Healdsburg City Council
April 15, 2024

CITY OF HEALDSBURG

CITY COUNCIL/REDEVELOPMENT SUCCESSOR AGENCY

REGULAR MEETING AGENDA
City Hall Council Chamber Meeting Date: April 15, 2024
401 Grove Street Time: 6:00 PM
Healdsburg, CA 95448 Date Posted: April 10, 2024
(707) 431-3317
To join by computer, tablet, or mobile device:

Go to https://zoom.us/join and type in the Webinar ID: 815 8894 3494 or follow this link:
healdsburg.gov/zoom (Pre-registration for the meeting is not required.) Mayor Hagele will be participating in the meeting remotely from the Courtyard Washington Downtown Convention Center 901 L Street NW Washington, District of Columbia, 20001 The agenda shall be posted at this location.
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1. CALL TO ORDER/ROLL CALL
A. Pledge of Allegiance
B. Approval of Agenda

2. REPORT ON CLOSED SESSION(S)

3. ANNOUNCEMENTS/PRESENTATIONS
A. Proclamation Declaring April 2024 as National Volunteer Appreciation Month in the City of Healdsburg
B. Marie Sparks Volunteer Appreciation Award
C. Healdsburg Tourism Improvement District (HTID) Annual Update Receive a Presentation from the Healdsburg Chamber of Commerce on the Healdsburg Tourism Improvement District's (HTID) Annual Update.

4. CITY MANAGER REPORTS

5. PUBLIC COMMENTS ON ITEMS ON THE CONSENT CALENDAR AND NON

AGENDA ITEMS
This time is set aside to receive comments from the public regarding matters of general interest not on the agenda, but related to City Council/RSA business. Pursuant to the Brown Act, however, the City Council cannot consider any issues or take action on any requests during this comment period. Public comment on non-agenda items is limited to thirty (30) minutes total for all speakers, City Council/RSA Regular Meeting Agenda
April 15, 2024

with each speaker given no more than three (3) minutes. If there are more than ten (10) audience/public comment speakers, the Mayor may reduce each speaker’s time from three (3) minutes so that all speakers have an equal time to speak. At the Mayor’s discretion, the public comment period may be extended past 30 minutes. Members from the public wishing to speak on a Consent Agenda item should notify the Mayor during Public Comments.

6. CONSENT CALENDAR
The following items listed on the Consent Calendar are considered routine in nature or have been previously reviewed by the Council and require little or no further discussion by the Council, public, or applicant and action will be taken by the City Council by a single motion. A Councilmember may request that an item be removed from the Consent Calendar and action taken separately. Consent by a majority of the Councilmembers present will be required in order to remove the item. In the event an item is removed, the matter will be considered immediately following the adoption of the Consent Calendar.

A. Procurement of Vehicles and Equipment
Adopt a Resolution approving the purchase of a 2023 Ford Mustang Mach-E from Hansel Ford for $50,996.30; authorizing the City Manager to execute the Purchase Order Contract Hansel Ford; and amending the adopted budget.

B. Procurement of Vehicles and Equipment
Adopt a Resolution approving a contract with Sourcewell (formerly National Joint Powers Association) for a cooperative purchase of a 2023 Ford F-150 Lightning, authorizing the City Manager to execute the contract in an amount not to exceed $69,145 and increasing budget appropriations in the Vehicle Service Fund by $16,379.

C. Declaring Vehicles and Equipment Surplus
Adopt a Resolution declaring various vehicles and equipment as surplus.

D. Amendment to Service Agreement with Sonic for City Dark Fiber Implementation Adopt a Resolution approving and authorizing the City Manager to execute an amendment to the service agreement, and other documents necessary, with Sonic to upgrade city internet and intranet connections.

E. Conduit Lease Agreement with Sonic.net, LLC
Adopt a Resolution approving a Conduit Lease Agreement between the City of Healdsburg, and Sonic.Net, LLC, and authorizing the City Manager to execute the Lease Agreement on behalf of the City.

City Council/RSA Regular Meeting Agenda
April 15, 2024

F. Communication Bridge Contract Amendment
Adopt a Resolution approving an amendment to the Professional Services Agreement with Julie Burns DBA The Communication Bridge for translation and interpretation services at public meetings, authorizing the City Manager to execute the amendment, extending the contract term to December 31, 2024, and increasing the not to exceed amount to $75,000.

G. Ordinance Amending Healdsburg Municipal Code Section 2.08 Related to City Councilmember Compensation
Pass an Ordinance amending Section 2.08.020 of the Healdsburg Municipal Code.

H. Resolution in Support of the “The Sonoma County Childcare and Children’s Health Initiative”
Adopt a Resolution supporting “The Sonoma County Childcare and Children’s Health Initiative” measure on the November 5, 2024, Sonoma County Ballot.

I. Amendment to the Promissory Note for the Randall Apartments Project Adopt a Resolution approving an amendment to the Promissory Note terms with Eden Mill District, LP for the Randall Apartments project, and authorize the City Manager to finalize the amendment and all related documents necessary for this transaction.

7. PUBLIC HEARINGS
A. Inclusionary Housing Ordinance Update

1. Introduce for first reading, by title only, waiving further reading of the text an ordinance amending Healdsburg Municipal Code Section 20.20.030 Inclusionary Housing; and Section 20.28.310 Definitions and find that the ordinance amendments are exempt from the California Environmental Quality Act (CEQA).

2. Adopt a Resolution rescinding Resolution No. 81-2019 and establishing in-lieu inclusionary housing fees as provided for in subsection 20.20.030(J) of the City of Healdsburg Land Use Code and include a 50% reduction in the in-lieu housing fee for new residential units created under SB 9.

8. OLD BUSINESS
A. Downtown Housing Capacity Study
Receive a presentation from City Staff, Opticos Design Inc., and Economic Planning Systems on the potential for increasing downtown housing and provide feedback to staff.

City Council/RSA Regular Meeting Agenda
April 15, 2024

B. Public Art Grant Awards
Adopt a Resolution approving Healdsburg Public Art Grants for the 2023-2024 program year.

C. Memorandum of Understanding with Sonoma County Waste Management Agency (Zero Waste Sonoma) to supply compost to a City Compost Hub Adopt a Resolution authorizing the City Manager to sign a Memorandum of Understanding with Sonoma County Waste Management Agency (Zero Waste Sonoma) to supply compost to a City Compost Hub.

D. Fiscal Years 2024-25 & 2025-26 Budget Development Update Receive a presentation from City staff on the status of budget development activities for the upcoming two-year budget cycle and provide feedback and direction.

9. NEW BUSINESS
None.

10. COUNCIL REPORTS ON MATTERS OF INTEREST OCCURRING SINCE

PREVIOUS REGULAR MEETING/EXPENSE REIMBURSEMENT REPORTS

11. WRITTEN COMMUNICATIONS

12. ADJOURN CITY COUNCIL / RSA MEETING

13. FUTURE AGENDA ITEMS
A. Future Agenda Items for 2024
SB 343 - DOCUMENTS RELATED TO OPEN SESSION AGENDAS: Any writings or documents provided to a majority of the City Council/Redevelopment Successor Agency Board regarding any item on this agenda after the posting of this agenda and not otherwise exempt from disclosure, will be made available for public review in the City Clerk's Office located at City Hall, 401 Grove Street, Healdsburg, during normal business hours. If supplemental materials are made available to the members of the City Council/Redevelopment Successor Agency Board at the meeting, a copy will be available for public review at the City Hall Council Chambers, 401 Grove Street, Healdsburg, CA 95448.

City Council/RSA Regular Meeting Agenda
April 15, 2024

These writings will be made available in appropriate alternative formats upon request by a person with a disability, as required by the Americans with Disabilities Act.

DISABLED ACCOMMODATIONS: The City of Healdsburg will make reasonable accommodations for persons having special needs due to disabilities. Please contact Raina Allan, City Clerk, at Healdsburg City Hall, 401 Grove Street, Healdsburg, California, 431-3317, at least 72 hours prior to the meeting, to ensure the necessary accommodations are made.

CIUDAD DE HEALDSBURG

CONSEJO MUNICIPAL/AGENCIA DE DESARROLLO SUCESORA
ORDEN DEL DÍA DE LA REUNIÓN ORDINARIA
Cámaras del Consejo Municipal Fecha de reunión: 15 de abril de 2024 401 Grove Street Hora: 6:00 PM
Healdsburg, CA 95448 Fecha de publicación: 10 de abril de 2024 (707) 431-3317
Para participar por computadora, tableta o dispositivo móvil:

Vaya a https://zoom.us/join y teclee el número de identificación (ID) del seminario web: 815 8894 3494 o siga este enlace: healdsburg.gov/zoom (No es necesario inscribirse previamente a la reunión).

El alcalde Hagele participará en la reunión a distancia desde el Courtyard Washington Downtown Convention Center 901 L Street NW Washington, Distrito de Columbia, 20001 El orden del día se publicará en este lugar.
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1. LLAMADA AL ORDEN/PASAR LISTA
A. Juramento a la bandera
B. Aprobación del orden del día

2. INFORME SOBRE LA SESIÓN/LAS SESIONES A PUERTA CERRADA

3. ANUNCIOS/PRESENTACIONES
A. Proclamación por la cual se declara abril de 2024 como el Mes Nacional de Agradecimiento al Voluntariado en la ciudad de Healdsburg B. Premio Marie Sparks de Agradecimiento al Voluntariado C. Actualización anual del Distrito de Mejora del Turismo de Healdsburg (HTID) Recibir una presentación de la Cámara de Comercio de Healdsburg sobre la Actualización Anual del Distrito de Mejora del Turismo (HTID).

4. INFORMES DEL GERENTE DE LA CIUDAD

5. COMENTARIOS PÚBLICOS SOBRE LOS PUNTOS EN EL CALENDARIO ACORDADO Y LOS PUNTOS NO INCLUIDOS EN EL ORDEN DEL DÍA
Este tiempo se reserva para recibir comentarios del público sobre asuntos de interés general no incluidos en el orden del día, pero relacionados con los asuntos del Consejo Municipal/RSA. Sin embargo, conforme la Ley Brown, el Consejo Municipal no puede considerar temas o tomar medidas sobre cualquier solicitud hecha durante este período de comentario. Los comentarios del público sobre los puntos no incluidos en el orden del día están limitados a treinta (30) minutos en Orden del día de la Reunión Ordinaria del Consejo Municipal /RSA 15 de abril de 2024
Página 7
total para todos los oradores, concediéndose a cada orador un máximo de tres (3) minutos. Si hay más de diez (10) comentarios públicos, el alcalde puede reducir el tiempo de tres (3) minutos de cada orador para que así todos los oradores tengan el mismo tiempo para hablar. A discreción del alcalde, el periodo de comentarios del público podrá prolongarse más de 30 minutos. Los miembros del público que deseen hablar sobre un asunto en el orden del día acordado deben notificárselo al alcalde durante los comentarios públicos.

6. CALENDARIO ACORDADO
Los siguientes puntos enumerados en el orden del día acordado se consideran rutinarios o han sido revisados previamente por el Consejo y requieren poca o ninguna discusión por parte del Consejo, el público o solicitante y el Consejo Municipal tomará medidas en una sola moción. Un miembro del consejo puede solicitar que se excluya un punto del calendario acordado y se pueden tomar medidas por separado. Para excluir un punto, se requiere el consentimiento de una mayoría de los miembros del consejo presentes. En caso de que se excluya un punto, el asunto se considerará de inmediato después de la adopción del orden del día acordado.

A. Contratación de vehículos y equipo
Adoptar una Resolución por la que se aprueba la compra de un Ford Mustang Mach-E 2023 a Hansel Ford por $50,996.30; se autoriza al gerente de la Ciudad a ejecutar el Contrato de Orden de Compra Hansel Ford; y se modifica el presupuesto adoptado.

B. Contratación de vehículos y equipo
Adoptar una Resolución por la que se aprueba un contrato con Sourcewell (anteriormente National Joint Powers Association) para la compra cooperativa de un Ford F-150 Lightning 2023, se autoriza al gerente de la Ciudad a ejecutar el contrato por un importe que no excederá de $69,145 y se aumentan los créditos presupuestarios en el Fondo de Servicio de Vehículos en $16,379.

C. Declaración de excedente de vehículos y equipo
Adoptar una Resolución por la que se declaran excedentes varios vehículos y equipos.

D. Enmienda al Acuerdo de Servicio con Sonic para la implementación de fibra oscura en la Ciudad
Adoptar una Resolución por la cual se aprueba y autoriza al gerente de la Ciudad a ejecutar una enmienda al acuerdo de servicio, y otros documentos necesarios, con Sonic para actualizar las conexiones de Internet e intranet de la Ciudad.

E. Contrato de arrendamiento de conducto con Sonic.net, LLC Adoptar una Resolución por la que se aprueba el Acuerdo de Arrendamiento de conducto entre la ciudad de Healdsburg y Sonic.net, LLC y se autorice al gerente de la Ciudad a ejecutar el Acuerdo de Arrendamiento en nombre de la Ciudad.

Orden del día de la Reunión Ordinaria del Consejo Municipal /RSA 15 de abril de 2024
Página 8
F. Enmienda al contrato con Communication Bridge
Adoptar una Resolución por la que se aprueba una enmienda al Acuerdo de Servicios Profesionales con Julie Burns DBA The Communication Bridge para servicios de traducción e interpretación en reuniones públicas, autorizando al gerente de la Ciudad a ejecutar la enmienda, extendiendo el plazo del contrato hasta el 31 de diciembre de 2024, e incrementando el monto no excedente a $75,000.

G. Ordenanza por la que se modifica la Sección 2.08 del Código Municipal de Healdsburg relativa a la retribución de los concejales de la Ciudad Aprobar una Ordenanza para enmendar la sección 2.08.02 del Código Municipal de Healdsburg.

H. Resolución en apoyo de la “Iniciativa del condado de Sonoma sobre guarderías y salud infantil”
Adoptar una Resolución en apoyo de la medida de la “Iniciativa del condado de Sonoma sobre guarderías y salud infantil” en la boleta electoral del condado de Sonoma del 5 de noviembre de 2024.

I. Enmienda al Pagaré para el Proyecto de Apartamentos Randall Adoptar una Resolución por la que se apruebe una modificación de los términos del Pagaré con Eden Mill District, LP para el proyecto Randall Apartments, y autorizar al gerente de la Ciudad a finalizar la modificación y todos los documentos relacionados necesarios para esta transacción.

7. AUDIENCIAS PÚBLICAS
A. Actualización de la Ordenanza sobre viviendas inclusivas

1. Presentar para primera lectura, únicamente por el título, renunciando a una nueva lectura del texto, una ordenanza que modifica el Código Municipal de Healdsburg en relación con la Sección 20.20.030 sobre Viviendas Inclusivas, y la Sección 20.28.310 sobre Definiciones; y determinar que las enmiendas a la Ordenanza están exentas de la Ley de Calidad Ambiental de California (CEQA).

2. Adoptar una Resolución revocando la Resolución No. 81-2019 y estableciendo las tarifas de vivienda inclusiva en sustitución, según lo dispuesto en la subsección

20.20.030(J) del Código de Uso de Suelo de la Ciudad de Healdsburg, e incluir una reducción del 50% en la tarifa de vivienda en sustitución para las nuevas unidades residenciales creadas bajo SB 9.

Orden del día de la Reunión Ordinaria del Consejo Municipal /RSA 15 de abril de 2024
Página 9

8. ASUNTOS PENDIENTES
A. Estudio de capacidad de vivienda en el centro
Recibir una presentación del personal de la Ciudad, Opticos Design Inc., y Economic Planning Systems sobre el potencial para aumentar el número de viviendas en el centro y proveer comentarios al personal.

B. Premios de Subvenciones para Arte Público
Adoptar una Resolución para aprobar las becas de arte público de Healdsburg para el año del programa 2023-2024.

C. Memorándum de acuerdo con la Agencia de Gestión de Residuos del Condado de Sonoma (Zero Waste Sonoma) para suministrar compost a un Centro de Compostaje de la Ciudad
Adoptar una Resolución para autorizar al gerente de la Ciudad a firmar un Memorándum de acuerdo con la Agencia de Gestión de Residuos del Condado de Sonoma (Zero Waste Sonoma) para suministrar compost a un Centro de Compostaje de la Ciudad.

D. Actualización del desarrollo del presupuesto para los años fiscales 2024-25 y 2025-26 Recibir una presentación del personal de la Ciudad sobre el estatus de las actividades de desarrollo presupuestario para el próximo ciclo presupuestario bienal y proporcionar comentarios y orientación.

9. ASUNTOS NUEVOS
Ninguna.

10. INFORMES DEL CONSEJO SOBRE ASUNTOS DE INTERÉS QUE HAN OCURRIDO DESDE LA REUNIÓN ORDINARIA ANTERIOR/INFORMES DE

REEMBOLSO DE GASTOS

11. COMUNICACIONES ESCRITAS

12. LEVANTAR LA REUNIÓN DEL CONSEJO MUNICIPAL/RSA

13. PUNTOS FUTUROS PARA EL ORDEN DEL DÍA
A. Futuros puntos del orden del día para 2024
Orden del día de la Reunión Ordinaria del Consejo Municipal /RSA 15 de abril de 2024
Página 10
SB 343 - DOCUMENTOS RELACIONADOS CON EL ÓRDEN DEL DÍA DE LAS SESIONES ABIERTAS: Cualquier escrito o documento provisto a una mayoría de la Junta del Consejo Municipal/Agencia de Desarrollo Sucesora con respecto a cualquier punto en este orden del día después de la publicación de la misma y que no esté exento de divulgación, se pondrá a disposición del público en la Oficina de la Secretaría Municipal ubicada en City Hall, 401 Grove Street, Healdsburg, durante horas hábiles. Si el material complementario se pone a disposición de los miembros de la Junta del Consejo Municipal/Agencia de Desarrollo Sucesora, una copia estará disponible para la revisión pública en las Cámaras del Consejo Municipal, 401 Grove Street, Healdsburg, CA 95448.

Estos escritos se pondrán a disposición en formatos alternativos apropiados a petición de una persona con discapacidad, tal y como exige la Ley de Estadounidenses con Discapacidades.

ADAPTACIONES POR DISCAPACIDAD: La ciudad de Healdsburg realizará adaptaciones razonables para las personas con necesidades especiales debidas a discapacidades. Por favor, contacte a Raina Allan, secretaria municipal, en Healdsburg City Hall, 401 Grove Street, Healdsburg, California, 431-3317, por lo menos 72 horas antes de la reunión para garantizar que se realicen las adaptaciones necesarias.

CITY OF HEALDSBURG

PROCLAMATION

A PROCLAMATION OF THE CITY COUNCIL OF THE CITY

OF HEALDSBURG RECOGNIZING THE MONTH OF APRIL
2024 AS NATIONAL VOLUNTEER APPRECIATION MONTH

AND THANKING OUR VOLUNTEERS THROUGHOUT THE

COMMUNITY FOR THEIR SERVICE
WHEREAS, National Volunteer Week began in 1974 when President Richard Nixon signed an executive order establishing the week as an annual celebration, and every president since has done the same; and
WHEREAS, National Volunteer Week has now flourished to encompass an entire month, allowing time to recognize the hard work, dedication and passion of volunteers and national service members throughout our nation; and
WHEREAS, our City government could not function without volunteers who serve on our boards, commissions, task forces and committees; and
WHEREAS, to encourage an environment in which volunteers can flourish, the City Council of the City of Healdsburg created a formal volunteer program in 2019 that promotes community volunteer organizations and encourages intergenerational community volunteerism; and
WHEREAS, there are thousands of volunteers in our community who give their time and effort to help others through their church, community organizations, service clubs, schools, hospitals, charitable organizations and other worthy endeavors; and WHEREAS, these volunteers are motivated by the satisfaction of helping their fellow citizens and making their community a better place to live.

NOW, THEREFORE, BE IT PROCLAIMED, that the City Council of the City of Healdsburg does hereby express its sincere appreciation, gratitude, and respect to all of the volunteers in Healdsburg for their service to our community, and declares the month of April 2024 as Volunteer Appreciation Month.

DATED: April 15, 2024
SO ORDERED:

David Hagele, Mayor

3.A.a
Packet Pg. 11
Attachment: Volunteer Month Proclamation (4432 : Volunteer Month 2024 Proclamation) 2023 ANNUAL REPORT

HEALDSBURG TOURISM IMPROVEMENT DISTRICT

3.C.a
Packet Pg. 12
Attachment: 2023 HTID ANNUAL REPORT (4433 : Healdsburg Tourism Improvement District (HTID) Annual Update - 2024) A
boutStayHealdsburg
3 AssessmentBoundary
4 Financial Overview
5 MarketingHighlights
6-7
PublicRelationsHighlights
8 DistrictDevelopmentGrants
9 LookingAhead
10 Contact Information
11 TABLEOFCONTENTS

3.C.a
Packet Pg. 13
Attachment: 2023 HTID ANNUAL REPORT (4433 : Healdsburg Tourism Improvement District (HTID) Annual Update - 2024) Developed and managed by the Healdsburg Chamber of Commerce (the Chamber), the Healdsburg Tourism Improvement District (HTID), referred to as Stay Healdsburg, is an assessment district proposed to provide specific benefits to assessed properties, by funding marketing and sales promotion efforts and district development programs for assessed businesses.

Per the 2023-2032 Management District Plan, the Chamber of Commerce Board of Directors consists of 30% HTID lodging partners and Stay Healdsburg serves as the tourism marketing department of the Chamber. HTID business is discussed at the Board of Directors meetings, Marketing Committee meetings, and District Development Grant Committee meetings. 2023 BOARD OF DIRECTORS
Maggie Curry, Chair
Jackson Family Wines
Mike Brennan, Vice Chair
Mill District Healdsburg
Dan Mariviglia, Past Chair
Passalacqua, Mazzoni, Gladden,
Lopez & Maraviglia, LLP
Bill Smart, Treasurer
Martinelli Winery
Heidi Dittloff, Secretary
Longboard Vineyards
Katie Ambrosi, HTID Lodging Partner
Wilson Artisan Wines & Artisan Lodging
Heidi Dittloff, Longboard Vineyards
Committee Chair
Maggie Curry, Jackson Family Wines
Erika Dawkins, Bon Ton Studio & Bon Ton Baby
Dan Dougherty, Wine Country Buzz
Oceanna Ingram, Artisan Lodging
Doug Kaminski, Montage Healdsburg
Circe Sher, Piazza Hospitality
Ed Skapinok, Appellation Hotel
Circe Sher, Piazza Hospitality
Committee Chair
Carol Beattie, Healdsburg Forever
Alex Harris, The Harris Gallery
Evelyn Mitchell, Healdsburg City Council
Doug Kaminski, HTID Lodging Partner
Montage Healdsburg
Aaron Krug, HTID Lodging Partner
Krug Hotels
Circe Sher, HTID Lodging Partner
Piazza Hospitality
Beryl Adler
Black Oak Coffee Roasters
Nancy Brandt
Brandt Insurance
Erika Dawkins
Bon Ton Studio & Bon Ton Baby
Jim Heid
Craftwork Healdsburg

DISTRICT DEVELOPMENT GRANTS

COMMITTEE

MARKETING COMMITTEE
ABOUT

STAY HEALDSBURG
3 3.C.a
Packet Pg. 14
Attachment: 2023 HTID ANNUAL REPORT (4433 : Healdsburg Tourism Improvement District (HTID) Annual Update - 2024)

ASSESSED PROPERTIES & BOUNDARY
The HTID includes all lodging businesses (including all lodging businesses located on the premises of a winery), existing and in the future, available for public occupancy within the boundaries of the City of Healdsburg.

The boundary, as shown in the map below, currently includes thirty (35) lodging businesses per registration with the City of Healdsburg. 4 3.C.a
Packet Pg. 15
Attachment: 2023 HTID ANNUAL REPORT (4433 : Healdsburg Tourism Improvement District (HTID) Annual Update - 2024)

FINANCIAL OVERVIEW

REVENUE CATEGORIES BUDGET ACTUAL
City of Healdsburg TID Funds $860,000 $1,009,369.36
Chamber Admin Fees Received $125,000 $136,253.27
District Development Funds
Received
$187,500 $216,909.96
Miscellaneous Income $5,000 $0
TOTAL REVENUE: $1,177,500 $1,362,532.59
2023 BUDGET & ACTUALS

EXPENSE CATEGORIES BUDGET ACTUAL
Sales & Marketing $830,600 $594,167.31
Chamber Admin Fees $125,000 $136,253.27
District Development Funds
Spent
$287,500 $283,000
Contract Services $157,000 $17,769.90
Admin/Miscellaneous Expenses $5,200 $35,359.03
TOTAL EXPENSES: $1,405,300 $1,066,549.51

CARRYOVER AMOUNT
$393,290.67 carried over from 2022 and previous years. This includes the City of Healdsburg savings account, emergency funds account, and District Development savings account.
5 3.C.a
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Attachment: 2023 HTID ANNUAL REPORT (4433 : Healdsburg Tourism Improvement District (HTID) Annual Update - 2024) Digital Programmatic Banners/Video Advertisements: Focuses on brand awareness to keep Healdsburg top of mind, generating over 3 million impressions. Specific campaigns resulted in 715 confirmed travelers to Healdsburg , an average CTR of 0.21%. The estimated economic impact for the campaign contract is approximately $555K, with a ROAS of $18.65.

Text ads (Search Ads on Google): Google is utilized as a lower funnel tactic, achieving a strong click-through rate (CTR) of over 12%. GA4 provides comprehensive metrics on users, sessions, and engaged sessions.

Native Content Article/Stories: Runs a content-based campaign focusing on various pillars such as 'A Sense for Life,' 'Plan your Summer Getaway,' 'Harvest,' 'Food,' 'Shopping,' and 'Weddings.' Impressions served exceed 2.3 million, with over 12,000 clicks within the content.

Consumers spend an impressive 45 seconds on the content, surpassing the benchmark of 30 seconds.

TripAdvisor Visit California Co-Ops: A partnership with matching funds from visit California to spend on TripAdvisor advertising, resulting in an impressive economic impact of $284,721 with 97 hotel bookings.

Dedicated eBlasts: Through partnership with Sunset Magazine and Marin Magazine, we sponsored eBlasts with specific messaging to our key target markets. These campaigns boasted a very strong open rate at 69%, indicating high engagement and interest among the audience.

MARKETING

HIGHLIGHTS

DIGITAL MEDIA OUTLETS
In 2023, Stay Healdsburg worked with an outside digital marketing agency to manage all branding, website content, digital ad buys, and social media creation. Through these digital marketing efforts, the following results were garnered. 1155,,558833,,008833
Total Impressions
9944,,774466
Total Clicks
6 3.C.a
Packet Pg. 17
Attachment: 2023 HTID ANNUAL REPORT (4433 : Healdsburg Tourism Improvement District (HTID) Annual Update - 2024)

MARKETING

HIGHLIGHTS

SOCIAL MEDIA MARKETING

WEBSITE STATISTICS
In 2023, Stay Healdsburg mainly utilized Facebook and Instagram platforms to boost our branding and messaging. Both organic and paid campaigns were launched to increase followers, website visits, and overall brand recognition.

In 2023, the Chamber launched their new website which included a landing page on Healdsburg.com which directed visitors to either business and community resources (Chamber website), or visitor services (Stay Healdsburg website). This also included a new integration with Stay Healdsburg’s business listings and the Chamber’s CMS to include all hospitality Chamber members on both website. 8866,,224444
Total Website Users
9988,,331122
Total Sessions
11,,778888,,992244
Facebook Impressions
3377,,774444
Facebook Engagements
1,526
Facebook Followers Gained
11,,668888,,441122
Instagram Impressions
2288,,004433
Instagram Engagements
1,612
Instagram Followers Gained
33,,447777,,333366
Total Social Impressions
6655,,778877
Total Social Engagements
3,138
Total New Social Followers
7 3.C.a
Packet Pg. 18
Attachment: 2023 HTID ANNUAL REPORT (4433 : Healdsburg Tourism Improvement District (HTID) Annual Update - 2024)

PUBLIC RELATIONS

HIGHLIGHTS
PRESS

HOSTED MEDIA
In March 2023, Stay Healdsburg hired a new Public Relations agency that would represent our destination on both the west and east coasts. Throughout the year, we garnered the following results:

2.1B

MEDIA IMPRESSIONS
National, Regional + Local
Exposure in Key Markets
132

PLACEMENTS
Resulting from Earned Media
and Influencer Efforts
18 KEY HOSTINGS
Valuable In-Person
Experiences
Included in the 18 key media stays in 2023 are three social media influencers and two familiarization (FAM) trips. Our July FAM Trip consisted of four top-tier journalists which produced eight earned media placements to date. In December, we hosted a FAM Trip focused on groups and meetings media outlets, which included four journalists.
“Healdsburg is that rare tourist town that manages to feel like it isn't touristy at all ... Healdsburg is still a town where you can ride your bicycle to the ice cream shop or stand in line with the locals to snag a fresh sticky bun at the bakery.” 8 3.C.a
Packet Pg. 19
Attachment: 2023 HTID ANNUAL REPORT (4433 : Healdsburg Tourism Improvement District (HTID) Annual Update - 2024)

DISTRICT DEVELOPMENT GRANTS
District Development (DD) projects and events are designed to improve the visitor experience AND increase overnight visitation at assessed lodging businesses. Working collaboratively with the City, the Chamber has developed specific funding criteria. The District Development Grants Committee meets to discuss applicants, processes, and procedures regarding the grants. For each grant cycle, the committee makes a recommendation to the Board of Directors who have the final vote.

In 2023, HTID worked with Civitas Advisors (legal counsel) to update the District Development Grant application, policies, and procedures to better align with the statute outlined in the Management District Plan.

GRANTS AWARDED:

Healdsburg Jazz Festival Winter Concert Series
25th Annual Healdsburg Jazz Fest
Art After Dark Summer Events
The 222 Winter Performance Series (Jan - March)
Healdsburg Museum’s “We Are Not Strangers
Here” Installation
Russian Riverkeeper’s Watershed Cleanup
AV Film Fest 2023
Corazon Healdsburg’s Dia de Muertos
Farm to Pantry’s Agri-Tourism Program
The Bloodroot Ramble
The 222 Summer Performance Series
Tuesday Concerts in the Plaza
Giro Vigneti
Fourth of July Fireworks
Healdsburg Wine & Food Experience
Healdsburg Crush
Fourth of July Duck Dash & Kids Parade
T.O.W.N. Dinner Series
Annual Turkey Trott
Merry Healdsburg
WineRoad Events
Investment in the AVFilm Center
$$228833,,000000
Awarded
23 Grants Funded
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Attachment: 2023 HTID ANNUAL REPORT (4433 : Healdsburg Tourism Improvement District (HTID) Annual Update - 2024)

EXPENSE CATEGORIES BUDGET
Sales & Marketing $723,360
Chamber Admin Fees $125,000
District Development Funds Spent $187,500
Contract Services $27,500
Staff/Admin/Misc Expenses $158,025
Contingency Expenses $59,375
TOTAL EXPENSES: $1,405,300

REVENUE CATEGORIES BUDGET
City of Healdsburg TID Funds $875,000
Chamber Admin Fees
Received
$125,000
District Development Funds
Received
$187,500
TOTAL REVENUE: $1,187,500

LOOKING AHEAD
In 2024, Stay Healdsburg will continue it’s close
collaboration with the Healdsburg Chamber to
market the destination to overnight travelers.

Aligned with previous years, Stay Healdsburg will
target the group and meetings industry while
continuing strong marketing to the drive and direct
flight markets.

New this year, Stay Healdsburg will hire a full-time
staff person to manage the marketing and public
relations initiatives while also representing the
destination in target markets. This will allow the
destination to have a stronger representation
throughout the state and with regional partners such
as Visit California and Cal Travel.
2024 BUDGET PROJECTIONS:
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Attachment: 2023 HTID ANNUAL REPORT (4433 : Healdsburg Tourism Improvement District (HTID) Annual Update - 2024)

JESSICA BOHON

DIRECTOR OF TOURISM & MARKETING
[email protected]

TALLIA HART
CEO
[email protected]
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Attachment: 2023 HTID ANNUAL REPORT (4433 : Healdsburg Tourism Improvement District (HTID) Annual Update - 2024)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: April 15, 2024
SUBJECT: Procurement of Vehicles and Equipment
PREPARED BY: Tyler Kettmann, Central Services Manager
STRATEGIC INITIATIVE(S):

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

Adopt a Resolution approving the purchase of a 2023 Ford Mustang Mach-E from Hansel Ford for $50,996.30; authorizing the City Manager to execute the Purchase Order Contract Hansel Ford; and amending the adopted budget.

COMMUNITY ENGAGEMENT/OUTREACH:

Not applicable.

BACKGROUND:

The adopted Fiscal Year 2023-24 budget included $85,944 to replace a Police Interceptor. Due to reduced staffing and impacts of the COVID pandemic, the Police Interceptors have accrued less mileage in recent years and are still in good condition.

Staff have identified vehicle number 233, a 2004 Chevrolet Venture van that is being used by the Police Social Services Team Member for replacement in the current fiscal year instead. The vehicle has been replaced with a 2024 Kia Niro EV Wind for a total cost of $41,861. A core responsibility of the Police Social Services Team Member is to provide outreach and pre-arrest diversion that connects at-risk individuals to behavioral health services.

Staff have also recognized the need for an additional admin vehicle within the City fleet to be utilized by the Police Department. The 2023 Ford Mustang Mach-E is a readily available vehicle for purchase that can serve this need. The vehicle also meets the requirements for a pursuit vehicle and is proposed to be upfitted with all the necessary equipment to provide an opportunity to explore alternatives for future electric replacements of Police Interceptors.

Per the formal bid process outlined in Healdsburg Municipal Code Section 3.24.050, a notice inviting bids for the procurement of a 2023 Ford Mustang Mach-E was released on March 5th,

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2024, with the public bid opening occurring on March 28, 2024. The City received one (1) bid from Hansel Ford for $50,997.

The bid from Hansel Ford satisfies the bidding requirements as described in the Invitation for Bids (IFB). There are no irregularities with the bid.

DISCUSSION/ANALYSIS:

The City receives Settlement Funds from various lawsuits with Opioid distributors and manufacturers. These funds must be used towards the abatement of the opioid epidemic in California. The Police Social Services Team Member provides outreach services that are outlined as a core strategy in abating the opioid epidemic. Staff propose funding a portion of the Kia Niro EV Wind purchase with Opioid Settlement Funds.

The City Vehicle Policy includes a Light Duty ZEV & Hybrid-Electric First Purchasing Mandate for vehicle replacements of this class. There is an exemption for vehicles necessary for the protection of public safety and welfare, though the proposed Mustang Mach-E does meet the Light Duty ZEV requirement.

Upfitting requirements to outfit the proposed additional vehicle with appropriate equipment, lights, and sirens is estimated at an additional $20,000.

Staff recommends, and requests Council approve the following actions:
• Approve the purchase of a 2023 Ford Mustang Mach-E from Hansel Ford for $50,997. • Authorize the City Manager to execute the purchase order contract with Hansel Ford • Increase budget appropriations in the Vehicle Replacement Fund to cover the costs of the vehicle purchase and related upfitting costs.
• Approve funding a portion of the Police Social Services Team Member vehicle with Opioid Settlement Funds.

ENVIRONMENTAL STEWARDSHIP:

Not applicable.

ALTERNATIVES:

As an alternative, the City Council could direct staff to delay or forego the purchase of the additional vehicle or ask staff to reject the proposal and rebid. This alternative is not recommended, as the purchase price is not expected to decrease.

FISCAL IMPACT:

The total budget for replacement of Police vehicles in the adopted Fiscal Year 2023-24 budget is $85,944. The total purchase price of the 2024 Kia Niro EV Wind is $41,861. Staff are proposing to amend the budget to use $26,913 in Opioid Settlement Funds to support the purchase of the Police Social Services Team Member vehicle. The proposed amendment will increase the total available budget for Police vehicles in the Vehicle Replacement Fund to $112,857 resulting in available appropriations to support the proposed action of approving the purchase of a 2023 Ford

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Mustang Mach-E from Hansel Ford for $50,997. The upfitting costs for the Ford Mustang MachE are estimated at $20,000, bringing the total vehicle costs to $70,997.

ENVIRONMENTAL ANALYSIS:

The purchase of vehicles is an administrative activity, which is not considered 'project' as defined by the California Environmental Quality Act (“CEQA”) (CEQA Guidelines§15378).

Consequently, no CEQA action is required.

ATTACHMENT(S):

Resolution
Exhibit A

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CITY OF HEALDSBURG
RESOLUTION NO. -2024

ADOPT A RESOLUTION APPROVING THE PURCHASE OF A
2023 FORD MUSTANG MACH-E FROM HANSEL FORD FOR
$50,996.30; AUTHORIZING THE CITY MANAGER TO

EXECUTE THE PURCHASE ORDER CONTRACT WITH
HANSEL FORD; AND AMENDING THE FISCAL YEAR 2023-
24 ADOPTED BUDGET
WHEREAS, the adopted budget included appropriations for the replacement of a Police Interceptor; and
WHEREAS, the Police Interceptors are still in good condition and staff have identified the replacement of vehicle number 233 a 2004 Chevrolet Venture as a higher priority; and WHEREAS, the vehicle has been replaced by a 2024 Kia Niro EV Wind for a total cost of $41,861 to be used by the Police Social Services Team Member; and WHEREAS, the Police Social Services Team Member provides outreach services that are outlined as a core strategy in abating the opioid epidemic; and WHEREAS, there are sufficient Opioid Settlement Funds that are available to support funding a portion of the 2024 Kia Niro EV Wind; and
WHEREAS, staff have recognized the need for an additional admin vehicle within the City fleet to be utilized by the Police Department, and the 2023 Ford Mustang Mach-E is a readily available vehicle for purchase that can serve this need; and WHEREAS, the 2023 Ford Mustang Mach-E also meets the requirements for a pursuit vehicle and provides the opportunity to explore alternatives for future electric replacement of Police Interceptors; and
WHEREAS, per the formal bid process outlined in Healdsburg Municipal Code Section

3.24.050, a notice inviting bids for the procurement of a 2023 Ford Mustang Mach-E was released on March 5th, 2024, with the public bid opening occurring on March 28, 2024; and WHEREAS, the City received one (1) bid from Hansel Ford for $50,996.30; and WHEREAS, the bid from Hansel Ford satisfies the bidding requirements as described in the Invitation for Bids (IFB); and
WHEREAS, upfitting requirements to outfit this vehicle with appropriate equipment, lights, and sirens is estimated at an additional $20,000; and

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Attachment: Resolution (4413 : Procurement of Vehicles) Resolution No. xx-2024

WHEREAS, staff recommends, and requests Council approve the purchase of a 2023 Ford Mustang Mach-E from Hansel Ford for $50,996.30, and authorize the City Manager to execute the Purchase Order Contract with Hansel Ford; and
WHEREAS, the proposed action is an administrative activity of the City that will not result in direct or indirect physical changes to the environment.

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

1. Adopts a Resolution approving the purchase of a 2023 Ford Mustang Mach-E from Hansel Ford for $50,996.30.

2. Authorizes the City Manager to execute the purchase order contract with Hansel Ford.

3. Approves funding a portion of the Police Social Services Team Member vehicle with Opioid Settlement funds.

4. Approves amending the adopted Fiscal Year 2023-24 budget as depicted in the attached Exhibit A.

5. Finds the purchase of vehicles is an administrative activity, which is not considered 'project' as defined by the California Environmental Quality Act (“CEQA”) 15378(b)(5).

PASSED, APPROVED AND ADOPTED this 15thday of April 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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Attachment: Resolution (4413 : Procurement of Vehicles) Resolution No.

Exhibit A
Account Number Increase Amount Decrease Amount Description 622-5301-43225-00000 $ 26,913 Increase Vehicle Replacement Fund Budget for Police Dept Purchase of Kia Niro EV Wind 213-8080-42301-00000 $ 26,913 Increase Opioid Settlement Fund Transfer out to Vehicle Replacement Fund 622-1000-39001-00000 $ 26,913 Increase Vehicle Replacement Fund Transfer in from Opiod Settlement Fund FY 23-24 Budget Amendment

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Attachment: Exhibit A (4413 : Procurement of Vehicles)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: April 15, 2024
SUBJECT: Procurement of Vehicles and Equipment
PREPARED BY: Tyler Kettmann, Central Services Manager
STRATEGIC INITIATIVE(S):

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

Adopt a resolution approving a contract with Sourcewell (formerly National Joint Powers Association) for a cooperative purchase of a 2023 Ford F-150 Lightning, authorizing the City Manager to execute the contract in an amount not to exceed $69,145 and increasing budget appropriations in the Vehicle Service Fund by $16,379.

COMMUNITY ENGAGEMENT/OUTREACH:

Not applicable.

BACKGROUND:

The adopted fiscal year 2020-21 and 2021-22 Vehicle Service Fund budget included the scheduled replacement of City vehicles that were at the end of their useful life according to the Department’s vehicle life cycle policy. The budget for the 2021-22 fiscal year included the replacement of City vehicle number 11, which is at the end of its useful life.

On November 15, 2021, by resolution number 133-2021, Council approved a contract with Sourcewell for a cooperative purchase of a 2022 Ford F250 XL 4WD to replace City vehicle number 11 and authorized the City Manager to execute the Purchase Order contract with SourceWell to procure the vehicle.

On December 19, 2022, by resolution number 183-2022, Council approved an amendment to the Purchase Order contract with SourceWell to change the purchase to a 2023 Model Year vehicle and authorized the City Manager to execute the amendment on behalf of the City. Resolution 183-2022 also updated the approved budget for this vehicle purchase to $60,266.

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DISCUSSION/ANALYSIS:

In the subsequent years since the original order, Sourcewell has been unable to deliver the vehicle. The manufacturer has twice balanced out of the available model year vehicles due to supply chain issues causing plant downtime. Due to the inability of the vendor to supply the originally ordered vehicle, staff have researched other options to replace City vehicle 11. Staff have identified the 2023 Ford F-150 Lightning as an appropriate replacement for City vehicle 11 as currently utilized by Utilities Department Staff. Replacing City vehicle 11 with a battery powered vehicle allows the City to better comply with the City Vehicle Policy on Fleet Electrification.

Section 3.1 of the City Vehicle Policy states: The “ZEV/Hybrid First” policy requires the City to procure battery electric, hydrogen fuel cell, or plug-in hybrid vehicles in-lieu of fossil fuel consuming internal combustion vehicles and other specified vehicles when available in a comparable vehicle class.

An in-stock 2023 Ford F-150 Lightning was recently made available under the Sourcewell Contract 091521-060920-NAF. Ordering an in-stock vehicle eliminates the hurdle of meeting the manufacturer’s production schedule. Following the Healdsburg Municipal Code, staff requested and received a quote from Sourcewell for the in-stock 2023 Ford F-150 Lightning for $69,145.

Sourcewell is a national municipal contracting agency that offers purchasing solutions for products and services that are competitively bid nationally and made available for use by member agencies. The City of Healdsburg is a member of Sourcewell. Piggyback provisions are allowed for in Section 3.24.080.A.8 of the Healdsburg Municipal Code.

Upfitting requirements to outfit this vehicle with appropriate radio equipment, toolboxes, and hazard lights is estimated at an additional $7,500.

Staff recommends, and requests Council approve the following actions:
• Approve the purchase of a 2023 Ford F-150 Lightning from Sourcewell for $69,145. • Authorize the City Manager to execute the purchase order contract with Sourcewell. • Increase budget appropriations in the Vehicle Replacement Fund to cover the costs of the vehicle purchase and related upfitting costs.

ENVIRONMENTAL STEWARDSHIP:

Not applicable.

ALTERNATIVES:

As an alternative, the City Council could direct staff to delay the purchase or ask staff to reject the quote and rebid. This alternative is not recommended, as the replacement price is not expected to decrease and would not result in net savings to the City.

FISCAL IMPACT:

The proposed action is to approve the purchase of a 2023 Ford F-150 Lightning from Sourcewell for $69,145 and void the existing purchase order for the 2022 Ford F250 XL 4WD. The upfitting costs are estimated at $7,500 bringing the total costs to $76,645. The current available approved

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budget for this vehicle purchase in the Vehicle Replacement Fund is $60,265. The total cost of the replacement vehicle exceeds the available budget by $16,380.

There is adequate balance in the Vehicle Replacement Fund to support the increased costs due to previous contributions made towards the future replacements of vehicles. By using the available fund balance in the Vehicle Replacement Fund to offset the costs of current vehicle purchases, future acquisitions may need to be delayed or supported by additional contributions at the time of acquisition. Staff propose amending the FY 2023-24 adopted budget to increase expenditure appropriations in the Vehicle Replacement Fund by $16,380. The budget amendment is attached to the resolution as Exhibit A.

ENVIRONMENTAL ANALYSIS:

The purchase of vehicles is an administrative activity, which is not considered 'project' as defined by the California Environmental Quality Act (“CEQA”) (CEQA Guidelines§15378).

Consequently, no CEQA action is required.

ATTACHMENT(S):

Resolution
Exhibit A: Budget Amendment

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CITY OF HEALDSBURG
RESOLUTION NO. -2024

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG APPROVING A CONTRACT WITH

SOURCEWELL (FORMERLY NATIONAL JOINT POWERS

ASSOCIATION) FOR A COOPERATIVE PURCHASE OF A
2023 FORD F-150 LIGHTNING, AUTHORIZING THE CITY

MANAGER TO EXECUTE THE CONTRACT IN AN AMOUNT
NOT TO EXCEED $69,144.85 AND AMENDING THE
ADOPTED FISCAL YEAR 2023-24 BUDGET
WHEREAS, the City of Healdsburg operates and maintains water and wastewater utilities which require the use of pickup trucks for appropriate staff; and WHEREAS, City vehicle number 11 utilized by the Utilities department has exceeded its useful life and is due for replacement; and
WHEREAS, Council authorized replacing vehicle number 11 with a 2022 Ford F250 XL 4WD on Resolution 183-2022; and
WHEREAS, the manufacturer was unable to produce and deliver the vehicle ordered; and WHEREAS, following the Healdsburg Municipal Code, staff requested a quote from Sourcewell for the purchase of a 2023 Ford F-150 Lightning as a replacement vehicle; and WHEREAS, Sourcewell is a national municipal contracting agency that offers purchasing solutions for products and services that are competitively bid nationally and made available for use by member agencies; and
WHEREAS, Piggyback provisions are allowed for in Section 3.24.080.A.8 of the Healdsburg Municipal Code; and
WHEREAS, staff received a quote from Sourcewell in the amount of $69,144.85; and WHEREAS, additional upfitting for the replacement vehicle is estimated at $7,500; and WHEREAS, staff is requesting additional appropriation in the amount of $16,379.09 in the Vehicle Service Fund budget, and
WHEREAS, the proposed action is an administrative activity of the City that will not result in direct or indirect physical changes to the environment.

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Attachment: Resolution (4418 : Procurement of Vehicles and Equipment) Resolution No. xx-2024

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

1. Approves a contract with Sourcewell for Cooperative Purchasing between the City of Healdsburg and National Fleet for the purchase of a 2023 Ford F-150 Lightning.

2. Authorizes the City Manager to execute the Purchase Order contract in an amount not to exceed $69,144.85.

3. Approves amending the fiscal year 2023-24 budget as depicted on the attached Exhibit A.

4. Finds the purchase of vehicles is an administrative activity, which is not considered 'project' as defined by the California Environmental Quality Act (“CEQA”) (CEQA Guidelines§15378).

PASSED, APPROVED AND ADOPTED this 15th day of April 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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Attachment: Resolution (4418 : Procurement of Vehicles and Equipment) Resolution No.

Exhibit A
Account Number Increase Amount Decrease Amount Description 622-6367-43225-00000 $ 8,190 Increase Vehicle Replacement Fund Budget for Utilities Department Purchase of F150 Lightening 622-6369-43225-00000 $ 8,190 Increase Vehicle Replacement Fund Budget for Utilities Department Purchase of F150 Lightening FY 23-24 Budget Amendment

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Attachment: Exhibit A: Budget Amendment (4418 : Procurement of Vehicles and Equipment)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: April 15, 2024
SUBJECT: Declaring Vehicles and Equipment Surplus
PREPARED BY: Tyler Kettmann, Central Services Manager
STRATEGIC INITIATIVE(S):

Effective & Efficient Government
Maintain and Improve Infrastructure and Facilities
RECOMMENDED ACTION(S):

Adopt a Resolution declaring various vehicles and equipment as surplus.

COMMUNITY ENGAGEMENT/OUTREACH:

Not Applicable.

BACKGROUND:

Staff have identified vehicles and equipment that have either been replaced, been made obsolete, or have outlived their useful life.

Chapter 3.24 of the Healdsburg Municipal Code ("Code") governing the surplus of property requires the City Council to declare any vehicle and equipment valued in excess of $500 as surplus prior to disposal of said equipment.

DISCUSSION/ANALYSIS:

City Vehicle 34 is a 2004 Chevy Silverado Pickup Truck that was utilized by the City Public Works Inspectors. The vehicle is well beyond its expected useful life and was replaced with City Vehicle 103, which is a 2023 Ford Lightning pickup truck. Both the condition of Vehicle 34 and recent increased need for repairs make it an appropriate candidate to be declared surplus. Vehicle 34 was removed from service when it was replaced.

City Vehicle 233 is a 2004 Chevrolet Venture Mini-Van that was utilized by the Police Department. The vehicle is well beyond its expected useful life and was replaced in 2023 with City Vehicle 255, which is a 2024 Kia Niro EV Wind. The age and current condition of Vehicle 233 make it an appropriate candidate to be declared surplus. Vehicle 233 was removed from

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service when it was replaced.

City Vehicle 400 is a 2007 Ford E-150 Van that was utilized by the Electric Department for Electric Meter reading and maintenance. Vehicle 400 was replaced in 2023 by City Vehicle 401, which is a Ford E-Transit Van. Both the condition of Vehicle 400 and recent increased need for repairs make it an appropriate candidate to be declared surplus. Vehicle 400 was removed from service when it was replaced.

City Vehicle 480 is a 2000 FL80 Altec Digger Derrick that was utilized by the Electric Department for Electric Utility Operations and Maintenance. Vehicle 480 was replaced in 2023 by City Vehicle 481, which is a 2022 Altec DH50H Hydraulic. The age and current condition of Vehicle 481 make it an appropriate candidate to be declared surplus. Vehicle 480 was removed from service when it was replaced.

Staff have determined that miscellaneous Public Works Department equipment is no longer of use to the Department’s current operations and recommend declaring said items surplus.

Staff is requesting that the Council declare the vehicles and equipment listed below as surplus.

These assets have exceeded their useful life and have been replaced or removed from service.

VEHICLES:

DIVISION VEH YR

VEHICLE

NUM VIN LICENSE MAKE MODEL
Estimated
Value
PW 2004 34 1GCEK19T84E262697 1167506 CHEVROLET SILVERADO 1500 $2,500 POLICE 2004 233 1GNDU03E14D253802 1360371 CHEVROLET VENTURE $1,200 ELECTRIC 2007 400 1FTNE14W67DB42562 1198317 FORD E-150 VAN $2,500 ELECTRIC 2000 480 1FV6JFBB0YHF31633 1064293 FREIGHTLINER FL80 ALTEC
DIGGER DERRICK $15,000
PUBLIC WORKS EQUIPMENT:

Description Quantity Estimated Value (EA)
Estimated
Value(extended)
3/8 Pulling Cable 50' 3 $ 146.67 $ 440.00
8" Flange x MJ Gate Valve 1 $ 850.00 $ 850.00
Drive Pin Hammer 2 $ 500.00 $ 500.00
Pursuant to Healdsburg Municipal Code Section 3.24.130, the Council declaring the surplus of equipment and vehicles allows for the City Manager to dispose of vehicles and equipment in a manner that shall best serve the interests of the City.

Staff expect to post the City vehicles and Public Works equipment on a government auction website for sale should they be declared surplus.

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ENVIRONMENTAL STEWARDSHIP:

Not Applicable.

ALTERNATIVES:

The Council may choose to take no action and retain the equipment and vehicles or designate an alternate use. In this case, staff requests additional direction.

FISCAL IMPACT:

The proposed action declares the vehicles and equipment surplus and authorizes the City Manager to initiate a sale, should it benefit the City. Proceeds from the vehicle sales will be considered revenue of the Vehicle Replacement Fund and the Public Works equipment sales will be considered revenue of the Water and Wastewater Operations Funds.

ENVIRONMENTAL ANALYSIS:

The approval of this resolution declaring vehicles and equipment as surplus and authorizing their disposal and sale is an administrative activity of the City that will not result in a direct or indirect physical change in the environment and thus is not a "project" subject to environmental analysis pursuant to the requirements of the California Environmental Quality Act (?CEQA?), as provided in State CEQA Guidelines Section 15378(b)(5), and therefore no environmental review or analysis is required.

ATTACHMENT(S):

Resolution
Exhibit A

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CITY OF HEALDSBURG
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG DECLARING VARIOUS VEHICLES AND

EQUIPMENT AS SURPLUS
WHEREAS, staff is requesting that the City Council declare the vehicles and equipment listed on the attached Exhibit A, as surplus; and
WHEREAS, the vehicles and equipment have exceeded their useful life and are obsolete, therefore having no further use to the City; and
WHEREAS, Healdsburg Municipal Code Section 3.24.10 grants the City Manager the authority to dispose of vehicles and equipment that have been declared surplus by the Council in a manner that shall best serve the interests of the City; and WHEREAS, proceeds from vehicle sales will be considered revenue of the Vehicle Replacement Fund and the Public Works equipment sales will be considered revenue of the Water and Wastewater Operations Funds; and
WHEREAS, the proposed action is an administrative activity of the City that will not result in direct or indirect physical changes to the environment.

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

1. Declares the vehicles and equipment listed on the attached Exhibit A, as surplus, and the City Manager shall have the authority to dispose of vehicles and equipment in whatever manner shall best serve the interests of the City.

2. Declaring vehicles and equipment as surplus and authorizing their disposal and sale is an administrative activity of the City that will not result in a direct or indirect physical change in the environment and thus is not a "project" subject to environmental analysis pursuant to the requirements of the California Environmental Quality Act (CEQA), as provided in State CEQA Guidelines Section 15378(b)(5).

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Attachment: Resolution (4404 : Declaring Vehicles and Equipment as Surplus) Resolution No. -2024

PASSED, APPROVED AND ADOPTED this 15th day of April 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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Attachment: Resolution (4404 : Declaring Vehicles and Equipment as Surplus)

EXHIBIT A
VEHICLES:

DIVISION VEH YR

VEHICLE

NUM VIN LICENSE MAKE MODEL
Estimated
Value
PW 2004 34 1GCEK19T84E262697 1167506 CHEVROLET SILVERADO 1500 $2,500 POLICE 2004 233 1GNDU03E14D253802 1360371 CHEVROLET VENTURE $1,200 ELECTRIC 2007 400 1FTNE14W67DB42562 1198317 FORD E-150 VAN $2,500 ELECTRIC 2000 480 1FV6JFBB0YHF31633 1064293 FREIGHTLINER FL80 ALTEC
DIGGER DERRICK $15,000
PUBLIC WORKS EQUIPMENT:

Description Quantity Estimated Value (EA)
Estimated
Value(extended)
3/8 Pulling Cable 50' 3 $ 146.67 $ 440.00
8" Flange x MJ Gate Valve 1 $ 850.00 $ 850.00
Drive Pin Hammer 2 $ 500.00 $ 500.00

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Attachment: Exhibit A (4404 : Declaring Vehicles and Equipment as Surplus)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: April 15, 2024
SUBJECT: Amendment to Service Agreement with Sonic for City Dark Fiber Implementation
PREPARED BY: Tyler Kettmann, Central Services Manager
STRATEGIC INITIATIVE(S):

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

Adopt a Resolution approving and authorizing the City Manager to execute an amendment to the service agreement, and other documents necessary, with Sonic to upgrade city internet and intranet connections.

COMMUNITY ENGAGEMENT/OUTREACH:

Not Applicable.

BACKGROUND:

On August 15, 2022, City Council approved a five (5) year service agreement with Sonic.net, LLC (Sonic) for internet and managed Dark Fiber construction, installation, and support services (Original Agreement). On September 21st, 2022, the City of Healdsburg (City) and Sonic executed the said agreement. The existing agreement scope includes services that provide more robust, secure, and cost-effective fiber connectivity to the internet, along with dedicated dark fiber connections between City facilities.

DISCUSSION/ANALYSIS:

The City and Sonic have negotiated a proposed conduit lease which, if approved, will reduce Sonic’s construction costs to meet the terms of the Original Agreement. In consideration of the proposed conduit lease, the City and Sonic wish to amend the payment schedule in ‘Exhibit B’ of the Original Agreement to reduce the one-time service cost of $29,290 to $0, thereby reducing the Original Agreement not-to-exceed amount by $29,290 to $510,000.

The City and Sonic also wish to amend the Term of the Original Agreement to provide that the initial term shall expire five (5) years from the effective date of the proposed Amendment attached.

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Staff recommend City Council approve the proposed Amendment with Sonic.net, LLC.

ENVIRONMENTAL STEWARDSHIP:

Not applicable.

ALTERNATIVES:

The City Council could choose not to approve and authorize the City Manager to execute the proposed Amendment with Sonic; If the Council chooses not to approve the proposed Amendment, additional direction to staff is requested.

FISCAL IMPACT:

Staff is recommending the signing of the Agreement Amendment, reducing the not-to-exceed amount for Sonic internet and dark fiber implementation, and service to $510,000 over 60 months. Sufficient funds are in the 2022-24 Budget for internet and intranet communications, and future costs will be incorporated in subsequent budget years. No additional impact or increase to the budget is expected.

ENVIRONMENTAL ANALYSIS:

Pursuant to Section 15378(b)(5) of the State CEQA Guidelines, the proposed action is an administrative activity of the City that will not result in direct or indirect physical changes to the environment; and is, therefore, not a project for purposes of CEQA.

ATTACHMENT(S):

Resolution
Amendment DRAFT Sonic Service Agreement 2.22.24
Sonic-City of Healdsburg_Service Agreement_Internet Managed Dark Fiber

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CITY OF HEALDSBURG
RESOLUTION NO. _____-2024

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG APPROVING AN AMENDMENT TO THE

SERVICE AGREEMENT BETWEEN THE CITY OF
HEALDSBURG AND SONIC.NET, LLC, AND AUTHORIZING

THE CITY MANAGER TO EXECUTE THE AMENDMENT ON

BEHALF OF THE CITY
WHEREAS, on August 15, 2022, City Council approved a five (5) year service agreement with Sonic.net, LLC (Sonic) for internet and managed Dark Fiber construction, installation, and support services (Original Agreement); and
WHEREAS, On September 21st, 2022, the City of Healdsburg (City) and Sonic executed the Original Agreement; and
WHEREAS, City and Sonic wish to amend the payment schedule in ‘Exhibit B’ of the Original Agreement to reduce the one-time service cost of $29,290 to $0; and WHEREAS, the amended payment schedule in ‘Exhibit B’ will reduce the Original Agreement not to exceed amount by $29,290 to $510,000; and WHEREAS, City and Sonic wish to amend the Term of the Original Agreement to provide that the initial term shall expire five (5) years from the effective date of the proposed Amendment; and
WHEREAS, Pursuant to California Environmental Quality Act and Title 14, the California Code of Regulations (“CEQA Guidelines”), Section 15378(b) (5), the recommended action is an administrative activity of the City and will not result in direct or indirect physical changes in the environment and does not qualify as a “Project”. Therefore, no further CEQA or environmental review is required.

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

1. Approves an Amendment to the Original Agreement with Sonic.net, LLC executed on September 21st, 2022.

2. Authorizes the City Manager to execute the Amendment to the Original Agreement on behalf of the City.

3. Find that pursuant to California Environmental Quality Act and Title 14, the California Code of Regulations (“CEQA Guidelines”), Section 15378(b) (5), the recommended action is an administrative activity of the City and will not result in direct or indirect physical

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Attachment: Resolution (4372 : Authorize Amendment to Sonic Service Agreement) Resolution No. -2024

changes in the environment and does not qualify as a “Project”. Therefore, no further CEQA or environmental review is required.

PASSED, APPROVED, AND ADOPTED this 18th day of March 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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Attachment: Resolution (4372 : Authorize Amendment to Sonic Service Agreement)

AMENDMENT TO SERVICE AGREEMENT
THIS AMENDMENT TO SERVICE AGREEMENT (“Amendment”) is made by and between Sonic.net, LLC hereinafter, (“Sonic”) and the CITY OF HEALDSBURG (“Customer”), and collectively referred to as (“Parties”) and shall be effective as of _________________________ for the purpose of amending that certain Service Agreement (“Original Agreement”), between the Parties signed September 21, 2022, for bi-directional dark fiber and Internet access services (“The Project”).

WHEREAS, Customer and Sonic wish to amend the payment schedule in ‘Exhibit B’ of the Original Agreement to reduce the one time service cost of $29,290 to $0; and WHEREAS, the amended payment schedule in ‘Exhibit B’ will reduce the Original Agreement not to exceed amount by $29,290 to $510,000; and
WHEREAS, Customer and Sonic wish to amend the Term of the Original Agreement to provide that the initial term shall expire five (5) years from the effective date of this Amendment; and WHEREAS, the legislative body of the City on March 18, 2024, by Resolution No. _______ authorized execution of this Amendment on behalf of the City in accordance with the City Municipal Code and/or other applicable law.

NOW THEREFORE, the Parties hereby agree to amend the Original Agreement as follows:

1. PAYMENT TERMS AND NOT TO EXCEED AMOUNT- the payment schedule in ‘Exhibit B’ of the Original Agreement is hereby amended to reduce the not to exceed amount by $29,290 to $510,000.

2. TERM- Section 9.0 of the Original Agreement is amended to provide that the term shall expire five (5) years from the effective date of this Amendment, on ______________.

3. With respect to all other terms and conditions, the Original Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year first above written:

City of Healdsburg, a Municipal Corporation _________________________ (Sonic) _________________________________ By: _____________________________ Jeffrey Kay, City Manager Its:

Attest:
__________________________________
Raina Allan, City Clerk

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Attachment: Amendment DRAFT Sonic Service Agreement 2.22.24 (4372 : Authorize Amendment to Sonic Service Agreement) Contractor/Consultant Name: __________________________________________________________ Description of Services: _______________________________________________________________ Department: ________________________ Project Manager __________________Phone: ____________ Initial Contract Amount: _______________ (if over $50,000 must also complete Section 1 below) Initial Contract ____ Begin Date __________________ End date_________________ If contract has multiple years, then encumbrance should be applied in the following manner:

Year 1_________ Year 2 __________ Year 3__________ Year 4___________ Year 5___________ CPI increase per year: Yes ____ No ____
List all Amended amounts: _____Amendment #1- Amount $ _____________ End Date____________ _____Amendment #2- Amount $ _____________ End Date____________ _____Amendment #3- Amount $ _____________ End Date____________ _____Amendment #4- Amount $ _____________ End Date____________ _____Other Amount $______________ End Date_____________ Total Contract Amount: _______________________
Funding Source: _________________________________________ Budgeted: Yes _______ No _______ (Include Acct# and Project #) (If no, explain on attached sheet) Is applicant reimbursing the City for cost? Yes_____ No_____ If yes, attach Reimbursement Agreement.

Andrew Sturmfels, Administrative Services Director/Risk Manager: ____________________________ Check all that apply: Certificate(s) of Insurance attached: GL____ Auto ___ Excess ____ W/C* ____ Prof (E&O) ____ *Workers’ Comp Declaration _____ Other __________________________ Business License No.: __________________ Expiration Date: _______________ ____W-9 (if new vendor) _________________________________________
Department Head Signature
Section 1 - Only applicable for agreements in excess of $50,000 City Council approval date____________________________ Resolution No. ___________ Section 2 –
DocuSign will deliver a fully executed copy of the agreement to the Consultant, City Clerk, Central Services, Project Manager, and Finance Department.

Central Services will place PDF agreement in Tommy Library, index agreement information, place insurance in electronic folder, and enter insurance information into Fastrack.

AGREEMENT CHECK LIST
DocuSign Envelope ID: D53F1F43-5AE6-4E38-BBCF-BCFF599C7B9E $539,290
Sonic.net, LLC
X
City Manager's Office
X
X
431-3311
X
124-2022
60 months from first billing
X
Internet + Managed Dark Fiber Agreement
X
X
August 15, 2022
Adam Mckenna
$539,290
multiple, see attached
17-4887 06/30/2023
date of execution

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Attachment: Sonic-City of Healdsburg_Service Agreement_Internet Managed Dark Fiber (4372 : Authorize Amendment to Sonic Service

Service Agreement
This Service Agreement (the “Agreement”) is made and entered into as of the ______ day of September 2022 (the “Effective Date”), by and between Sonic.net, LLC (“Sonic”) and City of Healdsburg (“Customer”), (Sonic and Customer are collectively referred to as the “Parties,” and each individually as a “Party.”) This Agreement consists of the terms and conditions below and in the Sonic Acceptable Use Policy, which is attached hereto as Exhibit C and incorporated herein by this reference.

1.0 Services. Pursuant to the terms provided in this Agreement, Sonic will provide bi-directional dark fiber and Internet access services at the sites listed on Exhibit B (“Service Sites”). The required infrastructure either already exists or will be constructed by Sonic. Sonic has or will obtain all necessary permits and approvals from the City for any required construction.

1.1 Commencement of Service. Sonic will make commercially reasonable efforts to construct all necessary segments (“Fiber Segments”) of a dark fiber network (“Sonic Network”) within 6 to 12 months of execution of this Agreement. Within that same time period, Sonic shall begin providing Internet access service at the two Internet service addresses listed on Exhibit B (“Internet Access Service”). When each Fiber Segment is completed, Sonic shall test, verify and deliver results of testing of that Fiber Segment to Customer.

1.2 Turn Up and Acceptance by Customer. Upon full delivery of bi-directional dark fiber and Internet access services at the critical sites (“Critical Sites”) listed on Exhibit D, Customer shall have thirty (30) days to perform any required testing of the integrated Sonic Network, with Sonic’s assistance.

The Parties agree that services at all sites listed on Exhibit B will be delivered to City prior to turn up and acceptance. However, City recognizes the potential for challenges incurred for the sites that do not have existing fiber infrastructure in place. In the City’s sole discretion, City may accept individual fiber segments at the individual sites (“Individual Turn Up Sites”) listed on Exhibit D, and Customer shall have thirty (30) days to perform any required testing of the Individual Turn Up Sites only AFTER the Critical Sites have been delivered in full and accepted by Customer.

If the Customer does not test the integrated Sonic Network and notify Sonic of any deficiencies within 30 days of delivery of the integrated Sonic Network, Customer will be deemed to have accepted the services at the Service Sites.

1.3 Cancellation prior to service delivery. Should Customer cancel any service or Service Site prior to Sonic service delivery and/or start of service and should Sonic have incurred any engineering, construction, or administrative costs, the City shall reimburse costs plus 10% for each Service Site cancelled, upon presentation of receipts for costs incurred by Sonic.

2.0 Maintenance. Sonic will use commercially reasonable efforts to maintain the Sonic Network in accordance with industry standards and the needs of Customer. Costs for required maintenance and repair of the Sonic Network are included in the Payment required by this Agreement.

3.0 Limitation of Agreement. This Agreement does not obligate Sonic to supply to Customer any optical or electrical equipment, or other facilities, including without limitation, local distribution facilities, collocation space, regeneration facilities, generators, batteries, air conditioners, fire protection equipment, monitoring equipment and testing equipment, all of which are the sole responsibility of Customer. Sonic is not responsible for performing any work or providing any service other than as specifically set forth in this Agreement.

DocuSign Envelope ID: D53F1F43-5AE6-4E38-BBCF-BCFF599C7B9E 21st

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Attachment: Sonic-City of Healdsburg_Service Agreement_Internet Managed Dark Fiber (4372 : Authorize Amendment to Sonic Service

4.0 Acceptable Use Policy. This Agreement grants to Customer no right to use any element of the Sonic Network other than those rights granted herein. Customer shall keep any and all portions of the Sonic Network, including the Fiber Segments, free from any liens, rights or claims of any third party that can be attributed to Customer.

5.0 Payment. Sonic will issue invoices to Customer within five days of Turn Up and Acceptance by Customer, either on an Individual Site or the full network, as further described in Section 1.2. Payment shall not be due by Customer until Customer has accepted services as described in Section 1.2 of this Agreement
If full payment is not received within 30 days of the invoice date from Sonic, Sonic may discontinue service on a particular Fiber Segment until full payment is received. If Sonic still has not received full payment by the 30th day from the invoice date, or 60 days after Customer has received testing results from Sonic, service throughout the network will be disconnected. Customer must provide and maintain a valid credit or debit card, against which all applicable fees will be automatically charged if arrangements have not been made to pay by check.

5.1 If service is disconnected due to non-payment and Sonic decides in its discretion to reinstate service, Customer will be assessed a $100.00 administrative fee which must be paid in full prior to the reinstatement.

5.2 All disputes as to any invoiced amount must be submitted in writing within fifteen (15) days of Customer’s receipt of each invoice or the right to dispute will be waived in its entirety. Complete documentation setting forth and establishing all bases of the dispute must be provided within this fifteen (15) day period. Notwithstanding any dispute, the full amount of all disputed and undisputed amounts must be paid in full when due, subject to the provisions noted above. Sonic shall respond with a determination as to the legitimacy of each dispute within thirty (30) days of receipt. Disputed amounts accepted by Sonic shall be credited by Sonic to Customer on the invoice(s) immediately following the determination by Sonic.

6.0 Indemnification.

6.1 Sonic shall indemnify and hold harmless Customer and its officers, officials, employees, agents and volunteers (collectively, “Indemnitees”) from and against any and all liability, loss, damage, claims, suits, actions, arbitrations proceedings, administrative proceedings, regulatory proceedings, civil penalties and fines, expenses and costs (including, reimbursement of reasonable attorneys' fees and costs and fees of litigation) (collectively, "Liability") to the extent caused by Sonic's negligent provision of the Services or its negligent failure to comply with any of its obligations contained in this Agreement, or willful misconduct of Sonic. Sonic must respond within thirty (30) days to the tender of any claim for indemnity by Customer, unless this time has been extended by Customer. If Sonic fails to accept or reject a tender of indemnity within thirty (30) days, in addition to any other remedy authorized by law, so much of the money due Sonic under and by virtue of this Agreement as shall reasonably be considered necessary by Customer, may be retained by Customer until disposition has been made of the claim or suit for damages, or until Sonic accepts or rejects the tender of indemnity, whichever occurs first. Furthermore, Sonic and Subcontractors’ obligations to indemnify Customer are binding on their successors and assigns and shall survive the termination or completion of this Agreement.

6.2 Customer agrees to release, indemnify, defend, protect, and hold harmless Sonic, its employees, officers, directors, agents, and shareholders, and its affiliate Sonic Telecom, LLC, from and against liability for following:

DocuSign Envelope ID: D53F1F43-5AE6-4E38-BBCF-BCFF599C7B9E

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(1) Any injury, loss or damage to any person, tangible property or facilities of any third person or entity or Sonic (including reasonable attorneys’ fees and costs) to the extent arising out of or resulting from either: (i) the active negligence, sole negligence, or willful misconduct of Customer, its officers, employees, servants, agents, contractors, licensees, invitees or vendors; or (ii) acts and omissions of Customer constituting a default under this Agreement caused by active negligence, sole negligence, or willful misconduct of Customer;
(2) Any claims, liabilities or damages arising out of any violation by Customer of any regulation, rule, statute or order of any local, state or federal governmental agency, court or body in connection with the use of the Sonic Network and/or Internet Access Service hereunder caused by active negligence, sole negligence, or willful misconduct of Customer;
(3) Any claims, liabilities or damages arising out of any interference with or infringement of the rights of any third party as a result of Customer’s use of the Sonic Network and/or Internet Access Service hereunder not in accordance with the provisions of this Agreement and caused by active negligence, sole negligence, or willful misconduct of Customer; and (4) Any claims, liabilities or damages arising out of the use, resale, sharing or modification of the Sonic Network and/or Internet Access Service by Customer.

6.3 Notwithstanding the foregoing or any other provision to the contrary, Sonic shall not be required to provide a defense to Customer for claims arising out of Sonic’s obligations under this Agreement as defined in Sonic’s professional liability policy EXCEPT THAT this shall not affect Sonic’s obligation to reimburse reasonable attorneys’ fees and reasonable defense costs as part of Sonic’s actual indemnity obligation to Customer, if any, nor shall it affect Sonic’s duty to defend Customer if such a defense is available under any of Sonic’s other insurance policies.

6.4 Notwithstanding the foregoing, to the extent this Agreement is a "construction contract" as defined by California Civil Code § 2783, as may be amended from time to time, such duties of Sonic to indemnify shall not apply when to do so would be prohibited by California Civil Code § 2782, as may be amended from time to time.

6.5 Notwithstanding the foregoing, to the extent that the Services include design professional services subject to Cal. Civil Code § 2782.8, as amended from time to time, Sonic's duty to indemnify shall only be to the maximum extent permitted by Civil Code § 2782.8.

6.6 The defense and indemnification obligations of this Agreement are undertaken in addition to, and shall not in any way be limited by, the insurance obligations contained in this Agreement.

7.0 Insurance. Sonic shall, throughout the duration of this Agreement, maintain insurance to cover Sonic (including its agents, representatives, and employees) in connection with the performance of services under this Agreement of the types and in the coverage amounts set forth in Exhibit A entitled “Insurance.” This Agreement identifies the minimum insurance levels with which Sonic shall comply; however, the minimum insurance levels shall not relieve Sonic of any other performance responsibilities under this Agreement (including indemnity language) and Sonic may carry, at its own expense, any additional insurance it deems necessary or prudent. Concurrently with the execution of this Agreement by Sonic, and prior to the commencement of any services, Sonic shall furnish written proof of insurance (certificates and endorsements), in a form acceptable to the City. Sonic shall provide substitute written proof of insurance no later than 30 days prior to the expiration date of any insurance policy required by this Agreement.

8.0 Disclaimer of Warranties and Limitation of Liability.

DocuSign Envelope ID: D53F1F43-5AE6-4E38-BBCF-BCFF599C7B9E

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Attachment: Sonic-City of Healdsburg_Service Agreement_Internet Managed Dark Fiber (4372 : Authorize Amendment to Sonic Service

Sonic provides services hereunder strictly on an “AS IS” and “AS AVAILABLE” basis without any warranty, guarantee or other assurance of quality, reliability, or functionality. Except as expressly set forth herein, Customer accepts all risk, including all risk with respect to suitability, use and performance of dark fiber and Internet Access Service. SONIC DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. In any instance involving performance or nonperformance by Sonic with respect to services provided hereunder, Customer’s sole remedy shall be a refund of a pro-rated portion of the price paid for dark fiber and/or Internet Access Service, which was not provided after the first twenty-four (24) consecutive hours in which the service failed to meet the quality-of-service standards set forth herein.

Customer acknowledges that the facilities and services of third parties may be used in connection with the services. Sonic is not liable for any act, omission to act, negligence or defect in the quality or availability of service of any underlying carrier or other service whose facilities or services are used in furnishing any portion of the service received by the Customer or for any failure of performance that is caused by or the result of any act or omission by Customer or any entity other than Sonic that furnishes services, facilities, or equipment used in connection with Sonic’s services or facilities.

Sonic will not be liable for any damage that Customer may suffer arising out of use, or inability to use, the dark fiber and/or Internet Access Service. Sonic, Inc. will not be liable for unauthorized access to Customer’s transmission facilities of Customer, Customer’s data files, programs, procedures or information through accident, fraudulent means or devices, or any other method, regardless of whether such damage occurs as a result of Sonic’s negligence. Sonic shall not be liable for indirect, consequential, incidental or special damages even if advised of the possibility in advance. Sonic shall not be liable for any lost property or data of Customer. Sonic’s liability for damages to Customer for any cause whatsoever, regardless of form of action, shall be limited to the pro-rated portion of the monthly charge actually paid by the customer for the period after the first twenty-four (24) consecutive hours in which the service failed to meet the quality-of-service standards set forth herein.

9.0 Term. This contract is for an initial term of sixty (60) months. The initial term begins once service is installed and billing begins. Customer will have three (3) five (5)-year options to renew.

10.0 Termination.

10.1 Termination by either Party. This Agreement may be terminated by providing the other Party with thirty (30) days prior written notice.

10.2 If any of the events below occur with respect to one Party, then the other Party may terminate this Agreement effective immediately upon the delivery of written notice:

1. A Party becomes insolvent; files a voluntary petition in bankruptcy, proposed any dissolution, liquidation, reorganization or recapitalization; has filed against it an involuntary petition in bankruptcy, or receiver is appointed or takes possession of the Party’s property, and such petition is not dismissed or stayed within ten (10) calendar days of such filing, appointment or taking possession; makes an assignment for the benefit or creditors, or is adjudicated as bankrupt; or takes any similar action under the law of any jurisdiction.

2. Material breach of this Agreement which is not remedied within ten (10) calendar days after written notice (describing the breach with particularity) has been given by the other Party.

11.0 Force Majeure. Neither Party will be liable for or will be considered to be in breach of or default under this Agreement, if the failure to perform the Agreement arises from causes beyond the control and without the fault or negligence of the Party, including without limitation failure to reasonably mitigate any adverse impacts (“Force Majeure”). Force Majeure events include the following:

DocuSign Envelope ID: D53F1F43-5AE6-4E38-BBCF-BCFF599C7B9E

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Attachment: Sonic-City of Healdsburg_Service Agreement_Internet Managed Dark Fiber (4372 : Authorize Amendment to Sonic Service

Acts of God, fires, floods, earthquake, other natural disasters, epidemics and pandemics (other than COVID-19 or variants), abnormal weather conditions beyond the parameters otherwise set forth in this Article, nuclear accidents, strikes, lockouts, freight embargos, interruptions in service by a regulated utility, or governmental statutes or regulations enacted or imposed after the fact (together, “Force Majeure events”).

Any Force Majeure event with a duration in excess of 30 days entitles either party to terminate this Agreement with written notice to the other party, without further penalty or compensation. If any Force Majeure event occurs, the affected Party will give prompt written notice to the other Party and will use commercially reasonable efforts to minimize the impact of the event.

12.0 Notice. Any notice required to be given under this Agreement shall be in writing and delivered personally to the other designated Party at the below stated address, or mailed by certified, registered or Express mail, return receipt requested or by overnight delivery. Either Party may change the address to which notice is to be sent by written notice to the other under any provision of this paragraph.

Sonic, Inc City of Healdsburg
2260 Apollo Way Attention: City Manager
Santa Rosa, CA 95407 238 Center Street
(707) 522-1000 Healdsburg, CA. 95448

13.0 Jurisdiction for Disputes. The Parties agree that the law governing this Agreement shall be that of the State of California. Any suit brought by either party against the other arising out of the performance of this Agreement shall be filed and maintained in the Courts of the County of Sonoma.

14.0 Agreement Binding on Successors. The provisions of the Agreement shall be binding upon and shall inure to the benefit of the Parties hereto, their heirs, administrators, successors and assigns.

15.0 Assignability. Neither Party shall not have the right to assign this Agreement or the rights and obligations hereunder to any third Party without the prior express written approval of the other Party, which consent shall not be unreasonable withheld.

16.0 Waiver. A waiver of any breach of any provision of this Agreement shall not constitute or operate as a waiver of any other breach of such provision or of any other provisions, nor shall any failure to enforce any provision operate as a waiver of such provision or of any other provisions.

17.0 Severability. If any term, clause or provision hereof is held invalid or unenforceable by a court of competent jurisdiction, such invalidity shall not affect the validity or operation of any other term, clause or provision and such invalid term, clause or provision shall be deemed to be severed from the Agreement.

18.0 Authorities and Consents. By executing below, each person represents and warrants that he/she is authorized to bind the Party on whose behalf he/she is signing and that the consents of third parties is not required to perfect this right.

19.0 Integration. This Agreement constitutes the entire understanding of the Parties, and revokes and supersedes all prior agreements between the Parties and is intended as a final expression of their Agreement. This Agreement may not be modified or amended except in writing signed by the Parties hereto and specifically referring to this Agreement. This Agreement shall take precedence over any other documents which may conflict with this Agreement.

DocuSign Envelope ID: D53F1F43-5AE6-4E38-BBCF-BCFF599C7B9E

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6 of 12
Customer Sonic
City of
Healdsburg: \co1\
Name
(printed):

Name
(printed): \n1\ Title:

Title: \t1\ Date:

Date: \d1\ Signature:

Signature:\s1\
DocuSign Envelope ID: D53F1F43-5AE6-4E38-BBCF-BCFF599C7B9E 9/20/2022
CEO
Dane Jasper
9/21/2022
Andrew J Sturmfels
City Manager

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Attachment: Sonic-City of Healdsburg_Service Agreement_Internet Managed Dark Fiber (4372 : Authorize Amendment to Sonic Service

Exhibit A – Insurance
City of Healdsburg is named as additional insured with regards to general liability per form CGD417 (02/19).

City of Healdsburg, its officers, it’s officials, employees, volunteers, and agents are named as Additional Insured with primary non- contributory & waiver of subrogation per CGD417(02/19), CGT100(02/19), CAT353(02/15), CAT442(02/16) & WC990376(A) attached. 30 day Notice of Cancellation applies per form ILT405 (03/11).

Sonic Certificate of Insurance Copy
DocuSign Envelope ID: D53F1F43-5AE6-4E38-BBCF-BCFF599C7B9E

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Attachment: Sonic-City of Healdsburg_Service Agreement_Internet Managed Dark Fiber (4372 : Authorize Amendment to Sonic Service

Exhibit B
Contract Term: 60-months
Service Description
5Gbps Internet Access Service
Contingent Pricing on the Purchase of Managed Dark Fiber Sites Term Discount: Monthly
21 Internet Service Address: City Hall, 401 Grove Street 60 months Discount: 50% $1,100 1 Internet Service Address: Police Dept, 238 Center Street 60 months Discount: 50% $1,100 Qty
Service Description
Fully Managed Dark Fiber:
(One strand Bi-directional fiber )
Term Time-one NRC Monthly
1 ALOC: Gauntlett Tower, 1100 March Ave, Healdsburg
ZLOC: City Hall, 401 Grove Street, Healdsburg 60 months $0.00 $700/month 1 ALOC: Community Center, 1557 Healdsburg Ave, Healdsburg ZLOC: City Hall, 401 Grove Street, Healdsburg 60 months $0.00 $700/month 1 ALOC: Fire Department, 601 Healdsburg Ave, Healdsburg ZLOC: City Hall, 401 Grove Street, Healdsburg 60 months $0.00 $700/month 1 ALOC: Police Department, 238 Center Street, Healdsburg ZLOC: City Hall, 401 Grove Street, Healdsburg 60 months $0.00 $700/month 1 ALOC: (Redundant Strand) Police Department, 238 Center Street ZLOC: City Hall, 401 Grove Street, Healdsburg 60 months $0.00 $350/month 1 ALOC: Gauntlett Tower, 1100 March Ave, Healdsburg
ZLOC: Police Department, 238 Center Street, Healdsburg 60 months $0.00 $350/month 1 ALOC: Senior Center, 133 Matheson Street, Healdsburg
ZLOC: City Hall, 401 Grove Street, Healdsburg 60 months $0.00 $700/month 1 ALOC: Swim Center, 360 Monte Vista Avenue, Healdsburg ZLOC: City Hall, 401 Grove Street, Healdsburg 60 months $0.00 $700/month 1 ALOC: Corp Yard, 550 West Side Road, Healdsburg
ZLOC: City Hall, 401 Grove Street, Healdsburg 60 months $29,290 $700/month 1 ALOC: Town Square Plaza, 304 Center Street, Healdsburg ZLOC: City Hall, 401 Grove Street, Healdsburg 60 months $0.00 $700/month Time-one
NRC:
$29,290.00
Total Monthly:
$8,500.00
Not inclusive of any federal, state or local taxes or fees Delivery interval: 6 to 12 months, permit dependent.
.

To:

City of Healdsburg
238 Center Street
Healdsburg, CA. 95448
Date: June 24, 2022
Expiration Date: 45 days from today
Prepared by: Dane Jasper/Kinderlin Codding
707-522-1000
[email protected]
[email protected]
DocuSign Envelope ID: D53F1F43-5AE6-4E38-BBCF-BCFF599C7B9E

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Attachment: Sonic-City of Healdsburg_Service Agreement_Internet Managed Dark Fiber (4372 : Authorize Amendment to Sonic Service

Account Information

PRIMARY ACCOUNT OWNER
Name:

Service Address:

City: State: Zipcode:

Primary Contact: Title:

Contact Telephone: Email:

BY INITIALING HERE, YOU ACKNOWLEDGE THAT THE SERVICE ADDRESS LISTED ABOVE IS CORRECT. \i1\

ON-SITE TECHNICAL CONTACT
(This person will be contacted for site survey and
installation)

IMPLEMENTATION CONTACT
(This person will receive all correspondence during
provisioning)
\cbt1\ ADD CONTACT AS ADDITIONAL ADMIN \cbi1\ ADD CONTACT AS ADDITIONAL ADMIN Contact
Name:

Contact
Name:

Phone: Phone:

Email: Email:

PROPERTY MANAGEMENT (if applicable) RISER MANAGEMENT (if applicable) \coi1\ CERTIFICATE OF INSURANCE REQUIRED
Contact
Name:

Contact
Name:

Phone: Phone:

Email:

BILLING INFORMATION
Billing Name:

Billing Address:

City: State: Zipcode:

Billing Contact: Phone: Billing Email:

Credit card
#: Exp: CSC:

Name on credit card:

Desired or Current
username:

All invoices and receipts will be sent via email to the billing email address provided above. This email address needs to be in use by someone associated with accounts payable.

DocuSign Envelope ID: D53F1F43-5AE6-4E38-BBCF-BCFF599C7B9E Amy Dugan [email protected]
Healdsburg CA
707-431-3329
401 Grove St
City of Healdsburg
Net30 Terms
Tyler Kettmann
707-431-3160
95448
City of Healdsburg
707-431-3198
[email protected]
707-431-3311
95448
Max Hoffert
[email protected]
CA
Adam McKenna
[email protected]
Adam McKenna IT Manager
401 Grove St
707-431-3311
Healdsburg

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Attachment: Sonic-City of Healdsburg_Service Agreement_Internet Managed Dark Fiber (4372 : Authorize Amendment to Sonic Service

Exhibit C – Acceptable Use Policy
Any prohibited or illegal activity that affects Sonic.net, LLC, its agents, equipment or customers is punishable to the full extent of the law, and Sonic.net, LLC will hold you responsible for any damage caused by your actions, whether intentional or unintentional. You are strictly prohibited from using your account other than as outlined in this Acceptable Use Policy and will be prosecuted to the full extent of the law if you do so illegally (see Network Abuse and Enforcement section). Sonic.net, LLC makes no exceptions in enforcing this policy. Sonic.net, LLC functions as a common carrier; our standard policy is to not monitor or interrupt our users' activities, exert editorial control over their content, or censor them or their content. To protect the interests of Sonic.net, LLC and in the best interests of our customers, exceptions to this policy may be made under certain specific circumstances including but not limited to the following:

Illegal activities:

The law requires Sonic.net, LLC to report any criminal activity that it becomes aware of to the appropriate authorities. It is the responsibility of the account owner to be familiar with current laws and regulations.

Email:

Email accounts are for personal or business correspondence only. Unsolicited Commercial Email (otherwise known as UCE - or spam) is strictly prohibited and violators will have their accounts terminated immediately.

Sending unsolicited email to one or more addresses regardless of how the addresses were obtained may be considered spamming and is grounds for account termination. Use of a Sonic.net, LLC address or any address of a domain hosted by Sonic.net, LLC as a return address for replies to spam is similarly prohibited. Sonic.net, LLC may at its discretion employ filtering techniques to block inbound email from known sources of spam and email abuse, and may also filter incoming email for known viruses.

Usenet:

All users of Sonic.net, LLC news servers agree to be bound by the charter of any newsgroup or newsgroup hierarchy posted to. It is the responsibility of the user to be familiar with these charters, which may include rules about content, spam, language and off-topic posting. Excessive posting of identical messages to multiple newsgroups ('cross-posting') via Sonic.net, LLC news servers is prohibited, as is the posting of unsolicited commercial email (spam).

Shell use:

Sonic.net, LLC can provide shell access to its users on request. Shell access is an optional service and Sonic.net, LLC reserves the right to grant or revoke customer shell access at any time. To activate shell access, please call our technical support department. The shell server is a shared resource and shell access is intended for use only when a user is actively connected and using the connection. IRC bots, excessive use of resources, and network abuse are all prohibited. The use of any process or program intended to run while the user is not online is also prohibited. Sonic.net, LLC maintains a strict, zero-tolerance policy with regard to abuse of user shell access privileges. Any abuse of the shell service will result in immediate revocation of shell access, and further action may be taken at the discretion of Sonic.net, LLC (see Network abuse and Enforcement section).

Network abuse and Enforcement:

Use of Sonic.net, LLC accounts or services for orchestration of or participation in any abuse of the Sonic.net, LLC network or any other network, system or service is expressly forbidden and is grounds for account termination and possible legal action. Any action which interferes with the Sonic.net, LLC network or other networks or which affects the use of or access to any network is likewise expressly forbidden. Sonic.net, LLC retains at all times the right to determine what constitutes network abuse. Examples include but are not limited to:

DocuSign Envelope ID: D53F1F43-5AE6-4E38-BBCF-BCFF599C7B9E

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Attachment: Sonic-City of Healdsburg_Service Agreement_Internet Managed Dark Fiber (4372 : Authorize Amendment to Sonic Service

 Attempts to hack the Sonic.net, LLC network or any other network or systems  Port scanning
 Use of 'cracking' software or techniques
 Dissemination of viruses or malware
 Provocation of attacks on the Sonic.net, LLC network or any other network  Conduct which causes Sonic.net, LLC to be blocked by another provider or which causes Sonic.net, LLC to be placed on a "block list"
 Flooding the Sonic.net, LLC network or any other network with traffic for the purpose of disrupting service
 Mail bombing
 Resale of Sonic services, directly or indirectly, without express written consent from Sonic. This includes sale of Wi-Fi access or any off-premises access to services.  Operation of servers for commercial purposes by non-Enterprise customers. Note that it is acceptable to use servers for private or personal use (such as servers to access content in your home and applications that have server capabilities such as multiplayer gaming) and for small business customers to operate private (in-profile) servers for business purposes.

Sonic.net, LLC customers must also comply with the acceptable use policies of our upstream providers, UUNET (http://www.uu.net) and Cable and Wireless ( http://www.cw.com) DocuSign Envelope ID: D53F1F43-5AE6-4E38-BBCF-BCFF599C7B9E

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Attachment: Sonic-City of Healdsburg_Service Agreement_Internet Managed Dark Fiber (4372 : Authorize Amendment to Sonic Service

Exhibit D
Critical Sites for City Turn Up and Acceptance:

Qty
Service Description
Fully Managed Dark Fiber:
(One strand Bi-directional fiber )
1 ALOC: Community Center, 1557 Healdsburg Ave, Healdsburg ZLOC: City Hall, 401 Grove Street, Healdsburg
1 ALOC: Fire Department, 601 Healdsburg Ave, Healdsburg ZLOC: City Hall, 401 Grove Street, Healdsburg
1 ALOC: Police Department, 238 Center Street, Healdsburg ZLOC: City Hall, 401 Grove Street, Healdsburg
1 ALOC: (Redundant Strand) Police Department, 238 Center Street ZLOC: City Hall, 401 Grove Street, Healdsburg
1 ALOC: Senior Center, 133 Matheson Street, Healdsburg
ZLOC: City Hall, 401 Grove Street, Healdsburg
1 ALOC: Swim Center, 360 Monte Vista Avenue, Healdsburg ZLOC: City Hall, 401 Grove Street, Healdsburg
Service Description
5Gbps Internet Access Service
Contingent Pricing on the Purchase of Managed Dark Fiber Sites 1 Internet Service Address: City Hall, 401 Grove Street 1 Internet Service Address: Police Dept, 238 Center Street Individual Fiber Segment Turn Up Sites:

Qty
Service Description
Fully Managed Dark Fiber:
(One strand Bi-directional fiber )
ALOC: Gauntlett Tower, 1100 March Ave, Healdsburg
ZLOC: City Hall, 401 Grove Street, Healdsburg
ALOC: Gauntlett Tower, 1100 March Ave, Healdsburg
ZLOC: Police Department, 238 Center Street, Healdsburg
ALOC: Corp Yard, 550 West Side Road, Healdsburg
ZLOC: City Hall, 401 Grove Street, Healdsburg
ALOC: Town Square Plaza, 304 Center Street, Healdsburg
ZLOC: City Hall, 401 Grove Street, Healdsburg
DocuSign Envelope ID: D53F1F43-5AE6-4E38-BBCF-BCFF599C7B9E

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Attachment: Sonic-City of Healdsburg_Service Agreement_Internet Managed Dark Fiber (4372 : Authorize Amendment to Sonic Service DocuSign Envelope ID: D53F1F43-5AE6-4E38-BBCF-BCFF599C7B9E [email protected] Rosa, CA 954072260 Apollo Way 2260 Apollo WaySanta Rosa, CA 95407

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Attachment: Sonic-City of Healdsburg_Service Agreement_Internet Managed Dark Fiber (4372 : Authorize Amendment to Sonic Service DocuSign Envelope ID: D53F1F43-5AE6-4E38-BBCF-BCFF599C7B9E 2260 Apollo Way
9/20/2022
4 6
X
6 3 7
Santa Rosa, CA 95407
2 6
Sonic.net, LLC
0 X
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Attachment: Sonic-City of Healdsburg_Service Agreement_Internet Managed Dark Fiber (4372 : Authorize Amendment to Sonic Service DocuSign Envelope ID: D53F1F43-5AE6-4E38-BBCF-BCFF599C7B9E 6.D.c Packet Pg. 61
Attachment: Sonic-City of Healdsburg_Service Agreement_Internet Managed Dark Fiber (4372 : Authorize Amendment to Sonic Service DocuSign Envelope ID: D53F1F43-5AE6-4E38-BBCF-BCFF599C7B9E 6.D.c Packet Pg. 62
Attachment: Sonic-City of Healdsburg_Service Agreement_Internet Managed Dark Fiber (4372 : Authorize Amendment to Sonic Service 603-3032-43103 Sonic.net - CH -- CC Fiber
603-3032-43103 Sonic.net - CH -- CC Pool Fiber
603-8082-43103 Sonic.net - CH -- CY Fiber
603-8082-43103 Sonic.net - CH -- CY Fiber (1 time install) 603-5501-43103 Sonic.net - CH -- FD1 Fiber
603-5301-43103 Sonic.net - CH -- PD1 Fiber 1 (second in IT costs) 603-3033-43103 Sonic.net - CH -- SS Fiber
603-3001-43103 Sonic.net - CH -- Town Square Fiber
603-8080-43103 Sonic.net - CH Primary Internet
603-8080-43103 Sonic.net - Core IT Links and Redundancy (CH-Comm Tower @$700, PD2 @$350, PD-Tower @$700) 603-5301-43103 Sonic.net - PD Primary Internet

FUNDING SOURCE ACCOUNT DISTRIBUTION
DocuSign Envelope ID: D53F1F43-5AE6-4E38-BBCF-BCFF599C7B9E

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Attachment: Sonic-City of Healdsburg_Service Agreement_Internet Managed Dark Fiber (4372 : Authorize Amendment to Sonic Service Agreement)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: April 15, 2024
SUBJECT: Conduit Lease Agreement with Sonic.net, LLC
PREPARED BY: Tyler Kettmann, Central Services Manager
STRATEGIC INITIATIVE(S):

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

Adopt a Resolution approving a Conduit Lease Agreement between the City of Healdsburg, and Sonic.Net, LLC, and authorizing the City Manager to execute the Lease Agreement on behalf of the City.

COMMUNITY ENGAGEMENT/OUTREACH:

Not applicable.

BACKGROUND:

On August 15, 2022, City Council approved a five (5) year agreement with Sonic.net, LLC (Sonic) for internet and managed Dark Fiber construction, installation, and support services. On September 21st, 2022, the City of Healdsburg (City) and Sonic executed the agreement. The existing agreement scope includes services that provide more robust, secure, and cost-effective fiber connectivity to the internet, along with dedicated dark fiber connections between City facilities.

The City owns and operates certain conduit that may be used to house fiber optic and/or hard wire twisted pair communications cable within an existing network of conduits. Sonic wishes to occupy, and share existing conduit space with the City and lease 0.95 miles (4,742 Linear Feet) of conduit space to occupy portions of the City’s conduit space with fiber optic cable within the City's right-of-way locations as outlined in the attached Exhibit A. The conduit desired by Sonic runs from the intersection at Grant and Grove Street, south down Grove and Vine Street, and down Mill Street, terminating on the other side of Highway 101 at Westside Road and Kinley Drive. Sonics use of this path will expedite and reduce the costs of the service connections for the City between the Corporation Yard, City Hall, and the Fire Station. It will also allow Sonic to

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expand their coverage network to other locations in the area, increasing the choices available to residents and businesses.

DISCUSSION/ANALYSIS:

The proposed non-exclusive lease of City’s conduit space (Lease) was negotiated between City staff and Sonic. The Lease is for a five-year term with three (3) five-year extension options. The Lease includes a base rent to be paid annually to the City in the amount of Three Thousand Seven Hundred Ninety-Seven Dollars and Seventy-Two Cents ($3,603.92) for use of conduit space. This total amount is based on a .76 cent per linear foot rate, consistent with rates agreed to by other service providers in other jurisdictions. As an additional consideration, the Lease provides that Sonic will agree to procure, provide, and install forty-eight (48) strands of fiber optic cable within the conduit space identified in Exhibit A, which shall be dedicated to and provided for the exclusive use, ownership, and control of the City.

Staff believe the proposed Lease will facilitate/expedite Sonic meeting the terms of the existing service agreement, while minimizing construction and installation costs and impact. Additional benefits include the annual rent and installation (by Sonic) of City owned fiber optic cable under the proposed Lease terms. The City has no current need for the existing conduit space and staff believe the benefit to the City from leasing to Sonic will outweigh any perceived advantage(s) to reserving the conduit space for future City use.

Staff recommend approving the proposed Lease with Sonic and authorizing the City Manager to execute the proposed Lease and subsequent amendments or extensions per the terms of the proposed Lease on behalf of the City.

ENVIRONMENTAL STEWARDSHIP:

Not Applicable.

ALTERNATIVES:

With respect to the proposed Lease, the City Council retains its proprietary right to not approve the lease of property owned by the City. If the Council chooses not to approve the proposed Lease, additional direction to staff is requested.

FISCAL IMPACT:

The proposed Lease provides an annual rental payment of $3,603.92that will be received as revenue in the General Fund. The proposed Lease also provides for a five percent (5%) increase of the Base Rent on the first day of the month following the fifth anniversary of the Commencement Date and on each fifth anniversary thereafter throughout the Term. The City’s responsibility for maintenance of the conduit and its associated costs were anticipated in the adopted FY 2022-24 biennial budget and any future costs will be incorporated in subsequent budget years.

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

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purposes of CEQA.

ATTACHMENT(S):

Resolution - Healdsburg Conduit Lease
Healdsburg Conduit Lease Sonic FINAL
Final Conduit Exhibit

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CITY OF HEALDSBURG
RESOLUTION NO. _____-2024

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG APPROVING A CONDUIT LEASE

AGREEMENT BETWEEN THE CITY OF HEALDSBURG AND
SONIC.NET, LLC, AND AUTHORIZING THE CITY

MANAGER TO EXECUTE THE CONDUIT LEASE

AGREEMENT ON BEHALF OF THE CITY
WHEREAS, the City owns and operates certain conduit that may be used to house fiber optic and/or hard wire twisted pair communications cable within an existing network of conduits; and
WHEREAS, Sonic.net, LLC (Sonic) wishes to occupy, and share said existing conduit space with the City and lease 0.95 miles (4,742 Linear Feet) of conduit space to occupy portions of the City’s conduit space with fiber optic cable within the City's right-of-way locations; and WHEREAS, the proposed non-exclusive lease of City’s conduit space (Lease) was negotiated in good faith between City staff and Sonic; and WHEREAS, the proposed Lease is for a five-year term with three (3) five-year extension options; and
WHEREAS, the proposed Lease includes a base rent to be paid annually to the City in the amount of Three Thousand Six Hundred Three Dollars and Ninety-Two Cents ($3,603.92) for use of conduit space; and
WHEREAS, as an additional consideration, the proposed Lease provides that Sonic will agree to procure, provide and install forty-eight (48) strands of fiber optic cable which within the conduit space; and
WHEREAS, staff recommend approving the proposed Lease with Sonic and authorizing the City Manager to execute the proposed Lease and subsequent amendments or extensions per the terms of the proposed Lease on behalf of the City; and WHEREAS, Pursuant to California Environmental Quality Act and Title 14, the California Code of Regulations (“CEQA Guidelines”), Section 15378(b) (5), the recommended action is an administrative activity of the City and will not result in direct or indirect physical changes in the environment and does not qualify as a “Project”. Therefore, no further CEQA or environmental review is required.

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

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Attachment: Resolution - Healdsburg Conduit Lease (4371 : Healdsburg Conduit Lease) Resolution No. __ -2024

1. Approves the proposed non-exclusive lease of City’s conduit space between the City of Healdsburg and Sonic.net, LLC.

2. Authorizes the City Manager to execute the proposed non-exclusive lease of City’s conduit space and subsequent amendments or extensions per the terms of the proposed Lease on behalf of the City.

3. Find that pursuant to California Environmental Quality Act and Title 14, the California Code of Regulations (“CEQA Guidelines”), Section 15378(b) (5), the recommended action is an administrative activity of the City and will not result in direct or indirect physical changes in the environment and does not qualify as a “Project”. Therefore, no further CEQA or environmental review is required.

PASSED, APPROVED, AND ADOPTED this 15th day of April 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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Attachment: Resolution - Healdsburg Conduit Lease (4371 : Healdsburg Conduit Lease)

CONDUIT LEASE AGREEMENT

BETWEEN

THE CITY OF HEALDSBURG
AND

SONIC TELECOM, LLC
THIS CONDUIT LEASE AGREEMENT ("Agreement") is made as of ____________, 2024 (the "Lease Execution Date"), by and between the CITY OF HEALDSBURG, a municipal corporation existing under the laws of the State of California ("LESSOR") and Sonic Telecom, LLC, a California Limited Liability Company, whose address is 2260 Apollo Way, Santa Rosa, CA 94507 ("LESSEE").

RECITALS:

WHEREAS, Lessor owns and operates conduit that may be used to house fiber optic and/or hard wire twisted pair communications cable within an existing network of conduits; and WHEREAS, Lessee wishes to occupy and share existing conduit space with Lessor and lease approximately 0.898 miles (4.742 Linear Feet) of Conduit Space to occupy portions of Lessor’s conduit space with fiber optic cable within Lessor's right-of-way locations as outlined in the attached Exhibit A; and
WHEREAS, Lessee will lease said conduit space per the Terms (as defined below) for a five (5) year initial term with three five (5) year options to renew; and WHEREAS, Lessee will, at its own cost, install fiber optic cable of not more than 288 strands within and along innerduct in Conduit Space shown in Exhibit A; and WHEREAS, Lessor will allow the installation of fiber optic cable within Lessor's Conduit Space as shown in Exhibit A and grant the installation of any required splice and slack loop storage vaults and handholes within Lessor's right-of-way for Lessee’s use and maintenance purposes.

NOW, THEREFORE, in consideration of the terms, covenants and conditions hereinafter set forth, LESSOR and LESSEE hereby AGREE as follows:

1. Definitions.

1.1 “Term” means the length of time that this Agreement is in effect, and as defined herein and which may be extended from time to time.

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Attachment: Healdsburg Conduit Lease Sonic FINAL (4371 : Healdsburg Conduit Lease)

1.2 “Contractors” shall mean contractors working for Lessee.

1.3 “Conduit” means a pipe-like structure which may consist of polyvinyl chloride (PVC), high density polyethylene (HDPE), and other materials placed underground to contain Ducts and/or Fiber Optic Cables as part of a communications network.

1.4 “Conduit Space” shall mean all Lessor owned communications conduits, inclusive of vaults, ducts, land, and other equipment owned or controlled by Lessor that is within Lessor's Right-of-way.

1.5 “Fiber Optic Cable (“FOC”)” shall mean fiber optic communications cable. l.6 “Lessee's System” shall mean any fiber optic system deployment for the benefit of Lessee which may include its fiber optic cable, inner-conduits, conduits, innerducts, vaults, handholes, equipment or other improvements operated by or for the benefit of Lessee and its customers.
l.7 “Land” shall mean the area of ground, pavement, or other structure located in any public right of way that must be accessed or crossed in order for Lessee or its Contractors to install the FOC or maintain Lessee’s System.

1.8 “Lease” shall mean a right to use specified property, but does not convey title, ownership, or rights of possession in any real or personal property.

1.9 “Lessor’s System” shall mean any cable, conduits, ducts, vaults, equipment, or other improvements operated by or for the benefit of Lessor, its customers, or residents.

1.10 “Rent” shall mean a payment amount owed by Lessee to Lessor for use of any fiber optic cable deployed in Conduit Space as defined by the Agreement inclusive of market rate adjustments.

1.11 “Shared Conduit” shall mean conduit space shared by Lessor and Lessee.

2. TERM.

2.1 Initial Term: Unless terminated earlier as provided herein, the initial term of this Agreement shall commence on the Lease Execution Date and shall expire five (5) years thereafter (“Initial Term”).

2.2 Extension Options: Provided Lessee is not in default under the terms of this Agreement at the time each renewal option is exercised or at the commencement of the applicable Extension Term (as hereinafter defined), Lesse shall have the option to extend the Term for three (3) successive period(s) of five (5) year(s) each (individually and collectively, the “Extension Term”) with the commencement date for such Extension Term being the same as

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Attachment: Healdsburg Conduit Lease Sonic FINAL (4371 : Healdsburg Conduit Lease)

the expiration date for the initial term The Extension term shall be on all the terms and conditions of this Agreement. Lessee must exercise its option to extend this Agreement as to each Extension Term by giving City six (6) months written notice prior to the end of the Term of Lessee’s election to exercise its extension option. The Initial Term and any Extension Term shall hereinafter be referred to as the “Term.”

2.3 The parties may extend the Agreement through mutual agreement by way of a written instrument agreed to by both parties.

3. CONSIDERATION.

3.1 Base Rent:

3.1.1 “Concurrent with the Lease Execution Date and on the first business day of each calendar year thereafter, Lessee shall pay to Lessor annual Rent which includes base rent (“Base Rent”), and all other sums required to be paid or by Lessee to Lessor pursuant to this Lease as additional consideration. (“Additional Consideration”). The Base Rent to be paid to Lessor shall be annual Rent in the amount of 76 cents per linear foot for an annual Base Rent of Three Thousand Six Hundred Three Dollars and Ninety-Two Cents ($3,603.92) for use of Conduit Space as described above and as graphically shown in Exhibit A. Rent for any fractional month at the beginning or at the end of the Term shall be prorated based upon a thirty (30) calendar day month. Rent shall be payable, without offset or deduction of any kind or amount, to Lessor at the address specified in Section 12.7 below.

3.1.2 Additional Consideration: As additional consideration for the non-exclusive lease of the Lessor’s Conduit Space, Lessee agrees to procure, provide and install forty-eight (48) strands of Fiber Optic Cable within the Conduit Space identified in Exhibit A, which shall be dedicated to and provided for the exclusive use, ownership and control of the Lessor. Said forty-eight (48) strands shall be installed contemporaneously with and as a part of Lessee’s installation of no more than the two-hundred eighty-eight (288) strands of Fiber Optic Cable described in Exhibit A.

3.2 Annual Adjustment of Base Rent. Beginning on ____________, 2029, the Base Rent shall be increased by five percent (5%) on the first day of the month following the fifth anniversary of the Commencement Date and on each fifth anniversary thereafter (the Adjustment Date(s)) throughout the Term

4. NON-EXCLUSIVE LEASE OF CONDUIT SPACE

4.1 Lessee shall have the right at any time following the full execution of this Agreement to enter upon the Land (Lessor’s right-of-way) for the purpose of making appropriate engineering and boundary surveys, inspections, soil test borings, other reasonably necessary tests in constructing the Lessee’s System. Lessor hereby grants to Lessee a non-exclusive, irrevocable license for the Term of the Lease, to access and enter Lessor’s System as identified in Exhibit A,

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Attachment: Healdsburg Conduit Lease Sonic FINAL (4371 : Healdsburg Conduit Lease)

attached hereto and incorporated by this reference, in order to place, occupy, operate, repair, replace, restore, protect, maintain, and remove Fiber Optic Cable and related components of Lessor’s System

4.2 Prior to commencing construction of the Lessee System, Lessee and its Contractors shall obtain the necessary licenses, encroachment permits, and plan approvals from Lessor and shall submit necessary insurance documentation to Lessor for Lessee’s work in the Conduit Space.

4.3 During construction Lessee shall be responsible for the overall condition of the existing lines and cable, if any, presently within Conduit Space. Upon completion of the work, if deemed necessary by Lessor, Lessee will conduct testing of any existing lines and cables to ensure that no damage was caused by Lessee’s work. In the event of damage caused by Lessee’s activities, Lessee shall replace all damaged lines and cable and will be responsible for repairing any damage and in a manner that meets or exceeds current Lessor’s standards.

4.4 During construction and while performing maintenance, Lessee and/or its Contractors shall follow all City of Healdsburg construction requirements, CPUC General Order 128 (Construction of underground electric supply and communication systems), USA Dig-Alert.

OSHA the National Electric Code, the National Electrical Safety Code and all laws, rules, regulations, codes, ordinances, permit conditions that govern, address, or apply-to construction of underground communications systems in public rights of way in the City of Healdsburg.

4.5 Lessee shall pay when due all claims for labor or materials furnished Lessee for Lessee’s work in the Conduit Space and construction or use of Lessee’s System. Lessee shall not permit any mechanic liens, stop notices, or any other liens against the Land or Conduit Space, or any of Lessee’s interests under this Lease, for any labor or materials furnished to Lessee in connection with work performed on or about the Land or Conduit Space by or at the direction of Lessee. Lessee shall indemnify, hold harmless and defend Lessor (by counsel reasonably satisfactory to Lessor) from any liens and encumbrances arising out of any work performed or materials furnished by or at the direction of Lessee. In the event that Lessee shall not, within ten (10) days following the imposition of any such lien or stop notice, cause such lien or stop notice to be released of record by payment or posting of a proper bond, Lessor shall have, in addition to all other remedies provided herein or by law, the right, but not the obligation, to cause the same to be released by such means as it may deem proper, including payment of the claim giving rise to such lien. All such sums paid by Lessor and expenses reasonably incurred in connection therewith, including attorneys’ fees and costs, shall be payable to Lessor by Lessee on demand.

4.6 Upon the completion of initial construction the Lessee shall submit to Lessor a complete set of as-built drawings, using both electronic and paper media, showing the modification of Lessor’s existing infrastructure and placement of Lessee's System within the Shared Conduit and/or Land.

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Attachment: Healdsburg Conduit Lease Sonic FINAL (4371 : Healdsburg Conduit Lease)

4.7 Lessor recognizes and agrees that Lessee may use Lessee’s System to provide Lessee’s services to current and future customers of Lessee, and that in order to do so, Lessee will need to access the Land and Lessee’s FOC in the Shared Conduit from time to time in order to place vaults, handholes and related facilities and equipment that will be used, inter alia, for fiber splicing and slack fiber loop storage. Prior to undertaking such additional construction, Lessee shall apply for and obtain any required encroachment and/or excavation permits from Lessor. After such additional construction is complete, Lessee shall provide Lessor with an updated Exhibit A that reflects the new construction.

4.8 No use of the Lessor’s System or Conduit Space by Lessee shall vest Lessee with any easement or any ownership interest or other real property right by virtue of the activities contemplated by this Agreement. It is acknowledged and agreed that Lessor shall retain all rights of use of Conduit Space not specifically granted to Lessee in this Agreement.

5. Maintenance and Repair

5.1 Lessee shall be responsible for the maintenance and repair of Lessee's System. Lessor will be responsible for the maintenance and repair of Lessor's System.

5.2 Unless Lessor determines in its sole and exclusive discretion that escorted access is not required, escorted access to the "Shared Conduit" network as shown in Exhibit A shall be granted to Lessee for the repair and maintenance of its systems. Except in cases of an emergency, Lessee shall notify Lessor forty-eight (48) hours in advance in writing and obtain approval of Lessee’s proposed maintenance or repair activities to be performed within Lessor right-of-way in order to coordinate those activities with Lessor’s operations. In cases of emergency, any construction, maintenance, and repair work performed without written notification to Lessor shall be limited to the work necessary to eliminate the emergency or otherwise protect the public health and safety, and Lessee shall notify Lessor as soon as possible of the emergency and any work performed to eliminate it or protect the public health and safety. After notification to Lessor by Lessee, Lessee shall be authorized to perform further emergency restoration maintenance activities of Lessee's System at a mutually agreed upon time and date for escorted access unless Lessor determines in its sole and exclusive discretion that escorted access is not required. Any damage to Lessor’s System or Conduit Space or any other infrastructure owned or managed by Lessor shall be promptly repaired by Lessee. Lessor’s consent to Lessee’s construction, maintenance, and repair activities under this paragraph shall not be unreasonably withheld.

5.3 Service provided by Lessor to locate underground Lessor services and Shared Conduit (USA Dig-Alerts) will only cover Lessor's own assets within the Shared Conduit. If damage is incurred during a mismark, Lessor will not be responsible for Lessee's damaged cable.

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Attachment: Healdsburg Conduit Lease Sonic FINAL (4371 : Healdsburg Conduit Lease)

6. Relocation

6.1 Should Lessor or State, Federal or private projects require the relocation of the Shared Conduit or Lessee's System, Lessee shall be responsible for the relocation of its own cable, conduit, vaults, and facilities at no cost to Lessor.

7. Compliance with Laws.

7.1 During the Term, Lessee shall comply, at its own cost and expense, with all applicable laws, ordinances, codes, rules, regulations, orders, and other lawful requirements of all governmental bodies having jurisdiction, which are applicable to, or by reason of, Lessee’s particular use of the Conduit Space, and its construction and/or installation of improvements at or within the Conduit Space, including without limitation, payment of prevailing wages if applicable; the orders, rules and regulations of the National Board of Fire Underwriters, or any other body hereafter constituted exercising similar functions, which may be applicable to the Conduit Space, the fixtures and equipment therein or thereon or the use thereof; and the requirements of all policies of public liability, fire and all other types of insurance at any time in force with respect to Lessee’s System, and the fixtures and equipment therein and thereon.

7.2 Hazardous Materials.

Lessee agrees that it will not use, generate, store, or dispose of any Hazardous Material on, under, about or within the Land in violation of any law or regulation. Within thirty (30) days of the Commencement Date, Lessee shall furnish Lessor with applicable Material Safety Data Sheets ("MSDS") for any chemicals used by Lessee for the construction or maintenance of the Shared Conduit and Lessee's System. If Lessor requires updates to the Material Safety Data Sheets (MSDS), Lessee shall obtain such updates at its sole cost and expense. Lessee agrees to defend, indemnify, and hold harmless Lessor, the City, and their agents and employees against any and all losses, liabilities, claims and/or costs (including reasonable attorney's fees and costs) arising from any breach of any representation, warranty or agreement contained in this paragraph. As used in this section, "Hazardous Materials" shall mean any material, substance or waste that is or has the characteristic of being hazardous, toxic, ignitable reactive, flammable, explosive, radioactive or corrosive, including, without limitation, petroleum, solvents, lead, acids, pesticides, paints, printing ink, PCBs, asbestos, materials commonly known to cause cancer or reproductive harm and those materials, substances and/or wastes, including wastes which are or later become regulated by any local governmental authority, the state in which Lessee’s System is located or the United States Government, including, but not limited to, substances defined as "hazardous substances," "hazardous materials," "toxic substances" or "hazardous wastes" in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. §9601, et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. § 1801, et seq.; the Resource Conservation and Recovery Act; all environmental laws of the state where Lessee’s System is located, and any other environmental law, regulation or ordinance now existing or hereinafter enacted. This section shall survive the termination of this Agreement.

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8. Labor Provisions

8.1. During the Term, and in performance of this Agreement, Lessee will not discriminate against any employee, subcontractor, or applicant for employment because of race, religion, creed, color, national origin, age, physical, or mental handicap or disability, medical condition, marital status, sex, or sexual orientation. Lessee shall ensure that applicants are employed and that employees are treated during employment without regard to their race, religion, creed, color, national origin, age, physical, or mental handicap or disability, medical condition, marital status, sex, or sexual orientation.

8.2. Lessee acknowledges and agrees any work performed by or on behalf of Lessee in the construction, operation or maintenance of Lessee's System which are paid for in whole or in part by Lessor or which are considered to have been paid for in whole or in part by Lessor (e.g. by virtue of any rents that are reduced, waived or forgiven) will constitute “[c]onstruction, alteration, demolition, installation, or repair work done under contract and paid for in whole or in part out of public funds ... “. (California Labor Code section 1720.) Lessee shall comply with any applicable laws, rules and regulations related to construction wages and other construction matters, if and to the extent applicable to the Land or Shared Conduits after the Commencement Date including, but not limited to, the provision of Labor Code Section l720 et seq. From and after the Commencement Date, Tenant shall indemnify, defend (with counsel reasonably acceptable to Landlord), and hold harmless the Landlord against any claim for damages, compensation, fines, penalties or other amounts arising out of the failure or alleged failure of any person or entity (including Lessee and its contractors) to pay prevailing wages as determined pursuant to Labor Code Sections 1720 et seq., to employ apprentices pursuant to Labor Code Sections 1777.5 et seq., to require any contractor or subcontractor listed on a bid proposal for a public works project be registered with the Department of Industrial Relations pursuant to Labor Code Section 1725.5, to comply with the other applicable provisions of Labor Code Sections I 720, et seq. and 1777.5 et seq., to meet the conditions of Section 1771.4 of the Labor Code, to require the general contractor for any prevailing wage work to furnish electronic certified payroll records directly to the Labor Commissioner or to comply with any other regulation related to public contracts. Lessee's obligation to indemnify, defend and hold harmless under this Section

8.2 shall survive termination of this Lease, and shall be interpreted broadly so as to apply to any legal or administrative proceeding, arbitration, or enforcement action.

9. Hold Harmless and Indemnification.

Lessee shall indemnify, defend and hold Lessor and Lessor and its officers, its officials, employees, volunteers, and agents (“Lessor Related Parties”) harmless against and from all liabilities, obligations, damages, penalties, claims, actions, costs, charges, judgment and expenses (including reasonable attorneys' fees, costs and disbursements) (collectively referred to as "Losses"), arising from (a) Lessee’s use of, or any activity done, permitted or suffered in or about the Conduit Space or Land (b) any activity done, permitted or suffered by Lessee or Lessee's agents, contractors, invitees or licensees in or about the Conduit Space or Land (c) any

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act, neglect, fault, willful misconduct of Lessee or Lessee's agents, or (d) from any breach or default in the terms of this Lease by Lessee or Lessee's agents, except to the extent such claims arise out of or relate to the gross negligence or willful misconduct of Lessor. If any action or proceeding is brought against Lessor by reason of any such claim, upon notice from Lessor, Lessee shall defend the same at Lessee's expense by counsel reasonably satisfactory to Lessor.

As a material part of the consideration to Lessor, Lessee hereby releases Lessor and Lessor Related Parties from responsibility for, waives its entire claim of recovery for and assumes all risks of damage to property or injury to person in or about the Conduit Space or Land from any cause whatsoever except to the extent caused by the gross negligence or willful misconduct of Lessor or any Lessor Related Parties.

10. Insurance.

10.1 Lessee's Insurance. Lessee shall procure and maintain for the Term of the Lease, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the Lessee’s use of the Conduit Space or Land. The Lessee shall bear the cost of such insurance. Lessee shall maintain the following types of insurance with limits no less than the following as set forth below.

10.1.1 Commercial General Liability Coverage
$2,000,000 per occurrence for bodily injury, personal injury, and property damage. The policy shall be endorsed to provide Fire Legal Liability or Damage to Rented Premises coverage, as well as for Products and Completed Operations. Each policy of liability insurance required by this Section shall: (a) contain a cross liability endorsement or separation of insureds clause; (b) provide that any waiver of subrogation rights or release prior to a loss does not void coverage; (c) provide that it is primary to and not contributing with, any policy of insurance carried by Lessor covering the same loss; (d) provide that any failure to comply with the reporting provisions shall not affect coverage provided to Lessor; and (e) name Lessor, the City of Healdsburg, it’s officers, it’s officials, employees, volunteers, and agents and such other parties in interest as Lessor may from time to time reasonably designate to Lessee in writing, as additional insureds in an Additional Insured Endorsement. Such additional insureds shall be provided at least the same extent of coverage as is provided to Lessee under such policies. The additional insured endorsement shall be in a form at least as broad as endorsement form number CG 20 1 I 01 96 promulgated by the Insurance Services Office.

10.1.2 Worker’s Compensation Insurance
Lessee shall, at Tenant's expense, maintain in full force and effect during· the Term of this Lease, worker's compensation insurance with not less than the minimum limits required by law, and employer's liability insurance with a minimum limit of coverage of One Million Dollars ($1,000,000.00).

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10.1.3 Commercial Automobile Liability
Lessee shall maintain in full force and effect during the Term of this Lease, Commercial Automobile Liability. Such policy shall be m an amount of not less than Two Million Dollars ($2,000,000) combined single limit.

10.1.4 Subrogation Waiver
Lessee agrees that in the event of loss due to any of the perils for which it has agreed to provide worker’s compensation insurance, and comprehensive general and automotive liability insurance, Lessee shall look solely to its insurance for recovery. Lessee hereby grants to Lessor, on behalf of any insurer providing insurance to either Lessee or Lessor with respect to the agreement herein, a waiver of any right to subrogation which any such insurer of Lessee may acquire against Lessor by virtue of the payment of any loss under such insurance. Lessee’s insurance carriers shall provide endorsements to the insurance policies accordingly.

10.1.5 Additional Insured
City of Healdsburg, its officers, its officials, employees, volunteers, and agents and any other party designated by Lessor, shall be named as an additional insured under all insurance coverages, except on worker’s compensation and professional liability insurance policies. The naming of an additional insured shall not affect any recovery to which such additional insured would be entitled under this policy if not named as such additional insured. An additional insured named herein shall not be held liable for any premium, deductible portion of any loss, or expense of any nature on this policy or any extension thereof. Any other insurance held by an additional insured shall not be required to contribute anything toward any loss or expense covered by the insurance provided by this policy.

10.1.6 Notice of Cancellation
Lessee’s insurance policies shall be endorsed to require the insurer to provide Lessor with at least thirty days’ written notice of cancellation.

10.1.7 Sufficiency of Insurance
The insurance limits required by Lessor are not represented as being sufficient to protect Lessee. Lessee is advised to consult Lessee’s insurance broker to determine adequate coverage for Lessee. Lessee’s insurance policies shall be endorsed stipulating that Lessee’s insurance is primary, and that Lessor’s self-insurance program and excess insurance policies shall not be called upon to contribute to a loss that should otherwise be paid by the Lessee’s insurer.

10.1.8 Insurer Acceptability
Lessee’s insurers must be domiciled in the United States of America. They must meet a minimum A.M. Best & Co. rating of “A-” or better and financial size category ratings of "VII" or better according to the latest edition of the Best Key Rating Guide. All insurance

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companies issuing such policies shall be admitted carriers licensed to do business in the state where the Property is located. Any deductible amount under such insurance shall not exceed $5,000. Lessee shall provide to Lessor, upon request, evidence that the insurance required to be carried by Lessor pursuant to this Section, including any endorsement affecting the additional insured status, is in full force and effect and that premiums therefor have been paid. Lessee shall, at least thirty (30) days prior to expiration of each policy, furnish the Lessor with certificates of renewal thereof and shall provide Lessor with at least thirty days prior written notice of any cancellation or modification.

10.1.9 Evidence of Insurance
Lessee and its contractors shall deliver or cause to be delivered promptly to Lessor a certificate(s) of insurance evidencing the insurance required by this Lease and shall also deliver prior to expiration of any such policy, a certificate of insurance evidencing each renewal policy covering the same risks.

11. Termination
This Agreement may be terminated on prior written notice by either party upon a default of any material covenant or term hereof by the other party, which default is not cured within sixty (60) days of receipt of written notice of default; provided, however, that if such default cannot be cured within such sixty (60) day period and the defaulting party is proceeding with diligence, best efforts, without interruption, and in good faith to cure such default, then such sixty (60) day cure period shall be extended to such date as shall be necessary for the defaulting party diligently to cure such default; and provided further that the grace period for any monetary default is ten (l0) days from receipt of written notice. If at any time following the initial sixty (60) day cure period, Lessor questions whether or believes that Lessee is not or has not diligently prosecuted such cure to completion, Lessor and Lessee shall meet, shall each provide information related to the cure in progress requested by the other party, and shall work together in good faith to find a mutually acceptable solution to the uncured default. Within sixty (60) days of the expiration or earlier termination of this Agreement, Lessee shall remove, in compliance with the construction requirements specified at Section 4 above, all of Lessee's Systems and repair any damage to the Conduit Space, Lessor's Systems or the Land caused by such removal activities. Should Lessee fail to remove any of Lessee's System within said sixty (60) day period, Lessor may remove any remaining items of Lessee's Systems and dispose of said property as it sees fit at Lessee's sole cost and expense. Alternatively, upon the expiration or termination of this Agreement, Lessor may elect to allow Lessee’s fiber optic cable to remain in place in Lessor’s Conduit Space, with ownership of such fiber optic cable transferred from Lessee to Lessor.

12. Miscellaneous

12.1 This Agreement shall be interpreted and enforced in accordance with the laws of the State of California and Lessor and Lessee hereby irrevocably consent to the jurisdiction and of such state and venue for any such dispute in the State and Federal Courts in and for the County of Sonoma.

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12.2 If any section, term, or provision of this Agreement is held invalid by a court of competent jurisdiction, all other sections, terms, or severable provisions of this Agreement shall not be affected thereby but shall remain in full force and effect.

12.3 Lessor and Lessee each represent and warrant to the other that neither it nor its officers or agents nor anyone acting on its behalf has dealt with any real estate broker or agent in the negotiation or preparation of this Agreement.

12.4 If Lessee is a corporation, partnership, trust, association or other entity, Lessee and each person executing this Lease on behalf of Lessee does hereby covenant and warrant that (a) Lessee is duly incorporated or otherwise established or formed and validly existing under the laws of its state of incorporation, establishment or formation, (b) Lessee has and is duly qualified to do business in California, (c) Lessee has full corporate, partnership, trust, association or other power and authority to enter into this Lease and to perform all Lessee's obligations hereunder, and (d) each person (and all of the persons if more than one signs) signing this Lease on behalf of Lessee is duly and validly authorized to do so.

12.5 Whenever a period of time is prescribed for the taking of an action by Lessor or Lessee (other than the payment of Rent), the period of time for the performance of such action shall be extended by the number of days that the performance is actually delayed due to strikes, acts of God, shortages of labor or materials, war, terrorist acts, pandemics, civil disturbances, extreme weather and other causes beyond the reasonable control of the performing party ("Force Majeure").

12.6 This Agreement contains all of the agreements of the parties hereto with respect to any matter covered or mentioned in this Agreement, and no prior agreements or understandings pertaining to any such matter shall be effective for any purpose. No provision of this Agreement may be amended or added except by an agreement in writing signed by the parties hereto or their respective successors-in-interest.

12.7 All notices, requests or other communications required or permitted to be given in connection with this Agreement shall be in writing and shall be personally delivered (with prompt confirmation by registered or certified mail, postage prepaid), or by commercial courier service, or by registered or certified mail, postage pre-paid, or transmitted by electronic mail addressed to the party whom it is directed at the following addresses, or at such other addresses as may be designated by notice from such party in the manner provided herein:

To Lessor: City of Healdsburg
401 Grove Street
Healdsburg, CA 95448
Attn: City Manager

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To Lessee: Sonic Telecom, LLC
2260 Apollo Way
Santa Rosa, CA 94507
Attn: Nathan Patrick, CTO
Notices which are delivered by hand shall be deemed received upon delivery; notices which are deposited in the United States Mail in accordance with the terms of this Section shall be deemed received three (3) days after the date of mailing and notices delivered by commercial courier service shall be deemed received the date of actual delivery. Notices which are delivered by electronic mail shall be deemed to have been delivered on the date sent if sent by 5:00 P.M.

Pacific Time on any business day, with delivery made after such hours to be deemed delivered on the following business day, provided that the sender does not receive any failure of delivery notice. The foregoing addresses may be changed by notice to the other party as herein provided.

12.8 If taxes are assessed on Lessee's system, or any portion thereof, Lessee shall pay said taxes directly to the taxing authority or shall reimburse Lessor for Lessee's share of said taxes.

12.9 No member, official, officer, employee, agent, or representative of Lessor shall be personally liable to Lessee, or any successor in interest, in the event of any default or breach by Lessor or for any amount which may become due to Lessee or any successor in interest or on any obligations under the terms of this Lease. No member, official or employee of Lessor shall have any personal interest, direct or indirect, in this Lease nor shall any such member, official or employee participate in any decision relating to the Lease which affects his or her personal interests or the interests of any corporation, partnership, company, trust, foundation, or association in which he or she is directly or indirectly interested. Lessee warrants that it has not paid or given, and will not pay or give, any third party any money or other consideration for obtaining this Lease.

12.10 This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument.

12.11 Lessee shall not: (i) assign, convey, mortgage, pledge, encumber or otherwise transfer (whether voluntarily or otherwise) this Lease or any interest under it without notice to and the written consent of Lessor, which shall not be unreasonably withheld; (ii) allow any transfer of or any lien upon Lessee’s interest by operation of law; (iii) sublet the Conduit Space or any part thereof; or (iv) permit the use or occupancy of the Conduit Space or any part thereof by anyone other than Lessee and its employees.

12.12 Pursuant to section 107.6(a) of the State Revenue and Taxation code Lessor hereby gives notice that the property interests to Lessee under this Lease may be subject to property taxation as a possessory interest and the Tenant acknowledges that it shall be subject to payment of property tax if a possessory interest tax is levied on the property interest.

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12.13 Except where clearly and expressly provided otherwise in this Lease, the capacity of the Lessor in this Lease shall be as owner and lessor of property only (“Proprietary Capacity”), and any obligations or restrictions imposed by this Lease on the Lessor shall be limited to that capacity and shall not relate to, constitute a waiver of, supersede or otherwise limit or affect its governmental capacities, including enacting laws, inspecting structures, reviewing and issuing permits, and all of the other legislative and administrative or enforcement functions pursuant to federal, state or local law (“Governmental Capacity”). When acting in its Proprietary Capacity, discretionary actions may be undertaken by the City Manager or other designees as designated by the City Manager to the extent otherwise provided for in this Lease. In addition, nothing in this Lease shall supersede or waive any discretionary or regulatory approvals required to be obtained from the Lessor under applicable law, nor guarantee that the City, in its Governmental Capacity, will grant any particular request for a license, permit or other regulatory approval. Lessee understands that the Lessor may grant or deny such request in its sole discretion and may impose such terms and conditions as it deems consistent with that discretion and applicable law.

12.14 Lessee may decommission and abandon Lessee’s System in its sole discretion, provided that Lessee must first notify Lessor of any such action at least thirty (30) days prior, and work with Lessor in good faith to address any desire on the part of Lessor to have Lessee’s System removed from Lessor’s System. The Lessor shall have the option to assume ownership of any of Lessee’s System abandoned in-place. Notwithstanding the foregoing, upon decommission or abandonment, Lessee shall restore Lessor’s System to a condition reasonably acceptable to Lessor and repair any damage to the impacted area. Notwithstanding the foregoing, Lessee shall not remove the forty-eight (48) strands of FOC provided to the City as Additional Consideration under this lease.

12.15. Incorporation of Recitals. The Recitals above constitute material and operative provisions in this Agreement. They are, by this reference, incorporated into the body of this Agreement as if the same had been set forth in the body of this Agreement. [Remainder of page intentionally blank; signatures follow.]

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IN WITNESS WHEREOF, LESSOR and LESSEE have respectively signed this Lease as of the day and year first above written.

LESSOR: LESSEE:

City of Healdsburg, a municipal corporation
By:

Jeff Kay, City Manager
Sonic Telecom, LLC
By:

Nathan Patrick, CTO
ATTEST
Raina Allan, City Clerk _____________, _____________
APPROVED AS TO FORM:

Samantha Zutler, City Attorney
APPROVED AS TO FORM:
/s/ Stephen P. Bowen
Counsel to Sonic Telecom, LLC

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EXHIBIT A
Lessor’s Right of Way
[Attached]

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Attachment: Final Conduit Exhibit (4371 : Healdsburg Conduit Lease)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: April 15, 2024
SUBJECT: Communication Bridge Contract Amendment
PREPARED BY: Lani Buckheit, Administrative Analyst I
STRATEGIC INITIATIVE(S):

Provide Effective Governance
RECOMMENDED ACTION(S):

Adopt a Resolution approving an amendment to the Professional Services Agreement with Julie Burns DBA The Communication Bridge for translation and interpretation services at public meetings, authorizing the City Manager to execute the amendment, extending the contract term to December 31, 2024, and increasing the not to exceed amount to $75,000.

BACKGROUND:

In July of 2022, the City of Healdsburg entered into a Professional Services Agreement with Julie Burns DBA The Communication Bridge, LLC for translation and interpretation services at City Council meetings. The Communication Bridge has the necessary qualifications and expertise to provide these specialized services. As described in the original agreement, their scope of work includes document translation, proofreading, and remote or in-person simultaneous or consecutive interpretation for City Council meetings. The current contract has expended all the available funds and requires Council action to extend it.

DISCUSSION/ANALYSIS:

To ensure no disruption in services, staff proposes extending the current Professional Services Agreement through December 31, 2024, and increasing the not-to-exceed amount by $25,000 to $75,000 while staff develops and releases a request for proposals inviting bids for a new contract. Upon completion of the request for proposal process, staff will return to Council for authorization to enter into a new contact.

Staff is requesting Council approve an amendment to the original Professional Services Agreement, increasing the total agreement not-to-exceed amount to $75,000, and extending the agreement’s expiration date to December 31, 2024. Additionally, staff are recommending that Council authorize the City Manager to execute the amendment on behalf of the City.

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ALTERNATIVES:

The City Council may choose not to approve the amendment as proposed, in which case staff request further direction from Council.

FISCAL IMPACT:

The proposed action is to increase the existing $50,000 contract with The Communication Bridge, LLC by $25,000 for a total not to exceed amount of $75,000. There are sufficient appropriations available in the City Manager’s Office budget to support the additional contract costs.

ENVIRONMENTAL ANALYSIS:

The Professional Services Agreement with Julie Burns DBA The Communication Bridge is not a “project” pursuant to California Environmental Quality Act (CEQA) Guidelines 15378(b)(4)(5) because the Professional Services Agreement does not involve a commitment to any specific project that may impact the environment. Therefore, no environmental review is required.

ATTACHMENT(S):

Resolution

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CITY OF HEALDSBURG
RESOLUTION NO. -2024

ADOPT A RESOLUTION APPROVING AN AMENDMENT TO

THE PROFESSIONAL SERVICES AGREEMENT WITH JULIE

BURNS DBA THE COMMUNICATION BRIDGE

AUTHORIZING THE CITY MANAGER TO EXECUTE THE

AMENDMENT, EXTENDING THE CONTRACT TERM TO
DECEMBER 31, 2024 AND INCREASING THE NOT TO
EXCEED AMOUNT TO $75,000
WHEREAS, the City has determined that it requires the following professional services from a consultant for translation and interpretation services; and WHEREAS, in July of 2022, the City of Healdsburg entered into a Professional Services Agreement with The Communication Bridge for translation and interpretation services at public meetings and outreach events; and
WHEREAS, the consultant further represents that it is willing to accept responsibility for performing such services in accordance with the terms and conditions set forth in the original agreement; and
WHEREAS, the original agreement current contract has expended all the available funds; and
WHEREAS, to ensure no disruption in services, staff proposes extending the current professional services agreement through December 31, 2024, and increasing the not-to-exceed amount by $25,000 to $75,000 while staff waits to receive requests for proposals.

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

1. Approves an amendment to the Professional Services Agreement with The Communication Bridge for translation and interpretation services at public meetings; and

2. Authorizes the City Manager to execute the amendment on behalf of the City; and

3. Extends the contract term to December 31, 2024, and increases the not to exceed amount to $75,000.

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Attachment: Resolution (4425 : Communication Bridge Amendment to PSA) Resolution No. -2024

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Healdsburg this 15 th day of April, 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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Attachment: Resolution (4425 : Communication Bridge Amendment to PSA)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: April 15, 2024
SUBJECT: Ordinance Amending Healdsburg Municipal Code Section 2.08 Related to City Councilmember Compensation
PREPARED BY: Raina Allan, City Clerk
STRATEGIC INITIATIVE(S):

Provide Effective Governance
RECOMMENDED ACTION(S):

Pass an Ordinance amending Section 2.08.020 of the Healdsburg Municipal Code.

COMMUNITY ENGAGEMENT/OUTREACH:

Not applicable.

BACKGROUND:

On June 29, 2023, Governor Newsom signed Senate Bill 329, which increases the maximum amount of salary that Councilmembers may receive. SB 329, codified at Government Code § 36515, went into effect on January 1, 2024. Compensation increases cannot be effective until a new or incumbent Council Member is seated so, at the earliest, December 2024. On March 18, 2024, the City Council introduced this ordinance for a first reading.

DISCUSSION/ANALYSIS:

SB 329 amends Government Code § 36516 to increase the authorized maximum salary for each Councilmember with the intent of expanding the pool of potential candidates by mitigating the financial burden associated with serving. The permitted increases are tied to population. For Healdsburg, which has a population of approximately 11,400, Councilmembers may receive up to $950 per month. Healdsburg Councilmembers currently receive $150 per month. The last time the Council adjusted its salary was in 1992. The attached Ordinance would increase compensation to $950 per month for each Councilmember.

Any increases in compensation do not take effect until a new or incumbent Councilmember is seated.1If Councilmembers have staggered terms, the change in compensation may apply to the 1 Cal. Gov. Code § 36516.5.

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entire Council when any Councilmember begins a new term.2 Some Healdsburg Councilmembers are up for election in November 2024 so, while the Council may pass an ordinance increasing its compensation at any time, the earliest that the increase may be effective is December 2024.

ENVIRONMENTAL STEWARDSHIP:

Not applicable.

ALTERNATIVES:

The City Council could decline to pass the ordinance, or direct staff to revise the draft presented.

FISCAL IMPACT:

The current salary for each Councilmember is $150 a month for a total of $1,800 annually. The City has five Councilmembers requiring an overall annual salary budget of $9,000. The proposed Ordinance increases the maximum salary of a Councilmember to $950 a month for a total of $11,400 annually. The total annual cost of increasing all Councilmember salaries to the allowed maximum is $57,000, representing a $48,000 annual increase to the overall salary budget. The proposed Ordinance will take effect when a new or incumbent Councilmember is seated in the upcoming fiscal year and will be accounted for in the budget development process. No additional appropriations are required in the current fiscal year.

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):

Council Compensation Ordinance
2 Id.

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CITY OF HEALDSBURG
ORDINANCE NO. _______

AN ORDINANCE OF THE CITY OF HEALDSBURG

AMENDING HEALDSBURG MUNICIPAL CODE SECTION

2.08.020 TO SET THE COMPENSATION FOR EACH MEMBER

OF CITY COUNCIL
WHEREAS, the City of Healdsburg is a general law city; and WHEREAS, the Healdsburg City Council last increased the salaries for all Councilmembers in 1992, via Ordinance 878 § 1, which increased the salary to $150 per month; and
WHEREAS, Senate Bill 329, effective January 1, 2024, amended Government Code Section 36516 to increase the maximum salary permitted for City Councilmembers. The increases are based on population, so the maximum salary for Healdsburg Councilmembers is $950 per month; and
WHEREAS, as noted by the State legislature in SB 329, the Councilmember compensation schedule for general law cities has not been adjusted since 1984, meaning that City Council compensation has not kept pace with inflation; and
WHEREAS, allowing adjustments for inflation may help city councils become more diverse because increased compensation can provide individuals from sufficient income to help ensure that they can serve the public while also supporting their families; and WHEREAS, increasing compensation for Councilmembers reflects the significant time commitment required to serve as a Councilmember; and
WHEREAS, Section 36516 requires that any increase in Councilmember compensation by Ordinance.

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

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

Section 2. Amendment of Code
Section 020 of Chapter 2.08, Salaries of members of the City Council, is hereby replaced in its entirety to read as follows:

2.08.020 Salaries of members of the City Council
Under the authority of the Government Code Section 36516, each member of the City Council

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Attachment: Council Compensation Ordinance (4431 : Council Compensation - 2nd Reading) Ordinance No.

4892-5976-8234 v1
shall receive a monthly salary of $950.00. Salaries shall be adjusted according to the provisions of Section 36516.5 of the Government Code, as amended from time to time.

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

Section 4. Effective Date
This Ordinance shall take effect thirty (30) days after passage by the City Council. Increases in compensation shall take effect upon commencement of a new term of office by any Council Member.

Section 5. Publication
The City Clerk is directed to publish this Ordinance as required by State law.

This ordinance was introduced by the City Council of the City of Healdsburg, County of Sonoma, at a regular meeting thereof on the 18th day of March, 2024, and passed and adopted on the 15th day of April, 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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Attachment: Council Compensation Ordinance (4431 : Council Compensation - 2nd Reading)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: April 15, 2024
SUBJECT: Resolution in Support of "The Sonoma County Childcare and Children's Health Initiative"
PREPARED BY: Lani Buckheit, Administrative Analyst I
STRATEGIC INITIATIVE(S):

Provide Effective Governance
Maintain and Enhance Public Health and Safety
RECOMMENDED ACTION(S):

Adopt a Resolution Supporting “The Sonoma County Childcare and Children’s Health Initiative” sales tax measure on the November 5, 2024, Sonoma County Ballot.

COMMUNITY ENGAGEMENT/OUTREACH:

The Our Kids Our Future Campaign Committee is focusing efforts on fundraising and launching a campaign to persuade voters to support the sales tax measure.

BACKGROUND:

Our Kids Our Future is a voter-led campaign to pass the Sonoma County Childcare & Children's Health Initiative, which will establish a local revenue stream dedicated to supporting our youngest residents. At the March 18, 2024, Council Meeting, the City Council asked to agendize a discussion on supporting this ballot measure.

DISCUSSION/ANALYSIS:

The Sonoma County Childcare and Children's Health Initiative is a proposed ¼ cent countywide sales tax that is estimated to raise approximately $30 million annually. The Sonoma County Registrar of Voters has confirmed that the measure achieved a sufficient number of signatures to qualify for the November 2024 ballot. It needs a simple majority to pass.

Sixty percent of the revenue will be dedicated to expanding access to childcare and early learning in Sonoma County including pay for employees, workforce growth and expansion of the childhood network. The remaining 40% will be directed to support children's health and early development including perinatal and early childhood mental health, pediatric screening and treatment, and assisting children facing issues like homelessness. Based on local needs, the

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Advisory Council will make annual recommendations about specific strategies to address each area of expenditure to the First 5 Sonoma County Commission, who will administer the revenue.

A resolution expressing support for this initiative is attached for the City Council’s consideration. The City Council is permitted to consider and take action to express the opinion of the City Council’s supporting or opposing a measure that expands access to quality childcare and promotes children's health and wellbeing, so long as it does so at an open public meeting. (See League of Women Voters v. Countywide Criminal Justice Coordinating Committee (1988) 203 Cal.App.3d 529, 560.

ENVIRONMENTAL STEWARDSHIP:

Not Applicable.

ALTERNATIVES:

Council discretion. If the City Council does not elect to support the initiative the alternatives are to not take an official position or vote to oppose the measure.

FISCAL IMPACT:

There is no direct fiscal impact to the City of Healdsburg from this action.

ENVIRONMENTAL ANALYSIS:

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

ATTACHMENT(S):

Resolution

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CITY OF HEALDSBURG
RESOLUTION NO. ___-2024

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG SUPPORTING "THE SONOMA COUNTY
CHILDCARE AND CHILDREN’S HEALTH INITIATIVE"

SUBMITTED TO THE VOTERS OF SONOMA COUNTY AT
THE NOVEMBER 5, 2024, ELECTION
WHEREAS, this Measure is an initiative measure proposing to implement a one-quarter cent sales tax in Sonoma County to improve and expand access to quality childcare & promote children's health and wellbeing; and
WHEREAS, this Measure is an initiative submitted to the voters of Sonoma County at the election to be held November 5, 2024; and
WHEREAS, this Measure aligns with the City’s goal to increase revenue sources that aid in the development to create more efficient, effective, and sustainable childcare services in Healdsburg and the County of Sonoma.

NOW, THEREFORE, BE IT RESOLVED, the City Council of City of Healdsburg does hereby resolve that the City of Healdsburg supports this Measure.

PASSED, APPROVED, ADOPTED, this 15th day of April 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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Attachment: Resolution (4435 : Support for Our Kids Our Future Initiative)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: April 15, 2024
SUBJECT: Amendment to the Promissory Note for the Randall Apartments Project PREPARED BY: Stephen Sotomayor, Housing Director
STRATEGIC INITIATIVE(S):

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

Adopt a Resolution approving an amendment to the Promissory Note terms with Eden Mill District, LP for the Randall Apartments project, and authorizing the City Manager to finalize the amendment and all related documents necessary for this transaction.

COMMUNITY ENGAGEMENT/OUTREACH:

This item will be considered at a public meeting where time will be provided for public comment on the proposed loan. The development of the affordable housing on Lot 7 of the Mill District project, now named the Randall Apartments, has been the subject of many community and public meetings in which time for public comment was provided.

BACKGROUND:

In 2018, Replay Healdsburg, LLC submitted an application to the City of Healdsburg for development of a mixed-use project, the Mill District Project, on a 9.59-acre site located at 146 and 164 Healdsburg Avenue. The Planning Commission held several community workshops on the Project prior to conducting a public hearing and approving a Master Conditional Use Permit (CUP 2017-02) in January 2019.

In March 2019, the City Council conducted a public hearing and approved a tentative map (TM 2017-01) for the Project and in April 2019, the City Council adopted a Development Agreement for the Project. In June 2019, the Planning Commission conducted a public hearing and approved a Design Review permit (DR 2019-10) for a 41-unit affordable housing development on Lot 7 of the Mill District. In February 2020, the Planning Commission conducted a public hearing and approved a revision to DR 2019-10.

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On April 6, 2020, the Healdsburg City Council approved an Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants between the City of Healdsburg and Replay Healdsburg, LLC for the Mill District Project (Lot 7) governing Replay’s obligation to provide 41 units of affordable housing. Thereafter, on April 21, 2021, Replay assigned its rights and obligations related to the development of affordable housing on Lot 7 to Eden Mill District L.P. (Eden Housing).

On October 17, 2022, the Healdsburg City Council approved a $250,000 loan with Eden Housing to address a shortfall in financing required for payment of development impact fees, which was discovered in the project’s application for state funding. The loan has a term of 20 years, carrying an annual compounded interest rate of 2.25%.

On October 10, 2023, the Randall Apartments were granted their Certificate of Occupancy and have since achieved full occupancy, now operational with 41 units of affordable housing.

DISCUSSION/ANALYSIS:

Staff recommends that the City Council approve an amendment to the Promissory Note terms with Eden Mill District, LP, and grant the City Manager authority to finalize the amendment and any related documents necessary for the transaction.

As noted above, the original loan between the City of Healdsburg and Eden Mill District, LP, approved on October 17, 2022, amounted to $250,000 with a repayment term of 20 years and an annual compounded interest rate of 2.25%.

Since the approval of the original loan, a conflict in repayment terms has been identified between the terms of the City's loan and a pre-existing loan from the County of Sonoma to Eden Mill District, LP for the same project. The City’s current loan terms require an annual payment amount of the lesser of $15,661 or 100% of residual receipts. This requirement conflicts with the County’s loan terms that stipulate that the County is to be repaid 100% of the Lender’s 50% share of residual receipts unless there is another soft lender in which case the County would expect a pro rata payment from the 50% share of residual receipts. Accommodating this change in terms necessitates a City loan amendment reflecting the City’s pro rata share.

Under this model, repayments would be based on the project's actual cash flow, with the City and County each receiving a share of the residual receipts in proportion to their respective loans. By aligning the City's loan terms with those of the County, this proposed amendment seeks to resolve the disparity in repayment structures and achieve a balanced financial obligation between the City and County loans.

Loan Modification
Eden’s original agreement stipulated fixed annual payments across a 20-year span with an interest rate of 2.25% annually compounded with the City receiving an annual payment based upon 100% of residual receipts. The proposed modifications requested by Eden are highlighted in the chart below:

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Terms Original Terms Amended Terms
Interest Rate
Interest shall accrue on the outstanding principal
amount at a rate of 2.25% per annum, compounded
annually.

No Change.

Residual Receipts
Borrower's obligation to make payments under this
Note prior to maturity is limited to the extent of
100% of Residual Receipts.

Limited to the City’s
pro rata Share of 50%
of Residual Receipts.

Annual Payment
Amount
"Base Annual Payment Amount" means Fifteen
Thousand Six Hundred Sixty-One Dollars
($15,661).

City's Pro rata Share:

7.1% of residual receipt
debt on the Property,
calculated as 50% of
the Loan ($250,000)
divided by total
residual receipt debt
($1,750,000).

Maturity Date
The entire unpaid principal balance of this Note,
together with all accrued and unpaid interest, shall
be due and payable on December 1, 2042.

No change.

Prepayment
The principal of this Note may be voluntarily
prepaid at any time, in its entirety or in any partial
amount, without penalty.

No change.

Timing of
Payments/Residual
Receipts Reports
On or before May 1, 2024, and on or before May
1st every year thereafter so long as the Loan
remains unpaid, Borrower shall pay to Lender,
solely from Residual Receipts, an amount equal to
the lesser of (i) the then applicable Annual Payment
Amount or (ii) fifty percent (100%) of the Residual
Receipts.

Payment limited to the
City’s pro rata Share of
50% of Residual
Receipts.

While a residual receipts model introduces variability in loan repayments based on the project's actual cash flow, Eden's financial modeling suggests that payments on the City Loan are projected to commence in year 11 of the project. Furthermore, according to Eden's projections, the project's permanent loan is expected to mature in year 18, potentially enabling Eden to fully repay the City's loan by 2040, two years earlier than the original term of 2042.

Staff recommends that the City Council approve the requested loan amendment as it continues to support the financial viability of The Randall Apartments which serve the residents of our community with safe, decent, and affordable housing.

The Amended and Restated Secured Promissory Note and Redlined Secured Promissory Note are attached as Exhibits A and B, respectively.

ENVIRONMENTAL STEWARDSHIP:

There is no direct correlation between this loan and environmental stewardship.

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ALTERNATIVES:

The Council may choose to not approve modifications to the loan to Eden Mill District, LP or may propose additional modifications to the terms of the loan agreement. In the event of an alternative course of action, staff will require further guidance.

FISCAL IMPACT:

The original loan was disbursed in FY 2022-23 from the Measure S Affordable Housing Fund.

The existing loan terms indicate the City will receive an annual payment equal to the lesser of 100% of the residual receipts or a base annual payment of $15,661. In any year that 100% of the residual receipts were not sufficient to repay the base annual payment that amount would be added on to the next years base annual payment amount, to ensure that all available funds were appropriately applied towards repayment of the loan. The proposed amendment to the loan terms result in the removal of the base annual payment requirement and the City receiving only 7.1% of the residual receipts. Under the new proposed structure, the City is not projected to receive any residual receipt payments towards the loan until 2033. The foregoing notwithstanding, the entire outstanding principal and accrued interest on the loan is due and payable 20 years from the origination of the initial loan, or December 1, 2042.

ENVIRONMENTAL ANALYSIS:

Pursuant to Section 15378 (b)(5) of the State CEQA Guidelines, the proposed action is an administrative activity of the City that will not result in direct or indirect physical changes to the environment and thus does not constitute a “Project” subject to environmental review under CEQA.

ATTACHMENT(S):

Resolution
Randall_Loan_Redline
Amended_Note_Randall_FINAL

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CITY OF HEALDSBURG
RESOLUTION NO. -2024

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG APPROVING AN AMENDMENT TO THE

PROMISSORY NOTE TERMS WITH EDEN MILL DISTRICT,

LP FOR THE RANDALL APARTMENTS PROJECT AND

AUTHORIZING THE CITY MANAGER TO FINALIZE THE

AMENDMENT AND TAKE ANY RELATED ACTIONS

NECESSARY TO COMPLETE THE TRANSACTION
WHEREAS, in 2018, Replay Healdsburg, LLC submitted an application to the City of Healdsburg for development of a mixed-use project, the Mill District Project, on a 9.59-acre site located at 146 and 164 Healdsburg Avenue, which included plans for the affordable housing development on Lot 7, now named the Randall Apartments, and the Planning Commission and City Council approved necessary permits and agreements for the project's development; and WHEREAS, Eden Housing, developing the Randall Apartments on Lot 7 of the Mill District, secured over $17M in funding through the State of California Tax Credit Allocation Committee and Project-Based Section 8 vouchers, providing 41 units of affordable housing for those making less than 60% of the Area Median Income; and WHEREAS, the City of Healdsburg initially provided a loan of $250,000 to Eden Mill District, LP, to address a shortfall in financing required for payment of development impact fees for the Randall Apartments project, with terms outlined in a Secured Promissory Note and Subordinate Deed of Trust; and
WHEREAS, the funding for the loan was included in the FY 22-23 Budget for Measure S, adopted by the Council; and
WHEREAS, a conflict between the repayment terms of the City's loan and a pre-existing loan from the County of Sonoma to Eden Mill District, LP, was uncovered necessitating an amendment to the City's loan to reflect a pro rata share arrangement for repayment based on the project's actual cash flow; and
WHEREAS, the proposed amendment to the Promissory Note terms and the resulting alignment with the County's loan terms will support the financial viability of the Randall Apartments, providing essential affordable housing to the community; and WHEREAS, Eden Mill District, LP will make payments to the City as outlined in the terms which are detailed in the Amended and Restated Secured Promissory Note attached hereto as Exhibit A; and
WHEREAS, the City Council desires to approve the amendment to the Promissory Note terms with Eden Mill District, LP for the Randall Apartments project and to authorize the City

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Packet Pg. 100 Attachment: Resolution (4422 : Randall Apartments Loan Amendment) Resolution No.

Manager to finalize the amendment and execute any related documents necessary for this transaction.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg hereby determines as follows: (i) pursuant to Section 15378 (b)(5) of the State CEQA Guidelines, the proposed amendment to the Promissory Note is an administrative activity of the City that will not result in direct or indirect physical changes to the environment and thus does not constitute a “Project” subject to environmental review under CEQA; and (ii) the amendment to the Promissory Note terms outlined in the Amended and Restated Secured Promissory Note with Eden Mill District, LP for the Randall Apartments project, attached hereto as Exhibit A, is hereby approved and the City Manager is authorized to finalize the amendment and execute all related documents necessary to complete the transaction.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Healdsburg, this 15th day of April 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. 101 Attachment: Resolution (4422 : Randall Apartments Loan Amendment)

AMENDED AND RESTATED

SECURED PROMISSORY NOTE
$250,000 Healdsburg, California
, , 202 4
FOR VALUE RECEIVED, Eden Mill District, LP, a California limited partnership (“Borrower”), hereby promises to pay to the order of the City of Healdsburg, a municipal corporation (“Lender” and collectively with Borrower, the “Parties”), whose address is 401 Grove Street, Healdsburg, California 95448, Attention: City Manager, the principal amount of Two Hundred Fifty Thousand Dollars ($250,000) and all interest accrued thereon. The obligation of Borrower to Lender hereunder shall be secured by that certain Subordinated Deed of Trust (the “Deed of Trust”) executed by Borrower, encumbering Borrower's fee estate in certain real property located in the City of Healdsburg, California (the “City”), as set forth more fully in Exhibit A attached to the Deed of Trust (the “Property”). Borrower shall pay interest at the rates, in the amounts and at the times hereinafter provided.

1. The Loan. Borrower is the developer of that certain forty-one (41) unit affordable housing development located on the Property commonly known as the Mill District Family Apartments (the “Project”). To facilitate the development of the Project and to further the supply of affordable housing in the City, Lender has agreed to allow Borrower to pay certain development fees otherwise now due to the City, over a period of twenty (20) years commencing December 1, 2022, as more fully set forth in this Secured Promissory Note (the “Note”). The repayment obligations evidenced by this Note shall be the “Loan”. The Note, the Deed of Trust and any other document executed by the Parties in connection with the Loan shall constitute the “Loan Documents”.

2. Interest. Interest shall accrue on the outstanding principal amount at a rate of [2.25%] per annum, compounded annually.

3. Residual Receipts. While the Parties desire to fully amortize the loan over the term of the Loan, Borrower's obligation to make payments under this Note prior to maturity is limited to the extent of One Hundred Percent (100%) City's Share of Residual Receipts to the City's Share of Residual Receipts. For purposes hereof, the following terms shall have the designated meanings:
(i) “Annual Operating Expenses” means, without limitation: (1) all direct costs and expenses actually incurred for the operation and maintenance of the Project to the extent that they are consistent with an annual independent audit performed by a certified public accountant using generally accepted accounting principles necessary to operate the Project in a particular calendar year; (2) property management fees and reimbursements and resident services fees and reimbursements; (3) debt service on any loans secured by the Project (excluding debt service due from residual receipts); (4) payment to reserves as required by senior lenders and pursuant to Borrower's partnership agreement (the “Partnership Agreement”); (5) deferred developer fee; (6) annual partnership management and asset management fees in an annual maximum total amount not to exceed ($43,500) increased by 3% annually payable to Borrower’s general partners and/or limited partners (which fees may accrue if unpaid in any

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Packet Pg. 102 Attachment: Randall_Loan_Redline (4422 : Randall Apartments Loan Amendment) year and which may be voluntarily deferred by a general partner or limited partner); (7) repayment of any loans to Borrower from a general partner or limited partner thereof; and (8) the amount of any downward tax credit adjusters pursuant to the Partnership Agreement.
(ii) “Annual Payment Amount” means the Base Annual Payment Amount plus any outstanding Base Annual Payment Amount which was not paid in any prior year because Borrower did not have sufficient Residual Receipts to make such payment and all accrued interest thereon.
(iii) “Base Annual Payment Amount” means [Fifteen Thousand Six Hundred SixtyOne Dollars ($15,661)]. “City’s Share” means an amount equal to fifty percent (50%) of the outstanding principal amount of the Loan as a percentage of the outstanding principal amount of all residual receipt debt which encumbers the Property. As of the date hereof, the City Share of Residual receipts is Seven and One-Tenth Percent (7.1%) which was calculated as follows: 50% * ($250,000 / $1,750,000) with $250,000 representing the original principal amount of the Loan and $1,750,000 representing the sum of the Loan and the $1,500,000 loan from the Sonoma County Community Development Commission to the Borrower.
(iv) “Gross Revenue” means, with respect to a particular calendar year, all revenue, income, receipts, and other consideration actually received from operation and leasing of the Project. “Gross Revenue” shall include, but not be limited to: all rents, fees and charges paid by tenants, Section 8 payments or other rental subsidy payments received for the dwelling units, deposits forfeited by tenants, all cancellation fees, price index adjustments and any other rental adjustments to leases or rental agreements; proceeds from vending and laundry room machines; the proceeds of business interruption or similar insurance; the proceeds of casualty insurance to the extent not utilized to repair or rebuild the Project (or applied toward the cost of recovering such proceeds); and condemnation awards for a taking of part or all of the Project for a temporary period. “Gross Revenue” shall also include the fair market value of any goods or services provided in consideration for the leasing or other use of any portion of the Project. “Gross Revenue” shall not include tenants' security deposits, loan proceeds, capital contributions, casualty or condemnation proceeds, or similar advances. (v) “Residual Receipts” in a particular calendar year shall mean the amount by which Gross Revenue exceeds Annual Operating Expenses.

4. Maturity. The entire unpaid principal balance of this Note, together with all accrued and unpaid interest, shall be due and payable on December 1, 2042 (the “Maturity Date”).

5. Prepayment. The principal of this Note may be voluntarily prepaid at any time, in its entirety or in any partial amount, without penalty.

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6. Timing of Payments/Residual Receipts Reports. On or before May 1, 2024, and on or before May 1st every year thereafter so long as the Loan remains unpaid, Borrower shall pay to Lender, solely from Residual Receipts, an amount equal to the lesser of (i) the then applicable Annual Payment Amount or (ii) one hundred percent (100%) City’s Share of Residual Receipts. To the extent one hundred percent (100%) of Residual Receipts for any given year is less than the Annual Payment Amount, said difference shall remain outstanding. All payments made to Lender under this Note shall be accompanied by a report, prepared by a certified public accountant, and based on audited financial statements of Borrower, setting forth the calculation of Residual Receipts (“Residual Receipts Report”) in accordance with the terms of this Note. Such Residual Receipt Reports shall be delivered to Lender annually on or before the 1st day of May (the “Residual Receipt Due Date”) whether or not any payment is made or due under this Note for that particular year. City reserves the right, in its discretion, to cause an audit of Borrower's determination of gross revenue, annual operating expenses, and residual receipts in any calendar year. As used in this Note, the term “business day” shall mean a day other than a Saturday, Sunday or a day on which banking institutions in the State of California are authorized or required by law to close. If the due date for any payment is not a business day, such due date shall be deemed for all purposes to fall on the next business day, and any such extension shall be included in the computation of interest payments.

7. Events of Default. The occurrence of any of the following, whatever the reason therefor, shall constitute an “Event of Default” hereunder:
(a) Borrower fails to make any regularly scheduled payment of principal or interest hereunder when due, to the extent there are Residual Receipts (a “Required Payment”) or fails to deliver to Lender any Residual Receipt Report, in either case within thirty (30) days of receipt by Borrower of written notice of such failure; provided, that if Borrower fails to make a Required Payment prior to the expiration of such thirty (30) day cure period, Borrower shall be obligated to pay to Lender a late fee equal to four percent (4%) of the Required Payment then due and unpaid; or
(b) Borrower fails to pay any other amount owing to Lender under any Loan Document, or fails to perform any other obligation under any Loan Document, the breach of which can be cured by the payment of money, within thirty (30) days after receipt by Borrower of written notice thereof; or
(c) Borrower fails to perform any obligation under any Loan Document (other than obligations the breach of which can be cured by the payment of money) within thirty (30) days after notice; provided, however, that, if cure cannot reasonably be effected within such thirty (30) day period, there shall be no Event of Default under this subparagraph (c) so long as Borrower promptly commences cure and thereafter diligently prosecutes such cure to completion; or
(d) Borrower is dissolved, liquidated or terminated, or all or substantially all of the assets of Borrower are sold or otherwise transferred without Lender's prior written consent; or (e) Borrower is the subject of an order for relief by a bankruptcy court, or is unable or admits its inability to pay its debts as they mature, or makes an assignment for the benefit of creditors; or Borrower applies for or consents to the appointment of any rehabilitator

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Packet Pg. 104 Attachment: Randall_Loan_Redline (4422 : Randall Apartments Loan Amendment) or similar officer for it or any part of its property; or any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer is appointed without the application or consent of Borrower and the appointment continues undischarged or unstayed for one hundred twenty (120) days; or Borrower institutes or consents to any bankruptcy, insolvency, reorganization, arrangement, readjustment or debt, dissolution, custodianship, conservatorship, liquidation, rehabilitation or similar proceeding relating to it or any part of its property; or any similar proceeding is instituted without the consent of Borrower, as the case may be, and continues undismissed or unstayed for one hundred twenty (120) days; or any judgment, writ, warrant or attachment or execution, or similar process is issued or levied against any property of Borrower and is not released, vacated or fully bonded within one hundred twenty (120) days after its issue or levy.

Notwithstanding anything to the contrary contained herein, prior to declaring any default or taking any remedy permitted hereunder or under applicable law based upon an alleged default under this Note, Lender shall give a written notice to the limited partner of Borrower at the notice address set forth herein and the limited partner shall have a period of not less than thirty (30) days to cure such alleged default; provided, however, if in order to cure such default the limited partner reasonably believes that it must remove the General Partner of Borrower pursuant to the provisions contained in the Partnership Agreement of Borrower, the limited partner shall so notify Lender and so long as the limited partner is diligently attempting to so remove the General Partner, the limited partner shall have until the date thirty (30) days after the effective date of the removal of the General Partner to cure such default.

8. Acceleration and Other Remedies. Upon the occurrence of any Event of Default, the holder of this Note may, at its option, declare the outstanding principal balance of this Note, together with all accrued interest thereon, to be immediately due and payable. All rights and remedies provided to the holder of this Note are cumulative and shall be in addition to all other rights and remedies of the holder under other documents, at law or in equity, and all such rights and remedies may be exercised singly, successively and/or concurrently. Failure to exercise any right or remedy shall not be deemed a waiver of such right or remedy.

9. Application of Payments. All payments made hereunder shall be applied first to interest due and then in reduction of the principal balance. If more than one annual payment remains unpaid, amounts received shall be applied to such payments in reverse chronological order.

10. Expenses/Attorneys' Fees. If this Note is not paid when due, whether at each scheduled payment date, at maturity or by acceleration, Borrower promises to pay all costs of collection, including, but not limited to, reasonable attorneys' fees and all expenses incurred in connection with the protection or realization of the collateral securing the payment hereof or enforcement of any guarantee, incurred by Lender on account of such collection, whether or not suit is filed hereon.

11. Waivers. Except as expressly set forth in this Note, Borrower hereby waives presentment, demand, protest, notice of dishonor, notice of protest and all other notices and demands of every kind that would otherwise be available in connection with this Note.

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Packet Pg. 105 Attachment: Randall_Loan_Redline (4422 : Randall Apartments Loan Amendment)

12. Notice. All notices and other communications provided for in this Note shall be in writing and be delivered by messenger, overnight air courier or registered or certified U.S. mail with return receipt requested to the appropriate party at its address as follows:

If to Borrower: Eden Mill District, LP.
c/o Eden Housing
22645 Grand Street
Hayward, CA 94541
Attention: President
With a copy to: Wells Fargo Affordable Housing Community Development Corporation
One Wachovia Center
301 South College Street
MAC: D1053-170
Charlotte, North Carolina 28288
Attention: Director of Tax Credit Asset Management and Timothy J. McCann, Managing Director
If to Lender: City of Healdsburg
401 Grove Street
Healdsburg, California 95448
Attention: City Manager
Addresses for notice may be changed from time to time by written notice to the other party.

Communications by mail shall be effective upon the earlier of (a) 96 hours after deposit in the U.S. mail with postage prepaid, (b) one day after deposit with a reputable national overnight courier service, or (c) actual receipt, as indicated by the return receipt; and communications by messenger shall be effective when delivered.

13. Nonrecourse. The Loan and all obligations under this Note and the Deed of Trust are nonrecourse obligations of Borrower. Except as expressly set forth herein or in the Deed of Trust, neither Borrower, nor any partner of Borrower, shall have any personal liability for the repayment of the Loan or any other obligations hereunder or under the Deed of Trust. Lender's sole recourse shall be to realize against the collateral described in the Deed of Trust.

14. Miscellaneous. Time is of the essence hereof. All payments hereunder shall be made in lawful money of the United States of America. This Note shall be governed by the laws of the State of California. Neither this Note nor any term hereof may be waived, amended, discharged, modified, changed or terminated orally; nor shall any waiver of any provision hereof be effective except by an instrument in writing signed by Borrower and Lender. No delay or omission on the part of Lender in exercising any right hereunder shall operate as a waiver of such right or of any other right under this Note.

15. Prior Note. This Note amends, restates, replaces and renews that certain Secured Promissory Note in the stated principal amount of $250,000 dated as of November 21, 2022 made by Borrower and payable to Lender (the “Original Note”). It is the intention of the

6.I.b
Packet Pg. 106 Attachment: Randall_Loan_Redline (4422 : Randall Apartments Loan Amendment) Borrower and Lender hereunder that while this Note amends, restates, replaces and renews the Original Note in its entirety, it is not in payment or satisfaction of the Original Note, or an extension of the Maturity Date, but rather is the substitution of one evidence of debt for another without any intent to extinguish the existing indebtedness and/or any interest accrued thereon or to extend the Maturity Date. Should there be any conflict between any of the terms of the Original Note and the terms of this Note, the terms of this Note shall control.

6.I.b
Packet Pg. 107 Attachment: Randall_Loan_Redline (4422 : Randall Apartments Loan Amendment) IN WITNESS WHEREOF, the undersigned has executed this Secured Promissory Note as of the date first above written.

EDEN MILL DISTRICT, LP,
a California limited partnership
By: Eden Mill District, LLC,
a California limited liability company,
its managing general partner
By: Eden Investments, Inc.,
a California nonprofit public benefit corporation,
its manager
By:

Name:

Title:

6.I.b
Packet Pg. 108 Attachment: Randall_Loan_Redline (4422 : Randall Apartments Loan Amendment) 60100136.2

AMENDED AND RESTATED

SECURED PROMISSORY NOTE
$250,000 Healdsburg, California
March 1, 2024
FOR VALUE RECEIVED, Eden Mill District, LP, a California limited partnership (“Borrower”), hereby promises to pay to the order of the City of Healdsburg, a municipal corporation (“Lender” and collectively with Borrower, the “Parties”), whose address is 401 Grove Street, Healdsburg, California 95448, Attention: City Manager, the principal amount of Two Hundred Fifty Thousand Dollars ($250,000) and all interest accrued thereon. The obligation of Borrower to Lender hereunder shall be secured by that certain Subordinated Deed of Trust (the “Deed of Trust”) executed by Borrower, encumbering Borrower's fee estate in certain real property located in the City of Healdsburg, California (the “City”), as set forth more fully in Exhibit A attached to the Deed of Trust (the “Property”). Borrower shall pay interest at the rates, in the amounts and at the times hereinafter provided.

1. The Loan. Borrower is the developer of that certain forty-one (41) unit affordable housing development located on the Property commonly known as the Mill District Family Apartments (the “Project”). To facilitate the development of the Project and to further the supply of affordable housing in the City, Lender has agreed to allow Borrower to pay certain development fees otherwise now due to the City, over a period of twenty (20) years commencing December 1, 2022, as more fully set forth in this Secured Promissory Note (the “Note”). The repayment obligations evidenced by this Note shall be the “Loan”. The Note, the Deed of Trust and any other document executed by the Parties in connection with the Loan shall constitute the “Loan Documents”.

2. Interest. Interest shall accrue on the outstanding principal amount at a rate of

2.25% per annum, compounded annually.

3. Residual Receipts. Borrower's obligation to make payments under this Note prior to maturity is limited to the extent of the City’s Share of Residual Receipts. For purposes hereof, the following terms shall have the designated meanings:
(i) “Annual Operating Expenses” means, without limitation: (1) all direct costs and expenses actually incurred for the operation and maintenance of the Project to the extent that they are consistent with an annual independent audit performed by a certified public accountant using generally accepted accounting principles necessary to operate the Project in a particular calendar year; (2) property management fees and reimbursements and resident services fees and reimbursements; (3) debt service on any loans secured by the Project (excluding debt service due from residual receipts); (4) payment to reserves as required by senior lenders and pursuant to Borrower's partnership agreement (the “Partnership Agreement”); (5) deferred developer fee; (6) annual partnership management and asset management fees in an annual maximum total amount not to exceed ($43,500) increased by 3% annually payable to Borrower’s

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Packet Pg. 109 Attachment: Amended_Note_Randall_FINAL (4422 : Randall Apartments Loan Amendment) 60100136.2
general partners and/or limited partners (which fees may accrue if unpaid in any year and which may be voluntarily deferred by a general partner or limited partner); (7) repayment of any loans to Borrower from a general partner or limited partner thereof; and (8) the amount of any downward tax credit adjusters pursuant to the Partnership Agreement.
(ii) “City’s Share” means an amount equal to fifty percent (50%) of the outstanding principal amount of the Loan as a percentage of the outstanding principal amount of all residual receipt debt which encumbers the Property. As of the date hereof, the City Share of Residual receipts is Seven and One-Tenth Percent (7.1%) which was calculated as follows: 50% * ($250,000 / $1,750,000) with $250,000 representing the original principal amount of the Loan and $1,750,000 representing the sum of the Loan and the $1,500,000 loan from the Sonoma County Community Development Commission to the Borrower. (iii) “Gross Revenue” means, with respect to a particular calendar year, all revenue, income, receipts, and other consideration actually received from operation and leasing of the Project. “Gross Revenue” shall include, but not be limited to: all rents, fees and charges paid by tenants, Section 8 payments or other rental subsidy payments received for the dwelling units, deposits forfeited by tenants, all cancellation fees, price index adjustments and any other rental adjustments to leases or rental agreements; proceeds from vending and laundry room machines; the proceeds of business interruption or similar insurance; the proceeds of casualty insurance to the extent not utilized to repair or rebuild the Project (or applied toward the cost of recovering such proceeds); and condemnation awards for a taking of part or all of the Project for a temporary period. “Gross Revenue” shall also include the fair market value of any goods or services provided in consideration for the leasing or other use of any portion of the Project. “Gross Revenue” shall not include tenants' security deposits, loan proceeds, capital contributions, casualty or condemnation proceeds, or similar advances. (iv) “Residual Receipts” in a particular calendar year shall mean the amount by which Gross Revenue exceeds Annual Operating Expenses.

4. Maturity. The entire unpaid principal balance of this Note, together with all accrued and unpaid interest, shall be due and payable on December 1, 2042 (the “Maturity Date”).

5. Prepayment. The principal of this Note may be voluntarily prepaid at any time, in its entirety or in any partial amount, without penalty.

6. Timing of Payments/Residual Receipts Reports. On or before May 1, 2024, and on or before May 1st every year thereafter so long as the Loan remains unpaid, Borrower shall pay to Lender, solely from Residual Receipts, an amount equal to the City’s Share of Residual Receipts. All payments made to Lender under this Note shall be accompanied by a report, prepared by a certified public accountant and based on audited financial statements of Borrower, setting forth the calculation of Residual Receipts (“Residual Receipts Report”) in accordance

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Packet Pg. 110 Attachment: Amended_Note_Randall_FINAL (4422 : Randall Apartments Loan Amendment) 60100136.2
with the terms of this Note. Such Residual Receipt Reports shall be delivered to Lender annually on or before the 1st day of May (the “Residual Receipt Due Date”) whether or not any payment is made or due under this Note for that particular year. City reserves the right, in its discretion, to cause an audit of Borrower’s determination of gross revenue, annual operating expenses, and residual receipts in any calendar year. As used in this Note, the term “business day” shall mean a day other than a Saturday, Sunday or a day on which banking institutions in the State of California are authorized or required by law to close. If the due date for any payment is not a business day, such due date shall be deemed for all purposes to fall on the next business day, and any such extension shall be included in the computation of interest payments.

7. Events of Default. The occurrence of any of the following, whatever the reason therefor, shall constitute an “Event of Default” hereunder:
(a) Borrower fails to make any regularly scheduled payment of principal or interest hereunder when due, to the extent there are Residual Receipts (a “Required Payment”) or fails to deliver to Lender any Residual Receipt Report, in either case within thirty (30) days of receipt by Borrower of written notice of such failure; provided, that if Borrower fails to make a Required Payment prior to the expiration of such thirty (30) day cure period, Borrower shall be obligated to pay to Lender a late fee equal to four percent (4%) of the Required Payment then due and unpaid; or
(b) Borrower fails to pay any other amount owing to Lender under any Loan Document, or fails to perform any other obligation under any Loan Document, the breach of which can be cured by the payment of money, within thirty (30) days after receipt by Borrower of written notice thereof; or
(c) Borrower fails to perform any obligation under any Loan Document (other than obligations the breach of which can be cured by the payment of money) within thirty (30) days after notice; provided, however, that, if cure cannot reasonably be effected within such thirty (30) day period, there shall be no Event of Default under this subparagraph (c) so long as Borrower promptly commences cure and thereafter diligently prosecutes such cure to completion; or
(d) Borrower is dissolved, liquidated or terminated, or all or substantially all of the assets of Borrower are sold or otherwise transferred without Lender's prior written consent; or
(e) Borrower is the subject of an order for relief by a bankruptcy court, or is unable or admits its inability to pay its debts as they mature, or makes an assignment for the benefit of creditors; or Borrower applies for or consents to the appointment of any rehabilitator or similar officer for it or any part of its property; or any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer is appointed without the application or consent of Borrower and the appointment continues undischarged or unstayed for one hundred twenty (120) days; or Borrower institutes or consents to any bankruptcy, insolvency, reorganization, arrangement, readjustment or debt, dissolution, custodianship, conservatorship, liquidation, rehabilitation or similar proceeding relating to it or any part of its property; or any similar proceeding is instituted without the consent of Borrower, as the case may be, and continues

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Packet Pg. 111 Attachment: Amended_Note_Randall_FINAL (4422 : Randall Apartments Loan Amendment) 60100136.2
undismissed or unstayed for one hundred twenty (120) days; or any judgment, writ, warrant or attachment or execution, or similar process is issued or levied against any property of Borrower and is not released, vacated or fully bonded within one hundred twenty (120) days after its issue or levy.

Notwithstanding anything to the contrary contained herein, prior to declaring any default or taking any remedy permitted hereunder or under applicable law based upon an alleged default under this Note, Lender shall give a written notice to the limited partner of Borrower at the notice address set forth herein and the limited partner shall have a period of not less than thirty (30) days to cure such alleged default; provided, however, if in order to cure such default the limited partner reasonably believes that it must remove the General Partner of Borrower pursuant to the provisions contained in the Partnership Agreement of Borrower, the limited partner shall so notify Lender and so long as the limited partner is diligently attempting to so remove the General Partner, the limited partner shall have until the date thirty (30) days after the effective date of the removal of the General Partner to cure such default.

8. Acceleration and Other Remedies. Upon the occurrence of any Event of Default, the holder of this Note may, at its option, declare the outstanding principal balance of this Note, together with all accrued interest thereon, to be immediately due and payable. All rights and remedies provided to the holder of this Note are cumulative and shall be in addition to all other rights and remedies of the holder under other documents, at law or in equity, and all such rights and remedies may be exercised singly, successively and/or concurrently. Failure to exercise any right or remedy shall not be deemed a waiver of such right or remedy.

9. Application of Payments. All payments made hereunder shall be applied first to interest due and then in reduction of the principal balance. If more than one annual payment remains unpaid, amounts received shall be applied to such payments in reverse chronological order.

10. Expenses/Attorneys' Fees. If this Note is not paid when due, whether at each scheduled payment date, at maturity or by acceleration, Borrower promises to pay all costs of collection, including, but not limited to, reasonable attorneys' fees and all expenses incurred in connection with the protection or realization of the collateral securing the payment hereof or enforcement of any guarantee, incurred by Lender on account of such collection, whether or not suit is filed hereon.

11. Waivers. Except as expressly set forth in this Note, Borrower hereby waives presentment, demand, protest, notice of dishonor, notice of protest and all other notices and demands of every kind that would otherwise be available in connection with this Note.

12. Notice. All notices and other communications provided for in this Note shall be in writing and be delivered by messenger, overnight air courier or registered or certified U.S. mail with return receipt requested to the appropriate party at its address as follows:

If to Borrower: Eden Mill District, LP.
c/o Eden Housing
22645 Grand Street

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Packet Pg. 112 Attachment: Amended_Note_Randall_FINAL (4422 : Randall Apartments Loan Amendment) 60100136.2
Hayward, CA 94541
Attention: President
With a copy to: Wells Fargo Affordable Housing Community Development Corporation
One Wachovia Center
301 South College Street
MAC: D1053-170
Charlotte, North Carolina 28288
Attention: Director of Tax Credit Asset Management and Timothy J. McCann, Managing Director
If to Lender: City of Healdsburg
401 Grove Street
Healdsburg, California 95448
Attention: City Manager
Addresses for notice may be changed from time to time by written notice to the other party.

Communications by mail shall be effective upon the earlier of (a) 96 hours after deposit in the U.S. mail with postage prepaid, (b) one day after deposit with a reputable national overnight courier service, or (c) actual receipt, as indicated by the return receipt; and communications by messenger shall be effective when delivered.

13. Nonrecourse. The Loan and all obligations under this Note and the Deed of Trust are nonrecourse obligations of Borrower. Except as expressly set forth herein or in the Deed of Trust, neither Borrower, nor any partner of Borrower, shall have any personal liability for the repayment of the Loan or any other obligations hereunder or under the Deed of Trust. Lender's sole recourse shall be to realize against the collateral described in the Deed of Trust.

14. Miscellaneous. Time is of the essence hereof. All payments hereunder shall be made in lawful money of the United States of America. This Note shall be governed by the laws of the State of California. Neither this Note nor any term hereof may be waived, amended, discharged, modified, changed or terminated orally; nor shall any waiver of any provision hereof be effective except by an instrument in writing signed by Borrower and Lender. No delay or omission on the part of Lender in exercising any right hereunder shall operate as a waiver of such right or of any other right under this Note.

15. Prior Note. This Note amends, restates, replaces and renews that certain Secured Promissory Note in the stated principal amount of $250,000 dated as of November 21, 2022 made by Borrower and payable to Lender (the “Original Note”). It is the intention of the Borrower and Lender hereunder that while this Note amends, restates, replaces and renews the Original Note in its entirety, it is not in payment or satisfaction of the Original Note or an extension of the Maturity Date, but rather is the substitution of one evidence of debt for another without any intent to extinguish the existing indebtedness and/or any interest accrued thereon or to extend the Maturity Date. Should there be any conflict between any of the terms of the Original Note and the terms of this Note, the terms of this Note shall control.

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Packet Pg. 113 Attachment: Amended_Note_Randall_FINAL (4422 : Randall Apartments Loan Amendment) 60100136.2
IN WITNESS WHEREOF, the undersigned has executed this Amended and Restated Secured Promissory Note as of the date first above written.

EDEN MILL DISTRICT, LP,
a California limited partnership
By: Eden Mill District, LLC,
a California limited liability company,
its managing general partner
By: Eden Investments, Inc.,
a California nonprofit public benefit corporation,
its manager
By: ________________________________
Name: __________________________
Title: __________________________

6.I.c
Packet Pg. 114 Attachment: Amended_Note_Randall_FINAL (4422 : Randall Apartments Loan Amendment)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: April 15, 2024
SUBJECT: Inclusionary Housing Ordinance Update
PREPARED BY: Ellen McDowell, Senior Planner
STRATEGIC INITIATIVE(S):

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

1. Introduce for first reading, by title only, waiving further reading of the text, an ordinance amending Healdsburg Municipal Code Section 20.20.030 Inclusionary Housing; and Section 20.28.310 Definitions and find that the ordinance amendments are exempt from the California Environmental Quality Act (CEQA).

2. Adopt a Resolution rescinding Resolution No. 81-2019 and establishing in-lieu inclusionary housing fees as provided for in subsection 20.20.030(J) of the City of Healdsburg Land Use Code and include a 50% reduction in the in-lieu housing fee for new residential units created under SB 9.

BACKGROUND:

Inclusionary housing programs require developers of market rate residential projects to sell or rent a specified percentage of the project’s units to lower-income households. Variations of this basic requirement can include off-site provision of affordable units, dedication of land, and/or payment of fees in lieu of providing affordable units.

Healdsburg’s existing Inclusionary Housing Ordinance requires development projects with five or more dwelling units to include at least 20 percent of the new dwelling units to low-, moderateor middle-income households. The requirement for the portion of a project including units for sale is 15 percent affordable to moderate-income households and five percent affordable to middle-income households. The requirement for the portion of a project including rental units is five percent affordable to low-income households and 15 percent affordable to moderate-income households. Residential development projects or mixed-use projects with four or fewer dwelling units can comply with the Inclusionary Housing Ordinance by payment of an in-lieu fee. The in7.A Packet Pg. 115
lieu fee is due at time of building permit issuance.

The Ordinance requires residential development applicants to demonstrate how the project complies with inclusionary housing requirements upon submittal of the development application.

Developers must construct inclusionary units concurrently with other project units, and the units must have a similar exterior appearance to other project units. The Ordinance requires inclusionary units to be distributed throughout a project as much as possible. Residential projects required to provide 10 or more inclusionary units must provide 10% of these as units with three or more bedrooms. Accessory dwelling units do not count as inclusionary units.

Inclusionary units are governed by affordability agreements that ensure the units’ long-term affordability. These include a resale agreement for for-sale inclusionary units and an inclusionary housing agreement for rental projects. The City of Healdsburg uses the land trust model for ownership inclusionary units, whereby parcels dedicated to the City are then deeded to the Housing Land Trust, which holds the land in trust as a community benefit, leasing land to buyers and thereby helping them purchase homes.

The proposed action amending the Inclusionary Housing Ordinance clarifies that the Ordinance applies to single units, adds definitions of residential development projects to further clarify the applicability of the Ordinance, and adds language clearly restricting the rental housing rate to multi-family developments. The amendments will help ensure that the Inclusionary Housing requirements and in lieu fees are being applied equitably amongst all residential development projects.

On February 13, 2024 the Planning Commission held a public hearing and considered a Resolution for the Amendments to the Inclusionary Housing Ordinance. The Planning Commission continued the item and requested staff look into possible exemptions for single-unit projects, as well as Senate Bill 9 (“SB 9”) projects.

On March 26, 2024 the Planning Commission held a public hearing and adopted a Resolution amending the Inclusionary Housing Ordinance and recommending that the City Council adopt an Ordinance making clarifying updates to the Healdsburg Municipal Code by amending sections

20.20.030: Inclusionary Housing and Section 20.28.310 Definitions. Additionally, the Commission recommended that the City Council consider a provision for a 50% reduction in the in-lieu housing fee for new residential units created under SB 9. The Resolution included in attachment 2 includes a provision for a 50% reduction in the in-lieu housing fee for new residential units created under SB 9 as well as updating the fee schedule to include the annual fee increases to the fee schedule since the initial adoption in 2019.

PROJECT DESCRIPTION AND ANALYSIS:

Title 20, Land Use Code, Section 20.20.030 (Inclusionary Housing) • 20.20.030 (A)(1) The recommended additional language clarifies that residential development projects comprise one or more dwelling units. • 20.20.030 (B)(1), (2), (3) The recommended additional language clarifies the

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Ordinance’s applicability to residential dwelling units and clarifies thresholds for increases in square footage.
• 20.20.030 (C)(1), (2) The recommended additional language clarifies this section’s applicability to single-family residential units.
• 20.20.030 (D)(1) The recommended additional language makes minor clarifying edits. • 20.20.030 (G) The recommended additional language makes minor clarifying edits • 20.20.030 (H)(3) The recommended additional language clarifies this section’s applicability to multi-family and single-family rental units. • 20.20.030(J) The recommended additional language clarifies that the (lower) rental housing rate would only apply to multi-family residential development projects. Multifamily rental housing would now be required to submit a deed restriction recorded with the County of Sonoma recording that the dwellings will not be owner-occupied.

Title 20, Land Use Code, Section 20.28.310 (Definitions) • 20.08.310 The recommended amendment adds a definition for Multi-Family Rental Housing and adds clarifying language to the definition of a Residential Development Project.

GENERAL PLAN ANALYSIS:

General Plan Consistency
The proposed Inclusionary Housing Ordinance amendments are consistent with the following goals, policies, and implementation measures of the General Plan:

Policy 3.8 Sustain long-term maximum rents and sale price restriction contracts on affordable housing units developed with City assistance and also on the inclusionary units provided by private developers and encourage owners of affordable housing units to preserve affordable housing units to preserve affordable housing through refinancing and the extension of affordability covenants.

Policy 4.4 Continue to require on-site production of low- and moderate-income housing units within new residential development projects consistent with the City’s Inclusionary Housing Ordinance.

In addition, Housing Program 5 (1) specifies that the City continue to implement the Inclusionary Housing Ordinance and develop, act upon, and implement amendments to the Inclusionary Housing Ordinance by 2025.

RECOMMENDATION:

Adopt an Ordinance amending Healdsburg Municipal Code Section 20.20.030 Inclusionary Housing; and Section 20.28.310 Definitions as attached and find that adoption of the ordinance is exempt from CEQA.

Adopt a Resolution rescinding resolution No. 81-2019 and establishing in-lieu inclusionary housing fees as provided for in subsection 20.20.030(J) of the City of Healdsburg Land Use Code and include a 50% reduction in the in-lieu housing fee for new residential units created

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under SB 9.

ALTERNATIVES:

After public comment and deliberation, the City Council may consider alternatives to address any issues raised and propose revisions to the ordinance or resolution.

ENVIRONMENTAL REVIEW:

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

Moreover, none of the CEQA exceptions apply. The Amendments will not impact any environmental resources of hazardous or critical concern. The Amendments are primarily procedural in nature with no impacts to critical resources. The Amendments will also not contribute to cumulative impacts or have a significant effect due to unusual circumstances. The Amendments make clarifying procedural changes to the municipal code and would not create unusual circumstances or contribute to cumulative impacts. Lastly, the Amendments will not impact scenic highways, will not involve hazardous waste sites, and will not impact historical resources.

ATTACHMENT(S):

Att 1 Inclusionary Housing Ordinance and Exhibit A
Att 2 CC Reso - Inclusionary Housing Fee Schedule

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EXHIBIT A

CITY OF HEALDSBURG
ORDINANCE NO. -2024

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG MAKING CLARIFYING UPDATES TO THE

HEALDSBURG MUNICIPAL CODE BY AMENDING
SECTION 20.20.030: INCLUSIONARY HOUSING AND
SECTION 20.28.310: DEFINITIONS, AND FINDING THAT

ADOPTION OF THE ORDINANCE IS EXEMPT FROM CEQA
WHEREAS, the City of Healdsburg (“City”) Municipal Code (“HMC”) Chapter 20 Land Use Code regulates allowable uses and development standards within the City; and WHEREAS, the City recognizes the continued need for affordable housing within the City; and
WHEREAS, HMC Section 20.20.030: Inclusionary Housing, requires residential development in the City of Healdsburg (“City”) provide for dwelling units that are affordable to low-, moderate- and/or middle-income households through the allocation of units or the payment of an in-lieu fee; and
WHEREAS, the City desires to adopt an ordinance amending HMC Section 20.20.030:

Inclusionary Housing and Section 20.28.310: Definitions, as provided herein (the “Amendments”); and
WHEREAS, the proposed Amendments 1) clarify that the inclusionary housing requirements apply to single residential units, 2) update the definition of “residential development project”, 3) add a definition of “rental housing”, 4) add language clearly restricting the rental housing in-lieu fee to multifamily developments, and 5) add a verification mechanism for the rental housing in-lieu fee; and
WHEREAS, the Planning Commission held a duly noticed public hearing on February 13, 2024, at which time it reviewed the proposed Amendments and considered all public comments, written and oral, on the Amendments and the related CEQA exemption and continued the item to a date uncertain; and
WHEREAS, the Planning Commission held a duly noticed public hearing on March 26, 2024, at which time it reviewed the proposed Amendments and considered all public comments, written and oral, on the Amendments and the related CEQA exemption; and WHEREAS, the Planning Commission made the following affirmative findings pursuant to HMC Section 20.28.280 in support of the proposed Amendments and recommended the City Council adopt an ordinance approving them:

7.A.a
Packet Pg. 119 Attachment: Att 1 Inclusionary Housing Ordinance and Exhibit A (4419 : Inclusionary Housing Ordinance Update) Ordinance No.

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

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

C. The Planning Commission has conducted a public hearing on the draft Amendments with hearing notices provided as prescribed in HMC Section 20.28.080, including newspaper publication at least 10 days prior to the hearing date.

D. Adoption of the proposed ordinance the Amendments is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines (the “common sense exemption”) because it can be seen with certainty that there is no possibility that the Amendments will have a significant effect on the environment. The proposed Amendments are clarifying changes to the Municipal Code and will not allow for, nor encourage, any more development than is already anticipated under the City’s General Plan, or otherwise allow for or promote physical changes in the environment and, therefore, there is not a possibility that the proposed Amendments may have a significant effect on the environment.

Moreover, none of the CEQA exceptions apply. The Amendments will not impact any environmental resources of hazardous or critical concern. The Amendments are primarily procedural in nature with no impacts to critical resources. The Amendments will also not contribute to cumulative impacts or have a significant effect due to unusual circumstances. The Amendments make clarifying procedural changes to the municipal code and would not create unusual circumstances or contribute to cumulative impacts. Lastly, the Amendments will not impact scenic highways, will not involve hazardous waste sites, and will not impact historical resources.

WHEREAS, based upon the Planning Commission’s findings and recommendation, and after conducting a public hearing and considering all public comments, written and oral, the City Council finds that the Amendments are consistent with the General Plan including the Goals, Policies, and Implementation Measures of the Housing, Land Use, and Economic Development Elements of the adopted General Plan, and that the Amendments are internally consistent with all other provisions of the Municipal Code.

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

Section 1. Findings.

7.A.a
Packet Pg. 120 Attachment: Att 1 Inclusionary Housing Ordinance and Exhibit A (4419 : Inclusionary Housing Ordinance Update) Ordinance No.

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

Section 2. Title 20, Section 20.20.030 Inclusionary Housing shall be amended to read as follows (additions underlined, deletions strikethrough):

20.20.030 Inclusionary housing
The following standards shall govern the provision of inclusionary housing:

A. Applicability.

1. The provisions of this section shall apply to any discretionary or ministerial approvals for new residential development projects (one or more dwelling units) and the residential component of mixed-use development projects.

2. Projects approved prior to July 17, 2019, and required to provide inclusionary dwelling units on site shall be subject to the inclusionary housing requirements in place at the time the City granted the approval. Projects approved prior to July 17, 2019, and required to pay an in-lieu fee shall pay the fee in effect at the time of building permit issuance.

3. Projects approved prior to July 17, 2019, pursuant to a development agreement or vesting tentative map that address inclusionary housing requirements are subject to the inclusionary provisions of the development agreement or applicable to the vesting tentative map, prior to recordation of the final map.

B. Exemptions. The following shall not be subject to the provisions of this section:

1. Existing residences residential dwelling units that are altered, improved, restored, repaired, expanded or extended; provided, that the number of dwelling units is not increased and that the existing floor area of the dwelling unit is not increased by greater than 850 square feet or more. These units Dwelling units that are increased by greater than 850 square feet will be subject to a fee per square foot for any increase in square footage greater than 850 square feet.

2. New residential dwelling units of 850 square feet or less.

3. The construction of a new residential structure which replaces a residential structure that was destroyed by fire or natural disaster or demolished within five years prior to the application for a building permit for the new residential structure; provided, that the number of residential units is not increased from the number of residential units of the destroyed residential structure or and that the replacement dwelling is not more than 850 square feet larger than the original dwelling. These units will be subject to a fee per square foot for any increase in square footage greater than 850 square feet.

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Packet Pg. 121 Attachment: Att 1 Inclusionary Housing Ordinance and Exhibit A (4419 : Inclusionary Housing Ordinance Update) Ordinance No.

4. Accessory dwelling units constructed pursuant to HMC 20.20.010.

C. Inclusionary Requirements.

1. Residential development projects or mixed-use development projects with five or more dwelling units shall include at least 20 percent of the total number of new dwelling units that are affordable to low-, moderate- or middle-income households, as defined in HMC

20.28.310. The requirement for the portion of a project including units for sale is 15 percent affordable to moderate-income households and five percent affordable to middle-income households. The requirement for the portion of a project including rental units is five percent affordable to low-income households and 15 percent affordable to moderate-income households.

Fractional units that may result from the application of these requirements may be satisfied by either of the following methods, at the discretion of the applicant:
a. Any fraction of a unit may be rounded up and treated as a whole unit; or b. The applicant may pay the portion of the required fractional unit as an in-lieu fee as described in subsection (C)(2) of this section.

2. Residential development projects or mixed-use development projects with four or fewer dwelling units, including single-family residential units, shall comply in either of the following ways, at the discretion of the applicant:
a. Payment of a fee pursuant to subsection (J) of this section; or b. Alternative compliance method, pursuant to subsection (D) of this section.

D. Alternative Compliance. Subject to the approval of the City Council, residential or mixeduse development projects identified in subsection (C)(1) or (C)(2) of this section may meet the requirements of this section in the following alternative ways, or combinations thereof:

1. In-Lieu Land Dedications. In lieu of constructing required inclusionary units on site, an applicant may satisfy inclusionary housing requirements by an irrevocable offer of dedication of land within the City limits, to the City, to be used for affordable housing purposes, such as acquisition of property, planning and design and construction costs. The applicant shall identify the land to be dedicated prior to approval of the discretionary permit for the residential development project or mixed-use development project.

In addition to any other findings required by statute, ordinance, or otherwise, any approval for an in-lieu land dedication shall include a finding that the land to be dedicated is not subject to liens, is served or proposed to be served by municipal services, including water, sewer, roads, electricity, telephone and other similar customary services, and contains no unusual planning or development constraints.

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Packet Pg. 122 Attachment: Att 1 Inclusionary Housing Ordinance and Exhibit A (4419 : Inclusionary Housing Ordinance Update) Ordinance No.

The applicant shall dedicate the land to the City. The amount of land shall be as much as necessary, as determined by the City, to provide for the equivalent number of required inclusionary units in accordance with subsection (C)(1) of this section. The City Council may approve, conditionally approve or reject such offer of dedication. If the City Council rejects such offer of dedication, the applicant shall be required to meet the inclusionary housing requirement by other means set forth in this section.

2. Off-Site Construction of Inclusionary Units. In lieu of constructing required inclusionary units on site, an applicant may satisfy inclusionary housing requirements by constructing some or all of the required inclusionary units on another site or sites within the City. The resultant linked project sites shall be considered a single combined project and shall be reviewed concurrently by the City. Off-site inclusionary units shall be constructed and available for occupancy concurrently with the project’s market-rate units, unless an alternative schedule based on extenuating circumstances, as determined by the City, is adopted as part of the project approval.

In addition to any other findings required by statute, ordinance or otherwise, any approval of the linked project sites shall include the following findings:
a. Practical difficulties exist with providing the required inclusionary units on the original development site;
b. The proposed location for the off-site inclusionary units will not result in an unreasonable concentration of affordable housing units in one geographic area of the City;
c. All other provisions of this section have been or will be complied with, as guaranteed through the imposition of conditions of approval.

3. Conversion of existing market-rate units to inclusionary units, in an amount equal to the inclusionary housing requirements, including any needed rehabilitation to ensure compliance with building, health and safety standards.

4. Construction of a single-family dwelling along with an accessory dwelling unit pursuant to HMC 20.20.010, restricted to occupancy by a household earning no more than 80 percent of the Sonoma County area median income, with rent restricted to 30 percent of monthly income and adjusted for household size, and guaranteed through a regulatory agreement executed prior to building permit issuance. Such single-family dwelling units will not be required to pay an in-lieu fee and shall not be included in the total number of project units subject to the inclusionary housing calculation, in accordance with subsection (C)(1) or (C)(2) of this section.

5. At the City’s sole discretion, the City may accept, in fulfillment of an applicant’s inclusionary housing requirement, any other approach proposed by the applicant which, as determined by the City, meets City housing goals and objectives and where the applicant

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Packet Pg. 123 Attachment: Att 1 Inclusionary Housing Ordinance and Exhibit A (4419 : Inclusionary Housing Ordinance Update) Ordinance No.

demonstrates to the City’s satisfaction equivalency to the requirements of subsection (C)(1) or (C)(2) of this section, as applicable.

E. Affordable Housing Incentives. An applicant may request the City provide regulatory, procedural or financial incentives, including but not limited to a density bonus or an increase in lot coverage, to meet or exceed the inclusionary housing requirement set forth in this section.

The request for such incentives must be included as part of the project application materials and include the rationale for the incentives sought, including a detailed description of the incentives sought, financial feasibility information and a description of resulting public benefits. Requests for incentives shall be considered by the City Council.

F. Inclusionary Unit Development Standards. In addition to other development standards and requirements set forth in this title, the following standards shall be met for the construction of inclusionary units:

1. Inclusionary units shall be constructed and available for occupancy concurrently with the project’s market-rate units, unless an alternative schedule based on extenuating circumstances, as determined by the City, is adopted as part of the project approval.

2. Inclusionary units shall be distributed throughout the residential project site to the extent practicable.

3. Inclusionary units shall reflect the range of number of bedrooms provided in the residential project as a whole. To make this determination for subdivisions where individual lots will be sold, the type and tenure of market rate units shall be used. For residential or mixed-use development projects that are required to provide 10 or more inclusionary units, at least 10 percent of the inclusionary units shall have three or more bedrooms.

4. The square footage, configuration, quality of finishes and amenities of inclusionary units shall be substantially similar to the market rate units. To make this determination for subdivisions where individual lots will be sold, adopted, applicable design guidelines shall be used.

5. Residents of inclusionary units shall have access to the project’s common open spaces or recreational amenities.

6. Accessory dwelling units shall not be counted toward meeting a project’s inclusionary housing requirements.

7. Inclusionary units may be for-sale or rental units.

G. Submittal of Inclusionary Housing Information. Any application for a residential development project or mixed-use development project including residential dwelling units submitted to the City shall include the proposed method of satisfying inclusionary housing requirements, including any alternative compliance method pursuant to subsection (D) of this section, and the total number of units being requested for City approval, the number of

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Packet Pg. 124 Attachment: Att 1 Inclusionary Housing Ordinance and Exhibit A (4419 : Inclusionary Housing Ordinance Update) Ordinance No.

inclusionary units included within the project, the level of affordability of proposed inclusionary units, whether inclusionary units will be for sale or for rent, proposed methods for income screening of prospective residents and other information deemed necessary by the City. The proposal shall be reviewed as part of the development process.

H. Inclusionary Housing Regulatory and Resale Agreements. The following shall govern the occupancy of inclusionary units and the future resale of such units:

1. Only low-, moderate- and middle-income households may occupy inclusionary units during the term of any regulatory agreement. The City or its designee shall notify all potential purchasers of inclusionary units to ensure adherence to applicable income restrictions.

2. Applicants proposing to meet the inclusionary requirement through the provision of forsale inclusionary units shall enter into a regulatory agreement with the City prior to final map recordation for the project. All buyers of inclusionary units shall enter into a resale agreement with the City prior to close of escrow for such inclusionary unit. The resale agreement shall specify the income restriction on the household purchasing and occupying the inclusionary unit, the number of years that the inclusionary unit shall remain affordable to the target household income, an option for the City or its designee to designate an eligible purchaser, the City’s right of first refusal to purchase the inclusionary unit, and a calculation of future equity assignment upon sale of the inclusionary unit. The resale agreement shall be recorded against each applicable unit.

3. Applicants proposing to meet the inclusionary requirement through the provision of inclusionary multi-family or single-family rental units shall enter into a regulatory agreement with the City prior to the issuance of a certificate of occupancy for the project. The regulatory agreement shall specify income restrictions on the households occupying the inclusionary units and the number of years that the inclusionary units shall remain affordable to the target incomes.

4. The City shall identify and periodically update the housing prices and rents that qualify as affordable for very low-, low-, moderate-, and middle-income households, utilizing the latest area median income for Sonoma County, adjusted for household size for the unit.

I. Management and Monitoring of Inclusionary Units.

1. Inclusionary rental units shall be professionally managed and/or operated by the owner of the residential complex or the authorized agent of the owner in accordance with a management and monitoring plan prepared by the owner and approved by the City. Each owner of one or more inclusionary rental unit(s) shall submit an annual tenant income certification report to the City Manager or his or her designee, no later than March 1st, for the previous calendar year, identifying monthly rental rates, vacancy status of each inclusionary unit, income status for each resident and any other related data deemed necessary by the City while ensuring privacy for all residents.

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Packet Pg. 125 Attachment: Att 1 Inclusionary Housing Ordinance and Exhibit A (4419 : Inclusionary Housing Ordinance Update) Ordinance No.

2. If, upon recertification, a tenant’s income has increased and exceeds the qualifying income for an inclusionary rental unit, such tenant’s rent may be increased to a qualifying income for an inclusionary rental unit in a higher income category, if applicable to the project, and the project owner shall rent the next available inclusionary unit to the lower income category to restore the affordable unit mix required by the regulatory agreement. If, upon recertification, a tenant’s income has increased and exceeds the qualifying income for all inclusionary units in a project, such tenant shall, upon expiration of the tenant’s lease, and if so permitted by local and state law, after a 180-day period beginning on the date of lease expiration, be required to vacate the inclusionary unit.

J. Updating and Use of the In-Lieu Fee. The amount of the fee shall be set by resolution of the City Council and shall be updated annually based upon the annual changes in an identified, generally recognized construction cost index to reflect changing housing conditions within the community, including the actual costs of providing affordable housing. Fees collected for this purpose shall be deposited by the City into the inclusionary housing deposit account and used only for the purpose of providing affordable housing programs and services in the community, which includes the acquisition of property, planning and design, construction costs and program administration. Fees shall be payable at the time of building permit issuance. The multi-family rental housing rate identified in the fee schedule shall only apply to multi-family residential development projects in which all units are available for rent.

1. A Deed Restriction shall be required for all multi-family development projects requesting the multi-family rental housing rate. The Deed Restriction shall be recorded with the County of Sonoma and a copy provided to the City of Healdsburg and shall include the following restrictions:
a. The Dwellings shall be maintained as rental units only and may not be owneroccupied. b. Should any Dwelling become owner-occupied, the Property Owner is required to pay the City the difference between the Inclusionary Housing In-Lieu Fee paid at the time of building permit issuance and the Inclusionary Housing In-Lieu Fee for owner-occupied projects in effect at the time of owner-occupancy, including the addition of any interest. Interest shall be calculated based on the amount of the owner-occupancy in-lieu fee in effect at the time of building permit issuance. c. The restrictions shall be binding upon any successor in ownership of the Property and lack of compliance shall result in legal action against the Property Owner.

Section 3. Title 20, Section 20.08.310, Definitions shall be amended to read as follows (additions underlined, deletions strikethrough):

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Packet Pg. 126 Attachment: Att 1 Inclusionary Housing Ordinance and Exhibit A (4419 : Inclusionary Housing Ordinance Update) Ordinance No.

Multi-Family Rental Housing: a building or structure with two or more dwelling units all of which are intended for use as rented residential premises.

Residential development project: A project consisting of one two or more single -family dwelling unit(s) or lot(s), including, but not limited to single-family dwelling(s), multifamily dwelling(s), condominium(s), townhouse(s), conversion of apartments to condominium(s) and residential land subdivision(s). Residential development projects include for sale or rental units.

Section 4. Environmental Compliance.

The City Council finds that the proposed ordinance Amendments are exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines (the “common sense exemption”) because it can be seen with certainty that there is no possibility that the Amendments will have a significant effect on the environment. The proposed Amendments are clarifying changes to the Municipal Code and will not allow for, nor encourage, any more development than is already anticipated under the City’s General Plan, or otherwise allow for or promote physical changes in the environment and, therefore, there is not a possibility that the proposed Amendments may have a significant effect on the environment.

Moreover, none of the CEQA exceptions apply. The Amendments will not impact any environmental resources of hazardous or critical concern. The Amendments are primarily procedural in nature with no impacts to critical resources. The Amendments will also not contribute to cumulative impacts or have a significant effect due to unusual circumstances. The Amendments make clarifying procedural changes to the municipal code and would not create unusual circumstances or contribute to cumulative impacts. Lastly, the Amendments will not impact scenic highways, will not involve hazardous waste sites, and will not impact historical resources.

Section 20. Severability.

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

Section 21. Effective Date and Publication.

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

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Packet Pg. 127 Attachment: Att 1 Inclusionary Housing Ordinance and Exhibit A (4419 : Inclusionary Housing Ordinance Update) Ordinance No.

INTRODUCED by the City Council of the City of Healdsburg on the 15th day of April, 2024, and PASSED and APPROVED at a regular meeting of the City Council on the ____ day of ____, 2024, by the following 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. 128 Attachment: Att 1 Inclusionary Housing Ordinance and Exhibit A (4419 : Inclusionary Housing Ordinance Update)

CITY OF HEALDSBURG
RESOLUTION NO. ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG AMENDING RESOLUTION NO. 81-2019

ESTABLISHING IN-LIEU INCLUSIONARY HOUSING FEES
AS PROVIDED FOR IN SECTION 20.20.030(J) OF THE CITY

OF HEALDSBURG MUNICIPAL CODE
WHEREAS, the State of California continues to face a shortage of affordable housing; and WHEREAS, Government Code section 65850(g) allows cities to require, as a condition of the development of residential rental units, that the development include a certain percentage of residential rental units affordable to, and occupied by, households with incomes that do not exceed the limits for moderate-income, lower income, very low income, or extremely low income households specified in Sections 50079.5, 50093, 50105, and 50106 of the Health and Safety Code; and
WHEREAS, Government Code section 65850(g) requires cities to provide alternative means of compliance that may include, but are not limited to, in-lieu fees, land dedication, off-site construction, or acquisition and rehabilitation of existing units; and WHEREAS, Healdsburg Municipal Code section 20.20.030 (J) provides for the establishment and update of in-lieu inclusionary housing fees by City Council resolution, the proceeds of which are to be deposited into an inclusionary housing deposit account for the purpose of providing affordable housing programs and services in the community, including acquisition of property, planning and design, construction costs and program administration; and WHEREAS, section 20.20.030 (J) allows for an update to the fees to reflect changing housing conditions within the community, including the actual costs of providing affordable housing and based upon the annual changes in an identified, generally recognized construction cost index; and
WHEREAS, the need for affordable housing continues to be a pressing need in the City of Healdsburg; and
WHEREAS, funding for affordable housing, including from an inclusionary housing fee, helps support the development of affordable housing in the City of Healdsburg; and WHEREAS, based upon the percentage of inclusionary units required and the level of affordability targeted by the City’s Inclusionary Housing Ordinance as outlined in Subsection

20.20.30 (C), the City has determined the need to clarify and update the in-lieu inclusionary housing fee categories to ensure that fees are correctly collected; and WHEREAS, on March 26, 2024 the Planning Commission held a public hearing where it recommended the City Council approve amendments to the Inclusionary Housing Ordinance and

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Packet Pg. 129 Attachment: Att 2 CC Reso - Inclusionary Housing Fee Schedule (4419 : Inclusionary Housing Ordinance Update) Resolution No. – 2024

consider a provision for a 50% reduction in the in-lieu inclusionary housing fee for new residential units created under Senate Bill 9 (Government Code Sections 65852.21 and 66411.7, as may be amended from time to time); and
WHEREAS, the City Council has adopted amendments via Ordinance 2024-XX to the Inclusionary Housing Ordinance to better clarify inclusionary housing requirements and the application of the inclusionary housing fee in lieu; and WHEREAS, Exhibit A reflects the updated in lieu fee categories as well as the Planning Commission’s recommendation to encourage housing development projects under Senate Bill 9 (Government Code Sections 65852.21 and 66411.7, as may be amended from time to time); and WHEREAS, adoption of the updated fee schedule is not a project pursuant to the California Environmental Quality Act (CEQA) because it can be seen with certainty that the fee schedule update would not have the potential to either (1) cause a direct physical change in the environment or (2) cause a reasonably foreseeable indirect physical change in the environment. Even if the fee schedule update were to be considered a project under CEQA, it would be exempt pursuant to CEQA Guidelines Section 15061(b)(3). The fee update is an administrative adjustment to fee categories involving no physical change in the environment and does not enable or otherwise effect development. Therefore it can be seen with certainty that there is no possibility that the fee schedule update may have a significant effect on the environment.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg does hereby amend in its entirety Resolution No. 81-2019, a resolution establishing in-lieu inclusionary housing fees; and
BE IT FURTHER RESOLVED that the City Council does hereby find that adoption of the updated fee schedule is not a project pursuant to the California Environmental Quality Act (CEQA) because it can be seen with certainty that the fee schedule update would not have the potential to either (1) cause a direct physical change in the environment or (2) cause a reasonably foreseeable indirect physical change in the environment. Even if the fee schedule update were to be considered a project under CEQA, it would be exempt pursuant to CEQA Guidelines Section 15061(b)(3).

The fee update is an administrative adjustment involving no physical change in the environment and does not enable or otherwise effect development. Therefore it can be seen with certainty that there is no possibility that the fee schedule update may have a significant effect on the environment.

BE IT FURTHER RESOLVED that the City Council does hereby update the categories of in-lieu inclusionary housing fees for new residential developments in the amounts as set forth in Exhibit A, which is made a part of this Resolution, in accordance with Subsection 20.20.030 (J) of the Healdsburg Municipal Code and Government Code section 65850(g); and

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Packet Pg. 130 Attachment: Att 2 CC Reso - Inclusionary Housing Fee Schedule (4419 : Inclusionary Housing Ordinance Update) Resolution No. – 2024

BE IT FURTHER RESOLVED that the City Council does hereby direct that any in-lieu fees collected under authorization of this resolution shall be placed in the City’s Inclusionary Housing Deposit account; and
BE IT FURTHER RESOLVED that the City Council does hereby direct that the in-lieu inclusionary housing fees shall be automatically adjusted annually each year on July 1 in accordance with the most recent annual change in the Engineering News Record 20-Cities Construction Cost Index (20-cities CCI); and
PASSED, APPROVED and ADOPTED at a regular meeting of the City Council on the 15th day of April, 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. 131 Attachment: Att 2 CC Reso - Inclusionary Housing Fee Schedule (4419 : Inclusionary Housing Ordinance Update) Resolution No. – 2024

Exhibit A – Inclusionary Housing In-Lieu Fee Schedule
Fee per unit Fee per unit
$19.66 $7.24
(per square foot) (per square foot)
Based on top Based on top
Low to High of range Low to High of range
0 - 850 Exempt 0 - 850 Exempt
851 - 900 8,847.00 851 - 900 3,258.00
901 - 950 9,338.50 901 - 950 3,439.00
951 - 1000 9,830.00 951 - 1000 3,620.00
1001 - 1050 10,321.50 1001 - 1050 3,801.00
1051 - 1100 10,813.00 1051 - 1100 3,982.00
1101 - 1150 11,304.50 1101 - 1150 4,163.00
1151 - 1200 11,796.00 1151 - 1200 4,344.00
Above 1200 $4,344.00
1201 - 1250 24,575.00
1251 - 1300 25,558.00
1301 - 1350 26,541.00
1351 - 1400 27,524.00
1401 - 1450 28,507.00
1451 - 1500 29,490.00
1501 - 1550 30,473.00 Notes:
1551 - 1600 31,456.00 1. Fees for new units of 851 to 1200 square feet, 1601 - 1650 32,439.00 shaded grey, are calculated at 50% of full fee. 1651 - 1700 33,422.00 2. New residential units created under SB9 1701 - 1750 34,405.00 are calculated at 50% of the full fee 1751 - 1800 35,388.00 3. Fee is calculated based on high square footage 1801 - 1850 36,371.00 in range. New units falling within the range are 1851 - 1900 37,354.00 charged this fee.
1901 - 1950 38,337.00 4. The applicable fee depends on whether the 1951 - 2000 39,320.00 unit will be sold or rented. There is not a direct 2001 - 2050 40,303.00 link between the unit type (single family or 2051 - 2100 41,286.00 multifamily) and whether the unit is sold or 2101 - 2150 42,269.00 rented, i.e., multifamily units such as attached 2151 - 2200 43,252.00 condominiums may be sold.
2201 - 2250 44,235.00 5. Additions of more than 850 square feet to an 2251 - 2300 45,218.00 existing unit are subject to a $19.66 or $7.24 fee 2301 - 2350 46,201.00 for each square foot above 850.
2351 - 2400 47,184.00 6. Replacement units where the new unit is more 2401 - 2450 48,167.00 than 850 square feet larger than the original 2451 - 2500 49,150.00 unit are subject to a $19.66 or $7.24 fee for each Above 2500 49,150.00 square foot above 850.

Unit Size Range
(square foot)
NEW FOR-SALE HOUSING AND SINGLEFAMILY RENTAL HOUSING
Unit Size Range
(square foot)

NEW MULTI-FAMILY RENTAL HOUSING

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CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: April 15, 2024
SUBJECT: Downtown Housing Capacity Study
PREPARED BY: Scott Duiven, Community Development Director STRATEGIC INITIATIVE(S):

Establish Proactive Policies/Programs to Continue to Promote Economic Diversity & Sustainable Growth
Expand Affordable Housing Opportunities
RECOMMENDED ACTION(S):

Receive a presentation from City Staff, Opticos Design Inc., and Economic Planning Systems on the potential for increasing downtown housing and provide feedback to staff.

COMMUNITY ENGAGEMENT/OUTREACH:

On February 22, 2024, the City held a public workshop, hosted by the Housing Element Work Group (HEWG), at which City staff and Opticos Design, Inc. (Opticos) presented their initial findings. In addition to Opticos, Economic Planning Systems (EPS) presented an evaluation of development feasibility. The presentations were followed by a Q&A session. Following the Q&A, workshop participants were invited to leave written feedback and to engage in further conversations with City staff and the consultant teams. At the outset of the project City Staff also met with the Housing Element Work Group and the Healdsburg 2040 Land Use Committee among others and to discuss project goals and development assumptions. Staff presented to Chamber of Commerce’s Good Morning Healdsburg program on April 4, 2024.

BACKGROUND:

In 2018, the American Institute of Architects (AIA) selected Healdsburg for its Sustainable Design Assessment Team (SDAT) program. The SDAT program provides technical assistance and process expertise to help communities develop a vision and framework for a sustainable future. One of the recommendations of the resulting Imagine Healdsburg 2040 report was a focus on infill housing opportunities, such as within the Downtown area, that can complement existing development and preserve the overall character of Downtown, while at the same time creating a more vibrant, walkable, and diverse downtown core with a range of housing types.

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On June 7, 2021, in alignment with the community's housing needs and pursuant to Government Code 65583(c)(7), 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 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.

During the development of the Housing Element, the HEWG identified several complex housing related issues which merited 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 which approved the HEWG additional work plan and provided direction on the prioritized areas of study. The Downtown Housing Development Capacity Study is one of the areas of focus.

The City Council also identified the Downtown Housing Development Capacity Study as a priority in its FY 23/24 City Work Plan at their March 10, 2023, Goal Setting. The purpose of the Study is to evaluate existing codes, legislation, and State law to identity barriers to, and opportunities for, increased housing capacity within the downtown area. This study correlates with the data collection activities of the Housing Department’s Housing Needs Assessment which is being prepared in parallel to this effort.

A Request for Proposals (RFP) was released on August 15, 2023, with proposals due on September 1, 2023. The City received six proposals in response to the RFP. Staff reviewed and evaluated the proposals received and recommended Opticos as the most qualified firm by virtue of proposed approach, budget; and the specialized experience, education, and expertise of its principals and employees to prepare the Study. On September 18, 2023, the City Council approved a Professional Service Agreement with Opticos.

DISCUSSION/ANALYSIS:

Throughout the Housing Element Update process, the Diversity, Equity and Inclusion Plan’s Encuentros, development of the Climate Strategy, and other public engagement activities, we have consistently heard the urgent call for more housing affordable to those who earn too much to qualify for deed-restricted affordable housing but not enough to purchase market rate housing.

Healdsburg has done well in these two areas. However, since the inception of the Growth Management Ordinance in 2000 there has not been a single market-rate, multi-family project of 5 or more units built in Healdsburg. This has led to a shortfall in market-rate rentals which are an important component of the overall housing mix necessary to meet the needs of middle-income families and employees of Healdsburg businesses. As only a small percentage of our workforce lives in Healdsburg and the majority of jobs are in close proximity to Downtown, introducing housing could allow employees of local businesses to live in Healdsburg in close proximity to their place of employment and services.

Quantifying the Need
On September 18, 2024, the City Council authorized a contract with Economic Planning Systems, Inc., for the development of a Housing Needs Assessment (HNA) that would expand

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upon the extensive housing planning efforts conducted over the past two years, led by the Housing Element Work Group (HEWG), to deliver the 6th Cycle General Plan Housing Element Update.

The HNA is a tool that the City has been using since 2020 and focuses on the demographics of existing employees in Healdsburg as it relates to workforce housing. 1 The most recent update
was completed this year. Below is a list of general findings from the HNA:

1. Demographic Shifts: There has been a notable decline in the proportion of working households residing in Healdsburg, decreasing from approximately 20% in 2010 to 15% in the present, amidst a paradoxical scenario where the housing stock has expanded yet the population has decreased.

2. Wage Distribution: Approximately 41% of workforce households qualify for deedrestricted low-income housing (<80% AMI), about 20% of working households fall within the moderate-income bracket (80-120% AMI), and 38% earning above the moderate category (>120% AMI), indicating a broad housing demand across all income levels.

3. Market Dynamics: The real estate market has witnessed a substantial 28% increase in average home prices from $810,000 in 2019 to $1,038,000, underscoring that homeownership in Healdsburg is becoming more elusive over time.

4. Housing Stock Requirements: To accommodate 30% of Healdsburg’s workforce locally,
2 it is estimated that an additional 895 housing units would be needed over the next eight-year period. The projection is categorized based on income levels as follows:
• Low-Income Housing: A total of 561 units are projected to be needed for individuals earning less than 80% of the Area Median Income (AMI). • Moderate to Above Market Housing (>120% AMI): An estimated 333 housing units are required for individuals whose earnings are above 120% of AMI.

5. Housing Affordability Challenges: About one out of every three working households in Healdsburg are cost burdened by housing costs, with 20% of households paying over 50% of their income towards housing needs.

The HEWG is using the HNA to inform recommendations to the City Council in carrying out their continued work plan and in support of the Downtown Capacity Study. The goal is to assess not only the need for housing, but to also to assess what actions need to take place to meet these needs, such as increasing density and/or permitting more housing to be built. 1 The Housing Needs Assessment (HNA) is focused on workforce housing needs and utilizes a commercial linkage approach based upon job growth and existing workforce households. 2 The 30% target has been established as a foundational objective for the proportion of workers residing and employed within Healdsburg, following the completion of the initial HNA in 2020.

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Project Approach and Results
The goal of the Downtown Housing Capacity Study was to evaluate the potential for residential uses in the downtown area, gauge community support, identify opportunities and constraints, and recommend necessary changes to Healdsburg’s existing regulations to support downtown housing. For example, the Downtown Commercial and Service Commercial zones both allow for residential uses but the maximum allowed density of 16 units per acre has driven development toward visitor-serving uses such as hotels and luxury condominiums as the highest and best use in terms of economic return to property owners.

The project sought to:
• Evaluate the capacity for additional housing in the Downtown Commercial and Service Commercial zoning districts. The study did not look at the Plaza Retail district which immediately surrounds the Healdsburg Plaza.
• Visualize what form and scale of housing would be compatible with the Downtown’s existing character.
• Identify existing zoning and policy barriers to housing production in Downtown. • Provide recommendations to enable housing production at a desirable scale.

The Downtown Housing Capacity Study: Recommendations Memo can be found attached to this report. A brief summary of its content follows:

Site Selection:

The study looked at five existing sites across the two zoning districts in order to use real world examples and to understand the compatible forms within the existing surrounding context. Sites were selected based on potential for new housing, current site conditions (e.g. vacant/underutilized), and repeatability of findings across other sites within Downtown Healdsburg. For each site, Opticos developed high and low yield scenarios, selected a preferred scenario in collaboration with staff, and used the preferred scenario to identify existing barriers and shape recommendations. It is important to note the renderings and site plans prepared as part of this study are for illustrative purposes only, they represent hypothetical buildouts to calculate potential new housing, and do not represent an actual development proposal or a refined design.

The five sites studied include:
• Rite Aid – 525 Healdsburg Avenue
• Bank of America – 502 Healdsburg Avenue
• West Plaza Parking Lot
• City-owned Parking Lot – 434 Healdsburg Avenue
• Former Gas Station – 456 Healdsburg Avenue
Density:

Opticos found that by increasing density and retaining existing height and setback limits that higher density housing could fit within the existing built environment and be consistent with the Design Guidelines for Downtown. The key regulatory barriers were related to density and parking. The prototypes tested for each district exceed the current maximum allowed density of 16 units per acre. The sites tested within the Service Commercial district utilized a maximum density of 45 units per acre and assumed surface parking. The sites tested within the Downtown

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Commercial district utilized maximum densities ranging between 57 to 65 units per acre depending on the site and assumed structured or podium parking. The higher densities support a target unit mix of studios up to three bedrooms ranging in size from 500 square feet to 1,200 square feet in size.

Parking:

Parking has a large impact on project feasibility due to the cost of providing parking in addition to the amount of space required to provide that parking. Current parking standards for multifamily residential projects, city-wide, require 1.5 spaces per unit and 1 guest space for every 3 units. The study proposes 1.0 space per residential unit within the downtown zoning districts. In addition, the existing code requires that the commercial component of mixed-use projects provide 1 space per 300 square feet of commercial space depending on the specific use. The study proposes no required parking for the commercial spaces under the belief that new infill uses will not generate a unique additional demand for parking as visitors to a downtown environment tend to park once and walk to a series of nearby shops or restaurants. Parking for these uses should be on the street and within public parking lots.

Development Feasibility:

The Healdsburg and Piper Site Feasibility Study (456 Healdsburg Avenue, Former Gas Station), presented by Economic & Planning Systems Inc., on March 29, 2024, aimed to assess the financial implications of varying density levels on a mixed-use residential development in conjunction with the Downtown Housing Capacity Study.

The methodology of this study was to determine how density affects the feasibility of a residential development by estimating the development costs of 456 Healdsburg Avenue at three different levels of density and to determine the market rate residential rents necessary for a developer to achieve threshold yield-on-costs. This evaluated the site at a base density, mid density, and high yield density, or at 16, 36, and 63 units per acre, respectively. The result of this analysis demonstrated that increasing housing density substantially decreases the per-unit development costs. The chart below highlights the results of this exercise:

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Additionally, at the request of the HEWG, EPS further evaluated 456 Healdsburg Avenue with the removal of impact fees and the removal of inclusionary housing requirements (20% affordable units) in the context of achieving more affordable rents. The following chart highlights the results of this study utilizing the high-density yield model (Labeled as Baseline):

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The analysis of the Healdsburg and Piper site demonstrates that increasing housing density substantially decreases the per-unit development cost, even as total development costs rise. The conclusion is that the units would potentially be affordable to households making between $89,400 and $206,160, or 100%-160% of the area median income, even without additional subsidies or policy interventions. This suggests that new multi-family rental units could provide housing that is affordable to middle-income households that are currently under-served in Healdsburg, although subsidized affordable housing would continue to be needed for households and families making less than the area median income.

The key driver for enhancing project feasibility and affordability was found to be the reduction of land costs, which could potentially lower overall development costs by up to 40%. While the study also explored policy interventions, such as modifying inclusionary housing requirements and impact fees, these were found to be less impactful on lowering the required market-rate residential rents compared to the significant effect of subsidizing land costs.

Complementary Actions:

In addition to addressing density and parking requirements, Opticos noted some other actions that should be considered in any future planning process, including the following:
• Growth Management Ordinance: The limited number of allocations available for projects of five or more units is real constraint that needs to be addressed to facilitate housing downtown. Multi-family residential projects cannot be phased like a single-family subdivision can and often require GMO allocations which are not available in an amount sufficient to construct a project.
• Streetscape Plan: As the fabric of downtown continues north, some sidewalks may need to be expanded to accommodate the increased pedestrian activity. Developing a plan for an expanded and consistent streetscape would benefit the overall character of downtown. • Additional Public Parking: The City’s current supply of public parking in downtown should be preserved and expanded as growth occurs to enable and support new residential mixed-use buildings in the downtown.

Downtown Housing Potential:

Based on the densities achieved from the site tests in the CS and CD zoning districts it is reasonable to assume that other opportunity sites throughout Downtown Healdsburg could yield similar densities. Five additional opportunity sites were identified, and the same assumptions were applied to estimate an overall potential for housing Downtown. The Study found that vacant and underutilized parcels could yield up to 852 units.

Next Steps:

Increasing allowed density requires an amendment to the General Plan as well as changes to the applicable zoning districts and regulations in the Land Use Code. These changes would require a more comprehensive planning process including environmental review under the California Environmental Quality Act (CEQA). The planning vehicle for these changes may be a General Plan Update, or a Specific Plan or Master Plan focused on Downtown Healdsburg. There could be merit in expanding that effort to include properties fronting on Healdsburg Avenue north of

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the study area where additional opportunity sites exist. In addition, as noted above, increased zoning densities alone are unlikely to be sufficient to facilitate much new housing of the nature described in this report without amendments to the Growth Management Ordinance.

Feedback requested from City Council:
• Comfort with proposed densities.
• Reduction in residential parking requirement.
• Removal of commercial parking requirement for mixed use development. • Interest in pursuing a planning process to change densities within the CD and CS zones.

ENVIRONMENTAL STEWARDSHIP:

Development of housing within Downtown Healdsburg, near services and entertainment, could reduce Vehicle Miles Traveled (VMT) as residents could drive less to meet those needs and employees of local businesses could find opportunities to live and work within Healdsburg thereby reducing VMT associated with commuting.

ALTERNATIVES:

Staff are requesting Council feedback on the Recommendations Memo.

FISCAL IMPACT:

The contract with Opticos Design for preparation of the Downtown Housing Capacity Study is for a total not to exceed amount of $139,555.

ENVIRONMENTAL ANALYSIS:

This action does not qualify as a project pursuant to the California Environmental Quality Act (“CEQA”) Guidelines Section 15378(b)(5) that states that organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment are not projects. Pursuant to CEQA Guidelines Section 15060(c)(3) any activity that is not a project is not subject to environmental review under CEQA.

ATTACHMENT(S):

HDH_Recommendations Memo_Final Draft_Optimized

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Recommendations
Memo
City of Healdsburg
Downtown Housing
Capacity Study
March 29, 2024

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Packet Pg. 141 Attachment: HDH_Recommendations Memo_Final Draft_Optimized (4414 : Downtown Housing Capacity Study) Prepared For:

City of Healdsburg
Community Development Department
401 Grove Street
Healdsburg, CA 95448
Contact: Scott Duiven, Community
Development Director
Prepared By:

Opticos Design, Inc.
2100 Milvia Street, Suite 125
Berkeley, California 94704
510.558.6957
Acknowledgements
City Council
David Hagele, Mayor
Evelyn Mitchell, Vice-Mayor
Ron Edwards,
Council Member
Cris Herrod,
Council Member
Ariel Kelley,
Council Member
Housing Element Work
Group
Deborah Kravitz, Chair
Stephen Barber
Jim Heid
Dean Kladder
City of Healdsburg Staff
Jeff Kay, City Manager
Scott Duiven, Community
Development Director
Stephen Sotomayor,
Housing Director
Ellen McDowell,
Senior Planner
Griselda Villareal
Consultants
Opticos Design, Inc.
2 Downtown Housing Capacity Study Recommendations Memo Final Draft — March 29, 2024

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Packet Pg. 142 Attachment: HDH_Recommendations Memo_Final Draft_Optimized (4414 : Downtown Housing Capacity Study) What’s
Inside?
Introduction 5
Opportunity Site Testing 9
Recommendations 27
Downtown Housing Capacity Study
Recommendations Memo
Final Draft — March 29, 2024 Downtown Housing Capacity Study Recommendations Memo 3

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Packet Pg. 144 Attachment: HDH_Recommendations Memo_Final Draft_Optimized (4414 : Downtown Housing Capacity Study) In this chapter

1.1 Project Background 6

1.2 Community Engagement 7
Introduction CHAPTER
1 Final Draft — March 29, 2024 Healdsburg Downtown Housing Capacity Study Recommendations Memo 5

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1.1 Project Background
Key Issues
High housing demand with limited
housing stock results in unaffordability
for children of longtime residents and for
many people who work in Healdsburg.

In particular, housing production in
Downtown is at a standstill despite its
ideal location near amenities, walking
distance to jobs, and close to a planned
SMART station.

One key barrier to housing production that
the City has identified is the General Plan
maximum density of 16 dwelling units
per acre. The City's hypothesis entering
into this study is that this number is far
too low to generate the kind of mixed-use
development that utilizes the allowed
zoning envelope and also provides a range
of unit types (i.e. not only luxury units with
vast square footages). Existing densities
have driven downtown development
opportunities toward hotels and luxury
condominium projects as the highest and
best use in terms of economic return.

Project Intent
This study will test the density limit
to understand if increases in density
and/or other regulatory changes can
enable and encourage more housing
production in downtown, particularly
workforce housing.

These recommendations aim to increase
diversity of housing types offered in the
area, while preserving the overall scale
and character of Healdsburg's charming
downtown core and completing this
pattern at infill opportunity sites in the
Service Commercial (CS) and Downtown
Commercial (CD) zoning districts.

This project seeks to accomplish the
following goals:
■ Evaluate the capacity for additional
housing in Downtown Healdsburg (in CS
and CD zoning districts)
■ Visualize what form and scale of
additional housing would be compatible
within Downtown’s character
■ Identify existing zoning and policy
barriers to housing production in
Downtown
■ Provide recommendations to enable
housing production at a desirable scale
To meet these goals, the consulting
team tested development potential on
a selection of underutilized sites with
building prototypes and site plan designs,
and created site visualizations to inform
scale.

Project Team
This document was prepared through
collaboration between the City of
Healdsburg and Opticos Design, Inc.

Opticos Design provided community
planning and urban design expertise,
prepared site testing illustrations and
visualizations, and facilitated community
engagement.

In parallel with this project, Economic &
Planning Systems produced a feasibility
analysis to complement the discussion of
increased density and affordability.
6 Healdsburg Downtown Housing Capacity Study Recommendations Memo Final Draft — March 29, 2024

1.1 Project Background Chapter 1 — Introduction

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1.2 Community Engagement
Public Workshop
The consultant team led a public
workshop to present the findings of
the capacity study and discuss how to
enable additional housing Downtown. The
workshop began with a presentation from
the consulting team that included a walkthrough of each site tested in Downtown, a comparison of existing zoning standards,
and a summary of a development
feasibility analysis for a selected site.

The community was able to engage
in a Q&A to clarify doubts and share
their input on the scale and form of
what future development could look
like in Healdsburg. Following the Q&A,
community members were invited to leave
written feedback on site testing summary
boards and engage in further conversation
with City staff and the consultant team.

To meet the needs of Healdsburg's
community, the outreach event provided
Spanish translation.

The feedback from the workshop showed
the community was generally pleased with
the tested scale, but some were interested
in pushing the zoning envelope further to
increase density and affordability of new
units.

Below: The consultant team
and city staff facilitated a
presentation and Q&A followed
by an open house where
community members could
engage one-on-one with the
consultant team and staff.

Final Draft — March 29, 2024 Healdsburg Downtown Housing Capacity Study Recommendations Memo 7 Chapter 1 — Introduction 1.2 Community Engagement

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Packet Pg. 148 Attachment: HDH_Recommendations Memo_Final Draft_Optimized (4414 : Downtown Housing Capacity Study) In this chapter

2.1 Site Testing 10

2.2 Estimating Downtown's Housing Capacity 24

CHAPTER
2 Opportunity
Site Testing
Final Draft — March 29, 2024 Recommendations Memo 9

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2.1 Site Testing
Site Testing Overview
Site testing is essential to understand
compatible physical form with the existing
surrounding context and to identify
regulatory barriers to developing particular
housing types. Five site tests were
completed across two study areas: the
Service Commercial (CS) zoning district
and the Downtown Commercial (CD)
zoning district.

Site Selection
Site testing was performed using real sites,
which were selected based on:
■ Potential capacity for new housing
■ Current site location and conditions
(vacant/underutilized, etc.)
■ Repeatability of findings across multiple
sites throughout Downtown Healdsburg
Site Testing Process
■ Identify prototypical sites.
■ Develop “high” and “low” yield scenarios.
“High” yield maximizes site potential
with structured parking; “low” yield
maximizes site potential with surface
parking.
■ Select a preferred scenario with staff
direction.
■ Use this preferred scenario to identify
existing barriers (e.g. policy, zoning) and
shape recommendations.

CS Development Assumptions
■ Maximum height: 40 ft
■ Parking ratio: 1 space per unit minimum
■ Maximum lot coverage: 60%
■ Minimum building and parking setbacks:
10 ft rear
CD Development Assumptions
■ Maximum height: 50 ft
■ Parking ratio: 1 space per unit minimum
■ Maximum lot coverage: 100%
■ Minimum building and parking setbacks:

None
Target Unit Mix
Unit Type Area Mix
Studio 500 sf 20 %
1 Bedroom 700 sf 30 %
2 Bedroom 900 sf 40 %
3 Bedroom 1200 sf 10 %
10 Recommendations Memo Final Draft — March 29, 2024

2.1 Site Testing Chapter 2 — Opportunity Site Testing

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Packet Pg. 150 Attachment: HDH_Recommendations Memo_Final Draft_Optimized (4414 : Downtown Housing Capacity Study) I
I
DR
SC
O/HR
I
MR
DC
O/HR
PQP
DC
MU
SC
MR
HR
O/HR
O/HR
M
DC
PQP
PQP
MR
DR
PQP
PQP
PQP
MHR HR
MR
GROVE
FITCH
PIPER
NORTH
CENTER

RAILROAD
GRANT
EAST
MILL
VINE
PRINCE
BROWN

SHERMAN
PLAZA

JOHNSON
MASON
HAYDON

LINCOLN
MOORE

LARKSPUR
FOSS

COLLEGE

WEST GRANT
SUN
ESON
HARMON

FOSS CREEK

MARIGOLD
GRATER
SHORT

W MATHESON

RAILROAD

LINCOLN

RAILROAD

COLLEGE

RAILROAD

W NORTH

MATHESON
ALLEY 1 (PVT)
ALLEY 2 (PVT)
ALLEY 4 (PVT)
ALLEY 5 (PVT)

MITCHELL (PVT)
ALLEY 3 (PVT)

MARION (PVT)
(PVT)
N
General Plan Land Use
Legend
Site Test Boundaries
SC - Service
Commercial
DC - Downtown
Commercial
MR - Medium Density
Residential
MHR - Medium High
Density Residential
HR - High Density
Residential
DR - Downtown
Residential
O/HR - Mixed Use
Office/High Density
Residential
I - Industrial
PQP - Public/Quasi
Public
Site Test A: Rite Aid
525 Healdsburg Avenue
Site Test B: Bank of America
502 Healdsburg Avenue
Site Test C: West Plaza Parking Lot
Between Matheson and North Streets
Site Test D: City-owned Parking Lot
434 Healdsburg Avenue
Site Test E: Gas Station
456 Healdsburg Avenue
Final Site Testing Selection
Final Draft — March 29, 2024 Recommendations Memo 11
Chapter 2 — Opportunity Site Testing 2.1 Site Testing

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Packet Pg. 151 Attachment: HDH_Recommendations Memo_Final Draft_Optimized (4414 : Downtown Housing Capacity Study) Site A
Rite Aid
Address
525 Healdsburg Ave.

Targeted study area
Service Commercial Zone
Current site condition
Commercial uses with
supporting parking lot
Site dimensions
600 ft wide x 330 ft deep
(approx.)
Existing Conditions
This site is at the southwest corner of
Healdsburg Avenue and Grant Street
where the downtown transitions to
residential zones to the north. The site
consists of one-story strip retail buildings
with parking in front and it backs onto
the SMART railroad right-of-way and Foss
Creek.

Vision
The design concept for this site focuses
retail along Healdsburg Avenue, responds
to residential context to the north and
introduces a new pedestrian pathway
through the site. Healdsburg Avenue is
lined with three-story mixed-use buildings
with non-residential uses at the ground
floor and residential dwellings on the
upper floors. House-form multi-unit
buildings front onto Grant Street to
respond to residential context to the north.

Multi-unit corridor buildings front onto
an intimate pedestrian way, forming a
new address on this deep parcel. Surface
parking is placed behind buildings to
shield the view from Healdsburg Avenue.

All corridor and mixed-use buildings also
include tuck-under parking screened from
the public realm with active ground floor
uses.
• •• •• • • ••• ••• •• •• • ••• • • •••• • • • •••• •• •• •• •••••••••••••••••••••••••••••••••••••••••••• Housing Capacity Study
Healdsburg, CA
October 2023
Aerial Basemap - Rite Aid
0 25 50
ft
Overview
Above: Example of corridor
buildings fronting onto a
pedestrian way
Healdsburg Ave.

Grant St.
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2.1 Site Testing Chapter 2 — Opportunity Site Testing

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Packet Pg. 152 Attachment: HDH_Recommendations Memo_Final Draft_Optimized (4414 : Downtown Housing Capacity Study) Key Regulatory Barriers
Parking standards. Currently, the site requires 1.5 spaces per unit, and 1 guest space per 3 units. The design concept provides 1.1 spaces per unit. Commercial parking is also required (1 space per 150-300 sf, depending on specific use). The design concept does not include commercial parking.

Density. The prototype tested 45 du/acre, exceeding the current maximum of 16 du/acre.

Site Test Assumptions + Yields
# of Units (du) 189
# of Buildings 13
Bldg type Mixed-Use Multiplex Double-loaded
Corridor
Height (stories) 3 3 3
Bldg width (ft) 120-151 60 94
Bldg depth (ft) 60-95 60 60
Density (du/ac) 45
FAR 1.4
Parking spaces (sp) 211
Parking ratio (sp/du) 1.1
Parking type Surface and Tuck-under
Front setback (ft) 5
Lot width (ft) 600 (approx.)
Lot depth (ft) 330 (approx.)
Lot area (ac) 4.2
Design Concept + Site Testing Outcome
Image capture: Nov 2018 © 2024 Google
Nov 2018
Google Street View
Healdsburg, California
Above: Conceptual site plan. Arrows indicate
vantage point for perspective renderings.

Healdsburg Ave.

Above: Views of existing conditions and renderings depicting the design vision for this site.

Renderings and site plan are illustrative only. They represent hypothetical build-outs used to calculate potential new housing and do not represent an actual development proposal.

Existing Existing
Grant St.

Final Draft — March 29, 2024 Recommendations Memo 13
Chapter 2 — Opportunity Site Testing 2.1 Site Testing

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Packet Pg. 153 Attachment: HDH_Recommendations Memo_Final Draft_Optimized (4414 : Downtown Housing Capacity Study) Site B
Bank of America
Address
502 Healdsburg Ave.

Targeted study area
Service Commercial Zone
Current site condition
Bank of America building
with supporting parking
lot and two residential
outparcels
Site dimensions
330 ft wide x 185 ft deep
(approx.)
Pictometry International, Maxar, Microsoft
Housing Capacity Study
Healdsburg, CA
October 2023
Aerial Basemap - Bank of America
0 25 50
ft
Overview
Healdsburg Ave.

Piper St.

Center St.

Existing Conditions
This site spans from Healdsburg Avenue
to Center Street where the downtown
transitions to residential zones to the
east. The site consists of a one-story
commercial building with parking in front
and incorporates two adjacent outparcels.

Vision
Mixed-use buildings front onto Healdsburg
Avenue, Piper Street and Center Street.

These buildings have non-residential
uses at the ground floor and residential
dwellings on the upper floors. The mixeduse buildings frame a pedestrian path leading to a mid-block cottage court. The
one and a half story cottages front semiprivate green space shielded from the busy streets by the mixed-use buildings.

This cottage court responds to conditions
to the north of the site which include two
existing cottages fronting a shared drive.

Tuck-under parking is provided under
mixed-use buildings with additional
surface parking to meet a one-to-one
parking ratio. Parking is intentionally
placed behind buildings to reduce its
impact on the public realm.

Below: Rendering of the midblock cottage court envisioned in the center of the site. The
semi-private green space
connects to Piper Street via a
pedestrian path between the
mixed-use buildings lining the
street.
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2.1 Site Testing Chapter 2 — Opportunity Site Testing

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Packet Pg. 154 Attachment: HDH_Recommendations Memo_Final Draft_Optimized (4414 : Downtown Housing Capacity Study) Key Regulatory Barriers
Parking standards. Currently, the site requires 1.5 spaces per unit, and 1 guest space per 3 units. The design concept provides 1.0 spaces per unit. Commercial parking is also required (1 space per 150-300 sf, depending on specific use). The design concept does not include commercial parking.

Density. The prototype tested 45 du/acre, exceeding the current maximum of 16 du/acre.

Site Test Assumptions + Yields
# of Units (du) 65
# of Buildings 9
Bldg type Mixed-Use Cottage Court
Height (stories) 3 1.5
Bldg width (ft) 83-155 24
Bldg depth (ft) 60 31
Density (du/ac) 45
FAR 1.3
Parking spaces (sp) 65
Parking ratio (sp/du) 1.0
Parking type Surface and Tuck-under
Front setback (ft) 5
Lot width (ft) 330 (approx.)
Lot depth (ft) 185 (approx.)
Lot area (ac) 1.5
Design Concept + Site Testing Outcome
Above: Conceptual site plan. Arrows indicate
vantage point for perspective renderings.

Healdsburg Ave.

Above: Views of existing conditions and renderings depicting the design vision for this site.

Renderings and site plan are illustrative only. They represent hypothetical build-outs used to calculate potential new housing and do not represent an actual development proposal.

Existing Existing
Piper St. Center St.

Final Draft — March 29, 2024 Recommendations Memo 15
Chapter 2 — Opportunity Site Testing 2.1 Site Testing

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West Plaza Parking Lot
Address
East of Vine St. between
North St. and Matheson
St.

Targeted study area
Downtown Commercial
Zone
Current site condition
Public surface parking lot
Site dimensions
220 ft wide x 540 ft deep
(approx.)
Existing Conditions
This is a large surface parking lot providing
public parking for Downtown. It is adjacent
to a multi-use pathway (Foss Creek
Pathway) on the west side of the parcel,
and Foss Creek/Foss Creek Parkway on
the east side of the parcel. On the east
side, there is a pedestrian bridge crossing
over Foss Creek that connects the parking
lot to the Foss Creek Parkway and provides
a direct connection to Healdsburg Plaza a
half block away.

Vision
The design concept for this site includes
three buildings: a four-story mixed-use
podium building along North Street, a
four-story mixed-use building with tuckunder parking along Matheson Street, and a parking garage with a residential
liner between the mixed-use buildings.

The mixed-use buildings include nonresidential uses at the ground floor, residential dwellings on the upper floors,
and a fourth story stepback to reduce
the scale and provide semi-private open
space for residents. The mixed-use
building fronting North Street has fourth
story stepbacks on the north, east, and
west elevations and would include a
usable terrace over podium parking in the
back, giving residents another amenity.

The mixed-use building fronting Matheson
Street has a fourth story stepback on the
south elevation. The parking structure in
the center would supply parking for other
uses in Downtown and is shielded from
view with apartment units.

A new street connects North Street to
Matheson Street. This creates frontage
onto the existing park, increases
connectivity across the large block, and
provides vehicular access to alleys on
site. The design concept also introduces
different pedestrian experiences along the
ground floor including a new landscaped
pathway on the western front, a pocket
plaza space, and an expanded sidewalk on
North Street with shopfronts.

Overview
Vine St.

Matheson St.

North St.
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2.1 Site Testing Chapter 2 — Opportunity Site Testing

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Packet Pg. 156 Attachment: HDH_Recommendations Memo_Final Draft_Optimized (4414 : Downtown Housing Capacity Study) Key Regulatory Barriers
Parking standards. Currently, the site requires 1.5 spaces per unit, and 1 guest space per 3 units. The design concept provides 1.0 spaces per unit. Commercial parking is also required (1 space per 150-300 sf, depending on specific use). The design concept does not include commercial parking.

Density. The prototype tested 57 du/acre, exceeding the current maximum of 16 du/acre.

Design Concept + Site Testing Outcome
Above: Conceptual site plan. Arrows indicate
vantage point for perspective renderings.

Vine St.

Matheson St.

North St.

Above: Views of existing conditions and renderings depicting the design vision for this site.

Renderings and site plan are illustrative only. They represent hypothetical build-outs used to calculate potential new housing and do not represent an actual development proposal.

Existing Existing
Site Test Assumptions + Yields
# of Units (du) 151
# of Buildings 3
Bldg type Mixed-Use Mixed-Use
Podium
Parking Garage
with Liner
Height (stories) 4 4 4
Bldg width (ft) 126 174 244
Bldg depth (ft) 149 104 158
Density (du/ac) 57
FAR 1.4
Parking spaces (sp) 465 (see Parking Summary in bottom left) Parking ratio (sp/du) 1.0
Parking type Structured and Tuck-under
Front setback (ft) 0
Lot width (ft) 220 (approx.)
Lot depth (ft) 540 (approx.)
Lot area (ac) 2.6
Parking Summary
Residential 151 spaces
Non-residential 264 spaces*
SMART parking** 50 spaces
Total 465 spaces
*This is the number of existing spaces on site today.
**At time of evaluation, site was under consideration
for future SMART station location. Excess parking
could be repurposed as additional public parking.

Final Draft — March 29, 2024 Recommendations Memo 17
Chapter 2 — Opportunity Site Testing 2.1 Site Testing

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Packet Pg. 157 Attachment: HDH_Recommendations Memo_Final Draft_Optimized (4414 : Downtown Housing Capacity Study) Site D
City-owned Parking Lot
Address
434 Healdsburg Ave.

Targeted study area
Downtown Commercial
Zone
Current site condition
Public surface parking lot
Site dimensions
140 ft wide x 145 ft deep
(approx.)
Existing Conditions
This is an infill lot fronting Healdsburg
Avenue. There is an alley in the rear. It
is surrounded on the north side by a
small, vacant, one-story building, and on
the south side by a driveway. One-story
strip retail buildings are located directly
behind the site across the rear alley. The
site is used as a public parking lot serving
commercial uses downtown.

Vision
The design concept for this site includes a
four-story mixed-use podium building with
non-residential uses at the ground floor
and residential dwellings on the upper
floors. The fourth story steps back to
reduce the scale and provide semi-private
open space for residents. There would be
a usable terrace over podium parking in
the back, giving residents another amenity
and providing a nice view for units facing
east. The blank wall along the south side is
an opportunity for public art.

Parking for this project would be located
within the podium at the ground floor.

Commercial space and a residential lobby
serving the units above line Healdsburg
Avenue, screening the structured parking
in the rear. Pictometry International, Maxar, Microsoft Housing Capacity Study
Healdsburg, CA
October 2023
Aerial Basemap - 434 Healdsburg Ave
0 25 50
ft
Healdsburg Ave.

Overview
18 Recommendations Memo Final Draft — March 29, 2024

2.1 Site Testing Chapter 2 — Opportunity Site Testing

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Packet Pg. 158 Attachment: HDH_Recommendations Memo_Final Draft_Optimized (4414 : Downtown Housing Capacity Study) Key Regulatory Barriers
Parking standards. Currently, the site requires 1.5 spaces per unit, and 1 guest space per 3 units. The design concept provides 1.0 spaces per unit. Commercial parking is also required (1 space per 150-300 sf, depending on specific use). The design concept does not include commercial parking.

Density. The prototype tested 65 du/acre, exceeding the current maximum of 16 du/acre.

Site Test Assumptions + Yields
# of Units (du) 21
# of Buildings 1
Bldg type Mixed-Use Podium
Height (stories) 4
Bldg width (ft) 135
Bldg depth (ft) 130
Density (du/ac) 65
FAR 1.9
Parking spaces (sp) 21
Parking ratio (sp/du) 1.0
Parking type Structured
Front setback (ft) 0
Lot width (ft) 140 (approx.)
Lot depth (ft) 145 (approx.)
Lot area (ac) 0.3
Design Concept + Site Testing Outcome
Above: Conceptual site plan. Arrows indicate
vantage point for perspective renderings.

Healdsburg Ave.

Above: Views of existing conditions and renderings depicting the design vision for this site.

Renderings and site plan are illustrative only. They represent hypothetical build-outs used to calculate potential new housing and do not represent an actual development proposal.

Existing Existing
Final Draft — March 29, 2024 Recommendations Memo 19
Chapter 2 — Opportunity Site Testing 2.1 Site Testing

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Packet Pg. 159 Attachment: HDH_Recommendations Memo_Final Draft_Optimized (4414 : Downtown Housing Capacity Study) Site E
Gas Station
Address
456 Healdsburg Ave.

Targeted study area
Downtown Commercial
Zone
Current site condition
Unoccupied lot with
vacant building, former
gas station
Site dimensions
145 ft wide x 155 ft deep
(approx.)
Existing Conditions
This is an unoccupied corner lot fronting
Healdsburg Avenue and Piper Street. It is
surrounded on the south side by a onestory commercial building, and on the east side by a one-story strip retail building. The
site was formerly used by a gas station, but
currently does not have a tenant.

Vision
The design concept for this site includes a
four-story mixed-use podium building with
non-residential uses at the ground floor
and residential dwellings on the upper
floors. The fourth story steps back along
Healdsburg Avenue and Piper Street to
reduce the scale and provide semi-private
open space for residents. There would be
a usable terrace over podium parking in
the back, giving residents another amenity
and providing a nice view for units facing
southeast.

Parking for this project would be located
within the podium at the ground floor.

Commercial space and a residential lobby
serving the units above line Healdsburg
Avenue and Piper Street, screening the
structured parking behind it.

Pictometry International, Maxar, Microsoft
Housing Capacity Study
Healdsburg, CA
October 2023
Aerial Basemap - Gas Station
0 25 50
ft
Healdsburg Ave.

Piper St.

Overview
20 Recommendations Memo Final Draft — March 29, 2024

2.1 Site Testing Chapter 2 — Opportunity Site Testing

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Packet Pg. 160 Attachment: HDH_Recommendations Memo_Final Draft_Optimized (4414 : Downtown Housing Capacity Study) Key Regulatory Barriers
Parking standards. Currently, the site requires 1.5 spaces per unit, and 1 guest space per 3 units. The design concept provides 1.0 spaces per unit. Commercial parking is also required (1 space per 150-300 sf, depending on specific use). The design concept does not include commercial parking.

Density. The prototype tested 63 du/acre, exceeding the current maximum of 16 du/acre.

Site Test Assumptions + Yields
# of Units (du) 32
# of Buildings 1
Bldg type Mixed-Use Podium
Height (stories) 4
Bldg width (ft) 145
Bldg depth (ft) 155
Density (du/ac) 63
FAR 1.9
Parking spaces (sp) 32
Parking ratio (sp/du) 1.0
Parking type Structured
Front setback (ft) 0
Lot width (ft) 145 (approx.)
Lot depth (ft) 155 (approx.)
Lot area (ac) 0.5
Design Concept + Site Testing Outcome
Above: Conceptual site plan. Arrows indicate
vantage point for perspective renderings.

Above: Views of existing conditions and renderings depicting the design vision for this site.

Renderings and site plan are illustrative only. They represent hypothetical build-outs used to calculate potential new housing and do not represent an actual development proposal.

Existing Existing
Piper St.

Healdsburg Ave.

Final Draft — March 29, 2024 Recommendations Memo 21
Chapter 2 — Opportunity Site Testing 2.1 Site Testing

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Packet Pg. 161 Attachment: HDH_Recommendations Memo_Final Draft_Optimized (4414 : Downtown Housing Capacity Study) Visualizing the Northward Extension of
Downtown's Character
This illustrative rendering depicts the preferred massing from the site tests of both Site E (Gas Station site, shown in the foreground) and Site B (Bank of America, shown in the background).

The deeper study provided the opportunity to apply
design guidelines such as:
"6.41 Articulate a building to express a human scale,
reduce perceived mass and create visual interest"
■ The site includes stepbacks at the fourth story, pilasters, awnings, and stringcourses. (See above for a previous
iteration without setbacks to see the impact to scale.) "6.42 Where compatibility with traditional buildings is important, such as Downtown, articulate a building into modules that relate to the traditional building form and scale"
■ Proportion and massing as well as moldings, openings, materials and colors found in downtown were carried
through the design.

Sites B and E
Form and Character Study
Existing
Right: This photo shows the
existing conditions – the
"before" condition for the
rendering to the right. Site E is
currently a defunct gas station
that has been cleaned out and
is ready for redevelopment.

It neighbors one-story retail
buildings like the one at the
far right of the photo. In the
background of this photo is the
Bank of America site, which is
Site B in this study.
22 Recommendations Memo Final Draft — March 29, 2024

2.1 Site Testing Chapter 2 — Opportunity Site Testing

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Packet Pg. 162 Attachment: HDH_Recommendations Memo_Final Draft_Optimized (4414 : Downtown Housing Capacity Study) This type of drawing helps illustrate hypothetical new infill development in the character and style of Downtown Healdsburg. This rendering is illustrative only. It represents hypothetical build-outs used to calculate potential new housing and does not represent actual design intent.

Final Draft — March 29, 2024 Recommendations Memo 23
Chapter 2 — Opportunity Site Testing 2.1 Site Testing

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Packet Pg. 163 Attachment: HDH_Recommendations Memo_Final Draft_Optimized (4414 : Downtown Housing Capacity Study) Adding the housing capacity of parcels studied in Site
Tests and additional vacant/underutilized parcels results in a total Downtown Housing Capacity of 852 units.

2.2 Estimating Downtown's
Housing Capacity
Methodology
Based on the densities achieved from the site tests in the Service Commercial (CS) and Downtown Commercial (CD) zoning districts, it is reasonable to assume that other opportunity sites throughout Downtown Healdsburg could yield similar densities. The City identified five additional opportunity sites to estimate a housing yield throughout the Downtown. Assuming a density of 45 du/ac on CS opportunity sites and a density of 65 du/ac on CD opportunity sites, density calculations were applied to these sites to estimate potential for housing Downtown.

Estimated Housing Capacity
Housing Capacity on Parcels studied in Site Tests
Site Zone Address Parcel Number(s) Yield
Site A CS 525 Healdsburg Avenue 002-113-007, 002-113-022, 002-113-027, 002-113-036, 002-113-037, 002-113-038,
002-113-039, 002-113-040
189
Site B CS 502 Healdsburg Avenue 002-112-003, 002-112-017, 002-112-025 65 Site C CD West Plaza Parking Lot 002-182-033 151
Site D CD 434 Healdsburg Avenue 002-171-041 21
Site E CD 456 Healdsburg Avenue 002-171-038 32
Total Housing Capacity on Site Tested Parcels 458
Housing Capacity on Additional Vacant/Underutilized Parcels Existing Conditions Zone Address Parcel Number(s) Yield Ford Dealership CD 453 Healdsburg Avenue 002-113-042, 002-113-043 110 Strip Retail CD 415 to 455 Center Street 002-171-042 220 Vacant CD 330 Center Street 002-193-015 8
Office Building CD 150 North Street 002-193-016 31
Bank CD 450 Center Street 002-163-007 25
Total Additional Housing Capacity on Other Vacant/Underutilized Parcels 394 24 Recommendations Memo Final Draft — March 29, 2024

2.2 Estimating Downtown's Housing Capacity Chapter 2 — Opportunity Site Testing

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Final Draft — March 29, 2024 Recommendations Memo 25
Chapter 2 — Opportunity Site Testing 2.2 Estimating Downtown's Housing Capacity

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CHAPTER
3 Recommendations
In this chapter

3.1 Zoning District Recommendations 28

3.2 Complementary Actions to Consider 30

3.3 Right-Sizing Residential Parking Requirements 31

3.4 Emerging Best Practices on Density and FAR 32

3.5 Implementation Tools 34
Final Draft — March 29, 2024 Downtown Housing Capacity Study Recommendations Memo 27

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Packet Pg. 167 Attachment: HDH_Recommendations Memo_Final Draft_Optimized (4414 : Downtown Housing Capacity Study) Recommendations for Service Commercial (CS) and Downtown Commercial (CD) Zoning Districts Regulation Existing
Standard
Proposed
Standard
Implementation
Tool
Rationale
Density 16 du/acre
max.

CS Zone:
45 du/acre
max.

CD Zone:
65 du/acre
max.

General Plan
amendment or
Specific Plan
These recommended densities reflect the findings from the site testing analysis described in Chapter 2.

In the Service Commercial (CS) zone, 45 du/acre was the resultant density of the City's desired unit mix within the existing zoning envelope and achieving a 1 space/unit residential parking ratio. This density reflects an assumption of surface and tuck-under parking behind ground-floor retail.

In the Downtown Commercial (CD) zone, 65 du/acre was the resultant density of the City's desired unit mix within the existing zoning envelope and achieving a 1 space/unit residential parking ratio. This density reflects an assumption of one level of podium parking behind ground-floor retail.

This increased density can enable smaller, more attainable units on infill parcels where a developer's best options today are large luxury units or hotels.

Parking for
Multi-Unit
Dwellings

1.5 spaces
per unit
min.
1 space per
unit min.

Zoning code
update or
Specific Plan
This reduced parking ratio aims to make infill development at the desired density more financially feasible for developers. As parking is space-intensive and expensive, higher parking ratios will disincentivize developers from offering more units, discouraging residential development that approaches the new density maximum. 1 space per unit is a minimum parking requirement that has worked well in other places. This reduced parking ratio should be paired with alternative mobility strategies like onsite car-share.

See Section 3.4 (Right-Sizing Residential Parking) for more detail.

Parking for
Retail
1 space per
150 sf to
300 sf min.
(depending
on use)
No parking
required
Zoning code
update or
Specific Plan
Particularly on small infill sites, parking requirements make it difficult to realize development potential due not only to the cost of providing parking but also because of the physical constraints of the lot. The parking ratio for retail square footage is more demanding than the parking ratio for residential square footage and can be difficult to physically accomplish.

The City maintains public parking lots throughout the downtown which can serve visitors to new non-residential uses. It is also unlikely that each new infill use will generate a unique additional demand for parking, as opposed to visitors "parking once" and walking to a series of nearby shops or restaurants. Eliminating the parking requirement for small retail spaces, provided there is adequate parking on nearby parcels, can help enable mixed-use development on this corridor.

3.1 Zoning District Recommendations
28 Downtown Housing Capacity Study Recommendations Memo Final Draft — March 29, 2024

3.1 Zoning District Recommendations Chapter 3 — Recommendations

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Packet Pg. 168 Attachment: HDH_Recommendations Memo_Final Draft_Optimized (4414 : Downtown Housing Capacity Study) Recommendations for Service Commercial (CS) and Downtown Commercial (CD) Zoning Districts Regulation Existing
Standard
Proposed
Standard
Implementation
Tool
Rationale
Adjacency
standards
10' height
reduction
for a lot
adjacent to
a residential
zone
10' height
reduction
for the
first 50 ft
adjacent
to a
residential
zone
Zoning code
update or
Specific Plan
Two of the opportunity sites tested in the CS zone (Rite Aid and Bank of America) were adjacent to lots with residential zoning. Because these opportunity sites are large parcels, or would likely undergo lot consolidation prior to redevelopment, this height reduction would apply over the entire large parcel. This reduces the development potential beyond what meaningfully impacts the adjacent parcel.

Establish an impacted distance from the triggering lot line, such as 50 feet, after which the height limit is no longer reduced.

Ground
floor nonresidential
uses
Groundfloor nonresidential
use
required in
CS and CD
zones
Eliminate
this
standard
in the CS
zone, if
supported
by a retail
study
Zoning code
update or
Specific Plan
Non-residential uses are currently required on the ground floor in both CS and CD zones. Evaluate in a retail study whether there is enough demand to support additional non-residential uses on opportunity sites in these zones. There was some public perception during the public engagement for this study that there is limited demand for additional retail space; this should be confirmed.

If this limited demand is confirmed through a retail study, eliminate the requirement for ground-floor retail in the CS zone since this covers a broader geography and is further from the downtown. Keep this requirement as it is in the CD zone since this is the heart of downtown.

Additional Strategies to Consider
Density
minimums
Consider density minimums that capture the City's housing goals for priority infill sites.

Unbundling
parking
Unbundling parking, i.e. offering tenants the option to lease a dwelling unit without also leasing a parking space, can help bring down unit costs for individual tenants and can reduce the number of parking spaces required in a development.

Massing
and
articulation
Consider requiring massing strategies such as upper-story stepbacks and facade articulation to reduce the perceived bulk of new development. These are currently captured in design guidelines, but could be included in objective design standards.

Final Draft — March 29, 2024 Downtown Housing Capacity Study Recommendations Memo 29 Chapter 3 — Recommendations 3.1 Zoning District Recommendations

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3.2 Complementary Actions to Consider
Recommendations for Complementary Housing-Supportive Actions Housing-Supportive Action Implementation
Tool
Rationale
Streetscape improvements
that include wider sidewalks at
pinch points downtown (such
as Healdsburg Avenue)
Streetscape Plan
or Specific Plan
As the fabric of the downtown continues north, some sidewalks may need to be expanded to accommodate the increased pedestrian activity.

Growth Management
Ordinance (GMO) adjustment
GMO amendment Exempt the CS and CD zones, or another specific geography of priority infill site(s) in downtown such as the West Plaza Parking Lot, from the Growth Management Ordinance.

Additional public parking Downtown Master
Plan or Specific
Plan
Preserve and expand the city's public parking pool in downtown in order to enable new residential mixed-use buildings in the downtown. 30 Downtown Housing Capacity Study Recommendations Memo Final Draft — March 29, 2024

3.2 Complementary Actions to Consider Chapter 3 — Recommendations

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3.3 Right-Sizing Residential
Parking Requirements
What is the right ratio?
This study presents a recommended
change to reduce the parking minimum
to 1.0 spaces per unit. This lower parking
requirement opens up possibilities for new
kinds of development, particularly on infill
parcels that are physically constrained.

While most households own cars, not all
do. Some household types may not have a
car and rely instead on carshare, rideshare,
or active transportation like walking or
biking – for example, a single person who
may want to live in a studio apartment.

Other household types may have more
than one car, like a family who may want to
live in a two- or three-bedroom apartment.

Some cities choose to respond to these
trends by regulating parking through a
sliding scale of parking requirements
based on unit type. For example, studios
may require 0.5 spaces per unit, while
two-bedroom units may require 1.5 or 2
spaces per unit.

In a multifamily project that includes a
diversity of unit types (like studios, onebedroom units, two-bedroom units, and three-bedroom units), this sliding scale
approach often yields a resultant parking
ratio of approximately one space per
unit, which is the minimum parking ratio
recommended in this study.

Note that there is no recommendation
to impose a parking maximum at this
time. A developer may choose to offer
more parking spaces than this required
minimum if they determine that the market
demands it.

Podium Parking and Parking Lifts
The site testing and density
recommendation for the Downtown
Commercial (CD) zone assumes that this

1.0 space per unit parking requirement
would be accommodated in a single story
of podium parking at the ground floor.

As some downtown hotels have proven,
parking lifts can be an excellent tool to
accommodate extra parking in an efficient
way. Parking lifts can effectively double
the parking capacity of a single-level
podium, removing the cost burden of
expanding the podium to a second level
and preserving the rest of the zoning
envelope for housing. This also means
that a developer who chooses to provide
more than 1 space per unit using parking
lifts could still achieve the maximum
density recommended in this study.

Note that while parking lifts are well-suited
for hotel uses and residential uses, they
are likely not the best parking strategy
for short-term customer parking for
non-residential uses based on the modest
additional time required to retrieve a
vehicle.

Final Draft — March 29, 2024 Downtown Housing Capacity Study Recommendations Memo 31 Chapter 3 — Recommendations 3.3 Right-Sizing Residential Parking Requirements

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3.4 Emerging Best Practices
on Density and FAR
Density, FAR, and Predictability of
Built Form
Density alone as a regulatory tool does
not always result in predictable built form.

Factors such as building length, size, and
bulk, and the type and sizes of dwelling
units can result in buildings with similar
densities and different built outcomes.

When the State Density Bonus is applied
to mixed-income projects, the resultant
building form can deviate even further
from expectations. Density cannot yield
predictable built form results.

FAR (floor area ratio) can result in more
predictable buildings especially when
used with other, form-based regulations
to guide the outcome of the zoning
envelope. FAR measures the ratio of total
usable built floor area to the area of the
lot. As an example, a single-story building
that covers 100 percent of its lot has an
FAR of 1.0, as does a two-story building
that covers 50 percent of the lot. In this
way, FAR directly regulates building square
footage relative to lot size, which yields a
level of predictability in a building's mass,
an important aspect of built form that
can complement other building form
standards in the zoning code or Objective
Design Standards.

Regulating with FAR Instead of
Density
Given density's inability to deliver
predictable built form, an emerging best
practice is to replace density with FAR as a
regulatory tool.

Some opponents of eliminating density
requirements fear that it will result in
buildings with very high numbers of
micro-units or single room occupancy
(SRO) units. While unlikely, additional
standards can be considered to prevent
this situation, such as establishing
minimum requirements for "family units" or
2+ bedroom units in multi-family projects.

Eliminating density does not jeopardize
density bonus projects. FAR can be used
instead of density to determine base
entitlements and also to determine density
bonus allocations, as described in the El
Cerrito example on the facing page.

Establishing FAR Standards
Rather than establishing FAR maximums
up-front, determining FAR standards
after other form standards have been
established can better ensure that FAR
furthers the City's goals for desired built
form.

The process of determining potential built
outcomes in the opportunity site testing
in this project can be helpful to determine
an appropriate resultant FAR for projects in
Healdsburg. Further site testing can help
to determine appropriate FAR levels for
future housing projects in Healdsburg.
32 Downtown Housing Capacity Study Recommendations Memo Final Draft — March 29, 2024

3.4 Emerging Best Practices on Density and FAR Chapter 3 — Recommendations

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Packet Pg. 172 Attachment: HDH_Recommendations Memo_Final Draft_Optimized (4414 : Downtown Housing Capacity Study) Examples From Other Communities
Several other California cities have
begun to eliminate density standards
and rely on FAR instead. The following
are some examples from Northern
California.

Roseville
Roseville has recently adopted standards
that allow projects to meet either
density maximums or FAR maximums,
whichever is more permissive. With its
moderate density maximum (36 du/ac)
and relatively high FAR maximum (4.0),
FAR is likely to effectively replace density
as the applicable regulatory tool for new
projects.

San Rafael
In its 2020 General Plan, San Rafael
eliminated density standards for
its downtown and now relies on
FAR instead. The intention behind
this change was to increase the
predictability of built form as the City
pursues its housing goals. This policy
change was implemented in the
Downtown Precise Plan, which makes no
mention of density.

El Cerrito
In its 2014 San Pablo Avenue Specific
Plan, El Cerrito eliminated density
standards for the San Pablo Avenue
Specific Planning Area. The City has
established the legal precedent for
using FAR in awarding state density
bonuses by awarding additional square
footage rather than additional density to
state density bonus recipients.

Roseville
El Cerrito
San Rafael
Above: Locations of example communities in Northern California Final Draft — March 29, 2024 Downtown Housing Capacity Study Recommendations Memo 33 Chapter 3 — Recommendations 3.4 Emerging Best Practices on Density and FAR

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3.5 Implementation Tools
Increasing Maximum Density
Modifications to the density maximum
would require an amendment to the City's
General Plan as well as the applicable
zoning districts. Depending on the scope
of the required changes, this may trigger
environmental review, but would provide
development streamlining for future
projects.

Consideration of density increases will
also require assessments of available
infrastructure and may raise questions
about the need for public realm
improvements and or downtown programs
that can help to accommodate additional
density.

Zoning Changes
Any zoning amendment or update process
may want to incorporate objective design
standards to further streamline the review
process for new housing.

Planning Processes
In order to concurrently address multiple
elements related to downtown housing, a
downtown planning process could offer
an efficient path to comprehensively
considering these changes. The planning
vehicle for these changes may be a
Specific Plan, a Master Plan, or a Precise
Plan.

Specific Plan
A Specific Plan could provide a vehicle
to consider both private development
potential and public infrastructure, policy,
and programs, and tailored development
and design standards in one central
document. A Specific Plan would provide
a vehicle for program-level Environmental
Review of the impacts that adding
additional density to the downtown might
create and how/where they could be
mitigated.

However, Specific Plans can be costly
and can take a long time to prepare
(for example, two to three years). This
may not be required or may not be an
optimum use of resources, for example,
if public investment is not expected to be
significant.

Master Plan or Precise Plan
A Master Plan or a Precise Plan process
is a more streamlined alternative to a
Specific Plan. This planning process could
keep a narrower focus on new downtown
housing, even though environmental work
will still be required to amend the General
Plan.

The city may want to consider the timing
of the next General Plan update and
whether or not it would be appropriate to
time this concurrently with a downtown
Master Plan or Precise Plan. This way, the
downtown area could be considered as
part of a citywide environmental impact
assessment.

Based on the need for environmental
review to accompany a density increase,
it will take time to efficiently realize the
potential for new housing downtown
through either the Specific Plan route or a
Master Plan/Precise Plan route.
34 Downtown Housing Capacity Study Recommendations Memo Final Draft — March 29, 2024

3.5 Implementation Tools Chapter 3 — Recommendations

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CITY OF HEALDSBURG

RSA AGENDA STAFF REPORT
MEETING DATE: April 15, 2024
SUBJECT: Public Art Grant Awards
PREPARED BY: Garrett Perdigao, Recreation Manager
STRATEGIC INITIATIVE(S):

Effective & Efficient Government
RECOMMENDED ACTION(S):

Adopt a Resolution approving Healdsburg Public Art Grants for the 2023-2024 program year.

COMMUNITY ENGAGEMENT/OUTREACH:

The Community Services Department notified artists through the City’s social media, the Healdsburg Creative Leadership Team, Parks and Recreation Commission, Senior Center Advisory Committee, and the Healdsburg City Council. Staff also promoted the opportunity through the ‘News Flash’ on the City website, and notified past applicants of the this year’s grant opportunity.

BACKGROUND:

In 2018, the Parks and Recreation Commission and City Council established goals to engage the community in defining the role of art through the creation of a community-based arts and culture master planning process. The arts and culture master planning process was a community-led initiative with a Creative Leadership Team comprised of community members serving as the project's steering committee. City Council adopted Healdsburg's first ever Arts and Culture Master Plan in August 2021. The Plan outlines five major goals:
• Build the Structural Foundation for Arts and Culture
• Enrich Cultural Experiences for Our Community and Our Visitors • Foster and Grow an Inclusive Creative Economy
• Advance Art in the Public Realm
• Support Development of Arts and Cultural Spaces
City Council allocated $50,000 in the FY2023-24 budget to continue implementation of the Arts and Culture Master Plan. Staff worked with the Creative Leadership Team to develop an implementation plan for Fiscal Year 2022-23 that staff presented to City Council in September 2022, which included the following actions:

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• Research and develop a proposed percent for the arts ordinance for City Council consideration.
• Participate in the parks design (and other improvement projects) to look at art integration in the design.
• Support development of community-based art initiatives like the return of the Arts Festival and the Scarecrow Festival.
• Help to develop information outlets.
• Finalize the inventory of the public art installations; develop a maintenance program and promotion of public art pieces.
• Develop an independent arts/culture brand and website for Healdsburg. • Work to strengthen ties between the Arts and Culture Community and the Business Community, potentially through partnership and collaboration with the Chamber of Commerce.

The Creative Leadership Team also recommended the following priorities for investing the $50,000 towards the Arts and Culture Plan implementation:

1. Develop a grant program for local grants, including a focus on temporary art installation programs.

2. Pursue external grants through a grant writer.

3. Allocate funding for maintenance of existing public art.

4. Discuss revitalizing the Cultural Trust Fund that the City created in 1989 with a contribution from two trustees (initial donation of $69,680; initial principal amount is non-expendable, but any interest earned can be used to fund grants for cultural activities).

In the 22-23 fiscal year, the City initiated its first public art grant solicitation, aiming to enhance the cultural vibrancy of the community. Several diverse projects were selected for funding, each contributing uniquely to the artistic landscape of Healdsburg.

Fiscal Year 22-23 Project Highlights:

1. Adopt – A – Stop ($2,500): This project proposed replacing a conventional stop sign pole with a sculptural version at Center and Matheson Streets. Although the proposed location was not deemed feasible, alternative sites were explored to ensure broader community engagement and support. A location on the Foss Creek Pathway near the Carson Warner Memorial Skatepark was selected. Installation is pending but will be coming this Spring.

2. Indigenous Voices ($5,000): Four literary events at THE 222 showcased the rich cultural heritage and traditions of indigenous communities in Northern California. These events served as platforms for education, dialogue, and celebration.

3. Prune Box Derby ($5,000): Inspired by San Francisco's 'Artist’s Derby,' this immersive art event aimed to revive a joyful legacy within the Healdsburg community. While initially planned, the event did not proceed due to logistical challenges and the funding will be returned.

4. Voigt Family Sculpture Foundation Ned Kahn Sculpture ($20,000): This collaboration with the Voigt Family Sculpture Foundation and renowned sculptor Ned Kahn expanded public art placement along the Foss Creek Pathway. The installation was completed along the Foss

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Creek Pathway on the E & M building in early November 2023. Feedback on the installation has been mixed with some expressing expectations that the installation would be larger. As a result, staff has implemented additional grant application criteria that includes a requirement for an illustration of any proposed visual public art.

5. Foss Creek Pathway Fence Beautification ($2,500): Funding supported the creation of woven yarn art on a section of Foss Creek Pathway fencing. Through collaborative sessions, various groups contributed to enhancing the visual appeal of the pathway, fostering a sense of ownership and pride within the community. The installation happened in sections that took place in the fall of 2023 resulting in completion by early November 2023.

6. Ballet Folkorico ($5,000): Ballet Folkorico Yolotl continued its longstanding tradition of performing Mexican ballet in Healdsburg and neighboring communities. This collaboration between Ballet Yototl and Latinos Unidos del Condado de Sonoma celebrated cultural diversity and promoted artistic excellence.

7. Museum Lighting Project ($5,000): This project aimed to illuminate the front of the Healdsburg Museum with programmable LED lights, creating energy and excitement after dark. Additionally, banners will be installed on the museum's exterior to complement the nighttime experience, enriching the cultural ambiance of the area. The light installation was completed in early January 2024. Banners will be coming soon.

8. Healdsburg Center for the Arts Art After Dark ($2,500): Funding supported Art After Dark, a free, community arts event held during the summer months. The event provided fun, creative evenings for residents and visitors, while also increasing opportunities for local artists to showcase their work. The 2023 event was held on June 23. Due to the time of year, it wasn’t actually dark during the event so organizers are planning to move the date to the fall in 2024.

DISCUSSION/ANALYSIS:

As part of the City's efforts to foster and enhance our creative community, the City opened the second Public Art Grant Program solicitation in January 2024, highlighting one of the outcomes of the Arts and Culture Master Plan and the City's dedicated financial commitment to supporting the arts community. Eligible applicants included local artists, creators, and non-profit organizations interested in expanding the role of arts in our community. Any artwork that is intended to enrich the public environment for City residents and visitors was eligible, including sculptures, murals, paintings, graphic arts, mosaics, photography, crafts, mixed media, environmental works, and performing arts. The art may be temporary or permanent.

The program closed the second round of proposals for public grant funding on February 2 at 5:00 PM. Artists were invited to submit proposals for public art projects that reflect the unique character and identity of Healdsburg and contribute to the community’s cultural and economic vitality. The City received a total of twenty-two (22) proposals totaling $210,000 in requests.

Members of the Creative Leadership Team, a staff member from Healdsburg Unified School District, and the Parks and Recreation Commission Arts Subcommittee made up a grant review committee that reviewed the grant requests based on artistic merit, community impact, feasibility, alignment with the Arts and Culture Master Plan, and budget.

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Grant Recommendations
Projects recommended for funding (detailed proposals provided as attachments) include:

Lil’ Moha $700
Lil’MoHA (Little Museum of Healdsburg Art) is a proposed Free Little Art Gallery similar to the popular Little Free Library, but with a focus on small artworks instead of books. The Gallery is proposed to be developed at a private residence at the intersection of East Street and North Street with easy access for public viewing and participation. The project is intended to democratize art and foster a community of creativity and sharing. The Lil’MoHA would be a space where anyone can contribute or take home small pieces of art. It’s a testament to the belief that art should be accessible to all, irrespective of one’s background or expertise.

The 222 - $10,000
This proposal is intended to continue to underwrite funding for literary and cultural events at The 222, highlighting culture and traditions of indigenous communities in Northern California. In addition, the grant would fund a program on the fictional depiction of Martin Luther King Jr’s last night at the Lorraine Motel on the eve of his assassination. The 222 would host a total of five productions in April, September, October, November, and January 2025 with exact dates to be determined. While there is a fee for the events, the proposed grant award would help support free or discounted admission for those in need.

Your River - $5,000
This proposed visual installation builds a sense of community around the Russian River and its vital role in Healdsburg, demonstrating how artwork can connect audiences to important ecological issues. Screens would be deployed in public locations around town with live feeds of aspects of the Russian River. Currently confirmed participants hosting a video display are:

Cartograph tasting room, Craftwork co-working space, Livingston Projects at Loft120, Harmon Guest House. Future participants could include high-traffic locations such as City offices, tasting rooms, coffee shops, real estate agencies, hotels, gyms, etc. This installation is meant to be temporary, but would show the life of the Russian River over the change of seasons.

Infinity Mirror - $2,500
This proposed tree-like sculpture installation would serve as a captivating focal point within the Healdsburg Library, inviting patrons to explore the intersection of art, science, and technology.

Standing as a symbol of growth, interconnectedness, and infinite possibilities, the would be crafted using reflective materials to create mesmerizing illusions of depth and dimension. Its interactive elements would allow visitors to engage with the artwork on multiple levels, encouraging them to contemplate their own place within the vast universe of knowledge housed within the library's walls. This proposal would be installed in the Library from May – August, then decommissioned prior to the Library undergoing renovation.

Ballet Folkorico - $7,300
This proposal continues to fund Ballet Folkorico Yolotl as the program enters its 38th year performing Mexican ballet in Healdsburg and neighboring communities. The project is a collaboration between Ballet Yototl, Yolanda Giron, Founder and Director based in Healdsburg,

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and Latinos Unidos del Condado de Sonoma, a community based non-profit organization founded on December 12th, 1966. The proposed funding would help with the purchase of costumes and support overall costs of the program. Ballet Folkorico performs all year around.

Harmon House Temporary Mural - $19,000
This project proposes to paint a temporary mural directly on the window façade of the Harmon House located at 227 Healdsburg Ave. Over a six-month timeframe, the mural would allow for the light to transform the artistic image from both within and outside of the hotel, giving viewers a daytime and nighttime experience. The artist would engage the community in ‘Community Workshops’ and begin the installation in June 2024.

The following applications were not selected for funding during this cycle:
• Changing Perceptions One Resident at a Time - $5,600
o Climate Fest performance by Rocio la Dama de la Cumbia • Healdsburg Museum Night Illumination Phase 2 - $5,000 o Add additional banner on Fitch Street and add ground level interpretive graphics to the Healdsburg Museum.
• Sonoma Art School – Community Arts Day and Public Art Project- $14,500 o Free drop-in arts program for all ages and abilities to explore and create at everyone’s own pace. Done in monthly open studio events led by experienced artists/instructors.

Offered in English and Spanish.
• Corazon Healdsburg and Raizes Collective Mural - $20,000 o Community Mural with ideas, vision and identity portrayed in the art through community focus groups including promotoras, Comite de Corazon, North Bay Arts Collective. • Kinship Sonoma: A Writing Workshop - $2,350
o Two literary events hosted by a prominent Bay Area AAPI author and a memoir-writing workshop.
• Shakespeare in the Park - $5,000
o Nine performances of ‘Two Gentlemen of Verona’ in August at West Plaza Park. • Brenda York – Artist - $10,795
o Acrylic and mixed media painting on canvas. 42” x 90” • Harvest Joy – The Crush Sculpture – Funding amount not identified o Sculpture that embodies our agricultural heritage and today’s business and tourist focus, providing a timeless symbol of our town’s multi-cultural identity. • Poppy Car Hood Sculpture - $20,300
o California poppy re-visioned in Volkswagen Beetle hoods to be installed near the Grove Street roundabout.
• Metamorphose II - $2,700
o Three stainless steel mobiles that are strapped to existing trees to create a visual conversation.
• Jordy Morgan – Sculpture - $15,000 - $20,000
o Steel wire and stone pieces in the style of the rock bottles near Barn Diva. o Carved redwood piece as a gateway to the new walking paths • Transparencies in Time Sculpture- $5,000
o Interactive, multidisciplinary, and kinesthetic audio-visual sculpture

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• Healdsburg Plaza Rainworks Gallery - $2,500
o Spraying superhydrophobic biodegradable paint sprayed through student-made stencils onto concrete. When the sidewalk gets wet through rain or fountain the concrete the pavement will darken except the area stenciled
• Ashlie Benton – Mural - $18,400 - $20,900
o Create a mural on an undetermined wall in Healdsburg. Approximate area 30’ x 40’. • Healdsburg Jazz Festival - $2,500
o Series of five live rehearsals and one free public performance presented in downtown Healdsburg by the Healdsburg Jazz All-Stars Band.

Grant Administration
Each artist would be required to enter into a Grant Agreement that would specify the length of time for the installation, as well as the artist’s responsibility in permissions, setup, maintenance, and take down of the project at the conclusion of the installation. Any projects that are being installed on private property must be readily accessible to the public and would require the artist to enter into an additional agreement with the individual property owner where the installation is to take place.

Future Work
With the planned creation of an Arts and Culture Commission, staff has paused work temporarily on other initiatives proposed in the Arts and Culture master plan implementation work plan. Staff anticipates bringing forward a framework for the Commission as part of the budget process.

ENVIRONMENTAL STEWARDSHIP:

Most proposed projects are accessible by transit, bicycle, and walking. Staff and artists would promote alternative modes of transportation whenever possible to view the new artwork that has been placed around the City.

ALTERNATIVES:

City Council may choose to make grant awards different than those recommended.

FISCAL IMPACT:

City Council allocated $50,000 to implement the Arts and Culture Master Plan in the approved Fiscal Year 2023-24 Community Services Operating budget. The grant recommendations total $50,000 in grant funding. The grants are issued in advance, but if a project doesn’t occur, the grant agreement requires the artist to return the funding to the City. Any funding returned is credited back to the Community Services Fund.

ENVIRONMENTAL ANALYSIS:

Review and approval of the Public Art Grant award is not subject to the provisions of the California Environmental Quality Act (CEQA) because approval of the grant award is not a project, since it will not have a direct or reasonably foreseeable indirect impact on the environment.

ATTACHMENT(S):

Public Art Grant Resolution 2024

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Lil' Moha Proposal
Your River Proposal
Ballet Folkorico Proposal
The 222 Proposal
Harmon House Temporary Mural Proposal
Infinity Mirror Proposal
Healdsburg Public Art Grants - English 2024 (1)

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CITY OF HEALDSBURG
RESOLUTION NO. _____-2024

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG APPROVING PUBLIC ART GRANTS FOR
PROGRAM YEAR 2024
WHEREAS, the City Council of the City of Healdsburg, recognizes the importance of public art in fostering community engagement, enhancing cultural vibrancy, and enriching the quality of life residents and visitors; and
WHEREAS, the Healdsburg Public Art Grant aims to support local artists and creative projects that contribute to the cultural landscape of our community; and WHEREAS, the City Council adopted the Arts and Culture Master Plan to build the structural foundation for Arts and Culture, enrich cultural experiences for our community and visitors, foster and grow an inclusive creative economy, advance art in the public realm and to support development of arts and cultural spaces; and
WHEREAS, the City Council acknowledges the need to establish a comprehensive framework for the administration and allocation of funds for the Public Art Grant; and WHEREAS, included in the fiscal year 2023-24 budget is $50,000 in appropriations; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg does hereby approve the 2024 Public Art Grant funding for the following projects in the amounts indicated:

Lil’ Moha $ 700
Your River 5,000
Infinity Mirror 8,000
Ballet Folkorico 7,300
The 222 10,000
Harmon House Temporary Mural 19,000
Total $ 50,000
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Healdsburg this 15 th day
of April 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. 184 Attachment: Public Art Grant Resolution 2024 (4356 : 23-24 Public Art Grant Awards) Art, in its many forms, is a universal language that connects and inspires people. Recognizing this, we propose to establish the Lil’MoHA (Little Museum of Healdsburg Art) on East Street in Healdsburg, a project aimed at democratizing art and fostering a community of creativity and sharing. The Free Little Art Gallery (FLAG) concept is akin to the popular Little Free Library, but with a focus on small artworks instead of books. The Lil’MoHA will be a space where anyone can contribute or take home small pieces of art. It’s a testament to the belief that art should be accessible to all, irrespective of one’s background or expertise.

The primary objective of Lil’MoHA is to:
• Encourage community members to engage in artistic
creation, regardless of their skill level.
• Foster a sense of community through the sharing and
appreciation of local art.
• Make art accessible to everyone, highlighting that art ownership and creation are not limited to those with formal training or financial means.

Location and Structure: The Lil’MoHA will be located at 316 East Street, on private property easily accessible from the public sidewalk. The location at the corner of East Street and Plaza Street is convenient to residents, tourists, students, and visitors to the Healdsburg Senior Center. It’s also just off the Plaza where many galleries (with much larger pieces of art) are located. While we don’t have the budget to hire the latest starchitect, the gallery will be a weatherproof, visually appealing structure securely mounted to a post or fence. See the attached sketch for our vision of the structure.

Community Involvement: Local artists, schools, and community groups will be invited to contribute to the Lil’MoHA. The ethos “Take Art. Leave Art. Love Art” along with information about how to participate will be clearly displayed at the site. Special thematic “exhibitions” will be organized to inspire and educate community members about creating art.

Promotion and Awareness: The initiative will be promoted through local media, social networks, and community events to encourage participation. Many Free Little Art Galleries have an online presence on Instagram or Facebook (search for #freelittleartgallery for examples).

HEALDSBURG PUBLIC ART GRANT PROGRAM
Lil’ MoHA
A Free Little Art Gallery for Healdsburg
Above: Examples of existing Free Little Art Galleries
What’s a Free Little Art Gallery (FLAG)?
The Free Little Art Gallery website (freelittleartgalleries.art) provides information about the global art movement. There’s no official organization, and each of the 415 mapped locations have been built and maintained by individuals or organizations around the world. The closest gallery to Healdsburg is located in Santa Rosa. See the online map for more locations.

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Packet Pg. 185 Attachment: Lil' Moha Proposal (4356 : 23-24 Public Art Grant Awards) Artwork Guidelines: The art pieces should be small enough to fit within the gallery space. All forms of art are welcome — paintings, sculptures, pottery, crafts, etc. The key is that they should be made with the intention of sharing and spreading joy.

We intend to initially set the structure up to contain one shelf for paintings and drawings, and a second shelf for a “sculpture gallery.” The goal is that there is a constant rotation of artwork.

Maintenance and Management: Residents at 316 East Street and other recruited volunteers will oversee the maintenance and regular organization of the gallery. This will ensure that the space remains a welcoming and inspiring place for all, always containing new and rotating artwork.

The Free Little Art Gallery on East Street will not just be a place for art exchange; it will symbolize a community’s commitment to inclusivity, creativity, and shared joy. It will be a testament to the idea that art is for everyone — to create, to own, and to enjoy. We look forward to making this vision a reality and seeing the diverse expressions of our community’s talents and passions.

Project Contact
Noah Jeppson
316 East Street, Healdsburg, CA 95448
214-300-5735
[email protected]
Project Budget
TOTAL for Supplies $700.00
Project Timeline
Construction/Installation April-June 2024
Project Completion June 28, 2024
Above: Proposed Location of Lil’MoHA
Above: Sketch of Lil’MoHA

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Packet Pg. 186 Attachment: Lil' Moha Proposal (4356 : 23-24 Public Art Grant Awards) City Of Healdsburg Public Art Grants Proposal
Contact: Linus Lancaster, [email protected], (707) 892-3912 Your River, Downtown
A collaboration between artists Linus Lancaster, Hugh Livingston, and students at Healdsburg Unified School District.

Your River, Downtown builds a sense of community around the Russian River and its vital role in Healdsburg, demonstrating how artwork can connect audiences to important ecological issues. The project is data-driven, collaborating with Russian Riverkeeper to monitor real-time aspects of the River, and artistically presented, using color, texture and line to depict the community narrative. We celebrate the River with video screens in public places that bring live images and river education to everyone. It is Your River, Downtown.

Project Details
Content
• Live video feeds from the River, above and below the water. • Animations showing river flow, turbidity, temperature, capacity, potential and other key performance indicators that the community should understand. • Animations showing all the creeks that feed the Russian River watershed (there are FOUR Mill Creeks?!)
• Artwork by team leaders and students that interprets the River experience and entertains a Healdsburg audience.

Instantiation
A computer-based ‘dashboard’ of data feeds realized as artwork, live video, and other rich content, displayed on large video screens.

Presentation
Screens will be deployed in public locations around town. Currently confirmed participants hosting a video display are: Cartograph tasting room, Craftwork co-working space, Livingston Projects @Loft120, Harmon Guest House. Future participants would likely include high-traffic locations such as City offices, tasting rooms, coffee shops, real estate agencies, hotels, gyms, Chamber of Commerce visitor center.

Technology
Ultra-high definition video displays, media players, content management system (CMS), javascript dashboard software, real-time API data capture from web sources, real-time broadcasting waterproof cameras installed above and below water, generative art software (javascript).

Artwork

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Packet Pg. 187 Attachment: Your River Proposal (4356 : 23-24 Public Art Grant Awards) Hugh and Linus have varied artistic practices to bring to this project: creating painting pigments drawn from local soils, deriving color palettes seen in the surface of the Russian River, using animated text to show how the creeks flow, and more common practices such as photography, sound recording, and video. These media will be used to create vivid artistic content on video screens that give voice to the River, interpreted by the student participants, as well as interested community members.

Student and Community Participation
Linus Lancaster will be directing his Art and Climate Club students at Healdsburg High School. This creates the opportunity for younger people to get involved, learn about local ecology, help with the research for digital content, and learn the software and techniques used to create the displayed videos. We hope to include River live-streamed video to enhance the currency of the downtown experience. Thus, we look to the COH Public Art Grant as seed money for a longer-term series of community-engaged art projects.

Building On Experience: Where We Are Now
Linus and his students have been developing a floating platform and ceramic buoys (aesthetic objects, plus functionality) that can be used to deploy underwater cameras at River sites. This engages students in construction, materials, and problem-solving, and connects environmental understanding to the artwork that will result from these processes. Hugh has been programming software for interpretation of real-time data, and generating artistic responses to depict riverflow and other key indicators, with the cooperation of local agencies and organizations such as Riverkeeper.

Scope of Grant Project
• Purchase and deploy one video screen (Cartograph), and utilize existing video infrastructure (Craftwork, Harmon Guest House, Livingston Projects) to bring the River downtown.
• Purchase action camera and direct students in collecting River footage • Lead students to explore artistic responses to data, develop visualizations that can be seen on the screens, and understand community calls to action on environmental issues through artmaking
Future Development
The project will ultimately grow into a community-centered art piece that creates great awareness of the River and its daily to seasonal to annual changes. We will seek to deploy many more screens around town so that the narrative of river health in our community is part of the daily rhythm of coffee or post office runs, and none of us lose track of the vitality of water in our midst. Future partners, beyond the scope of this seed grant, will be asked to provide a video screen as our canvas, and the content will be created with future artistic grants.

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Packet Pg. 188 Attachment: Your River Proposal (4356 : 23-24 Public Art Grant Awards) Project Partners
The two lead artists will bring together community contributions (particularly from youth) as they do with all of their projects and productions. Confirmed partners are Russian Riverkeeper, Harmon Guest House, Gallery @Loft120, Craftwork, Cartograph Wines, Medlock Ames Winery, HUSD.

Artists’ Qualifications
Linus Lancaster is a sculptor and conceptual artist who has been teaching drawing, ceramics, construction, and maker classes at Healdsburg High School since 2002. For a number of years he has also been teaching ceramics, STEAM, and rocketry to younger students through the Healdsburg Center for the Arts and Corazon. Prior to the pandemic he was volunteering as an adjunct professor of English for the Prison University Project at San Quentin. He has a BFA in illustration from USF, an MA in art practice and philosophy from SSU, and a PhD in art practice and soil studies from Plymouth University (UK). All of his graduate-level work has been done in collaboration with his students at HHS. He has done a number of large scale public installations in and around Healdsburg. Most of his current work is focused on local ecology and early radio technology. He and his students have published several book chapters and articles in international scholarly journals on subjects such as art theory, ecology, and political interventionism.

Hugh Livingston is a composer and media artist, working with sound, video, ecology, and data visualization. Hugh graduated cum laude in music from Yale, recipient of the Bach Society Prize for excellence in musicianship and contribution to musical life at Yale. He has an MFA from the California Institute of the Arts and a doctorate from the University of California, San Diego.

Dr. Livingston has been a Smithsonian Artist Research Fellow, Artist in Residence at Fort Mason Center for Arts & Culture at the Golden Gate National Recreation Area, McKnight Foundation Fellow Composer in Residence in Minneapolis, and the recipient of numerous grants from foundations such as Rockefeller, Getty, Doris Duke, Andrew Mellon, Fleishhacker, and Haas. He was four-time sound artist-in-residence at the Dumbarton Oaks Gardens in Washington, DC. Listen Edgemar, his first of 58 sound installations around the world, was created for a Frank Gehry-designed building in Santa Monica. His most recent book contribution is on contemporary sound garden design, from Harvard University Press. His sound and video work re-interpreting ancient Chinese bells has been on view at the Smithsonian’s Freer|Sackler Galleries of Asian Art for three years.

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Packet Pg. 189 Attachment: Your River Proposal (4356 : 23-24 Public Art Grant Awards) Hugh has worked in collaboration with Russian Riverkeeper since 2010 to produce Riverrelated projects: sound and video installations, Catch & Release, at Slaughterhouse Space; a permanent sound garden, Sound & Place, at the Sonoma County Museum; a river opera, Stages of the Russian River, at Warnecke Ranch & Vineyards; Vineyard Voices, a GPS-enabled immersive sound app at Medlock Ames Winery’s Bell Mountain Ranch; a video gallery installation, Livingston Projects, at Loft120; an interactive mobile sound app for the Illuminations project with Jessica Martin in downtown Healdsburg; and currently on view at the Harmon Guest House, Healdsburg Metrics, a multi-channel video installation featuring oak trees, creek flows, and river rock.

Project Budget (requesting at Individual Artist Grant level) Timeline (April–August, 2024)
Video Screen (43” UHD Commercial Video Display, 400 NITS, 18/7 operation)
$820
GoPro action camera for River documentation, mounts and filters 320 Installation hardware 210
Promotional Costs (postcards and social media management) 140 Student materials 85
Artists’ Stipend 925
Total $2,500
April-May Complete related student art projects
April Record videos, prepare initial video sources, with a planned debut at the Healdsburg Climate Festival
May Arrange publicity and install screen at a selected public downtown location June Capture additional river footage and build additional video files July Deploy screens at new locations around town.

August Fundraising for next phases

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Packet Pg. 190 Attachment: Your River Proposal (4356 : 23-24 Public Art Grant Awards) Fields Required
Ballet Folkorico Yolotl - Latinos Unidos del Condado de Sonoma 14315 Hendricks Street, Healdsburg CA 95448
Contact: Zeke Guzman Email: [email protected]
Phone: 707-484-3695
Funding Requested: $7,900
Artist Credentials:

Yolanda Giron, Founder/Director & primary instructor has dedicated her life to working with children as a certified primary education teacher in Mexico, and in Healdsburg as an instructional aid for the Even Start Schools Program. At the young age of 5 she began participating in ballet folkoricos in Oaxaca. She continued her involvement in ballet folkorico through her years in highs school and college. Ms. Giron also taught ballet folkorico for 10 years as a primary school teacher in Mexico. For thirty-eight (38) years she has been volunteering in the Healdsburg Schools and community providing ballet folkorico instruction.

Ms. Giron founded the first children’s ballet in Healdsburg 1986.

Juan R. Gonzalez: Instructor: Has over 15 years’ experience dancing ballet folkorico in Mexico.

Like many ballet instructors Mr. Gonzalez also became involved in ballet at the age of 12 in his home state of Jalisco, Mexico. He danced and instructed ballet folkorico in in the state Jalisco for 10 years. In 2009 he founded and directs the Ballet Paquilloyotzin in Petaluma. Mr.

Gonzalez began to provide instruction with Ballet Yolotl on June 2021, to expand the performance capability from other regions of Mexico, allowing for a wider diversification and presentation by Ballet Folkorico Yolotl.

Project Proposal:

Ballet Folkorico Yolotl with gratitude submits this proposal for second year of funding from City of Healdsburg Public Arts Program. Yolanda Giron’s Ballet Folkorico Yolotl wishes to continue to be part of Healdsburg Public Arts program with her 38 years being of service to the community. The project is a collaboration between Ballet Yototl, Yolanda Giron, Founder & Director, based in Healdsburg, and Latinos Unidos del Condado de Sonoma, a community based non-profit organization founded on December 12th 1966. The history and objective of both

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Packet Pg. 191 Attachment: Ballet Folkorico Proposal (4356 : 23-24 Public Art Grant Awards) organizations is to promote and share the value of Mexico’s rich culture and arts in Healdsburg and throughout Sonoma County. We are proud of this collaborative partnership between our organizations to continue to bring the beauty and value of our culture through ballet folkorico to our communities. The Ballet Folkorico Yolotl is very proud to enter the second year of being one of programs under the Healdsburg Parks and Recreation Department. The program is open to all members of the community. The Healdsburg Latinx community is happy and proud that the City of Healdsburg’s Parks & Recreation Department embraced our culture and the value Ballet Folkorico Yotolt brings to the community.

Ballet Yolotl is open to all age groups. At present the youngest member of the ballet is 5 years old and the eldest is 62. The ballet folkorico currently has over 50 participants. In addition to the cultural value of ballet folkorico, Ms. Giron understands other import significant values that the ballet brings to participants and our community that include: valued shared time between parents and children, creating a family learning experience & closer bonding between parents and children, stress reduction from the pressures of daily life, physical exercise and feeling of wellness, and a sense of belonging to the community.

During the 2023 funding period the Ballet Folkorico Yolotl performed at 16 invents that included: elementary, middle schools and high schools, and community events in northern Sonoma County. Performances focused primarily in Healdsburg but performances were also held in Cloverdale, Geyserville and Windsor. Specific performances were outlined in our yearend 2023 report submitted to the Parks and Recreation Department.

Project Description:

Each region or state of Mexico brings unique customs and culture. Ballet Folkorico Yolotl provides instruction on the significance and the history of dances from the states of Chapas, Jalisco, Michoacan, Nuevo Leon, Oaxaca, Veracruz and Yucatan. Instruction and coaching is provided by two dance instructors and guest workshop instructors who are knowledgeable of dances from various states. This year the ballet participants will learn and perform new danzas from other regions of Mexico, to include the states of Hidalgo, Nayarit, and San Luis Potosi.

Participants receive instruction and learn dances from all regions. Each participant with the support and assistance from the director and instructors will decide and choose 3 or 4 danzas they will perform throughout the year.

Project Budget:

Funds requested will be used for three primary expenses to support the work of Ballet Folkorico Yolotl. Provide a stipend allowance for one part time instructor. Funds will also be used to pay two guest instructors to provide instruction for two workshops on the new danzas at an estimated cost of $500 workshop. In addition dance costumes for the three new regions will be purchased at a cost of $1,500 per region. Ballet Yolotl is seeking assistance and contribution from other donors.

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Packet Pg. 192 Attachment: Ballet Folkorico Proposal (4356 : 23-24 Public Art Grant Awards) The funding request for specific expenses to help sustain the ballet are:

Part time instructor (Juan Gonzalez) $600 per month X 4 mos = $ 2,400 Custom dance attire 3 regions X $1,500, $ 4,500
Two Dance workshops at $500 x 2 sessions $1,000
TOTAL BUDGET $7,900
Fiscal Responsibility: Latinos Unidos del Condado del Sonoma is a Condado de Sonoma is a nonprofit 501 (c) (3) community non-profit organization founded on Dec 12th, 1966. IRS nonprofit status number 17053100314002. Originally incorporated as “United Latins of Sonoma County” reincorporated to translated name to “Latinos Unidos del Conadado de Sonoma" in 2012. Latinos Unidos Del Condado de Sonoma is an all-volunteer organization. Our three main objectives are 1) to promote and share our rich culture with our community. 2) Provide education/college scholarship to low income students Latinx students. 3) Promote and hold annual health fairs in Northern Sonoma County in partnership with heath organizations in our area.

Project Time Table
The Ballet Folkorico Yolotl operates nine (9) months out of the year, March through November of each year. As an official program of the Parks and recreation Department practices are held Tuesday’s and Thursdays from 6:30 to 8:30 pm at the Healdsburg Community Center. This year the ballet will start practicing on March 5th and conclude on November 13th, 2024.

Ballet Folkorico Yolotl will continue to perform at various community events in Healdsburg and other neighboring communities thorough November 13, 2024.

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Packet Pg. 193 Attachment: Ballet Folkorico Proposal (4356 : 23-24 Public Art Grant Awards) Healdsburg Community Arts Grant
Indigenous Voices of Northern California
@THE222
THE 222
Healdsburg’s premiere performing arts non-profit 501(c)(3) was formed in 2018, received it’s IRS certification in 2019 and opened with a protracted schedule of performances due to Covid restrictions in August 2021. It features a year-round public schedule of events in the areas of literary readings, community conversations, jazz music, classical music, choral music, film screenings, theater, and opera.

Our nine experienced programmers have brought and will bring well-known artists from the U.S. and abroad offering exceptional performances to Healdsburg and the greater Bay Area. A major factor in THE 222’s success is the encouragement of artist and community interaction and the accent on intimate performances.

Another aspect of our program is an engagement with students from Healdsburg area schools, offering students free tickets to all events, encouraging participation in many of the programs (including our bi-annual literary open mic nights) of THE 222, as well as offering opportunities for students to explore interest in possible careers in the arts.

THE 222 is housed in the heart of Healdsburg within the Paul Mahder Gallery, a 10,500 square- foot space uniquely conducive to intimate, multi-disciplinary, and creative performance experiences hard to match anywhere else. The space is flexible enough to provide a concert venue suitable for audiences of 50 to 200 people.

Our Mission
To present an extensive calendar of outstanding events and experiences in the performing arts to members of the Healdsburg, Sonoma County, the wider Bay Area community and visitors from around the world. To recognize and encourage youth participation in the arts as an investment in our cultural future. To nurture a diverse community spirit through discussion, communal interaction and reflection, and collective interaction between local and international artists, and audiences representing all members of the community.

Presenting performance works of interest to, and accessible for, the diverse community of Healdsburg, as well as the entire Bay Area community, is our primary goal at THE 222. Our intention is to be a welcoming place where diverse populations and age groups find entertainment, encouragement, engagement, and most importantly… a sense of community.

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Packet Pg. 194 Attachment: The 222 Proposal (4356 : 23-24 Public Art Grant Awards) Description of proposed project:

As part of the 2023/24 event schedule at THE 222, assisted by the first Healdsburg Public Arts Grant, we launched, as a part of our larger literary series, an on-going collection of events focused specifically on the culture and traditions of the Indigenous communities that are a part of our Northern California heritage.

During the present (23/24) season and the beginning of the 2024/25 season THE 222 will be presenting five literary events specifically highlighting these traditions and opening up to additional engagement from the community in general and students in particular through our bi-annual community open mic nights.

The exact dates for specific events have yet to be determined but the general scheduling plan is as follows:

Sunday April 28, 2024 - Bi-annual Community Poetry Night and Workshop As a launch to this collection of poetry events our Bi-annual open-mic night will invite people from throughout the Healdsburg community to participate in our on-going program of community poetry.

Poetry gets to the heart of human experience in a way that few other written forms do.

During this “open-mic” poetry reading, we invite all present to share poems that speak both to and from the heart. Bring a poem you love, or an original work authored by yourself, and share in a brief exchange with the audience how the poem speaks to you.

This event is free to the public, and all are welcome to attend.

An important feature of these open mic nights is the student participation from English classes at HHS, a significant part of our campaign to engage young people in a deeper exploration of the arts at THE 222.

This program also includes free student admission to all shows at THE 222 throughout the year.

Poetry Workshop in Conjunction with Open Mic:

Indigenous Environmental Values and Creative Expression Lenape-heritage author Denise Low will discuss Native perspectives regarding naturehuman intersections and how these enrich writing. In a small workshop setting before the open mic presentation, she will guide student writers toward exploring their own ecological values and how to incorporate them into their writing.

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Packet Pg. 195 Attachment: The 222 Proposal (4356 : 23-24 Public Art Grant Awards)

OCTOBER
Learning about California Indigenous History—Deborah Miranda in Conversation with Denise Low
What should children—and adults—learn from California Indigenous peoples and how? This series presents Indigenous people who address ways teachers, parents, and others can present positive lessons from Indigenous experience about history, environment. Deborah Miranda, author of Bad Indians: A Tribal Memoir (PEN Oakland– Josephine Miles Literary Award; Independent Publisher Book Award, Gold Medal for Autobiography/Memoir; and shortlisted for the 2014 William Saroyan International Prize for Writing) She recounts her Ohlone and Latina upbringing, with attention to her encounter with the 4th grade state requirement for students to build a Spanish mission— where her enslaved forbears suffered immeasurably. Miranda published this groundbreaking book that lead to the termination of this project 20 years ago. hat Miranda, in conversation with Denise Low (Lenape heritage), considers what everyone should know about California history. She suggest how teachers, parents, and concerned citizens teach this history.

NOVEMBER
Learning about Environment: Indigenous Stories and Knowledge Kurt Schweigman is an enrolled Lakota poet living in Santa Rosa, whose new book features a distinctive outlook about the environment—its depredation since settler arrival and some hopeful responses in recent times. Clint McKay, Dry Creek Pomo, speaks to many groups about the importance of the Healdsburg environment to his people, the cultural and survival technologies, and the changes.

DECEMBER
Healing the Past with Kim Shuck and Denise Low
Kim Shuck, enrolled Cherokee and recent San Francisco Poet Laureate, has experienced historic trauma that can be traced back to the Trail of Tears. What does she achieve in her writings, prose and poetry, that can open dialogue for discussion and offer hope of reconciliation?
Denise Low, Lenape heritage, is publishing a documentary-poetic treatment of the 1782 Gnadenhutten massacre of converted Christian Delawares by renegade Calvinists who felt they were destroying people who opposed their god’s will. How can this tragedy, outlined in House of Grace, House of Blood (University of Arizona Press, Suntracks Series), offer hope to all people today?

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Packet Pg. 196 Attachment: The 222 Proposal (4356 : 23-24 Public Art Grant Awards)

DATE TBA
Healing Stories for the Land and People of Sonoma County Greg Sarris, Graton Rancheria chair and author, in conversation with Jane Ciabattari, Lenape Heritage
In his most recent book, Becoming Story: A Journey Among Seasons, Places, Trees, and Ancestors, Graton Rancheria chair Greg Sarris writes about his people’s population collapse and their land’s environmental alterations. His writings describe a painful history and also stories of resilience. He and prominent literary critic and fiction writer Jane Ciabattari discuss ways Indigenous peoples, through literary arts and action, approach the future.

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Packet Pg. 197 Attachment: The 222 Proposal (4356 : 23-24 Public Art Grant Awards) Biographies
Jane Ciabattari, a Sonoma County resident, is an award-winning short story writer and author of the acclaimed story collection Stealing the Fire. A Lit Hub columnist and regular contributor to BBC Culture, she is vice president/events (and former president) of the National Book Critics Circle, on the advisory board of The Story Prize, Lit Camp and the Bay Area Book Festival, and a Pushcart Prize contributing editor. Her reviews, interviews and cultural criticism have appeared in NPR, BBC Culture, the New York Times Book Review, Paris Review, the Washington Post, Boston Globe, the Los Angeles Times, and Parade, where she was a longtime contributing editor. More here:
www.janeciabattari.com
Denise Low, a former Kansas Poet Laureate, is winner of the Red Mountain Press Editor’s Choice Award for Shadow Light. Other recent books are Casino Bestiary (Spartan) and a memoir, The Turtle’s Beating Heart: One Family’s Story of Lenape Survival (University of Nebraska). A book of docupoetry House of Grace, House of Blood, is forthcoming from the University of Arizona Press in 2024. She founded the Creative Writing Program at Haskell Indian Nations University, where she taught and was an administrator. Her Ph.D. in English is from Kansas Univ. and MFA in Creative Writing is from Wichita State Univ. She teaches for Baker University’s School of Professional and Graduate Studies. She has Lenape and Munsee heritage.

Clint McKay Clint is the descendant of several important local culture bearers that include the late Laura Fish Somersal and the late Mabel McKay. He is a Native speaker of the Wappo language and he also speaks some Pomo and is himself a culture bearer with extensive Native historical knowledge, not only of Pepperwood but also of the entire region. McKay is a born naturalist with a deep understanding of plant communities and traditional Wappo methods of nurturing them. He is a gifted basket weaver and he serves on the Board of the California Indian Basket Weavers Association. McKay is also a traditional Wappo spiritual leader and he is the headman of a traditional dance group. McKay has a Master’s Degree in Indigenous Education.

Deborah A. Miranda was born at UCLA Hospital, the mixed-blood daughter of an Ohlone-Costanoan Esselen Nation man with Santa Ynez Chumash tribal ancestry, and an English/French and Jewish woman from Beverly Hills. In addition to Bad Indians, she is also the author of four poetry collections and coeditor of Sovereign Erotics: A Collection of Two-Spirit Literature. She earned her Ph.D in English Literature from the University of Washington in Seattle and taught for three years at Pacific Lutheran University in Tacoma before relocating to Lexington, Virginia. There, she was the Thomas H. Broadus Jr. Endowed Professor of English at Washington and Lee University, teaching literature of the margins and creative writing. She retired from that position in 2021 to focus on writing and creating community. In the Fall of 2022, Deborah and her spouse, writer Margo Solod, relocated to River Song Cohousing in

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Packet Pg. 198 Attachment: The 222 Proposal (4356 : 23-24 Public Art Grant Awards) Eugene, Oregon on the banks of the Willamette River—just a day’s ride south on the Coast Starlight to homelands in California.

Greg Sarris received his Ph.D. in Modern Thought and Literature from Stanford University, where he was awarded the Walter Gore Award for excellence in teaching.

He has published several books, including the widely anthologized collection of essays, Keeping Slug Woman Alive: A Holistic Approach to American Indian Texts, and Grand Avenue, an award-winning collection of short stories, which he adapted for an HBO miniseries of the same name and co-executive produced with Robert Redford. His last novel, Watermelon Nights, received rave reviews and was adapted for a play by the Santa Rosa Community College Theatre Arts Department. Greg has written plays for Pieces of the Quilt, Intersection Theatre, and the Mark Taper Forum.

His play, entitled Mission Indians, opened at the Intersection Theatre in San Francisco, February, 2002, and received the 2003 Bay Area Theatre Critics Award for Best Script. In spring 2008, Word for Word Theatre performed two of his new short stories in over 80 schools in the San Francisco Bay Area. He has completed a collection of short stories as well as a collection of children’s stories, How a Mountain Was Made, and is currently finishing a new novel.

Kurt Schweigman has published and performed as Luke Warm Water in the past. His poetry appears in Shedding Skins: Four Sioux Poets (Michigan State University Press, 2008). He was a featured poet at the prestigious Geraldine R. Dodge 12th Biennial Poetry Festival (2008) and was the first spoken-word poet to receive an Archibald Bush Foundation individual artist fellowship in literature (2005). Although retired from competition, he has won Poetry Slams from California to Germany. Kurt is currently writing his first novel, which is based on his prose poem “Sitting Bull in Paris.” Kim Shuck is a Cherokee Nation poet, author, weaver, and bead work artist who draws from Southeastern Native American culture and tradition as well as contemporary urban Indian life. She was born in San Francisco, California and belongs to the northern California Cherokee diaspora. She is an enrolled citizen of the Cherokee Nation of Oklahoma and also has Sac and Fox and Polish ancestry.[2] She earned a B.A. in art (1994), and M.F.A. in Textiles (1998) from San Francisco State University. Her basket weaving work is influenced by her grandmother Etta Mae Rowe and the long history of California Native American basket making. She has taught American Indian Studies at San Francisco State University and was an artist in residence at the de Young Museum in June 2010 with Michael Horse. On June 21, 2017, Mayor Ed Lee named Shuck as the 7th poet laureate of San Francisco.

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Packet Pg. 199 Attachment: The 222 Proposal (4356 : 23-24 Public Art Grant Awards) Project Budget
Artist Fees - $5000
Programmer Fees - $1500
Space and Equipment Rental - $4000
Free Student Tickets - $1000
Free Community Tickets - $2500
Promotion and Advertising - $1000
TOTAL EXPENSES - $15,000
Ticket Sales - $4,000
In-Kind Contributions - $1000
Healdsburg Arts Grant - $10,000
TOTAL INCOME - $15,000
Project Timeline
April - September 2024 - Project planning and development April 2024 - January 2025 - Five Productions (April, Sep, Oct, Nov, Jan, Exact datesTBD)
January 2025 - Completion and Report
The program will continue through the first half of the annual 2024/2025 season of THE 222.

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Packet Pg. 200 Attachment: The 222 Proposal (4356 : 23-24 Public Art Grant Awards)

WORK SAMPLES
Kim Shuck
https://poets.org/poem/we-always-have-been
Greg Sarris

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Packet Pg. 201 Attachment: The 222 Proposal (4356 : 23-24 Public Art Grant Awards) Denise Low

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Packet Pg. 202 Attachment: The 222 Proposal (4356 : 23-24 Public Art Grant Awards) Clint McKay

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Packet Pg. 203 Attachment: The 222 Proposal (4356 : 23-24 Public Art Grant Awards) Deborah Miranda

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Packet Pg. 204 Attachment: The 222 Proposal (4356 : 23-24 Public Art Grant Awards) Public Art Proposal
City of Healdsburg
Title of the Proposal/Project: Harmon House Temporary Mural on Glass Location: Harmon Guest House at 227 Healdsburg Ave
Description of the Project:

Dear Public Art Committee,
I'm excited to contribute this proposal for a temporary mural painted directly on the facade of the Harmon House located at 227 Healdsburg Ave. The mural would allow for the light to transform the image and for visitors to the city to experience the piece both from the inside and outside of the building. The motifs for the mural will be arrived at via a series of community workshops. I plan to collaborate with local schools and nonprofits to generate a community dialogue and provide making experiences. Circe, the owner of the Harmon House, has approved the display of some of the drawings that will be created during the workshops. After the workshops with community members, I will create five design concepts for the building and city to approve one before painting. *The sample design is to be painted on all five floors of the center area of the facade of the Harmon House. It will not be painted solid to allow the light to truly transform the images during the day and night.

Thank you for the opportunity and consideration.

Sample Design:

The sample design below is against black but would be transparent. In corporate there will be symbols and images of figures. It will celebrate nature, harvest and people of the area.

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Packet Pg. 205 Attachment: Harmon House Temporary Mural Proposal (4356 : 23-24 Public Art Grant Awards) Project Budget:

Paint $1,500
Tools and brushes $500
Ladders and other tools to be provided by building owner.

Insurance for the project to be provided by building owner.

Community engagement/Art supplies for 6 community workshops, 2 hours each $1500 Refreshments for community workshops $500
Artist Fee $30,0000
Total Budget Request: $34,000
Project Timeline
May 2024-Contract signed.

June 2024-Community Workshops
June 15, 2024 -Image Proposals for final approval after community workshops June 28, 2024- Mural unveiling and community drawings display at Harmon House Previous Public Artwork Samples (up to 5):

Pratt Institute, Mural on Glass, Temporary, 17 ft x 20 ft, Ink, 2019

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Packet Pg. 206 Attachment: Harmon House Temporary Mural Proposal (4356 : 23-24 Public Art Grant Awards) Spectrum of Hope, University of Oregon, Eugene, OR, Interior, permanent, 9 ft x 29 ft, 2023 Mural Project, Luther Burbank Center for the Arts, Exterior, Permanent, 20 ft x 20 ft & 10 ft x 20ft, 2023 Project had community engagement.

Valley of Dreams, 12 ft x 12 ft, Exterior, Acrylic, Glen Ellen CA, 2021

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Packet Pg. 207 Attachment: Harmon House Temporary Mural Proposal (4356 : 23-24 Public Art Grant Awards) Raising Rainbows, Interior, Acrylic, 8 ft x 17 ft, Santa Rosa Junior College, 2022-2023 El Jardin, Acrylic, Interior, Temporary, Schneider Museum of Art, Ashland, OR, 2019 Artist Credentials
Maria De Los Angeles is a Mexican-born, American artist who addresses ideas of migration, belonging, and identity through her drawing, painting, printmaking, and wearable sculptures.

She holds an MFA from Yale School of Art (2015), a BFA from Pratt Institute (2013), and an associate degree from Santa Rosa Junior College (2010).

Maria was awarded the Blair Dickinson Memorial Prize by the Yale School of Art in 2015 and the William Aguilar Cultural Award in 2023, by the AHHE American Association of Hispanics in Higher Education Inc. for her artwork and her role within her communities.

She has been an Artist in Residence at MASS MOCA, El Museo del Barrio, LACMA, Monira Foundation, and Schneider Museum of Art within Oregon Center for the Arts at Southern Oregon University. She will join Anderson Ranch Arts Center as a Latinx Visiting Artist in residence in March 2023. Solo exhibitions at Schneider Museum of Art (2018 & 2019), the

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Packet Pg. 208 Attachment: Harmon House Temporary Mural Proposal (4356 : 23-24 Public Art Grant Awards) Museum of Sonoma County (2019), and Goggleworks (2022). Group exhibitions at the Colorado Springs Fine Arts Center, LACMA, Self Help Graphics, and the San Diego Mesa College. Her artwork is on view in We the People: The Radical Notions of Democracy at Crystal Bridges Museum of American Art.

Public murals include Glen Ellen, California (2021), Sutter Santa Rosa Regional Hospital (2022), Santa Rosa Junior College (2023), Luther Burbank Center for the Arts (2023), University of Oregon, Eugene (2023).

Her artwork is in the permanent collection of the Museum of Sonoma County, the Green Family Art Foundation, the Marcus Collection, San Diego Mesa College, Smith College, and the Jack Leissring Studio. De Los Angeles was a faculty at Pratt Institute, Fashion Institute of Technology, and Southern Oregon University. She is currently a full-time Critic and Assistant Director of Graduate Studies for the Painting and Printmaking at the Yale School of Art, Yale University.

Currently her work is on view at the Luther Burbank Center for the Arts, Santa Rosa. She is bicoastal, maintaining a place in Santa Rosa, CA, and Jersey City, NJ. Her work has been featured in Hyperallergic, Artnet, New York Magazine, HelloGiggles, and The Observer. IG @delosangelesart
Elevation of the building & sample sketch (subject to change after community workshops)
*A sketch or visual representation of the artwork is required with the submission of your proposal
Letter of support from building owner:

Feb 1st, 2024
To whom it may concern,
We are working with artist Maria de Los Angeles on a public art piece that will be temporarily located on the exterior glass of Harmon Guest House at 227 Healdsburg Ave.

This building is our property, and we support the project.

Circe Sher
Owner

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Packet Pg. 209 Attachment: Harmon House Temporary Mural Proposal (4356 : 23-24 Public Art Grant Awards) Proposal: Installation of Infinity Mirror Tree Artwork for the Healdsburg Regional Library I am writing to propose the installation of an Infinity Mirror Tree art piece within the public library.

As an artist deeply invested in creating immersive experiences that blend art and technology, I believe this installation will enrich the library space, engage visitors, and foster a sense of wonder and imagination among patrons of all ages.

The Infinity Mirror Tree art piece will serve as a captivating focal point within the library, inviting patrons to explore the intersection of art, science, and technology. Standing as a symbol of growth, interconnectedness, and infinite possibilities, the tree will be crafted using reflective materials to create mesmerizing illusions of depth and dimension. Its interactive elements will allow visitors to engage with the artwork on multiple levels, encouraging them to contemplate their own place within the vast universe of knowledge housed within the library's walls.

Furthermore, the installation of the Infinity Mirror Tree aligns with the library's mission to inspire curiosity, facilitate learning, and promote creativity within the community. By transforming the library into a dynamic hub of artistic expression, we can cultivate a sense of shared experience and spark meaningful conversations among patrons from diverse backgrounds. I am committed to working closely with the library staff to ensure that the installation process is seamless and that the Infinity Mirror Tree becomes an enduring symbol of the library's commitment to innovation and enrichment.

Thank you for considering this proposal. I am excited about the opportunity to contribute to the cultural vibrancy of the library and look forward to discussing the details of this project further.

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Packet Pg. 210 Attachment: Infinity Mirror Proposal (4356 : 23-24 Public Art Grant Awards) Contact Garrett Perdigao, Recreation Manager, [email protected], 707-431-3327

HEALDSBURG

PUBLIC ART
GRANT
Healdsburg's Public Art Grant Program
In 2018, the Parks and Recreation Commission and City Council established goals to engage the community in defining the role of art through the creation of an community-based arts and culture master planning process. The arts and culture master planning process was a community-led initiative with a Creative Leadership Team comprised of community members serving as the project's steering committee.

City Council adopted Healdsburg's first ever Arts and Culture Master Plan in August 2021. The Plan outlines five major goals:

Build the Structural Foundation for Arts and Culture
Enrich Cultural Experiences for Our Community and Our Visitors Foster and Grow an Inclusive Creative Economy
Advance Art in the Public Realm
Support Development of Arts and Cultural Spaces
As part of the City's efforts to foster and enhance our creative community, we are pleased to announce our second Public Art Grant Program solicitation. This program is one of the outcomes of the Arts and Culture Master Plan and marks the City's dedicated financial commitment to supporting the arts community.

Eligible applicants include local artists, creators, and non-profit organizations interested in expanding the role of arts in our community. Any artwork that is intended to enrich the public environment for City residents and visitors is eligible, including sculptures, murals, paintings, graphic arts, mosaics, photography, crafts, mixed media, environmental works, and performing arts. The art may be temporary or permanent.

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Packet Pg. 211 Attachment: Healdsburg Public Art Grants - English 2024 (1) (4356 : 23-24 Public Art Grant Awards) Contact

HEALDSBURG

PUBLIC ART
GRANT
How will grants be awarded?
An Art Selection Committee made up from two members from the Parks and Recreation Commission and two members of the Creative Leadership Team will review and recommend grants to the City Council. The City Council will then consider the selection committee's recommendation at an upcoming meeting.

What are the grant amounts?
Up to $50,000 is available for this round of grants. In general, grant award guidelines are:

Arts Organizations/Nonprofits: Up to $5,000 per organization Individual Artists: Up to $2,500 per individual artist
Note: These are guidelines only. We encourage grant requests in any amount for unique and impactful projects up to the $50,000 in available funding.

Who is eligible to apply?
Any individual or organization that works in, is skilled in, is studying, or conceptually creates in any area of the arts.

The application process:

To apply, submit a proposal (no
more than 5 pages including work
samples) with the following
information in this order:

Title of the Proposal/Project
Description of the Project
Artist Credentials
Project Budget
Project Timeline
What is your anticipated
production timeline from
award of the grant?
How long do you expect art
to be displayed?
Work Samples (up to 5)
Artist is required to submit a
sketch or visual rendering of
the proposed project.

Submit electronic proposals (PDF)
to:
https://healdsburg.gov/1080/Healds
burg-Public-Art-Grant
*Artist is responsible for design,
creation, installation/implementation
and removal of the artwork.

Funded projects should give
recognition to the City of Healdsburg
Public Art Grant Program.

What projects are eligible?
Any artwork that is intended to enrich the public environment for City residents and visitors is eligible, including sculptures, murals, paintings, graphic arts, mosaics, photography, crafts, mixed media, environmental works, electronic/virtual media, and performing arts.

The art may be temporary or permanent.

The project must be available to the public in some form. Both in-person and virtual experiences will be considered.

The project must be within the Healdsburg city limits.

Projects should be accessible to the Healdsburg Community. Performances and shows should be accessible for the community to attend.

Garrett Perdigao, Recreation Manager, [email protected], 707-431-3327 When will grant awards be announced, and what are the
requirements for use of the grant funds?
We anticipate City Council making the grant awards in March 2024. Grant funds will be dispersed following the grant award and must be used by December 31, 2024. Grant funds may only be used for the approved project. Grantees will be required to enter into a grant agreement with the City that requires the grantee to report on how the grant proceeds were used, how the project impacted the community, and if the granted project does not happen, the grant funds will be returned.

Application Deadline:

February 2nd @ 5:00PM

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Packet Pg. 212 Attachment: Healdsburg Public Art Grants - English 2024 (1) (4356 : 23-24 Public Art Grant Awards)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: April 15, 2024
SUBJECT: Memorandum of Understanding with Sonoma County Waste Management Agency (Zero Waste Sonoma) to supply compost to a City Compost Hub PREPARED BY: Larry Zimmer, Public Works Director
STRATEGIC INITIATIVE(S):

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

Adopt a Resolution authorizing the City Manager to sign a Memorandum of Understanding with Sonoma County Waste Management Agency (Zero Waste Sonoma) to supply compost to a City Compost Hub.

COMMUNITY ENGAGEMENT/OUTREACH:

City staff has been working with representatives of the Badger Park community gardeners to assure functionality of a compost hub. After minor construction and the hub is filled, staff will promote the availability of free compost to the community.

BACKGROUND:

Zero Waste Sonoma has provided free compost at an annual special event at the Healdsburg Community Center. The event is well attended, and the compost is all picked up within a day.

Unfortunately, residents who are unavailable on the day of the event and those who may be reluctant to attend, miss out on the free compost. Zero Waste Sonoma is offering a year-round supply of compost, available for free, at a public location referred to as a “compost hub.” Senate Bill 1383 (SB 1383) sets methane emission reduction targets for California. In an effort to reduce emissions, SB 1383 encourages the diversion of food waste away from landfills. Organic waste, particularly food waste, that goes into landfills produces methane, a greenhouse gas more potent than carbon dioxide. When food waste is composted, it decomposes aerobically and does not produce methane, which further lowers greenhouse gases through carbon sequestration in the soil. SB 1383 also set quantity requirements on a countywide basis for the use of compost and mulch. ZWS has created rebate programs to promote the use of compost and mulch and to assist in tracking its use. Creation of compost hubs will further increase the use of compost which in turn will increase the production of compost.

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Packet Pg. 213
DISCUSSION/ANALYSIS:

The Badger Park location was selected because it will benefit the large community garden and due to the gardeners’ willingness to monitor the compost hub, cover the compost as needed, and report to staff when the supply is getting low. The site provides safe access for delivery trucks as well as the public seeking free compost.

Staff has started the process to construct a three walled bunker to contain the compost and maintain a neat appearance of the site. The walls will be three feet high and constructed of corrugated metal. A large message board, similar to a trailhead sign, will be placed adjacent to the compost hub and provide rules of use and other relevant information. The bunker will be approximately twelve feet wide and twenty-four feet long, which is enough to hold forty cubic yards of compost, the maximum load that will be delivered. The frequency of delivery will vary and be on demand, based on use.

The compost hub will be self-serve for non-commercial use. Residents will need to bring their own containers and shovels. Commercial use is not permitted nor is the use of motorized equipment for loading.

A Memorandum of Understanding (MOU) between the City and the Sonoma County Waste Management Agency (known as Zero Waste Sonoma) is required to provide insurance and mutual indemnification prior to initial delivery and use of the compost hub. The MOU is for the term of one year but may be extended if the program is successful. In the event that unexpected problems occur from use of the compost hub, an alternative location could be found, or the program could be terminated with a thirty day notice per the MOU.

ENVIRONMENTAL STEWARDSHIP:

The compost hub is part of the City and County’s efforts to reduce greenhouse gas emissions and increase carbon sequestration by meeting the requirements of SB 1383.

ALTERNATIVES:

The City Council could direct staff to choose an alternative location for the compost hub. The southeast corner of the south parking lot adjacent to the Community Center is a viable alternative. The City Council could also opt to not provide the compost hub at this time and reassess in the future.

FISCAL IMPACT:

The cost of construction of the bunker, cover, and sign will be less than $50,000 and fully funded by Zero Waste Sonoma through a CalRecycle SB 1383 grant.

ENVIRONMENTAL ANALYSIS:

A Memorandum of Understanding (MOU) between the City and the Sonoma County Waste Management Agency (known as Zero Waste Sonoma) is not a “project” pursuant to California Environmental Quality Act (CEQA) Guidelines 15378(b)(4)(5) because the MOU is defining responsibilities between the City and ZWS and does not involve commitment to any specific project that may impact the environment. However, staff will be constructing the equivalent of a

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low fence at a total cost under $5000 using City employee labor. This work is exempt under section 15303 (e) New Construction or Conversion of Small Structures (fences).

ATTACHMENT(S):

Resolution
MOU Compost Hub - Healdsburg

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CITY OF HEALDSBURG
RESOLUTION NO. -2024

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG AUTHORIZING THE CITY MANAGER TO

SIGN A MEMORANDUM OF UNDERSTANDING WITH

SONOMA COUNTY WASTE MANAGEMENT AGENCY TO

SUPPLY COMPOST TO A CITY COMPOST HUB
WHEREAS, Zero Waste Sonoma is a joint powers authority established pursuant to the California Joint Exercise of Powers Act (Gov’t Code sections 6500 et seq.) (“Agency”) and one of the Agency’s core programs is to provide education regarding recycling, composting and other methods of waste diversion to the Agency’s members and the public; and WHEREAS, the City is a member of the Agency, and Agency provides such services and resources to the City and its residents; and
WHEREAS, City has agreed to host a Compost Hub Pilot Project (referred to as a “Compost Hub”) on City-owned property for residents to pick up compost free of charge and Agency desires to provide City with compost to distribute at its Compost Hub; and WHEREAS, the Agency and City wish to collaborate to host, maintain, and further develop the Compost Hub to support Sonoma County residents in acquiring and using compost; and WHEREAS, the Agency and City desire to distribute compost produced from recovered organic waste to implement the regulations promulgated by the California Department of Resources Recycling and Recovery in response to Senate Bill 1383 (Chapter 395, Statutes of 2016); and
WHEREAS, a permanent “compost hub” is an efficient and effective method of delivering compost to the Healdsburg community; and
WHEREAS, the Agency agrees to provide compost directly to the City of Healdsburg at a designated location at no cost to the City.

NOW, THEREFORE, in consideration of the foregoing, the Healdsburg City Council adopts a Resolution authorizing the City Manager to sign a Memorandum of Understanding to allow Zero Waste Sonoma to deliver compost to the City designated compost hub.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Healdsburg, this 15 th
day of April 2024, by the following vote:

AYES: Councilmembers: ( )
NOES: Councilmembers: ( )
ABSENT: Councilmembers: ( )
ABSTAINING: Councilmembers: ( )
SO ORDERED: ATTEST:
_________________________________ ________________________________ David Hagele, Mayor Raina Allan, City Clerk

8.C.a
Packet Pg. 216 Attachment: Resolution (4415 : Memorandum of Understanding with Sonoma County Waste Management) MOU – Implementation of SB 1383 Regulations
1 Memorandum of Understanding
Between ______________ and
Sonoma County Waste Management Agency
Regarding the Compost Hub Pilot Project
This Memorandum of Understanding (“MOU”) is made this ____ day of ___________, 2024 (“Effective Date”) by and between the ____________, a _____________ (“City”) and the SONOMA COUNTY WASTE MANAGEMENT AGENCY, a California joint powers authority (“Agency”) (collectively the “Parties”).

RECITALS
WHEREAS, the Agency is a joint powers authority established pursuant to the California Joint Exercise of Powers Act (Gov. Code section 6500 et seq.), and one of the Agency’s core programs is to provide education regarding recycling, composting and other methods of waste diversion to the Agency’s members and the public; and WHEREAS, City has agreed to host a Compost Hub Pilot Project (referred to as a “Compost Hub”) on City-owned property for residents to pick up compost free of charge and Agency desires to provide City with compost to distribute at its Compost Hub; and WHEREAS, the Parties wish to collaborate to host, maintain, and further develop the Compost Hub to support Sonoma County residents, referred to as “the public,” in acquiring, making, and using compost; and
WHEREAS, the Parties desire to distribute compost produced from recovered organic waste to implement the regulations promulgated by the California Department of Resources Recycling and Recovery in response to Senate Bill 1383 (Chapter 395, Statutes of 2016).

NOW, THEREFORE, in consideration of the foregoing, the Parties hereby agree as follows:

AGREEMENT

1. Term. This MOU shall commence on the Effective Date and remain in full force and effect for one (1) year from the Effective Date until terminated as set forth in Section 5 of this MOU.

2. Responsibilities of the City.
(a) Location. City shall identify a community garden, City-owned farm, or other suitable City-owned location to serve as its Compost Hub. City shall inform Agency of the identified Compost Hub location, including any changes to the location.

8.C.b
Packet Pg. 217 Attachment: MOU Compost Hub - Healdsburg (4415 : Memorandum of Understanding with Sonoma County Waste Management) MOU – Implementation of SB 1383 Regulations
2 (b) Hours of Operation. City shall set regular hours of operation yearround for the Compost Hub. The Compost Hub, at a minimum, shall be open to the public one (1) day a week for four (4) hours each week, rain or shine. If the City is unable to open the Compost Hub on a particular day, it shall reschedule and inform Agency and the public. City shall inform Agency of its operating hours and any scheduling changes. (c) Delivery of Compost. City’s designated Compost Hub site manager shall contact an Agency-designated compost facility representative to coordinate compost deliveries to the Compost Hub as needed. City may choose to receive compost from one of the following compost facilities: (1) Cold Creek Compost (which provides Agrow-Blend Compost); (2) Napa Recycling (which provides Organic Compost); and (3) WM Redwood (which provides Homegrown Compost). Compost shall be delivered to the Compost Hub in truckloads of 20 to 40 cubic yards per delivery. City understands and agrees that deliveries will depend on available supply and therefore cannot be guaranteed. City agrees to ensure that compost delivery trucks have access to unload compost into a pile at the Compost Hub.
(d) Compost Distribution. City shall make available and accessible Agency-provided compost to City residents to pick up free of charge at the Compost Hub during its hours of operation. Residents can take compost by self-service. None of the Parties are required to, but may choose to, deliver compost to the public or help the public load compost into buckets, truck beds, or other containers. (e) Outreach. City shall advertise the dates and times that it will open the Compost Hub on the City’s website, social media, and at appropriate City-sponsored events and outreach materials. City shall inform the public of any rules, regulations, or requirements with visiting the Compost Hub or the distribution of compost. City agrees to collaborate with Agency to create signage that helps guide the public in navigating and utilizing the Compost Hub safely. City shall provide or post educational materials about the benefits of compost at the Compost Hub. City shall collaborate with Agency on public outreach and share outreach materials with Agency.
(f) Documentation. City shall assist Agency in collecting signed waivers from Agency volunteers who volunteer at the Compost Hub. City shall make available the optional survey developed by the Agency to residents who use the Compost Hub in order to collect feedback.
(g) Compliance with Applicable Laws. City shall observe and comply with all applicable federal, state, and local laws and maintain in full force and effect any and all licenses, permits, qualifications and approvals which are legally required to operate the Compost Hub.
(h) Indemnification/Hold Harmless. Each Party shall indemnify, defend, and hold harmless the other Party, its officers, officials, employees, agents, and volunteers from and against any and all loss, damages, liability, claims, suits, costs and expenses, including reasonable attorney’s fees, arising from the Parties’ performance of this MOU, except matters that are based upon the sole negligence or intentional acts or

8.C.b
Packet Pg. 218 Attachment: MOU Compost Hub - Healdsburg (4415 : Memorandum of Understanding with Sonoma County Waste Management) MOU – Implementation of SB 1383 Regulations
3 omissions of the Party requesting indemnification, its officers, officials, employees, agents, and volunteers.
(i) Insurance. City shall maintain insurance as described below:
(A) Workers' Compensation Insurance. Workers'
compensation insurance with statutory limits as required by the California Labor Code. (B) General Liability Insurance. Commercial general liability insurance covering bodily injury and property damage using an occurrence policy form, in an amount no less than One Million Dollars ($1,000,000.00) combined single limit for each occurrence.
(C) Automobile Insurance. Automobile liability insurance covering bodily injury and property damage in an amount no less than One Million Dollars ($1,000,000) combined single limit for each occurrence. Said insurance shall include coverage for owned, hired, and non-owned vehicles.
(D) Additional Requirements. The insurance policies shall either be endorsed with the following specific language or contain equivalent language in the policies:
(1) The Agency, its Board of Directors, officers,
employees, agents, and volunteers are named as additional insured for all liability arising out of the operations by or on behalf of the named insured in the performance of this Agreement.
(2) The inclusion of more than one insured shall not
operate to impair the rights of one insured against another insured, and the coverage afforded shall apply as though separate policies had been issued to each insured, but the inclusion of more than one insured shall not operate to increase the limits of the company's liability.
(3) The insurance provided herein is primary coverage to the Agency with respect to any insurance or self-insurance programs maintained by the Agency.
(4) This policy shall not be cancelled or materially changed without first giving thirty (30) days’ prior written notice to the Agency.

3. Responsibilities of the Agency.
(a) Delivery of Compost. Agency shall assist City in coordinating the delivery of compost with compost facilities as needed. The compost is available for free, on a first-come, first-served basis, “as is” and with all faults. Agency makes no warranty or guarantee, either express or implied, that the compost will be effective, useful or safe in any manner. Agency reserves to revise the list of available compost facilities and the amount of compost per delivery at any time.

8.C.b
Packet Pg. 219 Attachment: MOU Compost Hub - Healdsburg (4415 : Memorandum of Understanding with Sonoma County Waste Management) MOU – Implementation of SB 1383 Regulations
4 (b) Educational Resources and Tools. Agency will share information regarding the compost vendor, available compost lab reports, and recommendations for optimal compost use to City. Agency agrees to design, make and deliver educational resources to the Compost Hub, including on-site education materials and handouts to be distributed to the public at the Compost Hub. Agency also agrees to create a public survey for City to help collect data regarding the public’s use of the Compost Hub.

4. Responsibilities of Both Parties.
(a) Evaluation. The Parties agree to convene after the first three months following the opening of the Compost Hub to evaluate Compost Hub operations, promotional efforts, and the public’s engagement based on the survey results and feedback collected otherwise. The evaluation will result in recommendations shared between the Parties on improvements to the Compost Hub and the ongoing partnership between organizations.
(b) Outreach. The Parties agree to promote the Compost Hub through social media, electronic newsletters, community partners, and physical signage. City shall provide guidance on promotional efforts based on the capacity of the Compost Hub. (c) Promotion of Use of Reusable Containers. The Parties agree to encourage the public to take compost by bringing using reusable containers, such as 5- gallon buckets and burlap bags.

5. Termination. Either Party may terminate this Agreement at any time upon 30 days’ written notice to the other Party.

6. Notice. During the term of this MOU, all notices shall be made in writing and either served personally, sent by first class mail, or sent by email provided confirmation of delivery is obtained at the time of email transmission, addressed as follows:

To: Agency Sonoma County Waste Management Agency
Attention: Xinci Tan
2300 County Center Drive, Ste. B-100
Santa Rosa, CA 95403
Telephone Number: 707-837-6134
Email: [email protected]
To City of Healdsburg: City of Healdsburg
Attention: Larry Zimmer, Public Works &
Transportation Director
401 Grove Street
Healdsburg, CA 95448
Telephone Number: (707) 431-3346

8.C.b
Packet Pg. 220 Attachment: MOU Compost Hub - Healdsburg (4415 : Memorandum of Understanding with Sonoma County Waste Management) MOU – Implementation of SB 1383 Regulations
5 Email: [email protected]
Either Party may change the address to which notice is to be given by providing the other Party with written notice of such change at least fifteen (15) calendar days prior to the effective date of the change.

Service of notices shall be deemed complete on the date of receipt if personally served or if served using email provided confirmation of delivery is obtained at the time of email transmission. Service of notices sent by first-class mail shall be deemed complete on the third day following deposit with the United States Postal Service.

7. Governing Law and Venue. This MOU shall be deemed to be executed within the State of California and construed in accordance with and governed by laws of the State of California. Venue in any proceeding or action arising out of this MOU shall be in Sonoma County, California.

8. Entire Agreement. This MOU constitutes the entire agreement between the Parties and supersedes all prior negotiations, representations, or agreements, whether written or oral.

9. Amendment. This MOU may only be amended by a writing signed by both Parties.
[Signatures on following page]

8.C.b
Packet Pg. 221 Attachment: MOU Compost Hub - Healdsburg (4415 : Memorandum of Understanding with Sonoma County Waste Management) MOU – Implementation of SB 1383 Regulations
6 SIGNATURE PAGE FOR
Memorandum of Understanding
Between the City of Healdsburg and
Sonoma County Waste Management Agency
Regarding the Compost Hub Pilot Project
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date first above written.

CITY OF HEALDSBURG, A Municipal
Corporation of the State of California
By:

Jeff Kay, City Manager
APPROVED AS TO FORM:

Samantha W. Zutler, City Attorney

SONOMA COUNTY WASTE
MANAGEMENT AGENCY, A California
Joint Powers Authority
By:

Leslie Lukacs
Executive Director
APPROVED AS TO FORM:

Agency Counsel

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Packet Pg. 222 Attachment: MOU Compost Hub - Healdsburg (4415 : Memorandum of Understanding with Sonoma County Waste Management)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: April 15, 2024
SUBJECT: Fiscal Years 2024-25 & 2025-26 Budget Development Update PREPARED BY: Katie Edgar, Finance Director
STRATEGIC INITIATIVE(S):

Provide Effective Governance
RECOMMENDED ACTION(S):

Receive a presentation from City staff on the status of budget development activities for the upcoming two-year budget cycle and provide feedback.

COMMUNITY ENGAGEMENT/OUTREACH:

City staff kicked off budget development activities with City Council at the January 16th, 2024 City Council meeting. Since that time, staff held a community workshop, launched the interactive budget simulation, and spoken with different community organizations about the budget development process. Each engagement offered an opportunity for residents to provide their input on budget priorities.

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 is on schedule to be adopted in early June to ensure a smooth transition between fiscal years.

DISCUSSION/ANALYSIS:

The purpose of this report is to provide a status update to the City Council on budget activities completed to date, including budget goal status, a summary of community input, and a review of next steps.

Status of Budget Development Process:

Finance staff have gathered input from department heads and are currently in the process of creating an initial draft of the budget for each fund. To date, salary and benefit calculations, employee allocations, and internal service fund fees have been developed and initial operational budget needs have been discussed with department heads. The draft budget will be ready for Council review during the May 13th Special meeting.

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During the January 16th, 2024, Budget Kickoff, staff presented the following budget development goals to the City Council:

1. Align Budget Resources with Council Goals.

2. Focus on Infrastructure Funding

3. Complete Facility Needs Assessments

4. Improve Transparency through Accounting Development

5. Review Finance Policies

6. Continue to Pursue Robust Public Engagement
The proposed budget is anticipated to provide adequate funding to support the City Council Goals adopted on March 25th (Goal 1). Many of the new priorities can be achieved within the existing staffing levels and require no additional funding. The larger infrastructure and facility goals are being incorporated into the Capital Improvement Plan.

Staff are developing the Capital Improvement Plan to focus on Infrastructure Funding (Goal 2).

The City has received several large grants that require additional local matching funds to continue progress through the design phase and into construction. The preliminary draft budget will include $4.2 million in additional City funding to match $17.4 million of grants and developer funding for the construction of multiple Streets projects (including Grove Street and Healdsburg Avenue). The Utility funds include $7.8 million in utility and impact fee funding to address the aging infrastructure throughout the City. The Building Maintenance Fund and Community Services Fund will also include funding to address deferred maintenance projects at facilities around the City. City staff also plan to propose funding a Facility Needs Assessment for the Police Department and Fire Department to develop a long-term plan to address City facility needs. (Goal 3)
Staff are continuing to improve transparency through accounting development by updating select accounting schemas to provide insight into discretionary services. The City provides a wide range of discretionary services that support development and vary based on community demand.

Staff have prepared strategic account changes to increase clarity and efficiency in forecasting interrelated revenues and expenses (Goal 4).

The Pension Liability Funding Policy and the General Fund Surplus Policies were reviewed by Council on February 20th and Council approved staffs recommended updates to the Pension Liability Funding Policy (Goal 5).

A summary of staff’s efforts to continue pursuing robust public engagement through community input is provided below (Goal 6).

Community Engagement:

City staff, in partnership with Corazón Healdsburg, held a public workshop to discuss the City budget on February 28th at the Healdsburg Senior Center. Attendees received a presentation on the budget process and a detailed introduction of the budget simulation. Devices were available for attendees to complete the simulation. City staff has also met with and presented to several

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stakeholder groups. Stakeholder meetings included a discussion of the budget and budget process and steered participants to provide direct feedback via the budget simulation. Staff also attended a Senior Bistro Brunch at the Senior Center to engage the senior community in discussions of the City Budget. Many participants completed paper copies of the budget survey and others were guided to the full budget simulation to provide more detailed feedback. City staff brought devices to the Day Labor Center and encouraged the staff and community members to complete the survey while answering questions about the budget process. Corazón engaged community members with available devices to complete the budget simulation and the paper survey outside of Lola’s market and throughout the community.

A full version of the budget simulation that had detailed categories and several specific questions as well as a short version with summarized categories was launched on February 26th in both English and Spanish. Paper surveys reflecting the categories of the short version of the budget simulation were also provided in both English and Spanish. The simulation closed on April 1st, and 236 responses were submitted online. The full version of the online budget simulation received 194 responses and the short version received 42 responses. Of the online budget simulation responses, 229 were English and 7 were Spanish. The City also received a total of 141 paper budget survey responses. Of the paper survey responses, 14 were English and 127 were Spanish. Staff’s presentation to Council on this item will include a summary of major themes and findings.

Next Steps:

City Council will convene for a Special Meeting on May 13th to begin reviewing the full budget.

This meeting will highlight anticipated revenues and expenses, as well as major changes to budgets and projects for consideration.

During the regularly scheduled City Council meeting on May 20th, staff will provide a third quarter update for the current fiscal year, which will include a discussion on year-end position, outstanding funding priorities, and any final budget amendments needed.

On the regularly scheduled City Council meeting on June 3, 2024, staff will present a final draft budget with a recommendation to Council for adoption. If for some reason the budget is not adopted at the June 3rd meeting, staff will return for the June 17th Council meeting to finalize the budget.

ENVIRONMENTAL STEWARDSHIP:

Staff have taken several steps to reduce the environmental impact of budget development, including, encouraging the online feedback tool in place of the paper survey, and increasing use of existing functionality within the City’s Enterprise Resource Planning system to reduce paper processes.

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:

Pursuant to Title 14, the California Code of Regulations, Section 15378(b)(4)(5) of the California Environmental Quality Act (“CEQA”) guidelines, approval of this resolution is an administrative activity of the City that will not result in direct or indirect physical changes to the environment.

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4/10/2024 – 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) May 6, 2024 Public Service Recognition Week Proclamation Investment Report – March 2024
Disbursement Report – March 2024
Weed Abatement Initial Meeting
Landscaping and Lighting Assessment District
Annual Water Supply Update
Housing Element Strategic Implementation Plan – Professional Services Agreement SB1205 Annual Inspection Report
Revisions to the Memorandum of Understanding with 421 Foss Street LLC (Duchamp Hotel) for the Foley Family Community Pavilion Project
Home Energy Load Management Program
Acceptance of Subdivision Improvements – Old Rossi Place Phase II City Council Fiscal Year 2024-25 Goals
Proposed adoption of Water and Wastewater Rates
Various Land Use Code Amendments
Discussion and Direction Regarding Growth Management Ordinance Options Saggio Hills and Badger Park Design Phasing
May 13, 2024
Budget Work Session
May 20, 2024 Update from the Sonoma County Library
Introduction of the Model TT Healdsburg Fire Truck
SB1 List of Projects
2024 Utility Wildfire Mitigation Plan

13.1.a
Packet Pg. 227 Attachment: Agenda Planning Sheet (4434 : Future Agenda Items - April 15, 2024) 4/10/2024 – Page 2
Inclusionary Housing Ordinance Update
Water and Wastewater Rates
Annual Review of Good Faith Compliance with the Terms and Conditions of Development Agreements for the following Projects:

1. Mill District Project (Replay Healdsburg, LLC; Eden Mill District, LP)

2. North Village Project (CCS Healdsburg, LLC; Kendal at Sonoma, A Zen Inspired Community; BHDC North Village, LLC)

3. Saggio Hills Affordable Housing Project (Freebird Development Company, LLC) Adopt a Resolution approving a Lease, Funding and Service Agreement with Reach for Home for the L&M Village FY23-24 Q3 Financial Update
Council Subcommittee selection for Planning Commission Applications Receive quarterly update on the L&M Village
Discussion and Direction Regarding Use of 217 Healdsburg Ave June 3, 2024 FY24-25 and FY25-26 Budget Adoption
GANN Appropriation Limit
General Plan Amendment – Local Hazard Mitigation Plan
Discussion and Direction regarding GMO options
Saggio Hills and Badger Park Design – Contract Approval June 17, 2024 Memorandum of Understanding to be a member agency in the Russian River Reuse Collective (R3C) REDCOM Contract Renewal
Northern Sonoma County Fire District Contract Renewal
Investment Policy
Weed abatement public hearing
Landscaping and Lighting Assessment District
Appointments to Planning Commission
Growth Management Ordinance – Ballot Determination
(NOTE: The schedule is tentative and subject to change pending final publication and posting of the City Council meeting agenda)

13.1.a
Packet Pg. 228 Attachment: Agenda Planning Sheet (4434 : Future Agenda Items - April 15, 2024)