Healdsburg City Council
May 6, 2024

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.

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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:

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 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.

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 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.

4. Accessory dwelling units constructed pursuant to HMC 20.20.010.

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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.

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

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Packet Pg. 144 Attachment: Inclusionary Housing Ordinance (4444 : 2nd Reading Inclusionary Housing Ordinance) Ordinance No.

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

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Packet Pg. 145 Attachment: Inclusionary Housing Ordinance (4444 : 2nd Reading Inclusionary Housing Ordinance) Ordinance No.

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 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

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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. 147 Attachment: Inclusionary Housing Ordinance (4444 : 2nd Reading Inclusionary Housing Ordinance) 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:

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.

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Packet Pg. 148 Attachment: Inclusionary Housing Ordinance (4444 : 2nd Reading Inclusionary Housing Ordinance) Ordinance No.

Residential development project: A project consisting of one or more 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. 149 Attachment: Inclusionary Housing Ordinance (4444 : 2nd Reading Inclusionary Housing Ordinance) 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 6th day of May, 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. 150 Attachment: Inclusionary Housing Ordinance (4444 : 2nd Reading Inclusionary Housing Ordinance)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: May 6, 2024
SUBJECT: Fire Department SB 1205 Inspection Report
PREPARED BY: Jason Boaz, Fire Chief
STRATEGIC INITIATIVE(S):

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

Adopt a Resolution acknowledging receipt of a report regarding the inspection of certain occupancies required to receive annual inspections pursuant to Sections 13146.2 and 13146.3 of the California Health and Safety Code.

COMMUNITY ENGAGEMENT/OUTREACH:

The Fire Chief gives an annual update to the City Council that includes annual inspection data.

BACKGROUND:

The tragic Ghost Ship fire in Oakland in 2016 brought attention to fire safety laws. SB 1205, effective September 27, 2018, mandates fire departments to report compliance with inspection requirements, ensuring safety and proper resource allocation.

DISCUSSION/ANALYSIS:

SB 1205 ensures fire departments communicate compliance with mandated safety inspections.

Local fire departments report annually on inspections, holding jurisdictional policymakers accountable.

EXISTING LAW:

Existing law mandates fire departments to enforce building standards and inspect structures annually for compliance. SB 1205 adds reporting requirements to ensure accountability.

INSPECTION COMPLIANCE REPORTING:

In 2023, Healdsburg Fire Department completed inspections of 100% of Group E and Group R occupancies, meeting SB 1205 requirements.

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ENVIRONMENTAL STEWARDSHIP:

Not applicable.

ALTERNATIVES:

Acknowledge receipt of the report by means other than resolution.

FISCAL IMPACT:

The inspection fee for Group R occupancies is determined by the number of units and established in the Master Fee Schedule. The Fire Department billed a total of $24,837 for the inspection of Group R occupancies in Fiscal Year 2023-24.

ENVIRONMENTAL ANALYSIS:

The proposed action is an administrative activity that will not result in physical changes to the environment and thus is not a “project”, as defined in State CEQA Guidelines section 15378 (b)(5), subject to the requirements of CEQA.

ATTACHMENT(S):

Resolution

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CITY OF HEALDSBURG
RESOLUTION NO. ___-2024

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG ACKNOWLEDGING RECEIPT OF A REPORT

MADE BY THE HEALDSBURG FIRE DEPARTMENT

REGARDING THE INSPECTION OF CERTAIN

OCCUPANCIES REQUIRED TO RECEIVE ANNUAL
INSPECTIONS PURSUANT TO SECTIONS 13146.2 AND
13146.3 OF THE CALIFORNIA HEALTH AND SAFETY CODE
WHEREAS, California Health & Safety Code Section 13146.4 was added in 2018, and became effective January 1, 2019; and
WHEREAS, California Health & Safety code Sections 13146.2 and 13146.3 requires all fire departments, including the Healdsburg Fire Department, that provide fire protection services to perform annual inspections in every building used as a public or private school, hotel, motel, lodging, house, apartment house, and certain residential care facilities for compliance with building standards, as provided; and
WHEREAS, California Health & Safety code Section 13146.4 requires all fire departments, including the Healdsburg Fire Department, that provide fire protection services to report annually to its administering authority on its compliance with Section 13146.2 and 13146.3; and
WHEREAS, the City Council of the City of Healdsburg intends this Resolution to fulfill the requirements of the California Health & Safety Code regarding acknowledgement of the Healdsburg Fire Department’s compliance with California Health & Safety Code Sections 13146.2 and 13146.3.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Healdsburg that said Council expressly acknowledges the measure of compliance of the Healdsburg Fire department with California Health & Safety Code Sections 13146.2 and 13146.3 in the area encompassed by the City of Healdsburg, as follows:

A. EDUCATIONAL GROUP E OCCUPANCIES:

Educational Group E occupancies are generally those of public and private schools, used by more than six persons at any one time for educational purposes through the 12th grade.

Within the City of Healdsburg, there lie 13 known Group E occupancies, buildings, structures and/or facilities.

During Calendar Year 2023, the Healdsburg Fire Marshal completed the annual inspection of 13 Group E occupancies, buildings, structures and/or facilities. This is a compliance rate of 100% for this reporting period.

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Packet Pg. 153 Attachment: Resolution (4452 : SB 1205 Fire Protection Services Inspection Report) Resolution No. -2024

B. RESIDENTIAL GROUP R OCCUPANCIES:

Residential Group R occupancies, for the purpose of this resolution, are generally those occupancies containing sleeping units, and including hotels, motels, apartments (three units or more), etc. as well as other residential occupancies (including a few residential care facilities). These residential care facilities have sub-classifications, and they may contain residents or clients that have a range of needs including those related to custodial care, mobility impairments, cognitive disabilities, etc. The residents may also be non-ambulatory or bedridden. Within the city of Healdsburg, there are 117 known Group R (and their associated sub-classifications) occupancies of this nature.

During the calendar year 2023, the Healdsburg Fire Department completed the annual inspection of 117 Group R occupancies, buildings, structures and/or facilities. For 2023 calendar year the fire department achieved 100% completion of known mandated inspections.

PASSED AND ADOPTED by the City Council of the City of Healdsburg, this 6th day of May 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. 154 Attachment: Resolution (4452 : SB 1205 Fire Protection Services Inspection Report)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: May 6, 2024
SUBJECT: Fiscal Year 2024 - 2025 Landscaping and Lighting Assessment District PREPARED BY: Jaime Licea, Parks & Open Space Superintendent STRATEGIC INITIATIVE(S):

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

Adopt a Resolution of intention to levy and collect annual assessments, preliminarily approving the Annual Engineer's Report for the Fiscal Year 2024-25 for the City of Healdsburg Landscaping and Lighting Assessment District, and setting the date and time of the public hearing.

COMMUNITY ENGAGEMENT/OUTREACH:

Beginning in 2020 staff met with residents from the Landscaping and Lighting Assessment District to identify concerns and opportunities as part of a working group. The working group meets twice per year and helps identify the work to be completed in the Zones each year.

BACKGROUND:

The City of Healdsburg utilizes a Landscaping and Lighting Assessment District (Assessment District) in accordance with the provisions of the Landscaping and Lighting Act of 1972 to fund the maintenance and operations of the landscaping improvements within the public right-of-way along specific streets and the maintenance of certain riparian and park areas in the City. The Assessment District currently consists of seven separate zones within the City. For FY 2024-25, no new zones are proposed to be created or parcels annexed. Parcels within each of the zones are assessed for funding.

On February 19, 2024, the City Council began the required annual Assessment District proceedings by adopting a resolution appointing the Engineer of Work, directing the preparation and filing of the Annual Engineer’s Report, and describing the potential changes to the Assessment District for FY 2024-25. The Annual Engineer’s Report has been prepared and filed and is submitted for the City Council’s review and preliminary approval.

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DISCUSSION/ANALYSIS:

This is the second of three City Council meetings regarding the Assessment District. By adopting the attached resolution, the City Council will set the maximum assessments that could be levied and collected in each of the zones for FY 2024-25. At the June 17, 2024, public hearing, the City Council may authorize the levy and collection of the assessments as presented at the public hearing, or decrease them, but may not increase them greater than the maximum set with this action.

The Engineer’s Report includes the full description and proposed changes to each of the zones, the proposed costs to operate and maintain the improvements, the method of apportionment of the assessments, the assessment roll for all parcels, and the assessment diagram (map) of each of the zones.

The Assessment District consists of seven zones known as:
• Zone 1 – Parkland Hills (including Quarry Ridge) Subdivision • Zone 2 – Healdsburg Estates and River’s Landing
• Zone 3 – Park and Healdsburg Avenue
• Zone 4 – Senior Housing Development
• Zone 5 - Sonata (including Grant Street Village)
• Zone 6 - Sorrento Square
• Zone 7 – Mill District (New District)
For FY 2024-25, the estimated maximum annual assessments in the existing seven zones are proposed to increase by the allowable annual CPI (year 2023) of +2.6%. Assessments to levy and collect for FY 2024-25 will all be below the maximum allowable annual assessment for each zone.

Assessments are proposed to increase in Zones 1, 2, 3, 4, and 7 and decrease in Zones 5 and 6.

The table below summarizes the FY 2024-25 proposed maximum annual assessments, proposed actual assessments to levy and collect for FY 2024-25, and actual assessments that were collected last year.

Zone
Proposed
Maximum
Annual
Assessment
Proposed
Actual
Assessment
per ESD
Proposed
Actual
Assessment
per Acre
Last Year's
Actual
Assessment
Zone 1 $317.40 $300.32 $260.82
Zone 2 $203.20 $128.44 $63.56
Zone 3 $263.31 $172.30 $125.74
Zone 4 $297.27 $283.06 $186.82
Zone 5 $947.66 $622.34 $757.16
Zone 6 $920.49 $520.56 $579.26
Zone 7 $20,802.48 $20,802.20 $5,276.00

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The overall Assessment District budget has increased approximately 24.1% from last year’s budget, largely due to the costs for the first full year of Zone 7 maintenance. Last year’s Assessment District Budget was $345,150.96 and this year’s proposed Assessment District budget will be $428,281.13.

For FY 2024-25, Zones 3 and 5 are expected to meet the target year-end reserve policy of 50% of the annual operating budget. Zones 1, 2, 4, 6 and 7 are predicted to have year-end reserves of 42%, 41%, 39% 18% and 26% respectively.

The action plan/procedure for the levy and collection of annual assessments for the City’s Assessment District for FY 2024-25 is as follows:
• The City Council adopted a Resolution on February 19, 2024, appointing the Engineer of Work, directing the preparation and filing of the Engineer’s Report, and describing any potential changes to the Assessment District. This action began the annual process. • At tonight’s meeting, the City Council will consider adopting a Resolution of Intention to Levy and Collect Assessments for FY 2024-25, preliminarily approving the Engineer’s Report, and setting the time and date of the Public Information Meeting and the Public Hearing. The City Council can preliminarily approve the Engineer’s Report as submitted or direct staff to modify it and preliminarily approve it as modified. • The City Council will hold a public hearing on June 17, 2024, and upon its conclusion, may adopt a Resolution confirming the assessments (either as originally proposed or as modified by the City Council). The adoption of this Resolution constitutes authorization to adopt the Engineer’s Report and to collect annual assessments for FY 2024-25.

The above annual action plan/procedure is required by the Landscaping & Lighting Act of 1972 of the Streets and Highways Code of the State of California.

ENVIRONMENTAL STEWARDSHIP:

Not applicable.

ALTERNATIVES:

By virtue of the Streets and Highways Code (Code), the City is mandated to adhere to the recommendation in the Code to file an Annual Engineer’s Report. By not filing the report, the City would not be in conformance with the rules and regulations of the Code and assessments could be subject to challenge. Accordingly, staff does not recommend options with respect to filing the annual Engineer’s Report.

FISCAL IMPACT:

The Landscape and Lighting Special Assessment District collects funds to support the operation and maintenance of certain areas within the City. With this year’s report, revenues from the Assessment District are estimated to be $410,897.89. Overall expenditures for the Assessment District are estimated to be $428,281.13. The difference between the revenues collected from the Assessment District and the overall estimated expenditures will come from reserves ($2,515.00) and Community Service Funds ($14,868.24).

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ENVIRONMENTAL ANALYSIS:

Activities associated with the Landscaping and Lighting Assessment District include maintenance of existing landscaping, native growth, and related facilities. Per Section 15301(h) of the State CEQA Guidelines, these activities are considered categorically exempt from the requirements of CEQA.

ATTACHMENT(S):

Resolution
Engineers Report

6.H
Packet Pg. 158

CITY OF HEALDSBURG
RESOLUTION NO. ___-2024

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALSBURG DECLARING THE INTENTION TO LEVY AND

COLLECT ANNUAL ASSESSMENTS, PRELIMINARILY
APPROVE THE ANNUAL ENGINEER’S REPORT FOR FISCAL
YEAR 2024-25 FOR THE CITY OF HEALDSBURG

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT AND

SET THE TIME AND DATE OF THE PUBLIC HEARING
WHEREAS, the City Council ordered the formation of the Landscaping and Lighting Assessment District (Assessment District) on November 4, 1996, to levy and collect assessments pursuant to the Landscaping and Lighting Act of 1972; and WHEREAS, the City Council intends to levy and collect assessments within the Assessment District during FY 2024-25, located in the City of Healdsburg, Sonoma County; and WHEREAS, pursuant to the rules and regulations of the Landscaping and Lighting Act of 1972, an Annual Engineer’s Report must be prepared and filed outlining the proposed budgets, the proposed improvements and changes to the Assessment District in order to levy and collect assessments in any following fiscal year; and
WHEREAS, on February 19, 2024, City Council adopted a resolution appointing Coastland Civil Engineering as the Engineer of Work, directing the preparation and filing of the annual Engineer’s Report, and describing the potential changes to the Assessment District for FY 2024-25; and
WHEREAS, Coastland Civil Engineering has prepared and filed with the City Clerk the Annual Preliminary Engineer’s Report for FY 2024-25 as required by the Landscaping and Lighting Act of 1972; and
WHEREAS, the operations and maintenance to be made to the improvements for the upcoming Fiscal Year 2024-25 in this Assessment District are generally described as follows:

Zone 1 – The operation, maintenance and other incidental costs associated with back-on street landscaping, riparian areas, and weed abatement areas (including the detention basin) within the Parkland Hills Subdivision (including Quarry Ridge) and along a section of the Foss Creek Restoration Project; and
Zone 2 – The operation, maintenance and other incidental costs associated with weed abatement along Paul Wittke Drive fronting Healdsburg Estates and River’s Landing; and Zone 3 – The operation, maintenance and other incidental costs associated with the Barbieri Brothers Park and landscaping on multiple reaches along the east side of Healdsburg

6.H.a
Packet Pg. 159 Attachment: Resolution (4375 : Landscaping and Lighting Assessment District) Resolution No. ___-

Avenue, located within Area A as defined in the Second Amended Engineer’s Report for the North Healdsburg Avenue Specific Plan Area A Assessment District; and Zone 4 – The operation, maintenance and other incidental costs associated with the backon street landscaping located within the Senior Housing development along a section of Parkland Farms Boulevard frontage; and
Zone 5 – The operation, maintenance and other incidental costs associated with the backon street landscaping and a creek side trail located along Larkspur Drive within the Sonata and the previously known Grant Street Village developments; and Zone 6 – The operation, maintenance and other incidental costs associated with the backon street landscaping along Healdsburg Avenue and a small pocket park along Monte Vista Avenue within the Sorrento Square development; and
Zone 7 – The operation, maintenance and other incidental costs associated with the street lighting, landscaping, irrigation, and stormwater treatment facilities associated with the landscaping within the right-of-way within the Mill District development.

WHEREAS, all interested persons are referred to the Engineer’s Report for a full and detailed description of the improvements, the proposed operation and maintenance costs, the boundaries of the Zones of the Assessment District and the proposed assessments upon assessable lots and parcels of land within the Assessment District; and WHEREAS, the estimated maximum annual assessment at build-out that can be assessed in Zones 1, 2, 3, 4, 5, 6 and 7 will be increased by the allowed annual CPI (Year 2023) of +2.6% based on the All Urban Consumers (San Francisco Area) CPI from the U.S. Department of Labor, Bureau of Labor Statistics for FY 2024-25; and
WHEREAS, the new estimated maximum annual assessments at build-out that can be assessed will be $317.40 per Equivalent Single Family Dwelling Units (ESD) in Zone 1; $203.20 per ESD in Zone 2, $263.31 per ESD in Zone 3; $297.27 per ESD in Zone 4; $947.66 per ESD in Zone 5; $920.49 per ESD in Zone 6; and $20,802.48 per acre in Zone 7 plus any allowable future annual CPI increases; and
WHEREAS, the proposed FY 2024-25 assessment amount to levy and collect include $300.32 per ESD for Zone 1, $128.44 per ESD for Zone 2, $172.30 per ESD for Zone 3, $283.06 per ESD for Zone 4, $622.34 per ESD for Zone 5, $520.56 per ESD for Zone 6; and $20,802.20 per acre for Zone 7; and
WHEREAS, activities associated with the Landscaping and Lighting Assessment District include maintenance of existing landscaping, native growth, and related facilities. Per Section 15301(h) of the State CEQA Guidelines, these activities are considered categorically exempt from

6.H.a
Packet Pg. 160 Attachment: Resolution (4375 : Landscaping and Lighting Assessment District) Resolution No. ___-

the requirements of CEQA.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg hereby intends to levy and collect assessments during FY 2024-25, preliminarily approves the filed Preliminary Engineer’s Report with the estimate of the costs and expenses to operate and maintain the said improvements and the incidental expenses in connection with each of the zones of the Assessment District for FY 2024-25; and
BE IT FURTHER RESOLVED that a public protest hearing will be held by the City Council on Monday, June 17, 2024, at 6:00 p.m. or as soon thereafter as the matter may be heard at the Healdsburg City Hall, 401 Grove St., Healdsburg, CA. At the public protest hearing, the City Council will consider the levy and collection of assessments, annexations, and any changes to the annual assessment amounts; and
BE IT FURTHER RESOLVED that the City Clerk is authorized and directed to give the Notice of Public Hearing as required by the Landscaping and Lighting Act of 1972; and BE IT FURTHER RESOLVED, this Resolution is adopted pursuant to Section 22620 of the Streets and Highways Code of the State of California; and BE IT FURTHER RESOLVED that activities associated with the Landscaping and Lighting Assessment District are categorically exempt from CEQA in accordance with the CEQA guidelines as cited in this resolution.

PASSED, APPROVED, AND ADOPTED this 6
th day of May 2024, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAINING: Councilmembers:

SO ORDERED: ATTEST:
______________________________ ________________________________ David Hagele, Mayor Raina Allan, City Clerk

6.H.a
Packet Pg. 161 Attachment: Resolution (4375 : Landscaping and Lighting Assessment District) City of Healdsburg
County of Sonoma
State of California
FY 2024-25

ANNUAL ENGINEER'S REPORT

HEALDSBURG LANDSCAPING AND LIGHTING

ASSESSMENT DISTRICT
Preliminary
May 2024
Prepared By:

Coastland Civil Engineering, LLP

6.H.b
Packet Pg. 162 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) FY 2024-25

HEALDSBURG LANDSCAPING AND LIGHTING

ASSESSMENT DISTRICT
(Pursuant to the Landscaping and Lighting Act of 1972)
The undersigned respectfully submits, as directed by the City Council on February 19, 2024, the enclosed Engineer’s Report on the 6
th day of May, 2024.

COASTLAND CIVIL ENGINEERING, INC.

By:___________________________________
John L. Wanger, RCE 43148, Exp. 3/31/26
I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessments and Assessment Diagram thereto attached was filed with the City on the day of __________ , 2024.

Raina Allan, City Clerk, City of Healdsburg,
Sonoma County, California
By:___________________________________
I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessments and Assessment Diagram thereto attached was approved and confirmed by the City Council of the City of Healdsburg, California, on the __ day of _______________, 2024.

Raina Allan, City Clerk, City of Healdsburg,
Sonoma County, California
By:___________________________________
I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessments and Assessment Diagram thereto attached, was filed with the County Auditor of the County of Sonoma on the day of , 2024.

Raina Allan, City Clerk, City of Healdsburg,
Sonoma County, California

By:____________________________________

6.H.b
Packet Pg. 163 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 3 FY 2024-25 ANNUAL ENGINEER'S REPORT

HEALDSBURG LANDSCAPING & LIGHTING ASSESSMENT DISTRICT
(Pursuant to the Landscaping & Lighting Act of 1972)
Coastland Civil Engineering, Engineer of Work for the Healdsburg Landscaping & Lighting Assessment District, City of Healdsburg, Sonoma County, California, makes this Annual Engineer’s Report, as directed on February 19th, 2024, by the City Council, pursuant to Sections 22565 and 22620 of the California Streets & Highways Code for the Healdsburg Landscaping & Lighting Assessment District for Fiscal Year (FY) 2024-25.

Background
The Healdsburg Landscaping & Lighting Assessment District was formed in November of 1996, by the City Council to cover costs associated with the operation and maintenance of landscaping within specific public rights-of-way along City streets and the maintenance of riparian and park areas within specific areas in the northern part of the City. As new subdivisions and parks are built within the City of Healdsburg, they may be annexed into existing zones or as new zones of the Assessment District on an annual basis.

Pursuant to the Landscaping & Lighting Act of 1972 (Act), an Annual Engineer’s Report must be prepared and filed in order to levy and collect assessments the following fiscal year. In the Annual Engineer’s Report, cost estimates for operation and maintenance of the facilities and new assessments are developed each year. The original 1996 formation proceedings included the estimated maximum annual assessment amount of each Zone.

Proposition 218 and Special Benefits
In 1996, California voters approved Proposition 218 which granted local governments the ability to create assessment districts, and to levy and collect assessments. The purpose of an Assessment District is to create and maintain improvements that provide special benefits to the parcels within the district. This law stipulates that a parcel’s assessment may not exceed the reasonable cost of the proportional special benefit conferred upon that parcel. “Special benefit” is defined as “a particular and distinct benefit over and above any general benefits conferred upon the public at large.

The Annual Engineer’s Report must identify the special benefits conferred upon assessed parcels through the improvements and services funded by the Assessment District. The Report must also identify any general benefit conferred upon the public at large by those same improvements and services (“improvements and services” primarily refers to landscaping or lighting in identified areas and the operation and maintenance thereof.) The annual costs of the assessed improvements and services must be apportioned between special and general benefits. The costs attributed to a general benefit may not be assessed.

6.H.b
Packet Pg. 164 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 4 The special benefits provided by maintained landscaping within each area include:
• Enhanced desirability of properties through association with the improvements, • Improved aesthetic appeal of the neighborhood,
• Improved air quality from additional vegetation, and/or • Improved fire safety through weed abatement.

The special benefits provided by maintained lighting within each area include:
• Enhanced pedestrian safety,
• Enhanced vehicle safety, and
• Enhanced security to properties.

The special benefits provided by parks are:
• A nearby location for recreational activities,
• Improved aesthetic appeal of the neighborhood,
• Improved air quality from additional vegetation, and
• Open space.

The special benefits provided by storm water treatment facilities associated with landscaping are:
• Improved water quality from reduced pollutants in storm water runoff, • Improved air quality from additional vegetation, and
• Enhanced desirability of properties through association with the improvements.

Each parcel within a zone receives a particular and distinct special benefit from the maintenance of the lighting, landscaping, stormwater treatment facilities and/or park within that zone even though the improvements may not be adjacent to each parcel. Although members of the public may walk or drive through a zone and appreciate the aesthetic appeal of the maintained improvements, this does not necessarily confer a general benefit to the public at large.

In the case where assessed improvements confer both special benefits to the parcels of a zone as well as general benefits to the public at large, the portion of each type of benefit must be quantified, and the costs apportioned accordingly. The discussion of such conditions, should they occur, is presented in Section D.

Maximum Annual Assessment and Consumer Price Index
Every zone in the Assessment District has been designated a Maximum Annual Assessment which limits the amount that can be assessed without going through a balloting process. The Maximum Annual Assessment is based upon estimates of the maximum anticipated cost of operating and maintaining the assessed facilities within each zone.

The original formation proceedings of this Assessment District allowed for an annual increase to the estimated Maximum Annual Assessments in accordance with the annual Consumer Price Index (CPI) to take inflation into account. The annual CPI is based on the All Urban Consumers (San Francisco Area) CPI from the U. S. Department of Labor, Bureau of Labor Statistics. All new

6.H.b
Packet Pg. 165 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 5 zones to be annexed into this district shall include an allowance for an annual increase to the Maximum Annual Assessments in accordance with the same CPI.

An annual CPI adjustment to the Maximum Annual Assessment is not mandatory. It is considered annually by the City Council. If an annual Report recommends an assessment that is less than the sum of the prior year’s estimated maximum annual assessment adjustments at build out plus an adjustment up by the latest annual CPI, notices shall not be required to be sent, nor shall a vote be required from the impacted property owners. If, however, an annual Report recommends an assessment that exceeds the sum of the prior year’s estimated maximum annual assessment adjustments plus an adjustment up by the latest annual CPI, noticing and/or voting shall be required from the impacted property owners for the proposed increase in accordance with the applicable provisions.

The latest annual CPI adjustment is from 2023 and is +2.60%. In order to keep up with inflation, the annual CPI adjustment will be applied to each maximum assessment for each zone for FY 2024-25. The proposed Maximum Annual Assessment for each zone is shown in Table 1.

Annual Reserve Policy
When a zone’s annual budget is not fully spent at the end of the fiscal year, the remaining monies are placed in the Annual Reserve Fund for that zone. Annual Reserve are maintained for each zone to cover unanticipated expenses and funding delays. In FY 2023-24, the City Council decreased its Annual Reserve policy target from 75-100% to 50% of the annual operating budget.

For the purpose of this report, annual operating budgets include all annual budget expenses except contributions to the Long-Term Capital Reserves and funds for Current Year Projects.

When estimated year-end Annual Reserve Fund balances are anticipated to exceed the targeted 50% of the annual operating budget, excess annual reserves may be used to reduce the zone’s annual assessment and/or be transferred to the zone’s Long-Term Capital Reserve for future long-term maintenance projects.

The Estimated Annual Reserve balances are included in the Fund Balance Section of each zone in Part B of this Report.

Long-Term Capital Reserves
Funding for the long-term replacement of assessed improvements accrues through annual contributions to the Long-Term Capital Reserve Fund. Pursuant to Streets and Highways Code Section 22660, monies for non-annual budget items may be collected through annual installments that the City will place in a fund specific for the anticipated work.

A Long-Term Capital Reserve Fund was formed in FY 2016-17 for Zone 6 to fund long-term maintenance projects such as tree pruning and replacement of plantings, soil amendments, mulch and irrigation.

In FY 2022-23, Long-Term Capital Reserves were created for Zones 1, 3, 4 and 5 to fund long-term

6.H.b
Packet Pg. 166 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 6 maintenance projects such as tree pruning and replacement of plantings, soil amendments, mulch and irrigation. The City determined that Zone 2 does not require a Long-Term Capital Reserve fund because only weed abatement activities are conducted in the zone.

In FY 2023-24, a Long-Term Capital Reserve was created for Zone 7 to collect annual contributions towards long-term maintenance projects including the replacement of plantings, soil amendments, mulch, and irrigation, street light luminaires, and storm water treatment units.

For any zones to be created in the future, a budget for the long-term replacement of the assessed improvements will be developed and a Long-Term Capital Reserve Fund will be created. An annual contribution will be made to the fund such that the full replacement costs will be accrued at the anticipated end of the design life of the improvements.

Within this report, a discussion of each zone’s Long-Term Capital Reserve is included that provides a description of the long-term projects to be funded and their budgets, the number of years needed to accumulate the total budget, and the annual contribution to be made to the Long-Term Capital Reserve. The estimated balance of the Long-Term Capital Reserve is included in the Fund Balance Section of each zone in Part B of this Report.

Fiscal Year 2024-25
No new zones are proposed for annexation into the Assessment District.

For FY 2024-25, the total proposed Assessment District budget is $428,281.13, which is a 24.1% increase over last year, largely due to the costs of the first full year of maintenance for Zone 7.

The proposed funding amounts by source are $410,897.89 from FY 2024-25 assessment revenues, $2,515.00 from existing Assessment District reserves and $14,868.24 from Community Services Fund contributions.

The proposed annual assessment to be levied and collected in Zones 3, 5 and 6 are proposed to decrease over last year, while the proposed annual assessments to be levied and collected in Zones 1, 2, 4 and 7 are proposed to increase.

This report recommends that the FY 2024-25 maximum annual assessment for each zone be increased by the allowed latest annual (Year 2023) CPI of +2.60%. This will give the City the ability to keep up with inflation, as needed.

Table 1, below, summarizes the proposed FY 2024-25 annual assessments to levy and collect and the new estimated maximum annual assessments allowed to be assessed.

6.H.b
Packet Pg. 167 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 7 Table 1: Proposed FY 2024-25 Annual Assessments
Proposed
Maximum
Annual
Assessment
per ESD
Proposed
Maximum
Annual
Assessment
per Acre
Proposed Actual
Assessment
per ESD
Proposed Actual
Assessment
per Acre
Zone 1 $317.40 $300.32
Zone 2 $203.20 $128.44
Zone 3 $263.31 $172.30
Zone 4 $297.27 $283.06
Zone 5 $947.66 $622.34
Zone 6 $920.49 $520.56
Zone 7 $20,802.48 $20,802.20
The California Constitution made several changes in State law which impact Assessment Districts.

By virtue of Article XIII D (sometimes referred to as Proposition 218), Section 4, property owners may express their support or opposition to a proposed assessment increase by ballot. Per Section 4, ballots are required to be sent out for annexations into an existing Zone within the Assessment District, for new Zones that are added into the Assessment District or for other proposed changes causing an increase over the maximum annual assessments (above the allowed annual CPI increases). The balloting is limited to only those property owners directly impacted by those proposed changes to the Assessment District.

Zone 1 – Parkland Hills Subdivision (Including Quarry Ridge) Zone 1 was created to recover the costs associated with the operation and maintenance of backon landscaping of several streets, several weed abatement areas and re-vegetation of a riparian area located within Parkland Hills Subdivision (including Quarry Ridge). More specifically, assessments pay for the operation and maintenance costs associated with street landscaping of Parkland Farms Blvd., Canyon Run, Saddle Draw, Bridle Path, several weed abatement areas, maintenance of the riparian area (Foss Creek Relocation / Renovation Area), and water and electric utility costs associated with the landscaping maintenance and administrative costs. All Zone 1 landscaping improvements have been constructed.

The Parkland Hills Subdivision was constructed in phases. In Phases 1, 2, 3, 4, 5, 6, 7, 8, 9, 10A and 10B, most residences have been built. The Quarry Ridge Subdivision, formerly known as Parcel A, was subdivided into 21 lots and is currently built out. Twenty of the twenty-one lots were sold to private parties for partial self-construction of single-family residences, similar to a “sweat equity” arrangement. On the last lot, lot 21, 51 apartment units were built. Parkland Hills, Parcel B, owned by the City of Healdsburg Redevelopment Agency, was previously designated for development with affordable housing units. In FY 2004-05, it was developed into 15 lots and is currently built out. There are no annexations into Zone 1 for FY 2024-25.

The Zone 1 annual assessment, which will be levied on each parcel, is dependent on the

6.H.b
Packet Pg. 168 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 8 development status (vacant, single-family dwelling, multiple dwelling units, etc.) which determines the equivalent single-family dwelling units (ESD) of a particular parcel. The number of ESDs has not changed from last year. See Part D, Method of Apportionment of Assessment for a description of the manner that the assessment has been apportioned to each parcel.

In FY 2022-23, a Long-Term Capital Reserve Fund was created for Zone 1 to collect annual contributions towards long-term maintenance projects including the replacement of plantings, soil amendments, mulch, and irrigation. The total budget for the proposed long-term projects is $240,000. It is anticipated that these funds will need to be expended every 15 years, or as otherwise needed. The annual contribution to the Long-Term Capital Reserve Fund is expected to be $16,000, or as annual budgets allow. The estimated balance of the Long-Term Capital Reserve is included in the Fund Balance Section of Zone 1 in Part B of this Report.

For FY 2024-25, a budget of $114,121.60 is proposed for Zone 1. This is an increase of 1.8% from the FY 2023-24 budget. A budget of $15,000 has been set aside for current year projects in Zone 1 which will include mulching and vegetation removal in riparian areas. The proposed Zone 1 annual assessment to be levied and collected for FY 2024-25 is $300.32 per ESD, which is a $39.50 increase from last year. The estimated Zone 1 Annual Reserve balance at the end of the fiscal year is anticipated to be 42% of the annual operating budget, below the target of 50%.

To keep up with inflation, the maximum annual assessment is proposed to increase for FY 2024- 25 as shown in Table 1, above. See Part B of this Engineer’s Report for Zone 1 budget details determined in accordance with Section 22569 of the Streets and Highways Code.

For FY 2024-25, California Constitution Article XIII D, Section 4 balloting requirements do not impact Zone 1.

Zone 2 - Healdsburg Estates and River’s Landing Subdivisions Zone 2 provides funding for the operation and maintenance of weed abatement areas along Paul Witke Drive. The Zone 2 annual assessment, which will be levied on each parcel, is dependent on the development status (vacant, single-family dwelling, multiple dwelling units, etc.) of the particular parcel. All lots within Healdsburg Estates and River’s Landing Subdivisions have been developed with residential dwellings. Build-out was reached in FY 2008-09. There are no annexations into Zone 2 for FY 2024-25.

The Zone 2 annual assessment, which will be levied on each parcel, is dependent on the development status (vacant, single-family dwelling, multiple dwelling units, etc.) which determines the equivalent single-family dwelling units (ESD) of a particular parcel. The number of ESDs has not changed from last year. See Part D, Method of Apportionment of Assessment for a description of the manner that the assessment has been apportioned to each parcel.

For FY 2024-25, a budget of $7,706.40 is proposed for Zone 2. This is an increase of 19.7% from last year partly due to higher anticipated utility costs. The funding source for the proposed budget is FY 2024-25 assessment revenue.

6.H.b
Packet Pg. 169 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 9 The proposed Zone 2 annual assessment for FY 2024-25 is $128.44 per ESD, which is $64.88 higher than last year. The increased assessment this year is largely due to not having Annual Reserve funds available to reduce the assessment as was done last year. The estimated Zone 2 Annual Reserve balance at the end of the fiscal year is anticipated to be 41% of the annual operating budget, below the target of 50%.

To keep up with inflation, the maximum annual assessment is proposed to increase for FY 2024- 25 as shown in Table 1, above. See Part B of this Engineer’s Report for Zone 2 budget details determined in accordance with Section 22569 of the Streets and Highways Code.

For FY 2024-25, California Constitution Article XIII D, Section 4 balloting requirements do not impact Zone 2.

Zone 3 – Barbieri Brothers Park and Healdsburg Avenue Frontage Landscaping Zone 3 provides funding for the operation and maintenance of Barbieri Brothers Park located within the Parkland Hills Subdivision as well as the frontage landscaping along the east side of Healdsburg Avenue within Area A (For the specific boundary of Area A, see the Second Amended Engineer’s Report North Healdsburg Avenue Specific Plan Area A Assessment District, City of Healdsburg, Sonoma County, CA, dated June 19, 1995, and amended August 7, 1995, and August 21, 1995). The existing retaining wall within the landscaped area was constructed by the City as part of the widening of Healdsburg Avenue. The Assessment District is not responsible for the maintenance of the retaining wall. Barbieri Brothers Park is designated as mitigation for park area within North Healdsburg Avenue Specific Plan Area A Assessment District. Barbieri Brothers Park was completed, and the grand opening was held in April 2005. Assessments for all parcels within Area A are determined for Zone 3. The parcels that have not yet been annexed into the assessment district have their share of special benefits covered by a Community Services Fund contribution. The Assessment District subdivisions within Zone 3 are: Parkland Hills, Quarry Ridge, Healdsburg Estates, Ridgeline, Sienna Pointe, Fanny Hill Estates, Senior Housing, River’s Landing, Rosewood Creek and Rosewood Heights. There are no annexations into Zone 3 for FY 2024-25.

The Zone 3 annual assessment, which will be levied on each parcel, is dependent on the development status (vacant, single-family dwelling, multiple dwelling units, etc.) which determines the equivalent single-family dwelling units (ESD) of a particular parcel. The number of ESDs has not changed from last year. See Part D, Method of Apportionment of Assessment for a description of the manner that the assessment has been apportioned to each parcel and how the Community Services Fund contribution level was determined.

In FY 2022-23, a Long-Term Capital Reserve Fund was created for Zone 3 to collect annual contributions towards long-term maintenance projects including the replacement of plantings, soil amendments, mulch, and irrigation. The total budget for the proposed long-term projects is $99,000. It is anticipated that these funds will need to be expended every 15 years, or as otherwise needed. The annual contribution to the Long-Term Capital Reserve Fund is expected to be $6,600, or as annual budgets allow. The estimated balance of the Long-Term Capital

6.H.b
Packet Pg. 170 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 10 Reserve is included in the Fund Balance Section of Zone 3 in Part B of this Report.

For FY 2024-25, a budget of $93,296.29 is proposed for Zone 3, which is a decrease of 24.1% from last year. Funding sources for the proposed budget include FY 2024-25 assessment revenue and a Community Services Fund contribution of $5,681.74.

The proposed Zone 3 annual assessment for FY 2024-25 is $172.30 per ESD, which is $46.56 higher than last year. The increased assessment this year is largely due to not having Annual Reserve funds available to reduce the assessment as was done last year. The estimated Zone 3 Annual Reserve balance at the end of the fiscal year is anticipated to meet the target 50% of the annual operating budget.

To keep up with inflation, the maximum annual assessment is proposed to increase for FY 2024- 25 as shown in Table 1, above. See Part B of this Engineer’s Report for Zone 3 budget details determined in accordance with Section 22569 of the Streets and Highways Code.

For FY 2024-25, California Constitution Article XIII D, Section 4 balloting requirements do not impact Zone 3.

Zone 4 – Senior Housing
Zone 4 was created to provide funding for the operation and maintenance of landscaping fronting a senior housing development along Parkland Farms Boulevard. The senior housing development contains 24 single-family dwelling units and is fully built-out.

The Zone 4 annual assessment, which will be levied on each parcel, is dependent on the development status (vacant, single-family dwelling, multiple dwelling units, etc.) which determines the equivalent single-family dwelling units (ESD) of a particular parcel. The number of ESDs has not changed from last year. See Part D, Method of Apportionment of Assessment for a description of the manner that the assessment has been apportioned to each parcel.

In FY 2022-23, a Long-Term Capital Reserve Fund was created for Zone 4 to collect annual contributions towards long-term maintenance projects including the replacement of plantings, soil amendments, mulch, and irrigation. The total budget for the proposed long-term projects is $35,000. It is anticipated that these funds will need to be expended every 20 years, or as otherwise needed. The annual contribution to the Long-Term Capital Reserve Fund is expected to be $1,750, or as annual budgets allow. The estimated balance of the Long-Term Capital Reserve is included in the Fund Balance Section of Zone 3 in Part B of this Report.

For FY 2024-25, a budget of $6,793.44 is proposed for Zone 4. This is a 17% increase from last year’s budget due to increased maintenance needs. The proposed funding for the budget is from FY 2024-25 assessment revenues.

The proposed Zone 4 annual assessment for FY 2024-25 is $283.06 per ESD, a $96.24 increase from last year. The increased assessment this year is largely due to not having Annual Reserve funds available to reduce the assessment as was done last year. The estimated Zone 4 Annual

6.H.b
Packet Pg. 171 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 11 Reserve balance at the end of the fiscal year is anticipated to be 39% of the annual operating budget, below the target of 50%.

To keep up with inflation, the maximum annual assessment is proposed to increase for FY 2024- 25 as shown in Table 1, above. See Part B of this Engineer’s Report for Zone 4 budget details determined in accordance with Section 22569 of the Streets and Highways Code.

For FY 2024-25, California Constitution Article XIII D, Section 4 balloting requirements do not impact Zone 4.

Zone 5 – Sonata Subdivision (includes Grant Street Village) Zone 5 provides funding for the operation and maintenance of a trail along Foss Creek and landscaping along Larkspur Drive within Grant Street Village.

In FY 2008-09, a proposed 40-lot subdivision, Grant Street Village, was annexed into a new Zone 5. Grant Street Village was never completed. As there were no accepted City improvements in this Zone, assessments were set to zero in FY 2010-11 and continued at that level through FY 2012-13.

During 2013, a new map, Sonata Subdivision, was recorded for the undeveloped area. This map reduced the overall number of lots to 37 and added a small pocket park. The pocket park is used as a waiting area for a bus stop and a public art display area. This pocket park area has been deemed a general benefit to the City at large. Maintenance and upkeep are paid for by the City with other funding. The maintenance requirements and utility costs associated with the proposed trail and landscaping improvements along Larkspur Drive remained unchanged.

Due to the maintenance requirements and the reduced number of parcels, a new maximum annual assessment was established in FY 2013-14 according to CC Article XIII D, Section 4 noticing/voting requirements.

The Zone 5 annual assessment, which will be levied on each parcel, is dependent on the development status (vacant, single-family dwelling, multiple dwelling units, etc.) which determines the equivalent single-family dwelling units (ESD) of a particular parcel. The number of ESDs has not changed from last year. See Part D, Method of Apportionment of Assessment for a description of the manner that the assessment has been apportioned to each parcel.

In FY 2022-23, a Long-Term Capital Reserve Fund was created for Zone 5 to collect annual contributions towards long-term maintenance projects including the replacement of plantings, soil amendments, mulch, and irrigation. The total budget for the proposed long-term projects is $108,000. It is anticipated that these funds will need to be expended every 20 years, or as otherwise needed. The annual contribution to the Long-Term Capital Reserve Fund is expected to be $5,400, or as annual budgets allow. The estimated balance of the Long-Term Capital Reserve is included in the Fund Balance Section of Zone 5 in Part B of this Report.

For FY 2024-25, a budget of $25,541.58 is proposed for Zone 5. This is a decrease of 12.8% from last year partly due to lower anticipated maintenance and utility costs. The proposed funding for

6.H.b
Packet Pg. 172 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 12 the budget will be from FY 2024-25 assessment revenues and available annual reserves.

The proposed Zone 5 assessment for FY 2024-25 is $622.34 per ESD, a $134.82 decrease from last year. The decreased assessment this year is partly due to having more Annual Reserve funds available to reduce the assessment this year compared to last year. The estimated Zone 5 Annual Reserve balance at the end of the fiscal year is anticipated to meet the target 50% of the annual operating budget.

To keep up with inflation, the maximum annual assessment is proposed to increase for FY 2024- 25 as shown in Table 1, above. See Part B of this Engineer’s Report for Zone 5 budget details determined in accordance with Section 22569 of the Streets and Highways Code.

For FY 2024-25, California Constitution Article XIII D, Section 4 balloting requirements do not impact Zone 5.

Zone 6 – Sorrento Square
In FY 2016-17, Sorrento Square Subdivision, a 34-lot subdivision, was annexed into a new Zone 6.

All of the homes in this subdivision have been built. Zone 6 was created to provide funding for the operation and maintenance of back-on street landscaping along Healdsburg Avenue at Sorrento Square and landscaping, lighting, and other related costs for a small pocket park within the subdivision along Monte Vista Avenue. Landscape maintenance in the pocket park includes the maintenance of tables and benches, a drinking fountain (including water costs), a concrete retaining wall and sidewalks within the pocket park. The Healdsburg Avenue frontage improvements being maintained by this zone are not within the previously mentioned Area A.

The Zone 6 annual assessment, for each parcel, is dependent on the development status (vacant, single-family dwelling, multiple dwelling units, etc.) which determines the equivalent singlefamily dwelling units (ESD) of a particular parcel. The number of ESDs has not changed from last year. Parcels that receive a special benefit from the pocket park but have not been annexed into the assessment district have their share of benefit costs covered by a Community Services Fund contribution. See Part D, Method of Apportionment of Assessment for a description of the manner that the assessment has been apportioned to each parcel and a description of how the Community Services Fund contribution level was determined.

In FY 2016-17, a Long-Term Capital Reserve Fund was created for Zone 6 to collect annual contributions towards long-term maintenance projects including the replacement of plantings, soil amendments, mulch, and irrigation. The total budget for the proposed long-term projects is $80,000. It is anticipated that these funds will need to be expended every 20 years, or as otherwise needed. The annual contribution to the Long-Term Capital Reserve Fund is expected to be $4,000, or as annual budgets allow. The estimated balance of the Long-Term Capital Reserve is included in the Fund Balance Section of Zone 5 in Part B of this Report.

6.H.b
Packet Pg. 173 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 13 For FY 2024-25 a budget of $26,885.54 has been proposed for Zone 6. This is a decrease of 9.0% from last year partly due to lower anticipated utility costs. Funding sources for the proposed budget include FY 2024-25 assessment revenue and a Community Services Fund contribution of $9,186.50.

The proposed Zone 6 assessment for FY 2024-25 is $520.56 per ESD, a $58.70 decrease from last year. The decreased assessment this year is partly due to lower anticipated utility costs. The estimated Zone 6 Annual Reserve balance at the end of the fiscal year is anticipated to be 18% of the annual operating budget, below the target of 50%.

To keep up with inflation, the maximum annual assessment is proposed to increase for FY 2024- 25 as shown in Table 1, above. See Part B of this Engineer’s Report for Zone 6 budget details determined in accordance with Section 22569 of the Streets and Highways Code.

For FY 2024-25, California Constitution Article XIII D, Section 4 balloting requirements do not impact Zone 6.

Zone 7 – Mill District
In FY 2023-24, Mill District was annexed into a new Zone 7. This zone was created to provide funding for the operation and maintenance of street lighting, landscaping, and storm water treatment facilities associated with the landscaping (Silva cells and rain garden units) in the public right-of-way fronting Healdsburg Avenue, Saw Mill Circle, Branch Lane and South Street.

Mill District consists of seven parcels with mixed uses including residential units (market-rate and affordable units), commercial space, a hotel, and a privately-owned park.

The Zone 7 annual assessment, which will be levied on each parcel in the zone, will be apportioned by parcel area (not by ESDs) due to the considerable variation in parcel size and corresponding degree of benefit from the assessed improvements. See Part D, Method of Apportionment of Assessment for a description of the manner that the assessment has been apportioned to each parcel.

A Zone 7 Long-Term Capital Reserve Fund was created to collect annual contributions towards long-term maintenance projects including the replacement of plantings, soil amendments, mulch, and irrigation, street light luminaires, and storm water treatment units. The total budget for the proposed long-term projects is $4,687,954.00. The replacement costs and frequency anticipated for each item are detailed in the table below.

6.H.b
Packet Pg. 174 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 14 Zone 7 Long-Term Capital Reserve Detail
Item Total Replacement
Reserve Needed
Replacement
Frequency
(years)
Annual Reserve
Contribution
Silva cells (10 units) $ 4,150,000.00 75 $ 55,333.33
Bioretention
(25 rain garden units) $ 100,800.00 10 $ 10,080.00
Irrigation $ 138,250.00 20 $ 6,912.50
Landscaping (less mulch) $ 217,250.00 20 $ 10,862.50
Mulch $ 39,500.00 20 $ 1,975.00
Site Furnishing $ 5,000.00 10 $ 500.00
Street Light Luminaire Replacement $ 37,154.00 12 $ 3,096.17 Total $ 4,687,954.00 $ 88,759.50
The 12-month annual contribution to the Long-Term Capital Reserve Fund is expected to be $88,759.50, or as annual budgets allow. The estimated balance of the Long-Term Capital Reserve is included in the Fund Balance Section of Zone 7 in Part B of this Report.

For FY 2024-25, a budget of $153,936.28 has been proposed for Zone 7. This is an increase of 294% due to this being the first full year of maintenance costs for the zone. The proposed budget funding source will be from FY 2024-25 assessment revenues.

The proposed Zone 7 annual assessment for FY 2024-25 is $20,802.20 per acre, a $15,526.20 increase from last year. The increased assessment this year is due to this including a full year of maintenance, compared to last year’s 3-month budget. The estimated Zone 7 Annual Reserve balance at the end of the fiscal year is anticipated to be 26% of the annual operating budget, below the target of 50%.

To keep up with inflation, the maximum annual assessment is proposed to increase for FY 2024- 25 as shown in Table 1, above. See Part B of this Engineer’s Report for Zone 7 budget details determined in accordance with Section 22569 of the Streets and Highways Code.

For FY 2024-25, California Constitution Article XIII D, Section 4 balloting requirements do not impact Zone 7.

6.H.b
Packet Pg. 175 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 15 FY 2024-25 Engineer’s Report Format
This FY 2024-25 Engineer’s Report consists of the following parts:

PART A Plans- This portion of the Engineer’s Report describes any plans and specifications that may be needed for the installation of improvements. If plans and specifications exist, they are filed with the City Clerk. Although separately bound, the plans and specifications are part of this Engineer’s Report and are included in it by reference.

PART B Budget Cost Estimate – Budget cost estimates associated with the operations and maintenance of the described improvements for each of the Zones. In addition to an overall budget summary for all Zones, a detailed FY 2024-25 Budget and a FY 2024-25 Summary of Fund Balance is provided for each of the Zones.

PART C Assessment Roll – A listing of the assessment on each benefited parcel of land in each of the Zones within the Assessment District. The assessment amount is the estimated cost each parcel will contribute towards the operation and maintenance of the improvements within the Assessment District for FY 2024-25.

PART D Method of Apportionment of Assessment – A statement of the method used by the Engineer of Work to determine the proposed amount to be assessed against each parcel within the Assessment District.

PART E Property Owners List – The names and addresses of the owners of real property listed within this Assessment District, as shown on the last equalized assessment roll for taxes. Assessor Parcel Number (APN) keys the list into the Assessment Roll of Part C.

PART F Assessment Diagram – Diagrams (maps) showing all of the parcels of real property within each of the Zones of the Assessment District. The assessment number keys the diagram to Part C – Assessment Roll.

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Packet Pg. 176 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 16 PART A

PLANS AND SPECIFICATIONS
The Assessment District proposes to operate and maintain the landscaping improvements, weed abatement areas, pocket parks, and riparian area located in specific public rights-of-way, once it has been installed by the development and accepted by the City, located in specific public rightsof-way of the various subdivisions, developments and improvement areas in this assessment district. In addition, the Assessment District developed the improvement plans and specifications for a park located in Parkland Hills Subdivision (now known as Barbieri Brothers Park).

Maintenance in each of the Zones may include repair, removal or replacement of any landscape improvement, damaged irrigation facilities or diseased landscaping, weed and brush clearing and all other allowable maintenance items including Section 22531 of the California Streets and Highways Code for the life of the Assessment District.

6.H.b
Packet Pg. 177 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 17 PART B
FY 2024-25 BUDGET COST ESTIMATE
In the attached sheets you will find the detailed budgets for FY 2024-25 for all those costs associated with the operation and maintenance of each of the Zones within the Assessment District. The budgets have been separated by Zone for clarity. The total budget summary for FY 2024-25 for the Healdsburg Landscaping & Lighting Assessment District is as follows:

As Filed
with the City
As Preliminarily
Approved
As Finally Approved
at the Public
Hearing
Zone 1 $114,121.60 $ $
Zone 2 $7,706.40 $ $
Zone 3 $93,296.29 $ $
Zone 4 $6,793.44 $ $
Zone 5 $25,541.58 $ $
Zone 6 $26,885.54 $ $
Zone 7 $153,936.28 $ $
Total $428,281.13 $ $
A breakdown of the total FY 2024-25 budget, revenue source amounts, and anticipated starting fiscal year reserve per Zone is as follows:

Estimated
Starting
Reserves
Budget Assessment
Revenue
Reserves
Used
Community
Services Fund
for Special
Benefit
Zone 1 $34,251.12 $114,121.60 $114,121.60 $0.00 $0.00
Zone 2 $3,080.06 $7,706.40 $7,706.40 $0.00 $0.00
Zone 3 $42,884.92 $93,296.29 $87,614.55 $0.00 $5,681.74 Zone 4 $2,021.24 $6,793.44 $6,793.44 $0.00 $0.00
Zone 5 $12,499.36 $25,541.58 $23,026.58 $2,515.00 $0.00 Zone 6 $3,927.92 $26,885.54 $17,699.04 $0.00 $9,186.50
Zone 7 $16,177.53 $153,936.28 $153,936.28 $0.00 $0.00
Total $114,842.15 $428,281.13 $410,897.89 $2,515.00 $14,868.24

6.H.b
Packet Pg. 178 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) Estimated Budget
2023-24 2024-25
Landscaping
City Staff Salaries and Benefits $12,108.84 $14,311.00
Insurance $1,436.00 $673.00
Contract/Professional Services $36,300.00 $39,770.00
Repairs and Maintenance $500.00 $1,699.00
Rentals and Leases (Previously Equipment and Supplies) $500.00 $0.00 Long Term Capital Reserve
Contribution towards Future Projects $16,000.00 $16,000.00 Current Year Projects
Zone 1 Projects $18,500.00 $15,000.00
Utility Costs
Utility Services (Includes both Water and Electric) $12,000.00 $11,000.00 County Fee $15.00 $16.00
Subtotal $97,359.84 $98,469.00
Assessment Engineering (Coastland) $5,868.12 $4,431.11
City Administration (including audit) $4,020.00 $6,295.03 Contingency $4,863.64 $4,926.46
Total Expenses $112,111.60 $114,121.60
Less Contributions from Annual Reserves $13,000.00 $0.00 Less Long Term Capital Reserve Fund Expenditures $0.00 $0.00 Total Costs $99,111.60 $114,121.60
Total Revenue $99,111.60 $114,121.60
Total Equivalent Single Family Dwelling Units (ESD) 380.0 380.0 Proposed Fiscal Year Assessment per ESD $260.82 $300.32 Maximum Annual Assessment per ESD
for Zone 1, FY 2023-24 with allowed CPI increase of: 4.90% $309.36 Current Maximum Annual Assessment per ESD
for Zone 1, FY 2024-25 with allowed CPI increase of: 2.60% $317.40

CITY OF HEALDSBURG

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
FY 2024-25 Budget
Zone 1 - Parkland Hills Subdivision (Includes Quarry Ridge) 2024-H-LLAD.xlsx 18 4/9/2024

6.H.b
Packet Pg. 179 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 2024-25
Estimated Annual Reserve Fund as of July 1 $34,251.12
Estimated Long Term Capital Reserve Fund as of July 1 $89,044.00 Estimated Annual Revenue $98,121.60
Estimated Long Term Capital Revenue $16,000.00
Estimated Interest Earned $390.00
Total Estimated Funds Available $237,806.72
Estimated Annual Expenditures $98,121.60
Estimated Long Term Capital Expenditures $0.00
Estimated Annual Reserve as of June 30 $34,641.12
As a percent of Annual Operating Expenses (Goal is 50%) 42% Estimated Long Term Capital Reserve Fund as of June 30 $105,044.00

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
FY 2024-25 Budget
Zone 1 - Parkland Hills Subdivision
Summary of Fund Balance

CITY OF HEALDSBURG
2024-H-LLAD.xlsx 19 4/9/2024

6.H.b
Packet Pg. 180 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) Estimated Budget
2023-24 2024-25
Landscaping
City Staff Salaries and Benefits $2,992.41 $4,054.00
Insurance $287.00 $123.00
Contract/Professional Services $0.00 $0.00
Repairs and Maintenance $1,000.00 $1,000.00
Rentals and Leases (Previously Equipment and Supplies) $0.00 $0.00 Current Year Projects
Zone 2 Projects $0.00 $0.00
Utility Costs
Utility Services (Includes both Water and Electric) $0.00 $822.85 County Fee $58.00 $0.00
Subtotal $4,337.41 $5,999.85
Assessment Engineering (Coastland) $484.10 $402.66
City Administration (including audit) $1,180.00 $703.20 Contingency $434.09 $600.69
Total Expenses $6,435.60 $7,706.40
Less Annual Reserve Fund Expenditures $2,622.00 $0.00
Total Costs $3,813.60 $7,706.40
Total Revenue $3,813.60 $7,706.40
Total Equivalent Single Family Dwelling Units (ESD) 60.0 60.0 Proposed Fiscal Year Assessment per ESD $63.56 $128.44
Maximum Annual Assessment per ESD
for Zone 2, FY 2023-24 with allowed CPI increase of: 4.90% $198.05 Current Maximum Annual Assessment per ESD
for Zone 2, FY 2024-25 with allowed CPI increase of: 2.60% $203.20

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
FY 2024-25 Budget
Zone 2 - Healdsburg Estates & River's Landing Subdivisions

CITY OF HEALDSBURG
2024-H-LLAD.xlsx 20 4/9/2024

6.H.b
Packet Pg. 181 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 2024-25
Estimated Annual Reserve Fund as of July 1 $3,080.06
Estimated Annual Revenue $7,706.40
Estimated Interest Earned $60.00
Total Estimated Funds Available $10,846.46
Estimated Annual Expenditures $7,706.40
Estimated Annual Reserve Balance as of June 30 $3,140.06 As a percent of Annual Operating Expenses (Goal is 50%) 41% FY 2024-25 Budget
Zone 2 - Healdsburg Estates & River's Landing Subdivisions Summary of Fund Balance

CITY OF HEALDSBURG

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
2024-H-LLAD.xlsx 21 4/9/2024

6.H.b
Packet Pg. 182 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) Estimated Budget
2023-24 2024-25
Landscaping
City Staff Salaries and Benefits $7,896.20 $8,614.00
Insurance $862.00 $367.00
Contract/Professional Services $28,010.00 $49,309.00
Repairs and Maintenance $1,000.00 $1,650.00
Rentals and Leases (Previously Equipment and Supplies) $0.00 $0.00 Rental Equipment $0.00 $0.00
Long Term Capital Reserve
Contribution towards Future Projects $6,600.00 $6,600.00 Current Year Projects
Zone 3 Projects $50,000.00 $0.00
Utility Costs
Utility Services (Includes both Water and Electric) $16,000.00 $16,000.00 County Fee $623.00 $16.00
Subtotal $110,991.20 $82,556.00
Assessment Engineering (Coastland) $5,259.84 $4,865.82
City Administration (including audit) $5,556.00 $5,044.47 Contingency $1,117.88 $830.00
Total Expenses $122,924.92 $93,296.29
Less Community Services Funding for Special Benefit $7,486.13 $5,681.74 Less Annual Reserve Fund Expenditures $51,500.00 $0.00
Less Long Term Capital Reserve Fund Expenditures $0.00 $0.00 Total Costs $63,938.79 $87,614.55
Total Revenue $63,938.79 $87,614.55
Total Equivalent Single Family Dwelling Units (ESD) 508.5 508.5 Proposed Fiscal Year Assessment per ESD $125.74 $172.30 Maximum Annual Assessment per ESD
for Zone 3, FY 2023-24 with allowed CPI increase of: 4.90% $256.64 Current Maximum Annual Assessment per ESD
for Zone 3, FY 2024-25 with allowed CPI increase of: 2.60% $263.31 FY 2024-25 Budget
Zone 3 - Park and Healdsburg Avenue

CITY OF HEALDSBURG

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
2024-H-LLAD.xlsx 22 4/9/2024

6.H.b
Packet Pg. 183 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 2024-25
Estimated Annual Reserve Fund as of July 1 $42,884.92
Estimated Long Term Capital Reserve Fund as of July 1 $41,245.73 Estimated Annual Revenue $81,014.55
Estimated Long Term Capital Reserve Revenue $6,600.00
Estimated Community Services Fund Contribution for Special Benefits $5,681.74 Estimated Interest Earned $325.00
Total Estimated Funds Available $177,751.94
Estimated Annual Expenditures $86,696.29
Estimated Long Term Capital Expenditures $0.00
Estimated Annual Reserve Balance as of June 30 $43,209.92 As a percent of Annual Operating Expenses (Goal is 50%) 50% Estimated Long Term Capital Reserve Balance as of June 30 $47,845.73 Zone 3 - Park and Healdsburg Avenue
Summary of Fund Balance

CITY OF HEALDSBURG

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
FY 2024-25 Budget
2024-H-LLAD.xlsx 23 4/9/2024

6.H.b
Packet Pg. 184 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) Estimated Budget
2023-24 2024-25
Landscaping
City Staff Salaries and Benefits $2,992.41 $4,054.00
Insurance $287.00 $123.00
Contract/Professional Services $0.00 $0.00
Repairs and Maintenance $0.00 $0.00
Rentals and Leases (Previously Equipment and Supplies) $0.00 $0.00 Long Term Capital Reserve
Contribution towards Future Projects $910.00 $1,500.00
Current Year Projects
Zone 4 Projects $0.00 $0.00
Utility Costs
Utility Services (Includes both Water and Electric) $0.00 $0.00 County Fee $42.00 $0.00
Subtotal $4,231.41 $5,677.00
Assessment Engineering (Coastland) $386.54 $290.32
City Administration (including audit) $1,084.00 $655.87 Contingency $102.73 $170.25
Total Expenses $5,804.68 $6,793.44
Less Annual Reserve Fund Expenditures $1,321.00 $0.00
Less Long Term Capital Reserve Fund Expenditures $0.00 $0.00 Total Costs $4,483.68 $6,793.44
Total Revenue $4,483.68 $6,793.44
Total Equivalent Single Family Dwelling Units (ESD) 24.0 24.0 Proposed Fiscal Year Assessment per ESD $186.82 $283.06 Maximum Annual Assessment per ESD
for Zone 4, FY 2023-24 with allowed CPI increase of: 4.90% $289.74 Current Maximum Annual Assessment per ESD
for Zone 4, FY 2024-25 with allowed CPI increase of: 2.60% $297.27

CITY OF HEALDSBURG

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
FY 2024-25 Budget
Zone 4 - Senior Housing
2024-H-LLAD.xlsx 24 4/9/2024

6.H.b
Packet Pg. 185 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 2024-25
Estimated Annual Reserve Fund as of July 1 $2,021.24
Estimated Long Term Capital Reserve Fund as of July 1 $3,366.00 Estimated Annual Revenue $5,293.44
Estmated Long Term Capital Reserve Revenue $1,500.00

Estimated Interest Earned $50.00
Total Estimated Funds Available $12,230.68
Estimated Annual Expenditures $5,293.44
Estimated Long Term Capital Expenditures $0.00
Estimated Annual Reserve Balance as of June 30 $2,071.24 As a percent of Annual Operating Expenses (Goal is 50%) 39% Estimated Long Term Capital Reserve Balance as of June 30 $4,866.00 Summary of Fund Balance

CITY OF HEALDSBURG

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
FY 2024-25 Budget
Zone 4 - Senior Housing
2024-H-LLAD.xlsx 25 4/9/2024

6.H.b
Packet Pg. 186 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) Estimated Budget
2023-24 2024-25
Landscaping
City Staff Salaries and Benefits $2,992.41 $4,054.00
Insurance $287.00 $123.00
Contract/Professional Services $6,920.00 $4,800.00
Repairs and Maintenance $1,000.00 $1,150.00
Rentals and Leases (Previously Equipment and Supplies) $0.00 $0.00 Long Term Capital Reserve
Contribution towards Future Projects $5,400.00 $5,400.00 Current Year Projects
Zone 5 Projects $0.00 $0.00
Utility Costs
Utility Services (Includes both Water and Electric) $6,600.00 $5,500.00 County Fee $150.00 $0.00
Subtotal $23,349.41 $21,027.00
Assessment Engineering (Coastland) $1,737.57 $1,022.15
City Administration (including audit) $1,854.00 $1,388.64 Contingency $2,335.94 $2,103.79
Total Expenses $29,276.92 $25,541.58
Less Annual Reserve Fund Expenditures $1,262.00 $2,515.00 Less Long Term Capital Reserve Fund Expenditures $0.00 $0.00 Total Costs $28,014.92 $23,026.58
Total Revenue $28,014.92 $23,026.58
Total Equivalent Single Family Dwelling Units (ESD) 37.0 37.0 Proposed Fiscal Year Assessment per ESD $757.16 $622.34 Maximum Annual Assessment per ESD
for Zone 5, FY 2023-24 with allowed CPI increase of: 4.90% $923.65 Current Maximum Annual Assessment per ESD
for Zone 5, FY 2024-25 with allowed CPI increase of: 2.60% $947.66

CITY OF HEALDSBURG

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
FY 2024-25 Budget
Zone 5 - Sonata (Includes Grant Street Village)
2024-H-LLAD.xlsx 26 4/9/2024

6.H.b
Packet Pg. 187 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 2024-25
Estimated Annual Reserve Fund as of July 1 $12,499.36
Estimated Long Term Capital Reserve Fund as of July 1 $25,240.00 Estimated Annual Revenue $17,626.58
Estimated Long Term Capital Reserve Revenue $5,400.00
Estimated Interest Earned $116.00
Total Estimated Funds Available $60,881.94
Estimated Annual Expenditures $20,141.58
Estimated Long Term Capital Expenditures $0.00
Estimated Annual Reserve Balanace as of June 30 $10,100.36 As a percent of Annual Operating Expenses (Goal is 50%) 50% Estimated Long Term Capital Reserve Balance as of June 30 $30,640.00 FY 2024-25 Budget
Zone 5 - Sonata (Includes Grant Street Village)
Summary of Fund Balance

CITY OF HEALDSBURG

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
2024-H-LLAD.xlsx 27 4/9/2024

6.H.b
Packet Pg. 188 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) Estimated Budget
2023-24 2024-25
Landscaping
City Staff Salaries and Benefits $2,992.41 $4,054.00
Insurance $287.00 $123.00
Contract/Professional Services $9,770.00 $9,590.00
Repairs and Maintenance $1,000.00 $1,200.00
Rentals and Leases (Previously Equipment and Supplies) $0.00 $0.00 Long Term Capital Reserve
Contribution towards Future Projects $4,000.00 $4,000.00 Current Year Projects
Zone 6 Projects $0.00 $0.00
Utility Costs
Utility Services (Includes both Water and Electric) $6,400.00 $4,000.00 County Fee $200.00 $0.00
Subtotal $24,649.41 $22,967.00
Assessment Engineering (Coastland) $1,975.62 $1,231.73
City Administration (including audit) $1,867.00 $1,537.44 Contingency $1,062.81 $1,149.37
Total Expenses $29,554.84 $26,885.54
Community Services Fund contribution for Special Benefits $9,860.00 $9,186.50 Less Contribution from Annual Reserve Funds $0.00 $0.00 Less Contribution from Long Term Capital Reserve Funds $0.00 $0.00 Total Costs $19,694.84 $17,699.04
Total Revenue $19,694.84 $17,699.04
Total Equivalent Single Family Dwelling Units (ESD) 34.00 34.00 Proposed Fiscal Year Assessment per ESD $579.26 $520.56 Maximum Annual Assessment per ESD
For Zone 6, FY 2023-24 with allowed CPI increase of 4.90% $897.16 Current Maximum Annual Assessment per ESD
For Zone 6, FY 2024-25 with allowed CPI increase of: 2.60% $920.49

CITY OF HEALDSBURG

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
FY 2024-25 Budget
Zone 6 - Sorrento Square
2024-H-LLAD.xlsx 28 4/9/2024

6.H.b
Packet Pg. 189 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 2024-25
Estimated Annual Reserve Fund as of July 1 $3,927.92
Estimated Long Term Capital Reserve Fund as of July 1 $40,471.66 Estimated Annual Revenue $13,699.04
Estimated Long Term Capital Reserve Revenue $4,000.00
Est. Community Services Fund Contribution for Special Benefits $9,186.50 Estimated Interest Earned $116.00
Total Estimated Funds Available $71,401.12
Estimated Annual Expenditures $22,885.54
Estimated Long Term Capital Expenditures $0.00
Estimated Annual Reserve Balance as of June 30 $4,043.92 As a percent of Annual Operating Expenses (Goal is 50%) 18% Estimated Long Term Capital Reserve Balance as of June 30 $44,471.66

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
FY 2024-25 Budget
Zone 6 - Sorrento Square
Summary of Fund Balance

CITY OF HEALDSBURG
2024-H-LLAD.xlsx 29 4/9/2024

6.H.b
Packet Pg. 190 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) Budget Budget
FY 2023-24 FY 2024-25
3 months 12 months
Street Lighting
Maintenance $0.00 $4,054.00
Utilities $347.33 $1,500.00
Street Light Knockdown Reserve $500.00 $2,000.00
Landscaping
City Staff Salaries and Benefits $1,647.76 $0.00
Insurance $179.50 $123.00
Contract/Professional Services $8,090.00 $33,735.00
Repairs and Maintenance $250.00 $1,700.00
Rentals and Leases (Previously Equipment and Supplies) $0.00 $0.00 Long Term Capital Reserve
Silva Cells, Raingardens, Landscaping, Street Light
Luminaire and Irrigation $22,189.88 $88,759.50
Current Year Projects
Zone 7 Projects $0.00 $0.00
Utility Costs
Utility Services (Includes both Water and Electric) $1,250.00 $5,600.00 County Fee $175.00 $0.00
Subtotal $33,782.14 $137,471.50
Assessment Engineering (Coastland) $1,088.21 $2,926.20
City Administration (including audit) $810.25 $0.00
Contingency $3,361.80 $13,538.58
Total Expenses $39,042.40 $153,936.28
Less Contribution from Annual Reserve Funds $0.00 $0.00 Less Street Light Knockdown Reserve Expense $0.00 $0.00 Less Long-Term Capital Reserve Expense $0.00 $0.00
Total Costs $39,042.40 $153,936.28
Total Revenue $39,042.40 $153,936.28
Total Estimated Parcel Acreage 7.40 7.40
Estimated Annual Assessment per Acre $5,276.00 $20,802.20 Maximum Annual Assessment per Acre
For Zone 7, FY 2023-24 with allowed CPI increase of: 4.90% $20,275.32 Current Maximum Annual Assessment per Acre
For Zone 7, FY 2024-25 with allowed CPI increase of: 2.60% $20,802.48

CITY OF HEALDSBURG

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
FY 2024-25 Budget
Zone 7 - Mill District
2024-H-LLAD.xlsx 30 4/9/2024

6.H.b
Packet Pg. 191 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 2024-25
Estimated Annual Reserve Fund as of July 1 $16,177.53
Estimated Long Term Capital Reserve Fund as of July 1 $22,189.88 Estimated Street Light Knockdown Reserve as of July 1 $500.00 Estimated Annual Revenue $63,176.78
Estimated Long Term Capital Reserve Revenue $88,759.50
Estimated Street Light Knockdown Reserve Revenue $2,000.00 Estimated Interest Earned $60.00
Total Estimated Funds Available $192,863.69
Estimated Annual Expenditures $63,176.78
Estimated Long Term Capital Reserve Expenditures $0.00
Estimated Street Light Knockdown Reserve Expenditures $0.00 Estimated Annual Reserve Balance as of June 30 $16,237.53 As a percent of Annual Operating Expenses (Goal is 50%) 26% Estimated Long Term Capital Reserve Balance as of June 30 $110,949.38 Estimated Street Light Knockdown Reserve Balance as of June 30 $2,500.00

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
FY 2024-25 Budget
Zone 7 - Mill District
Summary of Fund Balance

CITY OF HEALDSBURG
2024-H-LLAD.xlsx 31 4/9/2024

6.H.b
Packet Pg. 192 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 32 PART C
FY 2024-25 ASSESSMENT ROLL
As described in Part B, the total proposed Assessment District FY 2024-25 revenue of $410,897.89 consists of:
$114,121.60 From Zone 1
$7,706.40 From Zone 2
$87,614.55 From Zone 3
$6,793.44 From Zone 4
$23,026.58 From Zone 5
$17,699.04 From Zone 6
$153,936.28 From Zone 7
The individual assessment per parcel is listed in the Assessment Roll shown in the following pages. The lines and dimensions of each parcel are shown on the maps in the office of the County Assessor of the County of Sonoma.

6.H.b
Packet Pg. 193 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District)

CITY OF HEALDSBURG

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
ASSESSMENT ROLL - FISCAL YEAR 2024-25

SUBDIVISION APN USE CODE ESD
FACTOR
TOTAL

DWELLING
UNITS*
ESD
UNITS
PARCEL
AREA
(AC)
ZONE 1
ASSESS
ZONE 2
ASSESS
ZONE 3
ASSESS
ZONE 4
ASSES
ZONE 5
ASSES
ZONE 6
ASSES
ZONE 7
ASSES
TOTAL

ASSESS PROPERTY OWNER OWNER ADDRESS
GRANT
STREET
VILLAGE PH 1
002-101-010-000 0019 1.0 1.0 1.0 $622.34 $622.34 JUHNKE CHARLES & GUGLIELMINI JAMIE 607 LARKSPUR DR HEALDSBURG, CA 95448
002-101-011-000 0019 1.0 1.0 1.0 $622.34 $622.34 SMITH JENNIFER ET AL 611 LARKSPUR DR HEALDSBURG, CA 95448 002-101-012-000 0010 1.0 1.0 1.0 $622.34 $622.34 MULVIHILL JEFFREY & MALAKOOTY TANDIS 615 LARKSPUR AVE HEALDSBURG, CA 95448
002-101-013-000 0010 1.0 1.0 1.0 $622.34 $622.34 COHEN ALAN B & COHEN MONIQUE M TR 207 CENTER ST HEALDSBURG, CA 95448
002-101-014-000 0019 1.0 1.0 1.0 $622.34 $622.34 LEON LUIS A & LEON GRACIELA ET AL 623 LARKSPUR DR HEALDSBURG, CA 95448
002-101-015-000 0019 1.0 1.0 1.0 $622.34 $622.34 MENDEZ PEDRO GOMEZ & GOMEZ MARIA D 627 LARKSPUR DR HEALDSBURG, CA 95448
002-101-016-000 0019 1.0 1.0 1.0 $622.34 $622.34 BOLAND ALISON ET AL 631 LARKSPUR DR HEALDSBURG, CA 95448 002-101-017-000 0019 1.0 1.0 1.0 $622.34 $622.34 MUIR RYAN & MUIR MEGAN 635 LARKSPUR DR HEALDSBURG, CA 95448 002-101-018-000 0018 1.0 1.0 1.0 $622.34 $622.34 BASTAR ROBIN W & BASTAR SHIRLENE 1791 E 2100 S SALT LAKE CITY, UT 84106
002-101-019-000 0018 1.0 1.0 1.0 $622.34 $622.34 WARNER CHARLES D TR & WARNER PATRICIA H TR 547 W NORTH ST HEALDSBURG, CA 95448 002-101-020-000 0018 1.0 1.0 1.0 $622.34 $622.34 KAWASAKI MICHAEL K TR & STEWART KIERA WYN BUCKNAM 651 LARKSPUR DR HEALDSBURG, CA 95448 002-101-021-000 0018 1.0 1.0 1.0 $622.34 $622.34 GAVIGLIO MICHAEL TR & KEEFE MAUREEN R TR 655 LARKSPUR DR HEALDSBURG, CA 95448
002-101-022-000 0018 1.0 1.0 1.0 $622.34 $622.34 MARTIN DAVID O TR & MARTIN JANE F TR 659 LARKSPUR DR HEALDSBURG, CA 95448
002-101-023-000 0018 1.0 1.0 1.0 $622.34 $622.34 WEBB THOMAS W & WEBB JAN J 663 LARKSPUR DR HEALDSBURG, CA 95448 SONATA
SUBDIVISION 002-101-039-000 0010 1.0 1.0 1.0 $622.34 $622.34 MEYERS DAVID W TR & MEYERS JANE TR 462 1ST ST PETALUMA, CA 94952 002-101-040-000 0010 1.0 1.0 1.0 $622.34 $622.34 CHRISTOPHER MARY & SILVESTRO CLAUDIO 671 LARKSPUR DR HEALDSBURG, CA 95448
002-101-041-000 0010 1.0 1.0 1.0 $622.34 $622.34 GIOVANNOLI DENNIS TR & GIOVANNOLI LAURA TR 675 LARKSPUR DR HEALDSBURG, CA 95448 002-101-042-000 0010 1.0 1.0 1.0 $622.34 $622.34 WEISS ALAN D TR 679 LARKSPUR DR HEALDSBURG, CA 95448 002-101-043-000 0010 1.0 1.0 1.0 $622.34 $622.34 KELLY DOUGLAS & MOLDVAY CAITLIN AUGUST 683 LARKSPUR DR HEALDSBURG, CA 95448
002-101-044-000 0010 1.0 1.0 1.0 $622.34 $622.34 GALINDO GUSTAVO & GALINDO ERIN 687 LARKSPUR DR HEALDSBURG, CA 95448
002-101-045-000 0010 1.0 1.0 1.0 $622.34 $622.34 MILLER CLYDE D TR & MILLER SUSAN M TR 691 LARKSPUR DR HEALDSBURG, CA 95448
002-101-046-000 0010 1.0 1.0 1.0 $622.34 $622.34 STUHLMULLER JULIANN TR & FRITZ TR 695 LARKSPUR DR HEALDSBURG, CA 95448
002-101-047-000 0010 1.0 1.0 1.0 $622.34 $622.34 ADDERTON ANNE W & DOLAN PETER E 4909 LACLEDE AVE #2402 ST LOUIS, MO 63108
002-101-048-000 0010 1.0 1.0 1.0 $622.34 $622.34 STUECHER KRISTEN TR ET AL 316 CALIFORNIA AVE #73 RENO, NV 89509 002-101-049-000 0010 1.0 1.0 1.0 $622.34 $622.34 KIM DONG HWA 1916 VIA PIMPOLLO SAN CLEMENTE, CA 92673 002-101-050-000 0080 0.0 1.0 0.0 $0.00 $0.00 D R HORTON BAY INC 3000 EXECUTIVE PKWY STE 100 SAN RAMON, CA 94583
002-101-051-000 0010 1.0 1.0 1.0 $622.34 $622.34 SHREINER DAVID R TR & SHREINER VICTORIA E TR 3775 CROWN HILL SANTA ROSA, CA 95404 002-101-052-000 0010 1.0 1.0 1.0 $622.34 $622.34 BANANA TREE INVESTMENTS LLC 4460 LA PAZ LN SANTA ROSA, CA 95404 002-101-053-000 0010 1.0 1.0 1.0 $622.34 $622.34 BRINKMAN DOREEN M TR 65 MARIGOLD WAY HEALDSBURG, CA 95448 002-101-054-000 0010 1.0 1.0 1.0 $622.34 $622.34 IZERRADEN HAFID 3619 LOCKWOOD CT MONTGOMERY, AL 36111 002-101-055-000 0010 1.0 1.0 1.0 $622.34 $622.34 WILLIAMS KELLY DAVID TR & KEEHAN MARGARET G TR 45 MARIGOLD WAY HEALDSBURG, CA 95448 002-101-056-000 0010 1.0 1.0 1.0 $622.34 $622.34 DANIELS STEVEN TR & DANIELS MARJATTA TR 34 PASA ROBLES AVE LOS ALTOS, CA 94022
002-101-057-000 0010 1.0 1.0 1.0 $622.34 $622.34 SUTTON REBECCA FRANDSEN TR ET AL 108 WISTERIA CIR CLOVERDALE, CA 95425
002-101-058-000 0010 1.0 1.0 1.0 $622.34 $622.34 NG EDWARD TR ET AL 25 AMMERMAN WAY CHESTER, NJ 07930 002-101-059-000 0010 1.0 1.0 1.0 $622.34 $622.34 FOLLANSBEE MATTHEW R & FOLLANSBEE LAUREN S 723 LARKSPUR DR HEALDSBURG, CA 95448 002-101-060-000 0010 1.0 1.0 1.0 $622.34 $622.34 EGGERS BILL T & EGGERS ANN ET AL
744 W PLACITA EL CUETO GREEN VALLEY, AZ
85622
002-101-061-000 0010 1.0 1.0 1.0 $622.34 $622.34 DEVOS MAX & DEVOS KATHY 601 THIRD AVE HALF MOON BAY, CA 94019 2024-H-LLAD.xlsx 33

6.H.b
Packet Pg. 194 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District)

CITY OF HEALDSBURG

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
ASSESSMENT ROLL - FISCAL YEAR 2024-25

SUBDIVISION APN USE CODE ESD
FACTOR
TOTAL

DWELLING
UNITS*
ESD
UNITS
PARCEL
AREA
(AC)
ZONE 1
ASSESS
ZONE 2
ASSESS
ZONE 3
ASSESS
ZONE 4
ASSES
ZONE 5
ASSES
ZONE 6
ASSES
ZONE 7
ASSES
TOTAL

ASSESS PROPERTY OWNER OWNER ADDRESS
002-101-062-000 0010 1.0 1.0 1.0 $622.34 $622.34 COYNE JAMES M TR & COYNE MARY P TR 49 SANTA YNEZ CIRCLE NOVATO, CA 94947

SORRENTO
SQUARE 002-480-047-000 0019 1.0 1.0 1.0 $520.56 $520.56 CAMPOS PEDRO PINON & LOPEZ IVONNE CALLEJAS ET AL 1118 HEALDSBURG AVE HEALDSBURG, CA
95448
002-480-048-000 0010 1.0 1.0 1.0 $520.56 $520.56 RILLA JOHN L & RILLA PAMELA F 1116 HEALDSBURG AVE HEALDSBURG, CA 95448
002-480-049-000 0010 1.0 1.0 1.0 $520.56 $520.56 DENBESTE SYNICA & GREGORY

SHELBY T TR
1114 HEALDSBURG AVE HEALDSBURG, CA
95448
002-480-050-000 0010 1.0 1.0 1.0 $520.56 $520.56 GRIFFITHS EDWARD A TR & JOHNSEN PHYLLIS C TR 3820 BAGLEY AVE N SEATTLE, WA 98103 002-480-051-000 0010 1.0 1.0 1.0 $520.56 $520.56 QUEIROLO SILVIO J TR & QUEIROLO LINDA G TR PO BOX 802 HOPLAND, CA 95449
002-480-052-000 0010 1.0 1.0 1.0 $520.56 $520.56 LACY KATHERINE 1108 HEALDSBURG AVE HEALDSBURG, CA 95448
002-480-053-000 0010 1.0 1.0 1.0 $520.56 $520.56 ATKINSON TERRY L TR PO BOX 9851 RCHO SANTA FE, CA 92067 002-480-054-000 0019 1.0 1.0 1.0 $520.56 $520.56 KLEEFELD WAYNE & BEVERLY ET AL
1104 HEALDSBURG AVE HEALDSBURG, CA
95448
002-480-055-000 0010 1.0 1.0 1.0 $520.56 $520.56 DEFRIEZ HERB & DEFRIEZ SUZANNE 1254-3 CRAVENS LN CARPENTERIA, CA 93013
002-480-056-000 0010 1.0 1.0 1.0 $520.56 $520.56 WANG LAUREN ALDINE TR &

KALLINSKY LEWIS ALEXANDER
435 CHINA BASIN ST UNIT 444 SAN
FRANCISCO, CA 95448
002-480-057-000 0019 1.0 1.0 1.0 $520.56 $520.56 BASQUE JACOB & HANNAH ET AL 101 FERRERO DR HEALDSBURG, CA 95448 002-480-058-000 0010 1.0 1.0 1.0 $520.56 $520.56 FERRERO DRIVE LLC 4505 HILLSBOROUGH DR PETALUMA, CA 94954
002-480-059-000 0010 1.0 1.0 1.0 $520.56 $520.56 ROBINSON VICKI C TR 3658 DEERTRAIL DR DANVILLE, CA 94506 002-480-060-000 0010 1.0 1.0 1.0 $520.56 $520.56 STURMFELS ANDREW J TR & STURMFELS NICHOLE M TR 107 FERRERO DR HEALDSBURG, CA 95448 002-480-061-000 0010 1.0 1.0 1.0 $520.56 $520.56 LOWRY ANN N TR & PEREZ JOHN A TR PO BOX 311 BURLINGAME, CA 94011
002-480-062-000 0010 1.0 1.0 1.0 $520.56 $520.56 THOMPSON JOAN S TR 6821 JOHNSTON RD PLEASANTON, CA 94588 002-480-063-000 0010 1.0 1.0 1.0 $520.56 $520.56 DONALDSON THOMAS TR & JANET TR 104 LAVENDER CIR HEALDSBURG, CA 95448
002-480-064-000 0010 1.0 1.0 1.0 $520.56 $520.56 KOTNIK ANDREW JR TR & KOTNIK LYDIA LUCY TR 544 PORT CIR CLOVERDALE, CA 95425
002-480-065-000 0010 1.0 1.0 1.0 $520.56 $520.56 MIRAMONTES LOUIS P TR & MIRAMONTES KRISTI K TR 6621 JOHNSTON RD PLEASANTON, CA 94588 002-480-066-000 0010 1.0 1.0 1.0 $520.56 $520.56 LOWRY ANN N TR & PEREZ JOHN A TR PO BOX 311 BURLINGAME, CA 94001
002-480-067-000 0019 1.0 1.0 1.0 $520.56 $520.56 DOHERTY NICHOLAS ET AL 112 LAVENDER CIR HEALDSBURG, CA 95448 002-480-068-000 0010 1.0 1.0 1.0 $520.56 $520.56 DEMPSEY NEAL III TR & DEMPSEY

JANET RAE TR
2430 BROADWAY ST SAN FRANCISCO, CA
94115
002-480-069-000 0010 1.0 1.0 1.0 $520.56 $520.56 BOUHELAL ALI 116 LAVENDER CIR HEALDSBURG, CA 95448 002-480-070-000 0019 1.0 1.0 1.0 $520.56 $520.56 MEZA CHRISTOPHER N & JESSICA G ET AL 118 LAVENDER CIR HEALDSBURG, CA 95448
002-480-071-000 0010 1.0 1.0 1.0 $520.56 $520.56 ROCHIOLI THERESA C TR ET AL & ROCHIOLI THOMAS M TR 115 LAVENDER CIR HEALDSBURG, CA 95448 002-480-072-000 0010 1.0 1.0 1.0 $520.56 $520.56 ZEINAL FATEMEH TR 117 LAVENDER CIR HEALDSBURG, CA 95448 002-480-073-000 0010 1.0 1.0 1.0 $520.56 $520.56 ROCHIOLI THOMAS M TR & ROCHIOLI THERESA C TR ET AL 6285 WESTSIDE RD HEALDSBURG, CA 95448 002-480-074-000 0010 1.0 1.0 1.0 $520.56 $520.56 SHAPIRO IRA P TR 122 MONTE VISTA AVE HEALDSBURG, CA 95448
002-480-075-000 0010 1.0 1.0 1.0 $520.56 $520.56 BEAL GRAHAM WILLIAM JOHN TR &

ANDREWS NANCY TR
120 MONTE VISTA AVE HEALDSBURG, CA
95448
002-480-076-000 0010 1.0 1.0 1.0 $520.56 $520.56 DIRKS GLENN TR & DIRKS

PATRICIA TR
118 MONTE VISTA AVE HEALDSBURG, CA
95448
002-480-077-000 0010 1.0 1.0 1.0 $520.56 $520.56 OLOFFSON RUSSELL GLEN & DE BENEDETTO PAULA V PO BOX 27468 SCOTTSDALE, AZ 85255
002-480-078-000 0019 1.0 1.0 1.0 $520.56 $520.56 CHAVEZ JESSICA ET AL 114 MONTE VISTA AVE HEALDSBURG, CA 95448
002-480-079-000 0010 1.0 1.0 1.0 $520.56 $520.56 ATKINSON TERRY L REVOCABLE TRUST PO BOX 9851 RANCHO SANTA FE, CA 92067
002-480-080-000 0010 1.0 1.0 1.0 $520.56 $520.56 CARTER B AND BARBARA L SMITH LLC
110 MONTE VISTA AVE HEALDSBURG, CA
95448
002-480-081-000 0080 0.0 1.0 0.0 $0.00 $0.00 ELACORA MIDTOWNE LLC 371 CENTENNIAL PKWY STE 200 LOUISVILLE, CO 80027
002-480-082-000 0080 0.0 1.0 0.0 $0.00 $0.00 ELACORA MIDTOWNE LLC 371 CENTENNIAL PKWY STE 200 LOUISVILLE, CO 80027
2024-H-LLAD.xlsx 34

6.H.b
Packet Pg. 195 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District)

CITY OF HEALDSBURG

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
ASSESSMENT ROLL - FISCAL YEAR 2024-25

SUBDIVISION APN USE CODE ESD
FACTOR
TOTAL

DWELLING
UNITS*
ESD
UNITS
PARCEL
AREA
(AC)
ZONE 1
ASSESS
ZONE 2
ASSESS
ZONE 3
ASSESS
ZONE 4
ASSES
ZONE 5
ASSES
ZONE 6
ASSES
ZONE 7
ASSES
TOTAL

ASSESS PROPERTY OWNER OWNER ADDRESS
002-480-083-000 0933 0.0 1.0 0.0 $0.00 $0.00 ELACORA MIDTOWNE LLC 371 CENTENNIAL PKWY STE 200 LOUISVILLE, CO 80027
MILL DISTRICT 002-870-002-000 0101 1.40 $29,123.08 $29,123.08 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-870-003-000 0202 1.35 $28,082.97 $28,082.97 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-870-004-000 0101 0.86 $17,889.89 $17,889.89 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-870-006-000 0101 1.16 $24,130.55 $24,130.55 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-870-007-000 0101 0.48 $9,985.06 $9,985.06 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-870-008-000 0101 0.86 $17,889.89 $17,889.89 EDEN MILL DISTRICT LP 22645 GRAND ST HAYWARD, CA 94541 002-880-002-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-003-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-004-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-005-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-007-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-008-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-009-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-010-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-011-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-012-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-013-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-014-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-016-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-017-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-018-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-019-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-021-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-022-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-023-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-024-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-025-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-026-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-027-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-028-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-029-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-030-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-031-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-032-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-033-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-034-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 2024-H-LLAD.xlsx 35

6.H.b
Packet Pg. 196 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District)

CITY OF HEALDSBURG

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
ASSESSMENT ROLL - FISCAL YEAR 2024-25

SUBDIVISION APN USE CODE ESD
FACTOR
TOTAL

DWELLING
UNITS*
ESD
UNITS
PARCEL
AREA
(AC)
ZONE 1
ASSESS
ZONE 2
ASSESS
ZONE 3
ASSESS
ZONE 4
ASSES
ZONE 5
ASSES
ZONE 6
ASSES
ZONE 7
ASSES
TOTAL

ASSESS PROPERTY OWNER OWNER ADDRESS
002-880-035-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-036-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-037-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-038-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-039-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-040-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-041-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-042-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-043-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-044-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-045-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-046-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95448 002-880-047-000 0006 0.03 $624.07 $624.07 REPLAY HEALDSBURG LLC 105B PLAZA ST HEALDSBURG, CA 95449

HEALDSBURG
ESTATES 003-060-001-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 LINHARES CYNTHIA J TR & DECRISTOFORO LORA A TR 1561 PHILIP DR HEALDSBURG, CA 95448 003-060-002-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 RITCHIE DEVORAH R 1559 PHILIP DR HEALDSBURG, CA 95448 003-060-003-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 HARTSOCK LAURAE 1557 PHILIP DR HEALDSBURG, CA 95448 003-060-004-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 WESSEL DENNIS W & WESSEL

PEGGY M
24051 DRY CREEK RIDGE RD CLOVERDALE,
CA 95425
003-060-005-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 PEREZ ROGELIO & ESTELA 1553 PHILIP DR HEALDSBURG, CA 95448 003-060-006-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 WEBER SALLY A TR PO BOX 1868 HEALDSBURG, CA 95448 003-060-007-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 ROBERTSON CHERE BETH TR 437 EAST ST HEALDSBURG, CA 95448 003-060-008-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 ANDERSON ROBERT B TR & ANDERSON CRISTINA M TR 4270 CORONADO AVE SAN DIEGO, CA 92107 003-060-009-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 ROBERTS KATHLEEN COLETTE TR 108 PHILIP DR HEALDSBURG, CA 95448 003-060-010-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 CORNWELL KAREN J TR 112 PHILIP DR HEALDSBURG, CA 95448 003-060-011-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 OPHEIM ROBERT W TR & OPHEIM RENE M TR 116 PHILIP DR HEALDSBURG, CA 95448
003-060-012-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 KELLY JEFFREY C TR & WILLOUGHBY MARY K TR 1212 SUMMIT VIEW DR CONCORD, CA 94521 003-060-013-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 COOPER ANDREW & CURRY MARGARET 124 PHILIP DR HEALDSBURG, CA 95448
003-060-014-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 BURWELL BLAKE J & HEIDI ANN 1541 ROSEWOOD DR HEALDSBURG, CA 95448 003-060-015-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 DREXLER BRAD TR & DREXLER PAMELA A TR 509 GREENS DR HEALDSBURG, CA 95448
003-060-016-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 HILBORN DAY W TR & HILBORN JEAN T TR 132 PHILIP DR HEALDSBURG, CA 95448
003-060-017-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 BISHOP JACOB J & BISHOP DEBORAH D 1549 ROSEWOOD DR HEALDSBURG, CA 95448
003-060-018-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 KAMINSKI MATTHEW J 1553 ROSEWOOD DR HEALDSBURG, CA 95448 003-060-019-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 BLANCHARD JENNA 1557 ROSEWOOD DR HEALDSBURG, CA 95448 003-060-020-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 KLINE JAMES R & PATRICIA K TR 1561 ROSEWOOD DR HEALDSBURG, CA 95448 003-060-021-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 CARPENTER RUSSELL SCOTT & KUHNER JAMES LEGIER 136 PAUL WITTKE DR HEALDSBURG, CA 95448 003-060-022-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 ALLRED WAID C TR & ALLRED TANJA C TR 132 PAUL WITTKE DR HEALDSBURG, CA 95448
003-060-023-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 TAYLOR KATHLEEN C TR 128 PAUL WITTKE DR HEALDSBURG, CA 95448 003-060-024-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 CIARADLI BRYAN & FREMONT LAUREN 124 PAUL WITTKE DR HEALDSBURG, CA 95448
2024-H-LLAD.xlsx 36

6.H.b
Packet Pg. 197 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District)

CITY OF HEALDSBURG

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
ASSESSMENT ROLL - FISCAL YEAR 2024-25

SUBDIVISION APN USE CODE ESD
FACTOR
TOTAL

DWELLING
UNITS*
ESD
UNITS
PARCEL
AREA
(AC)
ZONE 1
ASSESS
ZONE 2
ASSESS
ZONE 3
ASSESS
ZONE 4
ASSES
ZONE 5
ASSES
ZONE 6
ASSES
ZONE 7
ASSES
TOTAL

ASSESS PROPERTY OWNER OWNER ADDRESS
003-060-025-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 GRACE-FECKER CATHERINE 120 PAUL WITTKE DR HEALDSBURG, CA 95448 003-060-026-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 GUERRA JOSEPH S TR & GUERRA VIRGINIA L TR 2295 S BASCOM AVE CAMPBELL, CA 95008
003-060-027-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 COCHRAN JONATHAN D TR & SCHMERSAL PATRICIA A TR 112 PAUL WITTKE DR HEALDSBURG, CA 95448 003-060-028-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 LOPEZ JOHN F 1562 PHILIP DR HEALDSBURG, CA 95448 003-060-029-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 PEARSON ELAINE M TR 1045 WESTSIDE RD HEALDSBURG, CA 95448 003-060-030-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 GROOM DARYL REX TR & GROOM LISA ANN TR 2111 MILL CREEK RD HEALDSBURG, CA 95448
003-060-031-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 BOTELLO AGUSTIN & ABELINA 1552 PHILIP DR HEALDSBURG, CA 95448 003-060-032-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 GROSS WALTER G TR 111 PHILIP DR HEALDSBURG, CA 95448 003-060-033-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 HARRINGTON JOSEPH P TR & HARRINGTON JOLINE D TR PO BOX 345 HEALDSBURG, CA 95448
003-060-034-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 ANGELL ANN KARAN & ANGELL BRADFORD WILLIAM 119 PHILIP DR HEALDSBURG, CA 95448
003-060-035-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 LUEKER SUSAN 123 PHILIP DR HEALDSBURG, CA 95448 003-060-036-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 LERCHE VIVIAN LEUNG TR 127 PHILIP DR HEALDSBURG, CA 95448 003-060-037-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 MARAVIGLIA DANIELE LUIGI TR & MCPEAKE MARGARET CAT 131 PHILIP DR HEALDSBURG, CA 95448 003-060-039-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 BAILEY DAREK THOMAS & BAILEY BRENDA CLARY 1566 ROSEWOOD DR HEALDSBURG, CA 95448
003-060-040-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 DURLER ROBERT H JR TR & DURLER PATRICIA RILEY TR 1560 ROSEWOOD DR HEALDSBURG, CA 95448 003-060-041-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 MIELOCK CHRISTINE TR PO BOX 270 HEALDSBURG, CA 95448 003-060-042-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 TEUSCHLER MARK W TR & TEUSCHLER SUZANNE M TR 225 LORRAINE CT HEALDSBURG, CA 95448 003-060-043-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 NEGUS DAVID & LE MONNIER CAROLLE PO BOX 2108 HEALDSBURG, CA 95448
003-060-044-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 DIEBOLD A JOHN TRUST 237 LORRAINE CT HEALDSBURG, CA 95448 003-060-045-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 TYLER LAURA M 243 LORRAINE CT HEALDSBURG, CA 95448 003-060-046-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 MITCHELL DAVID L TR & MARTEL JOAN H TR 249 LORRAINE CT HEALDSBURG, CA 95448
003-060-047-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 STONE GERALD L TR & STONE VICTORIA M TR 255 LORRAINE CT HEALDSBURG, CA 95448
003-060-048-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 DEVINCENTIS JOHN R & MANKIN DENNIS PO BOX 353 SOLEBURY, PA 18963
003-060-049-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 SCHROEDER RICHARD W 252 LORRAINE CT HEALDSBURG, CA 95448 003-060-050-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 SCHULZE GEORGE P TR & SCHULZE PATRICIA A TR 246 LORRAINE CT HEALDSBURG, CA 95448 003-060-051-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 FREDSON ROBERT L TR & LAURA B TR 240 LORRAINE CT HEALDSBURG, CA 95448
003-060-052-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 ECKMAN GARY A TR & ECKMAN MARY K TR 1609 ROCKVILLE RD FAIRFIELD, CA 94534
003-060-053-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 BARBERA ROBERT H & TERRI L 228 LORRAINE CT HEALDSBURG, CA 95448 003-060-054-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 DORRANCE KELLY L 222 LORRAINE CT HEALDSBURG, CA 95448 003-060-055-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 MC WILLIAMS MARK TR & MC WILLIAMS JENNIFER TR 216 LORRAINE CT HEALDSBURG, CA 95448 003-060-056-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 GALE TODD A TR & STEPHENS JASON W TR 210 LORRAINE CT HEALDSBURG, CA 95448
003-060-057-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 GABAEFF STEVEN C TR 265 CLEAR RIDGE DR HEALDSBURG, CA 95448 RIVERS

LANDING
(PM 158)
003-060-058-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 COLLIN BARBARA M TR & COLLIN BARBARA M TR 224 LEA ST WINDSOR, CA 95492
003-060-059-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 GARCIA MARCEL WAELCHLI 103 PAUL WITTKE DR HEALDSBURG, CA 95448 003-060-060-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 STROUD SEAN & STROUD ANNA 105 PAUL WITTKE DR HEALDSBURG, CA 95448 003-060-061-000 0010 1.0 1.0 1.0 $128.44 $172.30 $300.74 ENGELKE JEROLD O JR & LISA M 107 PAUL WITTKE DR HEALDSBURG, CA 95448 003-060-062-000 0000 0.0 0.0 0.0 $0.00 $0.00 $0.00 CITY OF HEALDSBURG 401 GROVE ST HEALDSBURG, CA 95448 2024-H-LLAD.xlsx 37

6.H.b
Packet Pg. 198 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District)

CITY OF HEALDSBURG

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
ASSESSMENT ROLL - FISCAL YEAR 2024-25

SUBDIVISION APN USE CODE ESD
FACTOR
TOTAL

DWELLING
UNITS*
ESD
UNITS
PARCEL
AREA
(AC)
ZONE 1
ASSESS
ZONE 2
ASSESS
ZONE 3
ASSESS
ZONE 4
ASSES
ZONE 5
ASSES
ZONE 6
ASSES
ZONE 7
ASSES
TOTAL

ASSESS PROPERTY OWNER OWNER ADDRESS

RIDGELINE

SUBDIVISION
PHASE 1
003-070-001-000 0010 1.0 1.0 1.0 $172.30 $172.30 KEYES GARY W & KEYES JOAN F 200 CLEAR RIDGE DR HEALDSBURG, CA 95448 003-070-002-000 0006 0.5 1.0 0.5 $86.15 $86.15 CAMPBELL GEORGE J III TR & MARY JANE TR 1584 ROSEWOOD DR HEALDSBURG, CA 95448
003-070-003-000 0051 1.0 1.0 1.0 $172.30 $172.30 REGAN TIMOTHY J TR & REGAN

MICHELLE M TR
1591 CLEAR RIDGE DR HEALDSBURG, CA
95448
003-070-004-000 0010 1.0 1.0 1.0 $172.30 $172.30 FROST ROBERT M TR & FROST

GLENDA E TR
1587 CLEAR RIDGE DR HEALDSBURG, CA
95448
003-070-005-000 0010 1.0 1.0 1.0 $172.30 $172.30 HAZLETT JOHN ROBERT TR & HAZLETT CAROL TR 270 CLEAR RIDGE DR HEALDSBURG, CA 95448 003-070-006-000 0010 1.0 1.0 1.0 $172.30 $172.30 DARNAUD MICHAEL J & KLEIN JODINE A 3343 JACKSON ST SAN FRANCISCO, CA 94118
003-070-007-000 0010 1.0 1.0 1.0 $172.30 $172.30 ADAMS DAYTON W JR TR & ADAMS

SHELLEY A TR
6089 N PARADISE VIEW DR PARADISE VALLEY,
AZ 85253
003-070-008-000 0006 0.5 1.0 0.5 $86.15 $86.15 MANDRIER BRANDT 27 FRONT STREET # E HEALDSBURG, CA 95448
003-070-009-000 0010 1.0 1.0 1.0 $172.30 $172.30 BIGGERS LINDA KAY TR & BIGGERS JOHN ALVIN TR 230 CLEAR RIDGE DR HEALDSBURG, CA 95448
003-070-010-000 0010 1.0 1.0 1.0 $172.30 $172.30 WHITE FREDERIC E TR & WHITE JANET A TR 70 BLACK LOG RD KENTFIELD, CA 94904
003-070-011-000 0051 1.0 1.0 1.0 $172.30 $172.30 PRCHAL MARY M TR 101 LOMBARD ST #808W SAN FRANCISCO, CA 94111
003-070-012-000 0010 1.0 1.0 1.0 $172.30 $172.30 KOCH APRIL & KOCH ROBERT 235 CLEAR RIDGE DR. HEALDSBURG, CA 95448
003-070-013-000 0010 1.0 1.0 1.0 $172.30 $172.30 MOORE FRANK S TR & MOORE PATRICIA A TR 757 ROCKDALE DR SAN FRANCISCO, CA 94127
003-070-014-000 0010 1.0 1.0 1.0 $172.30 $172.30 DENNEN MARK & DENNEN JOAN 255 CLEAR RIDGE DR HEALDSBURG, CA 95448 003-070-015-000 0010 1.0 1.0 1.0 $172.30 $172.30 GABAEFF STEVEN C TR 265 CLEAR RIDGE DR HEALDSBURG, CA 95448 003-070-016-000 0010 1.0 1.0 1.0 $172.30 $172.30 SCHMID MARY ANN & PETER TR 8210 ORCHARD DRIVE KELSEYVILLE, CA 95451

RIDGELINE

SUBDIVISION
PHASE 2
003-070-020-000 0006 0.5 1.0 0.5 $86.15 $86.15 GAMA PROPERTIES LLC 7750 MICHIGAN RD INDIANAPOLIS, IN 46268 003-070-021-000 0006 0.5 1.0 0.5 $86.15 $86.15 GAMA PROPERTIES LLC 7750 MICHIGAN RD INDIANAPOLIS, IN 46268

ROSEWOOD

HEIGHTS

SUBDIVISION
003-080-012-000 0051 1.0 1.0 1.0 $172.30 $172.30 WANG CYNTHIA 1635 ROSEWOOD DR HEALDSBURG, CA 95448 003-080-013-000 0010 1.0 1.0 1.0 $172.30 $172.30 HUGHES DONALD 360 RIVIERA DR SAN RAFAEL, CA 94901 003-080-014-000 0050 0.5 1.0 0.5 $86.15 $86.15 DAVEY BRIAN TR & DAVEY SHELLY TR 10250 W BURNTWOOD CT BOISE, ID 83704
003-080-015-000 0010 1.0 1.0 1.0 $172.30 $172.30 DESAI SUMANBEN R TR & DESAI RAMAN N TR 178 DRY CREEK RD HEALDSBURG, CA 95448
003-080-016-000 0001 0.5 1.0 0.5 $86.15 $86.15 SAYLOR BRADLEY S 3484 SPRINGHILL CT LAFAYETTE, CA 94549 003-080-017-000 0010 1.0 1.0 1.0 $172.30 $172.30 JENKINS DANNELLE D TR & JENKINS MATTHEW C TR 1615 ROSEWOOD DR HEALDSBURG, CA 95448 003-080-018-000 0010 1.0 1.0 1.0 $172.30 $172.30 RIPES DAVID A TR & RIPES WENDY S TR 1610 ROSEWOOD DR HEALDSBURG, CA 95448
003-080-019-000 0023 1.0 2.0 2.0 $344.60 $344.60 KARAM MITCHELL JAMES TR 1600 ROSEWOOD DR HEALDSBURG, CA 95448 QUARRY
RIDGE

SUBDIVSION
003-090-001-000 0018 1.0 1.0 1.0 $300.32 $172.30 $472.62 SUAZO BONIFACIO JR & CECILIA LAGUNAS DE 141 QUARRY RDG HEALDSBURG, CA 95448
003-090-002-000 0018 1.0 1.0 1.0 $300.32 $172.30 $472.62 GUTIERREZ-ORTEGA JOSE & GUTIERREZ MARIA MERCEDES 143 QUARRY RDG HEALDSBURG, CA 95448 003-090-003-000 0018 1.0 1.0 1.0 $300.32 $172.30 $472.62 AVILA ALEJANDRO PIMENTEL &

MENDEZ EVNAGELINA AVILA
147 QUARRY RIDGE CT HEALDSBURG, CA
95448
003-090-004-000 0018 1.0 1.0 1.0 $300.32 $172.30 $472.62 AVILA-AVILA SALVADOR ET AL 149 QUARRY RDG HEALDSBURG, CA 95448 003-090-005-000 0018 1.0 1.0 1.0 $300.32 $172.30 $472.62 CARRILLO REYMUNDO & ELVA 153 QUARRY RDG HEALDSBURG, CA 95448 003-090-006-000 0018 1.0 1.0 1.0 $300.32 $172.30 $472.62 AGUADO JOSE REFUGIO & AUSENCIA VEGA DE ET AL 155 QUARRY RDG HEALDSBURG, CA 95448 003-090-007-000 0018 1.0 1.0 1.0 $300.32 $172.30 $472.62 GIRON SUSANA MONTESINOS DE & CUPERTINO MARIO 159 QUARRY RDG HEALDSBURG, CA 95448
003-090-008-000 0018 1.0 1.0 1.0 $300.32 $172.30 $472.62 RODRIGUEZ SALVADOR LEDEZMA & RUIZ MARIA PO BOX 2162 HEALDSBURG, CA 95448
003-090-009-000 0018 1.0 1.0 1.0 $300.32 $172.30 $472.62 CONTRERAS BERENICE TORRES & RUIZ MARCOS 165 QUARRY RDG CT HEALDSBURG, CA 95448
2024-H-LLAD.xlsx 38

6.H.b
Packet Pg. 199 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District)

CITY OF HEALDSBURG

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
ASSESSMENT ROLL - FISCAL YEAR 2024-25

SUBDIVISION APN USE CODE ESD
FACTOR
TOTAL

DWELLING
UNITS*
ESD
UNITS
PARCEL
AREA
(AC)
ZONE 1
ASSESS
ZONE 2
ASSESS
ZONE 3
ASSESS
ZONE 4
ASSES
ZONE 5
ASSES
ZONE 6
ASSES
ZONE 7
ASSES
TOTAL

ASSESS PROPERTY OWNER OWNER ADDRESS
003-090-010-000 0018 1.0 1.0 1.0 $300.32 $172.30 $472.62 TORRES-AGUILAR JAVIER ET AL 169 QUARRY RDG HEALDSBURG, CA 95448 003-090-011-000 0018 1.0 1.0 1.0 $300.32 $172.30 $472.62 CASTILLO JESUS RAMOS & CARMEN RIVAS DE PO BOX 782 GEYSERVILLE, CA 95441
003-090-012-000 0018 1.0 1.0 1.0 $300.32 $172.30 $472.62 PANTOJA JESUS MURILLO & VICTORIA LEON DE 173 QUARRY RDG HEALDSBURG, CA 95448
003-090-013-000 0018 1.0 1.0 1.0 $300.32 $172.30 $472.62 VELAZQUEZ JUAN & ABELINA 177 QUARRY RDG HEALDSBURG, CA 95448 003-090-014-000 0018 1.0 1.0 1.0 $300.32 $172.30 $472.62 LOPEZ RAMIRO LEON & LEON GLORIA RAMIREZ 179 QUARRY RDG HEALDSBURG, CA 95448
003-090-015-000 0018 1.0 1.0 1.0 $300.32 $172.30 $472.62 PANTOJA JESUS L & ESPERANZA

LEON DE
97 KENNEDY LN SPC 47 HEALDSBURG, CA
95448
003-090-016-000 0018 1.0 1.0 1.0 $300.32 $172.30 $472.62 MITCHELL JEFFREY 185 QUARRY RIDGE CT HEALDSBURG, CA 95448
003-090-017-000 0018 1.0 1.0 1.0 $300.32 $172.30 $472.62 SANCHEZ SERGIO MAYA & DE MAYA CAROLINA AGUAYA 189 QUARRY RDG HEALDSBURG, CA 95448 003-090-018-000 0018 1.0 1.0 1.0 $300.32 $172.30 $472.62 FOX KAREN YUEN TR 12406 PLEASENT VALLEY DR DALLAS, TX 75243
003-090-019-000 0018 1.0 1.0 1.0 $300.32 $172.30 $472.62 ARREOLA VICTOR & MARIA PO BOX 702 GEYSERVILLE, CA 95441 003-090-020-000 0018 1.0 1.0 1.0 $300.32 $172.30 $472.62 KOPETSKY MICHAEL J 1531 HEALDSBURG AVE HEALDSBURG, CA 95448
003-090-021-000 0046 1.0 51.0 51.0 $15,316.32 $8,787.30 $24,103.62 MONTE VINA L P 1425 CORPORATE CENTER PKWY SANTA ROSA, CA 95407

PARKLAND
FARMS

SUBDIVISON
PHASE 1
003-100-001-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 HOLMEFJORD LISBETH 120 PARKWOODS CT HEALDSBURG, CA 95448 003-100-002-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 BYRNE KATHLEEN JOHNSON & MISKO TIMOTHY ALAN 114 PARKWOODS CT HEALDSBURG, CA 95448 003-100-003-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 SARQUIS ROBERT H TR & SARQUIS SHARYN L TR 110 PARKWOODS CT HEALDSBURG, CA 95448
003-100-004-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 NORMAN RICHARD M TR & NORMAN BARBARA J TR 106 PARKWOODS CT HEALDSBURG, CA 95448 003-100-005-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 BRENTON JAMES F TR & BRENTON CYNTHIA L TR 102 PARKWOODS CT HEALDSBURG, CA 95448
003-100-006-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 WHITEMORE THOMAS BORDEN TR & WHITEMORE CONNI LYNN 101 PARKWOODS CT HEALDSBURG, CA 95448 003-100-007-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 BUTLER MARIE J TR 107 PARKWOODS CT HEALDSBURG, CA 95448 003-100-008-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 WILLIAMS DANIELLE & LAIRD JACOB H 113 PARKWOODS CT HEALDSBURG, CA 95448
003-100-009-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 RAMAZZOTTI ADRIAN B & RAMAZZOTTI SHELLIE A 115 PARKWOODS CT HEALDSBURG, CA 95448 003-100-010-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 LUSHER JESSICA MARIE & LUSHER

CORY MICHAEL
104 VILLAGE OAKS CT HEALDSBURG, CA
95448
003-100-011-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 POWELL STEVE M TR & POWELL

LYNN M MC CAFFREY TR
110 VILLAGE OAKS CT HEALDSBURG, CA
95448
003-100-012-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 MCKINNEY NANCY LUBICH TR & MCKINNEY GREGORY WILLIA 371 HEARST AVE SAN FRANCISCO, CA 94112 003-100-013-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 FILBEN JOHN M TR & MAZZONI LISA M TR
122 VILLAGE OAKS CT HEALDSBURG, CA
95448
003-100-014-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 BOYD JOSEPH E & JOANNE F TR PO BOX 6861 SANTA ROSA, CA 95406 003-100-015-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 STAUFFER RALPH E TR &

KATHLEEN Y TR
143 VILLAGE OAKS CT HEALDSBURG, CA
95448
003-100-016-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 CONTRERAS ROBERT &

CONTRERAS JODI
137 VILLAGE OAKS CT HEALDSBURG, CA
95448
003-100-017-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 GARRETT PAUL D TR & CABRAL

THERESA L TR
131 VILLAGE OAKS CT HEALDSBURG, CA
95448
003-100-018-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 OGDEN GERALD R & ALISON L TR 125 VILLAGE OAKS CT HEALDSBURG, CA 95448
003-100-019-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 PONITKOFF VADIM V & TATIANA P TR
119 VILLAGE OAKS CT HEALDSBURG, CA
95448
003-100-020-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 DELFINO DIANNE MARIE TR 113 VILLAGE OAKS CT HEALDSBURG, CA 95448
003-100-021-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 MUELLER MARVIN J TR & MUELLER

WANDA TR
107 VILLAGE OAKS CT HEALDSBURG, CA
95448
003-100-022-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 FEUERSTEIN CAROL TR 213 CHIQUITA RD HEALDSBURG, CA 95448 003-100-023-000 0080 0.0 0.0 0.0 $0.00 $0.00 $0.00 CITY OF HEALDSBURG 401 GROVE ST HEALDSBURG, CA 95448

PARKLAND
FARMS

SUBDIVISON
PHASE 7 & 8
003-110-001-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 BOREL SYLVAIN A TR & LORRAINE D TR 175 APPALOOSA TRL HEALDSBURG, CA 95448
2024-H-LLAD.xlsx 39

6.H.b
Packet Pg. 200 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District)

CITY OF HEALDSBURG

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
ASSESSMENT ROLL - FISCAL YEAR 2024-25

SUBDIVISION APN USE CODE ESD
FACTOR
TOTAL

DWELLING
UNITS*
ESD
UNITS
PARCEL
AREA
(AC)
ZONE 1
ASSESS
ZONE 2
ASSESS
ZONE 3
ASSESS
ZONE 4
ASSES
ZONE 5
ASSES
ZONE 6
ASSES
ZONE 7
ASSES
TOTAL

ASSESS PROPERTY OWNER OWNER ADDRESS
003-110-002-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62

MCGARRAUGH GEOFFREY

VINCENT TR & MCGARRAUGH
HOLLY
150 WILD HORSE CT HEALDSBURG, CA 95448
003-110-003-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 NARDI THOMAS J TR & NARDI SOUNDRA S TR 140 WILD HORSE CT HEALDSBURG, CA 95448
003-110-004-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 GOULD ROBERT G & GRADY GIGI M 130 WILD HORSE CT HEALDSBURG, CA 95448 003-110-005-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 CHIMINELLO PHILIP D & CHIMINELLO CATHERINE K 120 WILD HORSE CR HEALDSBURG, CA 95448 003-110-006-000 0001 0.0 1.0 0.0 $0.00 $0.00 $0.00 CITY OF HEALDSBURG 401 GROVE ST HEALDSBURG, CA 95448 003-110-007-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 FRASER ROBERT P & FRASER CHRISTINE E 115 WILD HORSE CT HEALDSBURG, CA 95448
003-110-008-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 VAN EVEREN DAVID & VAN EVEREN SHERRI ALEXANDER 823 PAULSON CIR MENLO PARK, CA 94025 003-110-009-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 LOUPY THOMAS R & LUCY A 135 WILD HORSE CT HEALDSBURG, CA 95448 003-110-010-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 KUPERS JEFFREY B & KOHLER KAY E
PO BOX 666 HEALDSBURG, CA 95448
003-110-011-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 WILSON CATHY J TR 235 APPALOOSA TRL HEALDSBURG, CA 95448 003-110-012-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 FRANKLIN SUZANNE T TR 265 APPALOOSA TRL HEALDSBURG, CA 95448 003-110-013-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 DUFFY MICHAEL J & DUFFY NICOL L 275 APPALOOSA TRL HEALDSBURG, CA 95448 003-110-014-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 CAMPBELL CHRISTINE BELLA TR & CAMPBELL WILLIAM DOU 1723 CANYON RUN HEALDSBURG, CA 95448 003-110-015-000 0022 1.0 2.0 2.0 $600.64 $344.60 $945.24 VOGENSEN SHARON K TR ET AL 1725A CANYON RUN HEALDSBURG, CA 95448 003-110-016-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 STALLARD BARRY W TR & STALLARD KAYE B TR 280 APPALOOSA TRL HEALDSBURG, CA 95448 003-110-017-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 STEWART DONNA M TR 290 APPALOOSA TRL HEALDSBURG, CA 95448 003-110-018-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 FRECHETTE PAUL W TR & FRECHETTE CHERYL A TR 270 APPALOOSA TRL HEALDSBURG, CA 95448 003-110-019-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 DEUTSCH L PETER TR PO BOX 1998 HEALDSBURG, CA 95448 003-110-022-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 SMITH SHARON K & WARE HILARY E TR
1879 FUNSTON AVE SAN FRANCISCO, CA
94116
003-110-023-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 HOPKINS DONALD GREGORY TR &

HOPKINS CATHY TR
210 MORGAN RIDGE CT HEALDSBURG, CA
95448
003-110-024-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 BEVERIDGE CRAWFORD W TR &

DEVOE MARGUERITE TR
220 MORGAN RIDGE CT HEALDSBURG, CA
95448
003-110-025-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 WESTFALL JAMES S TR 230 MORGAN RIDGE CT HEALDSBURG, CA 95448
003-110-026-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 MERCER MICHAEL 415 HIGH POINTE TRAIL ROSWELL, GA 30076 003-110-027-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 FLORES HENRY CUEVAS TR &

FLORES COLLEEN TR
240 MORGAN RIDGE CT HEALDSBURG, CA
95448

PARKLAND
FARMS

SUBDIVISON
PHASE 9
003-120-001-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 ODATO DAVID TR 190 SPUR RIDGE CT HEALDSBURG, CA 95448 003-120-004-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 LIPPS ROBERT T TR & LIPPS SUSAN F TR 160 SPUR RIDGE CT HEALDSBURG, CA 95448
003-120-005-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 DEMAREST JOHN H TR & DEMAREST LISA E TR 150 SPUR RIDGE CT HEALDSBURG, CA 95448 003-120-006-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 WILKIE LINDA C & WILKIE ROBERT J
155 SPUR RIDGE CT HEALDSBURG, CA 95448
003-120-007-000 0051 1.0 1.0 1.0 $300.32 $172.30 $472.62 MALPASS HERBERT H III TR & MALPASS JOIE L TR 165 SPUR RIDGE CT HEALDSBURG, CA 95448 003-120-008-000 0000 0.5 1.0 0.5 $150.16 $86.15 $236.31 JORDAN LOUIS & JORDAN LYNDA LL 1083 VINE ST # 291 HEALDSBURG, CA 95448
003-120-009-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 JORDAN LOUIS G PMB 291 /1083 VINE ST HEALDSBURG, CA 95448
003-120-010-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 BORGES JANE TR & BORGES TIMOTHY TR 195 SPUR RIDGE CT HEALDSBURG, CA 95448
003-120-011-000 0930 0.0 0.0 0.0 $0.00 $0.00 $0.00 CITY OF HEALDSBURG 401 GROVE ST HEALDSBURG, CA 95448 003-120-012-000 0000 1.0 1.0 1.0 $300.32 $172.30 $472.62 OLSEN ERIK B TR & DEBORAH H TR 170 SPUR RIDGE CT HEALDSBURG, CA 95448 003-120-013-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 SCHOCK CHRISTIAN TR 180 SPUR RIDGE CT HEALDSBURG, CA 95448 2024-H-LLAD.xlsx 40

6.H.b
Packet Pg. 201 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District)

CITY OF HEALDSBURG

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
ASSESSMENT ROLL - FISCAL YEAR 2024-25

SUBDIVISION APN USE CODE ESD
FACTOR
TOTAL

DWELLING
UNITS*
ESD
UNITS
PARCEL
AREA
(AC)
ZONE 1
ASSESS
ZONE 2
ASSESS
ZONE 3
ASSESS
ZONE 4
ASSES
ZONE 5
ASSES
ZONE 6
ASSES
ZONE 7
ASSES
TOTAL

ASSESS PROPERTY OWNER OWNER ADDRESS

PARKLAND
FARMS

SUBDIVISON
PHASE 2
003-130-001-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 ROUSCHE PATRICK 1713 CANYON RUN HEALDSBURG, CA 95448 003-130-002-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 AZEVEDO GRANT I TR & AZEVEDO KELLYANN TR 1715 CANYON RUN HEALDSBURG, CA 95448
003-130-003-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 LOPEZ ROBERT J PO BOX 361 GEYSERVILLE, CA 95441 003-130-004-000 0023 1.0 2.0 2.0 $600.64 $344.60 $945.24 WEBER SALLY A PO BOX 1868 HEALDSBURG, CA 95448 003-130-005-000 0023 1.0 2.0 2.0 $600.64 $344.60 $945.24 WEBER SALLY A PO BOX 1868 HEALDSBURG, CA 95448 003-130-006-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 MURPHY KATHLEEN PATRICIA 1729 CANYON RUN HEALDSBURG, CA 95448 003-130-007-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 UCHIDA CALIN 1731 CANYON RUN HEALDSBURG, CA 95448 003-130-008-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 FOSTER CRAIG B & FOSTER ANN 1733 CANYON RUN HEALDSBURG, CA 95448 003-130-009-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 CULLINEN ROBERT E TR & SMITH TOMI 3750 PAXTON PL SANTA ROSA, CA 95404
003-130-010-000 0023 1.0 2.0 2.0 $600.64 $344.60 $945.24 GONZALEZ JORGE & MARY 4368 HERITAGE LN ROHNERT PARK, CA 94928 003-130-011-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 CAVIGLIA MATT TR & CAVIGLIA CHERYL TR 217 SPUR RIDGE LN HEALDSBURG, CA 95448
003-130-012-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 GLADDEN MARK L TR PO BOX 455 HEALDSBURG, CA 95448 003-130-013-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 LOW MAY TR 418 POPPY HILL DR HEALDSBURG, CA 95448 003-130-014-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 HEYFRON MICHAEL B & HEYFRON JESSICA C 1732 CANYON RUN HEALDSBURG, CA 95448
003-130-015-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 KRAEGER BRENDA B TR 158 ESPANA WAY WINDSOR, CA 95492 003-130-016-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 RODRIGUEZ-CEPEDA ENRIQUE TR 1728 CANYON RUN HEALDSBURG, CA 95448 003-130-017-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 SMART DANIELLE M & SMART WILLIAM V 1726 CANYON RUN HEALDSBURG, CA 95448
003-130-018-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 KESTER MELISSA 1724 CANYON RUN HEALDSBURG, CA 95448 003-130-019-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 CATENACCI MADALINE M TR 2187 WARWICK DR SANTA ROSA, CA 95405 003-130-020-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 BARRAGAN MARISELA & CALDERON SAMUEL 1720 CANYON RUN HEALDSBURG, CA 95448
003-130-021-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 GIORGI RICHARD A TR & GIORGI DOROTHY L TR 1718 CANYON RUN HEALDSBURG, CA 95448
003-130-022-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 MILLER JUSTIN B TR & MILLER KARIN S WERNELIUS TR PO BOX 63 GEYSERVILLE, CA 95441
003-130-023-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 KERN ROBERT M TR ET AL 1220 DAVIDA CT WINDSOR, CA 95492 003-130-024-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 KRON ROBERT ET AL 1712 CANYON RUN HEALDSBURG, CA 95448 003-130-025-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 DINKEL DAVID A & DINKEL ALEJANDRINA 1713 SPUR RIDGE LN HEALDSBURG, CA 95448
003-130-026-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 DUGAN LINDA L 1715 SPUR RIDGE LN HEALDSBURG, CA 95448 003-130-027-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 ROBINSON E CHARLOTTE TR 1717 SPUR RIDGE LN HEALDSBURG, CA 95448 003-130-028-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 ASHFORD STEVEN & ASHFORD JESSICA 121 DARRINGTON DR FOLSOM, CA 95630
003-130-029-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 KENNEDY LISAMARIE TR 1721 SPUR RIDGE LN HEALDSBURG, CA 95448 003-130-030-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 HARTMANN DAN P TR & WELLER

OLGA JULIA TR
1723 SPUR RIDGE LANE HEALDSBURG, CA
95448
003-130-031-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 CANELIS STEVE 1725 SPUR RIDGE RD HEALDSBURG, CA 95448 003-130-032-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 PENA MIGUEL A & PENA MARISELA 1727 SPUR RIDGE LN HEALDSBURG, CA 95448 003-130-033-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 STEINBACH SAN SAN 9223 VINECREST RD WINDSOR, CA 95492 003-130-034-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 CARY LAWRENCE E TR ET AL 1731 SPUR RIDGE LN HEALDSBURG, CA 95445 003-130-035-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 DELQUERRA MATTHEW J 1733 SPUR RIDGE LN HEALDSBURG, CA 95448 003-130-036-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 SMITH DORI A TR & NEGRINO THOMAS J TR 1083 VINE ST #228 HEALDSBURG, CA 95448
2024-H-LLAD.xlsx 41

6.H.b
Packet Pg. 202 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District)

CITY OF HEALDSBURG

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
ASSESSMENT ROLL - FISCAL YEAR 2024-25

SUBDIVISION APN USE CODE ESD
FACTOR
TOTAL

DWELLING
UNITS*
ESD
UNITS
PARCEL
AREA
(AC)
ZONE 1
ASSESS
ZONE 2
ASSESS
ZONE 3
ASSESS
ZONE 4
ASSES
ZONE 5
ASSES
ZONE 6
ASSES
ZONE 7
ASSES
TOTAL

ASSESS PROPERTY OWNER OWNER ADDRESS
003-130-038-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 MARQUIS SAMANTHA & MARQUIS IAN 1732 SPUR RIDGE LN HEALDSBURG, CA 95448
003-130-039-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 MEYER CHRISTOPHER & MEYER GRETCHEN 1730 SPUR RIDGE LN HEALDSBURG, CA 95448
003-130-040-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 NELSON STEVEN & NELSON JENNIFER 1728 SPUR RIDGE LN HEALDSBURG, CA 95448
003-130-041-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 ANDERSON BRIDGET G & ANDERSON TIMOTHY K 1726 SPUR RIDGE LN HEALDSBURG, CA 95448 003-130-042-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 HEATH GEORGE R & PAM J 1724 SPUR RIDGE LN HEALDSBURG, CA 95448 003-130-043-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 BRIAN AND CATHY WILSON LLC 235 APPALOOSA TRL HEALDSBURG, CA 95448 003-130-044-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 GLADDEN MARK L TR 1201 VINE ST STE 200 HEALDSBURG, CA 95448 003-130-045-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 CHAPMAN GALAND B JR & CHAPMAN JOANNE G 1718 SPUR RIDGE LN HEALDSBURG, CA 95448 003-130-046-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 MELTZER JOSHUA & STOCKDALE SHANNON 2440 HILLSIDE AVE BERKELEY, CA 94704
003-130-047-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 KUFUDAKES DANIEL A & RONDA LYN 1734 SPUR RIDGE LN HEALDSBURG, CA 95448
003-140-001-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 HYDEN TIMOTHY M 18 CROW CANYON CT STE 380 SAN RAMON, CA 94583
003-140-002-000 0023 1.0 2.0 2.0 $600.64 $344.60 $945.24 TAPPIN NATALEE PO BOX 1995 HEALDSBURG, CA 95448 003-140-003-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 SINDLE RACHELLE L 1706 CANYON RUN HEALDSBURG, CA 95448 003-140-004-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 GOOD SHEPHERD LUTHERAN CHURCH OF HEALDSBURG 1402 UNIVERSITY ST HEALDSBURG, CA 95448 003-140-005-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 WU I CHIEN TR 1702 CANYON RUN HEALDSBURG, CA 95448 003-140-006-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 NELSON ERNEST & NELSON JANET 47 N SWANWICK PL TOMBALL, TX 77375 003-140-007-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 MAURO-MANOS AMY J TR 1701 SPUR RIDGE LN HEALDSBURG, CA 95448 003-140-008-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 HART TALLIA 1703 SPUR RIDGE LN HEALDSBURG, CA 95448 003-140-009-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 WILSON DOUGLAS C TR & WILSON MARIA GRACE TR 626 BROWN ST HEALDSBURG, CA 95448
003-140-010-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 OSEGUERA MARIO ARMANDO 1707 SPUR RIDGE LN HEALDSBURG, CA 95448 003-140-011-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 BLANCHARD MATTHEW TR & BLANCHARD KELLY TR 962 PINOT NOIR WAY WINDSOR, CA 95492 003-140-012-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 HOUSE PROPERTIES 77 II LP 35 CORTE MADERA AVE MILL VALLEY, CA 94941
003-140-013-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 CHUNG EDWARD S 1710 SPUR RIDGE LN HEALDSBURG, CA 95448 003-140-014-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 FAIRCHILD SALLIE P TR 2077 CENTRO EAST ST TIBURON, CA 94920 003-140-015-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 MACIAS TRINIDAD & LOURDES 1706 SPUR RIDGE LN HEALDSBURG, CA 95448 003-140-016-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 MANA MITCHELL 1704 SPUR RIDGE LN HEALDSBURG, CA 95448 003-140-017-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 ALCALA JOSE J & ALCALA MARGARITA M 1702 SPUR RIDGE LN HEALDSBURG, CA 95448
003-140-018-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 FLORES FRANCISCO ROMERO & ROMO-FLORES ARACELY TR 1700 SPUR RIDGE LN HEALDSBURG, CA 95448 003-140-019-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 ANDERSON PAUL A TR 511 TURNEY ST SAUSALITO, CA 94965 003-140-020-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 GIDDINGS MALIN TR 1170 SACRAMENTO ST #15A SAN FRANCISCO, CA 94108
003-140-021-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 RICHARDS REBECCA & RICHARD Q IV 1686 ARBOR WAY HEALDSBURG, CA 95448
003-140-022-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 IUS TINA ET AL 1687 ARBOR WAY HEALDSBURG, CA 95448 003-140-023-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 GRAF GARY W TR & GRAF JANICE P TR 4825 KIMBERLY WAY DOYLESTOWN, PA 18902
003-140-024-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 SCHRADER WILLIAM R TR ET AL 403 POPPY HILL DR HEALDSBURG, CA 95448 003-140-025-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 DEGONZALEZ OLIVIA & GONZALEZ DIANA 1690 CANYON RUN HEALDSBURG, CA 95448
003-140-026-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 BEALS HAROLD L III 208 CONCORD DR MENLO PARK, CA 94025 003-140-027-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 GANCIA CAROL S 555 FULTON ST UNIT 334 SAN FRANCISCO, CA 94102
2024-H-LLAD.xlsx 42

6.H.b
Packet Pg. 203 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District)

CITY OF HEALDSBURG

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
ASSESSMENT ROLL - FISCAL YEAR 2024-25

SUBDIVISION APN USE CODE ESD
FACTOR
TOTAL

DWELLING
UNITS*
ESD
UNITS
PARCEL
AREA
(AC)
ZONE 1
ASSESS
ZONE 2
ASSESS
ZONE 3
ASSESS
ZONE 4
ASSES
ZONE 5
ASSES
ZONE 6
ASSES
ZONE 7
ASSES
TOTAL

ASSESS PROPERTY OWNER OWNER ADDRESS
003-140-028-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 GAITAN ALICIA P & LYETH RYAN LONGYEAR TR 1684 CANYON RUN HEALDSBURG, CA 95448
003-140-029-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 GRANDE STEVEN L & DANA J 1682 CANYON RUN HEALDSBURG, CA 95448 003-140-030-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 PRICER LOWELL KENT 1680 CANYON RUN HEALDSBURG, CA 95448 003-140-031-000 0023 1.0 2.0 2.0 $600.64 $344.60 $945.24 MIKSIS BARBARA L TR & MIKSIS GARY F TR PO BOX 591-I HEALDSBURG, CA 95448
003-140-032-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 LEGRAND RACHEL TR 1676 CANYON RUN HEALDSBURG, CA 95448 003-140-033-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 KAISER JON D TR 1674 CANYON RUN HEALDSBURG, CA 95448 003-140-034-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 LAROSSA SUSAN G & BICKFORD PATRICK G 1672 CANYON RUN HEALDSBURG, CA 95448
003-140-035-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 RUIZ JOSE L ET AL 1670 CANYON RUN HEALDSBURG, CA 95448 003-140-036-000 0930 0.0 0.0 0.0 $0.00 $0.00 $0.00 CITY OF HEALDSBURG 401 GROVE ST HEALDSBURG, CA 95448

PARKLAND
FARMS

SUBDIVISION
PHASE 3
003-150-001-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 ANDERSON AMY ELIZABETH TR &

ANDERSON BRYAN MICHAEL
314 EQUESTRIAN GAP HEALDSBURG, CA
95448
003-150-002-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 THOMPSON KIM R TR 10 OAK KNOLL DR HEALDSBURG, CA 95448 003-150-003-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 NOBLES VICTORIA A TR 318 EQUESTRIAN GAP HEALDSBURG, CA 95448
003-150-004-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 STEWART ELLEN H & DARREL J 322 EQUESTRIAN GAP HEALDSBURG, CA 95448
003-150-005-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 KOHLI SUMIT & KOHLI PARUL T 1083 VINE ST STE 418 HEALDSBURG, CA 95448 003-150-006-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 GLADDEN MARK L TR 1201 VINE ST STE 200 HEALDSBURG, CA 95448 003-150-007-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 ZERMENO MARTHA IVONNE 321 EQUESTRIAN GAP HEALDSBURG, CA 95448
003-150-008-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 GONZALEZ DAVID E TR &

GONZALEZ VICTORIA E TR
317 EQUESTRIAN GAP HEALDSBURG, CA
95448
003-150-009-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 WELT ELLEN SUZANNE TR 458 HEATHCLIFF PL SAN JOSE, CA 95111 003-150-010-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 BIZIEFF GORDON M TR & BIZIEFF VICTORIA L TR 21 BROADVIEW TER ORINDA, CA 94563
003-150-011-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 ZHANG ZHAN TR & YANG LINDA TR 3127 VIA SERENA UNIT P LAGUNA WOODS, CA 92637
003-150-012-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 HIRSCHMANN SANDRA J TR ET AL 1275 BLACK MOUNTAIN RD HILLSBOROUGH, CA 94010
003-150-013-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 MARTIN LUCINDA TR 617 SANNS LN HEALDSBURG, CA 95448 003-150-014-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 NEAL THEODORE M & NEAL KIMBERLY 316 BRIDLE PATH HEALDSBURG, CA 95448
003-150-015-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 AULD RICHARD M JR TR & AULD MARION M TR 320 BRIDLE PATH HEALDSBURG, CA 95448
003-150-016-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 VIRAMONTES ANTONIO CORTES & MARIA REYNA 324 BRIDLE PATH HEALDSBURG, CA 95448
003-150-017-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 PERRILL NOVA S & PERRILL CHRISTIN J 328 BRIDLE PATH HEALDSBURG, CA 95448
003-150-018-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 GLADDEN MARK L TR & GLADDEN KATHLEEN M TR 1648 ROSEWOOD DR HEALDSBURG, CA 95448
003-150-019-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 HALVORSEN RICHARD J TR & HALVORSEN ELENA M TR 1713 SADDLE DRAW HEALDSBURG, CA 95448 003-150-020-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 VILLANO MATTHEW J TR 1711 SADDLE DRAW HEALDSBURG, CA 95448 003-150-021-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 CHAVEZ CARLOS E & MAYBERRYCHAVEZ LINDA 1709 SADDLE DRAW HEALDSBURG, CA 95448 003-150-022-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 DELOS ANDREW TR 1707 SADDLE DRAW HEALDSBURG, CA 95448 003-150-023-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 HENDRICKSON MERLIN ALEXANDER II ET AL 1705 SADDLE DRAW HEALDSBURG, CA 95448 003-150-024-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 GRASSI RONALD TR & GRASSI SALLY TR 1703 SADDLE DRAW HEALDSBURG, CA 95448
003-150-025-000 0023 1.0 2.0 2.0 $600.64 $344.60 $945.24 SEGHESIO DONNA J 542 SUNNYVALE DR HEALDSBURG, CA 95448 003-150-026-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 MESZKAT JAMIE DAWN TR &

STARNES VERNON DEWAYNE TR
351 PARKLAND FARMS BLVD HEALDSBURG,
CA 95448
003-150-027-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 LABREE BETH 1702 SADDLE DRAW HEALDSBURG, CA 95448 2024-H-LLAD.xlsx 43

6.H.b
Packet Pg. 204 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District)

CITY OF HEALDSBURG

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
ASSESSMENT ROLL - FISCAL YEAR 2024-25

SUBDIVISION APN USE CODE ESD
FACTOR
TOTAL

DWELLING
UNITS*
ESD
UNITS
PARCEL
AREA
(AC)
ZONE 1
ASSESS
ZONE 2
ASSESS
ZONE 3
ASSESS
ZONE 4
ASSES
ZONE 5
ASSES
ZONE 6
ASSES
ZONE 7
ASSES
TOTAL

ASSESS PROPERTY OWNER OWNER ADDRESS
003-150-028-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 CEJA SANDRA RODRIGUEZ & CEJA ALFONSO 1704 SADDLE DRAW HEALDSBURG, CA 95448
003-150-029-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 CONLAN TYE MITCHELL TR PO BOX 1696 CASTROVILLE, CA 95012 003-150-030-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 RYAN RICHARD D TR & RYAN CAROL A TR 501 GREENS DR HEALDSBURG, CA 95448
003-150-031-000 0023 1.0 2.0 2.0 $600.64 $344.60 $945.24 ROVCO INDUSTRIES TRUST ET AL PO BOX 2273 SOUTH SAN FRANCISCO, CA 94083
003-150-032-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 HAGELE DAVID TR & HAGELE LAURIE TR 1712 SADDLE DRAW HEALDSBURG, CA 95448
003-150-033-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 PRENDIVILLE STEPHEN 1720 SADDLE DRAW HEALDSBURG, CA 95448 003-150-034-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 CHAVEZ WILLIAM PO BOX 718 WINDSOR, CA 95492

PARKLAND
FARMS

SUBDIVISION
PHASE 4
003-150-035-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 EDWARDS KRISTA & POWELL JASMIN JOY 1701 LATIGO LN HEALDSBURG, CA 95448
003-150-036-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 BELL CHARLES E 1703 LATIGO LN HEALDSBURG, CA 95448 003-150-037-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 MUYSKENS LINDA D 2207 COLUMBIA ST HUSTON, TX 77008 003-150-038-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 BRUINGTON VERA & BRUINGTON EUGENE 917 BIRKDALE CT WINDSOR, CA 95492
003-150-039-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 ERTEL FRANCIS D TR & ERTEL KAREN R TR 1709 LATIGO LN HEALDSBURG, CA 95448
003-150-040-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 TREMONT MICHAEL TR & TREMONT JENNIFER M TR PO BOX 1162 HEALDSBURG, CA 95448
003-150-041-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 FOX JEANNE MARIE TR 17027 NE 160TH PL WOODINVILLE, WA 98072 003-150-042-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 REED DAVID W TR & CHATTAN ONDINE M TR 903 TURNBERRY CT WINDSOR, CA 95492
003-150-043-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 WIDICK SHAWN M & DENISE M 355 BRIDLE PATH HEALDSBURG, CA 95448 003-150-044-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 HATHAWAY CAROL ANN TR 357 BRIDLE PATH HEALDSBURG, CA 95448 003-150-045-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 KAMINSKI DOUGLAS J 361 BRIDLE PATH HEALDSBURG, CA 95448 003-150-046-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 SCHUELER TODD R & SCHUELER ROSAELIA MEZA 125 COUNCIL GAP CT CARY, NC 27513
003-150-047-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 GATTUSO PHILLIP J TR & GATTUSO GINA L TR 365 BRIDLE PATH HEALDSBURG, CA 95448
003-150-048-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 DEVITT THOMAS P & VERONICA C TR 1714 LATIGO LN HEALDSBURG, CA 95448
003-150-049-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 EICHINGER GREGORY H & LARSON ATHINA C 1721 DELAWARE ST BERKELEY, CA 94703
003-150-050-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 GORDY TIMOTHY M & GUNES OLMEZ 1710 LATIGO LN HEALDSBURG, CA 95448
003-150-051-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 GOODWIN VALERIE 1708 LATIGO LN HEALDSBURG, CA 95448 003-150-052-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 ZIEGLER BARON V 1706 LATIGO LN HEALDSBURG, CA 95448 003-150-053-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 DELFINO MICHELE JANINE TR 1704 LATIGO LN HEALDSBURG, CA 95448 003-150-054-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 GIACOMELLI JESSE & GIACOMELLI JENNA 1702 LATIGO LN HEALDSBURG, CA 95448
003-150-055-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 REED DAVID S 1700 LATIGO LN HEALDSBURG, CA 95448 003-150-056-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 FLETCHER ABBY L & FLETCHER JAMES D PO BOX 1471 HEALDSBURG, CA 95448
003-150-057-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 RAMIREZ JAVIER & HERNANDEZ

ISABELLE M
367 PARKLAND FARMS BLVD HEALDSBURG,
CA 95448
003-150-058-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 NOESEKABEL TOBIAS &

NOESEKABEL ALLISON ELIZABETH
369 PARKLAND FARMS BLVD HEALDSBURG,
CA 95448
003-150-059-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 FALBERG JAMES C & HANNAH 371 PARKLAND FARMS BLVD HEALDSBURG, CA 95448
003-150-060-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 ANDALIS ALEX & ANDALIS JAMIE 373 PARKLAND FARMS BLVD HEALDSBURG, CA 95448
003-150-061-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 VANNOY JAMES MARTIN TR & VANNOY ANN LOUISE TR 539 TUCKER ST HEALDSBURG, CA 95448 003-150-062-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 GARVIN KEVIN J & SANDRA S 377 PARKLAND FARMS BLVD HEALDSBURG, CA 95448
2024-H-LLAD.xlsx 44

6.H.b
Packet Pg. 205 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District)

CITY OF HEALDSBURG

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
ASSESSMENT ROLL - FISCAL YEAR 2024-25

SUBDIVISION APN USE CODE ESD
FACTOR
TOTAL

DWELLING
UNITS*
ESD
UNITS
PARCEL
AREA
(AC)
ZONE 1
ASSESS
ZONE 2
ASSESS
ZONE 3
ASSESS
ZONE 4
ASSES
ZONE 5
ASSES
ZONE 6
ASSES
ZONE 7
ASSES
TOTAL

ASSESS PROPERTY OWNER OWNER ADDRESS

PARKLAND
FARMS

SUBDIVISION
PHASE 10A
003-150-063-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 HODGES RONALD E TR & HODGES SHARON J TR 367 BRIDLE PATH HEALDSBURG, CA 95448
003-150-064-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 VIDAURRI DAVID M TR & MARQUEZ MARGARET L TR 371 BRIDLE PATH HEALDSBURG, CA 95448
003-150-065-000 0051 1.0 1.0 1.0 $300.32 $172.30 $472.62 GONZALEZ GABRIEL & YU CAROLINE WEI-TYNG 377 BRIDLE PATH HEALDSBURG, CA 95448
003-150-066-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 SLAIKEU PAUL ET AL 384 BRIDLE PATH HEALDSBURG, CA 95448 003-150-067-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 SROAT HASIA & JACONETTI JAMES P
378 BRIDLE PATH HEALDSBURG, CA 95448
003-150-068-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 DIVITA DANIEL P TR & DIVITA CORLISS R TR 372 BRIDLE PATH HEALDSBURG, CA 95448
003-150-069-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 ROBINETT DAVID FRANCIS TR & GREENAWALT LILA BENTE 366 BRIDLE PATH HEALDSBURG, CA 95448

PARKLAND
FARMS

SUBDIVISION
PHASE 5
003-160-001-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 FREEMAN MONTY & FAVERO

ANTOINE
379 PARKLAND FARMS BLVD HEALDSBURG,
CA 95448
003-160-002-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 CLARFIELD JULIE A TR 381 PARKLAND FARMS BLVD HEALDSBURG, CA 95448
003-160-003-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 PRUNTY JOHN LYNN TR & PRUNTY

NANCY E TR
383 PARKLAND FARMS BLVD HEALDSBURG,
CA 95448
003-160-004-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 PRENDIVILLE MARK TR &

PRENDIVILLE SHANNON TR
385 PARKLAND FARMS BLVD HEALDSBURG,
CA 95448
003-160-005-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 FOLEY BEINING CHRISTIAN OLAF

TR & FOLEY BEINING KA
387 PARKLAND FARMS BLVD HEALDSBURG,
CA 95448
003-160-006-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 ANDREWS JOHN P TR & ANDREWS

MONA L TR
389 PARKLAND FARMS BLVD HEALDSBURG,
CA 95448
003-160-007-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 WILLIAMS MARY PATRICIA TR 391 PARKLAND FARMS BLVD HEALDSBURG, CA 95448
003-160-008-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 ZHARI ABDEL AZIZ TR & ZHARI

MONICA E TR
401 PARKLAND FARMS BLVD HEALDSBURG,
CA 95448
003-160-009-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 KYNTL JOSEF TR & KYNTL JANA TR 3559 STALLION DR SANTA ROSA, CA 95404 003-160-010-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 FERRELL BRIAN MICHAEL & FERRELL MARISA MICHELE 397 ARABIAN WAY HEALDSBURG, CA 95448 003-160-011-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 REEDY KATHRYN & REEDY ROSS 395 ARABIAN WAY HEALDSBURG, CA 95448 003-160-012-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 TYLER ELLEN RAE 393 ARABIAN WAY HEALDSBURG, CA 95448 003-160-013-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 WILDERMUTH DANIEL S TR & MAXWELL BEATRICE S TR 391 ARABIAN WAY HEALDSBURG, CA 95448 003-160-014-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 SIGLER LEILA TR 371 ARABIAN WAY HEALDSBURG, CA 95448 003-160-015-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 BERNARD STEVE P & BERNARD KIMBERLY ANN 369 ARABIAN WAY HEALDSBURG, CA 95448
003-160-016-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 OLAH JOHN D & CATHERINE ELIZABETH 367 ARABIAN WAY HEALDSBURG, CA 95448
003-160-017-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 LANGE MICHAEL BROOKS & LANGE CONSTANCE 365 ARABIAN WAY HEALDSBURG, CA 95448
003-160-018-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 WORKING CRAIG R ET AL 363 ARABIAN WAY HEALDSBURG, CA 95448 003-160-019-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 HIXSON JUSTIN & HIXSON KRYSTLE 361 ARABIAN WAY HEALDSBURG, CA 95448 003-160-020-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 SEUFERER MARTIN L & KRIS E 359 ARABIAN WAY HEALDSBURG, CA 95448 003-160-021-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 ALARY WANDA L TR 357 ARABIAN WAY HEALDSBURG, CA 95448 003-160-022-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 TISCARENO ADAM & TISCARENO MIA PAULINE 3217 JUSTINPAUL LN MODESTO, CA 95355
003-160-023-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 WHITE KATHLEEN A TR ET AL & WHITE THOMAS R TR 353 ARABIAN WAY HEALDSBURG, CA 95448
003-160-024-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 ROTHBERG JULIE & ROTHBERG GREGG ROBERT 351 ARABIAN WAY HEALDSBURG, CA 95448
003-160-025-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 ALVAREZ JUANA ROSA 349 ARABIAN WAY HEALDSBURG, CA 95448 003-160-026-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 YU DAVID J TR & YU LYNN VANCE TR 347 ARABIAN WAY HEALDSBURG, CA 95448
003-160-027-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 LEBOW BENJAMIN 1687 STIRRUP LOOP HEALDSBURG, CA 95448 003-160-028-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 SAVAGE WILLIAM D TR & JENSEN ELLEN M TR 1685 STIRRUP LOOP HEALDSBURG, CA 95448
2024-H-LLAD.xlsx 45

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Packet Pg. 206 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District)

CITY OF HEALDSBURG

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
ASSESSMENT ROLL - FISCAL YEAR 2024-25

SUBDIVISION APN USE CODE ESD
FACTOR
TOTAL

DWELLING
UNITS*
ESD
UNITS
PARCEL
AREA
(AC)
ZONE 1
ASSESS
ZONE 2
ASSESS
ZONE 3
ASSESS
ZONE 4
ASSES
ZONE 5
ASSES
ZONE 6
ASSES
ZONE 7
ASSES
TOTAL

ASSESS PROPERTY OWNER OWNER ADDRESS
003-160-029-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 QUIROZ KATHERINE RENE TR & QUIROZ MAURICE H TR 1683 STIRRUP LOOP HEALDSBURG, CA 95448 003-160-030-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 BRIZZOLARA PAUL L & BRIZZOLARA SHARON B 1681 STIRRUP LOOP HEALDSBURG, CA 95448
003-160-031-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 WALSH MARK J TR & WALSH DENISE M TR 1680 STIRRUP LOOP HEALDSBURG, CA 95448
003-160-032-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 TOTH THOMAS TR & ANDERSON ELIZABETH TR 1678 STIRRUP LOOP HEALDSBURG, CA 95448
003-160-033-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 THWAITES CHRISTOPHER A & THWAITES KRISTIN 1676 STIRRUP LOOP HEALDSBURG, CA 95448 003-160-034-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 KONRAD GERTRUDE V TR 2480 MILL CREEK RD HEALDSBURG, CA 95448 003-160-035-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 ABBOTT JARED & SWANTON LINDSEY E 1672 STIRRUP LOOP HEALDSBURG, CA 95448
003-160-036-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 MCGEE KEVIN & PENDERGAST KATHLEEN 1670 STIRRUP LOOP HEALDSBURG, CA 95448
003-160-037-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 PELM NICHOLAS & PELM LINDA 1684 STIRRUP LOOP HEALDSBURG, CA 95448 003-160-038-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 BACH GALE W TR & BACH JOY C TR 1686 STIRRUP LOOP HEALDSBURG, CA 95448 003-160-039-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 SOENNICHSEN RICHARD H TR & SOENNICHSEN SUSAN B TR 1688 STIRRUP LOOP HEALDSBURG, CA 95448 003-160-040-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 FILLIPONE JEFFREY & FILLIPONE MARY ANNE 1690 STIRRUP LOOP HEALDSBURG, CA 95448
003-160-041-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 WISEMAN CHRISTOPHER J & WISEMAN ALISON K 1661 STIRRUP LOOP HEALDSBURG, CA 95448 003-160-042-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 STAHL DAVID & ULLOA MIGUEL 300 BERRY ST #513 SAN FRANCISCO, CA 94158
003-160-043-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 MABRY RONALD H TR & MABRY SHEILA MCGUINNESS TR 1665 STIRRUP LOOP HEALDSBURG, CA 95448 003-160-044-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 RADELFINGER SAM TR & SCARDACI RITA TR 1667 STIRRUP LOOP HEALDSBURG, CA 95448 003-160-045-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 KREMPA THOMAS S K TR & KREMPA ANDREA TR 356 ARABIAN WAY HEALDSBURG, CA 95448
003-160-046-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 PRISHTINA MARY C TR 358 ARABIAN WAY HEALDSBURG, CA 95448 003-160-047-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 GREENE DAVID & HANFORD CARRIE A 360 ARABIAN WAY HEALDSBURG, CA 95448
003-160-048-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 CARPENTER AARON E & CARPENTER MANDY M 362 ARABIAN WAY HEALDSBURG, CA 95448
003-160-049-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 CLAR RICHARD S TR & CLAR MARGARET TR 364 ARABIAN WAY HEALDSBURG, CA 95448
003-160-050-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 NICHOLS WILLIAM C TR & NICHOLS KATHLEEN A TR 366 ARABIAN WAY HEALDSBURG, CA 95448
003-160-051-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 NORLANDER HANS G TR & NORLANDER TOVE H TR 368 ARABIAN WAY HEALDSBURG, CA 95448 003-160-052-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 INEICH STEVEN C & INEICH DIANE M
370 ARABIAN WAY HEALDSBURG, CA 95448
003-160-053-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 MCKAY THOMAS MICHAEL & COFFEY-MCKAY KIMBERLEY ANNE 390 ARABIAN WAY HEALDSBURG, CA 95448 003-160-054-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 VICAR M DOUGLAS MAC TR & VICAR SUSAN P MAC TR 392 ARABIAN WAY HEALDSBURG, CA 95448 003-160-055-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 DOHERTY LOUISE & DOHERTY STEVEN 394 ARABIAN WAY HEALDSBURG, CA 95448
003-160-056-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 MCDONEL PHILLIP LANE TR & MCDONEL BARBARA GAIL TR 396 ARABIAN WAY HEALDSBURG, CA 95448 003-160-057-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 LYETH CAMERON TR & LYETH TIFFANY TR 398 ARABIAN WAY HEALDSBURG, CA 95448
003-160-058-000 0001 0.0 0.0 0.0 $0.00 $0.00 $0.00 CITY OF HEALDSBURG 401 GROVE ST HEALDSBURG, CA 95448

PARKLAND
FARMS

SUBDIVISION
PHASE 6
003-160-059-000 0001 0.5 1.0 0.5 $150.16 $86.15 $236.31 FRANCO KATHERINE 507 EL DORADO CT SANTA ROSA, CA 95404 003-160-060-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 AVILA ELADIO AVILA & AVILA MARIA CAROLINA 1664 STIRRUP LOOP HEALDSBURG, CA 95448
003-160-061-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 RUETER JOCHEM M TR & RUETER JILL A TR 372 ARABIAN WAY HEALDSBURG, CA 95448
003-160-062-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 MATNEY EDWARD R & DEVICO SUSAN 378 ARABIAN WAY HEALDSBURG, CA 95448
003-160-063-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 HUGHES ROLAND A TR & FREDERICK JULIE A TR 384 ARABIAN WAY HEALDSBURG, CA 95448 003-160-064-000 0001 0.5 1.0 0.5 $150.16 $86.15 $236.31 DVORAK EUGENE & DVORAK NATASHA 400 ARABIAN WAY HEALDSBURG, CA 95448
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Packet Pg. 207 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District)

CITY OF HEALDSBURG

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
ASSESSMENT ROLL - FISCAL YEAR 2024-25

SUBDIVISION APN USE CODE ESD
FACTOR
TOTAL

DWELLING
UNITS*
ESD
UNITS
PARCEL
AREA
(AC)
ZONE 1
ASSESS
ZONE 2
ASSESS
ZONE 3
ASSESS
ZONE 4
ASSES
ZONE 5
ASSES
ZONE 6
ASSES
ZONE 7
ASSES
TOTAL

ASSESS PROPERTY OWNER OWNER ADDRESS
003-160-065-000 0057 1.0 2.0 2.0 $600.64 $344.60 $945.24 LALONDE STEVEN JAMES TR & LALONDE REBECCA SUE TR 406 ARABIAN WAY HEALDSBURG, CA 95448 SIENNA
POINTE

SUBDIVISION
003-170-001-000 0019 1.0 1.0 1.0 $172.30 $172.30 MASSELINK RANDALL TR & VENEZIANI DONATELLA TR 135 PAUL WITTKE DR HEALDSBURG, CA 95448 003-170-002-000 0010 1.0 1.0 1.0 $172.30 $172.30 FLEISCHLI FRANZ K III TR ET AL 1565 ROSEWOOD DR HEALDSBURG, CA 95448 003-170-003-000 0010 1.0 1.0 1.0 $172.30 $172.30 DEPREEZ RONALD HERCULES & COCHRAN COURTNEY 1569 ROSEWOOD DR HEALDSBURG, CA 95448
003-170-004-000 0010 1.0 1.0 1.0 $172.30 $172.30 LOPEZ EDWARD C & LOPEZ JENNIFER E 1573 ROSEWOOD DR HEALDSBURG, CA 95448
003-170-005-000 0010 1.0 1.0 1.0 $172.30 $172.30 BRENNAN JEROME F TR & BRENNAN CONSTANCE L TR 1577 ROSEWOOD DR HEALDSBURG, CA 95448 003-170-006-000 0001 0.5 1.0 0.5 $86.15 $86.15 BURK HOLDINGS LLC PO BOX 613 LAFAYETTE, CA 94549 003-170-007-000 0010 1.0 1.0 1.0 $172.30 $172.30 SAIGAL CHAMPA & SAIGAL SANJAY 1585 ROSEWOOD DR HEALDSBURG, CA 95448 003-170-008-000 0010 1.0 1.0 1.0 $172.30 $172.30 BAKER EDWARD D TR & BAKER KYLE R TR 1589 ROSEWOOD DR HEALDSBURG, CA 95448
003-170-009-000 0023 1.0 2.0 2.0 $344.60 $344.60 GEE SANDRA S TR & GEE ROBERT A TR 1593 ROSEWOOD DR HEALDSBURG, CA 95448
003-170-010-000 0001 0.5 1.0 0.5 $86.15 $86.15 KAHN JAMES R TR 127 SIENNA CT HEALDSBURG, CA 95448 003-170-012-000 0010 1.0 1.0 1.0 $172.30 $172.30 KAHN JAMES R TR 127 SIENNA CT HEALDSBURG, CA 95448 003-170-013-000 0541 1.0 1.0 1.0 $172.30 $172.30 HERRON WILLIAM P TR ET AL 1750 TAYLOR ST UNIT 802 SAN FRANCISCO, CA 94133
003-170-014-000 0010 1.0 1.0 1.0 $172.30 $172.30 CAMPBELL GEORGE J III TR & MARY JANE TR 1584 ROSEWOOD DR HEALDSBURG, CA 95448
003-170-015-000 0010 1.0 1.0 1.0 $172.30 $172.30 KEMP ALSON R TR & KEMP MARTHA G TR 1580 ROSEWOOD DR HEALDSBURG, CA 95448
003-170-016-000 0051 1.0 1.0 1.0 $172.30 $172.30 DUNCAN KIONA RITA SCHERRER & DUNCAN MATTHEW CRAIG 123 SIENNA CT HEALDSBURG, CA 95448

PARKLAND
FARMS

SUBDIVISON
PARCEL "B"
003-180-001-000 0019 1.0 1.0 1.0 $300.32 $172.30 $472.62 MENDEZ JOSE L REYES & REYES MARIA G MENDEZ DE 1719 PALOMINO CT HEALDSBURG, CA 95448 003-180-002-000 0019 1.0 1.0 1.0 $300.32 $172.30 $472.62 RODRIGUEZ LUIS & RODRIGUEZ ALANA K 1723 PALOMINO CT HEALDSBURG, CA 95448
003-180-003-000 0019 1.0 1.0 1.0 $300.32 $172.30 $472.62 SMITH MATTHEW B TR & RIFF KIMBERLY A TR 1727 PALOMINO CT HEALDSBURG, CA 95448
003-180-004-000 0019 1.0 1.0 1.0 $300.32 $172.30 $472.62 MOORE REBECCA N & DAVID J 1731 PALOMINO CT HEALDSBURG, CA 95448 003-180-005-000 0019 1.0 1.0 1.0 $300.32 $172.30 $472.62 GRUNER GREGORY & TERESA 1735 PALOMINO CT HEALDSBURG, CA 95448 003-180-006-000 0019 1.0 1.0 1.0 $300.32 $172.30 $472.62 PICKERING WAYNE LEON & GALINDO HELEN 1739 PALOMINO CT HEALDSBURG, CA 95448
003-180-007-000 0019 1.0 1.0 1.0 $300.32 $172.30 $472.62 HAVILAND LINDA M 1748 PALOMINO CT HEALDSBURG, CA 95448 003-180-008-000 0019 1.0 1.0 1.0 $300.32 $172.30 $472.62 SILVEIRA ROBERT TR 1744 PALOMINO CT HEALDSBURG, CA 95448 003-180-009-000 0019 1.0 1.0 1.0 $300.32 $172.30 $472.62 BURTON WARREN J TR & BURTON BOBBI A TR 1740 PALOMINO CT HEALDSBURG, CA 95448
003-180-010-000 0019 1.0 1.0 1.0 $300.32 $172.30 $472.62 COLLIN DAVID L TR & VANONICOLLIN ALINA M TR 1736 PALOMINO CT HEALDSBURG, CA 95448 003-180-011-000 0019 1.0 1.0 1.0 $300.32 $172.30 $472.62 BEARD JOHN V & CASTELLI TINA 1732 PALOMINO CT HEALDSBURG, CA 95448 003-180-012-000 0019 1.0 1.0 1.0 $300.32 $172.30 $472.62 MCDANIEL MARY M 1728 PALOMINO CT HEALDSBURG, CA 95448 003-180-013-000 0019 1.0 1.0 1.0 $300.32 $172.30 $472.62 LOVE MICHELE D 1724 PALOMINO CT HEALDSBURG, CA 95448 003-180-014-000 0019 1.0 1.0 1.0 $300.32 $172.30 $472.62 NOVELLA DIANA TR 1720 PALOMINO CT HEALDSBURG, CA 95448 003-180-015-000 0019 1.0 1.0 1.0 $300.32 $172.30 $472.62 GAUSE ADRIENNE & BEAMAN PETER ET AL 1716 PALOMINO CT HEALDSBURG, CA 95448

PARKLAND
FARMS

SUBDIVISON
PHASE 10B
003-180-016-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 GRAVES MICHAEL DAVID & PAGE KATHLEEN REAVETTE 388 BRIDLE PATH HEALDSBURG, CA 95448
003-180-017-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 DOWNEY PAUL A TR & BEACHAM HALLIE A TR 383 BRIDLE PATH HEALDSBURG, CA 95448
003-180-018-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 RODRIGUEZ J JAIME & RODRIGUEZ ROSA E 1743 PALOMINO CT HEALDSBURG, CA 95448
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Packet Pg. 208 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District)

CITY OF HEALDSBURG

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
ASSESSMENT ROLL - FISCAL YEAR 2024-25

SUBDIVISION APN USE CODE ESD
FACTOR
TOTAL

DWELLING
UNITS*
ESD
UNITS
PARCEL
AREA
(AC)
ZONE 1
ASSESS
ZONE 2
ASSESS
ZONE 3
ASSESS
ZONE 4
ASSES
ZONE 5
ASSES
ZONE 6
ASSES
ZONE 7
ASSES
TOTAL

ASSESS PROPERTY OWNER OWNER ADDRESS

ROSEWOOD
CREEK

SUBDIVISION
003-190-001-000 0051 1.0 1.0 1.0 $172.30 $172.30 KLICK TYLER D & KLICK KAREN R 122 MOONLIGHT DR HEALDSBURG, CA 95448 003-190-002-000 0010 1.0 1.0 1.0 $172.30 $172.30 BOWMAN DAVID K & BOWMAN MEGAN B 126 MOONLIGHT DR HEALDSBURG, CA 95448
003-190-003-000 0005 0.5 1.0 0.5 $86.15 $86.15 BOWMAN DAVID K & BOWMAN MEGAN B 126 MOONLIGHT DR HEALDSBURG, CA 95448
003-190-004-000 0010 1.0 1.0 1.0 $172.30 $172.30 GONZALEZ GIANCARLO BIANCHETTI 134 MOONLIGHT DR HEALDSBURG, CA 95448
003-190-005-000 0010 1.0 1.0 1.0 $172.30 $172.30 GRABLE MICHAEL D TR & GRABLE

AMY K TR
17050 STATE HIGHWAY 128 CALISTOGA, CA
94515
003-190-006-000 0010 1.0 1.0 1.0 $172.30 $172.30 ROSSIE MATTHEW B & ROSSIE WENDY A 129 MOONLIGHT DR HEALDSBURG, CA 95448
003-190-007-000 0000 0.0 0.0 0.0 $0.00 $0.00 CITY OF HEALDSBURG 703 2ND ST STE 200 SANTA ROSA, CA 95404

FANNY HILL
ESTATES 003-200-001-000 0019 1.0 1.0 1.0 $300.32 $172.30 $472.62 MORALES TOMAS & MORALES LAURA 1568 ROSEWOOD DR HEALDSBURG, CA 95448 003-200-002-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 CARRUBBA FRANCIS P JR & CARRUBBA PATRICIA A PO BOX 88 HEALDSBURG, CA 95448
003-200-003-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 CARRUBBA FRANCIS P JR & CARRUBBA PATRICIA A PO BOX 88 HEALDSBURG, CA 95448
003-200-004-000 0051 1.0 1.0 1.0 $300.32 $172.30 $472.62 LACONTE CYNTHIA A & LACONTE THOMAS J 231 POPPY HILL DR HEALDSBURG, CA 95448
003-200-005-000 0001 0.5 1.0 0.5 $150.16 $86.15 $236.31 LACONTE CYNTHIA A & LACONTE THOMAS J 231 POPPY HILL DR HEALDSBURG, CA 95448
003-200-006-000 0050 0.5 1.0 0.5 $150.16 $86.15 $236.31 CARRUBBA FRANCIS P JR TR & CARRUBBA PATRICIA A TR PO BOX 88 HEALDSBURG, CA 95448
003-200-007-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 GRAY JONATHAN D TR 220 POPPY HILL DR HEALDSBURG, CA 95448 003-200-008-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 EGAN WILLIAM K TR PO BOX 1948 HEALDSBURG, CA 95448 003-200-009-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 BORIOLO DANIEL J TR & BORIOLO

GISELE D TR
1567 CLEAR RIDGE DR HEALDSBURG, CA
95448
003-200-010-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 YAEGER MIKE S TR & YAEGER LEE

ANNE TR
1568 CLEAR RIDGE DR HEALDSBURG, CA
95448
003-200-011-000 0001 0.5 1.0 0.5 $150.16 $86.15 $236.31 DUNHAM CONSTANCE GAIL TR 49 PELICAN LN REDWOOD CITY, CA 94065 003-200-012-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 CALLAHAN MICHAEL D TR & YOUNGCALLAHAN PHYLLIS E T 1575 CLEAR RIDGE DR HEALDSBURG, CA
95448
003-200-013-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 BRETT MATTHEW M & BRETT KATIE R
1579 CLEAR RIDGE DR HEALDSBURG, CA
95448
003-200-014-000 0540 0.5 1.0 0.5 $150.16 $86.15 $236.31 MILLER BRIAN J TR & LAU DORA TR 1650 RAMONA WAY ALAMO, CA 94507 003-200-017-000 0000 0.5 1.0 0.5 $150.16 $86.15 $236.31 BROOKSIDE LODGE INC 2031 DENNIS LN SANTA ROSA, CA 95403

PARKLAND
FARMS

SUBDIVISON
091-040-062-000 0930 0.0 0.0 0.0 $0.00 $0.00 $0.00 CITY OF HEALDSBURG 401 GROVE ST HEALDSBURG, CA 95448 SENIOR
HOUSING 091-040-072-000 0044 1.0 24.0 24.0 $4,135.20 $6,793.44 $10,928.64 PARK LAND SENIOR APARTMENTS

INVESTORS LP
1425 CORPORATE CENTER PKWY SANTA
ROSA, CA 95407

PARKLAND
FARMS

SUBDIVISON
091-040-103-000 0920 0.0 0.0 0.0 $0.00 $0.00 $0.00 CITY OF HEALDSBURG 401 GROVE ST HEALDSBURG, CA 95448 091-040-104-000 0010 1.0 1.0 1.0 $300.32 $172.30 $472.62 DADAOS JAMES G TR & DADAOS MERRILEE TR 1695 STIRRUP LOOP HEALDSBURG, CA 95448
091-040-105-000 0930 0.0 0.0 0.0 $0.00 $0.00 $0.00 CITY OF HEALDSBURG 401 GROVE ST HEALDSBURG, CA 95448 TOTAL ASSESSMENTS PER ZONE $114,121.60 $7,706.40 $87,614.55 $6,793.44 $23,026.58 $17,699.04 $153,936.28 $410,897.89 TOTAL ESD UNITS PER ZONE 380.00 60.00 508.50 24.00 37.00 34.00 TOTAL ACREAGE PER ZONE 7.40
*Number of Total Dwelling Units at Buildout
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Packet Pg. 209 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 49 PART D

METHOD OF APPORTIONMENT OF ASSESSMENT
FY 2024-25
Special and General Benefits
Each parcel within each of the zones of the Assessment District receives a distinct special benefit from improvements and maintenance thereof as discussed below.

Zone 1 – Parkland Hills Subdivision (Including Quarry Ridge) Zone 1 includes the maintenance of the landscaping, weed abatement and re-vegetation of various areas within the Parkland Hills Subdivision boundary, which includes the Quarry Ridge subdivision. The landscaping is at the entrance to Parkland Hills and along Parkland Farms Boulevard including the entrance median, along Saddle Draw, a portion of Bridle Path near Palomino Court, and a portion of Canyon Run south of Parkland Farms Boulevard. Weed abatement is done within the northwesterly area of this development including the detention basin area, and a central area south of Parkland Farms Boulevard. Re-vegetation and weed abatement are done along the Foss Creek area entirely within the subdivision.

The parcels within this zone receive a direct special benefit from the landscaping, weed abatement, creek re-vegetation and the maintenance thereof which include enhanced desirability of properties through association with the improvements, improved aesthetic appeal of the neighborhood, improved air quality from additional vegetation, fire safety from management of weeds and opportunity for recreation and dog walking in the open areas. The Zone 1 maintenance items have been determined to confer no general benefits to the community at large.

Zone 2 – Healdsburg Estates and River’s Landing Subdivisions Zone 2 consists of weed abatement along Paul Witke Drive. The parcels within this zone receive a direct special benefit from the weed abatement which includes enhanced fire safety from management of weeds. The Zone 2 maintenance items have been determined to confer no general benefits to the community at large.

Zone 3 – Barbieri Brothers Park and Healdsburg Avenue Frontage Landscaping Zone 3 includes the maintenance of Barbieri Brothers Park, located within the Parkland Hills Subdivision, and the frontage landscaping along Healdsburg Avenue within Area A. Barbieri Brothers Park was designated as mitigation for park area within North Healdsburg Avenue Specific Plan Area A Assessment District, indicating that all parcels within the boundary of Area A have been determined to receive a special benefit from this park.

The special benefits to each parcel in Zone 3 provided by Barbieri Brothers Park and frontage landscaping along Healdsburg Avenue include the readily accessible opportunity for recreation and enhanced desirability of properties through association with the improvements, improved

6.H.b
Packet Pg. 210 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 50 aesthetic appeal of the neighborhood and improved air quality from additional vegetation. The Zone 3 benefits within this assessment district have been determined to confer no general benefits to the community outside of Area A.

There are a number of parcels within the Area A boundary that have not yet been annexed into Zone 3. Because these parcels receive a special benefit for the landscaping and the park but do not contribute to its maintenance, the City contributes Community Services Funds to cover what would be the combined annual assessment of these parcels. Consequently, every parcel within Zone 3 pays only for the proportional special benefit conferred upon that parcel.

Zone 4 – Senior Housing
Zone 4 includes the maintenance of landscaping along Parkland Farms Boulevard. There is a single parcel in this zone that receives a direct special benefit from the landscaping maintenance.

The special benefit to this parcel, provided by this area and maintenance thereof include enhanced desirability of properties through association with the improvements, improved aesthetic appeal of the neighborhood and improved air quality from additional vegetation. The Zone 4 benefits within this assessment district have been determined to confer no general benefits to the community at large.

Zone 5 – Sonata Subdivision (including Grant Street Village) Zone 5 includes the maintenance associated with the trail along Foss Creek, the landscaping along Larkspur Drive within Grant Street Village and a small pocket park at Marigold Way and Healdsburg Avenue. The parcels within this zone receive a direct special benefit from the landscaping and maintenance of these areas.

The special benefits to each parcel in Zone 5 provided by these items and the maintenance thereof include enhanced desirability of properties through association with the improvements, improved aesthetic appeal of the neighborhood, improved air quality from additional vegetation, the opportunity for recreation and dog walking. The Foss Creek trail and the small pocket park have been determined to be too small to attract residents from outside of this subdivision. The Zone 5 maintenance items have been determined to confer no general benefits to the community at large.

Zone 6 – Sorrento Square Subdivision
Zone 6 includes the maintenance, lighting and related costs of back-on street landscaping along the portion of Healdsburg Avenue fronting this subdivision along with maintenance costs of a small pocket park within the subdivision along Monte Vista Avenue. Landscape maintenance in the pocket park includes the maintenance of tables and benches, a drinking fountain (including water costs), a concrete retaining wall and sidewalks within the pocket park. The parcels within this zone receive a direct special benefit from the landscaping, lighting and maintenance of these areas.

The special benefit to each parcel in Zone 6 provided by the landscaping and park maintenance

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Packet Pg. 211 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 51 thereof include enhanced desirability of properties through association with the improvements, improved aesthetic appeal of the neighborhood, improved air quality from additional vegetation and the opportunity for recreation. The lights within this subdivision are spaced per adopted City standards, thereby providing the specific benefits of safety for vehicular traffic and pedestrian travel at night and safety lighting of the neighborhood in general.

The pocket park is very small and provides few park amenities, however it does provide special benefit to the Zone 6 parcels. It has been determined that residential parcels outside of Zone 6, within the same walking distance to the pocket park as the farthest Zone 6 parcel, also benefit from this pocket park. Because these parcels receive a special benefit from the park but are not within Zone 6 and do not contribute to its maintenance, the City contributes Community Services Funds to cover the combined special benefit value received by these parcels.

Consequently, every parcel within Zone 6 pays only for the proportional special benefit conferred upon that parcel. The pocket park has been determined to confer no general benefits to the community at large because of its small size and limited amenities.

Zone 7 – Mill District
Zone 7 includes the maintenance of street lighting, landscaping, and storm water treatment facilities associated with the landscaping (Silva cells and rain garden units) in the public right-ofway fronting Healdsburg Avenue, Saw Mill Circle, Branch Lane and South Street.

The parcels within this zone receive a direct special benefit from the street lighting, landscaping, and stormwater treatment facilities and the maintenance thereof. For street landscaping, each parcel within each zone receives a special benefit from the pleasing aesthetics of the landscaping, improved air quality from additional plant life and increased property value. Street lighting increases property security and safety of pedestrians and vehicular traffic at night. Stormwater treatment facilities associated with landscaping provide the ability for this development to meet required water quality standards due to maintenance of storm water treatment facilities. These assessed improvements also make these areas more desirable for future businesses, directly benefiting the property values in this zone.

The Zone 7 maintenance items have been determined to confer no general benefits to the community at large.

Apportionment of Assessments by ESD
The following is a brief description of the manner that the annual assessment has been apportioned to each parcel in Zones 1, 2, 3, 4, 5, and 6 within the Assessment District.

The method of apportionment equates all parcels within Zones 1, 2, 3, 4, 5 and 6 to an Equivalent Single-Family Dwelling (ESD) unit use, or portion thereof. The subdivisions in these Zones are:

Parkland Hills Subdivision (all phases), Quarry Ridge, Healdsburg Estates, Ridgeline Subdivision, Sienna Pointe Subdivision, Fanny Hill Estates Subdivision, River’s Landing, Rosewood Creek Subdivision, Rosewood Heights Subdivision, the Senior Housing Development, Sonata (Includes

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Packet Pg. 212 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 52 Grant Street Village), and Sorrento Square. The following basic use units reflect the relative benefit accruing to parcels of land within each Zone of the Healdsburg Landscaping & Lighting Assessment District depending on the type of land use and stage of development.

Use Units by Parcel Type
Parcel Type Use Units
Vacant parcel in undeveloped area 1/10 unit
Vacant parcel in developed area ½ unit
Single dwelling parcel 1 unit
Multiple dwelling unit parcels 1 unit per dwelling
Commercial parcel with no dwelling units 1 unit per business Commercial parcels with dwelling units 1 unit per business + 1 unit per dwelling unit Industrial parcel with no dwelling units 1 unit per business Industrial parcel with dwelling unit 1 unit per business + 1 unit per dwelling unit Parcels without a dwelling used exclusively
for greenbelt, open space, drainage, or
common area of any planned unit
development
0 unit
Special Benefits in Zones 3 and 6:
• Zone 3: Various parcels outside of Zone 3 but located within Area A were identified as receiving special benefit from Barbieri Brothers Park and Healdsburg Avenue frontage maintenance. These benefitting parcels outside the Zone have been attributed ESD units in the same manner as parcels within the zone. Due to the type of land use and stage of development, these parcels currently represent 33 ESDs. Those 33 ESDs were added to the total number of ESDs within Zone 3 to total the ESD’s within Area A. The ratio of these 33 ESD’s over the total ESD’s in Area A represent the ratio of special benefit to parcels outside of Zone 3. This ratio times the budget determines the Community Services Fund contribution for this zone.
• Zone 6: Various residential parcels outside of Zone 6 but located within the same walking distance as parcels within Zone 6 were found to receive special benefits due to their proximity to the pocket park. These benefitting parcels outside the zone have been attributed ESD units in the same manner as parcels within the zone. Due to the type of land use and stage of development, those parcels currently represent 34 ESDs. Those 34 ESDs were added to the total number of ESDs within Zone 6 to determine the total ESD’s benefitting from the pocket park. The ratio of these 34 ESDs over the total ESDs benefitting from the pocket park represent the ratio of special benefit to parcels outside of Zone 6. This ratio times the park maintenance portion of the budget determines the Community Services Fund contribution for this zone.

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Packet Pg. 213 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 53 For all Zones, once the determination is made of the total number of ESD units for each Zone, the total number of ESD units for each Zone shall be divided into each respective Zone’s total operation and maintenance expenses for the upcoming fiscal year, less any Community Services Fund contribution, resulting in the proposed annual assessment per (ESD) unit. The assessment per ESD for each Zone shall be multiplied by the total ESD units established/calculated for each parcel to determine the proposed total annual assessment for each parcel within each Zone.

It was determined that only Zones 3 and 6 have parcels outside of the zone that receive special benefit. As the Community Services Fund contribution from the City paysthe special benefit value for parcels outside of the zone, parcels in Zones 3 and 6 pay only for the portion of the special benefits that they receive.

Apportionment of Assessments by Parcel Size (Acreage)
Annual assessments will be apportioned to each parcel in Zone 7 according to parcel size.

The seven parcels within Zone 7 are of unequal size, with varying shapes and length of street frontage. Accordingly, the most equitable method of apportionment is to distribute the operation, maintenance and administrative costs for the assessed improvements by the size (acreage) of each parcel.

The assessment per acre shall be calculated by dividing the total annual assessment by the total number of acres within the zone.

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Packet Pg. 214 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 54 PART E
FY 2024-25 PROPERTY OWNERS LIST
The names and addresses of each of the property owners as shown on the County of Sonoma Assessor’s Tax Assessment Roll have been keyed into the special assessment number (Assessor Parcel Number) in Part C – Assessment Roll of this Engineer’s Report.

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Packet Pg. 215 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 55 PART F
FY 2024-25 ASSESSMENT DIAGRAM
Attached are the Assessment Diagrams (Maps) for the Zones within the Assessment District. The first Assessment Diagram is an overview map showing the locations of all Zones of the Assessment District. Please note the lines and dimensions of each parcel, as well as the distinctive Assessor’s Parcel Number, are shown on the Assessor's Maps for the City of Healdsburg. These Maps are available at the County of Sonoma Assessor's Office. The attached pages also provide the reference to the appropriate Assessor Books at the County of Sonoma Assessor’s Office for the respective subdivisions in each of the Zones.

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Packet Pg. 216 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 56 Zone 1
All the land lying within the Parkland Hills Subdivision filed in the Recorder’s Office of the County of Sonoma, P.M. Number 146 Book, 578, Pages 36-37.

All the land lying within the Parkland Hills Subdivision filed in the Recorder’s Office of the County of Sonoma, A.P. Numbers 091-040-062, 105; 091-040-103, 104.

All the land lying within the Parkland Hills Phase 1 filed in the Recorder’s Office of the County of Sonoma in Book 563, Pages 6-10.

All the land lying within the Parkland Hills Phase 2 filed in the Recorder’s Office of the County of Sonoma in Book 580, Pages 21-25.

All the land lying within the Parkland Hills Phase 3 filed in the Recorder’s Office of the County of Sonoma in Book 580, Pages 26-29.

All the land lying within the Parkland Hills Phase 4 filed in the Recorder’s Office of the County of Sonoma in Book 593, Pages 6-9.

All the land lying within the Parkland Hills Phase 10A filed in the Recorder’s Office of the County of Sonoma in Book 621, Pages 19-22.

All the land lying within the Parkland Hills Phase 7 & 8 filed in the Recorder’s Office of the County of Sonoma in Book 589, Pages 35-39.

All the land lying within the Quarry Ridge Subdivision filed in the Recorder’s Office of the County of Sonoma in Book 595, Pages 1-4.

All the land lying within the Parkland Hills Phase 5 filed in the Recorder’s Office of the County of Sonoma in Book 600, Pages 40-44.

All the land lying within the Parkland Hills Phase 6 filed in the Recorder’s Office of the County of Sonoma in Book 610, Pages 40-43.

All the land lying within the Parkland Hills Phase 9 filed in the Recorder’s Office of the County of Sonoma in Book 620, Pages 30-33.

All the lands lying within the Parkland Hills, Phase 10B filed in the Recorder’s Office of the County of Sonoma, in Book 659, Pages 42-45.

All the lands lying within the Parkland Hills, Parcel B filed in the Recorder’s Office of the County of Sonoma, in Book 659, Pages 46-50.

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Packet Pg. 217 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 57 Zone 2
All the land lying within the Healdsburg Estates Phase 1 filed in the Recorder’s Office of the County of Sonoma in Book 556, Pages 39-42.

All the land lying within the Healdsburg Estates Phase 2 filed in the Recorder’s Office of the County of Sonoma in Book 565, Pages 20-23.

All the land lying within the River’s Landing Subdivision filed in the Recorder’s Office of the County of Sonoma, in Book 660, Pages 22-25.

Zone 3
All the land lying within the Healdsburg Estates Phase 1 filed in the Recorder’s Office of the County of Sonoma in Book 556, Pages 39-42.

All the land lying within the Healdsburg Estates Phase 2 filed in the Recorder’s Office of the County of Sonoma in Book 565, Pages 20-23.

All the land lying within the Parkland Hills Subdivision filed in the Recorder’s Office of the County of Sonoma, P.M. Number 146 Book, 578, Pages 36-37.

All the land lying within the Parkland Hills Subdivision filed in the Recorder’s Office of the County of Sonoma, A.P. Numbers 091-040-062, 105; 091-040-103, 104.

All the land lying within the Parkland Senior Apartments Parcel filed in the Recorder’s Office of the County of Sonoma, A.P. Numbers 091-040-072.

All the land lying within the Fanny Hill Estates filed in the Recorder’s Office of the County of Sonoma, A.P. Numbers 091-050-060, 063.

All the land lying within the Parkland Hills Phase 1 filed in the Recorder’s Office of the County of Sonoma in Book 563, Pages 6-10.

All the land lying within the Parkland Hills Phase 2 filed in the Recorder’s Office of the County of Sonoma in Book 580, Pages 21-25.

All the land lying within the Parkland Hills Phase 3 filed in the Recorder’s Office of the County of Sonoma in Book 580, Pages 26-29.

All the land lying within the Parkland Hills Phase 4 filed in the Recorder’s Office of the County of Sonoma in Book 593, Pages 6-9.

All the land lying within the Parkland Hills Phase 10A filed in the Recorder’s Office of the County of Sonoma in Book 621, Pages 19-22.

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Packet Pg. 218 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 58 All the land lying within the Parkland Hills Phase 7 & 8 filed in the Recorder’s Office of the County of Sonoma in Book 589, Pages 35-39.

All the land lying within the Quarry Ridge Subdivision filed in the Recorder’s Office of the County of Sonoma in Book 595, Pages 1-4.

All the land lying within the Parkland Hills Phase 5 filed in the Recorder’s Office of the County of Sonoma in Book 600, Pages. 40-44.

All the land lying within the Parkland Hills Phase 6 filed in the Recorder’s Office of the County of Sonoma in Book 610, Pages. 40-43.

All the land lying within the Parkland Hills Phase 9 filed in the Recorder’s Office of the County of Sonoma in Book 620, Pages. 30-33.

All the land lying within the Ridge Line Subdivision Phase 1 filed in the Recorder’s Office of the County of Sonoma in Book 617, Pages. 41-44.

All the lands lying within the Sienna Pointe Subdivision filed in the Recorder’s Office of the County of Sonoma in Book 647, Pages. 38-40.

All the lands lying within the River’s Landing Subdivision filed in the Recorder’s Office of the County of Sonoma, in Book 660, Pages 22-25.

All the lands lying within the Rosewood Creek Subdivision filed in the Recorder’s Office of the County of Sonoma, in Book 660, Pages 35-38.

All the lands lying within the Parkland Hills, Phase 10B filed in the Recorder’s Office of the County of Sonoma, in Book 659, Pages 42-45.

All the lands lying within the Parkland Hills, Parcel B filed in the Recorder’s Office of the County of Sonoma, in Book 659, Pages 46-50.

All the lands lying within the Rosewood Heights Subdivision filed in the Recorder’s Office of the County of Sonoma, in Book 698, Pages 17-21.

Zone 4
All the land lying within the Parkland Senior Apartments Parcel filed in the Recorder’s Office of the County of Sonoma, A.P. Numbers 091-040-072.

Zone 5
All the land lying within Grant Street Village Phase 1 filed in the Recorder’s Office of the County of Sonoma, in Book 718 of Maps, Pages 10-15.

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Packet Pg. 219 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) 59 All the land lying within the Sonata Subdivision filed in the Recorder’s Office of the County of Sonoma, in Book 758 of Maps, Pages 1-3.

Zone 6
All the land lying within Midtowne Healdsburg Subdivision (now called Sorrento Square) filed in the Recorder’s Office of the County of Sonoma, in Book 771 of Maps, Pages 44-49.

Zone 7
All the land lying within Mill District Development filed in the Recorder’s Office of the County of Sonoma, in Book 817 of Maps, Pages 32-47.

F:\Projects\Healdsburg\LLAD\2024 hllad 09-5181\2024-H-Engr's Report-Prelim.docx

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Packet Pg. 220 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District)

HEALDSBURG LANDSCAPING & LIGHTING ASSESSMENT DISTRICT
ASSESSMENT DIAGRAM COASTLAND | DCCM 1400 Neotomas Avenue Santa Rosa, CA 95405 707.571.8005 | coastlandcivil.com

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Packet Pg. 221 Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) HEALDSBURG LANDSCAPING & LIGHTING ASSESSMENT DISTRICT ASSESSMENT DIAGRAM COASTLAND | DCCM 1400 Neotomas Avenue Santa Rosa, CA 95405 707.571.8005 | coastlandcivil.com 6.H.b Packet Pg. 222
Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) HEALDSBURG LANDSCAPING & LIGHTING ASSESSMENT DISTRICT ASSESSMENT DIAGRAM COASTLAND | DCCM 1400 Neotomas Avenue Santa Rosa, CA 95405 707.571.8005 | coastlandcivil.com 6.H.b Packet Pg. 223
Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) PARK (INCLUDES QUARRY RIDGE) SIENNA POINTE SUBDIVISION FANNY HILL ESTATES PARKLAND HILLS BROTHERS BARBIERI HEALDSBURG ESTATES CREEK ROSEWOOD RIDGELINE SUBDIVISION HOUSING SENIOR LANDING RIVER'S HEIGHTS ROSEWOOD NOT A PART HEALDSBURG LANDSCAPING & LIGHTING ASSESSMENT DISTRICT ASSESSMENT DIAGRAM COASTLAND | DCCM 1400 Neotomas Avenue Santa Rosa, CA 95405 707.571.8005 | coastlandcivil.com 6.H.b Packet Pg. 224
Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) HEALDSBURG LANDSCAPING & LIGHTING ASSESSMENT DISTRICT ASSESSMENT DIAGRAM COASTLAND | DCCM 1400 Neotomas Avenue Santa Rosa, CA 95405 707.571.8005 | coastlandcivil.com 6.H.b Packet Pg. 225
Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) SONATA (INCLUDES GRANT STREET VILLAGE) HEALDSBURG LANDSCAPING & LIGHTING ASSESSMENT DISTRICT ASSESSMENT DIAGRAM COASTLAND | DCCM 1400 Neotomas Avenue Santa Rosa, CA 95405 707.571.8005 | coastlandcivil.com 6.H.b Packet Pg. 226
Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) SORRENTO SQUARE HEALDSBURG LANDSCAPING & LIGHTING ASSESSMENT DISTRICT ASSESSMENT DIAGRAM COASTLAND | DCCM 1400 Neotomas Avenue Santa Rosa, CA 95405 707.571.8005 | coastlandcivil.com 6.H.b Packet Pg. 227
Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District) NTS HEALDSBURG LANDSCAPING & LIGHTING ASSESSMENT DISTRICT ASSESSMENT DIAGRAM MILL DISTRICT COASTLAND | DCCM 1400 Neotomas Avenue Santa Rosa, CA 95405 707.571.8005 | coastlandcivil.com 6.H.b Packet Pg. 228
Attachment: Engineers Report (4375 : Landscaping and Lighting Assessment District)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: May 6, 2024
SUBJECT: Acceptance of Public Improvements for Old Rossi Phase II Subdivision PREPARED BY: Curt Bates, Principal Engineer
STRATEGIC INITIATIVE(S):

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

Adopt a Resolution accepting public improvements completed for the Old Rossi Phase II Subdivision; accepting a one-year maintenance security (“Maintenance Security”) as described within the Agreement for Subdivision Improvements (“Agreement”); releasing the faithful performance security (“Performance Security”) as described within the Agreement; and conditionally authorizing the City Clerk to release the labor and materials security (“Labor & Materials Security”) six (6) months from the date of acceptance of the Old Rossi Phase II Subdivision.

COMMUNITY ENGAGEMENT/OUTREACH:

The tentative subdivision map for the Old Rossi Phase II Subdivision was publicly noticed in accordance with City requirements and public hearings were previously held with both the City’s Planning Commission and City Council, both of which afforded the opportunity for public input on the project.

BACKGROUND:

On October 21, 2019, the City Council adopted Resolution No. 122-2019 approving the final subdivision map for the Old Rossi Phase II Subdivision located on Old Rossi Place. In connection with the approval of the final subdivision map, the City and Dennis Caravalho (“Developer”), entered into the Agreement governing the design and construction of public improvements needed to serve the subdivision.

The Agreement required the Developer to provide Performance Security equal to 100% of the value of the public improvements to secure completion of construction of the public improvements by Developer. In addition, the Agreement required the developer to provide Labor & Materials Security in an amount equal to 100% of the value of the public improvements to

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secure payment to the contractor, subcontractors and persons furnishing labor, materials, or equipment for the public improvements.

DISCUSSION/ANALYSIS:

The Developer has completed all public improvements in accordance with the Agreement and approved subdivision improvement plans. Public improvements required as part of this subdivision consisted of a new street (extension of Old Rossi Place), sidewalk, curb, gutter, streetlights, as well as new sewer, water, storm drain, and electric utilities to serve the project.

The City Engineer has verified the completion of the public improvements and is satisfied that the public improvements are ready for acceptance by the City Council.

Accordingly, in accordance with the Agreement, the Performance Security shall be released upon acceptance of the public improvements by the City Council. In addition, the Developer has provided Maintenance Security in an amount equal of ten percent (10%) of the value of the public improvements to guarantee the public improvements are free of defects in materials and workmanship for a period of one year following acceptance. The Maintenance Security will be released by City staff upon re-inspection and repair of any defective items pursuant to the Agreement.

Finally, the Labor & Materials Security is to be released in full six (6) months from the date of this acceptance if no claims of lien have been recorded; otherwise, if claims of lien have been recorded and notice thereof given in writing to the City within the aforementioned six (6) month period, the Labor & Materials Security will be reduced to an amount equal to the total claimed by all such claimants.

ENVIRONMENTAL STEWARDSHIP:

Not applicable.

ALTERNATIVES:

The Agreement obligates the city to accept the public improvements once they have been installed to the satisfaction of the City Engineer. As noted above, the City Engineer has verified the completion of the public improvements and is satisfied that the public improvements are ready for acceptance by the City Council.

FISCAL IMPACT:

The Public Works department is required to maintain the public water, sewer and storm drain systems as well as public streets constructed and paid for by the Developer. The value of public improvements was estimated in the Project Engineer’s Estimate to be $272,479. As described above, the Developer has provided a Maintenance Security to guarantee the public improvements to be free of defects in materials and workmanship for a period of one year following this acceptance.

ENVIRONMENTAL ANALYSIS:

The City Council adopted Resolution No. 84-2018 on October 1, 2018, approving the tentative map for the project. The City Council found the project to be categorically exempt pursuant to California Environmental Quality Act (“CEQA”) guidelines section 15332 Class 32 in-fill development projects. This action to accept the public improvement for the Old Rossi Phase II

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Subdivision is not a “project” subject to the requirements of CEQA; as provided in CEQA Guidelines Section 15378 (c), the term “project” refers to the activity which is being approved and which may be subject to several discretionary approvals by governmental agencies. The term “project” does not mean each separate governmental approval. As noted, the public improvements for the Old Rossi Phase II Subdivision were approved by the city in 2018 and at that time it was determined that such action was categorically exempt from CEQA. Accordingly, this acceptance of the public improvements that have been constructed does not constitute a separate “project” subject to CEQA.

ATTACHMENT(S):

Resolution

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CITY OF HEALDSBURG
RESOLUTION NO. - 2024

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG ACCEPTING PUBLIC IMPROVEMENTS FOR THE
OLD ROSSI PHASE II SUBDIVISION; ACCEPTING A ONE YEAR

MAINTENANCE SECURITY AS DESCRIBED WITHIN THE
AGREEMENT FOR SUBDIVISION IMPROVEMENTS; RELEASING

THE FAITHFUL PERFORMANCE SECURITY AS DESCRIBED
WITHIN THE AGREEMENT FOR SUBDIVISION IMPROVEMENTS;

AND AUTHORIZING THE CITY CLERK TO RELEASE THE LABOR
AND MATERIALS SECURITY SIX (6) MONTHS FROM THE DATE

OF ACCEPTANCE FOR THE OLD ROSSI PHASE II SUBDIVISION
WHEREAS, the City of Healdsburg City Council, on October 21, 2019, adopted resolution No. 122-2019 approving the final subdivision map for the Old Rossi Phase II Subdivision; and WHEREAS, the developer, Dennis Carvalho, has completed all improvements in accordance with the approved Old Rossi Phase II Subdivision construction plans; and WHEREAS, in accordance with the agreement for subdivision improvements, developer has provided a maintenance security in the amount of ten percent (10%) of the value of the subdivision improvements, to guarantee the improvements to be free of defects in materials and workmanship for a period of one year following acceptance; and
WHERAS, the Project Engineer Estimates the value of the subdivision improvements to be $272,479.00; and
WHEREAS, the City Engineer has verified completion of the subdivision improvements and is satisfied that the subdivision improvements are ready for acceptance.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg hereby determines that this action to accept the public improvement for the Old Rossi Phase II Subdivision is not a “project” subject to the requirements of CEQA as provided in CEQA Guidelines Section 15378 (c).

BE IT FURTHER RESOLVED that the City Council of the City of Healdsburg hereby accepts the public improvements constructed as part of the Old Rossi Phase II Subdivision.

BE IT FURTHER RESOLVED that the City Council of the City of Healdsburg hereby authorizes the City Clerk to perform the following actions as described within the agreement for subdivision improvements for the Old Rossi II Subdivision:

1. Accept the one-year maintenance security; and

2. Release the faithful performance security; and

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Packet Pg. 232 Attachment: Resolution [Revision 1] (4442 : Acceptance of Public Improvements for Old Rossi Phase II Subdivision) Resolution No. -2024

3. Release the labor and materials security in full six (6) months from the date of this acceptance if no claims of lien have been recorded, otherwise reduce the labor and materials security to an amount equal to the total claimed by all claimants for whom claims of lien have been recorded and notice thereof given in writing to the City.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Healdsburg this 6
th day of May 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. 233 Attachment: Resolution [Revision 1] (4442 : Acceptance of Public Improvements for Old Rossi Phase II Subdivision)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: May 6, 2024
SUBJECT: Purchase of Distribution Transformers for use in Active Development Projects and to Maintain Levels of City Inventories
PREPARED BY: Terry Crowley, Utilities Director
STRATEGIC INITIATIVE(S):

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

Adopt a Resolution approving the purchase of pad-mounted transformers and delegating authority to the City Manager to sign a purchase order for the amount of $152,705.73.

COMMUNITY ENGAGEMENT/OUTREACH:

No community engagement was sought for this item.

BACKGROUND:

In the ownership and operation of Healdsburg’s electric system, the city must pre-purchase electric equipment to facilitate new development projects and to maintain a stock of equipment necessary for planned and unplanned replacements. Starting in late 2021, supply chain disruptions increased delivery times for electric equipment from a historical norm of 16-weeks to as much as three-years. These long lead times require City staff to plan and purchase material years in advance to avoid significant delays in development projects or other City reconstruction projects.

The City has several developments and capital projects planned that require the purchase of multiple utility transformers. Due to the extremely long delivery times, the City must purchase transformers in advance to avoid delaying these projects.

DISCUSSION/ANALYSIS:

In February of 2022, City staff released a request for bids on various sized pad-mounted distribution transformers. A bid was awarded to WEG Transformers USA LLC (WEG) for the amount of $143,614.46. Due to the years long delay in manufacturing and delivery, all transformer bids include the ability to adjust the final price based upon changes in raw material prices.

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In March of 2024, two years after bid award, WEG delivered the purchased materials and as allowed by the purchase agreement adjusted the sale price due to changes in their costs for raw materials. This resulted in a 6.3% price increase to the final bid price of $152,705.73(including sales tax and shipping). Transformers for purchase and their anticipated use are listed below.

Projects Transformer Type Quantity Final
Pricing
Fitch Mtn Dental*, Montage Amenities
Building*, and City Inventory**
75 kVA 208/120 3 $55,926.81
Lot 2 and 6 at Mill District* 150 kVA 208/120 2 $43,722.08 Lot 4 Mill District and City Inventory** 300 kVA 208/120 2 $53,056.84 TOTAL PURCHASE COST $152,705.73
*Development reimbursable projects and other City capital projects will cover the cost to purchase and install these transformers. Due to shifts in project timelines and/or project needs transformers and equipment may be reallocated to other projects. **Due to extended delivery times, the city maintains a stock of equipment to facilitate emergency repairs and/or unplanned replacements.

The new price exceeds the City Manager’s authority allowed under Healdsburg Municipal Code Section 3.24.055 (limited authority of up to $150,000). Due to the 6.3% increase cost, City staff recommends Council’s approval for the purchase of these transformers.

ENVIRONMENTAL STEWARDSHIP:

The purchase of these transformers will facilitate the completion of planned projects and support the reliability of the City’s electric system. These transformers were sourced with biodegradable, natural ester cooling oil made from seed oils. Natural ester cooling oils are safer and are a more sustainable alternative to the standard mineral oil found in many older transformers.

ALTERNATIVES:

As an alternative, the City Council could direct staff to cancel the purchase order and not purchase some or all of the transformers. Staff does not recommend this alternative as not purchasing these transformers would potentially result in delays in active development projects.

FISCAL IMPACT:

The inventory purchases proposed total $152,705.73. Of the total purchase price, $107,535.04 is necessary for ongoing development projects and $45,170.69 is necessary to maintain adequate levels of electric operating inventory. These costs will be incurred in the Electric Utility Funds and be supported by developer reimbursement agreements and rate revenues. The costs of purchasing and installing the equipment will be included in future operations and CIP budgets as appropriate.

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ENVIRONMENTAL ANALYSIS:

Pursuant to State CEQA Guidelines Section 15378(b) (2), continued administrative actions such as purchases for supplies do not constitute a “project” subject to the requirements of CEQA, therefore, no further environmental review is required.

ATTACHMENT(S):

Resolution

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CITY OF HEALDSBURG
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG APPROVING THE PURCHASE OF PADMOUNTED TRANSFORMERS AND DELEGATING

AUTHORITY TO THE CITY MANAGER TO SIGN A
PURCHASE ORDER FOR THE AMOUNT OF $152,705.73
WHEREAS, the City’s Electric Department frequently installs and replaces pad-mounted transformers to facilitate new developments as well as planned and unplanned replacements; and WHEREAS, to be responsive to developer timelines and maintain reliable electric service the City is required to purchase and maintain adequate levels of pad-mounted transformers within City inventories; and
WHEREAS, in February 2022, the City received bids for pad-mounted transformers and awarded a bet to WEG Transformers USA LLC (WEG) for the amount of $143,614.46; and WHEREAS, the forecasted timelines for development projects and emergency inventory require purchasing of transformers now to avoid project delays; and WHEREAS, due to long delivery times and volatility in raw material pricing, all transformer purchase agreements include the ability to adjust final pricing based upon changes in raw material pricing; and
WHEREAS, per the purchase agreement, WEG adjusted prices based upon changes in their raw material costs, increasing the purchase price by 6.3% to the amount of $152,705.73; and WHEREAS, the new amount exceeds the City Manager’s authority under current Healdsburg Municipal Code, requiring action by the City Council; and WHEREAS, pursuant to State CEQA Guidelines Section 15378(b) (2), continued administrative actions, such as purchases of supplies, do not constitute a “project” subject to the requirements of CEQA, therefore, no further environmental review is required.

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

1. Find that pursuant to State CEQA Guidelines Section 15378(b) (2), continued administrative actions, such as purchases of supplies, do not constitute a “project” subject to the requirements of CEQA, therefore, no further environmental review is required.

2. Delegate authority to the City Manager to approve the purchase of three-phase, pad-mounted transformers for an amount of $152,705.73.

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Packet Pg. 237 Attachment: Resolution (4458 : Distribution Transformer Purchase) Resolution No. -2024

PASSED, APPROVED AND ADOPTED, this 6th day of May 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. 238 Attachment: Resolution (4458 : Distribution Transformer Purchase)

CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: May 6, 2024
SUBJECT: Consider Adoption of Updated Water and Wastewater Rates for Fiscal Years 2024-25, 2025-26 and 2026-27
PREPARED BY: Terry Crowley, Utilities Director
STRATEGIC INITIATIVE(S):

Maintain and Improve Infrastructure and Facilities
Maintain and Enhance Public Health and Safety
Provide Resident-Driven Community Services
RECOMMENDED ACTION(S):

1. Conduct a public hearing in accordance with Proposition 218 for the proposed changes to the water and wastewater rates; and

2. Introduce for first reading, by title only, waiving further reading of the text, an ordinance determining that there was no majority protest of the proposed water and wastewater services rates, approving updated water and wastewater services rates, and superseding portions of the existing rates established by Resolution No. 96-2022.

COMMUNITY ENGAGEMENT/OUTREACH:

In October of 2023 the City Council approved a professional services agreement to update water and wastewater rates due to revenues falling well below the forecasted amounts. In February of 2024 staff and the City’s consultant presented the City Council with preliminary financial forecasts and potential rate increases. On March 18th an additional meeting provided further information requested by the City Council and another opportunity for public feedback. Upon the conclusion of the March agenda item, the City Council directed staff to begin the Proposition 218 balloting process to adjust rates. Notices were mailed to all property owners and water and wastewater customers, in both Spanish and English, on or before March 22, 2024.

BACKGROUND:

In June of 2022 the City Council approved a series of new water and wastewater rates. These rates were intended to cover operating costs and fund necessary capital improvement projects.

However, ongoing conservation stemming from the recent drought resulted in reduced sales and revenues necessary to operate both the Water and Wastewater departments. Although

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conservation is desirable, the variance between projected and actual usage created a financial imbalance for the funds. Over the last two fiscal years, staff have proposed and the City Council has adopted several budget reductions to both the Water and Wastewater fund in an effort to reduce costs and support fiscal responsibility, including reductions in operational expenses and deferral of capital projects. Despite these changes, both funds remain structurally imbalanced, threatening the City’s ability to provide critical water and sewer services to City residences. To correct this, staff recommended, and the City Council approved a professional service agreement with Raftelis Financial Consultants, Inc. (Raftelis) to review and update the financial outlook for the water and wastewater departments along with proposed rate corrections.

On February 5, 2024, and March 18, 2024, City staff and Raftelis presented an updated financial outlook, a revised capital improvement plan, and proposed rate structures to recover the costs necessary to provide water and wastewater services. As part of this process, staff further scrutinized operational budgets for savings and carefully prioritized outstanding capital projects.

The findings indicated that rate increases for both water and wastewater services are necessary to not only cover basic operating costs and bond covenants but to also fund new regulatory obligations and the replacement of aging infrastructure.

The new proposed rates included updated monthly fixed fees for all customers, three tiers for residential customers, and the establishment of various per unit fees for each customer class. The new rate structures are intended to fund basic operations, meet bond covenant requirements, fund critical capital improvement projects, and support funding to lessen the City’s reliance on the Russian River.

DISCUSSION/ANALYSIS:

The table below shows the forecasted revenue requirement, expenses by category and the overall proposed rate increases. These expenditures include operational costs, sufficient revenue to meet bond covenants, capital improvements, and funding for improved water supply security.

Water fund forecasted revenue, expenditures, and overall rate increases.

Effective Date FY 2024-25 FY 2025-26 FY 2026-27
Operating & Maintenance $5,247,953 $5,506,084 $5,774,793 Debt Service $779,894 $784,515 $632,022
Capital Improvements $1,404,571 $1,458,834 $4,097,434
Total Costs $7,432,418 $7,749,433 $10,504,249
Revenue Adjustment 21.0% 20.0% 13.0%
Wastewater fund forecasted revenue, expenditures, and overall rate increases.

Effective Date FY 2024-25 FY 2025-26 FY 2026-27
Operating & Maintenance $6,719,022 $7,045,209 $7,381,809 Debt Service $1,794,750 $1,791,250 $1,795,750
Capital Improvements $1,160,094 $2,333,129 $3,391,373
Total Costs $9,673,867 $11,169,588 $12,568,931
Revenue Adjustment 18.0% 18.0% 15.0%

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Proposed Rates
Included in the proposed rates are structural changes for both water and wastewater. As proposed, residential monthly fixed fees for water customers will be set by the metered connection size rather than the number of dwellings per meter. Additionally, per unit water charges will be based upon customer class (residential, commercial, industrial, landscape) and residential customers will include three increasing tiers. For wastewater, monthly fixed fees will remove the combined charge for single-family dwellings (SFD) with accessory dwelling units (ADU) and treat SFD with ADU as multi-family residential (MFR). The tables below, which are also included in the executive summary, show the proposed monthly and per-unit rates for water and wastewater services over the next three fiscal years.

Proposed Three-Year Water Rate Schedule (Executive Summary Table 1-3) Description Current FY 2025 FY 2026 FY 2027
Residential Fixed Monthly Service Charge
Single Family $28.61 By Meter
Size
By Meter
Size
By Meter
Size
Single Family + ADU (per DU) $21.84 By Meter
Size
By Meter
Size
By Meter
Size
Multi-Family (Per DU) $17.01 By Meter
Size
By Meter
Size
By Meter
Size
Fixed Monthly Service Charges
Up to 1” $45.26 $41.34 $49.61 $56.06
1 ½” $45.26 $41.34 $49.61 $56.06
2” $86.90 $77.94 $93.53 $105.69
3” $136.86 $121.86 $146.24 $165.26
4” $253.46 $238.98 $286.78 $324.07
6” $419.91 $370.75 $444.90 $502.74
Residential (Single Family & Multi-Family)
Tier 1 (0-5 HCF) $6.48 $6.48 $7.78 $8.80
Tier 2 (6-10 HCF) $6.48 $8.41 $10.10 $11.42
Tier 3 >10 HCF $6.48 $10.80 $12.96 $14.65
Non-Residential Classes
Commercial $6.48 $7.61 $9.14 $10.33
Industrial $6.48 $9.49 $11.39 $12.88
Landscape $6.48 $11.06 $13.28 $15.01
Riverview HOA1$1.59 $1.93 $2.32 $2.63
1 Rate applicable to Riverview HOA under the terms of the 1997 order of condemnation

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Proposed Three-Year Wastewater Rate Schedule (Executive Summary Table 1-5) Description Current FY 2025 FY 2026 FY 2027
Residential Service Charges ($/Month/Dwelling Unit)
Single Family Residential (SFR) $46.67 $51.33 $60.57 $69.66 SFR + ADU $31.95 N/A N/A N/A
Multi-Family Residential (MFR) $37.80 $36.94 $43.60 $50.14 Flat Rate (Sewer Only SFR) $104.01 $106.21 $125.34 $144.15 Non-Residential Service Charges
($/Month/Meter)
5/8” $75.75 $83.88 $98.99 $113.84
1” $75.75 $83.88 $98.99 $113.84
1 ½” $148.49 $243.37 $287.18 $330.26
2” $235.77 $396.68 $468.09 $538.31
3” $439.44 $1,279.52 $1,509.84 $1,736.32
4” $730.39 $1,405.05 $1,657.97 $1,906.67
6” $1,966.94 $1,405.05 $1,657.97 $1,906.67
Wastewater Usage Charges ($/HCF)
Residential (SFR/MFR) $11.47 $14.71 $17.37 $19.98
Non-Residential
Low Strength $10.31 $11.43 $13.49 $15.52
Medium Strength $15.09 $15.21 $17.95 $20.65
High Strength $22.08 $21.08 $24.88 $28.62
Funded and Deferred Capital Improvement Projects
Due to aging underground infrastructure and new regulatory requirements staff is recommending, and the proposed rates include funding for critical capital improvement and replacement projects. Major funded projects include improved filtration of the City’s drinking water to eliminate cryptosporidium (a parasite found in surface waters) and to improve the City’s water supply security by increasing our ability to pump water from Dry Creek and Lake Sonoma.

Several capital replacement projects totaling roughly $27.5 million were deferred. The table below summarizes both the major funded projects and the major deferred projects.

Included In Proposed Rates ($13.9 million) Deferred Projects ($27.5 million) Dry Creek Cryptosporidium Filtration – Water Fitch Well Field Cryptosporidium Filtration – Water
Dry Creek Pumping & Clear Well
Improvements – Water
Dry Creek Well Capacity Improvements –
Water
Gauntlett Reservoir Liner Replacement –
Water
Gauntlett WTP Membrane Replacements –
Water
Healdsburg Ave Utility Replacement - Water
& Wastewater
Gauntlett Reservoir Membrane Replacements –
Water
Brown Street Sewer & Water Replacement – Fitch Treatment Modernization – Water

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Water & Wastewater
University Street Sewer & Water Rpl. – Water
& Wastewater
PFAS removal – Water (TBD by 2024/25 test
results)
Orchard Lift Station Rehabilitation –
Wastewater
Gauntlett and Fitch Pipeline Rehab – Water
Healdsburg Ave Sewer Replacement -
Wastewater
McDonough Watermain Replacement – Water
& Wastewater
Water Reclamation Facility Membrane
Replacement – Wastewater
Heron Lift Station Relocation – Wastewater
Magnolia List Station Rehabilitation –
Wastewater
Hendricks Lift Station Conversion –
Wastewater
Inflow & Infiltration Repairs – Wastewater
Residential Bill Impacts
The forecasted costs and increases shown are necessary to provide reliable water and wastewater services. While the overall rate increases are shown in the tables further above, impacts on individual users and differing classes of customers can vary. Included within the executive summary and in the charts below are rate impacts to typical water and wastewater customers. For the average water and wastewater users (5HCF of water and 4HCF of wastewater) the combined rate increase is roughly $30 per month.

Monthly Water Bill Impacts for typical Single-Family residential usage (FY 2024-25)

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Monthly Wastewater Bill Impacts for typical Single-Family usage (FY 2024-25) Unique to Healdsburg is the ownership of a publicly owned electric utility. Over the years the City’s electric utility has provided better reliability at a lower cost than available outside City limits. Currently the City’s electric rates are roughly half those of PG&E resulting in citywide savings of over $19 million annually. While rate increases in water and wastewater are an unwelcome necessity, energy cost savings for Healdsburg’s residential and commercial customers outweigh the proposed increases. For example, the typical residential home using 300 kilowatt-hours per month will save roughly $75 a month, creating an overall utility bill (water, sewer, and electric) that’s lower than other surrounding cities.

Rate Implementation
During the City Council’s May 6, 2024 regularly scheduled meeting, a public hearing will be held starting at or after 6:00pm allowing the City Council to receive public input on the recommended water and wastewater rate increases. As required by Proposition 218, public hearing notices were mailed to all City property owners 45 days prior to the public hearing.

Absent a majority protest on the proposed rates, as tallied during the May 6, 2024 public hearing, the City Council can adopt the proposed water and wastewater rates. Should the City Council choose to adopt the proposed rates, new rates will be applied to the July 2024 usage and be reflected on the August 2024 utility bill.

The California Business Roundtable is sponsoring a statewide initiative entitled the Taxpayer Protection and Government Accountability Act (TPGAA), which is currently scheduled to appear on the November 2024 ballot. If approved, the TPGAA will impose several new limitations on local governments’ imposition of taxes and fees, which will apply retroactively to any taxes, fees, or charges adopted after January 1, 2022. If adopted, the TPGAA’s new restrictions will apply to the City’s adoption of the proposed residential water and wastewater

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rate updates.

Under current law, fees and rates for water and wastewater services may be adopted by either ordinance or resolution. Sections 13.12.180 and 13.20.130 of the City’s Municipal Code authorize the City to set water and wastewater rates by resolution. If the TPGAA is approved, it will require new fees or rates to, retroactive to January 1, 2022, be adopted by ordinance, specifying the type of exempt charge and the amount or rate of the exempt charge to be imposed.

By adopting the proposed rates by ordinance, the City is complying with both the TPGAA (in advance of its potential approval) and the City’s Municipal Code by adopting the rates by uncodified ordinance, which specifies that future rates may be adopted by ordinance or resolution. This way, if the TPGAA is adopted, the City can adopt future rates by ordinance, and if the TPGAA is not adopted, the City can resume its prior practice of adopting rates by resolution.

ENVIRONMENTAL STEWARDSHIP:

Continued adequate funding for both the water and wastewater departments allows these activities to work within existing and future environmental regulations. The proper treatment of drinking water along with the proper collection and treatment of the City’s wastewater helps ensure the responsible use of natural water resources and that the City’s waste will not pollute the local creeks and rivers.

ALTERNATIVES:

As an alternative the City Council could choose not to adopt the proposed rates and provide further direction to staff. Due to existing structural deficits and needed funding for capital improvements staff does not recommend this option.

FISCAL IMPACT:

Due to lower-than-expected customer usage, both the Water and Wastewater departments are experiencing budget shortfalls that are not sustainable. Staff and the City Council have eliminated many capital improvement projects and lowered necessary operating costs where possible to continue operations under the current rate structure. However, the prepared financial outlook identifies that revenue adjustments are needed to correct budget shortfalls, meet bond covenants, meet reserve policies, and fund necessary capital improvement projects. The proposed rates will correct the structural deficit and place the City on a path to fund critical capital improvement projects.

ENVIRONMENTAL ANALYSIS:

A utility rate is not subject to the provisions of the California Environmental Quality Act (CEQA) because a rate study and/or increase is not a project as defined in CEQA Guidelines section 15378, since it will not have a direct or reasonably foreseeable indirect impact on the environment.

ATTACHMENT(S):

Ordinance
Executive Summary
Healdsburg Rate Study Report

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4888-6324-5708 v1

CITY OF HEALDSBURG
ORDINANCE NO. _____

AN UNCODIFIED ORDINANCE OF THE CITY COUNCIL OF

THE CITY OF HEALDSBURG ADOPTING WATER AND
WASTEWATER RATES FOR FISCAL YEARS 2024-25, 2025-
26, AND 2026-27
WHEREAS, Healdsburg Municipal Code Section 13.20.180 and 13.20.130 authorize the City Council to set and impose rates, by resolution, for water and wastewater services rendered by the City of Healdsburg (“City”); and
WHEREAS, the City Council may adopt any fee or charge by ordinance if it is permitted to adopt the fee or charge by resolution; and
WHEREAS, the water and wastewater services rates currently applied to City customers were last updated by Resolution No. 96-2022 adopted by City Council on June 21, 2022; and WHEREAS, the City hired Raftelis, Inc (“Raftelis”) to review the City’s water and wastewater rates to determine whether they adequately recover ongoing costs to provide these services and support needed capital improvements; and
WHEREAS, Raftelis submitted a Water and Wastewater Cost of Service and Rate Design, dated March 22, 2024 (“Rate Study”), which recommends revised water and wastewater rate schedules for Fiscal Years 2024-25, 2025-26, and 2026-27. The Rate Study is attached hereto as Exhibit A and hereby incorporated by reference; and
WHEREAS, the City Council finds and determines that, based on the entire record before the City Council, including but not limited to the Rate Study and the Staff Report and attachments thereto:
(1) Revenues derived from the proposed rates will not exceed the costs required to provide water and wastewater service, respectively.
(2) Revenues derived from the proposed water and wastewater rates will not be used for any purpose other than that for which they were imposed. (3) The amount of the rates imposed upon any parcel or person as an incident of property ownership will not exceed the proportionate cost of the service attributable to the parcel. (4) The rates are imposed for a service or services that are actually used by, or immediately available to, the owner of the property in question.
(5) The rates are not being imposed for, nor will they contribute to, general government services; and
WHEREAS, pursuant to the provisions of Article XIII D, Section 6, of the California Constitution (“Proposition 218”), prior to extending, imposing or increasing water and wastewater rates, property owners shall be provided at least 45 days’ notice of a public hearing to consider such modifications to water and wastewater rates together with an explanation of:

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(1) the amount of the proposed rates, (2) the basis on which the rates are calculated, (3) the reason for the rate modifications, and (4) the date, time and place of a public hearing to consider the rate modifications, together with an explanation of the rights of property owners to submit written protests to the proposed rate modifications. The proposed rate modifications may not be imposed if, prior to the close of the public hearing, written protests are submitted by a majority of the parcels subject to the modified rates (“majority protest”); and WHEREAS, notice of the public hearing to consider proposed adjustments to the water and wastewater rates was mailed to property owners of record and customers of record in accordance with Proposition 218; and
WHEREAS, on May 6, 2024, the City Council conducted a public hearing, considered testimony, and at the conclusion of the hearing determined that a majority protest did not exist; and
WHEREAS, the Rate Study recommends transitioning the existing capital reserve policy to a rate stabilization policy, eliminating the earmarking of reserves for specific capital purposes, and instead utilizing the capital reserve to complete preemptive capital replacement and fund maintenance costs in a manner that stabilizes rates; and WHEREAS, the mailed notice of public hearing included a statement that there is a 120- day statute of limitations for challenging the water and wastewater rates should the proposed water or wastewater rates be adopted; and
WHEREAS, the water and wastewater rates are “exempt charges,” within the meaning of Section 1 of Article XIII C of the California Constitution and the proposed Taxpayer Protection and Government Accountability Act (Initiative No. 21-0042) because they are charges that are imposed in accordance with and subject to Article XIII D of the California Constitution; and

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF HEALDSBURG DOES ORDAIN AS FOLLOWS:

Section 1. The above recitals are true and correct, and incorporated herein by reference and each is relied upon independently by the City Council for its adoption of the Ordinance.

Section 2. The City Council finds that the adoption of this Ordinance is not considered a project under Public Resources Code Section 21065 and California Environmental Quality Act (“CEQA”) Guidelines Section 15378 because the Ordinance does not have the potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, as the Ordinance creates government funding mechanisms which do not involve any commitment to any specific project. The Ordinance is also exempt from CEQA as there is no possibility for causing a significant effect on the environment, per CEQA Guideline Section 15061(b)(3). No specific water or wastewater projects are associated with this

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Ordinance. The Ordinance is policy-oriented and would create a funding mechanism for the development of future water or wastewater facilities. When and if specific water or wastewater projects are developed and proposed for implementation, the environmental impacts of such facilities would be evaluated in accordance with CEQA and City practice.

Section 4. The procedures followed and the water and wastewater rates referenced herein are in compliance with the California Constitution Article XIII D and Government Code section 53755.

Section 5. The City Council adopts the water and wastewater rate schedules in Exhibit B attached hereto and incorporated herein by this reference. These rates shall supersede previously adopted water and wastewater rates, with the exception of previously adopted Water Shortage Rate Surcharges.

Section 6. The City Council approves and adopts the Rate Study attached hereto as Exhibit A, which sets forth the basis for the water and wastewater rates.

Section 7. The water and wastewater rates, set forth in Exhibit B, may be amended from time to time by ordinance or resolution of the City Council.

Section 8. The City Council approves and adopts a reserve target for both the Water and Wastewater enterprises at the amount of revenue needed to sustain a 90-day operating reserve plus an additional one-million dollars, for each enterprise, to be used as a rate stabilization reserve.

Section 9. If any provision, section, paragraph, sentence or word of this Ordinance, or the application thereof to any person or circumstance, is rendered or declared invalid by any court of competent jurisdiction, the remaining provisions, sections, paragraphs, sentences or words of this Ordinance, and their application to other persons or circumstances, shall not be affected thereby and shall remain in full force and effect and, to that end, the provisions of this Ordinance are severable.

Section 10. This Ordinance shall become effective thirty days after the date of its adoption.

Section 11. The City Clerk is directed to cause this Ordinance to be published in the manner required by law.

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INTRODUCED by the City Council of the City of the Healdsburg on the 6th day of May, 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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EXHIBIT B – WATER AND WASTEWATER USAGE FEES ORDINANCE
WATER RATES:

A. For the purposes of this imposition of the water rate schedule for Fiscal Years (FY) 2024- 2025, 2025-2026, and 2026-2027, the term:
1) “City Customer” shall mean any person, corporation, or other entity that receives City water services, regardless of whether City water services are provided to property within the City, or property outside the boundaries of the City. 2) “Single Family Residential” (SFR) means a single dwelling per parcel with sleeping and cooking facilities and intended for domestic use and in which the occupants live as a single housekeeping unit that is not part of a Multiple Dwelling. 3) “Multi-Family Residential” (MFR) means two or more residential dwelling units per parcel with sleeping and cooking facilities and intended for domestic use. 4) “Commercial” water service means any water service to a non-residential building or purpose, other than irrigation, with annual usage characteristics consistent with typical commercial use within the City of Healdsburg.
5) “Industrial” water service means any water service to a non-residential building or purpose, other than irrigation, that is classified as an irrigation use within the City’s billing system. Industrial customers generally have high annual peaking factors and significant average monthly water usage.
6) “Irrigation” water service means any dedicated water service that provides potable water solely for irrigation purposes, where none of the water consumed returns to the City’s sewer system.

B. Monthly Service Charges and Per Unit water rates are set as follows.

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Fixed Monthly Service Charges July 1, 2024 July 1, 2025 July 1, 2026 Up to 1-inch $41.34 $49.61 $56.06
1 ½-inch $77.94 $93.53 $105.69
2-inch $121.86 $146.24 $165.26
3-inch $238.98 $286.78 $324.07
4-inch $370.75 $444.90 $502.74
6-inch $736.76 $884.12 $999.06
Residential Usage Charge $/HCF
(SFR & MFR)
July 1, 2024 July 1, 2025 July 1, 2026
Tier-1 (0 to 5 HCF) $6.48 $7.78 $8.80
Tier-2 (over 5 up to 10 HCF) $8.41 $10.10 $11.42
Tier-3 (usage over 10 HCF) $10.80 $12.96 $14.65
Non-Residential Usage Charge by Classes
($/HCF)
July 1, 2024 July 1, 2025 July 1, 2026
Commercial $7.61 $9.14 $10.33
Industrial $9.49 $11.39 $12.88
Landscape $11.06 $13.28 $15.01
Riverview HOA $1.93 $2.32 $2.63
1) All volumetric rates are shown in terms of dollars per hundred cubic feet ($/HCF). 2) Tier-1 residential usage is up to the first 5 hundred cubic feet (HCF) of water per monthly billing period.
3) Tier-2 residential usage encompasses usage greater than 5 and up to and including 10 HCF per monthly billing period.
4) Tier-3 residential usage comprises all units of water usage exceeding 10 HCF per monthly billing period.
5) Tier usage allocations will be assigned based on the number of residential dwelling units served per metered water service connection. For example, a single water meter serving 4 dwelling units will be allocated four times the Tier-1 usage, then four times the Tier-2 usage, with all usage exceeding the Tier-1 and Tier-2 allocations billed at the Tier-3 rate. 6) The volumetric use charge applicable to Riverview HOA’s irrigation services is per terms of the 1997 order of condemnation.
7) At the conclusion of each calendar year, the City will re-evaluate usage patterns for nonresidential customers and re-assign annually, as necessary, customer classifications between commercial and industrial water services. The City’s Finance Director may adjust customer classifications to maintain accuracy in customer class assignments. The Finance Director’s determination in response to a reclassification request is final.

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WASTEWATER RATES:

A. For the purposes of this imposition of the wastewater rate schedule for Fiscal Years (FY) 2024-2025, 2025-2026, and 2026-2027, the term:
1) “City Customer” shall mean any person, corporation, or other entity that receives City wastewater services, regardless of whether City wastewater services are provided to property within the City, or property outside the boundaries of the City. 2) “Single Family Residential” means a single dwelling per parcel with sleeping and cooking facilities and intended for domestic use and in which the occupants live as a single housekeeping unit that is not part of a Multiple Dwelling. 3) “Multi-Family Residential” means two or more residential dwelling units per parcel with sleeping and cooking facilities and intended for domestic use. 4) “Average Winter Consumption” (AWC) or “Residential Seasonal Sewer Average” (SSA) is the 3-month average of residential metered water usage during the January, February, March, and April billing periods, with the highest of the four-month usage being omitted. This average will be calculated in May of each year and establish the yearlong wastewater usage for residential services.

B. Monthly Service Charges and per hundred cubic feet (HCF) of usage are set as follows.

Fixed Monthly Service Charges July 1, 2024 July 1, 2025 July 1, 2026 Single Family Residential (SFR) $51.33 $60.57 $69.66
Multi-Family Residential (MFR) $36.94 $43.60 $50.14
Flat Rate (sewer only SFR) $110.18 $130.02 $149.53
Non-Residential Service Charge
($/Month/Service)
July 1, 2024 July 1, 2025 July 1, 2026
Up to 1-inch $83.88 $98.99 $113.84
1½-inch $243.37 $287.18 $330.26
2-inch $396.68 $468.09 $538.31
3-inch $1,279.52 $1,509.84 $1,736.32
4-inch $1,405.05 $1,657.97 $1,906.67
6-inch $1,405.05 $1,657.97 $1,906.67
Wastewater Use Charges $/HCF July 1, 2024 July 1, 2025 July 1, 2026 Residential Usage Charge (SFR & MFR) $14.71 $17.37 $19.98 Non-Residential $/HCF
Low Strength $11.43 $13.49 $15.52
Medium Strength $15.21 $17.95 $20.65
High Strength $21.08 $24.88 $28.62

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Packet Pg. 252 Attachment: Ordinance (4264 : Public Hearing to adopt Water & Wastewater Rates) Ordinance No.

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1) All volumetric rates are shown in terms of dollars per hundred cubic feet ($/HCF). 2) All residential use charges are based upon their average winter consumption as calculated each May.
3) All non-residential use charges, where there is no dedicated wastewater flow meter, are based upon billed unit of water within the same monthly billing period. 4) Residential Flat Rate fees apply, per dwelling unit, to dwellings connected to the City’s sewer system without a City metered water service.
5) Non-Residential customers taking City wastewater services but not metered City water service will be assigned monthly fixed charges and usage fees based upon similar businesses.

C. Classification of Low, Medium, and High Strength Non-Residential Customers is per the table below.

Use Type Low Medium High
Auto repair / Service X
Bakery (production) X
Bar / Tavern / Cocktail Lounge (with prepackaged foods and snacks only)
X
Bar / Tavern / Cocktail Lounge (with food preparation or commercial kitchen)
X
Barber / Beauty salon X
Brewery, Distillery, and Beverage Production X
Coffee Shop (with prepackaged foods and snacks only) X
Cannabis Retail Dispensary (no production or processing) X Cannabis and CBD Processing X
Car wash X
Ceramics manufacturing X
Church / Lodge (no food preparation or commercial kitchen) X Church / Lodge (with food preparation or commercial kitchen) X Commercial kitchen (Including schools, catering, grange, meeting hall)
X
Community facility (without food preparation or commercial kitchen)
X
Community facility (with food preparation or commercial kitchen) X Creamery (production) X
Daycare Facility X
Food Manufacturing X
Gas station (no food preparation, snack bar, or commercial kitchen)
X
Gas station (with food preparation/snack bar) X

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Packet Pg. 253 Attachment: Ordinance (4264 : Public Hearing to adopt Water & Wastewater Rates) Ordinance No.

4888-6324-5708 v1
Gas Station (with commercial kitchen or restaurant) X
Grocery (without food preparation or commercial kitchen) X Grocery (with food preparation or commercial kitchen) X Health club / Spa (no food preparation or commercial kitchen) X Health club / Spa (with food preparation/snack bar) X
Hospital / Residential care facility (no food preparation or commercial kitchen)
X
Hospital / Residential care facility (with food preparation or commercial kitchen)
X
Hotel / Motel (with food preparation, commercial kitchen, or restaurant)
X
Hotel / Motel / Residential visitor lodging (no restaurant or commercial kitchen)
X
Ice cream / Frozen yogurt X
Laundromat / Dry cleaners X
Medical / Dental office X
Mortuary X
Movie theater (without food preparation or commercial kitchen) X Movie theater (with food preparation or commercial kitchen) X Office X
Park X
Print Shop X
Restaurant/Café X
Retail X
School (no commercial kitchen) X
School (with food preparation or commercial kitchen) X
Warehouse (dry storage) X
Wine tasting (with prepackaged foods and snacks only) X Wine tasting (with food preparation or commercial kitchen) X Winery (production) X
1) For business with wastewater discharges that do not fit within the generalized categories above, have significant pre-treatment of wastewater, or have routine and validated measurements of total suspended solids (TSS) and biochemical oxygen demand (BOD) the City Engineer will assign a wastewater strength classification with the issuance of an industrial discharge permit.

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Packet Pg. 254 Attachment: Ordinance (4264 : Public Hearing to adopt Water & Wastewater Rates) Water and Wastewater Rate Study
Executive Summary / March 15, 2024
C i t y o f H e a l d s b u r g

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Packet Pg. 255 Attachment: Executive Summary (4264 : Public Hearing to adopt Water & Wastewater Rates)

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Packet Pg. 256 Attachment: Executive Summary (4264 : Public Hearing to adopt Water & Wastewater Rates) 445 S Figueroa St, Suite 1925
Los Angeles CA 90071
www.raftelis.com
March 12, 2024
Mr. Terry Crowley
Public Works Director
City of Healdsburg
401 Grove Street
Healdsburg, CA 95448
Subject: Water and Wastewater Rate Study
Dear Mr. Crowley,
Raftelis is pleased to provide this Executive Summary of the Water and Wastewater Rate Study to the City of Healdsburg. The overall purpose of the study was to develop three years of proposed rates for the City’s Water and Wastewater Enterprises for implementation in Fiscal Year (FY) 2024-25 through FY 2026-27. The proposed utility rates were developed following industry standard rate methodologies and in conjunction with the City’s legal counsel to ensure that rates are fair, cost-justified, and aligned with the requirements of California’s Proposition 218.

The primary objectives of the study were to:
» Develop a long-range financial plan for both the City’s Water and Wastewater Enterprises to ensure financial sufficiency in recovering operating costs, funding long-term capital needs, and maintaining prudent reserves. » Conduct water and wastewater cost of service analyses to ensure a nexus between proposed rates and the cost to provide services to customers.
» Evaluate rate alternatives and proposed rate structure modifications to better align with community values and the City’s policy objectives
» Develop three years of water and wastewater rates in alignment with Proposition 218 requirements. » Document the details of the study within a Rate Study report, to support the City’s administrative record This Executive Summary outlines the study background, results, and recommendations related to the development of utility financial plans, cost of service analyses, and proposed rates. It has been a pleasure working with you and we thank you and other City staff for the support provided to Raftelis during this study.

Sincerely,
Kevin Kostiuk
Senior Manager

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Packet Pg. 257 Attachment: Executive Summary (4264 : Public Hearing to adopt Water & Wastewater Rates)

WATER AND WASTEWATER RATE STUDY
Table of Contents

1. EXECUTIVE SUMMARY .................................................................................................................9

1.1. Study Overview ................................................................................................................................9

1.2. Rate Study Process .........................................................................................................................9

1.3. Proposed Water Financial Plan ..................................................................................................... 10

1.4. Proposed Water Rates .................................................................................................................. 15

1.5. Water Bill Impacts ..........................................................................................................................18

1.6. Proposed Wastewater Financial Plan ............................................................................................18

1.7. Proposed Wastewater Rates .........................................................................................................23

1.8. Wastewater Bill Impacts ................................................................................................................ 25

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Packet Pg. 258 Attachment: Executive Summary (4264 : Public Hearing to adopt Water & Wastewater Rates) 5 CITY OF HEALDSBURG – WATER AND WASTEWATER RATE STUDY
List of Tables
Table 1-1: Proposed Water Revenue Adjustments ...................................................................................................10 Table 1-2: Current and Proposed Water Use Rate Structures ..................................................................................16 Table 1-3: Proposed Three-Year Water Rates Schedule ......................................................................................... 17 Table 1-4: Proposed Wastewater Revenue Adjustments ......................................................................................... 19 Table 1-5: Proposed Five-Year Wastewater Rate Schedule .................................................................................... 24

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Packet Pg. 259 Attachment: Executive Summary (4264 : Public Hearing to adopt Water & Wastewater Rates)

WATER AND WASTEWATER RATE STUDY
List of Figures
Figure 1-1: Water Enterprise Capital Improvement Plan .......................................................................................... 11 Figure 1-2: Water Enterprise Financial Plan - Proposed vs. Status Quo ..................................................................12 Figure 1-3: Water Enterprise Projected Ending Cash Balances ...............................................................................13 Figure 1-4: Water Enterprise Projected Debt Coverage ........................................................................................... 14 Figure 1-5: Single Family Residential Monthly Water Bill Impacts (FY 2024-25) ......................................................17 Figure 1-6: Wastewater Enterprise Capital Improvement Plan .................................................................................20 Figure 1-7: Wastewater Enterprise Financial Plan - Proposed vs. Status Quo .........................................................21 Figure 1-8: Wastewater Enterprise Projected Ending Cash Balances ......................................................................22 Figure 1-9: Wastewater Enterprise Projected Debt Coverage ..................................................................................23 Figure 1-10: Single Family Residential Monthly Wastewater Bill Impacts (FY 2024-25) .......................................... 257.A.b Packet Pg. 260 Attachment: Executive Summary (4264 : Public Hearing to adopt Water & Wastewater Rates) 7 CITY OF HEALDSBURG – WATER AND WASTEWATER RATE STUDY
List of Abbreviations
AF: Acre-feet
AFY: Acre-feet per year
AWC: Average Winter Consumption
AWWA: American Water Works Association
BOD: Biological Oxygen Demand
CIP: Capital Improvement Plan
City: City of Healdsburg
COS: Cost of Service
CPI: Consumer Price Index
FY: Fiscal Year
GPCD: Gallons per capita per day
GPM: Gallons per minute
HCF: One hundred cubic feet
K: Thousand
Lbs: Pounds
M: Million
Manual M1: American Water Works Association’s Principles of Water Rates, Fees, and Charges: Manual of Water Supply Practices - M1 Seventh Edition
Max Day: Maximum day water demand
Max Hour: Maximum hour water demand
MG: Million gallons
Mg/L: Milligrams per Liter
MGD: Million gallons per day
NPDES Permit: National Pollutant Discharge Elimination System Permit O&M: Operations and maintenance
PPM: Parts per million
R&R: Repair and replacement
RCLD: Replacement cost less depreciation
SS: Suspended Solids
Study Period: the rate-setting period of this study which extends through fiscal year 2026-27 WEF: Water Environment Federation
WWTP: Wastewater treatment plant

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Packet Pg. 261 Attachment: Executive Summary (4264 : Public Hearing to adopt Water & Wastewater Rates)

WATER AND WASTEWATER RATE STUDY
This page intentionally left blank to facilitate two-sided printing.

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Packet Pg. 262 Attachment: Executive Summary (4264 : Public Hearing to adopt Water & Wastewater Rates) 9 CITY OF HEALDSBURG – WATER AND WASTEWATER RATE STUDY

1.Executive Summary

1.1.Study Overview
Public water and wastewater utilities in California typically perform a Cost-of-Service analysis every three to five years to ensure that customers are appropriately charged for service commensurate with the cost to provide service.

The City of Healdsburg last conducted a water and wastewater cost of service study in 2022, which established proposed rates over a five-year period. However, the study did not anticipate recent historic inflation and the significant and sustained water conservation seen through the end of 2022 and into 2023. The City of Healdsburg (City) engaged Raftelis to conduct a water and wastewater cost of service study to develop a long-range financial plan and establish a proposed three-year schedule of water and wastewater rates through FY 2026-27. Note that proposed rates cannot be implemented until formally adopted by City Council after a public hearing, and absent a majority protest by parcels served by the City. Proposition 218 requires that City customers be mailed a public hearing notice detailing proposed rate changes no fewer than 45 days before the public hearing.

The major objectives of this study are to:
» Develop a long-range financial plan for both the City’s Water and Wastewater Enterprises to ensure financial sufficiency in recovering operating costs, funding long-term capital needs, and maintaining prudent reserves. » Conduct water and wastewater cost of service analyses to ensure a nexus between proposed rates and the cost to provide services to customers.
» Evaluate rate alternatives and proposed rate structure modifications to better align with community values and the City’s policy objectives
» Develop three years of water and wastewater rates in alignment with Proposition 218 requirements. » Document the details of the study within a Rate Study report, to support the City’s administrative record

1.2.Rate Study Process
This study was conducted using industry-standard principles outlined by the American Water Works Association’s (AWWA) Manual M1 and the Water Environment Federation’s (WEF) Financing and Charges for Wastewater Systems . The overall process outlined below applies to the development of both water and wastewater rates.

1. Financial Plan: Develop cash flow projections for the Water and Wastewater Enterprise to determine the amount of revenue required from water and wastewater rates.

2. Cost of Service Analysis: Allocate costs to system components and then to various customer classes based on the costs incurred and user characteristics of each.

3. Rate Design: Develop rates that generate sufficient revenues based on the results of the financial plan and cost of service analyses and that communicate the policy preferences of the agency, maintaining that rates are cost-justified.

4. Administrative Record Preparation: Develop an administrative record (Study report) to document the results of the rate study.

5. Rate Adoption: Proposed rates may be adopted by City Council only after holding a public hearing in accordance with the procedural requirements of Proposition 218.

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Packet Pg. 263 Attachment: Executive Summary (4264 : Public Hearing to adopt Water & Wastewater Rates) 10 CITY OF HEALDSBURG – WATER AND WASTEWATER RATE STUDY

1.3.Proposed Water Financial Plan
Raftelis conducted a status quo cash flow analysis to evaluate whether existing water rates adequately fund the Water Enterprise’s various expenses over a long-range planning period. Annual projections of revenues, O&M costs, debt service payments, and capital expenditures through FY 2032-33 were developed with City staff. Raftelis projects that with no rate increases over the five-year study period, the Water Enterprise’s reserves will quickly turn negative and fail to meet minimum debt coverage requirements in all years. This analysis demonstrates a clear need for revenue adjustments (i.e. gross water rate revenue increases relative to existing rate revenues). Raftelis worked with City staff to develop the following proposed revenue adjustments over the five-year study period, with proposed rates for adoption for the first three years only (see Table 1-1).

The proposed rates are predicated on a shift in reserve policy outlined in the previous rate study. Failure to adopt the recommended changes may result in higher projected rates to adhere to the existing minimum coverage requirement. Raftelis recommends transitioning from a capital reserve policy to a rate stabilization policy to streamline the approach, eliminating the earmarking of reserves for specific capital purposes and instead utilizing them to support rates. As part of this transition, the City would allocate a portion of the reserve to offset increases over the next three fiscal years. Furthermore, it's recommended that the subsequent study addresses the funding of the million-dollar reserve dedicated to rate stabilization that could also address major equipment failures and natural disasters.

Table 1-1: Proposed Water Revenue Adjustments

PROPOSED INCREASE FUTURE INCREASES
Fiscal Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Effective Date July 1, 2024 July 1, 2025 July 1, 2026 July 1, 2027 July 1, 2028 Revenue Adjustment 21.0% 20.0% 13.0% 12.0% 12.0%
Key factors influencing the need for proposed revenue adjustments include:
» Cost inflation: Operating costs continue to increase year over year due to general inflationary pressures with higher increases projected for power, labor, and water supply. » Reduction in baseline water demand: Following two multi-year droughts and associated mandatory conservation and messaging, the City has continued to experience lower overall water consumption relative to historical demands. While conservation is necessary in ensuring reliable long-term water supplies, utility costs must be recovered and reduced water demands generally mean increased rate pressure.
» Planned capital expenditures: Adjusted for inflation, the Water Enterprise has over $28 M in planned CIP in the next five years. Many projects in the long-term capital plan have been deferred in prior studies due to financial constraints. Continued deferral will challenge overall system reliability and cause larger future rate increases. The City’s utilities have a combined 120 miles of utility pipeline, and a third of those pipes are over 50 years old, resulting in an average of two water service repairs per week. Rate revenues need to be sufficient to execute these projects with cash, future external borrowing (debt proceeds), or a combination of the two. Additionally, the City is facing increasing regulatory mandates to improve water filtration. These mandates include filtering for cryptosporidium and the potential treatment of Per- and Polyfluorinated Substances (PFAS) which requires additional CIP investment. » Cash reserves: Utilities must have sufficient cash on hand to provide for working capital (paying routine expenses), to mitigate fluctuations in costs, and to mitigate risk, whether from seasonality of revenues and

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Packet Pg. 264 Attachment: Executive Summary (4264 : Public Hearing to adopt Water & Wastewater Rates) 11 CITY OF HEALDSBURG – WATER AND WASTEWATER RATE STUDY expenses or the risk that comes with providing services that rely on extensive and specialized infrastructure. Recent inflationary pressure coupled with declines in water sales revenues has resulted in a drawdown of operating reserves. Revenue adjustments will help to ensure that the Water Enterprise can maintain minimum operating reserve policy targets to provide sufficient cash flow and mitigate system risk.
» Debt Coverage: The Water Enterprise fund has debt service coverage requirements as a condition of past external borrowing. Proposed rates ensure the Water Enterprise can achieve coverage on existing debt and have sufficient capacity to qualify for future credit extensions.

In this Study, wastewater rates are proposed for adoption for the first three fiscal years (FY25-FY27) only.

However, Raftelis developed a long-range financial plan to project revenues and expenses over a 10-year period (current fiscal year through FY 2033). For planning purposes and to provide full transparency on the trajectory of future revenue increases, the following figures present 10 years of projections. In addition to the three years of proposed changes and two years of future changes (five years total) shown in Table 1-4, an additional four years of future projected increases for wastewater are required to fully recover projected operating and capital costs, maintain debt service coverage above minimum, and maintain operating cash reserves above minimum levels during the 10 year financial planning period. Specifically, these outer year future increases are 5% in FY 2030 and

3.5% in FY 2031-2033. These projections will be revisited as part of future rate studies and are subject to change based on new information, changes in revenues and expenses, City policies, and regulatory requirements.

However, if the predicted future rate increase are not adopted and timely implemented, then cash flows will likely be less than currently depicted.

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Packet Pg. 265 Attachment: Executive Summary (4264 : Public Hearing to adopt Water & Wastewater Rates) 12 CITY OF HEALDSBURG – WATER AND WASTEWATER RATE STUDY Figure 1-1 shows the proposed CIP financing plan over the long-range planning period. The City intends to fund future CIP costs through a combination of cash and future debt proceeds. Future debt proceeds are for planning purposes only and would only be required if the City is required to expend funds on a series of projects related to PFAS.

Figure 1-1: Water Enterprise Capital Improvement Plan

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Packet Pg. 266 Attachment: Executive Summary (4264 : Public Hearing to adopt Water & Wastewater Rates) 13 CITY OF HEALDSBURG – WATER AND WASTEWATER RATE STUDY Figure 1-2 shows the proposed versus status quo Water Enterprise operating financial plan. Revenues under the proposed financial plan and status quo financial plan are represented by the black and blue lines, respectively.

Revenue requirements including O&M expenses, debt service, and cash reserve funding (including for CIP) are represented by the various stacked bars. Revenue adjustments (i.e., gross rate revenue increases) are required to generate additional revenue to fully recover O&M expenses, CIP expenditures, debt service payments, and reserve funding over the study period.

Figure 1-2: Water Enterprise Financial Plan - Proposed vs. Status Quo

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Packet Pg. 267 Attachment: Executive Summary (4264 : Public Hearing to adopt Water & Wastewater Rates) 14 CITY OF HEALDSBURG – WATER AND WASTEWATER RATE STUDY Figure 1-3 shows the Water Enterprise’s projected fiscal year-end cash balance under the proposed financial plan.

The light blue bars indicate the ending balance on June 30 of each year. The minimum operating reserve target is represented by the orange line. The minimum operating reserve is 90 days of operating expenses (including O&M and debt service). The proposed revenue increases shown in Table 1-1 will allow the City to increase operating reserve funding beginning in FY 2024-25, such that the City’s operating reserve funding will meet its minimum reserve requirement throughout the long-range planning period.

Figure 1-3: Water Enterprise Projected Ending Cash Balances

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Packet Pg. 268 Attachment: Executive Summary (4264 : Public Hearing to adopt Water & Wastewater Rates) 15 CITY OF HEALDSBURG – WATER AND WASTEWATER RATE STUDY Figure 1-4 shows projected debt coverage (blue line) relative to the debt coverage minimum requirement (gray line) over the planning period. Debt coverage will increase significantly with the proposed revenue increases shown in Table 1-1. The proposed rate increases will allow the City to meet its minimum debt coverage requirement throughout the study period while planning to borrow for future projects. Failure to meet minimum debt service coverage minimums could result in a downgrade of credit rating, higher costs of future borrowing, or even denial of credit.

Figure 1-4: Water Enterprise Projected Debt Coverage

1.4.Proposed Water Rates
The City of Healdsburg’s existing water rate structure consists of fixed Water Service Charges (based on meter size or dwelling units) and variable Water Volume Rates (per hundred cubic feet [HCF] of water delivered). Raftelis worked closely with City staff and the City’s legal counsel to evaluate potential changes to the existing water rate structure. The following changes are proposed:
» Water Use Rates
o Residential Tiered Water Rates: The Study recommends that the City introduce a three-tiered rate structure for Residential water customers including Single-Family Residential (SFR) and Multi-Family Residential (MFR). MFR customers will receive tier allotments for each dwelling unit served. Tier 1 is defined as the first first 5 units of water (HCF) per monthly billing period, reflecting average winter usage (January -March) for SFR customer rounded up to the nearest whole number. Tier 2 encompasses usage greater than 5 units and less than 10 HCF, representing

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Packet Pg. 269 Attachment: Executive Summary (4264 : Public Hearing to adopt Water & Wastewater Rates) 16 CITY OF HEALDSBURG – WATER AND WASTEWATER RATE STUDY summer peak (75th percentile in the July – September periods) demands of SFR customers rounded up to the nearest whole number. Tier 3 comprises of all units of water usage exceeding 10 HCF.

Residential users are a homogenous customer class with similar indoor needs for health and sanitation, similar outdoor irrigation needs, and similar seasonality in these demand patterns. It is therefore appropriate to tier this class of customers. The proposed monthly allotments for residential customers are shown below in Table 1-2 and reflect actual demand patterns of City water users. Note that non-residential customers will maintain a uniform rate structure. o All Other Classes: The Study recommends that all other customer classes maintain a uniform rate structure, however, going forward each class will have a distinct uniform rate based on their specific demand characteristics. The new rates by customer class include those customers designated as Commercial, Industrial, and Landscape Irrigation. Non-residential classes have highly varying demand patterns within each class based on the type of business, seasonality, and/or transient effects. Peaking costs, also referred to as extra capacity costs, are costs associated with higher demand patterns. These costs are allocated to each customer class based on their specific class demand patterns and calculating peaking. For this reason, uniform rates are proposed for each of the non-residential classes.
» Monthly Service Charges: The Study recommends harmonizing the fixed service charges across user classes. This change will align Residential customers with a metered connection of a specific size with Non-Residential customers with the same size meter. The proposed structure relies on meter size alone to distinguish the “class” of customer. This change acknowledges that meter capacity, not customer classification, reflects the best estimate of the costs imposed by a user on the water system that are recovered through fixed charges.

Table 1-2: Current and Proposed Water Use Rate Structures Description Current Structure Proposed Structure
Residential (SFR/MFR)
Tier 1 Uniform Water Use Rate
(All Classes)
0-5 HCF
Tier 2 Uniform Water Use Rate
(All Classes)
6-10 HCF
Tier 3 Uniform Water Use Rate
(All Classes)
>10 HCF
Non-Residential Classes
Commercial Uniform Water Use Rate
(All Classes)
Uniform Water Use Rate,
by Class
Industrial Uniform Water Use Rate
(All Classes)
Uniform Water Use Rate,
by Class
Landscape Irrigation Uniform Water Use Rate
(All Classes)
Uniform Water Use Rate,
by Class

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Packet Pg. 270 Attachment: Executive Summary (4264 : Public Hearing to adopt Water & Wastewater Rates) 17 CITY OF HEALDSBURG – WATER AND WASTEWATER RATE STUDY 1 Only the volumetric rate applicable to Riverview HOA under the terms of the 1997 order of condemnation. HOA Riverview pays a fixed monthly service charge by meter size that increases based schedule.

Table 1-3 the shows the three years of proposed Water Service Charges and Water Volume Rates (through FY 2026-27). All charges and tier allotments are shown in monthly terms and all rates are rounded up to the nearest penny. All volumetric rates are shown in terms of dollars per hundred cubic feet ($/HCF). All rates are assumed to be implemented at the beginning of each fiscal year and in effect on or after July 1.

Table 1-3: Proposed Three-Year Water Rates Schedule
Description Current FY 2025 FY 2026 FY 2027
Residential Fixed Monthly Service Charge
Single Family $28.61 By Meter Size By Meter Size By Meter Size Single Family + ADU (per DU) $21.84 By Meter Size By Meter Size By Meter Size Multi-Family (Per DU) $17.01 By Meter Size By Meter Size By Meter Size Fixed Monthly Service Charges
Up to 1" $45.26 $41.34 $49.61 $56.06
1 1/2" $86.90 $77.94 $93.53 $105.69
2" $136.86 $121.86 $146.24 $165.26
3" $253.46 $238.98 $286.78 $324.07
4" $419.91 $370.75 $444.90 $502.74
6" $1,127.75 $736.76 $884.12 $999.06
Residential (Single Family & Multi-Family)
Tier 1 (0-5 HCF) $6.48 $6.48 $7.78 $8.80
Tier 2 (6-10 HCF) $6.48 $8.41 $10.10 $11.42
Tier 3 >10 HCF $6.48 $10.80 $12.96 $14.65
Non-Residential Classes
Commercial $6.48 $7.61 $9.14 $10.33
Industrial $6.48 $9.49 $11.39 $12.88
Landscape $6.48 $11.06 $13.28 $15.01
Riverview HOA1 $1.59 $1.93 $2.32 $2.63

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Packet Pg. 271 Attachment: Executive Summary (4264 : Public Hearing to adopt Water & Wastewater Rates) 18 CITY OF HEALDSBURG – WATER AND WASTEWATER RATE STUDY

1.5. Water Bill Impacts
Figure 1-5 shows sample monthly water bills for single family residential customers at varying levels of water use under both current and proposed FY 2024-25 rates. Note that actual bill impacts will vary based on individual water use; however, the values shown below are based on low, high, and typical volumes for single family residential customers in the City of Healdsburg.

Figure 1-5: Single Family Residential Monthly Water Bill Impacts (FY 2024-25)

1.6.Proposed Wastewater Financial Plan
Raftelis conducted a status quo cash flow analysis to evaluate whether existing wastewater rates adequately fund the Wastewater Enterprise’s various expenses over the long-range planning period. Annual projections of revenues, O&M expenses, debt service payments, and capital expenditures through FY 2032-33 were developed with City staff. Raftelis projects that with no rate increases the Wastewater Enterprise’s reserves will quickly become negative and fail to meet minimum debt coverage. This demonstrates a clear need for revenue adjustments (i.e. gross wastewater rate revenue increases relative to existing rate revenues). Raftelis worked with City staff to develop the following proposed revenue adjustments over the five-year study period, with proposed rates for adoption for the first three years only (see Table 1-4).

The proposed rates are predicated on a shift in reserve policy outlined in the previous rate study. Failure to adopt the recommended changes may result in higher projected rates to adhere to the existing minimum coverage requirement. Raftelis recommends transitioning from a capital reserve policy to a rate stabilization policy to streamline the approach, eliminating the earmarking of reserves for specific capital purposes and instead utilizing them to support rates. As part of this transition, the City would allocate a portion of the reserve to offset increases over the next three fiscal years. Furthermore, it's recommended that the subsequent study addresses the funding of

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Packet Pg. 272 Attachment: Executive Summary (4264 : Public Hearing to adopt Water & Wastewater Rates) 19 CITY OF HEALDSBURG – WATER AND WASTEWATER RATE STUDY the million-dollar reserve dedicated to rate stabilization that could also address major equipment failures and natural disasters.

Table 1-4: Proposed Wastewater Revenue Adjustments

PROPOSED INCREASES FUTURE INCREASES
Fiscal Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Effective Date July 1, 2024 July 1, 2025 July 1, 2026 July 1, 2027 July 1, 2028 Revenue Adjustment 18.0% 18.0% 15.0% 9.0% 5.0%
Key factors influencing the need for proposed Wastewater Enterprise revenue adjustments include:
» Cost inflation: Operating costs continue to increase year over year due to general inflationary pressures with higher increases projected for power, labor, chemicals, and treatment costs among others. » Planned capital expenditures: Adjusted for inflation, the Wastewater Enterprise has over $15 M in CIP in the next five years. As with the Water Enterprise, many projects in the long-term capital plan have been deferred in prior studies due to financial constraints. Continued deferral will challenge overall system reliability and cause larger future rate increases. The City’s utilities have a combined 120 miles of utility pipeline, and a third of those pipes are over 50 years old. Rate revenues need to be sufficient to execute these projects and . for planning purposes, all Wastewater Enterprise projects in this study are assumed to be cash funded.
» Cash reserves: Utilities must have sufficient cash on hand to provide for working capital (paying routine expenses), to mitigate fluctuations in costs, and to mitigate risk whether from seasonality of revenues and expenses or the risk that comes with providing services that rely on extensive and specialized infrastructure. Recent inflationary pressure on both operating and capital costs has resulted in a drawdown of operating reserves. Revenue adjustments will help to ensure that the Wastewater Enterprise can maintain minimum operating reserve policy targets to provide sufficient cash flow and mitigate system risk.
» Debt Coverage: The utility has debt obligations which require a minimum coverage policy. With the added revenues from proposed rate increases, the Enterprise will have sufficient funds to meet debt coverage requirements.

In this Study, wastewater rates are proposed for adoption for the first three fiscal years (FY25-FY27) only.

However, Raftelis developed a long-range financial plan to project revenues and expenses over a 10-year period (current fiscal year through FY 2033). For planning purposes and to provide full transparency on the trajectory of future revenue increases, the following figures present 10 years of projections. In addition to the three years of proposed changes and two years of future changes (five years total) shown in Table 1-4, an additional four years of future projected increases for wastewater are required to fully recover projected operating and capital costs, maintain debt service coverage above minimum, and maintain cash reserves above minimum levels during the 10 year financial planning period. Specifically, these outer year future increases are 5% in FY 2030 and 3.5% in FY 2031-2033. These projections will be revisited as part of future rate studies and are subject to change based on new information, changes in revenues and expenses, City policies, and regulatory requirements. However, if the predicted future rate increase are not adopted and timely implemented, then cash flows will likely be less than currently depicted.

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Packet Pg. 273 Attachment: Executive Summary (4264 : Public Hearing to adopt Water & Wastewater Rates) 20 CITY OF HEALDSBURG – WATER AND WASTEWATER RATE STUDY Figure 1-6 shows the proposed CIP financing plan over the study period. Primary wastewater CIP projects include lift station replacements and relocations as well as extensive sewer line replacement. The City plans to finance its wastewater CIP projects through cash.

Figure 1-6: Wastewater Enterprise Capital Improvement Plan Figure 1-7 shows the proposed versus status quo Wastewater Enterprise operating financial plan. Revenues under the proposed financial plan and status quo financial plan are represented by the black and blue lines, respectively.

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Packet Pg. 274 Attachment: Executive Summary (4264 : Public Hearing to adopt Water & Wastewater Rates) 21 CITY OF HEALDSBURG – WATER AND WASTEWATER RATE STUDY Revenue adjustments (i.e., gross rate revenue increases) are required to generate additional revenue to fully recover O&M expenses, CIP project costs, debt service payments, and reserve funding over the long-term planning period.

Figure 1-7: Wastewater Enterprise Financial Plan - Proposed vs. Status Quo Figure 1-8 shows the Wastewater Enterprise’s projected fiscal year-end cash balance under the proposed financial plan. The light blue bars indicate the ending balance on June 30 of each year. The minimum operating reserve

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Packet Pg. 275 Attachment: Executive Summary (4264 : Public Hearing to adopt Water & Wastewater Rates) 22 CITY OF HEALDSBURG – WATER AND WASTEWATER RATE STUDY target is represented by the orange line. The minimum operating reserve is 90 days of operating expenses (including O&M and debt service). The proposed wastewater revenue increases shown in Table 1-4 will allow the City to increase operating reserve funding beginning in FY 2024-25, such that the City’s operating reserve funding will meet its minimum reserve requirement throughout the long-range planning period.

Figure 1-8: Wastewater Enterprise Projected Ending Cash Balances

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Packet Pg. 276 Attachment: Executive Summary (4264 : Public Hearing to adopt Water & Wastewater Rates) 23 CITY OF HEALDSBURG – WATER AND WASTEWATER RATE STUDY Figure 1-9 shows projected debt coverage (blue line) relative to the debt coverage requirement (gray line) over the study period. The wastewater utility is projected to meet debt coverage requirements and does not intend to issue debt throughout the long-range planning period.

Figure 1-9: Wastewater Enterprise Projected Debt Coverage

1.7.Proposed Wastewater Rates
The City of Healdsburg’s current fixed wastewater rate structure consists of Fixed Service Charges per dwelling unit for residential customers, and charges by meter size for non-residential customers. All customers are also charged a per unit (HCF) charge based on estimated wastewater flows and the strength of the flows. Residential customers’ variable charge units are based on their average winter consumption (AWC) whereas Non-Residential customers are charged per billed unit of water.

Proposed rate structure modifications include:
» Retire the SFR + ADU Fixed Charge: any SFR customer with two or more dwelling units per parcel be treated as a MFR customer and subject to the multifamily charge. Any SFR with a separate water meter for each dwelling unit will be charged the SFR Fixed Charge. » Non-Residential Meter-Based Fixed Charges: This study maintains the existing non-residential fixed charge structure by meter size, however, the ratios between the meter sizes are proposed to use calculated flow ratios rather than hydraulic capacity ratios. Raftelis used City of Healdsburg sewer user billing data to

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Packet Pg. 277 Attachment: Executive Summary (4264 : Public Hearing to adopt Water & Wastewater Rates) 24 CITY OF HEALDSBURG – WATER AND WASTEWATER RATE STUDY calculate average flow per billing period at each meter size. This approach is more representative of wastewater generation by meter size versus ratios which reflect potential water demand by meter size.

Proposed wastewater rates reflect the revenue adjustments in Table 1-4, the updated wastewater cost of service analysis, and rate modifications discussed immediately above.

Table 1-5 shows proposed wastewater rates through FY 2026-27. All Fixed Charges shown are monthly and all volumetric rates are shown in terms of dollars per hundred cubic feet ($/HCF). All rates are rounded up to the nearest penny. All rates are assumed to be implemented at the beginning of each fiscal year on July 1.

Table 1-5: Proposed Three-Year Wastewater Rate Schedule Description Current FY 2025 FY 2026 FY 2027
Residential Service Charges ($/Month/Dwelling Unit)
Single Family Residential (SFR) $46.67 $51.33 $60.57 $69.66 SFR + ADU $31.95 N/A N/A N/A
Multi-Family Residential (MFR) $37.80 $36.94 $43.60 $50.14 Flat Rate (Sewer Only SFR) $104.01 $110.18 $130.02 $149.53 Non Residential Service Charges ($/Month/Meter)
Up to 1" $75.75 $83.88 $98.99 $113.84
1 1/2" $148.49 $243.37 $287.18 $330.26
2" $235.77 $396.68 $468.09 $538.31
3" $439.44 $1,279.52 $1,509.84 $1,736.32
4" $730.39 $1,405.05 $1,657.97 $1,906.67
6" $1,966.94 $1,405.05 $1,657.97 $1,906.67
Wastewater Usage Charges ($/HCF)
Residential (SFR/MFR) $11.47 $14.71 $17.37 $19.98
Non Residential
Low Strength $10.31 $11.43 $13.49 $15.52
Medium Strength $15.09 $15.21 $17.95 $20.65
High Strength $22.08 $21.08 $24.88 $28.62

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Packet Pg. 278 Attachment: Executive Summary (4264 : Public Hearing to adopt Water & Wastewater Rates) 25 CITY OF HEALDSBURG – WATER AND WASTEWATER RATE STUDY

1.8. Wastewater Bill Impacts
Figure 1-10 shows sample monthly wastewater bills for SFR customers at varying levels of AWC under both current rates and proposed FY 2024-25 rates. The average AWC for a residence in Healdsburg is approximately 4 HCF per month.

Figure 1-10: Single Family Residential Monthly Wastewater Bill Impacts (FY 2024-25)

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Packet Pg. 279 Attachment: Executive Summary (4264 : Public Hearing to adopt Water & Wastewater Rates)

Water and Wastewater Cost of Service
and Rate Design Study
Study Report // March 22, 2024
City of
Healdsburg

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Packet Pg. 280 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2024 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY March 22, 2024
Mr. Terry Crowley
Public Works Director
City of Healdsburg
401 Grove Street
Healdsburg, CA 95448
Subject: Water and Wastewater Rate Study
Dear Mr. Crowley,
Raftelis is pleased to provide this Water and Wastewater Rate Study to the City of Healdsburg. The overall purpose of the study was to develop three years of proposed rates for the City’s Water and Wastewater Enterprises for implementation in Fiscal Year (FY) 2024-25 through FY 2026-27. The proposed utility rates were developed following industry standard rate methodologies and in conjunction with the City’s legal counsel to ensure that rates are fair, cost-justified, and aligned with the requirements of California’s Proposition 218.

The primary objectives of the study were to:
» Develop a long-range financial plan for both the City’s Water and Wastewater Enterprises to ensure financial sufficiency in recovering operating costs, funding long-term capital needs, and maintaining prudent reserves. » Conduct water and wastewater cost of service analyses to ensure a nexus between proposed rates and the cost to provide services to customers.
» Evaluate rate alternatives and proposed rate structure modifications to better align with community values and the City’s policy objectives
» Develop three years of water and wastewater rates in alignment with Proposition 218 requirements. » Document the details of the study within a Rate Study report, to support the City’s administrative record This Report outlines the study background, results, and recommendations related to the development of utility financial plans, cost of service analyses, and proposed rates. It has been a pleasure working with you and we thank you and other City staff for the support provided to Raftelis during this study.

Sincerely,
Kevin Kostiuk
Senior Manager

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Packet Pg. 281 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) Table of Contents

1. EXECUTIVE SUMMARY................................................................................................................... 1

1.1. Study Overview ................................................................................................................................. 1

1.2. Rate Study Process ........................................................................................................................... 1

1.3. Proposed Water Financial Plan ......................................................................................................... 2

1.4. Proposed Water Rates ...................................................................................................................... 7

1.5. Water Bill Impacts ............................................................................................................................ 10

1.6. Proposed Wastewater Financial Plan ............................................................................................. 10

1.7. Proposed Wastewater Rates ........................................................................................................... 15

1.8. Wastewater Bill Impacts .................................................................................................................. 17

2. INTRODUCTION ............................................................................................................................. 18

2.1. Agency Overview ............................................................................................................................. 18

2.2. Study Overview ............................................................................................................................... 18

3. LEGAL REQUIREMENTS AND RATE SETTING METHODOLOGY ............................................ 20

3.1. Legal Requirements ........................................................................................................................ 20

3.2. Rate-Setting Methodology ............................................................................................................... 20

4. WATER RATE STUDY ................................................................................................................... 22

4.1. Key Inputs and Assumptions ........................................................................................................... 22

4.1.1. Current Water Rates ........................................................................................................................ 22

4.1.2. Water Enterprise Financial Assumptions ........................................................................................ 23

4.1.3. Projected Water Service Connections ............................................................................................ 24

4.1.4. Projected Water Sales ..................................................................................................................... 25

4.2. Water Financial Plan ....................................................................................................................... 25

4.2.1. Water Enterprise Revenue under Current Rates ............................................................................ 25

4.2.2. Water Enterprise Operations & Maintenance Expenses ................................................................ 26

4.2.3. Water Enterprise Debt ..................................................................................................................... 27

4.2.4. Water Enterprise Capital Improvement Program ............................................................................ 27

4.2.5. Water Enterprise Financial Policies ................................................................................................ 29

4.2.6. Status Quo Water Financial Plan .................................................................................................... 31

4.2.7. Proposed Water Financial Plan ....................................................................................................... 32

4.3. Proposed Water Rate Structure Modifications ................................................................................ 38

4.4. Water Cost of Service Analysis ....................................................................................................... 39

4.4.1. Methodology .................................................................................................................................... 39

4.4.2. Water Rate Revenue Requirement ................................................................................................. 40

4.4.3. Water System Peaking Factors ....................................................................................................... 41

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Packet Pg. 282 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2024 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY

4.4.4. Functionalization and Allocation of Expenses ................................................................................. 42

4.4.5. Water Enterprise O&M Expense Allocation .................................................................................... 44

4.4.6. Water Enterprise Capital Allocation ................................................................................................ 45

4.4.7. Peaking Units of Service ................................................................................................................. 47

4.4.8. Development of unit costs ............................................................................................................... 49

4.4.9. Water Cost Allocation to Customer Classes ................................................................................... 50

4.5. Proposed Water Rates .................................................................................................................... 51

4.5.1. Water Service Charges (Test Year FY 2024-25) ............................................................................ 51

4.5.2. Water Volume Rates (Test Year) .................................................................................................... 52

5. WASTEWATER RATE STUDY ...................................................................................................... 56

5.1. Key Inputs and Assumptions ........................................................................................................... 56

5.1.1. Current Wastewater Rates .............................................................................................................. 57

5.1.2. Wastewater Enterprise Financial Assumptions ............................................................................... 57

5.1.3. Projected Wastewater Billing Units of Service ................................................................................ 58

5.2. Wastewater Financial Plan .............................................................................................................. 59

5.2.1. Wastewater Enterprise Revenue under Current Rates .................................................................. 59

5.2.2. Wastewater Enterprise Operations & Maintenance Expenses ....................................................... 60

5.2.3. Wastewater Enterprise Debt ........................................................................................................... 61

5.2.4. Wastewater Enterprise Capital Improvement Plan ......................................................................... 61

5.2.5. Wastewater Enterprise Financial Policies ....................................................................................... 63

5.2.6. Status Quo Wastewater Financial Plan ........................................................................................... 64

5.2.7. Proposed Wastewater Financial Plan ............................................................................................. 66

5.3. Wastewater Cost-of-Service Analysis ............................................................................................. 71

5.3.1. Methodology .................................................................................................................................... 71

5.3.2. Wastewater Rate Revenue Requirement ........................................................................................ 72

5.3.3. Functionalization and Allocation of Expenses ................................................................................. 73

5.3.4. Wastewater Enterprise O&M Expense Allocation ........................................................................... 74

5.3.5. Wastewater Enterprise Capital Allocation ....................................................................................... 75

5.3.6. ALLOCation of revenue requirement to cost components .............................................................. 76

5.3.7. Plant Mass Balance Analysis .......................................................................................................... 77

5.3.8. Wastewater Unit Costs .................................................................................................................... 78

5.3.9. Wastewater Cost Allocation to Customer Classes .......................................................................... 79

5.4. Proposed Wastewater Rates ........................................................................................................... 80

5.4.1. Proposed Wastewater Rates (Test Year) ....................................................................................... 80

6. CUSTOMER BILL IMPACTS .......................................................................................................... 83

6.1. Combined Water & Wastewater Monthly Bill Impacts, SFR ........................................................... 83

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Packet Pg. 283 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) List of Tables
Table 1-1: Proposed Water Revenue Adjustments ...................................................................................................... 2 Table 1-2: Current and Proposed Water Use Rate Structures ..................................................................................... 8 Table 1-3: Proposed Three-Year Water Rates Schedule ............................................................................................. 9 Table 1-4: Proposed Wastewater Revenue Adjustments ........................................................................................... 11 Table 1-5: Proposed Three-Year Wastewater Rate Schedule ................................................................................... 16 Table 4-1: Current Water Rates Schedule .................................................................................................................. 23 Table 4-2: Water Enterprise Inflationary Assumptions ............................................................................................... 24 Table 4-3: Current Metered Water Connections ......................................................................................................... 24 Table 4-4: Projected Water Demand .......................................................................................................................... 25 Table 4-5: Projected Revenue from Existing Rates .................................................................................................... 25 Table 4-6: Other Water Enterprise Revenues ............................................................................................................ 26 Table 4-7: Summary of Projected Water Enterprise Revenues (Current Rates) ........................................................ 26 Table 4-8: Projected Water Enterprise O&M Expenses ............................................................................................. 27 Table 4-9: Water Enterprise Debt Service .................................................................................................................. 27 Table 4-10: Water Enterprise Five-Year Capital Improvement Plan .......................................................................... 28 Table 4-11: Water Enterprise Capital Improvement Plan, by Funding Source ........................................................... 29 Table 4-12: Water Enterprise Financial Policies ......................................................................................................... 30 Table 4-13: Projected Water Enterprise Reserve Targets .......................................................................................... 30 Table 4-14: Water Enterprise Cash Flow – Status Quo Financial Plan ...................................................................... 31 Table 4-15: Water Enterprise Pro Forma - Status Quo Financial Plan....................................................................... 32 Table 4-16: Proposed Water Enterprise Revenue Adjustments ................................................................................. 33 Table 4-17: Water Enterprise Cash Flow – Proposed Financial Plan ........................................................................ 33 Table 4-18: Water Enterprise Pro Forma - Proposed Financial Plan ......................................................................... 34 Table 4-19: Proposed Water Rate Structure Changes ............................................................................................... 39 Table 4-20: Projected Water Use by Class and Tier – Test Year ............................................................................... 39 Table 4-21: Water Enterprise Rate Revenue Requirement (Test Year) ..................................................................... 41 Table 4-22: Water System Peaking Factors and Allocations ..................................................................................... 42 Table 4-23: Allocation of Functional Categories to Water Cost Causation Components ........................................... 43 Table 4-24: Water Enterprise O&M Expenses by Functional Category ..................................................................... 44 Table 4-25: Allocation of Water Enterprise O&M Expenses to Cost Causation Components ................................... 44 Table 4-26: Summary of Water Enterprise Capital Assets by Functional Category ................................................... 45 Table 4-27: Allocation of Functionalized Water Capital Assets to Cost Causation Components ............................... 45 Table 4-28: Peaking Units of Service by Customer Class .......................................................................................... 47 Table 4-29: Fireflow Analysis ...................................................................................................................................... 48 Table 4-30: Allocation of Peaking Units to Fire Protection ......................................................................................... 48 Table 4-31: Summary of Total Customer Demand Peaking Units .............................................................................. 48 Table 4-32: Allocation of Revenue Requirement to Cost Components ...................................................................... 49 Table 4-33: Derivation of Cost-of-Service Unit Rates ................................................................................................. 49 Table 4-34: Recovery of Cost Causation Components by Charge Type ................................................................... 50 Table 4-35: Cost to Serve by Water Customer Class ................................................................................................. 50 Table 4-36: Equivalent Water Meters (Test Year) ...................................................................................................... 51 Table 4-37: Water Service Charge Calculation (Test Year) ....................................................................................... 52 Table 4-38: Water Service Charges Calculation (Test Year) ..................................................................................... 52 Table 4-39: Calculation of Supply Rates by Customer Class and Tier....................................................................... 52 Table 4-40: Calculation of Base Delivery Rate ........................................................................................................... 53 Table 4-41: Calculation of Peaking Unit Rates ........................................................................................................... 53 Table 4-42: Calculation of Conservation Unit Rates ................................................................................................... 54 Table 4-43: Water Use Rates Calculation (Test Year) ............................................................................................... 54

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Packet Pg. 284 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2024 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY Table 4-44: Proposed Three-Year Water Rates Schedule ......................................................................................... 55 Table 5-1: Current Wastewater Rates Schedule ........................................................................................................ 57 Table 5-2: Wastewater Enterprise Inflationary Assumptions ...................................................................................... 58 Table 5-3: Current Wastewater Enterprise Connections ............................................................................................ 58 Table 5-4: Estimated Non-Residential Wastewater Flows (hcf), Existing Rate Structure .......................................... 59 Table 5-5: Projected Rate Revenues with Current Wastewater Rates ...................................................................... 59 Table 5-6: Other Wastewater Enterprise Revenues ................................................................................................... 60 Table 5-7: Projected Wastewater Enterprise Revenues Under Current Rates .......................................................... 60 Table 5-8: Projected Wastewater Enterprise O&M Expenses .................................................................................... 60 Table 5-9: Wastewater Enterprise Debt Service......................................................................................................... 61 Table 5-10: Wastewater Enterprise Capital Improvement Plan .................................................................................. 62 Table 5-11: Wastewater Enterprise Capital Improvement Plan, by Funding Source ................................................. 63 Table 5-12: Wastewater Enterprise Financial Policies ............................................................................................... 64 Table 5-13: Projected Wastewater Enterprise Reserve Targets ................................................................................ 64 Table 5-14: Wastewater Cash Flow – Status Quo Financial Plan .............................................................................. 65 Table 5-15: Wastewater Enterprise Pro Forma – Status Quo Financial Plan ............................................................ 66 Table 5-16: Proposed Wastewater Enterprise Revenue Adjustments ....................................................................... 66 Table 5-17: Wastewater Cash Flow – Proposed Financial Plan ................................................................................ 67 Table 5-18: Wastewater Enterprise Pro Forma – Proposed Financial Plan ............................................................... 68 Table 5-19: Wastewater Rate Revenue Requirement (Test Year) ............................................................................. 72 Table 5-20: Allocation of Functional Categories to Wastewater Cost Causation Components ................................. 74 Table 5-21: Wastewater Enterprise O&M Expenses – Allocation to Cost Causation Components ........................... 74 Table 5-22: Wastewater Enterprise Capital Assets by Functional Category .............................................................. 75 Table 5-23: Functionalized Wastewater Capital Assets Allocation to Cost Causation Components ......................... 75 Table 5-24: Allocation of Test Year Revenue Requirement to Cost Causation Components .................................... 76 Table 5-25: Mass Balance Analysis ............................................................................................................................ 77 Table 5-26: Wastewater Unit Costs Calculation (Test Year) ...................................................................................... 78 Table 5-27: Wastewater Cost Allocation to Customer Classes (Test Year) ............................................................... 79 Table 5-28: Proposed Wastewater Rate Calculation (Test Year) ............................................................................... 81 Table 5-29: Proposed Three-Year Wastewater Rates Schedule ............................................................................... 82 Table 6-1: FY 2023-24 Single Family Residential Bill Impacts (7 HCF water, 4 HCF AWC) ..................................... 83

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Packet Pg. 285 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) List of Figures
Figure 1-1: Water Enterprise Capital Improvement Plan .............................................................................................. 4 Figure 1-2: Water Enterprise Financial Plan - Proposed vs. Status Quo ..................................................................... 5 Figure 1-3: Water Enterprise Projected Ending Cash Balances ................................................................................... 6 Figure 1-4: Water Enterprise Projected Debt Coverage ............................................................................................... 7 Figure 1-5: Single Family Residential Monthly Water Bill Impacts (FY 2024-25) ....................................................... 10 Figure 1-6: Wastewater Enterprise Capital Improvement Plan .................................................................................. 12 Figure 1-7: Wastewater Enterprise Financial Plan - Proposed vs. Status Quo .......................................................... 13 Figure 1-8: Wastewater Enterprise Projected Ending Cash Balances ....................................................................... 14 Figure 1-9: Wastewater Enterprise Projected Debt Coverage ................................................................................... 15 Figure 1-10: Single Family Residential Monthly Wastewater Bill Impacts (FY 2024-25) ........................................... 17 Figure 11: Historical Annual Water Usage (Acre Feet) .............................................................................................. 19 Figure 4-1: Water Enterprise Capital Improvement Plan ............................................................................................ 29 Figure 4-2: Proposed Water Financial Plan – Projected Debt Coverage ................................................................... 35 Figure 4-3: Proposed Water Financial Plan – Projected Ending Cash Balances ....................................................... 36 Figure 4-4: Proposed vs. Status Quo Water Financial Plan ....................................................................................... 37 Figure 5-1: Wastewater Enterprise Capital Improvement Plan .................................................................................. 63 Figure 5-2: Proposed Wastewater Financial Plan – Projected Debt Coverage .......................................................... 69 Figure 5-3: Proposed Wastewater Financial Plan – Projected Ending Cash Balances ............................................. 70 Figure 5-4: Proposed vs. Status Quo Wastewater Enterprise Financial Plan ............................................................ 71

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Packet Pg. 286 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2024 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY List of Abbreviations
AF: Acre-feet
AFY: Acre-feet per year
AWWA: American Water Works Association
BOD: Biological Oxygen Demand
CIP: Capital Improvement Plan
City: City of Healdsburg
COS: Cost of Service
CPI: Consumer Price Index
CY: Calendar Yar
FY: Fiscal year
GPCD: Gallons per capita per day
GPM: Gallons per minute
HCF: One hundred cubic feet
K: Thousand
Lbs: Pounds
M: Million
Manual M1: American Water Works Association’s Principles of Water Rates, Fees, and Charges: Manual of Water Supply Practices - M1 Seventh Edition
Max Day: Maximum day water demand
Max Hour: Maximum hour water demand
MG: Million gallons
Mg/L: Milligrams per Liter
MGD: Million gallons per day
NPDES Permit: National Pollutant Discharge Elimination System Permit O&M: Operations and maintenance
PPM: Parts per million
R&R: Repair and replacement
RCLD: Replacement cost less depreciation
SS: Suspended Solids
Study Period: the rate-setting period of this study which extends through fiscal year 2027-28 WEF: Water Environment Federation
WWTP: Wastewater treatment plant

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Packet Pg. 288 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates)

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Packet Pg. 289 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 1

1.Executive Summary

1.1.Study Overview
Public water and wastewater utilities in California typically perform a Cost-of-Service analysis every three to five years to ensure that customers are appropriately charged for service commensurate with the cost to provide service.

The City of Healdsburg last conducted a water and wastewater cost of service study in 2022, which established proposed rates over a five-year period. However, the study did not anticipate recent historic inflation and the significant and sustained water conservation seen through the end of 2022 and into 2023. The City of Healdsburg (City) engaged Raftelis to conduct a water and wastewater cost of service study to develop a long-range financial plan and establish a proposed three-year schedule of water and wastewater rates through FY 2026-27. Note that proposed rates cannot be implemented until formally adopted by City Council after a public hearing, and absent a majority protest by parcels served by the City. Proposition 218 requires that the City customers mail a public hearing notice detailing proposed rate changes no fewer than 45 days before the public hearing.

The major objectives of this study are to:
» Develop a long-range financial plan for both the City’s Water and Wastewater Enterprises to ensure financial sufficiency in recovering operating costs, funding long-term capital needs, and maintaining prudent reserves. » Conduct water and wastewater cost of service analyses to ensure a nexus between proposed rates and the cost to provide services to customers.
» Evaluate rate alternatives and proposed rate structure modifications to better align with community values and the City’s policy objectives
» Develop three years of water and wastewater rates in alignment with Proposition 218 requirements. » Document the details of the study within a Rate Study report, to support the City’s administrative record

1.2.Rate Study Process
This study was conducted using industry-standard principles outlined by the American Water Works Association’s (AWWA) Manual M1 and the Water Environment Federation’s (WEF) Financing and Charges for Wastewater Systems. The overall process outlined below applies to the development of both water and wastewater rates.

1. Financial Plan: Develop cash flow projections for the Water and Wastewater Enterprise to determine the amount of revenue required from water and wastewater rates.

2. Cost of Service Analysis: Allocate costs to system components and then to various customer classes based on the costs incurred and user characteristics of each.

3. Rate Design: Develop rates that generate sufficient revenues based on the results of the financial plan and cost of service analyses and that communicate the policy preferences of the agency, maintaining that rates are cost-justified.

4. Administrative Record Preparation: Develop an administrative record (Study report) to document the results of the rate study.

5. Rate Adoption: Proposed rates may be adopted by City Council only after holding a public hearing in accordance with the procedural requirements of Proposition 218.

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Packet Pg. 290 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2 CITY OF HEALDSBURG

1.3.Proposed Water Financial Plan
Raftelis conducted a status quo cash flow analysis to evaluate whether existing water rates adequately fund the Water Enterprise’s various expenses over a long-range planning period. Annual projections of revenues, O&M costs, debt service payments, and capital expenditures through FY 2032-33 were developed with City staff. Raftelis projects that with no rate increases over the five-year study period, the Water Enterprise’s reserves will quickly turn negative and fail to meet minimum debt coverage requirements in all years. This analysis demonstrates a clear need for revenue adjustments (i.e. gross water rate revenue increases relative to existing rate revenues). Raftelis worked with City staff to develop the following proposed revenue adjustments over the five-year study period, with proposed rates for adoption for the first three years only (see Table 1-1).

The proposed rates are predicated on a shift in current adopted reserve policy outlined in the 2022 rate study.

Failure to adopt the recommended changes may result in higher projected rates to adhere to the existing minimum coverage requirement. Raftelis recommends transitioning from a capital reserve policy to a rate stabilization policy to streamline the approach, eliminating the earmarking of reserves for specific capital purposes and instead utilizing them to complete preemptive capital replacement and fund maintenance costs in a manner that stabilizes rates support rates. As part of this transition, the City would allocate a portion of the reserve to offset increases over the next three fiscal years. As a result, the proposed financial plan fully funds the operating reserve, but it does not fully fund the rate stabilization reserve. When the City undertakes the next rate study, it is recommended that the City consider fully funding the rate stabilization reserve in the financial plan.

Table 1-1: Proposed Water Revenue Adjustments

PROPOSED INCREASE FUTURE INCREASES
Fiscal Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Effective Date July 1, 2024 July 1, 2025 July 1, 2026 July 1, 2027 July 1, 2028 Revenue Adjustment 21.0% 20.0% 13.0% 12.0% 12.0%
Key factors influencing the need for proposed revenue adjustments include:
» Cost inflation: Operating costs continue to increase year over year due to general inflationary pressures with higher increases projected for power, labor, and water supply. » Reduction in baseline water demand: Following two multi-year droughts and associated mandatory conservation and messaging, the City has continued to experience lower overall water consumption relative to historical demands. While conservation is necessary in ensuring reliable long-term water supplies, utility costs must be recovered and reduced water demands generally mean increased rate pressure.
» Planned capital expenditures: Adjusted for inflation, the Water Enterprise has over $28 M in planned CIP in the next five years. Many projects in the long-term capital plan have been deferred in prior studies due to financial constraints. Continued deferral will challenge overall system reliability and cause larger future rate increases. The City’s utilities have a combined 120 miles of utility pipeline, and a third of those pipes are over 50 years old, resulting in an average of two water service repairs per week. Rate revenues need to be sufficient to execute these projects with cash, future external borrowing (debt proceeds), or a combination of the two. Additionally, the City is facing increasing regulatory mandates to improve water filtration. These mandates include filtering for cryptosporidium and the potential treatment of Per- and Polyfluorinated Substances (PFAS) which requires additional CIP investment. » Cash reserves: Utilities must have sufficient cash on hand to provide for working capital (paying routine expenses), to mitigate fluctuations in costs, and to mitigate risk, whether from seasonality of revenues and

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Packet Pg. 291 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 3 expenses or the risk that comes with providing services that rely on extensive and specialized infrastructure. Recent inflationary pressure coupled with declines in water sales revenues has resulted in a drawdown of operating reserves. Revenue adjustments will help to ensure that the Water Enterprise can maintain minimum operating reserve policy targets to provide sufficient cash flow and mitigate system risk.
» Debt Coverage: The Water Enterprise fund has debt service coverage requirements as a condition of past external borrowing. Proposed rates ensure the Water Enterprise can achieve coverage on existing debt and have sufficient capacity to qualify for future credit extensions.

In this Study, wastewater rates are proposed for adoption for the first three fiscal years (FY25-FY27) only.

However, Raftelis developed a long-range financial plan to project revenues and expenses over a 10-year period (current fiscal year through FY 2033). For planning purposes and to provide full transparency on the trajectory of future revenue increases, the following figures present 10 years of projections. In addition to the three years of proposed changes and two years of potential future changes (five years total) shown in Table 1-4, an additional four years of future projected increases for wastewater are required to fully recover projected operating and capital costs, maintain debt service coverage above minimum, and maintain operating cash reserves above minimum levels during the 10 year financial planning period. Specifically, these outer year future increases are 5% in FY 2030 and 3.5% in FY 2031-2033. These projections will be revisited as part of future rate studies and are subject to change based on new information, changes in revenues and expenses, City policies, and regulatory requirements.

However, if the predicted future rate increases are not adopted and timely implemented, then cash flows will likely be less than currently depicted.

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Packet Pg. 292 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 4 CITY OF HEALDSBURG
Figure 1-1 shows the proposed CIP financing plan over the long-range planning period. The City intends to fund future CIP costs through a combination of cash and future debt proceeds. Future debt proceeds are for planning purposes only and would only be required if the City is required to expend funds on a series of projects related to PFAS.

Figure 1-1: Water Enterprise Capital Improvement Plan

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Packet Pg. 293 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 5 Figure 1-2 shows the proposed versus status quo Water Enterprise operating financial plan. Revenues under the proposed financial plan and status quo financial plan are represented by the black and blue lines, respectively.

Revenue requirements including O&M expenses, debt service, and cash reserve funding (including for CIP) are represented by the various stacked bars. Revenue adjustments (i.e., gross rate revenue increases) are required to generate additional revenue to fully recover O&M expenses, CIP expenditures, debt service payments, and reserve funding over the study period.

Figure 1-2: Water Enterprise Financial Plan - Proposed vs. Status Quo

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Packet Pg. 294 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 6 CITY OF HEALDSBURG
Figure 1-3 shows the Water Enterprise’s projected fiscal year-end cash balance under the proposed financial plan.

The light blue bars indicate the ending balance on June 30 of each year. The minimum operating reserve target is represented by the orange line. The minimum operating reserve is 90 days of operating expenses (including O&M and debt service). The proposed revenue increases shown in Table 1-1 will allow the City to increase operating reserve funding beginning in FY 2024-25, such that the City’s operating reserve funding will meet its minimum reserve requirement throughout the long-range planning period.

Figure 1-3: Water Enterprise Projected Ending Cash Balances

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Packet Pg. 295 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 7 Figure 1-4 shows projected debt coverage (blue line) relative to the debt coverage minimum requirement (gray line) over the planning period. Debt coverage will increase significantly with the proposed revenue increases shown in Table 1-1. The proposed rate increases will allow the City to meet its minimum debt coverage requirement throughout the study period while planning to borrow for future projects. Failure to meet minimum debt service coverage minimums could result in a downgrade of credit rating, higher costs of future borrowing, or even denial of credit.

Figure 1-4: Water Enterprise Projected Debt Coverage

1.4.Proposed Water Rates
The City of Healdsburg’s existing water rate structure consists of fixed Water Service Charges (based on meter size or dwelling units) and variable Water Volume Rates (per hundred cubic feet [HCF] of water delivered). Raftelis worked closely with City staff and the City’s legal counsel to evaluate potential changes to the existing water rate structure. The following changes are proposed:
» Water Use Rates
o Residential Tiered Water Rates: The Study recommends that the City introduce a three-tiered rate structure for Residential water customers including Single-Family Residential (SFR) and Multi-Family Residential (MFR). MFR customers will receive tier allotments for each dwelling unit served. Tier 1 is defined as the first 5 units of water (HCF) per monthly billing period, reflecting average winter usage (January -March) for a SFR customer rounded up to the nearest whole number. Tier 2 encompasses usage greater than 5 and up to and including 10 HCF,

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Packet Pg. 296 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 8 CITY OF HEALDSBURG
representing summer peak (75th percentile in the July – September periods) demands of SFR customers rounded up to the nearest whole number. Tier 3 comprises of all units of water usage exceeding 10 HCF. Residential users are a homogenous customer class with similar indoor needs for health and sanitation, similar outdoor irrigation needs, and similar seasonality in these demand patterns. It is therefore appropriate to tier this class of customers. The proposed monthly allotments for residential customers are shown below in Table 1-2 and reflect actual demand patterns of City water users. Note that non-residential customers will maintain a uniform rate structure.
o All Other Classes: The Study recommends that all other customer classes maintain a uniform rate structure, however, going forward each class will have a distinct uniform rate based on their specific demand characteristics. The new rates by customer class include those customers designated as Commercial, Industrial, and Landscape Irrigation. Non-residential classes have highly varying demand patterns within each class based on the type of business, seasonality, and/or transient effects. Peaking costs, also referred to as extra capacity costs, are costs associated with higher demand patterns. These costs are allocated to each customer class based on their specific class demand patterns and calculating peaking. For this reason, uniform rates are proposed for each of the non-residential classes.
» Monthly Service Charges: The Study recommends harmonizing the fixed service charges across user classes. This change will align Residential customers with a metered connection of a specific size with Non-Residential customers with the same size meter. The proposed structure relies on meter size alone to distinguish the “class” of customer. This change acknowledges that meter capacity, not customer classification, reflects the best estimate of the costs imposed by a user on the water system that are recovered through fixed charges.

Table 1-2: Current and Proposed Water Use Rate Structures Description Current Structure Proposed Structure
Residential (SFR/MFR)
Tier 1 Uniform Water Use Rate
(All Classes)
0-5 HCF
Tier 2 Uniform Water Use Rate
(All Classes)
6-10 HCF
Tier 3 Uniform Water Use Rate
(All Classes)
>10 HCF
Non-Residential Classes
Commercial Uniform Water Use Rate
(All Classes)
Uniform Water Use Rate,
by Class
Industrial Uniform Water Use Rate
(All Classes)
Uniform Water Use Rate,
by Class
Landscape Irrigation Uniform Water Use Rate
(All Classes)
Uniform Water Use Rate,
by Class

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Packet Pg. 297 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 9 Table 1-3 the shows the three years of proposed Water Service Charges and Water Volume Rates (through FY 2026-27). All charges and tier allotments are shown in monthly terms and all rates are rounded up to the nearest penny. All volumetric rates are shown in terms of dollars per hundred cubic feet ($/HCF). All rates are assumed to be implemented at the beginning of each fiscal year and in effect on or after July 1.

Table 1-3: Proposed Three-Year Water Rates Schedule
Description Current FY 2025 FY 2026 FY 2027
Residential Fixed Monthly Service Charge
Single Family $28.61 By Meter Size By Meter Size By Meter Size Single Family + ADU (per DU) $21.84 By Meter Size By Meter Size By Meter Size Multi-Family (Per DU) $17.01 By Meter Size By Meter Size By Meter Size Fixed Monthly Service Charges
Up to 1" $45.26 $41.34 $49.61 $56.06
1 1/2" $86.90 $77.94 $93.53 $105.69
2" $136.86 $121.86 $146.24 $165.26
3" $253.46 $238.98 $286.78 $324.07
4" $419.91 $370.75 $444.90 $502.74
6" $1,127.75 $736.76 $884.12 $999.06
Residential (Single Family & Multi-Family)
Tier 1 (0-5 HCF) $6.48 $6.48 $7.78 $8.80
Tier 2 (6-10 HCF) $6.48 $8.41 $10.10 $11.42
Tier 3 >10 HCF $6.48 $10.80 $12.96 $14.65
Non-Residential Classes
Commercial $6.48 $7.61 $9.14 $10.33
Industrial $6.48 $9.49 $11.39 $12.88
Landscape $6.48 $11.06 $13.28 $15.01
Riverview HOA1 $1.59 $1.93 $2.32 $2.63
1 Only the volumetric rate is applicable to Riverview HOA under the terms of the 1997 order of condemnation. HOA Riverview pays a fixed monthly service charge by meter size that increases based schedule.

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Packet Pg. 298 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 10 CITY OF HEALDSBURG

1.5. Water Bill Impacts
Figure 1-5 shows sample monthly water bills for single family residential customers at varying levels of water use under both current and proposed FY 2024-25 rates. Note that actual bill impacts will vary based on individual water use; however, the values shown below are based on low, high, and typical volumes for single family residential customers in the City of Healdsburg.

Figure 1-5: Single Family Residential Monthly Water Bill Impacts (FY 2024-25)

1.6.Proposed Wastewater Financial Plan
Raftelis conducted a status quo cash flow analysis to evaluate whether existing wastewater rates adequately fund the Wastewater Enterprise’s various expenses over the long-range planning period. Annual projections of revenues, O&M expenses, debt service payments, and capital expenditures through FY 2032-33 were developed with City staff. Raftelis projects that with no rate increases the Wastewater Enterprise’s reserves will quickly become negative and fail to meet minimum debt coverage. This demonstrates a clear need for revenue adjustments (i.e. gross wastewater rate revenue increases relative to existing rate revenues). Raftelis worked with City staff to develop the following proposed revenue adjustments over the five-year study period, with proposed rates for adoption for the first three years only (see Table 1-4).

The proposed rates are predicated on a shift in current adopted reserve policy outlined in the 2022 rate study.

Failure to adopt the recommended changes may result in higher projected rates to adhere to the existing minimum coverage requirement. Raftelis recommends transitioning from a capital reserve policy to a rate stabilization policy to streamline the approach, eliminating the earmarking of reserves for specific capital purposes and instead utilizing them to complete preemptive capital replacement and fund maintenance costs in a manner that stabilizes rates support rates. As part of this transition, the City would allocate a portion of the reserve to offset increases over the next three fiscal years. As a result, the proposed financial plan fully funds the operating reserve, but it does not fully

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Packet Pg. 299 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 11 fund the rate stabilization reserve. When the City undertakes the next rate study, it is recommended that the City consider fully funding the rate stabilization reserve in the financial plan.

Table 1-4: Proposed Wastewater Revenue Adjustments

PROPOSED INCREASES FUTURE INCREASES
Fiscal Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Effective Date July 1, 2024 July 1, 2025 July 1, 2026 July 1, 2027 July 1, 2028 Revenue Adjustment 18.0% 18.0% 15.0% 9.0% 5.0%
Key factors influencing the need for proposed Wastewater Enterprise revenue adjustments include:
» Cost inflation: Operating costs continue to increase year over year due to general inflationary pressures with higher increases projected for power, labor, chemicals, and treatment costs among others. » Planned capital expenditures: Adjusted for inflation, the Wastewater Enterprise has over $15 M in CIP in the next five years. As with the Water Enterprise, many projects in the long-term capital plan have been deferred in prior studies due to financial constraints. Continued deferral will challenge overall system reliability and cause larger future rate increases. The City’s utilities have a combined 120 miles of utility pipeline, and a third of those pipes are over 50 years old. Rate revenues need to be sufficient to execute these projects and . for planning purposes, all Wastewater Enterprise projects in this study are assumed to be cash funded.
» Cash reserves: Utilities must have sufficient cash on hand to provide for working capital (paying routine expenses), to mitigate fluctuations in costs, and to mitigate risk whether from seasonality of revenues and expenses or the risk that comes with providing services that rely on extensive and specialized infrastructure. Recent inflationary pressure on both operating and capital costs has resulted in a drawdown of operating reserves. Revenue adjustments will help to ensure that the Wastewater Enterprise can maintain minimum operating reserve policy targets to provide sufficient cash flow and mitigate system risk.
» Debt Coverage: The utility has debt obligations which require a minimum coverage policy. With the added revenues from proposed rate increases, the Enterprise will have sufficient funds to meet debt coverage requirements.

In this Study, wastewater rates are proposed for adoption for the first three fiscal years (FY25-FY27) only.

However, Raftelis developed a long-range financial plan to project revenues and expenses over a 10-year period (current fiscal year through FY 2033). For planning purposes and to provide full transparency on the trajectory of future revenue increases, the following figures present 10 years of projections. In addition to the three years of proposed changes and two years of future changes (five years total) shown in Table 1-4, an additional four years of future projected increases for wastewater are required to fully recover projected operating and capital costs, maintain debt service coverage above minimum, and maintain cash reserves above minimum levels during the 10 year financial planning period. Specifically, these outer year future increases are 5% in FY 2030 and 3.5% in FY 2031-2033. These projections will be revisited as part of future rate studies and are subject to change based on new information, changes in revenues and expenses, City policies, and regulatory requirements. However, if the predicted future rate increases are not adopted and timely implemented, then cash flows will likely be less than currently depicted.

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Packet Pg. 300 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 12 CITY OF HEALDSBURG
Figure 1-6 shows the proposed CIP financing plan over the study period. Primary wastewater CIP projects include lift station replacements and relocations as well as extensive sewer line replacement. The City plans to finance its wastewater CIP projects through cash.

Figure 1-6: Wastewater Enterprise Capital Improvement Plan

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Packet Pg. 301 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 13 Figure 1-7 shows the proposed versus status quo Wastewater Enterprise operating financial plan. Revenues under the proposed financial plan and status quo financial plan are represented by the black and blue lines, respectively.

Revenue adjustments (i.e., gross rate revenue increases) are required to generate additional revenue to fully recover O&M expenses, CIP project costs, debt service payments, and reserve funding over the long-term planning period.

Figure 1-7: Wastewater Enterprise Financial Plan - Proposed vs. Status Quo

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Packet Pg. 302 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 14 CITY OF HEALDSBURG
Figure 1-8 shows the Wastewater Enterprise’s projected fiscal year-end cash balance under the proposed financial plan. The light blue bars indicate the ending balance on June 30 of each year. The minimum operating reserve target is represented by the orange line. The minimum operating reserve is 90 days of operating expenses (including O&M and debt service). The proposed wastewater revenue increases shown in Table 1-4 will allow the City to increase operating reserve funding beginning in FY 2024-25, such that the City’s operating reserve funding will meet its minimum reserve requirement throughout the long-range planning period.

Figure 1-8: Wastewater Enterprise Projected Ending Cash Balances

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Packet Pg. 303 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 15 Figure 1-9 shows projected debt coverage (blue line) relative to the debt coverage requirement (gray line) over the study period. The wastewater utility is projected to meet debt coverage requirements and does not intend to issue debt throughout the long-range planning period.

Figure 1-9: Wastewater Enterprise Projected Debt Coverage

1.7.Proposed Wastewater Rates
The City of Healdsburg’s current fixed wastewater rate structure consists of Fixed Service Charges per dwelling unit for residential customers, and charges by meter size for non-residential customers. All customers are also charged a per unit (HCF) charge based on estimated wastewater flows and the strength of the flows. Residential customers’ variable charge units are based on their average winter consumption (AWC) whereas Non-Residential customers are charged per billed unit of water.

Proposed rate structure modifications include:
» Retire the SFR + ADU Fixed Charge: any SFR customer with two or more dwelling units per parcel will be treated as a MFR customer and subject to the multifamily charge. » Non-Residential Meter-Based Fixed Charges: This study maintains the existing non-residential fixed charge structure by meter size, however, the ratios between the meter sizes are proposed to use calculated flow ratios rather than hydraulic capacity ratios. Raftelis used City of Healdsburg sewer user billing data to

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Packet Pg. 304 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 16 CITY OF HEALDSBURG
calculate average flow per billing period at each meter size. This approach is more representative of wastewater generation by meter size versus ratios which reflect potential water demand by meter size.

Proposed wastewater rates reflect the revenue adjustments in Table 1-4, the updated wastewater cost of service analysis, and rate modifications discussed immediately above.

Table 1-5 shows proposed wastewater rates through FY 2026-27. All Fixed Charges shown are monthly and all volumetric rates are shown in terms of dollars per hundred cubic feet ($/HCF). All rates are rounded up to the nearest penny. All rates are assumed to be implemented at the beginning of each fiscal year on July 1.

Table 1-5: Proposed Three-Year Wastewater Rate Schedule Description Current FY 2025 FY 2026 FY 2027
Residential Service Charges ($/Month/Dwelling Unit)
Single Family Residential (SFR) $46.67 $51.33 $60.57 $69.66 SFR + ADU $31.95 N/A N/A N/A
Multi-Family Residential (MFR) $37.80 $36.94 $43.60 $50.14 Flat Rate (Sewer Only SFR) $104.01 $110.18 $130.02 $149.53 Non Residential Service Charges ($/Month/Meter)
Up to 1" $75.75 $83.88 $98.99 $113.84
1 1/2" $148.49 $243.37 $287.18 $330.26
2" $235.77 $396.68 $468.09 $538.31
3" $439.44 $1,279.52 $1,509.84 $1,736.32
4" $730.39 $1,405.05 $1,657.97 $1,906.67
6" $1,966.94 $1,405.05 $1,657.97 $1,906.67
Wastewater Usage Charges ($/HCF)
Residential (SFR/MFR) $11.47 $14.71 $17.37 $19.98
Non Residential
Low Strength $10.31 $11.43 $13.49 $15.52
Medium Strength $15.09 $15.21 $17.95 $20.65
High Strength $22.08 $21.08 $24.88 $28.62

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Packet Pg. 305 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 17

1.8. Wastewater Bill Impacts
Figure 1-10 shows sample monthly wastewater bills for SFR customers at varying levels of AWC under both current rates and proposed FY 2024-25 rates. The average AWC for a residence in Healdsburg is approximately 4 HCF per month.

Figure 1-10: Single Family Residential Monthly Wastewater Bill Impacts (FY 2024-25)

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Packet Pg. 306 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 18 CITY OF HEALDSBURG

2.Introduction

2.1.Agency Overview
The City of Healdsburg (City), situated 70 miles north of San Francisco on Highway 101 within Sonoma County, boasts a population of around 11,183 residents. The city lies at the meeting point of three valleys: Russian River, Dry Creek, and Alexander Valleys. The City provides water and wastewater services to the City’s residents and businesses, providing services to around 4,700 accounts. The City’s drinking-water is sourced from three well fields: tow located along the Russian River and one located on Dry Creek. The potable water distribution system comprises three pressure zones supplied by six storage reservoirs. Meanwhile, the wastewater collection system consists of an underground network of pipelines that gather and transport raw wastewater from individual user connections to the city's tertiary-level treatment plant, known as the City of Healdsburg's Wastewater Treatment, Reclamation, and Disposal Facility (WWTF). At this facility, all wastewater is treated to meet Title 22 recycled water standards before being discharged into a former gravel extraction pit, Basalt Point, where it percolates into the underlying groundwater basin, ultimately connecting to the Russian River.

2.2. Study Overview
Public water and wastewater utilities in California typically perform a Cost-of-Service analysis every three to five years to ensure that customers are appropriately charged for service commensurate with the cost to provide service.

The City of Healdsburg last conducted a water and wastewater cost of service study in 2022, which established proposed rates over a five-year period. However, the study did not anticipate recent historic inflation and the significant and sustained water conservation seen through the end of 2022 and into 2023. The City of Healdsburg (City) engaged Raftelis to conduct a water and wastewater cost of service study to develop a long-range financial plan and establish a proposed three-year schedule of water and wastewater rates through FY 2026-27. Note that proposed rates cannot be implemented until formally adopted by City Council after a public hearing, and absent a majority protest by parcels served by the City. Proposition 218 requires that the City mail a public hearing notice detailing proposed rate changes no fewer than 45 days before the public hearing.

Study Objectives
The major objectives of this study are to:
» Develop a long-range financial plan for both the City’s Water and Wastewater Enterprises to ensure financial sufficiency in recovering operating costs, funding long-term capital needs, and maintaining prudent reserves.
» Conduct water and wastewater cost of service analyses to ensure a nexus between proposed rates and the cost to provide services to customers.
» Evaluate rate alternatives and proposed rate structure modifications to better align with community values and the City’s policy objectives
» Develop three years of water and wastewater rates in alignment with Proposition 218 requirements. » Document the details of the study within a Rate Study report, to support the City’s administrative record

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Packet Pg. 307 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 19 Key Changes Since Prior Rate Study
Reduction in baseline water demand: One significant development affecting water demand is the enduring drought conditions in California, which have led to permanent reductions in baseline water consumption across the state. Specifically, the City has experienced a notable decrease of approximately 20% from historical average usage levels. Furthermore, since the last rate study, there has been a consistent decline in both per capita and per connection demands compared to historical baselines. As depicted in Figure 11, the annual water demand for the City exceeded 600 acre-feet per year from 2017 to 2020 and has not rebounded over the past three years.

Figure 11: Historical Annual Water Usage (Acre Feet)
Cost inflation: The City’s water and wastewater operations are impacted by increasing costs and shocks in system inputs like chemicals and labor. Operating costs continue to increase year over year due to general inflationary pressures with higher increases projected for power, labor, and water supply. Overall, utility operating costs far outpace general inflation rates.
» Capital Expenditures: Many projects in the long-term Capital Improvement Program (CIP) previously included in the prior rate studies were deferred due to financial constraints.. Additionally, the City is facing increasing regulatory mandates to improve water filtration. These mandates include filtering for cryptosporidium and the potential treatment of Per- and Polyfluorinated Substances (PFAS) which requires additional CIP investment. Total CIP deferred projects total roughly $8.1 million excluding the possible cost of PFAS treatment.

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Packet Pg. 308 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 20 CITY OF HEALDSBURG

3.Legal Requirements and
Rate Setting Methodology

3.1.Legal Requirements
California Constitution - Article XIII D, Section 6 (Proposition 218) Proposition 218, reflected in the California Constitution as Article XIII D, was enacted in 1996 to ensure that rates and fees are reasonable and proportional to the cost of providing service. The principal requirements, as they relate to public water and wastewater service are as follows:

1. A property-related charge (which include water or wastewater rates) imposed by a public agency on a parcel shall not exceed the costs required to provide the property-related service.

2. Revenues derived by the charge shall not be used for any purpose other than that for which the charge was imposed.

3. The amount of the charge imposed upon any parcel shall not exceed the proportional cost of service attributable to the parcel.

4. No charge may be imposed for a service unless that service is actually used or immediately available to the owner of the property.

5. No fee or charge may be imposed for general governmental services including, but not limited to, police, fire, ambulance or library services, where the service is available to the public at large in substantially the same manner as it is to property owners.

As stated in the American Water Works Association’s (AWWA) Principles of Water Rates, Fees, and Charges: Manual of Water Supply Practices - M1 Seventh Edition (Manual M1), “water rates and charges should be recovered from classes of customers in proportion to the cost of serving those customers.” Raftelis follows industry standard rate setting methodologies set forth by the AWWA’s Manual M1 to ensure the water cost of service analysis presented in this study meets Proposition 218 requirements and establishes rates that do not exceed the proportionate cost of providing water services on a parcel basis. The methodology in the Manual M1 is a nationally recognized industry ratemaking standard which courts have recognized as consistent with Proposition 218. Similarly, the wastewater cost of service presented in this study was conducted in accordance with principles established by the Water Environment Federation (WEF) and described in Financing and Charges for Wastewater Systems.

3.2.Rate-Setting Methodology
This study was conducted using industry-standard principles outlined by the AWWA’s Manual M1 and WEF’s Financing and Charges for Wastewater Systems. The process and approach Raftelis utilized in the study to determine rates is informed by the City’s policy objectives, the current system of rates, and the legal requirements in California (namely, Proposition 218). The resulting financial plans, cost of service analyses, and rate design process follows five key steps, outlined below, to determine proposed rates that fulfill the City’s objectives, meet industry standards, and align with state law. The overall process outlined below applies to the Cost-of-Service analyses for both water and wastewater.

1. Financial Plan: The first study step is to develop a multi-year financial plan that projects the Water and Wastewater Enterprises’ revenues, expenses, capital project financing, annual debt service, and reserve

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Packet Pg. 309 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 21 funding. The financial plan is used to determine revenue adjustments needed to recover adequate revenues to fully recover system costs.

2. Revenue Requirement Determination: After completing the financial plan, the rate-making process begins with the determination of the revenue requirement for the test year, also known as the Cost-of Service year.

The test year for this study is FY 2022-23. The revenue requirement should sufficiently fund the Water and Wastewater Enterprises’ operating costs, annual debt service (including coverage requirements), capital expenditures, and reserve funding needs.

3. Cost-of-Service Analysis: The annual cost of providing water or wastewater service (i.e. the revenue requirement) is then distributed to customer classes commensurate with their use of and burden on the system. A Cost-of-Service analysis involves the following steps:
» Functionalize costs – the different components of the revenue requirement are categorized into functions such as supply, transmission, storage, customer service, etc. (for water) and collection, treatment, customer, etc. (for wastewater)
» Allocate to cost causation components – the functionalized costs are then allocated to cost causation components such as supply, base delivery, peaking, etc. (for water) and flow, strength, etc. (for wastewater)
» Develop unit costs – unit costs for each cost causation component are determined using units of service
» Distribute cost components – the cost components are allocated to each customer class or tier using the unit costs in proportion to their demand and burden on the system.

A water cost of service analysis considers both the average water demand and peak demand. Peaking, or extra-capacity, costs are incurred during periods of peak consumption, most often coinciding with summer water use. There are additional capacity-related costs associated with designing, constructing, operating, maintaining, and replacing facilities to meet peak demand. Patterns of use impose additional costs on a water utility and are used to determine the cost burden on peaking-related facilities. Similarly, a wastewater cost of service analysis considers the amount of wastewater treatment plant influent contributed by each customer class to account for customer differences in the quantity and strength of wastewater discharges.

4. Rate Design: After allocating the revenue requirement to each customer class, the rate design and calculation process can begin. Rates do more than simply recover costs; within the legal framework and industry standards, properly designed rates should also support and optimize the City’s policy objectives.

5. Administrative Record Preparation and Rate Adoption: The final step in a rate study is to develop the administrative record in conjunction with the rate adoption process. This report serves as the administrative record for this study. The administrative record documents the study results and presents the methodologies, rationale, justifications, and calculations used to determine the proposed rates. A thorough and methodological administrative record serves two important functions: maintaining defensibility in a stringent legal environment and communicating the rationale for revenue adjustments and proposed rates to customers and key stakeholders.

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Packet Pg. 310 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 22 CITY OF HEALDSBURG

4.Water Rate Study

4.1.Key Inputs and Assumptions
Raftelis developed a water rate model to project financial calculations over the next ten fiscal years with projections shown in this report through the five-year rate-setting period of FY 2028-29 (i.e. the “study period”). While the study period consists of five years, the City is only considering three years of proposed rates for adoption at this time. The City’s fiscal year spans from July 1 through June 30. Projections in future years were generally made based on actual data for FY 2021-22 or FY 2022-23, or the adopted budget for FY 2023-24 using key assumptions outlined below. Assumptions were discussed with, and reviewed by, City of Healdsburg Public Works and Finance staff to ensure that the City water system’s unique characteristics are accurately accounted for. Note that most table values shown throughout this report are rounded to the last digit shown and may therefore not sum precisely to the totals shown.

The proposed rates are predicated on a shift in current adopted reserve policy outlined in the 2022 rate study.

Failure to adopt the recommended changes may result in higher projected rates to adhere to the existing minimum coverage requirement. Raftelis recommends transitioning from a capital reserve policy to a rate stabilization policy to streamline the approach, eliminating the earmarking of reserves for specific capital purposes and instead utilizing them to complete preemptive capital replacement and fund maintenance costs in a manner that stabilizes rates support rates. As part of this transition, the City would allocate a portion of the reserve to offset increases over the next three fiscal years. As a result, the proposed financial plan fully funds the operating reserve, but it does not fully fund the rate stabilization reserve. When the City undertakes the next rate study, it is recommended that the City consider fully funding the rate stabilization reserve in the financial plan.

4.1.1.CURRENT WATER RATES
Table 4-1 shows the rates currently in effect from July 1, 2023, which were developed during the prior rate study in 2022. Customers are currently billed monthly for two primary charges: 1) Water Service Charges and 2) Water Volume Rates per hundred cubic feet (HCF)2 of water delivered. The Water Service Charge is a fixed monthly charge that varies based on meter size for non-residential customers, and per dwelling unit (DU) for residential customers. All customer classes are subject to a uniform Water Volume Rate. 2 One HCF equals approximately 748 gallons.

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Packet Pg. 311 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 23 Table 4-1: Current Water Rates Schedule
Description FY 2024
Residential Fixed Monthly Service Charge
Single Family $28.61
Single Family + ADU (per DU) $21.84
Multi-Family (Per DU) $17.01
Fixed Monthly Service Charges
Up to 1" $45.26
1 1/2" $86.90
2" $136.86
3" $253.46.
4" $419.91
6" $1,127.75
8" $1,502.45
Residential (Single Family & Multi-Family)
Tier 1 (0-5 HCF) $6.48
Tier 2 (6-10 HCF) $6.48
Tier 3 >10 HCF $6.48
Non-Residential Classes
Commercial $6.48
Industrial $6.48
Landscape $6.48
Riverview HOA1 $1.59

4.1.2.WATER ENTERPRISE FINANCIAL ASSUMPTIONS
Inflationary assumptions shown in Table 4-2 are used to escalate projected operations and maintenance (O&M) expenses beyond FY 2023-24. For O&M expenses, the general inflation rate is consistent with long-term changes in the Consumer Price Index (CPI). Specifically, increases in salaries and cost-of-living adjustments (COLA) match the annual percentage changes in wages and salaries reported by the CPI. At the direction of city staff, adjustments for salary/employee benefits and electricity costs have been made. Electricity cost adjustments directly reflect the estimated rate increases provided by the city's electric suppliers. Utility costs have been updated to mirror the changes in fuel and utilities prices from October 2022 to October 2023, as indicated by the CPI. Capital expenses have been adjusted based on the three-year average from the Engineering News-Record (ENR).

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Table 4-2: Water Enterprise Inflationary Assumptions
Inflationary Categories FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Expenses
General Cost Inflation 3.7% 3.7% 3.7% 3.7% 3.7%
Salary / COLA 4.5% 4.5% 4.5% 4.5% 4.5%
Salary / Employee Benefits 7.0% 7.0% 7.0% 7.0% 7.0%
Utilities 5.2% 5.2% 5.2% 5.2% 5.2%
Capital 5.9% 5.9% 5.9% 5.9% 3.5%
Electricity 14.0% 8.0% 7.0% 5.0% 5.0%

4.1.3.PROJECTED WATER SERVICE CONNECTIONS
City staff provided Raftelis with the number of water meters by size for FY 2022-23. The City anticipates negligible growth for the foreseeable future, as the service area is mostly built-out and will not see significant increases in the number of meters for future years. As such, Raftelis used the current actual meter counts – shown below in Table 4-3 for all future years in the study.

Table 4-3: Current Metered Water Connections
Description
Current
Metered
Connections
Meter Sizes – Non Residential
1" 470
1 1/2" 56
2" 113
3" 21
4" 12
6" 0
8" 0
Total 4,825
Residential Monthly Meter Charge ADU’s
Single Family 3,856
Single Family + ADU (per DU) 490
Multi-Family (per DU) 1,094
Total 5,440

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4.1.4.PROJECTED WATER SALES
City staff provided Raftelis with total annual water use data by customer class for FY 2022-23. The City does not expect an increase in water use, and with the trend of conservation in the prior years it was decided to keep water use constant over the study period. Total water use is shown in hundred cubic feet (hcf), which is the billing unit.

Table 4-4: Projected Water Demand
Description Actual
FY 2023
Single Family 297,304
Multifamily 44,590
Commercial 122,377
Industrial 13,035
Landscape 42,040
Total 519,346

4.2.Water Financial Plan
Section 4.2 details the development of a proposed Water Enterprise financial plan for City of Healdsburg over the study period. The following subsections include estimates and projections of annual revenues, O&M expenses, debt service payments, capital expenditures, and reserve funding through FY 2028-29. The overall purpose of the financial plan is to determine annual water rate revenues required to achieve sufficient cash flow, execute the capital program, maintain adequate reserves, and meet debt coverage requirements.

4.2.1.WATER ENTERPRISE REVENUE UNDER CURRENT RATES
The Water Enterprise’s revenue sources consist of water rates, miscellaneous fees, interest earnings on cash reserves, and other non-rate revenues. The rate revenue projections shown in this section assume that current water rates are effective throughout the study period, and therefore represent estimated revenues in the absence of any water rate increases. This status quo scenario provides a baseline from which Raftelis evaluates the need for revenue adjustments (i.e. gross rate revenue increases).

Projected Water Rate Revenues
Raftelis projected annual water rate revenues from Water Service Charges and Water Volume Rates over the study period based on current FY 2023-24 water rates. Per City direction, Raftelis projected rate revenues for future years using no account growth and constant water demand (as described above in Table 1-3 and Table 4-4). The resulting projected revenues under existing rates are shown below in Table 4-5.

Table 4-5: Projected Revenue from Existing Rates
Description Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
FY 2029
Water Rate Revenues
Fixed $2,299,153 $2,299,153 $2,299,153 $2,299,153 $2,299,153 $2,299,153 Variable $3,365,362 $3,365,362 $3,365,362 $3,365,362 $3,365,362 $3,365,362 Total $5,664,515 $5,664,515 $5,664,515 $5,664,515 $5,664,515 $5,664,515

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Other Water Enterprise Revenues
Table 4-6 shows all other Water Enterprise revenues. All FY 2021-22 to FY 2023-24 other revenues are based on the City’s actual and budgeted revenues and those are kept constant throughout the forecasted study period with the exception of non-recurring transfer in FY 2023-24. Interest revenue is estimated in the financial plan model beginning in FY 2024-25 based on projected fund balances and the assumed interest rate.

Table 4-6: Other Water Enterprise Revenues
Description Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
FY 2029
Water - Other Revenues
Interest Income $30,797 $26,967 $39,121 $36,903 $34,081 $34,921 Other Revenues $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 Transfers In $422,161 $0 $0 $0 $0 $0
Total $462,958 $36,967 $49,121 $46,903 $44,081 $44,921
Summary of Projected Water Enterprise Revenues
Table 4-7 shows a summary of all projected Water Enterprise revenues under current rates over the study period.

This includes all projected revenues shown in Table 4-5 and Table 4-6. This revenue summary represents expected revenues in the absence of any rate increase over the study period.

Table 4-7: Summary of Projected Water Enterprise Revenues (Current Rates) Description Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
FY 2029
Water Revenues
Water Sales Revenue $3,365,362 $3,365,362 $3,365,362 $3,365,362 $3,365,362 $3,365,362 Fixed Charge Revenue $2,299,153 $2,299,153 $2,299,153 $2,299,153 $2,299,153 $2,299,153 Interest Income $30,797 $26,967 $39,121 $36,903 $34,081 $34,921 Riverview HOA and Reclaimed
Revenue $142,781 $172,765 $207,318 $234,270 $262,382 $293,868 Other Revenue $432,161 $10,000 $10,000 $10,000 $10,000 $10,000 Total $6,270,254 $5,874,247 $5,920,954 $5,945,687 $5,970,978 $6,003,304

4.2.2.WATER ENTERPRISE OPERATIONS & MAINTENANCE EXPENSES Table 4-8 shows a summary of all Water Enterprise O&M expenses over the study period. Raftelis worked closely with City staff to determine reasonable inflationary assumptions that were then used to project O&M expenses through FY 2028-29. O&M expenses are projected to increase by approximately 5 percent per year on average over the study period – excluding the change from FY2023-24 to FY 2024-25 which is due to onetime expenses being removed. All O&M expense projections were provided by City in current dollars and adjusted by Raftelis for estimated future inflation.

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Packet Pg. 315 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 27 Table 4-8: Projected Water Enterprise O&M Expenses
O&M Expenses Budgeted
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
FY 2029
Supply $760,318 $794,533 $830,287 $867,649 $906,694 $947,495 Reservoir $319,038 $341,371 $365,266 $390,835 $418,194 $447,467 Treatment $276,396 $288,196 $300,538 $313,449 $326,959 $341,098 Storage $239,936 $248,862 $258,119 $267,721 $277,681 $288,010 Distribution $130,253 $135,098 $140,124 $145,337 $150,743 $156,351 Fire $1,028,402 $1,077,081 $1,128,119 $1,181,633 $1,237,748 $1,296,593 Meters $453,957 $485,734 $519,735 $556,117 $595,045 $636,698 Customer $35,725 $37,291 $38,927 $40,634 $42,417 $44,279 Conservation $384,583 $398,971 $413,901 $429,392 $445,466 $462,145 General $1,668,899 $1,440,816 $1,511,069 $1,582,026 $1,736,804 $1,810,877 Total O&M Expenses $5,297,507 $5,247,953 $5,506,084 $5,774,793 $6,137,750 $6,431,013

4.2.3.WATER ENTERPRISE DEBT
Table 4-9 shows the Water Enterprise’s projected debt service obligations over the study period. Existing debt service consists of the City’s 2005 and 2014 debt service. Proposed Water Enterprise debt service associated with future capital project costs are also shown beginning in FY 2029. Note that proposed debt service terms (inflation, loan duration, issuance cost) represent preliminary projections based on the best information available at the time of this study.

Table 4-9: Water Enterprise Debt Service
Debt Service FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Existing Debt Service
Series 2005 D CSCDA
Revenue Bond $206,850 $204,475 $206,725 $208,475 $200,294 $202,200 Series 2014 Water
Refunding Bond $739,539 $575,420 $577,790 $423,547 $317,097 $315,411 Subtotal $946,389 $779,894 $784,515 $632,022 $517,391 $517,611 Proposed Debt Service
2027 Proposed Bonds $0 $0 $0 $0 $0 $758,333
Subtotal $0 $0 $0 $0 $0 $758,333
Total $946,389 $779,894 $784,515 $632,022 $517,391 $1,275,944

4.2.4.WATER ENTERPRISE CAPITAL IMPROVEMENT PROGRAM
Table 4-10 shows the City’s planned capital improvement program (CIP) for the Water Enterprise, amounting to approximately $28.2M over the five-year study period. No estimates were provided for FY 2023-24. The values shown are based on the most recently prepared multi-year CIP. To reduce immediate financial needs and financial impacts the CIP defers several infrastructure replacement projects for portions of the utility pipeline beyond their useful life. The plan further prioritizes the infrastructure rehabilitation and water treatment at the Dry Creek well

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field while deferring the water treatment of the Fitch well field. The City will discontinue use of the Fitch well field in FY 25-26 and will retain sufficient water supply to serve the Utility from the other remaining well fields. The deferral of these projects will not impact the immediate service provided by the Utility. Significant CIP expenditures are anticipated to continue over the next ten years, highlighting the need to maintain adequate reserves for future cash funded, and debt funded, CIP. Capacity-related project costs are not included in the CIP and revenue associated with capital recover fees are excluded from the revenue requirement.

Table 4-10: Water Enterprise Five-Year Capital Improvement Plan Project Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Cryptosporidium treatment At Fitch WTP $0 $0 $0 $0 $1,223,732 $0 Dry Creek WTP Upgrades - Cryptosporidium $0 $896,737 $0 $0 $0 $0 Dry Creek WTP Upgrades - Pumping and Clear well Improvements $0 $0 $0 $1,477,457 $0 $0 Dry Creek Wells Capacity Improvements $0 $0 $0 $0 $0 $1,456,416 Gauntlett WTP Membranes Replacement $0 $0 $0 $301,662 $319,376 $330,555 ASR Wells $0 $0 $0 $0 $0 $0
Fitch Treatment Building Modernization $0 $0 $0 $0 $0 $631,981 PFAS - Gauntlett $0 $0 $0 $0 $247,510 $4,057,160
PFAS - Fitch $0 $0 $0 $0 $262,587 $4,304,231
PFAS - Dry creek $0 $0 $0 $0 $255,049 $4,179,395
Dry Creek Chlorinator $0 $0 $0 $118,671 $0 $0
Fitch Chlorinator $0 $102,696 $0 $0 $0 $0
Gauntlett Reservoir Liner Replacement $0 $0 $0 $658,625 $0 $0 Passalacqua Pumps Rehab $0 $0 $0 $0 $0 $0
G2 Well Flow Meter $0 $0 $0 $100,871 $0 $0
PRV - North street $0 $0 $0 $0 $16,333 $0
PRV Villa Chanticleer $0 $0 $0 $0 $0 $16,905
PRV Latimer $0 $0 $0 $0 $0 $16,905
PRV Grant Street $0 $0 $0 $0 $0 $0
PRV Larkspur $0 $0 $0 $0 $0 $0
PRV Hidden Acres $0 $0 $0 $0 $16,333 $0
WTP Compressor #1 Replacement $0 $0 $0 $26,820 $0 $0
Water Treatment plant SCADA Computer $0 $7,411 $0 $0 $0 $0 Reconstruct Corp Yard Lift Station $0 $0 $0 $60,399 $0 $0 Gauntlett Well Field Pipeline Rehab/Replacement $0 $0 $0 $0 $273,895 $642,384 Fitch Well Field Pipeline Rehab/Replacement $0 $0 $0 $0 $591,763 $0 McDonough Water Transmission Main Replacement $0 $0 $0 $0 $182,052 $2,063,690 Brown Street Sewer & Water Replacement $0 $0 $1,330,576 $0 $0 $0 Reed Court & Bianca Lane Sewer & Water Replacement $0 $0 $0 $0 $0 $146,552 University Street Sewer & Water Replacement $0 $0 $128,258 $1,352,929 $0 $0 Healdsburg Ave Utility Replacement $0 $397,727 $0 $0 $0 $0 University Street Sewer and Water Replacement (North Street to Mason St) $0 $0 $0 $0 $0 $0 Johnson Street Sewer and Water $0 $0 $0 $0 $0 $0
Ongoing R&R $0 $0 $0 $0 $0 $0
Total CIP $0 $1,404,571 $1,458,834 $4,097,434 $3,388,631 $17,846,173

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Packet Pg. 317 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 29 Table 4-11 shows the funding plan for Water Enterprise CIP projects over the study period. As shown below, the City plans to fund its CIP projects through a combination of debt and cash-funding over the study period. Figure 4-1 shows a summary of total Water Enterprise CIP expenditures by funding source through FY 2028-29.

Table 4-11: Water Enterprise Capital Improvement Plan, by Funding Source Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Capital Improvement Plan
Rate Funded (PAYGO) $0 $1,404,571 $1,458,834 $4,097,434 $3,388,631 $4,846,173 Debt Funded $0 $0 $0 $0 $0 $13,000,000
Total $0 $1,404,571 $1,458,834 $4,097,434 $3,388,631 $17,846,173 Figure 4-1: Water Enterprise Capital Improvement Plan

4.2.5.WATER ENTERPRISE FINANCIAL POLICIES
Required Debt Coverage
The Water Enterprise is required to meet debt service coverage requirements on its outstanding water revenue bonds. Failure to meet debt service coverage results in a technical default, which without foreseeable remedial action such as implementing rate increases, could result in a downgrade of credit rating, higher costs in future debt issuance, or even denial of credit. The required debt coverage ratio is 1.20, meaning that the Water Enterprise’s net operating revenues (i.e. total revenues less operating expenses) must amount to at least 1.20 times the amount of annual debt service.

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Reserve Targets
Adequate cash reserves are required to meet operating, capital, and debt service requirements. The current operating reserve target is equal to 25% percent of annual O&M expenses. Raftelis recommends the City shift the reserve policy outlined in the previous study of establishing a capital reserve policy to a rate stabilization policy to streamline the approach, eliminating the earmarking of reserves for specific capital purposes, and instead utilizing them to support rates. As part of this transition, the City would allocate a portion of the reserve to offset increases over the next three fiscal years. Furthermore, when the City undertakes the next rate studies and adopts the next rate plan, it’s recommended that the City consider funding an additional one-million-dollar rate stabilization reserve, which can be used to address major equipment failures and natural disasters. The change will mitigate otherwise higher rate increases over the study period.

Table 4-12 summarizes the Water Enterprise’s key financial policies relevant to this rate study. Table 4-13 shows projected operating and capital reserve targets over the study period based on the policies outlined above.

Table 4-12: Water Enterprise Financial Policies
Financial Policy Target/Requirement
Debt Coverage
Target Debt Coverage Ratio 1.20
Reserve Targets
Operating Reserve Target 25% of annual O&M expenses
Rate Stabilization Target $1,000,000
Total Reserve Target 25% of annual O&M expenses + $1 million Table 4-13: Projected Water Enterprise Reserve Targets
Reserve Target FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Operating Reserve $1,324,377 $1,311,988 $1,376,521 $1,443,698 $1,534,437 $1,607,753 Rate Stabilization $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 Total Reserve Target $2,324,377 $2,311,988 $2,376,521 $2,443,698 $2,534,437 $2,607,753

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4.2.6.STATUS QUO WATER FINANCIAL PLAN
To evaluate the need for revenue adjustments (i.e. increases to gross rate revenues), Raftelis first developed a status quo financial plan. The status quo financial plan assumes that current rates remain unchanged over the study period. Table 4-14 combines projected water rate revenues (from Table 4-5), O&M expenses (from Table 4-8), and debt service (from Table 4-9) to generate operating cash flow projections under the status quo. In the absence of any revenue adjustments, the Water Enterprise will fail to generate sufficient revenue to recover O&M expenses and debt service, and net cash generation becomes increasingly negative in subsequent years.

Table 4-14: Water Enterprise Cash Flow – Status Quo Financial Plan Line Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Water Rate Revenue under Current Rates
2 Water Rates Subject to
Revenue Adjustments $5,664,515 $5,664,515 $5,664,515 $5,664,515 $5,664,515 $5,664,515 3 Non-Rate Revenues3$605,739 $209,732 $256,440 $281,173 $306,463 $338,789 4 Total Revenues $6,270,254 $5,874,247 $5,920,954 $5,945,687 $5,970,978 $6,003,304 5 6 O&M Expenses $5,297,507 $5,247,953 $5,506,084 $5,774,793 $6,137,750 $6,431,013 7 Debt Service $946,389 $779,894 $784,515 $632,022 $517,391 $1,275,944 8 Rate-Funded CIP $0 $1,404,571 $1,458,834 $4,097,434 $3,388,631 $4,846,173 9 Total Expenses $6,243,896 $7,432,418 $7,749,433 $10,504,249 $10,043,771 $12,553,130 24 25 Net Cash Flow4$26,358 ($1,558,171) ($1,828,479) ($4,558,561) ($4,072,793) ($6,549,826) 3 Includes miscellaneous revenues and interest income. Note that grant and loan revenue and the capital projects associated with them are excluded in this cashflow on both the revenue and expense side of the calculation. 4 Equal to [Line 18 – Line 23].

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Table 4-15 shows projected reserve balances and debt coverage under the status quo financial plan for the entire Water Enterprise. Sources of funds include both rate revenues and non-rate revenues, but do not include revenues from projected rate increases. Use of funds include O&M expenses (from Table 4-8), debt service (from Table 4-9), and CIP expenditures (from Table 4-11). The FY 2023-24 beginning balance reflects actual Water Enterprise reserve balances as of July 1, 2023. All ending balance and debt coverage figures are projected values. Target reserve balances shown are from Table 4-13.

Under the status-quo financial plan, reserves are projected to fall below target by the end of FY 2024-25. Debt coverage is projected to fall well below the required ratio in all years following FY 2024-25. The status quo financial plan is insufficient to meet the Water Enterprise’s financial needs over the study period. This demonstrates a clear need for revenue adjustments over the study period to increase rate revenues and ensure financial sustainability.

Table 4-15: Water Enterprise Pro Forma - Status Quo Financial Plan Line Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Projected Beginning
Balance $2,055,607 $2,081,965 $523,793 ($1,304,685) ($5,863,246) ($9,936,039) 2 3 Source of Funds
4 Status Quo Rate Revenues $5,664,515 $5,664,515 $5,664,515 $5,664,515 $5,664,515 $5,664,515 5 Other Revenues $605,739 $209,732 $256,440 $281,173 $306,463 $338,789 9 Total Source of Funds $6,270,254 $5,874,247 $5,920,954 $5,945,687 $5,970,978 $6,003,304 10 11 Use of Funds
12 O&M Expenses $5,297,507 $5,247,953 $5,506,084 $5,774,793 $6,137,750 $6,431,013 13 Debt Service $946,389 $779,894 $784,515 $632,022 $517,391 $1,275,944 14 Rate-Funded CIP $0 $1,404,571 $1,458,834 $4,097,434 $3,388,631 $4,846,173 15 Total Use of Funds $6,243,896 $7,432,418 $7,749,433 $10,504,249 $10,043,771 $12,553,130 16 17 Net Cashflow $26,358 ($1,558,171) ($1,828,479) ($4,558,561) ($4,072,793) ($6,549,826) 18 19 Projected Ending Balance5$2,081,965 $523,793 ($1,304,685) ($5,863,246) ($9,936,039) (16,485,866) 20 Operating Reserve Target $1,324,377 $1,311,988 $1,376,521 $1,443,698 $1,534,437 $1,607,753 21 22 Debt Coverage
23 Projected Debt Coverage6 1.03 0.80 0.53 0.27 (0.32) (0.34) 24 Required Debt Coverage 1.20 1.20 1.20 1.20 1.20 1.20

4.2.7.PROPOSED WATER FINANCIAL PLAN
The Water Enterprise must increase its revenues from water rates over the study period to adequately fund its operating and capital expenditures, meet required debt coverage, and maintain sufficient reserve funding. Raftelis worked closely with City staff to identify financial plan options for the City Council’s consideration. The selected option of proposed annual revenue adjustments are shown in Table 4-16. Revenue adjustments represent annual percent increases in total rate revenue relative to rate revenue generated by the prior year’s water rates. The proposed first-rate increase implementation date is July 1, 2024.
5 Equal to [Line 1 + Line 17]
6 Equal to [(Line 9 – Line 12) ÷ Line 13]

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Packet Pg. 321 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 33 Table 4-16: Proposed Water Enterprise Revenue Adjustments

PROPOSED INCREASE FUTURE INCREASES
Fiscal Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Effective Date July 1, 2024 July 1, 2025 July 1, 2026 July 1, 2027 July 1, 2028 Revenue Adjustment 21.0% 20.0% 13.0% 12.0% 12.0%
Table 4-17 combines projected rate and miscellaneous revenues (from Table 4-7), O&M expenses (from Table 4-8), and debt service (from Table 4-9) to generate operating cash flow projections under the proposed financial plan. By implementing the proposed revenue adjustments, we project that Water Enterprise will maintain sufficient operating cash flow through the end of the study period.

Table 4-17: Water Enterprise Cash Flow – Proposed Financial Plan Line Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Water Rate Revenue under Current Rates
2 Water Rates Subject to
Revenue Adjustments $5,664,515 $5,664,515 $5,664,515 $5,664,515 $5,664,515 $5,664,515 3 Non-Rate Revenues7$605,739 $209,732 $256,440 $281,173 $306,463 $338,789 4 Revenue Adjustments
5 Fiscal Year
6 FY 2025 21.00% $1,189,548 $1,189,548 $1,189,548 $1,189,548 $1,189,548 7 FY 2026 20.00% $1,370,813 $1,370,813 $1,370,813 $1,370,813 8 FY 2027 13.00% $1,069,234 $1,069,234 $1,069,234
9 FY 2028 12.00% $1,115,293 $1,115,293
10 FY 2029 12.00% $1,249,128
11 Total Adjustments $0 $1,189,548 $2,560,361 $3,629,595 $4,744,888 $5,994,016 12 13 Total Revenues $6,270,254 $7,063,795 $8,481,315 $9,575,282 $10,715,866 $11,997,320 14 15 O&M Expenses $5,297,507 $5,247,953 $5,506,084 $5,774,793 $6,137,750 $6,431,013 16 Debt Service $946,389 $779,894 $784,515 $632,022 $517,391 $1,275,944 17 Rate-Funded CIP $0 $1,404,571 $1,458,834 $4,097,434 $3,388,631 $4,846,173 18 Total Expenses $6,243,896 $7,432,418 $7,749,433 $10,504,249 $10,043,771 $12,553,130 19 20 Net Cash Flow8$26,358 ($368,623) $731,882 ($928,967) $672,095 ($555,811) Table 4-18 shows projected reserve balances and debt coverage under the proposed financial plan for the entire Water Enterprise. Sources of funds include status quo revenues (from Table 4-7), revenue adjustments (from Table 4-17), and miscellaneous revenues. Use of funds include O&M expenses (from Table 4-8), debt service (from Table 4-9), and rate-funded CIP expenditures (from Table 4-11). The 2024 beginning balances reflects actual Water Enterprise reserve balances as of July 1, 2023. All ending balance and debt coverage figures are projected values.

Target reserve balances shown are from Table 4-13. Under the proposed financial plan, reserve balances and debt coverage are projected to achieve target policies over the rate-setting period. 7 Includes miscellaneous revenues, interest income, and loan/grant revenues. 8 Equal to [Line 13 – Line 18].

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Packet Pg. 322 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 34 CITY OF HEALDSBURG
Table 4-18: Water Enterprise Pro Forma - Proposed Financial Plan Line Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Beginning Balance $2,055,607 $2,081,965 $1,713,342 $2,445,224 $1,516,257 $2,188,352 2 3 Source of Funds
4 Rate Revenues (including
adjustments) $5,664,515 $6,854,063 $8,224,875 $9,294,109 $10,409,402 $11,658,531 5 Other Revenues $605,739 $209,732 $256,440 $281,173 $306,463 $338,789 9 Total Source of Funds $6,270,254 $7,063,795 $8,481,315 $9,575,282 $10,715,866 $11,997,320 10 11 Use of Funds
12 O&M Expenses $5,297,507 $5,247,953 $5,506,084 $5,774,793 $6,137,750 $6,431,013 13 Debt Service $946,389 $779,894 $784,515 $632,022 $517,391 $1,275,944 14 Capital Improvement Plan
Expenditures $0 $1,404,571 $1,458,834 $4,097,434 $3,388,631 $4,846,173 15 Total Use of Funds $6,243,896 $7,432,418 $7,749,433 $10,504,249 $10,043,771 $12,553,130 16 17 Ending Balance9
$2,081,965 $1,713,342 $2,445,224 $1,516,257 $2,188,352 $1,632,541 18 Operating Reserve Target $1,324,377 $1,311,988 $1,376,521 $1,443,698 $1,534,437 $1,607,753 19 20
21 Debt Coverage
22 Projected Debt Coverage10 1.03 2.33 3.79 6.01 8.85 4.36 23 Required Debt Coverage 1.20 1.20 1.20 1.20 1.20 1.20 Figure 4-2 shows projected debt coverage (blue line) relative to the debt coverage requirement (grey line) all years after the initial rate-setting year (FY 2024-25). The City will begin meeting its debt coverage requirement of 1.20 in FY 2025 and remain above the minimum coverage requirement for the remainder of the study period. 9 Equal to [Line 1 + Line 9 – Line 15].
10 Equal to [(Line 9 – Line 12) / Line 13].

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Packet Pg. 323 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 35 Figure 4-2: Proposed Water Financial Plan – Projected Debt Coverage

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Packet Pg. 324 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 36 CITY OF HEALDSBURG
Figure 4-3 shows the Water Enterprise’s projected ending balances under the proposed financial plan. The light blue bars indicate the ending balance. The minimum reserve targets (based on the policies described above in Table 4-12) are shown by the orange line The Water Enterprise is projected to meet cash reserves over the study period and any additional reserves are used to offset capital expenses in the future years. The Water Enterprise’s reserves are projected to achieve the minimum goal target amount with the proposed and planned rate increases.

Figure 4-3: Proposed Water Financial Plan – Projected Ending Cash Balances

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Packet Pg. 325 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 37 Figure 4-4 shows the proposed versus status quo operating financial plan. Revenues under the status quo and proposed financial plans are represented by the blue and blacklines, respectively. Revenue requirements including O&M expenses, debt service, and reserve funding are represented by the various stacked bars. Revenue adjustments are required to generate sufficient revenue to recover O&M expenses and debt service payments over the study period.

Figure 4-4: Proposed vs. Status Quo Water Financial Plan

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Packet Pg. 326 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 38 CITY OF HEALDSBURG

4.3.Proposed Water Rate Structure Modifications
Raftelis worked closely with City staff to evaluate potential changes to the existing water rate structure. All proposed water rates presented in subsequent sections incorporate the following recommended revisions to the existing water rate structure.
o Residential Tiered Water Rates: The Study recommends that the City introduce a three-tiered rate structure for Residential water customers including Single-Family Residential (SFR) and Multi-Family Residential (MFR). MFR customers will receive tier allotments for each dwelling unit served. Tier 1 is defined as the first 5 units of water (HCF) per monthly billing period, reflecting average winter usage (January -March) for SFR customer rounded up to the nearest whole number. Tier 2 encompasses usage greater than 5 units and up to and including 10 HCF, representing summer peak (75th percentile in the July – September periods) demands of SFR customers rounded up to the nearest whole number. Tier 3 comprises all units of water usage exceeding 10 HCF. Residential users are a homogenous customer class with similar indoor needs for health and sanitation, similar outdoor irrigation needs, and similar seasonality in these demand patterns. It is therefore appropriate to tier this class of customers. The proposed monthly allotments for residential customers are shown below in Table 1-2 and reflect actual demand patterns of City water users. Note that non-residential customers will maintain a uniform rate structure.
o All Other Classes: The Study recommends that all other customer classes maintain a uniform rate structure, however, going forward each class will have a distinct uniform rate based on their specific demand characteristics. The new rates by customer class include those customers designated as Commercial, Industrial, and Landscape Irrigation. Non-residential classes have highly varying demand patterns within each class based on the type of business, seasonality, and/or transient effects. Peaking costs, also referred to as extra capacity costs, are costs associated with higher demand patterns. These costs are allocated to each customer class based on their specific class demand patterns and calculating peaking. For this reason, uniform rates are proposed for each of the non-residential classes.
» Monthly Service Charges: The Study recommends harmonizing the fixed service charges across user classes. This change will align Residential customers with a metered connection of a specific size with Non-Residential customers with the same size meter. The proposed structure relies on meter size alone to distinguish the “class” of customer. This change acknowledges that meter capacity, not customer classification, reflects the best estimate of the costs imposed by a user on the water system that are recovered through fixed charges.

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Packet Pg. 327 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 39 Table 4-19: Proposed Water Rate Structure Changes
Description Current Structure Proposed Structure
Residential (SFR/MFR)
Tier 1 Uniform Water Use
Rate (All Classes)
0-5 HCF
Tier 2 Uniform Water Use
Rate (All Classes)
6-10 HCF
Tier 3 Uniform Water Use
Rate (All Classes)
>10 HCF
Non-Residential Classes
Commercial Uniform Water Use
Rate (All Classes)
Uniform Water Use
Rate, by Class
Industrial Uniform Water Use
Rate (All Classes)
Uniform Water Use
Rate, by Class
Landscape Irrigation Uniform Water Use
Rate (All Classes)
Uniform Water Use
Rate, by Class
Table 4-20 shows estimated water use by tier under the proposed two-tier rate structure. All projections are based on detailed account-level analysis of FY 2022-23 actual water use. Raftelis projects that approximately 64% of all residential water use will fall within Tier 1 under the proposed three-tier residential rate structure.

Table 4-20: Projected Water Use by Class and Tier – Test Year Description
Projected
FY 2024-25
Water Use
(hcf)
Residential
Tier 1 217,661
Tier 2 62,452
Tier 3 61,781
Subtotal 341,894

Commercial 122,377
Industrial 13,035
Landscape 42,040
Total 519,346

4.4.Water Cost of Service Analysis
This section details the Cost-of-Service (COS) analysis performed for the Water Enterprise. The COS analysis allocates the overall rate revenue requirement to customer classes based on their proportion of use of and burden on the water system. This provides the basis for the development of proposed water rates through FY 2028-29.

4.4.1.METHODOLOGY
The first step in a COS analysis is to determine the revenue required from water rates. The total revenue requirement results from the financial plan in Section 4.2. The framework and methodology utilized to develop the COS analysis

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Packet Pg. 328 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 40 CITY OF HEALDSBURG
and to apportion the revenue requirement to each customer class and tier is informed by the processes outlined in the AWWA’s Manual M1.

COS analyses are tailored to meet the specific needs of each water system. However, there are four distinct steps in every COS analysis to recover costs from customers in an accurate, equitable, and defensible manner:

1. Cost functionalization: O&M expenses and capital assets are categorized by their function in the system.

Sample functions may include water supply, treatment, distribution, transmission, customer service, etc.

2. Cost causation component allocation: Functionalized costs are then allocated to cost causation components based on their burden on the system. The cost causation components include water supply, base delivery, extra-capacity, meters, and customer, among others. The revenue requirement is allocated accordingly to the cost causation components and results in the total share of the revenue requirement attributable to each cost component.

3. Unit cost development: The revenue requirement for each cost causation component is divided by the appropriate units of service to determine the unit cost of each.

4. Revenue requirement distribution: The unit cost is utilized to distribute the revenue requirement for each cost causation component to customer classes based on each customer class’s individual service units.

This method of functionalizing costs is consistent with the AWWA’s Manual M1 and is widely used in the water industry to perform COS analyses.

4.4.2.WATER RATE REVENUE REQUIREMENT
Table 4-21 shows the rate revenue requirement for FY 2024-25 (referred to throughout as the “test year”). The revenue requirement is divided into operating and capital categories (Columns C and D), which are later allocated based on either O&M expenses or capital assets. The revenue requirements (Lines 2-8) are equal to FY 2024-25 operating expenses, rate-funded CIP, and debt service costs. The revenue offsets (Lines 11-16) include miscellaneous rate revenue not subject to revenue adjustments, grants, and income from loans. These revenues are applied as offsets to the final rate revenue requirement. The reserve transfer adjustment (Line 19) is equal to FY 2024-25 negative net operating cash flow and represents the additional rate revenue required to offset reserve spending in the test year. All values are from the proposed financial plan operating cash flow (Table 4-17). Note that, because there is no adjustment in the test year (FY 2024-25), there is also no adjustment for a mid-year increase. Rate adjustments will instead begin after the test year, in FY 2024-25. The final rate revenue requirement (Line 24) is calculated as follows:

Total revenue required from rates (Line 24) = Revenue requirements (Line 8) - Revenue offsets (Line 16) - Adjustments (Line 21)

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Packet Pg. 329 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 41 Table 4-21: Water Enterprise Rate Revenue Requirement (Test Year) [A] [B] [C] [D] [F]
Line Description
Operating
Revenue
Requirement
Capital
Revenue
Requirement
Total
1 Revenue Requirements
2 O&M Expenses $5,247,953 $0 $5,247,953
6 Debt Service $0 $779,894 $779,894
7 Capital Expenditures - PAYGO $0 $1,404,571 $1,404,571 8 Total Revenue Requirements $5,247,953 $2,184,465 $7,432,418 9 10 Less Revenue Offsets
11 Miscellaneous Revenues -$182,765 $0 -$182,765
12 Interest Income – General -$26,967 $0 -$26,967
13 Total Revenue Offsets -$209,732 $0 -$209,732
14 15 Less Adjustments -$368,623 $0 -$368,623
16 Adjustment for Cash Balance $0 $0 $0
17 Adjustment for Mid-Year Increase
18 Total Adjustments -$368,623 $0 -$368,623
19 20 Total Revenue Requirement Without Offsets $5,247,953 $2,184,465 $7,432,418 21 Total Revenue Requirement $4,669,598 $2,184,465 $6,854,063

4.4.3.WATER SYSTEM PEAKING FACTORS
A significant portion of the costs of the water system are based on the peaking characteristics of the different customer classes. A water system is designed to meet different requirements, including average water demands, extracapacity/peak demands, and fire flow requirements. Peaking costs are divided into maximum day (Max Day) and maximum hour (Max Hour) demand. The Max Day demand is the maximum amount of water used in a single day over a full year. The Max Hour demand is the maximum use in an hour on the Max Day. For example, storage and treatment components of the water system are designed to handle Max Day requirements while the distribution system is designed for Max Hour demands.

Table 4-22 shows system-wide peaking factors for the City’s water system, which are used to derive the cost component allocation bases for Base Delivery, Max Day, and Max Hour costs. Base Delivery use is considered average daily demand over one year, which has been normalized to a factor of 1.00 (Column C, Line 1). The Max Day peaking factor (Column C, Line 2) indicates that the Max Day demand is 1.90 times greater than the average daily demand. Similarly, the Max Hour peaking factor (Column C, Line 3) shows that the Max Hour demand is

3.20 times greater than average demand. The allocation bases (Columns D-F) are calculated using the equations outlined below. Columns are represented in these equations as letters, and lines are represented as numbers. For example, Column D, Line 2 is shown as D2.

The Max Day allocations are calculated as follows:
» Base Delivery: C1 / C2 x 100% = D2
» Max Day: (C2 - C1) / C2 x 100% = E2

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Packet Pg. 330 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 42 CITY OF HEALDSBURG
The Max Hour allocations are calculated as follows:
» Base Delivery: C1 / C3 x 100% = D3
» Max Day: (C2 - C1) / C3 x 100% = E3
» Max Hour: (C3 - C2) / C3 x 100% = F3
Table 4-22: Water System Peaking Factors and Allocations [A] [B] [C] [D] [E] [F] [G]
Line Description Factor11 Base Max Day Max Hour Total
1 Base 1.00 100% 0% 0% 100%
2 Max Day 1.90 53% 47% 0% 100%
3 Max Hour 3.20 31% 28% 41% 100%
4 Average Max Day/Max Hour 42% 38% 20% 100%

4.4.4.FUNCTIONALIZATION AND ALLOCATION OF EXPENSES
After determining the revenue requirement and systemwide peaking allocation basis, the next step of the water COS analysis is to allocate O&M expenses and capital assets to the following functional categories:
» Water Supply: costs associated with the utilities supply of water » Treatment: costs associated with treating water to drinking water standards » Storage: costs related to water storage tanks and reservoirs » Distribution: costs related to delivering water to customers through pipelines from storage facilities to the metered connection
» Fire Protection: costs attributable to fireflow sizing for fire protection » Meters: costs of meter maintenance, servicing, and repair » Customer: costs of meter reading, billing, and other customer service functions » Conservation: costs associated with water conservation, outreach, and efficiency programs » General: operating costs not directly attributable to the above functions are allocated based on the overall cost functionalization
The functionalization of costs allows for the allocation of costs to cost causation components. Some cost causation components correspond directly to a functional category listed above. The cost causation components include:
» Water Supply: directly associated with the Water Supply functional category » Base Delivery: costs associated with providing water under average water demand conditions » Peaking (Max Day and Max Hour): extra-capacity costs associated with providing water during peak demand conditions
» Fire Protection: costs associated with providing fire flow capacity for fire protection » Meters: directly associated with the Meters functional category » Customer: directly associated with the Customer functional category » Conservation: directly associated with the Conservation functional category » General: directly associated with the General/Admin functional category » Revenue Offsets: miscellaneous revenues applied as offsets to the rate revenue requirement 11 Max Day and Max Hour assumptions were developed from the City’s most recent master plan, which was completed in 2016 and summarized peak data from 2010 to 2014. 5-year average peaks were used for this study.

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Packet Pg. 331 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 43 Table 4-23 shows the basis for allocating each functional category to the various cost causation components. This provides the basis for allocating O&M and capital expenses in the following subsections. Most functional categories are allocated entirely to the corresponding cost causation component. The allocation basis for functional categories not allocated entirely to a single cost causation component is as follows:
» Functional categories allocated based on Max Day demand: Storage, treatment, and transmission infrastructure is designed to accommodate maximum day water demand. Therefore, all Storage, Treatment, Storage/Treatment, and Transmission costs are allocated to the Base Delivery and Max Day cost causation components based on the Max Day allocation from Table 4-22. » Functional categories allocated based on Max Hour demand: Distribution infrastructure is designed to accommodate maximum hour water demand, therefore all Distribution costs are allocated to the Base Delivery, Max Day, and Max Hour cost causation components based on the Max Hour allocation from Table 4-22.

Table 4-23: Allocation of Functional Categories to Water Cost Causation Components [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K]
Line Functional
Category Base Max Day
Max
Hour Supply Conservation Meters Customer General Total
1 Water Supply 0% 0% 0% 100% 0% 0% 0% 0% 100%
2 Treatment 53% 47% 0% 0% 0% 0% 0% 0% 100%
3 Storage 53% 47% 0% 0% 0% 0% 0% 0% 100%
4 Distribution 31% 28% 41% 0% 0% 0% 0% 0% 100%
5 Fire12 42% 38% 20% 0% 0% 0% 0% 0% 100%
6 Meters 0% 0% 0% 0% 0% 100% 0% 0% 100%
7 Customer 0% 0% 0% 0% 0% 0% 100% 0% 100%
8 Conservation 0% 0% 0% 0% 100% 0% 0% 0% 100%
9 General 0% 0% 0% 0% 0% 0% 0% 100% 100%
12 Fire expenses are reallocated from max day and max hour to meter for public fire protection based on system capacity required for fire vs customer demand.

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Packet Pg. 332 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 44 CITY OF HEALDSBURG

4.4.5.WATER ENTERPRISE O&M EXPENSE ALLOCATION
The next step of the COS analysis is to develop an allocation basis for the operating revenue requirement based on the functionalization of the Water Enterprise’s O&M expenses. Raftelis worked with City staff to assign O&M expenses, by line item, to the most closely associated functional category. Table 4-24 shows a summary of FY 2024- 25 O&M expenses by functional category. This intermediate step is necessary to allocate total O&M expenses to individual cost causation components.

Table 4-24: Water Enterprise O&M Expenses by Functional Category [A] [B] [C] [D]
Line Functional Category FY 2024-25
O&M Expenses Percent of Total
1 Water Supply $436,652 8.3%
2 Treatment $2,142,743 40.8%
3 Storage $108,073 2.1%
4 Distribution $1,398,346 26.6%
5 Meters $345,839 6.6%
6 Customer $286,181 5.5%
7 Conservation $31,116 0.6%
8 General $499,003 9.5%
9 Total O&M Expenses $5,247,953 100%
Table 4-25 shows the allocation of FY 2024-25 O&M expenses by functional category to each cost causation component. The percentage allocation of each functional category (Columns C-J) to the various cost causation components were determined in Table 4-23. Total O&M expenses associated with each functional category (Column K) were determined in Table 4-24. The total dollar amount allocated to each cost causation component (Line 9) is determined by multiplying the total expense associated with each functional category by the corresponding percentage allocation and summing across all functional categories.

Table 4-25: Allocation of Water Enterprise O&M Expenses to Cost Causation Components [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K]
Line Functional
Category Base Max
Day
Max
Hour Supply Conservation Meters Customer General Total
O&M
1 Water
Supply $0 $0 $0 $436,652 $0 $0 $0 $0 $436,652
2 Treatment $1,127,759 $1,014,983 $0 $0 $0 $0 $0 $0 $2,142,743 3 Storage $56,881 $51,192 $0 $0 $0 $0 $0 $0 $108,073
4 Distribution $436,983 $393,285 $568,078 $0 $0 $0 $0 $0 $1,398,346 5 Meters $0 $0 $0 $0 $0 $345,839 $0 $0 $345,839
6 Customer $0 $0 $0 $0 $0 $0 $286,181 $0 $286,181
7 Conservation $0 $0 $0 $0 $31,116 $0 $0 $0 $31,116
8 General $0 $0 $0 $0 $0 $0 $0 $499,003 $499,003
9 Total O&M $1,621,623 $1,459,461 $568,078 $436,652 $31,116 $345,839 $286,181 $499,003 $5,247,953 10 11 O&M
Allocation 30.9% 27.8% 10.8% 8.3% 0.6% 6.6% 5.5% 9.5% 100%

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Packet Pg. 333 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 45

4.4.6.WATER ENTERPRISE CAPITAL ALLOCATION
Capital assets are utilized in COS analyses to allocate the capital revenue requirement to the various cost causation components. The distribution of short-term CIP project costs can be heavily weighted to specific cost causation components based on the type of projects. Use of short-term plans to allocate capital costs may cause rates to fluctuate and result in customer confusion. The overall water asset base, however, is considerably stable in the long-term, and therefore is more representative of long-term capital investment in the City’s water system. Thus, functionalized capital assets are used to allocate capital costs.

City staff provided Raftelis with a detailed capitalized asset database that included the original cost of each individual asset. Raftelis calculated the replacement cost less depreciation (RCLD) of each asset based on net book value using the Engineering News-Record’s 20-City Average Cost Construction Index (CCI) to account for capital cost inflation. As part of the capital asset analysis and with assistance from City staff, Raftelis assigned each individual asset to a functional category. Total water asset value (RCLD) by functional category is shown in Table 4-26. Percentages are rounded to the nearest one-tenth of one percent.

Table 4-26: Summary of Water Enterprise Capital Assets by Functional Category [A] [B] [C] [D]
Line Functional Category Asset Value
(RCLD) Percent of Total
1 Water Supply $0 0%
2 Treatment $6,600,000 31%
3 Storage $900,000 4%
4 Distribution $9,535,414 44%
5 Fire $4,407,417 21%
6 Meters $11,648 0%
7 Customer $0 0%
8 Conservation $0 0%
9 General $0 0%
10 Customer $0 0%
11 Total Asset Value (RCLD) $21,454,479 100%
Table 4-27 shows the allocation of capital assets by functional category to each cost causation component. The percentage allocation of each functional category (Columns C-J) to the various cost causation components was determined in Table 4-23. Total asset value associated with each functional category (Column K) was determined in Table 4-26. The total dollar amount allocated to each cost causation component (Line 10) is determined by multiplying the total asset value associated with each functional category by the corresponding percentage allocation and summing across all functional categories. This is consistent with the methodology used to determine the allocation of O&M expenses to cost causation components in Table 4-25 (described in detail in Section 4.4.5). The initial capital allocation percentages (Line 12) represent the proportion of total capital assets allocated to each cost causation component (Line 10). The total capital revenue requirement (Column K, Line 14) equals the capital revenue requirement from Table 4-21, Column D, Line 21.

Table 4-27: Allocation of Functionalized Water Capital Assets to Cost Causation Components [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K]
Line Functional
Category Base Max
Day
Max
Hour Supply Conservation Meters Customer General Asset
Value

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(RCLD)
1 Supply $0 $0 $0 $0 $0 $0 $0 $0 $0
2 Treatment $3,473,684 $3,126,316 $0 $0 $0 $0 $0 $0 $6,600,000 3 Storage $473,684 $426,316 $0 $0 $0 $0 $0 $0 $900,000
4 Distribution $2,979,817 $2,681,835 $3,873,762 $0 $0 $0 $0 $0 $9,535,414 5 Fire $1,848,505 $1,663,655 $895,257 $0 $0 $0 $0 $0 $4,407,417 6 Meters $0 $0 $0 $0 $0 $11,648 $0 $0 $11,648
7 Customer $0 $0 $0 $0 $0 $0 $0 $0 $0
8 Conservation $0 $0 $0 $0 $0 $0 $0 $0 $0
9 General $0 $0 $0 $0 $0 $0 $0 $0 $0
10 Total Assets $8,775,691 $7,898,122 $4,769,019 $0 $0 $11,648 $0 $0 $21,454,479 11 12 Capital
Allocation 40.9% 36.8% 22.2% 0.0% 0.0% 0.1% 0.0% 0.0% 100.0% 13 14
Capital
Revenue
Requirement $893,529 $804,176 $485,575 $0 $0 $1,186 $0 $0 $2,184,465

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Packet Pg. 335 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 47

4.4.7.PEAKING UNITS OF SERVICE
Peaking units of service are developed to calculate unit peaking costs (Max Day and Max Hour) for each customer class and tier and provide a basis to reallocate the extra-capacity costs of Fire Protection in subsequent steps of the COS analysis. Fire protection, like hydrants, contribute to system capacity-related costs (i.e. peaking costs), and therefore are reallocated a portion of Max Day and Max Hour costs.

Table 4-28 shows the calculation of peaking units of service for non-fire related water service. These calculations attribute peaking costs to specific customer classes based on actual water use patterns. Raftelis estimates Max Day (Column E) and Max Hour (Column H) factors based on actual FY 2022-23 water use and system-wide peaking factors (from Table 4-22). The Max Day factor is derived using the max month factor calculated from the customer billing data. Utilizing the actual water use data, organized by billing period, and accounting for use by class and tier, Raftelis derives a ratio of maximum period to average period. This ratio becomes the proxy for the max day factor.

The Max Hour factor is the max day ratio multiplied proportionally by the ratio of system max hour to max day.

Projected FY 2022-23 water use in Column C (from Table 4-4) is divided by 365 days to determine average daily water use (Column D). Average daily use in Column D is then multiplied by the Max Day factor (Column E) to determine Max Day demand (Column F). Max Day requirements (Column G) are determined by subtracting average daily water use (Column D) from Max Day demand (Column F). Max Hour requirements (Column J) are similarly calculated. Max Hour demand (Column I) equals average daily water use (Column D) multiplied by the Max Hour factor (Column H). Max Hour requirements (Column J) equal Max Hour demand (Column I) less Max Day demand (Column F).

Table 4-28: Peaking Units of Service by Customer Class
[A] [B] [C] [D] [E] [F] [G] [H] [I] [J]
Line Customer
Class
Annual
Water
Use
(hcf)
Average
Daily
Water
Use (hcf)
Max
Day
Factor
Max Day
Demand
(hcf/day)
Max Day
Requirements
(hcf/day)
Max
Hour
Factor
Max
Hour
Demand
(hcf/day)
Max
Hour
Requirements
(hcf/day)
1 Residential
2 Tier 1 217,661 596 1.12 669 72 1.89 1,126 457
3 Tier 2 62,452 171 1.53 261 90 2.57 440 179
3 Tier 3 61,781 169 1.97 333 164 3.31 561 228
4 Subtotal 341,894 937 1.35 1,263 326 2.27 2,127 864
5 6 Non-Residential
7 Commercial 122,377 335 1.35 452 117 2.27 761 309
8 Industrial 13,035 36 1.74 62 27 2.94 105 43
9 Landscape 42,040 115 2.08 239 124 3.50 403 164
10 Total 519,346 1,423 2,016 593 3,396 1,380
Table 4-29 shows the methodology13 used to calculate peaking units of service associated with fire protection based on a hypothetical fire duration and flow rate in gallons per minute (gpm):

Max Day Requirements (HCF/day) = Duration of Fire (hrs) × Water Use Rate (gpm) × 60 mins/hr ÷ 748.05 gallons/HCF Max Hour Requirements (HCF/day) = [Water Use Rate (gpm) × 60 mins/hr × 24 hrs/day ÷ 748.05 gallons/HCF] – Max Day Requirements (HCF/day)
13 Per the AWWA Manual M1.

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Packet Pg. 336 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 48 CITY OF HEALDSBURG
Table 4-29: Fireflow Analysis
[A] [B] [C]
Line Description Value
1 Duration of Fire (Hours) 2.0
2 Water Use Rate (gallons per minute) 1,500
3 Max Day Requirements (HCF/Day) 241
4 Max Hour Requirements (HCF/Day) 2,647
Table 4-30 shows the distribution of Fire Protection Max Day and Max Hour requirements (from Table 4-29) to customer Max Day and Max Hour requirements (Table 4-28) to determine the proportion of system capacity reserved for fire protection.

Table 4-30: Allocation of Peaking Units to Fire Protection [A] [B] [C] [D]
Line Description Max Day Max Hour
1 Fire Protection Capacity Requirements 241 2,647
2 Customer Demand Capacity Requirements 593 1,380
4 Total Capacity Requirements 834 4,027
5 6 Proportion of System Capacity
Fire Protection Capacity 28.9% 65.7%
Customer Demand Capacity 71.1% 34.3%
6 Total 100.0% 100.0%
Peaking units of service (from Table 4-28 and Table 4-30) are summarized below in Table 4-31. The percentage of Max Day and Max Hour Requirements attributed to each customer class is shown in Columns D and F respectively.

Table 4-31: Summary of Total Customer Demand Peaking Units [A] [B] [C] [D] [E] [F]
Line Customer Class
Max Day
Requirements
(HCF/Day)
% of Max Day
Requirements
Max Hour
Requirements
(HCF/Day)
% of Max Hour
Requirements
1 SFR
2 Tier 1 72 9% 457 11%
3 Tier 2 90 11% 179 4%
4 Tier 3 164 20% 228 6%
5 Subtotal 326 39% 864 21%
6 7 Non-Residential
8 Commercial 117 14% 309 8%
9 Industrial 27 3% 43 1%
10 Landscape 124 15% 164 4%
11 Fire Capacity 241 29% 2,647 66%
12 Total 593 100% 1,380 100%

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Packet Pg. 337 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 49

4.4.8. DEVELOPMENT OF UNIT COSTS
The next step in the COS is to allocate total revenue requirement costs to cost components using the allocation methods developed above in Table 4-23,
Table 4-25, and Table 4-27. These costs include FY 2024-25 operating expenses, capital expenditures, and revenue offsets (including miscellaneous revenues, and loan/grant revenues for FY 2024-25). The total revenue requirement (including operating expenses, capital expenses, and revenue offset) is distributed to cost causation components based on the allocation percentages described above.

Table 4-32: Allocation of Revenue Requirement to Cost Components [A] [B] [C] [D]
Line Description Test Year Revenue
Requirement Allocation Basis
1 Operating Expenses $4,669,598 O&M (see
Table 4-25)
2 Capital Expenses $2,184,465 Capital allocation (see Table 4-27) 3 Total Revenue Requirement $6,854,063
he allocations above provide the basis for the adjusted COS shown below in line 1 of the table. These costs are then divided by relevant units of service (total water use, max day/hour use, equivalent meters, or annualized bills) to produce the unit cost shown below in line 6. In the next section, these unit costs are applied to customer classes based on each classes’ respective units of service.

Table 4-33: Derivation of Cost-of-Service Unit Rates
[A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K] [L]
Lin
e
Descriptio
n
Base Max
Day
Max
Hour Supply Conservation Meters Customer
Fire General Total
1 Total
Adjusted
COS
$2,498,279 $959,798 $217,831 $415,443 $29,605 $2,460,826 $272,280 $014 $015 $6,854,063
2 3 Units of
Service 519,346 593 1,380 519,346 519,346 67,234 57,552 0 57,552 4 Units hcf hcf hcf/day hcf/day hcf equivale
nt meters
annuali
zed bills
Fire
Capacity
annualiz
ed bills
5 6 Unit Cost $4.81 $1,617.6
4 $157.91 $0.80 $0.06 $36.60 $4.73 $0.00 $0.00
7 Units $/hcf $/hcf $/hcf/d
ay
$/hcf/d
ay
$/private
fire lines
$/equiva
lent
meters
$/annu
alized
bills
$
hcf/day
$/annual
ized bills
14 Public fire costs are reallocated to the meter component and recovered from the meter service charges, by meter size. 15 Per industry standard, general costs are reallocated proportionally to the other cost components.

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Packet Pg. 338 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 50 CITY OF HEALDSBURG

4.4.9.WATER COST ALLOCATION TO CUSTOMER CLASSES
The final cost of service allocation determines how much revenue must be recovered from the City’s water rates and charges. Each cost causation component is recovered by either a fixed charge (in monthly terms) or volumetric rate (per hcf). Table 4-34 details which cost components are recovered by which type of rate.

Table 4-34: Recovery of Cost Causation Components by Charge Type [A] [B] [C]
Line Cost Causation
Component Associated Charge
1 Water Supply Volumetric Rates
2 Base Delivery Volumetric Rates
3 Max Day Fixed & Volumetric Rates
4 Max Hour Fixed & Volumetric Rates
5 Fire Fixed Charges
6 Meter Fixed Charges
7 Customer Fixed Charges
8 Conservation Volumetric Charges
9 General Reallocated Pro Rata
Table 4-35 shows the projected COS values by customer class and tier. These values are developed by taking the units of service for each customer class (equivalent meters, customer bills, annual average demand, and max day/max hour demands by customer class) and multiplying by the unit rates derived in Table 4-33. These provide the basis for the total cost-to-serve each class, which are then used to develop fixed and variable rates for each customer class/tier in later sections. Note that the total cost to serve in Line 10, Column M is equal to the total revenue requirement derived for FY 2023-24 in Table 4-21.

Table 4-35: Cost to Serve by Water Customer Class
[A] [B] [C] [D] [E] [F] [G] [I] [J] [M]
Lin
e
Description Base Max Day Max
Hour Supply Conservation Meters Customer
Total
1 SFR $1,934,648 $234,129 $2,168,777
2 Tier 1 $1,047,044 $116,820 $72,230 $174,115 $12,407 $1,422,617 3 Tier 2 $300,421 $146,022 $28,239 $49,958 $3,560 $528,199 4 Tier 3 $297,193 $264,828 $35,975 $49,421 $3,522 $650,939 5 Subtotal $1,644,658 $527,671 $136,444 $273,493 $19,489 $1,934,648 $234,129 $4,770,532 6 7 Commercial $588,686 $188,528 $48,815 $97,894 $6,976 $373,244 $28,216 $1,332,359 8 Industrial $62,704 $43,012 $6,731 $10,427 $743 $40,847 $2,157 $166,621 9 Landscape $202,231 $200,588 $25,841 $33,629 $2,396 $112,087 $7,778 $584,550 10 Total $2,498,279 $959,798 $217,831 $415,443 $29,605 $2,460,826 $272,28 0 $6,854,06
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Packet Pg. 339 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 51

4.5.Proposed Water Rates
Section 4.5 shows detailed calculations of proposed water rates through FY 2028-29. All proposed rates are first calculated directly from the results of the COS analysis (in Section 4.4) for FY 2024-25 (i.e. the “test year”). All FY 2024-25 “COS” rates and charges shown represent intermediate, revenue neutral results of the rate design process.

FY 2022-24 “COS” rates and charges must be calculated to provide a basis for proposed rates for FY 2024-25 through FY 2028-29 which rely on the results of the financial plan.

4.5.1.WATER SERVICE CHARGES (TEST YEAR FY 2024-25)
Table 4-36 shows the calculation of equivalent meters, which is necessary to differentiate Water Service Charges by meter size. Meter capacity ratios (Column D) are first calculated by dividing meter capacity (Column C) by 30 gallons per minute (gpm). Meter capacity ratios (Column D) are then multiplied by the number of water meters at each meter size in Column E to determine equivalent meters (Column F). Equivalent meters in this study are based on AWWA-rated hydraulic capacities16 and are calculated to represent the potential demand on the water system relative to a base meter size.

Table 4-36: Equivalent Water Meters (Test Year)
[A] [B] [C] [D] [E] [F]
Line Meter Size Meter Capacity
(gpm)
Meter Capacity
Ratio
Number of
Meters
Number of
Equivalent Meters
1 3/4-inch water meter 30 1.00 0 0
2 1-inch water meter 50 1.00 4,460 4,460
3 1.5-inch water meter 100 2.00 132 264
4 2-inch water meter 160 3.20 157 502
5 3-inch water meter 320 6.40 26 166
6 4-inch water meter 500 10.00 21 210
7 6-inch water meter 1000 20.00 0 0
9 Total 4,796 5,603
Water Service Charges are designed to recover costs associated with the Customer and Meters cost causation components. Table 4-37 shows the calculation of unit charges for the Customer and Meters cost causation components by dividing the total revenue requirement associated with each cost causation component (from Table 4-32) by the number of billing units.

Customer unit charges are calculated per customer bill. Meter unit charges are calculated per equivalent meter.

Equivalent meters are used to allocate meter-related costs appropriately and equitably. Larger meters impose larger demand, are more expensive to install, maintain, and replace than smaller meters, and have greater capacity potential within the water system. The resulting unit costs are shown below. 16 From the AWWA’s Manual of Water Supply Practices M22: Sizing Water Service Lines and Meters (Third Edition).

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Packet Pg. 340 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 52 CITY OF HEALDSBURG
Table 4-37: Water Service Charge Calculation (Test Year) Description Customer Meters
COS Allocation $272,280 $2,460,826
Billing Units 57,552 Bills 67,234 Annual Equivalent
Meters
Unit Charge (per Month) $4.73 per Bill $36.60 per Equivalent Meter Table 4-38 shows the detailed calculation of monthly Water Service Charges for the test year based on Customer and Meters unit charges. Customer costs do not vary by meter size. Therefore, the Customer unit rate is applied uniformly to all Water Service Charges (Column F). Because Meters costs vary by meter size based on hydraulic capacity, AWWA capacity ratios in Column C (from Table 4-36) are used to differentiate Meters unit charges by meter size.

The Meters charges (Column D) are calculated by multiplying the Meters unit charge (from Table 4-37) by the AWWA capacity ratio (Column C). COS monthly Water Service Charges (Column G) equal the sum of Columns D-F, and are compared to current FY 2022-23 charges in Columns I and J.

Table 4-38: Water Service Charges Calculation (Test Year) [A] [B] [C] [D] [F] [G] [H] [I] [J]
Line Meter
Size
Meter
Capacity
Ratio
Meter Customer
COS
Monthly
Charge
Current
Monthly
Charge
Difference
($) Difference (%)
1 3/4" 1.00 $36.60 $4.73 $41.34 $45.26 -$3.92 -9%
2 1" 1.00 $36.60 $4.73 $41.34 $45.26 -$3.92 -9%
3 1 1/2" 2.00 $73.20 $4.73 $77.94 $86.90 -$8.96 -10%
4 2" 3.20 $117.12 $4.73 $121.86 $136.86 -$15.00 -11%
5 3" 6.40 $234.25 $4.73 $238.98 $253.46 -$14.48 -6%
6 4" 10.00 $366.01 $4.73 $370.75 $419.91 -$49.16 -12%
7 6" 20.00 $732.02 $4.73 $736.76 $1,127.75 -$390.99 -35%

4.5.2.WATER VOLUME RATES (TEST YEAR)
Water Volume Rates are designed to recover the portion of the rate revenue requirement allocated to the following cost causation components: Water Supply, Base Delivery, Peaking (Max Day and Max Hour), and Conservation.

Supply rates are applied uniformly to all customer classes as the rates cover the cost of water supply. This rate is calculated by taking the total adjusted COS value for Base (shown in Table 4-33 above) and dividing by the total number of billing units (in hcf).

Table 4-39: Calculation of Supply Rates by Customer Class and Tier Description Base
Delivery
COS Allocation $415,443
Billing Units (HCF) 519,346
Unit Rate ($ / HCF) $0.80

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Packet Pg. 341 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 53 Base Delivery Unit Rate
Base Delivery unit rates are applied uniformly to all customer classes and tiers as these are costs incurred to provide water service during average daily demand conditions. This rate is calculated by taking the total adjusted COS value for Base (shown in Table 4-33 above) and dividing by the total number of billing units (in hcf). Table 4-40 shows the calculation of Base Delivery unit rates.

Table 4-40: Calculation of Base Delivery Rate
Description Base Delivery
COS Allocation $2,498,279
Billing Units (HCF) 519,346
Unit Rate ($ / HCF) $4.81
Peaking Unit Rate
Peaking unit rates vary by customer class and tier based on peak water use characteristics. The allocation of these costs is based on the COS allocation of Max Day and Max Hour factors by customer class and tier, developed earlier in Table 4-35. The individual class/tier peaking rates are developed by taking the total allocation for Max Day and Max Hour by customer class and tier (Column C) and dividing by the total water use in each tier/class (Column B). Table 4-41 shows this calculation and the resulting rates (Column D).

Table 4-41: Calculation of Peaking Unit Rates
[A] [B] [C] [D]
Description Water Use
(hcf)
Capacity
Costs (Max
Day + Max
Hour)
Unit Rate ($/hcf)
SFR
Tier 1 217,661 $189,051 $0.87
Tier 2 62,452 $174,261 $2.79
Tier 3 61,781 $300,803 $4.87
Commercial 122,377 $237,344 $1.94
Industrial 13,035 $49,743 $3.82
Landscape 42,040 $226,429 $5.39
Total 519,346 $1,177,630
Conservation Unit Rate
Conservation costs are the costs associated with customer outreach, messaging, and direct conservation programs The total COS costs for conservation, by customer class (from Table 4-35) is divided by the total demands for each tier to determine a per HCF rate. Conservation costs are first allocated to both rate classes and then differentiated by residential tier. Because conservation efforts are aimed at curtailing high volume water use, the costs of SFR conservation are allocated entirely to Tier 3. Non-Residential’s share of conservation is recovered uniformly over

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Packet Pg. 342 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 54 CITY OF HEALDSBURG
every unit of water since this class has a uniform rate structure; the conservation calculation is simply the total cost divided by the total water use for that class. Table 4-42 shows the calculation of conservation rates.

Table 4-42: Calculation of Conservation Unit Rates
Description
Water
Demand
(hcf)
Conservation
Costs Unit Rate ($/hcf)
SFR
Tier 1 217,661 $0 $0.00
Tier 2 62,452 $0 $0.00
Tier 3 61,781 $19,489 $0.32
Non-Residential
Commercial 122,377 $6,976 $0.06
Industrial 13,035 $743 $0.06
Landscape 42,040 $2,396 $0.06
Total 519,346 $29,605
Water Volume Rate Calculation (Test Year)
Table 4-43 shows the calculation of Water Volume Rates for the test year. The final rate is summing the individual class/tier rates for each component developed above (water supply, base, peaking, and conservation). No revenue adjustments are incorporated into the COS rates shown, which are designed to collect the same amount of revenue as current water rates. The relevant tables for the calculation of each component are shown below:
» Water Supply Unit Rates (from Table 4-39)
» Base Delivery Unit Rates (from Table 4-40)
» Peaking Unit Rates (from Table 4-41)
» Conservation Unit Rates (from Table 4-42)
Table 4-43: Water Use Rates Calculation (Test Year)
[A
] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K]
Li
ne
Customer
Class
By
Class/
Tier
(HCF)
Water
Suppl
y Unit
Rate
Base
Cost
Unit
Rate
Peaki
ng
Unit
Rate
Conser
vation
Unit
Rate
Proposed
COS
Rate
($/hcf)
Current
Rate
($/hcf)
Differenc
e ($)
Differenc
e (%)
1 SFR
2 Tier 1 217,661 $0.80 $4.81 $0.87 $0.00 $6.48 $6.48 $0.00 0.0% 3 Tier 2 62,452 $0.80 $4.81 $2.79 $0.00 $8.41 $6.48 $1.93 29.8% 4 Tier 3 61,781 $0.80 $4.81 $4.87 $0.32 $10.80 $6.48 $4.32 66.7% 5 6 Commercia
l 122,377 $0.80 $4.81 $1.94 $0.06 $7.61 $6.48 $1.13 17.4% 7 Industrial 13,035 $0.80 $4.81 $3.82 $0.06 $9.49 $6.48 $3.01 46.5% 8 Landscape 42,040 $0.80 $4.81 $5.39 $0.06 $11.06 $6.48 $4.58 70.7%

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Packet Pg. 343 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 55 Proposed Five-Year Rates Schedule
Table 4-44 shows the proposed three-year schedule of water rates for implementation July1, 2024 through July 2026. July 2024 rates are calculated by taking the final proposed rate in Table 4-43 and multiplying by the proposed revenue adjustment shown in Table 4-16. The rates for the remaining years of the study are calculated by multiplying each year’s rate by the proposed adjustment shown for that year in Table 4-16.

Table 4-44: Proposed Three-Year Water Rates Schedule
Description Current FY 2025 FY 2026 FY 2027
Residential Fixed Monthly Service Charge
Single Family $28.61 By Meter Size By Meter Size By Meter Size Single Family + ADU (per DU) $21.84 By Meter Size By Meter Size By Meter Size Multi-Family (Per DU) $17.01 By Meter Size By Meter Size By Meter Size Fixed Monthly Service Charges
Up to 1" $45.26 $41.34 $49.61 $56.06
1 1/2" $86.90 $77.94 $93.53 $105.69
2" $136.86 $121.86 $146.24 $165.26
3" $253.46 $238.98 $286.78 $324.07
4" $419.91 $370.75 $444.90 $502.74
6" $1,127.75 $736.76 $884.12 $999.06
Residential (Single Family & Multi-Family)
Tier 1 (0-5 HCF) $6.48 $6.48 $7.78 $8.80
Tier 2 (6-10 HCF) $6.48 $8.41 $10.10 $11.42
Tier 3 >10 HCF $6.48 $10.80 $12.96 $14.65
Non-Residential Classes
Commercial $6.48 $7.61 $9.14 $10.33
Industrial $6.48 $9.49 $11.39 $12.88
Landscape $6.48 $11.06 $13.28 $15.01
Riverview HOA17 $1.59 $1.93 $2.32 $2.63
17 Only the volumetric rate applicable to Riverview HOA under the terms of the 1997 order of condemnation. HOA Riverview pays a fixed monthly service charge by meter size that increases based schedule.

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Packet Pg. 344 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 56 CITY OF HEALDSBURG

5.Wastewater Rate Study

5.1.Key Inputs and Assumptions
Raftelis developed a wastewater rate model to project financial calculations over the next ten fiscal years with projections shown in this report through the five-year rate-setting period of FY 2028-29 (i.e. the “study period”).

While the study period consists of five years, the proposed rates for adoption are for only the first three years only.

The City’s fiscal year spans from July 1 through June 30. Projections in future years were informed by actual data for FY 2021-22 or FY 2022-23, or the adopted budget for FY 2023-24 using key assumptions outlined below.

Assumptions were discussed with, and reviewed by, City of Healdsburg Public Works and Finance staff to ensure that the City wastewater system’s unique characteristics are accurately accounted for. Note that most table values shown throughout this report are rounded to the last digit shown and may therefore not sum precisely to the totals shown.

The proposed rates are predicated on a shift in current adopted reserve policy outlined in the 2022 rate study.

Failure to adopt the recommended changes may result in higher projected rates to adhere to the existing minimum coverage requirement. Raftelis recommends transitioning from a capital reserve policy to a rate stabilization policy to streamline the approach, eliminating the earmarking of reserves for specific capital purposes and instead utilizing them to complete preemptive capital replacement and fund maintenance costs in a manner that stabilizes rates support rates. As part of this transition, the City would allocate a portion of the reserve to offset increases over the next three fiscal years. As a result, the proposed financial plan fully funds the operating reserve, but it does not fully fund the rate stabilization reserve. When the City undertakes the next rate study, it is recommended that the City consider fully funding the rate stabilization reserve in the financial plan.

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Packet Pg. 345 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 57

5.1.1.CURRENT WASTEWATER RATES
Table 5-1 shows the wastewater rates currently in effect in FY 2023-24, which were developed during the prior rate study in 2022. Rates and charges vary by customer class. Residential customers are subject to a monthly Fixed Charge per dwelling unit and a variable flow charge per Average Winter Consumption (AWC) over January to April, with highest month usage being omitted; non-residential customers are subject to a fixed charge by meter size and a variable Flow Charge based on actual water use and strength category for each billing period. All current charges are shown on a monthly basis.

Table 5-1: Current Wastewater Rates Schedule
Description FY 2024
Residential Service Charges
($/Month/Dwelling Unit)
Single Family Residential (SFR) $46.67
SFR + ADU $31.95
Multi-Family Residential (MFR) $37.80
Flat Rate (Sewer Only SFR) $104.01
Non Residential Service Charges
($/Month/Meter)
5/8" $75.75
1" $75.75
1 1/2" $148.49
2" $235.77
3" $439.44
4" $730.39
6" $1,966.94
Wastewater Usage Charges ($/HCF)
Residential (SFR/MFR) $11.47
Non Residential
Low Strength $10.31
Medium Strength $15.09
High Strength $22.08

5.1.2.WASTEWATER ENTERPRISE FINANCIAL ASSUMPTIONS
Inflationary assumptions shown in Table 5-2 are used to escalate projected non-rate revenues and operations and maintenance (O&M) expenses beyond FY 2023-24. For O&M expenses, the general inflation rate is consistent with long-term changes in the Consumer Price Index (CPI). Specifically, increases in salaries and cost-of-living adjustments (COLA) match the annual percentage changes in wages and salaries reported by the CPI. At the direction of city staff, adjustments for salary/employee benefits and electricity costs have been made. Electricity cost adjustments directly reflect the estimated rate increases provided by the city's electric suppliers. Utility costs have been updated to mirror the changes in fuel and utilities prices from October 2022 to October 2023, as indicated by the CPI. Capital expenses have been adjusted based on the three-year average from the Engineering News-Record (ENR). All inflationary assumptions are consistent with inflationary assumptions used in the water rate study.

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Packet Pg. 346 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 58 CITY OF HEALDSBURG
Table 5-2: Wastewater Enterprise Inflationary Assumptions Inflationary Categories FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Expenses
General Cost Inflation 3.7% 3.7% 3.7% 3.7% 3.7%
Salary / COLA 4.5% 4.5% 4.5% 4.5% 4.5%
Salary / Employee Benefits 7% 7% 7% 7% 7%
Utilities 5.2% 5.2% 5.2% 5.2% 5.2%
Capital 5.9% 5.9% 5.9% 5.9% 5.9%
Electricity 14.0% 8.0% 7.0% 5.0% 5.0%

5.1.3.PROJECTED WASTEWATER BILLING UNITS OF SERVICE
City staff provided Raftelis with wastewater billing data to gather customer counts and usage per class and meter size. Similar to the water utility, the City's wastewater utility isn't expecting an increase in accounts. This, coupled with a strong emphasis on water conservation, resulted in overall usage and revenues remaining stable. Therefore, for the study period, Raftelis didn't project any growth in accounts but relied on current estimates of actual meter counts for all future years.

Table 5-3 displays the current values for wastewater meters. To ensure conservative rate revenue projections and align with water demand projections, no additional demand factor was applied to billed wastewater flows. All billing units provided below are based on the current wastewater rate structure.

Table 5-3: Current Wastewater Enterprise Connections
Description Current Number
of Meters
Residential (Dwelling Units)
Single Family Residential (SFR) 3,774
SFR + ADU 316
Multi-Family Residential (MFR) 811
Subtotal - Residential 4,901
Non-Residential Accounts
Low Strength 369
Medium Strength 97
High Strength 75
Subtotal – Non-Residential 541
Total Dwelling Units & Accounts 5,442
Table 5-4 shows the projected wastewater flows for the City’s customers over the study period. Note that, because the City assumed constant water demand, all flows remain constant throughout the study period. As such, only FY 2022-23 actual flows are shown and are the estimate for future years`; all other years in the study (through FY 2032-33) are equivalent to those shown in Table 5-4 below. All flows are shown in hundred cubic feet (hcf).

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Packet Pg. 347 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 59 Table 5-4: Estimated Non-Residential Wastewater Flows (hcf), Existing Rate Structure Description Projected
FY 2025
Residential
Single Family Residential (SFR) 156,948
SFR + ADU 9,256
Multi-Family Residential (MFR) 25,760
Subtotal – Residential 191,964
Non-Residential
Low Strength 68,244
Medium Strength 27,349
High Strength 39,944
Subtotal – Non-Residential 135,537
Total Flows 327,501

5.2.Wastewater Financial Plan
Section 5.2 details the development of a proposed Wastewater Enterprise financial plan over the study period. The following subsections include estimates and projections of annual revenues, O&M expenses, debt service payments, capital expenditures, and reserve funding through FY 2028-29. The overall purpose of the financial plan is to determine annual wastewater rate revenues required to achieve sufficient cash flow, maintain adequate reserves, and meet debt coverage requirements.

5.2.1.WASTEWATER ENTERPRISE REVENUE UNDER CURRENT RATES The Wastewater Enterprise’s revenue sources consist of wastewater rates, interest earnings on cash reserves, and other non-rate revenues. The rate revenue projections shown in this section assume that current FY 2023-24 wastewater rates are effective throughout the study period, and therefore represent estimated revenues in the absence of any wastewater rate increases. This status quo scenario provides a baseline from which Raftelis evaluated the need for revenue adjustments (i.e. gross rate revenue increases).

Table 5-5: Projected Rate Revenues with Current Wastewater Rates Description Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
FY 2029
Wastewater Rate Revenues
Variable $4,200,083 $4,200,083 $4,200,083 $4,200,083 $4,200,083 $4,200,083 Fixed $3,436,715 $3,436,715 $3,436,715 $3,436,715 $3,436,715 $3,436,715 Total $7,636,798 $7,636,798 $7,636,798 $7,636,798 $7,636,798 $7,636,798 Other Wastewater Enterprise Revenues
Table 5-6 shows all other Wastewater Enterprise revenues. All FY 2023-24 other revenues are based on the City’s FY 2023-24 adopted budget which includes non-recurring transfers and a one-time adjustment to account for available capital funding. Projected future miscellaneous revenues represent scheduled loan repayments.. Interest revenue is estimated in the financial plan model beginning in FY 2024-25 based on projected fund balances and the assumed interest rate.

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Packet Pg. 348 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 60 CITY OF HEALDSBURG
Table 5-6: Other Wastewater Enterprise Revenues
Description Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
FY 2029
Wastewater - Other Revenues
Miscellaneous Revenues $1,070,403 $123,313 $123,313 $123,313 $123,313 $123,313 Interest Income $37,810 $40,159 $44,829 $39,427 $38,969 $39,409 Total $1,108,213 $163,472 $168,142 $162,740 $162,282 $162,722 Summary of Projected Wastewater Enterprise Revenues
Table 5-7 shows a summary of all projected Wastewater Enterprise revenues under current rates over the study period. This includes all projected revenues shown in Table 5-5 and Table 5-6. This revenue summary represents expected revenues in the absence of any rate increase over the study period.

Table 5-7: Projected Wastewater Enterprise Revenues Under Current Rates Description Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
FY 2029
Wastewater Revenues
Variable Revenues $4,200,083 $4,200,083 $4,200,083 $4,200,083 $4,200,083 $4,200,083 Fixed Revenues $3,436,715 $3,436,715 $3,436,715 $3,436,715 $3,436,715 $3,436,715 Miscellaneous Revenues $1,070,403 $123,313 $123,313 $123,313 $123,313 $123,313 Interest Income $37,810 $40,159 $44,829 $39,427 $38,969 $39,409 Total $8,745,011 $7,800,270 $7,804,940 $7,799,538 $7,799,080 $7,799,520

5.2.2.WASTEWATER ENTERPRISE OPERATIONS & MAINTENANCE EXPENSES Table 5-8 shows a summary of all Wastewater Enterprise O&M expenses over the study period. O&M expenditures include the cost of operating and maintaining wastewater collection, treatment, and disposal facilities.

O&M expenses also include the costs of providing technical services such as laboratory services and other administrative costs of the wastewater system. These costs are a normal obligation of the system and are met from operating revenues as they are incurred. The projection indicates that operation and maintenance (O&M) expenses will rise by an average of 5% each year throughout the study period. However, there is an exception between 2024 and 2025, when costs are expected to decrease. This decrease is attributed to several one-time expenses, including legal services, and equipment repairs that were funded by non-recurring transfers in the 2024 budget but will not continue into subsequent years. The City provided Raftelis with projected actuals for FY 2022-23 and budgeted values for FY 2023-24. Raftelis then used the inflation factors shown above in Table 5-2 to escalate O&M costs in the out years.

Table 5-8: Projected Wastewater Enterprise O&M Expenses O&M Expenses Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
FY 2029
Collection $2,187,114 $2,310,089 $2,415,419 $2,524,975 $2,637,152 $2,761,448 Treatment $3,550,677 $3,407,584 $3,582,147 $3,760,612 $3,935,847 $4,119,726 Customer $215,468 $225,246 $235,497 $246,245 $257,516 $269,337 General $812,296 $776,103 $812,145 $849,976 $889,691 $931,390 Total O&M Expenses $6,765,555 $6,719,022 $7,045,209 $7,381,809 $7,720,206 $8,081,902

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Packet Pg. 349 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 61

5.2.3.WASTEWATER ENTERPRISE DEBT
Table 5-9 shows the Wastewater Enterprise’s projected debt service obligations over the study period. Existing debt service consists of the City’s Series 2015 In July 2015, the City issued the 2015 Wastewater Revenue Refunding Bonds, which defeased the remaining Sewer Bonds of the 2005 CSDA Bonds of $2,440,000. The 2005 CSDA Sewer Bonds are considered to be defeased and the liability has been removed from long-term debt. The wastewater utility received a $425,000 loan from the general fund to be paid back over the next 4 years which is considered O&M in the budget. The City does not plan to issue new debt for its wastewater enterprise during the study period.

Table 5-9: Wastewater Enterprise Debt Service
Debt Service FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Existing Debt Service
Series 2015 Revenue
Refunding Bond $1,791,350 $1,794,750 $1,791,250 $1,795,750 $1,794,925 $1,793,416 Subtotal $1,791,350 $1,794,750 $1,791,250 $1,795,750 $1,794,925 $1,793,416 Proposed Debt Service
New Debt $0 $0 $0 $0 $0 $0
Subtotal $0 $0 $0 $0 $0 $0
Total $1,791,350 $1,794,750 $1,791,250 $1,795,750 $1,794,925 $1,793,416

5.2.4.WASTEWATER ENTERPRISE CAPITAL IMPROVEMENT PLAN
Table 5-10 shows the City’s capital improvement plan (CIP) for the Wastewater Enterprise over the study period.

The values shown are based on the most recently prepared multi-year CIP. . To reduce immediate financial needs and financial impacts the CIP defers several infrastructure replacement projects for portions of the utility pipeline beyond their useful life and several rehabilitation projects for aging lift stations. The deferral of these projects will not impact the immediate service provided by the Utility, but it will continue to challenge overall system reliability in the long-term. Significant CIP expenditures are anticipated to continue over the next ten years, with approximately $3.7M in capital spending per year for the duration of the ten-year planning period. This highlights the need to maintain adequate reserves to fund substantial CIP projects beyond FY 2028-29. Capacity-related project costs are not included in the CIP and revenue associated with capital recover fees are excluded from the revenue requirement.

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Table 5-10: Wastewater Enterprise Capital Improvement Plan Project Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Orchard Lift Station Rehabilitation $0 $0 $277,981 $0 $0 $0 Heron Lift Station Relocation $0 $0 $0 $0 $1,706,188 $0 Magnolia LS Structure Rehabilitation $0 $0 $216,332 $0 $0 $0 Hendricks Lift Station / Westside Road Gravity Sewer $0 $0 $0 $0 $0 $1,557,636 Spare centrifuge rotating assembly $0 $0 $183,826 $0 $0 $0 Pond 1 Liner Repairs $0 $80,463 $0 $0 $0 $0
Membrane Feed Pumps $0 $0 $95,276 $0 $0 $123,706
Storm Drain Pumps $0 $0 $0 $0 $75,384 $0
Plant Drain Pumps $0 $0 $0 $0 $77,897 $0
WRF membrane replacement $0 $281,620 $0 $0 $0 $0
Reconstruct Corp Yard Lift Station $0 $0 $0 $0 $63,946 $0 WRF Fence / Trees $0 $0 $0 $0 $97,999 $0
WRF Compressors $0 $29,644 $32,506 $0 $0 $0
A-Basin Diffusers Replacement $0 $0 $68,374 $0 $0 $0
Air actuators for Filtration gallery 10-inch valves $0 $0 $0 $0 $0 $17,292 Air actuators for Filtration gallery 14-inch valves $0 $0 $0 $0 $0 $21,283 Mixers $0 $0 $0 $0 $0 $0
Magnolia Pump Station Pump 1 Replacement $0 $0 $0 $0 $131,922 $0 Wastewater and Programming Computer $0 $7,411 $0 $0 $0 $0 Boeger Pump Rehab $0 $0 $0 $0 $18,846 $19,953
UV Wiper hydraulic Hoses $0 $0 $0 $31,391 $0 $0
Inflow and Infiltration Investigation $0 $0 $0 $0 $332,945 $0 Drainage Improvements at Industrial Group Building $0 $0 $0 $0 $37,692 $0 McDonough Water Transmission Main Replacement $0 $0 $0 $0 $45,513 $527,747 Brown Street Sewer & Water Replacement $0 $0 $1,330,576 $0 $0 $0 Reed Court & Bianca Lane Sewer & Water Replacement $0 $0 $0 $0 $0 $107,079 University Street Sewer & Water Replacement $0 $0 $128,258 $1,352,929 $0 $0 Healdsburg Ave Sewer Replacement $0 $0 $0 $2,007,053 $0 $0 Healdsburg Ave Utility Replacement $0 $760,956 $0 $0 $0 $0 Ongoing R&R $0 $0 $0 $0 $0 $1,995,264
Inflow and Infiltration Repairs $0 $0 $0 $0 $1,256,398 $0 Total CIP $0 $1,160,094 $2,333,129 $3,391,373 $3,844,730 $4,369,960

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Packet Pg. 351 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 63 Table 5-11 shows the assumed funding sources for Wastewater Enterprise CIP projects over the five-year study period. The City plans to fund its capital expenditures through rates (e.g., PAYGO). The rate study does not project the need for additional debt issuances for the study period; as such, the capital funding plan for the Wastewater Enterprise assumes cash-funding for the duration of the study period. Figure 5-11 shows a summary of total Wastewater Enterprise CIP expenditures by funding source through FY 2032-33.

Table 5-11: Wastewater Enterprise Capital Improvement Plan, by Funding Source Description FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Rate Funded $1,160,094 $2,333,129 $3,391,373 $3,844,730 $4,369,960 Bond Funded $0 $0 $0 $0 $0
Grant Funded $0 $0 $0 $0 $0
Total $1,160,094 $2,333,129 $3,391,373 $3,844,730 $4,369,960 Figure 5-1: Wastewater Enterprise Capital Improvement Plan

5.2.5.WASTEWATER ENTERPRISE FINANCIAL POLICIES
Required Debt Coverage
The Wastewater Enterprise is required to meet debt service coverage requirements on its outstanding wastewater revenue bonds. Failure to meet debt service coverage results in a technical default, which, without foreseeable remedial action such as implementing rate increases, could result in a downgrade of credit rating, higher costs in future debt issuance or even denial of credit. This is consistent with the requirements for the City’s Water

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Enterprise. The required debt coverage ratio is 1.20, meaning that the Wastewater Enterprise’s net operating revenues (i.e. total revenues less operating expenses) must amount to at least 1.20 times the amount of annual debt service.

Reserve Targets
Adequate cash reserves are required to meet operating, capital, and debt service requirements. The current operating reserve target is equal to 25% percent of annual O&M expenses. Raftelis recommends the City shift the reserve policy outlined in the previous study of establishing a capital reserve policy to a rate stabilization policy to streamline the approach, eliminating the earmarking of reserves for specific capital purposes, and instead utilizing them to support rates. As part of this transition, the City would allocate a portion of the reserve to offset increases over the next three fiscal years. Furthermore, when the City undertakes the next rate studies and adopts the next rate plan, it’s recommended that the City consider funding an additional one-million-dollar rate stabilization reserve, which can be used to address major equipment failures and natural disasters. The change will mitigate otherwise higher rate increases over the study period.

Table 5-12: Wastewater Enterprise Financial Policies
Financial Policy Target/Requirement
Debt Coverage
Target Debt Coverage Ratio 1.20
Reserve Targets
Operating Reserve Target 25% of annual O&M expenses
Rate Stabilization Target $1 Million
Total Reserve Target 25% of annual O&M expenses + $1 million Table 5-13: Projected Wastewater Enterprise Reserve Targets Reserve Target FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Operating Reserve $1,691,389 $1,679,756 $1,761,302 $1,845,452 $1,930,051 $2,020,475 Rate Stabilization
Reserve $1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Total Reserve
Target $2,691,389 $2,679,756 $2,761,302 $2,845,452 $2,930,051 $3,020,475

5.2.6.STATUS QUO WASTEWATER FINANCIAL PLAN
To evaluate the need for revenue adjustments (i.e. increases to gross rate revenues), Raftelis first developed a status quo financial plan. The status quo financial plan assumes that current FY 2023-24 rates remain unchanged over the study period. Table 5-14 combines projected revenues (from Table 5-7), O&M expenses (from Table 5-8), and debt service (from Table 5-9) to generate operating cash flow projections under the status quo. In the absence of any revenue adjustments, the Wastewater Operating Fund will fail to generate sufficient revenue to recover O&M expenses and debt service over the study period.

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Packet Pg. 353 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 65 Table 5-14: Wastewater Cash Flow – Status Quo Financial Plan Line Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Wastewater Rate Revenue under Current Rates
2 Wastewater Rates
Subject to Revenue
Adjustments
$7,636,798 $7,636,798 $7,636,798 $7,636,798 $7,636,798 $7,636,798 3 Non-Rate revenues 18 $1,108,213 $163,472 $168,142 $162,740 $162,282 $162,722 4 Total Revenues $8,745,011 $7,800,270 $7,804,940 $7,799,538 $7,799,080 $7,799,520 5 6 O&M Expenses $6,765,555 $6,719,022 $7,045,209 $7,381,809 $7,720,206 $8,081,902 7 Debt Service $1,791,350 $1,794,750 $1,791,250 $1,795,750 $1,794,925 $1,793,416 8 Rate-Funded CIP $0 $1,160,094 $2,333,129 $3,391,373 $3,844,730 $4,369,960 9 Total Expenses $8,556,905 $9,673,867 $11,169,588 $12,568,931 $13,359,860 $14,245,277 10 11 Net Cash Flow19 $188,105 ($1,873,597) ($3,364,648) ($4,769,394) ($5,560,780) ($6,445,757 )
Table 5-15 shows projected reserve balances and debt coverage under the status quo financial plan for the entire Wastewater Enterprise. Sources of funds include both rate and non-rate revenues but exclude revenues from rate increases. Use of funds include O&M expenses (from Table 5-8), debt service (from Table 5-9), and CIP expenditures (from Table 5-11). The FY 2023-24 beginning balance reflects actual Wastewater Enterprise reserve balances as of July 1, 2023. All ending balance and debt coverage figures are projected values. Target reserve balances shown are from Table 5-13.
18 Includes miscellaneous revenues and interest income. 19 Equal to [Line 4 – Line 9].

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Packet Pg. 354 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 66 CITY OF HEALDSBURG
Table 5-15: Wastewater Enterprise Pro Forma – Status Quo Financial Plan Line Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Projected Beginning
Balance $2,758,739 $2,946,844 $1,073,248 ($2,291,400) ($7,060,794) ($12,621,574) 2 3 Source of Funds
4 Status Quo Rate Revenues $7,636,798 $7,636,798 $7,636,798 $7,636,798 $7,636,798 $7,636,798 5 Other Revenues $1,108,213 $163,472 $168,142 $162,740 $162,282 $162,722 9 Total Source of Funds $8,745,011 $7,800,270 $7,804,940 $7,799,538 $7,799,080 $7,799,520 10 11 Use of Funds
12 O&M Expenses $6,765,555 $6,719,022 $7,045,209 $7,381,809 $7,720,206 $8,081,902 13 Debt Service $1,791,350 $1,794,750 $1,791,250 $1,795,750 $1,794,925 $1,793,416 14 Rate-Funded CIP $0 $1,160,094 $2,333,129 $3,391,373 $3,844,730 $4,369,960 15 Total Use of Funds $8,556,905 $9,673,867 $11,169,588 $12,568,931 $13,359,860 $14,245,277 16 17 Net Cashflow $188,105 ($1,873,597) ($3,364,648) ($4,769,394) ($5,560,780) ($6,445,757) 18 19 Projected Ending
Balance20 $2,946,844 $1,073,248 ($2,291,400) ($7,060,794) ($12,621,574) ($19,067,331) 20 Operating Reserve Target $2,691,388 $2,679,755 $2,761,302 $2,845,452 $2,930,051 $3,020,475 22 23 Debt Coverage
24 Projected Debt Coverage21

1.11 0.60

0.42 0.23

0.04 (0.16)
25 Required Debt Coverage 1.20 1.20 1.20 1.20 1.20 1.20

5.2.7.PROPOSED WASTEWATER FINANCIAL PLAN
Wastewater Enterprise must increase its revenues from wastewater rates over the study period to adequately fund its operating and capital expenditures, meet required debt coverage, and maintain sufficient reserve funding. Raftelis worked closely with City staff to identify financial plan options for the Board’s consideration. The selected option of proposed annual revenue adjustments is shown in Table 5-16. Revenue adjustments represent annual percentage increases in total rate revenue relative to rate revenue generated by the prior year’s wastewater rates.

Table 5-16: Proposed Wastewater Enterprise Revenue Adjustments Proposed Future Increases
Fiscal Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Effective Date July 1, 2024 July 1, 2025 July 1, 2026 July 1, 2027 July 1, 2028 Revenue Adjustment 18.0% 18.0% 15.0% 9.0% 5.0%
Table 5-17 combines projected wastewater rate and non-rate revenues (from Table 5-7), O&M expenses (from Table 5-8), and debt service (from Table 5-9) to generate operating cash flow projections under the proposed financial plan. By implementing the proposed revenue adjustments, we project that the Wastewater Operating Fund will maintain sufficient operating cash flow through the end of the study period. 20 Equal to [Line 1 + Line 17]
21 Equal to [(Line 9 – Line 12) ÷ Line 13]

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Packet Pg. 355 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 67 Table 5-17: Wastewater Cash Flow – Proposed Financial Plan Line Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Wastewater Rate Revenue under Current Rates
2 Wastewater Rates
Subject to Revenue
Adjustments
$7,636,798 $7,636,798 $7,636,798 $7,636,798 $7,636,798 $7,636,798 3 Non-Rate Revenues22 $1,108,213 $163,472 $168,142 $162,740 $162,282 $162,722 4 Revenue Adjustments
5 Fiscal
Year
Rev.

Adj.
6 FY 2025 18.00% $1,374,624 $1,374,624 $1,374,624 $1,374,624 $1,374,624 7 FY 2026 18.00% $1,622,056 $1,622,056 $1,622,056 $1,622,056 8 FY 2027 15.00% $1,595,022 $1,595,022 $1,595,022
9 FY 2028 9.00% $1,100,565 $1,100,565
10 FY 2029 5.00% $666,453
11 Total Adjustments $0 $1,374,624 $2,996,679 $4,591,701 $5,692,266 $6,358,719 12 13 Total Revenues $8,745,011 $9,174,893 $10,801,620 $12,391,239 $13,491,346 $14,158,239 14 15 O&M Expenses $6,765,555 $6,719,022 $7,045,209 $7,381,809 $7,720,206 $8,081,902 16 Debt Service $1,791,350 $1,794,750 $1,791,250 $1,795,750 $1,794,925 $1,793,416 17 Rate-Funded CIP $0 $1,160,094 $2,333,129 $3,391,373 $3,844,730 $4,369,960 18 Total Expenses $8,556,905 $9,673,867 $11,169,588 $12,568,931 $13,359,860 $14,245,277 19 20 Net Operating Cash
Flow23 $188,105 ($498,973) ($367,968) ($177,693) $131,486 ($87,038) Table 5-18 shows projected reserve balances and debt coverage under the proposed financial plan for the entire Wastewater Enterprise. Sources of funds include revenues (from Table 5-7), revenue adjustments (from Table 5-17), use of funds include O&M expenses (from Table 5-8), debt service (from Table 5-9), and CIP expenditures (from Table 5-11). The FY 2023-24 beginning balance reflects actual Wastewater Enterprise reserve balances as July 1, 2023. All ending balance and debt coverage figures are projected values. Target reserve balances shown are from Table 5-13. Under the proposed financial plan, reserve balances and debt coverage are projected to achieve target policies in all years of the rate-setting period. 22 Includes miscellaneous revenues, interest income, and loan/grant revenues. 23 Equal to [Line 13 – Line 18].

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Table 5-18: Wastewater Enterprise Pro Forma – Proposed Financial Plan Line Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 1 Beginning Balance $2,758,739 $2,946,844 $2,447,871 $2,079,903 $1,902,210 $2,033,696 2 3 Source of Funds
4 Rate Revenues (including
adjustments) $7,636,798 $9,011,421 $10,633,477 $12,228,499 $13,329,064 $13,995,517 5 Other Revenues $1,108,213 $163,472 $168,142 $162,740 $162,282 $162,722 9 Total Source of Funds $8,745,011 $9,174,893 $10,801,620 $12,391,239 $13,491,346 $14,158,239 10 11 Use of Funds
12 O&M Expenses $6,765,555 $6,719,022 $7,045,209 $7,381,809 $7,720,206 $8,081,902 13 Debt Service $1,791,350 $1,794,750 $1,791,250 $1,795,750 $1,794,925 $1,793,416 14 Capital Improvement Plan
Expenditures $0 $1,160,094 $2,333,129 $3,391,373 $3,844,730 $4,369,960 15 Total Use of Funds $8,556,905 $9,673,867 $11,169,588 $12,568,931 $13,359,860 $14,245,277 16 17 Ending Balance24 $2,946,844 $2,447,871 $2,079,903 $1,902,210 $2,033,696 $1,946,658 18 Operating Reserve Target $2,691,388 $2,679,755 $2,761,302 $2,845,452 $2,930,051 $3,020,475 19 20 Debt Coverage
23 Projected Debt Coverage25

1.11 1.37

2.10 2.79

3.22 3.39
24 Required Debt Coverage 1.20 1.20 1.20 1.20 1.20 1.20 24 Equal to [Line 1 + Line 9 – Line 15].
25 Equal to [(Line 9 – Line 12) / Line 13].

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Packet Pg. 357 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 69 Figure 5-2 shows projected debt coverage (blue line) relative to the debt coverage requirement (gray line) over the study period. As shown below, debt coverage remains far above the requirement throughout the study period due to the minimal amount of existing debt and absence of future debt issuances for this study.

Figure 5-2: Proposed Wastewater Financial Plan – Projected Debt Coverage Figure 5-3 shows the Wastewater Enterprise’s projected ending balance under the proposed financial plan. The light blue bars indicate the ending balance. Minimum targets (based on the policies described in Table 5-12) are shown by the orange line and red line.

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Figure 5-3: Proposed Wastewater Financial Plan – Projected Ending Cash Balances Figure 5-4 shows the proposed versus status quo operating financial plan. Revenues under the status quo and proposed financial plans are represented by the blue and black lines, respectively. Revenue requirements including O&M expenses, debt service, and reserve funding for CIP/other purposes are represented by the various stacked bars. Revenue adjustments are required to generate sufficient revenue to recover O&M expenses and debt service payments over the study period.

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Packet Pg. 359 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 71 Figure 5-4: Proposed vs. Status Quo Wastewater Enterprise Financial Plan

5.3.Wastewater Cost-of-Service Analysis
Section 5.3 details the Cost-of-Service (COS) analysis performed for the Wastewater Enterprise for FY 2024-25. The COS analysis allocates the overall rate revenue requirement to customer classes based on their proportion of use of and burden on the wastewater system. This provides the basis for the development of proposed wastewater rates through FY 2028-29.

5.3.1.METHODOLOGY
The first step in a COS analysis is to determine the revenue required from wastewater rates. The total revenue requirement results from the wastewater financial plan in Section 5.2. The methodology to develop the COS analysis and to apportion the revenue requirement to user classes is informed by the WEF’s Manual of Practice (MOP) No. 27 Financing and Charges for Wastewater Systems. COS analyses are tailored to meet the specific needs of each wastewater system. However, there are distinct steps in every COS analysis to recover costs from customers in an accurate, equitable, and defensible manner:

1. Cost Functionalization: O&M expenses and capital assets are categorized by their function in the wastewater system. Sample functions may include collection, treatment, and customer service, among others.

2. Cost Causation Component Allocation: Functionalized costs are then allocated to cost causation components based on their burden on the wastewater system. The cost causation components include flow, biological oxygen demand (BOD), and suspended solids (SS), among other specific cost components. The

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revenue requirement is allocated accordingly to the cost causation components and results in the total share of the revenue requirement attributable to each cost component.

3. Mass Balance Analysis: The flow and strength (BOD and SS) of wastewater treatment plant (WWTP) influent is attributed to each customer class based on water use data and estimated wastewater generation and strength assumptions that vary by user classification. However, due to the unique characteristics of pipelines and treatment facilities, this analysis may not always yield precise service units by class but can confirm the total volume of treated wastewater. In this study, Raftelis relied on industry standard strength and average plant strength data.

4. Revenue Requirement Distribution: The unit cost is utilized to distribute the revenue requirement for each cost causation component unit cost to customer classes based on each customer class’s individual burden on the wastewater system.

5.3.2.WASTEWATER RATE REVENUE REQUIREMENT
Table 5-19 shows the calculation of the wastewater rate revenue requirement for FY 2024-25 (also referred to as the test year). The revenue requirement is split into operating and capital categories (Columns C-D), which are later allocated based on O&M expenses and capital assets. The revenue requirements (Lines 2-4) include FY 2024-25 O&M expenses, debt service, and capital projects. The revenue offsets (Lines 8-10) include all non-rate revenues.

These revenues are applied as offsets to the final rate revenue requirement. The adjustment for cash balance (Line 14) is equal to FY 2024-25 negative net operating cash flow under the proposed financial plan, and accounts for the drawdown of operating reserves in FY 2024-25. All values are from the proposed wastewater financial plan operating cash flow (Table 5-17). The final rate revenue requirement (Line 19) is calculated as follows:

Total revenue required from rates (Line 19) = Revenue requirements (Line 5) - Revenue offsets (Line 11) - Adjustments (Line 16) Table 5-19: Wastewater Rate Revenue Requirement (Test Year) [A] [B] [C] [D] [E]
Line Description
Operating
Revenue
Requirement
Capital
Revenue
Requirement
Total
1 Revenue Requirements
2 O&M Expenses $6,719,022 $6,719,022
3 Debt Service $1,794,750 $1,794,750
4 Capital Expenditures – PAYGO $1,160,094 $1,160,094
5 Total Revenue Requirements $6,719,022 $2,954,844 $9,673,867 6 7 Less: Revenue Offsets
8 Miscellaneous Revenues $123,313 $123,313
9 Interest Income $40,159 $40,159
10 Total Revenue Offsets $163,472 $0 $163,472
11 12 Less: Adjustments
13 Adjustment for Cash Balance $498,973 $498,973
14 Adjustment for Mid-Year Increase $0 $0
15 Total Adjustments $0 $498,973 $498,973
16 17 Total Revenue Requirement w/o Offsets $6,719,022 $2,455,871 $9,174,893 18 Total - Revenue Requirement $6,555,550 $2,455,871 $9,011,421

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Packet Pg. 361 Attachment: Healdsburg Rate Study Report (4264 : Public Hearing to adopt Water & Wastewater Rates) 2023 WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY 73

5.3.3.FUNCTIONALIZATION AND ALLOCATION OF EXPENSES
After determining the revenue requirement, the next step of the wastewater COS analysis is to allocate O&M expenses and capital assets to the following functional categories:
» Collection: costs associated with the collection and transport of wastewater discharges from customers to the wastewater treatment plant
» Treatment: costs associated with the treatment and disposal of wastewater from customers » Customer: costs of billing, revenue collections, and other customer services functions » General: costs for general administration and operational expenses or any other costs that do not clearly relate to another functional category (i.e. indirect costs) The functionalization of costs allows for the allocation of costs to cost causation components. Some cost causation components correspond directly to a functional category listed above. The cost causation components include:
» Flow: costs associated with the volume of wastewater generated, collected, and treated » BOD/SS: costs associated with the strength of wastewater treated and disposed of in terms of the following parameters: suspended solids (SS) and biochemical oxygen demand (BOD) » Customer: costs of billing, revenue collections, and other customer services functions » General: costs for general administration and operational expenses or any other costs that do not clearly relate to another functional category (i.e. indirect costs)

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5.3.4.WASTEWATER ENTERPRISE O&M EXPENSE ALLOCATION
Table 5-20 shows the basis for allocating each functional category to the various cost causation components. This provides the basis for allocating O&M and capital expenses in the following subsections.

The collection costs are directly assigned to the flow category. General costs are initially allocated to a general category, which is later redistributed based on overall allocations. Treatment costs are allocated in three ways: 52% to flow, 31% to biological oxygen demand, and 17% to suspended solids. This allocation reflects the treatment plant reclaimed system for flow and the pounds of effluent treated.

Table 5-20: Allocation of Functional Categories to Wastewater Cost Causation Components [A] [B] [C] [D] [E] [F] [G] [H]
Line Functional
Category Flow
Biological
Oxygen
Demand
Suspended
Solids General Billing Total
1 Collection 100% 0% 0% 0% 0% 100%
2 Treatment 52% 31% 17% 0% 0% 100%
3 Customer 0% 0% 0% 0% 100% 100%
4 General 0% 0% 0% 100% 0% 100%
The next step of the COS analysis is to develop an allocation basis for the operating revenue requirement based on the functionalization of the Wastewater Enterprise’s O&M expenses. Table 5-21 shows the allocation of FY 2024- 25 O&M expenses by functional category to each cost causation component. The percentage allocation of each functional category (Columns C-H) to the various cost causation components was determined in Table 5-20. The total dollar amount allocated to each cost causation component (Line 5) is determined by multiplying the total expense associated with each functional category by the corresponding percentage allocation and summing across all functional categories.

Table 5-21: Wastewater Enterprise O&M Expenses – Allocation to Cost Causation Components [A] [B] [C] [D] [E] [F] [G] [H]
Line Functional
Category Flow BOD SS General Billing FY 2024-25 O&M
1 Collection $2,310,089 $0 $0 $0 $0 $2,310,089
2 Treatment $1,771,944 $1,056,351 $579,289 $0 $0 $3,407,584 3 Customer $0 $0 $0 $0 $225,246 $225,246
4 General $0 $0 $0 $776,103 $0 $776,103
5 Total O&M $4,082,033 $1,056,351 $579,289 $776,103 $225,246 $6,719,022 6 7 O&M Allocation 60% 16% 9% 12% 3% 100%

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5.3.5.WASTEWATER ENTERPRISE CAPITAL ALLOCATION
Capital assets are utilized in COS analyses to allocate the capital revenue requirement to the various cost causation components. The distribution of short-term CIP project costs can be heavily weighted to specific cost causation components based on the type of projects. Use of short-term plans to allocate capital costs may cause rates to fluctuate and result in customer confusion. The overall wastewater asset base, however, is considerably stable in the long-term, and therefore is more representative of long-term capital investment in the City’s wastewater system.

Thus, functionalized capital assets are used to allocate capital costs.

City staff provided Raftelis with a detailed asset listing that included the original cost of each individual wastewater asset. Raftelis calculated the replacement cost less depreciation (RCLD) of each asset based on net book value using the Engineering News-Record’s 20-City Average Cost Construction Index (CCI) to account for capital cost inflation. RCLD is the most common valuation method for deriving functional values for a utility system as it is the best point in time estimate of a system for a cost of service analysis. As infrastructure is reinvested in over time, the asset base will change, with changes accounted for in subsequent cost of service analyses. As part of the capital asset analysis, Raftelis assigned each individual asset to a functional category with the assistance of City staff. Total wastewater asset value (RCLD) by functional category is shown in Table 5-22. Percentages are rounded to the nearest one-tenth of one percent.

Table 5-22: Wastewater Enterprise Capital Assets by Functional Category [A] [B] [C] [D]
Line Functional Category Asset Value
(RCLD) Percent of Total
1 Collection $9,664,590 22.2%
2 Lift Stations $270,000 0.6%
3 Treatment $32,200,000 73.9%
4 Customer $0 0.0%
5 General $1,434,416 3.3%
6 Total Asset Value (RCLD) $43,569,006 100.0%
Table 5-23 shows the allocation of capital assets by functional category to each cost causation component. The percentage allocation of each functional category (Columns C-H) to the various cost causation components was determined in Table 5-20. Total capital assets associated with each functional category (Column I) were determined in Table 5-22. The total dollar amount allocated to each cost causation component (Line 6) is determined by multiplying the total asset value associated with each functional category by the corresponding percentage allocation and summing across all functional categories. This is consistent with the methodology used to determine the allocation of O&M expenses to cost causation components in Table 5-21. The initial capital line allocation percentages (line 8) represent the proportion of total capital assets allocated to each cost causation component (line 6). The total capital revenue requirement (Column I, line 11) equals the capital revenue requirement from Table 5-19 (Column D, line 18).

Table 5-23: Functionalized Wastewater Capital Assets Allocation to Cost Causation Components [A] [B] [C] [D] [E] [G] [H] [I]

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Line Functional Category Flow
Biological
Oxygen
Demand
Suspended
Solids General Billing Asset Value (RCLD)
1 Collection $9,664,590 $0 $0 $0 $0 $9,664,590
2 Lift Stations $270,000 $0 $0 $0 $0 $270,000
3 Treatment $16,744,000 $9,982,000 $5,474,000 $0 $0 $32,200,000 4 Customer $0 $0 $0 $0 $0 $0
5 General $0 $0 $0 $1,434,416 $0 $1,434,416
6 Total Assets $26,678,590 $9,982,000 $5,474,000 $1,434,416 $0 $43,569,006 7 Total Assets – General
Reallocated $27,586,827 $10,321,824 $5,660,355 $0 $0 $43,569,006 8 Capital Allocation before
General Reallocation 61.23% 22.91% 12.56% 3.29% 0.00% 100% 9 Final Capital Allocation 63.32% 23.69% 12.99% 0.00% 0.00% 100% 10 11 Capital Revenue
Requirement $1,554,997 $581,814 $319,059 $0 $0 $2,455,871

5.3.6.ALLOCATION OF REVENUE REQUIREMENT TO COST COMPONENTS Utilizing the cost allocations developed above in Table 5-20, Table 5-21, and Table 5-23, we can now allocate the operating, capital, and revenue offset portions of the revenue requirement to the various cost components. As with Water Enterprise COS, we allocate the revenue offset (non-rate revenues) according to the capital allocation for interest income; and the operating allocation for miscellaneous revenues.

The resulting distributions of costs are listed below in Table 5-24. Note that the total revenue requirement in Line 4, Column G, is equal to the total revenue requirement developed in Table 5-19.

Table 5-24: Allocation of Test Year Revenue Requirement to Cost Causation Components [A] [B] [C] [D] [E] [F] [H] [G]
Line Description Flow BOD SS Customer Bills FY 2024-25 Rev. Req. 1 Operating
Expenses $4,504,989 $1,162,870 $637,703 $0 $249,988 $6,555,550 2 Capital
Expenses $1,554,997 $581,814 $319,059 $0 $0 $2,455,871
3 Total $6,059,986 $1,744,684 $956,762 $0 $249,988 $9,011,421

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5.3.7.PLANT MASS BALANCE ANALYSIS
The next step of the wastewater COS analysis is to attribute flow and strength loadings entering the City’s wastewater treatment plant to various user classifications. This is necessary to allocate the Flow, Biological Oxygen Demand, and Suspended Solids cost causation components to each customer class for recovery by the proposed wastewater rates.

Table 5-25 shows Raftelis’ mass balance analysis of the City’s wastewater treatment plant based on plant influent data for FY 2021-22. The result is attribution of flow and strength loadings to each customer class. Key inputs and assumptions include:
» Estimated total FY 2022-23 wastewater flows entering the wastewater treatment plant » Estimated strength concentration for BOD and SS based on previous wastewater rate analyses, SWRCB guidelines, and adjustments to better match actual treatment plant flows and loadings. » FY 2022-23 water use associated with non-residential wastewater customers (from City billing data) » Estimated return-to-sewer factors for non-residential classes based on an analysis of monthly metered water use.
» Residential class wastewater generation is aligned with average plant influent strength.

Table 5-25: Mass Balance Analysis
[B] [C] [D] [E] [F] [G] [H]
Description Flow
(HCF)
BOD
(mg/L)
SS
(mg/L)
Flow
(MG)26 BOD (lbs)27 SS (lbs)
Total Plant
Influent 535,925 508 299 401 1,699,409 1,000,485
Net influent 353,711 608 399 265 1,585,656 886,732
Non-Residential Influent
Low 61,420 240 200 46 92,017 76,681
Medium 24,614 500 400 18 76,825 61,640
High 35,950 1,000 600 27 224,413 134,648
Total NonResidential
Influent
121,984
1,740 1,200 91
393,255 272,789
Net Residential
Flow 231,727 508 299 173 734,911 432,556
SFR 156,948 508 299 142 600,857 353,654
MFR 35,016 508 299 32 134,055 78,902
26 Conversion factor: one (1) hundred cubic feet = 0.000748 million gallons. 27 Conversion factor: one (1) milligram per liter = 8.35 pounds per million gallons.

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5.3.8.WASTEWATER UNIT COSTS
The next step of the wastewater COS analysis is to develop unit costs for each cost causation component. This is necessary to allocate the revenue requirement to each customer class in subsequent steps of the COS analysis.

Table 5-26 shows the calculation of unit costs (Line 6). This is developed by taking the total COS allocation for each cost component (Line 1) and dividing by the corresponding total units of service for flow, BOD, SS, customer, and bills shown in Line 3. The resulting unit rates may then be applied to customer classes based on the number of units in each respective class. Flow is recovered across all units of wastewater. BOD and SS unit rates are derived by dividing across the total estimated BOD and SS in pounds per year. Customer costs are divided by the total number of equivalent meters, and billing cost are divided by the number of bills Table 5-26: Wastewater Unit Costs Calculation (Test Year) [A] [B] [C] [D] [E] [F] [H] [G]
Line Description Flow BOD SS Customer Bills
Test Year
Revenue
Requirement
1 Total COS $6,059,986 $1,744,684 $956,762 $0 $249,988 $9,011,421 2 3 Total Units
of Service 313,948 1,128,166 705,345 5,775 53,712
4 Units hcf/yr lb/yr lb/yr equivalent
meters
annualized
bills
5 6 Unit Cost $19.30 $1.55 $1.36 $0.00 $4.65
7 Units hcf lb lb per bill Per bill

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5.3.9.WASTEWATER COST ALLOCATION TO CUSTOMER CLASSES
Table 5-27 shows the allocation of the rate revenue requirement, by cost causation component, to each customer class based on the unit rates developed above in Table 5-26. The units of service shown for each customer class for the Flow, Biological Oxygen Demand, and Suspended Solids (Columns C-E) were previously determined as part of the mass balance analysis (see Table 5-25). The unit rate for each of these components is multiplied by the corresponding number of flow/BOD/SS units determined in Table 5-25 for each class to calculate the total cost for that component, by customer class. The number of equivalent meters per class is multiplied by the unit rate for each Customer to determine the total cost component. Similarly, the total number of bills (e.g., number of accounts multiplied by the number of bills per year) for each class is multiplied by the unit rate for Billing to determine the total cost component for Billing, for each class. This allows for the development of customer-specific COS allocations, as shown below in Table 5-27. Note again that the total amount of revenue to be recovered (the last line of Column H) is the same as the total revenue requirement originally developed in Table 5-19.

Table 5-27: Wastewater Cost Allocation to Customer Classes (Test Year) [A] [B] [C] [D] [E] [F] [G] [H]
Line Customer Class Flow BOD SS Customer Billing Total
1 Residential $3,705,388 $1,136,524 $586,739 $0 $219,773 $5,648,424 2 Single Family $3,029,491 $929,212 $479,712 $0 $210,781 $4,649,196 3 Multifamily
Residential $675,897 $207,312 $107,027 $0 $8,992 $999,228 5 6 Non-Residential $2,354,598 $608,160 $370,023 $0 $30,215 $3,362,997 7 Low Strength $1,185,561 $142,303 $104,014 $0 $20,609 $1,452,486 8 Medium Strength $475,112 $118,808 $83,367 $0 $5,418 $682,704 9 High Strength $693,925 $347,050 $182,642 $0 $4,189 $1,227,806 10 Total $6,059,986 $1,744,684 $956,762 $0 $249,988 $9,011,421

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5.4.Proposed Wastewater Rates
Section 5.4 shows detailed calculations of proposed wastewater rates through FY 2026-27. The City of Healdsburg’s current fixed wastewater rate structure consists of Fixed Service Charges per dwelling unit for residential customers, and charges by meter size for non-residential customers. All customers are also charged a per unit (HCF) charge based on estimated wastewater flows and the strength of the flows. Residential customers’ variable charge units are based on their average winter consumption (AWC) whereas Non-Residential customers are charged per billed unit of water.

Proposed rate structure modifications include:
» Retire the SFR + ADU Fixed Charge: any SFR customer with two or more dwelling units per parcel will be treated as a MFR customer and subject to the multifamily charge. » Non-Residential Meter-Based Fixed Charges: This study maintains the existing non-residential fixed charge structure by meter size, however, the ratios between the meter sizes are proposed to use calculated flow ratios rather than hydraulic capacity ratios. Raftelis used City of Healdsburg sewer user billing data to calculate average flow per billing period at each meter size. This approach is more representative of wastewater generation by meter size versus ratios which reflect potential water demand by meter size.

Proposed wastewater rates reflect the revenue adjustments and the updated wastewater cost of service analysis, and rate modifications. All Fixed Charges shown are monthly and all volumetric rates are shown in terms of dollars per hundred cubic feet ($/HCF). All rates are rounded up to the nearest penny. All rates are assumed to be implemented at the beginning of each fiscal year on July 1.

5.4.1.PROPOSED WASTEWATER RATES (TEST YEAR)
Table 5-28 shows the calculation of COS wastewater rates for the test year. The revenue requirement associated with each charge Column C was determined from customer class cost allocations in Table 5-27.

The Cost-of-Service analysis identifies the total amount to be recovered from each customer class. The city enlisted Raftelis to evaluate the existing rate structures and propose any modifications that better align with the City's policy objectives. Currently, the city's rate structure recovers 45% of wastewater costs from fixed service charges, with the remaining 55% recovered from volumetric charges based on water use and wastewater generation. This cost recovery share is to ensure an adequate amount of revenue comes from fixed sources to guard against revenue insufficiency. The proposed cost of service analysis maintains this 45/55 split of fixed and variable rate revenue while better harmonizing the degree of fixed revenue between Residential and Non-Residential users.

Currently, the City's Wastewater Enterprise recovers 54% of Residential costs from fixed dwelling unit charges and 29% of Non-Residential costs from fixed meter-based charges. In order to promote fairness in cost recovery across classes while maintaining revenue stability, the proposed rate structures recover the following share of each class's cost of service:
» 50% of Residential costs are recovered through fixed, dwelling unit-based charges. The remaining 50% of the costs to serve Residential users are recovered from the wastewater flow rate, based on each connection's average winter consumption (AWC).
» 39% of Non-Residential costs are recovered through fixed, meter-based charges. The remaining 61% of the costs to serve Non-Residential users are recovered from the wastewater flow rates, based on actual metered water use, and the relative strength (i.e., Low, Medium, or High) of the wastewater generated. NonResidential users pay different wastewater usage rates based on the strength of the wastewater generated.

Given the variability in water use among non-residential users and declining water demands, increasing

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These varying rates reasonably recover costs from customers in a manner consistent with how costs are incurred by the wastewater system in collecting, treating, and disposing of wastewater. Overall, the City will maintain the same level of fixed cost recovery which, in conjunction with proposed rate revenue increases, will provide the city with adequate revenues to fully recover projected operational and capital expenditures.

Table 5-28: Proposed Wastewater Rate Calculation (Test Year) [A] [B] [C] [D] [E] [F] [G] [H] [I] [J]
Line Description
Fixed
COS
Costs28
Variable
COS
Costs29
DU/
Acct30
Units
(HCF)
Adjusted
Fixed
COS
Costs
Adjusted
Variable
COS
Costs
Fixed
Charg
e
Volume
Charge
(per hcf)
1 Residential
2 Single
Family $210,781 $4,438,415 3,774 156,948 $2,324,598 $2,324,598 $51.33 $14.71 3 Multifamily $8,992 $990,236 1,227 35,016 $499,614 $499,614 $36.94 $14.71 5 6 Non-Residential
7 Low $20,609 $1,431,877 369 68,244 $672,667 $779,819
Per
Meter
Size
$11.43
8 Medium $5,418 $677,286 97 27,349 $266,729 $415,975
Per
Meter
Size
$15.21
9 High $4,189 $1,223,617 75 39,944 $385,848 $841,958
Per
Meter
Size $21.08
Table 5-29 shows the proposed three-year schedule of wastewater rates for implementation July 2024 through July 2026. All proposed rates in subsequent years are then increased by the proposed revenue adjustments from Table 5-16. All proposed rates are rounded up to the nearest whole cent. 28 Includes customer component costs only.
29 Includes all other cost components (flow, BOD, SS, and Recycled – Treatment). 30 Dwelling Units (DU) applies to residential and Account apply to non-residential

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Table 5-29: Proposed Three-Year Wastewater Rates Schedule Description Current FY 2025 FY 2026 FY 2027
Residential Service Charges ($/Month/Dwelling Unit)
Single Family Residential (SFR) $46.67 $51.33 $60.57 $69.66 SFR + ADU $31.95 N/A N/A N/A
Multi-Family Residential (MFR) $37.80 $36.94 $43.60 $50.14 Flat Rate (Sewer Only SFR) $104.01 $110.18 $130.02 $149.53 Non Residential Service Charges ($/Month/Meter)
Up to 1" $75.75 $83.88 $98.99 $113.84
1 1/2" $148.49 $243.37 $287.18 $330.26
2" $235.77 $396.68 $468.09 $538.31
3" $439.44 $1,279.52 $1,509.84 $1,736.32
4" $730.39 $1,405.05 $1,657.97 $1,906.67
6" $1,966.94 $1,405.05 $1,657.97 $1,906.67
Wastewater Usage Charges ($/HCF)
Residential (SFR/MFR) $11.47 $14.71 $17.37 $19.98
Non Residential
Low Strength $10.31 $11.43 $13.49 $15.52
Medium Strength $15.09 $15.21 $17.95 $20.65
High Strength $22.08 $21.08 $24.88 $28.62

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6.Customer Bill Impacts

6.1. Combined Water & Wastewater Monthly Bill Impacts,
SFR
Table 6-1 shows the combined monthly bill impacts for a Single Family Residential customer using 7 hcf of water and an Average Winter Consumption of 4 hcf under current versus proposed rates. This usage level was determined using actual billing data for single family residential customers in FY 2022-23. This impact includes the changes proposed for both water and wastewater, so the total dollar difference is the entire change for a customer receiving both water and wastewater service from the City.

Table 6-1: FY 2023-24 Single Family Residential Bill Impacts (7 HCF water, 4 HCF AWC) Customer Class Proposed
July 2024 Bill Current Bill Difference ($)
Difference
(%)
Single Family Residential $200.73 $166.52 $34.21 21%

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CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: May 6, 2024
SUBJECT: Healdsburg Municipal Code, Title 20, Land Use Code Amendments PREPARED BY: Ellen McDowell, Senior Planner
STRATEGIC INITIATIVE(S):

Provide Effective Governance
RECOMMENDED ACTION(S):

Introduce for first reading, by title only, waiving further reading of the text, an ordinance amending Healdsburg Municipal Code Title 20, Land Use Code, and find that the ordinance amendments are exempt from the California Environmental Quality Act (CEQA).

PROJECT DESCRIPTION AND ANALYSIS:

Overview of Land Use Code Amendments
The draft ordinance (Attachment 1) makes several amendments to Title 20 of the Healdsburg Municipal Code to clarify various sections of the Land Use Code. To support the ongoing development and implementation of the City’s Municipal Code, staff recommends implementing the proposed changes to the sections identified in the attached ordinance. Analysis for each amendment identified within the ordinance can be found below.

Title 20 Land Use Code, Section 20.16.212 (Downtown directional wayfaring signs):

This section has been revised to further clarify locations and broaden the sign requirements for wayfaring signs for downtown directional signage. The intent of the downtown directional sign ordinance is to provide visitor awareness of downtown businesses and points of interest and to provide general directions to their business locations. On March 6, 2023 the City Council adopted Resolution 29-2023 adopting temporary exceptions to the eligibility criteria for the downtown directional wayfaring sign program in an effort to diversify the type of businesses eligible for participation. The Resolution indicates revisions to 20.16.212 will determine whether sign plaques may be approved for businesses that (a) face the plaza; (b) are not open on the weekends; (c) Do not have a primary focus of meeting the needs of visitors in Healdsburg. These changes have been incorporated into the draft ordinance in Attachment 1.

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Title 20 Land Use Code, Section 20.16.175 (Bicycle Parking):

This section has been amended to include more guidance and expand upon the current bicycle parking requirements for new development. These changes remove the City’s current regulations requiring only commercial and industrial projects over 5,000 square feet, and multi-family of 10 units or more to include on-site bicycle spaces. The proposed amendments specify that 20% of the number of required automobile spaces be a combination of covered and uncovered bicycle spaces for multi-family, mixed use, commercial and industrial developments. Furthermore, the proposed amendments specify the type of bicycle parking as well as standards for quality bicycle racks.

In recent years, staff have found a need to further define types, amounts, and locations of where bicycle parking should be incorporated into development projects. By including types, required quantity, and locations for bicycle parking, the City can provide for safer and more convenient bicycle parking to serve various land uses and encourage bicycle use as an alternative to vehicles.

Title 20 Land Use Code, Section 20.08.155, Table 12 (Permitted and Conditionally Permitted Uses in MU):

This section has been updated to allow a Fitness Center as a permitted use in the MU zoning district. Fitness Centers can be an integral part of the community in that providing health and fitness uses in close proximity to residential uses promotes health and wellness. Currently, the City’s land use code only allows fitness centers within the Industrial Zoning designation. By limiting the overall square footage to a maximum of 5,000 square feet fitness centers will be in line with the scale of other commercial uses typically found in mixed use zones. The City was approached by a fitness center seeking to locate within a mixed use zone and this prompted staff to consider the change. Typically, small scale fitness facilities can be found in mixed use locations and are considered to be a neighborhood serving use.

Title 20 Land Use Code, Section 20.16.150, (Water efficient landscaping):

This section has been updated to reflect current state legislation regarding water efficient landscaping. The changes to this section include new language from state law requiring a greater minimum efficiency for overhead and drip irrigation, a definition for very-low-water use plants and reducing the allowable area for turf locations. In addition, the changes include expanded irrigation design requirements.

Title 20 Land Use Code, Section 20.08.165, (Maximum floor area ratio site coverage):

The proposed amendments to this section correct a prior typographical error. The 2030 Healdsburg General Plan provides for a maximum allowable floor area ratio (FAR) for nonresidential uses at 80%. The Land Use Code currently shows the allowable floor area ratio as 50%. The proposed amendments will update the Code to show 80% as allowed by the City’s General Plan.

Title 20, Land Use Code, Section 20.08.160, (Handicapped Parking):

This proposed amendment to this section remove the term “handicapped” and replace it with the term “accessible” to include more inclusive language and align with the California Building Code.

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Title 20 Land Use Code, Section 20.28.310 (Definitions):

The proposed amendments to the definitions section amend the definition of “fitness center” to limit fitness centers within the mixed use zoning designation to a maximum of 5,000 square feet.

GENERAL PLAN CONSISTENCY:

The Land Use Code Amendments are consistent with the following General Plan Guiding Principles and Policies:

Guiding Principle (5)(B) - Support local businesses and industries, while recognizing that there are limits on how the General Plan can impact a free market economic system, the City will support locally owned businesses and industries that will keep wages and profits in the community and contribute to the local identity.

Guiding Principle (4)(C) – The City will adopt policies that promote sustainable development and lifestyles, educate the public regarding sustainable building practices and lead by example in its municipal projects.

Goal T-D – Bicycle and Pedestrian routes and facilities that provide safe and convenient access and an alternative to the use of motor vehicles.

PLANNING COMMISSION:

On April 9, 2024, the Planning Commission held a public hearing and adopted a resolution recommending that the City Council adopt an Ordinance amending Healdsburg Municipal Code, Title 20. The Planning Commission recommended that the City Council consider increasing the percentage of required bicycle parking from 10% of required vehicle parking spaces to 20% of the required number of vehicle parking spaces for multi-family, mixed use, commercial and industrial developments unless otherwise approved by the Planning and Building Director. Staff supports this recommendation and has incorporated it into the draft amendments at Attachment

1. ENVIRONMENTAL ANALYSIS:

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.

FISCAL IMPACT:

The recommended action related to Healdsburg Municipal Code amendments will not result in a direct fiscal impact to the City.

ATTACHMENT(S):

City Council Ordinance

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