exempt from CEQA pursuant to CEQA Guidelines Section 15304 Minor Alterations to Land, as it provides procedures for the authorization of the use of land having negligible or no permanent effects on the environment and does not involve the removal of healthy, mature scenic trees.
Further, special events are considered normal operations of existing facilities for public gatherings (CEQA Guidelines Section 15323). Temporary special events occurring at City venues have occurred with regularity for many years and future events would not represent a change in their operation. In addition, there will be no impact on environmental resources of hazardous or critical concern. The proposed Ordinance will not result in cumulative impacts, impacts to scenic highways, or historic resources, nor does the Ordinance involve a hazardous waste site or unusual circumstances. Therefore, none of the exceptions pursuant to CEQA Guidelines Section 15300.2 apply.
Section 6. 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 7. Effective Date and Publication
This Ordinance of the City of Healdsburg shall be effective thirty (30) days after the date of its passage. Before expiration of fifteen (15) days after its passage, this Ordinance or a summary thereof, as provided in Government Code section 36933, shall be published at least once in a newspaper of general circulation published and circulated in the City of Healdsburg, along with the names of the City Council members voting for and against its passage.
This ordinance was introduced by the City Council of the City of Healdsburg, County of Sonoma, at a regular meeting thereof on the 4th day of December, 2023, and passed and adopted on the 16th day of January, 2024 by the following roll call vote:
AYES: Councilmembers: ( )
NOES: Councilmembers: ( )
ABSENT: Councilmembers: ( )
ABSTAINING: Councilmembers: ( )
SO ORDERED ATTEST
__________________________________ ____________________________________ David Hagele, Mayor Raina Allan, City Clerk
Dated: ______________________________
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Packet Pg. 110 Attachment: Attachment B - Proposed HMC Chapter 12.24 Special Events (4117 : Chapter 12.24 of Municipal Code - Second Reading) Ordinance No.
EXHIBIT A
Chapter 12.24 – SPECIAL EVENTS
Sections:
12.24.010 – Purpose and intent.
12.24.020 – Definitions.
12.24.030 – Special event permit required.
12.24.040 – Special event permit application.
12.24.050 – Review process.
12.24.060 – Denial/revocation of special event permit.
12.24.070 – Applicable fees, deposit.
12.24.080 – Content of special event permit.
12.24.090 – Appeals.
12.24.100 – Hold harmless.
12.24.110 – Display of special event permit.
12.24.120 – Administrative regulations or policies.
12.24.130 – Penalties.
12.24.010 – Purpose and intent.
The purpose of this Chapter is to provide a coordinated process for managing special events in the City of Healdsburg to ensure the health and safety of event patrons, residents, workers, and other visitors, to prohibit illegal activities from occurring at special events, and to create mechanisms for cost recovery and use charges, to the extent authorized by law, while not unduly impacting the viability of special events. It is recognized that these special events enhance Healdsburg’s lifestyle and provide benefits to residents, visitors and organizations through the creation of unique venues for expression and entertainment that are not normally provided as a part of governmental services.
12.24.020 – Definitions.
The following words and phrases, whenever used in this chapter, shall be construed as defined in this Chapter:
A. “Applicant” means any individual or group who has submitted a Special Event application for the purpose of planning, coordinating and executing a Special Event.
B. “Application” means a form approved by the City, which an applicant must submit pursuant to Section 12.24.040.
C. “Assembly” means the assembling or coming together of a number of persons for a particular purpose.
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Packet Pg. 111 Attachment: Attachment B - Proposed HMC Chapter 12.24 Special Events (4117 : Chapter 12.24 of Municipal Code - Second Reading) Ordinance No.
D. “City property” means all real property and improvements owner, operated or controlled by the City within the City’s jurisdiction. City property includes, but is not limited to City Hall, police and fire facilities, recreational facilities, parks, libraries, and streets and sidewalks.
E. “Conditions of approval” or “Conditions” means specific requirements, restrictions, or obligations attached to the special event permit that are narrowly tailored to address safety concerns and mitigate community impacts.
F. “Expressive activity” means conduct, the sole or principal object of which is the expression of opinion, views, or ideas, protected by the First Amendment of the U.S.
Constitution. Expressive activity includes, but is not limited to, public oratory and distribution of literature.
G. “External special event” or “External event” – Any special event that is not managed by the City of Healdsburg or held in official partnership with the City pursuant to the City’s Special Events Policy.
H. “Facility use permit” means an authorization that grants individuals or organizations permission to utilize an indoor or outdoor public space for a wide range of activities or events that does not otherwise require a special event permit.
I. “Film permit” means an authorization to engage in the taking of motion pictures, television, digital media or commercial still photography.
J. “Major event” means a special event with an anticipated attendance of more than five hundred (500) and has one or more of the following characteristics:
1. A duration of more than eight (8) hours, including set-up and clean-up.
2. On-site sale or consumption of alcoholic beverages.
3. Road or lane closure(s).
4. Occurring between 10:00 p.m.-6:00 a.m.
5. Occurring over multiple days; either on subsequent days or part of a series.
6. A special event determined by the Community Services Director or designee to have a high overall impact on City facilities, infrastructure, and resources.
K. “Minor event” means a special event with a duration of eight (8) or less hours, including set-up and clean-up, and an anticipated attendance of 500 people or less, that does not include any of the characteristics of a major event. Examples of minor events could include but are not limited to local community gatherings or smaller-scale exhibitions.
L. “Organize” means to organize, operate, manage, stage, promote, sponsor or carry on a special event.
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Packet Pg. 112 Attachment: Attachment B - Proposed HMC Chapter 12.24 Special Events (4117 : Chapter 12.24 of Municipal Code - Second Reading) Ordinance No.
M. “Organizer” means the person who organizes, operates, manages, stages, promotes, sponsors or carries on a special event.
N. “Permit” means a special event permit issued by the issuing entity, as defined below, consistent with the provisions of this Chapter.
O. “Permittee” means any person that has been issued a permit to organize a special event in accordance with this Chapter.
P. “Person” means and includes an individual, corporation, partnership, trust, non-profit organization, association, group or other business entity or organization.
Q. “Issuing entity” means either:
1. The Community Services Director or their designee; or
2. The City Council, for external special events with anticipated attendance of 1,000 people or more.
R. “Special event” means any of the following:
1. Any organized formation, parade, procession, demonstration or assemblage consisting of one hundred (100) or more persons which may include persons, animals, vehicles or any combination thereof, which is to assemble or travel in unison on any public street, sidewalk or the public right-of-way owned or controlled by the City and which does not comply with applicable traffic regulations, laws, or controls; or
2. Any organized assemblage of one hundred (100) or more persons at any public place, public property, or public facility which is to gather for a common purpose under the direction or control of a person; or
3. Any other organized activity conducted by a person for a common or collective use, purpose or benefit which shall require the use of City public services for police regulation, monitoring or control, street closure, erecting barriers, or traffic control, parking needs that will exceed the capacity of the venue, or that will interfere with normal use and operation of public right-of-ways for travel.
S. “Council request” means a formal request from a special event applicant to engage in a written agreement with the City for a special event with an estimated attendance of over 1,000 people. Such requests would include requests for inclusion of the event in the City’s Master Calendar of Events and requests for certain waivers as provided in the Healdsburg Special Events Policy and Municipal Code.
12.24.030 – Special event permit required.
6.C.b
Packet Pg. 113 Attachment: Attachment B - Proposed HMC Chapter 12.24 Special Events (4117 : Chapter 12.24 of Municipal Code - Second Reading) Ordinance No.
A. Permit Required. Except when expressly provided pursuant to the terms of a permit, lease, or contract which has been specifically authorized by the City Council, no person shall operate any special event regulated by this Chapter without first obtaining a permit in accordance with the provisions of this Chapter, unless exempt as set forth below.
B. Exempt Activities. Although not required to obtain a special event permit, an organizer of an activity exempted pursuant to this section is required to comply with general regulations governing public safety or health:
1. Spontaneous events occasioned by news or affairs coming into public knowledge less than forty-eight (48) hours prior to such event if all of the following factors are satisfied:
a. The organizer provides the Community Services Department with at least four (4) hours of prior notice of the spontaneous event with their name and on-site phone number;
b. The spontaneous event does not impede vehicular traffic or violate regulations regarding pedestrian and vehicular traffic; and
c. The location where the spontaneous event is to be conducted has not been previously rented, reserved, or otherwise obligated to another use in accordance with established City policies and procedures for use and/or rental of City facilities.
Events which require a permit pursuant to other chapters of the Municipal Code, including but not limited to group activities in City-owned parks, shall not be considered spontaneous events.
2. Events that would otherwise fall under a facility use permit or a film permit. a. A facility use permit shall be required for the use of certain City facilities, such as parking lots, picnic areas, or City-owned building, ensuring that proposed activities are conducted safely and in accordance with state and local law. A facility use permit may specify details such as the date, time, and location of the event, any fees or insurance requirements, as well as any restrictions or responsibilities imposed on the permit holder to maintain the integrity of the public space and ensure the well-being of users and the surrounding community. Indoor activities are limited to the building’s capacity and outdoor activities are limited to 100 people at a given time. b. A film permit shall be required for the taking of motion pictures, television, digital media or commercial still photography.
3. Bike tours, rides, runs, races, and courses and similar events (not including parades or marches) that involve the use of public roads or streets within the City are exempt from the special event permit requirement, provided that they abide by the following:
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Packet Pg. 114 Attachment: Attachment B - Proposed HMC Chapter 12.24 Special Events (4117 : Chapter 12.24 of Municipal Code - Second Reading) Ordinance No.
a. Organizers must ensure that all participants, support staff, and equipment adhere to the provisions of the California Vehicle Code. This includes, but is not limited to, complying with traffic rules, signals, and guidelines to ensure the safety of both participants and the general public. b. Organizers are required to notify the Community Services Department of the event's date(s), time(s), route(s), projected attendance, and anticipated impact on traffic within forty-five (45) days of the event.
c. Any segments of the course that pass through the City must receive approval from the Community Services Department.
d. Any limitations required by the City to accommodate planned road work, road closures, emergency repairs, or any other activities that could affect City services or disrupt the course.
12.24.040 – Special event permit application.
A. An application for a special event permit shall be filed with the Community Services Department on a form approved by the Community Services Director or designee not less than thirty (30) calendar days before the proposed special event for minor events, not less than fortyfive (45) calendar days before the proposed special event for major events, and no more than 1- year in advance for all events. The application must include the following information:
1. A description of the proposed use, event, or activity;
2. The street or other public property and the specific area or areas thereof which will be utilized in connection with the proposed special event, including a description of any noise generating equipment, such as sound-amplifying equipment;
3. The manner in which the public property will be utilized;
4. The date or dates and the specific times thereof, including set-up and tear-down, that the public property is to be utilized for the described special event;
5. The name, address and telephone number of the person, entity, or organization sponsoring or conducting the proposed special event;
6. The name, address and telephone number of the person(s) responsible for managing and leading the proposed special event, in the event the City must contact said individual(s) on the day or day(s) of the proposed special event;
7. The name, address and telephone number of the person or persons to be contacted regarding the application or permit;
8. Site layout and circulation plan for events requiring street closures;
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Packet Pg. 115 Attachment: Attachment B - Proposed HMC Chapter 12.24 Special Events (4117 : Chapter 12.24 of Municipal Code - Second Reading) Ordinance No.
9. Insurance and surety bond information, with worker’s compensation declaration; and
10. Additional supplemental information as requested.
B. External special events anticipated to involve the attendance of 1,000 or more persons, shall, in addition to submitting an application as specified in this section, be required to enter into a cost recovery deposit agreement, fee agreement, or other use agreement, all subject to review and approval by the City Council.
C. Special events seeking partnership with the City shall follow the procedure set forth in the Special Events Policy.
D. In addition to the special events permit, additional permits / licenses may be required and are not limited to the following:
1. Tent, Building, Picnic, Banner, or Facility Use Permit
2. Food Permit, or Community Event Organizer Permit
3. ABC License
4. Pyrotechnics Permit
5. Film Permit
12.24.050 – Review process.
A. Subject to the criteria for denial set forth in Section 12.24.060, the issuing entity shall issue a special event permit if it is determined that the proposed special event is consistent with this Chapter and the City’s Special Events Policy and all of the following criteria have been met:
1. The proposed use of City property for the special event is not otherwise governed by or subject to any other permit procedures provided elsewhere in this Code or the Special Events Policy.
2. The preparation for or the conduct of the proposed special event will not unduly impede, obstruct, or interfere with the operation of emergency vehicles or equipment in or through the particular permit area or adversely affect the City’s ability to perform municipal functions or furnish City services in the vicinity of the permit area.
3. The proposed special event does not otherwise present a substantial safety, noise, environmental, or traffic hazards, considering the number of participants and proposed location, such as to endanger the health or safety of the event participants, general public, or City employees, which cannot be adequately remedied by reasonable traffic control and other safety measures.
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Packet Pg. 116 Attachment: Attachment B - Proposed HMC Chapter 12.24 Special Events (4117 : Chapter 12.24 of Municipal Code - Second Reading) Ordinance No.
B. In deciding whether to approve an application, no consideration may be given to the message of the event, the content of speech, or the identity or associational relationships of the applicant.
C. Preference for use of facilities governed by this Chapter shall be given, whenever possible to City-managed or partnered events, City-based non-profit organizations, residents, and businesses.
12.24.060 – Denial/revocation of special event permit.
The issuing entity may deny any application for a special event permit or revoke such a permit if the issuing entity finds any of the following:
A. One or more of the approval criteria specified in Section 12.24.050 is not or can no longer be met;
B. The applicant has knowingly made a false, misleading or fraudulent statement of fact to the City in the application process;
C. The applicant does not adhere to all conditions of approval or if the facility is destroyed, damaged, or otherwise unusable.
D. The application does not contain the information required by this Chapter; E. The application does not satisfy the requirements of this Chapter; F. The applicant fails to comply with any conditions of approval including, but not limited to:
1. Timely remittance of applicable fees, charges or deposits,
2. Submittal of an indemnification agreement and/or proof of insurance for the special event as required by the City;
3. Timely submittal of all required documents.
G. The applicant has damaged City property and has not paid in full for such damage or has other outstanding and unpaid debts related to a prior Special Event permit issued by the City.
H. The special event is scheduled to occur at a location and time in conflict with another special event already scheduled, or in conflict with City-sponsored programming.
I. The Special Event is in conflict with applicable provisions of any federal, state and/or local laws, including the City’s Special Events Policy.
12.24.070 – Applicable fees, deposit.
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Packet Pg. 117 Attachment: Attachment B - Proposed HMC Chapter 12.24 Special Events (4117 : Chapter 12.24 of Municipal Code - Second Reading) Ordinance No.
A. Fees. Special event permit application fees pursuant to this Chapter shall be established by separate resolution of the City Council. Where a special event requires street closure, barriers, or other infrastructure, the Applicant shall pay such fees as may be established by resolution of the City Council for traffic control and related municipal expenses, including but not limited to public safety, services, solid waste and recycling services, building inspections, and any other applicable fees. Additionally, use of City buildings or facilities shall be subject to any use or rental fees established by the City which shall be deposited by the Applicant prior to use.
B. Deposit. A refundable security deposit shall be required to be deposited with the City Community Services Department no later than seven (7) business days prior to the date of the special event pursuant to the Special Events Policy.
12.24.080 – Content of a special event permit.
A special event permit may contain the following information or conditions:
A. The location of the special event venue, which may be identified by a map attached to the special event permit;
B. The date, assembly area, time for assembly and starting time of the special event; C. The specific route plan to the special event;
D. The minimum and maximum speeds of the special event; E. The number and of persons and number and types of animals and vehicles, the number of bands, other musical units and equipment capable of producing sound, if any, and limitations thereon pertaining to noise abatement;
F. The maximum interval of space to be maintained between booths or other structures to be used for the special event;
G. The portion of the street and sidewalk that is to be occupied by the event and the location of reviewing or audience stands, if any;
H. The number and location of traffic controllers, monitors, other support personnel and equipment and barricades to be furnished by the special event organizer, I. Conditions or restrictions on the use of alcoholic beverages, such as requiring a security plan, and authorization for and conditions of the exclusive control or regulation of vendors and related sales activity by the event organizer during the special event; J. Conditions to make adequate provisions for cleaning–up the area or route of the special event both during and upon completion of the event and to return the area or route to the
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Packet Pg. 118 Attachment: Attachment B - Proposed HMC Chapter 12.24 Special Events (4117 : Chapter 12.24 of Municipal Code - Second Reading) Ordinance No.
same condition of material preservation and cleanliness as existed prior to the special event;
K. Conditions requiring the event organizer to ensure notification is provided to all property owners impacted by any road or lane closure for the special event.
L. Provisions for any required emergency medical services; and, M. Such other information and conditions as are reasonably necessary for the conduct of the special event and the enforcement of this Chapter, including the requirement for the on– site presence of the event organizer or its designated representative for all event coordination and management purposes.
12.24.090 – Appeals.
A. If the Community Services Director or designee denies the application for the special event permit, they shall notify the applicant in writing as soon as is reasonably practical.
B. The denial of a special event permit may be appealed to the City Council. An appeal shall be made in writing within five (5) calendar days of the date of the written denial. An appeal is made by filing a written petition with the City Clerk setting forth the grounds for the appeal, along with the requisite fee per the current Master Fee Schedule.
C. The appeal hearing shall be scheduled for the next available City Council meeting.
D. The decision of the City Council to grant or deny the appeal shall constitute the exhaustion of the applicant’s administrative remedy.
12.24.100 – Hold harmless.
Each special event permittee shall execute a hold harmless agreement in a form approved by the City agreeing to defend, indemnify, and hold harmless the City against losses and liabilities incurred from the willful or negligent acts or omissions of the permittee or its officers, employees, and agents. If City property is destroyed or damaged by reason of permittee’s special event and the damage or destruction is directly attributable to the permittee, the permittee shall reimburse the City for the actual replacement or repair cost of the destroyed or damaged property. Nothing in this provision shall require a permittee to indemnify the City from claims or losses occasioned by the reaction of third parties to expressive activity at the permittee’s special event.
12.24.110 – Display of special event permit.
A copy of the special event permit shall be displayed at the event site and shall be exhibited upon demand of any City official.
12.24.120 – Administrative regulations or policies, waivers.
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Packet Pg. 119 Attachment: Attachment B - Proposed HMC Chapter 12.24 Special Events (4117 : Chapter 12.24 of Municipal Code - Second Reading) Ordinance No.
The Community Services Director or designee may adopt administrative regulations or policies and/or approve waivers that are consistent with and that further the terms and requirements set forth within this Chapter, and as may be necessary to coordinate multiple uses of public property, assure preservation of public property and public places, prevent dangerous, unlawful uses, protect the safety of persons and property and to control vehicular and pedestrian traffic. All such administrative regulations or policies must be in writing.
12.24.130 – Penalties.
Any person who intentionally violates any of the provisions of this Chapter shall be guilty of a misdemeanor. Violations of this chapter may enforced pursuant to any laws and remedies available to the City including but not limited to enforcement as a misdemeanor and/or public nuisance pursuant this Code.
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Packet Pg. 120 Attachment: Attachment B - Proposed HMC Chapter 12.24 Special Events (4117 : Chapter 12.24 of Municipal Code - Second Reading) No. Reference / Existing Code Proposed Change(s) Rational to Proposed Change(s) 1 12.24.030 – Application shall be
submitted 30 days prior to event for all
events.
Alter submission deadlines for major events to 45 days and for minor events to 30 days. To implement this change, all special events and exceptions to the policy or municipal code would require review and approval during the application assessment by City Staff. City Staff is typically more proficient in crafting specific conditions aimed at addressing the significant interests of the City and not influenced by the content of the event's free speech.
The proposed adjustment would save considerable staff time for items that consistently receive recommendations from the Parks & Recreation Commission and approval of City Council. Moreover, it helps ensure traffic and pedestrian safety, maintaining public convenience, and regulating the competing uses of public forums. Lasty, allowing for a shorter approval for special event permits will allow for more accurate permit application submissions.
2 12.24.040 – Application shall be
approved/denied within five business
days.
See above. See above.
3 12.24.080 – Insurance with
endorsements shall be filed not less
than three business days prior to event.
Remove deadline for filing insurance documents.
As part of their special event application submission, applicants must provide a certificate of insurance that meets the City's minimum requirements with the necessary endorsements.
4 12.24.110 – An appeal shall be heard by
the City Council at its next regular
meeting.
The appeal hearing shall be scheduled for the next available City Council meeting. To ensure that appeals are accommodated in a timely manner. 5 No existing criteria Develop criteria for approving or denying special event requests. Proposed criteria included. Provides greater clarity in deciding whether to approve an application, no consideration may be given to the message of the event, the content of speech, or the identity or associational relationships of the Applicant. 6 Chapter 10.48 Parade Permits –
Prohibits conducting or participating in
any parade without a permit.
Repeal Chapter 10.48 Parade Permits Repetitive Code; Parade permits can be guided by HMC Chapter 12.24. 7 12.32.040 – Authorizing overnight
camping on public property for a special
event.
Repeal Section 12.32.040 Camping / Special event permit Repetitive Code; Camping equipment/personnel on public property overnight can be guided by HMC Chapter 12.24. 8 12.24.060 ‐ Establishment of fees. Update fee structure associated with special event permitting.
Applicable fess have been more clearly articulated in both the Special Event Policy and HMC, however, staff intends to updates the fee structure associated with the special event permitting during the next annual update of the Master Fee Schedule.
Proposed Changes to the Healdsburg Municipal Code
ATTACHMENT C ‐ Summary of Proposed HMC Changes
1 of 1
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Attachment: Attachment C - Summary of Proposed HMC Changes (4117 : Chapter 12.24 of Municipal Code
CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: January 16, 2024
SUBJECT: Ordinance amending the City of Healdsburg Zoning Map designations on Resultant Parcel 8 and Parcel 9 of the Saggio Hills Project (LUA 0003- 2023)
PREPARED BY: Linda Ruffing, Planning Consultant
STRATEGIC INITIATIVE(S):
Provide Effective Governance
RECOMMENDED ACTION(S):
Pass an ordinance approving Land Use Code Amendment LUA 0003-2023 to "clean up" the Zoning Map designations for Resultant Parcel 7, Resultant Parcel 8 and Parcel 9 of the Saggio Hills project.
COMMUNITY ENGAGEMENT/OUTREACH:
On October 10, 2023, the Healdsburg Planning Commission held a public hearing on General Plan and Zoning Map "clean up" amendments (GPA 0002-2023/LUA 0003-2023). The Planning Commission adopted Resolution No. 2023-23 recommending that the City Council approve the amendments.
On December 4, 2023, the City Council conducted a public hearing and adopted a resolution approving a General Plan amendment (GPA 0002-2023) to modify the land use map classifications for Resultant Parcel 7, Resultant Parcel 8, and Parcel 9 of the Saggio Hills project.
At that time, the Council introduced an ordinance to approve a Land Use Code amendment (LUA 0003-2023) to amend the Zoning Map designations for Resultant Parcel 7, Resultant Parcel 8, and Parcel 9 of the Saggio Hills project.
BACKGROUND:
In 2011, the City Council approved the Saggio Hills Project. The approval included several actions including approval of a Development Agreement ("Saggio DA") between the City and the developer. Per the Saggio DA, Parcel 9 (the "Pump Station parcel") and Parcel 8 (the "Community Park parcel") were required to be transferred to the City. The developer retained a non-exclusive easement over a portion of the Community Park parcel at the corner of Healdsburg Avenue and Passalacqua Drive to provide access to a vineyard that was planted as an entry
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feature for the Montage Healdsburg Resort ("Vineyard Easement"). In addition, the developer was required to dedicate public access easements across Parcel 7 (an open space parcel retained by the resort) for the multi-use trail that will extend from Healdsburg Avenue, through the Community Park parcel and Parcel 7, to the Affordable Housing parcels (Parcels 5 & 6). In 2022, the City, Sonoma Luxury Resort (the Saggio Hills project developer) and Oaks & Olives (the Montage Healdsburg Resort owner) agreed to perform a "parcel swap", whereby Parcel 7 would be merged into the Community Park parcel and transferred to the City and the Vineyard Easement would be established as a separate parcel and transferred to Oaks & Olives. In April 2023, the actions necessary to complete this transaction were undertaken.
DISCUSSION/ANALYSIS:
The intent of LUA 0003-2023 is to "clean up" the Zoning Map designations for Resultant Parcel 7, Resultant Parcel 8, and Parcel 9 to reflect the changes in ownership of the parcels following the "parcel swap." The proposed Zoning Map amendment corresponds to the changes in ownership of the subject parcels such that the parcels which are now owned by the City (Resultant Parcel 8 and Parcel 9) will have the Public (P) zoning designation which is consistent with the public use of the two parcels (i.e., Community Park and Pump Station). The privatelyowned parcel, Resultant Parcel 7, (formerly the Vineyard Easement) will have the Planned Development (PD) zoning designation. These designations are consistent with the General Plan map designations approved by the City Council on December 4, 2023, and are consistent with the Zoning Map designations assigned to other parcels within the Saggio Hills project.
ENVIRONMENTAL STEWARDSHIP:
The Land Use Code amendment is intended to "clean up" the General Plan Map and Zoning Map designations for the three affected parcels to reflect the new parcel boundaries and the changes in ownership of the parcels. The amendments do not affect environmental stewardship. However, the underlying transaction (i.e., the parcel swap) will enhance the City's ability to manage the community park property for the benefit of both park users and the environment.
ALTERNATIVES:
No alternatives are provided in that the requested action is the second reading of an ordinance.
FISCAL IMPACT:
The Saggio Hills project (now known as the "Montage Healdsburg" project) is a privatelyfunded development that generates property tax, sales tax and transient occupancy tax revenues which help offset the City's costs of providing services to the project. All City costs for processing project entitlements are funded by the property owners in accordance with Cost Recovery Agreements. The proposed Zoning Map amendments will have no fiscal impact on the City of Healdsburg.
ENVIRONMENTAL ANALYSIS:
On January 31, 2011, the Healdsburg City Council certified the Final Environmental Impact Report ("EIR") for the Saggio Hills Planned Development Project (State Clearinghouse No. 2003062025) and adopted related findings, a Mitigation Monitoring and Reporting Program, and a Statement of Overriding Considerations. In accordance with Public Resources Code Section 21166 and California Environment Quality Act (CEQA) Guidelines Section 15183 (Projects
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Consistent with a Community Plan, General Plan, or Zoning), no further environmental review is required for the "clean up" of the zoning designations for three parcels within the Saggio Hills Planned Development Project area (Resultant Parcel 7, Resultant Parcel 8, and Parcel 9) because the actions would not result in on-site, off-site or cumulatively significant effects on the environment that were not examined in the certified EIR.
ATTACHMENT(S):
Ordinance
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CITY OF HEALDSBURG
ORDINANCE NO. ____
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG ADOPTING LAND USE CODE AMENDMENT
LUA 0003-2023 TO "CLEAN UP" ZONING MAP
DESIGNATIONS FOR RESULTANT PARCEL 7, RESULTANT
PARCEL 8, AND PARCEL 9 OF THE SAGGIO HILLS PROJECT
WHEREAS, in 2010 and 2011, the Healdsburg City Council approved entitlements for the Saggio Hills Development Project ("Project") as follows:
1. On January 31, 2011, the Saggio Hills Area Plan was adopted by Resolution No. 17-2011;
2. On January 31, 2011, Ordinance No. 1071 establishing pre-zoning designations for the Saggio Hills planning area was confirmed and ratified by Resolution No. 19-2011;
3. On January 31, 2011, a Tentative Subdivision Map was approved for the Saggio Hills Development Project by Resolution 18-2011;
4. Effective April 11, 2011, the City of Healdsburg ("City") and Sonoma Luxury Resort, LLC ("SLR") entered into a Development Agreement for the Saggio Hills Project ("Saggio DA") which was adopted by Ordinance No. 1107; and
WHEREAS, prior to the City Council’s approval of the Project entitlements, an Environmental Impact Report ("Saggio Hills Project EIR") was prepared pursuant to the California Environmental Quality Act (Pub. Res. Code § 21000, et seq.) (“CEQA”), (State Clearinghouse No. 2003062025), which analyzed the environmental impacts of development of the Project. The Saggio Hills Project EIR was certified by the City Council on January 31, 2011, and a Mitigation Monitoring and Reporting Program ("MMRP") was adopted by Resolution No. 15-2011; and WHEREAS, the Project, which is now known as "Montage Healdsburg", includes a destination resort with a 130-key resort hotel and associated amenities, 70 resort residences, a community park, public and private trails, a pump station, on-and off-site infrastructure and roadway improvements, conveyance of property to the City for development of affordable housing and a fire substation, and developer contributions for various public amenities; and WHEREAS, in May 2019, following construction of the Passalacqua Pump Station to serve the Project, SLR transferred title to the Pump Station Parcel (Parcel 9) to the City of Healdsburg as required by the Saggio DA; and
WHEREAS, in April 2021, SLR entered into an agreement that transferred and assigned to Oaks & Olives, LLC ("Oaks & Olives") certain rights and obligations of the Saggio DA that pertain to the parcels that Oaks & Olives acquired in conjunction with its purchase of the Montage Healdsburg Resort (Parcels 1, 4, and 7), and at that time and per the Saggio DA, SLR granted to
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Packet Pg. 125 Attachment: Ordinance (4306 : Land Use Code Amendments Saggio Hills Second Reading) Ordinance No.
Oaks & Olives a non-exclusive easement over a portion of the Community Park Parcel (Parcel 8) at the corner of Healdsburg Avenue and Passalacqua Drive to provide access to a vineyard that was planted as an entry feature for the Resort ("Vineyard Easement"); and WHEREAS, in 2022, the City, Oaks & Olives, and SLR conceptually agreed to a "parcel swap", whereby Parcel 7 would be merged into the Community Park Parcel (Parcel 8) and the Vineyard Easement would be established as a separate parcel and transferred to Oaks & Olives; and
WHEREAS, on April 11, 2023, the following actions were undertaken to effectuate the parcel swap:
1. A fourth Insubstantial Amendment to the Saggio DA was approved to authorize an exchange of property between SLR and Oaks & Olives which resulted in Parcel 7 (which was then owned by Oaks & Olives) being incorporated into Parcel 8 (which was then owned by SLR) in exchange for the transfer of land that was subject to a Vineyard Easement (an easement in favor of Oaks & Olives) from SLR to Oaks & Olives.
2. The Vineyard Easement was terminated.
3. Oaks & Olives transferred title to Parcel 7 to SLR.
4. Resultant Parcels 7 and 8, per Lot Line Adjustment LLA 2022-07, were recorded. Resultant Parcel 7 is the former "Vineyard Easement." Resultant Parcel 8 consist of the former Parcel 7 which has been merged with Parcel 8.
5. SLR transferred title to Resultant Parcel 7 to Oaks & Olives.
6. SLR transferred title to Resultant Parcel 8 to the City of Healdsburg; and WHEREAS, the City and Oaks & Olives now desire to amend the General Plan and Zoning Map designations for Resultant Parcels 7 and 8 and Parcel 9 to reflect the current public ownership of Resultant Parcel 8 and Parcel 9 and the current private ownership of Resultant Parcel 7; and WHEREAS, the Planning Commission held a duly noticed public hearing on October 10, 2023, at which it reviewed the proposed General Plan and Zoning Map amendments (GPA 0002-2023 and LUA 0003-2023), considered all public comments on the amendments, and adopted Planning Commission Resolution No. 2023-23 recommending that the City Council approve the proposed General Plan and Zoning Map amendments; and
WHEREAS, on December 4, 2023, the City Council held a duly noticed public hearing on General Plan Amendment GPA 0002-2023 and Land Use Code Amendment LUA 0003-2023, reviewed the written and verbal staff reports, took testimony, and received into the record all pertinent documents.
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Packet Pg. 126 Attachment: Ordinance (4306 : Land Use Code Amendments Saggio Hills Second Reading) Ordinance No.
WHEREAS, based upon the Planning Commission’s recommendation and information received at the December 4, 2023 public hearing, the City Council makes the following findings:
1. The environmental effects related to the use of Resultant Parcel 7 as a vineyard entry feature for the Montage Healdsburg Resort, and the use of Resultant Parcel 8 as a community park, and the use of Parcel 9 as a pump station were analyzed in Saggio Hills Project EIR, consistent with the provisions of the California Environmental Quality Act (“CEQA”).
2. In accordance with Public Resources Code Section 21166 and CEQA Guidelines Section 15183 (Projects Consistent with a Community Plan, General Plan, or Zoning), no further environmental review is required for Land Use Code Amendment LUA 0003-2023 which "cleans up" the Zoning Map designations for three parcels within the Saggio Hills Project area (Resultant Parcel 7, Resultant Parcel 8, and Parcel 9) because the amendment would not result in on-site, off-site or cumulatively significant effects on the environment that were not examined in the certified EIR.
3. The proposed Land Use Code amendment is in the public interest as it modifies the Zoning Map to assign a "Public" zoning designation to two parcels that are owned by the City of Healdsburg and a "Planned Development" zoning designation to a parcel owned by Oaks & Olives, LLC (the owner of the Montage Healdsburg Resort). These zoning designations are consistent with the master entitlements for the Saggio Hills Project. The Public designation is appropriate for Parcel 9 and Resultant Parcel 8 which are owned by the City of Healdsburg and used for public purposes. The Planned Development designation is appropriate for Resultant Parcel 7 which is owned by Oaks & Olives and used as a gateway feature for the Montage Healdsburg resort. Planned Development is the zoning designation that is assigned to all of the other parcels owned by the Resort.
4. Land Use Code Amendment LUA 0003-2023 is consistent and compatible with the policies and programs in the Healdsburg 2030 General Plan including the Goals, Policies and Implementation Measures of the Land Use Element, and as amended the Zoning Map would be internally consistent with all other provisions of the Healdsburg Municipal Code.
NOW, THEREFORE, the City Council of the City of Healdsburg does ordain as follows:
Section 1. Findings.
The above recitals are hereby declared to be true and correct findings of the City Council of the City of Healdsburg.
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Packet Pg. 127 Attachment: Ordinance (4306 : Land Use Code Amendments Saggio Hills Second Reading) Ordinance No.
Section 2. Title 20 "Land Use Code" of the Healdsburg Municipal Code is amended to revise the Zoning Map for three parcels in the Saggio Hills project as follows:
(a) Change Zoning Map designation for Resultant Parcel 7 from Public ("P") to Planned Development ("PD"),
(b) Change Zoning Map designation for the portion of Resultant Parcel 8 which is designated PD to P,
(c) Change Zoning Map designation for Parcel 9 from PD to P. (d) The following exhibit depicts the amended Zoning Map classifications:
Section 3. The amended zoning district boundaries shall be depicted on the Zoning Map with a notation of the date and number of this ordinance on the map.
Section 4. Environmental Compliance.
The proposed amendments to the Zoning Map are consistent with the Healdsburg 2030 General Plan and the Saggio Hills Area Plan and the environmental effects of the Saggio Hills Area Plan and subsequent entitlements were addressed in the Final Environmental Impact Report ("EIR") for the Saggio Hills Planned Development Project (State Clearinghouse No. 2003062025) prepared pursuant to the California Environmental Quality Act (CEQA) and certified by the Healdsburg City Council on January 31, 2011.
Section 5. Severability.
If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.
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Packet Pg. 128 Attachment: Ordinance (4306 : Land Use Code Amendments Saggio Hills Second Reading) Ordinance No.
Section 6. Effective Date and Publication.
This Ordinance of the City of Healdsburg shall be effective thirty (30) days after the date of its passage. Before expiration of fifteen (15) days after its passage, this Ordinance or a summary thereof as provided in Government Code section 36933, shall be published at least once in a newspaper of general circulation published and circulated in the City of Healdsburg, along with the names of the City Council members voting for and against its passage.
INTRODUCED by the City Council of the City of the Healdsburg on the 4th day of December, 2023, and PASSED and APPROVED at a regular meeting of the City Council on the 16th day of January, 2024, by the following vote:
AYES: Councilmembers: ( )
NOES: Councilmembers: ( )
ABSENT: Councilmembers: ( )
ABSTAIN: Councilmembers: ( )
SO ORDERED: ATTEST:
____________________________________ ____________________________________ David Hagele, Mayor Raina Allan, City Clerk
Dated: ______________________________
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Packet Pg. 129 Attachment: Ordinance (4306 : Land Use Code Amendments Saggio Hills Second Reading)
CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: January 16, 2024
SUBJECT: Roundabout Design Settlement with GHD
PREPARED BY: Larry Zimmer, Public Works Director
STRATEGIC INITIATIVE(S):
Maintain and Improve Infrastructure and Facilities
RECOMMENDED ACTION(S):
By motion, approve a settlement agreement between the City and GHD.
COMMUNITY ENGAGEMENT/OUTREACH:
Not applicable.
BACKGROUND:
On February 18, 2014, the City of Healdsburg entered into a Professional Services Agreement with GHD, a California Corporation, wherein GHD agreed to provide design services for the 5- way Roundabout Project for the City. During the construction of the project a claim was filed by the contractor, Bay Cities Paving and Grading, Inc. (Bay Cities) regarding the treatment of contaminated water. The claim between the City and Bay Cities was settled on August 17, 2020.
The City believes that the source of the claim was to some degree the responsibility of the designer, GHD. After failed attempts to negotiate with GHD the City of Healdsburg filed a Complaint for Damages against GHD.
DISCUSSION/ANALYSIS:
The City and GHD had been in negotiations regarding this issue since prior to the completion of the construction work, but in earnest since the City filed the complaint in late 2022.
GHD has agreed to a settlement of a $700,000.00 payment to the City, acceptance of no payment on $449,976.31 of GHD invoices to the City for services provided in closing out the construction project, and a full and final release of any future claims from either party.
ENVIRONMENTAL STEWARDSHIP:
Not applicable.
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ALTERNATIVES:
City Council could decline to approve the settlement agreement and provide additional direction to staff.
FISCAL IMPACT:
The settlement funds are recommended to be deposited in the Drainage Operating Fund. The 5- way roundabout project and subsequent settlement affected several funds within the City including drainage. The Drainage Operating Fund continues to carry a large fund deficit that will be substantially improved by the infusion of settlement funds. The proposed application of these revenues towards reducing liabilities in the Drainage Operating Fund is consistent with the adopted Surplus Policy and will significantly improve the long-term fiscal health of the City.
ENVIRONMENTAL ANALYSIS:
City Council’s approval of the settlement agreement is not subject to the provisions of the California Environmental Quality Act (CEQA) because approval of the agreement is not a project, since it will not have a direct or reasonably foreseeable indirect impact on the environment.
ATTACHMENT(S):
Settlement Agreement and Release of Claims
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{02207225;2} 1
Settlement and Release Agreement – City of Healdsburg v. GHD et al.
SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS
This Settlement Agreement and Release of Claims (hereinafter referred to as the “AGREEMENT”), effective January ____, 2024 (“Effective Date”), is entered into by and among the City of Healdsburg (the “CITY”), and GHD, Inc. (“GHD”). CITY and GHD are individually referred to herein as a “PARTY” and collectively referred to herein as “PARTIES.”
RECITALS
1. WHEREAS, on or about February 18, 2014, the CITY entered into a Professional Services Agreement with GHD to provide engineering design services for the CITY’s “5-Way Roundabout Project,” located in the City of Healdsburg, California (the “PROJECT”). On or about June 1, 2016, the CITY entered into a supplemental Professional Services Agreement with GHD to provide additional engineering and construction phase services for the Project. The February 2014 and June 2016 Professional Service Agreements are collectively referred to herein as the “CONTRACTS.”
2. WHEREAS, on or about November 2, 2022, the CITY filed a Complaint in Sonoma County Superior Court entitled, City of Healdsburg v. GHD, et al., Case no. SCV271977, against GHD arising out of GHD’s performance under the CONTRACTS. (“Complaint”).
3. WHEREAS, GHD maintains a claim/offset for unpaid fees in the principal amount of $449,976.31 for services rendered under the CONTRACTS.
4. WHEREAS, the PARTIES entered into a Tolling Agreement on or about February 9, 2023, to toll the statute of limitations relating to all potential claims and/or causes of action the CITY asserted in the Complaint, and GHD’s claim/offset for unpaid fees rendered under the CONTRACTS (jointly “DISPUTED CLAIMS”). The intent of the Tolling Agreement was to engage in mediation and/or settlement discussions to resolve the DISPUTED CLAIMS.
Based upon the Tolling Agreement, the CITY dismissed the Complaint without prejudice to facilitate the settlement process.
5. WHEREAS, the PARTIES, in order to avoid the uncertainties, inconvenience and expense of further litigation, and without in any way conceding the validity or sufficiency of any claims or contentions of any adverse PARTY, now desire to enter into this AGREEMENT in full settlement and release of all claims that have or could have been asserted among the PARTIES, whether known or unknown, suspected or unsuspected, arising out of, occurring in connection with, and/or relating to the DISPUTED CLAIMS, CONTRACTS and PROJECT on the terms and in consideration of the promises and agreements set forth below.
AGREEMENT
NOW THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged and in consideration of the foregoing recitals, all of which are incorporated
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Packet Pg. 132 Attachment: Settlement Agreement and Release of Claims (4300 : Roundabout Design Settlement with GHD) {02207225;2} 2
Settlement and Release Agreement – City of Healdsburg v. GHD et al. by reference herein, and the following provisions and covenants, the PARTIES hereto agree to the following terms:
1. Settlement Consideration
The consideration for settlement and release of all past, present, and future claims as to the DISPUTED CLAIMS, CONTRACTS and PROJECT with prejudice as to the PARTIES is as follows:
(a) In exchange for the consideration referred to herein, GHD agrees to pay SEVEN HUNDRED THOUNSAND DOLLARS AND ZERO CENTS ($700,000.00)
(“SETTLEMENT AMOUNT”) to the CITY. Payment to the CITY is due no later than thirty (30) days after receipt of the fully executed AGREEMENT. (b) Payment of the SETTLEMENT AMOUNT shall be via check made payable to “THE CITY OF HEALDSBURG” (“PAYEE”). Payment should be sent to “Burke, Williams & Sorensen, 60 South Market Street, Ste. 1000, San Jose, California, 95113.”
2. Good Faith Settlement
The PARTIES warrant, represent, and agree that this AGREEMENT has been entered into in good faith, at arm’s length, without collusion, and is the product of the negotiation of adverse interests, as between the PARTIES. The PARTIES represent to one another that the settlement contemplated by this AGREEMENT is in fact a good faith settlement within the meaning of sections 877 and 877.6 of the Code of Civil Procedure.
3. Mutual Release
Effective upon the CITY’s receipt of the SETTLEMENT AMOUNT set forth in Paragraph 1(a) above, each PARTY and, as applicable, each of their respective past, present, and future direct and indirect affiliated or related entities, predecessors and successors in interest, insurers, assigns, agents, representatives, officers, directors, shareholders, joint venturers, partners, employees, sureties, insurance carriers, insurance brokers, attorneys, and each of them, past, present, and future, whether or not named as parties to the DISPUTED CLAIMS, CONTRACTS or PROJECT (collectively “RELEASING PARTIES”), hereby fully release and forever discharge the other PARTY (collectively the “RELEASED PARTIES”) and, as applicable, each of the RELEASED PARTY’S respective direct and indirect affiliated or related entities, predecessors and successors in interest, insurers, assigns, agents, representatives, officers, directors, shareholders, joint venturers, partners, employees, sureties, attorneys, and each of them, past, present, and future, whether or not named as parties to the DISPUTED CLAIMS, CONTRACTS or PROJECT, with respect to any and all demands, causes of action, claims, liabilities, obligations, claims for indemnity, contribution, allocation, interests, liens, judgments, damages, debts, attorneys’ fees, expert and consultant fees, accounts, actions, and causes of action whether in law, tort, contract, equity or otherwise, which the RELEASING PARTIES have, may have, or contend to have against the RELEASED PARTIES pertaining to the DISPUTED CLAIMS, CONTRACTS and PROJECT.
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Settlement and Release Agreement – City of Healdsburg v. GHD et al.
4. Unknown Claims
The PARTIES acknowledge that there is a risk that, subsequent to the execution of this AGREEMENT, the PARTIES may discover, incur, or suffer claims which were unknown or unanticipated at the time this AGREEMENT is executed, including, without limitation, unknown or unanticipated claims which arise from, are based upon, or are related to the DISPUTED CLAIMS, CONTRACTS or PROJECT and/or some aspect thereof, which if known by the PARTIES on the date of this AGREEMENT being executed, may have materially affected their decision to execute this AGREEMENT. Each PARTY acknowledges and agrees that, as a condition of this Release, it expressly releases all rights and claims that it knows about as well as those it may not know about. Each PARTY expressly waives all rights under Section 1542 of the Civil Code of the State of California, which reads as follows:
“A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.”
The PARTIES acknowledge that the PARTIES are aware that they may hereafter discover facts different from or in addition to what they now know or believe to be true with respect to the matters herein released, and they agree that these releases shall be and remain in effect in all respects as complete releases as to the matters released, notwithstanding any such different or additional facts. The PARTIES acknowledge that they have been informed of Section 1542 of the California Civil Code and do hereby expressly waive and relinquish all rights and benefits, if any, which they have or may have under said Section and any similar or comparable federal, state, or local law. The PARTIES represent, warrant, and agree that this waiver is a material term of this AGREEMENT, without which the PARTIES would not have entered into the AGREEMENT.
Notwithstanding the provisions of Section 1542, and for the purpose of implementing a full and complete release and discharge of the PARTIES as to the DISPUTED CLAIMS, CONTRACTS and PROJECT, each PARTY expressly acknowledges that this Release is intended to include and does include in its effect, without limitation, all claims and disputes related to the DISPUTED CLAIMS, CONTRACTS and PROJECT which it does not know or suspect to exist in its favor against the other PARTIES.
5. Covenant Not to Sue
The PARTIES further agree that they shall not, at any time hereafter, commence, maintain or prosecute any action, suit, proceeding, investigation, complaint, grievance or charge with any court, administrative agency, arbitrator or any other body or person, whether Federal, State, contractual or otherwise, or aid or assist others in prosecuting such action, suit, proceeding, investigation, complaint, grievance or charge on their behalf, except in response to governmental agency or court inquiries or as compelled by legal process, against any RELEASED PARTIES based upon the DISPUTED CLAIMS, CONTRACTS or PROJECT.
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Settlement and Release Agreement – City of Healdsburg v. GHD et al.
6. Binding Effect
This AGREEMENT shall be binding upon the PARTIES and inure to the benefit of the PARTIES’ hereto and their respective successors, heirs, assigns, spouses, children, grantees, lien claimants, personal representatives, agents, parent corporations, subsidiary corporations, affiliated entities, directors, shareholders, insurers and all others, including but not limited to individuals, partnerships, and corporations connected with the DISPUTED CLAIMS, CONTRACTS or PROJECT previously mentioned herein in this AGREEMENT.
7. Fees and Costs
Except as set forth in 1(a), the PARTIES shall each bear their own costs, including attorney’s fees, expert costs, liens, and any other costs incurred in or with respect to the DISPUTED CLAIMS, including the preparation, drafting, and execution of this AGREEMENT and with respect to compliance with their respective obligations as set forth herein.
8. Disputes
Notwithstanding the above provisions, any disputes concerning application, interpretation, and/or breach of this AGREEMENT arising between the PARTIES following execution of this AGREEMENT, shall be submitted to the Sonoma County California Superior Court, and the Sonoma County California Superior Court shall have jurisdiction for that purpose.
The prevailing party in any such subsequent litigation shall be entitled to reasonable attorneys' fees, investigative expenses, expert and consultant fees, and court costs incurred in such an action. The venue of any such dispute shall be the County of Sonoma, and the controlling law shall be the law of the State of California.
9. No Admissions
This AGREEMENT is entered into solely for purposes of compromise of the DISPUTED CLAIMS set forth herein, and each PARTY expressly agrees and acknowledges that no other PARTY has admitted, and by execution and performance of this AGREEMENT, does not admit, any liability, wrongdoing, or obligation to any other PARTY, or the sufficiency of any defenses to any such actions, allegations, assertions, contentions, or positions.
10. Inclusive Language
Whenever in this instrument the context requires the masculine, feminine, and/or neutral gender, each shall be deemed to include the other, and the singular and plural are each deemed to refer to the other.
11. Severability
In the event that at any time after the execution of this AGREEMENT, any portion or provision of it is found to be illegal, invalid, unenforceable, non-binding, or otherwise without legal force or effect, the remaining portion(s) will remain in force and be fully binding.
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Settlement and Release Agreement – City of Healdsburg v. GHD et al.
12. Controlling Law
This AGREEMENT, its validity, the construction of its terms, and the interpretation of rights and duties of the parties hereto, shall be governed and construed under the laws of the State of California.
13. Counterparts
This AGREEMENT may be executed in one or more counterparts, each of which when executed and delivered shall be an original, and all the counterparts when executed and taken together shall constitute one and the same instrument. A digital PDF or scan, photocopy, or facsimile copy of a signature page shall be deemed to be an original for all purposes and may be deemed effective pursuant to California Rules of Court, Rule 2.305(d).
14. Fully Integrated Contract
This AGREEMENT constitutes the sole and entire agreement between the PARTIES with regard to the subject matter hereof and supersedes any and all understandings and agreements made prior hereto. There are no collateral understandings, representations, or agreements other than those contained herein. No provision of this AGREEMENT shall be amended, waived, or modified except by an instrument in writing, signed by all PARTIES.
15. Modification
No modification, amendment, or waiver of any of the provisions contained in this AGREEMENT shall be binding unless made in writing and signed by all the affected PARTIES and/or by their duly authorized officers or agents.
16. Joint Drafting
The PARTIES hereby acknowledge and agree that the drafting and finalizing of this AGREEMENT is the product of a joint effort by all PARTIES, and/or their respective legal counsel, and that, as a result, any ambiguity in this AGREEMENT shall not be interpreted to the detriment of any PARTY to this AGREEMENT on any basis, including an application of any statutory or common law rule that may construe ambiguity against the drafting party.
17. Factual Uncertainty
The PARTIES hereby acknowledge that each may hereafter discover facts different from and/or in addition to those facts that each may now know or believe to be true, with respect to the DISPUTED CLAIMS, CONTRACTS AND PROJECT herein released, and each PARTY agrees that this AGREEMENT shall be and remain in full force and effect in all respects, notwithstanding any such later discovered different and/or additional facts.
18. Independent Judgment/Legal Representation
Each of the PARTIES execute this AGREEMENT, acting upon his/her/their/its independent judgment and with the advice of his/her/their/its respective legal counsel (or following an opportunity to seek the advice of independent counsel), without any representations
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Packet Pg. 136 Attachment: Settlement Agreement and Release of Claims (4300 : Roundabout Design Settlement with GHD) {02207225;2} 6
Settlement and Release Agreement – City of Healdsburg v. GHD et al. or inducements, express or implied, of any kind or nature, from each to the other, or from any other party, except as specifically set forth herein.
19. Authority/Ownership of Claims
By execution of this AGREEMENT, each PARTY represents and warrants that: (a) Such PARTY has full right and authority to undertake any action contemplated by this AGREEMENT; (b) the execution of this AGREEMENT has been duly and properly authorized by the PARTY on whose behalf said AGREEMENT is executed in accordance with all applicable laws, regulations, agreements and procedures governing the authority of such person or entity to execute this AGREEMENT on behalf of such PARTY; (c) the consent of all persons or entities whatsoever necessary to ensure the due execution of this AGREEMENT has been obtained; and (d) such PARTY has not sold, transferred, conveyed, assigned, hypothecated, and/or subrogated any of the rights or the DISPUTED CLAIMS, CONTRACTS or PROJECT released herein.
20. Effectuation
The PARTIES agree and covenant to cooperate fully and to execute any and all supplementary documents and to take all additional actions that may be necessary or appropriate to give full force to the basic terms and intent of this AGREEMENT and which are not inconsistent with its terms.
21. Voluntary Execution
The PARTIES hereto, and each of them, further represent and declare that they have carefully read this AGREEMENT and know the contents thereof, and that they sign the same freely and voluntarily. Each PARTY acknowledges that he, she, or it has been represented by counsel or has had the opportunity to consult with independent counsel, throughout the pendency of the negotiations of this AGREEMENT.
22. Admissibility and Enforceability
The parties agree that this AGREEMENT is admissible in any action to interpret or enforce its terms.
[Signatures on Following Page]
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Settlement and Release Agreement – City of Healdsburg v. GHD et al.
IN WITNESS WHEREOF, the undersigned hereto have accepted this AGREEMENT on the dates specific below.
THE CITY OF HEALDSBURG
Dated: By:________________________________
(Signature)
___________________________________
(Print Name)
Its: _________________________________
GHD, INC.
Dated: By:________________________________
(Signature)
___________________________________
(Print Name)
Its: _________________________________
Theodore B. Whiton
January 8, 2024
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Packet Pg. 138 Attachment: Settlement Agreement and Release of Claims (4300 : Roundabout Design Settlement with GHD)
CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: January 16, 2024
SUBJECT: Bollard Removal Project Bid Award
PREPARED BY: Clay Thistle, Senior Engineer
STRATEGIC INITIATIVE(S):
Maintain and Improve Infrastructure and Facilities
RECOMMENDED ACTION(S):
Adopt a Resolution conditionally awarding the Bollard Removal Project to Diamond D Construction, LLC of Ukiah, California in the amount of $41,985.50; authorizing the City Manager to execute the contract, authorizing the City Manager to negotiate and approve contract change orders up to 15% of the original contract amount and amending the Fiscal Year 2023- 2024 Budget.
COMMUNITY ENGAGEMENT/OUTREACH:
At the November 21, 2022, City Council meeting a presentation was made regarding the current use of bollards on pathways.
The Bollard Removal Project was advertised for public bidding in the Santa Rosa Press Democrat and on the City’s website.
Prior to beginning construction, advance notice will be placed at the work locations and provided to adjacent residents and businesses. They will be advised of potential impacts; pathway use restrictions and the planned work duration. City project manager’s direct contact information will be provided for additional information and for any concerns that arise during the construction process.
BACKGROUND:
Based on current Caltrans design standards many of the bollards on the Foss Creek Pathway can and should be removed.
On November 21, 2022, City Council provided support for the staff recommendation to remove all but the center bollard at seven locations along the Foss Creek Pathway and the bollards at the bridge just north of City Hall. The center bollard is being maintained to deter unauthorized
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vehicle entry onto the pathway and additional notice for cyclists to slow down before entering traffic.
DISCUSSION/ANALYSIS:
The Bollard Removal Project includes removal of all but a centerline bollard on the pathway at seven locations. The underground bases will be removed, and the areas repaved to provide a smooth surface for cyclists and pedestrians. The work will also include the addition of centerline striping in advance of and around the remaining bollards to provide advanced warning to the cyclist. In conjunction with this work, bicycle stop signs and stop bars will be added at each pathway intersection with streets.
A notice inviting bids was advertised in accordance with all applicable procedures, and the City received six bids. The lowest apparent and responsive bid was from Diamond D Construction, LLC of Ukiah, California in the amount of $41,985.50. The other bids received ranged from the apparent second low bid of $42,985 to a high bid of $96,956. The low bid was under the engineer’s estimate of $49,353.
Staff recommends a 15% contingency to cover unforeseen conditions for a total project budget of $48,283.00.
The bid from Diamond D Construction, LLC satisfies the bidding requirements for the project as described in the bid instructions. There are no irregularities with the bid and no protests to the bid have been filed within the allowable time for filing such actions. Staff has verified that Diamond D Construction, LLC possesses the required license and is otherwise qualified to complete the project.
ENVIRONMENTAL STEWARDSHIP:
Reuse and recycling will be used to divert much of the construction waste from landfill. Concrete and asphalt removed will be delivered to local recyclers for reuse in new paving and concrete products.
ALTERNATIVES:
The City Council could choose to reject all bids and direct staff to postpone the project.
FISCAL IMPACT:
The proposed Bollard Removal Project was not anticipated during the budget process and there is no funding currently identified in the Fiscal Year 2023-2024 Adopted Budget for this project.
There is available Measure T fund balance that is intended to support Council Goals in the upcoming budget cycle and provide contingency funding for planned capital projects. The proposed contract for bollard removal would require a budget amendment to appropriate the expense of Measure T fund balance in the current Fiscal Year. A budget amendment is attached to the proposed Resolution as Exhibit A.
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ENVIRONMENTAL ANALYSIS:
The proposed Bollard Removals Project involves the repair and maintenance of an existing public facility involving negligible or no expansion of use therefore is exempt pursuant to the California Environmental Quality Act (CEQA) Guidelines 15301(c) and 15302(c).
ATTACHMENT(S):
Resolution
Exhibit A
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CITY OF HEALDSBURG
RESOLUTION NO. __-2024
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG CONDITIONALLY AWARDING THE
BOLLARD REMOVAL PROJECT TO DIAMOND D
CONSTRUCTION, LLC IN THE AMOUNT OF $41,985.50,
AUTHORIZING THE CITY MANAGER TO EXECUTE THE
CONTRACT, AUTHORIZING THE CITY MANAGER TO
NEGOTIATE AND APPROVE CONTRACT CHANGE ORDERS
UP TO 15% OF THE ORIGINAL CONTRACT AMOUNT, AND
AMENDING THE FISCAL YEAR 2023-2024 ADOPTED
BUDGET
WHEREAS, based on current Caltrans design standards many of the bollards on the Foss Creek Pathway can and should be removed; and
WHEREAS, on November 21, 2022, City Council provided support for the staff recommendation to remove all but the center bollard at seven locations along the Foss Creek Pathway; and
WHEREAS, the notice inviting bids for the Bollard Removal Project was advertised in accordance with applicable procedures that resulted in the City receiving six bids; and WHEREAS, the apparent lowest bid was submitted by Diamond D Construction, LLC in the amount of $41,985.50; and
WHEREAS, staff has verified that Diamond D Construction, LLC possesses the required license(s) and is otherwise qualified to complete the project; and WHEREAS, staff has reviewed the proposal and determined that there are no irregularities; and
WHEREAS, staff recommend awarding the contract to Diamond D Construction, LLC. in the amount of $41,985.50; and
WHERAS, staff recommend a standard 15% contract contingency of $6,297; and WHEREAS, The proposed Bollard Removals Project involves the repair and maintenance of an existing public facility involving negligible or no expansion of use therefore is exempt pursuant to the California Environmental Quality Act (CEQA) Guidelines 15301(c) and 15302(c).
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg hereby:
6.F.a
Packet Pg. 142 Attachment: Resolution (4279 : Bollard Removal Project) Resolution No. -2024
1. Finds the proposed Bollard Removals Project involves the repair and maintenance of an existing public facility involving negligible or no expansion of use therefore is exempt pursuant to the California Environmental Quality Act (CEQA) Guidelines 15301(c) and 15302(c).
2. Conditionally awards the Bollard Removal Project to Diamond D Construction, LLC.
3. Authorizes the City Manager to execute the Bollard Removals Project contract.
4. Authorizes the City Manager to negotiate and approve contract change orders up to fifteen percent (15%) of the bid amount, issue the notice of award to Diamond D Construction, LLC and to otherwise administer the Project.
5. Approve amending the Fiscal Year 2023-24 budget as depicted on the attached Exhibit A.
PASSED, APPROVED AND ADOPTED, this 16
th
day of January 2024, by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAINING: Councilmembers:
SO ORDERED: ATTEST:
_________________________________ ____________________________________ David Hagele, Mayor Raina Allan, City Clerk
6.F.a
Packet Pg. 143 Attachment: Resolution (4279 : Bollard Removal Project) Resolution No.
Exhibit A
Account Number Increase Amount Decrease Amount Description 105-6162-43205-00000 $ 48,283 Increase Contracted Services Budget for Bollard Removal FY 23-24 Budget Amendment
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Packet Pg. 144 Attachment: Exhibit A (4279 : Bollard Removal Project)
CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: January 16, 2024
SUBJECT: Amendment to Professional Services Agreement with HDL Companies for Sales Tax Audits and Economic Analysis
PREPARED BY: Katie Edgar, Finance Director
STRATEGIC INITIATIVE(S):
Provide Effective Governance
RECOMMENDED ACTION(S):
Adopt a Resolution amending the Professional Services Agreement with HDL Companies, increasing the not-to-exceed amount by $30,000 to $70,000 and authorizing the City Manager to execute the contract amendment on the City's behalf.
COMMUNITY ENGAGEMENT/OUTREACH:
Not applicable.
BACKGROUND:
The California Department of Tax and Fee Administration (CDTFA) collects and distributes all sales and use tax revenues on behalf of the City. Businesses file their Tax Returns and remit payment directly to the CDTFA. The detailed tax return information gathered by the CDTFA is complex and auditing this information requires professional expertise. HDL Companies has provided sales and use tax audit services to the City for over twenty years. In addition to completing audits, HDL Companies provides quarterly analysis of the receipts, projections of future revenues and economic performance tracking. The City also receives access to their proprietary online software that provides detailed data on the sales and use tax collected for the City.
DISCUSSION/ANALYSIS:
On May 7th, 2020, the City executed a contract with HDL Companies for a term of five years ending June 30, 2025, with a not to exceed amount of $50,000. The terms of the contract include fixed fees for the professional services of analysis, reporting, and software access totaling $450 per month. The audit component of the contract is compensated based on the amount of revenue recovered from the completion of the audit. HDL Companies receives 15% of all Sales and Use tax revenues recovered from the audit and 25% of all Transaction tax revenues recovered.
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Due to the compensation structure of the contract, the City expended funds at a faster rate than anticipated. In Fiscal Years 20-21 and 21-22 audits resulted in the return of significant revenues that resulted in additional fees paid to HDL Companies. There is approximately a year and a half remaining on the current contract and staff propose increasing the not-to-exceed amount by $30,000 to continue services.
ENVIRONMENTAL STEWARDSHIP:
Not applicable.
ALTERNATIVES:
The Council could choose not to approve the amendment which would result in the discontinuation of sales and use tax audit and analysis services.
FISCAL IMPACT:
The proposed contract amendment will increase the not-to-exceed amount by $30,000 for a total contract value of $70,000. The total contract term is five years ending June 30, 2025. The fixed fees owed under the current contract for the remaining year and half total $8,100. The remaining contract amount of $21,900 will be available for audit services. All fees paid to HDL Companies for the completion of audits are offset by the additional revenues generated. The Finance department budget for the current fiscal year includes sufficient appropriations for the proposed amendment and the upcoming budget process will include additional appropriations for the final year of the contract term.
ENVIRONMENTAL ANALYSIS:
Pursuant to Title 14, the California Code of Regulations, Section 15061(b)(3) of the California Environmental Quality Act (“CEQA”) guidelines, the proposed action is not a project that is subject to CEQA because there is not possibility that the activity in question may have a significant effect on the environment.
ATTACHMENT(S):
Resolution
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CITY OF HEALDSBURG
RESOLUTION NO. ___-2024
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG AMENDING THE AGREEMENT WITH HDL
COMPANIES FOR SALES TAX AUDIT SERVICES
INCREASING THE NOT-TO-EXCEED AMOUNT BY $30,000
FOR A TOTAL OF $70,000
WHEREAS, the City of Healdsburg utilizes HDL Companies professional auditing services to ensure the accuracy of Sales and Use Tax remittance; and WHEREAS, the City receives additional quarterly analysis, reporting, and economic performance information from HDL Companies on a fixed fee basis; and WHEREAS, the compensation for the completion of audits is based on a percentage of revenue generated; and
WHEREAS, the revenue generated from audits in Fiscal Year 20-21 and 21-22 exceeded expectations; and
WHEREAS, to continue services for the remainder of the contract term the not-to-exceed amount needs to be increased; and
WHEREAS, total fixed costs remaining under the contract term are $8,100; and WHEREAS, an additional $21,900 will be available for compensation of audit services.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg does hereby authorize City Manager to execute an amendment to the agreement with HDL Companies to increase the not-to-exceed by $30,000 for a total of $70,000.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Healdsburg this 16th day of January 2024, by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAINING: Councilmembers:
SO ORDERED: ATTEST:
_________________________________ ___________________________________ David Hagele, Mayor Raina Allan, City Clerk
6.G.a
Packet Pg. 147 Attachment: Resolution (4297 : Contract Amendment with HDL)
CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: January 16, 2024
SUBJECT: Wastewater Treatment Plant Energy Efficiency Audit PREPARED BY: Terra Sampson, Utility Conservation Analyst STRATEGIC INITIATIVE(S):
Pursue Initiatives that Promote Environmental Stewardship Maintain and Improve Infrastructure and Facilities
RECOMMENDED ACTION(S):
Adopt a Resolution approving an agreement with Alternative Energy Systems Consulting, Inc. (AESC) to conduct an energy audit for the City of Healdsburg Water Reclamation Facility and authorizing the City Manager to execute the agreement on the City’s behalf.
COMMUNITY ENGAGEMENT/OUTREACH:
In October 2023, City Council adopted the Healdsburg Climate Mobilization Strategy (CMS), which included extensive community engagement and outreach activities. This item addresses actions included in the CMS Implementation Plan.
BACKGROUND:
The City of Healdsburg has adopted a CMS in support of State and Regional greenhouse gas (GHG) reduction goals. The CMS identifies key measures and actions that will be most impactful in reducing GHG emissions, are equitable, feasible, and community driven. The CMS includes an Implementation Plan, which presents the measures and actions to be implemented in the next 1-3 years. This item addresses the following actions from the CMS Implementation Plan:
• BE-4A.3 Complete a Wastewater treatment plant energy efficiency study and implement the highest impact recommendations. Utilize grant funding opportunities as much as possible.
The City of Healdsburg (City) owns, operates, and maintains a Water Reclamation Facility (WRF) to treat sanitary sewage generated within the City. The facility is operated under a permit issued by the State Water Resources Control Board and operated by the City’s Utility Department. One of the largest expenses in operation of the WRF is power consumption. The WRF consumes roughly 3.3 million kilowatt-hours (kWh) each year at a cost of roughly
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$575,000 annually. Reducing power usage would reduce operational expenses, helping to minimize future rate increases, as well as reducing electric demand of the City overall. An energy audit will provide the basis for procedural and physical modifications to the WRF to reduce power usage and achieve GHG reduction goals, while still maintaining the functionality required by the State permit.
DISCUSSION/ANALYSIS:
On November 21, 2022, City Council approved a resolution authorizing the City Manager to prepare and file a state water resources control board grant application to obtain a State Water Resources Control Board Energy Audit Grant. Unfortunately, shortly following Council approval, the State Water Resources Control Board ended this grant program.
Staff also submitted a concept paper for the federal Energy Efficiency and Conservation Block Grant and were not encouraged to submit a full application as a federal program priority focus for the competitive funding opportunity.
To apply for a grant under American Public Power Association’s (APPA) Demonstration of Energy & Efficiency Developments (DEED) program, City staff informally requested proposals for Power Optimization Review at the Healdsburg Water Reclamation Facility from engineering firms specializing in wastewater treatment. Proposals were received from three qualified firms and objectively evaluated by City staff. AESC - an energy engineering, consulting, and implementation firm with 30 years of energy efficiency, demand response, and distributed generation technical experience – provided the highest ranked proposal. City staff used the AESC proposal to apply for the APPA DEED grant opportunity for the audit costs in August 2023. The audit was not selected for grant funds; however, staff intend to apply again pending the audit recommendations for any innovative energy efficiency or new technology opportunities.
As there are limited grant opportunities for energy efficiency audits, there are multiple grant opportunities for implementation projects and new technologies, which the audit will help to identify for the WRF and direct future grant applications for high priority energy efficiency improvements at the WRF. Therefore, City staff propose completing an energy audit at the WRF using Cap & Trade funds.
The City staff intends to engage the highest ranked proposer, AESC, to prepare an energy audit and process operability analysis, which investigates power usage and power optimization at the WRF. AESC will evaluate and identify the recommended modifications to procedures, processes, and equipment to optimize power usage. These recommendations will be presented in an energy audit report. The energy audit report will present the anticipated power reduction that can be achieved from the recommended modifications.
AESC will provide the following services:
• Audit Prep & Coordination, Data Requests and Instrumentation and Measurement and Verification Plan
• Kick-off, Audit Site Visit, and On-site Data Collection • Process Operability Analysis
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• Energy Conservation Measure (ECM) Analysis
• Draft Report
• Final Report
• As Needed Technical Support
AESC has also been approved by the Department of Energy (DOE) to provide Industrial Assessment Center-equivalent audits, which enables eligible small/medium manufacturing recipients to apply for the DOE Industrial Assessment Centers Implementation Grant Program.
This audit will allow Healdsburg to pursue the DOE grants for projects recommended in the audit report.
Benefits of this project include reducing power usage at the WRF, which in turn reduces WRF operational expenses and electric utility generation expenses. Staff believes that there are substantial energy efficiencies of approximately 2% to 20% reduction in electricity usage at the WRF that can be gained as a result of this effort.
Optimizing energy efficiency at the WRF will benefit the community overall. The WRF is on Healdsburg Electric’s Green Rate to receive 100% renewable electricity. While the WRF is using clean electricity, optimizing energy efficiency at the WRF will reduce greenhouse gas emissions by allowing more of the WRF’s floating solar array electricity and other purchased renewable energy to be available for other customers, minimizing the need for carbon-intensive market energy purchases.
ENVIRONMENTAL STEWARDSHIP:
City staff anticipate substantial energy efficiency improvements from implementing the prioritized projects identified in the in-depth assessment. City staff expect that the assessment, along with implementing easy no- and low-cost changes, can yield a minimum of 2% energy savings, equivalent to an annual savings of approximately 66,000 kWh (roughly equivalent to the power used by approximately 10 homes). At the standard California emissions rate, this electricity savings would save approximately 14 metric tons carbon dioxide equivalent (MTCO2e) per year. The costs and energy savings potential for equipment and capital improvements will be estimated as part of the in-depth assessment. However, assuming a 20% savings is possible(1), this would result in approximately 660,000 kWh saved (roughly equivalent to the power used by approximately 100 homes) and 140 MTCO2e per year. (1) Source: Office of State and Community Energy Programs. (n.d.). Blueprint 2A: Energy efficiency: Energy audits, building upgrades. Energy.gov. https://www.energy.gov/scep/blueprint-2a-energy-efficiencyenergyaudits-building-upgrades ALTERNATIVES:
As an alternative the City Council could choose not to adopt the recommended resolution and provide further direction to staff.
FISCAL IMPACT:
This energy efficiency project, and other City greenhouse gas reduction programs, are funded by
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the State’s Cap & Trade program. California’s Cap & Trade Program provides freely allocated allowances to Healdsburg Electric Utility, with the requirement that the value of allowances must be used to benefit electric ratepayers while reducing greenhouse gas emissions. The proposed assessment is consistent with the existing energy assessment program offered to commercial customers. The anticipated contract cost is $47,000. With a 15% contingency for additional data analysis or other associated audit work, the total not-to-exceed amount is $54,050. There are sufficient operating budget within the Electric Public Benefits Fund (Fund 546) to cover the proposed audit.
ENVIRONMENTAL ANALYSIS:
A Wastewater Reclamation Facility Energy Audit is not subject to the provisions of the California Environmental Quality Act (CEQA) because a Wastewater Reclamation Facility Energy Audit is not a project, since it will not have a direct or reasonably foreseeable indirect impact on the environment.
ATTACHMENT(S):
Resolution
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CITY OF HEALDSBURG
RESOLUTION NO. _________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG APPROVING AN AGREEMENT WITH
ALTERNATIVE ENERGY SYSTEMS CONSULTING, INC.
(AESC) TO CONDUCT AN ENERGY AUDIT FOR THE CITY
OF HEALDSBURG WATER RECLAMATION FACILITY, AND
AUTHORIZING THE CITY MANAGER TO EXECUTE THE
AGREEMENT ON THE CITY’S BEHALF
WHEREAS, the City of Healdsburg owns, maintains, and operates a Water Reclamation Facility (WRF) to treat sanitary sewage generated within the City; and WHEREAS, power consumption is the largest operational cost at the WRF totaling roughly $490,000 annually; and
WHEREAS, optimizing power consumption at the WRF could reduce operational expenses and lessen future rate increases; and
WHEREAS, Alternative Energy Systems Consulting, Inc. (AESC) is experienced and qualified to conduct an energy audit for the WRF; and
WHEREAS, the energy audit will identify the recommended modifications to procedures, processes, and equipment to optimize power usage; and
WHEREAS, the energy audit will quantify the anticipated power reduction and estimated costs of the power-reducing measures for CIP planning; and WHEREAS, conducting an energy audit with AESC will allow City of Healdsburg to pursue the Department of Energy implementation grants for projects listed as a recommendation in the audit report; and
WHEREAS, a Wastewater Reclamation Facility Energy Audit is not subject to the provisions of the California Environmental Quality Act (CEQA) because a Wastewater Reclamation Facility Energy Audit is not a project, since it will not have a direct or reasonably foreseeable indirect impact on the environment.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg does hereby:
1. Authorize the City Manager to execute a professional services agreement with AESC for a total not-to-exceed amount of $47,000.
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Packet Pg. 152 Attachment: Resolution (4304 : Wastewater Treatment Plant Energy Efficiency Audit) Resolution No. -2024
2. Authorize the City Manager to execute change orders to the professional services agreement for up to 15% of the contract amount not to exceed $7,050.
3. Find that a Wastewater Reclamation Facility Energy Audit is not subject to the provisions of the California Environmental Quality Act (CEQA) because a Wastewater Reclamation Facility Energy Audit is not a project, since it will not have a direct or reasonably foreseeable indirect impact on the environment.
PASSED, APPROVED, AND ADOPTED this 16th day of January, 2024 by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAINING: Councilmembers:
SO ORDERED: ATTEST:
_________________________________ ___________________________________ David Hagele, Mayor Raina Allan, City Clerk
6.H.a
Packet Pg. 153 Attachment: Resolution (4304 : Wastewater Treatment Plant Energy Efficiency Audit)
CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: January 16, 2024
SUBJECT: Adopt EIR Addendum for Municipal Recycled Water Pipeline Project and Approve Modified Project
PREPARED BY: Patrick Fuss, Water/Wastewater Engineer
STRATEGIC INITIATIVE(S):
Pursue Initiatives that Promote Environmental Stewardship Maintain and Improve Infrastructure and Facilities
RECOMMENDED ACTION(S):
1. Adopt a Resolution of the City Council of the City of Healdsburg adopting an addendum to the final environmental impact report for the Healdsburg Wastewater Treatment Plant Upgrade Project (Project) and making recommended findings; and
2. Approve the Project as modified.
COMMUNITY ENGAGEMENT/OUTREACH:
Staff identified the Project in the 2020 Urban Water Management Plan and presented it to the public at the August 23, 2021, Council workshop and on September 22, 2021, at a public workshop. Staff presented this Project to the Parks Commission on August 10, 2022. Staff presented this Project to the Russian River Watershed Association on October 11, 2022 and October 26, 2023. Staff presented this Project to the Healdsburg Climate Action Committee on October 12, 2022. Staff presented this Project to the Healdsburg Rotary Club on March 6, 2023.
Staff presented this Project at the Climate Fest event on April 22, 2023, and at the Climate Mobilization Strategy Workshop on July 26, 2023. Staff most recent presentation of the Project was to the City Council on December 18, 2023.
BACKGROUND:
The City’s wastewater treatment plant permit includes a requirement prohibiting discharges of tertiary treated wastewater to the Russian River from May 15 to September 30. The City developed a plan to reach compliance with the seasonal discharge prohibition in 2018 plan. The plan identified agricultural reuse as the most cost-effective approach to achieving discharge prohibition compliance. The plan also acknowledged that urban reuse would add diversity to the reuse program, aiding in reliable compliance with the seasonal discharge prohibition. The plan
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indicated that urban recycled water projects would be pursued as funding allows. Both agricultural and urban beneficial reuse was included in the 2005 environmental impact report (EIR) prepared for the Healdsburg Wastewater Treatment Plant Project.
Staff have sought grant funding for drought relief / drought resiliency projects through state and federal agencies to assist the City’s water department in meeting irrigation demands during periods of water scarcity. Use of recycled water for municipal turf was identified in grant applications to help the water department achieve this goal and ultimately reduce citywide conservation needs during drought periods.
The grant application prepared by staff for the Department of Water Resources (DWR) Urban Multibenefit and Drought Relief Grant presented a project to deliver recycled water to municipal turf a Healdsburg Elementary School, Tayman Park, Oak Mound Cemetery, Recreation Park, Giorgi Park, Healdsburg Junior High School, Healdsburg Senior High School, Fitch Mountain Elementary School, and the Community Center. This proposed project would offset approximately 35 million gallons per year of potable water used for irrigation and replace it with recycled water. The requested funding for this project was $14 million.
The DWR awarded the City a grant for $7 million, which is not sufficient to complete the entire project. However, DWR allowed the City to revise the project scope to fit the funding. Under the revised project, recycled water will be available to Healdsburg Elementary School, Tayman Park, Oak Mound Cemetery, Recreation Park, and Giorgi Park. The estimated benefit of the scaled down project is approximately 27 million gallons of potable water offset annually.
The City entered into a grant agreement with DWR in April 2022 and engaged a design consultant through an open and competitive process in September 2022. The design will be complete in December 2023.
DISCUSSION/ANALYSIS:
In 2005, the City of Healdsburg (”City”) certified the final Environmental Impact Report (“2005 EIR”) for its Wastewater Treatment Plant (“WWTP”) Upgrade Project (“Project”). A component of the Project analyzed in the 2005 EIR was a proposal to beneficially reuse water recycled from the WWTP to meet seasonal irrigation demands in urban and agricultural areas. More specifically, the 2005 EIR studied the potential impacts of seasonal irrigation reuse of recycled water on up to 1,350 acres of land in the rough vicinity of the WWTP. The City concluded that the Project, including the seasonal irrigation reuse component, would not result in any significant, unavoidable environmental impacts.
Since the original approval, the City has adopted two Addendums to the 2005 EIR, as well as a subsequent EIR in 2019 that analyzed the proposal to increase the volume of recycled water supply and eliminate the seasonal discharges to surface waters between May 15 to September 30 each year. The City proposed extending recycled water distribution pipelines by 6,000 linear feet, adding 1,160 additional acres of land to receive recycled water via pipeline, the construction of recycled water distribution system to irrigate 150 acres of pasture lands and vineyards, and to expand recycled water uses to include: orchards (apple, preach, plum/prune), cannabis, irrigated pasture, direct livestock watering (not dairy cows), frost protection, and other agricultural uses
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occurring in the vicinity of the Water Reclamation Facility (WRF). The SEIR also analyzed future expansion of the recycled water program onto another 3,540 acres; and to make permanent a temporary program that allows trucks to haul recycled water for irrigation of up to 25,000 acres within an area of approximately 103,000 acres.
Staff has since identified the need for minor design modifications to the Project for the use of recycled water, as well as a needed modification of an existing mitigation measure to ensure that there will continue to be no impacts to agricultural activities due the Project’s design.
The modifications to the Project include a minor pipe realignment and addition of a new bulk fill station on Healdsburg Avenue. The proposed recycled water pipeline would include connection points used to irrigate turf at Healdsburg Elementary School, Recreation Park, Giorgi Park, Oak Mound Cemetery, and the Healdsburg Golf Club at Tayman Park. As modified, the Project will consist of approximately 2.3 miles of pipeline, an underground crossing (boring) of Highway 101 and SMART rails. The pipeline will begin near the existing bulk water fill station on Kinley Road on the west side of Highway 101 and traverse south on Kinley Road using open-cut trench methods to the planned crossing point of Highway 101. The highway crossing will use auger bore-and-jack methods, and the pipeline will then continue north along Kennedy Lane resuming open-cut methods. At the intersection of Kennedy Lane and Healdsburg Avenue, the pipeline will traverse east along Healdsburg Avenue to South University Street. A new bulk fill station will be constructed on the south side of Healdsburg Avenue on this reach of pipeline. At South University Street the pipeline will traverse north to the SMART Rail tracks and connect to an existing dry-barrel pipe (empty pipe) crossing under the tracks. On the north side of the tracks, the pipeline will travers east on Hudson Street to Front Street. At Front Street the pipeline will traverse north and veer east to First Street. The pipeline will continue north on First Street to Pipe Street. At Piper Street, the pipeline will split. One branch is planned to continue through Oak Mound Cemetery to serve the cemetery and Tayman Park. The other branch will continue west on Piper Street to University Street, then proceed north on University Street to serve Recreation Park and Giorgi Park.
The pipeline will consist of 12-inch and 4-inch PVC pipe, colored purple to designate the recycled water being conveyed. The design conforms to City of Healdsburg and State’s requirements for pipeline installation of recycled water pipelines.
The above routing was selected as the alignment provides the most cost-effective route for the pipeline to serve the greatest area of turf for the funding available. Key decision points through design included crossing location for Highway 101, location of the bulk fill station, and configuration of connections to existing irrigation systems.
For the Highway 101 crossing, five alternative locations were considered. The crossing will be accomplished using a trenchless method referred to as auger boring and jacking. It will require a large shaft at the launch site and a smaller shaft at the receiving site. The selected location was picked because it has fewer conflicts with existing utilities at the launch and receiving shaft sites, and this location shortens the crossing distance for the trenchless work. A shorter crossing reduces risk to the City.
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The location for the bulk fill station was selected from a number of alternatives in the general vicinity of Healdsburg Avenue. These locations were selected as they included industrial and mixed use zoned areas as well as collector and arterial streets. The final location on Healdsburg Avenue west of South University Street was selected because this location is industrial zoned (which will disturb less residents), on an arterial street (which has a sturdier structural section that do collector and residential streets), and has space in the parallel parking zone for truck staging/queuing (which reduces impact to traffic).
The configuration to connect to existing irrigation systems requires compatibility with the existing facilities as well as conformance with regulations prohibiting cross connection of the recycled water with the potable system. The design team has developed a swivel connection design for this purpose. The swivel connection allows for connection to the recycled water supply or the potable water supply, but not both. In the swivel arrangement, piping can be reconfigured by the end user as necessary.
Staff anticipates the bid period will begin in January of 2024 with a late February 2024 bid opening. Staff recommendation for Council’s award is anticipated in March of 2024. The construction is expected to commence on or about April 15, 2024, and be completed in mid2025. The grant agreement requires that no costs be incurred after September 30, 2025, and that the grant be closed by February 27, 2026.
ENVIRONMENTAL STEWARDSHIP:
The proposed project can offset approximately 27 million gallons of potable water used to irrigate large municipal turfs that do not require potable quality water. With this offset, the potable water not used can remain in streams to benefit the riparian environment or can be retain in storage in the upstream reservoirs. Greater water volume retained in storage allows for cooler water releases later in the year, which also benefits the riparian environment.
ALTERNATIVES:
City Council could elect to not adopt the addendum to the 2005 FEIR for the City’s Wastewater Treatment Plant Project or approve the Project as modified. The grant agreement with the Department of Water Resources under which work has progressed for design is predicated on the pipeline project being properly documented per CEQA prior to construction. If Council elects to not adopt this addendum or approve the Project as modified, staff will require direction from Council on how to proceed.
FISCAL IMPACT:
The Municipal Recycled Water Pipeline Project has been granted $7,000,000 for design and construction, as well as $100,000 for grant administration. The grant does not have a local match for costs.
Design fee for the project have been contracted for $1,094,882. The construction cost is estimated at $5,120,000. The balance of $785,118 is available for staff time, construction management, inspection, and contingencies.
Staff believe at this time that the project can be completed within the awarded grant budget. If
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this changes, staff will bring it to the attention of Council.
When constructed the extension of the recycled water pipeline will require ongoing maintenance, repairs, and future replacement. These ongoing activities will create new costs for the City’s Water Department. As with any cost obligation, these new operating costs will need to be addressed and could be partially offset through the establishment of new fees for recycled water users.
ENVIRONMENTAL ANALYSIS:
Under Public Resources Code Section 21166 and Section 15162 of the CEQA Guidelines, when an EIR has been certified for a project, a subsequent or supplemental EIR for that project is not required unless the lead agency determines, on the basis of substantial evidence in light of the whole record, one or more of the following:
(1) Substantial changes are proposed in the project which will require major revisions of the previous EIR or negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects;
(2) Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous EIR or negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or (3) New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified as complete or the negative declaration was adopted, shows the project will have impacts not discussed in the previous EIR or that will be substantially more severe than shown in the previous EIR, or that feasible mitigation measures are available to reduce one or more significant effects of the project.
The City has considered the scope of the proposed modification to the Project, as well as the potential environmental effects the proposed modification may produce. The City concludes based on substantial evidence that the modification does not involve “substantial” changes to the Project and will not involve new significant environmental effects or a substantial increase in the severity of any previously identified environmental effects.
The proposed modification involves the same type of activity that was analyzed in previous environmental documentation for the project: construction of a recycled water pipeline for the distribution of recycled water for agricultural irrigation and urban reuse. No new water right is required to accomplish the modification. The proposed modification will not involve new significant environmental effects. Application of water to additional areas will not produce new environmental effects, because the soils and drainage characteristics of the additional areas are similar to the areas addressed in the Certified EIR. For the same reasons, the City finds that the proposed modification will not substantially increase the severity of any of the environmental effects identified in the Certified EIR.
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Finally, while the extension of the pipeline may also produce “new” environmental effects, the City also finds based on substantial evidence that such effects will not be significant because the pipeline will be constructed within the City’s right-of-way that is previously disturbed with little vegetation removal required. All relevant mitigation from the Certified EIR will be applied during implementation of the project modification. There is potential for temporary impacts to agricultural land from construction; however, the City would consult with the property owner to appropriately compensate for any losses in agricultural production that would result from the temporary impact. Minor modifications to the text of mitigation measure 3.1-3 are identified below using underline.
Mitigation Measure 3.1-3: Avoid Potential Disruption of Existing Agricultural Operations
a. Construction activities shall be restricted to periods outside the growing season (i.e., growing and harvesting periods). Construction activities shall be undertaken in an expedient fashion, and associated construction staging areas shall be located outside of the agricultural fields. The City shall consult with landowners to appropriately compensate landowners for temporary losses in agricultural production resulting from project construction activities.
b. Topsoil removed during construction activities on Important Farmland that is to be retained in agricultural production shall be properly salvaged, maintained, and redistributed by the construction contractor.
c. Pipelines shall be placed at a depth beyond the typical depth of ground disturbance that occur as a part of the agricultural operations.
For the same reasons, the City finds that proposed modification will not substantially increase the severity of any of the environmental effects identified in the Certified EIR.
1. There has been no substantial change with respect to the circumstances under which the Project is undertaken that requires major revision to the Certified EIR due to new or increased significant environmental effects. Even if the continued drought conditions constitute a “substantial change” in the circumstances of the Project, the impacts of the Project have not substantially changed or increased due to the drought conditions. Thus, the drought conditions do not affect the analysis of the Certified EIR regarding the effects of the Project.
2. Finally, there is no new information before the City regarding the Project that was not known and could not have been known with the exercise of reasonable diligence at the time the Certified EIR was certified.
There is no substantial evidence showing that any of the conditions set forth in section 21166 of the Public Resources Code or section 15162 of the CEQA Guidelines are present: instead, substantial evidence demonstrates that none of those conditions are present. The City therefore finds that it is not required to prepare a subsequent or supplemental EIR for the proposed modification to the Project. Accordingly, the City has caused an addendum for the proposed modification to be prepared in compliance with section 15164 of the CEQA Guidelines.
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ATTACHMENT(S):
Resolution
Muni RW Pipeline EIR Addendum
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CITY OF HEALDSBURG
RESOLUTION NO. _________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG ADOPTING AN ADDENDUM TO THE FINAL
ENVIRONMENTAL IMPACT REPORT FOR THE
HEALDSBURG WASTEWATER TREATMENT PLANT
UPGRADE PROJECT AND MAKING REQUIRED FINDINGS
WHEREAS, the North Coast Regional Water Quality Control Board Basin Plan and related National Discharge Elimination System (NPDES) permit requires the City of Healdsburg (City), to limit discharges to the Russian River of tertiary treated wastewater between May 15 and October 1 st each year; and
WHEREAS, municipal reuse of the City’s high-quality recycled water for turf irrigation is a beneficial use; and
WHEREAS, the 2005 Final Environmental Impact Report prepared in compliance with the California Environmental Quality Act (“CEQA”) for the City’s Wastewater Treatment Plant Upgrade Project (Project) addressed municipal turf irrigation uses of recycled water; and WHEREAS, the Project includes construction of a pipeline to deliver recycled water for irrigation of municipal turfs; and
WHEREAS, the City has been awarded a grant from the State Department of Water Resources to design and construct a pipeline to deliver recycled water for municipal turf irrigation; and WHEREAS, a small portion of the Project as designed may temporarily impact agricultural lands; and
WHEREAS, the Project also requires a minor design modification affecting the pipeline alignment;
WHEREAS, the attached addendum (Addendum) analyzed the potential impacts of the Project modification and modifies the 2005 FEIR Mitigation Measure 3.1-3 to allow the City to consult with landowners to appropriately compensate landowners for temporary losses in agricultural production resulting from project construction activities, ensuring that impacts continue to be mitigated to a less than significant level.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg hereby adopts the Addendum to the Final Environmental Impact Report (FEIR) for the Healdsburg Wastewater Treatment Plant Upgrade Project based on the following:
1. The City has considered the scope of the proposed modification to the Project, as well as the potential environmental effects the proposed modifications may produce.
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Packet Pg. 161 Attachment: Resolution [Revision 2] (4272 : Municipal Recycled Water Pipeline Project EIR Addendum) Resolution No. -2024
2. The City concludes based on substantial evidence that the modifications do not involve “substantial” changes to the project and will not involve new significant environmental effects or a substantial increase in the severity of any previously identified environmental effects, and none of the conditions set forth in CEQA Guidelines Section 15162(b) are met.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Healdsburg this 16th day of January 2024, by the following vote:
AYES: Councilmembers: ( )
NOES: Councilmembers: ( )
ABSENT: Councilmembers: ( )
ABSTAINING: Councilmembers: ( )
SO ORDERED: ATTEST:
___________________________________ ____________________________________ David Hagele, Mayor Raina Allan, City Clerk
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Packet Pg. 162 Attachment: Resolution [Revision 2] (4272 : Municipal Recycled Water Pipeline Project EIR Addendum) 06/29/2023
Addendum to Final Environmental Impact Report
City of Healdsburg Municipal Recycled Water Pipeline
City of Healdsburg Utilities Department
June 2023
Staff Contact:
Patrick Fuss, PE
Utility Engineering Manager
707-431-3142
401 Grove Street
Healdsburg, CA 95448
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Packet Pg. 163 Attachment: Muni RW Pipeline EIR Addendum (4272 : Municipal Recycled Water Pipeline Project EIR Addendum) Addendum to Final Environmental Impact Report
City of Healdsburg Municipal Recycled Water Pipeline
June 2023
Page | 2
06/29/2023
I. INTRODUCTION
In 2005, the City of Healdsburg (”City”) certified the final Environmental Impact Report (“2005 EIR”) for its Wastewater Treatment Plant (“WWTP”) Upgrade Project (“Project”). A component of the Project analyzed in the 2005 EIR was a proposal to beneficially reuse water recycled from the WWTP to meet seasonal irrigation demands in urban and agricultural areas. More specifically, the 2005 EIR studied the potential impacts of seasonal irrigation reuse of recycled water on up to 1,350 acres of land in the rough vicinity of the WWTP. The City concluded that the Project, including the seasonal irrigation reuse component, would not result in any significant, unavoidable environmental impacts.
In 2014, the City prepared an addendum to the 2005 EIR (“2014 Addendum”) to cover a proposed minor modification of the Project: expansion of the agricultural areas to which recycled water could be applied for seasonal agricultural irrigation during the 2014 and 2015 irrigation seasons. Under the 2014 Addendum, the City was permitted to deliver recycled water to up to 25,000 acres within a larger approximately 100,000-acre area comprising the Alexander, Dry Creek, and Russian River Valleys, and recycled water could be trucked to its place of use.
In 2016, the City prepared a second addendum to the 2005 EIR (“2016 Addendum”) to cover a proposed minor modification of the Project: to deliver recycled water to up to 25,000 acres within a larger approximately 100,000-acre area comprising the Alexander, Dry Creek, and Russian River Valleys during the 2016-2020 irrigation seasons. The 2016 Addendum addressed transport of water by truck and construction of a pipeline extension to provide piped delivery of recycled water to 600 of the 25,000 acres that are eligible for recycled water.
The City prepared and circulated a subsequent environmental impact report (SEIR) in 2019 that analyzed the proposal to increase the volume of recycled water supply and eliminate the seasonal discharges to surface waters between May 15 to September 30 each year. The City proposed extending recycled water distribution pipelines by 6,000 linear feet, adding 1,160 additional acres of land to receive recycled water via pipeline, the construction of recycled water distribution system to irrigate 150 acres of pasture lands and vineyards, and to expand recycled water uses to include: orchards (apple, preach, plum/prune), cannabis, irrigated pasture, direct livestock watering (not dairy cows), frost protection, and other agricultural uses occurring in the vicinity of the Water
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Packet Pg. 164 Attachment: Muni RW Pipeline EIR Addendum (4272 : Municipal Recycled Water Pipeline Project EIR Addendum) Addendum to Final Environmental Impact Report
City of Healdsburg Municipal Recycled Water Pipeline
June 2023
Page | 3
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Reclamation Facility (WRF). The SEIR also analyzed future expansion of the recycled water program onto another 3,540 acres; and to make permanent a temporary program that allows trucks to haul recycled water for irrigation of up to 25,000 acres within an area of approximately 103,000 acres.
The City has prepared this Addendum (“2023 Addendum”) to address the expansion of the City’s recycled water distribution pipeline north from Kinley Drive and into the City to be used on parks, school play fields, athletic fields, and cemetery turf.
II. NEED FOR THE PROPOSED MODIFICATION
Persistent, severe drought conditions in California have dramatically impacted regional water supplies. In 2021 the City suspended the use of outdoor irrigation of turf on City and private property due to the City’s surface water rights being curtailed from low water reserves. The City considers municipal turf functional rather than ornamental, as it provides a substantial benefit to the community for recreation. Irrigating the City’s municipal facilities with recycled water would allow these turf facilities to be used continuously, even during years of drought. Additionally, irrigating these turf areas with recycled water rather than potable water will reduce demand on the potable water system.
III. PROPOSED CHANGE
The 2005 EIR addressed the impacts of beneficially reusing recycled water for seasonal agricultural irrigation on approximately 1,350 acres. The 2014 and 2016 Addenda covered a modification that allowed recycled water to be used for seasonal agricultural irrigation on up to an additional 25,000 acres (located within the larger 100,000-acre area comprising the Alexander, Dry Creek, and Russian River Valleys) during the 2014 and 2015 irrigation seasons, with the use of trucks to haul water for irrigation. Hauling of water by trucks was covered by both addenda, however, the 2016 addendum also covered a 2.5-mile pipeline extension for piped delivery of recycled water to an additional 600 of the 25,000 acres that are eligible for recycled water. The 2019 SEIR addressed specific project and programmatic impacts resulting from the expansion of the City’s recycled water program to allow expansion of the recycled water program, including proposed recycled water facilities and operations. The 2005 EIR, 2014 and 2016 Addenda, and the 2019 SEIR together are referred to as the “Certified EIR” in this 2023 Addendum.
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Packet Pg. 165 Attachment: Muni RW Pipeline EIR Addendum (4272 : Municipal Recycled Water Pipeline Project EIR Addendum) Addendum to Final Environmental Impact Report
City of Healdsburg Municipal Recycled Water Pipeline
June 2023
Page | 4
06/29/2023
This 2023 Addendum addresses the construction and operation of approximately 2 miles of 12-inch polyvinyl chloride (PVC) recycled water pipeline that would be installed within Kinley Drive, Kennedy Lane, Healdsburg Avenue, South University Street, Hudson Street, Front Street, 1st Street, Piper Street, and Cemetery Lane. The pipeline would cross underneath Highway 101 from Kinley Drive to Kennedy Lane, and underneath existing railroad tracks from South University Street to Hudson Street using trenchless boring. The pipeline alignment would continue northward through residential streets via open trench construction and end at the Healdsburg Golf Club and at Tayman Park. The revised project also includes a new bulk filling station along Healdsburg Avenue, adjacent to the proposed recycled water pipeline alignment. The proposed recycled water pipeline would include connection points used to irrigate turf at Healdsburg Elementary School, Healdsburg Recreation Center, Giorgi Park, Oak Mound Cemetery, and the Healdsburg Golf Club at Tayman Park.
IV. CONSIDERATION OF POTENTIAL IMPACTS OF THE PROPOSED CHANGE Under Public Resources Code section 21166 and section 15162 of the CEQA Guidelines, when an EIR has been certified for a project, a subsequent or supplemental EIR for that project is not required unless the lead agency determines, on the basis of substantial evidence in light of the whole record, one or more of the following:
(1) Substantial changes are proposed in the project which will require major revisions of the previous EIR or negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects;
(2) Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous EIR or negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or
(3) New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified as complete or the negative declaration was adopted, shows the project will have significant impacts not discussed in the previous EIR or that will be substantially more severe than shown in the previous EIR, or that
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Packet Pg. 166 Attachment: Muni RW Pipeline EIR Addendum (4272 : Municipal Recycled Water Pipeline Project EIR Addendum) Addendum to Final Environmental Impact Report
City of Healdsburg Municipal Recycled Water Pipeline
June 2023
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feasible mitigation measures are available to reduce one or more significant effects of the project.
These conditions are addressed in turn below.
1) The City has considered the scope of the proposed modification to the Project, as well as the potential environmental effects the proposed modification may produce.
The City concludes that the modification does not involve “substantial” changes to the Project and will not involve new significant environmental effects or a substantial increase in the severity of any previously identified environmental effects.
The proposed modification involves the same type of activity that was analyzed in previous environmental documentation for the project: construction of a recycled water pipeline for the distribution of recycled water for agricultural irrigation and urban reuse.
No new water right is required to accomplish the modification. The proposed modification will not involve new significant environmental effects. Application of water to additional areas will not produce new environmental effects, because the soils and drainage characteristics of the additional areas are similar to the areas addressed in the Certified EIR. For the same reasons, the City finds that the proposed modification will not substantially increase the severity of any of the environmental effects identified in the Certified EIR.
Finally, while the extension of the pipeline may also produce “new” environmental effects, the City also finds that such effects will not be significant because the pipeline will be constructed within the City’s right-of-way that is previously disturbed with little vegetation removal required. All relevant mitigation from the Certified EIR will be applied during implementation of the project modification. There is potential for temporary impacts to agricultural land from construction; however, the City would consult with the property owner to appropriately compensate for any losses in agricultural production that would result from the temporary impact. Minor modifications to the text of mitigation measure 3.1-3 are identified below using underline.
Mitigation Measure 3.1-3: Avoid Potential Disruption of Existing Agricultural Operations
a. Construction activities shall be restricted to periods outside the growing season (i.e., growing and harvesting periods). Construction activities shall be undertaken in an expedient fashion, and associated construction staging areas shall be located outside of the agricultural fields. The City shall consult with landowners to appropriately compensate landowners for temporary losses in agricultural
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Packet Pg. 167 Attachment: Muni RW Pipeline EIR Addendum (4272 : Municipal Recycled Water Pipeline Project EIR Addendum) Addendum to Final Environmental Impact Report
City of Healdsburg Municipal Recycled Water Pipeline
June 2023
Page | 6
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production resulting from project construction activities. b. Topsoil removed during construction activities on Important Farmland that is to be retained in agricultural production shall be properly salvaged, maintained, and redistributed by the construction contractor.
c. Pipelines shall be placed at a depth beyond the typical depth of ground disturbance that occur as a part of the agricultural operations.
For the same reasons, the City finds that proposed modification will not substantially increase the severity of any of the environmental effects identified in the Certified EIR. 2) There has been no substantial change with respect to the circumstances under which the Project is undertaken that requires major revision to the Certified EIR due to new or increased significant environmental effects. Even if the continued drought conditions constitute a “substantial change” in the circumstances of the Project, the impacts of the Project have not substantially changed or increased due to the drought conditions. Thus, the drought conditions do not affect the analysis of the Certified EIR regarding the effects of the Project.
3) Finally, there is no new information before the City regarding the Project that was not known and could not have been known with the exercise of reasonable diligence at the time the Certified EIR was certified.
V. CONCLUSION
There is no substantial evidence showing that any of the conditions set forth in section 21166 of the Public Resources Code or section 15162 of the CEQA Guidelines are present: instead, substantial evidence demonstrates that none of those conditions are present. The City therefore finds that it is not required to prepare a subsequent or supplemental EIR for the proposed modification to the Project. Accordingly, the City has caused this Addendum for the proposed modification to be prepared in compliance with section 15164 of the CEQA Guidelines, and will consider this Addendum with the Certified EIR prior to making a decision on the proposed modification.
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Packet Pg. 168 Attachment: Muni RW Pipeline EIR Addendum (4272 : Municipal Recycled Water Pipeline Project EIR Addendum)
CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: January 16, 2024
SUBJECT: Fiscal Year 2023-24 Mid-Year City Council Goal Update PREPARED BY: Raina Allan, City Clerk
STRATEGIC INITIATIVE(S):
Establish Proactive Policies/Programs to Continue to Promote Economic Diversity & Sustainable Growth
Pursue Initiatives that Promote Environmental Stewardship Expand Affordable Housing Opportunities
Maintain and Improve Infrastructure and Facilities
Provide Effective Governance
Maintain and Enhance Public Health and Safety
Provide Resident-Driven Community Services
RECOMMENDED ACTION(S):
Receive report on the status of the City Council fiscal year 2023-24 Goals as of December 31, 2023.
COMMUNITY ENGAGEMENT/OUTREACH:
The City Council held a goal setting workshop on March 10, 2023.
BACKGROUND:
The City Council adopted the City of Healdsburg’s Strategic Plan, Foundation for a Strong Community, on December 16, 2019. On April 3, 2023, the Council, by motion adopted the fiscal year 2023-24 Council Goals.
DISCUSSION/ANALYSIS:
Attached is the mid-year update on the fiscal year 2023-24 City Council goals as of December 31, 2023. A few goals which have progressed since adoption that staff would like to highlight include:
Goal: Climate Mobilization Strategy
• In October of 2023, the City Council adopted the City’s first Climate Mobilization
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Strategy.
Goal: Diversity, Equity and Inclusion Plan
• Council accepted the DEI Plan on August 7, 2023. Council held a workshop on October 23, 2023 to discuss implementation of the Plan and staff are currently working on several implementation actions.
Goal: Business License Process Modernization
• Business License renewals for FY23-24 were successfully completed in the new online platform.
Goal: Healdsburg Avenue Complete Streets Project
• A Professional Services Agreement for project design was awarded and approval to proceed was obtained through Caltrans. Design has commenced.
Goal: Scattered Site Project
• Renovation projects at 500 Piper Street and 531-535 University Avenue are now completed by Burbank Housing and are now occupied by tenants. The 1302 Prentice project is advancing towards completion, with an anticipated completion prior to the end of the current fiscal year.
Goal: Municipal Recycled Water Pipeline
• Construction documents are 90% completed and construction is expected to begin in the Spring.
ENVIRONMENTAL STEWARDSHIP:
Not applicable.
ALTERNATIVES:
There are no alternatives proposed at this time.
FISCAL IMPACT:
There is no fiscal impact related to the proposed action.
ENVIRONMENTAL ANALYSIS:
Pursuant to Title 14, the California Code of Regulations, Section 15378(b)(5) of the California Environmental Quality Act (“CEQA”) guidelines, the proposed action is an administrative activity of the City that will not result in direct or indirect physical changes to the environment.
ATTACHMENT(S):
FY23-24 Council Goal Updates
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CITY OF HEALDSBURG – FY 23/24 CITY WORK PLAN
PROJECT DESCRIPTION LEAD MID-YEAR UPDATE
ECONOMIC DIVERSITY AND SUSTAINABLE GROWTH
Initiate Scoping of South Entry Area Plan -- Identify key steps, timeline, and estimated cost. Conduct outreach to property owners. Include option to fund in the 2024 budget development process. CDD
A draft scope of work and preliminary cost estimate has been completed. Staff have met with property owners to discuss process and participation. The Syar property within the plan area is currently available and the interest and outcome of the property sale could have a significant impact on timing and financing of planning effort. City applied for the designation of a Priority Development Area (PDA) that encompasses the ½-mile area surrounding the existing SMART rail depot site and the South Entry Area Plan area. Approval of the PDA will make the City eligible to apply for grants which could assist in the funding of the South Entry Area Plan.
Cannabis Business Program Implementation and Dispensary Application -- Development and implementation of a cannabis business permitting program and completion of an application process for two cannabis dispensaries.
CMO/CDD
Two Cannabis Business licenses were awarded on November 13, 2023. Staff is currently work with the licensees to support business openings in the Spring/Summer of 2024.
VMT -- SB 743 requires jurisdictions to move away from Level of Service (LOS) to Vehicle Miles Travelled (VMT) in assessing circulation impacts in CEQA documents. City has received free technical support through MTC/ABAG to adopt VMT policy.
CDD/PW
The City Council adopted the VMT policy on October 2, 2023. The City will use the vehicle miles travelled (VMT) metric and the adopted VMT policy when assessing transportation related environmental impacts for discretionary projects instead of the traditional level of service (LOS) metric.
Annual Land Use Code Updates -- Prepare amendments to the Land Use Code to address needed corrections, formalize interpretations, and streamline project review and approval. CDD/PW
Land Use Code Updates to revise and clarify sections of the Municipal Code related to large family daycares, amplified music, fence regulations, design review expiration, and conditional use permits were approved by the City Council on June 20, 2023. Staff will continue to prepare amendments to the Land Use Code on an annual basis and anticipates bringing additional amendments forward in the first quarter of 2024.
Electronic Plan Review -- Working across departments responsible for development review to allow for electronic plan submittal and review.
CDD/IT
The City has implemented Bluebeam software to allow for electronic plan submittal and review. Electronic plan submittal and review is now available and operational with all departments responsible for Plan Review, including Planning, Building, Public Works, Utilities, and Fire, participating in digital plan review. In addition, the Building Division has received a grant to implement SolarAPP+ which will allow for web-based submittal and issuance of building permits for photovoltaic and battery storage systems to further streamline review. Implementation of SolarAPP+ is expected in the first quarter of 2024.
Downtown Housing Development Capacity Study -- Evaluation of existing codes, legislation, and law to identify barriers to, and opportunities for, increased housing capacity including options for a potential amendment of the Growth Management Ordinance on the November 2024 ballot.
CDD/HOUSING
The City Council approved a contract with Opticos Design to prepare the Downtown Housing Development Capacity Study on September 18, 2023. Staff held a kick-off meeting and tour of Downtown sites on October 16, 2023 and the work effort is currently underway.
SMART Station Planning -- Determine preferred station location and explore land use and circulation opportunities presented by future rail service in Healdsburg.
CDD/PW
A public meeting to receive feedback was held on October 19, 2023 at the Senior Center. Staff is working with SMART to determine next steps.
Housing Element Implementation Land Use Code Updates -- With adoption of the Housing Element the City will need to pursue several Land Use Code updates to address programs related to changes in State Law including Density Bonus Ordinance, Object Design Standards, SB9, and more.
CDD
Staff intends to formally initiate this work upon completion of the housing needs analysis and housing capacity study.
Retail Sales Tax Capture and Leakage Analysis – Provide report to City Council regarding sales tax categories and capture/leakage analysis. FINANCE The City has executed a contract with HdL to complete the retail sales tax leakage analysis. Staff anticipates returning to Council in February or March to present the results.
ENVIRONMENTAL STEWARDSHIP
Climate Mobilization Strategy -- Development of a community climate mobilization strategy.
CMO/UTILITIES Council adopted the Climate Mobilization Strategy (CMS) on October 16, 2023. The implementation and management of the plan will be a new ongoing task.
Postal Fleet Electrification White Paper – Outline information, utility infrastructure and potential costs needed to electrify the local USPS fleet.
Federal government is exploring locations for electrification.
UTILITIES
The postal fleet electrification white paper was incorporated into the CMS as measure TE-5.1. This paper will be used to inform the study and the Electric Department’s requirements to support building and transportation electrification (CMS measure BE-1.1).
AFFORDABLE HOUSING
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Packet Pg. 171 Attachment: FY23-24 Council Goal Updates (4311 : FY2023-24 Mid-Year Goal Update) 6 th Cycle Housing Element Update – Complete and Adopt Housing Element. HOUSING/CDD The 6th Cycle Housing Element Update was adopted by the City Council on May 1, 2023 and certified by the California Department of Housing and Community Development (HCD) on June 29, 2023. Plan implementation and management will be the new ongoing task.
Housing Element Work Group -- Convene the HEWG to make
recommendations and study housing issues in Healdsburg as directed by the City Council.
HOUSING / CDD
Pursuant to the City Council's decision on September 18, 2023, the Housing Element Work Group (HEWG) has been reorganized to implement the housing initiatives detailed in Resolution No. 171-2022. The first session of the reconstituted HEWG was held in December.
L&M Village -- Operate the L&M Village Interim Housing Program and secure additional funding for operations. Initiate process of quarterly updates to City Council and regular outreach to neighbors and stakeholders. HOUSING The Housing Department provides the City Council with quarterly updates on the L&M Village Operations and annual reports to the State HCD. Both Housing and Reach for Home staff are actively engaging with the concerns of neighboring residents. Additionally, the Housing staff has secured $341,000 in CDBG funding for capital improvements and services and is finalizing an agreement with the County for operational funding.
Scattered Site Project -- Complete the renovations and lease-up of the scattered site housing units at 1302 Prentice, 500 Piper and 531-535 University.
HOUSING
Renovation projects at 500 Piper Street and 531-535 University Avenue have been successfully completed by Burbank Housing, and occupancy by tenants has been established. The 1302 Prentice project is advancing towards completion, with an anticipated completion prior to the end of the current fiscal year.
Saggio Hills Affordable Housing -- Complete the DA and DDA for the Saggio Hills Affordable Housing project and apply for State funding for the development of the units.
HOUSING
The City has executed a Disposition and Development Agreement with Freebird Development Inc. For the 110 -unit Saggio Hills project.
Freebird is currently pursuing financing through the Multifamily Housing Program via State HCD and assessing additional funding avenues. The initiation of the project is slated for 2024. 155 Dry Creek Affordable Housing – Support Burbank Housing in applying for State funding for the development of the Dry Creek Commons. HOUSING The City has executed a Disposition and Development Agreement with Burbank Housing for the 58-unit housing project located at 155 Dry Creek Road. Burbank Housing has procured $1.7 million in federal grants and submitted an application for $9 million through the Joe Serna Jr. Farmworker Housing Grant Program. The forthcoming phase involves applying for Low-Income Housing Tax Credits, with project commencement targeted for 2024.
Welcome Packet Outlining Tenants & Landlord Rights – Develop a welcome packet to be provided to all new residents that includes information on city services, support programs, and tenant and landlord rights.
CMO/HOUSING
The development of the Welcome Packet is in process and it is anticipated it will be completed this fiscal year.
INFRASTRUCTURE & FACILITIES
Library Upgrades -- City is pursuing a grant with Healdsburg Library to support facility modernization effort and developing a lease for the facility. CMO While the grant was unsuccessful, the library and City are still collaborating on upgrades to the Library facility. The Council approved the City entering into a new lease with the library on October 16, 2023 and the library is still planning a renovation project to start later this fiscal year.
New Fire Substation – Build new fire substation. PW/FIRE The groundbreaking ceremony was held on October 11, 2023 and construction on the substation is continuing to progress.
PARKS
Park Financing Plan -- Continue to develop and implement a plan to finance a new park on the north end of town and redevelopment of Badger Park CMO/FINANCE/COM.
SERVICES
Staff anticipates bringing an update on the park financing plan to Council on February 21, 2024. Work is anticipated to continue on bond issuance through FY24-25. CEQA has been completed for Montage and is currently underway for Badger.
STREETS / BIKES / PEDESTRIAN INFRASTRUCTURE
Healdsburg Avenue Complete Street Project – Prepare design and complete utility work in advance. PW
The designer for the Healdsburg Avenue Complete Streets project has been selected and the City has received approval to proceed from Caltrans. The Professional Services Agreement was awarded and design work is underway.
Grove Street Neighborhood Plan – Pedestrian, bike, and drainage improvements. PW
A designer has been selected for this project and design work is underway.
Ward Street Neighborhood Plan—Infrastructure improvements to improve ped and bike mobility, lighting, and safety. PW
Staff have completed short-term improvements on Ward Street, including increased lighting and the addition of a speed bump. In partnership with Corazon, Council and staff participated in a BBQ and outreach event. Staff also completed a survey of the residents who live on Ward Street.
Enhanced Maintenance for LIDs – Improve maintenance and appearance of Low Impact Development landscaping areas in downtown area. PW Public Works staff have compiled a list of private and public LID features to ensure all are maintained.
A new maintenance contract was executed in September for repair and maintenance (including cleaning) of public LID features including trimming of trees.
WATER INFRASTRUCTURE
Municipal Recycled Water Pipeline – Recycled water for irrigation. Will provide recycled water to several City parks, athletic fields, public golf course UTILITIES The construction documents are 90% complete. Staff anticipates bringing the CEQA addendum to Council at the January 16, 2024 meeting. At this time, it is anticipated the bid opening will happen in March of 2024.
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Packet Pg. 172 Attachment: FY23-24 Council Goal Updates (4311 : FY2023-24 Mid-Year Goal Update) and cemetery to make more drinking water available to residents and businesses (offsets).
Aquifer Storage and Recovery (ASR) Wells – Focus to improve water supply to supplement Healdsburg water supply during times of drought and low flows in the Russian River.
UTILITIES
Passed initial CalOES review phase and grant application is now with Federal administrators. Progress on the project has been stalled while we wait on final response from BRIC Grant and the approval to move into the final design and construction phase.
Fitch Well Field & Dry Creek Well Field – Investment for regulatory drinking water filtration improvements. State board has increased the regulatory obligations for the Fitch (Badger) and Dry Creek well fields.
UTILITIES
Design work has been completed and under review by the State Division of Drinking Water. Staff is seeking grant funding to support the work. Funding consideration will be included in the updated water and wastewater cost of service study. Funding and design now needs to consider the increased costs of PFAS filtration.
EFFECTIVE GOVERNANCE
Diversity, Equity, and Inclusion Plan -- Development of a community wide diversity, equity, and inclusion plan. CMO The City Council accepted the DEI Plan at the August 7, 2023 City Council Meeting. On October 23, 2023, Council held a workshop to discuss implementation and next steps. Implementation work is ongoing.
Business License Process Modernization -- Configure and launch an online platform where businesses can obtain a license conveniently and efficiently. FINANCE Business License renewals for FY 23-24 were successfully completed in the new System.
Electric Utility Rate Study—Update rate structure to reflect current and projected costs, planned infrastructure improvements, and desired climate initiatives.
UTILITIES/FINANCE
The City Council adopted a new rate structure on June 5, 2023. The new electric rates went into effect November 1, 2023 and should be reflected on current utility bills.
PUBLIC HEALTH & SAFETY
Implement Community Wildfire Protection Plan -- Explore and pursue potential grant opportunities to establish a Wildfire Mitigation Assessment program and fund a Large Arundo Removal project within the Russian River Watershed.
FIRE
Facilitated and supported the grant application process in partnership with Russian River Keeper (RRK), resulting in the successful acquisition of grant funding for Arundo removal from just west of Memorial Bridge around Fitch Mountain. The Healdsburg Fire Department (HFD) partnered with RRK to identify key treatment areas for the greatest impact on fire safety. Arundo removal project underway since August 2023 and HFD continues to help facilitate work.
Fire Fuels Reduction -- Maintain Coastal Conservancy grant by continuing fuel reduction work. In addition to Mechanical Mastication, Hand Crews, Grazing and Prescriptive Burns we are also working to incorporate tribal burns into our wildfire prevention strategy.
FIRE
Successfully treated the Fitch Mountain Open Space Preserve, Healdsburg Ridge Open Space Preserve, and various infrastructure locations within the City of Healdsburg, including the Gauntlett Reservoir. The treatments implemented included grazing by sheep and goats, prescription pile and broadcast burns, mechanical mastication, and the utilization of hand crews. Moreover, larger prescription burns have been approved through a partnership with Cal-Fire and are scheduled for the fall of 2023.
Emergency Preparation --Ensure/Maintain a strong level of Emergency Preparedness, through enhanced staff trainings, technology implementation, and community outreach. Complete update to Local Hazard Mitigation Plan (LMHP)
POLICE/ALL
WebEOC is fully implemented and EOC technology improvements are nearing completion. The Evacuation zones for the City have been updated. The draft Local Hazard Mitigation Plan has been reviewed by CalOES and staff is working on responding to comments.
COMMUNITY SERVICES
POLICIES AND PROGRAMS
Arts and Culture Master Plan Implementation -- Work collaboratively with the Creative Leadership Team and the community to complete components of the first phase of the master plan implementation presented to City Council on 9/19/22.
COMMUNITY
SERVICES
The first round of grant implementation is under way and awardees are working on their projects. Staff just announced the application period for the second round of grant funding. Staff and the City Attorney are working on the first draft of the proposed percentage Arts Ordinance. The draft amendments to the Cultural Trust Fund Agreement are under review by the trustees.
Commission Composition -- Provide analysis of redefining or combining the Parks and Recreation and Senior Citizens commissions for City Council consideration.
COMMUNITY
SERVICES
Council formed a subcommittee to meet and discuss Senior Commission and the full Council agreed to keep commissions as currently set up.
City-HUSD Joint Use Agreement -- Work with HUSD to review and update the Joint Use Agreement for operation and maintenance of shared facilities.
COMMUNITY
SERVICES
HUSD and City staff will begin meeting in Q2 2023 to review and discuss the current Agreement and consider updates to incorporate new facilities, maintenance protocols, and facility scheduling.
Deferred Maintenance and Improvement Plan -- Develop a deferred maintenance program and begin implementation.
COMMUNITY
SERVICES
The City Council approved moving forward with the Deferred Maintenance Plan for Fiscal Year 2023-24.
Healdsburg Avenue Bridge Permanent Lighting Display and Policy -- Obtain cost estimate for installation of a permanent lighting system and develop lighting policy for City Council to address short- and long-term practices for determining when to light the bridge.
COMMUNITY
SERVICES
The Healdsburg Avenue Bridge Lighting Policy was approved at the October 2022 City Council meeting. In October 2023, staff met with Mike Brown Electric to procure cost estimate for installation of permanent lighting system and the plan was presented to Council. At this time, the plan is to stay with interim lighting for the time being.
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Packet Pg. 173 Attachment: FY23-24 Council Goal Updates (4311 : FY2023-24 Mid-Year Goal Update) Master Calendar & Cost Analysis for Special Events – Create a master calendar for special events and provide costs analysis and cost sharing summary.
COMMUNITY
SERVICES
Council adopted the master events calendar in December 2023.
COMMUNITY FACILITIES
Foley Family Community Pavilion -- Complete CEQA, Design Review, construction drawings, bidding, and majority of construction.
COMMUNITY
SERVICES
The City Council approved the construction contract in December of 2023. The groundbreaking event will be scheduled in the coming weeks.
Senior Center Accessibility Construction Project -- Replacing Doors and improving accessibility at Senior Center from and rear doors.
CMO/COMMUNITY
SERVICES
This project was completed in summer 2023.
Villa Chanticleer Capital Replacement Plan -- The agreement with Milestone Events Group requires the City and Milestone to work collaboratively to develop a long-term capital replacement plan for the Villa.
COMMUNITY
SERVICES
Milestone and City staff will develop the plan in 2023 to be considered as part of the FY24-26 budget process.
Concept Plan for West Plaza Parking Lot – Develop concept options and costing for maintenance upgrades and beautification of this parking lot.
COMMUNITY
SERVICES/PW
Staff are currently scoping and developing a budget for the project. Staff will present potential options during the budget process.
PARKS AND OPEN SPACE
Saggio Hills Park Development -- Complete CEQA master plan review, design development, construction drawings, bidding, and initial construction.
COMMUNITY
SERVICES
CEQA has been completed for Montage. The consultant is putting together a design team for design development.
Saggio Hills Park Naming Process -- Complete a community-based process to identify potential names for the new park for City Council consideration. COMMUNITY
SERVICES
32 applications potential names submitted as potential names for the new park. The park naming subcommittee members will meet to review and reduce the number of applications and work with consultant to fact-check the information and present to PRC followed by Council.
Badger Park Redevelopment -- Complete CEQA master plan review, design development and construction drawings. Bidding contingent on timing of prior work.
COMMUNITY
SERVICES
The CEQA process under way.
Fitch Mountain Access Improvement Project -- Complete construction drawings, bidding, and construction for project.
COMMUNITY
SERVICES
The Bid award and construction were initiated in Fall 2023 and working is continuing on the project.
Facility Improvements for Licensed Preschool Program -- Renovate the existing preschool rooms and outdoor play area to comply with licensing requirements.
COMMUNITY
SERVICES
This project is complete. The site has been delivered to the YWCA and operations are expected to commence soon.
Hilltop Road Erosion Repairs -- Repair erosion-related damage and make improvements to reduce future issues on Hilltop Road to ensure public safety and maintenance access.
COMMUNITY
SERVICES
Phase I of the road repairs has been completed and Phase II has been pushed out to Spring of 2024 to accommodate additional community outreach.
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Packet Pg. 174 Attachment: FY23-24 Council Goal Updates (4311 : FY2023-24 Mid-Year Goal Update)
CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: January 16, 2024
SUBJECT: Update on Housing Initiatives and Housing Policy Polling PREPARED BY: Andrew Sturmfels, Assistant City Manager
STRATEGIC INITIATIVE(S):
Expand Affordable Housing Opportunities
RECOMMENDED ACTION(S):
Receive a presentation on the status of existing housing initiatives including planned polling on housing policy options related to the Growth Management Ordinance and provide feedback to staff.
COMMUNITY ENGAGEMENT/OUTREACH:
The Housing Element Work Group was originally established by the City Council and comprised of community members to support the completion of the Healdsburg Housing Element Update.
Upon completion and adoption of the updated Housing Element, the City Council directed staff to continue convening the Housing Element Work Group to begin implementing a workplan to advance the Housing Element goals and specific housing strategies for Healdsburg.
BACKGROUND:
On June 7, 2021, in alignment with the community's broad housing needs and pursuant to Government Code 65583(c)(9), the City Council authorized the creation of the Housing Element Work Group (HEWG). The purpose of the HEWG was to ensure comprehensive and diverse community involvement in the development of Healdsburg's 6th Cycle Housing Element.
The HEWG commenced its work in January of 2022, and the State Department of Housing and Community Development (HCD) certified the City of Healdsburg’s 6th Cycle Housing Element on June 29, 2023. Following this certification, attention has shifted to the implementation phase of the Housing Element.
During the development of the Housing Element, the HEWG identified several complex housing related issues which merit further study beyond the timeframe of the Housing Element Update.
These additional areas of focus were presented to the City Council by the HEWG and City housing staff on November 21, 2022. The Council subsequently adopted Resolution 171-2022
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which approved the HEWG additional work plan and provided direction on the prioritized areas of study and established reporting requirements to the City Council.
On September 18, 2023, The City Council approved a contract with EPS Systems Inc. to begin gathering the necessary data to continue with this work by updating the City of Healdsburg’s Housing Needs Calculator. The HEWG is currently in progress delivering the work plan as directed by Resolution 171-2022.
DISCUSSION/ANALYSIS:
The purpose of this report is to provide an update on existing and planned initiatives as outlined in the Housing Element and HEWG workplan. During the 11/22/2022 City Council meeting, Council directed staff to proceed with a proposed workplan that included the following key elements:
• Completion of a Downtown Housing Capacity Study
• Housing Needs Assessment (HNA) and Funding Strategies • Strategies to Achieve Middle Income Housing and Homeownership Opportunities • Assessing the Impacts of the City’s Growth Management Ordinance (GMO) Downtown Housing Capacity Study
The City Council identified the preparation of a Downtown Housing Capacity Study as a priority in its FY 23/24 City Work Plan. The purpose of the Study is to evaluate existing codes, legislation, and State law to identify barriers to, and opportunities for, increased housing capacity within the downtown area. At its September 18, 2023, meeting the City Council approved a Professional Services Agreement with Opticos Design, Inc. for consultant support in preparation of the Downtown Housing Capacity Study. The work effort commenced in October 2023 and is well underway.
Based on input provided by the City Council, City Staff, Healdsburg 2040 Land Use Committee, and Opticos (consultant) the Study will focus on 5 sites which represent different characteristics and different zoning designations to use as illustrative examples of development potential at varying levels of density. These illustrative examples will represent hypothetical build-out scenarios used to calculate potential for housing and will not represent actual design intent or a prescriptive scenario for any given property(ies). The analyses will help the City understand existing regulatory constraints to developing housing downtown (within the Downtown Commercial and Service Commercial zoning districts), recommend changes to accommodate increased housing downtown, help the community visualize what increased density within the downtown zoning districts could look like, and gauge level of community support. Budget and timing allow for the study of 5 sites which have been selected as follows:
Selected Sites:
505-535 Healdsburg Avenue – Rite Aid, O’Reilly Auto, etc. – Service Commercial (large site) 502 Healdsburg Avenue – Bank of America – Service Commercial (medium site) 2 North Street – West Plaza City Parking Lot – Downtown Commercial (large site) 456 Healdsburg Avenue – Former Gas Station – Downtown Commercial (small/medium site) 434 Healdsburg Avenue – City Parking Lot – Downtown Commercial (small/medium site)
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Next Steps:
Establishing development assumptions including density, building heights, setbacks, parking ratios, target unit mix, etc. and running some testing on each site at both low and high yield scenarios to determine development potential and the need, if any, to revisit those assumptions.
Staff has met and continue to meet with the HEWG and community stakeholders such as the Healdsburg 2040 Land Use Committee as work progresses to discuss assumptions and gather feedback to help inform and guide the project. A public workshop will be held to present the initial findings and site visualizations to the community for review and input prior to a presentation of findings and recommendations to the City Council.
Housing Needs Assessment and Funding Strategies
On September 18, 2023, the City Council approved a contract with EPS Systems Inc. (EPS) for updating the City’s Housing Needs Assessment. The project includes gathering data on our current housing inventory, characteristics, and the demand for various housing types. It will also evaluate the housing production needed to serve our workforce across different income levels.
This information will be used by the Housing Element Working Group (HEWG) to guide their work and final recommendations.
The HEWG is also assessing various funding strategies to support their housing production recommendations. This includes exploring the creation of a Housing Trust Fund and identifying new funding sources at the Federal, State, and local levels. These steps are focused on supporting the development of affordable housing.
Next Steps
On December 11, 2023, EPS presented their methodology and preliminary data for the Housing Needs Assessment to the HEWG. The HEWG and public provided feedback and requested additional information. EPS is now revising the assessment and will present the updated version at the HEWG meeting on January 29, 2024, at the Randall Apartments common room. The final report and recommendations to the City Council, informed by the HNA, are scheduled for completion by June.
Strategies to Achieve Middle Income Housing and Homeownership Opportunities The HEWG workplan includes the growing challenge of providing affordable living options for middle-income individuals and families. This initiative responds to the significant rise in housing costs, which has created a gap in the market: a shortage of housing options for those who earn too much to qualify for subsidized housing but cannot afford market-rate units.
Currently, the HEWG is engaged with City staff in a study to assess middle-income housing in Healdsburg. This involves several key actions:
1. Quantifying the Need: The HEWG is assessing the demand for middle-income housing to accurately understand the scope of the requirement in Healdsburg.
2. Optimizing Measure P Units: Strategies are being developed to enhance the effectiveness of the City’s Measure P units, ensuring they cater to the needs of middleincome households.
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3. Funding Middle-Income Housing: The HEWG is identifying and recommending funding programs specifically tailored for the development of middle-income housing units.
4. Expanding Homeownership Opportunities: There is a focus on creating pathways to homeownership for all income levels, aiming to increase access to stable and affordable housing.
This analysis will complement the Downtown Housing Capacity Study and utilize information gathered through the HNA with recommendations on the economics of higher densities in the context of affordability and product type.
Assessment of the City’s Growth Management Ordinance (GMO) The GMO was created over two decades ago and subsequently amended through a series of voter initiatives. Those amendments have served to update the GMO as economic conditions and community priorities have evolved over time. To assess community sentiment on the current GMO, the City has retained FM3 Research to conduct public opinion research. FM3 will conduct a survey of approximately 400 likely November 2024 voters in the City of Healdsburg through dual modes (telephone and online interviews), which will yield a 4.9% margin of error at the 95% confidence level. The survey will be approximately 15-20 minutes in length and telephone interviews will be conducted in both English and Spanish.
The survey will ask respondents to provide their feelings on the current GMO, as well as respond to a variety of potential changes that could be proposed in the future. Specifically, respondents will be asked to provide feedback on potential geographic exclusions to the GMO as well as removal of the middle-income restriction for Category C rentals. Both options have been identified by staff, the HEWG and other stakeholders as possible tools to support the development of workforce housing without unduly changing the overall impact of the GMO. The survey will also seek to understand the types of information that, when provided to respondents, is most compelling in garnering support for the alternative along with community sentiment about housing policy and the GMO in general.
The survey is anticipated to take place in late January and will take 3-4 weeks to complete and compile results. Staff will provide the survey results at a future meeting. At that time, the City Council can determine what policy options, if any, are appropriate to pursue.
ENVIRONMENTAL STEWARDSHIP:
Not Applicable.
ALTERNATIVES:
Staff are requesting feedback from the Council.
FISCAL IMPACT:
The Council has approved contracts with Opticos Design Inc. for the completion of the Downtown Housing Capacity Study in the amount of $139,555 and Economic & Planning Systems, Inc for the completion of the Housing Needs Assessment in the amount of $75,800.
The assessment of the City’s GMO will be completed through a contract with FM3 in the amount
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of $37,500. Of the total $252,855 in contract costs $152,855 is funded by the Measure S Housing fund and the remaining $100,000 is funded by Measure T.
ENVIRONMENTAL ANALYSIS:
Pursuant to Section 15378(b)(5) of the California Environmental Quality Act (“CEQA”) Guidelines, the recommended action is an administrative activity of the City and will not result in direct or indirect physical changes in the environment and is therefore not a project for purposes of CEQA.
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CITY OF HEALDSBURG
CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: January 16, 2024
SUBJECT: Fiscal Year 2024-2026 Budget Development Overview PREPARED BY: Katie Edgar, Finance Director
STRATEGIC INITIATIVE(S):
Provide Effective Governance
RECOMMENDED ACTION(S):
Receive a presentation from City staff on the budget development plan for the upcoming twoyear budget cycle and provide feedback and direction to staff on the budget development goals, timeline, and public participation process.
COMMUNITY ENGAGEMENT/OUTREACH:
City staff are proposing to continue increasing community engagement with the budget process by providing multiple options for engagement.
BACKGROUND:
The City operates on a two-year budget cycle. The current two-year budget cycle will end on June 30, 2024. The next two-year budget, for fiscal year’s 2024-25 and 2025-26 will need to be adopted in early June to allow staff time to implement the budget in the City Enterprise Resource Planning (ERP) system to ensure a smooth transition between fiscal years.
DISCUSSION/ANALYSIS:
Staff are requesting City Council feedback on the budget development plan described in this report. The plan includes budget goals, a budget timeline, and a public participation plan.
As part of the overall budget development process, City staff will undertake a number of activities to forecast future year revenue and plan for future year expenses. Some budget development work has already commenced. City staff have updated the long-range financial forecast and prepared the cost allocation plan. The cost allocation plan allocates city administrative costs across city funds based upon a methodology consistent with Governmental Accounting Standards Board (GASB) best practices. Staff have also begun work on developing salary and benefit budgets for programs and forecasting initial revenue estimates.
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Budget Development Goals:
City staff have identified several budget development goals and are requesting feedback from Council on the proposed goals. The list of goals was developed by the Finance Director and City Manager with input from Department Heads. The proposed budget development goals are as follows:
1. Align Budget Resources with Council Goals. City Council will be completing the annual strategic planning process in March. Staff will work to ensure that adopted Council goals with fiscal impacts are appropriately reflected in the budget.
2. Focus on Infrastructure Funding. The City has funded key design elements for several major infrastructure projects and in the upcoming budget staff will continue focusing on funding the construction of these assets and prioritizing additional infrastructure needs.
3. Complete Facility Needs Assessments. The City has many aging facilities that have an increasing need for major maintenance. Staff will strive to include resources in the adopted budget to complete facility needs assessments at various locations to identify maintenance projects and functional efficiencies.
4. Improve Transparency through Accounting Development. The City provides a wide range of services including discretionary services that vary based on community demand.
Staff intend to include strategic changes to the citywide accounting schema to improve transparency and increase the efficiency of forecasting interrelated revenues and expenses.
5. Review Finance Policies. The City Pension Liability Funding Policy and the General Fund Surplus Policy require biennial reviews to ensure continued alignment of the City’s long-term financial goals with the current financial position. Staff will bring a future agenda item reviewing the policies to the Council at the February 20th meeting.
6. Continue to Pursue Robust Public Engagement. The City successfully implemented a new budget simulation tool in the last budget cycle that received national recognition.
Staff will build upon this success this year to allow various levels of engagement to meet the public where they are.
Staff would like feedback on the proposed goals and seek guidance on any additional budget development goals.
Budget Timeline:
City staff have developed a timeline of major activities for the budget development process (see Attachment A: Budget Development Timeline). The timeline includes key deliverables for staff, budget decisions for council, and public outreach.
Key dates for Council budget updates, deliberations, and decisions include:
• January 16, 2024: Budget Development Overview
• February 20, 2024:
o Midyear Budget Review
o Pension Liability Funding Policy Review
o General Fund Surplus Policy Review
• April 15, 2024: Council Budget Development Check-In
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• May 13, 2024: Special Meeting: Budget Workshop
• May 20, 2024: Q3 Financial Update with Year End Projections • May 31, 2024: Special Meeting: Study Session (if needed) • June 3, 2024: Budget and CIP Adoption
City Council Goal Setting will take place on March 25 and will be incorporated into the budget development process. Additionally, staff will provide updates to Council on public participation components throughout the budget development process. Staff are requesting feedback on the proposed timeline.
Public Participation Components:
For the upcoming two-year budget cycle, City staff are proposing to continue using the online interactive survey tool called “A Balancing Act” to help gain input from the public on budget priorities and choices. A Balancing Act is being used by cities across the country to allow community members to actively participate in the budget process by providing feedback on their terms.
• Budget Simulation. This survey tool allows members of the public to balance a macro level version of the City budget. The simulation includes several options for the public to increase or decrease expenditures in various areas. It also allows the participant to propose raising revenue. Staff will provide two versions of the simulation tool with one more high level and the other more detailed to maximize opportunities for community members to provide targeted feedback on a variety of budget areas that are important to them.
• Public Meetings. City will also conduct a public engagement meeting in addition to the scheduled City Council hearings. The meeting would provide an overview of the City Budget, an opportunity to engage with the public participation survey tools (via a live budget simulation and overview of the capital project prioritization survey) and allow residents to ask questions and share ideas on funding priorities. Information from participants would be gathered and reported back to Council along with the results of the participatory budgeting surveys. Staff will also provide additional community-based outreach to targeted organizations and stakeholder groups.
Staff are preparing engagement campaigns to ensure the survey tools as well as information on the public meetings reach as many community members as possible. Both survey tools will be deployed in both English and Spanish and made available to the public for several weeks. Once the surveys are completed, the software includes several analytical tools to help staff understand and report back to the City Council on the feedback received.
ENVIRONMENTAL STEWARDSHIP:
Not applicable.
ALTERNATIVES:
City Council can provide direction to City staff to make changes to the proposed budget development goals, timeline, and public participation plan.
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FISCAL IMPACT:
There is no fiscal impact associated with providing this staff report and presentation.
ENVIRONMENTAL ANALYSIS:
Consideration of the City’s Budget is an administrative activity, which is not considered a 'project' as defined by the California Environmental Quality Act (“CEQA”) (CEQA Guidelines§15378). Consequently, no CEQA action is required.
ATTACHMENT(S):
Budget Development Timeline
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16‐Jan 5‐Feb 15‐Feb Feb 20‐Feb 14‐Mar 18‐Mar 25‐Mar 8‐Apr 15‐Apr 25‐Apr 13‐May 20‐May 3‐Jun Council Finance Public Public Council Public Departments Council Finance Council Departments Council Council Council Budget
Development
Overview
Cost Allocation
Plan, Internal
Service Funds &
Salary
Projections Due
Launch Public
Budget
Simulation Tool
Public
Budget
Workshop
Mid‐Year
Finance
Update &
Policy
Reviews
Close Public
Budget
Simulation Tool
Preliminary
Operations &
CIP Budgets
Due
Goal
Setting
Budget
Analysis/
Evaluation with
City Manager &
Department
Heads
Budget Check‐
in
Final
Department
Revision Due
Special
Meeting:
Budget
Workshop
Q3 Financial
Update
Budget
Adoption
City of Healdsburg Budget Development Timeline
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Attachment: Budget Development Timeline (4305 : FY 2024-2026 Budget Development Overview) 1/10/2024 – Page 1
CITY OF HEALDSBURG
CITY COUNCIL FUTURE AGENDA ITEMS
(NOTE: The schedule is tentative and subject to change pending final publication and posting of the City Council meeting agenda) February 5, 2024 Black History Month Proclamation
Lunar New Year Proclamation
Investment Report – December 2023
Disbursement Report – December 2023
Revisions to the Memorandum of Understanding with 421 Foss Street LLC (Duchamp Hotel) for the Foley Family Community Pavilion Project
Quarterly L&M Village Update
Community-Wide Electric Energy and Demand Forecast
Income-Qualified Multi-Family Energy Appliance Direct Install Program Saggio Hills Park and Badger Park Design
Initial financial outlook and rate adjustment needs for the Water and Wastewater Departments Discussion on SB329 - Council Compensation
February 20, 2024 Landscaping and Lighting Assessment District (Tuesday) Fitch Mountain Public Access Improvements – Revegetation Bid Rejection Home Energy Load Management Program
Formation of Grove Street Underground Utility District
Formation of Healdsburg Avenue North Underground Utility District Tentative Map – North Village – Middle Income Units
Local Hazard Mitigation Plan Adoption
March 4, 2024 Women’s History Month Proclamation
Red Cross Month Proclamation
Employee Anniversaries – Berenice Garcia (30 years), Alexis Reynoso (5 years), Sal Sanchez (10 years) and Mark Yokoyama (5 Years)
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Packet Pg. 185 Attachment: Future Agenda Items List (4310 : Future Agenda Items - January 16, 2024) 1/10/2024 – Page 2
Police Department Annual Update
Cultural Trust Fund Amendment
Military Equipment Renewal
Inclusionary Housing Update
March 18, 2024 Cesar Chavez Day Proclamation
Fire Department Annual Update
Memorandum of Understanding to be a member agency in the Russian River Reuse Collective (R3C) Housing Element Annual Progress Report
General Plan Annual Progress Report
Growth Management Ordinance Annual Report
March 25, 2023
City Council Goal Setting
(NOTE: The schedule is tentative and subject to change pending final publication and posting of the City Council meeting agenda)
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Packet Pg. 186 Attachment: Future Agenda Items List (4310 : Future Agenda Items - January 16, 2024)