Agenda packet — Healdsburg City Council, December 5, 2022 (part 2 of 2)

PASSED, APPROVED AND ADOPTED this 5
th
day of December 5, 2022 by the following vote:

AYES: Councilmembers: ( )
NOES: Councilmembers: ( )
ABSENT: Councilmembers: ( )
ABSTAINING: Councilmembers: ( )
SO ORDERED: ATTEST:

Osvaldo Jimenez, Mayor Raina Allan, City Clerk

9.B.a
Packet Pg. 128 Attachment: Resolution (3806 : 2023 Waste Rate Adjustment) Healdsburg RRI - Rates Effective 1.1.23 -Adjusted 11.21.22 - Exhibit I-Rates 2023 Exhibit I: Schedule of Approved Rates - 2023 with SB1383

A B C D E
Service Item Collection Disposal Compostable Retroactive Retroactive Final New Rate
(w/SB1383)
Component Component Component Disposal
Component
Compostable
Component 1/1/2023
Includes SB1383 0.8% 5.4%
Residential Cart Collection
20-Gallon Cart $14.04 $4.12 $4.18 $0.02 $0.16 $22.52
32-Gallon Cart $20.63 $4.78 $4.18 $0.03 $0.16 $29.78
64-Gallon Cart $31.31 $6.92 $4.18 $0.04 $0.16 $42.61
96-Gallon Cart $41.04 $12.19 $4.18 $0.08 $0.16 $57.65
Commercial Cart and Bin Collection
20-Gallon Container $22.85 $6.59 $4.18 $0.04 $0.16 $33.82 32-Gallon Cart $28.53 $9.88 $4.18 $0.06 $0.16 $42.81
64-Gallon Cart $40.39 $21.41 $4.18 $0.12 $0.16 $66.26
96-Gallon Cart
1 pickup per week $45.39 $31.30 $4.18 $0.18 $0.16 $81.21 2 pickup per week $91.39 $62.59 $4.18 $0.37 $0.16 $158.69 3 pickup per week $137.39 $93.90 $4.18 $0.56 $0.16 $236.19 4 pickup per week $183.40 $125.19 $4.18 $0.74 $0.16 $313.67 5 pickup per week $229.35 $156.49 $4.18 $0.93 $0.16 $391.11 6 pickup per week $275.31 $187.78 $4.18 $1.11 $0.16 $468.54 1 Cubic Yards
1 pickup per week $170.24 $71.33 $4.18 $0.42 $0.16 $246.33 2 pickup per week $324.11 $142.75 $4.18 $0.85 $0.16 $472.05 3 pickup per week $428.18 $214.12 $4.18 $1.27 $0.16 $647.91 4 pickup per week $516.48 $285.50 $4.18 $1.69 $0.16 $808.01 5 pickup per week $541.14 $356.87 $4.18 $2.11 $0.16 $904.46

1.5 Cubic Yards
1 pickup per week $264.44 $107.07 $4.18 $0.64 $0.16 $376.49 2 pickup per week $481.02 $214.12 $4.18 $1.27 $0.16 $700.75 3 pickup per week $697.33 $321.19 $4.18 $1.90 $0.16 $1,024.76 4 pickup per week $914.00 $428.25 $4.18 $2.54 $0.16 $1,349.13 5 pickup per week $1,130.85 $535.31 $4.18 $3.17 $0.16 $1,673.67 6 pickup per week $1,347.99 $642.37 $4.18 $3.80 $0.16 $1,998.50 2 Cubic Yards
1 pickup per week $324.04 $142.75 $4.18 $0.85 $0.16 $471.98 2 pickup per week $551.69 $285.50 $4.18 $1.69 $0.16 $843.22 3 pickup per week $779.57 $428.25 $4.18 $2.54 $0.16 $1,214.70 4 pickup per week $1,007.11 $571.00 $4.18 $3.38 $0.16 $1,585.83 5 pickup per week $1,234.76 $713.74 $4.18 $4.22 $0.16 $1,957.06 6 pickup per week $1,462.75 $856.49 $4.18 $5.07 $0.16 $2,328.65 3 Cubic Yards
1 pickup per week $428.21 $214.12 $4.18 $1.27 $0.16 $647.94 2 pickup per week $742.89 $428.25 $4.18 $2.54 $0.16 $1,178.02 3 pickup per week $1,045.26 $642.37 $4.18 $3.80 $0.16 $1,695.77 4 pickup per week $1,342.00 $856.49 $4.18 $5.07 $0.16 $2,207.90 5 pickup per week $1,641.67 $1,070.62 $4.18 $6.34 $0.16 $2,722.97 6 pickup per week $1,940.89 $1,284.74 $4.18 $7.60 $0.16 $3,237.57 4 Cubic Yards
1 pickup per week $516.48 $285.50 $4.18 $1.69 $0.16 $808.01 2 pickup per week $817.30 $571.00 $4.18 $3.38 $0.16 $1,396.02 3 pickup per week $1,118.54 $856.49 $4.18 $5.07 $0.16 $1,984.44 4 pickup per week $1,419.09 $1,141.99 $4.18 $6.76 $0.16 $2,572.18 5 pickup per week $1,720.04 $1,427.49 $4.18 $8.45 $0.16 $3,160.32 6 pickup per week $2,020.17 $1,712.97 $4.18 $10.14 $0.16 $3,747.62 6 Cubic Yards
1 pickup per week $596.34 $428.25 $4.18 $2.54 $0.16 $1,031.47 2 pickup per week $998.81 $856.49 $4.18 $5.07 $0.16 $1,864.71 3 pickup per week $1,210.31 $1,284.74 $4.18 $7.60 $0.16 $2,506.99 4 pickup per week $1,556.79 $1,712.97 $4.18 $10.14 $0.16 $3,284.24 5 pickup per week $2,038.66 $2,141.22 $4.18 $12.67 $0.16 $4,196.89 6 pickup per week $2,404.41 $2,569.64 $4.18 $15.21 $0.16 $4,993.60 Submitted: September 30, 2022
Updated: November 21, 2022 Page 4 of 7

9.B.b
Packet Pg. 129 Attachment: Schedule of Approved Rates (3806 : 2023 Waste Rate Adjustment) Healdsburg RRI - Rates Effective 1.1.23 -Adjusted 11.21.22 - Exhibit I-Rates 2023 Exhibit I: Schedule of Approved Rates - 2023 with SB1383

A B C D E
Service Item Collection Disposal Compostable Retroactive Retroactive Final New Rate
(w/SB1383)
Component Component Component Disposal
Component
Compostable
Component 1/1/2023
Other Services
Backyard Charge $60.73 $60.73
Side yard for fee service $60.73 $60.73
Key charges $24.29 $24.29
Enclosure charges $60.73 $60.73
Gate service Charges $24.29 $24.29
Long Walk Charges $60.73 $60.73
Off Road Charge $19.70 $19.70
Commercial Overage per cubic yard $90.33 $16.47 $0.09 $106.89 4 yd Cleanup Bin (3 Days) $355.04 $65.89 $0.39 $421.32
Cart $47.71 $47.71
Bin--fee plus per yd. charge (below) $44.44 $44.44
per yard for bin contamination $89.66 $89.66
$119.24 $119.24
Replacement carts after 1/year $185.99 $185.99
Replacement bin after 1/year $314.78 $314.78
$39.35 $39.35
$59.60 $59.60
$41.96 $4.18 $0.16 $46.30
Extra Pickups
20-Gallon Cart $31.40 $0.95 $0.00 $32.35
32-Gallon Cart $31.99 $1.11 $0.01 $33.11
64-Gallon Cart $32.47 $1.11 $0.01 $33.59
96-Gallon Cart $33.27 $2.82 $0.01 $36.10
Extra 1 yd Pickup $85.01 $16.47 $0.09 $101.57

1.5 Cubic Yard Bin $124.30 $24.71 $0.15 $149.16
2 Cubic Yard Bin $134.31 $32.95 $0.20 $167.46
3 Cubic Yard Bin $162.60 $49.41 $0.29 $212.30
4 Cubic Yard Bin $167.31 $65.89 $0.39 $233.59
6 Cubic Yard Bin $183.20 $98.84 $0.59 $282.63
20 yard or less $538.16 $329.44 $1.95 $869.55
30 yard & 40 yard $598.94 $329.44 $1.95 $930.33
Excess Disposal/Ton $164.72 $164.72
20 yard or less $538.16 $329.44 $1.95 $869.55
30 yard & 40 yard $598.94 $329.44 $1.95 $930.33
Wood (Processing Billed Separately)
20 yard or less $257.55 $257.55
30 yard & 40 yard $278.99 $278.99
Brush (Processing Billed Separately)
20 yard or less $257.55 $257.55
30 yard & 40 yard $278.99 $278.99
Recycling
20 yard or less $278.99 $278.99
30 yard & 40 yard $278.99 $278.99
Contamination Recycle, yard waste or food
scrap
Cleaning fee for food scrap bin/cart in excess
of 1 per year
Same day return trip for blocked or not set at
curb bin or cart
Fee to reinstate account closed for
nonpayment
Additional Recycle or Yard Waste Cart after
2 C&D Debris Container >10% recyclables (2
tons charges delivered, excess billed)
Commercial Solid Waste Debris Box Service
(includes 2 tons, excess billed)
Submitted: September 30, 2022
Updated: November 21, 2022 Page 5 of 7

9.B.b
Packet Pg. 130 Attachment: Schedule of Approved Rates (3806 : 2023 Waste Rate Adjustment) Healdsburg RRI - Rates Effective 1.1.23 -Adjusted 11.21.22 - Exhibit I-Rates 2023 Exhibit I: Schedule of Approved Rates - 2023 with SB1383

A B C D E
Service Item Collection Disposal Compostable Retroactive Retroactive Final New Rate
(w/SB1383)
Component Component Component Disposal
Component
Compostable
Component 1/1/2023
20 yard or less $557.99 $557.99
20 yard or less $278.99 $278.99
Compactor MSW Solid Waste Collection
2 yard 1 x week $529.20 $298.02 $4.18 $1.77 $0.16 $833.33 2 yard 4 x week $2,123.91 $1,192.06 $16.72 $7.05 $0.64 $3,340.38 3 yard 1 x week $603.29 $406.38 $4.18 $2.40 $0.16 $1,016.41 3 yard 2 x week $1,208.88 $812.77 $8.36 $4.81 $0.32 $2,035.14 3 yard 3 x week $1,812.39 $1,219.15 $12.54 $7.21 $0.48 $3,051.77 3 yard 4 x week $2,413.12 $1,625.54 $16.72 $9.62 $0.64 $4,065.64 3 yard 5 x week $3,016.39 $2,031.94 $20.90 $12.03 $0.80 $5,082.06 Service Fee (Disposal Billed Separately)
20 Yard or Less Compactor $486.00 $486.00
25 Yard Compactor $606.69 $606.69
30 Yard Compactor $728.98 $728.98
Debris Box Compactor Services
$187.33 $187.33
Compactor Cleaning $562.00 $562.00
$187.33 $187.33
$187.33 $187.33
Furniture
Twin $106.06 $35.47 $0.21 $141.74
Double / Full $106.06 $35.47 $0.21 $141.74
Queen $106.06 $35.47 $0.21 $141.74
King $106.06 $35.47 $0.21 $141.74
Bed Frame $93.42 $14.19 $0.08 $107.69
Couch (under 6 feet) $93.42 $14.19 $0.08 $107.69
Upholstered Chairs $93.42 $14.19 $0.08 $107.69
Wooden Chairs $93.42 $14.19 $0.08 $107.69
Dinette Tables $93.42 $14.19 $0.08 $107.69
Household
Rug (9x12) $93.42 $14.19 $0.08 $107.69
Vacuum $93.42 $14.19 $0.08 $107.69
Appliances
Water Heater 35 Gallon $93.42 $14.19 $0.08 $107.69
Water Heater 40-50 Gallon $93.42 $14.19 $0.08 $107.69
Water Heater 100 Gallon $93.42 $14.19 $0.08 $107.69
Oven $97.63 $21.28 $0.13 $119.04
Oven (Stove Top) $97.63 $21.28 $0.13 $119.04
Oven-Stove Unit $97.63 $21.28 $0.13 $119.04
Microwave $93.42 $14.19 $0.08 $107.69
Garbage Compactor $93.42 $14.19 $0.08 $107.69
Dishwasher $93.42 $14.19 $0.08 $107.69
Fridge $106.06 $35.47 $0.21 $141.74
Freezer $106.06 $35.47 $0.21 $141.74
Air Conditioner $106.06 $35.47 $0.21 $141.74
Freon Extraction (for debris box collection,
included bulky item collection, and paid bulky
collection)
$40.00
Washing Machine $97.63 $21.28 $0.13 $119.04
Dryer $97.63 $21.28 $0.13 $119.04
Trip Charge 10+yd
(Empty Bin; Inaccessible Bin)
Monthly Box Rental
(>=10yds; if no pick up in month)
Relocation Fee
(if required on non-service day)
Concrete (1/2 full box allowed - Disposal
Billed Separately)
Dirt (1/2 full box allowed - Disposal Billed
Separately)
Submitted: September 30, 2022
Updated: November 21, 2022 Page 6 of 7

9.B.b
Packet Pg. 131 Attachment: Schedule of Approved Rates (3806 : 2023 Waste Rate Adjustment) Healdsburg RRI - Rates Effective 1.1.23 -Adjusted 11.21.22 - Exhibit I-Rates 2023 Exhibit I: Schedule of Approved Rates - 2023 with SB1383

A B C D E
Service Item Collection Disposal Compostable Retroactive Retroactive Final New Rate
(w/SB1383)
Component Component Component Disposal
Component
Compostable
Component 1/1/2023
Building Materials
Household Doors $93.42 $14.19 $0.08 $107.69
Sink $93.42 $14.19 $0.08 $107.69
Toilets $93.42 $14.19 $0.08 $107.69
Windows (less than 3' by 4' only) $93.42 $14.19 $0.08 $107.69 Windows larger than 3x4 $138.24 $14.19 $0.08 $152.51
Yard & Garden
Gas Mower (must be drained of gas &
oil) $93.42 $14.19 $0.08 $107.69
BBQ $93.42 $14.19 $0.08 $107.69
Ping Pong Table $93.42 $14.19 $0.08 $107.69
Exercise Bike $93.42 $14.19 $0.08 $107.69
Swing Sets $93.42 $14.19 $0.08 $107.69
Bike $93.42 $14.19 $0.08 $107.69
Electronics
Computer Monitor or Computer
Tower/CPU $93.21 $13.92 $0.08 $107.21
Television $93.21 $13.92 $0.08 $107.21
Large Screen Television $114.47 $13.92 $0.08 $128.47
Console Television $114.47 $13.92 $0.08 $128.47
Stereo Equipment $93.21 $13.92 $0.08 $107.21
VCR/Home Entertainment $93.21 $13.92 $0.08 $107.21
Printer / Fax $93.21 $13.92 $0.08 $107.21
Copier (table top) $93.21 $13.92 $0.08 $107.21
Copier (small stand alone) $146.75 $104.44 $0.62 $251.81 Oversize Office Equipment $118.03 Price Varies $118.03
Car Parts
Engine Block (completely drained of
fluids) $93.42 $14.19 $0.08 $107.69
Car Seats $93.42 $14.19 $0.08 $107.69
Bumper / Grill etc. $93.42 $14.19 $0.08 $107.69
Passenger Vehicle Tire $93.42 $14.19 $0.08 $107.69
Truck or Tractor Tire Price Varies
Additional Items
Items under 60 lbs. $93.42 $14.19 $0.08 $107.69
Items over 60 lbs. $118.03 Price Varies $118.03
Items requiring special handling or
disposal $118.03 Price Varies $118.03
Public Hospitals and Schools receive 20% discount on franchise rates.

Labeling changed to reflect sizes offered by Recology or clarify service.

On-call services are available on for debris box and compactor service only.

Weekly service required and includes up to 100% of weekly trash volume in each of recycling and organics service for all customers.

A la cart recycling and organics services are not available.

Submitted: September 30, 2022
Updated: November 21, 2022 Page 7 of 7

9.B.b
Packet Pg. 132 Attachment: Schedule of Approved Rates (3806 : 2023 Waste Rate Adjustment) Healdsburg RRI - Rates Effective 1.1.23 - w R3 Adjustments - Exhibit I-Rates 2023 Attachment A: Healdsburg Rate Schedule 2023 Schedule of Rate before SB1383 Exhibit I: Schedule of Approved Rates - 2023 with SB1383

8.81% 3.7% 5.4% Includes SB1383 0.8% 5.4%
Residential Cart Collection
20-Gallon Cart $11.80 $3.81 $3.76 $0.10 $0.14 $2.18 $21.80 $0.72 $22.52 $14.04 $4.12 $4.18 $0.02 $0.16 $22.5232-Gallon Cart $17.50 $4.43 $3.76 $0.12 $0.14 $2.88 $28.83 $0.95 $29.78 $20.63 $4.78 $4.18 $0.03 $0.16 $29.7864-Gallon Cart $26.64 $6.41 $3.76 $0.17 $0.14 $4.12 $41.24 $1.36 $42.61 $31.31 $6.92 $4.18 $0.04 $0.16 $42.6196-Gallon Cart $34.74 $11.28 $3.76 $0.30 $0.14 $5.58 $55.81 $1.84 $57.65 $41.04 $12.19 $4.18 $0.08 $0.16 $57.65 Commercial Cart and Bin Collection
20-Gallon Container $19.30 $6.10 $3.76 $0.16 $0.14 $3.27 $32.74 $1.08 $33.82 $22.85 $6.59 $4.18 $0.04 $0.16 $33.8232-Gallon Cart $24.00 $9.14 $3.76 $0.24 $0.14 $4.14 $41.44 $1.37 $42.81 $28.53 $9.88 $4.18 $0.06 $0.16 $42.8164-Gallon Cart $33.48 $19.82 $3.76 $0.52 $0.14 $6.41 $64.15 $2.12 $66.26 $40.39 $21.41 $4.18 $0.12 $0.16 $66.2696-Gallon Cart 1 pickup per week $37.10 $28.97 $3.76 $0.77 $0.14 $7.86 $78.61 $2.59 $81.21 $45.39 $31.30 $4.18 $0.18 $0.16 $81.21 2 pickup per week $74.88 $57.93 $3.76 $1.53 $0.14 $15.36 $153.62 $5.07 $158.69 $91.39 $62.59 $4.18 $0.37 $0.16 $158.69 3 pickup per week $112.66 $86.91 $3.76 $2.30 $0.14 $22.86 $228.64 $7.55 $236.19 $137.39 $93.90 $4.18 $0.56 $0.16 $236.19 4 pickup per week $150.44 $115.87 $3.76 $3.07 $0.14 $30.36 $303.65 $10.02 $313.67 $183.40 $125.19 $4.18 $0.74 $0.16 $313.67 5 pickup per week $188.18 $144.84 $3.76 $3.83 $0.14 $37.86 $378.62 $12.49 $391.11 $229.35 $156.49 $4.18 $0.93 $0.16 $391.11 6 pickup per week $225.90 $173.80 $3.76 $4.60 $0.14 $45.36 $453.57 $14.97 $468.54 $275.31 $187.78 $4.18 $1.11 $0.16 $468.54 1 Cubic Yards
1 pickup per week $142.94 $66.02 $3.76 $1.75 $0.14 $23.85 $238.46 $7.87 $246.33 $170.24 $71.33 $4.18 $0.42 $0.16 $246.33 2 pickup per week $271.74 $132.12 $3.76 $3.50 $0.14 $45.70 $456.97 $15.08 $472.05 $324.11 $142.75 $4.18 $0.85 $0.16 $472.05 3 pickup per week $357.16 $198.18 $3.76 $5.25 $0.14 $62.72 $627.22 $20.70 $647.91 $428.18 $214.12 $4.18 $1.27 $0.16 $647.91 4 pickup per week $428.83 $264.24 $3.76 $6.99 $0.14 $78.22 $782.20 $25.81 $808.01 $516.48 $285.50 $4.18 $1.69 $0.16 $808.01 5 pickup per week $445.05 $330.31 $3.76 $8.74 $0.14 $87.56 $875.57 $28.89 $904.46 $541.14 $356.87 $4.18 $2.11 $0.16 $904.46

1.5 Cubic Yards
1 pickup per week $222.39 $99.10 $3.76 $2.62 $0.14 $36.45 $364.46 $12.03 $376.49 $264.44 $107.07 $4.18 $0.64 $0.16 $376.49 2 pickup per week $403.20 $198.18 $3.76 $5.25 $0.14 $67.84 $678.37 $22.39 $700.75 $481.02 $214.12 $4.18 $1.27 $0.16 $700.75 3 pickup per week $583.77 $297.28 $3.76 $7.87 $0.14 $99.20 $992.02 $32.74 $1,024.76 $697.33 $321.19 $4.18 $1.90 $0.16 $1,024.76 4 pickup per week $764.66 $396.37 $3.76 $10.49 $0.14 $130.60 $1,306.03 $43.10 $1,349.13 $914.00 $428.25 $4.18 $2.54 $0.16 $1,349.13 5 pickup per week $945.70 $495.46 $3.76 $13.11 $0.14 $162.02 $1,620.21 $53.47 $1,673.67 $1,130.85 $535.31 $4.18 $3.17 $0.16 $1,673.676 pickup per week $1,127.00 $594.55 $3.76 $15.74 $0.14 $193.47 $1,934.66 $63.84 $1,998.50 $1,347.99 $642.37 $4.18 $3.80 $0.16 $1,998.50 2 Cubic Yards
1 pickup per week $271.69 $132.12 $3.76 $3.50 $0.14 $45.69 $456.90 $15.08 $471.98 $324.04 $142.75 $4.18 $0.85 $0.16 $471.98 2 pickup per week $459.50 $264.24 $3.76 $6.99 $0.14 $81.63 $816.28 $26.94 $843.22 $551.69 $285.50 $4.18 $1.69 $0.16 $843.22 3 pickup per week $647.54 $396.37 $3.76 $10.49 $0.14 $117.59 $1,175.89 $38.80 $1,214.70 $779.57 $428.25 $4.18 $2.54 $0.16 $1,214.70 4 pickup per week $835.27 $528.49 $3.76 $13.99 $0.14 $153.52 $1,535.17 $50.66 $1,585.83 $1,007.11 $571.00 $4.18 $3.38 $0.16 $1,585.835 pickup per week $1,023.09 $660.61 $3.76 $17.48 $0.14 $189.45 $1,894.54 $62.52 $1,957.06 $1,234.76 $713.74 $4.18 $4.22 $0.16 $1,957.066 pickup per week $1,211.21 $792.73 $3.76 $20.98 $0.14 $225.43 $2,254.26 $74.39 $2,328.65 $1,462.75 $856.49 $4.18 $5.07 $0.16 $2,328.65 3 Cubic Yards
1 pickup per week $357.18 $198.18 $3.76 $5.25 $0.14 $62.72 $627.24 $20.70 $647.94 $428.21 $214.12 $4.18 $1.27 $0.16 $647.94 2 pickup per week $615.58 $396.37 $3.76 $10.49 $0.14 $114.04 $1,140.38 $37.63 $1,178.02 $742.89 $428.25 $4.18 $2.54 $0.16 $1,178.02 3 pickup per week $863.24 $594.55 $3.76 $15.74 $0.14 $164.16 $1,641.60 $54.17 $1,695.77 $1,045.26 $642.37 $4.18 $3.80 $0.16 $1,695.77 4 pickup per week $1,106.01 $792.73 $3.76 $20.98 $0.14 $213.74 $2,137.37 $70.53 $2,207.90 $1,342.00 $856.49 $4.18 $5.07 $0.16 $2,207.90 5 pickup per week $1,351.33 $990.92 $3.76 $26.23 $0.14 $263.60 $2,635.98 $86.99 $2,722.97 $1,641.67 $1,070.62 $4.18 $6.34 $0.16 $2,722.97 6 pickup per week $1,596.25 $1,189.10 $3.76 $31.47 $0.14 $313.41 $3,134.15 $103.43 $3,237.57 $1,940.89 $1,284.74 $4.18 $7.60 $0.16 $3,237.57 4 Cubic Yards
1 pickup per week $428.83 $264.24 $3.76 $6.99 $0.14 $78.22 $782.20 $25.81 $808.01 $516.48 $285.50 $4.18 $1.69 $0.16 $808.01 2 pickup per week $669.90 $528.49 $3.76 $13.99 $0.14 $135.14 $1,351.43 $44.60 $1,396.02 $817.30 $571.00 $4.18 $3.38 $0.16 $1,396.02 3 pickup per week $911.32 $792.73 $3.76 $20.98 $0.14 $192.10 $1,921.04 $63.39 $1,984.44 $1,118.54 $856.49 $4.18 $5.07 $0.16 $1,984.44 4 pickup per week $1,152.15 $1,056.98 $3.76 $27.97 $0.14 $249.00 $2,490.01 $82.17 $2,572.18 $1,419.09 $1,141.99 $4.18 $6.76 $0.16 $2,572.18 5 pickup per week $1,393.32 $1,321.22 $3.76 $34.97 $0.14 $305.94 $3,059.36 $100.96 $3,160.32 $1,720.04 $1,427.49 $4.18 $8.45 $0.16 $3,160.326 pickup per week $1,633.78 $1,585.46 $3.76 $41.96 $0.14 $362.79 $3,627.90 $119.72 $3,747.62 $2,020.17 $1,712.97 $4.18 $10.14 $0.16 $3,747.62 6 Cubic Yards
1 pickup per week $487.90 $396.37 $3.76 $10.49 $0.14 $99.85 $998.52 $32.95 $1,031.47 $596.34 $428.25 $4.18 $2.54 $0.16 $1,031.47 2 pickup per week $807.00 $792.73 $3.76 $20.98 $0.14 $180.51 $1,805.14 $59.57 $1,864.71 $998.81 $856.49 $4.18 $5.07 $0.16 $1,864.71 3 pickup per week $959.74 $1,189.10 $3.76 $31.47 $0.14 $242.69 $2,426.91 $80.09 $2,506.99 $1,210.31 $1,284.74 $4.18 $7.60 $0.16 $2,506.99 4 pickup per week $1,230.06 $1,585.46 $3.76 $41.96 $0.14 $317.93 $3,179.32 $104.92 $3,284.24 $1,556.79 $1,712.97 $4.18 $10.14 $0.16 $3,284.245 pickup per week $1,618.35 $1,981.82 $3.76 $52.45 $0.14 $406.28 $4,062.82 $134.07 $4,196.89 $2,038.66 $2,141.22 $4.18 $12.67 $0.16 $4,196.89 6 pickup per week $1,905.47 $2,378.35 $3.76 $62.95 $0.14 $483.41 $4,834.08 $159.52 $4,993.60 $2,404.41 $2,569.64 $4.18 $15.21 $0.16 $4,993.60 Submitted: September 30, 2022 Page 1 of 4

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Attachment: Attachment A - 2023 Service Rates (3806 : 2023 Waste Rate Adjustment) Healdsburg RRI - Rates Effective 1.1.23 - w R3 Adjustments - Exhibit I-Rates 2023 Attachment A: Healdsburg Rate Schedule 2023 Schedule of Rate before SB1383 Exhibit I: Schedule of Approved Rates - 2023 with SB1383

1.5 Cubic Yard Bin $106.48 $22.87 $0.61 $14.44 $144.39 $4.76 $149.16 $124.30 $24.71 $0.15 $149.16 2 Cubic Yard Bin $114.60 $30.50 $0.81 $16.21 $162.11 $5.35 $167.46 $134.31 $32.95 $0.20 $167.46 3 Cubic Yard Bin $138.03 $45.73 $1.21 $20.55 $205.52 $6.78 $212.30 $162.60 $49.41 $0.29 $212.30 4 Cubic Yard Bin $140.92 $60.98 $1.61 $22.61 $226.13 $7.46 $233.59 $167.31 $65.89 $0.39 $233.59 6 Cubic Yard Bin $152.34 $91.48 $2.42 $27.36 $273.60 $9.03 $282.63 $183.20 $98.84 $0.59 $282.63 20 yard or less $444.61 $304.92 $8.07 $84.18 $841.78 $27.78 $869.55 $538.16 $329.44 $1.95 $869.55 30 yard & 40 yard $497.56 $304.92 $8.07 $90.06 $900.61 $29.72 $930.33 $598.94 $329.44 $1.95 $930.33 Excess Disposal/Ton $148.25 $16.47 $164.72 NA $164.72 $164.72 $164.72 20 yard or less $444.61 $304.92 $8.07 $84.18 $841.78 $27.78 $869.55 $538.16 $329.44 $1.95 $869.55 30 yard & 40 yard $497.56 $304.92 $8.07 $90.06 $900.61 $29.72 $930.33 $598.94 $329.44 $1.95 $930.33 Wood (Processing Billed Separately)
20 yard or less $224.39 $24.93 $249.32 $8.23 $257.55 $257.55 $257.55 30 yard & 40 yard $243.07 $27.01 $270.08 $8.91 $278.99 $278.99 $278.99 Brush (Processing Billed Separately)
20 yard or less $224.39 $24.93 $249.32 $8.23 $257.55 $257.55 $257.55 30 yard & 40 yard $243.07 $27.01 $270.08 $8.91 $278.99 $278.99 $278.99 Recycling
20 yard or less $243.07 $27.01 $270.08 $8.91 $278.99 $278.99 $278.99 30 yard & 40 yard $243.07 $27.01 $270.08 $8.91 $278.99 $278.99 $278.99 20 yard or less $486.15 $54.02 $540.17 $17.83 $557.99 $557.99 $557.99 Contamination Recycle, yard waste or food scrapCleaning fee for food scrap bin/cart in excess of 1 per yearSame day return trip for blocked or not set at curb bin or cartFee to reinstate account closed for nonpaymentAdditional Recycle or Yard Waste Cart after 2 C&D Debris Container >10% recyclables (2 tons charges delivered, excess billed)Commercial Solid Waste Debris Box Service (includes 2 tons, excess billed)Concrete (1/2 full box allowed - Disposal Billed Separately) Submitted: September 30, 2022 Page 2 of 4

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Attachment: Attachment A - 2023 Service Rates (3806 : 2023 Waste Rate Adjustment) Healdsburg RRI - Rates Effective 1.1.23 - w R3 Adjustments - Exhibit I-Rates 2023 Attachment A: Healdsburg Rate Schedule 2023 Schedule of Rate before SB1383 Exhibit I: Schedule of Approved Rates - 2023 with SB1383

AB C D E ABCDE
Service Item Collection Disposal Component Compostable Retroactive Retroactive City Fee New Rate before SB1383 Plus SB1383 New Rate with SB1383 Collection Disposal Compostable Retroactive Retroactive Final New Rate (w/SB1383) Component with Gate Rate Component Disposal Component Compostable Component 10% 1/1/2023 3.3% 1/1/2023 Component Component Component Disposal Component Compostable Component 1/1/2023 20 yard or less $243.07 $27.01 $270.08 $8.91 $278.99 $278.99 $278.99 Compactor MSW Solid Waste Collection
2 yard 1 x week $438.99 $275.83 $3.76 $7.30 $0.14 $80.67 $806.71 $26.62 $833.33 $529.20 $298.02 $4.18 $1.77 $0.16 $833.33 2 yard 4 x week $1,762.15 $1,103.32 $15.05 $29.20 $0.58 $323.37 $3,233.67 $106.71 $3,340.38 $2,123.91 $1,192.06 $16.72 $7.05 $0.64 $3,340.383 yard 1 x week $495.55 $376.13 $3.76 $9.95 $0.14 $98.39 $983.94 $32.47 $1,016.41 $603.29 $406.38 $4.18 $2.40 $0.16 $1,016.41 3 yard 2 x week $993.12 $752.27 $7.53 $19.91 $0.29 $197.01 $1,970.12 $65.01 $2,035.14 $1,208.88 $812.77 $8.36 $4.81 $0.32 $2,035.143 yard 3 x week $1,488.87 $1,128.40 $11.29 $29.86 $0.43 $295.43 $2,954.28 $97.49 $3,051.77 $1,812.39 $1,219.15 $12.54 $7.21 $0.48 $3,051.773 yard 4 x week $1,982.20 $1,504.53 $15.05 $39.82 $0.58 $393.58 $3,935.76 $129.88 $4,065.64 $2,413.12 $1,625.54 $16.72 $9.62 $0.64 $4,065.643 yard 5 x week $2,477.76 $1,880.68 $18.81 $49.77 $0.72 $491.97 $4,919.71 $162.35 $5,082.06 $3,016.39 $2,031.94 $20.90 $12.03 $0.80 $5,082.06 Service Fee (Disposal Billed Separately)
20 Yard or Less Compactor $423.42 $47.05 $470.47 $15.53 $486.00 $486.00 $486.00 25 Yard Compactor $528.58 $58.73 $587.31 $19.38 $606.69 $606.69 $606.69 30 Yard Compactor $635.12 $70.57 $705.69 $23.29 $728.98 $728.98 $728.98 Debris Box Compactor Services
$163.22 $18.14 $181.35 $5.98 $187.33 $187.33 $187.33
Compactor Cleaning $489.65 $54.41 $544.05 $17.95 $562.00 $562.00 $562.00 $163.22 $18.14 $181.35 $5.98 $187.33 $187.33 $187.33
$163.22 $18.14 $181.35 $5.98 $187.33 $187.33 $187.33
Furniture
Twin $89.79 $32.83 $0.87 $13.72 $137.21 $4.53 $141.74 $106.06 $35.47 $0.21 $141.74 Double / Full $89.79 $32.83 $0.87 $13.72 $137.21 $4.53 $141.74 $106.06 $35.47 $0.21 $141.74 Queen $89.79 $32.83 $0.87 $13.72 $137.21 $4.53 $141.74 $106.06 $35.47 $0.21 $141.74 King $89.79 $32.83 $0.87 $13.72 $137.21 $4.53 $141.74 $106.06 $35.47 $0.21 $141.74 Bed Frame $80.35 $13.13 $0.35 $10.43 $104.25 $3.44 $107.69 $93.42 $14.19 $0.08 $107.69 Couch (under 6 feet) $80.35 $13.13 $0.35 $10.43 $104.25 $3.44 $107.69 $93.42 $14.19 $0.08 $107.69 Upholstered Chairs $80.35 $13.13 $0.35 $10.43 $104.25 $3.44 $107.69 $93.42 $14.19 $0.08 $107.69 Wooden Chairs $80.35 $13.13 $0.35 $10.43 $104.25 $3.44 $107.69 $93.42 $14.19 $0.08 $107.69 Dinette Tables $80.35 $13.13 $0.35 $10.43 $104.25 $3.44 $107.69 $93.42 $14.19 $0.08 $107.69 Household
Rug (9x12) $80.35 $13.13 $0.35 $10.43 $104.25 $3.44 $107.69 $93.42 $14.19 $0.08 $107.69 Vacuum $80.35 $13.13 $0.35 $10.43 $104.25 $3.44 $107.69 $93.42 $14.19 $0.08 $107.69 Appliances
Water Heater 35 Gallon $80.35 $13.13 $0.35 $10.43 $104.25 $3.44 $107.69 $93.42 $14.19 $0.08 $107.69 Water Heater 40-50 Gallon $80.35 $13.13 $0.35 $10.43 $104.25 $3.44 $107.69 $93.42 $14.19 $0.08 $107.69 Water Heater 100 Gallon $80.35 $13.13 $0.35 $10.43 $104.25 $3.44 $107.69 $93.42 $14.19 $0.08 $107.69 Oven $83.50 $19.69 $0.52 $11.52 $115.24 $3.80 $119.04 $97.63 $21.28 $0.13 $119.04 Oven (Stove Top) $83.50 $19.69 $0.52 $11.52 $115.24 $3.80 $119.04 $97.63 $21.28 $0.13 $119.04 Oven-Stove Unit $83.50 $19.69 $0.52 $11.52 $115.24 $3.80 $119.04 $97.63 $21.28 $0.13 $119.04 Microwave $80.35 $13.13 $0.35 $10.43 $104.25 $3.44 $107.69 $93.42 $14.19 $0.08 $107.69 Garbage Compactor $80.35 $13.13 $0.35 $10.43 $104.25 $3.44 $107.69 $93.42 $14.19 $0.08 $107.69 Dishwasher $80.35 $13.13 $0.35 $10.43 $104.25 $3.44 $107.69 $93.42 $14.19 $0.08 $107.69 Fridge $89.79 $32.83 $0.87 $13.72 $137.21 $4.53 $141.74 $106.06 $35.47 $0.21 $141.74 Freezer $89.79 $32.83 $0.87 $13.72 $137.21 $4.53 $141.74 $106.06 $35.47 $0.21 $141.74 Air Conditioner $89.79 $32.83 $0.87 $13.72 $137.21 $4.53 $141.74 $106.06 $35.47 $0.21 $141.74 Freon Extraction (for debris box collection, included bulky item collection, and paid bulky collection)
$40.00
Washing Machine $83.50 $19.69 $0.52 $11.52 $115.24 $3.80 $119.04 $97.63 $21.28 $0.13 $119.04 Dryer $83.50 $19.69 $0.52 $11.52 $115.24 $3.80 $119.04 $97.63 $21.28 $0.13 $119.04 Building Materials
Household Doors $80.35 $13.13 $0.35 $10.43 $104.25 $3.44 $107.69 $93.42 $14.19 $0.08 $107.69 Sink $80.35 $13.13 $0.35 $10.43 $104.25 $3.44 $107.69 $93.42 $14.19 $0.08 $107.69 Toilets $80.35 $13.13 $0.35 $10.43 $104.25 $3.44 $107.69 $93.42 $14.19 $0.08 $107.69 Windows (less than 3' by 4' only) $80.35 $13.13 $0.35 $10.43 $104.25 $3.44 $107.69 $93.42 $14.19 $0.08 $107.69 Windows larger than 3x4 $119.40 $13.13 $0.35 $14.76 $147.64 $4.87 $152.51 $138.24 $14.19 $0.08 $152.51 Trip Charge 10+yd (Empty Bin; Inaccessible Bin)Monthly Box Rental (>=10yds; if no pick up in month)Relocation Fee (if required on non-service day) Dirt (1/2 full box allowed - Disposal Billed Separately) Submitted: September 30, 2022 Page 3 of 4

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Attachment: Attachment A - 2023 Service Rates (3806 : 2023 Waste Rate Adjustment) Healdsburg RRI - Rates Effective 1.1.23 - w R3 Adjustments - Exhibit I-Rates 2023 Attachment A: Healdsburg Rate Schedule 2023 Schedule of Rate before SB1383 Exhibit I: Schedule of Approved Rates - 2023 with SB1383

Submitted: September 30, 2022 Page 4 of 4

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Attachment: Attachment A - 2023 Service Rates (3806 : 2023 Waste Rate Adjustment) 1512 Eureka Road, Suite 220, Roseville, CA 95661 | p 916.782.7821 | f 916.782.7824 | www.r3cgi.com Introduction
R3 Consulting Group (R3) was engaged by the City of Healdsburg (City) to review Recology Sonoma Marin’s (Recology) request for a refuse rate increase (RRI) effective January 1, 2023. This memorandum presents the findings of our review of Recology’s request.

Attachment A contains a comparison of:

Recology’s proposed customer rates (effective January 1, 2023) with R3’s updated index numbers as per the methodology outlined in the Franchise Agreement.

Attachment B contains the following:

Recology’s full customer rate schedule, broken down by component.

Summary of Findings
R3 reviewed the supporting documentation submitted by Recology and made slight corrections to some of the indices used to calculate the RRI. Due to unavoidable timing with the release of index figures and when the RRI is due from Recology to the City, some figures were not yet available. R3 updated the index figures to correctly calculate adjustments. Therefore, R3 calculated a slightly different adjustment than what was submitted by Recology.

Based on corrected calculations:

Residential customer rates increase between 11.1% to 11.4%, depending on the cart size.

Commercial customer rates increase between 10.9% to 11.5%, depending on the bin size.

Background
The City contracts with Recology for collection of the City’s residential and commercial garbage, recycling and compostable materials. Recology collects the material and hauls it to Recology’s Material Recycling Facility, Cold Creek Compost, for processing, and Central Landfill for disposal. The service rates that customers pay for collection services are set by the City, through a methodology and timeline as outlined in the Franchise Agreement.

The garbage tipping fee and compostable materials processing tipping fees are adjusted by the County on April 1st of each year, while the Franchise Agreement has annual adjustments to the collection rates for the Healdsburg customers on September 1st of the year. This difference in rate adjustments, between April 1st and August 31st, causes Recology to accrue tipping fee costs that are not covered by the customer service rates during that five-month gap.

In 2018, R3 created a methodology to calculate the rate pass through adjustment and how to apply it to the existing rate structure to recapture the lost revenue. This methodology was accepted, implemented and is now being utilized by Recology in the annual RRI adjustment application.

To: Mr. Larry Zimmer, City of Healdsburg
From: Garth Schultz and Alex Soulard, R3
Date: November 22, 2022
Subject: Recology Sonoma Marin’s Annual Refuse Rate Increase Request

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Packet Pg. 137 Attachment: Healdsburg 2023 RRI Memorandum (3806 : 2023 Waste Rate Adjustment) City of Healdsburg

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Annual Rate Adjustments
A RRI is an annual adjustment to the collection service rates that customers are charged for their collection services. This adjustment is carried forth to account for multiple factors, which include, but are not limited to, changes in the market, changes in the disposal tipping fees, changes in compostable tipping fees, changes in the cost of operations, and/or changes in the services being provided by the hauler to the City and its residents.

The City’s standard rate structure has five separate components that make up the customer’s rate. These components are:

1. The Collection Component

2. The Disposal Fee Component

3. The Compostable Materials Processing Fee Component

4. The Retroactive Rate Pass-Through Element

5. The Franchise Fee Component
The five component costs were added together to result in the total customer monthly service charge.

The proposed adjustments to these components, are summarized below.

Collection Component
The Collection Component is calculated using the RRI adjustment methodology outlined in Exhibit C of the Franchise Agreement. Exhibit C explains that there are five (5) cost categories which makeup the RRI calculation. These categories are: “Labor”, “Fuel”, “Vehicle Replacement”, “Vehicle Maintenance”, and “All Other”. Each of these categories have index values provided by the Bureau of Labor Statistics (BLS).

Exhibit C specifies that the twelve (12) month period, of which the BLS indices for each cost category are taken from, ends on June 30th of the most recent release of BLS index values. “The refuse rate adjustment shall be the sum of weighted percentage change in the annual average of each index number between the base fiscal year, which shall be prior 12 months ending on June 30 as contained in the most recent release of the source documents…” (C-2 of the Franchise Agreement)
The percent increase of these monthly or quarterly index values are calculated and multiplied against the weighted percentage of each of the weighted percentages of the dollar amount reported by Recology for each cost category. These calculated values are then added together, resulting in the RRI adjustment value. This percentage is then applied to the collection component of the customer rate schedule to produce the updated collection component cost. Table 1, below, breaks down the collection component cost categories with the overall adjustment totaling 8.81% increase.

Table 1: RRI Index Calculation
Cost Category
January 1, 2023 Adjustment
Weighted Adjustment %
Labor Index (1) 2.06%
Fuel Index 4.50%
Vehicle Replacement Index 0.85%
Vehicle Maintenance Index 0.80%
RCY Processing Revenue -1.75%
All Other 2.35%
Total Collection
Component Adjustment 8.81%

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Packet Pg. 138 Attachment: Healdsburg 2023 RRI Memorandum (3806 : 2023 Waste Rate Adjustment) City of Healdsburg

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Disposal Fee Component
The Disposal Fee component is taken directly from the disposal tipping fee at the Central Landfill. The Disposal Tipping Fee Component of the collection Rates shall be based on the actual cost to Dispose Solid Waste at the Designated Disposal or Transfer Facility (the disposal tip fee). The Disposal Tipping Fee Component of each Rate shall be adjusted by the percentage change in the disposal tip fee over the 12 months preceding the October 1 due date for Contractor’s Rate adjustment request.

The landfill tipping fees increased from the April 1
st
, 2021, rate of $147.08 to $148.25 per ton, which
became effective on April 1, 2022. This represents a 0.8% increase over the current disposal fee component. In addition to the annual tipping fee increase the City and RSM agreed in the First Amendment of the Agreement to increase the Disposal Tipping Fee Component of each Rate by 2.86%, over and above the regular adjustment required by Section 7.3.B of the Agreement. These increases accounted for a 3.3% increase in the disposal fee component to calculate the updated disposal component cost.

Compostable Materials Processing Fee Component
The Compostable Materials Processing Fee component is taken directly from the compostable materials processing fee at the designated processing facility, Cold Creek Compost. This compostable materials processing fee is multiplied against a “Fee Generation Factor”, which is a predetermined fixed value in the Franchise Agreement.

The compostable materials processing fee increased from the April 1, 2021, rate of $96.43 to $101.64 per ton, which became effective on April 1, 2022. This represents a 5.4% increase over the current compostable materials processing fee component. This is applied to the compostable materials processing fee component to calculate the updated compostable materials processing fee component cost.

Retroactive Rate Pass Through Element
As previously mentioned, the solid waste tipping fee, and compostable materials processing tipping fees are adjusted by the County on April 1st of each year, while the Franchise Agreement has annual adjustments to the collection rates for the Healdsburg customers on September 1st of the year. Recology accrues tipping fee costs that are not covered by the customer service rates during the five-month gap between April 1st and August 31st.

The Retroactive Rate Pass Through Element was created to recapture that loss of revenue for Recology due to the midyear change in tipping fees. This retroactive rate pass through calculation is not based on any annual changes in fees or indices and does not need adjusting.

Franchise Fee Component
The Franchise Fee component is 10% of the gross customer service rate. This component does not change.

SB 1383 Costs
On April 4, 2022, the Healdsburg City Council approved the First Amendment to the Franchise Agreement between the City of Healdsburg and Recology Sonoma Marin which allowed for an increase in customer rates of 3.3% on January 1, 2023 in addition to the regularly scheduled annual rate adjustment.

This increase is to cover costs associated with providing SB 1383 compliant organics collection and diversion program. These costs include purchase of additional bins and carts, shared cost for trucks to provide service to those additional bins and carts for commercial customers that did not previously subscribe to organic waste service, and increased costs of labor, processing fees for organic materials, outreach materials to address contamination issues, and the incremental cost of the current food waste program.

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Packet Pg. 139 Attachment: Healdsburg 2023 RRI Memorandum (3806 : 2023 Waste Rate Adjustment) City of Healdsburg

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Findings
After a review of RSM’s rate application, R3 identified minor adjustments to the Labor Index and updates to the Fuel and Vehicle Replacement Index figures. These adjustments reduced the Collection Component Increase from 9.1% to 8.81%. R3 communicated these findings to RSM. RSM confirmed these adjustments and resubmitted their proposal on November 21, 2022, reflecting the corrected figures.

R3 found that Recology correctly calculated the Disposal and Organic Processing Components. Recology used the correct indices and correctly applied the RRI adjustment calculation methodology to the Collection Component.

Table 2, below, is a comparison between the 2022 rates and proposed 2023 rates.

Table 2: Rate Comparison
Subscription Size 2022 Rates 2023 Rates Percentage
Difference
Residential
20 Gallon $20.27 $22.52 11.10%
32 Gallon $26.76 $29.78 11.29%
64 Gallon $38.21 $42.61 11.52%
96 Gallon $51.73 $57.65 11.44%
Commercial
1 CY 1/week $221.11 $246.33 11.41%
1 CY 3/week $582.03 $647.91 11.32%
3 CY 1/week $582.06 $647.94 11.32%
3 CY 3/week $1,525.21 $1,695.77 11.18%
Attachment A contains the rate sheet, with the few index value adjustments found by R3, as calculated by the Franchise Agreement.

Recommendations
R3 recommends adopting the 2023 rates as adjusted by the standard methodology outlined in the Franchise Agreement.

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Packet Pg. 140 Attachment: Healdsburg 2023 RRI Memorandum (3806 : 2023 Waste Rate Adjustment)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: December 5, 2022
SUBJECT: Canvass of 2022 Municipal Election Results and Installation of Council Members
PREPARED BY: Raina Allan, City Clerk
STRATEGIC INITIATIVE(S):

Effective & Efficient Government
Provide Effective Governance
RECOMMENDED ACTION(S):
(1) Adopt a Resolution declaring the results of the General Municipal Election held on November 8, 2022, and such other matters as provided by law; and (2) Installation of newly elected Council Members.

BACKGROUND:

On June 21, 2022, the Council adopted Resolution No. 86-2022 calling for a General Municipal Election to be held November 8, 2022 for the purpose of electing three (3) Council Members; and requesting the Board of Supervisors of the County of Sonoma to consolidate the municipal election with the Statewide General Election pursuant to Section 10403 of the Elections Code.

On June 21, 2022, the Council adopted Resolution No. 101-2022 placing Measure L (City of Healdsburg Occupancy Tax) on the November 8, 2022 ballot. The resolution also requested consolidation of the election with the Statewide General Election.

On June 21, 2022, the Council adopted Resolution No. 102-2022 placing Measure M (City of Healdsburg Business Tax) on the November 8, 2022 ballot. The resolution also requested consolidation of the election with the Statewide General Election.

DISCUSSION/ANALYSIS:

The Election Code requires that the City Council meet following an election to canvass the results of the precinct vote. The resolution declaring the results of the general municipal election

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is attached for your review and consideration. A summary of the election results as of the publication of this report is as follows:

Member, City Council (Full Term) (2 seats)
Vote Count Percentage
Evelyn L. Mitchell 2,871 35.27%
Chris Herrod 2,847 34.97%
Susan Graf 1,608 19.75%
Linda Cade 815 10.01%
Member, City Council (Short Term) (1 seat)
Vote Count Percentage
Ronald Edwards 2,072 45.86%
Brigette Mansell 2,012 44.53%
Matias Lopez Jr. 434 9.61%
Measure L, City of Healdsburg Occupancy Tax Measure
Vote Count Percentage
Yes 3,653 75.96%
No 1,156 24.04%
Measure M, City of Healdsburg Business Tax Measure
Vote Count Percentage
Yes 3,486 72.59%
No 1,316 27.41%
Based on the election results, and presuming no substantive changes are reported by the Registrar of Voters subsequent to the publishing of this report: (1) Evelyn L. Mitchell, and Chris Herrod were elected to the office of City Council for four-year terms; Ronald Edwards was elected to the office of City Council for a two-year term and (2) Measure L, Healdsburg Occupancy Tax Measure and Measure M, Healdsburg Business Tax Measure were adopted.

Following the adoption of the proposed resolution, the City Clerk will administer the Oath of Office to the elected Council Members.

ALTERNATIVES:

There are no viable alternatives as the election process is dictated by the Elections Code.

FISCAL IMPACT:

The proposed action has no fiscal impact.

ENVIRONMENTAL ANALYSIS:

The subject matter of this resolution involves administrative activities of the City that will not result in direct or indirect changes in the environment. Therefore, the adoption of this resolution is not a “project”, as defined in the California Environmental Quality Act (“CEQA”) and does

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not require environmental review, pursuant to Title 14, Chapter 3 of the California Code of Regulations (CEQA Guidelines), sections 15060(c)(3) and 15378(b)(5).

ATTACHMENT(S):

Resolution
Ordinance No. 1220
Ordinance No. 1221

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CITY OF HEALDSBURG
RESOLUTION NO. _____-2022

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG, CALIFORNIA, RECITING THE FACT OF

THE GENERAL MUNICIPAL ELECTION HELD ON
NOVEMBER 8, 2022, DECLARING THE RESULTS AND

SUCH OTHER MATTERS AS PROVIDED BY LAW
WHEREAS, a General Municipal Election was held and conducted in the City of Healdsburg, California, on Tuesday, November 8, 2022, as required by law; and WHEREAS, notice of the election was given in time, form and manner as provided by law; that voting precincts were properly established; that election officers were appointed and that in all respects the election was held and conducted and the votes were cast, received and canvassed and the returns made and declared in time, form and manner as required by the provisions of the Elections Code of the State of California for the holding of elections in general law cities; and
WHEREAS, the City Council has determined, pursuant to Section 15378(b)(5) of the California Environmental Quality Act Guidelines, that approval of this resolution is an administrative activity of the City and will not result in direct or indirect physical changes in the environment and is therefore not a project for purposes of CEQA; and WHEREAS, pursuant to Resolution No. 86-2022, Resolution No. 101-2022 and Resolution No. 102-2022 adopted June 21, 2022, the Sonoma County Elections Department canvassed the returns of the election and has certified the results to this City Council, the results are received, attached and made a part hereof as "Exhibit A."

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HEALDSBURG, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. That the whole number of ballots cast for the office of Councilmember in the City of Healdsburg in the five precincts was x,xxx.

SECTION 2. That the names of persons voted for at the election for Member of the City Council are as follows:

Full Term
Evelyn L. Mitchell
Chris Herrod
Susan Graf
Linda Cade
Short Term
Ron Edwards
Brigette Mansell
Matias Lopez Jr.

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SECTION 3. That the number of votes given at each precinct and the number of votes given in the City to each of the persons above named for the respective offices for which the persons were candidates are as listed in Exhibit "A" attached.

SECTION 4. The City Council of the City of Healdsburg does declare and determine that: Evelyn L. Mitchell and Chris Herrod are elected as Members of the City Council for the full term of four years, by a total of x,xxx, and x,xxx votes, respectively. Ronald Edwards is elected as a Member of the City Council for the short term of two years, by a total of x,xxx.

SECTION 5. That the titles of the measures voted upon at the election was as follows:

Measure L
Shall the City of Healdsburg adopt an ordinance amending the City’s Transient Occupancy Tax to facilitate acquisition and construction of capital improvements for parks, community services facilities, and affordable housing, including payment of principal, interest, and cost of indebtedness, without altering any other mechanics or rates of the Transient Occupancy Tax?
YES
NO
Measure M
Shall the measure establishing a City of Healdsburg cannabis business tax at annual rates up to and not to exceed 8% of gross receipts for cannabis businesses, and estimated to generate approximately $500,000 annually in tax revenue until ended by voters, to be spent for unrestricted general revenue purposes, including police, fire and emergency services, parks, affordable housing, and street maintenance, be adopted?
YES
NO
SECTION 6. That the number of votes given at each precinct in favor or against Measure T is listed in Exhibit “A” attached hereto.

SECTION 7. That a majority of the voters of the City of Healdsburg did vote in favor of Measure L, regarding the Transient Occupancy Tax Measure by the following vote:
x,xxx Yes
x,xxx No

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That a majority of the voters of the City of Healdsburg did vote in favor of Measure M, regarding the Cannabis Business Tax Measure by the following vote:

SECTION 8. The City Clerk shall enter in the records of the City Council of the City, a statement of the result of the election, showing: (1) the whole number of votes (ballots) cast in the City; (2) the names of the person voted for; (3) for what office each person was voted for, (4) the measures voted upon; (5) the number of votes given at each precinct to each person, and for and against the measure; and (6) the total number of votes given to each person and for and against measure.

SECTION 9. That the City Clerk shall immediately make and deliver to each of the persons so elected a Certificate of Election signed by the City Clerk and authenticated; that the City Clerk shall also administer to each person elected the Oath of Office prescribed in the Constitution of the State of California and shall have them subscribe to it and file it in the office of the City Clerk. Each and all of the persons so elected shall then be inducted into the respective office to which they have been elected.

SECTION 10. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

PASSED, APPROVED AND ADOPTED this 5
th day of December, 2022 by the following vote:

AYES: Councilmembers: ( )
NOES: Councilmembers: ( )
ABSENT: Councilmembers: ( )
ABSTAINING: Councilmembers: ( )
SO ORDERED: ATTEST:
________________________________ _________________________________ Osvaldo Jimenez, Mayor Raina Allan, City Clerk
x,xxx Yes
x,xxx No

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Packet Pg. 146 Attachment: Resolution (3843 : Canvass of 2022 Municipal Election Results and Installation of Councilmembers)

CITY OF HEALDSBURG
ORDINANCE NO. 1220

AN ORDINANCE OF THE CITY OF HEALDSBURG

AMENDING THE TRANSIENT OCCUPANCY TAX

ORDINANCE OF THE CITY OF HEALDSBURG TO PERMIT

THE USE OF TRANSIENT OCCUPANCY TAX REVENUES

TO ACQUIRE AND CONSTRUCT CAPITAL

IMPROVEMENTS FOR PARKS, COMMUNITY SERVICES

FACILITIES AND AFFORDABLE HOUSING, INCLUDING

PAYMENT OF PRINCIPAL, INTEREST AND COSTS OF

INDEBTEDNESS FOR THE SAME
WHEREAS, in 2004, the City of Healdsburg voters approved and enacted the Transient Occupancy Tax Ordinance Of The City Of Healdsburg (“TOT Ordinance”), set forth in Chapter

3.12 of the Healdsburg Municipal Code, for the privilege of occupancy in any hotel within the City; and
WHEREAS, pursuant to Healdsburg Municipal Code Section 3.12.030, each transient is subject to a tax of not less than 12 percent nor more than 14 percent of the rent charged by the hotel operator, with the actual rate of the tax established by resolution of the City Council. The current tax rate is 14%; and
WHEREAS, pursuant to Healdsburg Municipal Code Section 3.12.160, the first 10 percent of the 14 percent transient occupancy tax shall be used for the provision of community services only, the next 2 percent of the 14 percent transient occupancy tax shall be used for the provision of affordable housing services and programs, and any transient occupancy tax in excess of 12 percent shall be paid into the City’s general fund for general fund purposes; and WHEREAS, the City Council wishes to have the ability to use a portion of the TOT Ordinance revenues for the acquisition and improvement of new parks, community services facilities, and affordable housing, as well as to use TOT Ordinance revenues to secure bond financing to generate funds to build new parks, community service facilities and increase affordable housing in the City; and
WHEREAS, the City Council wishes to amend the definitions of “community services” and “affordable housing services and programs” in Healdsburg Municipal Code Section 3.12.020, to specifically permit TOT Ordinance revenues to be used for acquisition and construction of new parks, and capital improvements for community services and affordable housing facilities, including payment of principal, interest and costs of indebtedness for the same; and WHEREAS, except as outlined above, this measure will not alter the tax rate; the percentage of tax revenues allocated for the percentage of community services, affordable housing, and the general fund; the persons subject to or exempt from the tax; the mechanics of the collection of the tax; or any other provisions of the TOT Ordinance; and WHEREAS, this measure to amend the TOT Ordinance requires an affirmative vote of 2/3 of the electorate voting on the measure to pass, and if the measure does not garner 2/3 of the vote, the provisions of the current TOT Ordinance will remain intact.

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NOW, THEREFORE, THE PEOPLE OF THE CITY OF HEALDSBURG DO ORDAIN AS FOLLOWS:

Section 1. Findings
The City Council of the City of Healdsburg does hereby find that the above referenced recitals are true and correct and material to the adoption of this Ordinance.

Section 2. Amendment of Code
Healdsburg Municipal Code Chapter 3.12, Transient Occupancy Tax, Sections 3.12.020, Definitions, and 3.12.160, Use of tax proceeds, are hereby amended as follows:

3.12.020 Definitions
Except where the context otherwise requires, the definitions given in this section govern the construction of this chapter.

A. “Affordable housing services and programs” means the provision of financing of capital improvements, and other services, and programs and assistance provided by the City of Healdsburg to prospective and current tenants, owners and/or developers to assist in acquiring, rehabilitating, increasing, improving and preserving the City’s supply of housing available to households identified by income category in HMC 20.28.310, as the same may be amended from time to time.

B. “Agreement in writing” means a document, signed by the operator and occupant, stating that the occupant intends to occupy the hotel for more than 30 consecutive days.

C. “Chapter” means Chapter 3.12 HMC entitled “Transient Occupancy Tax.” D. “Community services” means the facilities and services provided by the City of Healdsburg community services department, including but not limited to the construction, acquisition, improvement, rehabilitation, management and operation of fields for soccer, baseball, and other sports, parks, open space, and recreational facilities, including but not limited to Recreation, Plaza, Badger, Giorgi, “the Parkland Farms,” Carson Warner Memorial Skate Park, and the Villa Chanticleer; support for senior services; transit services and the operation and management of the Healdsburg Airport; civic promotion; special event coordination; distribution of information about community services; constructing, acquiring, rehabilitating, funding, planning, designing, and engineering capital improvement projects; support for community enrichment classes and recreational programs; scheduling and coordination of outdoor area usage at local schools, parks, and community facilities; provision of transit services for individuals with special needs; and administering contracts for maintenance and operation of community services and facilities.

E. He – Him – His. Pronouns of the masculine gender are utilized for the sake of brevity and are intended to refer to persons of either gender or of the neuter gender, as applicable.

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F. Hearing Officer. The hearing officer shall be the City Manager or his or her designee.

G. “Hotel” means any structure or any portion of any structure that is occupied or intended or designed for occupancy by transients for sleeping purposes, including any inn, home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof that is used for occupancy by transients, even if such use is on a part-time basis.

H. “Occupancy” means the use or possession or the right to the use or possession of any room or rooms or portion thereof in any hotel for sleeping purposes in exchange for rent (as defined in this section).

I. “Operator” means the person who is the proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee or any other capacity. Where the operator performs his functions through a managing agent or booking agency of any type or character other than an employee, the managing agent or booking agency shall also be deemed an “operator” for the purposes of this chapter and shall have the same duties and liabilities as its principal. Compliance with the provisions of this chapter by either the principal, the managing agent or booking agency shall, however, be considered to be compliance by all, and a violation of this chapter by either the principal or any agent acting on behalf of the principal shall be considered a violation by all.

J. “Person” means any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or other group or combination acting as a unit.

K. “Rent” means the actual consideration charged, whether or not received, for the occupancy of space in a hotel valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credit and property and services of any kind or nature without any deduction therefrom whatsoever.

L. “Tax administrator” means the finance officer or his authorized agent.

M. “Transient” means any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license, or other agreement for a period of 30 consecutive calendar days or less, counting portions of calendar days as full days. Any such person shall be deemed to be a transient until the period of 30 days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of this chapter may be considered.

3.12.160 Use of tax proceeds.

The first 10 percent of all proceeds of the tax levied and imposed by this chapter shall be accounted for and paid into a special fund or account designated for use for the provision of community services only. The next two percent of such proceeds shall be accounted for and paid into a special fund or account designated for use for the provision of affordable housing

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services and programs. Any proceeds of the tax that are in excess of 12 percent of the room rate shall be paid into the City’s general fund for general fund purposes. Any proceeds of the tax may be used, in addition to funding the services and programs described herein, to acquire and construct capital improvements or facilities, including payment of principal, interest and costs of indebtedness for the same. No other entity, public or private, shall have access to the proceeds of the transient occupancy tax, and no part thereof shall be expended on services provided outside the City.

As to all proceeds of the tax levied and imposed by this chapter for the provision of community services and affordable housing services and programs, and collected by the City, the finance director shall file an annual report with the City Council that contains the amount of such proceeds, how such proceeds were expended and the status of any project required or authorized to be funded with revenue raised by such proceeds, all in accordance with California Government Code Section 50075.3.

Section 3. Severability
If any section, subsection, sentence, clause or phrase or word of this Ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance.

Section 4. Effective Date
This Ordinance shall take effect ten (10) days after the certification by the City Council of the election returns indicating passage of the Ordinance by two thirds of voters casting votes in the election.

Section 5. Termination Date
The amendment to this ordinance provided herein shall extend until the tax is terminated by the voters.

Section 6. Publication
The City Clerk is directed to publish this Ordinance as required by State law.

APPROVED by the following vote of the People of the City of Healdsburg on November 8, 2022:

YES: ________ NO: ________ TOTAL NUMBER OF BALLOTS CAST: _______ IT IS HEREBY FURTHER CERTIFIED that the foregoing Ordinance was adopted by Declaration of the November 8, 2022 election results by the City Council of the City of Healdsburg on December 5, 2022, by the following vote, to wit:

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

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

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Packet Pg. 151 Attachment: Ordinance No. 1220 (3843 : Canvass of 2022 Municipal Election Results and Installation of Councilmembers)

CITY OF HEALDSBURG
ORDINANCE NO. 1221

AN ORDINANCE OF THE PEOPLE OF THE CITY OF

HEALDSBURG, STATE OF CALIFORNIA, AMENDING TITLE
3 OF THE HEALDSBURG MUNICIPAL CODE TO ADD A NEW
CHAPTER 3.32 ENTITLED “CANNABIS BUSINESS TAX”
The People of the City of Healdsburg, California, DO HEREBY ORDAIN as follows:

SECTION 1. ENACTED. That Title 3 of the Healdsburg Municipal Code is hereby amended to add a new Chapter 3.32, entitled “Cannabis Business Tax”, and it shall read as follows:

Chapter 3.33

CANNABIS BUSINESS TAX

3.32.010 Title.

3.32.020 Authority and purpose.

3.32.030 Intent.

3.32.040 Definitions.

3.32.050 Tax imposed.

3.32.060 Registration, reporting and remittance of tax.

3.32.070 Payments and communications –timely remittance.

3.32.080 Payment – when taxes deemed delinquent.

3.32.090 Notice not required by City.

3.32.100 Penalties and interest.

3.32.110 Refunds, credits, and procedures.

3.32.120 Exemptions from the tax.

3.32.130 Administration of the tax.

3.32.140 Enforcement –action to collect.

3.32.150 Apportionment.

3.32.160 Constitutionality and legality; not a sales tax.

3.32.170 Audit and examination of records and equipment.

3.32.180 Other licenses, permits, taxes, fees, or charges.

3.32.190 Payment of tax does not authorize activity.

3.32.200 Deficiency determinations.

3.32.210 Failure to report.

3.32.220 Tax assessment –notice requirements.

3.32.230 Tax assessment – hearing, application and determination.

3.32.240 Conviction for violation – taxes not waived.

3.32.250 Violation deemed misdemeanor.

3.32.260 Remedies cumulative.

3.32.010 Title.

This chapter shall be known as the Cannabis Business Tax Ordinance and shall be applicable in the City of Healdsburg, California, which shall be referred to herein as “city.”

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Packet Pg. 152 Attachment: Ordinance No. 1221 (3843 : Canvass of 2022 Municipal Election Results and Installation of Councilmembers)

3.32.020 Authority and purpose.

The purpose of this chapter is to adopt a tax, for revenue purposes, pursuant to sections 37100.5 and 37101 of the California Government Code, upon cannabis businesses that engage in business in the city. The cannabis business tax is levied based upon business gross receipts. It is not a sales and use tax, a tax upon income, or a tax upon real property.

The cannabis business tax is a general tax enacted solely for general governmental purposes of the city and not for specific purposes. All of the proceeds from the tax imposed by this chapter shall be placed in the city's general fund and be available for unrestricted general revenue purposes.

3.32.030 Intent.

This ordinance is adopted to achieve the following purposes, among others, and shall be interpreted to accomplish those purposes:

A. To impose a tax on the privilege of transporting, dispensing, manufacturing, producing, processing, preparing, storing, testing, providing, donating, selling, or distributing cannabis or cannabis products by cannabis businesses in the City of Healdsburg, pursuant to the state Medicinal and Adult-Use Cannabis Regulation and Safety Act, California Business and Professions Code section 26000 et seq., Proposition 64, approved by the voters in November 2016 and as amended to date (“MAUCRSA”), which legalized and regulates commercial cannabis activities in California, and other applicable law as it now exists or may hereafter be adopted; and B. To specify the type of tax and rate of tax to be levied and the method of collection.

This chapter does not authorize the conduct of any business or activity in the city, but provides for the taxation of such businesses or activities as they occur. Nothing in this chapter shall be interpreted to authorize or permit any business activity that would not otherwise be legal or permissible under laws applicable to the activity at the time the activity is undertaken.

3.32.040 Definitions.

The following words and phrases shall have the meanings set forth below when used in this chapter:
“Cannabis” shall have the meaning set forth in section 26001(e) of the Business and Professions Code and as subsequently amended.
“Cannabis business” shall mean any business activity involving cannabis, including but not limited to transporting, distributing, manufacturing, compounding, converting, processing, preparing, storing, packaging, delivering, testing, dispensing, retailing, and wholesaling of cannabis, of cannabis products, or of ancillary products and accessories, whether or not carried on for gain or profit. The term “cannabis business” shall include “commercial cannabis activity” as defined in section 26001(j) of the Business and Professions Code and as subsequently amended. “Cannabis product” shall have the same meaning as in section 11018.1 of the Health and Safety Code and as subsequently amended.
“Commercial cannabis activity” shall have the meaning set forth in section 26001(j) of the Business and Professions Code and as subsequently amended.

Ordinance No. 1221

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Packet Pg. 153 Attachment: Ordinance No. 1221 (3843 : Canvass of 2022 Municipal Election Results and Installation of Councilmembers) “Employee” shall mean each person who renders any service, with or without compensation, for the owner, permittee, or agent of either an owner or permittee of a commercial cannabis business. For purposes of this chapter, the term “Employee” shall include part-time, fulltime, temporary, or permanent employees. “Engaged in business as a cannabis business” shall mean the commencing, conducting, operating, managing or carrying on of a cannabis business, whether done as owner, or by means of an officer, agent, manager, employee, or otherwise, whether operating from a fixed location in the city or coming into the city from an outside location to engage in such activities. A person shall be deemed engaged in business within the city if:

1. Such person or person’s employee maintains a fixed place of business within the city for the benefit or partial benefit of such person;

2. Such person or person’s employee owns or leases real property within the city for business purposes;

3. Such person or person’s employee regularly maintains a stock of tangible personal property in the city for sale in the ordinary course of business;

4. Such person or person’s employee regularly conducts solicitation of business within the city; or

5. Such person or person’s employee performs work or renders services in the city.

The foregoing specified activities shall not be a limitation on the meaning of “engaged in business.”
“Evidence of doing business” shall mean evidence such as, without limitation, use of signs, circulars, cards or any other advertising media, including the use of internet or telephone solicitation, or representation to a government agency or to the public that such person is engaged in a cannabis business in the city.
“Fiscal year” shall mean July 1 through June 30 of the following calendar year. “Gross Receipts,” except as otherwise specifically provided, shall mean the total amount actually received or receivable from all sales; the total amount or compensation actually received or receivable for the performance of any act or service, of whatever nature, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise; discounts, rents, royalties, fees, commissions, dividends, and gains realized from trading in stocks or bonds, however designated. “Gross receipts” shall include all receipts, cash, credits and property of any kind or nature, without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever. However, the following shall be excluded from Gross Receipts:

1. Cash discounts where allowed and taken on sales.

Ordinance No. 1221

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2. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser.

3. Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts.

4. Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery or other equipment used by the taxpayer in the regular course of the taxpayer's business.

5. Cash value of sales, trades or transactions between departments or units of the same business.

6. Whenever there are included within the gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectible in a subsequent year, those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of such amounts excluded as uncollectible are subsequently collected they shall be included in the amount of gross receipts for the period when they are recovered.

7. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one dollar.

8. Amounts collected for others where the business is acting as an agent or trustee and to the extent that such amounts are paid to those for whom collected. These agents or trustees must provide the Tax Administrator with the names and the addresses of the others and the amounts paid to them. This exclusion shall not apply to any fees, percentages, or other payments retained by the agent or trustees.

9. Retail sales of t-shirts, sweaters, hats, stickers, key chains, bags, books, posters or other personal tangible property which the Tax Administrator has excluded in writing shall not be subject to the cannabis business tax under this chapter. However, any retail sales not subject to this chapter as a result of the administrative ruling shall be subject to the appropriate business tax under any other applicable provision of this code as determined by the Tax Administrator.
“Person” shall mean an individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, collective or any other group or combination acting as a unit, whether organized as a nonprofit or for-profit entity, and includes the plural as well as the singular number. “Sale” shall mean any sale, exchange, or barter or other transaction for any consideration. “State license” or “license” shall mean a license issued by the State of California, or one of its departments or divisions, pursuant to California Business & Professions Code section 26000, Ordinance No. 1221

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Packet Pg. 155 Attachment: Ordinance No. 1221 (3843 : Canvass of 2022 Municipal Election Results and Installation of Councilmembers) et seq. and any subsequent State of California legislation regarding the same, to engage in commercial cannabis activity.
“Tax Administrator” shall mean the city finance director.

3.32.050 Tax imposed.

A. There is established and imposed upon each person who is engaged in business as a cannabis business an annual cannabis business tax at the rates set forth in this chapter. The tax imposed by this chapter is upon the privilege of conducting business within the city and is not a sales tax or use tax.

B. The cannabis business tax upon every person who engages in business in the city as a cannabis business shall not exceed the maximum annual rate of eight percent (8%) of the gross receipts.

C. The city council may by resolution, in its discretion, implement tax rates lower than the maximum rates established in subsection (B) of this section for all persons engaged in a cannabis business in the city, including establishing different tax rates for different categories of cannabis businesses, including for medical versus adult recreational use or for products of different potencies. The city council may, by resolution, also decrease or increase any such tax rate from time to time, provided that the tax rate shall not, at any time, exceed the maximum tax rates established in subsection (B) of this section.

3.32.060 Registration, reporting and remittance of tax.

A. All persons engaging in a cannabis business, whether an existing, newlyestablished or acquired business, shall register with the Tax Administrator’s office by the later of:

1. 30 days after commencing operation; or

2. January 1, 2023 and shall annually renew such registration on or before the anniversary of the initial registration for that business.

B. Registrants shall furnish to the Tax Administrator a statement sworn under penalty of perjury, upon a form provided by the Tax Administrator, setting forth:

1. Every name under which the person or business engages in a cannabis business in the city;

2. The names and addresses of every person who is an owner, principal or manager of the cannabis business;

3. The nature or kind of all cannabis business activity to be conducted;

4. The place or places whether or not in the city where such cannabis business is to be conducted; and

5. Any further information which the Tax Administrator may require.

C. The cannabis business tax imposed by this chapter shall be imposed on a fiscal year basis and shall be due and payable in monthly installments as follows:

1. Each person owing a cannabis business tax shall, on or before the last day of the month following the close of the prior calendar month or at the close of any reporting period which may be established by the Tax Administrator, prepare and submit a tax return statement on the form prescribed by the Tax Administrator, including the basis of its calculation, and remit to the Tax Administrator the tax due.

2. The taxpayer shall remit the tax owed to the Tax Administrator when the return is due whether or not a return is filed as required.

Ordinance No. 1221

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3. The tax due shall be no less than the monthly installment due.

4. Tax statements and payments for all outstanding taxes owed the city are due to the Tax Administrator within 15 days of cessation of business for any reason or transfer of ownership, operation, or management.

5. The Tax Administrator may, at his or her discretion, establish an alternate reporting and payment period for any taxpayer as the Tax Administrator deems necessary to insure collection of the tax.

3.32.070 Payments and communications – timely remittance.

Whenever any payment, statement, report, request or other communication is due, it must be received by the Tax Administrator on or before the final due date. A postmark will not be accepted as timely remittance. If the due date falls on Saturday, Sunday, holiday, or a day City Hall is closed, the due date shall be the next regular business day on which City Hall is open to the public.

3.32.080 Payment - when taxes deemed delinquent.

Unless otherwise specifically provided under other provisions of this chapter, the taxes required to be paid pursuant to this chapter shall be deemed delinquent if not received by the Tax Administrator on or before the due date as specified in Sections 3.32.060 and 3.32.070.

3.32.090 Notice not required by the City.

The city may as a courtesy send a tax notice to the business. However, the Tax Administrator is not required to send a delinquency or other notice or bill to any person subject to the provisions of this chapter. Failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this chapter.

3.32.100 Penalties and interest.

A. Any person who fails or refuses to pay any cannabis business tax required to be paid pursuant to this chapter on or before the due date shall pay penalties and interest as follows:

1. A penalty equal to ten percent (10%) of the amount of the tax, in addition to the amount of the tax, plus interest on the unpaid tax calculated from the due date of the tax at the rate of one-half of one percent (0.5%) per month, compounded with each delinquency.

2. If the tax remains unpaid for a period exceeding two calendar months beyond the due date, an additional penalty equal to twenty-five percent (25%) of the amount of the tax, plus interest at the rate of one-half of one percent (0.5%) per month on the unpaid tax and on the unpaid penalties.

3. Interest shall be applied at the rate of one-half of one percent (0.5%) per month on the first day of the month for the full month, and will continue to accrue monthly on the tax and penalty until the balance is paid in full.

B. Whenever a check or electronic payment is submitted in payment of a cannabis business tax and the payment is subsequently returned unpaid by the bank for any reason, the taxpayer will be liable for the tax amount due plus any fees, penalties and interest as provided for in this chapter, and any other amount allowed under state law.

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3.32.110 Refunds, credits, and procedures.

A. No refund shall be made of any tax collected pursuant to this chapter, except as provided in this section.

B. No refund of any tax collected pursuant to this chapter shall be made because of the discontinuation, dissolution, or other termination of a business.

C. Whenever the amount of any cannabis business tax, penalty or interest has been overpaid, paid more than once, or has been erroneously collected or received by the city under this chapter, it may be refunded to the claimant who paid the tax provided that a written claim for refund is filed with the Tax Administrator within three years of the date the tax was originally due and payable.

D. The Tax Administrator, his or her designee or any other city officer charged with the administration of this chapter shall have the right to examine and audit all the books and business records of the claimant to determine the eligibility of the claimant to the claimed refund.

No claim for refund shall be allowed if the claimant refuses to allow such examination of claimant's books and business records after request by the Tax Administrator to do so.

E. If the cannabis business tax was erroneously paid and the error is attributable to the city, the city shall refund the amount of tax erroneously paid up to one year from when the error was identified. If an error is attributable to the claimant, the city may retain an amount established by resolution of the city council from time to time in an amount sufficient to recover the city’s cost to process the claim and refund the balance.

3.32.120 Exemptions from the tax.

The provisions of this chapter shall not apply to personal cannabis cultivation as defined in the MAUCRSA or any subsequent state legislation regarding the same. This chapter shall not apply to personal use of cannabis that is specifically exempted from state licensing requirements, that meets the definition of personal use or equivalent terminology under state law, and for which the individual receives no compensation whatsoever related to that personal use.

3.32.130 Administration of the tax.

A. It shall be the duty of the Tax Administrator to collect the taxes, penalties, fees, and perform the duties required by this chapter.

B. For purposes of administration and enforcement of this chapter generally, the Tax Administrator may from time to time promulgate such administrative rules and procedures consistent with the purpose, intent, and express terms of this chapter as he or she deems necessary to implement or clarify such provisions or aid in enforcement.

C. The Tax Administrator may take such administrative actions as needed to administer the tax, including but not limited to:

1. Provide all cannabis business taxpayers forms for the reporting of the tax;

2. Provide information to any taxpayer concerning the provisions of this chapter;

3. Receive and record all taxes remitted to the city as provided in this chapter;

4. Maintain records of taxpayer reports and taxes collected pursuant to this chapter;

5. Assess penalties and interest to taxpayers pursuant to this chapter;

6. Determine amounts owed and enforce collection pursuant to this chapter; and/or
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7. Take such other reasonable steps as he or she deems necessary and appropriate to enforce this chapter.

3.32.140 Enforcement - action to collect.

A. Any taxes, penalties and/or fees required to be paid under the provisions of this chapter shall be deemed a debt owed to the city. Any person owing money to the city under the provisions of this chapter shall be liable in an action brought in the name of the city for the recovery of such debt. The provisions of this chapter shall not be deemed a limitation upon the right of the city to bring any other action including criminal, civil and equitable actions, based upon the failure to pay the tax, penalties and/or fees imposed by this chapter or the failure to comply with any of the provisions of this chapter.

B. In addition to any other remedies available under federal, state, or local law, if any amount required to be paid to the city under this chapter is not paid when due, the Tax Administrator may, within three years after the amount is due record a certificate of lien specifying the amount of taxes, fees and penalties due, and the name and address of the individual or business as it appears on the records of Tax Administrator. The lien shall also specify that the Tax Administrator has complied with all provisions of this chapter in the determination of the amount required to be paid. From the time of the filing for record, the amount required to be paid, together with penalties thereon, constitutes a lien upon all real property in the city owned by the individual or business, or subsequently acquired by the individual or business before the lien expires. The lien has the force, effect, and priority of a judgment lien and shall continue for ten years from filing of the certificate unless sooner released or otherwise discharged.

C. At any time within three years after any individual or business is delinquent in the payment of any amount herein required to be paid or within three years after the last recording of a certificate of lien under subsection B of this section, the Tax Administrator may issue a warrant for the enforcement of any liens and for the collection of any amount required to be paid to the city under this chapter. The warrant shall be directed to the sheriff and shall have the same effect as a writ of execution. The warrant shall be levied and sale made pursuant to it in the same manner and with the same effect as a levy of and a sale pursuant to a writ of execution. The Tax Administrator may pay or advance to the sheriff, the same fees, commissions and expenses for service provided by law for similar services pursuant to a writ of execution. The Tax Administrator shall approve the fees for publication in the newspaper.

D. At any time within three years after recording a lien against any individual or business, if the lien is not discharged and released in full, the Tax Administrator may forthwith seize any asset or property, real or personal (including bank account), of the operator and sell at public auction the asset or property, or a sufficient part of it to pay the amount due together with any penalties and interest imposed for the delinquency and any cost incurred on account of the seizure and sale. Assets or property of the business subject to seizure and sale subject to this chapter shall not include any assets or property which is exempt from execution under the provisions of Code of Civil Procedure.

3.32.150 Apportionment.

If a business subject to the tax is operating both within and outside the city, it is the intent of the city to apply the cannabis business tax so that the measure of the tax fairly reflects the proportion of the taxed activity actually carried on in the city. To the extent federal or state law requires that any tax due from any taxpayer be apportioned, the taxpayer may indicate said apportionment on Ordinance No. 1221

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Packet Pg. 159 Attachment: Ordinance No. 1221 (3843 : Canvass of 2022 Municipal Election Results and Installation of Councilmembers) the form prescribed by the City for submitting cannabis business taxes . The Tax Administrator may promulgate administrative procedures for apportionment as he or she finds useful or necessary.

3.32.160 Constitutionality and legality; not a sales tax.

A. This tax is intended to be applied in a manner consistent with the United States Constitution and state law. None of the tax provided for by this chapter shall be applied in a manner that causes an undue burden upon interstate commerce, a violation of the equal protection and due process clauses of the Constitution of the United States or the State of California or a violation of any other provision of applicable law.

B. The taxes imposed under this chapter are excises on the privilege of engaging in a commercial business in the city. It is not a sales or use tax and shall not be calculated or assessed as such. Nevertheless, at the option of a commercial cannabis business, the tax may be separately identified on invoices, receipts and other evidences of transactions.

3.32.170 Audit and examination of records and equipment.

A. The Tax Administrator shall have the power to audit and examine all books and records of persons engaged in cannabis businesses, including both state and federal income tax returns, sales tax returns, or other evidence documenting the gross receipts of persons engaged in cannabis businesses, and, where necessary, all equipment, of any person engaged in cannabis businesses in the city, for the purpose of ascertaining the amount of commercial cannabis tax, if any, required to be paid by the provisions hereof, and for the purpose of verifying any statements or any item thereof when filed by any person pursuant to this chapter.

B. It shall be the duty of every person liable for the collection and payment to the city of any tax imposed by this chapter to keep and preserve, for a period of at least four years, all records as may be necessary to determine the amount of such tax as he or she may have been liable for the collection of and payment to the city, which records the Tax Administrator or his/her designee shall have the right to inspect at all reasonable times.

3.32.180 Other licenses, permits, taxes, fees, or charges.

A cannabis business subject to the provisions of this chapter shall also be subject to the business license tax requirements defined in Title 5 of the Healdsburg Municipal Code. Nothing contained in this chapter shall be deemed to repeal, amend, be in lieu of, replace or in any way affect any requirements for any permit or license required by, under or by virtue of any other provision of this code or any other ordinance or resolution of the city, nor be deemed to repeal, amend, be in lieu of, replace or in any way affect any tax, fee or other charge imposed, assessed or required by, under or by virtue of any other chapter of this code or any other ordinance or resolution of the city.

Any references made or contained in any other chapter of this code to any licenses, license taxes, fees, or charges, or to any schedule of license fees, shall be deemed to refer to the licenses, license taxes, fees or charges, or schedule of license fees, provided for in other chapters of this code.

3.32.190 Payment of tax does not authorize activity.

The payment of a tax imposed under this chapter shall not be construed to authorize the conduct or continuance of any illegal business or of a legal business in an illegal manner. Nothing in this chapter authorizes or implies the lawfulness of any activity connected with the distribution or Ordinance No. 1221

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Packet Pg. 160 Attachment: Ordinance No. 1221 (3843 : Canvass of 2022 Municipal Election Results and Installation of Councilmembers) possession of cannabis unless otherwise authorized and allowed in strict and full conformance with this code. Nothing in this chapter shall be applied or construed as authorizing the sale of cannabis.

3.32.200 Deficiency determinations.

If the Tax Administrator is not satisfied that any statement filed as required under the provisions of this chapter is correct, or that the amount of tax is correctly computed, he or she may compute and determine the amount to be paid and make a deficiency determination upon the basis of the facts contained in the statement or upon the basis of any information in his or her possession or that may come into his or her possession within three years of the date the tax was originally due and payable. One or more deficiency determinations of the amount of tax due for a period or periods may be made. When a person discontinues engaging in a business, a deficiency determination may be made at any time within three years thereafter as to any liability arising from engaging in such business whether or not a deficiency determination is issued prior to the date the tax would otherwise be due. Whenever a deficiency determination is made, a notice shall be given to the person concerned in the same manner as notices of assessment are given under section

3.32.220.

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3.32.210 Failure to report.

A. Under any of the following circumstances, the Tax Administrator may make and give notice of an assessment of the amount of tax owed by a person under this chapter at any time:

1. If the person has not filed a complete statement required under the provisions of this chapter;

2. If the person has not paid the tax due under the provisions of this chapter; or

3. If the person has not, after demand by the Tax Administrator, filed a corrected statement, or furnished to the Tax Administrator adequate substantiation of the information contained in a statement already filed, or paid any additional amount of tax due under the provisions of this chapter.

B. The notice of assessment shall separately set forth the amount of any tax known by the Tax Administrator to be due or estimated by the Tax Administrator, after consideration of all information within the Tax Administrator's knowledge concerning the business and activities of the person assessed, to be due under each applicable chapter of this Title, and shall include the amount of any penalties or interest accrued on each amount to the date of the notice of assessment.

3.32.220 Tax assessment - notice requirements.

The notice of assessment shall be served upon the person either by personal delivery, or by a deposit of the notice in the United States mail, postage prepaid thereon, addressed to the person at the address of the location of the business or to such other address as he or she shall register with the Tax Administrator for the purpose of receiving notices provided under this chapter; or, should the person have no address registered with the Tax Administrator for such purpose, then to such person's last known address. For the purposes of this chapter, a service by mail is complete at the time of deposit in the United States mail.

3.32.230 Tax assessment - hearing, application, and determination.

A. Within 15 days after the date of service the person may apply in writing to the Tax Administrator for a hearing on the assessment. If application for a hearing before the city is not made within the time herein prescribed, the tax assessed by the Tax Administrator shall become final and conclusive.

B. Within 30 days of the receipt of any such application for hearing, the Tax Administrator shall cause the matter to be set for hearing before him or her no later than 30 days after the receipt of the application, unless a later date is agreed to by the Tax Administrator and the person requesting the hearing. Notice of such hearing shall be given by the Tax Administrator to the person requesting such hearing not later than ten days prior to such hearing. At such hearing said applicant may appear and offer evidence why the assessment as made by the Tax Administrator should not be confirmed and fixed as the tax due. After such hearing, the Tax Administrator shall determine and reassess the proper tax to be charged and shall give written notice to the person in the manner prescribed in section 3.32.220 for giving notice of assessment.

C. The decision of the Tax Administrator under this section may be appealed to the city manager as set forth in section 2.36.090 of the Healdsburg Municipal Code.

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3.32.240 Conviction for violation - taxes not waived.

The conviction and punishment of any person for failure to pay the required tax shall not excuse or exempt such person from any civil action for the tax debt unpaid at the time of such conviction.

No civil action shall prevent a criminal prosecution for any violation of the provisions of this chapter or of any state law requiring the payment of all taxes.

3.32.250 Violation deemed misdemeanor.

Any person violating any of the mandatory provisions of this chapter shall be deemed guilty of a misdemeanor and is punishable therefore as provided in section 1.12.070 of this code.

3.32.260 Remedies cumulative.

The penalties set forth in this chapter are cumulative and in addition to all other remedies, violations, and penalties set forth in the City Municipal Code, or in any other ordinance, laws, rules or regulations of the city, county, or the State of California.

SECTION 2. TAX STATEMENT OF FACTS. This Ordinance creates a business tax on cannabis businesses within the city at a maximum rate of eight percent of gross receipts. The revenue generated from the collection of such tax may be spent for unrestricted general revenue purposes.

SECTION 3. SEVERABILITY. If any provision, section, paragraph, sentence, phrase or word of this Ordinance is rendered or declared invalid, illegal or unconstitutional by any final action in a court of competent jurisdiction or by reason or any preemptive legislation, such unconstitutionality, illegality, or invalidity shall only affect such provision, section, paragraph, sentence, phrase or word and shall not affect or impair any remaining provisions, sections, paragraphs, sentences, phrases or words, or the application of this Ordinance to any other person or circumstance, and to that end, the provisions hereof are severable. It is hereby declared to be the intention of the city that that Ordinance would have been adopted had such unconstitutional, illegal, or invalid provision, section, paragraph, sentence, phrase, or word not been included herein.

SECTION 4. AMENDMENT OR REPEAL. This Ordinance may be repealed or amended by the city council without a vote of the people to the extent allowed by law. However, as required by Title XIII C of the California Constitution, voter approval is required for any amendment that would increase the rate of any tax levied pursuant to this chapter. The people of the City of Healdsburg affirm that the following actions shall not constitute an increase of the rate of a tax:

A. The restoration of the rate of the tax to a rate that is no higher than that set by this chapter, if the city council has acted to reduce the rate of the tax; B. An action that interprets or clarifies the methodology of the tax, or any definition applicable to the tax, so long as interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the language of this chapter; or C. The collection of the tax imposed by this chapter, even if the city had, for some period of time, failed to collect the tax.

SECTION 5. CALIFORNIA ENVIRONMENTAL QUALITY ACT. This Ordinance is exempt from the California Environmental Quality Act (CEQA), Public Resources Code Section 21000 et seq., because it can be seen with certainty that there is no possibility that the enactment Ordinance No. 1221

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Packet Pg. 163 Attachment: Ordinance No. 1221 (3843 : Canvass of 2022 Municipal Election Results and Installation of Councilmembers) of this Ordinance would have a significant effect on the environment (Pub. Resources Code § 21065; CEQA Guidelines §§ 15378(b)(4), 15061(b)(3)) and because the Ordinance involves the approval of government revenues to fund existing services (Pub. Resources Code § 21080, subd. (b)(8); CEQA Guidelines § 15273(a)(4)). It does not make any commercial activity lawful nor commit the city to fund any particular activity.

SECTION 6 . EFFECTIVE DATE. This ordinance shall become effective on January 1, 2023 if approved by a majority of the voters casting votes on the tax in the election.

SECTION 7. CERTIFICATION AND PUBLICATION. Upon approval by the voters, the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause it to be published according to law.

I hereby certify that the foregoing Ordinance was PASSED, APPROVED and ADOPTED by the People of the City of Healdsburg voting on the 8th day of November, 2022.

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

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Healdsburg City CouncilDecember 5, 2022

Healdsburg City Council
December 5, 2022