Healdsburg City Council
November 21, 2022

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

1. Rescind Resolution No. 107-2022.

2. Reestablish the authorized position list as depicted in the attached Exhibit A.

3. Approve the side letter agreement, as depicted in the attached Exhibit B, between the City and International Brotherhood of Electrical Workers, Local 1245 and authorize the City Manager to execute the side letter.

PASSED, APPROVED AND ADOPTED this 21st day of November 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. 119 Attachment: Resolution (3787 : Staff Reorganization, Authorized Position List and IBEW, Local 1245 Side Letter) 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 II2 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 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. 120 Attachment: Exhibit A - Authorized Positions (3787 : Staff Reorganization, Authorized Position List and IBEW, Local 1245 Side Letter) Exhibit A - Authorized Positions
Senior Public Works Inspector1 IBEW $8,728.24 $9,173.75 $9,641.82 $10,133.66 $10,650.44 Project Manager1 Mid-Management $7,969.06 $8,375.36 $8,801.96 $9,251.15 $9,722.90 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. 121 Attachment: Exhibit A - Authorized Positions (3787 : Staff Reorganization, Authorized Position List and IBEW, Local 1245 Side Letter) SIDE LETTER: SALARY AMENDMENT

BETWEEN THE CITY OF HEALDSBURG AND INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, LOCAL 1245

1. This Side Letter Agreement is between the CITY OF HEALDSBURG, hereinafter referred to as “City”, and INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, Local 1245 collectively called “the parties”.

2. The intent of the Side Letter Agreement is to modify Exhibit A of the Memorandum of Understanding (“MOU”) between the parties as follows:

Establish salary rates and steps for the existing classification of Utility Operator-In-Training at 15% below Utility Operator classification.

A Step B Step C Step D Step E Step
Utility Operator-In-Training $6,650.55 $6,989.84 $7,346.31 $7,720.94 $8,114.77

3. The terms and conditions set forth in this Side Letter Agreement have been mutually agreed upon by the designated bargaining representatives of the City and IBEW, Local 1245.

4. Upon adoption, this Side Letter will amend the MOU between the parties.

On behalf of the City: On behalf of IBEW, Local 1245:
____________________________ ______________________________ Jeff Kay, City Manager Kim Camatti, Business Representative _______________________________
Robert Dean, Business Manager

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Packet Pg. 122 Attachment: Exhibit B- IBEW, Local 1245 Side Letter (3787 : Staff Reorganization, Authorized Position List and IBEW, Local 1245 Side Letter)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: November 21, 2022
SUBJECT: Senior Center Dining Program Contract
PREPARED BY: Mark Themig, Community Services Director
STRATEGIC INITIATIVE(S):

Provide Resident-Driven Community Services
RECOMMENDED ACTION(S):

By a four-fifths vote, adopt a Resolution waiving the competitive bid process, approving an amendment to a contract with Catered by Patti for the Senior Dining Program in an amount not to exceed $44,835 and authorizing the City Manager to execute the amendment.

COMMUNITY ENGAGEMENT/OUTREACH:

The return of the Senior Center dining program has received significant positive feedback from community members and staff has engaged in significant community outreach which has resulted in robust usage of this program.

BACKGROUND:

Prior to the COVID-19 pandemic the Sonoma County Council on Aging agency provided a noontime in-person congregate dining program at the Healdsburg Senior Center. The framework of the program evolved over time initially beginning with off-site prepared meals, then transitioning to freshly prepared on-site meals with a rotating menu, returning to off-site prepared meals shortly before to the COVID-19 pandemic. Participation in the program varied based on the type of the meal with freshly-prepared meals having significantly more participation than the off-site prepared meals.

During the COVID-19 pandemic staff transitioned the nutrition program to providing “senior baskets” of fresh and frozen food for our community in partnership with Redwood Empire Foodbank with both a delivery and pick-up option available.

DISCUSSION/ANALYSIS:

As we were exiting the COVID-19 pandemic, Senior Center staff began exploring funding opportunities to bring back an in-person noontime dining program. Staff applied for and received a $50,000 grant from Healdsburg Forever to resume a pilot program that featured freshly

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Packet Pg. 123
prepared meals offered on Mondays, Wednesdays, and Fridays. Staff implemented the dining program called “Bistro on Matheson” in April, along with a once per month “Monday Night Supper Club” held the fourth Monday of each month.

The cost of the meal is $20/diner. Diners aged 60+ are asked for a contribution of $5 per meal and individuals under age 60 pay $10 per meal. However, no individuals age 60+ are turned away due to ability to pay. The balance of the meal cost is supported by the grant from Healdsburg Forever and funding that City Council allocated in the FY22-23 budget.

Staff worked with a local caterer “Catered by Patti” to develop and launch the pilot program. The lunch program is offered Mondays and Wednesdays from 11:00 a.m. – 12:30 p.m. and a special Friday brunch menu is offered during the same timeframe. The lunch menu changes every two weeks and the brunch menu changes monthly. The program has grown in popularity with average attendance growing from approximately 20 diners per sitting at the beginning to approximately 35 diners per sitting during the month of October. The program is supported by a dedicated team of volunteers who take meal orders, serve food, and bus tables offering attendees a true dining experience. In addition to providing important nutrition opportunities, the noontime dining program also provides important social interaction opportunities for older adults, particularly those who live alone.

The City’s contract with Catered by Patti is coming to an end and City Council action is needed to extend the contract. Staff is requesting that City Council waive the competitive bid process and authorize staff to negotiate the contract by a four-fifths vote as set forth in Healdsburg Municipal Code 3.24.080.A.10. This action would allow staff to work directly with Catered by Patti to increase the current contract of $30,000 by an additional not-to-exceed amount of $44,835, which is the remainder of the allocated funding. Catered by Patti is providing highquality, nutritious meals and can accommodate the program’s framework. Maintaining this relationship will ensure continuity of this program for our seniors. If City Council approves the contract extension, staff will implement an open request for proposal process in 2023 for the continuation of the program.

ENVIRONMENTAL STEWARDSHIP:

The program uses real china, glass and silverware and composts food waste.

ALTERNATIVES:

Do not authorize a contract extension with Catered by Patti and provide direction to staff.

FISCAL IMPACT:

The Fiscal Year 22-23 adopted budget included $66,000 for the Senior Center dining program.

The $66,000 was funded in part by the remaining Healdsburg Forever Grant of $34,939, meal revenue projected at $13,000 and $18,061 of Community Services TOT revenue. Fiscal year to date the program has incurred expenses of $21,165 resulting in a remaining program balance of $44,835. The proposed action would increase the current contract with Catered by Patti by the remaining program balance of $44,835.

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ENVIRONMENTAL ANALYSIS:

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

ATTACHMENT(S):

Resolution
Proposal

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Packet Pg. 125

CITY OF HEALDSBURG
RESOLUTION NO. -2022

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG WAIVING THE COMPETITIVE BID

PROCESS, APPROVING AN AMENDMENT TO A

PROFESSIONAL SERVICES AGREEMENT WITH CATERED

BY PATTI FOR THE SENIOR DINING PROGRAM IN AN
AMOUNT NOT TO EXCEED $44,835 AND AUTHORIZING

THE CITY MANAGER TO EXECUTE THE AMENDMENT
WHEREAS, the Healdsburg Senior Center has historically offered a noontime dining program through Sonoma County Council on Aging to support nutritional needs of older adults in our community; and
WHEREAS, the Council on Aging discontinued the dining program during the COVID-19 pandemic; and
WHEREAS, the City and community have recognized the need to provide nutritional dining options for our older adult community; and
WHEREAS, Healdsburg Forever provided the City a $50,000 grant to resume a noontime dining program under a pilot program framework; and WHEREAS, the City entered into an initial contract with Catered by Patti to develop and implement the pilot program for a not to exceed amount of $20,000 that expired June 30, 2022; and
WHEREAS, the Fiscal Year 22-23 adopted budget included $66,000 to continue the program; and
WHEREAS, the City entered into a contract with Catered by Patti to continue the program for a not to exceed amount of $30,000 with a contract term ending November 7, 2022; and
WHEREAS, Healdsburg Municipal Code requires a competitive bid process for service contracts exceeding $50,000; and
WHEREAS, Healdsburg Municipal Code Section 3.24.080.A.10 provides that City Council can waive the competitive bid process by a four-fifths vote and authorize staff to negotiate the contract; 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

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Packet Pg. 126 Attachment: Resolution (3801 : Senior Center Dining Program Contract) Resolution No. -2022

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. Pursuant to Healdsburg Municipal Code Section 3.24.080A.10, specifically waives the competitive bid process and approves a contract amendment with Catered by Patti, increasing the not to exceed amount by $44,835 to $74,835 and extending the contract term to June 30, 2023.

2. Authorizes the City Manager to execute the Amendment and take any other actions necessary to effectuate the contract.

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

PASSED, APPROVED and ADOPTED this 21st day of November 2022, by the following vote:

AYES: Councilmembers: ( )
NOES: Councilmembers: ( )
ABSENT: Councilmembers: ( )
ABSTAINING: Councilmembers: ( )
_____________________________________ _______________________________________ Osvaldo Jimenez, Mayor Raina Allan, City Clerk

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Packet Pg. 127 Attachment: Resolution (3801 : Senior Center Dining Program Contract) Catered by Patti
Date of service: November 8, 2022 – June 30, 2023
Job: Meal service for the Healdsburg Senior Center senior Bistro on Matheson Location of service: Senior Center: 133 Matheson St, Healdsburg, CA Proposed Service Plan

1. Catered by Patti agrees to the City’s provided Scope of Service.

2. Provide a 3 day per week lunch & brunch service (Mon., Wed., & Fri.) called the “Bistro” o Monday/Wednesday = Lunch service with minimum 2+ entrée choice, starter soup or salad, and selection of beverages
o Friday Brunch: with 2+ entrée choices & fruit salad side dish with selection of beverages Kitchen labor to be provided by Patti and Friends Catering. All servers to be food handlers certified. Table servers to be provided by City volunteers via the Senior Center

3. Provide one evening meal per month for the monthly Senior Center Monday Night Supper Club.

Catering to Include:
• Provide Bistro Program meals for minimum of 20 participants per seating. If additional participants attend, catering will strive to provide meals to these individuals, and bill the City the overages. • Provide Monday Night Supper Club meals for a minimum of 20 participants per seating with a maximum of 46 participants.

Fees and Billing:
• $20.00 per person Bistro meals, with a 20 person minimum per meal period. • $15.00 per person Pot Luck Club meals, with a 20 person minimum per meal and a 46 person maximum per meal.
• Contract is Not To Exceed $30,000.00 between November 8, 2022 and June 30, 2023. • Billing will be monthly, submitted at end of the month, and due net 15. o Fees Include: The proposed $20 per participant fee will include all the catering costs such as labor, food purchasing, travel time, and other administrative costs.

Payment Information:

Checks payable to: Patti Robarts. Cell Phone , email:

Remit Payment to: , Cloverdale, CA. 95425
Thank you for your patronage

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Packet Pg. 128 Attachment: Proposal (3801 : Senior Center Dining Program Contract)

HEALDSBURG SENIOR CENTER
Bistro Dining Scope of Service

1. City Insurance and Licensing Requirements
Vendor must meet the following requirements to operate:
• Valid Catering License
• Business License with City of Healdsburg
• Insurance that meets the standards set forth by City for the position o Exact language and insurance minimums set by City Include:

2. Service
Vendor will manage all aspects of the dining program including • Management of labor/staffing the catering staff
o Volunteers will be made available via the City Volunteer program, with Senior Center staff coordination
• Purchase of food & creation of menus (storage available in Senior Center kitchen)

3. Scope of Service
Vendor will provide the following style program as a part of the “Bistro on Matheson” Senior congregate dining program held at the Healdsburg Senior Center: 133 Matheson St. • Three (3) Day per week service
o Monday, Wednesday, Friday service.
o Monday / Wednesday Lunch, Friday Brunch
• Menu choice of minimum two (2) items per day, and selection of beverages o Meals prepared fresh onsite. Vendor will attempt to accommodate special requests o Coffee and Hot tea service included in daily operations for the Senior Center by City o Vendor to provide additional beverage options for service • Provide one evening meal per month for the monthly Senior Center Monday Night Supper Club. • Vendor will provide City with a minimum participant count needed to facilitate program • Availability to provide special dinner and weekend meals to enhance the scheduled activities and programs at the Senior Center. (ie: weekend brunches, evening cocktail hour style socials)

4. Fees & Operation of Meal Service
Vendor to provide City with a cost per meal to operate. This cost is not charged to the participant but will be tracked and managed by the Vendor and City staff.
• Three-day per week service will be provided Monday, Wednesday, Friday weekly o 11am – 12:30pm
• City will be charged a flat rate of $20 for the lunch/brunch program and $15 for the supper club o No senior will be refused for ability to pay
• Fees will be collected by the Senior Center volunteers, and meal voucher given to participant • Participant will have restaurant style service wherein they are seated, order taken, and order delivered to the participant’s seat.
• Vendor will provide and manage staffing to prepare meals in the Senior Center kitchen • City to provide volunteers to operate the front of house service operations • Vendor to close & clean kitchen daily.

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Packet Pg. 129 Attachment: Proposal (3801 : Senior Center Dining Program Contract)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: November 21, 2022
SUBJECT: Authorize the City Manager to enter grant agreements with the Department of Water Resources
PREPARED BY: Patrick Fuss, Water/Wastewater Engineer
STRATEGIC INITIATIVE(S):

Pursue Initiatives that Promote Environmental Stewardship Maintain and Improve Infrastructure and Facilities
RECOMMENDED ACTION(S):

Adopt a Resolution authorizing the City Manager to prepare and file Department of Water Resources grant applications, submit required documents, invoices, and reports required to obtain California Department of Water Resources grants, and authorizing the City Manager to execute funding agreements with the California Department of Water Resources.

COMMUNITY ENGAGEMENT/OUTREACH:

The Groundwater Supply Wells / ASR project and Municipal Services Recycled Water Pipeline project are included in the City of Healdsburg’s 2020 Urban Water Management Plan and Capital Improvement Plan. Staff have conducted multiple workshops with the community and presented at publicly attended City Council meetings the 2020 Urban Water Management Plan and the subject projects.

BACKGROUND:

All of the City of Healdsburg’s water supply is currently derived from surface water rights. This water is used for public health and safety, as well for commercial and irrigation purposes. The City of Healdsburg has experienced significant droughts in recent years that resulted in restrictions to the City’s water rights, which in turn resulted in restrictions in the water available for the community. The City, under a water shortage emergency declaration in 2021, restricted water use to the most essential purposes. City residents were prohibited from outdoor irrigation and were required to reduce water usage by 40 percent compared to normal rain-year usage levels.

In 2022, the drought continued. Water in upstream reservoirs remained in short supply. All but one of the City’s surface water rights were curtailed. Due to local and statewide water shortages,

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Governor Newsom issued Executive Order N-7-22, requiring all urban water suppliers, including Healdsburg, to implement Level-2 (20% reductions) of their water shortage contingency plans.

The City’s residents were able to achieve and exceeded the water conservation goals of both 2021 and 2022. This level of conservation took a considerable effort on the part of the community and City staff. A source of water that is independent of surface water could help to reduce, but not entirely eliminate, the level of conservation required and build a more resilient water supply for Healdsburg.

DISCUSSION/ANALYSIS:

In the 2020 Urban Water Management Plan preparation process, staff identified two projects that provide additional sources of water that are not subject to surface water right curtailments. These projects are the Groundwater Supply Wells / ASR Project and the Municipal Recycled Water Pipeline Project.

The Groundwater Supply Wells/ASR Project will allow the City to replenish and draw from groundwater within deep aquifers under the City. This source of water would not be subject to surface water curtailments and provide a more stable water source during cyclical droughts. The wells would be located at any or all of three existing City-owned locations (West North Street well field, Fitch well field, and the Community Center). Staff estimates from State published documents that each well can produce an estimated 100 gallon per minute. This project could offset approximately 300 gallons per minute of surface water usage. The aquifer storage and recovery (ASR) aspect of this project will allow the City to replenish the aquifer when water is plentiful, storing water during wet seasons for use during dry seasons. The ASR process allows the groundwater source to be sustainable. The estimated cost for the Groundwater Wells/ASR Project is approximately $9.6 million.

The Municipal Recycled Water Pipeline Project would extend the City’s recycled water system into the City to provide irrigation water for turf at City’s parks, cemetery, and public schools.

The Municipal Recycled Water Pipeline Project would cross Highway 101 near the intersection of Healdsburg Avenue and Exchange Street and proceed under City streets to the turf areas.

Irrigating these area uses approximately 35 to 40 million gallons of potable water per year. This shift in irrigation is a reduction in demand, rather than augmentation of supply. The estimated cost of the Municipal Recycled Water Pipeline Project is approximately $14 million.

The cost of these two proposed projects exceeds the City’s funding capacity. To fund these projects, a source of funding outside the City is needed. Staff are seeking grant funding opportunities that minimize the capital outlay by the City. The City applied for a FEMA Building Resilient Infrastructure and Communities (BRIC) Grant in 2021 for the Groundwater Supply Wells / ASR Project, which has progressed from CalOES review to FEMA review. However, the City has not been assured it will be awarded this grant, and the BRIC funding requires 30% share of non-federal funds. Additional funding sources may be necessary to fund the project.

The Municipal Recycled Water Pipeline Project was awarded a $7 million grant from the California Department of Water Resources Urban and Multibenefit Drought Relief Program in 2022. This is half of the funds required to complete the project as envisioned and the scope of the

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project has been reduced accordingly. Additional funding is needed to complete the project as planned.

The California Department of Water Resources has a grant program for 2022 titled “Urban Community Drought Relief Program,” allocating $545 million for drought relief projects such as the two indicated above. These funds can be used for up to 74%of the project costs, or to address a funding shortfall from other, non-California funding sources.

To seek funding from the State Department of Water Resources, the City Council must delegate authority to the City Manager to approve and submit applications and related documentation.

Staff is recommending the City Council delegate this authority to the City Manager so that the Department of Water Resources Urban Community Drought Grant Program funding can be pursued for the benefit of the Healdsburg community.

ENVIRONMENTAL STEWARDSHIP:

The proposed project to be funded by these grants will reduce the City’ demand on surface water, particularly in times of drought. This will leave more natural water in the streams for aquatic habitat and for other users downstream. A reduction in surface water usage will also help to ease releases of stored water within lakes Sonoma and Mendocino benefiting habitat and water inventories.

ALTERNATIVES:

City Council may elect to not authorize the City Manager or the City Manager’s designee to pursue Department of Water Resources grants for these projects. If the City Council makes such an election staff will require direction from Council on how the Council wishes to fund these projects.

FISCAL IMPACT:

California Department of Water Resources Urban Community Drought Relief Grant has a matching local fund requirement of 25 percent. However, applicants are encouraged to use other fund sources to supplement these grant funds, which can be from FEMA Building Resilient Infrastructure and Communities (BRIC) grant funds, for the Groundwater Supply Wells / ASR Project. For example, of the project’s $9.6 million total cost, $6.2 million could be funded by FEMA leaving a remaining non-federal match of $3.4 million. The non-federal match could be split with 75% ($2.55 million) funded by the Department of Water Resources Urban Drought Relief Grant and the remaining 25% ($0.85 million) funded by the City.

Alternatively, if the FEMA 2021 BRIC Grant is not awarded to the City for the Groundwater Supply Wells / ASR Project, the Urban Community Drought Relief Grant can fund 75% of the $9.6 million project or $7.2 million, with 25 percent or $2.4 million funded by the City.

The Municipal Recycled Water Pipeline Project that is already partially funded by the Department of Water Resources cannot be used to offset the local share requirement of the new grant. The Department of Water Resources Urban Drought Relief Grant could fund 75% of the $7 million project, or $5.25 million. The balance of $1.75 million would be funded by the City.

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While these projects were included in the five-year Capital Improvement Plan, the proposed funding was not included in the adopted biennial budgets. If the City is successful in being awarded grant funds, staff will return to Council for budget authority and identify necessary City matching funds at that time.

ENVIRONMENTAL ANALYSIS:

Pursuant to California Environmental Quality Act (“CEQA”) and Title 14, the California Code of Regulations Section 15378(b)(2), the recommended action is administrative in nature and does not qualify as a “Project” under CEQA. Therefore, no further CEQA or environmental review is required.

ATTACHMENT(S):

Resolution

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CITY OF HEALDSBURG
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG AUTHORIZING THE CITY MANAGER TO

PREPARE AND FILE DEPARTMENT OF WATER

RESOURCES GRANT APPLICATIONS, SUBMIT REQUIRED

DOCUMENTS, INVOICES, AND REPORTS REQUIRED TO

OBTAIN DEPARTMENT OF WATER RESOURCES GRANTS,

AND AUTHORIZING THE CITY MANAGER TO EXECUTE

FUNDING AGREEMENTS WITH DEPARTMENT OF WATER

RESOURCES
WHEREAS, the City of Healdsburg current water sources are entirely derived from surface water; and
WHEREAS, the surface water supplies are vulnerable to curtailments during droughts and other emergencies; and
WHEREAS, in the 2020 Urban Water Management Plan, staff identified the Groundwater Supply Wells/ASR Project to sustainably utilize water supplies that are not subject to curtailment of the surface water rights; and
WHEREAS, the 2020 Urban Water Management Plan, identified a municipal recycled water pipeline has having the potential to reduce overall system water demands by supplying tertiary treated recycled water to City parks, public golf courses, cemeteries, and public schools; and
WHEREAS, the State of California Department of Water Resources has set up the Urban Community Drought Relief Grant program to fund projects such as the Groundwater Supply Wells/ASR Project and the Municipal Recycled Water Pipeline Project; and WHEREAS the City of Healdsburg has the legal authority and is authorized to enter into a funding agreement with the State of California; and
WHEREAS the City of Healdsburg intends to apply for grant funding from the California Department of WaterResources for the Groundwater Supply Wells/ASR Project and the Municipal Recycled Water Pipeline Project; and
WHEREAS, pursuant to California Environmental Quality Act, the recommended action is administrative in nature and does not qualify as a “Project” under CEQA requiring further CEQA or environmental review.

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Packet Pg. 134 Attachment: Resolution (3803 : Authority to Enter for DWR Grants) Resolution No. -2022

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

1. Pursuant and subject to all the terms and provisions of Budget Act of 2021 (Stats. 2021, ch. 240, § 80), authorize the City Manager or designee to prepare and file applications for funding with the Department of Water Resources and take such other actions necessary or appropriate to obtain grant funding.

2. Authorize the City Manager or designee to execute funding agreements with the Department of Water Resources and any amendments thereto.

3. Authorize and direct the City Manager or designee to submit any required documents, invoices, and reports required to obtain grant funding.

PASSED, APPROVED, AND ADOPTED this 21st day of November 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. 135 Attachment: Resolution (3803 : Authority to Enter for DWR Grants)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: November 21, 2022
SUBJECT: Pass Various Healdsburg Municipal Code, Title 20 Land Use Code Amendments
PREPARED BY: Ellen McDowell, Senior Planner
STRATEGIC INITIATIVE(S):

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

Pass an ordinance amending Healdsburg Municipal Code Sections 20.16.150 (Number of required vehicular spaces); Section 20.08.145 (Permitted and conditionally permitted uses: PR, CD and CS Districts), Table 10; Section 20.20.075 (Alcoholic Beverage Establishments); Section 20.28.310 (Definitions); and related CEQA Exemption.

COMMUNITY ENGAGEMENT/OUTREACH:

A public hearing notice was published in the Press Democrat and posted at City Hall.

BACKGROUND:

On October 17, 2022, the City Council introduced an ordinance amending various sections to Healdsburg’s Land Use Code.

DISCUSSION/ANALYSIS:

Amendments include: 1) revisions to section 20.16.150, Number of required vehicular spaces, and elimination of a two-tier parking system; 2) revisions to section 20.08.145, Development Standards Table 10, Permitted and conditionally permitted uses: PR, CD and CS Districts, requiring a Conditional Use Permit for a theater and auditorium; 3) revisions to section

20.20.075, Alcoholic Beverage Establishments, adding an exception for theaters and auditoriums; and 4) addition to section 20.28.310, Definitions, to include a definition for Theater and auditorium.

ALTERNATIVES:

No alternatives are provided in that the requested action is the second reading of an ordinance.

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FISCAL IMPACT:

The Land Use Code amendments for sections 20.08.145 (Permitted and conditionally permitted uses: PR, CD and CS Districts, (Table 10), section 20.20.075 (Alcoholic Beverage Establishments), and section 20.28.310 (Definitions) will not result in a direct fiscal impact to the City. The recommended action related to Land Use Code amendment section 20.16.150 (Number of vehicular parking spaces) would reduce future in-lieu fees related to re-use of existing commercial spaces to the extent that an occupant is not proposing new development that alters the existing square footage.

ENVIRONMENTAL ANALYSIS:

The proposed amendments to the Municipal Code are exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3) in that the proposed amendments will not allow for or encourage any more development than is already anticipated under the City’s existing General Plan, or otherwise allow for or promote physical changes in the environment and, therefore, it can be seen with certainty that there is no possibility that the proposed amendments may have a significant effect on the environment.

ATTACHMENT(S):

Ordinance

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CITY OF HEALDSBURG
ORDINANCE NO. ____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG AMENDING HEALDSBURG MUNICIPAL
CODE SECTIONS 20.16.150: NUMBER OF REQUIRED
VEHICULAR PARKING SPACES; 20.08.145: PERMITTED

AND CONDITIONALLY PERMITTED USES (PR, CD AND CS
DISTRICTS), TABLE 10; SECTION 20.20.075: ALCOHOLIC
BEVERAGE ESTABLISHMENTS; SECTION 20.28.310:

DEFINITIONS
WHEREAS, the City of Healdsburg Municipal Code (HMC) Chapter 20 Land Use Code (LUC) regulates allowable and development standards within the City; and WHEREAS, amendments are proposed to the Land Use Code to provide greater clarity to code sections related in lieu parking fees, permitted and conditionally permitted uses in the PR, CD and CS districts, exceptions for alcoholic beverage establishments and adding a definition for theater and auditorium; and
WHEREAS, the Planning Commission held a duly noticed public hearing on September 13, 2022, at which time it reviewed the proposed amendments and considered all public comments on the revisions and the related CEQA exemption; and WHEREAS, at the September 13, 2022 Planning Commission meeting the Planning Commission suggested that the City track changes in use for 12-24 months and potentially revisit parking in-lieu fees based on findings; and
WHEREAS, the proposed amendments will provide for and encourage a variety of local businesses that can locate in the downtown area; and
WHEREAS, the proposed amendments will not allow for, nor encourage, any more development than is already anticipated under the City’s General Plan, or otherwise allow for or promote physical changes in the environment and, therefore, it can be seen with certainty that there is not a possibility that the proposed amendments may have a significant impact on the environment; and
WHEREAS, the proposed amendments are exempt from the California Environmental Quality Act pursuant to Section 15061(b)(3) of the CEQA Guidelines; and WHEREAS, the Planning Commission made the following affirmative findings pursuant to HMC Section 20.28.282 in support of the proposed amendments:

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Packet Pg. 138 Attachment: Ordinance (3810 : 2nd Reading - Various Land Use Code Amendments) Ordinance No.

A. The amendments are consistent with the Healdsburg 2030 General Plan including the goals, and policies, in that no conflicts with any Goals, Policies, Programs or measures of the Healdsburg General Plan 2030 have been identified.

B. The amendments are consistent with the objectives of the Land Use Code contained in Section 20.04.010 given that: a) adoption of the proposed amendments will continue to protect and promote the public health, safety and general welfare of the community by providing updated standards; and b) the amendments will implement the goals, policies, and programs contained in the Healdsburg 2030 General Plan.

C. The Planning Commission has conducted a public hearing on the draft Land Use Code Amendments with hearing notices provided as prescribed in Land Use Code Section

20.28.080, including newspaper publication at least 10 days prior to the hearing date.

D. The amendments are exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines.

WHEREAS, based upon the Planning Commission’s findings, the City Council determines that the revisions are consistent with the General Plan including the Goals, Policies, and Implementation Measures of the Housing, Land Use, and Economic Development Elements of the adopted General Plan, and that the revisions are internally consistent with all other provisions of the Municipal Code.

NOW, THEREFORE, the City Council of the City of Healdsburg does ordain as follows:

Section 1. Findings.

The above recitals are hereby declared to be true and correct findings of the City Council of the City of Healdsburg.

Section 2. Section 20.16.150 Number of required vehicular parking spaces shall be provided as follows:

B. Vehicular parking exceptions.

1. Covered Parking. The planning commission may waive the requirement for covered parking for senior or affordable housing developments and mixed use residential and commercial or industrial projects if this will facilitate reduced costs or improve the design of the project.

2. Senior Housing. The planning commission may reduce the parking requirements for senior housing developments.

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Packet Pg. 139 Attachment: Ordinance (3810 : 2nd Reading - Various Land Use Code Amendments) Ordinance No.

3. Shared Parking. The number of required parking spaces for multiple land uses on a site may be reduced by the planning and building director in the event it is determined that shared use of the same parking facilities can occur at differing times of the day and/or days of the week. Requests for shared parking reductions may be made to the planning and building department in writing and shall be accompanied by a shared parking analysis completed and signed by a registered traffic engineer indicating that no adverse effects would result from the shared use of parking spaces.

4. Parking In-Lieu Fee. Parking requirements for nonresidential, new construction (additional square footage) located within the area depicted here, as established by this section (Table 17) or as otherwise established by procedures under this Land Use Code, may be met by payment of a parking in-lieu fee as provided for in this section. a. Existing nonresidential space shall be exempt from this section. b. The parking in-lieu fee shall be a per-parking-space fee and is only applicable when a required parking space is not provided.
c. The amount per parking space for new construction (additional square footage) shall be as established in the City’s master fee schedule, as amended from time to time. d. The parking in-lieu fee shall be paid prior to the issuance of building permits. e. Funds collected by the City from parking in-lieu fee payments shall be deposited into a dedicated “parking and alternative transportation” deposit account and shall be

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Packet Pg. 140 Attachment: Ordinance (3810 : 2nd Reading - Various Land Use Code Amendments) Ordinance No.

used for parking and alternative transportation, including bicycle and pedestrian, improvements throughout the City.
f. Payment of the parking in-lieu fee shall be subject to the following:
i. In combination with the spaces provided on site, payment of the fee shall be considered full satisfaction of the off-street parking requirement, as determined by this section.
ii. The fee shall be non-refundable, and payment of the fee does not carry any other guarantees, rights, or privileges to the payer.
iii. Payment of the fee does not represent an obligation of the City to provide parking spaces within any particular proximity to the project for which the payment was made or to make available parking spaces within any particular amount of time. iv. Payment of the fee does not entitle the applicant, his or her tenants, or his or her clients to exclusive or private use of any public parking spaces. (Ord. 1149 § 1, 2015; Ord. 1139 § 1, 2014; Ord. 1106 § 2 (Exh. A § 1910), 2011.) Section 2. Section 20.20.075(B) Alcoholic Beverage Establishments shall provide an exception for theaters and auditoriums from this section as follows:

B. Exceptions. The provisions of this section shall not apply to full service restaurants, theaters and auditoriums, private clubs and veteran or fraternal clubs, or the temporary sale of alcoholic beverages by a church, school or charitable group as defined by the Department of Alcoholic Beverage Control (ABC).

Section 3. Section 20.08.145 Permitted and conditionally permitted uses in the Plaza Retail, Downtown Commercial, and Service Commercial Zoning Districts shall be provided as follows:

20.08.145 Permitted and conditionally permitted uses: PR, CD, and CS Districts The following permitted and conditionally permitted uses may be allowed in the PR, CD and CS Districts. Chapter 20.28 HMC, Article V describes the procedures for obtaining a conditional use permit.

Table 10 Permitted and conditionally permitted uses: PR, CD and CS Districts Permitted (P) and Conditionally Permitted (C) Uses PR CD CS Residential Uses
Day care, general -- C C
Day care, limited -- P P
Homeless shelters -- -- P
Multi-family dwellings located on the same site as a commercial use – above ground floor C P P

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Packet Pg. 141 Attachment: Ordinance (3810 : 2nd Reading - Various Land Use Code Amendments) Ordinance No.

Permitted (P) and Conditionally Permitted (C) Uses PR CD CS Multi-family dwellings located on the same site as a commercial use – any floor -- P P Residential care, general -- C C
Residential care, limited -- P P
Single room occupancy dwellings located on the same site as a commercial use – above ground floor C P P
Single room occupancy dwellings located on the same site as a commercial use – any floor -- P P
Supportive housing P P P
Transitional housing P P P
Vacation rental homes -- C --
Retail Trade and Services
Ambulance service -- -- P
Antique car display and sales -- C P
Antique sales – above ground floor P P C
Antique sales – ground floor C P C
Art galleries and picture framing with art sales P P P
Arts and crafts schools -- P P
Arts, crafts and hobby stores, including instructional classes as an accessory use P P P Automobile rentals -- -- P
Automobile washing (self-service) -- -- P
Automotive repair -- -- C
Automotive sales and service, new and used, with auto service -- -- P Automotive service stations, including smog testing, minor repair (tune-ups and brake repair only), towing services, vehicle storage and mini-markets -- -- C Automotive supply stores -- P P
Automotive upholstery shops -- -- C
Bakeries, retail P P P
Banks, savings and loans, thrift and loans, credit unions, including automated teller machines and drive-through facilities -- C C
Banks, savings and loans, thrift and loans, credit unions, including automated teller machines (no drive-through) C P P
Barber shops/beauty shops – above ground floor P P P
Barber shops/beauty shops – ground floor -- P P
Bars and cocktail lounges C* C* C*

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Packet Pg. 142 Attachment: Ordinance (3810 : 2nd Reading - Various Land Use Code Amendments) Ordinance No.

Permitted (P) and Conditionally Permitted (C) Uses PR CD CS Beer and wine sales (off-premises consumption), ancillary to mini-market retail sales contained within a service station -- -- C*
Bicycle sales and repair shops, including rentals -- P P Blueprint and photo reproduction shops -- P P
Boat sales and service -- -- P
Bookstores and newsstands – above ground floor P P P
Bookstores and newsstands – ground floor C P P
Bowling alleys -- -- P
Building material sales -- -- C
Bus depots C C C
Cabinet shops -- -- C
Card and stationers’ stores P P P
Carnivals and circuses, temporary -- -- C
Catering shops (food to go only) -- P P
Christmas tree sales lots, temporary P P P
Clothing and shoe establishments, including clothing sales (new merchandise only), tailor shops, and dressmaking establishments P P P
Computer retail sales -- P --
Consignment sales with incidental sales of used goods and clothing -- P P Contractors’ equipment rental yards & equipment rental yards -- -- C Contractors’ shops with no outdoor storage of heavy equipment -- -- P Delicatessens and gourmet food sales with incidental catering P P C Dental labs -- P P
Department stores -- P P
Dry cleaners and laundries -- P P
Electronic games centers (4 or more games) -- C C
Fabric shops P P P
Farmers markets C C C
Floor covering and drapery sales -- C P
Florists, including outdoor sales P P P
Food and cold storage lockers -- C P
Food stores over 3500 square feet in retail sales -- P P

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Packet Pg. 143 Attachment: Ordinance (3810 : 2nd Reading - Various Land Use Code Amendments) Ordinance No.

Permitted (P) and Conditionally Permitted (C) Uses PR CD CS Food stores up to 3500 square feet in retail sales C P P Furniture repair -- P P
Furniture stores, retail P P P
Gift shops P P P
Glass shops (glaziers) -- -- P
Gunsmith shops, sales and repair -- P P
Hardware, paint and wallpaper stores -- P P
Health clubs, gymnasiums and dance studios -- C P
Home electronics and household appliance stores, including television, stereo, radio, telephone, computer and related sales (includes repair and installation services) -- P P Hotels, extended stay hotels and motels P P --
Ice cream parlors, soda fountains and candy stores P P P Interior furnishing and accessory shops P P P
Jewelry sales and repair, including watch and clock repair P P P Kennels -- -- C
Kitchenware shops P P P
Laboratories -- C P
Laundries – self-service -- P P
Linen supply services -- -- P
Liquor, beer and wine sales – off-premises consumption C* C* C* Live-work facilities -- P P
Locksmiths -- P P
Machinery sales, service, rental -- -- P
Manufacturing/processing – light; provided, that all of the conditions prescribed by Chapter 20.24 HMC Article I are met, and that no motor power other than electrically operated motors shall be used. The horsepower of any single motor shall not exceed five horsepower and the total horsepower of all such motors on the site shall not exceed 25 total horsepower. This does not include air conditioning equipment.
-- C C
Massage establishments – above ground floor P P P
Massage establishments – any floor -- P P
Medical and dental clinics -- -- P
Mortuaries -- C C
Motorcycle sales and service -- C P

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Packet Pg. 144 Attachment: Ordinance (3810 : 2nd Reading - Various Land Use Code Amendments) Ordinance No.

Permitted (P) and Conditionally Permitted (C) Uses PR CD CS Music and dance entertainment clubs -- P C
Musical instrument sales, repair and lessons; and recorded music sales – above ground floor P P P
Musical instrument sales, repair and lessons; and recorded music sales – ground floor C P P
Nightclubs C* C* C*
Nurseries and garden supply stores -- C P
Office equipment sales and service -- P P
Offices – professional, administrative and business, including chiropractor, insurance, real estate and financial offices, but excluding medical and dental offices – any floor
-- P P
Offices – professional, administrative and business, including chiropractor, insurance, real estate and financial offices, but excluding medical and dental offices – above ground floor

P -- --
Offices – psychologist, psychiatrist, counseling and therapy -- P P Optician and optometrist shops -- P P
Outdoor vendors on private property C C --
Parking lots and parking garages C P P
Patio and garden furniture and accessories shops -- P P Pet shops, including pet grooming -- P P
Pharmacies and drug stores C P P
Photography shops, studios and photo supply stores C P P Picture framing shops -- P P
Plumbing supply shops -- C P
Pool and billiards halls -- C P
Pool and spa sales and service -- -- P
Post office and private mail services -- C P
Pottery and woodworking shops -- -- P
Printing, lithography and engraving -- C P
Public information centers – indoor P P P
Public utility installations, including public service pumping stations, power stations and substations, equipment buildings and installations -- C C Radio and television broadcast and recording studios -- C C Radio, television and stereo sales and service -- P P
Recreational equipment rental -- -- P

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Packet Pg. 145 Attachment: Ordinance (3810 : 2nd Reading - Various Land Use Code Amendments) Ordinance No.

Permitted (P) and Conditionally Permitted (C) Uses PR CD CS Recreational vehicle sales, services, repair and storage -- -- P Residential visitor lodging -- C C
Restaurants, cafes and eating establishments, indoor and outdoor eating, including sale of alcoholic beverages as an ancillary use and indoor music with no sound amplification
P P P
• Amplified music C C C
Restaurants, drive-in, walk-up and drive-through -- -- C Retail warehouses over 6,000 square feet of floor area -- -- C Retail warehouses under 6,000 square feet of floor area -- -- P Secondhand stores and pawn shops -- C C
Shoe repair -- P --
Sign painting -- C P
Skating rinks (within bldg) -- -- P
Spa, day -- P P
• Above ground floor C P --
• Any floor -- P --
Spa, overnight P P --
Sporting goods sales, with rental as an accessory use -- P P Supermarkets (over 3500 square feet of retail sales area) -- P P Tasting room C* C* --
Theaters and auditoriums C C C
Tire sales, not including tire recapping -- -- P
Tobacco and pipe shops P P P
Toy stores P P --
Travel agencies – above ground floor P P P
Travel agencies – ground floor C P P
Upholstery shops -- C C
Vacation timeshares -- -- --
Variety stores and dry goods -- P P
Vending machine service -- -- P
Veterinarian offices and small animal hospitals -- -- C Recreation, Education and Public Assembly

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Packet Pg. 146 Attachment: Ordinance (3810 : 2nd Reading - Various Land Use Code Amendments) Ordinance No.

Permitted (P) and Conditionally Permitted (C) Uses PR CD CS Churches and other religious institutions -- C C
Private clubs, fraternal lodges and meeting halls C C C Private museums P C --
Accessory Uses
Accessory structures and uses located on the same site as a permitted or conditional use
P P P
Section 4. Section 20.28.310 Definitions shall add a definition for Theaters and Auditoriums as follows:

Theater and auditorium. An indoor facility for public assembly and group entertainment.

Examples of these facilities include:
• Civic theaters, and facilities for “live” theater and concerts • Movie theaters
• Similar public assembly facilities
Section 5. Environmental Compliance.

The City Council finds that the proposed Ordinance is exempt from CEQA under section 15061(b)(3) of the CEQA Guidelines. The commonsense exemption set forth in Section 15061(b)(3) provides that CEQA only applies to projects which have the potential for causing a significant effect on the environment, and thus where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Therefore, it can be seen with certainty that adoption of the proposed Ordinance would not have any environmental effects.

Section 6. Severability
If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.

Section 7. Effective Date and Publication.

This Ordinance of the City of Healdsburg shall be effective thirty (30) days after the date of its passage. Before expiration of fifteen (15) days after its passage, this Ordinance or a summary thereof as provided for in Government Code Section 36933, shall be published at least once in a newspaper of general circulation published and circulated in the City of Healdsburg, along with the names of the City Council members voting for and against its passage.

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Packet Pg. 147 Attachment: Ordinance (3810 : 2nd Reading - Various Land Use Code Amendments) Ordinance No.

INTRODUCED by the City Council of the City of Healdsburg on the 17th day of October, 2022, and PASSED and APPROVED at a regular meeting of the City Council on the 21st day of November, 2022, by the following vote:

AYES: Councilmembers: ( )
NOES: Councilmembers: ( )
ABSENT: Councilmembers: ( )
ABSTAIN: Councilmembers: ( )
SO ORDERED: ATTEST:
___________________________________ ____________________________________ Osvaldo Jimenez, Mayor Raina Allan, City Clerk
Dated: __________________

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Packet Pg. 148 Attachment: Ordinance (3810 : 2nd Reading - Various Land Use Code Amendments)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: November 21, 2022
SUBJECT: Professional Services Agreement with Rincon Consultants to Support Climate Mobilization Strategy Development
PREPARED BY: Andrew Sturmfels, Assistant City Manager
STRATEGIC INITIATIVE(S):

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

Adopt a Resolution approving a Professional Services Agreement with Rincon Consultants to support development of a climate mobilization strategy, authorizing the City Manager to execute the contract and amending the 2022-23 fiscal year budget.

COMMUNITY ENGAGEMENT/OUTREACH:

The proposed professional services agreement with Rincon Consultants to support the development of a Climate Mobilization Strategy includes community engagement and outreach consistent with the feedback provided by City Council during the October 17, 2022 kickoff meeting.

BACKGROUND:

At the August 2nd, 2021 City Council Meeting, the City received a presentation from the Regional Climate Protection Authority (RCPA) on their ongoing efforts to support a countywide Climate Mobilization Strategy. During the City Council Strategic Goal Setting Meeting on March 7th, 2022, Council adopted as a goal the development of a Climate Mobilization Strategy for Healdsburg. On October 17th, 2022, City staff held a kickoff with the City Council outlining the process steps for developing a Climate Mobilization Strategy DISCUSSION/ANALYSIS:

In order to support the development of the City’s first Climate Mobilization Strategy, staff solicited informal bid proposals from five firms with demonstrated experience in the field of climate strategy and plan development. Two firms expressed interest in working with the City and provided scopes of work.

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After internal review and scoring, City staff recommend awarding a contract to Rincon Consultants. Rincon has worked on over 50 climate plans and strategies, including several northern California Cities, Sonoma County Regional Parks, and more. Rincon’s scope, schedule, and cost align with the City’s project plan. Rincon’s scope of work includes the following tasks and subtasks, which are described in detail in the Scope of Work attachment:

1. Project Kickoff

2. Measure Development
a. Draft Strategy Selection
b. Scenario-Planning for GHG Reduction Strategies

3. Outreach and Engagement
a. Community Outreach and Engagement Plan
b. Community Pop-Up and Workshops (including surveys)
c. City Staff Interviews
d. Stakeholder Group Presentations (to be facilitated by City staff, and feedback incorporated into strategy development by Rincon)
e. Public Hearings

4. Climate Strategy Development
a. Administrative and Public Review Drafts
b. Final Climate Strategy Document

5. Project Management
a. Quality Control and Review
b. Communication and Reporting
c. Cost and Schedule Control
Rincon also included an optional task for Emissions Forecasting and Target Analysis. The first subtask is developing a forecast of future emissions trends based on past RCPA inventory reports and legislation requirements. Completing this forecast would give us a better understanding of what the future would look like under a status quo environment. The optional second subtask is to develop GHG emission reduction targets that are practical, defensible, and consistent with state recommendations or regional goals. Staff recommend including Emissions Forecasting and Target Analysis with both optional subtasks in the professional services agreement.

During the October 17, 2022 meeting, City Staff presented five project phases for the Climate Mobilization Strategy development, which are outlined below. The scope of work with Rincon will support planning and implementation for Phases 1 through 4. • Phase 1: Discovery & Information Gathering (including ideation with the community) • Phase 2: Analysis & Draft Climate Mobilization Strategy (including community input on prioritization)
• Phase 3: Community & Council Feedback on Draft Climate Mobilization Strategy • Phase 4: Adoption of Climate Mobilization Strategy
• Phase 5: Monitoring & Updating (ongoing)
City Staff also presented criteria to evaluate actions using a standard rubric that considers the following factors:
• GHG reduction potential

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• Cost and cost-effectiveness
• Equity impact
• Co-benefits (e.g., increased resilience, improved air quality, improved public safety and health, increased mobility, potential green job creation, etc.) • Time to implement
The above criteria, along with community input, qualitative and quantitative analysis, and frameworks/tools provided by Rincon will all be considered in developing the Climate Mobilization Strategy and identifying priority climate actions for Healdsburg.

ENVIRONMENTAL STEWARDSHIP:

Developing a Climate Mobilization Strategy for the community will support environmental stewardship goals.

ALTERNATIVES:

Council may choose to not include the optional tasks or not approve the proposed professional services agreement and budget amendment. Should Council request specific changes to the proposed scope of work, staff will need time to review those changes with Rincon and would request to return at a future meeting.

FISCAL IMPACT:

The total proposed cost of this professional services agreement, including the proposed optional tasks, is $107,613. The 2022-23 Fiscal Year budget includes $29,000 to support the hiring of a Civic Spark Fellow. Staff recommend reallocating these funds to support the proposed contract.

Additionally, staff recommend approving an increase to the City Manager’s Office Contracted Services Budget of $78,613 to support the professional services agreement, as shown in Exhibit A.

ENVIRONMENTAL ANALYSIS:

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

ATTACHMENT(S):

Resolution
Exhibit A
Rincon Consultant Scope of Work

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CITY OF HEALDSBURG
RESOLUTION NO. _____-2022

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG APPROVING A PROFESSIONAL SERVICES

AGREEMENT WITH RINCON CONSULTANTS,

AUTHORIZING THE CITY MANAGER TO EXECUTE THE
AGREEMENT, AND AMENDING THE FISCAL YEAR 2022-23
BUDGET
WHEREAS, the City Council of the City of Healdsburg adopted as a strategic goal during the City Council Strategic Goal Setting meeting on March 7th, 2022 to develop a Climate Mobilization Strategy for the City of Healdsburg; and
WHEREAS, the City of Healdsburg has determined that it requires professional services to support the development of a climate mobilization strategy; and WHEREAS, city staff have determined that Rincon Consultants is duly qualified and experienced to provide said professional services and it is willing to accept responsibility for performing such services; and
WHEREAS, Rincon Consultants and City have developed a scope of work for such services that both parties have agreed to and can accomplish; and WHEREAS, the City Council adopted a Fiscal Year 2022-23 budget that included $29,000 to support the development of a Climate Mobilization Strategy through the support of a Civic Spark Fellow; and
WHEREAS, the City was ultimately unsuccessful in securing a Civic Spark Fellow and would like to reallocate those funds to support the scope of work with Rincon Consultants; and WHEREAS, the City wishes to budget an additional $78,613 for the professional services agreement with Rincon to support the City in completing a Climate Mobilization Strategy.

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

1. Approves the budget amendment attached as Exhibit A.

2. Approves a Professional Services Agreement with Rincon Consultants in the amount of $107,613 and authorizes the City Manager to execute the agreement.

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

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Packet Pg. 152 Attachment: Resolution [Revision 1] (3811 : PSA with Rincon Consultants to Support Climate Mobilization Strategy Development) Resolution No. -2022

PASSED, APPROVED AND ADOPTED, this 21st day of November 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. 153 Attachment: Resolution [Revision 1] (3811 : PSA with Rincon Consultants to Support Climate Mobilization Strategy Development) Resolution No.

Exhibit A
Account Number Increase Amount Decrease Amount Description 101-2001-43205-00000 $ 78,613 Increase Budget for Rincon Consultants Climate Mobilization Strategy Contract FY 22-23 Budget Amendment

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Packet Pg. 154 Attachment: Exhibit A (3811 : PSA with Rincon Consultants to Support Climate Mobilization Strategy Scope of Work
“The development of the Climate Action Plan (CAP) has been a very collaborative effort. This is the first ever of its kind for an agency as large and as specialized as ours and, as such, has presented a number of challenging tasks to keep the project moving forward. Rincon’s CAP Project Manager has gone above and beyond to ensure our needs have been met, that potential issues are brought to our attention and worked through with thoughtful, wellreasoned solutions. Our goal has been to provide a quality, meaningful product that will be used to guide decision making in the future and as such, has high level of technical detail and well-reasoned solutions. Rincon’s team have met or exceeded our expectations in every way.

We have pushed this team to meet schedules that would have broken other consultants and they have worked diligently and tirelessly to ensure that not only are deadlines met, but met with a quality product. I highly recommend the Rincon Team." - Malinda Stalvey, Metropolitan Water District Senior Environmental Specialist 1 6.K.c
Packet Pg. 155 Attachment: Rincon Consultant Scope of Work (3811 : PSA with Rincon Consultants to Support Climate Mobilization Strategy Development) Scope of Work
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Scope of Work
The following tasks outline our proposed scope of work.

Task 1 Internal Kick-off Meeting
Rincon will work with City staff to organize a virtual kick-off meeting with the City’s Project Team to discuss project goals and objectives within two weeks of project authorization. The kick-off meeting will provide an opportunity to refine the proposed schedule, as well as identify existing documents (e.g., City of Healdsburg General Plan, Healdsburg Community Based Transportation Plan,1 Healdsburg Bicycle & Pedestrian Master Plan,2 Foss Creek Pathway Plan,3 Sonoma County Regional Safe Routes to School Program,4 and Sonoma County Regional Climate Action Plan5), policies, and key interested parties (e.g., Healdsburg 2040, Rotary Club of Healdsburg, Rotary Club of Healdsburg Sunrise, Healdsburg Chamber of Commerce, Healdsburg Regional Library, Farm to Pantry, Healdsburg School District, all utility providers, and local tribes). To inform the Community Outreach and Engagement Plan (see Task 3.1), Rincon will ask a series of questions to City staff regarding lessons learned for past engagement efforts. Goals for the engagement efforts will also be defined.

During the kick-off call, the Rincon team will also present potential options for the City to consider for reducing emissions (e.g., carbon neutrality by 2045, in line with the state goal, or reaching carbon neutrality earlier, in line with the Sonoma County Regional Climate Protection Authority [RCPA] goals). This meeting will also serve to establish the project management procedures, including invoicing terms and communication protocols. Following the kick-off meeting, the Rincon team will provide an adjusted schedule, if necessary, as well as final list of existing applicable documents, data, and policies for City review and confirmation.

Rincon may utilize an online collaborative tool (such as Mural) to help guide the team through a Project Work Plan brainstorming session and to collect each team member’s ideas for the project. We have found these tools effective for discussions around timelines, scopes, gathering multiple ideas, and framing discussions because it allows for real-time input in a setting that is more comfortable for everyone to voice their opinion, especially in a virtual setting. So far, we have used the mural tool for kick-off meetings, check-in meetings, stakeholder workshops, and education sessions.

Assumptions
• Rincon will host a (one-hour) virtual kick-off meeting. • Rincon’s Principal-in-Charge, Project Manager, and Assistant Project Manager will attend the meeting.

Deliverables
• Kick-off Meeting Agenda and Summary
• Final list of Existing Documents/Data/ Policies to review • Final Schedule
• Mural session and notes
1 https://scta.ca.gov/reports/Healdsburg_Community_Based_Transportation_Plan.pdf 2 https://www.ci.healdsburg.ca.us/DocumentCenter/View/11808/Healdsburg-Bicycle-and-Pedestrian-Master-Plan-2013-Revision-PDF 3 https://www.ci.healdsburg.ca.us/DocumentCenter/View/802/Foss-Creek-Pathway-Plan-PDF 4 https://www.ci.healdsburg.ca.us/DocumentCenter/View/550/Safe-Routes-to-Schools-Program-PDF?bidId= 5 https://rcpa.ca.gov/wp-content/uploads/2016/07/CA2020_Plan_7-7-16_web.pdf

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Optional Task A Emissions Forecasting and Target Analysis As an optional task, we have included the Forecast and Target analysis included below. The cost for these optional tasks have been excluded from the total cost estimate, however, they are included as individual tasks A1 and A2 in case the City would like to complete these tasks at a later date. GHG Forecasts project changes in a communities GHG emissions based on changes in population, land use, and State climate legislation. Target analysis estimates the quantity of GHG emissions that would need to achieve consistency with the State and RPCA GHG reduction goals.

Optional Task A.1 Forecasts
Rincon understands that the RCPA prepared community GHG inventories for Healdsburg for a variety of data years, including 2010, 2015, 2018, and 2020. RCPA completed the most recent 2020 inventory update to help track progress towards achieving their short and long-term emissions reduction goals. With the adoption of the Sonoma Climate Mobilization Strategy in March 2021, RCPA set a new goal for Sonoma County to achieve carbon neutrality by 2030. In order to plan for the future, we must understand how emissions trends may continue. Therefore, as the first step in this task, the Rincon team will utilize our forecasting tool to draft both a business-as-usual (BAU) forecast and an adjusted forecast (which includes reductions from state legislation) of expected emissions broken down by emissions sector for specific future years, such as 2030 and 2045. These years are suggestions based on the major milestone years of Senate Bill 32 and the 2022 Scoping Plan. The business-as-usual forecast will include only population growth and projected land use changes. Rincon will work with the City to identify the best source for population, jobs, and land use change data and could include Sonoma County data, Department of Finance, and Regional Housing Need Allocation (RHNA) housing considerations.

Following calculation of the BAU forecasts, we will also calculate an “adjusted” forecast, which will account for expected changes in regulations affecting the federal, state, and local level which include, emission factor changes due to increased carbon free electricity in Healdsburg’s Electric Utility Departments grid mix, Low Carbon Fuel Standard, Pavley Clean Car Standards, Advanced Clean Cars Program, Renewables Portfolio Standard, Senate Bill 100, and Title 24. The Rincon team will calculate how these regulations will affect the selected future year GHG emissions levels and produce a GHG emission forecast that accurately portrays future emissions growth and the quantity of GHG emissions that the City will be responsible for reducing to meet GHG reduction targets. Rincon will provide a draft of the forecast tool and a detailed technical memorandum for review to the City before incorporating feedback and developing a final deliverable.

Optional Task A.2 Targets
Rincon’s approach to GHG emission reduction target setting is iterative, which is essential to identifying targets that are practical, defensible, and consistent with current state recommendations, including SB 32 and the newly signed AB 1279, or alternative targets that are more aggressive and in alignment with the RCPA goals. As mentioned above, Rincon understands that the RCPA has established an emissions reduction goal of reaching carbon neutrality by 2030, over a decade ahead of the state’s goal of reaching carbon neutrality by 2045. Rincon will produce both per capita and mass emission-based targets for the City to review under both scenarios (state goals and RCPA goals). Per capita emissions targets are well established by the state through the 2017 and 2022 Scoping Plans and may provide a more accurate portrayal of Healdsburg’s emission changes over time due to the ability to normalize population fluxes. These per person estimates can also be translated into per service person (employees +population). A complete analysis of both options will be conducted and presented to the City for approval.

Assumptions
• Rincon will work with the City to identify the best source for population, jobs, and land use change data and could include Sonoma County data, Dept of Finance, and RHNA housing considerations.

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Packet Pg. 157 Attachment: Rincon Consultant Scope of Work (3811 : PSA with Rincon Consultants to Support Climate Mobilization Strategy Development) Scope of Work
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• Rincon has budgeted for receipt of one set of consolidated comments on each deliverable. Any additional revisions will be completed on a time and materials basis in accordance with our standard fee schedule.
• Rincon will incorporate feedback from the interested party meetings, as appropriate.

Deliverables
• Draft and Final Forecast and Target Memorandum
• Excel based Forecast Tool
Task 2 Measure Development
To support the measure development process, Rincon has developed a suite of tools and assessment strategies to support what we have found to be the most critical portion of the work plan. As a first step, Rincon will conduct a review of the City’s existing plans and initiatives to extract the current climate-related initiatives.

Task 2.1 Draft Strategy Selection
Immediately upon notice-to-proceed, the Rincon team will begin reviewing relevant City documents and begin preparation of our Measure Analysis and Success Tracking (MAST) tool, which will summarize and grade the success of, as well as identifies hurdles to, the City’s existing climate policies and programs. The MAST tool will form the foundation of the Climate Strategy development. The MAST tool allows the Rincon team to familiarize ourselves with the previous and ongoing work within the City related to reducing GHG emissions and increasing resilience to better inform the development of new measures and actions. This exercise also evaluates the City’s successes and identifies hurdles such as lack of funding or staffing in implementing past efforts. Additionally, the MAST tool provides an opportunity to consolidate all existing efforts in one place, as well as review the most current state and regional plans to ensure consistency.

Rincon intends to review the following plans and programs/policies, at a minimum:
• City of Healdsburg General Plan
• Healdsburg Community Based Transportation Plan
• Healdsburg Bicycle & Pedestrian Master Plan
• Foss Creek Pathway Plan
• Sonoma County Regional Safe Routes to School Program
• Sonoma County Regional Climate Action Plan
Drawing on the collective outputs of the MAST tool, GHG inventory, and feedback from the community (Task 3) and stakeholders, the Rincon team will identify and recommend strategies which will have the greatest positive impact on GHG emissions and climate resilience Citywide. During this phase, the Project team will draw on our experience developing climate action plans and mitigation strategies for other neighboring communities like Livermore, Sacramento, Chico, Dublin, Pinole, Pittsburg, Sunnyvale, Cupertino, and the County of San Mateo as well as our direct experience implementing many of these actions for our clients.

Through these experiences we have identified the key measures that will allow the City to make substantial progress towards GHG reductions. These include:
• Carbon free electricity
• New and existing building electrification
• VMT reduction through transit and active transportation • Electric vehicles
• Organics diversion
• Carbon sequestration

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Packet Pg. 158 Attachment: Rincon Consultant Scope of Work (3811 : PSA with Rincon Consultants to Support Climate Mobilization Strategy Development) City of Healdsburg
City of Healdsburg Climate Strategy Proposal
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These strategies have emerged as critical in the achievement of nearly all GHG reduction goals. Rincon will begin with these strategies and develop our in-house Scenario Planning and Reduction Quantification (SPARQ) tool. We will utilize the existing GHG inventory as the City’s baseline and will establish this as the level to measure progress against without projecting emissions changes overtime due to land use and population change unless the optional forecast is elected to be included as part of the scope and would then be used in the analysis. The RCPA 2030 goal will be incorporated into the SPARQ tool as a target metric to evaluate the quantity of emissions that need to be reduced to support the RCPA 2030 goal. The SPARQ tool will allow Rincon and the City to quickly iterate on potential levels of implementation for each of the above strategies to find a level of implementation that will allow the City to meet its long term GHG reduction targets. Additionally, the SPARQ tool will provide valuable visualization of the GHG emission reduction of the measures that will help the community understand the importance of specific measures in achieving the RCPA reduction goals.

Figure 1 SPARQ Tool – Reduction Scenarios
Task 2.2 Scenario-Planning for GHG Reduction Strategies Once the key strategies and level of reduction required in each sector is identified, Rincon will begin developing a suite of actions that can be implemented to achieve the required reductions. The development of actions is the most complex portion of the work scope, requiring a careful balance between feedback from interested parties, cost-effectiveness, progression, and feasibility. To aid in this process, Rincon has developed the following frameworks which we use to guide our measure and action development.

Equity Guardrails
Rincon worked with the numerous cities, such as Berkeley and Santa Cruz, to develop equity guardrail framework to assure equity analysis of all measures and actions and promote holistic implementation. This framework requires collaboration with the community and stakeholders to identify the core impacts on equity that may be seen due to the implementation of GHG reduction actions. Issues like increased costs, inequitable access to benefits, displacement, and others have been identified in other communities. These concerns are then distilled into four or five equity guardrails that then serve as requirements against which GHG reduction actions are analyzed against. The equity guardrails approach helps to ensure equity is included throughout the Climate Strategy in a transparent and holistic way.

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Packet Pg. 159 Attachment: Rincon Consultant Scope of Work (3811 : PSA with Rincon Consultants to Support Climate Mobilization Strategy Development) Scope of Work
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Community Feedback
Rincon believes that incorporating feedback from the community early and often is essential to an effective climate action planning process. We will seamlessly align the outreach and measure/action development to ensure we balance community priorities with the development of implementable and impactful GHG reduction measures and actions. Key engagement efforts will be designed around meaningful community feedback at 3 key milestones, including the initial measure brainstorming, measure refinement and prioritization, and review of the Draft Climate Strategy. More details on how we propose to engage the community throughout this process can be found under Task 3, below.

Climate Action Pillars
Rincon has also developed several key pillars for which each strategy must address in order to have the highest chance of being implemented. The key pillars include:
• Education: engage and empower residents
• Structural Change: set institutional and policy framework to support proposed changes • Associated GHG Reductions: target emissions reductions for long-term sustainability and short-term air quality improvements
• Equity: ensure inclusive participation in decision making and equitable distribution of benefits across the community
• Connectivity: promote access to community groups and resources that are best positioned to lead implementation actions
• Economically Viable: cost-effective efforts that benefit resilience and sustainability Every measure identified for the City should strive to have an action that aligns with each of the key pillars to maximize the implementation of the Climate Strategy.

Measures and Actions List
Based on the criteria above, Rincon will develop a draft list of GHG reduction measures and actions that will act as a roadmap and align with the City’s GHG reduction targets for the established target years. Rincon assumes this list of actions will go through one round of City staff review before being shared with the community and other interested parties. Once comments are received from the identified interested parties, Rincon will assess any policy or program gaps and identify additional opportunities for emission reductions and conduct an in-depth analysis of each strategy, which would include quantifying the GHG reduction for the top 15 measures with the greatest potential to reduce emissions and the cost for up to 15 actions, as well as identifying the co-benefits for each action. 6 Qualitative cost analysis (high/medium/low)
will be completed for the remaining actions. The measure and action list will also include the recommended City involvement (e.g., role, department lead), linkages to exiting City plans, codes, or activities, and the identification of interested parties, community-based organizations, and partners essential to the successful implementation. Once the initial analysis is complete, we will work with the City and community to refine and prioritize the emission reduction measures and use them to develop the Draft Climate Strategy.

The Climate Strategy will need to be flexible to enable the City to respond to changes in state and federal GHG policy, the introduction of new technologies, and changes in energy supply, among others. Rincon will use our quantification and scenario planning tools to help fine-tune the measures and actions into a final set that can be feasibly implemented but also achieve the desired results of overall GHG reduction and support of regional initiatives.
6 The ability to fully quantify the GHG reduction potential and cost may be limited by available data and the wording, structure and specificity of the measures approved by the city. If quantitative cost and GHG reduction potential cannot be completed, Rincon will notify the city and if necessary, provide qualitative analysis instead.

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Packet Pg. 160 Attachment: Rincon Consultant Scope of Work (3811 : PSA with Rincon Consultants to Support Climate Mobilization Strategy Development) City of Healdsburg
City of Healdsburg Climate Strategy Proposal
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Assumptions
• Rincon has budgeted for receipt of one set of consolidated comments on the draft measure and action list from the City. Any additional revisions will be completed on a time and materials basis in accordance with our standard fee schedule (attached).
• Rincon has budgeted for the time it takes to incorporate edits from one round of community feedback on the draft measures and actions, which would be received via workshops, website, and survey. • Rincon will populate the MAST tool while the City staff will rank each policy and program in the MAST Tool according to effectiveness/implementation status.
• Rincon will quantify the GHG reduction for the top 15 measures with the greatest potential to reduce emissions and the cost for up to 15 actions, as well as identifying the co-benefits for each action.

Measures will be written in a manner that allows for quantitative analysis of the measures and actions.

Data resources and references will be available to support the quantitative analysis of the measures. • Rincon will incorporate feedback from the interested party meetings, as appropriate.

Deliverables
• MAST Tool
• Equity Guardrails
• SPARQ Tool
• Draft, Public Draft, and Final list of measures and actions Task 3 Outreach and Engagement
Based on our conversations with City staff regarding past engagement, we have developed an efficient engagement process to inform and solicit feedback from the passionate and engaged Healdsburg community while avoiding community engagement fatigue. The City of Healdsburg is diverse with a population of approximately 11,275 people, 24 percent of which speak a language other than English at home, according to the United States Census Bureau.7 Therefore, it is especially critical to establish a Community Engagement Strategy that includes representation from the variety of voices in the community. All community outreach flyers, handouts, website material, and surveys will be prepared in both English and Spanish (Spanish translation not certified). Flyers/handouts will be designed to be visually attractive and easy for a variety of audience members to interpret. The flyers/handouts will be provided to the community to communicate important information throughout the process, such as the emissions inventory and details on upcoming events and/or links to a Climate Strategy website for more information. For example, they may include infographics, charts or graphs with clear keys, and detailed information for residents and businesses for how to get involved further with links to more information, which would be available on the City’s website.

Rincon’s graphic designer will create all the project branding to be appealing, modern, and consistent with other City initiatives. We will also include links for up to 3 online surveys intended to gather community feed back during key project milestones, such as the initial measure brainstorming, measure refinement and prioritization, and the Draft Climate Strategy.

Task 3.1 Community Outreach and Engagement Strategy
Rincon will kick-off the community engagement effort by developing a Community Outreach and Engagement Plan that establishes effective methods to gain informed and meaningful input from a broad and diverse range of groups and populations in Healdsburg. The Community and Outreach Engagement Plan will be shaped by the input from the Project Team at the kick-off meeting with the intent of inviting the community to be part of the process from the beginning. Community engagement will focus on the community at-large, directly affected interested parties including property owners, businesses, residents and interest groups, civic decision-makers, disenfranchised communities, and disadvantaged communities. 7 https://www.census.gov/quickfacts/healdsburgcitycalifornia

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The engagement effort will be designed to effectively build collaborative interest, identify common values and goals in the project direction given the diverse group of local stakeholders, and to bring new participants into the conversation. To best accomplish this, our team will include several engagement methods as a part of the Community Engagement Plan, as presented in more detail below in Tasks 3.2 – 3.5. These will include in-person community workshops and pop-up events, interviews with City staff, and City Council and Planning Commission meetings. The Community Outreach and Engagement Plan will clearly identify consultant and City roles for all related engagement and notification activities and the project timeline. Our goal is to design the community outreach to engage the public and community leaders in a fun and interactive way that will create a common vision and facilitate informed input into the climate action planning process.

Task 3.2 Community Pop-Up and Workshops (4)
Through our experience leading a wide variety of community engagement events we have found significant value from community pop-ups at popular destinations or community events, which allows us to essentially meet people where they are in the community. Healdsburg has many popular community events throughout the year for residents, businesses, and visitors to gather and celebrate the City’s traditions and diversity (e.g., Healdsburg Farmers’ Market, Foss Creek Clean-up, Art After Dark, Picnic in the Park, St. Patrick’s Day celebrations, Tuesdays in the Plaza, and much more!). Rincon will create materials and in partnership with the City and host one pop-up booth at a community event to bring the Climate Strategy into the community and capture input from a larger and more diverse audience. This will include a one-page educational flyer, a one to three question micro-survey, and a contact-list sign-up form. Rincon will provide the digital version of these materials for the City to print in advance and one Rincon staff member will attend for up to three hours. The project booth and materials at these events can be a good tool to foster project interest, provide project information and background, facilitate quick and engaging interactive exercises, and collect contact information for interested residents. Rincon will prepare all necessary materials (e.g., flyers/handouts/micro-survey) in both English and Spanish (Spanish translation is not certified) and staff the pop-up booth.

This pathway invites all community members to have an equitable seat at the table, which ensures that all voices will be heard, and the Climate Strategy will ultimately be implementable in the long-term. If desired, Rincon can provide additional materials and training to City staff for hosting additional pop-ups of their choosing, on a time and materials basis in accordance with our standard fee schedule (attached). For this task, we have assumed City staff will coordinate with the community event organizer to reserve a booth, pay applicable fees, and other logistical needs, such as printing any materials for in-person engagement events, while Rincon would draft and finalize any handouts/flyers, as well as attend the event for up to three hours.

Rincon will also assist City staff in preparing for and conducting three community workshops to discuss and gather community feedback on the initial measure brainstorming, measure refinement and prioritization, and review of the Draft Climate Strategy. Two workshops will be held in person and another workshop will be held virtually. Rincon has found that providing both workshop formats greatly increases overall participation.

Rincon will prepare all materials for the workshop and serve as the workshop facilitator. Flyers and up to 3 surveys will be provided in English and Spanish and would be provided to the City in an electronic form to post on the City’s website. Our Team is experienced in creating innovative, COVID-compliant outreach strategies that meet the needs of each specific community.

Task 3.3 City Staff Interviews (4)
Rincon will conduct up to four small group interviews lasting up to one hour each to review and discuss the provisional emissions reduction measures developed with City staff from specific departments to get feedback and understand any potential concerns or roadblocks. Rincon will lead the interview process and incorporate feedback received throughout the process at the completion of the interviews. The City staff interview task is a critical step in gaining a candid understanding of conditions and issues from a variety of perspectives. Rincon assumes these meetings will be held virtually.

Rincon recognizes that the City engages with a wide variety of stakeholders, including but not limited to the Healdsburg 2040, Rotary Club of Healdsburg, Rotary Club of Healdsburg Sunrise, Healdsburg Chamber of

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Commerce, Healdsburg Regional Library, Farm to Pantry, Healdsburg School District, Association of Bay Area Governments, all utility providers, and local tribes. These interested parties often have specific concerns related to major actions that drive the largest proportion of change. Rincon understands that the City will host and lead an interested party interview process without Rincon’s involvement. However, Rincon will incorporate feedback generated from these interviews and provided to Rincon by the city into measures as appropriate.

Task 3.4 Public Hearings (2)
As part of this scope of work, one staff member from the Rincon team will attend and participate in up to two Planning Commission meetings or City Council hearings to review and adopt the Final Climate Strategy. This scope of work assumes that City staff will be responsible for preparing the agenda and staff report. Rincon will provide a draft and final PowerPoint presentation to the City in advance of the meetings and will present the information to the Planning Commission or City Council during the hearing, as well as address questions that come up during a question-and-answer session.

Assumptions
• Rincon will prepare handouts/flyers for each community engagement event included in this scope of work in Word.
• The City is responsible for preparing noticing materials, including social media posts, email blasts, project website updates, mailers, and newsletters, for all engagement. • The City will print materials for all in-person engagement events. • The City will secure the pop-up booth, coordinating directly with the venue and community organizers, and paying applicable fees.
• The City will send invitations, coordinate scheduling, and secure virtual meeting spaces for all interviews.
• One Rincon staff member will attend and present at up to three community workshops and one pop-up event, two Planning Commission meetings or City Council Hearings, and a total of four interviews. • Rincon has budgeted 8 hours for translation of materials (e.g., flyers/handouts and micro-survey) for the community engagement events to be translated into Spanish from English. • Rincon has budgeted approximately 20 hours for the development of up to 3 surveys to be hosted on the City website or provided during public workshops.
• Rincon assumes staff interviews and focus groups will be virtual and 1 hour long and be attended by up to 2 staff.
• Rincon assumes that up to 2 of the 3 public hearings will be in person if required and will be attended by the project manager or principal. Following completion of the workshops Rincon will complete an analysis of and summarize the community feedback to incorporate into Climate Strategy development.

If we host additional events, If the City hosts additional workshops or collects additional community feedback, Rincon can analyze the results and incorporate it into the Climate Strategy on a time and materials basis in accordance with our attached Fee Schedule. • Rincon will incorporate feedback from the interested party meetings, as appropriate.

Deliverables
• Pop up booth materials and staffing for one pop up booth • Materials, surveys, and presentations for up to three Community Workshops, including PowerPoint presentations and exhibits/handouts (2 in person, one virtual) • Attendance and facilitation of up to 4 staff interviews • Attendance at 2 public hearings (one virtual, one in person) • Flyers/handouts for each event, as appropriate, including handouts translated to Spanish

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• Meeting summary outlining comments received for each meeting Task 4 Climate Strategy
Administrative and Public Review Drafts
The Draft Climate Strategy will be complete through an iterative process that is informed by community and stakeholder engagement. The Climate Strategy will provide a creative and innovative roadmap for the City to achieve emission reductions and will include both near-term and long-term emission reduction measures as well as the departments and community partners who will generally be responsible for implementing them.

The Climate Strategy will set KPIs that will help define a successful implementation of the Climate Strategy as well as measure progress over time. Upon completion of the first draft, the document will be provided to City staff for review in Microsoft Word. The City will provide feedback and edits in one consolidated set and the Rincon team will draft a Public Review Draft that reflects edits in response to City comments. City staff will provide one consolidated set of comments on the design of the public review draft. Additional revisions on content will be completed on a time and materials basis, in accordance with our standard fee schedule.

Rincon proposes to create a graphically rich document that includes infographics, photos, and other design elements and will be reader friendly and engaging. Rincon assumes that the document will be completed in Microsoft Word and will not be longer than 50 pages. This document will be supported with technical appendices which will be in Word format. The Public Review Draft will be released to the community for review.

Final Climate Strategy
Following the public review and comment period, the Rincon team will coordinate with City staff to incorporate relevant input into the Final Draft Climate Strategy that will be presented to City Council for final adoption. We anticipate and have budgeted for receipt of up to ten substantive public comment letters and emails. Any additional comments above and beyond will be addressed on a time and materials basis in accordance with our standard fee schedule (attached). We will provide a summary of all outreach efforts and reports conducted as part of this scope of work and provide a clear overview of the existing conditions, baseline report, proposed GHG reduction measures, and simple implementation plan in a table format.

Rincon has completed final climate action planning documents, similar to the Climate Strategy for Dublin, Metropolitan Water District, and Chico and are currently completing one for Pittsburg and Pinole. Rincon will provide an electronic copy of the document, printing or providing hardcopy documents has not been included as part of this workscope. No specific support for staff reports/resolutions have been included in the scope and Rincon assumes this information will come from the above-mentioned memorandums.

Assumptions
• Response to comment of up to ten substantive public comment letters and emails. • The Climate Strategy document will be no longer than 50 pages and completed in Word. • Rincon assumes one round of review on the City draft Strategy, one round of review on the design considerations, and one final round of edits after public review. • All comments on the Draft Climate Strategy will be provided to Rincon in one consolidated set. • No hard copies will be provided.
• Rincon will incorporate feedback from the interested party meetings, as appropriate.

Deliverables
• Draft Climate Strategy, Public Review Draft and Final Climate Strategy will be provided in a Microsoft Word format.

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Task 5 Project Management
In every project Rincon initiates, we endeavor to provide our client with a high-quality product that exceeds expectations, meets identified schedules, and is aligned with all applicable professional standards and regulatory requirements. The major components of our management program that result in high-quality outcomes and help us meet project objectives, budget provisions, and scheduling requirements are described below.

Quality Control and Review Procedures
Rincon takes pride in producing quality work and achieving an exceptional level of client satisfaction. To achieve this, Rincon employs standard project management and quality control methods that include:
written project assignments, monthly project progress meetings, project control using Microsoft® Excel and Microsoft® Project software, peer review of all technical sections, technical editing of all documents, and principal review of all major deliverables. The Project Manager initiates the project by holding a briefing meeting with the consultant team whereby the work scope, expectations, costs, and timing (schedule) are determined. The Project Manager is responsible for the overall quality of the work effort and maintaining the schedule. Typically, this is done on a daily basis, but no less than a weekly basis. Once the work product has been completed by a team member it undergoes peer review by the Project Manager. After corrections, the Principal-in-Charge reviews the final product for quality control before it is provided to our technical editing team for editorial review, and then our administrative staff for publication. As part of the review, documents are checked against the prior established expectations and requirements of the work scope. Documents are also checked for specific formatting and other requirements using a formal Quality Assurance/Quality Control (QA/QC) checklist by the administrative staff used to ensure that the final delivered product meets Healdsburg’s expectations.

Communication and Reporting Procedures
We believe that effective communication and project management is an integral part of a project’s success.

Rincon’s Project Manager, Ryan Gardner, will be responsible for coordinating communication with the City’s Project Manager. We will work closely with Healdsburg for the duration of the project to ensure that progress is carefully tracked, attention is drawn to any difficulties encountered, and the project is conducted in a highly professional manner. We recommend status update phone calls monthly to report on project status.

To facilitate communication among the Rincon team members, we will hold internal biweekly planning and coordination meetings. During these meetings we will discuss work in progress and schedules to ensure the project stays on track.

Cost and Schedule Control
Rincon achieves cost, schedule, and resource control pursuant to a three-step process. First, cost and schedule baselines are established, against which actual cost and schedule performance can subsequently be compared. Second, cost and schedule data are collected and reported on a weekly basis to the project manager. Third, deviations in cost or schedule performance are discussed internally, and if necessary, corrective actions are taken.

Assumptions
• 9-month project timeline
• Check-in meeting attendance is limited to the Rincon Project Manager Deliverables
• Monthly (30-minute) virtual meetings throughout the 9-month project timeline • Monthly status updates and invoices

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Packet Pg. 165 Attachment: Rincon Consultant Scope of Work (3811 : PSA with Rincon Consultants to Support Climate Mobilization Strategy Development) Firm and Team Qualifications
“We had an extremely positive experience with Rincon on Berkeley’s Existing Buildings Electrification Strategy. The team was thoughtful, collaborative, and professional, providing high quality deliverables on time and within budget. They consistently went above and beyond what was expected, bringing technical expertise, skillful project management and excellent graphic design resulting in a great product. They fostered a positive and supportive team culture and were a pleasure to work with.”
- Katie Van Dyke, Chief Resilience Officer Office of Energy & Sustainable Development, City of Berkeley
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Firm and Team Qualifications
This section provides a high-level overview of Rincon and the team that we have prepared to complete this work. Specific team resumes are included in Appendix A and Project Examples are included in Appendix B.

Firm Qualifications
Rincon Consultants, Inc. is a multi-disciplinary environmental science, planning, and engineering consulting firm that provides professional services to both government and industry. Our skilled professionals have many years of experience in climate action, adaptation, and resilience planning, greenhouse gas (GHG) emissions inventorying and analysis, vulnerability assessment, California Environmental Quality Act (CEQA) compliance and streamlining, energy conservation and electrification, green building, and public engagement related to these services. Our approach focuses on well-designed solutions that respond to our clients’ specific needs in a cost-effective manner.

Rincon has extensive experience in climate action and resilience planning as well as implementation and monitoring. We have assisted numerous counties and cities throughout the state with climate action, adaptation, and implementation and have built cutting-edge tools to help jurisdictions track their implementation progress over time. We have also prepared GHG inventories and developed CEQA Guidelines section 15183.5 qualified CAPs and associated CAP/CARP compliance checklists and CEQA GHG thresholds for purposes of CEQA tiering.

We have worked on the ground with developers and contractors to design highly efficient all electric buildings utilizing the newest technology including solar photovoltaic, solar thermal, air and water source heat pumps, and battery storage.

Through our extensive CARP experience, we have gained an understanding of the variety of goals that drive the development of a CARP, such as GHG reduction, local vulnerabilities, CEQA streamlining for future development, grant funding and co-benefits such as improved economy, cleaner air, more resilient communities, and improved health. We work with communities to help guide CARP development to meet the needs of the community and establish measures that are implementable within the local political context.

We look forward to working with San Fernando and the local community to identify a CARP strategy that fits the local perspective and derives equitable benefits for the entire community.

Rincon’s corporate culture focuses on providing environmental consulting services in a manner that is beneficial to both the environment and our client’s needs. We perceive ourselves as an extension of our client’s team and function with their best interests in mind. By managing each project with a focus on three primary objectives – economic efficiency, technical excellence, and sustainable approach – we provide superior service that efficiently and effectively meets the needs of our clients.

The Rincon team knows that fostering a workplace where diversity of thought and opinion, and people who are celebrated will lead to a smarter, more creative, aligned, and socially aware team. These values are built into our project approach by incorporating use of equity guardrails in our planning practice. These values are also carried through our corporate approach where our Diversity, Equity, and Inclusion Committee is working to recruit diverse talent, partner with more diverse business enterprises, and provide high-quality environmental education in the communities in which we live and work. We operate in this capacity because we truly love what we do and want to build the most sustainable future by regularly applying our knowledge and experiences in achieving the highest levels of sustainability in our business operations, as well as our daily lives.

Legal Name:

Rincon Consultants, Inc.

Legal Form:

California “S” Corporation
Founded: 1994
Professional Staff: 400+
California Offices: 12
Core Values: Trusted, Fair,
Transparent, Accountable,
Disciplined, Entrepreneurial

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Team Qualifications
Rincon has a team of more than 400 staff, making us large enough to provide the expertise needed to successfully support our clients plan for and execute meaningful, innovative, and complex projects, yet flexible enough to quickly respond to changes in direction or special challenges that may emerge. Our broad experience in climate action and resilience planning, as well as implementation of the related measures and the advanced experience of key staff in past projects establishes us as particularly well-suited for this project. We have developed policies and ordinances for sustainability measures relating to buildings, energy, water, waste, and transportation as part of our work developing climate strategies and supporting our clients with implementation across California. The Rincon team not only develops plans but also works with our clients to implement those plans to create real change. We have operated our climate service line with the simple idea that we want our work to result in tangible, positive change in the community. Plans and roadmaps that sit on the shelf serve no purpose. Therefore, we set out to tackle the hurdles to successful climate action and resilience planning by working with our clients and their communities, opening communication across City and County departments, and not shying away from complex problems. We work with developers to create all-electric buildings, internally with municipalities like our work with the San Mateo Regional Climate Action Planning Suite program implementing measures and actions, and recently with the City of Berkeley on a first-of-its-kind analysis and plan for citywide electrification. Our unique combination of policy and implementation experience allows us to craft real world solutions to some of California’s most difficult climate-related challenges. The image below demonstrates the breadth of the climate action, adaptation, and resilience work that the Rincon has completed for various jurisdictions throughout the state.

Rincon recognizes the role that climate action planning plays in achieving California’s GHG reduction targets and has made it a priority in our practice. As such, this program will be among the firm’s highest priorities.

Our clients will attest to Rincon’s demonstrated ability to respond on short notice to their needs and our proven track record of innovative and completion of highly complex assignments on time and within budget.

To do so, we have developed web-based tools to analyze key emission sectors, develop emission reduction and resilience measures, determine implementation feasibility, and track of implementation over time. For the Healdsburg Climate Strategy, Rincon has assembled a team of highly skilled environmental science and planning professionals who combine extensive technical qualifications and knowledge of climate action and resilience planning with several years of experience working in the region. Biographies and resumes for key team members are included as Attachment 1.

Climate Action Plans and Greenhouse Gas Inventories
Rincon has prepared Climate Strategies/Plans, Sustainability Plans, and GHG Reduction Scorecards, as well as the associated GHG inventories, for municipalities, special districts, universities, and private clients throughout California. Specifically, our team has prepared over 50 climate action plans (CAP) and GHG Reduction Strategies throughout the state. None of the CAPs prepared by Rincon have been legally challenged. Our team is comprised of California Air Resources Board (CARB) -Accredited Lead Verifiers who specialize in understanding the intersection of emissions across the state. Cumulatively, we have audited approximately 40 percent of the state’s Cap-and-Trade covered GHG emissions annually, giving us unparalleled experience with a wide variety industries and inventory methodologies and a comprehensive understanding of best practices. The figure below shows Rincon’s recent climate action planning experience.

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“It took a unique team to navigate Chico through a controversial update of its Climate Action Plan, especially during COVID-19. The global pandemic posed numerous challenges, including ensuring a sincere and robust public engagement program and working with the City’s newly created Climate Action Commission in a virtual space. Rincon not only met, but exceeded, the City’s expectations. The Rincon Team met all deadlines and always with quality deliverables. I’ve worked with myriad consultants over the past 20 years, and Rincon stands out due to their responsiveness, clear communication, quality writing, focus on problem-solving, and overall professionalism. Bottom line – we’ll be using them again!” - Brendan Vieg, Community Development Director, City of Chico 34 6.K.c
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Example Projects
Below we have included a short list of relevant project examples. Additional project information and client references can be provided upon request.

City of Chico – Climate Action Plan Update
Rincon worked collaboratively with the City of Chico to prepare an Updated CAP that aligns with SB 32 and Executive Order B-55-18. The CAP was developed in close collaboration with the City of Chico, the City’s Climate Action Commission, and other businesses and organizations within the City identified as stakeholders for the CAP. The Rincon team conducted extensive community outreach including an innovative virtual outreach campaign in response to the constraints of the COVID-19 pandemic. The CAP was unanimously adopted by city council with support from the community including developers who were closely engaged regarding building electrification and other innovative initiatives through focus groups.

City of Livermore – Climate Action and Adaptation Plan Update Rincon is currently finalizing a CAP update for the City of Livermore. The updated CAP will provide the basis for prioritizing, budgeting, implementing, and monitoring GHG emission reduction strategies. Rincon’s role is focused on GHG inventory, forecasts, and targets assessment, climate action policy development, GHG emissions reduction analysis, development of GHG implementation tools, and CEQA review of the updated CAP. Rincon has worked closely with the community and key stakeholders such as the Climate Action Plan Advisory Council (CAPAC), two national laboratories, and key underrepresented communities. Livermore has both an agricultural and wine growing history as well as a bustling downtown and the national laboratories.

The CAP process worked to bring these interests together to find opportunities and remove hurdles for implementation.

City of Berkeley – Pathway to Clean Energy Plan
Rincon led a team comprised of the City of Berkeley, Rocky Mountain Institute, and the Ecology Center in developing an implementation plan to electrify 100% of Berkeley’s existing buildings before 2045. This first of its kind project leveraged the recent ban on natural gas in new construction recently passed by City Council. As part of the work scope, the team analyzed the technologies and policies required to electrify the existing building stock as well as the equity impacts of such an undertaking. Rincon developed a suite of equity guardrails in coordination with the community to limit the potential impacts of existing building electrification and help direct benefits to under-invested communities throughout the City. By using the tenants of targeted universalism Rincon and the project team was able to develop a plan that enjoyed unanimous support at city council and with the community.

City of Cupertino – Climate Action Plan
Rincon led the team that assisted the City of Cupertino in updating its Climate Action Plan (CAP). Rincon provided peer review for the GHG inventories and climate change vulnerability assessments already in place, provided adaptation recommendation for integration into the next General Plan Safety Element Update, and prepared new forecasts and a gap analysis through 2045. In order to reach a wide range of stakeholders and aspects of the community, including sensitive community areas, the team found creative ways of encouraging a wider segment of the population to participate in CAP Update visioning, including via provision of a stipend to encourage attendance and participation in related community engagement meeetings.

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4 “It has been such a great pleasure working with the Rincon Team. From the interview to implementation, city staff had the greatest of confidence in their ability to execute and meet our specific needs. We are thrilled at the creation of a Climate Action Plan tool that now helps us track actual emissions reductions associated with implementation measures over time.” - Robyn Eason, City of West Hollywood
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Cost Proposal and Schedule
Cost Proposal
The following table provides a detailed estimated of Rincon’s overall cost for the services outlined in the scope above to complete the City of Healdsburg’s Climate Strategy, listed by task. As shown in Table 1, Rincon proposes to complete the core tasks for a total not to exceed $99,904, without written authorization and approval from Healdsburg. Based on Rincon’s experience with GHG technical analysis and sustainability strategy developments, we believe that our proposed cost estimate to provide the presented scope of work is competitive and provides a high-quality professional product and a unique customer experience.

However, if you have questions or additional needs, please let us know as the proposed scope of services and associated costs are fully negotiable to meet Healdsburg’s needs. Additional work not included within our proposed work program will be completed only upon written authorization in accordance with our standard fee schedule (attached).

Table 1 Cost by Task
Task Estimated Cost
Task 1 Project Kick-off $1,352
Task 2 Measure Development $24,188
Task 2.1 Draft Strategy Selection $7,918
Task 2.2 Scenario-Planning for GHG Reduction Strategies $16,270 Task 3 Outreach and Engagement $39,630
Task 3.1 Engagement Strategy $2,069
Task 3.2 Community Pop-up and Workshops $22,608
Task 3.3 City Staff Interviews $6,706
Task 3.4 Council and Planning Commission Meetings $8,247 Task 4 Climate Strategy $24,266
Task 4.1 Administrative Draft $13,941
Task 4.2 Public Review Draft $5,426
Task 4.3 Final Draft $4,899
Task 5 Project Management $10,468
Total $99,904
Optional Task A Forecasts and Targets $7,709
Optional Task A.1 Forecasts $4,940
Optional Task A.2 Targets $2,769

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Schedule
We anticipate that the project would be complete over a period of approximately 9-months, with a kick-off meeting occurring within two weeks of project authorization. Rincon understands that the City is interested in moving forward quickly on this project and is looking for an action-oriented mobilization strategy that can be realistically implemented by the community. Establishing this plan will require collecting and incorporating community feedback, which we have scheduled throughout the planning process. Our proposed schedule is outlined in the figure below and is flexible to meet the needs of the City if there are alternative timelines of interest.

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Packet Pg. 174 Attachment: Rincon Consultant Scope of Work (3811 : PSA with Rincon Consultants to Support Climate Mobilization Strategy Development)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: November 21, 2022
SUBJECT: Updating the City's Alternate Electric Rate (CARE) pre-approved discounts by adding the Randall Apartments located at 111 Sawmill Circle PREPARED BY: Terry Crowley, Utilities Director
STRATEGIC INITIATIVE(S):

Provide Effective Governance
Provide Resident-Driven Community Services
RECOMMENDED ACTION(S):

Adopt a Resolution amending Resolution No. 137-2001, Resolution No. 16-2016, and Resolution No. 44-2020 to extend the pre-approval of low-income electric discounts to tenants of the Randall Apartments at 111 Sawmill Circle.

COMMUNITY ENGAGEMENT/OUTREACH:

Prior to the regularly scheduled Council meeting no outreach or engagement occurred.

BACKGROUND:

In 1997, the City Council established discounts for low-income residential electric customers.

This discount was designed to parallel what customers of investor-owned utilities such as Pacific Gas and Electric Company (PG&E) received. The discount on energy usage is funded by the City’s Electric Public Benefit Surcharge. This program is sometimes referred to as City’s Alternate Rates for Energy (CARE).

Under Public Utility Code 385 (PUC 385), publicly owned electric utilities collect a surcharge of

2.85% on electric charges and use those funds to benefit electric customers through the form of low-income customer assistance programs and/or energy efficiency programs. To support the low-income residents of Healdsburg, the Electric Public Benefits Charge funds the 25% discount on electric usage. In 2020 the Council increased the income requirements for the electric-utility discount from two times the federal poverty rate (slightly less than 50% the area median income) to 80% of the area median income, or $95,050 for a family of four. Currently, approximately 520 households receive an electric utility discount totaling roughly $74,000 per year.

The discount is administered by City staff and participants must reapply annually verifying that,

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for all persons in their household, their monthly income does not exceed the maximum income guidelines. To lessen the customer’s burden to participate and streamline program administration, certain income-restricted multi-family housing developments are pre-approved to receive the CARE discount. The current list of pre-approved electric discounts for multi-family housing is below.
• Canyon Run Apartments – 51 units under 60% AMI
• Fitch Mt. Terrace I Senior Apartments - 40 units under 50% AMI • Fitch Mt. Terrace II Senior Apartments – 20 units under 50% AMI • Foss Creek Court Apartments – 64 units under 50% AMI
• Harvest Grove Apartments – 44 units under 50% AMI
• Healdsburg Glen Apartments – 25 units under 60% AMI
• Monte Vina Apartments – 23 units under 60% AMI
• Oak Grove Apartments – 81 units under 60% AMI
• Parkland Farms Senior Apartments – 23 units under 50% AMI • Piper Street Apartments – 8 units under 60% AMI
• University Street Apartments – 8 units under 60% AMI
• Victory Apartments – 4 units under 30% AMI
• Victory Studios – 7 units under 30% AMI
DISCUSSION/ANALYSIS:

Soon the affordable housing within the Mill District Project, named the Randall Apartments, will open for the new tenants. The Randall Apartments will provide housing to residents that fit within either 30% of AMI or 50% AMI income limits (shown in the table below). Since these limits are below the City’s current electric discount requirement of 80% AMI all tenants of this complex qualify for the discount. By pre-approving tenants of this complex, each tenant will not be required to re-apply for the discount each year and the administrative effort necessary to collect, review, and approve each application will be eliminated.

Persons in
Household
Extremely Low
Income (30% AMI)
200% Federal
Poverty Rate
Very Low Income
(50% AMI)
Low Income (80%
AMI)
1 $ 25,000.00 $ 27,180.00 $ 41,600.00 $ 66,550.00
2 $ 28,550.00 $ 36,620.00 $ 47,550.00 $ 76,050.00
3 $ 32,100.00 $ 46,060.00 $ 53,500.00 $ 85,550.00
4 $ 35,650.00 $ 55,500.00 $ 59,400.00 $ 95,050.00
5 $ 38,550.00 $ 64,940.00 $ 64,200.00 $ 102,700.00
6 $ 41,400.00 $ 74,380.00 $ 68,950.00 $ 110,300.00
7 $ 44,250.00 $ 83,820.00 $ 73,700.00 $ 117,900.00
8 $ 47,100.00 $ 93,260.00 $ 78,450.00 $ 125,500.00
TABLE 1: Income requirements for the City’s CARE program (200% federal poverty for water, wastewater, and drainage and 80% AMI for electric discounts) alongside income requirements for the Randall Apartments (30% AMI and 50% AMI).

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Staff is proposing that the Council add the Randall Apartment’s 41 affordable units to the preapproved list of income restricted housing. This will allow automatic enrollment for each new tenant while streamlining the administration of the CARE program.

Since the income restrictions of the Randall Apartments exceed 200% of the federal poverty rate, staff is not proposing the pre-approval of utility income discounts for water (15%), wastewater (20%), and storm drainage (20%). This is consistent with other multi-family housing where the income restrictions allow qualification of residents with incomes higher than 200% of the federal poverty rate, and do not meet current income restriction requirements for discounts on water, wastewater, and drainage rates.

ENVIRONMENTAL STEWARDSHIP:

This action does not have a direct or indirect effect on the environment but will help to maintain a minimum standard of living for Healdsburg residents with very low to extremely low incomes.

ALTERNATIVES:

As an alternative Council could choose not to adopt Staff’s recommendation of pre-approving the tenants of the Randall Apartments and provide further direction to staff.

FISCAL IMPACT:

The Electric Public Benefit Surcharge (surcharge) funds the low-income discount and portions of the City’s energy efficiency programs. Each fiscal year the surcharge collects roughly $330,000 of which roughly $74,000 goes to support electric low-income discounts. The Randall Apartment’s 41 units are expected to require an additional $5,500 per year in funding. The current fiscal year budget has adequate appropriations to support Staff’s recommended action.

ENVIRONMENTAL ANALYSIS:

Pursuant to California Environmental Quality Act (“CEQA”) and Title 14, the California Code of Regulations, Section 15378(b)(2), continued administrative actions do not qualify as a “Project”. Therefore, no further CEQA or environmental review is required.

ATTACHMENT(S):

Resolution

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CITY OF HEALDSBURG
RESOLUTION NO. ___ - 2022

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG AMENDING RESOLUTIONS 137-2001, 16-
2016, AND 44-2020 TO EXTEND THE PRE-APPROVAL OF

LOW-INCOME ELECTRIC DISCOUNTS TO TENANTS OF
THE RANDALL APARTMENTS AT 111 SAWMILL CIRCLE
WHEREAS, the City of Healdsburg owns and operates a local publicly owned electric utility; and
WHEREAS, Public Utility Code 385 allows for an Electric Public Benefit Surcharge (Surcharge) to fund low-income assistance programs and energy efficiency programs; and WHEREAS, the City has an establish electric low-income discounts funded by the Surcharge; and
WHEREAS, Resolution No. 44-2020 increased income qualification levels for electric customers from 200% the federal poverty limit to 80% of Sonoma County’s Area Median Income; and
WHEREAS, in 2001, the City Council adopted Resolution No. 137-2001, which preapproved all residential customers residing in the Oak Grove Apartments, Harvest Grove Farm Worker Apartments, Canyon Run Apartments, Parkland Farms Senior Apartments, Fitch Mt.

Terrace I Senior Apartments, and Fitch Mt. Terrace II Senior Apartments; and WHEREAS, in 2016, the City Council adopted Resolution No. 16-2016, which preapproved all residential customers to all residential customers residing in Foss Creek Court Apartments, Victory Apartments and Victory Studios; and WHEREAS, in 2020 the City Council adopted Resolution No. 44-2020, which preapproved all residential customers to all residential customers residing in Healdsburg Glen Apartments, Monte Vina Apartments, Piper Street Apartments, and the University Street Apartments; and
WHEREAS, the Randall Apartments at 111 Sawmill Circle are under construction and are expected to be complete near the end of calendar year 2022; and WHEREAS, the Randall Apartments required tenants to show proof of income at or below 50% AMI for Sonoma County, an income that would qualify for the City’s electric rate discount; and

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Packet Pg. 178 Attachment: Resolution (3814 : Multi-Family Housing Pre-Approval of Electric Discount) Resolution No. ____-2022

WHEREAS, continued administrative actions do not constitute a project under California Environmental Quality Act (“CEQA”) guidelines and are therefore exempt from further environmental review.

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

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

2. Amend Resolution No. 137-2001, Resolution No. 16-2016, and Resolution No. 44-2020 to include residents of the Randall Apartments located at 111 Sawmill Circle.

PASSED, APPROVED AND ADOPTED, this 21st day of November 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. 179 Attachment: Resolution (3814 : Multi-Family Housing Pre-Approval of Electric Discount)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: November 21, 2022
SUBJECT: Authorize the City Manager to enter grant agreements with the State Water Resources Control Board for energy audit at the Water Reclamation Facility
PREPARED BY: Patrick Fuss, Water/Wastewater Engineer
STRATEGIC INITIATIVE(S):

Pursue Initiatives that Promote Environmental Stewardship Maintain and Improve Infrastructure and Facilities
RECOMMENDED ACTION(S):

Adopt a Resolution authorizing the City Manager to prepare and file State Water Resources Control Board grant applications, submit required documents, invoices, and reports required to obtain State Water Resources Control Board energy audit grant, and authorizing the City Manager to execute funding agreements with the State Water Resources Control Board.

COMMUNITY ENGAGEMENT/OUTREACH:

Not applicable.

BACKGROUND:

The City of Healdsburg owns operates and maintains a Water Reclamation Facility (WRF) that is operated under a permit issued by the State Water Resources Control Board. One of the largest expenses in operation of the WRF is power consumption. The WRF consumes roughly 3.3 million kilowatt-hours each year at a cost of roughly $490,000 annually. Reducing power usage would reduce operational costs, helping to minimize future rate increases.

DISCUSSION/ANALYSIS:

The State Water Resources Control Board offers a grant program to fund up to $35,000 for a consultant-prepared energy audit to optimize power consumption at water/wastewater facilities.

The energy audit will evaluate the procedures, processes, and equipment in place at the WRF. As part of the energy audit, a report will be prepared that enumerates the recommended modifications, quantifies the power savings anticipated from these improvements and presents the estimated costs to implement the recommended changes at the Water Reclamation Facility.

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The grant is expected to address approximately half of the cost to conduct the energy audit with the other half funded by the Electric Department’s Cap & Trade proceeds. The proposed action would authorize the City Manager to sign the grant application. If the application is accepted, the proposed action would authorize the City Manager to enter into a grant agreement on behalf of the City. Additionally, if the grant is accepted, Staff will bring to Council for approval the professional services agreement for the consultant conducting the energy audit along with any needed budget amendments.

ENVIRONMENTAL STEWARDSHIP:

Reducing power consumption at the WRF will make more energy available to other electric customers and reduce the need to construct new generation plants. New generation plants required the use of land and construction activities that are a source of GHG emissions. Using energy efficiently helps to lessen GHG emission.

ALTERNATIVES:

Council may elect to not authorize the City Manager sign the grant application or grant agreement documents. If the Council elects to not authorize the City Manager to sign grantrelated documents, Staff requests direction from Council on how to proceed.

FISCAL IMPACT:

If the application is successful, staff intends to engage a consultant to prepare an energy audit, which investigates power usage and power optimization at the WRF. The anticipated cost of the energy audit is $70,000, with $35,000 funded by the grant and $35,000 funded by the Electric Department’s Cap & Trade proceeds. Upon award, a separate council item will be brought forward to approve the professional service agreement and any needed budget amendments.

ENVIRONMENTAL ANALYSIS:

Pursuant to California Environmental Quality Act (“CEQA”) and Title 14, the California Code of Regulations Section 15378(b)(2), the recommended action is administrative in nature and does not qualify as a “Project” under CEQA. Therefore, no further CEQA or environmental review is required.

ATTACHMENT(S):

Resolution

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CITY OF HEALDSBURG
RESOLUTION NO. _________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG AUTHORIZING THE CITY MANAGER TO

PREPARE AND FILE A STATE WATER RESOURCES

CONTROL BOARD GRANT APPLICATION, SUBMIT

REQUIRED DOCUMENTS, INVOICES, AND REPORTS

REQUIRED TO OBTAIN STATE WATER RESOURCES

CONTROL BOARD ENERGY AUDIT GRANT, AND

AUTHORIZING THE CITY MANAGER TO EXECUTE

FUNDING AGREEMENTS WITH THE STATE WATER

RESOURCE CONTROL BOARD
WHEREAS, the City of Healdsburg owns, maintains, and operates a Water Reclamation Facility (WRF) to treat sanitary sewage generated within the City; and WHEREAS, power consumption is the largest operational cost at the WRF totaling roughly $490,000 annually; and
WHEREAS, optimizing power consumption at the WRF could reduce operational expenses and lessen future rate increases; and
WHEREAS, the State Water Resources Control Board offers a grant of up to $35,000 to conduct an energy audit of facilities such as the WRF; and WHEREAS, the energy audit will identify the recommended modifications to procedures, processes, and equipment to optimize power usage; and
WHEREAS, the energy audit will quantify the anticipated power reduction and estimated costs of the power-reducing measures for CIP planning; and WHEREAS the City of Healdsburg has the legal authority and is authorized to enter into a funding agreement with the State of California; and
WHEREAS the City of Healdsburg intends to apply for grant funding from the California Water Resources Control Board for the energy audit; and WHEREAS, pursuant to California Environmental Quality Act, the recommended action is administrative in nature and does not qualify as a “Project” under CEQA requiring further CEQA or environmental review.

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Packet Pg. 182 Attachment: Resolution (3815 : Authorization for Energy Audit Grant) Resolution No. -2022

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

1. Authorize the City Manager or designee to execute funding agreements with the State Water Resources Control Board and any amendments thereto.

2. Authorize and direct the City Manager or designee to submit any required documents, invoices, and reports required to obtain grant funding.

PASSED, APPROVED, AND ADOPTED this 21st day of November 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. 183 Attachment: Resolution (3815 : Authorization for Energy Audit Grant)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: November 21, 2022
SUBJECT: Approve of a professional service agreement with EES Consulting to develop a cost of service and rate structure for the Electric department PREPARED BY: Terry Crowley, Utilities Director
STRATEGIC INITIATIVE(S):

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

Approve a Professional Services Agreement with EES Consulting to develop an electric cost of service study and proposed rate structure for an amount not to exceed $38,560 and authorizing the City Manager to approve change orders up to 15% of the original fee proposal.

COMMUNITY ENGAGEMENT/OUTREACH:

No outreach was performed for this item.

BACKGROUND:

The City of Healdsburg owns and operates an electric utility for the benefit of the community.

To provide electric service the City incurs costs and recovers these costs through electric rates.

To establish electric rates, a detailed cost of service study is performed periodically to identify these costs, how they are created, and what proportion each customer shares in these costs.

The City’s last electric rate increase was in October 2018. While costs to provide electric services remained relatively flat prior to 2020, the City’s cost to provide electric service have increased substantially in the past 12-months. Recent cost increases include generation (market energy), transmission services, electric equipment, internal shared services, and others. The table below identifies a few specific areas and cost increases seen since 2020.

Cost Description 2020 Costs 2022 Costs Percent Increase Generation $ 4,759,500 $ 5,388,916 13%
Transmission $ 1,942,597 $ 2,184,861 12%
High-voltage cable ($/foot) $ 6.29 $ 10.69 70%
Transformer ($/kVA) $ 50.74 $ 99.13 95%

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Table 1: Demonstration of cost increase facing electric utilities. Costs shown are actual costs incurred by the City of Healdsburg for competitively bid items.

Healdsburg’s current rates are very favorable to Healdsburg residents and businesses. The Healdsburg community collectively saves an estimated $11.6 million dollars annually by owning and operating an electric utility. The graph below illustrates monthly savings for the average residential customer. Energy costs for Healdsburg electric customers are nearly half the cost of PG&E or Sonoma Clean Power (SCP) customers.

To sustain the City’s electric utility and continue to bring value to the community, reoccurring review of the City’s cost to provide electric services is necessary. Due to inflationary pressures and demonstrated increases in wholesale energy, transmission, and electric equipment it is necessary to review these costs and recommend rate adjustments.

DISCUSSION/ANALYSIS:

City staff released a request for proposals to obtain a qualified consultant for the development of an Electric Cost of Service and Rate Study. Two proposals were received on November 3, 2022.

Staff’s ranking of the two proposals selected EES Consulting (EES) as the most qualified firm based upon qualifications and proposed fee. EES has completed several electric cost-of-service studies including studies for other California publicly owned electric utilities.

EES’s proposed scope of work includes categorizing the City’s cost and spreading those costs proportionally to electric customers based upon customer usage patterns. The costs included in the study will focus on current energy procurement and operational costs but also consider funding future capital projects such as undergrounding powerlines in wildfire areas and replacement of aging assets. As a final deliverable, the consultant will present a summary of the final cost-of-service study and proposed rate structures to the City Council.

Over the past several years the structures and laws for net energy metering (NEM) of solar

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customers have changed. While the rates and rate structures for PG&E are set by the California Public Utility Commission (CPUC), the City’s methods for recovery of costs are largely governed by Proposition 26 and the Public Utility Code (PUC). New laws for net metering of solar customers will require changes to the City’s current NEM rate structure and compensation rates.

If approved by Council, EES will work with City staff to develop a ten-year financial forecast and a proposed four-year electric rate structure. The ten-year forecast will define future costs and electric rates sufficient to recover those costs. Consideration for the ten-year forecast will include market energy costs, cost of new renewable energy projects, escalation of transmission service costs, equipment costs and others to with consideration for potential increase customer usage.

This forecast will help the City prepare for these costs and develop appropriate electric rates to maintain the service.

ENVIRONMENTAL STEWARDSHIP:

Supporting the financial health of the City’s electric utility results in a stable and dependable electric grid. As the City transition away from natural gas as a fuel source, a safe, reliable, and financially sound electric utility will be critical to supporting this transition.

ALTERNATIVES:

As an alternative Council could choose not to award the professional services agreement (PSA) to EES and provide further direction. Staff does not recommend this alternative as a cost-ofservice study is needed and EES is well-qualified to complete this task for the City.

FISCAL IMPACT:

EES fee proposal is for $38,560 plus expenses related to travel. Staff is recommending Council award the contract plus delegate authority to the city manager to approve additional work up to 15 percent ($5,784) of the original fee proposal. The fiscal year 2022-23 adopted budget included sufficient appropriations for the proposed study in the electric operations fund.

The cost-of-service study will result in a recommendation to adopt new electric rate structures to address inflationary pressures and sustain the financial health of the City’s electric department.

At this time, it is not known the impact of those future rate increases, but the intent of the study is to phase those increases over a four-year period.

ENVIRONMENTAL ANALYSIS:

Pursuant to California Environmental Quality Act and Title 14, the California Code of Regulations (“CEQA Guidelines”), Section 15378(b)(2), continued administrative actions do not qualify as a “Project”. Therefore, no further CEQA or environmental review is required.

ATTACHMENT(S):

Resolution

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CITY OF HEALDSBURG
RESOLUTION NO. -2022

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG APPROVING A PROFESSIONAL SERVICES

AGREEMENT WITH EES CONSULTING TO DEVELOP AN

ELECTRIC COST OF SERVICE STUDY AND PROPOSED

RATE STRUCTURE FOR AN AMOUNT NOT TO EXCEED
$38,560, AND AUTHORIZING THE CITY MANAGER TO
APPROVE CHANGE ORDERS UP TO 15% OF THE ORIGINAL

FEE PROPOSAL
WHEREAS, the City owns and operates and electric utility for the benefit of the Healdsburg community; and
WHEREAS, on a routine basis the City needs to perform cost-of-service study to assure current and future costs are properly being recovered; and WHEREAS, City staff issued a request for proposals to develop a cost of service study and received two responses on November 3, 2022; and
WHEREAS, staff’s review of the two responses found EES Consulting to be the higher ranked proposal based upon qualifications and fee; and
WHEREAS, the scope of services will include categorizing the City’s cost to provide electric service, forecasting future capital replacement costs and a review of current laws impacting the allowed methods to recover those costs; and
WHEREAS, the final cost-of-service study will include a recommended rate structure to address inflationary costs and future capital costs; and WHEREAS, Pursuant to California Environmental Quality Act and Title 14, the California Code of Regulations (“CEQA Guidelines”), Section 15378(b)(2), continued administrative actions do not qualify as a “Project”.

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

1. Find that Pursuant to California Environmental Quality Act and Title 14, the California Code of Regulations (“CEQA Guidelines”), Section 15378(b)(2), continued administrative actions do not qualify as a “Project”.

2. Approve a Professional Services Agreement with EES Consulting for the development of an electric cost-of-service and rate study.

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Packet Pg. 187 Attachment: Resolution (3808 : PSA for Electric Rate Study) Resolution No. – 2022

3. Authorize the City Manager to execute a Professional Services Agreement with EES Consulting for the amount of $38,560 and authorize the City Manager to approve project change orders up to 15% of the original fee proposal.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Healdsburg, this 21st day of November 2022, by the following vote:

AYES: Councilmembers: ( )
NOES: Councilmembers: ( )
ABSENT: Councilmembers: ( )
ABSTAINING: Councilmembers: ( )
SO ORDERED: ATTEST:
_________________________________ _________________________________ Osvaldo Jimenez, Mayor Raina Allan, City Clerk

6.N.a
Packet Pg. 188 Attachment: Resolution (3808 : PSA for Electric Rate Study)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: November 21, 2022
SUBJECT: Appointment of Senior Citizen Advisory Commissioner PREPARED BY: Raina Allan, City Clerk
STRATEGIC INITIATIVE(S):

Provide Resident-Driven Community Services
RECOMMENDED ACTION(S):

By motion, appoint Linda Go to the Senior Citizen Advisory Commission for a term of two years and two months due to expire January 1, 2025.

COMMUNITY ENGAGEMENT/OUTREACH:

A notice of vacancies for the Senior Citizen Advisory Commission (SCAC) was advertised in the Press Democrat for seven weeks, posted on the City of Healdsburg website and social media channels as well as posted as the Healdsburg Senior Center.

BACKGROUND:

In early August a position on the SCAC was vacated by a former Commissioner and then in early September, an additional Commissioner resigned their seat as they were moving out of Healdsburg. The Clerk’s Office has been actively recruiting for these two openings since the vacancies occurred.

DISCUSSION/ANALYSIS:

After the deadline closed in October, staff received an application from Linda Go. Staff has reviewed the application and recommends appointing Linda Go to the Commission for a term of two years, due to expire January 1, 2025.

ENVIRONMENTAL STEWARDSHIP:

Not Applicable.

ALTERNATIVES:

Council may choose not to appoint Linda to the Commission and appoint a subcommittee to interview her or provide alternative direction to staff.

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FISCAL IMPACT:

There is no fiscal impact related to the proposed action.

ENVIRONMENTAL ANALYSIS:

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

ATTACHMENT(S):

Commission Application

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Packet Pg. 191 Attachment: Commission Application (3816 : Senior Citizen Advisory Commission Appointment)

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Packet Pg. 192 Attachment: Commission Application (3816 : Senior Citizen Advisory Commission Appointment)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: November 21, 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

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Packet Pg. 195 Attachment: Resolution (3812 : Resolution authorizing remote meetings) Resolution No. -2022

Legislative Bodies. Based on the California Governor’s continued declaration of a State of Emergency and the Sonoma County Public Health Officer’s recommendation to continue teleconferencing or social distancing during public meetings, the City Council finds that the conditions continue to exist pursuant to Government Code section 54953(e)(3) to allow Legislative Bodies to use teleconferencing to hold public meetings in accordance with Government Code section 54953(e)(2) to ensure members of the public have continued access to safely observe and participate in local government meetings.

2. Authorize Legislative Bodies to Conduct Teleconference Meetings. The Legislative Bodies are hereby authorized to take all actions necessary to carry out the intent and purpose of this Resolution, including conducting open and public meetings in accordance with Government Code section 54953(e)(2) and other applicable provisions of the Brown Act.

3. Authorize Legislative Bodies to Conduct Hybrid Meetings. The Legislative Bodies are hereby authorized to conduct meetings in a “hybrid” format, whereby members of the Body and members of the public may elect to be present in person, utilizing appropriate safety procedures, or participate by teleconferencing technology. Such meetings of the Legislative Bodies that occur using teleconferencing technology will provide an opportunity for any and all members of the public who wish to address Legislative Bodies to do so, and will otherwise occur in a manner that protects the statutory and constitutional rights of members of the public attending the meeting via teleconferencing. In-person meetings will be held consistent with the protocols described in Exhibit A to this Resolution.

PASSED and ADOPTED by the City Council of the City of Healdsburg, County of Sonoma, State of California, this 21st day of November 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. 196 Attachment: Resolution (3812 : Resolution authorizing remote meetings)

PUBLIC MEETING COVID-19 PROTOCOLS

FOR THE CITY OF HEALDSBURG
SCOPE: These protocols shall apply to all public meetings held in the Council Chamber located at Healdsburg City Hall, 401 Grove Street, Healdsburg, California, by the City Council and by any and all boards, committees and commissions created and/or appointed by the City Council.

APPLICABILITY: These protocols shall apply to all participants, including members of the public, elected officials, appointed members of all boards, committees and commissions, city staff, consultants, applicants, contractors, and any other person or individual attending or participating in a public meeting in the Council Chamber.

In addition to these protocols, the City of Healdsburg will follow all laws, regulations, policies, and orders from all relevant public agencies, including the Center for Disease Control, California Department of Public Health, CalOSHA, and the Sonoma County Public Health Officer.

PURPOSE: The City intends to implement a hybrid public meeting format to allow all participants of a public meeting in the Council Chamber to participate either in-person or remotely via teleconference in a manner consistent with provisions of the Ralph M. Brown Act. Due to the fact that all participants of a public meeting that choose to participate in-person in the Council Chamber will therefore be in a confined indoor space and, the period of confinement will more likely than not be longer than 15 minutes, the City is adopting these protocols to protect the public health, safety and general welfare and thereby limit the potential risks associated with COVID-19.

COMMITMENT TO PUBLIC PARTICIPATION: None of the protocols established herein are intended to limit public participation by participants of a public meeting in the Council Chamber in any way; indeed, the intent is to protect the statutory and constitutional rights of participants appearing before the legislative bodies of the City of Healdsburg, while protecting the public health, safety and general welfare. Any participant of a public meeting that desires to participate in-person in the Council Chamber that is unable or unwilling to comply with the inperson attendance protocol outlined below, or otherwise chooses not to participate in-person in a public meeting in the Council Chamber, will have the right and ability to participate in a public meeting in the Council Chamber remotely via teleconference in a manner consistent with provisions of the Ralph M. Brown Act.

IN-PERSON ATTENDANCE PROTOCOL:

1. Social Distancing and Occupancy Limits: The occupancy limit in the Council Chamber will be reduced by at least 50%.
a. Due to limited capacity, participants who indicate they are only interested in a specific item may be asked to wait outside the Council Chamber until their item is called on the agenda.
b. City staff will monitor occupancy within the Council Chamber to ensure proper social distancing is maintained. All participants of a public meeting permitted entry into the Council Chamber shall obey all directions from City staff provided to ensure proper social distancing is maintained. Any participant of a public meeting permitted entry into the Council Chamber who fails or refuses to obey the directions

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Packet Pg. 197 Attachment: Public Meeting COVID-19 Protocols for the City of Healdsburg (3812 : Resolution authorizing remote meetings)

from City staff provided to ensure social distancing, following one or more warning(s) from an appropriate City official, shall leave the Council Chamber upon instruction from an appropriate City official.
c. City staff and outside consultants to the City will, as appropriate or directed by the City Manager, participate in the public meeting remotely via teleconference.

2. Enforcement: In the event a participant of a public meeting in the Council Chamber refuses or fails to obey a decision, direction or instruction of an appropriate City official issued pursuant to these In-Person Attendance Protocols, the Chief of Police, or his or her designee, may in his or her discretion, or at the direction of the City Manager or the Presiding Officer of the public meeting, take appropriate and reasonable steps to enforce the decision, direction or instruction of the appropriate City official and/or remove the offending participant from the Council Chamber. Additionally, the Presiding Officer of the public meeting may, in his or her discretion, suspend and adjourn the public meeting and/or clear the Council Chamber of all participants in the event of a disturbance and/or disruption to the public meeting, and thereafter reconvene the public meeting once the matter is resolved.

CLEANING PROTOCOL: The Council Chamber shall be professionally cleaned after each public meeting. City staff will additionally use an electrostatic cleaner to disinfect the Council Chamber after each use.

AIR FILTRATION: Air control settings in the Council Chamber will be adjusted to allow for maximum fresh air flow during public meetings. When conditions allow, doors may be left open to facilitate additional fresh air circulation.

DISTRIBUTION OF PROTOCOLS TO PARTICIPANTS: A copy of these protocols shall be published and posted on the City’s website and shall be made available at the entry to the Council Chamber for distribution to all participants of a public meeting seeking to gain entry to the Council Chamber.

CHANGES TO PROTOCOL: The City Council may, from time to time, amend, modify, suspend and/or terminate and repeal all or any portion of these protocols as it may determine to be appropriate and necessary in consideration of changes in conditions or the need to protect the statutory and constitutional rights of participants appearing before the legislative bodies of the City of Healdsburg, while protecting the public health, safety and general welfare.

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Packet Pg. 198 Attachment: Public Meeting COVID-19 Protocols for the City of Healdsburg (3812 : Resolution authorizing remote meetings)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: November 21, 2022
SUBJECT: Community Services Request for Road Closure on December 2, 2022 for Merry Healdsburg
PREPARED BY: Matt Milde, Recreation Supervisor
STRATEGIC INITIATIVE(S):

Maintain and Improve Infrastructure and Facilities
Maintain and Enhance Public Health and Safety
Provide Resident-Driven Community Services
RECOMMENDED ACTION(S):

By motion, approve the Community Services Department's request to implement road closures on Plaza Street for the proposed Merry Healdsburg event on December 2, 2022.

COMMUNITY ENGAGEMENT/OUTREACH:

Event organizers have notified all businesses within the vicinity of the proposed closure. City staff will remove the proposed closure as soon as it is safe to do so, to minimize the impact to traffic and any surrounding businesses.

BACKGROUND:

The Healdsburg Community Services Department, in partnership with the Healdsburg Chamber of Commerce, is proposing a road closure on Plaza Street on December 2, 2022 for the second Merry Healdsburg holiday celebration. City staff in the Police, Fire, and Public Works Departments have reviewed and conditionally approved the proposed closure and event logistics.

City Council approval is needed for the proposed road closure request.

DISCUSSION/ANALYSIS:

The Merry Healdsburg is a community holiday celebration and tree lighting event held in the Healdsburg Plaza. The Community Services Department is working in partnership with the Healdsburg Chamber of Commerce as a co-host of the event. The logistics will remain the same as previous years.

The Community Services Department, in partnership with the Healdsburg Chamber of Commerce, is requesting City Council approve the following road closure from 3:00 p.m. –

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11:00 p.m. on December 2, 2022. The proposed closure of Plaza Street, between Center Street and Healdsburg Avenue, is needed to provide adequate spacing for event participants, food vendors, and other event elements.

The following precautionary measures will ensure a safe and enjoyable event for participants:
• City staff including Police Department staff will be on duty to work the event. • The City will follow all COVID-19 safety guidelines issued by the California Department of Public Health and Sonoma County Health Department at the time the event takes place.

Currently there are no restrictions for outdoor events, but organizers will encourage mask wearing and distancing when appropriate.
• Barricades with signage will be placed on Healdsburg Avenue and Center Street to delineate to the road closure perimeter.
• City staff will supply, set up, and remove the traffic control items (signs, barricades, traffic cones, vehicle blockades) for the closure.

ENVIRONMENTAL STEWARDSHIP:

The event is in the downtown corridor, accessible by transit, bicycle, and walking. Bike parking will be included to promote biking or waking to the start area as an alternative to driving.

Recology will provide trash, recycling, and compost receptacles with an emphasis on minimizing any unnecessary waste.

ALTERNATIVE:

Deny road closure request. All activities would be limited to Plaza Park and the adjacent parking stalls. Attendance may exceed the occupancy load for the Plaza and attendees could overflow onto the surrounding sidewalks and streets and increase the likelihood of an unsafe vehicular and pedestrian interface.

FISCAL IMPACT:

Staffing and associated event costs were included in the adopted budget for Community Services.

ENVIRONMENTAL ANALYSIS:

The project is categorically exempt pursuant to California Environmental Quality Act (“CEQA”) Guidelines Sections 15304 Class 4(e) Minor Alterations to Land, and 15061(b), based on findings contained in the CEQA Guidelines that the project is “A minor temporary use of land having negligible or permanent effects on the environment including carnivals, sales of Christmas trees, etc.”

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CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: November 21, 2022
SUBJECT: Housing Element Work Group, Work Plan
PREPARED BY: Stephen Sotomayor, Housing Director
STRATEGIC INITIATIVE(S):

Expand Affordable Housing Opportunities
Provide Effective Governance
RECOMMENDED ACTION(S):

Adopt a Resolution approving the Housing Element Work Group's work plan for continued study related to housing in Healdsburg.

COMMUNITY ENGAGEMENT/OUTREACH:

The Housing Element Work Group was established by the City Council in a public meeting and has held public meetings on the Housing Element Update. The proposed workplan for Council consideration will be implemented in a manner that will expand opportunities for more public participation in both the Housing Element Update as well as on local housing policy issues.

BACKGROUND:

The Healdsburg 2030 General Plan provides a comprehensive long-range plan used to inform and guide decision-making by residents, property owners, business interests, and elected and appointed City officials principally regarding the public and private land use and development that shapes Healdsburg’s physical environment.

The City’s current Housing Element, which is the 5th Cycle Housing Element, is set to expire on January 15, 2023. As part of Housing Element law, the City is required to adopt a new Housing Element for the 6th Cycle which will cover a planning period of January 31, 2023, through January 31, 2031.

Since housing issues affect the entire community, public participation in the Housing Element development process is a critical component in ensuring that residents, employers, and the public and private sectors have an opportunity to engage in a dialogue to identify problems and create solutions to the housing needs in a community. Moreover, Government Code 65583(c)(7)

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requires that: “the local government(s) shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the Housing Element…” On June 7, 2021, the City Council provided direction to staff to create an application process to seek members for the Housing Element Work Group (HEWG). The intent of the HEWG is to provide the City with input in the development of the 6th Cycle Housing Element from a broad and diverse group of community members.

The HEWG has made substantial progress on the City’s General Plan Housing Element Update, which is scheduled to be submitted to the State of California for an initial review this fall. During the development of the Housing Element, the HEWG identified several complex housing related issues which are beyond the scope of the Housing Element Update. These issues require further study and merit recommendations to the City Council.

On June 6, 2022, staff, its consultants, and the HEWG updated the City Council on the progress made so far on the City’s Housing Element Update and presented a tentative plan on addressing additional housing related issues that are unique to Healdsburg and merit further study. These areas not only complement the work of the Housing Element Update, but they will also provide the City Council with community-informed recommendations on complex housing policy issues.

Since that meeting, the HEWG has refined the work plan to incorporate feedback and is seeking Council approval and direction on continuing this work.

DISCUSSION/ANALYSIS:

Staff recommends that the City Council adopt a resolution that will modify the scope of work for the HEWG by adopting the HEWG’s recommended work plan on areas of additional focus.

Should the Council adopt this plan, the HEWG would be tasked with carrying out the continued work in conjunction with the work required to complete the 6th Cycle Housing Element.

Proposed Work Plan
Downtown Housing Development Capacity Study
Increasing housing density in a thoughtful and effective manner is a process that merits a planned approach that can demonstrate value to the community. While the City does not need to rezone properties to meet its 6th Cycle RHNA obligations, the future production of housing is more likely to be dependent on zoning that can accommodate greater capacity. This study proposes to:
• Evaluate existing codes, regulations, and laws to identify barriers to, and opportunities for, increased housing capacity within Downtown Healdsburg. • Create an opportunity for community evaluation of possible General Plan and Land Use Code revisions, including real-world examples of how projects at various density levels would fit within the existing built environment.
• Provide a report to the City Council with recommendations on increasing density and on infill housing strategies.

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Identifying Strategies to Achieve “Middle Income Housing” and Homeownership Opportunities
The ability for middle income individuals and families to live and work in Healdsburg has become more challenging. The City experienced unprecedented increases in the cost of housing due to multiple factors over the past several years. Regardless of the cause, the City’s housing stock that is available to those that make too much to qualify for subsidized housing but don’t make enough to afford market rate units is very limited. Staff recommend the HEWG further study and make recommendations on this policy area to include:
• Quantifying the need for middle-income housing and the demand for this product. • Making recommendations on how to implement the City’s Measure P units more effectively.
• Making recommendations on programs to fund middle income units. • Exploring pathways to homeownership across all income levels.

Assessment of the Impacts of the City of Healdsburg’s Growth Management Ordinance (GMO)
The City’s voter-initiated GMO limits market-rate housing production in the City of Healdsburg.

The GMO influences the natural supply and demand economic drivers that generally keep a housing pipeline moving in a community. The GMO also impacts the ability to develop mixedincome communities that could support homeownership products. Unless amended or repealed by the voters, the GMO is a reality that our housing market faces. Over the years the GMO has been amended to allow for affordable housing and middle-income products, however, these amendments have not resulted in the housing production necessary to offset rising housing scarcity and increased sales prices. The HEWG proposes to:
• Evaluate the impacts of the GMO on current and future housing production goals. • Make recommendations on strategies that would provide the City with the ability to increase workforce housing.

Recommendations on policies and programs to assess second homes, vacant homes, and underutilized properties.

With limited housing stock in the City of Healdsburg, the impact of second homes and vacant homes has become a natural talking point around housing production and local needs. While the City has in place measures to limit vacation rentals, the larger issue remains: how can a destination City such as Healdsburg mitigate the impacts of underutilized properties when there is such a high demand for housing for those that work in Healdsburg and want to live here? Staff recommend the HEWG work to:
• Quantify the number of second homes and underutilized properties and analyze the effect of these properties on the City’s available housing stock. • Evaluate programs other similar cities have implemented to address this issue and evaluate potential policy options and programs that could mitigate this factor, if needed. • Make recommendations on potential policies to address second and vacant homes for consideration by the City Council.

Recommendations on expanding housing funding sources, data collection, and policies.

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In 2020, the City Council received a report on affordable housing funding recommendations.

With a new Housing Element in progress, it is recommended that these new policies, programs, and goals have identified funding strategies. Staff recommend the HEWG work to update the City’s existing affordable housing master plan with the goals of:
• Making recommendations on funding programs such as affordable homeownership programs.
• Making recommendations on new funding sources for new construction, acquisition/rehabilitation, and preservation of affordable housing. • Developing a land-banking strategy for future housing development. • Quantifying housing needs for special populations and income. • Recommending housing production goals beyond the RHNA goals identified in the Housing Element.
• Increasing energy efficiency to lower the cost of homeownership. • Reviewing the City’s Pro-Housing application.

These five areas of focus provide a scope of work that will expand upon the work already done as a part of the Housing Element Update and provide the Council with community-informed recommendations on some of the most challenging policy areas related to the growth of our City and the ability for residents at all income levels to access housing.

Staff is recommending that the existing members of the HEWG be charged with managing this process in conjunction with City Staff and its selected consultants. It is the intent of the HEWG to host these meetings in a public forum in which broader input can be solicited. The HEWG would create a core working group of members that would take on the responsibility of seeing this process through completion.

Should Council approve this action, the HEWG will provide the City Council with a final report and recommendations for consideration. Staff will retain the necessary consultants and resources to accomplish this task. If Council approves this action, the HEWG will refine the timeline based upon identified consultant needs.

ENVIRONMENTAL STEWARDSHIP:

This report and staff’s recommendations to the City Council do not have a direct correlation to environmental stewardship.

ALTERNATIVES:

The Council could choose to modify or reject the recommendation.

FISCAL IMPACT:

Funding for this work was included in both the Community Development Department and Housing Department FY 22-23 budgets and additional funds are not expected to be needed at this time.

ENVIRONMENTAL ANALYSIS:

This action does not qualify as a project pursuant to the California Environmental Quality Act (“CEQA”) Guidelines Section 15378(b)(5) that states that organizational or administrative

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activities of governments that will not result in direct or indirect physical changes in the environment are not projects. Pursuant to CEQA Guidelines Section 15060(c)(3) any activity that is not a project is not subject to environmental review under CEQA.

ATTACHMENT(S):

Resolution

EXHIBIT A

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CITY OF HEALDSBURG
RESOLUTION NO. __-2022

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG EXPANDING THE SCOPE OF WORK OF THE

HOUSING ELEMENT WORK GROUP
WHEREAS, the Healdsburg 2030 General Plan provides a comprehensive long-range plan used to inform and guide decision-making by residents, property owners, business interests, and elected and appointed City officials principally regarding the public and private land use and development that shapes Healdsburg’s physical environment; and WHEREAS, State law requires that the Housing Element of the General Plan be updated every 8 years; and
WHEREAS, a comprehensive revision of the General Plan Housing Element was adopted by the City Council on November 17, 2014, and certified by the State on January 8, 2015; and WHEREAS, the City’s current Housing Element, which is the 5th Cycle Housing Element, is set to expire on January 15, 2023, and as part of Housing Element Law, the City is required to adopt a new Housing Element for the 6th Cycle which will cover a planning period of January 31, 2023, through January 31, 2031; and
WHEREAS, housing issues affect the entire community and public participation in the Housing Element development process is a critical component in ensuring residents, employers, and the public and private sectors have an opportunity to engage in a dialogue to identify problems and create solutions to the housing needs in a community; and WHEREAS, Government Code 65583(c)(7) requires that: “the local government(s) shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the Housing Element;” and
WHEREAS, on June 7th, 2021, the City Council provided direction to staff to create an application process to seek members for an advisory group to provide input on the development of the City’s General Plan Housing Element named the Housing Element Work Group (HEWG) and formed a subcommittee of the Council to review applications and recommend appointments to the HEWG; and
WHEREAS, the HEWG has been formed and has made substantial progress on the City’s General Plan Housing Element Update and desires to expand their scope of work to further study housing policy areas that are unique to the City of Healdsburg with the intent of making recommendations to the City Council; and
WHEREAS, the City Council desires the HEWG to continue this work through its existing membership, approves the workplan of the HEWG, and desires the HEWG to present its findings to the City Council in the form of a report.

8.A.a
Packet Pg. 206 Attachment: Resolution [Revision 1] (3768 : Housing Element Work Group Work Plan) Resolution No. -2022

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

1. Expands the scope of work for the Housing Element Workgroup as attached in Exhibit A of this Resolution;

2. Directs staff to implement this workplan and to support the HEWG in developing their final report to the City Council.

PASSED, APPROVED AND ADOPTED this 21st day of November 2022, by the following vote:

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

8.A.a
Packet Pg. 207 Attachment: Resolution [Revision 1] (3768 : Housing Element Work Group Work Plan)

EXHIBIT A
Proposed Work Plan
Downtown Housing Development Capacity Study
Increasing housing density in a thoughtful and effective manner is a process that merits a planned approach that can demonstrate value to the community. While the City does not need to rezone properties to meet its 6th Cycle RHNA, the future production of housing is more likely to be dependent on zoning that can accommodate greater capacity. This study proposes to:
• Evaluate existing codes, legislation, and law to identify barriers to, and opportunities for, increased housing capacity within Downtown Healdsburg.
• Create an opportunity for community evaluation of possible General Plan and Land Use Code revisions, including real-world examples of how projects at various density levels would fit within the existing built environment.
• Provide a report to the City Council with recommendations on increasing density and on infill housing strategies.

Identifying Strategies to Achieve “Middle Income Housing” and Homeownership Opportunities
The ability for middle income individuals and families to live and work in Healdsburg has become more challenging. The City experienced unprecedented increases in the cost of housing due to multiple factors over the past several years. Regardless of the cause, the City’s housing stock that is available to those that make too much to qualify for subsidized housing but don’t make enough to afford market rate units is very limited. The HEWG proposes to further study and make recommendations on this policy area to include:
• Quantifying the need for middle-income housing and the demand for this product. • Making recommendations on how to implement the City’s Measure P units more effectively.
• Making recommendations on programs to fund middle income units. • Exploring pathways to homeownership across all income levels.

Assessment of the City of Healdsburg’s Growth Management Ordinance (GMO) The City’s voter-initiated GMO limits market-rate housing production in the City of Healdsburg.

The GMO influences the natural supply and demand economic drivers that generally keep a housing pipeline moving in a community. The GMO also limits the ability to develop mixedincome communities that could support homeownership products. Unless amended or repealed by the voters, the GMO is a reality that our housing market faces. Over the years the GMO has been amended to allow for affordable housing and middle-income products, however, these amendments have not resulted in the housing production necessary to offset rising housing scarcity and increased sales prices. The HEWG proposes to:

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Packet Pg. 208 Attachment: EXHIBIT A (3768 : Housing Element Work Group Work Plan) • Evaluate the impacts of the GMO on current and future housing production goals. • Make recommendations on strategies that would provide the City with the ability to increase workforce housing.

Recommendations on policies and programs to address second homes, vacant homes, and underutilized properties.

With limited housing stock in the City of Healdsburg, the impact of second homes and vacant homes has become a natural talking point around housing production and local needs. While the City has in place measures to limit vacation rentals, the larger issue remains: how can a destination City such as Healdsburg mitigate the impacts of underutilized properties when there is such a high demand for housing for those that work in Healdsburg and want to live here? The HEWG proposes to:
• Quantify the number of second homes and underutilized properties and analyze the effect of these properties on the City’s available housing stock. • Evaluate programs other similar cities have implemented to address this issue and evaluate potential policy options and programs that could mitigate this factor, if needed. • Make recommendations on potential policies to address second and vacant homes for consideration by the City Council.

Recommendations on expanding housing funding sources
In 2020, the City Council received a report on affordable housing funding recommendations. With a new Housing Element in progress, it is recommended that these new policies, programs, and goals have identified funding strategies. The HEWG would update our existing affordable housing master plan with the goals of:
• Make recommendations on funding programs such as affordable homeownership programs.
• Make recommendations on new funding sources for new construction, acquisition/rehabilitation, and preservation of affordable housing. • Develop a land-banking strategy for future housing development. • Quantifying housing needs for special populations and income. • Recommend housing production goals beyond the RHNA goals identified in the Housing Element.
• Increasing energy efficiency to lower the cost of homeownership. • Reviewing the City’s Pro-Housing application.

8.A.b
Packet Pg. 209 Attachment: EXHIBIT A (3768 : Housing Element Work Group Work Plan)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: November 21, 2022
SUBJECT: Professional Services Agreement with Reach for Home PREPARED BY: Griselda Villarreal, Administrative Analyst II STRATEGIC INITIATIVE(S):

Expand Affordable Housing Opportunities
Maintain and Enhance Public Health and Safety
RECOMMENDED ACTION(S):

Adopt a Resolution approving a Professional Services Agreement with Reach for Home for services to the homeless and those at risk of becoming homeless and authorizing the City Manager to execute said agreement.

COMMUNITY ENGAGEMENT/OUTREACH:

Reach for Home engages our community with services and programs to help those experiencing homelessness and those at-risk of being displaced from housing. This includes interacting with our community members, first responders, and businesses. If approved, this action will help to continue these ongoing efforts in our community.

BACKGROUND:

In an on-going effort to address the housing needs of our community, the City has formed a strategic partnership with Reach for Home to expand programs to address homelessness and provide services to prevent families and individuals from entering homelessness.

In December 2009, the Redevelopment Agency of the City of Healdsburg entered into a lease agreement with Reach for Home, formerly North Sonoma County Services to provide affordable transitional housing at 306 and 308 East Street (Victory Apartments and Studios). The City, with the assistance from Reach for Home, has been able to provide affordable transitional housing for families struggling to gain stability, economic independence, and permanent housing placements.

In 2018, the City entered into a professional services agreement with Reach for Home to expand upon the services provided at the Victory Apartments and Studios, to include prevention services, housing navigation, and street outreach. This agreement was for a term of three-years and expired on June 30, 2021.

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In 2022, the City authorized execution of a one-year agreement with Reach for Home for services to expand upon services provided at the Victory Apartments and Studios, and the newly constructed Navigation Center on-site, to include case management services, temporary emergency shelter services, and relocation assistance and services. This agreement expired on June 30, 2022.

During the period of the professional services agreement, the City benefited greatly from its agreement with Reach for Home. For every dollar the City provided in the professional services agreement, Reach for Home raised approximately ten dollars to help address homelessness in Northern Sonoma County.

DISCUSSION/ANALYSIS:

Staff is recommending that the City Council approve a two-year professional services agreement with Reach for Home in the amount of $150,000 per year. The scope of work for this period will provide ongoing funding for the management of the Victory Studios and Apartments and the provision of homeless services in the City of Healdsburg.

Reach for Home has provided the attached scope of work covering a two-year period with a not to exceed an annual amount of $150,000. The funding for this professional services agreement was adopted in the FY 22-23 and FY 23-24 budget.

The proposed agreement would provide ongoing funding to maintain the services already being provided by Reach for Home, including case management services, temporary emergency shelter services for homeless residents in the City in response to extreme weather events, and relocation assistance and services for Healdsburg families and individuals.

The funding covered in this contract is distinct from the operational funding the City will provide for operating the L&M Village. This professional services agreement maintains the level of service we currently have in the City and is funded through Measure S. The operational funding for the L&M Village is a combination of State Homekey program funds and County operational match funding which will be covered under a separate agreement.

ENVIRONMENTAL STEWARDSHIP:

There is no direct correlation to environmental stewardship associated with this item.

ALTERNATIVES:

The City Council may choose to not to fund the agreement, or direct staff to modify the terms of the agreement. If the Council chooses not to approve this agreement, staff would seek further direction form the Council on how to maintain homeless services in the City.

FISCAL IMPACT:

The adopted FY 22-23 and FY 23-24 Affordable Housing Measure S Fund budget included $150,000 for the proposed Reach for Home services.

ENVIRONMENTAL ANALYSIS:

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

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ATTACHMENT(S):

Resolution
Exhibit A_Reach for Home_Scope

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CITY OF HEALDSBURG
RESOLUTION NO. ______2022

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG APPROVING A PROFESSIONAL SERVICES

AGREEMENT WITH REACH FOR HOME FOR SERVICES TO

THE HOMELESS AND THOSE AT RISK OF BECOMING

HOMELESS, AND AUTHORIZING THE CITY MANAGER TO

EXECUTE SAID AGREEMENT
WHEREAS, the City of Healdsburg has expressed a commitment to providing housing services and assistance to our low-income and homeless residents; and WHEREAS, in December 2009, the Redevelopment Agency of the City of Healdsburg entered into a lease agreement with Reach for Home, formerly North Sonoma County Services to provide affordable transitional housing at 306 and 308 East Street; and WHEREAS, the City is the owner of the dwelling units located at 306 and 308 East Street; and
WHEREAS, affordable transitional housing for families struggling to gain stability, economic independence and permanent housing placements is critical for Healdsburg; and WHEREAS, Reach for Home’s housing programs and case-management services offer an effective housing and supportive services solution for families and individuals in our community; and
WHEREAS, the services provided by Reach for Home have provided greater stability for residents in our community at risk and those that are experiencing homelessness and the City desires to continue these services; and
WHEREAS, funding for this Professional Services Agreement was approved by the City Council in the FY 22-23 and FY 23-24 Measure S Affordable Housing Budget; and WHEREAS, 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.

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

1. Approves a two-year agreement with Reach for Home for services as described in the attached scope of work for the not to exceed amount of $150,000 per year; and

2. Authorizes the City Manager to execute the agreement.

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Packet Pg. 213 Attachment: Resolution (3818 : Reach for Home PSA) Resolution No.-____2022

PASSED AND ADOPTED by the City Council of the City of Healdsburg, this 21st day of November 2022, by the following vote:

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

8.B.a
Packet Pg. 214 Attachment: Resolution (3818 : Reach for Home PSA) Exhibit A
Reach for Home – Scope of Work
Case-Management and Outreach Services
For the not to exceed amount of $150,000 per year of the two-year period ending June 30, 2024, utilizing the Victory Studios, a seven-unit studio apartment complex located at 306 East Street in Healdsburg, the Victory Apartments, a four-unit two-bedroom apartment complex located at 308 East Street in Healdsburg, and the newly constructed Navigation Center located on-site for housing programs including:

1. To provide case management services.
a. Insure that the programs and clients comply with the rules as specified in Federal, State and County housing programs and assist them in becoming self-reliant and able to move into independent housing
b. Ensure the establishment of necessary controls in place to qualify and administer government funding
c. Using the full spectrum of the county’s social services resources in service of the family’s needs, strive for the ultimate goal for each family to gain the skills needed to be stable, independent and productive members of the community following graduation into permanent housing.
d. Work in partnership with other agencies, churches and businesses in the area to reduce duplication of services and to use best practices to serve the needs of the clients of Reach of Home at the lowest possible cost to the City.
e. Programs offered may include emergency shelter, permanent supportive housing or rapid rehousing.
f. Oversee the management of the Victory Studios and Apartments located a 306 and 308 East street as outlined in the terms of the Lease agreement dated December of 2009.

2. To provide temporary emergency shelter services (“TESS”) for homeless residents in the City in response to extreme weather events.
a. Oversee and manage all aspects including weather forecast monitoring, decision making, identifying and securing a facility location, event commencement and conclusion, tracking and reporting services provided, monitoring and oversight of all activities including but not limited to management of participating organizations, volunteers, outreach teams and homeless residents as well as documentation, funding, payment of any cost incurred and reimbursement.
b. Coordinate entry for the Healdsburg homeless residents impacted by the extreme changes in the weather.
c. Provide information to Sonoma County Coordinated Intake Services. d. Provide and/or coordinate all staffing, food, bedding, facility and any other required supplies or resources for the duration of time the TESS remains active. e. Provide for 24 hour per day staffing for as long as the TESS remains active. f. Coordinate the transportation of effective homeless resident to the TESS. g. Notify the City Manager and/or his/her designee, as well as the Chief of Police when the TESS is activated and deactivated.
h. If appropriate, notify the medial and coordinate with the City on any press release. i. Specific cost that may be reimbursed under this cope of work include staffing costs, operating expenses (e.g. gas, food, facility fees, cleaning expenses, supplies, garbage removal, and

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Packet Pg. 215 Attachment: Exhibit A_Reach for Home_Scope (3818 : Reach for Home PSA) utilities) related to the TESS and other costs as approved by the City Manager and/or his/her designee.

3. Provide relocation assistance and services for Healdsburg families impacted by rent increases and/or construction.

4. Provide referrals to other services as necessary and coordinate services and delivery of services with a “warm hand-off” to the appropriate level of care.

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Packet Pg. 216 Attachment: Exhibit A_Reach for Home_Scope (3818 : Reach for Home PSA)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: November 21, 2022
SUBJECT: Lease, Funding and Service Agreement: L&M Village PREPARED BY: Stephen Sotomayor, Housing Director
STRATEGIC INITIATIVE(S):

Expand Affordable Housing Opportunities
Provide Resident-Driven Community Services
RECOMMENDED ACTION(S):

Adopt a Resolution approving a Lease, Funding and Service Agreement with Reach for Home for the L&M Village; authorizing the City Manager to execute the agreement; authorizing the City Manager to execute annual amendments to the terms of service, and approving amending the Fiscal Year 2022-23 budget.

COMMUNITY ENGAGEMENT/OUTREACH:

The Lease, Funding and Service Agreement with Reach for Home will be heard during a Regular City Council meeting which provides a forum for public comment and participation. In addition, as a part of the larger L&M Village project, City staff and Reach for Home have conducted extensive outreach with the project’s neighbors and stakeholders. City staff and Reach for Home will continue to keep open communication with the neighbors of the project and the community at large with quarterly updates and as information is requested or needed.

BACKGROUND:

In July of 2020, the State of California launched a $750 million program called “Project Homekey,” with the aim of helping local communities rapidly acquire hotels, motels, commercial buildings, and other creative housing types to rapidly house people experiencing homelessness during the COVID-19 pandemic. Project Homekey resulted in 8,264 individuals housed across 120 unique properties.

Given the success of Project Homekey, the State of California budgeted an additional $1.45 billion for Fiscal Year (FY) 2021-2022. Of the $1.45 billion in Homekey funding, $1.2 billion is derived from the Coronavirus State Fiscal Recovery Fund (CSFRF) established by the American Rescue Plan Act (ARPA) of 2021 and $250 million is State General Fund.

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On October 18, 2021, the City Council authorized City staff, in collaboration with Reach for Home and Burbank Housing to apply for the FY 2021-2022 Project Homekey program for the acquisition by the City of the L&M Motel for use as interim housing for those experiencing homelessness.

On October 26, 2021, the County of Sonoma adopted Resolution 21-0431 which authorized a Project Homekey Round-2 (PHK-2) Supportive Services Funding Framework and Early Capital Match Program and approved $950,000 in Capital Match funding and $3,388,660 in operating subsidy for the L&M Village.

On October 27, 2021, the City, Reach and Burbank submitted an application to the State of California for $5,720,000 in Project Homekey capital funding and $1,328,800 in operating subsidy for a total of $7,048,800 in State funds.

On December 21, 2021, the State of California announced that the City, Reach and Burbank were successful in their application for Project Homekey funding and conditionally awarded the requested funding pending the execution of the State’s Standard Agreements.

On February 16, 2022, the City executed a State Standard Agreement with the State of California and on March 23, 2022, the City received the PHK-2 program funds for both capital and operational costs.

On May 3, 2022, the City closed escrow on the L&M Motel and the property is now under City ownership.

In June of 2022, the City of Healdsburg requested an extension for the PHK-2 occupancy deadline to restore the time between the date of award of funding and the time funds were actually received by the City. This extension was approved and extended the City’s occupancy deadline from August 21, 2022, to November 21, 2022 and preserved the City’s ability to receive an early occupancy bonus of $220,000.

On August 1, 2022, the City awarded a bid to DMR Builders of Santa Rosa to make improvements to the L&M Village Property .

The L&M Village is scheduled to begin accepting clients on November 21, 2022, in accordance with the terms set forth in the PHK-2 agreement.

DISCUSSION/ANALYSIS:

Staff recommends that the City Council adopt a Resolution to approve a Lease, Funding and Service Agreement with Reach for Home for the L&M Village.

For over a year, the City, in partnership with Reach for Home and Burbank Housing, has been working to open the first interim housing project in Northern Sonoma County. The L&M Village will provide 22 units of interim housing for those that are experiencing chronic homelessness.

This is a unique and rare opportunity in which the City has amassed nearly $12M in non-city funds to meet one of the City’s goals, and to provide services to its most vulnerable residents.

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During this period, staff has not only been actively managing the construction and improvements needed to occupy the L&M Village but has also been refining the operational program needed to successfully operate the project in a manner consistent with the needs of the clients, community, and in accordance with the PHK-2 guidelines.

The Lease, Funding and Service Agreement with Reach for Home (Attachment A) provides the City and Reach for Home with the administrative provisions necessary for Reach for Home to operate and maintain the site for a period of three years from the date of occupancy, with the option to renew this agreement at the end of that period. The Homekey program requires the site to be deed restricted for a period of 15-years from the Certificate of Occupancy.

Provisions of the Lease, Funding and Service Agreement
The agreement being considered at this meeting provides a lease for Reach for Home for a period of three years for the sole use of the property as an interim housing program. The lease maintains that Reach for Home will operate the project site in accordance with the terms set-forth by the PHK-2 program. Additionally, the lease incorporates “Terms of Service” by reference that includes specific provisions to provide funding to Reach for Home for the site’s operation from the PHK-2 funds, the County’s operational subsidies, and other grants or private donations for the operation of this interim housing program. The “Terms of Service” will be updated annually, and staff is requesting that the City Manager be granted authority to approve annual updates to the Terms of Service.

In this agreement, the City will remain the owner of the site and Reach for Home will operate the site. Capital improvements to the site or operational changes will need to be vested through the City prior to implementation and maintenance will be the responsibility of the tenant. This agreement provides the City positive control in the event the City is required to remedy any shortcomings in the operation of the site.

L&M Village Operations
Reach for Home and City staff have conducted outreach with neighbors, stakeholders, clients, and other affected parties to help inform the operational plan for the L&M Village. The goal of our project team is to ensure that the operation of the L&M Village does not have an impact on the surrounding businesses or neighbors and leads to permanent housing solutions for the participants of the program.

One of the key aspects to ensuring that the L&M Village will operate effectively, is to ensure the site operator has the correct staffing levels and policies in place to ensure the program’s success.

Reach for Home and City staff have reviewed best practices from similar projects and have developed the L&M Village Program Manual (Attachment B).

In addition to the L&M Village Program Manual, the State requires that the L&M Village team develop and annual operating budget that delineates staffing and other costs needed to operate the program successfully. The L&M Village budget provides for a higher-than-normal case

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manager to client ratio, which is at the request of the community to ensure that clients receive the services needed to achieve permanent housing and that site security is maintained.

L&M Village Budget and Funding
The L&M Village is, like most projects designed to serve those experiencing homelessness, a combination of several funding sources working together to achieve a common goal. The current funding identified to date is outlined in the chart below:

Funding Source Amount Funding Use
Homekey Capital Funds $4,804,237 Acquisition/Rehabilitation Homekey Capital Match $1,100,000 Acquisition/Rehabilitation County Early Capital Match $950,000 Rehabilitation
Bonus Award (Capital) $220,000 Rehabilitation
Capital Funds Subtotal $7,074,237
Operational Funds Homekey $704,563 Operations
Bonus Award (Occupancy)* $220,000 Operations
County Operating Subsidy** $3,388,660 Operational Subsidy (7 years) Operational Funds Subtotal $4,313,223
Total L&M Village Funds $11,387,460
* The bonus award for occupancy is conditioned on achieving occupancy by November 21, 2022. ** The County operating subsidy is a not to exceed amount over a 7-year period.

The “Terms of Services” included in this agreement with Reach for Home will provide for the operating costs represented in the Project Homekey budget to meet program requirements and the need of the community. This budget is based upon reimbursable work except for an initial monthly payment to provide for up front start-up costs. Reach for Home’s operation costs are outlined in the chart below:

Project Line Item Annual Total
L&M Village Staffing Budget $463,070
Non-Payroll Expenses $77,400
Administrative Expenses $100,000
Meals and Programs $120,450
Security 24 Hour $100,000 (3 Mo.) Overnight $110,000 (9 Mo.) Total $970,920
Many of the items in the budget are optimized to ensure the initial success as the program. One such example is the provision of 24-hour security. During the course of neighborhood outreach, the request was made to have 24-hour security on site for the first three months, and afterwards, move to overnight security provided a level of neighborhood comfort is achieved. Provided we can reduce security, cost-savings will be provided in this budget.

The annual operating budget provides for three case managers (one with a specialty in mental health) a housing specialist and property manager, and a full-time facilities and maintenance

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technician. In addition, this amount includes all the programs and services that Reach for Home will provide as a part of the interim housing program.

In addition to the funding already received, the City and Reach for Home have already started to seek out existing and new grants or programs to offset costs for the L&M Village. The Council recently adopted a resolution to authorize staff to apply for $200,000 in Community Development Block Grant Funding (CDBG) thorough the Sonoma County Community Development Commission (CDC) for additional capital improvements to the L&M Village.

As grants are received for operational expenses, the intent is to: 1) build a reserve for future operational years and 2) to expand programs to accelerate participant’s placement in permanent housing.

Should the Council approve the Lease, Funding and Service Agreement, operations are set to begin immediately.

ENVIRONMENTAL STEWARDSHIP:

As a part of the site improvements, the City and its partners will be making upgrades to the L&M village that will directly reduce the energy usage and water usage of the site.

ALTERNATIVES:

The City Council may choose not to approve the Lease, Funding and Service Agreement. If this option is chosen, staff would seek additional Council direction or request that staff modify the terms of the actions requested.

FISCAL IMPACT:

The Fiscal Year 2022-23 adopted budget included $989,484 for the operations of the L&M Village based on initial estimates for annual operating costs. The proposed agreement would commence operations in November resulting in only eight months of expenses this fiscal year.

Staff propose reducing the operational budget by $321,093 to $668,391 to align with projected operational costs for the remainder of the Fiscal Year. There are sufficient Project Homekey State Grant funds available to support the operational costs for FY 2022-23.

As authorized by the County Board of Supervisors, the City is working with the County of Sonoma on an agreement for County operational subsidy for a seven-year period. The annual amount of funding received by the County will vary based upon need but is on a not-to-exceed limit, providing flexibility in the ability to access funds.

ENVIRONMENTAL ANALYSIS:

The proposed Project involves the acquisition and rehabilitation of an existing and operational motel, which shall then be used to provide interim housing on the Property and accordingly does not involve any change in land use or density, nor any expansion of use. Accordingly, the proposed Project is exempt from review under the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) of the CEQA Guidelines, which exempts the repair and minor alteration of existing public or private structures involving negligible or no expansion of use, as well as Section 15061(b)(3), commonly known as the

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common sense exemption, which acknowledges that CEQA applies only to projects which have the potential for causing a significant effect on the environment and in this instance there is no possibility that the Project may have a significant effect on the environment, given that there is no change in the land use, density, nor any expansion of use. Therefore, the proposed Project is not subject to CEQA.

ATTACHMENT(S):

Resolution
L&M Village - Program Manual
Exhibit A - Lease, Funding and Service Agreement
Exhibit B - Budget Amendment
Terms of Service and Annual Budget

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CITY OF HEALDSBURG
RESOLUTION NO.___2022

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF HEALDSBURG APPROVING A LEASE, FUNDING AND

SERVICE AGREEMENT WITH REACH FOR HOME FOR

THE L&M VILLAGE AUTHORIZING THE CITY MANAGER
TO EXECUTE THE AGREEMENT; AUTHORIZING THE

CITY MANAGER TO EXECUTE ANNUAL AMENDMENTS

TO THE TERMS OF SERVICE, AND APPROVING
AMENDING THE FISCAL YEAR 2022-23 BUDGET
WHEREAS, in July of 2020, the State of California launched a $750 million program called “Project Homekey,” with the aim of helping local communities rapidly acquire hotels, motels, commercial buildings, and other creative housing types to rapidly house people experiencing homelessness during the COVID-19 pandemic. Project Homekey resulted in 8,264 individuals housed across 120 unique properties; and
WHEREAS, given the success of Project Homekey, the State of California budgeted an additional $1.45 billion for Fiscal Year (FY) 2021-2022. Of the $1.45 billion in Homekey funding, $1.2 billion is derived from the Coronavirus State Fiscal Recovery Fund (CSFRF) established by the American Rescue Plan Act (ARPA) of 2021 and $250 million is State General Fund; and WHEREAS, on October 18, 2021, the City Council authorized City staff, in collaboration with Reach for Home and Burbank Housing to apply for the FY 2021-2022 Project Homekey program for the acquisition by the City of the L&M Motel for use as interim housing for those experiencing homelessness, and
WHEREAS, on October 26, 2021, the County of Sonoma adopted Resolution 21-0431 which authorized a Project Homekey Round-2 (PHK-2) Supportive Services Funding Framework and Early Capital Match Program and approved $950,000 in Capital Match funding and $3,388,660 in operating subsidy for the L&M Village; and WHEREAS, on October 27, 2021, the City, Reach and Burbank submitted an application to the State of California for $5,720,000 in Project Homekey capital funding and $1,328,800 in operating subsidy for a total of $7,048,800 in State funds; and WHEREAS, on December 21, 2021, the State of California announced that the City, Reach and Burbank were successful in their application for Project Homekey funding and conditionally awarded the requested funding pending the execution of the State’s Standard Agreements; and WHEREAS, on February 16, 2022, the City executed a State Standard Agreement with the State of California and on March 23, 2022, the City received the PHK-2 program funds for both capital and operational costs; and

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Packet Pg. 223 Attachment: Resolution (3830 : Lease, Funding and Service Agreement L&M Village) Resolution No. _ -2022

WHEREAS, on May 3, 2022, the City closed escrow on the L&M Motel and the property is now under City ownership; and
WHEREAS, in June of 2022, the City of Healdsburg requested an extension for the PHK2 occupancy deadline to restore the time between the date of award of funding and the time funds were actually received by the City. This extension was approved and extended the City’s occupancy deadline from August 21, 2022, to November 21, 2022 and preserved the City’s ability to receive an early occupancy bonus of $220,000; and
WHEREAS, On August 1, 2022, the City awarded a bid to DMR Builders of Santa Rosa to make improvements to the L&M Village Property; and
WHEREAS, the adopted Fiscal Year 2022-23 budget included $989,484 to support a full year of operational costs of the L&M village; and
WHEREAS, several increases to the construction budget and a reduction of operational costs due to operations commencing in November require an adjustment to the operational budget; and
WHEREAS, Reach for Home desires to lease the property from the City for the operation of the L&M Village interim housing program to serve those experiencing chronic homelessness in Healdsburg; and
WHEREAS, the City desires to lease the L&M Village to Reach for Home for a period of three-years with an option to extend this agreement upon mutual agreement of the City and Reach for Home; and
WHEREAS, the City serves as the fiduciary of State and local funding to operate the L&M Village as provided by the State of California, the County of Sonoma, and the City of Healdsburg; and
WHEREAS, Reach for Home requires this funding to ensure the success of the L&M Village’s programs and services; and
WHEREAS, the City and Reach for Home both desire to operate the L&M Village in a manner that meets the needs of both the clients and community it serves, and that is respectful of the neighborhood it is located in; and
WHEREAS, the Lease, Funding and Service Agreement, attached as Exhibit A, memorializes the agreement between the City and Reach for Home; and WHEREAS, 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

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Packet Pg. 224 Attachment: Resolution (3830 : Lease, Funding and Service Agreement L&M Village) Resolution No. _ -2022

an administrative activity of the City that will not result in direct or indirect physical changes to the environment.

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

1. Approves a Lease, Funding and Service Agreement with Reach for Home for the L&M Village as depicted in Exhibit A; and

2. Authorizes the City Manager to execute the Agreement and annual amendments to the Terms of Service; and

3. Authorizes the City Manager to authorize any amendments to effectuate this agreement as approved to form by the City Attorney.

4. Approves amending the Fiscal Year 2022-23 adopted budget as depicted in Exhibit B.

PASSED, APPROVED AND ADOPTED this 21st day of November 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. 225 Attachment: Resolution (3830 : Lease, Funding and Service Agreement L&M Village)

REACH FOR HOME

L & M VILLAGE

PROGRAM MANUAL

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Packet Pg. 226 Attachment: L&M Village - Program Manual (3830 : Lease, Funding and Service Agreement L&M Village) Updated 12.9.2021
Contents
Program Overview ....................................................................................................................... 3 Outreach and Referral ................................................................................................................ 3 Application Process ...................................................................................................................... 3 Determining Eligibility ................................................................................................................... 3 Ineligibility ...................................................................................................................................... 5 Connections to Other Resources ............................................................................................... 5 Intake Process ............................................................................................................................... 6 Service Delivery ............................................................................................................................. 6 Program Participation .................................................................................................................. 6 Assessment/Goal Planning .......................................................................................................... 7 Length of Stay ............................................................................................................................... 8 Guest Policy ................................................................................................................................... 8 Inspections ..................................................................................................................................... 8 Animals ........................................................................................................................................... 9 Abandonment .............................................................................................................................. 9 Exit Policy ....................................................................................................................................... 9 Governance Structure ................................................................................................................. 9 Appeals Procedure .................................................................................................................... 10 Rights and Responsibilities ......................................................................................................... 10 Request for Reasonable Accommodation ............................................................................ 10 Equal Access ............................................................................................................................... 11 HMIS Data Collection ................................................................................................................. 12 Privacy Policy .............................................................................................................................. 12 Record Keeping .......................................................................................................................... 12 Appendices ................................................................................................................................. 13 Resolution Process ................................................................................................................................. 14

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Packet Pg. 227 Attachment: L&M Village - Program Manual (3830 : Lease, Funding and Service Agreement L&M Village) Program Overview
REACH FOR HOME offers temporary shelter to homeless adults who are among the most vulnerable members of our local homeless community. Residents are referred using Northern Sonoma County’s By Names list through the County of Sonoma’s Coordinated Entry System (CES), through REACH FOR HOME Outreach Case Management team, or by community partners including City of Cloverdale Police Department, Healdsburg Police Department, Windsor Police Department, Corazon, Alexander Valley Medical Center, Alliance Medical Center to name a few. Residents are provided a hot meal once a day and access to healthy take and make foods throughout the day. Case management, Client Enrichment Services, recovery supports, and Social Supports services are all offered, and residents have easy access to the REACH FOR HOME Community Health and Wellness Unit which is onsite once a week for health and wellness support. Residents are admitted into the program for a starting period of 30 days. If there are no outstanding and ongoing negative behaviors, resident’s stay will be extended in 30-day increments for a period not to exceed 180 days.

Outreach and Referral
REACH FOR HOME staff will utilize the Northern Sonoma County By Names list to offer shelter units to vulnerable local individuals who are experiencing homelessness. In addition, we will accept direct referrals from REACH FOR HOME’S Street Outreach Case Management team, and our other partners listed in the previous section. If a need arises for additional referrals, REACH FOR HOME will reach out to other homeless service and healthcare providers and will access Sonoma County’s Coordinated Entry By Names list. Any resident, if not already referred through CES, will be entered into the system and served through Coordinated Entry.

Application Process
Interested individuals or couples may complete the REACH FOR HOME Village application, which can be obtained through REACH FOR HOME’s Street Outreach Case Management team or at the REACH FOR HOME L & M VILLIAGE - 7 days a week 8:00 – 5:00 p.m.

Determining Eligibility
To ensure that REACH FOR HOME is serving those who are most in need, applicants for REACH FOR HOME Village are required to sign a certification of income at the time of intake. Qualified applicants must earn 50% or below Average Monthly Income (AMI) as defined by U. S. Department of Housing and Urban Development (HUD).

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Packet Pg. 228 Attachment: L&M Village - Program Manual (3830 : Lease, Funding and Service Agreement L&M Village) Family Size Income Level Range – 2021
Below 30%
(Extremely Low)
31% to 50%
(Very Low)
51% to 80%
(Moderate)
Over 80% (Nonlow Moderate)
1 Below $24,450 $24,451 -
$40,750
$40,751-
$65,150 $65,151 & above
2 Below $27,950 $27,951 -
$46,550
$46,551 -
$74,450 $74,451 & above
To ensure that REACH FOR HOME is serving the most vulnerable individuals in the homeless population, the focus on REACH FOR HOME’S L & M Village will be chronically homeless individuals.

HUD Definition of Chronic Homelessness

1. An individual who:
 Is homeless and lives in a place not meant for human habitation, a safe haven, or in an emergency shelter; and
 Has been homeless and living or residing in a place not meant for human habitation, a safe haven, or in an emergency shelter continuously for at least 1 year or on at least four separate occasions in the last 3 years, where the cumulative total of the four occasions is at least one year. Stays in institutions of 90 days or less will not constitute as a break in homelessness, but rather such stays are included in the cumulative total. A break in homelessness spent living in a place not meant for human habitation, a safe haven, or in an emergency shelter is considered to be any period of 7 or more consecutive nights where an individual or family is not living or residing in such a place; and
 Has one or more of the following conditions: Substance use disorder, serious mental illness, developmental disability (as defined in section 102 of the Developmental Disabilities Assistance Bill of Rights Act of 2000 (42 U.S.C. 15002)), posttraumatic stress disorder, cognitive impairments resulting from brain injury, or chronic physical illness or disability;

2. An individual who has been residing in an institutional care facility, including a jail, substance abuse or mental health treatment facility, hospital, or other similar facility for fewer than 90 days and met all the criteria in paragraph (1), before entering that facility.

Activities of Daily Living (ADLs)
Residents of REACH FOR HOME L & M Village need to be able to complete ADLs without the assistance of a home health care provider. Because REACH FOR HOME L & M Village is considered a form of temporary shelter, In Home Health Support (IHSS) workers

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Packet Pg. 229 Attachment: L&M Village - Program Manual (3830 : Lease, Funding and Service Agreement L&M Village) will not be eligible to provide services or to move into units with residents. The exception would be if one member of a couple provides IHSS support for their partner.

Verification of Homeless Status
Evidence of homelessness, chronic homelessness (including disability), and region of homeless occasions will be obtained in the following order of priority:

1. Third Party Verification
a. This includes letters written and signed on letterhead from other homeless service providers such as shelters, homeless outreach workers, or other homeless service providers. In the absence of a homeless service provider, a signed letter on letterhead from another human service entity such as a food bank, social worker, outreach worker, health worker, law enforcement, hospital, medical clinic, or church is appropriate. b. Third party verification letters must be on letterhead and must contain the full name of the client. Letters must include dates verifying the timeframe of homelessness including both a start date and completion date. Letters should be signed by a staff member whose title appears on the letter. c. If third party verification if not available, intake worker observations are used. Lack of third-party documentation will not prevent an individual or couple from being admitted to the program.

2. Intake Worker Observations
REACH FOR HOME staff or other service provider may certify homeless status based on knowledge of individual’s current living situation. Intake worker should provide written statement detailing living situation.

Statement should be signed and dated, and whenever possible, should be backed up by HMIS printout.

3. Self-Certification
If neither third-party verification nor intake worker observations establish adequate evidence of homelessness, the person seeking assistance may self-certify that they are homeless. REACH FOR HOME staff will provide template for self-certification of homeless status.

Ineligibility
If an applicant does not qualify for REACH FOR HOME L & M Village, they will be offered other County resources. Staff will make every effort to divert ineligible applicants to family, friends, or other local agencies. (See below.)
Connections to Other Resources
For applicants who do not qualify for REACH FOR HOME L & M Village, we refer to the following local agencies:

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Packet Pg. 230 Attachment: L&M Village - Program Manual (3830 : Lease, Funding and Service Agreement L&M Village)  Sonoma County Coordinated Entry System – 866.542.5480  Catholic Charities – [email protected]
 Redwood Gospel Mission – 707.578.1830
 The Rose – 707.573.0490
 211.org or dial 211
 COTS - (707) 765-6530
Intake Process
When a unit becomes available, REACH FOR HOME’S staff will contact the next eligible individual on the waitlist. Priority will be given to those who may be chronically homeless—staff will assist with gathering proof of chronicity. Applicants who provide contact information are called, texted, or emailed and have 24-hours to respond to schedule an intake. Staff will make three efforts to contact applicants and will document these attempts. Those who do not respond will be removed from waitlist.

Applicants without contact information need to contact REACH FOR HOME regularly to see where they are on the list. REACH FOR HOME’S Outreach Case Management team will assist with contacting individuals on waitlist, as will the local police departments.

REACH FOR HOME staff will conduct intake appointment. This appointment includes:
 REACH FOR HOME L & M Village paperwork completed by client  Client enrolled in HMIS database
 L & M Village rights and responsibilities explained
 Tour of L & M Village assignment of unit.

Service Delivery
REACH FOR HOME’S L & M Village is staffed 24/7, including security presence. Case managers and other REACH FOR HOME staff are typically available every day from 8:00 AM to 9:00 PM. Security is present from 9:00 PM to 6:00 AM. Our contracted security company is trained in trauma-informed service delivery; compassionate oversight is the overarching goal for their presence on the L & M Village property.

Meals
L & M Village residents are offered a hot meal each day. Cold breakfast, fruits, veggies and make and take items are available at any time. Dinner is served between 5:00 PM – 6:00 PM
Program Participation
The following is a partial list essential services that REACH FOR HOME L & M Village offers to participants:

Case Management
Ongoing case management is offered to all residents at REACH FOR HOME L & M Village. Meetings are housing-focused with continual redirection towards achievement

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Packet Pg. 231 Attachment: L&M Village - Program Manual (3830 : Lease, Funding and Service Agreement L&M Village) of housing goals. Case management includes referrals to REACH FOR HOME’S permanent housing programs and other low-income housing opportunities such as Section 8 waitlists and Burbank Housing waitlists. Case managers utilize REACH FOR HOME’S Intake Assessment and Individual Action Plans (IAPs) for the basis for individualized case management offerings. (See Assessment/Goal Planning section below.)
Community Service
L & M Village residents are encouraged to participate in community service at the site to help keep the grounds clean and safe. Community service tasks will be assigned at intake and will be rotated monthly.

Community Meetings
The L & M Village Resident Council will convene monthly community meetings to obtain feedback from residents and troubleshoot issues. Residents are expected to attend this monthly meeting to the best of their ability.

Transportation
Clients have access to City and County bus passes as well as Clipper cards for regional travel for medical care, employment opportunities, housing opportunities or social service appointments. In addition, REACH FOR HOME offers transportation in their 12- seat passenger van and will accompany residents to appointments for support when needed. In some instances, clients may have access to Lyft rides if abovementioned appointments are not accessible through use of public transit or REACH FOR HOME’S van.

Social Supports & Client Enrichment Services
L & M Village residents are welcome to join any life skills groups offered on the campus.

They are also invited to participate in one-on-one meetings with REACH FOR HOME’S contracted mental health specialist who will be onsite weekly.

Pathways Offerings
Clients who are interested in recovery support are invited to participate in REACH FOR HOME’S Pathways offerings. Group activities include multiple weekly meetings led by REACH FOR HOME’S trained staff members, and group transportation to local AA/NA meetings.

Assessment/Goal Planning
Case management will be offered to all L & M Village residents. An initial appointment will be set within 72 hours of intake. At this meeting, REACH FOR HOME’S Intake Assessment will be completed, and Individual Action Plan (IAP) will be established.

Assessment worksheet helps to identify clients’ specific strengths and needs. Areas of assessment include physical health and medications, housing history, finances, mental health, substance use, legal issues, hobbies, interests, and social supports.

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Packet Pg. 232 Attachment: L&M Village - Program Manual (3830 : Lease, Funding and Service Agreement L&M Village) Based on this assessment, Case Managers work with client to create IAP goals, which can be updated monthly, or more often if needed. IAP outlines participants strengths along with individualized goals in the following areas:
 Housing
 Income
 Mental Health
 Physical Health
 Legal Issues (if applicable)
 Recovery/Personal Growth/Social Supports
 Employment
Progress on goals is reviewed at each case management meeting. Utilizing the information gathered from the assessment and IAP, Case Manager will determine if other services might benefit client and will refer to other service providers such as therapists, health care professionals or mainstream resources.

Length of Stay
Residents enter REACH FOR HOME L & M Village for a period of 30 days. If there are no behaviors that interfere with Resident Behavior Agreement, residents are extended for an additional 30 days. Client behaviors continue to be assessed every 30 days for a maximum of 180 days. Clients who have not achieved housing within 180 days will be exited from program. These clients will be encouraged to re-enroll into Sonoma County Coordinated Entry System (CES) so that they can be considered for additional housing opportunities. Trained REACH FOR HOME staff can complete CES enrollment with clients.

Residents sign a Resident Behavior Agreement upon entry to REACH FOR HOME L & M Village. (See appendix.) If at any time during their stay, client behavior is not in accordance with this agreement, they may be exited from program. REACH FOR HOME’S staff will make every attempt to work with clients before resorting to program exit based on behavior.

Guest Policy
Residents of REACH FOR HOME L & M Village are not to bring non-residents onto L & M Village property unless REACH FOR HOME has a special occasion. Residents can meet friends and family offsite. If resident has a meeting with an outside service provider, REACH FOR HOME will make every attempt to provide a private meeting space.

Inspections
Health and safety inspections will be executed monthly, at minimum. Smoke detectors and CO monitors will also be inspected. Inspections will be completed by REACH FOR HOME staff member accompanied by a member of the Resident Council. Residents will be given time to correct failed items. If resident is unable to maintain unit in a healthy and safe manner, they may be exited from program.

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Packet Pg. 233 Attachment: L&M Village - Program Manual (3830 : Lease, Funding and Service Agreement L&M Village) Animals
Pets are permitted at REACH FOR HOME L & M Village. Resident is responsible for all agreements outlined in Addendum including vaccines, which can be provided by REACH FOR HOME through a grant when available. Pets will be expected to live in unit with resident.

Abandonment
If a resident of REACH FOR HOME L & M Village is absent for a period of 7 consecutive days and has not made any attempt to contact REACH FOR HOME’S staff, the unit will be considered abandoned, and all property will be removed. Resident will be exited from program. Resident has 18 days to recover their property and then it will be disposed of at REACH FOR HOME’S discretion. Two staff members (or a staff member and a member of the Resident Council) will be present for removal of items from unit and an inventory sheet will be created.

Exit Policy
REACH FOR HOME is dedicated to lowering barriers to maintaining shelter whenever possible. However, if a resident’s behavior is illegal, violent, abusive, unsafe for others, or is negatively affecting other program participants’ ability to remain sheltered, resident may be dismissed from the program. In making this determination, staff will examine all extenuating circumstances and will only terminate participation in the most severe cases. In these cases, a client will be given an exit letter, and supportive services will be focused on assisting the client with locating other shelter. Resident may appeal the decision using REACH FOR HOME’S Resolution Process described below.

Resident will be exited from HMIS within 48 hours of leaving the program.

Governance Structure
REACH FOR HOME L & M Village utilizes an inclusive governance structure to ensure that residents have a voice in programmatic decisions. The Resident Council is an advisory group that includes 3 individuals who are current residents of REACH FOR HOME L & M Village. These individuals must be in good standing (no major violations of Resident Agreement) and must have lived in REACH FOR HOME L & M Village for a minimum of 30 days. Resident Council presides at a monthly meeting with all residents to get feedback and troubleshoot issues. Resident Council also meets monthly with REACH FOR HOME staff to discuss issues and suggest improvements for the L & M Village and its residents. When there is a vacancy on the Resident Council, qualified residents can complete a Resident Council Application (see Appendix) to be reviewed and voted on by the existing Council members.

One member of the Resident Council will accompany REACH FOR HOME staff for all regularly scheduled unit inspections.

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Packet Pg. 234 Attachment: L&M Village - Program Manual (3830 : Lease, Funding and Service Agreement L&M Village) Appeals Procedure
REACH FOR HOME uses a formal resolution process to resolve any disputes or difficulties that may arise between REACH FOR HOME clients and staff. (See Resolution Process form in Appendix.) Resolution process is described at program intake and participant is provided with Resolution Process form.

Participant signs to acknowledge receipt of form and procedure.

Rights and Responsibilities
All clients have a right to be always treated with respect and dignity, without being subject to abusive, profane, or aggressive language. Clients have a right to a safe, habitable shelter environment. Clients have a right to express their thoughts and opinions without fear of retaliation.

We strive to create a positive, harmonious living environment for our clients. In order for this to be true, clients must maintain certain basic behavioral agreements. If they are unable to meet these agreements, the Case Manager will work with them to help them achieve acceptable levels of behavioral success.

All clients are responsible for adhering to the Program Agreements signed at intake (See Program Agreement in Appendix.) In addition, all clients must:
● agree to be nonviolent
● agree to treat staff, other tenants, neighbors, and property with respect ● agree to not create a nuisance in the home or common areas or otherwise disturb other program participants living on the property, neighbors, or REACH FOR HOME staff
● agree to obey fire and other safety regulations
● agree to keep the shelter clean and habitable
Request for Reasonable Accommodation
The Americans with Disabilities Act (ADA) sets forth certain requirements with respect to persons with disabilities. REACH FOR HOME will strive to conform to applicable federal, state or local laws regarding protections for client with disabilities. We will seek to provide changes to the program's normal policies and practices that are necessary due to clients' disabilities in the form of reasonable accommodations provided that such accommodations do not cause an unreasonable hardship to the organization. Requests for reasonable accommodations may be directed to the RRH Case Manager, who can then consult with Director of Programs.

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Packet Pg. 235 Attachment: L&M Village - Program Manual (3830 : Lease, Funding and Service Agreement L&M Village) Equal Access
REACH FOR HOME programs adhere to HUDs Equal Access ruling, as stated below:
§ 5.106 Equal access in accordance with the individual’s gender identity in community planning and development programs.
(a) Applicability. This section applies to assistance provided under Community Planning and Development (CPD) programs, including assistance under the following CPD programs: HOME Investment Partnerships program (24 CFR part 92), Housing Trust Fund program (24 CFR part 93), Community Development Block Grant program (24 CFR part 570), Housing Opportunities for Persons With AIDS program (24 CFR part 574), Emergency Solutions Grants program (24 CFR part 576), Continuum of Care program (24 CFR part 578), or Rural Housing Stability Assistance Program (24 CFR part 579).

The requirements of this section apply to recipients and subrecipients, as well as to owners, operators, and managers of shelters and other buildings and facilities and providers of services funded in whole or in part by any CPD program. (b) Equal access in accordance with gender identity. The admissions, occupancy, and operating policies and procedures of recipients, subrecipients, owners, operators, managers, and providers identified in paragraph (a) of this section, including policies and procedures to protect privacy, health, safety, and security, shall be established or amended, as necessary, and administered in a nondiscriminatory manner to ensure that:
(1) Equal access to CPD programs, shelters, other buildings and facilities, benefits, services, and accommodations is provided to an individual in accordance with the individual’s gender identity, and in a manner that affords equal access to the individual’s family;
(2) An individual is placed, served, and accommodated in accordance with the gender identity of the individual;
(3) An individual is not subjected to intrusive questioning or asked to provide anatomical information or documentary, physical, or medical evidence of the individual’s gender identity; and
(4) Eligibility determinations are made and assisted housing is made available in CPD programs as required by § 5.105(a)(2).
(c) Placement and accommodation in temporary, emergency shelters and other buildings and facilities with shared sleeping quarters or shared bathing facilities—

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Packet Pg. 236 Attachment: L&M Village - Program Manual (3830 : Lease, Funding and Service Agreement L&M Village) (1) Placement and accommodation. Placement and accommodation of an individual in temporary, emergency shelters and other buildings and facilities with physical limitations or configurations that require and are permitted to have shared sleeping quarters or shared bathing facilities shall be made in accordance with the individual’s gender identity.
(2) Post-admission accommodations. A recipient, subrecipient, owner, operator, manager, or provider must take nondiscriminatory steps that may be necessary and appropriate to address privacy concerns raised by residents or occupants and, as needed, update its admissions, occupancy, and operating policies and procedures in accordance with paragraph (b) of this section. (d) Documentation and record retention. Providers shall document and maintain records of compliance with the requirements in paragraph (b) of this section for a period of 5 years.

HMIS Data Collection
REACH FOR HOME participates in a county-wide project called the Homeless Management Information System (HMIS), which collects information on people who are homeless or at risk of homelessness. HMIS is administered by the Sonoma County Community Development Commission (CDC). REACH FOR HOME enters the information into a secure computerized database for storage and analysis. All persons having access to HMIS information have agreed to keep the information strictly confidential. (See HMIS Privacy Policy in Appendix.) Privacy Policy
REACH FOR HOME'S staff works very hard to maintain the privacy of the clients in our programs. Clients' personal information is shared among staff members only for the purposes of referrals, professional consultation, and staff supervision. Only appropriate information will be shared. We do not confirm or deny the identity of the participants in our program to outside parties, with the exception of law enforcement, probation and parole officers. In all other instances, a written consent must be signed by the client prior to sharing of personal information.

Record Keeping
HMIS data is collected at intake and throughout the program in accordance with Sonoma County Community Development Commission (CDC) requirements. Case managers maintain confidential case notes from all case management meetings and/or phone calls. Client files are kept behind double locks at REACH FOR HOME’S Office at 443 Hudson Street for a period of seven years. Client may request to review his/her file at any time. The request will be reviewed by senior REACH FOR HOME management and a response will be given within fourteen days.

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Packet Pg. 237 Attachment: L&M Village - Program Manual (3830 : Lease, Funding and Service Agreement L&M Village) Appendices

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Packet Pg. 238 Attachment: L&M Village - Program Manual (3830 : Lease, Funding and Service Agreement L&M Village)

RESOLUTION PROCESS
It is a program participant’s right, as well as a REACH FOR HOME policy, to be informed of and to utilize a formal resolution process to resolve any disputes or difficulties that may arise between REACH FOR HOME residents and staff. The following is a description of the resolution process:

1. The first step is to fill out the Resolution Process form (provided during intake meeting.) The form asks you to describe the problem you are having and with whom. It is very important that you include as many details as possible.

2. The second step is to have an in-person meeting with the staff person with whom you are having a problem in order to express your feelings and explain your grievance. Ask the staff person to consider your side of the issue and to try to resolve the grievance at this meeting.

3. If the discussion with the staff person has not resolved the problem, let the staff person know that you are requesting a meeting with their supervisor to help resolve the dispute.

4. The staff member will set up the appointment with their supervisor for you. Be sure to bring your completed Resolution Process Form with you to the meeting with the staff person’s supervisor.

5. If the discussion with the staff person’s supervisor has not resolved the problem, let the supervisor know that you are requesting a meeting with the Director of Programs. Please be aware that the Director of Programs may have other staff involved in the meeting.

6. If the discussion with the Director of Programs does not resolve the dispute, inform that you will be writing a letter of grievance to the Chief Executive Officer of REACH FOR HOME and requesting a meeting to resolve the dispute. (Also include copy of completed form.) Mail letter of grievance and completed Resolution Process form to: REACH FOR HOME Chief Executive Officer, 443 Hudson St., Healdsburg, CA 95448.

Note: The Board of Directors of REACH FOR HOME will not be involved in the resolution process unless the grievance directly involves the Chief Executive Officer of REACH FOR HOME, or unless the Chief Executive Officer recommends that they hear a particular grievance, and it is necessary that they decide the issue.

I HAVE READ AND UNDERSTOOD THE ABOVE RESOLUTION PROCESS.

Signature: _______________________________________________________ Date: _________

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Packet Pg. 239 Attachment: L&M Village - Program Manual (3830 : Lease, Funding and Service Agreement L&M Village)

RESOLUTION PROCESS FORM
Your Name: ______________________________________________Date: _________________ Staff person with whom you have the grievance: ______________________________________ Date/Time/Place of Occurrence: ___________________________________________________ Please tell us why you have a grievance with the staff person named above and include as many details of the incident or problem as you can. (Attach additional pages as needed.) ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ Signature: _______________________________________________________ Date: _________

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Packet Pg. 240 Attachment: L&M Village - Program Manual (3830 : Lease, Funding and Service Agreement L&M Village)

STAFF FOLLOW- UP

TO RESOLUTION PROCESS

Name of Staff Member: ________________________________________Date:______________ Client’s Name: _____________________________________Date of Incident: _______________ Describe outcome of meeting with the participant. (Attach additional pages as needed.) ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ Has grievance has been resolved? [ ] Yes [ ] No
If no, set up meeting with:___________________________________________________ Date and Time of Next Meeting: ______________________________________________ Signature: _______________________________________________________ Date: _________ *Use blank copies this form to record the outcome of each successive meeting.

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Packet Pg. 241 Attachment: L&M Village - Program Manual (3830 : Lease, Funding and Service Agreement L&M Village) Supportive Service Service Description Service Provider(s) Service Location Individual Service
Plan Development
Case Managers will develop an
individualized service plan for
each participanting tenant.

Reach for Home On-Site
Ongoing Case
Management
Case Managers will provide Case
Management
Reach for Home On-Site
Computer Training
Case Managers will provide
computer training as needed Reach for Home On-Site
Employement
Services
Case Managers will provide
assistance to tenants to help
secure employment
Reach for Home in
partnership with
JobLinks
On-Site & Off-Site when
necessary
Peer-to-Peer Support
Case Managers can refer tenants
to peer-to-peer support network. Reach for Home On-Site Gardening Program
Reach for Home will offer a
gardening program where
residents can plant and maintain
vegetables and fruits.

Reach for Home in
Partnership with Farm
to Pantry
On-Site
Housing Stability
Support
Housing Navigator will work with
Case Managers to ensure
stability at L & M Village as well
as stability when transferring to
permanent housing.

Reach for Home On-Site and Off-Site
Community Activities
Case Managers will coordinate
activities for the residents in the
community
Reach for Home in
partnership with
outside resources when
On-Site
Health and Wellness
Community Mobile Health and
Wellness RV to provide health
education and services including
a Community Health Worker
Reach for Home On-Site
Mental Health
Contracted Mental Health
provider to offer weekly
appointments at L & M Village
Reach for Home On-Site and Off-Site if
necessary
Supportive Services Chart
Below are some of the services offered to residents at REACH FOR HOME'S L & M Village

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Packet Pg. 242 Attachment: L&M Village - Program Manual (3830 : Lease, Funding and Service Agreement L&M Village) Health Advocacy
Case Managers and Community
Health Worker will assist
residents when needed by
providing transportation and
attending medical appointments
to advocate and assist with
adherence to treatment plans
Reach for Home Off-Site
Facilities Mentoring
Program
Education around Facilities
Maintence, landscaping and
janitorial work will be offered to
participants
Reach for Home On-Site and Off-Site if
necessary
Drug and Alcohol
Rehab Treatment
Program
Mental Health Rehab Specialist
will work with participants to
reduce drug and alcohol
dependency
Reach for Home in
partnership with
additional local
programs as needed
On-Site and Off-Site if
necessary

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Packet Pg. 243 Attachment: L&M Village - Program Manual (3830 : Lease, Funding and Service Agreement L&M Village) 1 LEASE, FUNDING AND SERVICE AGREEMENT
This FUNDING AND SERVICE AGREEMENT (the “Agreement” or “Lease”), dated as of _____________, 2022 (the “Effective Date”), is entered into by and between the City of Healdsburg, a municipal corporation (“City”) and Reach for Home, a nonprofit public benefit corporation (“RFH”). City and RFH may each be referred to as a “Party” or collectively referred to as the “Parties.”

RECITALS
A. The City is the owner of real property at 70 Healdsburg Avenue (APN 002-304- 009-000), as depicted in Exhibit A attached hereto (the “Property”).

B. The Department of Housing and Community Development (“HCD”) issued a Notice of Funding Availability (“NOFA”), dated September 9, 2021, for the Homekey Program (“Homekey”).

C. On October 18, 2021, the Healdsburg City Council authorized staff to submit an application for Homekey grant funds (“Homekey Application”), jointly with RFH and Burbank Housing Development Corporation, a California nonprofit public benefit corporation (“Burbank”), to develop an interim housing project consisting of 22 residential units and assorted related facilities and improvements on the Property (“Project”). The L&M Village motel currently sits on the Project site.

D. On December 21, 2021, HCD notified the City of Healdsburg that the Homekey Application was approved and had been awarded $5,720,000 in grant funds for the acquisition and construction of the Project, and $1,328,800 in grant funds for ongoing operations, which shall be provided to City.

F. City, RFH, Burbank and HCD have entered into Standard Agreement 21-HK16943 setting forth the terms of the grant funds (“Funding Agreement”). The requirements set forth in the NOFA, Homekey Application and Funding Agreement are collectively referred to herein as the “Homekey Requirements.”
G. On June 21, 2022, City contracted with Burbank for the planning, design, and construction administration of the Project.

H. On August 1, 2022, after issuing a notice inviting bids, City awarded the construction contract for the Project to DMR Builders of Santa Rosa, in the amount of $1,347,326. The construction will include the rehabilitation of the L&M Village for occupancy and use as interim housing in accordance with Homekey Requirements.

I. On October 26, 2021, the County of Sonoma, through its Homekey 2 Supportive Services Funding and Early Capital Match Program, approved by the Board of Supervisors by Resolution 21-0431, approved an annual operating subsidy for the Project over a seven (7) year

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Packet Pg. 244 Attachment: Exhibit A - Lease, Funding and Service Agreement (3830 : Lease, Funding and Service Agreement L&M Village) 2 period totaling Three Million Three Hundred and Eighty-Eight Thousand and Six Hundred Dollars ($3,388,660) to be administered by the City for the operation of the Project.

J. The City and RFH now desire to enter into this Lease to provide for the use and operation of the Project in accordance with the Homekey Requirements.

NOW, THEREFORE, for and in consideration of the covenants and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, City and RFH hereby agree as follows.

ARTICLE 1

DEFINITIONS

1.1 Definitions. The following terms shall have the meanings set forth in the Sections referenced below whenever used in this Agreement. Additional terms are defined in the Recitals and text of this Agreement.
“Applicable Laws” means all applicable state, federal, and local laws, rules, ordinances, codes, and regulations, including without limitation, all applicable Prevailing Wage Laws, all applicable Environmental Laws, Section 3 of the Housing and Community Development Act of 1974, as amended (if applicable pursuant to financing sources used for the Project), applicable provisions of the California Public Contracts Code, the City’s zoning and development standards, building, plumbing, mechanical and electrical codes, all other provisions of the Healdsburg City Code, and all applicable disabled and handicapped access requirements, including without limitation, the Americans with Disabilities Act, 42 U.S.C. Section 12101, et seq.; Government Code Section 4450, et seq.; Government Code Section 11135, et seq.; the Unruh Civil Rights Act, Civil Code Section 51, et seq.; the California Fair Employment and Housing Act; Section 504 of the Rehabilitation Act of 1973; the United States Fair Housing Act, as amended; and Chapters 11A and 11B of Title 24 of the California Code of Regulations relating to accessibility.
“Burbank” means Burbank Housing Development Corporation, a non-profit public benefit corporation, and the Project’s construction management team. “Capital Improvements is defined in Section 5.4
“City” means the City of Healdsburg, a California municipal corporation. “City Council” means the City Council of the City of Healdsburg, California. “Claims” means collectively, liabilities, losses, damages, fines, penalties, claims, demands, suits, actions, causes of action, judgments, judicial or administrative proceedings, deficiencies, orders, costs, and expenses (including without limitation reasonable attorneys’ fees and costs of litigation).
“Construction Plans” is defined in Section 6.3.
“Effective Date” is the date specified in the preamble to this Agreement.

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Packet Pg. 245 Attachment: Exhibit A - Lease, Funding and Service Agreement (3830 : Lease, Funding and Service Agreement L&M Village) 3 “Environmental Laws” means any and all federal, state and local statutes, ordinances, orders, rules, regulations, guidance documents, judgments, governmental authorizations or directives, or any other requirements of governmental authorities, as may presently exist, or as may be amended or supplemented, or hereafter enacted, relating to the presence, release, generation, use, handling, treatment, storage, transportation or disposal of Hazardous Material, or the protection of the environment or human, plant or animal health, including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended by the Superfund Amendments and Reauthorization Act of 1986 (42 U.S.C. § 9601), the Hazardous Materials Transportation Act (49 U.S.C. § 1801 et seq.), the Resource Conservation and Recovery Act (42 U.S.C. § 6901 et seq.), the Federal Water Pollution Control Act (33 U.S.C. § 1251 et seq.), the Clean Air Act (42 U.S.C. § 7401 et seq.), the Toxic Substances Control Act (15 U.S.C. § 2601 et seq.), the Oil Pollution Act (33 U.S.C. § 2701 et seq.), the Emergency Planning and Community Right-to-Know Act (42 U.S.C. § 11001 et seq.), the Porter-Cologne Water Quality Control Act (Cal. Water Code § 13000 et seq.), the Toxic Mold Protection Act (Cal. Health & Safety Code § 26100, et seq.), the Safe Drinking Water and Toxic Enforcement Act of 1986 (Cal. Health & Safety Code § 25249.5 et seq.), the Hazardous Waste Control Act (Cal. Health & Safety Code § 25100 et seq.), the Hazardous Materials Release Response Plans & Inventory Act (Cal. Health & Safety Code § 25500 et seq.), and the Carpenter-Presley-Tanner Hazardous Substances Account Act (Cal. Health and Safety Code, Section 25300 et seq.).
“Force Majeure” is defined in Section 15.4.
“Hazardous Material” means any chemical, compound, material, mixture, or substance that is now or may in the future be defined or listed in, or otherwise classified pursuant to any Environmental Laws (defined below) as a “hazardous substance”, “hazardous material”, “hazardous waste”, “extremely hazardous waste”, infectious waste”, toxic substance”, toxic pollutant”, or any other formulation intended to define, list or classify substances by reason of deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity, or toxicity.

The term “hazardous material” shall also include asbestos or asbestos-containing materials, radon, chrome and/or chromium, polychlorinated biphenyls, petroleum, petroleum products or by-products, petroleum components, oil, mineral spirits, natural gas, natural gas liquids, liquefied natural gas, or synthetic gas usable as fuel, perchlorate, and methyl tert butyl ether, whether or not defined as a hazardous waste or hazardous substance in the Environmental Laws. “HCD” means the California Department of Housing and Community Development. “Taxes” is defined in Section 5.1.
“Improvements” means all buildings, structures, fixtures, fences, walls, paving, parking improvements, driveways, walkways, plazas, landscaping, permanently affixed utility systems and equipment, and other improvements to be developed on the Property, including, without limitation, the Project and all replacements of the foregoing. “Indemnitees” means collectively, the City and its elected and appointed officials, officers, employees, agents, consultants, and contractors.

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Packet Pg. 246 Attachment: Exhibit A - Lease, Funding and Service Agreement (3830 : Lease, Funding and Service Agreement L&M Village) 4 “Lease Termination” is defined in Section 8.2.
“Maintenance” is defined in Section 5.4.
“Prevailing Wage Laws” is defined in Section 6.12.
“Project” means the interim housing project and related improvements. “Property” is defined in Exhibit A.
“RFH” means Reach for Home, a nonprofit public benefit corporation. “Term” is defined in Section 3.1.
“Transfer” is defined in Section 13.1.

ARTICLE 2

PROPERTY CONDITIONS & USE

2.1 Demise. RFH hereby leases from City, the Property for the Term and on the terms and conditions set forth in this Lease.

2.2 Condition of Title. City leases the Property to RFH subject to all easements, covenants, conditions, restrictions and other title matters of record existing as of the Effective Date, and all matters that would be apparent from an inspection of the Property on the Effective Date.

2.3 Condition of Property. RFH specifically acknowledges that the City is leasing the Property to RFH on an "AS IS”, “WHERE IS” and “WITH ALL FAULTS" basis and that RFH is not relying on any representations or warranties of any kind whatsoever, express or implied, from City, its employees, City Councilmembers, agents, or brokers as to any matters concerning the Property. The City makes no representations or warranties as to any matters concerning the Property.

2.4 RFH Investigation. RFH acknowledges that RFH is familiar with the condition of the Property, has made such investigations of the Property as RFH has deemed desirable, and by execution hereof, accepts the Property in its current “AS-IS” condition and state.

ARTICLE 3

TERM OF LEASE

3.1 Term. The Term shall commence on the Effective Date and shall expire on the day preceding the third (3rd) anniversary of the issuance of a certificate of occupancy for the Improvements. The Parties shall meet and confer prior to the Lease Termination on the termination or possible extension of the Term.

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Packet Pg. 247 Attachment: Exhibit A - Lease, Funding and Service Agreement (3830 : Lease, Funding and Service Agreement L&M Village) 5 ARTICLE 4
RENT

4.1 Rent. RFH shall pay to City the sum of One Dollar ($1.00) (“Base Rent”) annually for the Term of the Agreement.

4.2 Payment of Rent. All Rent shall be paid to City at the place to which notices are to be delivered to City, unless City designates a different address for the payment of Rent in writing to RFH. Base Rent payable during the Term shall be payable on each anniversary of the Effective Date. Alternatively, RFH may pay the total amount of Rent due under the Agreement to the City in one lump sum on the Effective Date.

ARTICLE 5

TAXES, ASSESSMENTS AND OTHER CHARGES

5.1 Taxes. RFH shall pay, in accordance with the approved budget in the Terms of Service, as defined below, any possessory interest taxes, license and permit fees, sales, use or occupancy taxes, assessments whether general or special, ordinary, or extraordinary, unforeseen, as well as foreseen, of any kind or nature whatsoever, pertaining to the Property or the Improvements or part thereof, including (collectively, “Taxes”). RFH shall furnish, in a form satisfactory to City, evidence of payment prior to delinquency of all Taxes payable by RFH for reimbursement by City. City shall not reimburse RFH for any taxes, fees or assessments noted in Section 7.3.4 of this Agreement.

5.2 Utilities. RFH agrees to pay, or cause to be paid, in accordance with the approved budget, all charges which are incurred by RFH or which are otherwise a charge or lien against the Property or part thereof during the Term, for gas, water, electricity, light, heat or power, telephone or other communication service use, or other utility use, rendered or supplied upon or in connection with the Property. RFH shall also obtain, or cause to be obtained, any and all necessary permits, licenses or other authorizations required for the lawful and proper installation and maintenance upon the Property of wires, pipes, conduits and other equipment for the supply of utilities to the Project. City shall cooperate to assist RFH in securing utility services for the Project.

5.3 Capital Improvements. The City shall, in its sole discretion, determine a capital improvement schedule for improvements and repairs. RFH agrees to annually provide to the City, a schedule of items that can be reasonably anticipated as necessary capital improvements. The purpose of such schedule is to allow the City to consider such projects for inclusion in its budget for the upcoming year and to prepare and update a long-range capital expenditure budget. RFH’s failure to list particular items or projects shall not be deemed a waiver of City’s responsibility to make such capital improvements.

5.4 Capital Improvements and Maintenance. For purposes of Section 5.3, a capital item is distinguished from maintenance in that a capital improvement is intended to extend the useful life of a fixed asset, whereas repairs and maintenance keep the asset in its customary state

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Packet Pg. 248 Attachment: Exhibit A - Lease, Funding and Service Agreement (3830 : Lease, Funding and Service Agreement L&M Village) 6 of operating efficiency. Minor improvements to structures of site involving a total expenditure of less than Ten Thousand Dollars ($10,000) are not capital improvements. Replacement of structural elements, even costing more than Ten Thousand Dollars ($10,000), caused by normal wear and tear, are maintenance and not a capital improvement.

ARTICLE 6

DEVELOPMENT OF THE PROPERTY

6.1 Construction of Improvements. City has contracted with Burbank to manage, supervise, and coordinate the planning, design, entitlement, permitting, development and construction of the Improvements on the Property, which shall consist of the following: 22-unit interim housing containing individual rooms for habitation, bathrooms, administrative offices, laundry and storage. Additionally, there will be a community garden, pet area, designated smoking area and on-site parking. Construction shall be performed by DMR Builders of Santa Rosa, consistent with the bid submitted and contract awarded by the City.

6.2 Delivery of the Property. City will deliver to RFH the Property with all Improvements substantially complete in accordance with this Agreement and Homekey Requirements on or before November 21, 2022.

6.3 Rights of Access. City shall permit representatives of the RFH to enter upon the Property during construction.

ARTICLE 7

USE OF THE PROPERTY, FUNDING AND PROVISION OF SERVICES

7.1 Permitted Uses. RFH may use the Property for the operation of the Project and for no other purpose, with the exception of hosting events designed to raise funds for the Project or the Property. RFH shall not do or permit any activity on or about the Property that constitutes a public or private nuisance.

7.2 Terms of Service. Prior to the completion of construction of the Project, the Parties shall meet and prepare terms of service and an annual budget for the Project (the “Terms of Service”), which shall be executed by the Parties and incorporated herein by reference. City’s City Manager may execute the Terms of Services and annual updates on behalf of City. The Terms of Service shall be in accordance with all Homekey requirements. Annually thereafter, the Parties shall meet and confer on changes and amendments to the Terms of Service and execute an annual update to the Terms of Service.

7.2.1 Subject to such policy direction and approvals as the City may determine from time to time, RFH shall perform the services set out in the Terms of Services.

7.2.2 City relies upon the professional ability of RFH as a material inducement to entering into this Agreement. All work performed by RFH under this Agreement and the Terms of Service shall be in accordance with all applicable legal requirements and shall meet the standard of quality ordinarily to be expected of competent professionals in RFH’s field of expertise.

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Packet Pg. 249 Attachment: Exhibit A - Lease, Funding and Service Agreement (3830 : Lease, Funding and Service Agreement L&M Village) 7 7.3 Reimbursement and Method of Payment.

7.3.1 The reimbursement to be paid to RFH, including payment for services, reimbursable expenses and payments to fund RFH’s interim housing services and programs and maintenance and management of the Project, shall be at the rate and schedules set forth in the Terms of Service. Payment by City under this Agreement or the Terms of Service shall not be deemed a waiver of unsatisfactory work, even if such defects were known to the City at the time of payment.

7.3.2 RFH shall submit itemized monthly statements for work performed and monetary assistance provided. City shall make payment, in full, within thirty (30) days after approval of the invoice by the City Manager or their designee. Compensation under this Agreement shall be on a reimbursement basis only, with City paying for services actually rendered and costs incurred for eligible activities as set forth in the Terms of Service and in accordance with the Homekey Requirements. Notwithstanding the above, the City may provide advance funding if requested by RFH for initial start-up costs for the Project.

7.3.3 RFH will not undertake any work that will incur costs in excess of the amount set forth in the Terms of Service without prior written amendment approved by City.

7.3.4 RFH shall pay all employment and payroll taxes, assessments and premiums under the federal Social Security Act, any applicable unemployment insurance contributions, Workers Compensation insurance premiums, or other taxes or assessments now or hereafter in effect and payable by reason of or in connection with its work under the Terms of Services.

7.3.5 RFH agrees to testify at City’s request if litigation is brought against City in connection with this Agreement.

7.3.6 RFH shall accept the funding provided by City under this Agreement solely as payment for the costs of providing the services and work detailed in the Terms of Services and shall comply with any legal restrictions on use of funding from the City and the Homekey Requirements.

7.4 Non-Discrimination. RFH shall not restrict the use, occupancy, tenure or enjoyment of the Property, the Project, or any portion thereof, on the basis of race, color, religion, creed, sex, sexual orientation, gender identity, disability, marital status, ancestry, national origin, or immigration status of any person. RFH covenants for itself and all persons claiming under or through it, and this Agreement is made and accepted upon and subject to the condition that there shall be no discrimination against or segregation of any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the use, occupancy, tenure or enjoyment of the Property, the Project, or part thereof, nor shall RFH or any person claiming under or through RFH establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, users, or vendees in, of, or for the Property, the Project, or part thereof. RFH shall include such

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Packet Pg. 250 Attachment: Exhibit A - Lease, Funding and Service Agreement (3830 : Lease, Funding and Service Agreement L&M Village) 8 provision in all deeds, leases, contracts and other instruments executed by RFH and shall enforce the same diligently and in good faith.

7.5 Maintenance of Records. RFH shall keep and maintain complete and accurate books, records, and accounts relating to the Project, including all such books, records, and accounts necessary to evidence and substantiate RFH’s compliance with the requirements of this Agreement. Books shall be kept and maintained in accordance with generally accepted accounting principles consistently applied and shall be maintained for five (5) years. Records must be kept accurate and up-to-date. With at least 48 hours’ notice, during normal business hours, RFH shall provide City and its authorized agents and representatives access to the books, documents, papers and records of the Project for the purpose of making audits, examinations, excerpts and transcriptions.

7.6 Management and Operation of the Project; Compliance with Laws. RFH agrees to operate, maintain and manage the Project in accordance with this Agreement, the Terms of Services, and the Homekey Requirements. RFH shall comply with all Applicable Laws pertaining to the use, operation, occupancy and management of the Property. RFH shall not use the Property or the Improvements for any unlawful purpose and shall not perform, permit or suffer any act of omission or commission upon or about the Property or the Improvements which would result in a nuisance or a violation of Applicable Law.

7.7 Hazardous Materials.

7.7.1 RFH shall not cause or permit the Property or any portion thereof to be a site for the use, generation, treatment, manufacture, storage, disposal or transportation of Hazardous Material or otherwise knowingly permit the presence or release of Hazardous Material in, on, under, about or from the Property or the Project with the exception of limited amounts of cleaning supplies and other materials customarily used in construction, use or maintenance of residential/mixed-use properties similar in nature to the Project and used, stored and disposed of in compliance with Environmental Laws. Further, RFH shall keep and maintain the Property and each portion thereof in compliance with and shall not cause or permit the Project or the Property or any portion of either to be in violation of, any Environmental Laws.

7.7.2 RFH shall immediately advise City in writing of: (a) any and all enforcement, cleanup, removal or other governmental or regulatory actions instituted, completed or threatened against the RFH, or the Property pursuant to any applicable Environmental Laws; (b) any and all claims made or threatened by any third party against the RFH or the Property relating to damage, contribution, cost recovery, compensation, loss or injury resulting from any Hazardous Material; or (c) the presence or release of any Hazardous Material in, on, under, about or from the Property. The matters set forth in the foregoing clauses (a) through (c) are hereinafter referred to as ("Hazardous Materials Claims"). RFH shall promptly take all actions at its sole expense as are necessary to remediate the Property as required by law; provided that City’s approval of such actions shall first be obtained, which approval shall not be unreasonably withheld. Without the City’s prior written consent, RFH shall not enter into any settlement agreement, consent decree, or other compromise in respect to any Hazardous Materials Claim.

City shall have the right to join and participate in, as a party if it so elects, any legal proceedings

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Packet Pg. 251 Attachment: Exhibit A - Lease, Funding and Service Agreement (3830 : Lease, Funding and Service Agreement L&M Village) 9 or actions initiated in connection with any Hazardous Materials Claims and to have its reasonable attorneys’ fees in connection therewith paid by RFH.

7.7.3 To the greatest extent allowed by law, RFH shall indemnify, defend (with counsel approved by City) and hold Indemnitees harmless from and against all Claims resulting, arising, or based directly or indirectly in whole or in part, upon (a) the presence, release, use, generation, discharge, storage or disposal of any Hazardous Material on, under, in or about the Property, or the transportation of any such Hazardous Material to or from, the Property, or (b) the failure of RFH, RFH’s employees, agents, contractors, subcontractors, or any person acting on behalf of or as the invitee of any of the foregoing to comply with Environmental Laws.

The foregoing indemnity shall further apply to any residual contamination in, on, under or about the Property or affecting any natural resources, and to any contamination of any property or natural resources arising in connection with the generation, use, handling, treatment, storage, transport or disposal of any such Hazardous Material, and irrespective of whether any of such activities were or will be undertaken in accordance with Environmental Laws. RFH’s indemnification obligation pursuant to this Section includes, without limitation, costs incurred in connection with any investigation of site conditions or any cleanup, remedial, removal or restoration work required by any federal, state or local governmental agency or political subdivision. RFH’s indemnity obligations set forth herein shall not apply to Claims solely relating to the presence of Hazardous Materials in, on, or under the Property prior to the Effective Date, or to Claims to the extent arising from the active negligence or willful misconduct of the Indemnitees. RFH’s indemnification obligations herein shall survive the expiration or termination of this Agreement.

ARTICLE 8
OWNERSHIP OF IMPROVEMENTS; SURRENDER

8.1 Ownership during Term. During the Term of this Agreement, with the exception of the existing furniture and equipment acquired through the purchase of the Property, the Improvements shall, subject to the terms of this Agreement, be and remain the property of RFH.

All existing furniture and equipment on the Property as of the Effective Date shall be and remain the property of the City. All personal property, furnishings, removable fixtures and equipment brought by RFH in, on or around the Property shall be the personal property of RFH (the “Personal Property”). At any time during the Term, RFH shall have the right to remove the Personal Property provided RFH shall repair any damage caused by the removal of such Personal Property. Personal Property shall not include any portion or part of major building components or fixtures necessary for the operation of the basic building systems (such as security systems, including computers, elevators, escalators, chillers, boilers, plumbing, electrical systems, lighting, sanitary fixtures and HVAC systems) which shall be deemed a part of the Improvements.

8.2 Ownership at Lease Termination. Upon the expiration or earlier termination of the Agreement (“Lease Termination”) the Improvements shall unconditionally be and become the property solely of City, and no compensation therefor shall be due or paid by City to RFH for any part thereof, and this Agreement shall operate as a conveyance and assignment thereof. Upon Lease Termination, RFH shall surrender to City the Property, and the Improvements in good order, condition and repair, reasonable wear and tear excepted. The Parties acknowledge that City may transfer the Improvements to another qualified service provider upon Lease

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Packet Pg. 252 Attachment: Exhibit A - Lease, Funding and Service Agreement (3830 : Lease, Funding and Service Agreement L&M Village) 10 Termination. RFH may remove any Personal Property from the Property and Improvements upon Lease Termination.

ARTICLE 9

INSURANCE

9.1 Insurance. RFH, commencing upon the Effective Date and continuing throughout the Term shall keep and maintain in full force and effect policies of insurance required by the HomeKey Requirements and the insurance set forth in this Article.

9.1.1 Commercial General Liability. RFH, and all contractors and subcontractors working on behalf of RFH on the Project) shall keep in full force and effect a commercial general liability policy including coverage for bodily injury, property damage, products, completed operations and contractual liability coverage with coverage limits in an amount equal to the greater of: (a) Two Million Dollars ($2,000,000) each occurrence, and Four Million Dollars in the aggregate, or such other policy limits as City may require in its reasonable discretion. Such policy or policies shall be written on an occurrence basis and shall name the Indemnitees as additional insureds.

9.1.2 Automobile. RFH and all contractors and subcontractors working on behalf of RFH on the Project shall maintain a comprehensive automobile liability coverage in the amount of One Million Dollars ($1,000,000), combined single limit including coverage for owned, hired, and non-owned vehicles. Automobile liability policies shall name the Indemnitees as additional insureds.

9.1.3 Worker’s Compensation; Employer’s Liability. RFH shall furnish to City evidence satisfactory to City that RFH and any contractor or subcontractor with whom RFH or any general contractor has contracted for the performance of work on the Property or otherwise pursuant to this Agreement, carries statutory Workers’ Compensation insurance and Employer’s Liability insurance in a minimum amount of One Million Dollars ($1,000,000) per accident.

9.1.4 Property. RFH shall maintain property insurance covering all risks of loss (including earthquake and flood (if required)) for 100% of the replacement value of the Improvements with deductible, if any, in an amount acceptable to City, with a lender’s loss payable endorsement for the benefit of City.

9.2 Insurance Providers. Companies writing the insurance required hereunder shall be licensed to do business in the State of California. Insurance shall be placed with insurers with a current A.M. Best's rating of no less than A:VII.

9.3 Evidence of Insurance; Endorsements; Policies. Prior to the Effective Date of this Agreement, RFH shall furnish City with certificates of insurance in form acceptable to City evidencing the required insurance coverage required under Sections 9.1.1 through 9.1.4 above, duly executed endorsements evidencing the Indemnitees status as lender’s loss payee / additional insured (except for Workers’ Compensation policies), and all other endorsements and coverage required hereunder pertaining to such coverage. Prior to City’s issuance of a final certificate of occupancy or equivalent for the Project, RFH shall furnish City with certificates of insurance in

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Packet Pg. 253 Attachment: Exhibit A - Lease, Funding and Service Agreement (3830 : Lease, Funding and Service Agreement L&M Village) 11 form acceptable to City evidencing the insurance coverage required under Section 9.1.7 above with a duly executed endorsement evidencing City’s status as lender’s loss payee. RFH shall provide immediate written notice if (1) any of the required insurance policies is terminated; (2) the limits of any of the required policies are reduced; (3) or the deductible or self-insured retention is increased. In the event of any cancellation or reduction in coverage or limits of any insurance, Contractor shall forthwith obtain and submit proof of substitute insurance. Upon City’s request, RFH shall, within thirty (30) days of the request, provide or arrange for the insurer to provide to City, complete certified copies of all insurance policies required under this Agreement. City’s failure to make such request shall not constitute a waiver of the right to require delivery of the policies in the future.

9.4 Additional Insured Endorsements. The additional insured endorsements for the general liability coverage shall use forms approved by City.

9.5 Reinstatement. If any insurance policy or coverage required hereunder is canceled or reduced, RFH shall, within five (5) days after receipt of notice of such cancellation or reduction in coverage, but in no event later than the effective date of cancellation or reduction, file with City a certificate showing that the required insurance has been reinstated or provided through another insurance company or companies. Upon failure to so file such certificate, City may, without further notice and at its option, procure such insurance coverage at RFH’s expense, and RFH shall promptly reimburse City for such expense upon receipt of billing from City.

9.6 Primary Coverage; Waiver of Subrogation; Annual Aggregate Limits. All coverage shall be primary insurance and shall not be contributing with any insurance, or selfinsurance maintained by City, and the policies shall so provide. Each insurance policy shall contain a waiver of subrogation for the benefit of the City. RFH agrees to waive subrogation rights for commercial general liability, automobile liability, and worker’s compensation against Indemnitees regardless of the applicability of insurance proceeds and agrees to require all contractors and subcontractors to do likewise. RFH agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer. However, the Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by RFH, its employees, agents, and subcontractors. All of the required insurance is provided under a form of coverage that includes an annual aggregate limit or provides that claims investigation or legal defense costs are included in such annual aggregate limit, such annual aggregate limit shall be three times the applicable occurrence limits specified above.

9.7 Deductibles/Retentions. Any deductibles or self-insured retentions shall be declared to and shall be subject to approval by the City’s Risk Manager. At the option of and upon request by the City’s Risk Manager if the Risk Manager determines that such deductibles or retentions are unreasonably high, either the insurer shall reduce or eliminate such deductibles or self-insurance retentions as respects the Indemnitees or RFH shall procure a bond guaranteeing payment of losses and related investigations, claims administration and defense expenses.

9.8 Additional Insured Coverage; Liability Limits. For all liability insurance required by this Agreement, except Workers’ Compensation policies, RFH (and RFH’s contractors, as

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Packet Pg. 254 Attachment: Exhibit A - Lease, Funding and Service Agreement (3830 : Lease, Funding and Service Agreement L&M Village) 12 applicable) shall obtain endorsements that name the Indemnitees as additional insured in the full amount of all applicable policies, notwithstanding any lesser minimum limits specified in this Agreement. This Agreement requires RFH (and RFH’s contractors) to obtain and provide for the benefit of the Indemnitees, additional insured coverage in the same amount of insurance carried by RFH (or RFH’s contractors, as applicable), but in no event less than the minimum amounts specified in this Agreement. In the event that RFH (or RFH’s contractors as applicable) obtains insurance policies that provide liability coverage in excess of the amounts specified in this Agreement, the actual limits provided by such policies shall be deemed to be the amounts required under this Agreement. Without limiting the foregoing, the limits of liability coverage specified in this Agreement are not intended, nor shall they operate, to limit City’s ability to recover amounts in excess of the minimum amounts specified in this Agreement.

ARTICLE 10

INDEMNIFICATION BY RFH

10.1 Indemnity. To the greatest extent allowed by law, RFH shall indemnify, defend (with counsel approved by City), and hold the Indemnitees harmless from and against any and all Claims that directly or indirectly, in whole or in part, are caused by, arise in connection with, result from, relate to, or are alleged to be caused by, arise in connection with, or relate to the construction, renovation, use, operation, or management of, the Property or the Improvements; any breach or default on the part of RFH in the performance of any covenant or agreement to be performed by RFH pursuant to this Agreement; any negligence of RFH or any of its agents, contractors, employees, sublessees or licensees; any accident, injury or damage caused to any person in or on the Property or Improvements; the furnishing of labor or materials by RFH; or the failure to comply with Applicable Laws. RFH’s indemnification obligations set forth in this Section shall not apply to Claims to the extent arising from the gross negligence or willful misconduct of the Indemnitees. RFH’s obligations under this Article shall survive the expiration or earlier termination of this Agreement.

ARTICLE 11

DAMAGE AND DESTRUCTION

11.1 Damage or Destruction. In the event of any damage to or destruction of the Improvements during the Term for which insurance coverage is required under this Agreement, RFH shall restore and rebuild the Improvements as nearly as possible to their condition immediately prior to such damage or destruction, subject to any restrictions imposed by changes in Applicable Law and the availability of insurance proceeds for such purpose.

11.2 Notice Required. In the event of material damage to or destruction of the Improvements, or any part thereof, RFH shall promptly give City notice of such occurrence and take all actions reasonably required to protect against hazards caused by such damage or destruction. For purposes of this Article 11 damage or destruction shall be deemed to be material if the estimated cost to repair equals or exceeds Ten Thousand Dollars ($10,000).

ARTICLE 12

REPAIRS, MAINTENANCE, ALTERATIONS AND NEW CONSTRUCTION

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Packet Pg. 255 Attachment: Exhibit A - Lease, Funding and Service Agreement (3830 : Lease, Funding and Service Agreement L&M Village) 13 12.1 Repairs and Maintenance. RFH covenants and agrees, throughout the Term, without cost to City, to take good care of the Property and the Improvements, and to keep the same in good order and condition. RFH shall promptly, at RFH’s own cost and expense, make all necessary repairs, interior and exterior, structural and nonstructural, and shall keep the Property and the Improvements in a well maintained, safe, clean and sanitary condition. RFH shall keep and maintain all portions of the Property and the Improvements, and the sidewalks adjoining the same, in a clean and orderly condition, free of accumulation of dirt, rubbish, and graffiti.

12.2 Changes and Alterations. RFH shall not during the Term make any changes or alterations in, to or of the Improvements without the prior written consent of City, which City may grant or deny in its sole and absolute discretion.

ARTICLE 13

ASSIGNMENT, TRANSFER, SUBLETTING

13.1 Restrictions on Transfer or Assignment by RFH. RFH shall not directly or indirectly, voluntarily involuntarily, or by operation of law, make or attempt any total or partial sale, transfer, conveyance, assignment, encumbrance, pledge, sublease or other conveyance (collectively, “Transfer”) all or any portion of its interest in the Property, the Improvements or this Agreement, without City’s prior written consent which may be granted or withheld in City’s sole and absolute discretion. Any such attempt to assign this Agreement without the City’s consent shall be null and void and shall confer no rights or privileges upon the purported assignee.

No Transfer will limit, diminish or otherwise relieve RFH of any liability described herein.

13.2 Effect of Transfer without City Consent. In the absence of specific written agreement by the City, no Transfer by RFH shall be deemed to relieve RFH or any other party from any obligation under this Agreement. It shall be an Event of Default hereunder entitling City to pursue remedies including without limitation, termination of this Agreement, if without the prior written approval of the City, RFH assigns or Transfers this Agreement, the Improvements, or RFH’s interest in the Property, or any part thereof or interest therein, or undergoes any other Transfer in violation of this Article.

13.3 Sale by City. Nothing contained in this Agreement shall be deemed in any way to limit, restrict or otherwise affect the right of City to sell, transfer, assign or convey all or any portion of the right, title and estate of City in the Property and in this Agreement; provided, however, that in each such instance any such sale, transfer, assignment or conveyance shall be subject to this Agreement, and RFH’s other rights arising out of this Agreement shall not be affected or disturbed in any way by any such sale, transfer, assignment or conveyance. Any other provision of this Agreement to the contrary notwithstanding, each covenant, agreement or obligation of City under this Agreement relating to the ownership or use of the Property is intended to and shall constitute a covenant running with the title to the Property and shall be binding upon the owner from time to time of the Property. At such time as City shall sell, transfer, assign or convey the entire right, title and estate of City in the Property and in this Agreement, all obligations and liability on the part of City arising under this Agreement after the effective date of such sale, transfer, assignment or conveyance shall terminate as to City, and thereupon all such liabilities and obligations shall be binding upon the transferee.

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Packet Pg. 256 Attachment: Exhibit A - Lease, Funding and Service Agreement (3830 : Lease, Funding and Service Agreement L&M Village) 14 ARTICLE 14

BREACHES, REMEDIES AND TERMINATION

14.1 Event of Default. RFH shall be in default under this Agreement upon the occurrence of any of the following (“Events of Default”):

14.1.1 Monetary Obligation. RFH at any time is in default hereunder as to any monetary obligation under this Agreement and such default continues for ten (10) days after RFH receives Notice of Breach (as defined below);

14.1.2 Insurance. RFH fails to obtain and maintain any policy of insurance required pursuant to this Agreement, and RFH fails to cure such default within five (5) days;

14.1.3 Failure to Comply with the Agreement. RFH fails to use, maintain or operate the Project as required herein, or otherwise fails to comply with the terms of this Agreement and RFH fails to cure such default within thirty (30) days.

14.2 Notice and Opportunity to Cure.

14.2.1 Notice of Breach. Unless expressly provided otherwise in this Agreement, no breach by a Party shall be deemed to have occurred under this Agreement unless another Party first delivers to the nonperforming Party a written request to perform or remedy (the “Notice of Breach”), stating clearly the nature of the obligation which such nonperforming Party has failed to perform, and stating the applicable period of time, if any, permitted to cure the default.

14.2.2 Failure to Give Notice of Breach. Failure to give, or delay in giving, Notice of Breach shall not constitute a waiver of any obligation, requirement or covenant required to be performed hereunder. Except as otherwise expressly provided in this Agreement, any failure or delay by either Party in asserting any rights and remedies as to any breach shall not operate as a waiver of any breach or of any such rights or remedies. Delay by either Party in asserting any of its rights and remedies shall not deprive such Party of the right to institute and maintain any action or proceeding which it may deem appropriate to protect, assert or enforce any such rights or remedies.

14.3 Remedies upon Default.

14.3.1 City’s Remedies. Upon the occurrence of any Event of Default and in addition to any and all other rights or remedies of City hereunder and/or provided by law, City shall have the right to terminate this Lease and/or RFH’s possessory rights hereunder, in accordance with applicable law to re-enter the Property and take possession thereof and of the Improvements, and except as otherwise provided herein, to remove all persons and property therefrom, and to store such property at RFH’s risk and for RFH’s account, and RFH shall have no further claim thereon or hereunder.

14.3.2 City Right to Continue Lease. In the event of any default under this Lease by RFH, this Lease shall not terminate except by an exercise of City’s right to terminate above, unless City, at City’s option, elects to terminate RFH’s right to possession or, at City’s

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Packet Pg. 257 Attachment: Exhibit A - Lease, Funding and Service Agreement (3830 : Lease, Funding and Service Agreement L&M Village) 15 further option, by the giving of any notice (including, without limitation, any notice preliminary or prerequisite to the bringing of legal proceedings in unlawful detainer) to terminate RFH’s right to possession. For so long as this Lease continues in effect, City may enforce all of City’s rights and remedies under this Lease.

14.3.3 Damages upon Termination. If City elects to re-enter the Property or take possession pursuant to legal proceedings or to any notice provided by law, this Lease shall thereupon terminate, and City may recover from RFH all other amounts necessary to compensate City for all the detriment proximately caused by RFH’s failure to perform its obligations under this Lease or which in the ordinary course of things are likely to result therefrom, including all costs (including attorneys’ fees) of repossession, removing persons or property from the Property, repairs, reletting and reasonable alterations of the Improvements in connection with reletting, if any.

14.4 Remedies Cumulative. No remedy in this Article shall be considered exclusive of any other remedy, but the same shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute, and every power and remedy given by this Lease may be exercised from time to time and as often as occasion may arise or as may be deemed expedient, subject to any limitations referred to hereinabove.

14.5 No Election of Remedies. The rights given in this Article to receive, collect or sue for any rent or rents, moneys or payments, or to enforce the terms, provisions and conditions of this Lease, or to prevent the breach or nonobservance thereof, or the exercise of any such right or of any other right or remedy hereunder or otherwise granted or arising, shall not in any way affect or impair or toll the right or power of City upon the conditions and subject to the provisions in this Lease to terminate RFH’s right of possession because of any default in or breach of any of the covenants, provisions or conditions of this Lease beyond the applicable cure period.

14.6 Survival of Obligations. Nothing herein shall be deemed to affect the right of City to indemnification for liability arising prior to the termination of the Lease for personal injuries or property damage or in connection with any other Claim, nor shall anything herein be deemed to affect the right of City to equitable relief where such relief is appropriate. No expiration or termination of the Lease by operation of law, or otherwise, and no repossession of the Property or any part thereof shall relieve RFH of its previously accrued liabilities and obligations hereunder, all of which shall survive such expiration, termination or repossession.

ARTICLE 15

GENERAL PROVISIONS

15.1 Quiet Enjoyment. City covenants and agrees that RFH upon paying the Rent and all other charges herein provided and observing and keeping all covenants, agreements and conditions of this Lease on its part to be observed and kept, shall quietly have and enjoy the Property during the Term of this Lease without hindrance by anyone claiming by or through City, subject to the requirements of the City’s Municipal Code, the approved operating plan for the Project and the exceptions, reservations and conditions of this Lease.

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Packet Pg. 258 Attachment: Exhibit A - Lease, Funding and Service Agreement (3830 : Lease, Funding and Service Agreement L&M Village) 16 15.2 City’s Right to Enter the Property. City and its agents may enter the Property or the Improvements from time to time with reasonable notice (and, upon RFH’s request, when accompanied by representative(s) of RFH), except for emergencies in which case no notice shall be required, to inspect the same, to post notices of no responsibility and similar notices, and to discharge RFH’s obligations hereunder when RFH has failed to do so within a reasonable time after written notice from City.

15.3 News Releases/Interviews. All RFH news releases, media interviews, testimony at hearings and public comment, related in any way to the Project or any matter addressed by this Agreement, shall be shared in advance with and approved by the City.

15.4 Enforced Delay; Extension of Times of Performance. The time for performance of provisions of this Agreement by either Party shall be extended for a period equal to the period of any delay directly affecting the Project or this Agreement which is caused by war, insurrection, strikes, lockouts, riots, widespread unavailability of construction materials, supplies and equipment or product shortages, floods, earthquakes, fires, casualties, acts of God, acts of a public enemy, epidemics, pandemics, quarantine restrictions, freight embargoes, lack of transportation, suits filed by unrelated third parties concerning or arising out of this Agreement or unseasonable weather conditions or similar events outside the performing party’s control impacting the Project, its location or the region in which the Project is located (“Force Majeure”). An extension of time for any of the above specified causes will be deemed granted only if written notice by the Party claiming such extension is sent to the other Party within thirty (30) calendar days from the commencement of the cause.

15.5 Severability. If any term or provision of this Lease or the application thereof to any person or circumstance shall, to any extent, be held by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Lease, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Lease shall be valid and be enforced to the fullest extent permitted by law.

15.6 Notices. Except as otherwise specified herein, all notices to be sent pursuant to this Lease shall be made in writing and sent to the Parties at their respective addresses specified below or to such other address as a Party may designate by written notice delivered to the other Party in accordance with this Section. All such notices shall be sent by: (a) personal delivery, in which case notice is effective upon delivery; (b) certified or registered mail, return receipt requested, in which case notice shall be deemed delivered on receipt if delivery is confirmed by a return receipt; or (c) nationally recognized overnight courier, with charges prepaid or charged to the sender’s account, in which case notice is effective on delivery if delivery is confirmed by the delivery service.

City: City of Healdsburg
401 Grove Street
Healdsburg, CA 95448
Attn: City Manager
With a copy to

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Packet Pg. 259 Attachment: Exhibit A - Lease, Funding and Service Agreement (3830 : Lease, Funding and Service Agreement L&M Village) 17 Samantha W. Zutler, City Attorney
City of Healdsburg
Healdsburg, CA 95448
Attn: City Attorney
RFH: Reach for Home
443 Hudson Street
Healdsburg, CA 95448
Attn: Chief Executive Officer

15.7 Binding on Successors. Subject to the restrictions on Transfers set forth herein, this Agreement shall bind and inure to the benefit of the Parties and their respective permitted successors and assigns. Any reference in this Agreement to a specifically named Party shall be deemed to apply to any permitted successor and assign of such Party who has acquired an interest in compliance with this Agreement or under law.

15.8 Governing Law; Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to principles of conflicts of laws. Any action to enforce or interpret this Agreement shall be filed and heard in the Superior Court of Sonoma County, California or in the Federal District Court for the Northern District of California.

15.9 No Brokers. City represents that it has not engaged any broker or agent to represent City in this transaction. RFH represents that it has not engaged any broker or agent to represent RFH in this transaction.

15.10 No Third-Party Beneficiaries. There shall be no third-party beneficiaries to this Lease.

15.11 Liability of Members and Employees of City. No member of the City and no other officer, elected official, employee or agent of the City shall be personally liable to RFH or otherwise in the event of any default or breach of the City, or for any amount which may become due to RFH or any successor in interest, or for any obligations directly or indirectly incurred under the terms of this Agreement.

15.12 Conflict of Interest. RFH covenants and represents that neither it, nor any officer or principal of its firm, has, or shall acquire any investment, income, business entity, interest in real property, or other interest, directly or indirectly, which would conflict in any manner with the interests of City, hinder RFH’s performance under this Agreement, or be affected in any manner or degree by performance of RFH’s obligations hereunder. RFH further covenants that in the performance of the Agreement, no person having any such interest shall be employed by it

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Packet Pg. 260 Attachment: Exhibit A - Lease, Funding and Service Agreement (3830 : Lease, Funding and Service Agreement L&M Village) 18 as an officer, employee, agent, or subcontractor without the express written consent of the City.

RFH agrees to at all times avoid conflicts of interest, or the appearance of any conflicts of interest, with the interests of the City in the performance of the Agreement. Further, RFH covenants and represents that it is not a designated employee within the meaning of the Political Reform Act because RFH: (a) will conduct research and arrive at conclusions with respect to its rendition of information, advice, recommendation, or counsel independent of the control and direction of the City or of any City official, other than normal contract monitoring; and (b) possesses no authority with respect to any City decision beyond the rendition of information, advice, recommendation, or counsel. (2 Cal. Code Regs. § 18700(a)(2).)

15.13 Disclaimer of Partnership, Lender/Borrower Relationship. The relationship of the Parties under this Lease is solely that of landlord and tenant, and it is expressly understood and agreed that City does not as a result of this Lease in any way nor for any purpose become a partner of RFH or a joint venturer with RFH in the conduct of RFH’s business or otherwise.

This Lease is not intended to, and shall not be construed to, create the relationship of principal and agent, partnership, joint venture, association, or seller and buyer as between City and RFH.

It is further expressly understood and agreed that this Lease is not intended to, and shall not be construed to create the relationship of lender and borrower, and City does not, solely as a result of this Lease, become a lender to RFH.

15.14 Entire Agreement; Amendments. This Agreement contains the entire agreement between the Parties with respect to the subject matter hereof. All previous correspondence, communications, discussions, agreements, understandings or proposals and acceptances thereof between the Parties or their representatives, whether oral or written, are deemed to have been integrated into and superseded by this Lease and are of no further force and effect except as expressly provided in this Lease. No amendment or modification hereof shall be effective for any purpose unless in writing signed by City and RFH.

15.15 No Waiver. Any waiver by a Party of any term or provision of this Agreement must be in writing. No waiver shall be implied from any delay or failure by a Party to take action on any breach or default hereunder or to pursue any remedy allowed under this Agreement or applicable law. No failure or delay by a Party at any time to require strict performance of any provision of this Agreement or to exercise any election contained herein or any right, power or remedy hereunder shall be construed as a waiver of any other provision or any succeeding breach of the same or any other provision hereof or a relinquishment for the future of such election.

15.16 Time is of the Essence; Calculation of Time Periods. Time is of the essence for each condition, term, obligation, and provision of this Agreement. Unless otherwise specified, in computing any period of time described in this Agreement, the day of the act or event after which the designated period of time begins to run is not to be included and the last day of the period so computed is to be included, unless such last day is not a business day, in which event the period shall run until the next business day. The final day of any such period shall be deemed to end at 5:00 p.m., local time at the Property. For purposes of this Agreement, a “business day” means a day that is not a Saturday, Sunday, a federal holiday, or a state holiday under the laws of California.

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Packet Pg. 261 Attachment: Exhibit A - Lease, Funding and Service Agreement (3830 : Lease, Funding and Service Agreement L&M Village) 19 15.17 Headings; Interpretation. The section headings and captions used herein are solely for convenience and shall not be used to interpret this Agreement. Except as otherwise expressly stated herein, any reference to a particular section or Article of this Agreement shall mean a reference to all subsections of such section or Article. The Parties acknowledge that this Agreement is the product of negotiation and compromise on the part of both Parties, and the Parties agree, that since both Parties have participated in the negotiation and drafting of this Agreement, this Agreement shall not be construed as if prepared by one of the Parties, but rather according to its fair meaning as a whole, as if both Parties had prepared it. All references in this Agreement to particular statutes, regulations, ordinances or resolutions of the United States, the State of California, or the City of Healdsburg shall be deemed to include the same statute, regulation, ordinance, or resolution as hereafter amended or

15.18 Action by the City. Except as may be otherwise specifically provided herein, whenever any approval, notice, direction, consent, or request by the City its capacity as City hereunder is required or permitted under this Lease, such action shall be in writing, and such action may be given, made or taken by the City Manager or by any person who shall have been designated by the City Manager, without further approval by the City Council.

15.19 Non-Liability of City and City Officials, Employees and Agents. No officer, official, employee or agent of the City shall be personally liable to RFH or any successor in interest, in the event of any default or breach by the City, or for any amount of money which may become due to RFH or its successor or for any obligation of City under this Agreement.

15.20 Counterparts. This Lease may be executed in one or more counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument.

SIGNATURES ON FOLLOWING PAGE

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Packet Pg. 262 Attachment: Exhibit A - Lease, Funding and Service Agreement (3830 : Lease, Funding and Service Agreement L&M Village) 20 IN WITNESS WHEREOF, City and RFH have entered into this Ground Lease as of the Effective Date.

CITY:

CITY OF HEALDSBURG,
a municipal corporation
By:

Print Name:____________________________
Title: City Manager
APPROVED AS TO FORM:

By:

Printed Name:_________________________
Title: City Attorney
REACH FOR HOME:

REACH FOR HOME
By:__________________________
Print Name:___________________
Title:________________________
ATTEST:

By:_________________________________
Printed Name: ________________________
Title: City Clerk

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Packet Pg. 263 Attachment: Exhibit A - Lease, Funding and Service Agreement (3830 : Lease, Funding and Service Agreement L&M Village) Exhibit
A
Exhibit A

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Packet Pg. 264 Attachment: Exhibit A - Lease, Funding and Service Agreement (3830 : Lease, Funding and Service Agreement L&M Village) Resolution No.

Exhibit B
Account Number Increase Amount Decrease Amount Description 107-2022-43205-00000 $ 321,093 L&M Village Operational Costs FY 22-23 Budget Amendment

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Packet Pg. 265 Attachment: Exhibit B - Budget Amendment (3830 : Lease, Funding and Service Agreement L&M Village)

TERMS OF SERVICE AND ANNUAL BUDGET
The City of Healdsburg, a municipal corporation (“City) and Reach for Home, a nonprofit public benefit corporation (“RFH”) hereby enter into and agree upon these Terms of Service and Annual Budget (“Terms of Service”), which have been prepared and executed pursuant to Section 7.2 of the Lease, Funding and Service Agreement between City and RFH dated November 21, 2022 (“Lease”). Collectively herein, the City and RFH are referred to as the “Parties”.

These Terms of Service are hereby incorporated into the Lease by reference.

PROJECT DESCRIPTION
The L&M Village is an interim housing project for individuals experiencing homelessness, located at 70 Healdsburg Avenue, City of Healdsburg, CA 95448 (“Project Site”). The project (“Project”) includes 22 units for adults, 100% of which are set aside for those experiencing chronic homelessness. The low-barrier, noncongregate interim housing program will provide a safe and supportive environment for those experiencing homelessness. The goal of the program is to support individuals experiencing homelessness in accessing permanent housing.

SERVICE TERM
These Terms of Service shall commence on November 21, 2022. Unless amended, or otherwise terminated as provided herein, these Terms of Service shall be in effect through June 21, 2025 (“Service Term”). Pursuant to Section 7.2 of the Lease, City and RFH shall meet and confer on changes and amendments to these Terms of Service and execute an annual update to the Terms of Service. Subsequent annual updates shall be for the City’s fiscal year of July 1 through June 30.

COMPENSATION
The budget and compensation for the Service Term is set forth in Attachment 1, incorporated herein by reference. As set forth in Section 7.3.3 of the Lease, RFH shall not undertake any work in excess of the amounts set forth herein. In no event shall the amount City pays RFH and and/or funds for RFH programs exceed nine hundred and seventy thousand nine hundred and twenty ($970,920) during the first year of the Service Term. Payments to RFH, including reimbursable expenses and payments to fund RFH’s interim housing service and programs and maintenance and management of the Project, shall be in accordance with Attachment 1. City and RFH will meet and confer on each year of the Service Term to adjust the budget.

OUTSIDE FUNDING AND OTHER NON HOMEKEY REVENUE
RFH and City agree that outside funding received from private foundations, grants, other governmental revenue, or any other funding source that is dedicated to the L&M Village shall be utilized in the operations or capital improvements of the L&M Village. Both RFH and City agree to meet and confer prior to either applying for additional funding for the L&M Village. RFH and City will meet and confer during each year of the Service Term to make any requisite adjustments to the budget based upon outside funding received. If outside funding is received, and to the extent possible given any restrictions on use on such outside funding, RFH and City agree to place an amount of City funding received through these Terms of Service, in an amount equal to the outside funding received, in a reserve for future operations, if such funding does not have restrictions for such use.

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Packet Pg. 266 Attachment: Terms of Service and Annual Budget [Revision 1] (3830 : Lease, Funding and Service Agreement L&M Village)

PROJECT COORDINATION
The City Manager or his/her designee shall represent City for all purposes under these Terms of Service.

The City’s Housing Director is hereby designated as the Project Manager. The Project Manager shall supervise the progress and execution of these Terms of Service.

REFERRAL AND PRIORITIZATION PROCESS
RFH shall follow the Program Participant Selection Plan, as approved by the City, County, and State. 100% of the units in the Project will be set-aside for chronically homeless individuals.

SERVICE LOCATION
Services shall be delivered at the Project Site, 70 Healdsburg Avenue, City of Healdsburg, CA 95448. Case management and staff responsible for screening and enrollment will conduct meeting with participants off-site or “in the field” on a case-by-case basis.

DATA TRACKING AND REPORTING
RFH staff will track and report the following data, in addition to any data required by the Project Homekey Program, to the City on an annual basis:
• Exit destination of individuals who exit to a destination that is not permanent housing; • Average length of stay in days for individuals exiting to a permanent housing destination; • Average length of stay in days for individuals exiting to a destination that is not permanent housing;
• Average length of time in days for individuals who were homeless prior to becoming housed; • Number of individuals who re-enter homelessness after exiting the interim housing program into permanent housing;
• Veterans served;
• Income (by area median income);
• Race and ethnicity of all Program participants; and
• Program participants’ geographic location prior to entering the Program.

In addition to the above, RFH will report the number of individuals served, income, demographics, ethnicity, outcome performance, significant changes in program staffing, and anecdotal descriptions of services provided by the program quarterly to the Project Manager, using the City’s provided template, starting November 21, 2022.

Additionally, RFH staff will provide the Project Manager with a weekly “snapshot” report, which will include:
• Current occupancy of the Project including number of individuals enrolled in the program and number of units currently filled;
• The number of people who have exited Year to Date (YTD); • Of those exited YTD, the number who exited into housing and number that exited to a destination that is not permanent housing; and
• Any Project-related additional information requested by City.

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Packet Pg. 267 Attachment: Terms of Service and Annual Budget [Revision 1] (3830 : Lease, Funding and Service Agreement L&M Village)

PROGRAM REVIEW
RFH staff and the Project Manager will meet as needed to review and evaluate Project status and compliance with these Terms and Conditions.

FEDERAL HOMELESS MANAGEMENT INFORMATION SYSTEM
RFH staff will input Project participant data into the Federal Homeless Management Information System (HMIS) following all relevant data quality standards.

COUNTY AND STATE REQUIREMENTS
RFH will operate the program as described in the Homekey Funding Agreement between the City, Reach For Home, Burbank Housing and the State of California, executed on February 6, 2022.

CORE SERVICES
Eligibility and Screening & Enrollment
RFH staff will manage the wait list for entry into a housing unit in the L&M Village, obtain documentation necessary to demonstrate eligibility for the program, and coordinate participants’ enrollment and moveins.

Case Management
RFH staff will provide case management support to participants designed to help participants access permanent housing. Case management support will include the development of an individualized housing plan for each participant.

Exit Coordination
In the event a participant is required to leave the program, RFH staff will provide emergency shelter resource information to that participant upon exit. Whenever possible, RFH staff will coordinate transportation for the participant to their next living situation.

Project Site Supervision
RFH staff is responsible for the day-to-day site operation. RFH staff will respond to participant needs and facilitate the availability of on-site amenities such as showers, laundry and food services, to ensure that participants’ essential needs are met. Staff will also ensure participant safety through regular check-ins and monitoring of the Project Site. Security is required to be onsite as described in Attachment 1.

Community Engagement
RFH staff is responsible for bringing additional support resources to the Project Site and developing a sense of community for the participants. Fostering relationships and developing partnerships to recruit service providers to the Project Site and providing input and feedback opportunity from neighboring businesses and residents will be a priority. On a quarterly basis, and additionally as needed, RFH and City will coordinate an outreach meeting with surrounding neighbors.

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Packet Pg. 268 Attachment: Terms of Service and Annual Budget [Revision 1] (3830 : Lease, Funding and Service Agreement L&M Village) Project Site Safety and Cleanliness
RFH will maintain the Project Site in clean and orderly condition and ensure that any activities that may result in neighborhood disruption will be minimized and consistent with City regulations.

INSPECTION
City shall be permitted to inspect the Project Site to ensure compliance with the Lease and these Terms and Conditions. Any improvements to the Project Site shall be subject to the Project Manager’s inspection and approval.

SIGNATURES ON NEXT PAGE

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Packet Pg. 269 Attachment: Terms of Service and Annual Budget [Revision 1] (3830 : Lease, Funding and Service Agreement L&M Village) CITY OF HEALDSBURG REACH FOR HOME:

By: _____________________________ By: __________________________________ Jeffrey Kay, City Manager Margaret Sluyk, Executive Director

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Packet Pg. 270 Attachment: Terms of Service and Annual Budget [Revision 1] (3830 : Lease, Funding and Service Agreement L&M Village) ATTACHMENT 1
Reach for Home
L&M Village
Budget for Meals
Estimated Meals Served - 11/1/2021 - 10/31/2022 7,300
Cost per meal $15.00
# of people at L&M Village 22
Meals per day per person
1 Total meals per day 22
Total meals per year 8,030
Annual cost of meals $120,450
Budget for Security
24 hours for 90 days $100,000
Overnight 9 months $110,000
Cost of Security per year $210,000
Budget for L&M Village Case Manager
FTE Senior Case Manager
1 Hourly Rate $32.00
Annual Compensation $66,560
Taxes & Benefits (T&B) - Rate 23.00%
Taxes & Benefits (T&B) $15,309
Annual Salary & Wages + T&B $81,869
FTE (Case Manager I)
1 Hourly Rate $28.00
Annual Compensation $58,240
Taxes & Benefits (T&B) - Rate 23.00%
Taxes & Benefits (T&B) $13,395
Annual Salary & Wages + T&B $71,635
FTE (Case Manager I)
1 8.C.e
Packet Pg. 271 Attachment: Terms of Service and Annual Budget [Revision 1] (3830 : Lease, Funding and Service Agreement L&M Village) Hourly Rate $28.00
Annual Compensation $58,240
Taxes & Benefits (T&B) - Rate 23.00%
Taxes & Benefits (T&B) $13,395
Annual Salary & Wages + T&B $71,635
FTE (Case Manager I) with Mental Health Credentials 1
Hourly Rate $30.00
Annual Compensation $62,400
Taxes & Benefits (T&B) - Rate 23.00%
Taxes & Benefits (T&B) $14,352
Annual Salary & Wages + T&B $81,869
Facilities 1
Hourly Rate $31.00
Annual Compensation $64,480
Taxes & Benefits (T&B) - Rate 23.00%
Taxes & Benefits (T&B) $14,830
Annual Salary & Wages + T&B $79,310
Property Management 1
Hourly Rate $30.00
Annual Compensation $62,400
Taxes & Benefits (T&B) - Rate 23.00%
Taxes & Benefits (T&B) $14,352
Annual Salary & Wages + T&B $76,752
Total Salary & Wages + T&B $463,070
Insurance $5,000
Office supplies $2,400
Electricity, Water $25,000
Rehabilitative Activities for Participants (garden, art therapy, etc..) $10,000
Transportation for participants $5,000
Maintenance and Repair $15,000
Miscellaneous $15,000
Estimated Non-Payroll Budget $77,400

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Packet Pg. 272 Attachment: Terms of Service and Annual Budget [Revision 1] (3830 : Lease, Funding and Service Agreement L&M Village) Budget Summary Request
Meals $120,450
Security $210,000
L&M Village Staffing Budget $463,070
Non-Payroll $77,400
Admin OH $100,000
Total Preliminary Annual Budget $970,920
Total Preliminary Monthly Budget $80,910

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Packet Pg. 273 Attachment: Terms of Service and Annual Budget [Revision 1] (3830 : Lease, Funding and Service Agreement L&M Village)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: November 21, 2022
SUBJECT: Amendment of Contract with DRM Buildings for Rehabilitation of the L&M Village to Increase the Contract Contingency by 6% in the Amount of $80,926
PREPARED BY: Griselda Villarreal, Administrative Analyst II STRATEGIC INITIATIVE(S):

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

Adopt a Resolution increasing the contract contingency for the rehabilitation of the L&M Village, amending the Fiscal Year 2022-2023 budget increasing appropriations to the General Capital Replacement Fund from the L&M Operational Fund, and authorizing the City Manager to take the necessary actions to effectuate this action.

COMMUNITY ENGAGEMENT/OUTREACH:

The budget amendment will be heard during a Regular City Council meeting wherein a forum for public comment and participation is provided. To date, City staff and the L&M Project Partners have actively engaged in outreach for the greater L&M Village Project and Project Homekey. City Council has held a workshop on local and regional efforts to address homelessness. City staff conducted several community meetings. In conjunction with Reach for Home, the City held multiple joint meetings with businesses, stakeholders, neighbors, and those experiencing homelessness. City staff and Reach for Home will continue to keep open communication with the neighbors of the project and the community at large with quarterly updates and as information is requested or needed.

BACKGROUND:

In July of 2020, the State of California launched a $750 million program called “Project Homekey,” with the aim of helping local communities rapidly acquire hotels, motels, commercial buildings, and other creative housing types to rapidly house people experiencing homelessness during the COVID-19 pandemic. Project Homekey resulted in 8,264 individuals housed across 120 unique properties

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Given the success of Project Homekey, the State of California budgeted an additional $1.45 billion for Fiscal Year (FY) 2021-2022. Of the $1.45 billion in Homekey funding, $1.2 billion is derived from the Coronavirus State Fiscal Recovery Fund (CSFRF) established by the American Rescue Plan Act (ARPA) of 2021 and $250 million is State General Fund.

On October 18, 2021, the City Council authorized City staff, in collaboration with Reach for Home and Burbank Housing to apply for the FY 2021-2022 Project Homekey program for the acquisition by the City of the L&M Motel for use as interim housing for those experiencing homelessness.

On October 26, 2021, the County of Sonoma adopted Resolution 21-0431 which authorized a Project Homekey Round-2 (PHK-2) Supportive Services Funding Framework and Early Capital Match Program and approved $950,000 in Capital Match funding and $3,388,660 in operating subsidy for the L&M Village.

On October 27, 2021, the City, Reach and Burbank submitted an application to the State of California for $5,720,000 in Project Homekey capital funding and $1,328,800 in operating subsidy for a total of $7,048,800 in State funds.

On December 21, 2021, the State of California announced that the City, Reach for Home and Burbank were successful in their application for Project Homekey funding and conditionally awarded the requested funding pending the execution of the State’s Standard Agreements.

On February 16, 2022, the City executed a State Standard Agreement with the State of California and on March 23, 2022, the City received the PHK-2 program funds for both capital and operational costs.

On May 3, 2022, the City closed escrow on the L&M Motel and the property is now under City ownership.

On June 21, 2022, the City Council approved a Professional Services Agreement with Burbank Housing Development Corporation for the design and construction of the L&M Village.

In June of 2022, the City of Healdsburg requested an extension for the PHK-2 occupancy deadline to restore the time between the date of award of funding and the time funds were actually received by the City. This extension was approved and extended the City’s occupancy deadline from August 21, 2022, to November 21, 2022 and preserved the City’s ability to receive an early occupancy bonus of $220,000.

On August 1, 2022, the City passed and adopted Resolution 112-2022 awarding the construction contract to DMR Builders of Santa Rosa for the rehabilitation of the L&M Village not to exceed $1,348,776 and approving a 10% contract contingency in the amount of $134,878 for related change orders.

Construction on the project began in August of 2022 and the L&M Village will commence operations on November 21, 2022.

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DISCUSSION/ANALYSIS:

Staff is recommending that the City Council adopt a resolution to: 1) increase contract contingency for the rehabilitation of the L&M Village; 2) amend the Fiscal Year 2022-2023 budget increasing appropriations to the General Capital Replacement Fund from the L&M operational fund, and 3) authorize the City Manager to take the necessary actions to effectuate this action.

Construction commenced earlier this year on the L&M Village improvements, as required by the PHK-2 agreements and City standards. The major improvements included the installation of fire alerting and suppression systems, ADA accessibility pathways and improvements, the installation of sidewalks and replacement of sewer lines, and the renovation of an existing twobedroom home into four additional units, among others.

The L&M Motel was built in the early 1940s and improved upon incrementally during the course of its operation and ownership over the past 80 years. As staff and its program partners commenced work on the L&M Village, several unforeseen costs and improvements that are necessary to open the project have nearly exhausted the 10% contingency for the project. The proposed budget amendment would provide for the completion of the project in order to meet PHK-2 deadlines.

The items that required staff to utilize the project’s contingency funding are directly related to:
• Repairing dry rot;
• Demolition and removal of hazardous materials from the site found during construction; • Adding a fire hydrant to meet fire hose pull standards; • Modification of structural plans to meet code requirements and the related labor and materials;
• Addition of sidewalks adjacent to the project;
• Repair of the parking lot to prevent water from ponding in ADA pathways; • Replacement of non-energy efficient windows that were damaged; and • Conducting unscheduled night work to minimize the impact of water shut-offs to neighbors and neighboring businesses.

The sidewalk construction, in particular, is a component of the project that was included largely to provide benefit to the larger areas surrounding the L&M Village and to take advantage of the opportunity presented by the construction work to address a shortage of safe pedestrian infrastructure on Healdsburg Avenue and Exchange Avenue. Combined with prevailing wages and the rising costs of construction, the project’s contingency was not sufficient to absorb these change orders. Should the Council approve this action, the total contract cost from DMR builders, including the change orders, will remain below the next responsible bidder received by the City during the public bid process.

It is important to note that staff and its partners have been working diligently to preserve the City’s ability to receive a $220,000 early occupancy bonus from the State of California. The PHK-2 program provides a bonus to jurisdictions that can open their housing program with 8

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months of the Department announcing their award to that jurisdiction.

This timeline provided the City and its partners with 166 working days to purchase and take possession of the L&M Motel, design and engineer the improvements, hire a construction management team, receive approvals and permits, secure additional funding contracts from the County, prepare a request for bids, award a bid, make the improvements to the site, and stand-up a completely new interim housing program.

ENVIRONMENTAL STEWARDSHIP:

The approval of this item does not have a direct correlation to environmental stewardship.

ALTERNATIVES:

The City Council may choose not to approve this amendment, in which staff would seek further direction from the City Council.

FISCAL IMPACT:

On August 1, 2022, council approved a construction contract with DMR Builders for a total not to exceed of $1,348,776 and authorized City Manager to execute change orders up to 10% of the contract total or $134,878. The proposed action would increase the contract contingency amount by 6% and authorize City Manager to execute an additional $80,926 of change orders bringing the total contract value to $1,564,580.

To facilitate the additional construction costs, staff propose amending the fiscal year 2022-2023 budget by increasing appropriations for the L&M Village Rehabilitation Project in the General Capital Replacement Fund and authorizing a funding transfer from the L&M Village Operational Fund in the amount of $80,926. The proposed action will not impact other City funds.

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

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CITY OF HEALDSBURG
RESOLUTION NO. ___-2022

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG INCREASING CONTRACT CONTINGENCY
FOR THE REHABILITATION OF THE L&M VILLAGE;
AMENDING THE FISCAL YEAR 2022-23 BUDGET

INCREASING APPROPRIATIONS TO THE L&M VILLAGE

CAPITAL FUND FROM THE L&M VILLAGE

OPERATIONAL FUND, AND AUTHORIZING THE CITY

MANAGER TO TAKE THE NECESSARY ACTIONS TO

EFFECTUATE THIS ACTION
WHEREAS, the City Council adopted the 2022-24 biennial budget; and WHEREAS, the Department of Housing and Community Development (“Department”) has issued a Notice of Funding Availability, dated September 9, 2021 (“NOFA”), for the Homekey Program (“Homekey” or “Program”). The Department has issued the NOFA for Homekey grant funds pursuant to Health and Safety Code section 50675.1.3 (Assembly Bill No. 140 (2021-2022 Reg. Sess.), § 20.); and
WHEREAS, On October 18, 2021, the City Council authorized City staff, in collaboration with Reach for Home (Reach) and Burbank Housing (Burbank), to apply for the FY 2021-2022 Project Homekey program for the acquisition of the L&M Motel, 70 Healdsburg Avenue, Healdsburg, California (APN 002-304-009) (“Property”), for use as interim housing for those experiencing homelessness; and
WHEREAS, On October 27, 2021, the City, Reach and Burbank submitted an application to the State of California for $5,720,000 in Project Homekey capital funding and $1,328,800 in operating subsidy for a total of $7,048,800 in State funds; and WHEREAS, On December 21, 2021, the State of California announced that the City, Reach and Burbank were successful in their application for Project Homekey funding and have been conditionally awarded the requested funding pending the execution of the State’s Standard Agreements; and
WHEREAS, on January 18, 2022, the City Council accepted the Project Homekey Grant funding and authorized the City Manager to enter a contract with the State of California Department of Housing and Community Development (Department) to receive program funding for the L&M Village; and
WHEREAS, on February 7, 2022, the City Council approved the creation of a sub-fund of the General Fund for the L&M Village made up of special revenue (state and local grants) to be spent for the specific purpose of the L&M Village; and
WHEREAS, on March 23, 2022, the City received funding from the Department for the acquisition and operation of the L&M Village; and

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Packet Pg. 278 Attachment: Resolution (3831 : L&M Village Project Construction Contract Amendment) Resolution No. _____-2022