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Healdsburg City Council
April 15, 2024

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April 15, 2024
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CITY OF HEALDSBURG

CITY COUNCIL/REDEVELOPMENT SUCCESSOR AGENCY

REGULAR MEETING MINUTES
April 15, 2024
City Hall Council Chamber
401 Grove Street, Healdsburg
.

CALL TO ORDER/ROLL CALL
Vice Mayor Mitchell called to order the concurrent meeting of the City Council and Redevelopment Successor Agency of the City of Healdsburg at 6:01 p.m. with the following Council Members present:

Present: Council Members/: Edwards, Herrod and Vice Mayor Mitchell Board Members

Absent: Council Members/: Kelley and Mayor Hagele
Board Members

APPROVAL OF AGENDA
On a motion by Councilmember Herrod, seconded by Councilmember Edwards approved the April 15, 2024, City Council and Redevelopment Successor Agency meeting agenda. The motion carried on a roll call vote with Councilmember Kelley and Mayor Hagele noted as absent. (Ayes 3, Noes 0, Absent – Kelley and Mayor Hagele)

REPORT ON CLOSED SESSION
None.

ANNOUNCEMENTS/PRESENTATIONS - PROCLAMATION DECLARING APRIL 2024 AS NATIONAL VOLUNTEER APPRECIATION MONTH IN THE CITY OF

HEALDSBURG
Vice Mayor Mitchell, with Council concurrence, issued a Proclamation declaring April 2024, as National Volunteer Appreciation month in the City of Healdsburg.

Recreation Coordinator Yaquelin Buenrostro, and Recreation Supervisor Anna Grant gave thanks to all the volunteers for their hard work at various City events and thanked Council for the recognition.

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ANNOUNCEMENTS/PRESENTATIONS - MARIE SPARKS VOLUNTEER

APPRECIATION AWARD
Director Themig provided background information on the Marie Sparks Memorial Volunteer Award which was established by the City Council to recognize volunteerism in the community.

Director Themig introduced Andy Esquivel.

Andy Esquivel read aloud a statement about Phil Manoukian, the first 2023 recipient of the Marie Sparks Appreciation Award and noted the contributions he has made to Healdsburg.

Phil Manoukian thanked the Council for the recognition.

Richard Bugarske introduced Frank and Carol Teuschler, the second recipients of the 2023 Marie Sparks Appreciation Award and described their contributions given to the community.

Frank and Carol Teuschler thanked the community, and Richard Bugarske for the kind words.

ANNOUNCEMENTS/PRESENTATIONS - HEALDSBURG TOURISM

IMPROVEMENT DISTRICT (HTID) ANNUAL UPDATE
Jessica Bohon, Director of Tourism and Marketing for Stay Healdsburg and the Chamber of Commerce presented the 2023 Annual Report for the Healdsburg Tourism Improvement District (HTID). Ms. Bohon provided background information on HTID, the board of directors, and highlighted key committees. Ms. Bohon reviewed revenue and expenses for the HTID, highlights from marketing, social media, website campaigns and influencer collaborations. Ms. Bohon further reviewed the District Development Grants awarded in 2023 and provided a preview of what to expect in 2024.

Mayor Hagele joined the meeting at 6:30 p.m.

In response to the Councilmember's inquiries, Ms. Bohon noted the Chamber would explore targeting other diverse communities when advertising Healdsburg as a travel destination and explained what the criteria for receiving an HTID Grant is. Tallia Hart, CEO of the Chamber, provided information on why local non-profits did not receive as much funding as they have in the past.

Councilmember Herrod expressed a desire for greater collaboration between the City and the Chamber prior to the approval of any projects.

Vice Mayor Mitchell clarified that the HTID assessment is one that hotels impose on themselves and emphasized that the grant process is not intended to be a philanthropic endeavor.

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CITY MANAGER REPORTS
City Manager Kay reported that construction has started on the Foley Family Pavilion, provided information about upcoming events including a Community Meeting to discuss Military Equipment, the Climate Festival in the Plaza, Implicit Bias training and the Fitch Mountain Celebration and grand opening.

PUBLIC COMMENTS ON ITEMS ON THE CONSENT CALENDAR AND NON

AGENDA ITEMS
Brigette Mansell commented on the distribution of HTID grants, and urged the Council to prioritize the needs of Healdsburg residents. Ms. Mansell advocated for nonprofits to have more status and emphasized that these grants should benefit local organizations and the community.

Additionally, she believes grants should focus on serving the community.

Rachelle Chong expressed her concern for Sunset Drive, highlighting the narrowing of the roadway, evacuation concerns if a fire was to happen and urged the Council to prioritize addressing these concerns in the upcoming budget cycle.

Tim Leach raised safety concerns about Sunset Drive, reflected on meetings with the City and emphasized the need for Sunset Drive to be prioritized. Additionally, he urged the Council to include Sunset Drive in the City’s budget.

Sunset Drive Resident reflected on the history of Sunset Drive, outlined issues with the roadway and raising concerns about fire safety in the area.

Janine Leger cofounder of Edge City, provided information of the Edge Esmeralda Event being held in Healdsburg in June and highlighted the goals of the event.

Devon Zuegel cofounder of Edge City, shared her inspiration behind the Edge Esmeralda Event.

CONSENT CALENDAR
On a motion by Councilmember Herrod, seconded by Councilmember Edwards, approved the Consent Calendar as follows:

A. PROCUREMENT OF VEHICLES AND EQUIPMENT
Adopted Resolution No. 31-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HEALDSBURG 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” (Ayes 4, Noes 0, Absent – Kelley)
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B. PROCUREMENT OF VEHICLES AND EQUIPMENT
Adopted Resolution No. 32-2024 titled, “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.” (Ayes 4, Noes 0, Absent – Kelley)
C. DECLARING VEHICLES AND EQUIPMENT SURPLUS
Adopted Resolution No. 33-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF HEALDSBURG DECLARING VARIOUS VEHICLES AND EQUIPMENT AS SURPLUS” (Ayes 4, Noes 0, Absent – Kelley)
D. AMENDMENT TO SERVICE AGREEMENT WITH SONIC FOR CITY DARK

FIBER IMPLEMENTATION
Adopted Resolution No. 34-2024 titled, “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” (Ayes 4, Noes 0, Absent – Kelley)
E. CONDUIT LEASE AGREEMENT WITH SONIC.NET, LLC
Adopted Resolution No. 35-2024 titled, “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.” (Ayes 4, Noes 0, Absent – Kelley) F. COMMUNICAITON BRIDGE CONTRACT AMENDMENT
Adopted Resolution No. 36-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF HEALDSBURG 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.” (Ayes 4, Noes 0, Absent – Kelley)
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G. ORDINANCE AMENDING HEALDSBURG MUNICIPAL CODE SECTION 2.08

RELATED TO CITY COUNCILMEMBER COMPENSATION
Adopted Ordinance No. 1238 titled, “AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF HEALDSBURG AMENDING HEALDSBURG MUNICIPAL CODE SECTION

2.08.020 TO SET THE COMPENSATION FOR EACH MEMBER OF CITY COUNCIL.” (Ayes 4, Noes 0, Absent – Kelley)
H. RESOLUTION IN SUPPORT OF THE “THE SONOMA COUNTY CHILDCARE AND CHILDREN’S HEALTH INITIATIVE”
Adopted Resolution No. 37-2024 titled, “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.” (Ayes 4, Noes 0, Absent – Kelley)
I. AMENDMENT TO THE PROMISSORY NOTE FOR THE RANDALL

APARTMENTS PROJECT
Adopted Resolution No. 38-2024 titled, “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.” (Ayes 4, Noes 0, Absent – Kelley) The motion to approve the Consent Calendar as above carried on a roll call vote with Councilmember Kelley noted as absent. (Ayes 4, Noes 0, Absent – Kelley)

PUBLIC HEARING - INCLUSIONARY HOUSING ORDINANCE UPDATE
Senior Planner McDowell introduced this item for discussion and noted the purpose of the proposed land use code amendments is to revise and clarify Section 20.20.030 (Inclusionary Housing) and Section 20.28.310 (Definitions). Planner McDowell reviewed the key changes to Section 20.20.030, which addresses inclusionary housing, and outlined updates to Section

20.28.310, including the addition of a definition for multi-family rental housing and revisions to the definition of residential development projects. Additionally, Planner McDowell reviewed the direction provided by the Planning Commission, what SB9 is, noted the current fees for inclusionary housing and the revenue collected to date for the inclusionary housing fund.

In response to Council’s inquiries, Senior Planner McDowell explained SB9 units can be for sale or for rent. Finance Director Edgar described how inclusionary housing funds can be spent.

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Public Comment
Richard Burg asked for clarification about the cap on in lieu inclusionary housing fees at 2500 sq. feet.

In response to Council’s inquiries, Planning Director Duiven provided information on past policy direction that capped the square footage at 2500.

Mayor Hagele commented on the benefit of the inclusionary housing fees, preserving and creating housing units.

On a motion by Councilmember Edwards, seconded by Vice Mayor Mitchell, 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).” The motion carried on a roll call vote with Councilmember Kelley noted as absent. (Ayes 4, Noes 0, Absent - Kelley)
On a motion by Councilmember Edwards, seconded by Vice Mayor Mitchell, adopted Resolution No. 39-2024 titled, “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.” The motion carried on a roll call vote with Councilmember Kelley noted as absent. (Ayes 4, Noes 0, Absent - Kelley)

OLD BUSINESS - DOWNTOWN HOUSING CAPACITY STUDY
Director Duiven introduced the item for discussion, reviewed planning efforts completed to date and outlined the City Council goal from FY2023-24 to evaluate existing codes, legislation and law to identify barriers and opportunities to increase housing capacity downtown.

Housing Director Sotomayor introduced the Economic & Planning Systems (EPS) Consultants, Tiefion Rice-Evans and Megan Gregory, provided context for the housing capacity study, and highlighted the feedback received from the community on the need for more housing options in Healdsburg.

Megan Gregory, EPS Consultant, provided information about the housing needs calculator, EPS's methodology for the housing needs calculator and data on the percentage of employees in Healdsburg who reside in Healdsburg. Ms. Gregory further reviewed the occupation types and wage levels in Healdsburg, noting the results of the housing needs calculator. Additionally, Ms.

Gregory outlined the required housing units across low, moderate, and above market income levels over an eight-year period.

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Director Sotomayor clarified how the housing needs calculator data can be utilized.

Caroline Cochran, Opticos Design Inc., outlined the purpose of the Downtown Housing Capacity Study, provided an overview of the project timeline and introduced the site testing process, which was used to assess the potential housing capacity of CS and CD zones downtown. Ms.

Cochran reviewed the process for site selection and the building types tested in the Capacity Study.

Ms. Cochran reviewed the existing conditions, conceptual site tests and conceptual site visualizations for the Rite Aid site, Bank of America site, West Plaza Parking Lot site, 434 Healdsburg Avenue site and the Gas Station site on the corner of Healdsburg Avenue and Piper Street. Ms. Cochran compared the site tests with the existing CS and CD zoning standards highlighting that the site tests met all standards except for maximum density and parking requirements. Additionally, Ms. Cochran reviewed an estimate of downtown’s housing capacity, based on the five tested sites and five other underutilized or vacant properties in the area.

Ms. Cochran summarized zoning district recommendations needed to support the potential housing units for downtown and noted complementary actions and implementation tools Council could consider. Additionally, Ms. Cochran provided information on right-sizing residential parking requirements, emerging best practices for density and Floor Area Ratio (FAR), and implementation tools such as increasing maximum density, zoning adjustments, and the benefits of specific, master or precise plans.

Megan Gregory, EPS presented an overview of the feasibility analysis conducted for this project, outlining the associated costs for base, mid, and high-density yields and reviewed the required rent per square foot to make the project feasible for developers. Additionally, Ms. Gregory offered a comparison of household incomes, monthly rent, and AMI percentages across for base, mid, and high-density yields and discussed how various policy levers could impact rent levels and the overall feasibility of the projects.

City Manager Kay provided a summary of the housing options and analysis presented this evening, provided information about the feedback required from the Council and the next steps moving forward.

In response to Councilmember’s inquiries, Director Duiven provided information on parking requirements. Stefan Pelligrini from Opticos Design Inc., addressed parking concerns, sharing successful strategies used in other cities. Teifion Rice-Evans from EPS clarified market-rate developers will consider varying housing and parking demands when considering projects.

Megan Gregory with EPS, commented on reducing impact fees.

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Public Comment
Bruce Abramson expressed concerns regarding the allocation of one parking space per unit, commented on the challenges of limiting parking at 155 Dry Creek, and Montage and encouraged Council to maintain parking levels that meet the City's standard.

Zeke Guzman commented that affordable housing is no longer affordable and discussed the housing struggles farm workers and hospitality workers are experiencing and urged the Council to make decisions that prioritize keeping families in their homes.

Jonathan Pearlman expressed his support for the study, commented on zoning changes, parking challenges, adjustments to density, development of middle-income housing and state density bonus programs.

Richard Burg commented on designing and building housing for people who don’t have cars, considering transportation options when developing a project and addressing the Growth Management Ordinance (GMO) before the year is over.

Jim Heid opined on land cost, parking requirements placed on developers and utilizing a land trust model to address housing challenges in Healdsburg.

Council Comments
Comfort with Proposed Densities:

Mayor Hagele introduced this topic for discussion. Following brief comments by the Councilmembers, there was Council support for the proposed density increases.

Reduction in Residential Parking Requirement:

Mayor Hagele introduced this topic for discussion. Following brief comments by the Councilmembers there was Council support to direct staff to conduct further research on the one car per unit parking requirement.

Removal of Commercial Parking Requirement in Mixed Use Development:

Mayor Hagele introduced this topic for discussion.

Vice Mayor Mitchell supports the removal of commercial parking requirements and asked for clarification on the locations and number of retail shops being considered.

Councilmember Edwards supports the removal of commercial parking.

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Councilmember Herrod supports the model of street level retail and would like to explore options to make exceptions based on economic conditions, market trends, and other relevant factors.

Mayor Hagele expressed his support for further research by staff on the removal of commercial parking requirements in Mixed Use Development and suggested that housing above retail could help lower rent costs.

Interest in Pursuing a Planning Process to Change Densities Within CD and CS Zones Mayor Hagele introduced this topic for discussion and summarized the Council support for pursuing a planning process to change densities within CD and CS zones.

City Manager Kay clarified staff is not in the planning process right now as funding is needed and noted the feedback from Council was received.

Closing Comments
Councilmember Herrod thanked staff and the consultants for their hard work and the presentation.

Councilmember Edwards expressed an interest in hearing from the hospitality-business community on what retail is needed.

Vice Mayor Mitchell thanked the staff and consultants for their hard work and the public for their participation and expressed a desire to see the GMO addressed.

Mayor Hagele commented on the need for housing to support the middle class and acknowledged the community's concerns regarding the GMO, parking challenges and expressed his gratitude to staff and consultants for their hard work on this item.

OLD BUSINESS - PUBLIC ART GRANT AWARDS
Recreation Manager Garrett Perdigao stated the action this evening was to adopt a resolution approving the Healdsburg Public Art Grants for the 2023-2024 program year. Manager Perdigao reviewed background information on the Public Art Grant, highlighted projects funded by the 2022-2023 public art grant and provided details about the 2024 public art grant program.

Manager Perdigao outlined the role of the public art grant review committee, how the grant applications were evaluated, noted the six projects being recommended for approval reviewed the specifications of the Artist Grant Agreement.

In response to Councilmember’s inquiries, Manager Perdigao clarified the artist for Harmon House is Maria De Los Angeles.

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There were no public comments on this item.

Council Comments
Councilmember Edwards expressed concern about the location of the art at Harmon Guest House.

Mayor Hagele expressed enthusiasm about the selected artwork.

Councilmember Herrod acknowledged the challenges of the process and is pleased with the art projects that was chosen. He expressed hopes to move forward with the Corazón mural in the future and, at some point, for the Raven Theater to receive support. He also gave a special shoutout to Jordy Morgan, expressing hope that he will have the opportunity to showcase his work publicly.

Vice Mayor Mitchell expressed admiration for the creativity, noting that it represents a variety of artistic styles.

On a motion by Councilmember Edwards, seconded by Councilmember Herrod, adopted Resolution No. 40-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HEALDSBURG APPROVING PUBLIC ART GRANTS FOR PROGRAM YEAR 2024.” The motion carried on a roll call vote with Councilmember Kelley noted as absent. (Ayes - 4, Noes - 0, Absent - Kelley)

OLD BUSINESS - MEMORANDUM OF UNDERSTANDING WITH SONOMA

COUNTY WASTE MANAGEMENT AGENCY (ZERO WASTE SONOMA) TO SUPPLY

COMPOST TO A CITY COMPOST HUB
Engineering Technician Scott Mann provided an overview of Senate Bill 1383, shared renderings of the compost hub at Badger Park, explained how the compost hub will operate and noted the recommended action for the evening to 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.

In response to the Councilmember's inquiries, Engineering Technician Mann noted that the compost hub installation is permanent, and that community gardeners will notify the City when compost levels are low. Director Zimmer added that Badger Park is open from dawn to dusk, noting these hours will be observed for the compost hub and there may be opportunities for additional sites in the future.

On a motion by Councilmember Edwards, seconded by Vice Mayor Mitchell, adopted Resolution No. 41-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG AUTHORIZING THE CITY MANAGER TO SIGN A MEMORANDUM OF City Council/RSA Regular Meeting Minutes
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UNDERSTANDING WITH SONOMA COUNTY WASTE MANAGEMENT AGENCY TO SUPPLY COMPOST TO A CITY COMPOST HUB.” The motion carried on a roll call vote with Councilmember Kelley noted as absent. (Ayes - 4, Noes - 0, Absent - Kelley) OLD BUSINESS - FISCAL YEARS 2024-25 & 2025-26 BUDGET DEVELOPMENT UPDATE
Director Edgar introduced the item and noted the proposed action this evening is to receive a presentation from City Staff providing an update on the budget development process. Director Edgar reviewed the budget development timeline and significant milestones completed to date.

Director Edgar provided an overview of the 2024-26 budget goals, the budget simulation tool including how many views, submissions, average time spent on the survey and demographics.

Director Edgar further reviewed the paper budget survey submitted, discussed major themes across all responses and provided an overview of the information received from the survey.

There were no public comments on this item.

Council Comments
Councilmember Herrod expressed appreciation for the budget simulation tool, acknowledged the challenges of balancing the budget and noted his surprise at the responses regarding March Avenue.

Councilmember Edwards acknowledged how the community has had an opportunity to look at the overall budget and may have more understanding that funds are limited.

Vice Mayor Mitchell commented that the community may have more empathy understanding the difficulties balancing the budget with limited resources.

Mayor Hagele acknowledged the complexities of balancing the budget and hopes that the community will offer additional feedback at a future council meeting and commented on all the compliments from the community regarding the budget simulation tool.

NEW BUSINESS
None.

COUNCIL REPORTS ON MATTERS OF INTEREST OCCURRING SINCE PREVIOUS

REGULAR MEETING/EXPENSE REIMBURSEMENT REPORTS
Councilmember Edwards reported he attended a Community walk with Mayor Hagele and Councilmember Kelley, the Sonoma County Mayor and Councilmember’s dinner in Cotati, Go Biz Reception and the Engineering Construction Associates dinner.

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Councilmember Herrod reported he attended the Go Biz Reception, Parks and Recreation Commission meeting and the Government Affairs Committee meeting, Vice Mayor Mitchell reported she attended the Go Biz Reception, the Sonoma County Mayor and Councilmember’s dinner in Cotati and Good Morning Healdsburg.

Mayor Hagele reported he attended the Go Biz Reception, Community Walk, and hosted the 3rd grade class from Alexander Valley School on a tour of City Hall and conducted a mock Council meeting. Additionally, he reported that he is currently in Washington D.C. on behalf of NCPA.

WRITTEN COMMUNICATIONS
None.

ADJOURNMENT
There being no further City Council/Redevelopment Successor Agency business to discuss, the meeting was adjourned at approximately 10:00 p.m.

APPROVED: ATTEST:
_________________________________ __________________________________ David Hagele, Mayor Raina Allan, City Clerk

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