foreman $10,758.47 $11,296.40 $11,861.20 $12,454.27 $13,076.98 Electric Materials Technician $6,765.61 $7,103.89 $7,459.08 $7,832.02 $8,223.63 Electric Meter Technician $8,264.93 $8,678.35 $9,111.97 $9,568.17 $10,046.93 Electric Meter Technician- Apprentice $6,566.14 $6,894.45 $7,239.17 $7,601.13 $7,981.19 Engineering Technician $6,348.68 $6,671.82 $7,012.77 $7,370.36 $7,745.77 Facility Worker $4,526.29 $4,756.76 $5,000.30 $5,254.54 $5,523.02 Fleet Mechanic $6,942.69 $7,297.89 $7,669.74 $8,060.58 $8,471.64 Geographic Information System Technician $7,118.51 $7,474.91 $7,849.13 $8,241.17 $8,653.40 Industrial Electrician $8,552.87 $8,980.51 $9,429.52 $9,901.01 $10,396.06 Industrial Mechanic $6,977.13 $7,326.40 $7,692.31 $8,077.22 $8,481.14 Instrumentation Technician $8,552.87 $8,980.51 $9,429.52 $9,901.01 $10,396.06 Information Technology Engineering Specialist $7,012.29 $7,362.91 $7,731.06 $8,117.61 $8,523.49 Laboratory Analyst $7,147.15 $7,504.52 $7,879.74 $8,273.72 $8,687.41 Lineworker/Troubleshooter $9,737.09 $10,223.95 $10,735.14 $11,271.90 $11,835.48 Lineworker/Troubleshooter Apprentice $7,076.22 $7,430.04 $7,801.53 $8,191.60 $8,601.18 Mechanic - Equipment Service Writer $7,981.00 $8,388.48 $8,816.16 $9,265.22 $9,738.04 Office Assistant I $4,383.89 $4,603.08 $4,833.23 $5,074.90 $5,328.64 Office Assistant II $4,804.28 $5,050.20 $5,307.99 $5,577.67 $5,863.98 Park Maintenance Worker I $4,950.40 $5,203.45 $5,468.37 $5,747.56 $6,039.80 Park Maintenance Worker II $5,413.73 $5,690.53 $5,980.41 $6,285.72 $6,606.48 Park Maintenance Foreman $6,100.39 $6,411.64 $6,739.53 $7,082.87 $7,444.02 Payroll Technician $6,348.68 $6,671.82 $7,012.77 $7,370.36 $7,745.77
6.F.b
Packet Pg. 123 Attachment: Exhibit A: IBEW MOU 2022-2025 (3686 : MOU Approval - IBEW) Public Works and Utilities Materials Technician $6,100.39 $6,411.64 $6,739.53 $7,082.87 $7,444.02 Public Works Field Technician $7,082.87 $7,444.02 $7,824.18 $8,223.34 $8,642.71 Public Works Inspector $7,082.87 $7,444.02 $7,824.18 $8,223.34 $8,642.71 Recreation Coordinator I $4,340.38 $4,557.38 $4,785.27 $5,024.53 $5,275.75 Recreation Coordinator II $4,795.67 $5,035.44 $5,287.20 $5,551.58 $5,829.15 Senior Accounting Assistant $5,468.37 $5,747.56 $6,039.80 $6,348.68 $6,671.82 Senior Building Inspector $8,728.24 $9,173.75 $9,641.82 $10,133.66 $10,650.55 Senior Electric Engineering Technician $9,263.35 $9,726.53 $10,212.86 $10,723.49 $11,259.67 Senior Laboratory Analyst $7,896.87 $8,291.71 $8,706.29 $9,141.61 $9,598.69 Senior Public Works Inspector $8,728.24 $9,173.75 $9,641.82 $10,133.66 $10,650.44 Utility Conservation Analyst $7,818.47 $8,209.41 $8,619.87 $9,050.87 $9,503.41 Utility Maintenance Foreman $6,404.41 $6,724.65 $7,060.88 $7,413.81 $7,784.63 Utility Operator $7,824.18 $8,223.34 $8,642.71 $9,083.46 $9,546.78 Utility Worker I $4,950.40 $5,210.10 $5,468.37 $5,747.56 $6,039.80 Utility Worker II $5,796.40 $6,086.22 $6,390.53 $6,710.06 $7,045.56 Wastewater Operations Foreman $8,642.71 $9,083.46 $9,546.78 $10,033.87 $10,545.89 Water Operations Foreman $8,642.71 $9,083.46 $9,546.78 $10,033.87 $10,545.89 This salary schedule is for information purposes only. Employees should refer to the Council-approved Salary Schedule as posted online.
6.F.b
Packet Pg. 124 Attachment: Exhibit A: IBEW MOU 2022-2025 (3686 : MOU Approval - IBEW)
CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: August 1, 2022
SUBJECT: Lease Amendment for Tayman Golf Course
PREPARED BY: Andrew Sturmfels, Administrative Services Director STRATEGIC INITIATIVE(S):
Maintain and Improve Infrastructure and Facilities
Provide Resident-Driven Community Services
RECOMMENDED ACTION(S):
Adopt a Resolution approving an amendment to the Tayman Park Golf Group Lease Agreement for immediate and long-term capital improvements extending the lease an additional eight years to 2052 and authorizing the City Manager to execute the amendment on the City’s behalf.
COMMUNITY ENGAGEMENT/OUTREACH:
Not Applicable.
BACKGROUND:
The Healdsburg Golf Club at Tayman park is a 9-hole regulation length municipal golf course owned by the City of Healdsburg. The course is a par 35 layout with a distance of approximately 2,700 yards from the back tees, with golfers having the option to play either 9 or 18 holes. There is also a three-level golf practice range with 18 stations, a pro shop, special event space, and clubhouse facility.
The course is leased by the City to the Tayman Park Golf Group (TPGG), a regional golf course management and operating firm. The original lease was initiated in 1986 between the City and Silband Sports Corporation and was assigned to TPGG in 1999. Over the last 23 years there have been a series of amendments to the lease. The current lease has 22 years remaining on the lease term, with an expiration date of August 19, 2044.
In the Spring of 2022, TPGG reached out to the City to see if the City would be interested in extending the current lease by an additional 8 years, for a total of 30 years remaining. TPGG obtained an Economic Impact Disaster Loan (EIDL) from the United States Small Business Administration. The EIDL program supports small businesses recovery from COVID-19 by providing low-interest loans to small businesses, with a primary goal of reducing debt costs and
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increasing working capital for operating expenses. TPGG has expressed a desire to extend the lease as part of an effort to align the lease length with the repayment terms of the recently refinanced debt. As part of considering this request, the City consulted with Pro Forma Advisors LLC, a firm who specializes in market feasibility analysis for specialty facilities, including golf courses. The final report from Pro Forma Advisors is included in this agenda item as Attachment A.
DISCUSSION/ANALYSIS:
The proposed lease amendment is attached as Exhibit A to the Resolution and includes the following provisions:
1. Term: Extends current term by 8 years, expiring on August 19, 2052.
2. Long Term Capital Improvement Funding
a. New language requiring TPGG to dedicate 3% of gross revenue for capital improvement and replacement.
b. A requirement to report to the City annually the amount set aside for improvements, amounts spent, and amount carried over.
3. $350,000 in committed improvements and replacements, including:
a. Repaving and Sealing of all Cart Paths and Parking Lot ($202,500). b. Construction/Shaping/Sodding of new tees on Holes 1 and 7, including new irrigation compatible for use with recycled water ($40,000). c. Additional Improvements to be determined ($107,500). i. A requirement to report to the City on additional improvements until amount is expended.
4. Amending the provisions related to assignment of the lease to:
a. Allow TPGG to transfer interests between shareholders or owners. b. Allow TPGG to transfer interests between a shareholder and a member of their immediate family.
c. Requiring any other change in ownership to be approved by the City.
Staff believes that the revised terms for assignment of the lease to another party are particularly beneficial to the City. Currently, the City has minimal control over any proposed assignment, meaning that the course could conceivably be assigned to another operator without input from staff, the City Council or the community. The proposed language will significantly expand the City’s ability to review and approve a proposed assignment in the future.
TPGG has successfully operated the Healdsburg Golf Club for many years. As noted in the consultant report, the condition of the golf course and support facilities has improved markedly since the lease was assigned to TPGG, totaling about $2 million over the past 20 years, combined with more intensive and efficient maintenance and operating practices.
Based on the analysis provided by Pro Forma Advisors, the City has negotiated appropriate terms with TPGG to effectuate the requested lease extension through an amendment to the lease.
Staff is recommending the Council approve the lease amendment.
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ENVIRONMENTAL STEWARDSHIP:
TPGG has confirmed that the course is ready to receive recycled water for irrigation when the City delivers the Purple Pipe project currently beginning design.
ALTERNATIVES:
Council can deny the lease amendment, or Council can request a change to the negotiated terms of the proposed lease amendment.
FISCAL IMPACT:
There is no fiscal impact to the City. By establishing a mechanism for long term capital improvement funding, the City ensures that the Golf Course will remain in good repair over the life of the lease.
ENVIRONMENTAL ANALYSIS:
Pursuant to Title 14, the California Code of Regulations, Section 15302(c) 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.
ATTACHMENT(S):
Resolution
Exhibit A: Tayman Golf Lease Amendment
Attachment A: Pro Forma Advisors Market Analysis
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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
TAYMAN PARK LEASE AGREEMENT FOR IMMEDIATE
AND LONG-TERM CAPITAL IMPROVEMENTS AND
EXTENDING THE LEASE AN ADDITIONAL EIGHT YEARS
TO 2052, AND AUTHORIZING THE CITY MANAGER TO
EXECUTE THE AMENDMENT ON THE CITY’S BEHALF
WHEREAS, in 1986, the City of Healdsburg entered into a lease with Silband Sports Corporation to operate the Tayman Park Golf Course, and WHEREAS, in 1999, the lease was assigned to Tayman Park Golf Group; and WHEREAS, Tayman Park Golf Group has successfully operated the golf course for 23 years; and
WHEREAS, Tayman Park Golf Group requested a lease extension of eight years to 2052 in order to align the lease term with recently refinanced debt; and WHEREAS, the City consulted with Pro Forma Advisors, a firm specializing in market feasibility analysis for specialty facilities to ensure the long term needs of the City would be met with a lease extension; and
WHEREAS, the City has negotiated a lease amendment with Tayman Park Golf Group consistent with the findings from Pro Forma Advisors; and WHEREAS, in return for the lease extension, Tayman Park Golf Group will be investing over $350,000 into the golf course, establish a long-term capital improvement fund, report to the City annually on long term improvements, and
WHEREAS, Tayman Park Golf Group has agreed to limit assignment of the lease to only current owners and/or designated family members; and
WHEREAS, any other transfer of interested would require Council Approval; 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.
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Packet Pg. 128 Attachment: Resolution (3688 : Tayman Golf Course Lease Amendment) Resolution No. xx-2022
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg hereby:
1. Approves the amendment to the Tayman Park Lease Agreement.
2. Authorizes the City Manager to execute the amendment on the City’s behalf.
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 1 st day of August
2022, by the following vote:
AYES: Councilmembers: ( )
NOES: Councilmembers: ( )
ABSENT: Councilmembers: ( )
ABSTAINING: Councilmembers: ( )
SO ORDERED: ATTEST:
________________________________ ___________________________________ Osvaldo Jimenez, Mayor Raina Allan, City Clerk
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Packet Pg. 129 Attachment: Resolution (3688 : Tayman Golf Course Lease Amendment) 1 AMENDMENT TO
TAYMAN PARK LEASE AGREEMENT
(Healdsburg Contract #CS002-012)
THIS AMENDMENT TO TAYMAN PARK LEASE AGREEMENT (“Amendment”) is executed this day of June ____, 2022 (“Effective Date”), by and between the CITY OF HEALDSBURG, a municipal corporation (“City”), and TAYMAN PARK GOLF GROUP, INC., a California corporation (“Lessee”). City and Lessee are hereinafter sometimes referred to collectively as the “Parties.” RECITALS:
A. City leases the property commonly known as the Tayman Park Golf Course, 927 South Fitch Mountain Road, Healdsburg CA (being Sonoma County APN 002-361-004 and hereinafter referred to as the “Premises”) to Lessee under that certain lease, the current iteration of which was restated in its entirety on April 1, 2002, under the title of the “Tayman Park Golf Course Restated Lease Agreement” (the “Restated Lease”). The Restated Lease has since been amended by the First Amendment (Lender’s Agreement) dated December 2, 2003, the Second Amendment dated February 19, 2008, that certain Amendment dated January 20, 2015, that certain Amendment dated December 4, 2015, and that certain Amendment dated June 16, 2016. The Restated Lease as heretofore amended is hereinafter referred to, collectively, as the “Lease.” B. Lessee desires to make certain improvements to the Premises and to obtain an extension of the Lease in exchange for that investment. City is willing to extend the Lease as requested, but on the terms and conditions as provided in this instrument.
AGREEMENT:
NOW, THEREFORE, in consideration of the mutual covenants and conditions hereinafter contained, the Parties hereby amend the Lease as follows:
1. The Lease is hereby amended to revise Paragraph 3, to extend the term by eight (8) years and provide that the term of the Lease, as so extended, shall expire on August 19, 2052, unless terminated sooner by operation of law or as otherwise provided in the Lease.
2. The Lease is hereby amended to add the following new Paragraph 7,g:
“Annual Improvement Funding: Lessee shall have a budget line item for operations of the Premises which dedicates 3% of the gross revenue from Lessee’s operations on the Premises each fiscal year (according to the accounting practices as regularly and consistently applied by Lessee), excluding merchandise sales and lessons, to improvements and replacements to the Premises (the “AIF”). Any unused portion of the AIF would carry over to following years. Any improvement and replacement expenditures in excess of the AIF for any year would likewise carry over as a credit against AIF funding in following years. Lessee shall prepare, maintain, and provide City a report for each fiscal year showing the prior year’s AIF carry over debit or credit (except for the year 2022), including documentation of all amounts spent by Lessee towards AIF, gross revenue from the
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Packet Pg. 130 Attachment: Exhibit A: Tayman Golf Lease Amendment (3688 : Tayman Golf Course Lease Amendment) 2 Premises excluding merchandise sales and lessons for that year, the 3% AIF for that year, Lessee’s expenditures on improvements and replacements for that year, and any AIF credit or debit remaining for that year. Lessee shall retain such records as to each fiscal year for a period of not less than three (3) years after the expiration of that fiscal year. To the extent permitted by law, City shall keep Lessee’s financial reports and records confidential.”
3. The Lease is hereby amended to add the following new Paragraph 7,h:
“Additional Improvements and Replacements: It is hereby confirmed that, in addition to the AIF, as provided in paragraph 7,g of the Lease, Lessee, at Lessee’ s own cost, shall make $350,000.00 of improvements and replacements to the Premises over the five years following the execution of this Amendment (the “Additional Improvements”). Lessee shall be responsible for complying with all applicable local, state and federal laws and regulations regarding the construction and operation of such improvements. It is hereby acknowledged and agreed that, in anticipation of this requirement, Lessee has already made the improvements and replacements shown on Exhibit A attached hereto and incorporated herein by this reference, and that the $242,500.00 expended on such improvements and replacements shall be credited against this additional improvement requirement, leaving a balance of $ 107,500.00 in additional improvements and replacements to be made. Lessee shall prepare. maintain, and provide City a report for each fiscal year, which shall include documentation of all amounts spent by Lessee towards the $350,000, showing the improvements and replacements made during each fiscal year and the balance of the $350,000 left to be expended. Lessee shall retain such records as to each fiscal year for a period of not less than three (3) years after the expiration of that fiscal year. To the extent permitted by law, City shall keep Lessee’s financial reports and records confidential.”
4. The Lease is hereby amended to delete the next to last paragraph of paragraph 18 of the Lease, which paragraph begins with the words, “Notwithstanding the foregoing, Lessor’s consent to an assignment of Lessee’s interest in this Agreement shall be deemed automatically granted…” and to replace said paragraph with the following:
“Notwithstanding the foregoing, the following transfers of interests in Tenant are hereby authorized by City: transfers of stock or equity in the entity which is Tenant (currently, the Tayman Park Golf Group, Inc.): (a) between its shareholders or owners, (e.g., based on current shareholders of Tenant, between James W. Stewart and Frank Johnson); (2) from a shareholder to his or her immediate family (e.g. from James W. Stewart to one or more of his sons, Rick Stewart or Daniel Stewart); and/or (c) to an entity which is wholly owned by the then current shareholders/owners of Tenant. Any other transfers of interests in Tenant must be approved by the City Manager, or the City’s designee, in writing prior to transfer.”
5. Except for the foregoing amendments, the Lease, as heretofore amended, remains unchanged and is hereby confirmed.
IN WITNESS WHEREOF, the Parties have executed this instrument on the day and year first above set forth in Healdsburg, California.
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Packet Pg. 131 Attachment: Exhibit A: Tayman Golf Lease Amendment (3688 : Tayman Golf Course Lease Amendment) 3 City: City of Healdsburg Lessee: Tayman Park Golf Group, Inc. _________________________ _________________________
Jeffrey Kay, City Manager James W. Stewart, President
Approved as to form:
_________________________
Samantha W. Zutler, City Attorney
Attest:
_________________________
Raina Allan, City Clerk
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Packet Pg. 132 Attachment: Exhibit A: Tayman Golf Lease Amendment (3688 : Tayman Golf Course Lease Amendment) 4 Exhibit A
Current Improvements and Replacements
[See attached document]
Repaving and sealing of all cart paths & parking lot: $202,500 Construction/shaping/sodding of new tees on Holes 1 & 7 (and surrounds) including new irrigation compatible for use with waste water: $40,000 Total: $242,500
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Packet Pg. 133 Attachment: Exhibit A: Tayman Golf Lease Amendment (3688 : Tayman Golf Course Lease Amendment) Healdsburg Golf Club at Tayman Park
Review of Proposed Lease Extension
Healdsburg, California
Prepared by: Pro Forma Advisors LLC/David A. Sams-Municipal Golf Operations Advisor Prepared for: City of Healdsburg
May 2022
PFA ID: 11-543-2
Pro Forma Advisors, LLC Los Angeles T 310.616.5079 New York Metro T 203 604.9007 F 888.696.9716 www.ProFormaAdvisors.com
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Packet Pg. 134 Attachment: Attachment A: Pro Forma Advisors Market Analysis (3688 : Tayman Golf Course Lease Amendment) Introduction
The Healdsburg Golf Club at Tayman Park is a 9-hole regulation length municipal golf course owned by the City of Healdsburg. The golf course is a par-35 layout with a distance of about 2,700 yards from the back tees. Golfers have the option to play either 9- or 18-holes. There also is a three level golf practice range with 18 tee stations, modest pro shop, special event center, and other support facilities.
The municipal golf course is leased by the City of Healdsburg to the Tayman Park Golf Group (TPGG), a regional golf course management and operating firm. The original lease was initiated in 1986, with an assignment of the agreement to TPGG in 1999. There have been a series of amendments over the years.
Currently, there are 22 years remaining on the lease term, with an expiration date of August 19, 2044.
TPGG is proposing a series of capital improvements at the golf course totaling approximately $350,000. In exchange for this funding commitment, TPGG is requesting an 8-year lease term extension, thus extending the remaining lease term to 30 years (expiration date of August 19, 2052).
As part of the City’s due diligence, Pro Forma Advisors LLC, an independent land use economics consulting firm specializing in commercial recreation, supported by David A. Sams--Municipal Golf Operations Advisor, was retained to conduct an independent third party review of the proposal to extend the lease term. The focus of the review is an assessment of the equity of the proposal.
The independent review includes an evaluation of the golf course historical financial performance, the impact of the proposed improvements on future golf course performance, the cost, if any, to the City related to deferring the reversion of the property for an additional eight years, and experience of other jurisdictions with regard to lease extensions.
Summary of Findings
The following presents a brief summary of findings, with documentation and analysis of these findings contained in subsequent sections of the report.
‣ The current golf course lease between the City of Healdsburg and Tayman Park Golf Group expires on August 19, 2044 (22 remaining years). All revenues and expenses from the property accrue to the lessee, with a lease payment of a nominal $1 per year to the City. ‣ Healdsburg Golf Club consists of a well-designed, quality 9-hole golf course with limited support facilities, developed on a site characterized by its panoramic scenic views of the Sonoma Valley. The par-35 course, at 2,622 yards, is a relatively short, yet challenging regulation length layout. ‣ The condition of the golf course and support facilities has improved markedly since the lease was assigned to its current operator in December 1999. Much of this improvement stems from capital improvements completed at the golf course totaling about $2 million over the past 20 years, and more intensive and efficient maintenance and operating practices.
Healdsburg Golf Club
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Packet Pg. 135 Attachment: Attachment A: Pro Forma Advisors Market Analysis (3688 : Tayman Golf Course Lease Amendment) ‣ In recent years, the golf course accommodated in the range of 22,000 rounds annually, with a surge in play to about 30,000 rounds in 2021 as a result of the beneficial impact of COVID-19 on golf course participation. Virtually all golf courses throughout the country experienced a sharp increase in play levels and a firming of the pricing structure due to individuals having more free time and a preference for outdoor recreational activities during the pandemic. Even at the historically high 30,000 annual rounds, the play level is relatively low for similar golf courses in California, reflecting the exurban nature of the golf course’s primary market area.
‣ Over the past 5 years, the golf course has generated in the range of $800,000 to $900,000 in annual gross revenue, although revenue increased sharply to about $1.3 million in 2021. Net operating income, expressed as earnings before interest, taxes, depreciation and amortization (EBITDA), averaged about $120,000 per year over recent years, although 2021 EBITDA was approximately $200,000. Note that a management fee typically assessed for the oversight and guidance of the golf operation by the operator/manager is not assessed by the lessee, and there is no established reserve fund for future ongoing capital improvements.
‣ Most of the $2 million in capital improvements committed over previous years has been funded by debt. The debt was refinanced in early 2022 with an SBA Economic Injury Disaster Loan (EIDL) loan at a 3.75 percent interest rate. The loan is being amortized over 30 years, with debt service is in the range of $115,000 per year.
‣ Including debt service obligations, on a cash flow basis, the course effectively has operated at close to a breakeven level in recent years. In 2021, with the positive influence of COVID-19, net cash flow increased somewhat, but did not produce a significant windfall gain. Moreover, most golf course analysts believe that the beneficial impact of COVID-19 will dissipate somewhat as the effects of the pandemic become more normalized.
‣ The golf course operates very efficiently, benefitting by the availability of ample irrigation water at no cost (other than electrical pumping expenses) and minimal overhead costs. Improvements in performance related to more efficient maintenance and operation are not possible. Furthermore, all golf courses are facing rapid increases in labor and material (e.g. fertilizer) costs. ‣ The lessee is proposing an infusion of about $350,000 in golf complex capital improvements in exchange for extending the term of the lease eight years. ‣ When a lease of this nature expires, all land and improvements revert to the owner. To the extent that market rent exceeds contract rent, the owner may be entitled to compensation in exchange for extending the term of an existing lease. The compensation may be in the form of a one-time lease extension fee, or an increase in rent. In effect, the compensation is due to the owner’s lost income from deferring the reversion of the income earning assets--that is, the owner is foregoing income for an extended period of time.
Healdsburg Golf Club
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Packet Pg. 136 Attachment: Attachment A: Pro Forma Advisors Market Analysis (3688 : Tayman Golf Course Lease Amendment) ‣ In the case of Healdsburg Golf Club, however, when typical management fees and capital improvement reserves are factored in, there is nominal net income generated by the golf course property, and thus there is effectively no cost to the City in extending the lease term. As such, a lease extension fee in this circumstance is not warranted.
‣ Furthermore, on a cash flow basis, taking into account existing debt service related to prior capital improvements, and the amortization cost related to the $350,000 in proposed capital improvements, net cash flow is nominal, even excluding any standard management fees or CIP reserve. ‣ For a nine hole regulation length golf course, it is prudent to reserve in the range of $50,000 annually (plus inflation) for future capital improvement obligations. Currently, there is no capital improvement reserve in place at Healdsburg Golf Club. Without a Capital Improvement Program (CIP) reserve, the single biggest risk for the City of Healdsburg is that needed golf course improvements are deferred as the lease approaches expiration, leaving the golf course in disrepair at the time of lease reversion. ‣ Unless the COVID-19 beneficial impact on Healdsburg Golf Club performance is fully sustained, the lessee is not likely to generate sufficient net operating income to fund a replacement reserve of this magnitude. Nonetheless, in exchange for granting an additional eight year lease extension, it may be appropriate to create a “performance based” contribution to a capital improvements reserve fund. The monies from the reserve fund could only be expended on golf course capital improvements with the mutual consent of both the lessee and lessor.
‣ While there are many ways to structure a performance based funding mechanism, the following illustrates one way to structure an equitable program:
Exhibit 1: Illustrative Capital Improvement Reserve Fund Actual 2020 Actual 2021 Projected
Stable Year3/
Gross Annual Golf Revenue1/ $665,700 $844,400 $750,000
Less: Baseline2/ 750,000 750,000 750,000
Participation Revenue ($84,300) $94,400 0
CIP Share
Percentage of Participation Revenue 25% 25% 25%
Annual Contribution --- $23,600 ---
1/ Includes greens fees, annual member dues, cart revenue, driving range fees. 2/ Baseline increased annually at the CPI, but not less than 2.0% or more than 5.0% 3/ Expressed in constant 2022 dollars.
1/ Includes greens fees, annual member dues, cart revenue, driving range fees. 2/ Baseline increased annually at the CPI, but not less than 2.0% or more than 5.0% 3/ Expressed in constant 2022 dollars.
1/ Includes greens fees, annual member dues, cart revenue, driving range fees. 2/ Baseline increased annually at the CPI, but not less than 2.0% or more than 5.0% 3/ Expressed in constant 2022 dollars.
1/ Includes greens fees, annual member dues, cart revenue, driving range fees. 2/ Baseline increased annually at the CPI, but not less than 2.0% or more than 5.0% 3/ Expressed in constant 2022 dollars.
Healdsburg Golf Club
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Packet Pg. 137 Attachment: Attachment A: Pro Forma Advisors Market Analysis (3688 : Tayman Golf Course Lease Amendment) ‣ The table shows that based on stable year gross “golf” revenue (greens fees, annual member dues, cart rental, and driving range fees), no contribution would be required. If gross golf revenue exceeds the baseline, as was the case in 2021, then 25% of the amount over the baseline (participation revenue) would be placed in the Capital Improvements Program (CIP) reserve fund. Based on the projected stable year golf course performance, there is no participation revenue, and thus no CIP contribution.
‣ As indicated, in calculating participation, the baseline “annual gross golf revenue” threshold is escalated annually according to the change in the consumer price index, with a minimum and maximum annual adjustment.
‣ The lessee’s proposal calls for an 8-year extension of the golf course lease in exchange for the $350,000 in near term capital improvements. The capital improvements relate to resurfacing of golf course cart paths and the parking lot, as well as improvements to selective golf course greens and tees. Inspection of the golf complex suggests that improvements to the pro shop restrooms are warranted. It is recommended that consideration be given to increasing the proposed capital contribution by $50,000 to $400,000 in order to refurbish the restrooms, in exchange for extending the lease term from eight to ten years.
‣ In granting the 8-year (or 10-year) term extension in exchange for the $350,000 (or $400,000) capital improvement commitment, it is reasonable and appropriate to require any uncommitted surplus funds be placed in a capital improvement reserve account, available for future golf course capital improvements.
‣ Lastly, a review of the golf course lease allows the lessee to assign the lease to another party without the City’s consent. This provision is highly unusual, as virtually all golf course leases require a lease assignment to be granted only with the consent of the lessor. It is recommended that the lease be modified stating assignment of the lease would be allowed only with the lessor’s consent, not to be unreasonably withheld.
Background
The golf course was initially leased by the City to Silband Sports Corporation on August 19,1986 for a 50- year term. The lease was assigned by Silband to the Tayman Park Golf Group (TPGC) on December 7, 1999. A restated lease agreement dated April 1, 2002 was negotiated between the City and TPGG with 34 years remaining on the lease at an annual lease fee of a nominal $1 per year. The restated lease allowed the lessee to draw water from the Badger Well for golf course irrigation. The lessee is responsible for well operation and maintenance. The restated lease also granted the lessee a “first right of refusal” to extend the lease unless the City elected to proceed with a public bid process.
Healdsburg Golf Club
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Packet Pg. 138 Attachment: Attachment A: Pro Forma Advisors Market Analysis (3688 : Tayman Golf Course Lease Amendment) A series of lease amendments were subsequently added to the restated lease agreement related to encumbering the lease with property long term debt, lessee-funded capital improvements, and golf course irrigation water. A December 4, 2015 lease amendment granted the lessee a 5-year lease term extension in exchange for the lessee’s funding of a ground water well at a budgeted cost of $150,000 (lease extended to August 19, 2041). Subsequent to higher than budgeted costs and the lessee’s willingness to increase irrigation water storage capacity, an additional three years was added to the lease term, with a new termination date of August 19, 2044.
The lessee has invested over $2 million during the term of the lease agreement, primarily funded by debt.
The driving range was added in 2002, which required rebuilding the #1 hole and relocating the cart barn. A new ground water well, new pumping station, larger irrigation distribution lines and an auxiliary pump were added in 2013/2014. There have been a number of other improvements over the years.
The original loan was refinanced in 2016 with a $2.15 million loan with Exchange Bank. Available because of the COVID-19 pandemic, in 2022, the Exchange Bank loan was refinanced again, with the lessee securing a Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) for $2.0 million. The new loan carried a 3.75 percent interest rate, with a 30-year amortization period. Annual debt service is approximately $112,000 per year.
The Tayman Park Golf Group is now proposing the following capital improvements at the golf complex:
Exhibit 2: Proposed Healdsburg Golf Club Capital Improvements Component Amount Completion
Year
Asphalt Repaving of Parking Lot & Cart Paths $200,000 2022* Renovate 9 Tee Complexes 110,000 2022
Rebuild #5 Green 40,000 2022
Total $350,000
* Completed.
Source: Tayman Park Golf Group, Inc.
In exchange for this additional capital investment, the lessee is requesting an 8-year lease extension, which would result in a lease expiration date of August 19, 2052. As such, the lease termination date would coincide with the full amortization of the current SBA loan.
Healdsburg Golf Club
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Packet Pg. 139 Attachment: Attachment A: Pro Forma Advisors Market Analysis (3688 : Tayman Golf Course Lease Amendment) The Golf Complex
Healdsburg Golf Club at Tayman Park is a regulation length 9-hole golf course located in Healdsburg, the heart of the Sonoma Valley. The golf course was designed by renowned golf course architect Alister MacKenzie, opening in 1921. MacKenzie, a British architect, designed golf courses around the world, and is most famous for his collaboration with Bobby Jones in the design of Augusta National Golf Club, home of the Masters Golf Tournament. When the current lessee acquired the Healdsburg Golf Club leasehold, some modifications to the golf course were completed which resulted in development of a small golf practice range.
The 9-hole golf course is a par-35 layout with three par-3, four par-4, and two par-5 holes. The basic characteristics of the golf course are summarized as follows:
Exhibit 3: Healdsburg Golf Club Course Characteristics
Tee Par Distance
(yards)
Slope Rating
Blue 35 2,622 114 65.4
White 35 2,493 112 64.7
Red 35 2,290 117* 64.8*
The golf complex has a unique three-level driving range with 6 tees on each level (18 total tees). The course is supported by a small (approximately 2,000 square feet) pro shop which also provides a very limited food and beverage service, and a special event banquet center which can seat up to about 75 guests in a banquet style seating configuration.
While the golf course layout is well regarded, its condition at the time the lease was assigned to its current lessee in 1999 was generally poor, with substantial deferred maintenance.
Through a series of capital improvements, and the implementation of more intensive course maintenance and golf operations practices, the golf course condition has been markedly improved.
Greens fees at Healdsburg Golf Club currently are as follows:
Exhibit 4: Healdsburg Golf Club Greens Fees
9-Hole 18-Hole
Weekday Weekend Weekday Weekend
Regular $20.00 $23.00 $24.00 $29.00
Healdsburg Golf Club
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Packet Pg. 140 Attachment: Attachment A: Pro Forma Advisors Market Analysis (3688 : Tayman Golf Course Lease Amendment) Exhibit 4: Healdsburg Golf Club Greens Fees
9-Hole 18-Hole
Weekday Weekend Weekday Weekend
Senior 17.00 --- 22.00 ---
Junior 7.00 10.00 7.00 10.00
Power carts are available at $9.00 per player for 9-hole play and $15 per player for 18-hole play. Cart utilization is estimated at about 70 percent.
The golf course also offers an annual membership pass which allows unlimited golf play. Memberships offering golf course access on weekdays only are $695 per year for individuals and $1,300 for couples.
Annual memberships allowing unlimited access to the golf course on weekdays and weekends are $1,100 per year for individuals and $1,700 for couples. Power carts are charged separately at the same rate applied to daily fee golfers. There currently are approximately 120 annual memberships.
With the exception of 2021, the golf course generates about 22,000 total rounds annually, of which about 13,000 are played by annual members and 9,000 by the general public on a daily fee basis. In 2021, with the full beneficial impact of COVID-19 on play, annual rounds surged to a total of approximately 30,000 rounds, with most of the increase in play attributable to daily fee golfers.
Net operating income, defined as earnings before interest, taxes, depreciation and amortization (EBITDA), is shown for the 2017-2021 period in Exhibit 5. Again, the net income does not include deductions for debt service related to the more than $2.0 million in debt-funded capital improvements.
The expense line item shown in the exhibit for years 2020 and 2021 is shown by major component in Exhibit
6. Note that the reported operating expenses do not include allowances for a standard management fee or contributions in a Capital Improvement Program (CIP) reserve fund.
Healdsburg Golf Club
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Packet Pg. 141 Attachment: Attachment A: Pro Forma Advisors Market Analysis (3688 : Tayman Golf Course Lease Amendment) Exhibit 5: Healdsburg Golf Club Annual Net Operating Income ($000s) 2017 2018 2019 2020 2021
Gross Revenue
Greens Fees $190.5 $234.0 $192.4 $293.3 $394.7
Annual Member Dues 93.7 104.4 132.5 83.7 94.5
Cart Fees 119.8 171.4 147.9 212.7 252.5
Practice Range 44.7 48.2 50.6 76.0 102.7
Merchandise 72.7 78.0 62.8 44.5 101.0
Food & Beverage 171.3 196.9 185.5 158.7 241.9
Banquet Hall Rental 61.1 53.2 62.9 17.1 0.6
Lesson Fees --- 5.1 43.3 18.5 176.2
Miscellaneous 6.9 9.1 9.0 6.0 11.9
Total Gross Revenue $760.7 $900.3 $886.9 $910.5 $1,376.0 Cost of Sales
Merchandise $50.2 $50.6 $32.9 $35.6 $74.3
Food & Beverage 75.0 89.8 83.6 61.1 98.5
Lessons--Instructors --- --- --- --- 147.3
Total Cost of Sales $125.2 $140.4 $116.5 $96.7 $320.1
Gross Profit $635.5 $759.9 $770.4 $813.8 $1,055.9
Operating Expenses $552.3 $632.6 $664.8 $691.4 $857.9
Net Operating Income $83.2 $127.3 $105.6 $122.4 $198.0
Source: Tayman Park Golf Group, Inc.; and Pro Forma Advisors LLC.
Healdsburg Golf Club
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Packet Pg. 142 Attachment: Attachment A: Pro Forma Advisors Market Analysis (3688 : Tayman Golf Course Lease Amendment) Exhibit 6: Healdsburg Golf Club Annual Operating Expenses ($000s) Component 2020 2021
Course Maintenance
Payroll & Benefits $149.7 $163.9
Service & Supplies 40.1 101.3
Water & Power 12.3 11.7
Maintenance Equipment --- ---
Subtotal $202.1 $276.9
Golf Operations
Payroll--Golf Shop $108.1 $106.5
Cart Lease 46.0 39.5
Outside Services 47.1 58.2
Practice Range 7.6 10.4
Services & Supplies 9.1 21.1
Subtotal $217.9 $235.7
Food & Beverage
Payroll & Benefits $2.4 $2.6
Service & Supplies 1.7 6.0
Subtotal $4.1 $8.6
Clubhouse Undistributed $46.7 $67.8
General & Administrative
Payroll & Benefits $108.5 $126.2
Insurance 28.9 29.9
Property Taxes 10.0 14.1
Credit Card Fees 17.8 27.3
Service & Supplies 41.8 52.2
Advertising & Promotion 13.6 19.2
Management Fees --- ---
Subtotal $220.6 $268.9
Total $691.4 $857.9
Source: Tayman Park Golf Group, Inc.; and Pro Forma Advisors LLC.
Healdsburg Golf Club
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Packet Pg. 143 Attachment: Attachment A: Pro Forma Advisors Market Analysis (3688 : Tayman Golf Course Lease Amendment) Projected Stabilized Year Net Operating Income
Assuming that there is some dissipation of the impact of COVID-19 beneficial impact on golf participation, stabilized net operating income (EBITDA) for Healdsburg Golf Club, expressed in constant 2022 dollars, is projected in Exhibit 7.
Based on an estimated stable year play level of 27,000 rounds, and including a provision of $75,000 per year for a standard golf course management fee and $50,000 for a capital improvement reserve fund, projected net operating income, before debt service, is indicated at $26,000 per year.
Lease Extension Fee
When a lease of this nature expires, all land and improvements revert to the owner. To the extent that market rent exceeds contract rent, the owner may be entitled to compensation in exchange for extending the term of an existing lease. The compensation may be in the form of a one-time lease extension fee, or an increase in rent. In effect, the compensation is due to the owner’s lost income from deferring the reversion of the income earning assets--that is, the owner is foregoing income for an extended period of time.
In the case of Healdsburg Golf Club, however, when typical management fees and capital improvement reserves are factored in, there is nominal net income generated by the golf course property (see Exhibit 7), and thus there is effectively no cost to the City in extending the lease term. As such, a lease extension fee in this circumstance is not warranted.
Furthermore, on a cash flow basis, taking into account existing debt service related to prior capital improvements, and the amortization cost related to the $350,000 in proposed capital improvements, net cash flow is nominal, even excluding any standard management fees or CIP reserve.
Capital Improvement Reserve
For a nine hole regulation length golf course, it is prudent to reserve in the range of $50,000 annually (plus inflation) for future capital improvement obligations. Currently, there is no capital improvement reserve in place at Healdsburg Golf Club. Without a Capital Improvement Program (CIP) reserve, the single biggest risk for the City of Healdsburg is that needed golf course improvements are deferred as the lease approaches expiration, leaving the golf course in disrepair at the time of lease reversion.
Unless the COVID-19 beneficial impact on Healdsburg Golf Club performance is fully sustained, the lessee is not likely to generate sufficient net operating income to fund a replacement reserve of this magnitude.
Nonetheless, in exchange for granting an additional eight year lease extension, it may be appropriate to create a “performance based” contribution to a capital improvements reserve fund. The monies from the reserve fund could only be expended on golf course capital improvements with the mutual consent of both the lessee and lessor.
Healdsburg Golf Club
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Packet Pg. 144 Attachment: Attachment A: Pro Forma Advisors Market Analysis (3688 : Tayman Golf Course Lease Amendment) Exhibit 7: Healdsburg Golf Club Annual Net Operating Income ($000s) 2020 2021 Projected
Gross Revenue
Greens Fees $293.3 $394.7 $325.0
Annual Member Dues 83.7 94.5 95.0
Cart Fees 212.7 252.5 230.0
Practice Range 76.0 102.7 100.0
Merchandise 44.5 101.0 80.0
Food & Beverage 158.7 241.9 225.0
Banquet Hall Rental 17.1 0.6 20.0
Lesson Fees 18.5 176.2 150.0
Miscellaneous 6.0 11.9 10.0
Total Gross Revenue $910.5 $1,376.0 $1,235.0
Cost of Sales
Merchandise $35.6 $74.3 $60.0
Food & Beverage 61.1 98.5 79.0
Lessons--Instructors --- 147.3 120.0
Total Cost of Sales $96.7 $320.1 $259.0
Gross Profit $813.8 $1,055.9 $976.0
Operating Expenses
Course Maintenance $202.1 $276.9 $250.0
Golf Operations 217.9 235.7 235.0
Food & Beverage 4.1 8.6 10.0
Clubhouse/Undistributed 46.7 67.8 70.0
General & Administrative 220.6 268.9 260.0
Management Fee --- --- 75.0
CIP Replacement Reserve --- --- 50.0
Total $691.4 $857.9 $950.0
Net Operating Income $122.4 $198.0 $26.0
Healdsburg Golf Club
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Packet Pg. 145 Attachment: Attachment A: Pro Forma Advisors Market Analysis (3688 : Tayman Golf Course Lease Amendment) While there are many ways to structure a performance based funding mechanism, Exhibit 8 below illustrates one way to structure an equitable program:
Exhibit 8: Illustrative Capital Improvement Reserve Fund Actual 2020 Actual 2021 Projected
Stable Year3/
Gross Annual Golf Revenue1/ $665,700 $844,400 $750,000
Less: Baseline2/ 750,000 750,000 750,000
Participation Revenue ($84,300) $94,400 0
CIP Share
Percentage of Participation Revenue 25% 25% 25%
Annual Contribution --- $23,600 ---
1/ Includes greens fees, annual member dues, cart revenue, driving range fees. 2/ Baseline increased annually at the CPI, but not less than 2.0% or more than 5.0% 3/ Expressed in constant 2022 dollars.
1/ Includes greens fees, annual member dues, cart revenue, driving range fees. 2/ Baseline increased annually at the CPI, but not less than 2.0% or more than 5.0% 3/ Expressed in constant 2022 dollars.
1/ Includes greens fees, annual member dues, cart revenue, driving range fees. 2/ Baseline increased annually at the CPI, but not less than 2.0% or more than 5.0% 3/ Expressed in constant 2022 dollars.
1/ Includes greens fees, annual member dues, cart revenue, driving range fees. 2/ Baseline increased annually at the CPI, but not less than 2.0% or more than 5.0% 3/ Expressed in constant 2022 dollars.
The table shows that based on stable year gross “golf” revenue (greens fees, annual member dues, cart rental, and driving range fees), no contribution would be required. If gross golf revenue exceeds the baseline, as was the case in 2021, then 25% of the amount over the baseline (participation revenue) would be placed in the Capital Improvements Program (CIP) reserve fund. Based on the projected stable year golf course performance, there is no participation revenue, and thus no CIP contribution.
As indicated, in calculating participation, the baseline “annual gross golf revenue” threshold is escalated annually according to the change in the consumer price index, with a minimum and maximum annual adjustment.
Lastly, in granting the 8-year term extension in exchange for the $350,000 capital improvement commitment, it is reasonable and appropriate to require any uncommitted surplus funds be placed in a capital improvement reserve account, available for future golf course capital improvements.
Healdsburg Golf Club
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Packet Pg. 146 Attachment: Attachment A: Pro Forma Advisors Market Analysis (3688 : Tayman Golf Course Lease Amendment)
CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: August 1, 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, authorizing the City Manager to execute the amendment, increasing the not-to-exceed amount by $33,542 to $83,541 and rescinding Resolution No. 84-2022.
BACKGROUND:
At the June 18, 2022 meeting, City Council approved an amendment to the Professional Services Agreement with SOS Community Counseling for juvenile diversion services. The adopted Resolution No. 84-2022 incorrectly identified the amount and the term ending date for the amendment. This proposed action would rescind that resolution and adopt a resolution authorizing the City Manager to execute the amendment on behalf of the City.
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
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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 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, 2023 and increase the PSA not-to-exceed amount by $33,542 to $83,541.
Staff is recommending that Council rescind Resolution No. 84-2022, 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.
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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.
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,
INCREASING THE NOT-TO-EXCEED AMOUNT BY $33,542
TO $83,541 AND RESCINDING RESOLUTION NO. 84-2022
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, 2023 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. Rescinds Resolution No. 84-2022.
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Packet Pg. 150 Attachment: Resolution (3693 : Juvenile Diversion Contract) Resolution No. -2022
2. Approves the Amendment to the existing PSA with SOS Community Counseling.
3. Authorizes the City Manager to execute the Amendment, extending the agreement term for another year to June 30, 2023 and increasing the PSA not-to-exceed amount by $33,542 to $83,541.
4. 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 1st day of August 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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Packet Pg. 151 Attachment: Resolution (3693 : 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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Packet Pg. 152 Attachment: HJDP Scope of Work 2022-23 (3693 : 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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Packet Pg. 153 Attachment: HJDP Scope of Work 2022-23 (3693 : 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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Packet Pg. 154 Attachment: HJDP Scope of Work 2022-23 (3693 : 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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Packet Pg. 155 Attachment: HJDP Scope of Work 2022-23 (3693 : 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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Packet Pg. 156 Attachment: HJDP Scope of Work 2022-23 (3693 : 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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Packet Pg. 157 Attachment: HJDP Scope of Work 2022-23 (3693 : Juvenile Diversion Contract)
CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: August 1, 2022
SUBJECT: Proposed Reorganization and Authorized Positions to City Manager's Office, Finance, Housing, and Police
PREPARED BY: Renee Senander, Human Resources Manager
STRATEGIC INITIATIVE(S):
Provide Effective Governance
RECOMMENDED ACTION(S):
1. Adopt a Resolution rescinding Resolution No. 76-2022 and reestablishing the list of authorized positions; and
2. Adopt a Resolution amending the FY 22-23 and FY 23-24 Budget.
COMMUNITY ENGAGEMENT/OUTREACH:
Not applicable.
BACKGROUND:
In May of 2022 the City agreed to a multi-year contract with HPOA. As part of that contract, the City agreed to meet and confer on two position changes within the Police Department. During the same month, the City also took possession of the L&M Motel and is currently converting the property to an emergency homeless shelter, one of several complex and significant housing projects in our pipeline. In June of 2022, the City announced the promotion of the current Administrative Services Director to Assistant City Manager. In July of 2022, the current Public Information Officer announced her resignation. In June of 2022, the City completed negotiations on a 3-year labor agreement with IBEW. As a result of these actions, the City has reviewed its current organizational structure and the City Manager is recommending the following organizational changes:
• Establish a Housing Department and reclassify the Housing Administrator position to Housing Director, making that position a member of the executive team. • Add an Administrative Analyst position to support Housing administration.
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• Restructure the Administrative Services Department – creating a Finance Department and reclassify the Administrative Services Director to a Finance Director. • Reorganize City Manager’s Office to include the following divisions as reports to the Assistant City Manager: Information Technology, Human Resources, and Central Services.
• Reclassify the City Clerk to City Clerk/Public Information Officer. • Reclassify the existing PIO position to an Administrative Analyst position to support the City Clerk/Public Information Officer.
• Reclassify an existing Police Dispatcher to a Police Dispatch Supervisor. • Reclassify an existing Police Records Technician to a Police Records Supervisor.
DISCUSSION/ANALYSIS:
City Manager and Finance/Administrative Services Re-Organization:
The current organizational structure of the City Manager’s Office includes one City Manager, one Assistant City Manager, one Housing Administrator, one City Clerk, one Public Information & Community Outreach Coordinator and one part-time Deputy City Clerk. With the current Administrative Services Director vacancy, that Department presently reports to the Assistant City Manager. Reclassifying the Administrative Services Director into a stand-alone Finance Director allows for greater focus on the City’s day-to-day fiscal management, and allows the Information Technology, Human Resources and Central Services divisions to continue to report to the Assistant City Manager, under the City Manager’s Office.
The current Public Information and Community Outreach Coordinator will be leaving the City in mid-August. Since the position was created, the City has struggled to find and keep staff in the role. The City Clerk works closely with the current Public Information and Community Outreach Coordinator and often serves as the PIO when the position is out of office or has been vacant.
The Clerk is also currently responsible for managing public records act requests. Many other small Cities, combine the City Clerk and PIO roles.
City staff propose that following the current incumbent’s departure, the City Clerk would absorb the communication job duties form the Public Information and Community Outreach Coordinator position and be reclassified as a City Clerk/Public Information Officer. The current PIO position would be reclassified to an Administrative Analyst, who would support the Clerk/PIO with both administrative and public information duties.
Affordable Housing and Homelessness Support:
Affordable Housing and Homelessness are two of the most pressing issues the City faces and are consistently top priorities for the City Council. Currently, staff support of both issues is limited to the City Housing Administrator. In addition to over 264-units of affordable housing under development, the Housing Administrator is also leading the operations of the 22-unit L&M Village, providing staff support to the Housing Element workgroup, and will be supporting future ongoing efforts on housing element implementation moving forward. Given the importance of addressing Affordable Housing and Homelessness within the community, staff recommend creating a Housing Department, reclassifying the Housing Administrator to a Housing Director, and adding a new position at the Administrative Analyst level to support current and future affordable housing and homelessness support activities. Both positions would
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be fully funded through Measure S funds. These adjustments would restore the City’s Housing staffing to the level it was at roughly six years ago when it was comprised of a director and one administrative support position. Staff believes this change is necessary and appropriate given the volume of active projects as well as the significant increases in Measure S revenues in recent years.
Police Department Positions
During 2022 negotiations with HPOA, the City agreed to reclassify an existing Police Dispatcher to a Police Dispatch Supervisor and existing Police Records Technician to a Police Records Supervisor position in order to provide administrative support and increase organizational efficiency within the Department. Reclassifying these positions to supervisory roles will provide additional leadership support for non-sworn staff and improve service delivery. This action will not result in a net increase in authorized positions within the Department.
Attachments A-D with this report include the proposed organizational charts for the Police Department, City Manager’s Office, Housing Department, and Finance Department. Resolution 1 would the authorized position list. The proposed updated authorized position list additionally includes salary step updates resulting from the recently concluded negotiations with IBEW.
Resolution 2 includes budget amendments required to effectuate the proposed changes. Staff recommend Council approve the proposed changes to the Authorized Position List, City Organizational Structure, and associated Budget Amendments.
ENVIRONMENTAL STEWARDSHIP:
Not applicable.
ALTERNATIVES:
The position reclassifications within the Police Department are part of a negotiated package with the Healdsburg Police Officers Association approved by City Council. The salary step updates in the authorized position list are also a result of completed negotiations. The remaining position changes are recommendations by City staff. Council can choose to accept, modify, or reject the recommended actions for the City Manager’s Office, Housing, and Clerk/PIO.
FISCAL IMPACT:
Reclassifying the Housing Administrator position to a Housing Director and adding an Administrative Analyst to support housing administration will have a fiscal impact to the Affordable Housing Measure S Fund of $123,283 in additional salary and benefit cost in FY 22- 23 and $143,702 in FY 23-24.
Restructuring the Administrative Services Department, City Manager’s Office, and Police Department to include a Finance Director, City Clerk/Public Information Officer, Administrative Analyst, Police Dispatch Supervisor and Police Records Supervisor will have a fiscal impact to the General Fund of $47,849 in FY 22-23 and $71,811 in FY 23-24.
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Packet Pg. 160
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 1: Updated Authorized Position List
Exhibit 1A - Authorized Positions 8-1-2022
Resolution 2: Amending FY 22-23 and FY 23-24 Budget
Exhibit 2A: FY 22-23 Budget Amendment
Exhibit 2B FY 23-24 Budget Amendment
Attachment A: Police Department Org Chart 2022
Attachment B: CMO Org Chart 2022
Attachment C: Finance Org Chart 2022
Attachment D: Housing Org Chart 2022
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CITY OF HEALDSBURG
RESOLUTION NO. XX-2022
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG RESCINDING RESOLUTION NO. 76-2022
AND REESTABLISHING THE LIST OF AUTHORIZED
POSITIONS
WHEREAS, on June 6, 2022, the City Council adopted the Fiscal Year 2022-23 budget, including establishing new positions and updating the corresponding resolution establishing the list of authorized positions; and
WHEREAS, on June 6, 2022, the City Council adopted a resolution revising the authorized positions schedule adding a Parks Maintenance Worker and a Capital Project Manager within the Community Services Department; and
WHEREAS, on June 20th, the City Council adopted a Memorandum of Understanding between the City of Healdsburg and the Healdsburg Police Officers Association; and WHEREAS, staff proposes the following position changes:
1. Establish a Housing Department and reclassify the Housing Administrator position to Housing Director.
2. Create a new Administrative Analyst position to support Housing Administration.
3. Restructure Administrative Services Department – creating a Finance Department and reclassify Administrative Services Director position to a Finance Director position.
4. Reorganize City Manager’s Office to include the following divisions, with all positions reporting to the Assistant City Manager: Information Technology, Human Resources, and Central Services.
5. Reclassify City Clerk position to City Clerk/Public Information Officer position.
6. Reclassify PIO position to an Administrative Analyst position. Administrative Analyst position will support and report to the City Clerk.
7. Reclassify Police Dispatcher position to Police Dispatch Supervisor position.
8. Reclassify Police Records Technician position to Police Records Supervisor position.
WHEREAS, subject to Council Adoption on August 1st, a proposed memorandum of understanding between the City of Healdsburg and the International Brotherhood of Electrical Workers necessitates an update to the salary schedule included in the authorized position list; and
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Packet Pg. 162 Attachment: Resolution 1: Updated Authorized Position List (3708 : Staff Reorganization and Authorized Positions) Resolution No. - 2022
WHEREAS, the City has met and conferred with the Police Officers Association regarding alterations to positions in that bargaining group; and
Whereas, the City has met and conferred with the Mid-Management and Professional Employees Association on the changes to positions that impact their bargaining group; and WHEREAS, the City Council determines that there are benefits to updating the Authorized Position list to accurately reflect approved positions and salary steps.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg does hereby:
1. Rescind Resolution No. 76-2022; and
2. Ratify the authorized position list as depicted in the attached Exhibit A.
PASSED, APPROVED AND ADOPTED this 1
st day of August 2022, by the following vote:
AYES: Councilmembers: ( )
NOES: Councilmembers: ( )
ABSENT: Councilmembers: ( )
ABSTAINING: Councilmembers: ( )
SO ORDERED: ATTEST:
_________________________________ ___________________________________ Osvaldo Jimenez, Mayor Raina Allan, City Clerk
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Packet Pg. 163 Attachment: Resolution 1: Updated Authorized Position List (3708 : Staff Reorganization and Authorized Positions) Exhibit A - Authorized Positions
Department Authorized
Positions Bargaining Group A Step B Step C Step D Step E Step F Step City Manager's Office
City Manager1 Executive Management $22,451.28
Assistant City Manager 1 Executive Management $14,215.62 $14,926.06 $15,673.31 $16,456.20 $17,279.49 City Clerk/PIO 1 Mid-Management $10,390.49 $10,910.01 $11,455.53 $12,028.29 $12,629.71 Information Technology Manager1 Mid-Management $10,441.29 $10,963.35 $11,511.51 $12,087.09 $12,691.45 Human Resources Manager1 Mid-Management $9,738.05 $10,234.63 $10,757.35 $11,306.21 $11,882.40 Central Services Manager1 Mid-Management $8,856.74 $9,299.58 $9,764.57 $10,252.79 $10,765.42 Human Resources Analyst1 Mid-Management $7,902.59 $8,305.33 $8,728.24 $9,173.75 $9,641.82 Mechanic - Equipment Service Writer1 IBEW $7,674.04 $8,065.85 $8,477.08 $8,908.87 $9,363.50 Administrative Analyst I/II1 Mid-Management $7,370.36 $7,745.77 $8,141.38 $8,557.17 $8,993.17 Geographic Information System Technician1 IBEW $7,118.51 $7,474.91 $7,849.13 $8,241.17 $8,653.40 Information Technology Engineering Specialist2 IBEW $7,012.29 $7,362.91 $7,731.06 $8,117.61 $8,523.49 Fleet Mechanic1 IBEW $6,942.69 $7,297.89 $7,669.74 $8,060.58 $8,471.64 Administrative Technician 1 IBEW $6,348.68 $6,671.82 $7,012.77 $7,370.36 $7,745.77 Building Maintenance Technician II 1 IBEW $5,523.02 $5,804.57 $6,100.39 $6,411.64 $6,739.53 Housing
Housing Director1 Executive Management $12,722.73 $13,358.14 $14,027.40 $14,728.25 $15,465.22 Administrative Analyst I/II1 Mid-Management $7,370.36 $7,745.77 $8,141.38 $8,557.17 $8,993.17 Finance
Finance Director1 Executive Management $13,392.35 $14,061.20 $14,765.68 $15,503.43 $16,279.18 Finance Manager1 Mid-Management $9,738.05 $10,234.63 $10,757.35 $11,306.21 $11,882.40 Accounting Manager1 Mid-Management $8,856.74 $9,299.58 $9,764.57 $10,252.79 $10,765.42 Accountant1 Mid-Management $7,370.36 $7,745.77 $8,141.38 $8,557.17 $8,993.17 Payroll Technician1 IBEW $6,348.68 $6,671.82 $7,012.77 $7,370.36 $7,745.77 Accounting Technician1 IBEW $5,747.56 $6,039.80 $6,348.68 $6,671.81 $7,012.78 Senior Accounting Assistant1 IBEW $5,468.37 $5,747.56 $6,039.80 $6,348.68 $6,671.82 Accounting Assistant II 3 IBEW $4,950.40 $5,210.10 $5,468.37 $5,747.56 $6,039.80 Planning & Building
Community Development Director1 Executive Management $13,786.28 $14,476.10 $15,199.59 $15,960.51 $16,757.59 Building Official1 Mid-Management $10,032.88 $10,534.51 $11,061.24 $11,614.30 $12,195.02 Senior Planner 1 Mid-Management $9,738.05 $10,234.63 $10,757.35 $11,306.21 $11,882.40 Senior Building Inspector1 IBEW $8,728.24 $9,173.75 $9,641.82 $10,133.66 $10,650.55 Building Inspector II 1 IBEW $7,518.86 $7,902.59 $8,305.33 $8,728.24 $9,173.75 Development Services Technician II1 IBEW $6,348.68 $6,671.82 $7,012.77 $7,370.36 $7,745.77 Administrative Technician2 IBEW $6,348.68 $6,671.82 $7,012.77 $7,370.36 $7,745.77 Assistant Planner 1 IBEW $6,246.68 $6,559.01 $6,886.97 $7,231.32 $7,592.88 Community Services
Community Services Director
1 Executive Management $13,392.35 $14,061.20 $14,765.68 $15,503.43 $16,279.18 Parks and Open Space Superintendent1 Mid-Management $8,990.26 $9,439.78 $9,911.76 $10,407.35 $10,927.72 Recreation Manager1 Mid-Management $8,638.60 $9,070.55 $9,524.06 $10,000.27 $10,500.28 Project Manager1 Mid-Management $7,969.06 $8,375.36 $8,801.96 $9,251.15 $9,722.90 Recreation Supervisor3 Mid-Management $6,739.53 $7,082.87 $7,444.02 $7,824.18 $8,223.34 Park Maintenance Foreman1 IBEW $6,100.39 $6,411.64 $6,739.53 $7,082.87 $7,444.02 Park Maintenance Worker II 4 IBEW $5,413.73 $5,690.53 $5,980.41 $6,285.72 $6,606.48 Office Assistant II 1 IBEW $4,804.28 $5,050.20 $5,307.99 $5,577.67 $5,863.98 Recreation Coordinator II 2 IBEW $4,795.67 $5,035.44 $5,287.20 $5,551.58 $5,829.15 Facility Worker1 IBEW $4,526.29 $4,756.76 $5,000.30 $5,254.54 $5,523.02 Office Assistant I1 IBEW $4,383.89 $4,603.08 $4,833.23 $5,074.90 $5,328.64 Police
Police Chief1 Executive Management $14,937.94 $15,685.19 $16,469.27 $17,292.55 $18,157.42 Police Lieutenant1 Mid-Management $11,942.09 $12,539.20 $13,166.15 $13,824.47 $14,515.35 Police Sergeant5 HPOA $8,952.01 $9,399.59 $9,869.59 $10,363.06 $10,881.21 $11,425.27 Emergency Response Coordinator1 Mid-Management $7,859.31 $8,252.29 $8,664.90 $9,098.14 $9,553.04 Police Dispatch Supervisor1 HPOA $7,737.51 $8,124.39 $8,530.61 $8,957.14 $9,405.00 $9,875.24 Police Officer 11 HPOA $7,152.33 $7,509.93 $7,885.45 $8,279.71 $8,693.70 $9,128.38 Police Social Services Team Member1 Mid-Management $6,972.68 $7,321.31 $7,687.37 $8,071.74 $8,475.32 Police Records Supervisor1 HPOA $6,434.26 $6,755.97 $7,093.77 $7,448.46 $7,820.88 $8,211.92 Police Dispatcher II HPOA $5,495.69 $5,776.06 $6,069.49 $6,379.57 $6,699.14 $7,034.10 Police Dispatcher I HPOA $5,228.40 $5,495.69 $5,776.06 $6,069.50 $6,379.58 $6,698.55 Police Technician1 HPOA $4,567.15 $4,798.20 $5,043.91 $5,300.63 $5,570.80 $5,849.32 Fire
Fire Chief1 Executive Management $14,355.82 $15,074.56 $15,827.75 $16,618.96 $17,450.56 Fire Marshal/Division Chief1 Mid-Management $11,596.78 $12,176.62 $12,785.46 $13,424.73 $14,095.96 Fire Captain3 IAFF $8,548.37 $8,983.68 $9,442.21 $9,923.97 $10,430.20 Fire Inspector1 IAFF $7,738.91 $8,133.85 $8,548.36 $8,983.67 $9,442.21 Fire Engineer3 IAFF $7,363.50 $7,738.90 $8,133.85 $8,548.37 $8,983.68 Fire Fighter3 IAFF $7,005.23 $7,363.50 $7,738.90 $8,133.85 $8,548.37 Office Assistant II 1 IBEW $4,804.28 $5,050.20 $5,307.99 $5,577.67 $5,863.98 Public Works
Public Works Director 1 Executive Management $13,934.08 $14,630.24 $15,363.23 $16,131.88 $16,939.72 Principal Civil Engineer2 Mid-Management $11,112.57 $11,669.74 $12,253.05 $12,864.86 $13,508.77 Utility Maintenance Superintendent 1 Mid-Management $10,235.05 $10,746.79 $11,284.14 $11,849.38 $12,440.77 Senior Civil Engineer1 Mid-Management $9,835.47 $10,338.00 $10,864.27 $11,419.08 $12,001.19 5
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Packet Pg. 164 Attachment: Exhibit 1A - Authorized Positions 8-1-2022 (3708 : Staff Reorganization and Authorized Positions) Exhibit A - Authorized Positions
Senior Public Works Inspector1 IBEW $8,728.24 $9,173.75 $9,641.82 $10,133.66 $10,650.44 Assistant/Associate Civil Engineer1 Mid-Management $8,388.48 $8,816.16 $9,265.22 $9,738.05 $10,234.63 Public Works Inspector 1 IBEW $7,082.87 $7,444.02 $7,824.18 $8,223.34 $8,642.71 Utility Maintenance Foreman 2 IBEW $6,404.41 $6,724.65 $7,060.88 $7,413.81 $7,784.63 Engineering Technician 2 IBEW $6,348.68 $6,671.82 $7,012.77 $7,370.36 $7,745.77 Administrative Technician1 IBEW $6,348.68 $6,671.82 $7,012.77 $7,370.36 $7,745.77 Public Works and Utilities Materials Technician 1 IBEW $6,100.39 $6,411.64 $6,739.53 $7,082.87 $7,444.02 Utility Worker II IBEW $5,796.40 $6,086.22 $6,390.53 $6,710.06 $7,045.56 Utility Worker I IBEW $4,950.40 $5,210.10 $5,468.37 $5,747.56 $6,039.80 Utilities
Utilities Director 1 Executive Management $15,391.75 $16,161.58 $16,969.42 $17,818.83 $18,711.02 Electric Operations Superintendent 1 Mid-Management $12,810.50 $13,450.91 $14,123.46 $14,829.64 $15,571.11 Utilities Engineering Manager1 Mid-Management $12,248.08 $12,860.48 $13,503.52 $14,178.68 $14,887.61 Water and Wastewater Operations Superintendent 1 Mid-Management $10,812.27 $11,352.87 $11,920.52 $12,516.55 $13,142.37 Electric Line Foreman 1 IBEW $10,758.47 $11,296.40 $11,861.20 $12,454.27 $13,076.98 Lineworker/Troubleshooter5 IBEW $9,737.09 $10,223.95 $10,735.14 $11,271.90 $11,835.48 Senior Electric Engineering Technician2 IBEW $9,263.35 $9,726.53 $10,212.86 $10,723.49 $11,259.67 Wastewater Operations Foreman 1 IBEW $8,642.71 $9,083.46 $9,546.78 $10,033.87 $10,545.89 Water Operations Foreman 1 IBEW $8,642.71 $9,083.46 $9,546.78 $10,033.87 $10,545.89 Industrial Electrician 1 IBEW $8,552.87 $8,980.51 $9,429.52 $9,901.01 $10,396.06 Instrumentation Technician 2 IBEW $8,552.87 $8,980.51 $9,429.52 $9,901.01 $10,396.06 Electric Meter Technician 1 IBEW $8,264.93 $8,678.35 $9,111.97 $9,568.17 $10,046.93 Electric Coordinator/Inspector1 IBEW $8,055.99 $8,458.79 $8,881.72 $9,325.82 $9,792.10 Senior Laboratory Analyst1 IBEW $7,896.87 $8,291.71 $8,706.29 $9,141.61 $9,598.69 Utility Operator 4 IBEW $7,824.18 $8,223.34 $8,642.71 $9,083.46 $9,546.78 Utility Conservation Analyst 1 IBEW $7,818.47 $8,209.41 $8,619.87 $9,050.87 $9,503.41 Utility Compliance and Safety Coordinator1 Mid-Management $7,512.67 $7,888.31 $8,282.72 $8,696.84 $9,131.69 Industrial Mechanic2 IBEW $6,977.13 $7,326.40 $7,692.31 $8,077.22 $8,481.14 Electric Materials Technician 1 IBEW $6,765.61 $7,103.89 $7,459.08 $7,832.02 $8,223.63 Administrative Technician1 IBEW $6,348.68 $6,671.82 $7,012.77 $7,370.36 $7,745.77 Total Full-time Employees 1457
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Packet Pg. 165 Attachment: Exhibit 1A - Authorized Positions 8-1-2022 (3708 : Staff Reorganization and Authorized Positions)
CITY OF HEALDSBURG
RESOLUTION NO. ___-2022
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG AMENDING THE FISCAL YEAR 2022-2023
AND FISCAL YEAR 2023-2024 BUDGET
WHEREAS, on June 6, 2022, the City Council adopted the 2022-24 biennial budget and list of authorized positions; and
WHEREAS, staff proposes the following position changes:
1. Establish Housing Department and reclassify the Housing Administrator position to Housing Director.
2. Create new position for Administrative Analyst position to support Housing Administration.
3. Restructure Administrative Services Department – creating a Finance Department and restructure Administrative Services Director into a Finance Director position.
4. Reorganize City Manager’s Office to include the following divisions as reports to the Assistant City Manager: Information Technology, Human Resources, and Central Services.
5. Restructure City Clerk to City Clerk/Public Information Officer.
6. Restructure existing PIO position to an Administrative Analyst position to support the City Clerk.
7. Reclassify an existing Police Dispatcher to a Police Dispatch Supervisor.
8. Reclassify an existing Police Records Technician to a Police Records Supervisor.
WHEREAS, the proposed changes will have a fiscal impact on the Fiscal Year 2022-2023 and Fiscal Year 2023-2024 adopted budget.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg does hereby:
1. Approve amending the Fiscal Year 2022-2023 budget as depicted on the attached Exhibit A.
2. Approve amending the Fiscal Year 2023-2024 budget as depicted on the attached Exhibit B.
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Packet Pg. 166 Attachment: Resolution 2: Amending FY 22-23 and FY 23-24 Budget (3708 : Staff Reorganization and Authorized Positions) Resolution No. -2022
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Healdsburg this 1st day of August 2022, by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAINING: Councilmembers:
SO ORDERED: ATTEST:
_________________________________ ___________________________________ Osvaldo Jimenez, Mayor Raina Allan, City Clerk
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Packet Pg. 167 Attachment: Resolution 2: Amending FY 22-23 and FY 23-24 Budget (3708 : Staff Reorganization and Authorized Positions) Resolution No.
Exhibit A
Account Number Increase Amount Decrease Amount Description 106-2022-41201-00000 $ 8,986 Housing Director & Administrative Analyst 106-2022-41303-00000 $ 4,200 Housing Director & Administrative Analyst 106-2022-41307-00000 $ 34 Housing Director & Administrative Analyst 106-2022-41207-00000 $ 1,736 Housing Director & Administrative Analyst 106-2022-41209-00000 $ 500 Housing Director & Administrative Analyst 106-2022-41205-00000 $ 28,137 Housing Director & Administrative Analyst 106-2022-41215-00000 $ 154 Housing Director & Administrative Analyst 106-2022-41101-00000 $ 115,536 Housing Director & Administrative Analyst 106-2022-41105-00000 $ 36,000 Housing Part Time Staff Elimination 101-2525-41201-00000 $ 5,335 Finance Director
101-2525-41207-00000 $ 352 Finance Director
101-2525-41205-00000 $ 20,667 Finance Director
101-2525-41101-00000 $ 23,903 Finance Director
101-2001-41201-00000 $ 1,187 City Clerk/PIO & Administrative Analyst 101-2001-41301-00000 $ 1,800 City Clerk/PIO & Administrative Analyst 101-2001-41300-00000 $ 377 City Clerk/PIO & Administrative Analyst 101-2001-41207-00000 $ 233 City Clerk/PIO & Administrative Analyst 101-2001-41205-00000 $ 22,413 City Clerk/PIO & Administrative Analyst 101-2001-41101-00000 $ 17,238 City Clerk/PIO & Administrative Analyst 101-5301-41201-00000 $ 1,696 Police Records Supervisor & Police Dispatch Supervisor 101-5301-41300-00000 $ 928 Police Records Supervisor & Police Dispatch Supervisor 101-5301-41221-00000 $ 487 Police Records Supervisor & Police Dispatch Supervisor 101-5301-41302-00000 $ 4,220 Police Records Supervisor & Police Dispatch Supervisor 101-5301-41207-00000 $ 223 Police Records Supervisor & Police Dispatch Supervisor 101-5301-41209-00000 $ 84 Police Records Supervisor & Police Dispatch Supervisor 101-5301-41101-00000 $ 17,926 Police Records Supervisor & Police Dispatch Supervisor FY 22-23 Budget Amendment
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Packet Pg. 168 Attachment: Exhibit 2A: FY 22-23 Budget Amendment (3708 : Staff Reorganization and Authorized Resolution No.
Exhibit B
Account Number Increase Amount Decrease Amount Description 106-2022-41201-00000 $ 10,310 Housing Director & Administrative Analyst 106-2022-41303-00000 $ 4,200 Housing Director & Administrative Analyst 106-2022-41307-00000 $ 34 Housing Director & Administrative Analyst 106-2022-41207-00000 $ 1,998 Housing Director & Administrative Analyst 106-2022-41209-00000 $ 500 Housing Director & Administrative Analyst 106-2022-41205-00000 $ 28,929 Housing Director & Administrative Analyst 106-2022-41215-00000 $ 158 Housing Director & Administrative Analyst 106-2022-41101-00000 $ 133,573 Housing Director & Administrative Analyst 106-2022-41105-00000 $ 36,000 Housing Part Time Staff Elimination 101-2525-41201-00000 $ 4,854 Finance Director
101-2525-41207-00000 $ 230 Finance Director
101-2525-41205-00000 $ 21,288 Finance Director
101-2525-41101-00000 $ 15,645 Finance Director
101-2001-41201-00000 $ 1,155 City Clerk/PIO & Administrative Analyst 101-2001-41301-00000 $ 1,800 City Clerk/PIO & Administrative Analyst 101-2001-41300-00000 $ 617 City Clerk/PIO & Administrative Analyst 101-2001-41207-00000 $ 237 City Clerk/PIO & Administrative Analyst 101-2001-41205-00000 $ 23,033 City Clerk/PIO & Administrative Analyst 101-2001-41101-00000 $ 18,824 City Clerk/PIO & Administrative Analyst 101-5301-41201-00000 $ 2,804 Police Records Supervisor & Police Dispatch Supervisor 101-5301-41300-00000 $ 1,433 Police Records Supervisor & Police Dispatch Supervisor 101-5301-41221-00000 $ 785 Police Records Supervisor & Police Dispatch Supervisor 101-5301-41302-00000 $ 4,389 Police Records Supervisor & Police Dispatch Supervisor 101-5301-41207-00000 $ 382 Police Records Supervisor & Police Dispatch Supervisor 101-5301-41209-00000 $ 52 Police Records Supervisor & Police Dispatch Supervisor 101-5301-41101-00000 $ 28,120 Police Records Supervisor & Police Dispatch Supervisor FY 23-24 Budget Amendment
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Packet Pg. 169 Attachment: Exhibit 2B FY 23-24 Budget Amendment (3708 : Staff Reorganization and Authorized Police Chief
Matthew Jenkins
Police Lieutenant
Luis Rodriguez
Police Sergeant
Scott Eland
Kristin Dean
William Van Vleck
Frank Patane
Nick Castaneda
Police Officer
Nicholas Doherty
Morgan Dudley
Darryl Erkel
Jason Olvera
Police Officer
Teygan Mason
John Peterson
Joe Janowczyk
Police Dispatch Supervisor
VACANT
Police Dispatcher
Teresa Gruner
Allison Hight
Bianca Reynoso
Amanda Valle
Jaemee Huot
Alejandra Diaz
Police Records Supervisor
VACANT
Police Technician
Stacey Miller
Parking Enforcement
Officer(s)
Part-Time
Police Department Proposed Org Chart
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Packet Pg. 170 Attachment: Attachment A: Police Department Org Chart 2022 (3708 : Staff Reorganization and City Manager
Jeff Kay
Assistant City Manager
Andrew Sturmfels
Human Resources
Manager
Renee Senander
Human Resources
Analyst
Katelyn Jantz
Information
Technology Manager
Adam McKenna
GIS Technician
Megan Campe
Information
Technology Specialist
Ethan Cottrell
Max Hoffert
Central Services
Manager
Tyler Kettmann
Administrative
Technician
Tina Trettin
Building Maintenance
Tech II
Manuel Macias
Mechanic – Equipment
Services Writer
Joel Higuera
Fleet Mechanic
Thomas Draper
City Clerk/PIO
Raina Allan
Deputy City Clerk
Part Time
Administrative Analyst
II
VACANT
City Manager’s Office Proposed Org Chart
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Packet Pg. 171 Attachment: Attachment B: CMO Org Chart 2022 (3708 : Staff Reorganization and Authorized Positions) Finance Director
VACANT
Finance Manager
Katie Edgar
Accountant
Nicole Basurto
Accounting Technician
Marisol Chavez
Accounting Assistant II
Amy Dugan
Accounting Manager
Katherine Ahlborn
Senior Accounting
Assistant
Valeria Macor
Accounting Assistant II
Patty Vega
Lisa Licea
Payroll Technician
Jesus Perez
Finance Proposed Org Chart
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Packet Pg. 172 Attachment: Attachment C: Finance Org Chart 2022 (3708 : Staff Reorganization and Authorized Housing Director
Stephen Sotomayor
Administrative Analyst II
VACANT
Housing Proposed Org Chart
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Packet Pg. 173 Attachment: Attachment D: Housing Org Chart 2022 (3708 : Staff Reorganization and Authorized
CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: August 1, 2022
SUBJECT: Authorize Agreement with Development Group, Inc. for Network Management and Support Services
PREPARED BY: Adam McKenna, IT Manager
STRATEGIC INITIATIVE(S):
Maintain and Improve Infrastructure and Facilities
RECOMMENDED ACTION(S):
Adopt a Resolution approving Purchase Agreement with Development Group, Inc. in the amount of $2,266.78 per month for 36 months for a total amount of $81,604.08 for Network Management and Support Services and authorizing the City Manager to execute the Purchase Agreement.
COMMUNITY ENGAGEMENT/OUTREACH:
Not Applicable.
BACKGROUND:
The City manages a complex computer network allowing for technology to operate at nine City locations. To assist City IT staff with managing this complex network, the City partners with a managed services provider to ensure optimal performance, network security, and assist with complex network engineering tasks. In the past the City has operated this agreement on an annual basis, however as contract costs have increased it has become more advantageous for the City to lock in its pricing for a longer-terms vs paying annually increasing prices based on market trends. Staff is proposing to enter a 3-year contract with Development Group, Inc. due to their experience, dedicated support, and the value their services bring to the City.
DISCUSSION/ANALYSIS:
This agreement assists and augments the City’s IT Department with several managed network services that allow City IT staff to focus on proactive support instead of reactive actions, necessary to manage a complex computer network while also offering day to day service offerings that City staff have become accustomed to receiving from IT.
Key support services provided in this agreement include but are not limited to:
6.J
Packet Pg. 174
• Software upgrades for supported Cisco devices
• Configuration backups for Cisco IOS devices
• Device availability monitoring and alerting
• DGI ownership of out of service events including circuits, failed equipment, cards, denial-of-service, etc
• 24x7 on-call response to exceptional network events; customized escalation process for afterhours
• Includes all standard Moves, Adds, Changes and Deletes Staff intends to execute the 3-year agreement with Development Group, Inc. through the State of California's Participating Addendum (Participating Addendum No. 3-17-70-2686L) through California Multiple Award Schedules (CMAS) Cooperative Purchasing Program Master Agreement, as permitted by Section 3.24.080.8 of the City of Healdsburg Municipal Code.
Purchasing the equipment through the State's Participating Addendum meets all requirements set forth in the City of Healdsburg's Purchasing Policy and ordinance and all requirements set forth by the State of California in regards to regional, state, and national cooperative purchasing agreements. CMAS has established an approved vendor list following a competitive bid process.
This process confirms the City still receives the lowest available pricing and meets the competitive bid process requirements.
ENVIRONMENTAL STEWARDSHIP:
Not applicable.
ALTERNATIVES:
The City Council could choose not to authorize the City Manager to sign an agreement with Development Group, Inc.; In this case, additional duties would be placed back on IT staff, diverting their attention away from innovation, projects, and day to day staff support.
FISCAL IMPACT:
Staff is recommending execution of this new 3-year agreement with Development Group, Inc. for Network Management and Support Services in the amount of $2266.78 per month for 36 months. Funding for this agreement is included in the Fiscal Year 2022-2024 Adopted Budget.
ENVIRONMENTAL ANALYSIS:
Pursuant to Section 15378(b)(5) of the State 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.
ATTACHMENT(S):
Resolution
Development Group Inc. 36 mo Support Agreement
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CITY OF HEALDSBURG
RESOLUTION xx-2022
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG APPROVING A PURCHASE AGREEMENT
WITH DEVELOPMENT GROUP, INC. IN THE AMOUNT OF
$2,266.78 PER MONTH FOR 36 MONTHS FOR A TOTAL
AMOUNT OF $81,604 FOR NETWORK MANAGEMENT AND
SUPPORT SERVICES AND AUTHORIZING THE CITY
MANAGER TO EXECUTE THE PURCHASE AGREEMENT
WHEREAS, the City manages a complex computer network allowing for technology to operate at nine City locations; and
WHEREAS, to assist City IT staff with managing this complex network, the City partners with a managed services provider ensure optimal performance, network security, and assist with complex network engineering tasks; and
WHEREAS, Staff has significantly increased its usage of internet and cloud-based services to become more efficient, nimble, and utilize modern technologies and with that increased usage, our existing network connections do not allow staff at all sites to access needed resources effectively; and
WHEREAS, in the past the City has operated this agreement on an annual basis, however as contract costs have increased it has become more advantageous for the City to lock in its pricing for a longer-terms vs paying annually increasing prices based on market trends; and WHEREAS, Staff has selected to enter a 3-year contract with Development Group, Inc. due to their experience, dedicated support, and the value their services bring to the City; and WHEREAS, this agreement assists and augments the City’s IT Department with several managed network services that allow City IT staff to focus on proactive support instead of reactive actions, necessary to manage a complex computer network while also offering day to day service offerings City staff have become accustomed to receiving from IT; and WHEREAS, Staff intends to execute the agreement with Development Group, Inc. through the State of California's Participating Addendum (Participating Addendum No. 3-17-70-2686L) through California Multiple Award Schedules (CMAS) Cooperative Purchasing Program Master Agreement, as permitted by Section 3.24.080.8 of the City of Healdsburg Municipal Code; and WHEREAS, Staff is recommending the signing of this new 3-year agreement with Development Group, Inc. for Network Management and Support Services in the amount of $2,266.78 per month for 36 months; and
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Packet Pg. 176 Attachment: Resolution (3702 : Authorize Agreement with Development Group, Inc. for Network Management and Support Services) Resolution No. xx-2022
WHEREAS, 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.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg hereby:
1. Approves a Purchase Agreement with Development Group, Inc. for Network and Support and Management for a total amount of $81,604.
2. Authorizes the City Manager to execute the Purchase Agreement for a term of thirty-six months.
PASSED and ADOPTED by the City Council of the City of Healdsburg, this 4th day of April 2022, by the following vote:
AYES: Councilmembers: ( )
NOES: Councilmembers: ( )
ABSENT: Councilmembers: ( )
ABSTAINING: Councilmembers: ( )
SO ORDERED: ATTEST:
________________________________ ___________________________________ Osvaldo Jimenez, Mayor Raina Allan, City Clerk
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Packet Pg. 177 Attachment: Resolution (3702 : Authorize Agreement with Development Group, Inc. for Network Management and Support Services) Company:
CITY OF HEALDSBURGRequested By:Adam McKennaInformation Systems ManagerDescription:City of Healdsburg, DGI>Enable Renewal - 36Months Proposal #27659
Bill To:CITY OF HEALDSBURG401 GROVE STHEALDSBURG, CA 95448-4723 Ship To:CITY OF HEALDSBURG401 GROVE STHEALDSBURG, CA 95448-4723 Sold To:CITY OF HEALDSBURG401 GROVE STHEALDSBURG, CA 95448-4723 Created: 6/27/2022Expires: 7/27/2022Version: 1
Account Manager: jjonesSystems Engineer: romalley
Terms & Conditions:This proposal is offered according to the termsand conditions of one or more CMAS schedules Product & Manufacturer Maintenance
Line No Qty Product SMARTnet Unit Price Ext'd Price Tax 1 1
DGI>ENABLEMonthly DGI>Enable Managed Device MonitoringServiceAgreement Term: 36-MonthsService Features to Include:
• Software upgrades for supported Cisco devices• Configuration backups for Cisco IOS devices managed within LogicMonitor
• Management action authentication, authorization
and accounting for all commands executed ifperformed through the LogicMonitor portal • Device availability monitoring and alerting via
LogicMonitor
• Customer web portal via LogicMonitor to view
network performance and availability reports
• Up-to-date device inventory and asset
information of supported devices via theLogicMonitor portal • DGI ownership of out of service events including
circuits, failed equipment, cards,denial-of-service, etc • 24x7 on-call response to exceptional network
events; customized escalation process forafterhours events (emergency rates may apply) • Includes all standard Moves, Adds, Changes and
Deletes
• MyGlue Knowledge Management System
2,266.78 2,266.78
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Attachment: Development Group Inc. 36 mo Support Agreement (3702 : Authorize Agreement with Need more time to get important stuff done? Ask us about Subtotal $2,266.78
Handling $0.00
Estimated Sales Tax (9.%) $0.00
SMARTnet $0.00
Professional Services $0.00
Shipping $0.00
Total $2,266.78
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Attachment: Development Group Inc. 36 mo Support Agreement (3702 : Authorize Agreement with Company:
CITY OF HEALDSBURGRequested By:Adam McKennaInformation Systems ManagerDescription:City of Healdsburg, DGI>Enable Renewal - 36Months Proposal #27659
Proposal NotesCMAS Contract No.: 3-17-70-2686LCMAS Contract Term: through 9/30/2022Base GSA Schedule No.: GS-35F-491GACalifornia Multiple Award Schedule (CMAS) Contract Number(s)
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Attachment: Development Group Inc. 36 mo Support Agreement (3702 : Authorize Agreement with Company:
CITY OF HEALDSBURGRequested By:Adam McKennaInformation Systems ManagerDescription:City of Healdsburg, DGI>Enable Renewal - 36Months Proposal #27659
About Sales TaxItems sold by Development Group, Inc. and shipped to destinations in California and Nevada are subject to sales tax.If an item is subject to sales tax in the state to which the order is shipped, tax is generally calculated on the total selling price of each individual item. In accordance with state tax laws, the total selling price of anorder will generally include shipping and handling charges and item-level discounts. The amount of tax charged on your order will depend upon many factors including, but not limited to, the type of item(s)purchased, and the source and destination of the shipment. Factors can change between the time you place an order and the time and invoice is sent, which could affect the calculation of sales taxes. The amountappearing on your proposal as 'Estimated Sales Tax' may differ from the sales taxes ultimately charged.About Product ReturnsConsistent with the terms and conditions of the California Multiple Award Schedules (CMAS) General Provisions for Information Technology, you are required to provide written notice of rejection of productsdelivered or services performed within a reasonable time after receipt of such products or the performance of such services. Such notice of rejection is required to state the respect in which the products do notsubstantially conform to your specifications. If you do not provide such notice of rejection within FIFTEEN (15) days of delivery for purchases of Commercial Hardware or Commercial Software or THIRTY (30) daysof delivery for all other purchases, such products and services will be deemed to have been accepted. Your acceptance will be final and irreversible, except as it relates to latent defects, fraud, or gross mistakesamounting to fraud.Company & Payment Information Mailing AddressDevelopment Group, Inc.PO Box 991484Redding, CA 96099-1484Phone: (530) 229-0071Fax: (530) 248-3415 Office LocationsDevelopment Group, Inc.6704 Lockheed DrRedding, CA 96002 Payment InformationDevelopment Group, Inc.32880 Collections Center DrChicago, IL 60693Federal Tax ID: 26-3740919 Wire Transfer InformationDomestic Wire Transfer (U.S.)Wire Routing Transit Number (RTN): 026009593Bank Name: Bank of AmericaCity, State: Chicago, ILAccount Number: 8188065595Title of Account: DEVELOPMENT GROUP INC ACH InformationACH Transfer (U.S.)Routing Transit Number (RTN): 071000039Bank Name: Bank of AmericaCity, State: Chicago, ILAccount Number: 8188065595Title of Account: DEVELOPMENT GROUP INC Note: All wire transfers must be made in US Dollars
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Attachment: Development Group Inc. 36 mo Support Agreement (3702 : Authorize Agreement with 1 (Ver. 11082019)
1595615.1
MASTER SERVICES AGREEMENT
THIS MASTER SERVICES AGREEMENT (this “Agreement”) is entered into as of the date of the last signature below (the “Effective Date”) by and between Development Group, Inc., a California corporation (“DGI”), and City of Healdsburg, a political subdivision of the State of California (“Customer”). For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
1. Overview. This Agreement sets forth the general terms and conditions by which DGI will provide and Customer will receive and use all Services. The specific Services to be provided under this Agreement shall be identified and described on one or more Service Orders executed by Customer and DGI.
2. Agreement. This Agreement consists of and incorporates this cover page (the “Cover Page”) and each of the following:
(a) The General Terms and Conditions attached hereto (the “General Terms”); (b) The initial Service Order attached hereto as Exhibit A; (c) Any additional Service Orders executed by Customer and DGI in accordance with this Agreement (including the exhibits and schedules attached to each Service Order); (d) DGI’s Global Service Level Agreement attached hereto as Exhibit B (the “Service Level Agreement”) and;
(e) All other documents incorporated by reference into any of the forgoing.
3. Defined Terms. All capitalized terms used in this Agreement or in any Service Order shall have the meanings set forth on this Cover Pager and in the General Terms.
EACH PARTY HAS READ AND AGREES TO BE BOUND BY THIS AGREEMENT, INCLUDING THE
GENERAL TERMS AND CONDITIONS AND ALL OTHER DOCUMENTS ATTACHED TO OR INCORPORATED BY REFERENCE.
City of Healdsburg
By:
Name:
Title: Date:
DEVELOPMENT GROUP, INC.
By:
Name:
Title: Date:
Address for Notices:
401 Grove St
Healdsburg, CA 95488
Attn: Adam McKenna, IS Manager
Address for Notices:
6704 Lockheed Drive
Redding, California 96002
Attn: Daniel Lockwood, President
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MASTER SERVICES AGREEMENT
GENERAL TERMS AND CONDITIONS
1. DEFINITIONS.
“Authorized User” means Customer and its employees,
consultants, contractors, and agents who are authorized by Customer to access and use the Services under the rights granted to Customer pursuant to this Agreement.
“CloudHub Platform” means the information technology
infrastructure used by or on behalf of DGI in performing the Services, including all computers, software, hardware,
databases, electronic systems (including database
management systems), and networks, whether operated
directly by DGI or through the use of third-party services, and all intellectual property rights in the foregoing (whether owned by DGI or licensed to DGI from a third party).
“Customer Data” means all information, data, and other
content, in any form or medium, that is submitted, posted, or otherwise transmitted by or on behalf of Customer or any other Authorized User through the Services.
"Customer Systems" means the Customer's information
technology infrastructure, including computers, software, hardware, databases, electronic systems (including database management systems), and networks, whether operated
directly by Customer or through the use of third-party
services.
“DGI Supplied Equipment” means any computer,
networking, telephone equipment, racking, or associated hardware, devices, or other equipment (if any) that DGI may provide to Customer from time to time to facilitate
Customer’s access to and use of Subscription Services. DGI Supplied Equipment may include equipment that is
provided, installed, and supported by DGI in connection with the Services and which is leased to Customer by DGI or by Development Group Financial Services or another
third party supplier. DGI Supplied Equipment does not
include any hardware, devices, or other equipment that DGI may sell to Customer pursuant to a purchase order signed by DGI and Customer.
“DGI Materials” means the Subscription Services, the
CloudHub Platform, the DGI Supplied Equipment, and any
and all other information, data, documents, materials, works, and other content, devices, methods, processes, hardware, software, and other technologies and inventions, including any deliverables, technical or functional descriptions, requirements, plans, or reports, that are provided or used by DGI or any subcontractor in connection with the Services or otherwise comprise or relate to the Services or the CloudHub Platform, and all intellectual property provided to Customer or any Authorized User in connection with the foregoing (whether owned by DGI or licensed to DGI from a third
party).
“Early Termination Cost” means costs payable to DGI as
a result of the early termination of part or all of contracted Subscription Services as specifically stated herein.
“Implementation Services” means services provided by
DGI to Customer in connection with the installation and configuration of the CloudHub Platform, the DGI Supplied Equipment, and the Subscription Services for use by
Customer and its Authorized Users, pursuant to a Services Order under this Agreement that explicitly describes such Implementation Services.
“Non-Recurring Charges” means any and all one-time
charges for Services including fees directly charged by DGI and those passed through to Customer from DGI’s
subcontractors and/or third-party providers. Non-Recurring Charges include but are not limited to Implementation Fees, special construction charges, professional service and
training fees, and any other one-time charge or fee. All such Non-Recurring Charges will be established in each Service Order either as a specific amount or detailed as being
Customer’s responsibility.
“Services” means the service offerings which Customer has agreed to receive, and which DGI has agreed to provide, pursuant to a Service Order under this Agreement, including the Subscription Service, the Support Services, and any Implementation Services, in all cases as detailed and
described in the Service Orders and the applicable Service Schedules attached to or incorporated into the Services Orders. The Services may consist of services provided
directly by DGI and also of services procured by DGI from third party suppliers.
“Service Commencement Date” means the date specified
as such in the relevant Services Order or if no such date is specified, the date that the applicable Subscription Services are made available to Customer.
“Service Order” a means any written service order,
statement of work, proposal, or quote, which specifically references this Agreement, defines the Services order by Customer, and which is signed by both parties in accordance with this Agreement, together with all attachments and
exhibits thereto, including the applicable schedules
describing the Services to be provided by DGI to Customer under such Service Orders (the “Service Schedules”),
whether attached to or incorporated therein by reference.
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“SLA” means the Service Level Agreement then in effect
together with the relevant Service Schedules attached to or incorporated into any Service Order which specifies the target performance levels of the Subscription Services, all as may be amended by DGI from time to time.
“Subscription Fees” mean all monthly recurring fees
charged to Customer for the use of Subscription Services as established in the applicable Service Orders.
“Subscription Services” means the Services provided by
DGI to Customer, pursuant to a Service Order under this Agreement, which are provided on an ongoing basis and for which Customer incurs monthly recurring fees or other
charges for its access to or use of those Services, in all cases as specifically described in the Service Orders and the applicable Service Schedules attached to or incorporated into the Services Orders. Examples of Subscription Services may consist of software as a service offerings (“SaaS
Services”), unified communications as a service offerings (“UCaaS Services”), the CloudHub Network as a service
offerings(“NaaS Services”), the CloudHub Infrastructure as a service offerings (“IaaS Services”), platform as a service offerings (“PaaS Services”), and certain managed services. “Support Services” means the ongoing maintenance and
support that DGI has agreed to provide to Customer and
Authorized Users of the Subscription Services, pursuant to and as described in a Service Order or the SLA.
"Third-Party Products" means any products, content,
services, information, Software, equipment, or other
materials that are owned by third parties and are incorporated into the Services.
2. SERVICES; ACCESS & USE.
2.1 General. Subject to the terms and conditions of this Agreement and each applicable Service Order, DGI will
provide Customer and its Authorized Users with access to and use of the Subscription Services and all other Services described in the Service Order, during the applicable Service Term of each Service Order. By submitting a Service Order, Customer agrees to receive and pay for all Services
described in each Service Order, during the applicable
Service Term of such Service Order, as set forth in this Agreement.
2.2 Service Orders. Each Service Order entered into
during the term of this Agreement shall set forth, among other things, the specific Services ordered by Customer, the Customer location(s) where the Services are to be provided or accessed from, applicable Subscription Fees,
Implementation Fes and other charges to be paid by
Customer, the Initial Service Term for the Services, and any additional Service-specific terms and conditions governing Customers access to and use of the Services. DGI shall not be obligated to provide any Services under a Service Order until such Service Order has been signed by DGI and
Customer. Except as otherwise provided in this Agreement or a Service Order, any modifications or changes to the Services under any Service Order will be effective only if and when memorialized in a mutually agreed written change order signed by both parties.
2.3 Access and Use. Subject to the terms and conditions of this Agreement and each applicable Service Order, DGI grants Customer a revocable, non-exclusive, nonsublicensable, non-transferable right to access and use the Subscription Services and the CloudHub Platform, during the applicable Service Term of the Service Orders, solely for Customer’s internal business operations by Authorized
Users in accordance with the terms and conditions of this Agreement. To the extent applicable, DGI shall provide to Customer the necessary passwords and network links or
connections to allow Customer to access the Subscription Services and/or and the CloudHub Platform. The total
number of Authorized Users will not exceed the number set forth in the applicable Service Order, except as expressly agreed to in writing by the parties and subject to any
appropriate adjustment of the Charges payable under such Service Order.
2.4 Use Restrictions. Customer shall not, and shall not permit any Authorized Users or any other person to, access or use the Subscription Services or any DGI Materials except as expressly permitted by this Agreement and, in the case of Third-Party Products, the applicable third-party license agreement. Without limiting the forgoing, Customer shall not at any time, directly or indirectly, and shall not permit any Authorized Users or any other person to: (i) reverse engineer, decompile, disassemble, adept or otherwise
attempt to discover, derive or gain access to the source code, object code or underlying structure, ideas, know-how or algorithms relevant to the Services or any software,
documentation or data related to the Services (“Software”); (ii) copy, modify, or create derivative works based on the Services, any Software, or any DGI Materials, in whole or in part; (iii) rent, lease, lend, sell, license, sublicense, assign, distribute, publish, transfer, or otherwise make available the Services, any Software, or any DGI Materials to any person or entity, including on or in connection with the internet or any time-sharing, service bureau, software as a service, cloud, or other technology or service; (iv) remove any
proprietary notices from the Services or any DGI Materials; or (v) use the Services or any DGI Materials in any manner or for any purpose that infringes, misappropriates, or
otherwise violates any intellectual property right or other right of any person, or that violates any applicable law.
2.5 Service Levels. Subject to the terms and conditions of this Agreement and each applicable Service Order, during
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the Service Term of each Service Order, DGI will use
commercially reasonable efforts to make the Subscription Services available in accordance with the service levels set out in the SLA and to provide Customer and its Authorized Users with the Support Services described in the SLA and the relevant Service Orders. In all cases and under all circumstances, DGI’s obligations under this Section 2.5, the SLA, and/or any Service Order shall be and remain
conditioned upon Customer’s performance its obligations under this Agreement, including Customer’s timely payment of all amounts due under this Agreement.
2.6 Reservation of Rights. DGI reserves all rights not
expressly granted under this Agreement. Except for the
limited rights and licenses expressly granted under this Agreement, nothing in this Agreement grants, by
implication, waiver, estoppel, or otherwise, to Customer or any third party any intellectual property rights or other right, title, or interest in or to the Services or DGI Materials.
2.7 Suspension. DGI may, directly or indirectly, and
suspend, terminate, or otherwise deny Customer's and any Authorized User's access to or use of all or any part of the Services or DGI Materials, without incurring any resulting obligation or liability, if: (a) DGI r receives a judicial or other governmental demand or order, subpoena, or law
enforcement request that expressly or by reasonable
implication requires DGI to do so; or (b) DGI believes, in its good faith and reasonable discretion, that: (i) Customer or any Authorized User has failed to comply with any material term of this Agreement, or accessed or used the Services beyond the scope of the rights granted or for a purpose not authorized under this Agreement or in any manner that does not comply with any material instruction or requirement of this Agreement or the applicable flow through provisions referred to in the end-user license agreements, equipment leases, or other agreements that accompany such Third
Party-Products; (ii) Customer or any Authorized User is, has been, or is likely to be involved in any fraudulent,
misleading, or unlawful activities relating to or in connection with any of the Services; or (iii) this Agreement expires or is terminated. This Section 2.7 does not limit any of DGI's other rights or remedies, whether at law, in equity, or under this Agreement.
3. DGI SUPPLIED EQUIPMENT.
3.1 DGI Supplied Equipment. As set forth in each
Service Order, DGI may provide Customer with certain DGI Supplied Equipment for use by Customer during the Service Term of the applicable Service Order. It is understood and agreed that such DGI Supplied Equipment is provided and made available to Customer on a rental basis between
Customer and the owner of the equipment, whether such
owner is DGI, Development Group Financial Services or
another third party supplier (the “Equipment Lessor”). DGI shall ship the DGI Supplied Equipment to Customer FOB
destination, unless otherwise specified in the Service Order.
Customer shall not remove any DGI Supplied Equipment
from the Customer’s location without the prior written
consent of the Equipment Lessor.
3.2 Equipment Leasing & Financing Arrangements.
To the extent that Customer elects to receiving financing for the Services through Development Group Financial Services or to the extent that any DGI Supplied Equipment is made available to Customer through Development Group
Financial Services or another third-party Equipment Lessor, Customer acknowledges and agrees that its use of such
equipment shall be: (i) conditioned upon Customer entering into a financing agreement and/or an equipment lease
agreement with the third-party Equipment Lessor in the
formed attached to or supplied with the relevant Service Order; and (i) subject to the terms and conditions set forth in such financing agreement and/or an equipment lease
agreement.
3.3 Title to Equipment. The DGI Supplied Equipment
shall always remain the personal property of the Equipment Lessor. Customer shall have no right or interest in or to the DGI Supplied Equipment except as provided in this
Agreement, the applicable Service Order, and the financing agreement and/or an equipment lease agreement between
Customer and the Equipment Lessor (if applicable), and
shall hold the DGI Supplied Equipment subject and
subordinate to the rights the Equipment Lessor. Customer will, at its own expense, keep the DGI Supplied Equipment free and clear from any liens or encumbrances of any kind) and will indemnify and hold the Equipment Lessor harmless from and against any loss or expense caused by Customer’s failure to do so. Customer shall give the Equipment Lessor immediate written notice of any loss, theft, attachment or judicial process affecting the DGI Supplied Equipment or the Equipment Lessor’s ownership. Customer will not
remove, alter or destroy any labels on the DGI Supplied Equipment stating that it is the property of the Equipment Lessor and shall allow the inspection of the DGI Supplied Equipment by the Equipment Lessor at any time.
4. IMPLEMENTATION AND ACCEPTANCE.
4.1 Implementation. To the extent applicable, promptly
upon the parties' execution of a Service Order, DGI shall provide Implementation Services (for the DGI Supplied
Equipment, the CloudHub Platform or other items set forth in the Service Order) in accordance with the timeline and specifications set forth in a Service Order, unless Customer or a third party on behalf of Customer performs the required implementation to enable any Services.
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4.2 Acceptance. For Implementation Services provided
by DGI, Customer shall have seven (7) days from
completion of the Implementation Services or such period set forth in a corresponding Service Order (“Notice Period”) in which to inspect the products and deliverables provided under such Implementation Services and either accept such products and deliverables or provide written notice to DGI of any noncompliance with the specifications set forth in the applicable Service Order (a “Rejection Notice”). All
products and deliverables shall be deemed accepted by
Customer either upon written acceptance by Customer or
expiration of the Notice Period without Customer delivery to DGI of a Rejection Notice (“Final Acceptance”). DGI shall take reasonable measures to correct any non-conforming
deliverable and upon its completion of all such measures DGI shall notify Customer in writing and the deliverables shall be resubmitted to Customer for Final Acceptance in accordance with the process set forth in this subsection. The parties shall repeat the foregoing procedure until Final Acceptance; provided that, if the Implementation Services are not completed within ninety (90) days after the
anticipated Service Commencement Date set forth in the
applicable Service Order, either party may elect to cancel the relevant Service Order, upon at least ten (10) days’ prior written notice to the other party.
5. OTHER TERMS GOVERNING CUSTOMER’S
USE OF THE SERVICES.
5.1 General. Customer is responsible and liable for all uses of the Subscription Services and DGI Materials
resulting from access provided by Customer, directly or indirectly, whether such access or use is permitted by or in violation of this Agreement. Without limiting the generality of the foregoing, Customer is responsible for all acts and omissions of Authorized Users, and any act or omission by an Authorized User that would constitute a breach of this Agreement if taken by Customer will be deemed a breach of this Agreement by Customer. Customer shall use reasonable efforts to make all Authorized Users aware of this
Agreement's provisions as applicable to such Authorized User's use of the Services, and shall cause Authorized Users to comply with such provisions.
5.2 Acceptable Use Policy. Customer shall use the
Services only for lawful purposes. With regard to
Subscription Services, Customer shall adhere to DGI's
Acceptable Use Policy ("AUP") located at
www.dgi.rocks/legal, as may be amended from time to time, which is incorporated herein by reference. Customer agrees comply with the AUP. In the event of Customer’s material breach of the AUP, including without limitation any
copyright infringement, DGI may suspend or terminate
Customer’s access to the Services, in addition to such other remedies as DGI may have at law or in equity pursuant to this Agreement. Neither this Agreement nor the AUP
requires that DGI take any action against Customer or any other customer for violating the AUP, but DGI is free to take any such action it sees fit.
5.3 Third-Party Products. DGI may from time to time
make Third-Party Products available to Customer in
connection with the Services. Customer acknowledges and agrees that its use of such Third-Party Products are subject to the terms and conditions of the third party, which may include additional fees and charges, and the applicable flow through provisions referred to in the end-user license
agreements, equipment leases, or other agreements that
accompany such Third Party-Products. If Customer does not agree to abide by the applicable terms for any such ThirdParty Products, then Customer should not install, access, or use such Third-Party Products.
5.4 Control of Customer Systems. Except as otherwise
expressly provided in this Agreement, as between the
parties, Customer has and will retain sole control over the operation, maintenance, and management of, and all access to and use of, the Customer Systems, and sole responsibility for any and all access to and use of the DGI Materials by or through the Customer Systems or any other means controlled by Customer or any Authorized User.
5.5 Customer Data Backups. The Services do not
replace the need for Customer to maintain regular data
backups or redundant data archives. Customer
acknowledges and agrees that: (i) Customer will remain
responsible for creating regular backups of the Customer Data and all other files, data and information that resides on that reside on, are transferred through, and/or that are attached to the Customer Systems, the DGI Supplied
Equipment, or any Services, and (ii) DGI HAS NO
OBLIGATION OR LIABILITY FOR ANY LOSS,
ALTERATION, DESTRUCTION, DAMAGE,
CORRUPTION, OR RECOVERY OF ANY SUCH
CUSTOMER DATA.
5.6 Access and Cooperation. Customer shall at all
times during the term of this Agreement: (a) provide DGI personnel with such access to Customer's premises and
Customer Systems as is necessary for DGI to perform the Services in accordance with this Agreement, to maintain the DGI Supplied Equipment and Services, and to remove the
DGI Supplied Equipment and Services upon expiration or
termination of this Agreement or a Service Order; and (b) provide all cooperation and assistance as DGI may
reasonably request to enable DGI to exercise its rights and perform its obligations under and in connection with this Agreement.
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5.7 Effect of Customer Failure or Delay. DGI is not
responsible or liable for any delay or failure of performance caused in whole or in part by Customer's delay in
performing, or failure to perform, any of its obligations under this Agreement. Any material delay in or disruption to the Services caused by Customer's delay in performing, or failure to perform, any of its obligations under this
Agreement shall be excluded from the calculation of any Service outages under the SLA.
5.8 Corrective Action and Notice. If Customer becomes
aware of any actual or threatened activity prohibited by this Agreement, Customer shall, and shall cause its Authorized Users to, immediately: (a) take all reasonable and lawful measures within their respective control that are necessary to stop the activity or threatened activity and to mitigate its effects; and (b) notify DGI of any such actual or threatened activity.
5.9 DGI HAS NO CONTROL OVER THE
INTERNET OR PUBLIC TELEPHONE NETWORKS.
CUSTOMER ACKNOWLEDGES THAT DGI DOES NOT
OPERATE OR CONTROL THE INTERNET, PUBLIC
TELEPHONE NETWORKS OR THE EXACT OR
APPARENT GEOLOCATION OF IP ADDRESSES.
CUSTOMER AND ITS AUTHORIZED USERS ASSUME
ALL RISK OF LOSS OR DAMAGE THAT MAY ARISE
FROM USE OR ACCESS TO THE INTERNET AND/OR
PUBLIC TELEPHONE NETWORKS, AND ASSUME
THE SOLE RESPONSIBILITY TO EVALUATE THE
ACCURACY, MERCHANTABILITY, COMPLETENESS
AND USEFULNESS OF ALL MERCHANDISE,
OPINIONS, ADVICE, SERVICES AND OTHER
INFORMATION PROVIDED THROUGH THE
SERVICES OR ON THE INTERNET AND/OR PUBLIC
TELEPHONE NETWORKS.
6. CHARGES; PAYMENTS; TAXES.
6.1 Charges. Customer shall pay DGI the Subscription
Fees, the Non-Recurring Charges, and any other fees,
reimbursable expenses, and charges as set forth in each Service Order and this Agreement (the “Charges”), without offset or deduction. DGI or its designated billing agent will invoice Customer monthly in advance for Subscription Fees and in arrears for all Non-Recurring Charges, any usagebased charges, and all other fees and Charges. All NonRecurring Charges are fully earned by DGI at the time they relevant Services are performed. DGI or its designated
billing agent shall commence billing for Subscription Fees on the Service Commencement Date of the applicable
Service.
6.2 Payment Terms. Customer consents to receiving
invoices electronically and agrees to make payment upon receipt of invoice, or such later date if specified on the invoice, to the location and in the manner directed on the invoice. Should Customer dispute any invoiced Charges,
Customer must notify DGI of its dispute in writing and in such detail as necessary for DGI to evaluate the dispute.
Such written dispute must be delivered to DGI within ten (10) days of the applicable invoice date or Customer’s right to dispute Charges shall be waived.
6.3 Late Payments. If Customer fails to make any
payment when due, without limiting DGI’s other rights and remedies: (i) DGI may charge interest on the past due
amount at the rate of 1.5% per month calculated daily and compounded monthly or, if lower, the highest rate permitted under applicable law; (ii) Customer shall reimburse DGI for all costs incurred in collecting any late payments or interest, including attorneys' fees, court costs, and collection agency fees; and (iii) if such failure continues for ten (10) days or more from the original due date, DGI may suspend
Customer's and its Authorized Users' access to any portion or all of the Services until such amounts are paid in full.
6.4 Taxes. All Subscription Fees, Implementation
Fees, and other amounts payable by Customer under this
Agreement for the Services are exclusive of taxes and similar assessments. Unless Customer provides DGI with valid and accurate tax exemption certificates when required in the locations where Services are provided prior to the applicable monthly invoice date, Customer shall be responsible for and shall pay when due all sales, use, and excise taxes, universal service fees, recovery fees, and any other taxes, duties, charges, and fees of any kind imposed by any federal, state, or local governmental or regulatory authority on the Services or on any amounts payable by Customer hereunder, other
than any taxes imposed on DGI's income.
7. TERM AND TERMINATION.
7.1 Agreement Term. This Agreement shall become
effective on the Effective Date set forth on the Cover Page and, unless terminated earlier pursuant any of this
Agreement's express provisions, shall remain in full force and effect until all Service Orders have expired or are terminated in accordance with their terms.
7.2 Service Order Terms; Automatic Renewals.
Unless specifically stated otherwise in a Service Order and unless terminated earlier pursuant to any of the express provisions of this Agreement or said Service Order: (a) the initial term of each Service Order will commence on the relevant Service Commencement Date and will continue in effect for the number of months specified in the Service Order from the Service Commencement Date (the "Initial
Service Term"); and (b) thereafter, such Service Order will automatically renew for up to two (2) successive periods of
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twelve (12) months each (each a "Renewal Term"), unless either party gives the other party written notice of nonrenewal at least ninety (90) days prior to the expiration of the Initial Service Term or the then-current Renewal Term. The Initial Service Term and any Renewal Terms are collectively referred to herein as the "Service Term".
7.3 Termination for Cause. In addition to any other
express termination right set forth elsewhere in this
Agreement: (a) DGI may terminate this Agreement and/or
any Service Order, effective on written notice to Customer, if Customer fails to pay any amount when due hereunder, and such failure continues more than ten (10) days after DGI's delivery of written notice thereof; (b) either party may terminate this Agreement and/or any Service Order,
effective on written notice to the other party, if the other party materially breaches the provisions of this Agreement, and such breach remains uncured thirty (30) days after the non-breaching party provides the breaching party with
written notice of such breach; or (c) either party may
terminate this Agreement, effective immediately upon
written notice to the other party, if the other party, voluntary or involuntary, (i) files for bankruptcy or otherwise becomes subject to any proceeding under any bankruptcy or
insolvency law; (ii) assigns any or all of its assets for the benefit of its creditors; or (iii) files or dissolution or liquidation or applies for or has a receiver, trustee, or similar agent appointed to take charge of or sell any material portion of its property or business.
7.4 Effect of Expiration or Termination. The
termination of any Service Order shall not otherwise effect the term of this Agreement or any other Service Order. If Customer terminates this Agreement or any Service Order for cause: (a) Customer will pay for all Services rendered up to the date Customer has ceased all use of Services and returned all DGI Materials; (b), DGI will reimburse
Customer for any amounts prepaid by Customer for Services not rendered; and (c) Customer shall be relieved of any future payments due under the terminated Service Order(s).
Otherwise, upon any termination of this Agreement or any Service Order Form, Customer shall pay for: (a) all Services rendered up to the date Customer has ceased all use of
Services and returned all DGI Materials; and (b) the Early Termination Costs set forth below. All use of Services after termination of a Service Order shall be billed at the greater of the rates set for in the terminated Service Order or DGI’s then standard rates.
7.5 Early Termination Costs Payable by Customer.
The Subscription Fees charged by DGI are based on
Customer’s agreement to purchase the quantity of Services for the full Service Period set forth in the governing Service Order. Thus, other than termination by Customer under
Section 7.2 (notice of non-renewal) or pursuant to Section
7.3 (for cause), if this Agreement and/or any Service Order or if any Subscription Services are terminated by either party, in whole or in part, for any other reason prior to the expiration of the applicable Initial Service Period or the then current Renewal Term, Customer shall pay to DGI an Early Termination Cost in an amount equal to: (i) the Subscription Fees and any other monthly recurring Charges for each
applicable Service Order(s) at the time of termination
multiplied by the number of months remaining in the thencurrent Initial Service Term or Renewal Period, whichever is applicable; plus (ii) all charges incurred by DGI to its suppliers and other third parties for the provision or
disconnection of Service to Customer. Customer
acknowledges and agrees that it would be difficult or
impossible to calculate DGI’s actual damages incurred as a result of such early termination and that these Early
Termination Costs represent a reasonable attempt to
establish fair and equitable compensation payable to DGI resulting from any such early termination and are not
intended as penalties.
7.6 Return of DGI Materials upon Expiration or
Termination. Upon expiration or termination of this
Agreement, Customer will assemble all DGI Materials,
including all DGI Supplied Equipment, for delivery to DGI.
DGI will be allowed prompt access to Customer’s premises for the purpose of removing such materials and equipment.
Customer will ensure that Customer’s landlords are
informed of the Equipment Lessor’s ownership of the DGI Supplied Equipment and, if requested by DGI or another
Equipment Lessor, will provide a letter from each such
landlord acknowledging the Equipment Lessor’s right of
access to Customer’s premises for the purpose of removing the DGI Supplied Equipment without restriction.
7.7 Survival. Subject to the limitations and other
provisions of this Agreement, Customer’s obligations under this Agreement to pay all amounts owed to DGI, this Section 7, Customer’s obligations under this Agreement to pay all amounts owed to DGI and the provisions of the Sections of this Agreement with the headings Confidentiality,
Intellectual Property Ownership, Limitations of Liability, Non-solicitation, Miscellaneous, and any other provisions of this Agreement which by their nature should survive, shall survive any expiration or termination of this Agreement.
8. CONFIDENTIALITY.
8.1 Confidential Information. From time to time during
the course of performance of this Agreement, either party hereto (as the “Disclosing Party”) may disclose or make available to the other party (“Receiving Party”) information about its business affairs, products, confidential intellectual property, trade secrets, third-party confidential information,
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and other sensitive or proprietary information, whether orally or in written, electronic, or other form or media, and whether or not marked, designated or otherwise identified as "confidential" (collectively, "Confidential Information").
Confidential Information does not include information that, at the time of disclosure is: (a) in the public domain; (b) known to the Receiving Party at the time of disclosure; (c) rightfully obtained by the Receiving Party on a nonconfidential basis from a third party; or (d) independently developed by the Receiving Party.
8.2 Protection of Confidential Information. The
Receiving Party shall not disclose the Disclosing Party's Confidential Information to any person or entity, except to the Receiving Party's employees who have a need to know the Confidential Information for the Receiving Party to exercise its rights or perform its obligations hereunder.
Notwithstanding the foregoing, each party may disclose
Confidential Information to the limited extent required (i) in order to comply with the order of a court or other
governmental body, or as otherwise necessary to comply
with applicable law, provided that the party making the disclosure pursuant to the order shall first have given written notice to the other party and made a reasonable effort to obtain a protective order; or (ii) to perform its obligations under this Agreement or to establish or enforce a party's rights under this Agreement. On the expiration or
termination of the Agreement, the Receiving Party shall promptly return to the Disclosing Party all copies, whether in written, electronic, or other form or media, of the
Disclosing Party's Confidential Information, or destroy all such copies and certify in writing to the Disclosing Party that such Confidential Information has been destroyed. Each
party's obligations of non-disclosure with regard to
Confidential Information are effective as of the Effective Date and will expire five (5) years from the date first disclosed to the Receiving Party; provided, however, with respect to any Confidential Information that constitutes a trade secret (as determined under applicable law), such obligations of non-disclosure will survive the termination or expiration of this Agreement for as long as such Confidential Information remains subject to trade secret protection under applicable law.
9. INTELLECTUAL PROPERTY OWNERSHIP.
9.1 Ownership of DGI Materials. Customer
acknowledges that, as between DGI and Customer, DGI
owns all right, title, and interest, including all intellectual property rights, in and to the DGI Materials and, with respect to Third-Party Products, the applicable third-party providers own all right, title, and interest, including all intellectual property rights, in and to the Third-Party Products. Customer shall have no right, license, or authorization with respect to any of the DGI Materials except as expressly set forth in this Agreement or the applicable third-party license, in each case subject to the terms of use set forth in this Agreement.
9.2 Customer Data. DGI acknowledges that, as between
DGI and Customer, Customer owns all right, title, and
interest, including all intellectual property rights, in and to the Customer Data. Customer hereby grants to DGI a nonexclusive, royalty-free, worldwide license to reproduce, distribute, and otherwise use and display the Customer Data and perform all acts with respect to the Customer Data as may be necessary for DGI to provide the Services to
Customer, and a non-exclusive, perpetual, irrevocable,
royalty-free, worldwide license to reproduce, distribute, modify, and otherwise use and display Customer Data
incorporated within the Aggregated Statistics.
9.3 Consent to Use Customer Data. Notwithstanding
anything to the contrary in this Agreement, DGI may
monitor Customer's use of the Services and collect and
compile data and information related to Customer's use of the Services to be used by DGI in an aggregated and
anonymized manner, including to compile statistical and performance information related to the provision and
operation of the Services ("Aggregated Statistics"). As between Customer and DGI, all right, title, and interest in Aggregated Statistics, and all intellectual property rights therein, belong to and are retained solely by DGI. Customer acknowledges that DGI may compile Aggregated Statistics based on Customer Data input into or through the Services.
Customer agrees that DGI may (i) make Aggregated
Statistics publicly available in compliance with applicable law, and (ii) use Aggregated Statistics to the extent and in the manner permitted under applicable law.
10. DATA USE AND PROTECTION.
10.1 Data Protection. Each party shall comply with any
applicable data protection legislation existing in all
jurisdictions in which this Agreement is performed
(together, the “Data Protection Laws”). The parties agree the provision of the Services may involve the collection, processing, storage or recording of certain “Personal Data” or “Personal Information” (as defined by the applicable Data Protection Laws) of Customer and the Authorized
Users. DGI hereby undertakes that it will: (i) use any such Personal Data solely for the purpose of providing the
Services; (ii) process the Personal Data in accordance with Customer's instructions for the duration of the Agreement in order to provision the Services; (iii) implement and maintain commercially reasonable technical and organizational
measures, insofar as it is possible, for the fulfilment of Customer’s obligations to respond to requests by Authorized Users of the Services (“Data Subjects”); (iv) take reasonable steps to destroy or permanently de-identify Personal Data
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when it no longer is necessary to retain it; (v) ensure that its personnel authorized to process the Personal Data have
committed themselves to confidentiality or are under
appropriate statutory obligations of confidentiality; (vi) notify the Customer of a “Personal Data Breach” as defined under the Data Protection Laws without undue delay after becoming aware of it; and (vii) implement commercially
reasonable security measures to ensure an adequate level of protection of the Personal Data. According to certain Data Protection Laws, the parties acknowledge, when applicable, DGI acts as a “Data Processor” in relation to the Personal Data of Customer it processes on Customer's behalf and
Customer remains the “Data Controller” with respect to such Personal Data. Customer is informed that, for the purpose of providing the Services, its Personal Data is or may be collected, processed and/or stored by DGI, its affiliates and its third party suppliers in the United States of America, the United Kingdom, the European Union and the rest of the
world. Customer represents and warrants it has a valid
lawful basis in order for DGI to process the Data Subject’s Personal Data in connection with the Services in accordance with applicable Data Protection Laws.
10.2 Privacy Policy. This Agreement and any use of the
Services are also subject to DGI’s online privacy policy ("Privacy Policy") located at [www.dgi.rocks/legal], as may be amended from time to time, which is incorporated herein by reference. The Privacy Policy is subject to change as described therein. By accessing, using, and providing
information to or through the Services, Customer
acknowledges that it has reviewed and accepted the Privacy Policy, and it consents to all actions taken by DGI with respect to Customer’s information in compliance with the then-current version of the Privacy Policy.
10.3 Message Delivery Services. If Customer uses the
Services to send fax, email, phone, text, SMS, or other messages (“Messages”) to any recipients (“Recipients”) as a condition for using such Services, Customer represents and warrants: (a) that it will not make any automated out-dials to induce the purchase of goods or services or to solicit a charitable contribution; and (b) it has the legal right to send all Messages to the Recipients (including obtaining any required consents from the Recipients) and the content, timing and purpose of all Messages, campaigns and
programs are in compliance with all applicable laws, rules and regulations; and (c) that Customer is the sender of all Messages and DGI and its third party suppliers are merely acting at Customer’s direction as the broadcaster of the Messages.
11. REPRESENTATIONS AND WARRANTIES.
11.1 Mutual Representations and Warranties. Each
party represents and warrants to the other party that: (a) it is duly organized, validly existing, and in good standing as a corporation or other entity under the laws of the jurisdiction of its incorporation or other organization; (b) it has the full right, power, and authority to enter into and perform its obligations and grant the rights, licenses, consents, and authorizations it grants or is required to grant under this Agreement; (c) the execution of this Agreement by its
representative whose signature is set forth at the end of this Agreement has been duly authorized by all necessary
corporate or organizational action of such party; and (d) when executed and delivered by both parties, this Agreement will constitute the legal, valid, and binding obligation of such party, enforceable against such party in accordance with its terms.
11.2 Additional DGI Representations, Warranties, and
Covenants. DGI represents, warrants, and covenants to
Customer that DGI will perform the Services using
personnel of required skill, experience, and qualifications and in a professional and workmanlike manner in
accordance with generally recognized industry standards for similar services and will devote adequate resources to meet its obligations under this Agreement. Services may be
temporarily unavailable for scheduled maintenance or for unscheduled emergency maintenance, either by DGI or by
third-party providers, or because of other causes beyond DGI’s reasonable control, but DGI shall use reasonable
efforts to provide advance notice in writing or by e-mail of any scheduled service disruption.
11.3 Disclaimer of Warranties. EXCEPT FOR THE
EXPRESS WARRANTIES SPECIFIED IN THIS
SECTION 11, ALL SERVICES AND DGI MATERIALS
ARE PROVIDED "AS IS." DGI AND ITS SUPPLIERS
SPECIFICALLY DISCLAIMS ALL IMPLIED
WARRANTIES OF MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE, TITLE, AND NONINFRINGEMENT, AND ALL WARRANTIES ARISING
FROM COURSE OF DEALING, USAGE, OR TRADE
PRACTICE. WITHOUT LIMITING THE FOREGOING,
DGI MAKES NO WARRANTY OF ANY KIND THAT
THE SERVICES OR DGI MATERIALS, OR ANY
PRODUCTS OR RESULTS OF THE USE THEREOF,
WILL MEET CUSTOMER'S OR ANY OTHER PERSON'S
REQUIREMENTS, OPERATE WITHOUT
INTERRUPTION, ACHIEVE ANY INTENDED RESULT,
BE COMPATIBLE OR WORK WITH ANY SOFTWARE,
SYSTEM, OR OTHER SERVICES, OR BE SECURE,
ACCURATE, COMPLETE, FREE OF HARMFUL CODE,
OR ERROR FREE. ALL THIRD-PARTY PRODUCTS
ARE PROVIDED "AS IS" AND ANY
REPRESENTATION OR WARRANTY OF OR
CONCERNING ANY THIRD-PARTY PRODUCTS IS
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PARTY OWNER OR SUPPLIER OF THE THIRD-PARTY
PRODUCTS.
12. LIMITATIONS OF LIABILITY.
12.1 EXCLUSION OF CERTAIN DAMAGES. IN NO
EVENT WILL DGI OR ANY OF ITS LICENSORS,
SERVICE PROVIDERS, OR SUPPLIERS BE LIABLE
UNDER OR IN CONNECTION WITH THIS
AGREEMENT OR ITS SUBJECT MATTER UNDER
ANY LEGAL OR EQUITABLE THEORY, INCLUDING
BREACH OF CONTRACT, TORT (INCLUDING
NEGLIGENCE), STRICT LIABILITY, AND
OTHERWISE, FOR ANY: (A) LOSS OF PRODUCTION,
USE, BUSINESS, REVENUE, OR PROFIT OR
DIMINUTION IN VALUE; (B) IMPAIRMENT,
INABILITY TO USE OR LOSS, INTERRUPTION OR
DELAY OF THE SERVICES[, OTHER THAN FOR THE
ISSUANCE OF ANY APPLICABLE SERVICE CREDITS
PURSUANT TO THE SLA; (C) LOSS, DAMAGE,
CORRUPTION OR RECOVERY OF DATA, OR
BREACH OF DATA OR SYSTEM SECURITY; (D) COST
OF REPLACEMENT GOODS OR SERVICES; (E) LOSS
OF GOODWILL OR REPUTATION; OR (F)
CONSEQUENTIAL, INCIDENTAL, INDIRECT,
EXEMPLARY, SPECIAL, ENHANCED, OR PUNITIVE
DAMAGES, REGARDLESS OF WHETHER SUCH
PERSONS WERE ADVISED OF THE POSSIBILITY OF
SUCH LOSSES OR DAMAGES OR SUCH LOSSES OR
DAMAGES WERE OTHERWISE FORESEEABLE, AND
NOTWITHSTANDING THE FAILURE OF ANY
AGREED OR OTHER REMEDY OF ITS ESSENTIAL
PURPOSE.
12.2 LIMIT ON MONETARY LIABILITY. IN NO
EVENT WILL THE AGGREGATE LIABILITY OF DGI
FOR ANY CLAIM ARISING OUT OF OR RELATED TO
THIS AGREEMENT, WHETHER ARISING UNDER OR
RELATED TO BREACH OF CONTRACT, TORT
(INCLUDING NEGLIGENCE), STRICT LIABILITY, OR
ANY OTHER LEGAL OR EQUITABLE THEORY,
EXCEED THE TOTAL AMOUNTS PAID BY
CUSTOMER UNDER THE APPLICABLE SERVICE
ORDER IN THE ONE (1) YEAR PERIOD PRECEDING
THE EVENT GIVING RISE TO THE CLAIM. THE
FOREGOING LIMITATION WILL APPLY EVEN IF
ANY REMEDY FAILS OF ITS ESSENTIAL PURPOSE
12.3 Exceptions. The exclusions and limitations in
Section 12.1 and Section 12.2 do not apply to liability for DGI's gross negligence or willful misconduct.
13. NON-SOLICITATION OF EMPLOYEES.
Customer agrees that during the term of this Agreement and for a period of one (1) year after the expiration or any termination of this Agreement, Customer shall not, directly or indirectly, solicit for purposes of employment, hire, or offer to hire or otherwise engage any individual who is, or was in the then preceding six (6) months, employed by DGI or encourage any such individual to terminate his or her employment with DGI, except: (a) with the prior written consent of DGI; or (b) pursuant to a general solicitation through job postings on its web site or recruitment web sites, through mass media publications, or by a search firm,
provided that such general solicitation is not directed specifically to any employees of DGI or any individual
employed by DGI in the then preceding six (6) months. In the event of a violation of this Section 13 by Customer, DGI will be entitled to liquidated damages in an amount equal to one times (1x) the annual compensation paid by DGI to the applicable employee and Customer shall pay such amount
within thirty (30) days from the date of receipt of invoice therefor.
14. MISCELLANEOUS.
14.1 Entire Agreement. This Agreement (together with
the Service Orders and all related exhibits and schedules thereto, and any other documents incorporated herein or therein by reference) constitutes the sole and entire
agreement of the parties with respect to the subject matter of this Agreement and supersedes all prior and
contemporaneous understandings, agreements, and
representations and warranties, both written and oral, with respect to such subject matter.
14.2 Notice. Wherever one party is required to give notice to the other party under this Agreement, such notice shall be in writing and will be deemed effective: (a) five (5) calendar days after deposit in the United States Mail, postage prepaid, certified or registered mail, return receipt requested; (b) three (3) calendar days after deposit with a national
overnight courier; (c) if given one (1) day after sent by national overnight courier; or (d) upon delivery if delivered in person or by messenger, in each case, addressed to the addresses set forth on the Cover Page (or such other address as any party may be notified of as described above).
14.3 Force Majeure. In no event shall either party be
liable to the other party], or be deemed to have breached this Agreement, for any failure or delay in performing its
obligations under this Agreement (except for any obligations to make payments), if and to the extent such failure or delay is caused by any circumstances beyond such party's
reasonable control, including but not limited to acts of God, flood, fire, earthquake, explosion, war, terrorism, invasion, riot or other civil unrest, strikes, labor stoppages or slowdowns or other industrial disturbances, or passage of law or any action taken by a governmental or public
authority, including imposing an embargo.
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14.4 Amendment and Modification; Waiver. Except as
otherwise provided herein, no amendment to or modification of this Agreement is effective unless it is in writing and signed by an authorized representative of each party. No waiver by any party of any of the provisions hereof will be effective unless explicitly set forth in writing and signed by the waiving party. Except as otherwise set forth in this Agreement, (i) no failure to exercise, or delay in exercising, any right or remedy arising from this Agreement will operate or be construed as a waiver thereof and (ii) no single or partial exercise of any right or remedy hereunder will
preclude any other or further exercise thereof or the exercise of any other right or remedy.
14.5 Severability. If any provision of this Agreement is found to be unenforceable or invalid, that provision will be limited or eliminated to the minimum extent necessary so that this Agreement will otherwise remain in full force and effect and enforceable.
14.6 Governing Law. This Agreement shall be governed
by the laws of the State of California without regard to its conflict of laws provisions.
14.7 BINDING ARBITRATION. In the event of any
dispute, controversy, or claim arising out of or relating to the Services, this Agreement or the breach or termination of this Agreement (a "Dispute"), which the parties are unable to resolved through good-faith negotiations, such Dispute shall be submitted to and resolved by final and binding arbitration administered by the American Arbitration Association (the “Arbitral Tribunal”) in accordance with its Commercial
Arbitration Rules. Judgment on the award rendered by the Arbitral Tribunal may be entered in any court having
jurisdiction thereof. The Arbitral Tribunal shall have the sole power to rule on any challenge to its own jurisdiction and all issues regarding arbitrability shall be decided solely by the Arbitral Tribunal. The place of arbitration shall be Redding, California. The number of arbitrators shall be three (3) with each party choosing one (1) arbitrator and those arbitrators jointly choosing the third. This Section shall be the exclusive mechanism for resolving any Dispute that may arise from time to time but shall not preclude the parties from seeking provisional remedies in aid of arbitration from a court of appropriate jurisdiction.
14.8 Assignment. Customer may not assign any of its
rights or delegate any of its obligations hereunder, in each case whether voluntarily, involuntarily, by operation of law or otherwise, without the prior written consent of DGI. Any purported assignment or delegation by Customer in violation of this Section will be null and void. DGI may transfer and assign any of its rights and obligations under this Agreement without consent. This Agreement is binding upon and inures to the benefit of the parties and their respective permitted successors and assigns.
14.9 Export Regulation. Customer shall comply with all
applicable federal laws, regulations, and rules, and complete all required undertakings (including obtaining any necessary export license or other governmental approval), that prohibit or restrict the export or re-export of the Services or any Customer Data outside the US.
14.10 No Third Party Beneficiaries. No provision of this Agreement is intended to confer any benefit upon any third party and no third party shall have the right to enforce any provision of this Agreement.
14.11 Counterparts. This Agreement may be executed in
counterparts, each of which is deemed an original, but all of which together are deemed to be one and the same
agreement. A signed copy of this Agreement delivered by facsimile, email, or other means of electronic transmission is deemed to have the same legal effect as delivery of an
original signed copy of this Agreement.
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SERVICE ORDER NO. 27659
This Service Order, effective as of the last signature date set forth below (the “Order Effective Date”), is a part of and incorporated into the Master Services Agreement between Development Group, Inc., a California corporation (“DGI”) and the customer listed below (“Customer”), dated May 23rd, 2022 (the "Agreement").
Capitalized terms not defined in this Service Order are as defined in the Agreement. In the event of any conflict between the body of the Agreement and this Service Order, the body of the Agreement shall govern.
1. CUSTOMER INFORMATION.
Customer Name: City of Healdsburg
Service Address: Billing Address: Contact Person:
401 Grove St
Healdsburg, CA 95448-
4723
401 Grove St
Healdsburg, CA 95448-4723
Adam McKenna
Email:
[email protected]
Phone: (707) 431-3311
2. GENERAL. As of the Order Effective Date, this Service Order consists of the terms set forth herein and in each of the Service Schedules and Statements of Work attached hereto (which are incorporated herein by reference). DGI agrees to provide, and Customer agrees to receive and pay for, the Services described in this Service Order on the terms and conditions of this Service Order and the Agreement.
3. SUBSCRIPTION SERVICES TO BE PROVIDED. The Subscription Services to be provided under this Service Order are described on the following attached Service Schedules:
Schedule 1: DGI>ENABLE
4. SERVICE TERM.
Initial Term: Thirty-six (36) months commencing on the date each Subscription Service is made available to Customer.
Renewal Terms: Up to two (2) successive periods of twelve (12) months each (each a "Renewal Term"), unless either party gives the other party written notice of non-renewal at least ninety (90) days prior to the expiration of the Initial Service Term or the then-current Renewal Term. The Initial Service Term and any Renewal Terms are collectively referred to herein as the "Service Term".
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5. DGI SUPPLIED EQUIPMENT, NUMBER OF AUTHORIZED USERS, AND SERVICES FEES (per unit/month):
Quantity Service Description Unit
Price/Month
Ext’d
price/month
1 DGI>ENABLE
DGI>Enable Managed Device Monitoring Service
2,266.78 2,266.78
Total MRC 2,266.78
6. PAYMENT INFORMATION. All payments shall be in US dollars and made to:
Payment Information
Development Group, Inc.
32880 Collections Center Dr
Chicago, IL 60693
Federal Tax ID: 26-3740919
Wire Transfer Information
Domestic Wire Transfer (U.S.)
Wire Routing Transit Number (RTN): 026009593
Bank Name: Bank of America
City, State: Chicago, IL
Account Number: 8188065595
Title of Account: DEVELOPMENT GROUP INC
IN WITNESS WHEREOF, each party has caused this Service Order to be executed by their duly authorized representatives as of the date shown below.
City of Healdsburg
By:
Name:
Title: Date:
DEVELOPMENT GROUP, INC.
By:
Name:
Title: Date:
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EXHIBIT B
GLOBAL SERVICE LEVEL AGREEMENT
[Attached]
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CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: August 1, 2022
SUBJECT: Renewal of the Healdsburg Tourism Improvement District PREPARED BY: Raina Allan, City Clerk
STRATEGIC INITIATIVE(S):
Establish Proactive Policies/Programs to Continue to Promote Economic Diversity & Sustainable Growth
RECOMMENDED ACTION(S):
Adopt a Resolution of Intention to renew the Healdsburg Tourism Improvement District and establish the time and place for a public meeting and public hearing.
COMMUNITY ENGAGEMENT/OUTREACH:
Should the City Council approve this resolution to initiate the District renewal process, the item will be considered at a minimum of three public meetings in the coming months, including a public meeting, a public hearing, and one additional City Council meeting if the Council passes the proposed ordinance to print. Each of those meetings will include an opportunity for public comment.
BACKGROUND:
The Property and Business Improvement District Law of 1994 grants cities and counties the authority to establish and renew “property and business improvement districts” for the purpose of levying assessments against businesses in the district to pay for the cost of certain improvements and activities benefiting those businesses paying the assessment. Funds raised are returned to the private non-profit entity governing the district.
Under the 1994 Act, a Business Improvement District (“BID”) can only be established or renewed by the submission of a written petition signed by the business owners in the proposed district who will pay more than 50% of the assessments. Petitioners are required to prepare and submit a Management District Plan along with their petition. The contents of the Management Plan lay out the boundaries of the district, the timing and method of assessments, and the improvements and activities to be financed. In addition, the Management Plan must designate the number of years the assessment will be levied. A BID can only be renewed for no more than 10
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years, unless certain other processes are followed.
Activities and improvements allowed under the 1994 Act include:
Activities
1. Promotion of public events which benefit businesses or real property in the district
2. Furnishing of music in any public place within the district
3. Promotion of tourism within the district
4. Marketing and economic development, including retail retention and recruitment
5. Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality within the district
6. Other services provided for the purpose of conferring special benefit upon assessed businesses and real property located in the district
Improvements
1. Parking facilities
2. Benches, booths, kiosks, display cases, pedestrian shelters and signs
3. Trash receptacles and public restrooms
4. Lighting and heating facilities
5. Decorations
6. Parks
7. Fountains
8. Planting areas
9. Closing, opening, widening or narrowing of existing streets
10. Facilities and/or equipment to enhance security of persons and property within the district
11. Ramps, sidewalks, plazas and pedestrian malls
12. Rehabilitation or removal of existing structures
In order to initiate proceedings to renew a BID, the City Council must first adopt a resolution of intention containing a brief description of the proposed activities and improvements, exterior boundaries, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or business owners and whether bonds will be issued. The resolution must also include the time and place for both a public meeting and public hearing on the renewal of the BID and corresponding assessments.
DISCUSSION/ANALYSIS:
In 2013 the Healdsburg Chamber of Commerce, working with the hoteliers in the City, developed and formed the Healdsburg Tourism Improvement District (“HTID”) in compliance with the 1994 Act. The HTID is an assessment district that funds the marketing and sales promotion efforts of Healdsburg lodging businesses. The HTID was renewed in 2017 for an additional five years with the addition of the District Development fund.
In early 2022, the City received notice from the HTID that the lodging businesses now wish to renew the HTID for an additional ten (10) years, beginning January 1, 2023 through December 31, 2032. At that time, the HTID also submitted the draft 2023-2032 Healdsburg Improvement
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District Management Plan (“Management Plan”) which outlined the activities to be financed with the assessment revenue.
The HTID is proposing to allocate a minimum of 12.5% of the HTID annual budget to district development projects including services, improvements and activities which the HTID suggests will improve the quality of life in the community. For 2023, approximately $187,500 of HTID revenue would be made available to support services and projects in the community.
The attached draft Management Plan has been prepared by the District’s consultant and reflects the HTID’s proposed spending plan for the life of the HTID (through 2032). The Management Plan also identifies the location of the District encompassing all existing and future lodging businesses within the boundaries of the City, proposes to continue the annual assessment rate of 2% of gross short-term room rental revenue, and identifies all of the activities to be financed including sales and marketing, district development projects, administration and operations, City administration fee and contingency/reserve. In addition, the Management Plan designates the assessments will be levied for a period of 10 years, beginning January 1, 2023 through December 31, 2032. The draft Management Plan has been accepted by the lodging businesses. (The City Council has the right to make changes to the Management Plan before giving its final approval.) The proposed Management Plan includes the following changes from the current Management Plan in place:
Time Period
Assessment
City Admin. Fee
Proposed Annual Budget
Budget Allocation Amount % Amount %
Sales and Marketing $ 360,125 60.0% $ 1,070,000 71.3%
District Development $ 135,047 22.5% $ 187,500 12.5%
Administration and Ops* $ 60,021 10.0% $ 150,000 10.0%
Contingency/Reserve $ 30,010 5.0% $ 75,000 5.0%
City Collection Fee $ 15,005 2.5% $ 17,500 0.0116%
*Admin & Ops Budget
5 years 10 years
Current Proposed
$65,000 annual cap in costs No annual cap
$ 600,209 $ 1,500,000
0.025% 0.0116%
2%
2%, and gives the HTID Board the
ability to increase or decrease the
rate annually by no more than .5%
between a range of 1% and 3%
Under the Management Plan, the Healdsburg Chamber of Commerce would continue to serve as the HTID’s Owners’ Association and be responsible for managing funds and implementing programs in accordance with the Management Plan, as well as providing annual reports to the
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City. The total HTID annual budget for the initial year of its ten (10) year operation is anticipated to be approximately $1,500,000. Signed petitions in favor of renewing the HTID have been received from business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied.
In order to initiate proceedings to renew the HTID, the City Council must first adopt the attached resolution of intention which contains a brief description of the proposed activities and improvements, exterior boundaries, the amount of the proposed assessment, a statement that the assessment will be levied on business owners and that no debt financing will be issued. The resolution also includes the time and place for a public meeting on September 6, 2022 at or after 6:00 P.M. and a public hearing on October 3, 2022 at or after 6:00 P.M. for the renewal of the HTID and corresponding assessment.
Renewal of the HTID is a four-step process, as follows:
1. Step 1 (Tonight, August 1, 2022) – Council will consider whether or not to initiate the request to renew the HTID. If Council elects to move forward with the renewal, they will adopt the Resolution of Intention to renew the HTID and set the date and time of a public meeting and a public hearing where the request for renewal will be considered further.
2. Step 2 (Proposed for September 6th) – Council will hold a public meeting to allow public testimony on the request to renew the HTID.
3. Step 3 (Proposed for October 3rd) – Council will hold a public hearing to allow public testimony on the request to renew the HTID and to allow the Council to consider approval of the renewal. At the conclusion of the public hearing, the City Council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. If the Council elects to renew the HTID, following the public hearing, they will introduce for first reading, an Ordinance of District Formation. and approve the Owners’ Association Agreement with the Chamber of Commerce to administer and implement the improvements and activities of the HTID.
4. Step 4 (Proposed for October 17th) – Council will consider adoption of the Ordinance.
Upon successful passage of the ordinance, the HTID shall be renewed, and the ordinance shall go into effect thirty (30) days after successful passage of the ordinance. Also, at this meeting the Council will approve the Owners’ Association Agreement with the Chamber of Commerce to administer and implement the improvements and activities of the HTID.
ENVIRONMENTAL STEWARDSHIP:
Not Applicable.
ALTERNATIVES:
The Council could: 1) elect not to initiate proceedings to renew the HTID, 2) make changes to the Management Plan, or 3) provide other direction to staff. As noted above, even if this action is approved, the City Council will have multiple opportunities to discuss and amend (if desired) the Management Plan at future meetings.
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FISCAL IMPACT:
The proposed assessment may not exceed 2% of the gross rental receipts from all overnight stays in the City. During the ten (10) year term, the assessment rate may be increased or decreased annually by the HTID Owners’ Association by a maximum of one half of one percent (0.5%) of gross room rental revenue per year. The total assessment rate may not exceed three percent (3%) and may not be less than one percent (1%).
Consistent with the City’s current TOT ordinance, all types of lodging 30 consecutive calendar days or less are proposed to be included in the assessment. Lodging operators would collect the assessment from their guests and report and pay the assessment when they pay their Transient Occupancy Tax. The assessment estimates the HTID would generate approximately $1,500,000 on an annual basis.
The City would function as the fiscal agent for the HTID, with responsibility for collecting revenue/payment and remitting proceeds to the Owners’ Association. The City would retain
0.0116% or approximately $17,500 per year based on the $1,500,000 annual budget to cover its costs of collection and administration. This amount is based on an assessment of the current costs to provide this service.
ENVIRONMENTAL ANALYSIS:
Pursuant to Title 14, the California Code of Regulations, Section 15378(b)(5) of the California Environmental Quality Act (“CEQA”) guidelines, the proposed action is an administrative activity of the City that will not result in direct or indirect physical changes to the environment.
ATTACHMENT(S):
Resolution
Exhibit A to Resolution
HTID Management District Plan
HTID Petitions
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CITY OF HEALDSBURG
RESOLUTION NO. xx-2022
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG DECLARING ITS INTENTION TO RENEW
THE HEALDSBURG TOURISM IMPROVEMENT DISTRICT
AND FIXING THE TIME AND PLACE OF A PUBLIC
MEETING AND A PUBLIC HEARING THEREON AND
GIVING NOTICE THEREOF
WHEREAS, the Property and Business Improvement Law of 1994, Streets and Highways Code § 36600 et seq., authorizes cities and counties to establish and renew property and business improvement districts for the purposes of promoting tourism; and WHEREAS, lodging business owners, the Healdsburg Chamber of Commerce and representatives from the City of Healdsburg have met to consider the renewal of the Healdsburg Tourism Improvement District (“HTID”); and
WHEREAS, petitions of the lodging business owners paying a majority of the proposed assessment under the HTID have been submitted to the City Clerk authorizing the adoption of this resolution.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HEALDSBURG THAT:
1. The recitals set forth herein are true and correct.
2. The City Council finds that the lodging businesses that will pay more than fifty percent (50%) of the assessment proposed in the Management District Plan have signed and submitted petitions in support of renewing the HTID. The City Council accepts the petitions and adopts this Resolution of Intention to renew the HTID and to levy an assessment on all lodging businesses within the HTID boundaries in accordance with the Property and Business Improvement District Law of 1994.
3. The City Council finds that the contents of the Draft Management District Plan satisfies all requirements of Streets and Highways Code § 36622.
4. The City Council declares its intention to renew the HTID and to levy and collect assessments on lodging businesses within the HTID boundaries pursuant to the Property and Business Improvement District Law of 1994.
5. The boundaries of the HTID shall be the boundaries of the City of Healsburg as depicted and incorporated herein as Exhibit A.
6. The name of the district shall be the Healdsburg Tourism Improvement District.
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Packet Pg. 201 Attachment: Resolution (3705 : HTID - Resolution of Intention) Resolution No. xx-2022
7. The annual assessment rate is two percent (2%) of gross short-term room rental revenue.
Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; stays by any federal or state officer or employee when on official business; stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty; and stays by any person who has signed an agreement in writing for occupancy in a lodging business for more than thirty (30) days. During the ten (10) year term, the assessment rate may be increased or decreased annually by the HTID Owners’ Association by a maximum of one half of one percent (0.5%) of gross room rental revenue per year, as described in the Management District Plan. The total assessment rate may not exceed three percent (3%) and may not be less than one percent (1%).
8. The assessments levied for the HTID shall be applied toward sales promotion and marketing programs to market Healdsburg lodging businesses as tourist, lodging, meeting and event destinations, for district development projects and for other activities as set forth in the Draft Management District Plan. Funds remaining at the end of any year may be used in subsequent years in which HTID assessments are levied as long as they are used consistent with the requirements of this resolution.
9. The renewed HTID will have a ten (10) year term, beginning January 1, 2023 through December 31, 2032, or as soon as possible thereafter, and end ten (10) years from its start date, unless renewed pursuant to Streets and Highways Code § 36660.
10. Bonds shall not be issued.
11. The time and place for the public meeting to renew the HTID and the levy of assessments is set for September 6, 2022, at 6:00 p.m., or as soon thereafter as the matter may be heard, at the Council Chambers located at 401 Grove Street, Healdsburg, CA 95448.
12. The time and place for the public hearing to renew the HTID and the levy of assessments is set for October 3, 2022, at 6:00 p.m., or as soon thereafter as the matter may be heard, at the Council Chambers located at 401 Grove Street, Healdsburg, CA 95448. The City Clerk is directed to provide written notice to the lodging businesses subject to assessment of the date and time of the hearing and to provide that notice as required by Streets and Highways Code § 36623.
13. At the public hearing the testimony of all interested persons for or against the renewal of the HTID may be received. If at the conclusion of the public hearing, there are of record written protests by the owners of the lodging businesses within the proposed renewal of the HTID that will pay fifty percent (50%) or more of the estimated total assessment of the entire HTID, no further proceedings to establish the HTID shall occur.
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Packet Pg. 202 Attachment: Resolution (3705 : HTID - Resolution of Intention) Resolution No. xx-2022
14. A second reading of the ordinance to renew the HTID and to continue the levy of assessments is set to be heard on October 17, 2022, at City Hall located at 401 Grove Street, Healdsburg, CA 95448. At the conclusion of the second reading of the ordinance, the City Council may adopt the ordinance, renewing the HTID and levying the assessment. The City Council shall also adopt the contract between the Council and the Chamber of Commerce for the administration of the HTID at this meeting.
15. The complete Draft Management District Plan is on file with the City Clerk and may be reviewed upon request.
16. This resolution shall take effect immediately upon its adoption by the City Council.
The foregoing Resolution of Intention was introduced and adopted at a regular meeting of the City Council on the 1st day of August, 2022 by the following vote:
AYES: Councilmembers: ( )
NOES: Councilmembers: ( )
ABSENT: Councilmembers: ( )
ABSTAINING: Councilmembers: ( )
SO ORDERED: ATTEST:
__________________________________ _________________________________ Osvaldo Jimenez, Mayor Raina Allan, City Clerk
I, MARIA CURIEL, City Clerk of the City of Healdsburg, do hereby certify that the foregoing is a full, true, and correct copy of Resolution No. 100-2017 adopted by the City Council of the City of Healdsburg on the 18th day of September, 2017.
________________________________
Maria Curiel, City Clerk
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Packet Pg. 203 Attachment: Resolution (3705 : HTID - Resolution of Intention) Exhibit A
District Boundaries
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Packet Pg. 204 Attachment: Exhibit A to Resolution (3705 : HTID - Resolution of Intention) TBD
2023-2032
HEALDSBURG TOURISM
IMPROVEMENT DISTRICT
MANAGEMENT DISTRICT PLAN
April 13, 2022 Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.
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Packet Pg. 205 Attachment: HTID Management District Plan (3705 : HTID - Resolution of Intention)
CONTENTS
I. OVERVIEW ........................................................................................................................................2 II. BACKGROUND ................................................................................................................................4 III. ACCOMPLISHMENTS.....................................................................................................................5 IV. BOUNDARY.......................................................................................................................................7 V. ASSESSMENT BUDGET AND SERVICES................................................................................8 A. Annual Service Plan............................................................................................................ 8 B. Annual Budget .................................................................................................................. 10 C. California Constitutional Compliance .............................................................................. 11 D. Assessment........................................................................................................................ 13 E. Penalties and Interest ........................................................................................................ 13 F. Time and Manner for Collecting Assessments................................................................. 14 VI. GOVERNANCE...............................................................................................................................15 A. Owners’ Association......................................................................................................... 15 B. Brown Act and California Public Records Act Compliance ............................................ 15 C. Annual Report................................................................................................................... 15 APPENDIX 1 – LAW....................................................................................................................................16 APPENDIX 2 – ASSESSED BUSINESSES .............................................................................................27 Prepared by
Civitas
(800)999-7781
www.civitasadvisors.com
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Packet Pg. 206 Attachment: HTID Management District Plan (3705 : HTID - Resolution of Intention) HTID Management District Plan 2
April 13, 2022
I. OVERVIEW
Developed by the Healdsburg Chamber of Commerce (the Chamber), the Healdsburg Tourism Improvement District (HTID) is an assessment district proposed to provide specific benefits to payors, by funding marketing and sales promotion efforts and district development programs for assessed businesses. The HTID was formed in 2013 for a five (5) year term; and subsequently renewed in 2018 for another five (5) year term. The Chamber and Healdsburg businesses now wish to renew the HTID for an additional ten (10) years.
Location: The renewed HTID includes all lodging businesses (including all lodging businesses located on the premises of a winery) located within the boundaries of the City of Healdsburg, as shown on the map in Section IV.
Services: The HTID is designed to provide specific benefits directly to payors by increasing room night sales. Marketing and sales promotions and district development programs will increase overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing demand for room night sales.
Budget: The total HTID annual assessment budget for the initial year of its ten (10) year operation is anticipated to be approximately $1,500,000. A similar assessment budget is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do, and if the assessment rate is increased.
Cost: The annual assessment rate is two percent (2%) of gross short-term room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; stays by any federal or state officer or employee when on official business; stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty; and stays by any person who has signed an agreement in writing for occupancy in a lodging business for more than thirty (30) days. During the ten (10) year term, the assessment rate may be increased or decreased annually by the HTID Owners’ Association by a maximum of one half of one percent (0.5%) of gross room rental revenue per year, as described in Section V. The total assessment rate may not exceed three percent (3%) and may not be less than one percent (1%).
Collection: The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the HTID. The City shall take all reasonable efforts to collect the assessments from each assessed lodging business.
Duration: The renewed HTID will have a ten (10) year life, beginning January 1, 2023 through December 31, 2032, or as soon as possible thereafter, and end ten (10) years from its start date. Once per year, beginning on the anniversary of HTID renewal, there is a 30-day period in which owners paying more than fifty percent (50%) of the assessment may protest and initiate a City Council hearing on HTID termination.
Management: The Healdsburg Chamber of Commerce will continue to serve as the HTID’s Owners’ Association. The Owners’ Association is charged with managing funds and
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Packet Pg. 207 Attachment: HTID Management District Plan (3705 : HTID - Resolution of Intention) HTID Management District Plan 3
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implementing programs in accordance with this Plan, and must provide annual reports to the City Council.
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Packet Pg. 208 Attachment: HTID Management District Plan (3705 : HTID - Resolution of Intention) HTID Management District Plan 4
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II. BACKGROUND
TIDs are an evolution of the traditional Business Improvement District. The first TID was formed in West Hollywood, California in 1989. Since then, over 100 California destinations have followed suit. In recent years, other states have begun adopting the California model – Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TID laws. Several other states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law to form a TID. And, some cities, like Portland, Oregon and Memphis, Tennessee have utilized their home rule powers to create TIDs without a state law.
California’s TIDs collectively
raise over $300 million annually
for local destination marketing.
With competitors raising their
budgets, and increasing rivalry
for visitor dollars, it is
important that Healdsburg
lodging businesses continue to
invest in stable, lodging-specific
marketing programs.
TIDs utilize the efficiencies of
private sector operation in the
market-based promotion of tourism districts. TIDs allow lodging business owners to organize their efforts to increase demand for room night sales. Lodging business owners within the TID pay an assessment and those funds are used to provide services that increase demand for room night sales.
In California, most TIDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between TIDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district.
There are many benefits to TIDs:
• Funds must be spent on services and improvements that provide a specific benefit only to those who pay;
• Funds cannot be diverted to general government programs; • They are customized to fit the needs of payors in each destination; • They allow for a wide range of services;
• They are designed, created and governed by those who will pay the assessment; and • They provide a stable, long-term funding source for tourism promotion. 1 2 4 6 9 12 19 25 29 32 38 46
61 64 70 75
88 95 99101104109110
0 20
40 60
80 100
120
19891995200020012002200320042005200620072008200920102011201220132014201520162017201820192020 Number of Districts Operating in
California
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Packet Pg. 209 Attachment: HTID Management District Plan (3705 : HTID - Resolution of Intention) HTID Management District Plan 5
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III. ACCOMPLISHMENTS
HTID Recent Accomplishments
• 8,614,755,116 total earned media impressions
• 264 total online media placements
• 41 total print media placements
• 35 Curated Media Visits
• Press Hit Examples:
o Food & Wine – The article by Ray Isle highlights Healdsburg as a small town that offers a variety of dining and wine tasting options along with newly built modern hotels. 8.6M readers
o Orange Coast Magazine – Allan Gibbons describes the perfect getaway to Healdsburg that includes listening to music on the downtown plaza, savory and sweet gourmet wine and food pairings, picnics, downtown hotels, and dining - all with hometown flavor. 56k readers
o Travel + Leisure - Kathryn Romeyn outlines her post-baby family-friendly trip to Healdsburg that included wine tasting, outdoor adventures, along with hotel and dining recommendations. 5.5M viewers
o Conde Nast Traveler – Carey Jones writes about California weekend getaways that featured Healdsburg as a wine, food and bakery destination with a charming identity.
2.8M viewers
o 7x7 – Amber Turpin describes her 3-day Healdsburg weekend that included a stay at Montage, biking, art, wine tasting, cocktails, lounging, shopping, dining and her plans to come back again. 130k viewers
o Country Living – Lauren Smith McDonough showcases 35 American “European-like” towns, including Healdsburg, that she compares to Tuscany. 12M viewers o Decanter – Jess Lander outlines the perfect 3-day trip to Healdsburg to experience small town charm and luxury - all at the same time. 366k viewers o Forbes - Katie Chang showcases the pleasures of a visit to Healdsburg that included art galleries, dining, day spa’s - all without drinking any wine. 66.5M viewers o Locale Magazine – The article by Taylor Gorski features some of Healdsburg’s newest hotels, classic wineries, art galleries, and culinary suggestions. 100k viewers o Marie Claire – Featured in the Instagram Guide to Sonoma, Healdsburg is highlighted for wine tasting and dining. 13M viewers
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Packet Pg. 210 Attachment: HTID Management District Plan (3705 : HTID - Resolution of Intention) HTID Management District Plan 6
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o PaperCity – Georgie Miller documented a charming visit to Healdsburg that included modern hotels, unique retail shops and art galleries, along with fine dining. 204k viewers
o The Zoe Report – Nicole Kliest highlights Healdsburg as an American city that should not be missed during the Fall; offering many hotel options, outdoor activities, and a variety of wine tasting venues. 2.4M viewers
o Thrillist – Daisy Barringer and Margot Seeto describe Healdsburg as a perfect road trip from San Francisco to experience lunch at a winery, food and wine pairings, creative cocktails, farm-fresh dining and stylish hotel rooms. 8.4M viewers o Yahoo! News – This article considered Healdsburg as one of the most wine-friendly towns where you can experience a variety of excellent dining options, modern hotels, along with new and established wineries. 2.1B viewers
o MSN – Daisy Barringer and Margot Seeto suggest Healdsburg as a top fall destination to enjoy wonderful eating and drinking. 69.5M viewers o House Beautiful – Lauren Smith McDonough and Janaya Wecker suggest travelers will enjoy Healdsburg as much as Italy based on the food and wine. 6.7M viewers o Forbes – Laurie Werner highlights Napa and Sonoma County and suggests visiting Healdsburg to sample dishes prepared by many local culinary stars. 66.5M viewers
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Packet Pg. 211 Attachment: HTID Management District Plan (3705 : HTID - Resolution of Intention) HTID Management District Plan 7
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IV. BOUNDARY
The HTID will include all lodging businesses (including all lodging businesses located on the premises of a winery), existing and in the future, available for public occupancy within the boundaries of the City of Healdsburg.
Lodging business means: any structure or any portion of any structure that is occupied or intended or designed for occupancy by transients for sleeping purposes, including any inn, home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof that is used for occupancy by transients, even if such use is on a part-time basis.
The term “winery” as used herein means: A business that is commercial growing and/or processing of wine grapes; and/or must have a valid state license and/or federal permit to process or sell wine at retail locations within the boundaries of the HTID.
The boundary, as shown in the map below, currently includes thirty (30) lodging businesses. A complete listing of lodging businesses within the renewed HTID can be found in Appendix 2.
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Packet Pg. 212 Attachment: HTID Management District Plan (3705 : HTID - Resolution of Intention) HTID Management District Plan 8
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V. ASSESSMENT BUDGET AND SERVICES
A. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the HTID funds are sales and marketing programs available only to assessed businesses.
A service plan assessment budget has been developed to deliver services that benefit the assessed businesses. A detailed annual assessment budget will be developed and approved by the Chamber.
The table below illustrates the initial annual assessment budget allocations. The total initial assessment budget is $1,500,000.
Although actual revenues will fluctuate due to market conditions, the proportional allocations of the budget shall remain the same. However, the City and the Chamber shall have the authority to adjust budget allocations between the categories by no more than fifteen percent (15%) of the total budget per year. A description of the proposed improvements and activities for the initial year of operation is below. The same activities are proposed for subsequent years. In the event of a legal challenge against the HTID, any and all assessment funds may be used for the costs of defending the HTID.
Each budget category includes all costs related to providing that service. For example, the sales and marketing budget includes the cost of staff time dedicated to overseeing and implementing the sales and marketing program. Staff time dedicated purely to administrative tasks is allocated to the administrative portion of the budget. The staffing levels necessary to provide the services below will be determined by the Chamber on an as-needed basis.
Sales and Marketing
A sales and marketing program will promote assessed businesses as tourist, meeting, and event destinations. The sales and marketing program will have a central theme of promoting Healdsburg as a desirable place for overnight visits. The program will have the goal of increasing overnight visitation and room night sales at assessed businesses, and may include the following activities:
• Internet marketing efforts to increase awareness and optimize internet presence to drive Sales & Marketing,
$1,070,000 , 71.3%
District Development,
$187,500 , 12.5%
Administration and
Operations,
$150,000 , 10%
Contingency/
Reserve,
$75,000 , 5%
City Collection Fee,
$17,500 , .0116%
Initial Annual Assessment Budget- $1,500,000
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Packet Pg. 213 Attachment: HTID Management District Plan (3705 : HTID - Resolution of Intention) HTID Management District Plan 9
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overnight visitation and room sales to assessed businesses; • Print ads in magazines and newspapers, television ads, and radio ads targeted at potential visitors to drive overnight visitation and room sales to assessed businesses; • Attendance of trade shows to promote assessed businesses; • Sales blitzes for assessed businesses;
• Familiarization tours of assessed businesses;
• Preparation and production of collateral promotional materials such as brochures, flyers and maps featuring assessed businesses;
• Attendance of professional industry conferences and affiliation events to promote assessed businesses;
• Lead generation activities designed to attract tourists and group events to assessed businesses; • Director of Sales and General Manager meetings to plan and coordinate tourism promotion efforts for assessed businesses;
• Development and maintenance of a website designed to promote assessed businesses; and • Education of hospitality staff on service and safety (related to alcohol and food) designed to create a visitor experience that will bring repeat visits to assessed businesses; and • Education of lodging businesses management and the Owners’ Association on marketing strategies best suited to meet Healdsburg’s needs designed to increase overnight visitation and room night sales and assessed businesses.
District Development
District Development (DD) projects will be designed to improve the visitor experience in an effort to increase overnight visitation at assessed lodging businesses. As the total number of rooms sold and room prices increase over time, the amount of available funds for DD projects will increase. During the ten (10) year term of the HTID, a minimum of twelve and one-half percent (12.5%) of the annual assessment budget shall be used for DD projects. Working collaboratively with the City, the Chamber will develop specific DD funding criteria. The City and the Chamber staff shall have equal input to make recommendations to the Chamber for final project approval. The award of any public works contract for an approved DD project must be done in accordance with Municipal Code requirements.
Policies and procedures acceptable to both the Chamber and the City will be developed. DD projects may include:
• Services designed to improve the visitor experience, such as but not limited to, transportation and parking solutions;
• Improvements designed to improve the visitor experience, such as but not limited to, benches, restrooms, and lighting improvements; and
• Activities designed to improve the visitor experience, such as but not limited to, Tuesday Music on the Plaza, Healdsburg Farmers Market, Healdsburg Center to the Arts, and/or creation of new Arts, Cultural and Educational activities.
Administration and Operations
The administration and operations portion of the budget shall be utilized for administrative staffing costs, office costs, advocacy, and other general administrative costs such as insurance, legal, and accounting fees. Ten percent (10%) of the annual assessment budget shall be used for administration and operations.
City Administration Fee
The City of Healdsburg shall retain 0.0116 percent of the amount of assessment collected, to cover its costs of collection and administration. Any amount of the City Administration Fee in excess of the
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actual cost of collecting and administering the assessment shall be forwarded to the Owners’ Association to be used for HTID programs.
Contingency/Reserve
The budget includes a contingency line item to account for uncollected assessments, if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration or renewal costs at the discretion of the Owners’ Association. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve fund shall be set by the Board of Directors of the Owners’ Association.
Contingency/reserve funds may be spent on HTID programs or administrative and renewal costs in such proportions as determined by the Owners’ Association. The reserve fund may be used for the costs of renewing the HTID. The contingency/reserve portion of the budget may also be utilized for expenditures relating to unforeseen circumstances, including but not limited to those arising out of natural disaster, pandemic, or economic crisis.
B. Annual Budget
The total ten (10) year improvement and service plan budget is projected at approximately $1,500,000 annually, or approximately $24,657,478.45 through 2032 if maximum assessment increases are adopted. A similar budget is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do, and if the assessment rate is increased.
If the maximum annual assessment increases are adopted by the Owners’ Association upon approval from City Council, the annual budget will increase as illustrated in the table below. The initial annual assessment rate is two percent (2%) of gross room rental revenue. The Owners’ Association may increase or decrease the assessment rate by a maximum of one half of one percent (0.5%) per year to a maximum rate of three percent (3%). The assessment rate shall never be less than one percent (1%).
The assessment rate may not increase starting in 2023, the increases may be implemented in later years at the discretion of the Owners’ Association. The table below demonstrates the maximum with the assumption that the rates will be increased annually beginning in 2023 as it is a required disclosure, it is not the anticipated course of action. Alternate courses of action may be taken in regards to implementing the assessment rate increase other than what is demonstrated in the chart below, within the parameters of this Management District Plan. An additional three percent (3%) annual increase in the total budget is shown to account for estimated increased room night sales as a result of HTID efforts. This three percent (3%) annual increase is a conservative estimate based on the effects of similarly sized TID budgets.
Estimated Annual Assessment Budget if
Maximum Assessment Rates Are Adopted
2023-2032
Year
Sales &
Marketing
District
Development
Admin. &
Operations
Contingency /
Reserve
City
Collection
Fee TOTAL
2023 $1,070,000.00 $187,500.00 $150,000.00 $75,000.00 $ 17,500.00 $1,500,000.00 2024 $1,377,624.99 $241,406.25 $193,125.00 $96,562.50 $ 22,531.26 $1,931,250.00 2025 $1,702,744.49 $298,378.13 $238,702.50 $119,351.25 $ 27,848.63 $2,387,025.00 2026 $1,753,826.83 $307,329.47 $245,863.58 $122,931.79 $ 28,684.09 $2,458,635.75
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2027 $1,806,441.63 $316,549.35 $253,239.48 $126,619.74 $ 29,544.61 $2,532,394.82 2028 $1,860,634.88 $326,045.83 $260,836.67 $130,418.33 $ 30,430.95 $2,608,366.67 2029 $1,916,453.93 $335,827.21 $268,661.77 $134,330.88 $ 31,343.88 $2,686,617.67 2030 $1,973,947.54 $345,902.02 $276,721.62 $138,360.81 $ 32,284.20 $2,767,216.20 2031 $2,033,165.97 $356,279.09 $285,023.27 $142,511.63 $ 33,252.72 $2,850,232.68 2032 $2,094,160.95 $366,967.46 $293,573.97 $146,786.98 $ 34,250.31 $2,935,739.66 Total $17,589,001.21 $3,082,184.81 $2,465,747.85 $1,232,873.92 $287,670.66 $24,657,478.45 The table below demonstrates the annual improvement and service plan budget with the assumption that the rates will not be increased during the HTID’s ten (10) year term. Additionally, a three percent (3%) annual increase in the total budget is shown, to account for estimated increased room night sales as a result of HTID efforts.
Estimated Annual Assessment Budget if
Maximum Assessment Rates Are Not Adopted
2023-2032
Year
Sales &
Marketing
District
Development
Admin. and
Operations
Contingency
/Reserve
City Collection
Fee Total
2023 $1,070,000.00 $187,500.00 $150,000.00 $75,000.00 $17,500.00 $1,500,000.00 2024 $1,108,537.50 $193,125.00 $154,500.00 $77,250.00 $18,025.01 $1,545,000.00 2025 $1,141,793.63 $198,918.75 $159,135.00 $79,567.50 $18,565.76 $1,591,350.00 2026 $1,176,047.43 $204,886.31 $163,909.05 $81,954.53 $19,122.73 $1,639,090.50 2027 $1,211,328.86 $211,032.90 $168,826.32 $84,413.16 $19,696.41 $1,688,263.22 2028 $1,247,668.72 $217,363.89 $173,891.11 $86,945.56 $20,287.30 $1,738,911.11 2029 $1,285,098.78 $223,884.81 $179,107.84 $89,553.92 $20,895.92 $1,791,078.44 2030 $1,323,651.75 $230,601.35 $184,481.08 $92,240.54 $21,522.80 $1,844,810.80 2031 $1,363,361.30 $237,519.39 $190,015.51 $95,007.76 $22,168.48 $1,900,155.12 2032 $1,404,262.14 $244,644.97 $195,715.98 $97,857.99 $22,833.54 $1,957,159.78 Total $12,331,750.10 $2,149,477.37 $250,000.00 $859,790.95 $200,617.95 $17,195,818.97 C. California Constitutional Compliance
The HTID assessment is not a property-based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term ‘assessments’ to levies on real property.1 Rather, the HTID assessment is a business-based assessment, and is subject to Proposition
26.Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions. Two of these exceptions apply to the HTID, a “specific benefit” and a “specific government service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services.
1. Specific Benefit
Proposition 26 requires that assessment funds be expended on, “a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not 1 Jarvis v. the City of San Diego 72 Cal App. 4th 230
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exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.”2The services in this Plan are designed to provide targeted benefits directly to assessed lodging businesses, and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public, businesses in general, or parcels of land, but rather to serve the specific lodging businesses within the HTID. The activities described in this Plan are specifically targeted to increase room night sales for assessed lodging businesses within the boundaries of the HTID, and are narrowly tailored. HTID funds will be used exclusively to provide the specific benefit of increased room night sales directly to the assessees.
Assessment funds shall not be used to feature non-assessed lodging businesses in HTID programs, or to directly generate sales for non-assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses.
The assessment imposed by this HTID is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in room night sales. The specific benefit of an increase in room night sales for assessed lodging businesses will be provided only to lodging businesses paying the district assessment, with marketing and sales programs promoting lodging businesses paying the district assessment. The marketing and sales programs will be designed to increase room night sales at each assessed lodging businesses.
Because they are necessary to provide the marketing and sales programs that specifically benefit the assessed lodging businesses, the administration and contingency services also provide the specific benefit of increased room night sales to the assessed lodging businesses.
Although the HTID, in providing specific benefits to payors, may produce incidental benefits to nonpaying businesses, the incidental benefit does not preclude the services from being considered a specific benefit.The legislature has found that, “A specific benefit is not excluded from classification as a ‘specific benefit’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.”3
2. Specific Government Service
The assessment may also be utilized to provide, “a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.” 4The legislature has
recognized that marketing and promotions services like those to be provided by the HTID are government services within the meaning of Proposition 265.Further, the legislature has determined that “a specific government service is not excluded from classification as a ‘specific government service’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor.”6
3. Reasonable Cost
HTID services will be implemented carefully to ensure they do not exceed the reasonable cost of such services.The full amount assessed will be used to provide the services described herein. Funds will be managed by the Chamber, and reports submitted on an annual basis to the City. Only assessed lodging businesses will be featured in marketing materials, receive sales leads generated from district-funded 2 Cal. Const. art XIII C § 1(e)(1)
3 Government Code § 53758(a)
4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)
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activities, be featured in advertising campaigns, and benefit from other district-funded services. Nonassessed lodging businesses will not receive these, nor any other, district-funded services and benefits.
The HTID -funded programs are all targeted directly at and feature only assessed businesses. It is, however, possible that there will be a spill over benefit to non-assessed businesses. If non-assessed lodging businesses receive incremental room nights, that portion of the promotion or program generating those room nights shall be paid with non- HTID funds. HTID funds shall only be spent to benefit the assessed businesses, and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed lodging businesses.
D. Assessment
The annual assessment rate is two percent (2%) of gross short-term room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; stays by any federal or state officer or employee when on official business; stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty; and stays by any person who has signed an agreement in writing for occupancy in a lodging business for more than thirty (30) days. During the ten (10) year term, the assessment rate may be increased or decreased annually by the HTID Owners’ Association by a maximum of one half of one percent (0.5%) of gross room rental revenue per year. The total assessment rate may not exceed three percent (3%) and may not be less than one percent (1%).
The term “gross room rental revenue” as used herein means: the actual consideration charged, whether or not received, for the occupancy of space in a lodging business valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credit and property and services of any kind or nature without any deduction therefrom whatsoever. Gross room rental revenue shall not include any federal, state or local taxes collected, including but not limited to transient occupancy taxes.
The assessment is levied upon and a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. The assessment shall be disclosed as the “HTID Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for any purposes, including calculation of transient occupancy taxes.
Bonds shall not be issued.
E. Penalties and Interest
The HTID shall reimburse the City of Healdsburg for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent HTID assessment are sought to be recovered in the same collection action by the City, the HTID shall bear its pro rata share of such collection costs.
Assessed businesses which are delinquent in paying the assessment shall be responsible for paying:
1. Original Delinquency: Any lodging business which fails to remit any assessment imposed within the time required shall pay a penalty of ten percent (10%) of the amount of the assessment owning in addition to the amount of the assessment
2. Continued Delinquency: Any lodging business which fails to remit any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first became
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delinquent shall pay a second delinquency penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment and the ten percent (10%) penalty first imposed.
3. Fraud: If the City determines that the nonpayment of any remittance due was willful, a penalty of fifty percent (50%) of the amount of the assessment shall be added thereto in addition to the penalties stated in subsection (1) and (2) of the section.
4. Interest: In addition to the penalties imposed, any lodging business which fails to remit any assessment imposed shall pay interest at the rate of one-half of one percent (0.5%) per month or fraction thereof on the amount of the assessment, exclusive of penalties, from the date on which the remittance first became delinquent until paid.
5. Penalties Merged with Assessment: Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the assessment herein required to be paid.
F. Time and Manner for Collecting Assessments
The renewed HTID will have a ten (10) year life, beginning January 1, 2023 through December 31, 2032, or as soon as possible thereafter, and end ten (10) years from its start date.The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business .The City shall take all reasonable efforts to collect the assessments from each lodging business. The City shall forward the assessments collected to the Owners’ Association.
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VI. GOVERNANCE
A. Owners’ Association
The City Council, through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the HTID as defined in Streets and Highways Code §36612.The City Council has determined that the Healdsburg Chamber of Commerce (the Chamber) will continue to serve as the Owners’ Association for the HTID.
B. Brown Act and California Public Records Act Compliance An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.).Thus, meetings of the Chamber board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act. Accordingly, the Owners’ Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action.
C. Annual Report
The Chamber shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 (see Appendix 1).The annual report shall include:
• Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district.
• The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
• The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
• The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
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APPENDIX 1 – LAW
*** THIS DOCUMENT IS CURRENT THROUGH THE 2021 SUPPLEMENT *** (ALL 2020 LEGISLATION)
STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1. General Provisions
ARTICLE 1. Declarations
36600. Citation of part
This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.” 36601. Legislative findings and declarations; Legislative guidance The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxesfor the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed.
Therefore, for special benefits to exist as a separate and distinct category from general benefits, the
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incidental or collateral effects of those special benefits are inherently part of those special benefits.
The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits.
(3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessmentsthey may levy and the proper determination of special benefits.
Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined.
36602. Purpose of part
The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act. This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes.
36603. Preemption of authority or charter city to adopt ordinances levying assessments Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)). 36603.5. Part prevails over conflicting provisions
Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.
36604. Severability
This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.
ARTICLE 2. Definitions
36606. “Activities”
“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district. 36606.5. “Assessment”
“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.
36607. “Business”
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“Business” means all types of businesses and includes financial institutions and professions. 36608. “City”
“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California. 36609. “City council”
“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4. “Clerk”
“Clerk” means the clerk of the legislative body.
36609.5. “General benefit”
“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.
36610. “Improvement”
“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.
36611. “Management district plan”; “Plan”
“Management district plan” or “plan” means a proposal as defined in Section 36622. 36612. “Owners’ association”
“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), for all records relating to activities of the district. 36614. “Property”
“Property” means real property situated within a district.
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36614.5. “Property and business improvement district”; “District” “Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part.
36614.6. “Property-based assessment”
“Property-based assessment” means any assessment made pursuant to this part upon real property. 36614.7. “Property-based district”
“Property-based district” means any district in which a city levies a property-based assessment. 36615. “Property owner”; “Business owner”; “Owner”
“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient. 36615.5. “Special benefit”
“Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value.
36616. “Tenant”
“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.
ARTICLE 3. Prior Law
36617. Alternate method of financing certain improvements and activities; Effect on other provisions This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.
CHAPTER 2. Establishment
36620. Establishment of property and business improvement district A property and business improvement district may be established as provided in this chapter. 36620.5. Requirement of consent of city council
A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board
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of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city.
36621. Initiation of proceedings; Petition of property or business owners in proposed district (a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district.
The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623.
36622. Contents of management district plan
The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries.
(b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the maximum cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities and a statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision.
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(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business. The plan also shall state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k) (1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property-based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. (l) In a property-based district, the total amount of all special benefits to be conferred upon the properties located within the property-based district.
(m) In a property-based district, the total amount of general benefits, if any. (n) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (o) Any other item or matter required to be incorporated therein by the city council. 36623. Procedure to levy assessment
(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay
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50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners.
36624. Changes to proposed assessments
At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625. Resolution of formation
(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district.
(4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district.
Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property-based district, that property within the district will receive a special benefit.
(8) In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.
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36627. Notice and assessment diagram
Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part. 36628. Establishment of separate benefit zones within district; Categories of businesses The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone. 36628.5. Assessments on businesses or property owners
The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any propertybased assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622. 36629. Provisions and procedures applicable to benefit zones and business categories All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district. 36630. Expiration of district; Creation of new district If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.
CHAPTER 3. Assessments
36631. Time and manner of collection of assessments; Delinquent payments The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.
36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property
(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.
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(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part.
36633. Time for contesting validity of assessment
The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36625. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.
36634. Service contracts authorized to establish levels of city services The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635. Request to modify management district plan
The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention (a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention. 36637. Reflection of modification in notices recorded and maps Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627.
CHAPTER 3.5. Financing
36640.Bonds authorized; Procedure; Restriction on reduction or termination of assessments (a)The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part.
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(b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt.
CHAPTER 4. Governance
36650. Report by owners’ association; Approval or modification by city council (a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.
The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district. 36651. Designation of owners’ association to provide improvements, maintenance, and activities The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.
CHAPTER 5. Renewal
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit (a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues
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shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.
CHAPTER 6. Disestablishment
36670. Circumstances permitting disestablishment of district; Procedure (a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment. (2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment. (b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention. 36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district (a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.
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APPENDIX 2 – ASSESSED BUSINESSES
Business Name Address
Bella Luna 530 Healdsburg Avenue, Healdsburg, CA 95448
Bella Villa Messina 316 Burgundy Road, Healdsburg, CA 95448 Belle de Jour Inn 16276 Healdsburg Avenue, Healdsburg, CA 95448 Best Western Dry Creek Inn 198 Dry Creek Road, Healdsburg, CA 95448 Calderwood Inn 25 West Grant Street, Healdsburg, CA 95448 Camellia Inn 211 North Street, Healdsburg, CA 95448
Cottages at Healdsburg 425 Foss Street, Healdsburg, CA 95448 Cypress House and Studio 410 Grater Street, Healdsburg, CA 95448 Duchamp Hotel 421 Foss Street, Healdsburg, CA 95448
Fairview Inn and Suites 74 Healdsburg Avenue, Healdsburg, CA 95448 Grandma's Victorian Cottage 607 Johnson Street, Healdsburg, CA 95448 Grape Leaf Inn 539 Johnson Street, Healdsburg, CA 95448 h2hotel 219 Healdsburg Avenue, Healdsburg, CA 95448
Harmon Guest House 414 Healdsburg Avenue, Healdsburg, CA 95448 Healdsburg Contemporary Cottage 225 Piper Street, Healdsburg, CA 95448 Healdsburg Cottage 602 College Street, Healdsburg, CA 95448 Healdsburg Inn on the Plaza 112 Matheson Street, Healdsburg, CA 95448 Honor Mansion 891 Grove Street, Healdsburg, CA 95448
Hotel Healdsburg 25 Matheson Street, Healdsburg, CA 95448 Hotel Les Mars 27 North Street, Healdsburg, CA 95448
Hotel Trio 110 Dry Creek Road, Healdsburg, CA 95448
Hotel Vinea 178 Dry Creek Rd, Healdsburg, CA 95448
Inspirato 223 Center Street, Healdsburg, CA 95448
L & M Motel 70 Healdsburg Ave., Healdsburg, CA 95448
Montage Healdsburg 100 Montage Way, Healdsburg, CA 95448 River Belle 68 Front Street, Healdsburg, CA 95448
Rock House Suites 115 Mill St, Healdsburg, CA 95448
Single Thread Farm Inn 131 B North Street, Healdsburg, CA 95448 The Roost 340 East Street, Healdsburg, CA 95448
Two Thirty Five 235 Healdsburg Avenue, Healdsburg, CA 95448 Bella Luna 530 Healdsburg Avenue, Healdsburg, CA 95448
Bella Villa Messina 316 Burgundy Road, Healdsburg, CA 95448
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Packet Pg. 235 Attachment: HTID Petitions (3705 : HTID - Resolution of Intention)
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Packet Pg. 236 Attachment: HTID Petitions (3705 : HTID - Resolution of Intention)
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CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: August 1, 2022
SUBJECT: Adoption of Resolution Authorizing Remote Meetings PREPARED BY: Raina Allan, City Clerk
STRATEGIC INITIATIVE(S):
Provide Effective Governance
Maintain and Enhance Public Health and Safety
RECOMMENDED ACTION(S):
Adopt a Resolution authorizing remote meetings of the City Council and other legislative bodies.
COMMUNITY ENGAGEMENT/OUTREACH:
The City has made and continues to engage in extensive outreach to the community regarding the City’s response to COVID-19, including updates at public meetings.
BACKGROUND:
On or about March 4, 2020, as part of the State of California’s response to address the global COVID-19 outbreak, Governor Gavin Newsom declared a State of Emergency to make additional resources available, formalize emergency actions already underway across multiple state agencies and departments, and help the state prepare for broader spread of COVID-19 following one official COVID-19 death.
When the COVID-19 pandemic started, local agency boards struggled to conduct their meetings in compliance with the Brown Act’s public accessibility requirements while still abiding by stayat-home orders. As a result, Governor Newsom signed Orders N-25-20, N-29-20, and N-35-20 to grant local agencies the flexibility to meet remotely during the COVID-19 pandemic. These orders expired on September 30, 2021.
DISCUSSION/ANALYSIS:
On September 16, 2021, Governor Newsom signed into law AB 361 – Brown Act: Remote Meetings During Emergencies. AB 361, codified at Government Code Section 54953(e)(1)(B), amended the Brown Act to allow public agencies to allow local legislative bodies to continue meeting by teleconference during a gubernatorial proclaimed state of emergency if the local
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legislative body determines, by majority vote, that as a result of the emergency, meeting entirely in person without restrictions would present imminent risks to the health or safety of attendees.
By adopting the proposed resolution, the Council would, on behalf of the City Council and all other legislative bodies formed by the Council, make the findings required by AB 361 to meet remotely. Because the Council is required to make these findings every thirty days, staff will place a version of this resolution on the consent calendar at all subsequent meetings, until the Council decides that meeting fully in person will no longer pose an imminent risk to the health or safety of attendees.
The resolution was amended at the February 22, 2022, City Council meeting and further amended at the March 21, 2022 City Council meeting, to amend public meeting protocol in response to the latest COVID-19 conditions, as directed by the City Council.
ENVIRONMENTAL STEWARDSHIP:
This section is not applicable.
ALTERNATIVES:
Because the Governor’s Order authorizing online meetings has expired, if the Council does not adopt the proposed resolution, the Council should immediately return to in-person meetings.
FISCAL IMPACT:
There is not a fiscal impact as a direct result of this action.
ENVIRONMENTAL ANALYSIS:
Pursuant to Title 14, the California Code of Regulations, Section 15378(b)(5) of the California Environmental Quality Act (“CEQA”) guidelines, the proposed action is an administrative activity of the City that will not result in direct or indirect physical changes to the environment.
ATTACHMENT(S):
Resolution
Public Meeting COVID-19 Protocols for the City of Healdsburg
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CITY OF HEALDSBURG
RESOLUTION NO. _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG AND ON BEHALF OF COMMISSIONS AND
COMMITTEES CREATED BY THE CITY COUNCIL
PURSUANT TO CALIFORNIA GOVERNMENT CODE
SECTION 54952(b) AUTHORIZING TELECONFERENCE
MEETINGS IN COMPLIANCE WITH AB 361 (GOVERNMENT
CODE SECTION 54953(e)) TO CONTINUE TO ALLOW
MEMBERS OF THE PUBLIC TO SAFELY PARTICIPATE IN
LOCAL GOVERNMENT MEETINGS
WHEREAS, the City Council is committed to ensuring public access to observe and participate in local government meetings; and
WHEREAS, all meetings of the City Council and other legislative bodies created pursuant to Government Code Section 54952(b) are open and public, as required by the Ralph M. Brown Act, so that any member of the public may participate in local government meetings; and
WHEREAS, the recently adopted AB 361, codified at Government Code section 54953(e), makes provisions for remote teleconferencing participation in local government meetings, without compliance with the requirements 54953(b)(3), subject to the existence of certain conditions; and
WHEREAS, on March 4, 2020, Governor Newsom proclaimed a State of Emergency due to the outbreak of respiratory illness due to a novel coronavirus (now known as COVID 19) and that State of Emergency is still in effect in the State of California; and WHEREAS, the Sonoma County Public Health Officer continues to recommend teleconferencing or social distancing during public meetings of all legislative bodies to protect the community’s health against the spread of COVID-19; and WHEREAS, the City Council, acting as a legislative body pursuant to Government Code section 54952(a) and for the benefit of the commissions, committees and other bodies that were created by the City Council pursuant to Government Code section 54952(b) (collectively referred to as “Legislative Bodies”), finds that the current conditions meet the circumstances set forth in Government Code section 54953(e)(3) to allow Legislative Bodies to continue to use teleconferencing to hold open and public meetings if the Legislative Bodies comply with the requirements set forth in Government Code section 54953(e)(2) to ensure the public can safely participate in and observe local government meetings.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Healdsburg that the City Council does hereby:
1. Find that Current Conditions Authorize Teleconference Public Meetings of
6.L.a
Packet Pg. 241 Attachment: Resolution (3706 : Resolution authorizing remote meetings) Resolution No. -2022