CITY OF HEALDSBURG
CITY COUNCIL/REDEVELOPMENT SUCCESSOR AGENCY
REGULAR MEETING MINUTES
September 16, 2024
City Hall Council Chamber
401 Grove Street, Healdsburg
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CALL TO ORDER/ROLL CALL
Mayor/Chairperson Hagele called to order the concurrent meeting of the City Council and Redevelopment Successor Agency of the City of Healdsburg at 6:00 p.m. with the following Council Members present:
Present: Council Members/: Edwards, Herrod, Kelley, Mitchell and Mayor Hagele Board Members
Absent: Council Members/: None.
Board Members
APPROVAL OF AGENDA
Mayor Hagele announced item 6A will be pulled off the consent calendar.
On a motion by Councilmember Kelley, seconded by Councilmember Edwards, approved the September 16, 2024, City Council and Redevelopment Successor Agency meeting agenda as amended above. The motion carried on a unanimous voice vote. (Ayes 5, Noes 0, Absent – None)
REPORT ON CLOSED SESSION
None.
ANNOUNCEMENTS/PRESENTATIONS – CALIFORNIA NATIVE AMERICAN DAY
PROCLAMATION
Mayor Hagele, with Council concurrence, issued a Proclamation declaring September 27, 2024, as California Native American Day in the City of Healdsburg.
Sherrie Smith-Ferri thanked Council for the recognition and noted she is looking forward to continuing a relationship with the City in the future.
Jack Pollard thanked the City Council for the recognition.
City Council/RSA Regular Meeting Minutes
September 16, 2024
ANNOUNCEMENTS/PRESENTATIONS – POLLUTION PREVENTION AND CREEK
WEEK PROCLAMATION
Mayor Hagele, with Council concurrence, issued a Proclamation declaring September 22-29, 2024, as Pollution Prevention Week, and September 16-23, 2024, as Creek Week in the City of Healdsburg.
Michael Harrigan, Stormwater Program Manager, thanked the Council for the recognition and announced event details for the upcoming Foss Creek Clean Up.
ANNOUNCEMENTS/PRESENTATIONS – PROCLAMATION RECOGNIZING
SEPTEMBER 30-OCTOBER 6, 2024, AS INTERNATIONAL ACTIVE AGING WEEK Mayor Hagele, with Council concurrence, issued a Proclamation recognizing September 30- October 6, 2024, as International Active Aging week in the City of Healdsburg.
Donna O’Brien, Chair of the Senior Citizen Advisory Commission, announced upcoming events by the Healdsburg Senior Center in celebration of active aging week.
Lynn Fernandez, President of the Friends of the Healdsburg Senior Center, thanked the Council for the recognition and reflected on the enjoyable activities offered at the Senior Center, and announced an upcoming fundraiser sponsored by Friends of the Healdsburg Senior Center.
CITY MANAGER REPORTS
City Manager Kay reported on the upcoming Foss Creek Cleanup, Healdsburg Arts Festival events and announced City Council meetings are now being streamed live on YouTube.
PUBLIC COMMENTS ON ITEMS ON THE CONSENT CALENDAR AND NON
AGENDA ITEMS
Dan Pizza commented on Councilmember Herrod and his experience with Councilmember Herrod during the current election cycle.
Cathy Waterbury provided information regarding the Healdsburg Fault and expressed concerns about the potential risk of earthquakes. She proposed establishing an Earthquake Awareness Day Proclamation on October 2nd and requested the addition of an earthquake preparedness checklist on the City's website.
CONSENT CALENDAR
Mayor Hagele noted Consent Item 6A has been removed from the consent calendar.
City Council/RSA Regular Meeting Minutes
September 16, 2024
On a motion by Councilmember Kelley, seconded by Councilmember Herrod, approved the Consent Calendar as follows:
A. ACCEPTANCE OF FITCH MOUNTAIN PUBLIC ACCESS IMPROVEMENT
PROJECT
This item was removed from the consent calendar.
B. EXPANSION OF THE CORE POLICING TEAM AND REORGANIZATION OF
FINANCE DEPARTMENT
Adopted Resolution No. 104-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HEALDSBURG RESCINDING RESOLUTION NO. 67-2024 & NO. 88- 2024 AND REESTABLISHING THE AUTHORIZED POSITIONS LIST AND CORRESPONDING SALARY SCHEDULE EFFECTIVE SEPTEMBER 16, 2024.” (Ayes 5, Noes 0, Absent – None)
C. RCPA GREENHOUSE GAS INVENTORY RESULTS FOR 2022
Received an update on the Regional Climate Protection Authority 2022 Greenhouse Gas Inventory. (Ayes 5, Noes 0, Absent – None)
D. AGREEMENT WITH PEREGRINE TECHNOLOGIES FOR POLICE
DEPARTMENT DATA INTEGRATION
Adopted Resolution No. 105-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF HEALDSBURG APPROVING AN PROFESSIONAL SERVICES
AGREEMENT WITH PEREGRINE TECHNOLOGIES TO PROVIDE A
COMPREHENSIVE DATA INTEGRATION SOLUTION AND AUTHORIZING THE
CITY MANAGER TO EXECUTE THE AGREEMENT FOR A THREE-YEAR TERM FOR AN AMOUNT NOT TO EXCEED $81,000.” (Ayes 5, Noes 0, Absent – None) E. AUTHORIZE XEROX FINANCIAL SERVICES, LLC LEASE AGREEMENT Adopted Resolution No. 106-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF HEALDSBURG AUTHORIZING THE CITY MANAGER TO EXECUTE
SERVICE AND LEASE AGREEMENTS WITH XEROX FINANCIAL SERVICES, LLC IN THE AMOUNT OF $4716.73 PER MONTH, FOR 60 MONTHS, AND A ONE-TIME SERVICES CONTRACT IN THE AMOUNT OF $4000, TOTALING $287,003.80 OVER 5 YEARS.” (Ayes 5, Noes 0, Absent – None)
City Council/RSA Regular Meeting Minutes
September 16, 2024
F. AWARD OF ASPHALT MAINTENANCE CONTRACT
Adopted Resolution No. 107-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF HEALDSBURG CONDITIONALLY AWARDING AN ASPHALT
MAINTENANCE CONTRACT TO ENGELKE CONSTRUCTION, AUTHORIZING THE
CITY MANAGER TO EXECUTE THE THREE-YEAR CONTRACT AND TWO ANNUAL EXTENSIONS FOR AN INITIAL NOT-TO-EXCEED AMOUNT OF $495,000, AND A MAXIMUM FIVE-YEAR NOT-TO-EXCEED AMOUNT OF $825,000.” (Ayes 5, Noes 0, Absent – None)
G. READING OF ORDINANCE TITLES
By motion, determined that the titles to all Ordinances that appear on this public agenda have been read and waive further reading. (Ayes 5, Noes 0, Absent – None) H. ORDINANCE AMENDING HEALDSBURG MUNICIPAL CODE CHAPTER 10
RELATED TO VEHICLES
By motion, introduce for first reading, by title only and waiving further reading of the text, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HEALDSBURG AMENDING TITLE 10 OF THE HEALDSBURG MUNICIPAL CODE RELATED TO VEHICLES AND TRAFFIC.” (Ayes 5, Noes 0, Absent – None)
The motion to approve the Consent Calendar as above carried on a unanimous voice vote. (Ayes 5, Noes 0, Absent – None)
PUBLIC HEARING – FOURTH AMENDMENT TO DEVELOPMENT AGREEMENT
WITH REPLAY HEALDSBURG, LLC AND CONSIDERATION OF TENTATIVE
SUBDIVISION MAPS FOR LOTS ONE, TWO, AND THREE OF THE MILL DISTRICT
PROJECT
Linda Ruffing, North Coast Community Planning introduced the item for discussion, provided an overview of the seven lots within the Mill District Project and outlined key components of the Development Agreement between the City and the developer. Ms. Ruffing reviewed the community benefits included in the proposed fourth amendment, detailed the timeline of the project and provided information on the currently approved conceptual master plan.
Ms. Ruffing further reviewed the proposed changes included in the fourth amendment to the Development Agreement, including relocation of residential amenity from lot 1 to lot 5, relocate middle income units from lot 5 to lot 3, converting eight affordable by design units to ownership middle income housing units, modifying timing for completion of middle income units to require that all twenty-nine units on lot 3 be constructed prior to the Certificate of Occupancy for first City Council/RSA Regular Meeting Minutes
September 16, 2024
Market Rate unit on lot 2, clarifying who has access to the residential amenities, allowing twenty-nine middle income units on lot 3 be sold as ownership units, establishing a mechanism to cap increases in HOA fees for middle income units, allow hotel investment suite use on lot 1 visitor lodging use, require agreement for payment in lieu of TOT for hotel investment suites, limit vested rights for hotel investment suite use on lot 1 to five years, waiving payment of Quimby act fees in exchange for elimination of commercial module in park and modify timing for payment of connectivity funds.
Additionally, Ms. Ruffing provided a definition of a tentative map, reviewed the three tentative subdivision maps for lots one, two, and three and the proposed conditions of approval for each map. Ms. Ruffing noted the new and revised language for special condition #25 and presented findings for approval of tentative subdivision maps.
In response to Councilmember Kelley’s inquiries, Ms. Ruffing noted the middle-income units can either be owned or rented, they will be integrated with market-rate units, reviewed potential locations of the units and stated that the feasibility study confirms the proposed 62 units could fit on Lot 2.
Planning and Building Director Duiven noted that GMO allocations will expire at the end of the current cycle however, the Development Agreement allows for the capture of expiring allocations from projects like Saggio Hills. Director Duiven further explained that the annual GMO report tracks expired and used allocations. Ms. Ruffing clarified that the initial HOA fee is determined by the homeowners’ association and factored into the restricted sales price and confirmed that the middle-income units are set at 160% of the Area Median Income (AMI).
Ms. Ruffing further provided information on the amenities for the investment suites, outlined the policies for purchasing multiple hotel suites, explained the process if an owner wishes to sell, and clarified the consequences for non-compliance with these policies. Vice President of Development for Replay Healdsburg, LLC Mike McCone clarified the use, size, and components of the larger suites on the second and third floors of the hotel. Ms. Ruffing clarified that it is common for development agreements to undergo multiple amendments over time and confirmed that these agreements typically have a 15-year term, unless extended, and that they will be incorporated into other land use approvals.
City Attorney Zutler provided information on enforcement options if the Conditions of Approval are not followed, clarified the specifications of hotel suites, explained the structure of HOA fees and residential amenity fees, defined what is considered affordable for a middle-income family of four and confirmed that the amended development agreement retains the same number of units, affordability criteria, and hotel keys, with 29 of those units now designated for sale. Ms.
Ruffing further confirmed that local preference includes retail spaces, clarified that the park is privately owned and maintained and the City has a public access easement over it.
City Council/RSA Regular Meeting Minutes
September 16, 2024
City Manager Kay confirmed that the City is comfortable with the payment in lieu of TOT fees, noting that multiple calculations were conducted.
Ms. Ruffing clarified that proceeds from the sale middle-income units will contribute a substantial amount back to the City's housing trust fund, the middle-income units will be subject to 45-year restrictive covenants and clarified that if an investment partner does not come through within five years, the suites will be integrated with the hotel.
Mr. McCone confirmed that they would seek another investment partner if the initial partner backed out of purchasing the hotel investment suites.
There were no public comments on this item.
Council Comments
Councilmember Herrod expressed appreciation for the commitment to housing and the efforts to maintain affordability for middle-income households, expressed support for the sale of middleincome units and concerns about the potential impact of hotel investment suites and inquired about the retail space in the development.
Councilmember Edwards is pleased with the clarification of the affordability fees and the development of a diverse, mixed community and inquired how the investor-owned units are rented out.
Vice Mayor Mitchell expressed her satisfaction with the proposed amendments, particularly the 29 units intended for sale and the planned park expansion. Vice Mayor Mitchell emphasized that the terms negotiated by the City are beneficial, promoting both the City's goals and the community's needs for mixed housing.
Councilmember Kelley echoed Vice Mayor Mitchell’s comments about the importance of community benefits and noted that the Connectivity and Quimby funds will provide lasting value to the City. Councilmember Kelley expressed support for the park's location and expressed concerns regarding the exclusivity of the amenity buildings and requested that future unit proposals include a broader range of moderate-income options. Additionally, Councilmember Kelley commented on the significant increase in hotel rooms built since 2018 and expressed ongoing concerns about the potential impact of the hotel investment suites.
Mayor Hagele expressed support for the location of the middle-income units and amenity buildings, as well as for the park expansion. Mayor Hagele was in favor of the Development Agreement’s provision restricting hotel investment suites from accessing amenities, expressed concerns about potential TOT losses resulting from the hotel investment suites and praised the staff for their efforts in successfully negotiating the terms of the DA amendment.
City Council/RSA Regular Meeting Minutes
September 16, 2024
City Attorney Zutler read aloud the revisions to the Fourth Amendment to the Development Agreement, Section 11, 5.9 and to the Conditions of Approval as Condition #25 for the Lot 3 tentative map as follows: “The CC&Rs for the Master Association and for the Lot 3 SubAssociation shall include a provision to limit the amount of an annual increase in the total homeowners' association dues, regular assessments and/or reserves inclusive of fees for the applicable Condominium Sub-association, Master Association. and Private Recreation Facility License Fee ("Combined HOA Fees") payable by an Ownership Middle Income Housing Unit.
An annual increase in Combined HOA Fees for Ownership Middle Income Housing Units shall be limited to an amount not to exceed the annual percentage increase in the Consumer Price Index (CPI) for All Urban Consumers (CPIU), for the San Francisco-Oakland-Hayward area, as published by the U.S. Bureau of Labor Statistics. The adjustment shall be calculated by comparing the CPI from April of the previous year to April of the current year. If the CPI shows no increase or a decrease, the Combined HOA Fees shall remain unchanged for the subsequent year. Adjusted payments shall take effect on July l and continue for, at a minimum, the following 12-month period.”
On a motion by Vice Mayor Mitchell, seconded by Councilmember Edwards, introduced for first reading, by title only and waiving the full reading of the text, “AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF HEALDSBURG APPROVING THE FOURTH AMENDMENT
TO DEVELOPMENT AGREEMENT BY AND BETWEEN REPLAY HEALDSBURG LLC AND THE CITY OF HEALDSBURG FOR THE MILL DISTRICT PROJECT (DA 2018-01.04) BASED ON THE SUGGESTED FINDINGS, including the changes read into the record by City Attorney Zutler.” The motion carried on a unanimous roll call vote. (Ayes 5, Noes 0, Absent - None)
On a motion by Vice Mayor Mitchell, seconded by Councilmember Edwards, adopted Resolution No. 108-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HEALDSBURG APPROVING A TENTATIVE SUBDIVISION MAP (SBDV 0003-2024) FOR LOT 1 OF THE MILL DISTRICT PROJECT.” The motion carried on a unanimous roll call vote. (Ayes 5, Noes 0, Absent - None)
On a motion by Vice Mayor Mitchell, seconded by Councilmember Kelley, adopted Resolution No. 109-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HEALDSBURG APPROVING A TENTATIVE SUBDIVISION MAP (SBDV 0004-2024) FOR LOT 2 OF THE MILL DISTRICT PROJECT.” The motion carried on a unanimous roll call vote. (Ayes 5, Noes 0, Absent - None)
On a motion by Vice Mayor Mitchell, seconded by Councilmember Herrod, adopted Resolution No. 110-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HEALDSBURG APPROVING A TENTATIVE SUBDIVISION MAP (SBDV 0005-2024) FOR LOT 3 OF THE MILL DISTRICT PROJECT, including the changes read into the record by City City Council/RSA Regular Meeting Minutes
September 16, 2024
Attorney Zutler.” The motion carried on a unanimous roll call vote. (Ayes 5, Noes 0, Absent - None)
OLD BUSINESS – CLIMATE MOBILIZATION STRATEGY IMPLEMENTATION
PLAN ANNUAL UPDATE
Assistant City Manager Sturmfels introduced Public Works Director Larry Zimmer and Utility Conservation Analyst Terra Sampson who would be presenting with him this evening. Manager Sturmfels provided an overview of the emission sources in Healdsburg outlined GHG reduction targets, noting the City is on track to meet state goals. Additionally, Manager Sturmfels shared details of the implementation plan of the Climate Mobilization Strategy (CMS) over the next two years.
Conservation Analyst Sampson reviewed the GHG reductions by sector and provided an update on actions scheduled for completion by Q2 2024, noting that some actions have been delayed due to various factors. Ms. Sampson highlighted notable successes in areas like building energy efficiency, water conservation, and electric transportation.
Public Works Director Zimmer shared achievements in public and active transportation and solid waste management.
Manager Sturmfels further highlighted successful initiatives, including carbon sequestration projects, outlined current risks and challenges and reviewed the upcoming initiatives.
In response to Council’s inquiries, Manager Sturmfels provided an update on the charging options for the Route 67 bus. Analyst Sampson further clarified that the Electrification Forecast will examine different adoption rates for electric vehicles (EVs) and electric appliances.
Public Comments
Judy Fujita expressed her appreciation for the City's accomplishments and the presentation.
Linda Cade inquired about selling climate credits, GHG calculations, and how GHG’s are calculated.
In response to Councilmember Kelley’s inquiry, Manager Sturmfels confirmed he would provide an update on infrastructure improvements related to the Saggio Hills grant funding for connectivity.
City Council/RSA Regular Meeting Minutes
September 16, 2024
OLD BUSINESS – L&M VILLAGE QUARTERLY UPDATE
Housing Director Sotomayor introduced the item for discussion and introduced Margaret Sluyk, Executive Director of Reach for Home. Ms. Sluyk presented the first quarter highlights for L&M Village, reviewed updates on the clearing of the Syar encampment and the solutions for the two remaining homeless individuals at the Syar property. Ms. Sluyk shared program outcomes to date and provided information on the supportive services available.
Director Sotomayor shared details about Homekey funding for the L&M Village, reviewed the challenges and opportunities for the L&M going forward and provided an analysis of the 2024 Point-In-Time Count compared to historical Point-In-Time Counts.
In response to Councilmember Kelley’s inquiry, Director Sotomayor addressed the funding gap between the County and the City’s needs. Director Sotomayor reassured the Council that the County is committed to providing additional support, and this will be reflected in the amended agreement.
There were no public comments on this item.
The Council thanked Ms. Sluyk for her presentation, acknowledged the effort, dedication and impact the L&M has had on the community and commented on Reach For Home’s upcoming fundraiser.
NEW BUSINESS – APPOINTMENTS OF THE CITY SELECTION COMMITTEE AND MAYORS’ AND COUNCILMEMBERS’ ASSOCIATION BOARD OF DIRECTORS City Clerk Allan introduced this item for discussion and noted the action this evening was to direct the Mayor or his alternate on how to vote for a representative for the Measure O Citizens Oversight Committee (County of Sonoma Mental Health and Homeless Services Citizens Oversight Committee).
There were no public comments on this item.
Following a brief discussion by Council, there was Council consensus to direct the Mayor to vote for Mayor Kevin McDonnell, Petaluma and Gerard Giudice, Rohnert Park.
On a motion by Mayor Hagele, seconded by Councilmember Kelley, directed the Mayor to vote for Kevin McDonnell and Gerard Giudice at the City Selection Committee and Sonoma County Mayors’ and Councilmembers’ Association Board meeting on October 10, 2024. The motion carried on a unanimous roll call vote. (Ayes 5, Noes 0, Absent - None) City Council/RSA Regular Meeting Minutes
September 16, 2024
COUNCIL REPORTS ON MATTERS OF INTEREST OCCURRING SINCE PREVIOUS
REGULAR MEETING/EXPENSE REIMBURSEMENT REPORTS
Councilmember Edwards reported he attended the opening of the mini library.
Vice Mayor Mitchell reported she attended the Gallery 300 ribbon cutting event.
Councilmember Kelley reported she attended the Climate Action Healdsburg meeting, the Sonoma County Transportation Authority Board of Directors Meeting, the Healdsburg Museum Annual Dinner, met with representatives of True West Film Center, attended the launch event for the Measure I campaign and the Russian River Keeper’s Rippin’ River Bash event.
Councilmember Herrod reported he met with representatives of True West Film Center, the Climate Action Healdsburg meeting, met with Sebastopol Vice Mayor Stephen Zollman and Eli Melrod for a tour of Solful, attended the Gallery 300 ribbon cutting, and a Healdsburg high school football game.
Mayor Hagele reported he had lunch with Supervisor Rabbit, coffee with Michelle Oxford, met with the Senior VP of Kaiser Permanente, and noted he will be attending the upcoming groundbreaking for True West Film Center.
WRITTEN COMMUNICATIONS
None.
ADJOURNMENT
There being no further City Council/Redevelopment Successor Agency business to discuss, the meeting was adjourned at approximately 9:50 p.m.
APPROVED: ATTEST:
_________________________________ __________________________________ David Hagele, Mayor Raina Allan, City Clerk