CITY OF HEALDSBURG
CITY COUNCIL/REDEVELOPMENT SUCCESSOR AGENCY
REGULAR MEETING MINUTES
February 5, 2024
CITY HALL COUNCIL CHAMBER
401 Grove Street, Healdsburg
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CALL TO ORDER/ROLL CALL
Mayor/Chairperson Hagele called to order the concurrent meeting of the City Council and Redevelopment Successor Agency of the City of Healdsburg at 6:02 p.m. with the following Council Members present:
Present: Council Members/: Edwards, Herrod, Kelley, Mitchell and Mayor Hagele Board Members
Absent: Council Members/: None.
Board Members
APPROVAL OF AGENDA
On a motion by Councilmember Kelley, seconded by Vice Mayor Mitchell, approved the February 5, 2024, City Council and Redevelopment Successor Agency meeting agenda as submitted. The motion carried on a unanimous voice vote. (Ayes 5, Noes 0, Absent – None)
REPORT ON CLOSED SESSION
Mayor Hagele reported a closed session was held and direction was given to staff.
ANNOUNCEMENTS/PRESENTATIONS-PROCLAMATION OF THE CITY COUNCIL
RECOGNIZING THE CELEBRATION OF THE LUNAR NEW YEAR
Mayor Hagele, with Council concurrence, issued a Proclamation recognizing February 10, 2024- February 24, 2024, as the celebration of the Lunar New Year in the City of Healdsburg.
Caroline Bonita gave thanks to the City Council and provided information about upcoming events to celebrate the Lunar New Year and expressed her appreciation for the partnership with the City of Healdsburg to help organize events.
ANNOUNCEMENTS/PRESENTATIONS-PROCLAMATION OF THE CITY COUNCIL
RECOGNIZING THE CELEBRATION OF BLACK HISTORY MONTH
Mayor Hagele, with Council concurrence, issued a Proclamation recognizing February 2024 as Black History Month in the City of Healdsburg.
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Louis Jordan expressed his appreciation to receive the Black History Month Proclamation and thanked the Council. Mr. Jordan commented on his journey to Healdsburg and the meaning of Black History Month, honoring his father and other African Americans.
CITY MANAGER REPORTS
City Manager Kay provided an update on recent incidents and power outages following the recent flooding and acknowledged the dedicated hard work from staff to clean everything up.
Manager Kay announced Healdsburg has been recertified as a bronze-level bicycle friendly community by Bike Friendly America and the League of American Bicyclists and that the Governor has acknowledged Healdsburg as a designated Prohousing Jurisdiction. Mr. Kay concluded by providing information about the groundbreaking for the Foley Pavilion.
PUBLIC COMMENTS ON ITEMS ON THE CONSENT CALENDAR AND NON
AGENDA ITEMS
Holly Hoods, with the Healdsburg Museum, thanked the Council for the Proclamations given and commented about the importance of acknowledging diversity and history in the community.
Ms. Hoods provided information about upcoming events including a “Black Historic Sites of Healdsburg” walking tour and history tour at the cemetery.
CONSENT CALENDAR
Vice Mayor Mitchell requested to pull Item 8C from the Consent Calendar. There was a Council majority to pull the item.
On a motion by Councilmember Kelley, seconded by Councilmember Herrod, approved the Consent Calendar as follows:
A. RECEIVE THE MONTHLY INVESTMENT REPORT FOR DECEMBER 2023 By motion, received and approved the Monthly Treasurer’s Investment Report for December 2023. (Ayes 5, Noes 0, Absent - None)
B. APPROVAL OF DISBURSEMENT REPORT FOR WITHDRAWALS DURING THE MONTH OF DECEMBER 2023
By motion, approved the Disbursement Report for December 2023. (Ayes 5, Noes 0, Absent - None)
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C. L&M QUARTERLY UPDATE
This item was pulled from the consent calendar for discussion.
D. FITCH MOUNTAIN PUBLIC ACCESS IMPROVEMENTS REVEGETATION
WORK BID AWARD
Adopted Resolution No. 5-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF HEALDSBURG CONDITIONALLY AWARDING THE FITCH
MOUNTAIN PUBLIC ACCESS IMPROVEMENTS REVEGETATION WORK PROJECT
TO HANFORD APPLIED RESTORATION & CONSERVATION IN THE AMOUNT OF $172,520 AUTHORIZING THE CITY MANAGER TO EXECUTE THE CONTRACT APPROVE CONTRACT CHANGE ORDERS UP TO 10% OF THE ORIGINAL CONTRACT AMOUNT; AND AMENDING THE ADOPTED FISCAL YEAR 2023-2024 BUDGET” (Ayes 5, Noes 0, Absent – None)
E. COMMUNITY-WIDE ELECTRIC ENERGY AND DEMAND FORECAST
Adopted Resolution No. 6-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF HEALDSBURG APPROVING AN AGREEMENT WITH RINCON CONSULTING, INC. (RINCON) TO DEVELOP A LONG-RANGE ENERGY AND
DEMAND FORECAST FOR THE CITY OF HEALDSBURG, AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT ON THE CITY’S BEHALF” (Ayes 5, Noes 0, Absent – None)
F. AUDITED FINANCIAL STATEMENT FOR THE FISCAL YEAR ENDING JUNE 30, 2023
By motion, approved the Fiscal Year 2022-23 audited financial statements based on an audit performed in accordance with Government Auditing Standards. (Ayes 5, Noes 0, Absent - None)
The motion to approve the Consent Calendar as noted above, carried on a unanimous voice vote. (Ayes 5, Noes 0, Absent – None)
L&M QUARTERLY UPDATE
Vice Mayor Mitchell commented on why she wanted to pull the L&M Quarterly Update from the Consent Calendar.
Housing Director Sotomayor provided information on the L&M Village including program outcomes, occupancy demographics, supportive services offered, and Homekey funding.
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Margaret Sluyk, Reach for Home, provided an overview on recent staff hires, the challenges Reach For Home is experiencing, the recent grant Reach For Home has received from the State to address the Syar property and future opportunities for the L&M Village and thanked the Council for all their support.
In response to Council’s inquiries, Ms. Sluyk provided information on ideas that could increase landlords accepting vouchers, the shelter-less population at the Syar property and noted how the funds received from the state are being utilized. Ms. Sluyk further reviewed the Point-In-Time Count accuracy, explained that new staff positions were funded through private funding and mental health support funding and detailed employee mental health benefits.
Public Comment
Dan Pizza commented on the Point-In-Time count numbers, the condition of the Syar property and inquired who is responsible for cleaning up the property.
PUBLIC HEARING
None.
OLD BUSINESS – RESOLUTION IN SUPPORT OF “THE IMPROVED AND
ENHANCED LOCAL FIRE PROTECTION, PARAMEDIC SERVICES AND DISASTER RESPONSE INITIATIVE”
Fire Chief Boaz stated the action this evening was to adopt a resolution in support of “The Improved and Enhanced Local Fire Protection, Paramedic Services and Disaster Response Initiative” (MEASURE H). Chief Boaz provided an overview about the presentation Council received at the January 16, 2024, City Council meeting and noted Council requested he return with a resolution in support of MEASURE H.
Council Comments
Councilmember Edwards expressed his support for Measure H and highlighted the importance of fire prevention and commented on how this will be helpful in continuing the work the Fire Department is already doing.
Councilmember Herrod echoed the sentiments he has heard throughout the community expressing tremendous gratitude for fire fighter personnel and expressed his support for Measure H.
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Councilmember Kelley thanked Chief Boaz for the presentation and reflected on how Measure H will impact other fire districts, resources and mutual aid. Councilmember Kelley acknowledged how the sales tax will impact the community and expressed support for Measure H.
Vice Mayor Mitchell expressed support for Measure H and urged the Fire Department to go slow when implementing Measure H if it passes.
There were no public comments on this item.
On a motion by Councilmember Herrod, seconded by Councilmember Kelley, adopted Resolution No. 7-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HEALDSBURG SUPPORTING “THE IMPROVED AND ENHANCED LOCAL FIRE PROTECTION, PARAMEDIC SERVICES AND DISASTER RESPONSE INITIATIVE” SUBMITTED TO THE VOTERS OF SONOMA COUNTY AT THE MARCH 5, 2024, ELECTION.” The motion carried on a unanimous roll call vote. (Ayes - 5, Noes - 0, Absent - None)
NEW BUSINESS – DRY CREEK COMMONS SUPPORT AND FUNDING
COMMITMENT
Housing Director Sotomayor stated the action for this evening is to adopt a Resolution in support of the Dry Creek Commons Affordable Housing Project and issue a funding commitment letter.
Director Sotomayor provided background information on the development of 155 Dry Creek Road, described how this project aligns with planning and community goals, the housing element and the Regional Housing Needs Allocation (RHNA).
Director Sotomayor gave an overview of the project and reviewed the number of units by income. Director Sotomayor further reviewed the financial overview of the project including the City contributions of the land donation, Measure S support, and a loan. Director Sotomayor noted the various funding sources needed to bring the project to completion, how this project addresses the 6th Cycle RHNA and the environmental considerations taken into account for the project.
In response to Council’s inquiries, Burbank Housing Development Director Jocelyn Lin provided information on the Joe Serna Jr. Grant, how units are set aside for farm worker housing and the outreach process for farm worker housing. Director Sotomayor reviewed the funding needs coming from Measure S, noted why not all affordable housing projects are utilizing funding from Measure S and highlighted the importance of a strong marketing plan.
Public Comment
Jim Walters inquired if the Mill District Project is providing low-income housing.
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On a motion by Councilmember Kelley, seconded by Councilmember Herrod, adopted Resolution No. 8-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG SUPPORTING THE DRY CREEK COMMONS AFFORDABLE HOUSING PROJECT’S APPLICATION FOR THE 9% LOW-INCOME HOUSING TAX CREDIT (LIHTC) PROGRAM AND ISSUING A FUNDING COMMITMENT LETTER OF $1,000,000 MEASURE S AFFORDABLE HOUSING FUNDS.” The motion carried on a unanimous roll call vote (Ayes 5, Noes 0, Absent - None).
NEW BUSINESS – INITIAL FINANCIAL OUTLOOK AND RATE ADJUSTMENT
REQUIREMENTS FOR THE WATER AND WASTEWATER FUNDS
Utilities Director Crowley introduced the presentation and provided background information on water and wastewater rates, noting the current rates are dependent upon consumer usage returning to historic levels. Director Crowley informed Council of the current budget shortfall from lower than anticipated water usage and noted that staff is seeking Council direction of the financial outlook for water and wastewater rates. Director Crowley introduced Kevin Kostick and Jason Rasor, the consultants from Raftelis, who would be presenting this evening.
Mr. Kostick provided information about the rate study process including the framework for setting rates, developing the long-range financial plan, and the rate design and adoption process in California. Mr. Kostick reviewed why the City is conducting the cost-of-service analysis, the baseline water demands in the City and the impact of aging infrastructure. Director Crowley reviewed the Capital Improvement Projects (CIP) proposed in future budgets and provided information on water supply resiliency for Healdsburg.
Mr. Kostick discussed the Capital Reserve Policy, the key elements of a financial plan, reviewed the preliminary operational, debt, and capital costs and potential revenue increases for three fiscal years. Mr. Kostick reviewed the proposed increases to water and wastewater over the next five years and compared the proposed water and wastewater rate increases with neighboring cities. Mr. Kostick further reviewed alternative rate structures being studied, and how the alternative rates could be implemented and outlined next steps of the rate study.
Director Crowley reviewed the feedback staff is seeking from Council on several key water and wastewater priorities including the proposed rate structures, the appropriate level of capital investment to meet requirements and maintain aging system, the timing of efforts to diversify the City’s water supply, and the elimination of capital reserve.
In response to Council inquiries, Director Crowley discussed the potential to secure funding through forever chemical class-action lawsuits, confirmed the current drought rate structure does need to be updated and reviewed prioritizing operational and capital improvement project costs.
Public Works Director Zimmer provided information on the prioritization of Brown Street on the project list and estimated the cost to make all the needed repairs. Mr. Kostick provided City Council/RSA Regular Meeting Minutes
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information about the relationship between water use and wastewater rates, discussed alternative solutions to help the community manage potential increases and provided details about the proposed two-tiered rate structure, noting a third tier can be researched. Finance Director Edgar provided information on the capital reserve fund and discussed next steps for conducting a new rate study in a couple years.
Public Comment
Alson Kemp commented on the financial study, rate adjustments and where water would come from in the future and expressed his support for the proposed rate adjustment.
Gary Keyes commented on future water access and stressed the issue is more urgent than increasing water and wastewater rates. Mr. Keyes encouraged the Council to consider the proposed tiered rate structure and stressed the importance of prioritizing a reliable water supply.
Karen Neuberger encouraged the Council to address water resilience for Healdsburg.
Jim Walters opined on exploring Dry Creek as a potential water resource, voiced concerns about the effectiveness of previous conservation efforts and commented that previous Council’s may have overlooked opportunities to mitigate the financial impact.
David Jones acknowledged the community's concerns regarding rising water rates, urged the Council to explore cost-saving measures, expressed support for the tiered rate structure and suggested using dollar amounts to assist residents with budgeting.
Merrilyn Joyce commented on the use of fluoride in water, inquired about water storage wells and the cost reduction if water can’t be fluoridated anymore and concurred with the importance of water resilience.
Council Comments
Proposed Rate Structure
Councilmember Edwards expressed support for the tiered rate structure and suggested working out programs for lower income families and seniors.
Vice Mayor Mitchell was supportive of the tiered rate structure and inquired how the CARE discount is funded.
Mayor Hagele expressed support for the tiered rate structure.
Councilmember Kelley was also supportive of the tiered rate structure and inquired about the nuance between two or three tiers.
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Councilmember Herrod was supportive of moving forward with a three-tiered rate structure.
In response to Councilmember Herrod’s comments, Director Crowley clarified the tiered system would develop a cost recovery structure to allocate costs as their encouraged.
Appropriate level of Capital Investment to meet Requirements and Maintain Aging System Councilmember Herrod was supportive of staff’s recommendation and was in favor of moving the research for a Dry Creek water source to the top of the list.
In response to Councilmember Kelley’s inquiries, Director Crowley distinguished between the necessary upgrades to the current pumping facilities and clear well at Dry Creek and the separate project to expand water capacity from Dry Creek to meet the city's needs and clarified what staff needs from Council to move forward with Capital in a three-year time frame.
Councilmember Kelley suggested budgeting for Capital Improvement projects as a precautionary measure, expressed concern about potential uncertainties with the Potter Valley Joint Powers Association and suggested having a contingency plan in place.
Mayor Hagele echoed the sentiments of Councilmember Kelley.
Vice Mayor Mitchell emphasized the focus should be on infrastructure, expressed concern about adding too much to the rate study, inquired about the Potter Valley Project and receiving an alternative financial plan that included Dry Creek.
Councilmember Edwards expressed a desire to include Dry Creek to stabilize water supply and revenue.
Elimination of Capital Reserve
Councilmember Edwards expressed concern that a 90-day reserve may be insufficient and emphasized the importance of a strong capital reserve as a precaution against potential challenges.
Vice Mayor Mitchell expressed a desire to see an option to include and remove the Capital Reserve Fund.
Councilmember Kelley inquired about the difference between Operational Reserve and Capital Reserve and was supportive of staff’s recommendation to eliminate the Capital Reserve.
Councilmember Herrod echoed the sentiments of Councilmember Kelley and was supportive of the staff recommendation.
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Mayor Hagele was supportive of modifying the proposed language within the Capital Reserve funds so the funds could be used.
In response to Councilmember Edward’s inquiries, Director Edgar described the purpose of the Capital Reserve Fund and explained the current limitations, provided information about the City’s proposal to modify the fund's restrictions and presented potential options for revising the fund's language.
NEW BUSINESS – PRESENTATION ON SENATE BILL 329 REGARDING CITY
COUNCILMEMBER COMPENSATION
City Attorney Zutler provided background information about SB 329, noting SB329 allows the compensation for Councilmembers to be increased. Attorney Zutler reviewed the maximum compensation allowed for population size and outlined the next steps Council would need to take if Council decided to move forward.
In response to Council’s inquiries, City Attorney Zutler clarified the potential increase in Council compensation.
Public Comment
Merrilyn Joyce acknowledged the challenges of serving on the City Council with low compensation and commented on the optics.
Ted Williams expressed support for higher compensation and emphasized how it will encourage people to run without financial burden.
Following a brief discussion by Council, there was Council consensus to direct staff to return with an ordinance regarding Council compensation.
NEW BUSINESS – APPOINTMENT OF COMMISSIONERS TO THE PARKS AND
RECREATION COMMISSION AND SENIOR CITIZEN ADVISORY COMMISSION City Clerk Allan introduced this item for discussion and noted only the incumbents applied for the open positions on the Parks and Recreation and Senior Citizen Advisory Commission.
There were no public comments on this item.
On a motion by Councilmember Kelley, seconded by Councilmember Edwards, appointed Michiko Conklin and Rachel Stepp (Melick) to the Parks and Recreation Commission for a term of three years due to expire January 1, 2027 and Donna O’Brien, Cindi Brown, and Barbara City Council/RSA Regular Meeting Minutes
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Erickson to the Senior Advisory Commission for a term of three years due to expire January 1, 2027. The motion carried on a unanimous roll call vote (Ayes - 5, Noes - 0, Absent - None).
COUNCIL REPORTS ON MATTERS OF INTEREST OCCURRING SINCE PREVIOUS
REGULAR MEETING/EXPENSE REIMBURSEMENT REPORTS
Councilmember Herrod reported he attended the Chamber of Commerce Government Affairs meeting, the Chamber of Commerce Outreach Walk and an event for Myra Hoefer Design.
Councilmember Kelley reported she attended meetings with other City Council Representatives, met with the new Ukiah Mayor Josefina Duenas, attended the Asian American Pacific Islander Coalition meeting, the Lunar New Year Celebration at the Sonoma County Museum, Sheriff Eddie Engram’s First Annual Sheriff’s Dinner update and celebrated the new Senate President Protem, Mike McGuire. Councilmember Kelley further reported she attended the American Legion Post 111 Crab Feed, the Sonoma County Farm Bureau Crab Feed and announced the ballots are in the mail and encouraged the community to vote.
Councilmember Edwards reported he attended the League of CA Cities Conference, a ribbon cutting at Society, the Chamber of Commerce Outreach Walk, the Economic Summit at Sonoma State University, the Senior Citizen Advisory Committee, the Asian American Pacific Islander meeting and the Sonoma County Tourism Breakfast.
Vice Mayor Mitchell reported she attended the Society ribbon cutting event, the Jill Biden fundraiser, Good Morning Healdsburg, SMART Update meeting, the Chamber of Commerce Outreach Walk, the New Mayors and Councilmembers training in Monterey and the Zero Waste Sonoma Celebration in Windsor for their purchase of a household hazardous waste facility.
Mayor Hagele reported he attended the Chamber of Commerce Outreach Walk, the Great Redwood Trail meeting, Asian American Pacific Islander meeting, and the Sonoma County Tourism Breakfast.
WRITTEN COMMUNICATIONS
None.
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ADJOURNMENT
There being no further City Council/Redevelopment Successor Agency business to discuss, the meeting was adjourned at approximately 9:31 p.m.
APPROVED: ATTEST:
_________________________________ __________________________________ David Hagele, Mayor Raina Allan, City Clerk